RAISIO PLC INTERIM REPORT 1 JANUARY-30 SEPTEMBER 2006
Raisio plc Stock Exchange Release 31 October 2006 at 13.00 p.m. Finnish time
RAISIO PLC INTERIM REPORT 1 JANUARY30 SEPTEMBER 2006
THIRD QUARTER RESULT BACK IN THE BLACK
Slight increase in turnover
· Turnover grew by 2.8% in JulySeptember, amounting to EUR
113.8 million (EUR 110.7 million in JulySeptember 2005).
· Operating result from continuing operations totalled EUR 2.1
million (EUR 3.8 million). In addition, a one-off income item of
EUR 3.6 million was recorded in discontinued operations.
· Raisios full-year operating result, excluding one-off items,
will be clearly lower than the operating result of the previous
year excluding one-off items (EUR 9.1 million).
This interim report has been prepared in accordance with the IFRS
accounting principles. The report does not comply with all of the
requirements laid out in IAS 34 Interim Financial Reporting.
Raisio has applied the same accounting principles for this Interim
Report as it did for the 2005 annual financial statements. The
information presented in the Interim Report has not been audited.
Figures for the comparison period are given in brackets in the
text.
Key figures, continuing operations result
7-9/2006 7-9/2005 1-9/2006 1-9/2005 2005
Turnover, EUR million 113.8 110.7 328.4 321.7 434.6
Operating result,
EUR million 2.1 3.8 0.3* 10.8 9.1*
% of turnover 1.9 3.4 0.1* 3.3 2.1*
Result before taxes,
EUR million 2.3 3.9* 1.5* 12.6* 10.9*
Earnings per share, EUR 0.01 0.02* 0.00* 0.05* 0.05*
* excluding one-off items
Key figures, balance sheet
30.9.2006 30.9.2005 31.12.2005
Return on investment, % 3.3 5.0 -1.3
Equity ratio, % 77.9 76.6 76.8
Gearing, % -21.6 -28.2 -25.0
Equity per share, EUR 2.02 2.15 2.06
CEO Rabbe Klemets:
Third quarter operating result was back in the black thanks to
the good development seen in the Ingredients and Feed businesses.
The food business remained in the red, burdened by the expenses
from rationalization programmes.
The construction of the oat mill plant in Tatarstan and the
setting up of the feed plant in Ylivieska proceed as planned.
Sales of Benecol products have taken off well in Turkey, and
Benecol margarine has been launched in Russia.
RESULT
The Groups turnover in JulySeptember totalled EUR 113.8 million
(EUR 110.7 million). Turnover from the Food business was EUR 53.2
million (EUR 52.3 million), Feed & Malt EUR 50.9 million (EUR 48.9
million), Ingredients EUR 12.6 million (EUR 12.3 million) and
Diagnostics EUR 2.1 million (EUR 2.1 million).
Raisios turnover in JanuarySeptember amounted to EUR 328.4
million (EUR 321.7 million), of which turnover from outside
Finland represented 39.6% (37.1%), or EUR 130.1 million (EUR 119.2
million).
The Groups operating result from continuing operations totalled
EUR 2.1 million (EUR 3.8 million) in JulySeptember. The result
was burdened by EUR 0.7 million from rationalization programmes.
The third quarter result for discontinued operations includes a
one-off income item of EUR 3.6 million from compensation related
to Raisios already divested Chemicals business. The compensation
is based on the explosion damage caused to Raisio Chemicals
Toulouse plant in 2001. The Food business recorded an operating
result of EUR -2.0 million (EUR 0.2 million), Feed & Malt EUR 2.7
million (EUR 3.2 million), Ingredients EUR 2.2 million (EUR 2.1
million) and Diagnostics EUR -0.5 million (EUR -0.4 million). The
operating result from other operations decreased to EUR -0.1
million (EUR -1.5 million), mainly due to periodizations.
Depreciations, allocated to operations in the income statement,
amounted to EUR 5.8 million (EUR 6.3 million) in JulySeptember
and to EUR 16.9 million (EUR 18.4 million) in JanuarySeptember.
The JanuarySeptember operating result from continuing operations
totalled EUR 2.1 million or EUR 0.3 million, excluding one-off
items (EUR 10.8 million). The second quarter figures include a one-
off income item of EUR 1.8 million resulting from the contractual
lease transfer of the plot that Raisios feed plant in Oulu is
currently located on.
