RAISIO PLC INTERIM REPORT 1 January - 30 June 2005
Raisio plc Stock Exchange Release 2 Aug 2005 at 11.00 Finnish time
RAISIO PLC INTERIM REPORT 1 January 30 June 2005
POSITIVE DEVELOPMENT IN THE PERFORMANCE OF BUSINESS SEGMENTS
Increased input weakened the Groups performance
· Turnover for the second quarter amounted to EUR 112.9 million
(EUR 117.5 million for continuing operations in Q2/2004).
· Operating result was EUR 2.9 million (EUR -27.8 million or
EUR 4.7 million excluding one-off items).
· Raisios turnover is expected to be on par with the turnover
from last years continuing operations and the full-year operating
profit to be close to last years operating profit for continuing
operations, excluding one-off items (EUR 10.6 million).
This interim report has been prepared in accordance with the
principles of the IFRS. Raisio adopted the International Financial
Reporting Standards as of the beginning of 2005. This adoption has
been explained in a separate report on 22 April 2005.
In this review, figures for the comparison period have been
presented in brackets and they stand for the continuing operations
unless otherwise informed.
Key figures, result
4-6/2005 4-6/2004 1-6/2005 1-6/2004 2004
Turnover, EUR million 112.9 117.5* 211.0 216.2* 437.9*
Operating result, EUR million
2.9 4.7** 7.0 4.9** 10.6**
% of turnover 2.6 4.0** 3.3 2.3** 2.4**
Result before taxes, EUR million
3.9 5.1** 8.8 4.2** 10.7**
Earnings per share, EUR 0.02 0.00** 0.04 -0.01** 0.07**
* continuing operations
** continuing operations, excluding one-off items
Key figures, balance sheet
1-6/2005 1-6/2004 2004
Return on investment, % 4.6 80.1 46.7
Equity ratio, % 78.1 65.0 76.4
Gearing, % -26.4 -39.5 -41.9
Equity per share, EUR 2.13 2.33 2.29
CEO Rabbe Klemets:
Profit development in Q2 was weaker than that of the first
quarter and the comparison period, although the performance of
both Raisio Nutrition and Raisio Life Sciences was up from the
comparison period. Raisios aim to renew itself and get on a
growth track calls for considerable input in research and product
development, business internationalisation and in sales and
marketing. Unallocated additional strategic input in research and
product development, as well as other Group-level
development expenses, led to a clear increase in the costs for
other operations and reduced the Groups overall result.
In Finland, retail trade was slow, which could also be seen in the
demand for Raisios food products. Sales were particularly weak in
the potato and margarine products, whereas feed and vegetable oil
operations continued in an upward direction.
In line with its strategy the company will continue to expand its
home market to Russia. Raisio and Lännen Tehtaat have decided to
start farm feed production in northwestern Russia by setting up a
50/50-owned joint venture. In Russia it is difficult to achieve
sustainable competitive advantage without local production, of which
weaker demand for imported malt and lower malt price levels are the
most recent indications. This is why Raisio is also considering the
option to start oat flake production in the country. In addition,
the Group is working on plans concerning the production and
marketing of Benecol products in both Russia and the new EU Member States.
Raisios operations in Poland have seen good growth and
profitability throughout the first part of the year. The Benecol
yoghurt drink produced by Obory, in which Raisio holds a minority
share, and the coffee drinks produced by Emmi and sold in Poland
by Raisios sales organisation were successfully launched on the
market.
The sales of Benecol yoghurt drinks continued to increase in
Europe, which, in turn, led to a growth in ingredients sale.
Positive development was also seen in the diagnostics business.
RESULT
Raisio recorded a turnover of EUR 112.9 million (EUR 117.5
million) in the second quarter. The turnover of Raisio Life
Sciences increased, while that of Raisio Nutrition decreased.
