Raisio's growth continues
Raisio plc, Interim Report, 2 November 2010, at 8.30 a.m.
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2010
RAISIO'S GROWTH CONTINUES
July-September 2010, continuing operations
- Raisio's growth continued as planned and profitability remains stable.
- Net sales grew by nearly 25% amounting to EUR 118.9 million (Q3/2009:
EUR 95.5 million).
- The EBIT was EUR 6.1 million (Q3/2009: EUR 7.3 million) accounting for 5.1%
(7.7%) of net sales.
- Strong growth of the Brands Division continued: net sales +45%.
- Profitability of the feeds continues to show slow improvement, but the
difficult market situation of vegetable oil and malt weakened the Business to
Business Division's result.
Outlook remains unchanged
Raisio has moved to a growth phase that covers the years 2010 and 2011. We
expect a considerable increase in net sales in 2010. Our target is to maintain
the earlier level of profitability at the beginning of the growth phase even
though the costs of growth projects impact the Group's result and the market
situation in Business to Business Division will probably continue to be
challenging.
Raisio Group's key figures
--------------------------------------------------------------------------------
| | |Q3/2010 | Q3/2009 | Q1-Q3/ | Q1-Q3/ | 2009 |
| | | | | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Results from | | | | | | |
| continuing | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Net sales | M€ | 118.9 | 95.5 | 325.2 | 284.5 | 375.9 |
--------------------------------------------------------------------------------
| Change in net sales | % | 24.5 | -22.9 | 14.3 | -17.5 | -18.8 |
| | | | | | | |
--------------------------------------------------------------------------------
| EBIT | M€ | 6.1 | 7.3* | 16.4 | 16.3* | 20.5* |
--------------------------------------------------------------------------------
| EBIT | % | 5.1 | 7.7* | 5.0 | 5.7* | 5.5* |
--------------------------------------------------------------------------------
| Depreciation and | M€ | 4.2 | 3.7* | 11.8 | 11.5* | 17.0* |
| impairment | | | | | | |
--------------------------------------------------------------------------------
| EBITDA* | M€ | 10.2 | 11.0* | 28.2 | 27.9* | 37.5* |
--------------------------------------------------------------------------------
| Net financial | M€ | 0.8 | -0.3* | -2.2 | -0.8* | -0.5* |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | € | 0.03 | 0.03* | 0.07 | 0.07* | 0.09* |
| (EPS) | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | € | 0.03 | 0.03* | 0.07 | 0.07* | 0.09* |
| (EPS). diluted | | | | | | |
--------------------------------------------------------------------------------
| Balance sheet | | | | | | |
--------------------------------------------------------------------------------
| Equity ratio | % | - | - | 69.0 | 68.4 | 73.4 |
--------------------------------------------------------------------------------
| Gearing | % | - | - | -18.3 | -23.9 | -46.6 |
--------------------------------------------------------------------------------
| Net | M€ | - | - | -58.7 | -67.2 | -150.2 |
| interest-bearing | | | | | | |
| debt | | | | | | |
--------------------------------------------------------------------------------
| Equity per share | € | - | - | 2.04 | 1.80 | 2.06 |
--------------------------------------------------------------------------------
| Gross investments | M€ | | | 48.6** | 7.0 | 10.0 |
--------------------------------------------------------------------------------
| Share | | | | | | |
--------------------------------------------------------------------------------
| Market | M€ | - | - | 470.7 | 387.3 | 417.4 |
| capitalisation*** | | | | | | |
--------------------------------------------------------------------------------
| Enterprise value | M€ | - | - | 397.0 | 320.1 | 257.1 |
| (EV) | | | | | | |
--------------------------------------------------------------------------------
| EV/EBITDA | | - | - | 10.5 | 8.6 | 6.9 |
--------------------------------------------------------------------------------
* Excluding one-off items
** Including the acquisition of Glisten's shares
*** Excluding the company shares held by the Group
The figures for the comparison period are given in brackets in the text.
Chief Executive's Review
“Raisio continues the implementation of its growth strategy. Our aim is to grow
to become the leading provider of healthy and ecological snacks in Europe.
Integration of the British Glisten, acquired last spring, as part of Raisio
Group is proceeding according to plan. We are actively working to implement new,
strategically suitable acquisitions. At the Group level, we aim to maintain the
profitability of 5% also during the growth phase.
Several factors weakening the profitability of the Business to Business Division
were realized simultaneously in the review period. In case the present factors
affecting the Business to Business Division's operations remain substantially
unchanged, we are prepared for temporary further weakening in the Division's
profitability before year-end.
During the growth phase, we are proceeding according to plan. Our growth
projects increase the cost base and, regrettably, the Business to Business
Division cannot contribute to the implementation of Raisio's strategy. At the
same time, we are pleased to have been able to maintain the profitability of the
whole Group at the target level.”
RESULT FROM THE GROUP'S CONTINUING OPERATIONS
Net sales
Raisio Group's net sales from continuing operations in July-September totalled
EUR 118.9 million (Q3/2009: EUR 95.5 million), which is 24.5% more than in the
comparison period. Net sales of the Brands Division were EUR 63.0 million (EUR
43.5 million), those of the Business to Business Division EUR 56.3 million (EUR
54.2 million) and those of other operations EUR 0.2 million (EUR 0.2 million).
The main driver of net sales growth was the merger of Raisio UK with Raisio
Group reporting.
In January-September, net sales was EUR 325.2 million (EUR 284.5 million), which
is 14.3% more than in the corresponding period in 2009. Net sales from outside
Finland represented 42.9% (33.7%) of the total, amounting to EUR 139.5 million
(EUR 96.0 million).
Result
Raisio's EBIT from continuing operations in July-September was EUR 6.1 million
(EUR 7.3 million and, including one-off items EUR 7.0 million) accounting for
5.1% (7.7% and, including one-off items, 7.4%) of net sales. A donation of EUR
250,000 to the University of Turku was included in the third quarter EBIT of
2009. The EBIT of the Brands Division amounted to EUR 6.5 million (EUR 7.3
million), that of the Business to Business Division EUR 0.0 million (EUR 0.3
million) and that of other operations EUR -0.4 million (EUR -0.5 million and,
including one-off items, EUR -0.8 million).
In January-September, the Group's EBIT was EUR 16.4 million (EUR 16.3 million
and, including one-off items, EUR 15.3 million). Regardless of the Business to
Business Division's result, the Group's EBIT is line with the company's
objective, i.e. 5% of net sales.
Depreciations and impairments, allocated to operations in the income statement,
amounted to EUR 4.2 million (EUR 3.7 million) in July-September and to EUR 11.8
million (EUR 11.5 million) in January-September.
The third-quarter pre-tax result was EUR 6.8 million (EUR 7.0 million and,
including one-off items, EUR 6.8 million). The Group's pre-tax result for
January-September was EUR 14.3 million (EUR 15.6 million and, including one-off
items, EUR 14.4 million). Net financial items for July-September totalled EUR
0.8 million (EUR -0.3 million and, including one-off items, EUR -0.3 million).
The net financial items for January-September totalled EUR -2.2 million (EUR
-0.8 million and, including one-off items, EUR -0.9 million). Raisio's post-tax
result from continuing operations totalled EUR 4.9 million in July-September
(EUR 5.2 million and, including one-off items, EUR 5.0 million). The post-tax
result for January-September totalled EUR 10.2 million (EUR 11.2 million and,
including one-off items, EUR 10.3 million). Earnings per share for
July-September were EUR 0.03 (EUR 0.03 and, including one-off items, EUR 0.03)
and for January-September EUR 0.07 (EUR 0.07 and, including one-off items, EUR
0.07).
Balance sheet and cash flow
Raisio's balance sheet total at the end of September amounted to EUR 465.8
million (31 December 2009: EUR 444.2 million). Shareholders' equity totalled EUR
319.9 million at the end of September (31 December 2009: EUR 322.0 million),
while equity per share was EUR 2.04 (31 December 2009: EUR 2.06).
The Group's interest-bearing debt was EUR 73.5 million at the end of September
(31 December 2009: EUR 62.8 million). Net interest-bearing debt was EUR -58.7
million (31 December 2009: EUR -150.2 million). The equity ratio totalled 69.0 %
(31 December 2009: 73.4%) and net gearing was -18.3% (31 December 2009: -46.6%).
Return on investment was 5.4% (31 December 2009: 6.1%).
