RAISIO'S PROFITABILITY STRONGER THAN EXPECTED
Raisio plc, Interim Report 4 May 2010 at 8 a.m.
INTERIM REPORT 1 JANUARY - 31 MARCH 2010
RAISIO'S PROFITABILITY STRONGER THAN EXPECTED
January-March 2010, continuing operations
- Raisio's net sales totalled EUR 86.4 million (Q1/2009: EUR 91.2 million).
- EBIT was EUR 4.3 million (EUR 4.5 million) accounting for 5.0 per cent (5.0%)
of net sales.
- Glisten became a part of Raisio Group after the review period in April 2010.
- Expenses of approximately EUR 1.1 million resulting from the acquisition of
Glisten are included in the first-quarter figures.
Outlook
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 the Business to Business Division will probably continue to be
challenging.
Raisio Group's key figures
--------------------------------------------------------------------------------
| | | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Results from continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Net sales | M€ | 86.4 | 91.2 | 375.9 |
--------------------------------------------------------------------------------
| Change in net sales | % | -5.2 | -16.5 | -18.8 |
--------------------------------------------------------------------------------
| EBIT | M€ | 4.3 | 4.5 | 20.5* |
--------------------------------------------------------------------------------
| EBIT | % | 5.0 | 5.0 | 5.5* |
--------------------------------------------------------------------------------
| Depreciation and impairment | M€ | 3.5 | 4.1 | 17.0* |
--------------------------------------------------------------------------------
| EBITDA | M€ | 7.8 | 8.6 | 37.5* |
--------------------------------------------------------------------------------
| Net financial expenses | M€ | -0.1 | -0.3 | -0.5* |
--------------------------------------------------------------------------------
| Earnings per share (EPS) | €m | 0.02 | 0.02 | 0.09* |
--------------------------------------------------------------------------------
| Earnings per share (EPS), | €m | 0.02 | 0.02 | 0.09* |
| diluted | | | | |
--------------------------------------------------------------------------------
| Balance sheet | | | | |
--------------------------------------------------------------------------------
| Equity ratio | % | 70.5 | 75.5 | 73.4 |
--------------------------------------------------------------------------------
| Gearing | % | -40.2 | -22.9 | -46.6 |
--------------------------------------------------------------------------------
| Net interest-bearing debt | M€ | -125.4 | -62.2 | -150.2 |
--------------------------------------------------------------------------------
| Equity per share | €m | 2.00 | 1.74 | 2.06 |
--------------------------------------------------------------------------------
| Gross investments | M€ | 1.5 | 1.2 | 10.0 |
--------------------------------------------------------------------------------
| Share | | | | |
--------------------------------------------------------------------------------
| Market capitalisation** | M€ | 435.2 | 235.9 | 417.4 |
--------------------------------------------------------------------------------
| Enterprise value (EV) | M€ | 280.0 | 173.7 | 257.1 |
--------------------------------------------------------------------------------
| EV/EBITDA | | 7.6 | 4.5 | 6.9 |
--------------------------------------------------------------------------------
* Excluding one-off items
** Excluding own shares held by the Group
The figures for the comparison period are given in brackets in the text.
Chief Executive's Review
“In 2010 and 2011 Raisio's main target is to increase its net sales. We are
looking for growth through acquisitions in Europe and by expanding into small
and growing product categories and new market areas. Raisio's growth phase had a
good start when the first acquisition was completed at the beginning of the
year. Raisio will continue to seek growth by acquisitions that support the
achievement of the company's strategy and create added value to owners.
The acquisition of the British Glisten offers both the parties good
opportunities for growth and expansion into new product categories and new
market areas. Raisio has already started the work to launch its products to UK
market and Glisten's products to Finnish and neighbouring markets.
At the beginning of the year, Raisio's profitability was stronger than expected
even though the implementation of growth projects impact the Group's
profitability. At the beginning of the year, the strong demand for brand
products continued. In the challenging market situation, Business to Business
Division reported a profitable EBIT even though the production of rapeseed meal,
an important protein source of feeds, was not profitable due to the scarcity of
domestic rapeseed and to the market situation of oil generated as a by-product.
The ability to see opportunities and to take advantage of them quickly and
efficiently will be crucial for Raisio's success also in the future. In addition
to its expansionary policy, the Group participates strongly in the developing
work of a sustainable food chain and introduces new ecological products and
solutions.”
RESULT FROM THE GROUP'S CONTINUING OPERATIONS
Net sales
Raisio Group's net sales from continuing operations in January-March totalled
EUR 86.4 million (Q1/2009: EUR 91.2 million). The net sales of the Brands
Division were EUR 43.4 million (EUR 44.5 million), those of Business to Business
Division EUR 43.3 million (EUR 49.3 million) and those of other operations EUR
0.2 million (EUR 0.2 million). The Group's sales volumes remained unchanged from
the comparison period. The reduction of five per cent in net sales mainly
resulted from changes in raw material prices.
Net sales from outside Finland represented 31.9 per cent (29.5%) of the total,
amounting to EUR 27.6 million (EUR 26.9 million).
Result
Raisio's EBIT from continuing operations in January-March was EUR 4.3 million
(EUR 4.5 million) accounting for 5.0 per cent (5.0%) of net sales. The EBIT of
the Brands Division amounted to EUR 4.8 million (EUR 5.8 million), that of the
Business to Business Division EUR 0.1 million (EUR 0.1 million) and that of
other operations EUR -0.6 million (EUR -1.1 million). In the international
brands, the profitability of Benecol remained at a good level and the sales
volume of plant stanol ester, Benecol ingredient, increased. The demand for the
products sold under the Elovena, Sunnuntai, Carlshamn and Nordic brands also
increased.