The third quarter result before taxes from continuing operations
was EUR 2.3 million (EUR 5.6 million or EUR 3.9 million, excluding
one-off items). In JanuarySeptember, result before taxes from
continuing operations was EUR 3.3 million or EUR 1.5 million,
excluding one-off items (EUR 14.4 million or EUR 12.6 million,
excluding one-off items). Raisios net financial income in
JulySeptember totalled EUR 0.4 million (EUR 2.1 million or EUR
0.4 million, excluding one-off items), and EUR 1.5 million in
JanuarySeptember (EUR 3.9 million or EUR 2.2 million, excluding
one-off items).
The third quarter result from continuing operations was EUR 1.4
million (EUR 4.1 million or EUR 2.8 million, excluding one-off
items), while that of JanuarySeptember from continuing operations
was EUR 1.9 million or EUR 0.5 million, excluding one-off items
(EUR 10.2 million or EUR 8.9 million, excluding one-off items).
Earnings per share from continuing operations in JulySeptember
amounted to EUR 0.01 (EUR 0.02). In JanuarySeptember, EPS were
EUR 0.01 or EUR 0.00, excluding one-off items (EUR 0.06 or EUR
0.05, excluding one-off items). Discontinued operations generated
an additional EPS of EUR 0.02 (EUR 0.00) in the third quarter.
Cash flow from business operations in July-September was EUR 29.3
million (EUR 15.5 million) and EUR 22.6 million (EUR 4.8 million)
in JanuarySeptember.
BALANCE SHEET AND FINANCIAL POSITION
The balance sheet total at the end of September was EUR 433.6
million (EUR 452.5 million on 31 December 2005) and the equity of
parent company shareholders EUR 324.1 million (EUR 332.0 million
on 31 December 2005). Equity per share at the end of September was
EUR 2.02 (EUR 2.06 on 31 December 2005).
The Groups net interest-bearing debt at the end of September was
EUR -72.7 million (EUR -86.8 million on 31 December 2005). The net
interest-bearing debt includes a loan receivable of EUR 7.1
million. Raisio has approved a prologned installment time until
the end of November 2006 and taken the measures needed to secure
this receivable.
The equity ratio at the end of September was 77.9% (76.8% on 31
December 2005) and the gearing ratio -21.6% (-25.0% on 31 December
2005).
Working capital reduced in July-September to EUR 88.3 million (EUR
86.6 million on 31 December 2005 and EUR 83.0 million on 30
September 2005) from EUR 106.5 million at the end of June.
Inventories and receivables decreased and accounts payable
increased. Raisios gross investments in JulySeptember totalled
EUR 6.6 million (EUR 11.7 million). The largest single investment
was made in the oat mill plant to be constructed in Tatarstan.
Gross investments in January-September were EUR 20.7 million (EUR
33.8 million).
In February 2006, the tax office for major corporations informed
Raisio plc that the representative of the tax authority had
appealed against the 2004 taxation in which the tax authorities
considered the proceeds of the divestment of Raisio Chemicals to
be exempt from tax. The divestment resulted in a sales profit of
approximately EUR 220 million. In Raisios opinion, the sales
profit is exempt of tax according to the corporate and capital tax
law, approved in 2004. Raisio submitted its response in March
2006, and the matter is still being processed by the Assessment
Adjustment Board.
DIVISIONS
Food
The Food Division's turnover in JulySeptember totalled EUR 53.2
million (EUR 52.3 million). Turnover increased in the Polish and
Russian operations, as well as in milling. Raisios margarine and
potato sales continued to decrease in Finland. The same was true
of margarine sales in Sweden, mainly because of the losses of
private label products sales. In September, Raisio launched the
Keiju product family in Sweden to simplify the great variety of
brands on the Swedish margarine market. Raisios market position
in the Finnish retail trade has strengthened over the year in
margarine, flake and pasta products. A new spread Raisio Makuisa
has been well accepted. In bakery and industrial products, as well
as in the catering business, its market position has remained more
or less the same.
In JanuarySeptember the Food Divisions turnover totalled EUR
158.2 million (EUR 154.4 million).