Turnover for JanuaryJune amounted to EUR 211.0 million (EUR 216.2
million), of which turnover from outside Finland represented 37.5%
(37.3%), or EUR 79.2 million (EUR 80.6 million).
The operating result for the second quarter was EUR 2.9 million
(EUR -27.8 million or EUR 4.7 million excluding one-off items).
While both business segments improved their performance over the
comparison period, expenses for other operations increased due to
additional input in research and development, among other things.
Depreciations, allocated to operations in the income statement,
totalled EUR 6.0 million in AprilJune and EUR 12.1 million in
JanuaryJune. The operating result for JanuaryJune was EUR 7.0
million (EUR -27.6 million or EUR 4.9 million excluding one-off
items).
The result before taxes was EUR 3.9 million (EUR -29.4 million or
EUR 5.1 million excluding one-off items) in the second quarter and
EUR 8.8 million (EUR -30.4 million or EUR 4.2 million excluding
one-off items) in JanuaryJune. Raisios net financial items for
AprilJune totalled EUR 1.0 million (EUR
-1.3 million or EUR 0.7 million excluding one-off items). The
financial result was increased by the significantly smaller amount
of debt. In JanuaryJune the net financial items amounted to EUR
1.8 million (EUR -2.4 million or EUR -0.4 million excluding one-
off items).
The result for the financial period in the second quarter was EUR
2.5 million (EUR -31.8 million or EUR 2.7 million excluding one-
off items), and for JanuaryJune EUR 6.1 million (EUR -33.4
million or EUR 1.1 million excluding one-off items). Earnings per
share in AprilJune amounted to EUR 0.02 (EUR -0.20 or EUR 0.00
excluding one-off items). In JanuaryJune, EPS totalled EUR 0.04
(EUR -0.21 or EUR -0.01 excluding one-off items).
The cash flow from business operations was EUR 2.7 million (EUR
14.1 million) in the second quarter and EUR -10.7 million (EUR
17.0 million) in January-June.
BALANCE SHEET AND FINANCIAL POSITION
The balance sheet total at the end of June was EUR 470.6 million
(EUR 514.3 million on 31.12.2004), while shareholders equity
amounted to EUR 351.8 million (EUR 378.1 million on 31.12.2004).
Equity per share at the end of June was EUR 2.13 (EUR 2.29 on
31.12.2004).
Raisio's net interest-bearing debt was EUR -96.8 million at the
end of June (EUR -164.6 million on 31.12.2004). The equity ratio
at the end of June was 78.1% (76.4% on 31.12.2004), and the
gearing ratio -26.4% (-41.9% on 31.12.2004).
Working capital increased to EUR 89.3 million (EUR 84.2 million on
31.3.2005 and EUR 57.5 million on 31.12.2004), mainly due to
bigger inventories based on seasonal changes in the business. Raisios
gross investments totalled EUR 17.4 million (EUR 4.8 million) in
the second quarter, and EUR 22.1 million in JanuaryJune
(EUR 8.3 million). The biggest single investments included the
renewal of the ERP system, the construction of the oat-soy plant
in Turku and the Research Centre in Raisio, as well as the expansion
of the stanol ester plant.
BUSINESS SEGMENTS
Raisio Nutrition
Raisio Nutrition recorded a turnover of EUR 98.4 million (EUR
105.4 million) in the second quarter. The decrease resulted from
slack domestic trade for consumer goods, which weakened the demand
for Raisios food products. While margarine sales fell in Sweden,
Raisios food sales in Poland increased. The turnover of Raisio
Malt almost halved, as Russian malt sales saw a considerable
decrease and the price level in Russia dropped due to an increase
in the countrys own malting capacity. Raisio Nutritions turnover
in the January to June period was EUR 184.2 million (EUR 193.4
million).
