RAISIO PLC'S INTERIM REPORT 1 January - 31 March 2006
Raisio plc Stock Exchange Release 4 May 2006 at 11 a.m. Finnish time
RAISIO PLCS INTERIM REPORT 1 January 31 March 2006
THE FIRST QUARTER RESULT DROPPED
Slight increase in turnover
· Turnover in January March amounted to EUR 99.3 million (EUR
98.1 million in JanuaryMarch 2005).
· Operating result totalled EUR -1.5 million (EUR 4.1 million).
· The second quarter operating result is expected to break even
and full-year operating result to fall slightly short of the
previous years result excluding one-off items.
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.
Key figures, result
1-3/2006 1-3/2005 2005
Turnover, EUR million 99.3 98.1 434.6
Operating result, EUR million -1.5 4.1 9.1*
% of turnover - 4.2 2.1*
Result before taxes, EUR million -0.9 4.8 10.9*
Earnings per share, EUR -0.01 0.02 0.05*
*Excluding one-off items
Key figures, balance sheet
31.3.06 31.3.05 31.12.05
Return on investment, % -0.5 5.0 -1.3
Equity ratio, % 76.9 71.8 76.8
Gearing, % -19.7 -39.7 -25.0
Equity per share, EUR 1.99 2.11 2.06
CEO Rabbe Klemets:
The market situation, which weakened towards the end of 2005,
remained unchanged in the first quarter. Raisios difficulties in
the Swedish margarine market deepened, and competition in the malt
markets remained stiff. While healthy growth continued in
ingredients sales, the result fell from the comparison period.
Raisios food sales in Poland and Russia grew nearly 20 per cent
in the first quarter. To pave the way for growth in the Russian
feed business Raisio made its first feed business acquisition in
the country.
Strong emphasis on research and product development is the key to
Raisios renewal and subsequent improvement in growth and
profitability. Organic growth will be supported with structural
growth, especially in Russia and Poland. Raisio continued to look
for potential acquisitions in the growing food and feed markets in
these countries. The ingredients division is preparing for growth
in the Asian and South American markets by expanding its partner
network and engaging in professional marketing.
Raisio made changes to its organisational structure, effective as
of 1 May 2006. The organisation will hereafter consist of four
divisions: Food, Feed & Malt, Ingredients and Diagnostics. The
change aims at more rigorous performance monitoring and improved
customer orientation.
RESULT
Raisios turnover for JanuaryMarch amounted to EUR 99.3 million
(EUR 98.1 million), of which turnover from outside Finland
represented 37.9% (35.6%), or EUR 37.6 million (EUR 34.9 million).
The turnover of Raisio Life Sciences was EUR 15.4 million (EUR
13.4 million) and that of Raisio Nutrition EUR 85.6 million (EUR
85.9 million).
The Groups operating result in JanuaryMarch totalled EUR -1.5
million (EUR 4.1 million). Raisio Nutrition recorded an operating
result of EUR -1.4 million (EUR 2.6 million), Raisio Life Sciences
EUR 1.3 million (EUR 2.2 million) and other operations EUR -1.4
million (EUR -0.6 million). The increase in expenses for other
operations came, among other things, from external expert
services.
The first quarter result before taxes was EUR -0.9 million (EUR
4.8 million). The Groups net financial income in JanuaryMarch
totalled EUR 0.6 million (EUR 0.8 million).
The result for the JanuaryMarch period totalled EUR -0.9 million
(EUR 3.5 million).
Earnings per share in the first quarter amounted to EUR -0.01
(EUR 0.02).
Cash flow from business operations totalled EUR -7.5 million (EUR
-13.4 million) in the first quarter.
BALANCE SHEET AND FINANCIAL POSITION
The balance sheet total at the end of March was EUR 435.7 million
(EUR 452.5 million on 31 December 2005) and the equity of parent
company shareholders EUR 319.2 million (EUR 332.0 million on 31
December 2005). Equity per share at the end of March was EUR 1.99
(EUR 2.06 on 31 December 2005).
The net interest-bearing debt of Raisio at the end of March was
EUR -65.9 million (EUR -86.8 million on 31 December 2005). The
equity ratio at the end of March was 76.9% (76.8% on 31 December
2005), and the gearing ratio -19.7% (-25.0% on 31 December 2005).
Working capital totalled EUR 100.3 million (EUR 86.6 million on 31
December 2005). Gross investments in JanuaryMarch totalled EUR
7.4 million (EUR 4.7 million). The largest single investments were
equipment and machinery for the pure oats plant and the expansion
of capacity at the stanol ester plant.