Food turnover, EUR million
7-9/2006 7-9/2005 1-9/2006 1-9/2005 2005
Margarines and
soy-oat products 29.9 29.1 89.3 86.0 117.9
Milling products 19.7 19.7 57.3 56.3 77.0
Potato products 3.7 4.2 12.0 14.6 18.5
Other - - - - -
Internal sales -0.1 -0.7 -0.4 -2.4 -3.1
Total 53.2 52.3 158.2 154.4 210.2
The Food Division's operating result in JulySeptember totalled
EUR -2.0 million (EUR 0.2 million). The biggest drop in
performance was seen in the margarine and soy-oat businesses.
Operating result in JanuarySeptember totalled EUR -6.3 million
(EUR 1.5 million).
The ongoing extensive rationalization measures will begin to have
a positive impact on the Divisions performance in the fourth
quarter. However, the shortage of grain raw material will cause
pressure on prices.
Feed & Malt
The Feed & Malt Division's turnover in JulySeptember totalled EUR
50.9 million (EUR 48.9 million). Turnover increased although the
overall market for farm feeds experienced a slight decrease. Fish
feed exports to Russia saw steep growth, as did turnover in the
oil milling business. Turnover in JanuarySeptember totalled EUR
139.8 million (EUR 139.0 million).
ZAO Scandic Feed, the fifty-fifty owned joint venture of Raisio
and Lännen Tehtaat, was not able to carry through its plans to
start production in Russia as the owner of ZAO Tosno Feed Factory
withdrew from the deal. As a result, Raisio no longer finds
justification for the joint venture and has decided to withdraw
from Scandic Feed. Raisio will continue to study different
alternatives to establish itself in Russia with objective to start
production in the country.
In the Malt business market prices continued to climb in the EU as
a result of reduced malting capacity. The main reason for the rise
in malt prices is however the shortage of malt barley in Europe.
The increased price level will not affect Raisio until next year.
Malt business turnover dropped from the comparison period because
of the periodization of deliveries.
Feed & Malt turnover, EUR million
7-9/2006 7-9/2005 1-9/2006 1-9/2005 2005
Feeds 45.5 42.9 122.4 123.0 163.6
Malt 5.3 6.1 16.1 14.8 21.4
Other 0.2 0.1 1.6 1.9 2.0
Internal sales -0.1 -0.2 -0.4 -0.7 -0.8
Total 50.9 48.9 139.8 139.0 186.2
The Feed & Malt Division's operating result in JulySeptember was
to EUR 2.7 million (EUR 3.2 million) because the price increases
in energy and raw materials could not be fully transferred to
sales prices. Operating result in JanuarySeptember totalled EUR
6.8 million (EUR 7.7 million).
The Feed & Malt Division will continue to experience price
pressure due to the shortage of domestic grain raw material.
Ingredients
The Ingredients Division's turnover in JulySeptember totalled EUR
12.6 million (EUR 12.3 million). While the volume of ingredients
sales increased, the sales prices in some geographic areas were
lower than those in the comparison period. Turnover in
JanuarySeptember totalled EUR 39.6 million (EUR 37.3 million).
Ingredients turnover, EUR million
7-9/2006 7-9/2005 1-9/2006 1-9/2005 2005
Ingredients 12.6 12.3 39.6 37.3 50.2
The Ingredients Division's operating result in JulySeptember
totalled EUR 2.2 million (EUR 2.1 million) and EUR 6.2 million
(EUR 7.0 million) in JanuarySeptember.
Diagnostics
The Diagnostics Division's turnover in JulySeptember amounted to
EUR 2.1 million (EUR 2.1 million). Turnover in JanuarySeptember
totalled EUR 6.6 million (EUR 6.6 million).
Diagnostics turnover, EUR million
7-9/2006 7-9/2005 1-9/2006 1-9/2005 2005
Diagnostics 2.1 2.1 6.6 6.6 8.8
The Diagnostics Division's operating result in JulySeptember
amounted to EUR -0.5 million (EUR -0.4 million), burdened by the
inputs jointly made with the partner network in new technologies
and growing market segments. The Division continued to develop
existing sales channels and started the creation of new channels
for products to be launched in the future. Operating result in
JanuarySeptember was EUR -1.5 million (EUR -1.4 million).
The strategic evaluation of the Diagnostics business is in
preparation.
RESEARCH AND DEVELOPMENT
Research and development costs amounted to EUR 2.7 million (EUR
2.6 million) in the third quarter, and to EUR 8.3 million (EUR 7.7
million) in JanuarySeptember, representing 2.5% of turnover.