Cash flow from business operations was EUR 15.2 million (Q3/2009: EUR 21.3
million) in July-September and EUR 10.3 million (EUR 27.6 million) in
January-September.
Working capital amounted to EUR 80.0 million at the end of the review period
(Q3/2009: EUR 82.2 million). Raisio's interest-bearing financial assets amounted
to some EUR 132 million at the end of the review period. Including securities
investments, the Group's financial assets totalled approximately EUR 147 million
at the end of the review period.
Investments
Gross investments in the third quarter, excluding investments in securities,
were EUR 2.1 million (EUR 3.0 million) accounting for 1.8% (3.2%) of net sales.
Gross investments of the Brands Division were EUR 0.6 million (EUR 1.1 million),
those of the Business to Business Division EUR 1.3 million (EUR 1.7 million) and
those of other operations EUR 0.2 million (EUR 0.3 million).
Gross investments in January-September were EUR 48.6 million (EUR 7.0 million).
The largest investment of 2010 has been the acquisition of Glisten's shares.
Raisio paid EUR 22.2 million for Glisten's share capital and financed the
repayment of Glisten's credits at the time of acquisition, granted by financial
institutions, in a total amount of EUR 36.5 million. Raisio has also invested in
new, consumer-friendly and easy-to-use packages by renewing packaging lines in
Finland.
Research and development
The basis of Raisio's research and development is to provide consumers and
customers with products and solutions that meet their requirements. Recent
research evidence and new product applications are given emphasis in the
Benecol's product development. In the review period, the research and
development of foods focused on new type of innovative Elovena snacks and
packaging technology. In the feeds, the focus remains on ensuring the well-being
of animals, improving the effectiveness and profitability of livestock
production as well as reducing environmental impacts.
In October, after the review period, Raisio published carbon footprint
calculations on its feeds. Carbon footprint calculation and measuring of the
environmental impacts of feeds have improved Raisio's knowledge on its own
production chain. These measures also help reduce the environmental impacts of
livestock production with the use of more effective feeding solutions. The
impact of environmental issues is even more significant in the feed chain than
in Raisio's brands business due to remarkably larger raw material flows. Carbon
footprint calculation of feeds provides reliable source information to the
customer industry's product development helping them to meet consumer needs.
Environmental impacts of food production will determine consumer choices even
more in the future. We will also continue the carbon footprint calculation and
labelling of our foods.
The Group's investment in research and development in July-September totalled
EUR 1.5 million (EUR 1.3 million), or 1.3% (1.3%) of net sales. The research and
development investments of the Brands Division were EUR 1.2 million (EUR 0.9
million) and those of the Business to Business Division EUR 0.3 million (EUR 0.3
million). The Group's investment in research and development in
January-September totalled EUR 4.4 million (EUR 4.3 million), or 1.4% of net
sales (1.5%).
SEGMENT INFORMATION
BRANDS DIVISION
Net sales of the Brands Division grew by 45% amounting to EUR 63.0 million (EUR
43.5 million). The main driver of net sales growth was the merger of Glisten,
Raisio's business operations in Western Europe, with the Group's financial
reporting. In the review period, the sales of Elovena, Sunnuntai and Carlshamn
developed favourably. Net sales of the Brands Division were EUR 170.9 million
(EUR 132.1 million) in January-September, representing year-over-year growth of
almost 30%. The Division accounted for 52% of the Group's net sales.
The third quarter EBIT of the Brands Division was EUR 6.5 million (EUR 7.3
million) accounting for 10.3% (16.8%) of net sales. The January-September EBIT
was EUR 17.1 million (EUR 17.7 million) accounting for 10.0% (13.4%) of net
sales.
Local brands
Raisio's locally strong brands are, e.g., Elovena, Sunnuntai, Carlshamn, Nordic
and The Dormen. Net sales generated by local brands grew considerably amounting
to EUR 51.3 million (EUR 33.2 million). In January-September, net sales totalled
EUR 134.0 million (EUR 99.7 million).
In the Western European operations, the market situation in Great Britain
remained challenging. Sales volume and profitability in consumer products
continued to show a generally upward trend despite continuing high levels of
promotional activity across all market sectors which increased the fluctuation
in consumer demand. Raisio implemented an extensive media campaign and
successfully re-launched The Dormen brand of premium snacking nuts. Furthermore,
Raisio renewed its agreements with some airline groups on the serving of The
Dormen nuts on the flights.
In Finnish and Swedish markets of Northern European operations, sales volumes of
the main brands increased even though the exceptionally warm summer reduced
baking and sales of flakes. On the other hand, we reached all-time sales records
in easy-to-bake Sunnuntai products. Successful launches of new snack products
enhanced the sales of Elovena products in Finland. Raisio launched organic bread
called Elovena paahtopalat as well as non-dairy Elovena lusikoitavat välipalat
and The Dormen nuts as novelties. With The Dormen, the company is aiming to
establish its position as a category creator in premium nuts.
Non-dairy snack products called Elovena lusikoitavat välipalat were launched in
Finland in the early autumn and they enjoyed an excellent reception. The
products also got plenty of shelf space in the shops. Furthermore, Raisio
launched the First Finnish organic bread family under the Elovena brand. Elovena
paahtopalat is a new kind of option for consumers. This ecological bread with a
long preservation is additive-free and baked using Finnish organic raw
materials.
Elovena was rated the second-most valued Finnish food brand in the annual study,
The most valued brands 2010, conducted by Markkinointi & Mainonta magazine this
autumn. Of all brands, Elovena was rated the 13th most valued. Last year Elovena
was the 28th, so the brand's appreciation improved by a splendid 15 positions.
Sales volumes of products sold under the Carlshamn brand in Sweden further
increased. Raisio's position as market second strengthened in soyghurts, i.e.
non-dairy snacks, and rose close to 40%. Soyghurts sold under the Carlshamn
brand are widely represented in the selections of grocery shops, and consumers
trust the brand relaunched at the beginning of 2009. Sales of non-dairy products
are still increasing in Sweden. Carlsham brand is showing the most rapid growth,
approximately 20% per year. Swedish consumers have warmly welcomed the novelties
of Carlshamn product family.
In our Eastern European operations in Russia and Ukraine, sales and volumes
developed well in the third quarter, and Nordic has established its position as
a trusted brand. Because of raw material prices, consumer products are under
price pressure in Russia, but the state government has denied price increases
for the time being. Nevertheless, Raisio's business operations remained
profitable. In Poland, our target is to grow.
International brands - Benecol
Benecol's net sales increased by over 6% in July-September totalling EUR 11.8
million (EUR 11.0 million). In January-September, net sales totalled EUR 37.0
million (EUR 34.5 million). Benecol's profitability has stabilised at a good
level.
In Benecol, both net sales and volume growth continued. The sales growth in
Benecol products continued strong in Great Britain, Spain and Greece despite the
challenging economic situation of the countries. Advertising campaigns and
product promotions conducted by our partners supported the sales growth. In
other European countries, the sales of Benecol products remained at the last
year's level. Raisio has expanded the service concept offered to the partners,
and we will further strengthen the expert role of Benecol brand together with
our partners.
Strong sales growth continued in Benecol products in Thailand. Raisio's partner
in Thailand is a good example of how to reach consumers and to increase the
brand awareness with products suitable to local markets and with well-planned
marketing measures. When operating in new markets, long-term work to train and
guide both consumers and healthcare professionals is extremely important to
ensure the future success.
The renewed Benecol logo and pack design will further establish Benecol's
position as an international expert brand. With this renewal, we aim to achieve
better and more harmonised brand awareness all over the world and to stand out
from competitors on the store shelves with our fresh product packages with good
visibility. The renewal is based on results provided by international consumer
studies. New Benecol product packages can already be seen in Thailand, Columbia,
Great Britain, Ireland, Turkey, Romania, Spain and Finland.