Depreciation, allocated to operations in the income statement, totalled EUR 3.5
million (EUR 4.1 million) in January-March.
In 2010, the first-quarter pre-tax result was EUR 4.3 million (EUR 4.2 million).
The Group's net financial items totalled EUR -0.1 million (EUR -0.3 million) in
January-March. The Group's post-tax result from continuing operations was EUR
3.0 million (EUR 2.9 million). Earnings per share for January-March were EUR
0.02 (EUR 0.02).
Balance sheet and cash flow
Raisio's balance sheet total at the end of March amounted to EUR 447.1 million
(31 December 2009: EUR 444.2 million). Shareholders' equity totalled EUR 311.8
million (31 December 2009: EUR 322.0 million), while equity per share was EUR
2.00 (31 December 2009: EUR 2.06).
The Group's interest-bearing debt was EUR 63.0 million at the end of March (31
December 2009: EUR 62.8 million). Net interest-bearing debt was EUR -125.4
million (31 December 2009: EUR -150.2 million). The equity ratio totalled 70.5
per cent (31 December 2009: 73.4%) and net gearing was -40.2 per cent (31
December 2009: -46.6%). Return on investment was 5.1 per cent (31 December 2009:
6.1%).
Cash flow from business operations in January-March was EUR -6.3 million (31
December 2009: EUR 5.4 million), which results from the working capital increase
characteristic to the period.
Working capital was released from the previous year mainly because of the
depreciation of raw material inventories and the divestment of margarine
business and it amounted to EUR 73.1 million (Q1/2009: 90.3 million) at the end
of the review period.
Investments
The Group's investments have now stabilised at the current lower level. Raisio
aims to use existing capacity by controlling it more efficiently on the basis of
customer information, as well as to raise utilisation rates. Raisio's partners
assume responsibility for production and related investments on their own
behalf.
In the first quarter the gross investments, excluding investments in securities,
were EUR 1.5 million (EUR 1.2 million) accounting for 1.7 per cent (1.3%) of net
sales and being in line with the comparison period. The gross investments of the
Brands Division amounted to EUR 0.6 million (EUR 0.4 million), that of the
Business to Business Division EUR 0.6 million (EUR 0.6 million) and that of
other operations EUR 0.3 million (EUR 0.2 million).
Research and development
Raisio follows a consumer- and customer-oriented approach. R&D cooperates
closely with the Group's other operations so that the company's strong know-how
and ecological thinking combined with the latest research findings can be used
when launching innovative new products and solutions.
In the Brands Division, the focus is on the new product applications and
research evidence of the plant stanol ester, Benecol ingredient, as well as on
the development and technology of oat-, soy- and barley-based products. R&D in
feeds develops new mixes and feeding solutions that improve the efficiency and
profitability of livestock production, ensure the animals' well-being and health
and reduce the environmental load of livestock production.
The Group's research and development inputs in the review period totalled EUR
1.2 million (EUR 1.4 million), or 1.4 per cent (1.3%) of net sales. The R&D
expenses of the Brands Division were EUR 0.9 million (EUR 1.1 million) and those
of the Business to Business Division EUR 0.4 million (EUR 0.3 million).
The joint research published by Raisio and HK Ruokatalo in February 2010 showed
reliably that correctly dosed rapeseed oil makes pork extremely good. When using
a new feeding concept, the fat of a pig turns into a form recommended by
National nutrition authority. The new feeding concept is also environmentally
friendly since the pigs are able to use the nitrogen of the feed more
efficiently.
TAXATION ISSUE OF SALES PROFIT ENDED TO RAISIO'S FAVOUR
The proceedings concerning the sales profit from the divestment of Raisio's
chemical business in 2004 have concluded favourably for Raisio on 9 February
2010 when The Tax Administration's Tax Recipients' Legal Services Unit was not
granted the leave to appeal by the Supreme Administrative Court. Since the
divestment of the chemical business operations, Raisio has considered the sales
profit of some EUR 220 million to be free of tax and has handled it accordingly
in its accounting.
SEGMENT INFORMATION
BRANDS DIVISION
The January-March net sales for the Brands Division totalled EUR 43.4 million
(EUR 44.5 million) accounting for around half of the Group's net sales.
The first-quarter EBIT in the Brands Division amounted to EUR 4.8 million (EUR
5.8 million) including the expenses of EUR 1.1 million resulting from the
Glisten acquisition. The EBIT is 11.2 per cent (13.1%) of net sales. The EBIT
was boosted year-over-year by the volume growth in Benecol, by profitability
remaining at a good level and by continuing strong demand for Elovena, Sunnuntai
and Carlshamn products.
International brands - Benecol
The net sales of Benecol reached a new, higher level of EUR 13.0 million (EUR
11.6 million). Volume growth in the current markets and the launches in the new
markets contributed to the increase of net sales. The volatility of net sales is
characteristic in the launch phase. Deliveries of new partnership agreements
were cumulated in the first quarter, which may cause volatility in volumes.
Solid sales growth of Benecol products continued in Spain, Greece and Belgium.
Instead, the strong growth in Poland and Great Britain has evened out at least
momentarily. Thailand and Indonesia are Raisio's fairly new partners. The sales
of Benecol products in these countries have developed well considering the time
needed for the launching and creating the awareness of products and brand.