Raisio Nutrition turnover, EUR million
4-6/2005 4-6/2004 1-6/2005 1-6/2004 2004
Food 52.1 57.0 102.2 109.6 217.1
Margarine products 28.6 31.7 56.9 60.6 121.6
Milling products 18.5 18.8 36.6 37.4 75.1
Processed food potato 5.7 6.7 10.3 11.6 21.2
Others - 0.4 - 0.8 0.8
Internal sales -0.8 -0.6 -1.6 -0.7 -1.7
Feed and malt 50.6 53.1 90.1 92.8 190.7
Feeds 43.9 42.3 80.1 78.7 165.2
Malt 5.7 10.2 8.7 13.2 24.7
Others 1.2 0.7 1.8 1.1 1.4
Internal sales -0.2 -0.1 -0.5 -0.3 -0.5
Internal sales for
business segment -4.3 -4.7 -8.1 -9.1 -17.9
Total 98.4 105.4 184.2 193.4 389.9
Raisio Nutrition booked a segment result of EUR 3.3 million (EUR
-17.3 million or EUR 3.0 million excluding one-off items) for
AprilJune. The Swedish and Polish food businesses saw improved
results, as did feed and vegetable oil operations, whereas the
food business in Finland and the malt business recorded weaker
results. The segment result for JanuaryJune was EUR 5.8 million
(EUR -17.9 million or EUR 2.4 million excluding one-off items), i.e.
3.1% of the turnover.
Raisio and Lännen Tehtaat established a 50/50 owned joint venture,
Scandic Feed (ZAO), which is responsible for setting up farm feed
production in northwestern Russia. Production will be based on own
production capacity or an acquisition.
GoGreen AB, founded by Raisio and the Swedish Cerealia Foods &
Bread, started operations in June. The GoGreen product family
includes plant-based fresh products and frozen foods, as well as
ready-made meals.
Raisio and Finn Cereal agreed on the manufacture of pure oat
products, developed especially for people with celiac disease.
According to the agreement, Raisio will be responsible for
contract farming of oats, product development and marketing,
whilst Finn Cereal will be responsible for the processing of pure
oats.
Raisio Nutrition acquired the Leipo bakery brand from BakeMark
and will also operate as the vendor of products previously
supplied by BakeMark in Finland. The products cover a wide
assortment of ingredients for the bakery and food industry, and
complement Raisios existing product range.
Raisio Life Sciences
The turnover for Raisio Life Sciences continued to grow in the
second quarter, amounting to EUR 16.1 million (EUR 13.7 million).
Good demand for Benecol yoghurt drinks in Europe continued to be
the engine for growth. In addition to the ingredients business,
diagnostics also recorded slight growth. Turnover for JanuaryJune
was EUR 29.5 million (EUR 25.5 million).
Raisio Life Sciences turnover, EUR million
4-6/2005 4-6/2004 1-6/2005 1-6/2004 2004
Ingredients 13.8 11.5 25.0 21.3 44.7
Diagnostics 2.4 2.2 4.5 4.1 8.6
Total 16.1 13.7 29.5 25.5 53.3
Raisio Life Sciences booked a segment result of EUR 1.7 million
(EUR -8.1 million or EUR 1.1 million excluding one-off items) for
AprilJune. The improvement came from increased sales. Stronger
emphasis on marketing and sales, however, resulted in a slightly
weaker result for Q2 compared with Q1. The segment result for
JanuaryJune was EUR 3.9 million (EUR -7.2 million or EUR 2.0
million excluding one-off items), i.e. 13.3% of the turnover.
RESEARCH AND DEVELOPMENT
Projects related to research and development are proceeding as
planned. The oat and soy plant construction in Turku has
progressed to the process equipment installation phase. New
products will be introduced on the market in early 2006.
Construction of the Raisio Research Centre started this spring and
will be completed at the end of 2005. The centre will bring
together the research and development resources of the Raisio
facilities. The 80-year-old Elovena brand was extended by
launching new snack products: Elovena cookies and cereals.
Research and development costs amounted to EUR 2.8 million (EUR
2.1 million) in the second quarter, and to EUR 5.0 million (EUR
4.0 million) in the January to June period, representing 2.4%
(1.9%) of turnover.