In February, 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 due to the corporate and capital tax
approved in 2004. Raisio submitted its response in March 2006.
BUSINESS AREAS
Raisio Nutrition
Raisio Nutritions turnover in JanuaryMarch totalled EUR 85.6
million (EUR 85.9 million). Turnover increased in the milling and
oil milling businesses, as well as in the Polish and Russian food
businesses. Meanwhile, food potato, malt and Swedish margarine
sales decreased.
The plant for soy and oat -based fresh products came on line in
2006, and the products were introduced on the Finnish and Swedish
markets in January and February under the GoGreen brand. Keiju
margarines were upgraded in early 2006. They now contain Camelina
vegetable oil, which provides significant amounts of omega-3 fatty
acids, essential to the human organism. Keiju margarines have
improved their market position by some three percentage units.
No considerable changes took place in the market position of
Raisio's other product groups in the Finnish retail trade. While
the companys market position remained unchanged in the catering
business, Raisio saw a slight drop in the market share of its
bakery and industrial products.
Raisio maintained its market position in the Polish margarine
market where Benecol is the clear leader in functional margarines.
Polish exports have grown substantially, for example, to Hungary.
While the overall market in Russia did not show significant growth
in the early part of 2006, Raisios market share saw positive
development in both margarine and flake products. The company has
adopted measures to rectify its deteriorating position in the
Swedish market.
The overall market for farm feeds was slightly down on the
comparison period, mainly due to the good grass feed and grain
crops in 2005. Pork production increased by approximately five per
cent, while other livestock production remained at the level of
the comparison period. Discussions about avian flu have not yet
greatly impacted the feed market.
The fierce competition in malt prices has driven European malting
plants into financial difficulties and, in some cases, even
bankruptcy. Signs of price increases have now been detected. Beer
consumption continued to increase in Russia, but the volume of
imported malt is expected to drop to some 200,000 tonnes in 2006.
Raisio Nutrition turnover, EUR million
1-3/2006 1-3/2005 2005
Food 50.7 50.1 210.2
Margarine products 28.2 28.3 117.9
Milling products 19.6 18.1 77.0
Potato products 3.4 4.6 18.5
Soy-oat products 0.6 - -
Other - - -
Internal sales -1.1 -0.9 -3.1
Feed and malt 38.6 39.5 186.2
Feeds 36.1 36.2 163.6
Malt 2.3 3.0 21.4
Other 0.3 0.6 2.0
Internal sales -0.1 -0.2 -0.8
Internal sales for Raisio Nutrition -3.7 -3.8 -15.9
Total 85.6 85.9 380.6
Raisio Nutritions operating result in JanuaryMarch totalled EUR
-1.4 million (EUR 2.6 million). The operating result improved in
the potato and milling businesses. An increased demand for bio
diesel keeps the price of rapeseed oil high that had a positive
impact on the profitability of Raisios oil milling business. The
result was weakened, among other things, due to the increased
inputs into marketing and product development, as well as the
small initial sales volumes of the soy-oat plant. Raisio was not
able to fully transfer the higher expenses from energy and feed
raw material to sales prices.
Raisio Life Sciences
The turnover for Raisio Life Sciences grew by 15% in the first
quarter, amounting to EUR 15.4 million (EUR 13.4 million).
Turnover in the ingredients business saw a clear improvement, and
slight growth was recorded in the diagnostics business.
Ingredients sales were boosted by the high demand for Benecol
products in Europe. The most significant product launches included
Tropicana fruit juice, containing the Benecol ingredient, in the
UK, and Benecol capsules in Finland.
Raisio Life Sciences turnover, EUR million
1-3/2006 1-3/2005 2005
Ingredients 13.2 11.3 50.2
Diagnostics 2.2 2.1 8.8
Total 15.4 13.4 59.0
Raisio Life Sciences booked an operating result of EUR 1.3 million
(EUR 2.2 million) in the JanuaryMarch period. The decrease over
the comparison period resulted from higher marketing and raw
material prices in the ingredients business. The result in
diagnostics is still burdened by significant product development
inputs to develop new rapid testing methods.
The new capacity of the stanol ester plant in Raisio will come on
line in the second quarter.
RESEARCH AND DEVELOPMENT
The Groups main development projects involved pure oats products,
soy and oat -based fresh products and grain products with a low
glycaemic index. In the first quarter, Raisio introduced 37 new
food products on the Finnish market. Research and development
costs in the first quarter amounted to EUR 2.6 million (EUR 2.2
million).