Raisio decentralised research and development to be a part of the
different businesses. This operating model serves better the needs
of the various businesses and also offers cost savings. The Group
further more decided to close down the Viikki research centre.
Research and development will be geographically centralized into
the new Raisio-based R&D centre completed earlier this year.
PERSONNEL
Raisio employed 1,379 people at the end of September (1,396 on 31
December 2005), 34.4% of whom worked outside Finland (33.0% on 31
December 2005).
At the end of September, the Food Division had 752 employees, Feed
& Malt 287 employees, Ingredients 74 employees, Diagnostics 75
employees, research and development 107 employees and service
functions 84 employees.
RATIONALIZATION MEASURES
Raisio has initiated several measures aiming to rationalize
operations and improve performance. The target for annual cost
savings is EUR 9 million.
As a result of the codetermination talks concluded in October, the
Finnish margarine production will be adjusted through lay-offs,
which have a labour effect of some 25 men years. As a result of
reorganization of the Food Division and rationalization of group
services 24 employees were made redundant. Furthermore 7 jobs were
reduced through retirements and other arrangements and some 10
temporary employments will be ceased.
The capacity expansion at the stanol ester plant in Raisio enables
all the European Benecol ingredient deliveries to be handled from
the Raisio plant, which reduces production in the US plant. This
resulted to reduction of 15 employees in the US plant.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares traded on the Helsinki
Stock Exchange in JanuarySeptember totalled 36.1 million (95.8
million). The value of trading was EUR 70.5 million (EUR 219.7
million), and the average price was EUR 1.95 (EUR 2.29). The
closing price on 30 September 2006 was EUR 1.46. The price of free
shares was down 35.4% from the beginning of the year.
A total of 1.0 million restricted shares (1.3 million) were traded
in JanuarySeptember. The value of trading was EUR 2.0 million
(EUR 3.0 million), and the average price was EUR 1.95 (EUR 2.34).
The closing price on 30 September 2006 was EUR 1.50. The price of
restricted shares was down 34.2% from the beginning of the year.
On 30 September 2006, Raisio had 41,200 registered shareholders
(42,953 on 31 December 2005). Of all shares, 16.4% were in foreign
holding (16.2% on 31 December 2005). The corresponding value for
free shares was 20.8% (20.5% on 31 December 2005).
Raisios market capitalization at the end of September amounted to
EUR 242.5 million (EUR 373.9 million on 31 December 2005).
The information of the repurchase of own shares published in the
first quarter Interim Report has not changed as the share
repurchasing ended in March 2006. The Annual General Meeting
granted the Board of Directors an authorisation to dispose all of
the company shares held by Raisio that is 4,930,500 free shares
and 41,200 restricted shares. This authorisation has not been
used.
The new OMX list was launched on 2 October 2006. Raisio V-shares
(non-restricted) are listed on the OMX list Mid Cap segment under
Consumer Staples sector. Raisio K-shares (restricted), previously
on the I-list, have been transferred into Prelist due to the
consent clause in the Articles of Association which prevents the
OMX listing.
OUTLOOK
Raisios full-year operating result, excluding one-off items, will
be clearly lower than the operating result of the previous year
excluding one-off items (EUR 9.1 million). However, the full-year
result including one-off items is estimated to be higher than in
the previous year (EUR -5.4 million).
Raisio, 31 October 2006
Raisio plc
Board of Directors
Further information:
Rabbe Klemets, CEO, tel. +358 (0)400 821 614
Taru Narvanmaa, Executive Vice President, Communications and
Investor Relations, tel. +358 (0)50 590 9398
Jyrki Paappa, Chief Financial Officer, tel. +358 (0)50 556 6512
A teleconference in English will be held on 31 October 2006 at
3:00 p.m. Finnish time, tel. +358 (0)9 8248 3405, PIN code 8846.