PERSONNEL AND GOVERNANCE
Raisio employed 1,502 people at the end of June (1,412 on
31.12.2004), 31% of whom worked outside Finland (32% on
31.12.2004). The increase in staff numbers resulted, among other
things, from summer help and new recruits for research and
development operations.
At the end of June Raisio Nutrition employed 1,137 people, Raisio
Life Sciences 149 people, and Research and Development 124 people.
In accordance with the Finnish Companies Act, Raisio plcs Board
of Directors appointed Olavi Kuusela, President of Raisio
Nutrition Ltd, deputy CEO.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares traded on the Helsinki
Exchanges in JanuaryJune totalled 70.1 million (70.0 million).
The value of share trading was EUR 157.6 million (EUR 105.0
million), and the average price EUR 2.25 (EUR 1.50). The closing
price on 30 June 2005 was EUR 2.44. The price of the series V
shares rose by 28.4% from the beginning of the year.
A total of 1,021,595 (887,081) restricted shares were traded in
the January to June period. The value of share trading was EUR 2.4
million (EUR 1.4 million), and the average price EUR 2.31 (EUR
1.58). The closing price on 30 June 2005 was EUR 2.41. The price
of the series K share rose by 30.3% from the beginning of the
year.
On 30 June 2005 Raisio had 44,067 registered shareholders. Of all
shares, 17.7% were in foreign holding (11.7 % on 31.12.2004) with
the corresponding value for free shares being 22.3% (14.8 % on
31.12.2004).
The market value of Raisio plcs shares at the end of June
amounted to EUR 402.2 million (EUR 312.0 million on 31.12.2004).
The authorisation granted by the Annual General Meeting on 31
March 2005 to repurchase and dispose company shares was not
exercised in the review period.
FULL-YEAR OUTLOOK
The measures taken to enhance operations have resulted in a leaner
cost structure. However, the result improvement in food businesses
is expected to be smaller than earlier anticipated. Furthermore,
a nearly 5-million-euro increase in R&D, as well as in sales and
marketing, especially in the ingredients business and Polish
operations, will weigh down on this years result.
The falling demand for malt and the drop in prices is also
estimated to reduce the result for the rest of the year. The next
year market outlook for malt continues to be bleak. If the
weakness of the market lasts further, restructuring in the malting
operations will be needed.
Raisios turnover is expected to be on par with the turnover from
last years continuing operations and the full-year operating
profit to be close to last years operating profit for continuing
operations, excluding one-off items (EUR 10.6 million).
Raisio, 2 August 2005
Raisio plc
Board of Directors
Further information:
Taru Narvanmaa, Executive Vice President, Communications and
Investor Relations, tel. +358 50 590 9398
Jyrki Paappa, Chief Financial Officer, tel. +358 50 5566 512
A press and analyst event will be organised in Helsinki on 2
August 2005 at 3:30 p.m.
No auditors report has been issued concerning the Interim Report.