Local brands
Local main brands Elovena, Sunnuntai and Carlshamn have further strengthened
their position during the first quarter of the year and sales volumes have
increased in the company's major market areas. Instead, the effects of the
recession can still be seen in public sector, restaurants and staff canteens.
The volume in bakery sales increased considerably year-over-year and the Group's
market position strengthened.
Healthy snacks, inexpensive everyday food and home baking are still a growing
trend in Finland. The sales in Elovena products have increased by over 10 per
cent from the comparison period. The growth has been fastest in the sales of
Elovena snack drinks and Hetki instant porridges. Consumers have shown interest
in the promotions and campaigns of the Elovena jubilee year. The sales in
Sunnuntai products also grew, and Raisio has reached plenty of new consumers
through its visible internet campaign.
Sales of non-dairy products are still growing in Finland and Sweden. In Finland,
especially the sales of non-dairy soygurts have developed well. Raisio has
managed in short time to establish a firm foothold in Sweden with non-dairy
products. The market share of non-dairy soygurts sold under the Carlshamn brand
has already increased to nearly 20 per cent in Sweden. In Ukraine, the sales
have developed well and net sales have increased with enhancement of operations
and renewal of distribution network.
Key figures for the Brands Division
--------------------------------------------------------------------------------
| | | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales | M€ | 43.4 | 44.5 | 177.6 |
--------------------------------------------------------------------------------
| International brands - | M€ | 13.0 | 11.6 | 47.0 |
| Benecol | | | | |
--------------------------------------------------------------------------------
| Local brands | M€ | 31.5 | 34.6 | 136.3 |
--------------------------------------------------------------------------------
| EBIT | M€ | 4.8 | 5.8 | 20.5 |
--------------------------------------------------------------------------------
| EBIT | % | 11.2 | 13.1 | 11.5 |
--------------------------------------------------------------------------------
| Investments | M€ | 0.6 | 0.4 | 3.3 |
--------------------------------------------------------------------------------
| Net assets | M€ | 70.1 | 85.4 | 69.6 |
--------------------------------------------------------------------------------
Outlook
Raisio will continue strengthening the Benecol brand creating added value to its
partners. The Benecol concept used by the partners includes three elements:
brand, unique innovation and network of experts. Benecol products are sold in 30
countries on five continents. Raisio will continue to prepare the product
launching into new markets with local partners.
Local brands aim at profitable growth, and the Division will try to broaden a
part of the product portfolio, as far as possible, to new countries in current
market areas. The objective of organic growth and acquisitions is to expand into
new product categories and customer groups. A special area of focus is on the
broadening of product range and on the sales growth in Sweden and Poland.
Raisio will expand the use of carbon footprint labelling on its products. At the
end of the year, the carbon footprint of some 30 products will be calculated.
The company has started using a meter that informs the carbon footprint of the
product with an easy colour-coded label. Raisio wants to make it easier for the
consumers to make ecological choices.
BUSINESS TO BUSINESS DIVISION
The net sales of the Business to Business division totalled EUR 43.3 million
(EUR 49.3 million). The net sales were down due to decrease in volume of overall
market in feeds and to the drop in raw material prices being transferred to
product prices. The Business to Business Division accounted for around half of
the Group's net sales.
In the challenging markets, the Business to Business Division's EBIT remained
stable year-over-year, or EUR 0.1 million (EUR 0.1 million). Given the stringent
market situation, the result can be seen satisfactory since the low price of
grain and saturated markets added the use of grain as feed in the farms in spite
of worse productivity.
The volume of Raisio's cattle feeds remained unchanged from the comparison
period and the market position strengthened. This was particularly affected by
the continued growth in demand in the delivery area of Ylivieska feed plant. The
volumes of pig and chicken feeds were down as a result of the overall market
decreasing. In chicken feeds, the competition still tightened because of the
additional capacity built in the field. Decrease in raw material prices has been
transferred to feed prices, which has slightly relieved the profitability
pressure of the farms. Especially the producer price of milk has dropped
dramatically.
The market price of malts decreased considerably year-over-year as a result of
the overall market and beer consumption decreasing. Breweries have also
increased the use of substitutive extract sources.
The sales volume of rapeseed oil, a meal processing by-product used as a protein
source in feeds, increased year-over-year but the freight costs in rapeseed oil
exports impact the profitability and weaken the competitiveness. Increase in
crude oil price has also supported the competitiveness of rapeseed oil as a
source of energy.
Key figures for the Business to Business Division
--------------------------------------------------------------------------------
| | | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales | M€ | 43.3 | 49.3 | 205.6 |
--------------------------------------------------------------------------------
| Feeds | M€ | 38.1 | 44.3 | 176.1 |
--------------------------------------------------------------------------------
| Malt | M€ | 3.5 | 4.4 | 26.3 |
--------------------------------------------------------------------------------
| Other | M€ | 1.8 | 0.7 | 3.6 |
--------------------------------------------------------------------------------
| EBIT | M€ | 0.1 | 0.1 | 3.0 |
--------------------------------------------------------------------------------
| EBIT | % | 0.1 | 0.1 | 1.4 |
--------------------------------------------------------------------------------
| Investments | M€ | 0.6 | 0.6 | 5.4 |
--------------------------------------------------------------------------------
| Net assets | M€ | 87.7 | 84.8 | 79.2 |
--------------------------------------------------------------------------------
Outlook
The recovery of the feed business is linked to the recovery of markets on the
whole and to the profitability of livestock production. Especially the pork
production is expected to further reduce. Poultry production is estimated to
turn up after 1 May 2010 when a directive concerning fresh meat is brought into
force. Milk production is stable in Finland. Globally, the demand and price of
milk have started to grow after the steep slope. Raisio has good opportunities
to grow the exports of fish feeds because of the increased production capacity.