INCOME STATEMENT (EUR million)
1-9/06 1-9/05 2005
Turnover 328.4 321.7 434.6
Cost of sales -268.7 -253.6 -363.4
Gross profit 59.7 68.1 71.2
Other operating income and expenses, net -57.6 -57.3 -82.1
Operating result 2.1 10.8 -10.9
Financial income and expenses, net 1.5 3.9 4.4
Share of result of associated
companies and joint ventures -0.3 -0.3 -0.8
Result before taxes 3.3 14.4 -7.3
Income tax -1.4 -4.2 1.9
Result for the period from the
continuing operations 1.9 10.2 -5.4
DISCONTINUED OPERATIONS:
Result for the period from
discontinued operations 3.6 0.0 0.0
RESULT FOR THE PERIOD 5.4 10.2 -5.4
Attributable to:
Equity holders of the parent company 4.9 9.7 -6.0
Minority interest 0.5 0.4 0.6
Earnings per share from the profit
attributable to equity holders
of the parent company (EUR)
Earnings per share from continued
operations (EUR) 0.01 0.06 -0.04
Earnings per share from discontinued
operations (EUR) 0.02 0.00 0.00
The taxes reported in the income statement are based on the
proportion of estimated full-year taxes corresponding to the
result for the review period.
ONE-OFF ITEMS (EUR million)
1-9/06 1-9/05 2005
Food Division
Write-downs 0.0 0.0 -7.5
Feed & Malt Division
Write-downs 0.0 0.0 -8.4
Compensation resulting from the
contractual lease transfer 1.8 0.0 0.0
Diagnostics Division
Write-downs 0.0 0.0 -5.1
Other operations 0.0 0.0 1.0
Impact on result for the period 1.8 0.0 -19.9
Financial items 0.0 1.7 1.7
Impact on result from the continuing
operations 1.8 1.7 -18.2
BALANCE SHEET (EUR million)
30.9.06 30.9.05 31.12.05
Non-current assets
Intangible assets 13.9 12.2 13.4
Goodwill 11.7 16.7 11.6
Tangible assets 132.7 138.1 130.5
Shares in associated companies
and joint ventures 4.6 5.4 4.9
Financial assets available for sale 2.2 2.2 2.2
Receivables 8.1 6.0 6.2
Deferred tax assets 13.5 7.7 12.3
Current assets
Inventories 74.5 70.0 73.9
Accounts receivables and
other receivables 75.9 77.4 74.7
Financial assets at fair value
through profit or loss 87.0 135.5 117.0
Cash in hand and at banks 9.6 7.0 5.8
Total assets 433.6 478.2 452.5
Equity attributable to equity
holders of the parent company
Share capital 27.8 27.8 27.8
Own shares -11.4 -5.0 -8.7
Other equity attributable to
equity holders of the parent company 307.7 328.0 312.9
Minority interest 13.3 15.1 15.3
Deferred tax liabilities 9.5 10.2 8.7
Pension liabilities 0.4 0.7 0.4
Non-current interest-bearing liabilities 4.4 15.8 12.9
Other non-current liabilities 1.0 - -
Accounts payable and other liabilities 62.0 62.9 60.5
Current interest-bearing liabilities 19.0 22.7 22.8
Total equity and liabilities 433.6 478.2 452.5
CHANGES IN GROUP EQUITY (EUR million)
Sha- Sha- Re- Ot- Own Trans- Fair Re- To- Mino- To-
re re ser- her sha- lati- value tai- tal rity tal
ca- pre- ve re- res on re- ned in-
pi- mium fund ser- diffe- ser- ear- te-
tal re- ves ren- ve nings rest
serve ces
Equity at
1.1.2005
27.8 2.9 88.6 0.0 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
Dividends
paid - - - - - - - -34.7 -34.7 - -34.7
Changes in
translation
differen-
ces - - - - - 3.1 - - 3.1 - 3.1
Repurchase
of own
shares- - - - -5.0 - - - -5.0 - -5.0
Exchange differences
from receivables
considered to be
net investments
from a foreign
unit - - - - - -0.3 - - -0.3 - -0.3