INCOME STATEMENT (EUR million)
1-6/2005 1-6/2004 2004
CONTINUING OPERATIONS:
Turnover 211.0 216.2 437.9
Cost of sales -165.7 -179.8 -360.1
Gross profit 45.3 36.4 77.9
Other operating income
and expenses, net -38.3 -64.0 -96.3
Operating result 7.0 -27.6 -18.4
Finance income and expenses, net 1.8 -2.4 -1.6
Share of result of associates - -0.4 -0.4
Result before taxes 8.8 -30.4 -20.3
Income tax -2.7 -3.0 1.2
Result for the period
from the continuing operations 6.1 -33.4 -19.1
DISCONTINUED OPERATIONS:
Result for the period
from discontinued operations - 231.8 232.1
RESULT FOR THE PERIOD 6.1 198.4 213.0
Attributable to:
Equity holders of the parent 5.9 197.2 211.3
Minority interest 0.2 1.2 1.7
Earnings per share from the profit
attributable to equity holders
of the parent (EUR) 0.04 1.19 1.28
Earnings per share from continued
operations (EUR) 0.04 -0.21 -0.12
Earnings per share from discontinued
operations (EUR) - 1.40 1.40
ONE-OFF ITEMS FOR THE COMPARISON PERIOD (EUR million)
1-6/2004 2004
CONTINUING OPERATIONS:
Raisio Nutrition
Sales profit 3.3 3.3
Write-downs -23.6 -24.8
Cancellation of IFRS pension liabilities - 3.1
Raisio Life Sciences
Write-downs -9.2 -9.2
Other operations -3.0 -1.4
Impact on result for the period
from the continuing operations -32.5 -29.0
Financial items -2.0 -2.0
DISCONTINUED OPERATIONS:
Sales profit 227.2 228.3
Impact of one-off items on result
for the period before tax 192.7 197.3
BALANCE SHEET (EUR million)
30.6.05 30.6.04 31.12.04
Non-current assets
Intangible assets 11.6 10.2 10.2
Goodwill 16.6 15.3 17.0
Tangible assets 133.5 130.7 127.0
Shares in associated companies 5.4 1.6 1.6
Investments available for sale 8.4 7.1 8.0
Receivables 7.5 7.7 6.7
Deferred tax assets 8.4 18.6 9.5
Current assets
Inventories 73.5 70.7 56.5
Accounts receivables and
other receivables 69.0 58.5 63.8
Financial assets at fair value
through profit or loss 131.1 291.9 210.4
Cash in hand and at banks 5.6 4.5 3.8
Total assets 470.6 616.8 514.3
Equity attributable to
equity holders of the parent 351.8 385.2 378.1
Minority interest 14.9 14.3 14.7
Deferred tax liability 10.7 13.1 10.3
Pension liabilities 0.7 3.9 0.7
Non-current interest bearing liabilities 16.6 88.6 26.0
Accounts payable and other liabilities 53.3 65.7 61.8
Current interest bearing liabilities 22.6 45.9 22.8
Total equity and liabilities 470.6 616.8 514.3
CHANGES IN GROUP EQUITY (EUR million)
Sha- Sha- Re- Ot- Trans- Re- Re- To- Mino- To-
re- re- ser- her lati- valu- tai- tal rity tal
ca- pre- ve- re- on ati- ned in-
pi- mium fund ser- diffe- on ear- te-
tal acc- ves ren- re- nings rest
ount ces serve
Equity at
1.1.2004 27.8 2.9 88.8 0.2 0.0 0.0 69.9 189.5 23.1 212.6
Dividend
paid - - - - - - -1.7 -1.7 -0.2 -1.9
Changes in
translation
differences - - - - 1.0 - - 1.0 0.2 1.2
Net profit for
review
period - - - - - - 197.2 197.2 1.2 198.4
Translation
differences
booked in the
P&L in connection
to the divestment
of Raisio
Chemicals - - - - -0.7 - - -0.7 - -0.7
Divestment
of Raisio