Raisio will continue developing the domestic grain chain and launch solutions
that enable the farmers to produce high-quality grain and rapeseed
cost-effectively. Work on increasing the cultivation area of rapeseed in Finland
is also ongoing. Raisio has had to import approximately half of the needed
rapeseed because there has not been sufficiently domestic rapeseed available.
The company's objective is to cover the need to import with domestic rapeseed by
encouraging the farmers to considerably increase the cultivation area of
rapeseed. This would improve the self-sufficiency in protein for livestock
production, which is only slightly more than 10 per cent. The cultivation area
of grains and consequently the need to export grain would also be reduced.
Work on increasing the use of rapeseed oil for bioenergy and industrial
solutions is ongoing as planned. The first technically high-quality rapeseed
oil-based lubricants will be most probably launched in the summer.
Bio-degradable raw materials form a good starting point for modern products to
meet the needs of more and more environmentally conscious customers.
PERSONNEL
Raisio's continuing operations employed 602 people at the end of March (31
December 2009: 593 people) with 14.1 per cent (31 December 2009: 14.3 %) of the
staff employed outside Finland. The Brands Division had 298, the Business to
Business Division 245 and the service functions 59 employees. Glisten's number
of personnel will be reported as a part of the figures of Raisio Group from the
second quarter of the year.
Glisten's CEO, MBA Paul Simmonds has been appointed as a member of Raisio
Group's Management Team as of 8 April 2010.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares that were traded on NASDAQ OMX Helsinki
Ltd in January-March totalled 12.5 million (5.6 million). The value of trading
was EUR 35.0 million (EUR 8.8 million) and the average price was EUR 2.80 (EUR
1.58). The closing price on 31 March 2010 was EUR 2.80.
A total of 0.3 million restricted shares (0.1 million) were traded in
January-March. The value of trading was EUR 1.0 million (EUR 0.2 million) and
the average price was EUR 2.80 (EUR 1.63). The closing price on 31 March 2010
was EUR 2.74.
On 31 March 2010, the company had a total of 37,873 registered shareholders (31
December 2009: 37,384 shareholders). Foreign ownership of the entire share
capital was 12.2 per cent (31 December 2009: 13.3 %).
Raisio plc's market capitalisation at the end of March amounted to EUR 460.4
million (31 December 2009: EUR 441.4 million). Excluding the company shares held
by the Group, the company's market capitalisation was EUR 435.2 million (31
December 2009: EUR 417.4 million).
At the end of the review period, Raisio plc held 8,797,566 free shares and
201,295 restricted shares. The number of free shares held by the company
accounts for 6.7 per cent of all free shares and the votes they represent, while
the corresponding figure for restricted shares is 0.58 per cent. In all, the
company shares held by the Group represent 5.45 per cent of the company's share
capital and 1.56 per cent 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
per cent of the restricted shares and the votes they represent and,
correspondingly, 0.09 per cent of the whole share capital and 0.37 per cent of
the votes it represents. A share in Raisio or its subsidiary does not entitle
the holder to participate in the Annual General Meeting.
SHARE-BASED INCENTIVE SCHEME 2010
Raisio has a three-year, share-based incentive scheme. The purpose 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.
The scheme allows, during three years, to distribute a maximum total of
1,600,000 free shares already in the company's possession due to the share
repurchases carried out. The rewards are paid as a combination of the company's
shares and cash. Cash payments are made to cover the taxes and fiscal fees
arising from share-based rewards.
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 amount of earned rewards
will be determined on the grounds of reaching of set targets after the
completion of financial statements in the spring 2011, and the potential reward
will be paid to the persons within the scheme in December 2012. The shares
distributed as a reward are subject to a disposal restriction and return
obligation that are valid until 1 January 2014 in case the employment or job
contract of the person in question will end prior to the expiration of the
disposal restriction. There are 61 persons within the scheme in the third
earnings period.
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.
The Annual General Meeting approved the Board of Directors' proposal for
amending the section 11 of the Articles of Association to read as follows: “The
notice of the General Meeting shall be published, at the earliest, three (3)
months and at the latest three (3) weeks before the General Meeting on the
Company's website and possibly in another manner determined by the Board of
Directors. However, the notice of the General Meeting must be published no
later than nine (9) days before the record date of the General Meeting.”
Furthermore, in respect of the amendment of the section 11 of the Articles of
Association, the Annual General Meeting decided to delete the item 5 of the
section 12. Consequently, the internal numbering of the items 6-8 under section
12 became one number smaller. The amendments of the sections 11 and 12 of the
Articles of Association have been effective since they were entered in the Trade
Register on 29 April 2010.
The Annual General Meeting approved the Board of Directors' proposal for
amending the 3rd subsection of the section 9 of the Articles of Association to
read as follows: “In the General Meeting, no shareholder's shares are entitled
to vote with more votes than one tenth of the total number of votes of the
shares represented at the Meeting.” This amendment will enter into force if it
is also approved at the next consecutive General Meeting and after the amendment
has then been entered into the Trade Register.
The proposal of Osakesäästäjien Keskusliitto ry for abolition of the Supervisory
Board and for amending the respective parts of the Articles of Association was
rejected in the vote.