Key figures for the Brands Division
--------------------------------------------------------------------------------
| | | Q3/2010 | Q3/2009 | Q1-Q3/ | Q1-Q3/ | 2009 |
| | | | | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Net sales | M€ | 63.0 | 43.5 | 170.9 | 132.1 | 177.6 |
--------------------------------------------------------------------------------
| International | M€ | 11.8 | 11.0 | 37.0 | 34.5 | 47.0 |
| brands | | | | | | |
| - | | | | | | |
| Benecol | | | | | | |
--------------------------------------------------------------------------------
| Local brands | M€ | 51.3 | 33.2 | 134.0 | 99.7 | 133.1 |
--------------------------------------------------------------------------------
| EBIT | M€ | 6.5 | 7.3 | 17.1 | 17.7 | 20.5 |
--------------------------------------------------------------------------------
| EBIT | % | 10.3 | 16.8 | 10.0 | 13.4 | 11.5 |
--------------------------------------------------------------------------------
| Investments | M€ | 0.6 | 1.1 | 45.0 | 2.2 | 3.3 |
--------------------------------------------------------------------------------
| Net assets | M€ | - | - | 144.4 | 82.9 | 69.6 |
--------------------------------------------------------------------------------
Outlook
Raisio aims to grow both organically as well as through acquisitions. Impacts of
the European economic situation on the overall demand and consumers' purchase
power bring challenges to the operations. So far it seems, however, that the
brand portfolio works well in the company's market areas and that, e.g.,
significant promotion activities haven't affected the overall profitability
considerably. Regarding the acquisitions, Raisio is proceeding as planned and
although the year-end 2011 growth target is challenging, it is feasible in the
light of present-day knowledge.
BUSINESS TO BUSINESS DIVISION
Net sales of the Business to Business Division totalled EUR 56.3 million (EUR
54.2 million) in July-September. Net sales figures of feed business also include
feed protein business. Net sales were reduced by the impact of an exceptionally
hot summer on sales volume and net sales of fish feeds both in Finland and
abroad. Because of the heat fish were eating much less than normally and, at its
worst, the heat caused fish mortality and thus the market could not recover even
in the autumn. Net sales of the Business to Business Division totalled EUR
155.3 million (EUR 159.3 million) in January-September. The Division accounted
for 48% of the Group's net sales.
The third-quarter EBIT of the Business to Business Division totalled EUR 0.0
million (EUR 0.3 million), or 0.1% (0.6%) of net sales. The major single factor
in the reduced EBIT was the low profitability of rapeseed oil exports. Malt
market overcapacity together with tough price competition dropped the unit
margin and kept the profitability weak in spite of the sales volume growth.
Sales volume of fish feeds was clearly lower than in the comparison period and
this weakened the profitability of feed business. In January-September, the EBIT
of the Division was EUR 1.4 million (EUR 1.0 million).
In the review period, the profitability of livestock production complicated the
activities in the farms and increased delayed payments. Exceptional pricing of
the main competitors during the autumn was not in line with increased raw
material costs. Therefore the competition has been extremely tight and the will
to regain the lost market shares has been an obvious motive for the activities.
As a result of improved operations, the profitability of feeds remained nearly
at the earlier level.
Key figures for the Business to Business Division
--------------------------------------------------------------------------------
| | | Q3/2010 | Q3/2009 | Q1-Q3/ | Q1-Q3/ | 2009 |
| | | | | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Net sales | M€ | 56.3 | 54.2 | 155.3 | 159.3 | 205.6 |
--------------------------------------------------------------------------------
| Feeds | M€ | 46.8 | 48.8 | 133.2 | 136.1 | 176.1 |
--------------------------------------------------------------------------------
| Malt | M€ | 7.9 | 4.8 | 15.7 | 20.1 | 26.3 |
--------------------------------------------------------------------------------
| Other | M€ | 1.9 | 0.7 | 6.8 | 3.5 | 3.6 |
--------------------------------------------------------------------------------
| EBIT | M€ | 0.0 | 0.3 | 1.4 | 1.0 | 3.0 |
--------------------------------------------------------------------------------
| EBIT | % | 0.1 | 0.6 | 0.9 | 0.6 | 1.4 |
--------------------------------------------------------------------------------
| Investments | M€ | 1.3 | 1.7 | 2.9 | 4.1 | 5.4 |
--------------------------------------------------------------------------------
| Net assets | M€ | - | - | 87.6 | 87.7 | 79.2 |
--------------------------------------------------------------------------------
Outlook
Producer prices of livestock products have not yet reacted rapidly enough to the
price increase of feeds, which may temporarily force the farmers to use
farm-made mixes instead of industrial ones.
Feed business will provide its customers with a feeding plan programme that
enables feeding optimisation at the farm level including also environmental
aspects. Carbon footprint calculation of Raisio's feeds supports the
identification of environmental impacts of the whole food chain and provides
reliable calculation data for customers who consider it useful in their own
operations. Carbon footprint calculation also supports raw material choices and
product development in feeds.
Malt market is estimated to continue very challenging also in the last quarter.
Furthermore, the considerable increase in energy price in Finland makes
follow-through sales price increases challenging.
Long-term cooperation agreement between Raisio and Neste Oil regarding the
utilisation of Raisio's rapeseed oil surplus as raw material in Neste Oil's
renewable diesel will strengthen our position as a significant raw material
supplier in the bioenergy production chain. Rapeseed oil deliveries to Neste Oil
will be started in full at the beginning of 2011. This agreement will open new
opportunities for Raisio to stabilise and develop the feed protein business.
GRAIN MARKET
Grain crop harvested in Finland was clearly lower than domestic consumption due
to decreased arable areas and dry summer. In the previous years, record crops
were harvested in Finland and grain production greatly exceeded the consumption.
At the end of the summer, Russia banned grain exports because of drought and
exceptionally poor crops. This almost doubled the price of wheat in the world
markets. Prices in the EU and Finland followed the common development. Price
increase was as rapid as three years ago during the food crisis. At that time,
the stock levels of wheat were sufficient for only two months' consumption. This
year the stocks are at three month's level thanks to earlier good crop years.
Globally there is no lack of wheat but of cheap wheat since the Russia's 15 %
part of wheat production was not available for sale. On the other hand,
intervention stocks in Finland owned by the EU Commission are considerable and
will be on the markets during the crop year. Fast price increases in grains as
well as in protein and oil plants brought speculative money back to grain
exchanges, which further increases volatility in grain raw materials.
Supply of grains and rapeseed was active after the harvest period in Finland. At
the turn of September to October the markets overheated. After the prices fell,
the markets calmed down and the supply nearly dried up. Strong volatility in
grain raw material prices will continue along with the changes in supply and
demand both in global and domestic markets. Controlling of volatility in grain
raw material prices will be essential to Raisio's profitability also in the
future.
Raisio's flexible pricing of grain raw materials has been proven effective and
the company continues to develop cooperation models together with its contract
farmers.
PERSONNEL
Raisio Group's continuing operations employed 1,261 people at the end of
September (31 December 2009: 593 people). At the end of the review period, the
Brands Division had 948, the Business to Business Division 254 and the service
functions 59 employees. 58% of the personnel (14% 31 December 2009) were working
outside of Finland.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares that were traded on NASDAQ OMX Helsinki
Ltd in January-September totalled 34.0 million (27.2 million). The value of
trading was EUR 93.5 million (EUR 52.0 million) and the average price EUR 2.75
(EUR 1.92). The closing price on 30 September 2010 was EUR 2.93.
A total of 0.9 million (0.9 million) restricted shares were traded in
January-September. The value of trading was EUR 2.4 million (EUR 1.7 million)
and the average price EUR 2.76 (EUR 1.92). The closing price on 30 September
2010 was EUR 2.90.
On 30 September 2010, the company had a total of 36,274 registered shareholders
(37,384 shareholders on 31 December 2009). Foreign ownership of the entire share
capital was 12.9% (13.3% on 31 December 2009).
Raisio plc's market capitalisation at the end of September amounted to EUR 482.9
million (EUR 441.4 million 31 December 2009) and, excluding the company shares
held by the Group, to EUR 470.7 million (EUR 417.4 million on 31 December 2009).
During the review period, a total of 43,518 restricted shares were converted
into free shares.
The number of issued free shares was 130,740,825 while the number of restricted
shares was 34,408,205. The share capital entitled to 818,904,925 votes.
At the end of the review period, Raisio plc held 3,950,600 free shares and
201,295 restricted shares. The number of free shares accounts for 3.02% of all
free shares and the votes they represent, while the corresponding figure for
restricted shares is 0.59%. In all, the company shares held by the Group
represent 2.51% of the company's entire share capital and 0.97% of overall
votes.
Raisio plc's subsidiaries do not hold any shares in the parent company. The
Raisio Group Research Foundation holds 150,510 restricted shares, which is 0.44%
of the restricted shares and the votes they represent and, correspondingly,
0.09% of the whole share capital and 0.37% of the votes it represents. A share
in Raisio or its subsidiary does not entitle the holder to participate in the
Annual General Meeting.