Chemicals - - -0.2 -0.2 - - 0.4 0.0 -9.7 -9.7
Items recognised
directly in
equity - - - - -0.1 - - -0.1 - -0.1
Tax of
previous - - - - 0.0 - - 0.0 - 0.0
Other
changes - - 0.0 - - - -0.1 -0.1 -0.3 -0.3
Equity at
30.6.2004 27.8 2.9 88.6 0.0 0.2 0.0 265.7 385.2 14.3 399.5
Equity at
1.1.2005 27.8 2.9 88.6 0.0 -2.2 0.0 261.0 378.1 14.7 392.8
Effects of
adopting
IAS 32 and
IAS 39 - - - - - 0.3 -0.3 0.0 - 0.0
Dividend
paid - - - - - - -34.7 -34.7 - -34.7
Changes in
translation
differences - - - - 2.7 - - 2.7 - 2.7
Items recognised
directly in
equity - - - - -0.4 - - -0.4 - -0.4
Tax of
previous - - - - 0.1 - - 0.1 - 0.1
Cash flow hedges
Hedge result
referred
to equity - - - - - -0.3 - -0.3 - -0.3
Investments available
for sale
Fair value
Profits - - - - - 0.5 - 0.5 - 0.5
Deferred tax entered
in equity - - - - - 0.0 - 0.0 - 0.0
Net profit for
review
period - - - - - - 5.9 5.9 0.2 6.1
Other
changes - - 0.0 - - - 0.0 0.0 0.0 0.0
Equity at
30.6.2005 27.8 2.9 88.6 0.0 0.2 0.4 231.9 351.8 14.9 366.7
CASH FLOW STATEMENT (EUR million)
1-6/2005 1-6/2004 2004
Cash flow before change
in working capital 19.0 25.5 44.6
Change in working capital -29.1 3.1 13.1
Financial items and taxes -0.6 -11.7 -11.9
Cash flow from business operations -10.7 17.0 45.9
Investments -22.7 -19.8 -32.5
Proceeds from sale of fixed assets 0.2 398.9 406.3
Cash flow from investments -22.6 379.1 373.8
Change in non-current loans -9.3 -134.2 -219.2
Change in current loans -0.5 1.8 0.3
Change in loan receivables - -1.1 -1.0
Dividend paid -34.7 -1.9 -21.7
Cash flow from financial operations -44.5 -135.3 -241.6
Unallocated items -0.3 0.9 1.4
Change in liquid funds -78.1 261.8 179.5
Liquid funds at beginning of period 214.1 34.6 34.6
Impact of change of market value on
liquid funds 0.6 - -
Liquid funds at end of period 136.7 296.4 214.1
TURNOVER BY SEGMENT (EUR million)
1-6/2005 1-6/2004 2004
Raisio Nutrition 184.2 193.4 389.9
Raisio Life Sciences 29.5 25.5 53.3
Other operations 0.5 - -
Interdivisional turnover -3.2 -2.6 -5.3
Total turnover from
continuing operations 211.0 216.2 437.9
Discontinued operations - 188.7 192.7
Eliminations - -3.1 -3.6
Total turnover 211.0 401.8 627.0
SEGMENT RESULTS (EUR million)
(Operating profit + share of result of associates)
1-6/2005 1-6/2004 2004
Raisio Nutrition 5.8 -17.9 -10.2
Raisio Life Sciences 3.9 -7.2 -4.8
Other operations -2.6 -2.9 -3.9
Eliminations -0.2 0.0 0.1
Segment result from
continuing operations 6.9 -28.0 -18.8
Discontinued operations - 239.6 240.9
Eliminations - - -
Total 6.9 211.6 222.2
NET ASSETS BY SEGMENT (EUR million)
30.6.05 30.6.04 31.12.04
Raisio Nutrition 178.7 159.6 147.5
Raisio Life Sciences 52.5 52.0 47.0
Other operations 135.5 188.0 198.3
Total 366.7 399.5 392.8
INVESTMENTS BY SEGMENT (EUR million)
1-6/2005 1-6/2004 2004
Raisio Nutrition 16.4 6.4 16.0
Raisio Life Sciences 2.6 0.7 2.8
Other operations 6.7 1.3 4.4
Eliminations -3.6 -0.1 -1.2
Total investments from
continuing operations 22.1 8.3 22.1
Discontinued operations - 12.8 12.8