The General Meeting authorised the Board of Directors to decide on the
repurchase of a maximum of 6,000,000 free shares and 1,500,000 restricted
shares. 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. The authorisation to repurchase
own shares and to issue shares given by the General Meeting in 2009 expired on
25 March 2010.
The number of members of the Board of Directors was confirmed as five, and Anssi
Aapola, Erkki Haavisto, Simo Palokangas and Michael Ramm-Schmidt were
reappointed and Pirkko Rantanen-Kervinen was appointed as a new member for the
term commencing after the closed General Meeting. At its meeting held after the
General Meeting, the Board of Directors elected Palokangas as its Chairman and
Ramm-Schmidt as its Vice Chairman.
The number of members of Supervisory Board was confirmed to be 25. Risto Ervelä,
Hans Langh, Juha Salonen, Urban Silén, Tuula Tallskog, Johan Taube and Arto
Vuorela were elected as the members of the Supervisory Board for the term
commencing after the closed General Meeting and ending at the Annual General
Meeting of 2013. Two of them, Salonen and Vuorela, are new members.
Authorised public accountants Johan Kronberg and Mika Kaarisalo were elected as
regular auditors for the financial year 2011. Authorised public accountants
PricewaterhouseCoopers Ltd and Kalle Laaksonen were elected as deputy auditors.
EVENTS AFTER THE REVIEW PERIOD
The acquisition of British snack foods manufacturer Glisten plc came into force
on 8 April 2010 after the completion of related legal conditions. The listing of
Glisten shares on the AIM of London Exchange ended at 9:00 a.m. Finnish time on
Friday 9 April 2010. Raisio paid EUR 22.1 million for the issued share capital
of Glisten. After the completion of the acquisition, Glisten Ltd is owned by
Raisio UK Ltd, of which Raisio plc owns 85 per cent and Glisten's senior
management 15 per cent. Glisten is a growing, consumer-led, innovative and
healthy snack foods producer whose main market area is Great Britain.
CHANGES IN GROUP STRUCTURE
Glisten Group became a part of Raisio Group on 8 April 2010. Glisten's result
will be reported as a part of the figures of Raisio's Brands Division from the
second quarter of the year.
RISKS AND SOURCES OF UNCERTAINTY IN THE NEAR FUTURE
Uncertainty in the global economy may cause higher volatility in raw material
and product prices. Volatility control will be essential to Raisio's
profitability also in the future. The main risks in the near future are related
to possible changes in demand caused by the general economic development in the
Group's market areas. This concerns especially the operations of Business to
Business Division.
Risks related to Raisio's operations are described in more detail in the 2009
financial statements and on the Group's website under Corporate Governance.
Risks for the near future are also discussed in the Division reviews of this
interim report.
OUTLOOK
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 the Business to Business Division will probably continue to be
challenging.
Raisio, 4 May 2010
RAISIO PLC
Board of Directors
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO, tel. +358 50 556 6512
Heidi Hirvonen, Communications Manager, tel. +358 50 567 3060
A press and analyst event in Finnish will be arranged on 4 May 2010 at 12.00
noon in Helsinki. It will be held at Hotel Scandic Simonkenttä, in the Pavilion
meeting room. The address is Simonkatu 9, Helsinki.
A teleconference in English will be held on 4 May 2010 at 2:00 p.m. Finnish
time. Participants are requested to call the number +358 9 8248 3401, PIN code
12376.
The interim report has not been audited.
Financial releases in 2010:
Raisio plc's interim report for January-June will be published on 17 August 2010
and for January-September on 2 November 2010.
CONDENSED FINANCIAL STATEMENTS AND NOTES
INCOME STATEMENT (M€)
--------------------------------------------------------------------------------
| | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS: | | | |
--------------------------------------------------------------------------------
| Net sales | 86.4 | 91.2 | 375.9 |
--------------------------------------------------------------------------------
| Expenses corresponding to products | -70.8 | -75.1 | -313.3 |
| sold | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 15.6 | 16.1 | 62.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income and expenses, | -11.3 | -11.6 | -43.2 |
| net | | | |
--------------------------------------------------------------------------------
| EBIT | 4.3 | 4.5 | 19.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 0.9 | 1.0 | 3.1 |
--------------------------------------------------------------------------------
| Financial expenses | -0.9 | -1.3 | -3.7 |
--------------------------------------------------------------------------------
| Share of result of associated | 0.0 | 0.0 | 0.1 |
| companies and joint ventures | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before taxes | 4.3 | 4.2 | 18.9 |
--------------------------------------------------------------------------------
| Income tax | -1.3 | -1.4 | -5.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the period from continuing | 3.0 | 2.9 | 13.4 |
| operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS: | 0.1 | 0.2 | 39.7 |
| Result for the period from | | | |
| discontinued operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | 3.1 | 3.1 | 53.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent company | 3.1 | 3.1 | 53.1 |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share from the profit | | | |
| attributable to equity holders of the | | | |
| parent company | | | |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS: | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per share | 0.02 | 0.02 | 0.09 |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0.02 | 0.02 | 0.09 |
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS: | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per share | 0.00 | 0.00 | 0.26 |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0.00 | 0.00 | 0.25 |
--------------------------------------------------------------------------------
COMPREHENSIVE INCOME STATEMENT (M€)
--------------------------------------------------------------------------------
| | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Result for the period | 3.1 | 3.1 | 53.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income items | | | |
--------------------------------------------------------------------------------
| Translation differences recognised in | 0.0 | 0.0 | -0.3 |
| profit and loss on disposal of | | | |
| foreign operations | | | |
--------------------------------------------------------------------------------
| Gains and losses arising from | 0.6 | -0.4 | -0.3 |
| translating the financial statements | | | |
| of foreign operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive income for the period | 3.7 | 2.7 | 52.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Components of comprehensive income: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent company | 3.7 | 2.7 | 52.6 |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
BALANCE SHEET (M€)
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 7.1 | 9.4 | 7.5 |
--------------------------------------------------------------------------------
| Goodwill | 0.0 | 1.0 | 0.0 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 94.0 | 121.3 | 95.3 |
--------------------------------------------------------------------------------
| Shares in associated companies and | 0.8 | 0.7 | 0.8 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Financial assets available for sale | 0.6 | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Receivables | 0.1 | 0.3 | 0.4 |