PERSONNEL
Raisio employed 1,386 people at the end of March (1,396 on 31
December 2005), 34.2% of whom worked outside Finland (33.0% on 31
December 2005).
At the end of March, Raisio Nutrition had 1,047, Raisio Life
Sciences 148, R&D 104 and Group administration 87 employees.
Mr. Denis Mattsson has been appointed President of Raisios Food
division and member of the Executive Committee as of 1 May 2006.
Mr. Matti Rihko has been appointed President of the Ingredients
division and member of the Executive Committee as of 1 August
2006. Mr. Leif Liedes, President of Feed and Malt division has
been appointed member of the Executive Committee.
The President of Raisio Nutrition, Mr. Olavi Kuusela left the
company in April 2006. The President of Raisio Life Sciences, Mr.
Jukka Lavi will continue at Raisio until 30 September 2006.
DECISIONS MADE AT THE ANNUAL GENERAL MEETING
The Annual General Meeting held in Turku on 30 March 2006 approved
the financial statements for the financial year 1 January 31
December 2005 and discharged the members of the Supervisory Board
and the Board of Directors, as well as the Chief Executive Officer
and the deputy CEO, from liability. The Annual General Meeting
decided to distribute EUR 0.05 per share in dividend for 2005. The
dividend was paid to shareholders on 11 April 2006.
The Board of Directors proposals to the Annual General Meeting
were approved without changes. The Annual General Meeting
authorised the Board of Directors to decide on the disposal of
company shares. Raisio holds 4,930,500 free shares and 41,200
restricted shares. Repurchases ended on 29 March 2006.
The number of members on the Supervisory Board was set at 22. The
following members were appointed to the Supervisory Board as of
the latest Annual General Meeting (the last year of the term is
given in brackets): Juhani Enkovaara (2007), Risto Ervelä (2007),
Holger Falck (2009), Mikael Holmberg (2009), Esa Härmälä (2008),
Pentti Kalliala (2008), Hans Langh (2007), Johan Laurén (2009),
Asko Leinonen (2007), Antti Lithovius (2009), Paavo Myllymäki
(2008), Yrjö Ojaniemi (2008), Teemu Olli (2008), Heikki Pohjala
(2009), Raine Rekikoski (2008), Juha Saura (2009), Urban Silén
(2007), Tuula Tallskog (2007), Hannu Tarkkonen (2008), Johan Taube
(2007), Rita Wegelius (2009) and Tapio Ylitalo (2009).
Johan Kronberg and Mika Kaarisalo, authorised public accountants,
were elected as the companys auditors for the financial year
2007. PricewaterhouseCoopers Oy, authorised public accountants,
and Kalle Laaksonen, authorised public accountant, were elected as
deputy auditors.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares traded on the Helsinki
Stock Exchange in JanuaryMarch totalled 16.4 million (41.0
million). The value of trading was EUR 36.6 million (EUR 92.8
million), and the average price was EUR 2.24. The closing price on
31 March 2006 was EUR 2.12. The price of free shares was down 6.2%
from the beginning of the year.
A total of 405,938 restricted shares were traded in the first
quarter (661,826). The value of trading was EUR 0.9 million (EUR
1.5 million), and the average price was EUR 2.28. The closing
price on 31 March 2006 was EUR 2.20. The price of restricted
shares was down 3.5% from the beginning of the year.
On 31 March 2006, Raisio had 41,660 registered shareholders
(42,953 on 31 December 2005). Of all shares, 17.3% were in foreign
holding (16.2% on 31 December 2005). The corresponding value for
free shares is 21.9% (20.5% on 31 December 2005).
Raisios market capitalization at the end of March amounted to EUR
352.9 million (EUR 373.9 million on 31 December 2005).
REPURCHASE OF COMPANY SHARES
Based on the authorisation given by the Annual General Meeting in
March 2005, Raisio plc's Board of Directors decided to initiate
share repurchases in August 2005. Share repurchasing began on 10
August 2005 and ended at the expiry of the authorisation on 29
March 2006.
Shares were repurchased in order to develop the capital structure
of the company, to finance or carry out acquisitions or other
arrangements, or to be otherwise further assigned or cancelled.
The maximum number of shares the Board was authorised to
repurchase corresponded to 5% of the companys share capital and
votes. Share repurchasing was carried out at the price determined
in the open market on the Helsinki Stock Exchange and did not
follow the shareholders holding ratios. Detailed information
about the content of the authorisation is available in the stock
exchange release dated 16 February 2005.