Total investments 22.1 21.1 34.8
TURNOVER BY MARKET AREA FROM CONTINUING OPERATIONS (EUR million)
1-6/2005 1-6/2004* 2004*
Finland 131.8 135.6 280.8
Poland 17.7 15.4 33.4
Russia 12.8 18.8 32.4
Other Europe 46.2 43.9 85.1
ROW 2.5 2.6 6.2
Total 211.0 216.2 437.9
* continuing operations
QUARTERLY PERFORMANCE (EUR million)
4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2005 2005 2004 2004 2004 2004
Turnover of Raisio
Nutrition 98.4 85.9 97.5 99.0 105.4 88.0
Turnover of Raisio Life
Sciences 16.1 13.4 16.1 11.7 13.7 11.8
Other operations 0.3 0.2 0,0 0.0 0.0 0.0
Interdivisional turnover -1.8 -1.4 -1.5 -1.1 -1.5 -1.1
Total turnover 112.9 98.1 112.1 109.6 117.5 98.7
Segment result of
Raisio Nutrition 3.3 2.5 4.3 3.4 -17.3 -0.6
Segment result of
Raisio Life Sciences 1.7 2.2 1.6 0.8 -8.1 0.9
Other operations -2.0 -0.6 -0.5 -0.5 -2.7 -0.2
Eliminations 0.0 -0.1 0.0 0.0 0.0 0.0
Total segment results 2.9 4.0 5.5 3.7 -28.1 0.1
Finance income
and expenses, net 1.0 0.8 0.7 0.2 -1.3 -1.1
Result before taxes 3.9 4.8 6.1 3.9 -29.4 -0.9
Income tax -1.4 -1.3 -2.8 7.1 -2.4 -0.7
Result for the period from
the continuing operations 2.5 3.5 3.3 11.0 -31.8 -1.6
KEY INDICATORS
1-6/2005 1-6/2004 2004
Return on equity, ROE, % 3.2 129.7 70.4
Return on investment, ROI, % 4.6 80.1 46.7
Interest bearing liabilities
at end of period, EURm 39.9 138.5 49.5
Gross investments, EURm 22.1 21.1 34.8
Gross investments from
continuing operations, EURm 22.1 8.3 22.1
% of turnover from
continuing operations 10.5 3.8 5.0
R & D expenditure, EURm 5.0 8.6 12.9
R & D expenditure from
continuing operations, EURm 5.0 4.0 8.4
% of turnover from
continuing operations 2.4 1.9 1.9
Personnel average 1,406 2,537 2,005
Personnel average in
continuing operations 1,406 1,537 1,498
Equity ratio, % 78.1 65.0 76.4
Gearing, % -26.4 -39.5 -41.9
Earnings/share, EUR 0.04 1.19 1.28
Cash flow from operations/share, EUR -0.06 0.10 0.28
Equity/share, EUR 2.13 2.33 2.29
Average number of shares
during the period, in 1,000s
Free shares 130,585 130,334 130,455
Restricted shares 34,564 34,815 34,694
Total 165,149 165,149 165,149
Market capitalisation of shares
at end of the period, EURm
Free shares 318.6 240.2 248.1
Restricted shares 83.6 66.4 63.9
Total 402.2 306.6 312.0
CONTINGENT LIABILITIES (EUR million)
30.6.05 30.6.04 31.12.04
Assets given for security
For the company
Mortages on real estate 16.9 60.2 52.7
Securities pledged 0.0 0.0 0.5
Corporate mortgages 34.1 34.5 34.4
For associated companies
Securities pledged - 4.1 0.0
Contingent off-balance sheet
Non-cancellable other leases
Minimum lease payments 2.6 1.4 1.8
Contingent liabilities
for the Group companies
Guarantees - 1.0 -
Contingent liabilities for the Company 1.5 2.3 2.1
Contingent liabilities for others
Guarantees 0.0 75.1 0.1
Other liabilities 1.3 0.0 -
DERIVATIVE CONTRACTS (EUR million)
30.6.05 30.6.04 31.12.04
Nominal values of derivative contracts
Raw material futures 3.0 7.5 0.8
Forward electricity contracts 0.0 4.3 5.6
Currency forward contracts 31.6 34.6 35.9