AUTHORISATIONS TO REPURCHASE OWN SHARES AND TO SHARE ISSUES
The Annual General Meeting of the spring 2010 has authorised the Board of
Directors to decide on the repurchasing of a maximum total of 6,000,000 free and
1,500,000 restricted shares to the company. The authorisation will be valid
until 25 September 2011. Furthermore, the Meeting authorised the Board of
Directors to decide on the share issues (1) by disposing of all of the company
shares and any potentially repurchased own shares, a maximum total of 16,504,404
shares, 1,701,295 of which can be restricted shares, and (2) by issuing a
maximum of 16,500,000 new free shares against payment. The share issue
authorisations will be valid until 25 March 2015 at the latest. The details of
the authorisations are available in the stock exchange release published on 11
February 2010.
In the review period, the company has not acquired its own shares.
In the review period, 11,453 free shares were assigned to the Chairman of the
Board and Board members as part of the compensation for managing their duties,
in line with the decisions taken by the Annual General Meetings held in 2009 and
2010.
Furthermore, a total of 553,056 free shares were assigned as a reward for the
second earnings period of the share-based incentive scheme (financial year 2009)
to the 51 persons covered by the scheme as well as a total of 168,000 free
shares as recognition of and reward for the successfully completed divestment of
the margarine business in 2009, also to 51 persons.
Directed share issue
The Board of Directors of Raisio plc decided, on 23 June 2010, on the share
issue against payment directed to Raisio Management Oy. In the share issue, a
total of 4,120,000 free shares held by the company were assigned, deviating from
the pre-emptive subscription right of shareholders, to be subscribed by Raisio
Management Oy. The company had a weighty financial reason to deviate from the
pre-emptive subscription right of shareholders since the shares assigned in the
share issue were used to implement the incentive and commitment system for the
members of the Raisio Management Team. As the assigned free shares in the share
issue were company shares held by Raisio plc, the number of the company's shares
remained unchanged.
The subscription price (assignment price) of a free share was the trade volume
weighted average quotation of the company's free share on the NASDAQ OMX
Helsinki Ltd during 5 May - 22 June 2010, i.e. EUR 2.58. The share subscription
period was 1 - 2 July 2010 and the subscribed shares had to be paid on 16 July
2010 at the latest. The subscription price has been paid to the company and
registered to the reserve for invested unrestricted equity of the company.
SHARE-BASED INCENTIVE SCHEMES
Management incentive scheme 2010 - 2013
In June 2010, the Board of Directors of Raisio plc decided on a new incentive
scheme for the members of Raisio Group's Management Team. The purpose of the
scheme is to commit the members of the Management Team to the company by
encouraging them to acquire and hold company shares, and this way to increase
the company's shareholder value in the long run, as well as to support the
achievement of the company's strategic objectives.
The share ownership has been implemented through Raisio Management Oy owned by
Raisio plc's Managing Director and seven members of the Group's Management Team.
In July 2010, the company acquired a total of 362,740 Raisio plc's free shares
at market price, as well as a total of 4,120,000 free shares from Raisio plc in
a directed share issue. After this, the members of the Management Team hold,
through their company, a total of 4,482,740 free shares, which covers some 2.7%
of all of the Raisio plc's shares and some 0.5% of all of the votes of the
shares. The acquisitions were financed by the capital investments of the members
of the Management Team, in the amount of EUR 1.2 million, as well as by a loan
of EUR 10.5 million granted by Raisio plc. The scheme has been described in
detail in the stock exchange release published on 23 June 2010.
Share-based incentive scheme 2010
Raisio has a three-year, share-based incentive scheme the purpose of which is to
combine the objectives of owners and key personnel in order to increase the
capitalisation value of the company and to commit the key personnel to the
company by offering them a competitive reward system based on shareholding.
In March 2010, the Board of Directors of Raisio plc decided on the share-based
incentive scheme for the third earning period, which is the financial year 2010.
The earnings criterion applied is operating result in proportion to net sales,
in addition to which a prerequisite for receipt of the reward is that a certain
net sales during the fiscal year 2010 will be reached. The number of free shares
to be distributed is a maximum total of 600,000. The scheme has been described
in detail in the stock exchange release published on 18 March 2010.
Subgroup Glisten's share-based incentive schemes 2010-2012
In August 2010, the Board of Directors of Raisio plc decided on two synthetic
share-based incentive and commitment schemes for the management of Raisio's
British subgroup Glisten and key employees. The purpose of the schemes is to
combine the objectives of owners, management and key employees in order to
increase the company's capitalisation value, to commit the management and key
employees to the company and to offer them a competitive reward system based on
the value of a share.
On the basis of the first scheme, a cash reward will be paid by the end of May
2012. Total amount of the reward equals the value of 966,117 Raisio plc free
shares. Value of a free share will be determined by its trade volume weighted
average quotation on the NASDAQ OMX Helsinki Ltd in March 2012 subtracted by a
dividend per share payable decided by the Annual General Meeting of 2012.
A prerequisite for receipt of the reward is that each person now appointed to
the scheme will still be employed by Raisio Group on 8 April 2012. There are 36
persons within the scheme.
On the basis of the second scheme, a cash reward corresponding to a maximum
total of 420,000 Raisio plc free shares will be paid. In case the subgroup
Glisten's EBIT for the term ending 30 June 2011 exceeds the level defined in the
scheme, a reward equivalent to the value of 210,000 Raisio plc free shares will
be paid by the end of September 2011. Value of a free share will be determined
by its trade volume weighted average quotation on the NASDAQ OMX Helsinki Ltd in
August 2011. Furthermore, in case the subgroup Glisten's EBIT for the term
ending on 30 June 2012 exceeds the level defined in the scheme, a reward
equivalent to 210,000 Raisio plc free shares will be paid by the end of
September 2012. Value of a free share will be determined by its trade volume
weighted average quotation on the NASDAQ OMX Helsinki Ltd in August 2012.
Glisten Ltd's CEO and CFO are within the second scheme.
DECISIONS MADE AT THE ANNUAL GENERAL MEETING
Raisio plc's Annual General Meeting held on 25 March 2010 approved the financial
statements for the financial year 1 January - 31 December 2009 and discharged
the members of the Board of Directors and the Supervisory Board, as well as the
Chief Executive Officer, from liability. The Annual General Meeting decided to
distribute a dividend of EUR 0.09 per share. The dividend was paid to the
shareholders on 8 April 2010.
A Stock Exchange Release was published on 25 March 2010 concerning the decisions
made by the Meeting in addition to which the decisions were described in the
Interim Report of January-March.
CHANGES IN GROUP STRUCTURE
Incorporation of feed protein business
Raisio Nutrition Ltd's feed protein business (earlier: vegetable oil business),
i.e. manufacturing and trade of meals and oils will be incorporated to the
limited company named Proteinoil Oy through partial demerger. Incorporation is
meant to come into effect on 31 December 2010.
Raisio Finance NV
In June, Raisio plc and Raisio Nutrition Ltd founded a company in Belgium named
Raisio Finance NV, which operates in financing of group companies. The new
subsidiary has started its operations. Its share capital is owned by the
founding companies.
Glisten Ltd.
The acquisition of snack foods producer Glisten plc came into force on 8 April
2010 after the completion of related legal conditions. Glisten was delisted from
the AIM of London Stock Exchange on 9 April 2010. The subgroup formed with
Glisten Ltd as a parent company was made part of Raisio Group on 8 April 2010
through the Raisio plc's subsidiary Raisio UK Ltd.
RISKS AND SOURCES OF UNCERTAINTY IN THE NEAR FUTURE
Volatility in raw material prices is estimated to continue strong. Controlling
of volatility is essential for Raisio's profitability. Main risks in the near
future are related to any possible changes caused by the general economic
development in the Group's key market areas.
The risks and outlook of the businesses in the near future are further examined
in the Segment information of this Interim report.
OUTLOOK REMAINS UNCHANGED
Raisio has moved to a growth phase that covers the years 2010 and 2011. We
expect a considerable increase in net sales in 2010. Our target is to maintain
the earlier level of profitability at the beginning of the growth phase even
though the costs of growth projects impact the Group's result and the market
situation in Business to Business Division will probably continue to be
challenging.
Raisio, 2 November 2010
RAISIO PLC
Board of Directors
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO, tel. +358 50 5566 512
Heidi Hirvonen, Communications Manager, tel. +358 50 567 3060
A press and analyst event in Finnish will be arranged on Tuesday 2 November 2010
at 1:30 p.m. Finnish time in Helsinki. It will be held at Hotel Scandic
Simonkenttä, in the Mansku meeting room. The address is Simonkatu 9, Helsinki.