Repurchases in the review period accounted for a total of
1,192,500 free shares at an average price of EUR 2.20 and 11,000
restricted shares at an average price of EUR 2.23. The trade price
totalled EUR 2,645,080.
From 10 August 2005 to 29 March 2006, share repurchases accounted
for a total of 4,930,500 free shares at an average price of EUR
2.28 and 41,200 restricted shares at an average price of EUR 2.32.
The number of repurchased free shares accounts for 3.78% of all
free shares and the votes they represent, while the corresponding
percentage for restricted shares is 0.12%. The repurchased shares
represent 3.01% of all shares and 0.70% of overall votes. The book
value of repurchased free shares is EUR 829,251 and that of
restricted shares EUR 6,929, or a total of EUR 836,180. The trade
price for free shares was EUR 11,256,303 and for restricted shares
EUR 95,643, or a total of EUR 11,351,946.
Prior to these purchases, the company and its subsidiaries did not
hold Raisio plcs shares. A share in Raisio or its subsidiary does
not entitle the holder to participate in the companys
shareholders meeting.
According to estimates, the share repurchases have not had a
significant impact on the distribution of share holdings or voting
rights in the company. Since the shares were repurchased in the
open market on the Helsinki Stock Exchange with no information
about the vendors, it is impossible to determine the portion that
any shares purchased from insiders, as defined in Section 1:4.1 of
the Companies Act, may represent of the companys share capital
and voting rights.
The Annual General Meeting held in March 2005 authorised the Board
of Directors to dispose of repurchased shares. This authorisation
was not exercised during its period of validity, which ended on 29
March 2006.
The Annual General Meeting held on 30 March 2006 granted the Board
of Directors new authorisation to dispose of 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 to date.
The authorisation is valid until the Annual General Meeting of
2007, however, for no longer than one year from the Annual General
Meeting of 30 March 2006. Detailed information about the
authorisation is available in the stock exchange release dated 15
February 2006.
The Board of Directors did not request the Annual General Meeting
in spring 2006 for new authorisation to repurchase shares.
OUTLOOK
The second quarter and also full-year turnover are expected to
increase. The second quarter operating result is expected to break
even and full-year operating result to fall slightly short of the
previous years result excluding one-off items.
Raisio, 4 May 2006
Raisio plc
Board of Directors
Further information:
Rabbe Klemets, CEO, tel. +358 400 821 614
Taru Narvanmaa, Executive Vice President, Communications and
Investor Relations, tel. +358 50 5909 398
Jyrki Paappa, Chief Financial Officer, tel. +358 50 5566 512
A press and analyst event will be organised on 4 May 2006 at 3.00
p.m. Finnish time in the Helsinki WTC, at Aleksanterinkatu 17,
Helsinki, meeting room 2, 2nd floor. A teleconference in English
will be held on 4 May 2006 at 4.00 p.m. Finnish time,
tel. +358 9 8248 5509, PIN code 199463.
INCOME STATEMENT (EUR million)
1-3/06 1-3/05 2005
Turnover 99.3 98.1 434.6
Cost of sales -80.0 -76.4 -363.4
Gross profit 19.3 21.6 71.2
Other operating income and expenses, net -20.8 -17.6 -82.1
Operating result -1.5 4.1 -10.9
Financial income and expenses, net 0.6 0.8 4.4
Share of result of associated
companies and joint ventures 0.0 -0.1 -0.8
Result before taxes -0.9 4.8 -7.3
Income tax 0.0 -1.3 1.9