--------------------------------------------------------------------------------
| Deferred tax assets | 6.3 | 7.6 | 6.5 |
--------------------------------------------------------------------------------
| Total non-current assets | 108.9 | 140.9 | 111.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 69.3 | 88.0 | 55.0 |
--------------------------------------------------------------------------------
| Accounts receivables and other | 50.2 | 53.1 | 54.9 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets at fair value | 189.8 | 68.1 | 215.3 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | 28.9 | 13.1 | 8.0 |
--------------------------------------------------------------------------------
| Total current assets | 338.2 | 222.3 | 333.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 447.1 | 363.2 | 444.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Share capital | 27.8 | 27.8 | 27.8 |
--------------------------------------------------------------------------------
| Own shares | -18.6 | -19.4 | -18.5 |
--------------------------------------------------------------------------------
| Other equity attributable to equity | 302.7 | 262.9 | 312.8 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | 311.8 | 271.3 | 322.0 |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total equity | 311.8 | 271.3 | 322.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 4.8 | 7.4 | 7.6 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Reserves | 1.2 | | 1.4 |
--------------------------------------------------------------------------------
| Non-current financial liabilities | 48.6 | 14.2 | 48.6 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 54.8 | 21.8 | 57.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 64.3 | 63.9 | 48.4 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Reserves | 1.6 | 0.9 | 1.6 |
--------------------------------------------------------------------------------
| Financial liabilities at fair value | 0.2 | 0.8 | 0.1 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Current financial liabilities | 14.5 | 4.5 | 14.2 |
--------------------------------------------------------------------------------
| Total current liabilities | 80.5 | 70.1 | 64.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 135.3 | 91.9 | 122.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 447.1 | 363.2 | 444.2 |
--------------------------------------------------------------------------------
CHANGES IN GROUP EQUITY (M€)
--------------------------------------------------------------------------------
| | Shar | Sha | Res | Own | Tran | Retai | Total | Minor | Total |
| | e | re | erv | shar | slat | ned | | ity | equit |
| | capi | pre | e | es | ion | earni | | inter | y |
| | tal | miu | fun | | diff | ngs | | est | |
| | | m | d | | eren | | | | |
| | | 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 | 3.1 | 2.7 | 0.0 | 2.7 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -10.9 | -10.9 | - | -10.9 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | 0.0 | - | - | 0.0 | - | 0.0 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | - | - | 0.1 | 0.1 | - | 0.1 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -19. | -3.6 | 175.0 | 271.3 | 0.0 | 271.3 |
| 31.3.2009 | | | 6 | 4 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -18. | -3.7 | 225.0 | 322.0 | 0.0 | 322.0 |
| 31.12.2009 | | | 6 | 5 | | | | | |
--------------------------------------------------------------------------------
| Comprehensi | - | - | - | - | 0.6 | 3.1 | 3.7 | - | 3.7 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -14.1 | -14.1 | - | -14.1 |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 0.0 | - | 0.1 | 0.1 | - | 0.1 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -18. | -3.1 | 214.1 | 311.8 | 0.0 | 311.8 |
| 31.3.2010 | | | 6 | 5 | | | | | |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT (M€)
--------------------------------------------------------------------------------
| | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Result before taxes, continuing | 4.3 | 4.2 | 18.9 |
| operations | | | |
--------------------------------------------------------------------------------
| Result before taxes, discontinued | 0.0 | 0.5 | 39.3 |
| operations | | | |
--------------------------------------------------------------------------------
| Adjustments | 3.4 | 5.4 | -24.1 |
--------------------------------------------------------------------------------
| Cash flow before change in working | 7.7 | 10.1 | 34.1 |
| capital | | | |
--------------------------------------------------------------------------------
| Change in current receivables | 0.7 | 9.2 | 4.2 |
--------------------------------------------------------------------------------
| Change in inventories | -14.2 | -14.8 | 16.3 |
--------------------------------------------------------------------------------
| Change in current | 2.3 | -0.8 | -2.6 |
| non-interest-bearing liabilities | | | |
--------------------------------------------------------------------------------
| Total change in working capital | -11.2 | -6.4 | 17.9 |
--------------------------------------------------------------------------------
| Financial items and taxes | -2.8 | 1.6 | -0.5 |
--------------------------------------------------------------------------------
| Cash flow from business operations | -6.3 | 5.4 | 51.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments in fixed assets | -2.3 | -2.0 | -10.0 |
--------------------------------------------------------------------------------
| Divestment of subsidiaries | 3.5 | 0.0 | 47.1 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 0.0 | 0.0 | 23.6 |
--------------------------------------------------------------------------------
| Investments on marketable securities | -20.0 | 0.0 | -10.0 |
--------------------------------------------------------------------------------
| Loans granted | 0.0 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Repayment of loan receivables | 0.3 | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | -18.5 | -1.7 | 50.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in non-current loans | 0.0 | -0.1 | 43.9 |
--------------------------------------------------------------------------------
| Change in current loans | 0.0 | -0.6 | -0.7 |
--------------------------------------------------------------------------------
| Repurchase of own shares | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Dividend paid to equity holders of | 0.0 | 0.0 | -10.8 |
| the parent company | | | |
--------------------------------------------------------------------------------
| Cash flow from financial operations | 0.0 | -0.7 | 32.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | -24.9 | 3.0 | 134.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds at the beginning of the | 213.0 | 77.9 | 77.9 |
| period | | | |
--------------------------------------------------------------------------------
| Effects of changes in foreign | 0.1 | 0.2 | 0.1 |
| exchange rates | | | |
--------------------------------------------------------------------------------
| Impact of change in market value on | 0.2 | -0.1 | 0.1 |
| liquid funds | | | |
--------------------------------------------------------------------------------
| Liquid funds at period-end | 188.4 | 81.0 | 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, IFR 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
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 Benecol and local brands, and the reported figures are those of the
Benecol business and of the Northern and Eastern European operations of the food
business. The Business to Business segment includes the feed, malt and oil
milling businesses.