A teleconference in English will be held on 2 November 2010 at 3:00 p.m. Finnish
time. Participants are requested to call the number +358 9 8248 8000, PIN code
1725.
The interim report has not been audited.
CONDENSED FINANCIAL STATEMENTS AND NOTES
INCOME STATEMENT (M€)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS: | | | | | |
--------------------------------------------------------------------------------
| Net sales | 118.9 | 95.5 | 325.2 | 284.5 | 375.9 |
--------------------------------------------------------------------------------
| Expenses corresponding to | -100.4 | -77.8 | -270.5 | -234.2 | -313.3 |
| products sold | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 18.5 | 17.7 | 54.7 | 50.3 | 62.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income and | -12.4 | -10.7 | -38.3 | -35.1 | -43.2 |
| expenses, net | | | | | |
--------------------------------------------------------------------------------
| EBIT | 6.1 | 7.0 | 16.4 | 15.3 | 19.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 0.8 | 0.5 | -0.2 | 2.2 | 3.1 |
--------------------------------------------------------------------------------
| Financial expenses | 0.0 | -0.8 | -1.9 | -3.1 | -3.7 |
--------------------------------------------------------------------------------
| Share of result of | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 |
| associated companies and | | | | | |
| joint ventures | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before taxes | 6.8 | 6.8 | 14.3 | 14.4 | 18.9 |
--------------------------------------------------------------------------------
| Income tax | -1.9 | -1.8 | -4.0 | -4.1 | -5.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the period from | 4.9 | 5.0 | 10.2 | 10.3 | 13.4 |
| continuing operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS: | 0.0 | 1.6 | -0.1 | 2.5 | 39.7 |
| Result for the period from | | | | | |
| discontinued operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | 4.9 | 6.6 | 10.1 | 12.9 | 53.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 5.0 | 6.6 | 10.2 | 12.9 | 53.1 |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Non-controlling interests | -0.1 | 0.0 | -0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share from the | | | | | |
| profit attributable to | | | | | |
| equity holders of the | | | | | |
| parent company | | | | | |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS: | | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per | 0.03 | 0.03 | 0.07 | 0.07 | 0.09 |
| share | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0.03 | 0.03 | 0.07 | 0.07 | 0.09 |
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS: | | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per | 0.00 | 0.01 | 0.00 | 0.02 | 0.26 |
| share | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0.00 | 0.01 | 0.00 | 0.02 | 0.25 |
--------------------------------------------------------------------------------
COMPREHENSIVE INCOME STATEMENT (M€)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Result for the period | 4.9 | 6.6 | 10.1 | 12.9 | 53.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income | | | | | |
| items | | | | | |
--------------------------------------------------------------------------------
| Translation differences | 0.0 | 0.0 | 0.0 | 0.0 | -0.3 |
| recognised in profit and | | | | | |
| loss on disposal of foreign | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Protection of net | 0.5 | | -0.2 | | |
| investments | | | | | |
--------------------------------------------------------------------------------
| Gains and losses arising | -2.6 | 0.3 | 1.2 | -0.5 | -0.3 |
| from translating the | | | | | |
| financial statements of | | | | | |
| foreign operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive income for | 2.8 | 6.9 | 11.1 | 12.4 | 52.6 |
| the period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Components of comprehensive | | | | | |
| income: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 2.9 | 6.9 | 11.2 | 12.4 | 52.6 |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Non-controlling interests | -0.1 | 0.0 | -0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
BALANCE SHEET (M€)
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 10.9 | 7.9 | 7.5 |
--------------------------------------------------------------------------------
| Goodwill | 51.3 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 107.4 | 99.1 | 95.3 |
--------------------------------------------------------------------------------
| Shares in associated companies and | 0.8 | 0.8 | 0.8 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Financial assets available for sale | 0.6 | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Receivables | 0.4 | 0.3 | 0.4 |
--------------------------------------------------------------------------------
| Deferred tax assets | 6.2 | 7.4 | 6.5 |
--------------------------------------------------------------------------------
| Total non-current assets | 177.6 | 116.0 | 111.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 72.8 | 65.3 | 55.0 |
--------------------------------------------------------------------------------
| Accounts receivables and other | 67.3 | 55.3 | 54.9 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets at fair value | 136.1 | 97.7 | 215.3 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | 12.1 | 37.4 | 8.0 |
--------------------------------------------------------------------------------
| Total current assets | 288.3 | 255.7 | 333.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets available for sale | | 39.7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 465.8 | 411.4 | 444.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Share capital | 27.8 | 27.8 | 27.8 |
--------------------------------------------------------------------------------
| Own shares | -17.8 | -18.5 | -18.5 |
--------------------------------------------------------------------------------
| Other equity attributable to equity | 308.8 | 271.9 | 312.8 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | 318.8 | 281.2 | 322.0 |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Non-controlling interests | 1.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total equity | 319.9 | 281.2 | 322.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 7.0 | 7.7 | 7.6 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Reserves | 1.4 | | 1.4 |
--------------------------------------------------------------------------------
| Non-current financial liabilities | 59.1 | 55.7 | 48.6 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 67.8 | 63.6 | 57.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 62.1 | 44.5 | 48.4 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Reserves | 1.6 | 0.9 | 1.6 |
--------------------------------------------------------------------------------
| Financial liabilities at fair value | 0.0 | 0.3 | 0.1 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Current financial liabilities | 14.5 | 14.7 | 14.2 |
--------------------------------------------------------------------------------
| Total current liabilities | 78.2 | 60.3 | 64.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts related to non-current assets | | 6.2 | |
| held for sale | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 146.0 | 130.1 | 122.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 465.8 | 411.4 | 444.2 |
--------------------------------------------------------------------------------
CHANGES IN GROUP EQUITY (M€)
--------------------------------------------------------------------------------
| | Shar | Sha | Res | Own | Tran | Retai | Total | Non-c | Total |
| | e | re | erv | shar | slat | ned | | ontro | equit |
| | capi | pre | e | es | ion | earni | | lling | y |
| | tal | miu | fun | | diff | ngs | | inter | |
| | | m | d | | eren | | | ests | |
| | | res | | | ces | | | | |
| | | erv | | | | | | | |
| | | e | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -19. | -3.2 | 182.7 | 279.4 | 0.0 | 279.4 |
| 31.12.2008 | | | 6 | 3 | | | | | |
--------------------------------------------------------------------------------
| Comprehensi | - | - | - | - | -0.4 | 12.9 | 12.4 | 0.0 | 12.4 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -10.9 | -10.9 | - | -10.9 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | 0.0 | - | - | 0.0 | - | 0.0 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 0.9 | - | -0.6 | 0.3 | - | 0.3 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -18. | -3.6 | 184.1 | 281.2 | 0.0 | 281.2 |
| 30.9.2009 | | | 6 | 5 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -18. | -3.7 | 225.0 | 322.0 | 0.0 | 322.0 |
| 31.12.2009 | | | 6 | 5 | | | | | |
--------------------------------------------------------------------------------
| Comprehensi | - | - | - | - | 1.0 | 10.2 | 11.2 | -0.1 | 11.1 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -14.1 | -14.1 | - | -14.1 |
--------------------------------------------------------------------------------
| Management | | | | -1.0 | | | -1.0 | 1.2 | 0.2 |
| incentive | | | | | | | | | |
| scheme | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 1.7 | - | -1.1 | 0.6 | - | 0.6 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -17. | -2.7 | 220.0 | 318.8 | 1.1 | 319.9 |
| 30.9.2010 | | | 6 | 8 | | | | | |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT (M€)
--------------------------------------------------------------------------------
| | 1-9/2010 | 1-9/2009 | 2009 |
--------------------------------------------------------------------------------
| Result before taxes, continuing | 14.3 | 14.4 | 18.9 |
| operations | | | |
--------------------------------------------------------------------------------
| Result before taxes, discontinued | -0.3 | 2.9 | 39.3 |
| operations | | | |
--------------------------------------------------------------------------------
| Adjustments | 13.2 | 13.6 | -24.1 |
--------------------------------------------------------------------------------
| Cash flow before change in working | 27.2 | 31.0 | 34.1 |
| capital | | | |
--------------------------------------------------------------------------------
| Change in current receivables | -3.0 | -0.4 | 4.2 |
--------------------------------------------------------------------------------
| Change in inventories | -9.1 | 1.2 | 16.3 |
--------------------------------------------------------------------------------
| Change in current | -0.9 | -4.5 | -2.6 |
| non-interest-bearing liabilities | | | |
--------------------------------------------------------------------------------
| Total change in working capital | -13.1 | -3.7 | 17.9 |
--------------------------------------------------------------------------------
| Financial items and taxes | -3.9 | 0.3 | -0.5 |
--------------------------------------------------------------------------------
| Cash flow from business operations | 10.3 | 27.6 | 51.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments in fixed assets | -8.7 | -7.2 | -10.0 |
--------------------------------------------------------------------------------
| Divestment of subsidiaries | 3.5 | 0.0 | 47.1 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | -22.2 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Divestment of associated companies | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 0.1 | 0.0 | 23.6 |
--------------------------------------------------------------------------------
| Investments on marketable securities | -25.0 | 0.0 | -10.0 |
--------------------------------------------------------------------------------
| Sales of securities | 17.5 | | |
--------------------------------------------------------------------------------
| Loans granted | -0.4 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Repayment of loan receivables | 0.3 | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | -35.0 | -6.9 | 50.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in non-current loans | -35.6 | 51.0 | 43.9 |
--------------------------------------------------------------------------------
| Change in current loans | -6.9 | -0.7 | -0.7 |
--------------------------------------------------------------------------------
| Investment of related parties | 1.2 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Repurchase of own shares | -1.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Dividend paid to equity holders of | -14.0 | -10.8 | -10.8 |
| the parent company | | | |
--------------------------------------------------------------------------------
| Cash flow from financial operations | -56.3 | 39.5 | 32.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | -81.0 | 60.2 | 134.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds at the beginning of the | 213.0 | 77.9 | 77.9 |
| period | | | |
--------------------------------------------------------------------------------
| Effects of changes in foreign | 0.5 | 0.3 | 0.1 |
| exchange rates | | | |
--------------------------------------------------------------------------------
| Impact of change in market value on | -0.2 | -0.1 | 0.1 |
| liquid funds | | | |
--------------------------------------------------------------------------------
| Liquid funds at period-end | 132.2 | 138.3 | 213.0 |
--------------------------------------------------------------------------------
NOTES TO THE INTERIM REPORT
This interim report has been prepared in compliance with IAS 34 Interim
Financial Reporting according to the same principles and calculation methods
used in financial statements 2009 with the exception of the amendments to the
principles mentioned below.