RESULT FOR THE PERIOD -0.9 3.5 -5.4
Attributable to:
Equity holders of the parent company -1.1 3.4 -6.0
Minority interest 0.2 0.1 0.6
Earnings per share from the profit
attributable to equity holders
of the parent company (EUR) -0.01 0.02 -0.04
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)
1-3/06 1-3/05 2005
Raisio Nutrition
Write-downs 0.0 0.0 -15.9
Raisio Life Sciences
Write-downs 0.0 0.0 -5.1
Other operations 0.0 0.0 1.0
Impact on result for the period 0.0 0.0 -19.9
Financial items 0.0 0.0 1.7
Impact on result 0.0 0.0 -18.2
BALANCE SHEET (EUR million)
31.3.06 31.3.05 31.12.05
Non-current assets
Intangible assets 14.1 10.2 13.4
Goodwill 11.6 16.8 11.6
Tangible assets 131.2 127.1 130.5
Shares in associated companies
and joint ventures 4.8 1.5 4.9
Financial assets available for sale 2.2 8.1 2.2
Receivables 6.3 7.0 6.2
Deferred tax assets 13.1 8.7 12.3
Current assets
Inventories 83.1 68.8 73.9
Accounts receivables and
other receivables 71.8 66.5 74.7
Financial assets at fair value
through profit or loss 91.3 184.7 117.0
Cash in hand and at banks 6.1 6.8 5.8
Total assets 435.7 506.3 452.5
Equity attributable to equity
holders of the parent company
Share capital 27.8 27.8 27.8
Own shares -11.4 0.0 -8.7
Other equity attributable to
equity holders of the parent company 302.8 320.3 312.9
Minority interest 15.5 14.8 15.3
Deferred tax liabilities 8.6 10.3 8.7
Pension liabilities 0.4 0.7 0.4
Non-current interest-bearing liabilities 11.9 23.2 12.9
Accounts payable and other liabilities 60.9 85.8 60.5
Current interest-bearing liabilities 19.3 23.5 22.8
Total equity and liabilities 435.7 506.3 452.5
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
Dividend
will be
paid - - - - - - - -34.7 -34.7 - -34.7
Changes in
translation
differen-
ces - - - - - 1.0 - - 1.0 - 1.0
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
- - - - - - -0.1 - -0.1 - -0.1
Investments available
for sale
Gains from
recognition
at fair value
less taxes
- - - - - - 0.5 - 0.5 - 0.5
Net profit
for review
period- - - - - - - 3.4 3.4 0.1 3.5
Other
changes
- - - - - - - 0.0 0.0 0.0 0.0
Equity at
31.3.2005
27.8 2.9 88.6 0.0 0.0 -1.3 0.6 229.4 348.0 14.8 362.8
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
will be
paid - - - - - - - -8.0 -8.0 - -8.0
Changes in
translation
differen-
ces - - - - - -1.0 - - -1.0 0.0 -1.0
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
- - - - - - -0.1 - -0.1 - -0.1
Transferred to
income statement
with taxes
deducted
- - - - - - 0.0 - 0.0 - 0.0
Net profit
for review
period- - - - - - - -1.1 -1.1 0.2 -0.9
Other
changes
- - - - - - - - 0.0 - 0.0
Equity at
31.3.2006
27.8 2.9 88.6 0.0-11.4 0.4 -0.1 211.0 319.2 15.5 334.7
CASH FLOW STATEMENT(EUR million)
1-3/06 1-3/05 2005
Cash flow before change
in working capital 4.3 10.2 34.5
Change in working capital -13.3 -24.2 -27.0
Financial items and taxes 1.4 0.6 -1.9
Cash flow from business operations -7.5 -13.4 5.6
Investments -9.7 -6.8 -48.6
Proceeds from sale of fixed assets 0.0 0.0 8.3
Cash flow from investments -9.6 -6.8 -40.3
Change in non-current loans -3.0 -2.8 -14.0
Change in current loans -1.5 0.3 -0.3
Repurchase of own shares -2.6 0.0 -8.6
Dividends paid 0.0 0.0 -34.5
Cash flow from financial operations -7.2 -2.5 -57.4
Unallocated items -0.1 -0.1 -0.3
Change in liquid funds -24.4 -22.9 -92.4
Liquid funds at the beginning
of the period 122.9 214.1 214.1
Impact of change of market value on
liquid funds -1.0 0.3 1.2
Liquid funds at the end of the period 97.4 191.5 122.9
TURNOVER BY SEGMENT (EUR million)
1-3/06 1-3/05 2005
Raisio Nutrition 85.6 85.9 380.6