NET SALES BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Brands | 43.4 | 44.5 | 177.6 |
--------------------------------------------------------------------------------
| Business to Business | 43.3 | 49.3 | 205.6 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.2 | 0.9 |
--------------------------------------------------------------------------------
| Interdivisional net sales | -0.5 | -2.7 | -8.1 |
--------------------------------------------------------------------------------
| Total net sales | 86.4 | 91.2 | 375.9 |
--------------------------------------------------------------------------------
EBIT BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Brands | 4.8 | 5.8 | 20.5 |
--------------------------------------------------------------------------------
| Business to Business | 0.1 | 0.1 | 3.0 |
--------------------------------------------------------------------------------
| Other operations | -0.6 | -1.1 | -4.3 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | -0.3 | 0.3 |
--------------------------------------------------------------------------------
| Brands | 4.3 | 4.5 | 19.5 |
--------------------------------------------------------------------------------
NET ASSETS BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Brands | 70.1 | 85.4 | 69.6 |
--------------------------------------------------------------------------------
| Business to Business | 87.7 | 84.8 | 79.2 |
--------------------------------------------------------------------------------
| Other operations, assets held for | 154.0 | 101.0 | 173.2 |
| sale and unallocated items | | | |
--------------------------------------------------------------------------------
| Total net assets | 311.8 | 271.3 | 322.0 |
--------------------------------------------------------------------------------
INVESTMENTS BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Brands | 0.6 | 0.4 | 3.3 |
--------------------------------------------------------------------------------
| Business to Business | 0.6 | 0.6 | 5.4 |
--------------------------------------------------------------------------------
| Other operations | 0.3 | 0.2 | 1.3 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total investments | 1.5 | 1.2 | 10.0 |
--------------------------------------------------------------------------------
NET SALES BY MARKET AREA (M€)
--------------------------------------------------------------------------------
| | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Finland | 58.8 | 64.3 | 251.5 |
--------------------------------------------------------------------------------
| Rest of Europe | 25.7 | 25.5 | 117.4 |
--------------------------------------------------------------------------------
| ROW | 1.9 | 1.4 | 7.1 |
--------------------------------------------------------------------------------
| Total | 86.4 | 91.2 | 375.9 |
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
| | 1-3/2010 | 1-3/2009 | 2009 |
--------------------------------------------------------------------------------
| Result for the discontinued | | | |
| operations (M€) | | | |
--------------------------------------------------------------------------------
| Income from ordinary operations | 0.0 | 10.6 | 32.7 |
--------------------------------------------------------------------------------
| Expenses | 0.0 | -10.2 | -28.9 |
--------------------------------------------------------------------------------
| Result before taxes | 0.0 | 0.5 | 3.7 |
--------------------------------------------------------------------------------
| Taxes | 0.0 | -0.2 | -0.7 |
--------------------------------------------------------------------------------
| Result after taxes | 0.0 | 0.2 | 3.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings due to discontinuation | 0.0 | | 35.6 |
--------------------------------------------------------------------------------
| Taxes | 0.1 | | 1.1 |
--------------------------------------------------------------------------------
| Result after taxes | 0.1 | | 36.7 |
--------------------------------------------------------------------------------
| Result for discontinued operations | 0.1 | 0.2 | 39.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow for the discontinued | | | |
| operations (M€) | | | |
--------------------------------------------------------------------------------
| Cash flow from business operations | -2.3 | 0.1 | 7.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | 3.5 | 0.0 | 70.7 |
--------------------------------------------------------------------------------
| Cash flow from financial | 0.0 | -0.7 | -1.0 |
| operations | | | |
--------------------------------------------------------------------------------
| Total cash flow | 1.2 | -0.6 | 77.0 |
--------------------------------------------------------------------------------
TANGIBLE ASSETS (M€)
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning | 332.7 | 417.1 | 417.1 |
| of the period | | | |
--------------------------------------------------------------------------------
| Conversion differences | 1.8 | -1.2 | -1.1 |
--------------------------------------------------------------------------------
| Increase | 1.1 | 1.2 | 9.4 |
--------------------------------------------------------------------------------
| Decrease | 0.0 | -0.7 | -92.6 |
--------------------------------------------------------------------------------
| Reclassifications between items | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Acquisition cost at period-end | 335.6 | 416.3 | 332.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | 237.4 | 292.8 | 292.8 |
| impairment at the beginning of the | | | |
| period | | | |
--------------------------------------------------------------------------------
| Conversion difference | 1.4 | -0.6 | -0.7 |
--------------------------------------------------------------------------------
| Decrease and transfers | 0.0 | -0.7 | -73.4 |
--------------------------------------------------------------------------------
| Depreciation for the period | 2.8 | 3.6 | 12.5 |