The Group adopted the following IFRSs or amendments to them on 1 January 2010:
Revision of IFRS 3 Business Combinations. According to the revised standard, the
acquisition cost method is still applied but some significant amendments have
been made. For instance, all the payments effected to complete the acquisition
must be recognised at their acquisition-date fair values, and the conditional
payments classified as debts are later recognised at fair value through profit
and loss. For each acquisition, IFRS 3 allows an accounting policy choice to
measure the minority's interest either at fair value or its proportionate share
of net assets of the acquisition. All costs related to the acquisition are
recognised as an expense.
Revised IAS 27 Consolidated and Separate Financial Statements. The amended
standard specifies the treatment of the increases and decreases in the ownership
interests of the Group's subsidiaries. According to the standard, the impacts of
minority transactions must be recognised in shareholders' equity if the control
is not changed and these transactions no longer result in goodwill entries or
entries of gain and loss. If the control is lost, the eventual remaining
ownership interest is recognised at fair value and gain or loss through profit
and loss.
In addition, since the beginning of the year 2010 Raisio has applied the
following amended standards and interpretations that are not expected to have an
impact on the consolidated interim reports or financial statements:
Amendment to IAS 39 Financial Instruments: Recognition and Measurement -
Eligible Hedged Items
Amendment to IFRS 2 Share-based Payment - Group Cash-settled Share-based Payment
Transactions
Improvements to IFRSs (April 2009)
IFRIC 17 Distributions of Non-cash Assets to Owners
IFRIC 18 Transfers of Assets from Customers
IFRIC 9 Reassessment of Embedded Derivatives and IAS 39 (amendment) Financial
Instruments: Recognition and Measurement - Embedded Derivatives
Raisio Management Oy owned by the Management is combined to the Raisio's
consolidated financial statement as Raisio has the control of the company
because of the funding schemes. Raisio plc's shares held by Raisio Management Oy
entered to the consolidated financial statement through the combination are
presented on the balance sheet in the own shares as a deduction from
shareholders' equity, and the management's ownership is presented in the
non-controlling interests.
When preparing the financial statements, management must make estimates and
assumptions that affect the reported assets and liabilities, income and
expenses. Actual figures may differ from these estimates.
The interim report is shown in EUR millions.
SEGMENT INFORMATION
The reportable segments are Brands and Business to Business. The Brands segment
includes international brands - Benecol and local brands, and the reported
figures are those of the Benecol Division and of the Northern and Eastern
European operations of the food business as well as, from the beginning of the
second quarter, those of the Western European operations of the food business,
which include the transactions of Glisten companies. The Business to Business
segment includes the feed, malt and feed protein businesses.
NET SALES BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Brands | 63.0 | 43.5 | 170.9 | 132.1 | 177.6 |
--------------------------------------------------------------------------------
| Business to Business | 56.3 | 54.2 | 155.3 | 159.3 | 205.6 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.2 | 0.7 | 0.7 | 0.9 |
--------------------------------------------------------------------------------
| Interdivisional net sales | -0.7 | -2.4 | -1.6 | -7.5 | -8.1 |
--------------------------------------------------------------------------------
| Total net sales | 118.9 | 95.5 | 325.2 | 284.5 | 375.9 |
--------------------------------------------------------------------------------
EBIT BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Brands | 6.5 | 7.3 | 17.1 | 17.7 | 20.5 |
--------------------------------------------------------------------------------
| Business to Business | 0.0 | 0.3 | 1.4 | 1.0 | 3.0 |
--------------------------------------------------------------------------------
| Other operations | -0.4 | -0.8 | -2.1 | -3.5 | -4.3 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.2 | 0.0 | 0.1 | 0.3 |
--------------------------------------------------------------------------------
| Total EBIT | 6.1 | 7.0 | 16.4 | 15.3 | 19.5 |
--------------------------------------------------------------------------------
NET ASSETS BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Brands | 144.4 | 82.9 | 69.6 |
--------------------------------------------------------------------------------
| Business to Business | 87.6 | 87.7 | 79.2 |
--------------------------------------------------------------------------------
| Other operations, assets held for | 87.9 | 110.7 | 173.2 |
| sale and unallocated items | | | |
--------------------------------------------------------------------------------
| Total net assets | 319.9 | 281.2 | 322.0 |
--------------------------------------------------------------------------------
INVESTMENTS BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Brands | 0.6 | 1.1 | 45.0 | 2.2 | 3.3 |
--------------------------------------------------------------------------------
| Business to Business | 1.3 | 1.7 | 2.9 | 4.1 | 5.4 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.3 | 0.8 | 0.7 | 1.3 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total investments | 2.1 | 3.0 | 48.6 | 7.0 | 10.0 |
--------------------------------------------------------------------------------
NET SALES BY MARKET AREA (M€)
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Finland | 62.0 | 62.1 | 185.7 | 188.5 | 251.5 |
--------------------------------------------------------------------------------
| Rest of Europe | 50.9 | 31.2 | 129.2 | 90.8 | 117.4 |
--------------------------------------------------------------------------------
| ROW | 6.0 | 2.2 | 10.3 | 5.1 | 7.1 |
--------------------------------------------------------------------------------
| Total | 118.9 | 95.5 | 325.2 | 284.5 | 375.9 |
--------------------------------------------------------------------------------
ACQUIRED BUSINESS OPERATIONS
Raisio plc made a public purchase offer for the entire share capital of British
Glisten plc. The shareholders of Glisten plc approved Raisio's purchase offer on
12 March 2010, and the deal became legally valid on 8 April 2010.
Glisten produces healthy, nutritious, high-quality snack foods. Fruitus and The
Dormen are the company's well-known brands in their own product categories. The
company operates through eight premises across Great-Britain and employs
approximately 650 people. The group consists of 23 separate companies. Glisten's
result is reported as part of the figures of Raisio's Brands Division from the
beginning of the second quarter.