Tax of
previous
- - - - - 0.1 - - 0.1 - 0.1
Cash flow
hedges
Transferred to
income statement
with taxes
deducted
- - - - - - -0.1 - -0.1 - -0.1
Investments available
for sale
Transferred to
income statement
with taxes
deducted
- - - - - - -0.2 - -0.2 - -0.2
Net profit
for review
period- - - - - - - 9.7 9.7 0.4 10.2
Other
changes
- - 0.0 - - - - 0.0 0.0 0.0 0.0
Equity at
30.9.2005
27.8 2.9 88.6 0.0 -5.0 0.6 0.0 235.8 350.8 15.1 365.9
Equity at
1.1.2006
27.8 2.9 88.6 0.0 -8.7 1.3 0.0 220.1 332.0 15.3 347.3
Dividend
paid - - - - - - - -8.0 -8.0 -2.5 -10.5
Changes in
translation
differen-
ces - - - - - -2.2 - - -2.2 0.0 -2.2
Repurchase
of own
shares- - - - -2,6 - - - -2,6 - -2,6
Exchange differences
from receivables
considered to be
net investments
from a foreign
unit - - - - - 0.1 - - 0.1 - 0.1
Tax of
previous
- - - - - 0.0 - - 0.0 - 0.0
Cash flow
hedges
Transferred to
the equity
with taxes
deducted
- - - - - - 0.0 - 0.0 - 0.0
Transferred to
income statement
with taxes
deducted
- - - - - - 0.0 - 0.0 - 0.0
Net profit
for review
period- - - - - - - 4.9 4.9 0.5 5.4
Other
changes
- - - - - - - 0.0 0.0 - 0.0
Equity at
30.9.2006
27.8 2.9 88.6 0.0-11.4 -0.9 -0.0 217.1 324.1 13.3 337.4
CASH FLOW STATEMENT (EUR million)
1-9/06 1-9/05 2005
Cash flow before change
in working capital 22.2 29.3 34.5
Change in working capital -0.5 -24.2 -27.0
Financial items and taxes 1.0 -0.3 -1.9
Cash flow from business operations 22.6 4.8 5.6
Investments -23.8 -33.8 -48.6
Proceeds from sale of fixed assets 0.1 7.6 8.3
Cash flow from investments -23.7 -26.2 -40.3
Change in non-current loans -9.6 -10.7 -14.0
Change in current loans -1.6 -0.6 -0.3
Repurchase of own shares -2.6 -4.7 -8.6
Dividends paid to equity holders
of the parent company -8.0 -34.7 -34.5
Dividends paid to minority interests -2.5 0.0 0.0
Cash flow from financial operations -24.3 -50.7 -57.4
Adjustment to translation difference -0.5 -0.4 -0.3
Change in liquid funds -25.9 -72.6 -92.4
Liquid funds at the beginning
of the period 122.9 214.1 214.1
Impact of change in market value on
liquid funds -0.4 0.9 1.2
Liquid funds at the end of the period 96.5 142.4 122.9
TURNOVER BY SEGMENT (EUR million)
1-9/06 1-9/05 2005
Food 158.2 154.4 210.2
Feed & Malt 139.8 139.0 186.2
Ingredients 39.6 37.3 50.2
Diagnostics 6.6 6.6 8.8
Other operations 0.5 0.7 1.3
Interdivisional turnover -16.3 -16.4 -22.2
Total turnover 328.4 321.7 434.6
OPERATING RESULT BY SEGMENT (EUR million)
1-9/06 1-9/05 2005
Food -6.3 1.5 -7.9
Feed & Malt 6.8 7.7 0.5
Ingredients 6.2 7.0 9.7
Diagnostics -1.5 -1.4 -7.3
Other operations -3.0 -4.1 -5.8
Eliminations -0.1 0.0 0.0
Total operating result 2.1 10.8 -10.9
NET ASSETS BY SEGMENT (EUR million)
30.9.06 30.9.05 31.12.05
Food 117.4 121.3 114.7
Feed & Malt 57.9 55.3 52.6
Ingredients 40.2 42.3 46.2
Diagnostics 11.4 15.1 10.8
Other operations and unallocated items 110.6 131.9 123.0
Total net assets 337.4 365.9 347.3
INVESTMENTS BY SEGMENT (EUR million)
1-9/06 1-9/05 2005
Food 11.6 21.6 31.2
Feed & Malt 3.7 3.4 5.0
Ingredients 2.6 3.6 5.3
Diagnostics 0.9 1.0 1.1
Other operations 2.1 7.8 10.3
Eliminations -0.2 -3.6 -3.6
Total investments 20.7 33.8 49.3
TURNOVER BY MARKET AREA (EUR million)
1-9/06 1-9/05 2005
Finland 198.3 202.5 272.5