Raisio Life Sciences 15.4 13.4 59.0
Other operations 0.2 0.2 1.3
Interdivisional turnover -1.8 -1.4 -6.3
Total turnover 99.3 98.1 434.6
OPERATING RESULT BY SEGMENT (EUR million)
1-3/06 1-3/05 2005
Raisio Nutrition -1.4 2.6 -7.3
Raisio Life Sciences 1.3 2.2 2.4
Other operations -1.4 -0.6 -5.8
Eliminations 0.0 -0.1 0.0
Total operating result -1.5 4.1 -10.9
NET ASSETS BY SEGMENT (EUR million)
31.3.06 31.3.05 31.12.05
Raisio Nutrition 182.8 163.7 167.3
Raisio Life Sciences 56.9 51.1 57.0
Other operations and unallocated items 95.0 148.0 123.0
Total net assets 334.7 362.8 347.3
INVESTMENTS BY SEGMENT (EUR million)
1-3/06 1-3/05 2005
Raisio Nutrition 5.0 2.8 36.2
Raisio Life Sciences 1.5 1.0 6.3
Other operations 0.9 4.5 10.3
Eliminations - -3.6 -3.6
Total investments 7.4 4.7 49.3
TURNOVER BY MARKET AREA (EUR million)
1-3/06 1-3/05 2005
Finland 61.6 63.1 272.5
Poland 10.2 9.2 36.6
Russia 5.1 4.0 31.3
Other Europe 20.7 20.9 86.4
ROW 1.6 0.8 7.6
Total 99.3 98.1 434.6
QUARTERLY PERFORMANCE (EUR million)
1-3/ 10-12/ 7-9/ 4-6/ 1-3/
2006 2005 2005 2005 2005
Turnover of Raisio Nutrition 85.6 99.0 97.4 98.4 85.9
Turnover of Raisio Life Sciences 15.4 15.1 14.4 16.1 13.4
Turnover of other operations 0.2 0.6 0.3 0.3 0.2
Interdivisional turnover -1.8 -1.7 -1.4 -1.8 -1.4
Total turnover 99.3 112.9 110.7 112.9 98.1
Operating result
of Raisio Nutrition -1.4 -16.5 3.4 3.2 2.6
Operating result
of Raisio Life Sciences 1.3 -3.3 1.7 1.7 2.2
Operating result
of other operations -1.4 -1.8 -1.5 -2.0 -0.6
Eliminations 0.0 -0.1 0.2 0.0 -0.1
Total operating results -1.5 -21.6 3.8 2.9 4.1
Share of result
of associated companies 0.0 -0.5 -0.3 0.0 -0.1
Segment results -1.5 -22.1 3.5 2.9 4.0
Financial income
and expenses, net 0.6 0.5 2.1 1.0 0.8
Result before taxes -0.9 -21.7 5.6 3.9 4.8
Income tax 0.0 6.1 -1.5 -1.4 -1.3
Result for the period -0.9 -15.6 4.1 2.5 3.5
KEY INDICATORS
31.3.06 31.3.05 31.12.05
Return on equity, ROE, % -1.1 3.7 -1.5
Return on investment, ROI, % -0.5 5.0 -1.3
Interest-bearing liabilities
at the end of the period, EURm 31.6 47.4 36.1
Gross investments, EURm 7.4 4.7 49.3
% of turnover 7.4 4.8 11.3
R & D expenses, EURm 2.6 2.2 10.3
% of turnover 2.6 2.3 2.4
Average personnel 1,386 1,378 1,414
Equity ratio, % 76.9 71.8 76.8
Gearing, % -19.7 -39.7 -25,0
Earnings/share, EUR* -0.01 0.02 -0.04
Cash flow from operations/share, EUR* -0.05 -0.08 0.03
Equity/share, EUR* 1.99 2.11 2.06
Average number of shares
during the period, in 1,000s*
Free shares 126,416 130,585 129,694
Restricted shares 34,530 34,564 34,556
Total 160,946 165,149 164,250
Average number of shares at the
end of the period, in 1,000s*
Free shares 125,655 130,585 126,848
Restricted shares 34,522 34,564 34,533
Total 160,177 165,149 161,381
Market capitalisation of shares at the
end of the period, EURm
Free shares 276.8 308.2 295.1
Restricted shares 76.0 82.2 78.8
Total 352.9 390.4 373.9
*Number of shares without own shares
CONTINGENT LIABILITIES (EUR million)
31.3.06 31.3.05 31.12.05
Assets given for security
For the company
Mortages on real estate 16.9 52.7 16.9
Securities pledged 0.0 0.2 0.0
Corporate mortgages 34.2 34.1 33.8
Contingent off-balance sheet
Non-cancellable other leases
Minimum lease payments 2.5 2.6 2.8
Contingent liabilities for the Company 1.5 2.1 1.5
Contingent liabilities for others
Guarantees 0.0 0.0 0.0
Other liabilities 1.9 1.5 1.6
DERIVATIVE CONTRACTS (EUR million)
31.3.06 31.3.05 31.12.05
Nominal values of derivative contracts
Raw material futures 4.6 2.0 2.6
Forward electricity contracts 0.0 1.0 0.0
Currency forward contracts 42.0 38.9 34.9