Raisio UK Ltd, founded for the purpose of the acquisition, acquired the share
capital of Glisten plc. After the closing of the deal, Raisio plc owns 85% and
the senior management of Glisten 15% of Raisio UK Ltd's share capital. Later it
has been agreed to amend the shareholder agreement so that Glisten's senior
management will increase its ownership in Raisio UK Ltd up to 21.3%. Since
Raisio is obligated to redeem the part of the management's shares, the company
has been consolidated to the Group according to the shareholding of 100% and the
redemption price has been treated as a liability.
The acquisition price was thus comprised of the share paid in cash and the
additional purchase price later paid to Glisten management for the ownership of
Raisio UK Ltd's. The part of the purchase price paid in cash was 22.2 M€ (19.5
M£). The amount of the additional purchase price was estimated to be 16.0 M€
(14.0 M£) at the time of the acquisition and it has been entered on the balance
sheet as a liability. The payment time of the additional purchase price is
estimated to be during the third quarter of 2012. The fees of lawyers, advisors
and outside valuators related to the deal amounted to a total of 1.1 M€, which
has been recognised as an expense. Goodwill resulting from the acquisition was
50.3 M€ (44.1 M£).
Raisio Group's net sales for January-September 2010 would have been 345.0 M€ and
pre-tax result excluding one-off items 14.4 M€ if the acquisition of business
operations completed during the financial year had been combined with the
consolidated financial statement from the beginning of the financial year 2010.
The post-acquisition net sales of subgroup Glisten was 43.9 M€ and pre-tax
result 2.5 M€.
The values of acquired assets and assumed liabilities on the date of acquisition
were as follows:
--------------------------------------------------------------------------------
| | Fair values entered | Carrying values |
| | in the business | before business |
| | combination | combination |
--------------------------------------------------------------------------------
| Property, plant and equipment | 14.0 | 14.0 |
--------------------------------------------------------------------------------
| Trade marks | 4.6 | 0.0 |
--------------------------------------------------------------------------------
| Deferred tax assets | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Inventories | 8.4 | 8.2 |
--------------------------------------------------------------------------------
| Accounts receivables and other | 13.6 | 13.6 |
| receivables | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total assets | 41.0 | 36.3 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1.3 | 0.0 |
--------------------------------------------------------------------------------
| Reserves | 0.9 | 0.9 |
--------------------------------------------------------------------------------
| Financial liabilities | 32.3 | 32.3 |
--------------------------------------------------------------------------------
| Financial liabilities at fair | 4.3 | 4.3 |
| value through profit or loss | | |
--------------------------------------------------------------------------------
| Other liabilities | 14.3 | 14.3 |
--------------------------------------------------------------------------------
| Total liabilities | 53.1 | 51.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets | -12.1 | -15.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost | 38.2 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill | 50.3 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase price paid in cash | 22.2 | |
--------------------------------------------------------------------------------
| Financial assets of the | 0.0 | |
| acquired subsidiary | | |
--------------------------------------------------------------------------------
| Cash flow generation | 22.2 | |
--------------------------------------------------------------------------------
Determination of fair value of assets and liabilities is still on a preliminary
basis.
DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE
Discontinued operations
Raisio and Bunde signed an agreement on the divestment of Raisio's margarine
business to Bunge in May 2009. The divestment was concluded in October 2009.
Discontinued operations in the income statement include the result of Raisio
Polska Foods Sp's margarine business, as well as the impact that the divestment
of the margarine business had on results. The result of the Finnish margarine
business is still reported under continuing operations, since Raisio will
continue to sell margarines in Finland, Sweden and Estonia as a distributor of
Bunge.
--------------------------------------------------------------------------------
| | 1-9/2010 | 1-9/2009 | 2009 |
--------------------------------------------------------------------------------
| Result for the discontinued | | | |
| operations (M€) | | | |
--------------------------------------------------------------------------------
| Income from ordinary operations | 0.0 | 31.2 | 32.7 |
--------------------------------------------------------------------------------
| Expenses | 0.0 | -28.2 | -28.9 |
--------------------------------------------------------------------------------
| Result before taxes | 0.0 | 2.9 | 3.7 |
--------------------------------------------------------------------------------
| Taxes | 0.0 | -0.4 | -0.7 |
--------------------------------------------------------------------------------
| Result after taxes | 0.0 | 2.5 | 3.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings due to discontinuation | -0.3 | | 35.6 |
--------------------------------------------------------------------------------
| Taxes | 0.2 | | 1.1 |
--------------------------------------------------------------------------------
| Result after taxes | -0.1 | | 36.7 |
--------------------------------------------------------------------------------
| Result for discontinued operations | -0.1 | | 39.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow for the discontinued | | | |
| operations (M€) | | | |
--------------------------------------------------------------------------------
| Cash flow from business operations | -4.5 | 2.9 | 7.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | 3.5 | 0.0 | 70.7 |
--------------------------------------------------------------------------------
| Cash flow from financial | 0.0 | -0.9 | -1.0 |
| operations | | | |
--------------------------------------------------------------------------------
| Total cash flow | -1.0 | 1.9 | 77.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets held for sale (M€): | | | |
--------------------------------------------------------------------------------
| Intangible assets | | 0.4 | |
--------------------------------------------------------------------------------
| Goodwill | | 1.1 | |
--------------------------------------------------------------------------------
| Tangible assets | | 21.7 | |
--------------------------------------------------------------------------------
| Deferred tax assets | | 0.5 | |
--------------------------------------------------------------------------------
| Inventories | | 6.7 | |
--------------------------------------------------------------------------------
| Accounts receivables and other | | 6.1 | |
| receivables | | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | | 3.2 | |
--------------------------------------------------------------------------------
| Total assets | | 39.7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities held for sale (M€): | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | | 0.7 | |
--------------------------------------------------------------------------------
| Accounts payable and other | | 5.5 | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total liabilities | | 6.2 | |
--------------------------------------------------------------------------------
TANGIBLE ASSETS (M€)
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning | 332.7 | 417.1 | 417.1 |
| of the period | | | |
--------------------------------------------------------------------------------
| Conversion differences | 1.3 | -1.6 | -1.1 |
--------------------------------------------------------------------------------
| Increase | 37.6 | 6.7 | 9.4 |
--------------------------------------------------------------------------------
| Decrease | -0.6 | -0.7 | -92.6 |
--------------------------------------------------------------------------------
| Reclassifications between items | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Operations held for sale | | -94.5 | |
--------------------------------------------------------------------------------
| Acquisition cost at period-end | 370.9 | 326.9 | 332.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | 237.4 | 292.8 | 292.8 |
| impairment at the beginning of the | | | |
| period | | | |
--------------------------------------------------------------------------------
| Conversion difference | 1.0 | -1.1 | -0.7 |
--------------------------------------------------------------------------------
| Increase | 15.7 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Decrease and transfers | 0.0 | -0.8 | -73.4 |
--------------------------------------------------------------------------------
| Depreciation for the period | 9.6 | 9.6 | 12.5 |
--------------------------------------------------------------------------------
| Write-downs | 0.0 | 0.1 | 6.2 |
--------------------------------------------------------------------------------
| Operations held for sale | | -72.8 | |
--------------------------------------------------------------------------------
| Accumulated depreciation and | 263.6 | 227.8 | 237.4 |
| impairment at period-end | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at period-end | 107.4 | 99.1 | 95.3 |
--------------------------------------------------------------------------------
RESERVES (M€)
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| At the beginning of the period | 3.1 | 1.1 | 1.1 |
--------------------------------------------------------------------------------
| Increase in provisions | 0.9 | 0.0 | 2.3 |
--------------------------------------------------------------------------------
| Provisions used | -1.0 | -0.2 | -0.4 |
--------------------------------------------------------------------------------
| At period-end | 3.0 | 0.9 | 3.1 |
--------------------------------------------------------------------------------
BUSINESS ACTIVITIES INVOLVING INSIDERS (M€)
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Sales to associated companies and | 8.2 | 9.0 | 12.1 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Purchases from associated companies | 0.0 | 0.1 | 0.1 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
| Sales to key employees in | 0.0 | 0.2 | 0.2 |
| management | | | |
--------------------------------------------------------------------------------
| Purchases from key employees in | 0.6 | 0.6 | 0.7 |
| management | | | |
--------------------------------------------------------------------------------