Poland 33.2 26.8 36.6
Russia 26.9 22.7 31.3
Other Europe 64.3 65.6 86.4
ROW 5.7 4.1 7.6
Total 328.4 321.7 434.6
QUARTERLY PERFORMANCE (EUR million)
7-9/ 4-6/ 1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2006 2006 2006 2005 2005 2005 2005
Turnover by segment
Food 53.2 54.3 50.7 55.8 52.3 52.1 50.1
Feed & Malt 50.9 50.3 38.6 47.2 48.9 50.6 39.5
Ingredients 12.6 13.8 13.2 12.9 12.3 13.8 11.3
Diagnostics 2.1 2.3 2.2 2.3 2.1 2.4 2.1
Other operations 0.2 0.1 0.2 0.6 0.3 0.2 0.3
Interdivisional turnover-5.2 -5.5 -5.6 -5.7 -5.2 -6.1 -5.2
Total turnover 113.8 115.3 99.3 112.9 110.7 112.9 98.1
Operating result by segment
Food -2.0 -2.4 -1.9 -9.3 0.2 0.4 0.9
Feed & Malt 2.7 3.6 0.5 -7.2 3.2 2.8 1.7
Ingredients 2.2 2.3 1.8 2.7 2.1 2.1 2.7
Diagnostics -0.5 -0.5 -0.5 -6.0 -0.4 -0.4 -0.5
Other operations -0.1 -1.5 -1.4 -1.8 -1.5 -2.0 -0.6
Eliminations -0.1 0.0 0.0 -0.1 0.2 0.0 -0.1
Total operating result 2.1 1.5 -1.5 -21.6 3.8 2.9 4.1
Share of result of
associated companies -0.2 -0.1 0.0 -0.5 -0.3 0.0 -0.1
Segment results 1.9 1.4 -1.5 -22.1 3.5 2.9 4.0
Financial income
and expenses, net 0.4 0.5 0.6 0.5 2.1 1.0 0.8
Result before taxes 2.3 1.9 -0.9 -21.7 5.6 3.9 4.8
Income tax -0.9 -0.6 0.0 6.1 -1.5 -1.4 -1.3
Result for the period
from continuing operations1.4 1.3 -0.9 -15.6 4.1 2.5 3.5
KEY INDICATORS
30.9.06 30.9.05 31.12.05
Return on equity, ROE, % 2.1* 3.6 -1.5
Return on investment, ROI, % 3.3* 5.0 -1.3
Interest-bearing liabilities
at the end of the period, EURm 23.8 39.2 36.1
Gross investments, EURm 20.7 33.8 49.3
% of turnover 6.3 10.5 11.3
Depreciation, EURm 16.9 18.4 24.5
R & D expenses, EURm 8.3 7.7 10.3
% of turnover 2.5 2.4 2.4
Average personnel 1,422 1,421 1,414
Equity ratio, % 77.9 76.6 76.8
Gearing, % -21.6 -28.2 -25,0
Earnings/share from continuing
operations, EUR** 0.01 0.06 -0.04
Earnings/share from discontinued
operations, EUR** 0.02 0.00 0.00
Cash flow from operations/share, EUR** 0.14 0.03 0.03
Equity/share, EUR* 2.02 2.15 2.06
Average number of shares
during the period, in 1,000s**
Free shares 125,906 130,388 129,694
Restricted shares 34,525 34,562 34,556
Total 160,431 164,950 164,250
Average number of shares at the
end of the period, in 1,000s**
Free shares 125,655 128,512 126,848
Restricted shares 34,522 34,548 34,533
Total 160,177 163,060 161,381
Market capitalisation of shares at the
end of the period, EURm
Free shares 190.7 303.0 295.1
Restricted shares 51.8 81.6 78.8
Total 242.5 384.5 373.9
*Based on continuing and discontinued operations result
**Number of shares without own shares
CONTINGENT LIABILITIES (EUR million)
30.9.06 30.9.05 31.12.05
Assets given for security
For the company
Mortages on real estate 16.9 16.9 16.9
Securities pledged 0.0 0.0 0.0
Corporate mortgages 34.2 34.3 33.8
Contingent off-balance sheet liabilities
Non-cancellable other leases
Minimum lease payments 2.8 2.4 2.8
Contingent liabilities for the Company 1.5 1.5 1.5
Contingent liabilities for
associated companies
Guarantees 2.9 0.0 0.0
Contingent liabilities for others
Guarantees 0.0 0.1 0.0
Other liabilities 1.9 1.5 1.6
DERIVATIVE CONTRACTS (EUR million)
30.9.06 30.9.05 31.12.05
Nominal values of derivative contracts
Raw material futures 1.2 0.6 2.6
Currency forward contracts 30.7 20.2 34.9