| Receivables from associated | 1.6 | 1.6 | 1.2 |
| companies and joint ventures | | | |
--------------------------------------------------------------------------------
| Liabilities to associated companies | 0.0 | 0.2 | 0.2 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES (M€)
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Contingent off-balance sheet | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Non-cancelable other leases | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | 9.6 | 1.3 | 1.3 |
--------------------------------------------------------------------------------
| Contingent liabilities for the | | 0.2 | |
| company | | | |
--------------------------------------------------------------------------------
| Contingent liabilities for others | | | |
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Other liabilities | 6.6 | 1.6 | 2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitment to investment payments | 1.0 | 0.6 | 0.6 |
--------------------------------------------------------------------------------
DERIVATIVE CONTRACTS (M€)
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Nominal values of derivative | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Currency forward contracts | 60.3 | 10.9 | 7.5 |
--------------------------------------------------------------------------------
| Interest rate swaps | 36.0 | 8.9 | 39.4 |
--------------------------------------------------------------------------------
QUARTERLY PERFORMANCE (M€)
--------------------------------------------------------------------------------
| | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales by segment | | | | | | | |
--------------------------------------------------------------------------------
| Brands | 63.0 | 64.5 | 43.4 | 45.5 | 43.5 | 44.2 | 44.5 |
--------------------------------------------------------------------------------
| Business to Business | 56.3 | 55.6 | 43.3 | 46.3 | 54.2 | 55.8 | 49.3 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.2 | 0.2 | 0.3 | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Interdivisional net | -0.7 | -0.4 | -0.5 | -0.6 | -2.4 | -2.4 | -2.7 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Total net sales | 118. | 120. | 86.4 | 91.5 | 95.5 | 97.8 | 91.2 |
| | 9 | 0 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT by segment | | | | | | | |
--------------------------------------------------------------------------------
| Brands | 6.5 | 5.8 | 4.8 | 2.8 | 7.3 | 4.6 | 5.8 |
--------------------------------------------------------------------------------
| Business to Business | 0.0 | 1.3 | 0.1 | 2.0 | 0.3 | 0.6 | 0.1 |
--------------------------------------------------------------------------------
| Other operations | -0.4 | -1.1 | -0.6 | -0.8 | -0.8 | -1.6 | -1.1 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.0 | 0.0 | 0.2 | 0.2 | 0.2 | -0.3 |
--------------------------------------------------------------------------------
| Total EBIT | 6.1 | 6.0 | 4.3 | 4.2 | 7.0 | 3.7 | 4.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | 0.8 | -2.9 | -0.1 | 0.3 | -0.3 | -0.3 | -0.3 |
| expenses, net | | | | | | | |
--------------------------------------------------------------------------------
| Share of result of | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| associated companies | | | | | | | |
--------------------------------------------------------------------------------
| Result before taxes | 6.8 | 3.1 | 4.3 | 4.5 | 6.8 | 3.4 | 4.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax | -1.9 | -0.8 | -1.3 | -1.5 | -1.8 | -1.0 | -1.4 |
--------------------------------------------------------------------------------
| Result for the | 4.9 | 2.3 | 3.0 | 3.0 | 5.0 | 2.5 | 2.9 |
| period from | | | | | | | |
| continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
KEY INDICATORS
--------------------------------------------------------------------------------
| | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Net sales, M€ | 325.2 | 284.5 | 375.9 |
--------------------------------------------------------------------------------
| Change of net sales, % | 14.3 | -17.5 | -18.8 |
--------------------------------------------------------------------------------
| Operating margin, M€ | 28.2 | 26.8 | 36.4 |
--------------------------------------------------------------------------------
| Depreciation and impairment, M€ | 11.8 | 11.5 | 17.0 |
--------------------------------------------------------------------------------
| EBIT, M€ | 16.4 | 15.3 | 19.5 |
--------------------------------------------------------------------------------
| % of net sales | 5.0 | 5.4 | 5.2 |
--------------------------------------------------------------------------------
| Result before taxes, M€ | 14.3 | 14.4 | 18.9 |
--------------------------------------------------------------------------------
| % of net sales | 4.4 | 5.1 | 5.0 |
--------------------------------------------------------------------------------
| Return on equity, ROE, % | 4.3 | 4.9 | 4.5 |
--------------------------------------------------------------------------------
| Return on investment, ROI, % | 5.4 | 6.5 | 6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing financial | 73.5 | 71.1 | 62.8 |
| liabilities at period-end, M€ | | | |
--------------------------------------------------------------------------------
| Net interest-bearing financial | -58.7 | -67.2 | -150.2 |
| liabilities at period-end, M€ | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 69.0 | 68.4 | 73.4 |
--------------------------------------------------------------------------------
| Net gearing, % | -18.3 | -23.9 | -46.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross investments, M€ | 48.6 | 7.0 | 10.0 |
--------------------------------------------------------------------------------
| % of net sales | 15.0 | 2.4 | 2.7 |
--------------------------------------------------------------------------------
| R & D expenses, M€ | 4.4 | 4.3 | 6.1 |
--------------------------------------------------------------------------------
| % of net sales | 1.4 | 1.5 | 1.6 |
--------------------------------------------------------------------------------
| Average personnel | 1 064 | 633 | 627 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/share from continuing | 0.07 | 0.07 | 0.09 |
| operations, EUR | | | |
--------------------------------------------------------------------------------
| Cash flow from operations/share, | 0.07 | 0.18 | 0.33 |
| EUR | | | |
--------------------------------------------------------------------------------
| Equity/share, EUR | 2.04 | 1.80 | 2.06 |
--------------------------------------------------------------------------------
| Average number of shares during | | | |
| the period, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 123 656 | 121 590 | 121 666 |
--------------------------------------------------------------------------------
| Restricted shares | 34 248 | 34 273 | 34 268 |
--------------------------------------------------------------------------------
| Total | 157 904 | 155 863 | 155 934 |
--------------------------------------------------------------------------------
| Average number of shares at | | | |
| period-end, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 126 790 | 121 866 | 121 894 |
--------------------------------------------------------------------------------
| Restricted shares | 34 207 | 34 273 | 34 250 |
--------------------------------------------------------------------------------
| Total | 160 997 | 156 139 | 156 145 |
--------------------------------------------------------------------------------
| Market capitalisation of shares at | | | |
| period-end, M€*) | | | |
--------------------------------------------------------------------------------
| Free shares | 371.5 | 304.7 | 324.2 |
--------------------------------------------------------------------------------
| Restricted shares | 99.2 | 82.6 | 93.2 |
--------------------------------------------------------------------------------
| Total | 470.7 | 387.3 | 417.4 |
--------------------------------------------------------------------------------
| Share price at period-end | | | |
--------------------------------------------------------------------------------
| Free shares | 2.93 | 2.50 | 2.66 |
--------------------------------------------------------------------------------
| Restricted shares | 2.90 | 2.41 | 2.72 |
--------------------------------------------------------------------------------
*) Number of shares, excluding the shares held by the company
CALCULATION OF INDICATORS
--------------------------------------------------------------------------------
| Return on equity (ROE), % | Result before taxes - income taxes*) |
| | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity (average over the period) |
--------------------------------------------------------------------------------
| Return on investment | Result before taxes + financial expenses*) |
| (ROI), % | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity + interest-bearing |
| | financial liabilities (average over the period) |
--------------------------------------------------------------------------------
| Equity ratio, % | Shareholders' equity |
| | ------------------------------------------- x |
| | 100 |
| | Balance sheet total - advances received |
--------------------------------------------------------------------------------
| Net interest-bearing | Interest-bearing financial liabilities - liquid |
| financial liabilities | funds and liquid financial assets at fair value |
| | through profit or loss |
--------------------------------------------------------------------------------
| Net gearing, % | Net interest-bearing financial liabilities |
| | ----------------------------------------- x 100 |
| | Shareholders' equity |
--------------------------------------------------------------------------------
| Earnings per share*) | Result for the year of parent company |
| | shareholders |
| | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue**) |
--------------------------------------------------------------------------------
| Cash flow from business | Cash flow from business operations |
| operations per share | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue |
--------------------------------------------------------------------------------
| Shareholders' equity per | Equity of parent company shareholders |
| share | ------------------------------------------------ |
| | Number of shares at period-end adjusted for |
| | share issue***) |
--------------------------------------------------------------------------------
| Market capitalisation | Closing price, adjusted for issue x number of |
| | shares without own shares at the end of the |
| | period |
--------------------------------------------------------------------------------
*)The calculation of key indicators uses continuing operations result
**)Excluding shares with a potential return obligation and shares held by Raisio
Management Oy
***)Shares held by Raisio Management Oy have been subtracted from the total
number of shares