--------------------------------------------------------------------------------
| Write-downs | 0.0 | 0.0 | 6.2 |
--------------------------------------------------------------------------------
| Accumulated depreciation and | 241.5 | 295.1 | 237.4 |
| impairment at period-end | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at period-end | 94.0 | 121.3 | 95.3 |
--------------------------------------------------------------------------------
RESERVES (M€)
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| At the beginning of the period | 3.1 | 1.1 | 1.1 |
--------------------------------------------------------------------------------
| Increase in provisions | 0.0 | 0.0 | 2.3 |
--------------------------------------------------------------------------------
| Provisions used | -0.2 | -0.2 | -0.4 |
--------------------------------------------------------------------------------
| At period-end | 2.9 | 0.9 | 3.1 |
--------------------------------------------------------------------------------
BUSINESS ACTIVITIES INVOLVING INSIDERS (M€)
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Sales to associated companies and | 3.0 | 3.2 | 12.1 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Purchases from associated companies | 0.1 | 0.1 | 0.1 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
| Sales to key employees in | 0.0 | 0.2 | 0.2 |
| management | | | |
--------------------------------------------------------------------------------
| Purchases from key employees in | 0.3 | 0.3 | 0.7 |
| management | | | |
--------------------------------------------------------------------------------
| Receivables from associated | 1.5 | 1.6 | 1.2 |
| companies and joint ventures | | | |
--------------------------------------------------------------------------------
| Liabilities to associated companies | 0.1 | 0.1 | 0.2 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES (M€)
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Contingent off-balance sheet | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Non-cancelable other leases | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | 1.3 | 1.7 | 1.3 |
--------------------------------------------------------------------------------
| Contingent liabilities for the | 22.6 | 0.2 | |
| company | | | |
--------------------------------------------------------------------------------
| Contingent liabilities for others | | | |
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Other liabilities | 4.1 | 1.4 | 2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitment to investment payments | 1.8 | 0.9 | 0.6 |
--------------------------------------------------------------------------------
DERIVATIVE CONTRACTS (M€)
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Nominal values of derivative | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Currency forward contracts | 7.0 | 13.5 | 7.5 |
--------------------------------------------------------------------------------
| Interest rate swaps | 39.4 | 10.0 | 39.4 |
--------------------------------------------------------------------------------
QUARTERLY PERFORMANCE (M€)
--------------------------------------------------------------------------------
| | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales by segment | | | | | |
--------------------------------------------------------------------------------
| Brands | 43.4 | 45.5 | 43.5 | 44.2 | 44.5 |
--------------------------------------------------------------------------------
| Business to Business | 43.3 | 46.3 | 54.2 | 55.8 | 49.3 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.3 | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Interdivisional net sales | -0.5 | -0.6 | -2.4 | -2.4 | -2.7 |
--------------------------------------------------------------------------------
| Total net sales | 86.4 | 91.5 | 95.5 | 97.8 | 91.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT by segment | | | | | |
--------------------------------------------------------------------------------
| Brands | 4.8 | 2.8 | 7.3 | 4.6 | 5.8 |
--------------------------------------------------------------------------------
| Business to Business | 0.1 | 2.0 | 0.3 | 0.6 | 0.1 |
--------------------------------------------------------------------------------
| Other operations | -0.6 | -0.8 | -0.8 | -1.6 | -1.1 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.2 | 0.2 | 0.2 | -0.3 |
--------------------------------------------------------------------------------
| Total EBIT | 4.3 | 4.2 | 7.0 | 3.7 | 4.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | -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 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Result before taxes | 4.3 | 4.5 | 6.8 | 3.4 | 4.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax | -1.3 | -1.5 | -1.8 | -1.0 | -1.4 |
--------------------------------------------------------------------------------
| Result for the period from | 3.0 | 3.0 | 5.0 | 2.5 | 2.9 |
| continuing operations | | | | | |
--------------------------------------------------------------------------------
KEY INDICATORS
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Net sales, M€ | 86.4 | 91.2 | 375.9 |
--------------------------------------------------------------------------------
| Change of net sales, % | -5.2 | -16.5 | -18.8 |
--------------------------------------------------------------------------------
| Operating margin, M€ | 7.8 | 8.6 | 36.4 |
--------------------------------------------------------------------------------
| Depreciation and impairment, M€ | 3.5 | 4.1 | 17.0 |
--------------------------------------------------------------------------------
| EBIT, M€ | 4.3 | 4.5 | 19.5 |
--------------------------------------------------------------------------------
| % of net sales | 5.0 | 5.0 | 5.2 |
--------------------------------------------------------------------------------
| Result before taxes, M€ | 4.3 | 4.2 | 18.9 |
--------------------------------------------------------------------------------
| % of net sales | 5.0 | 4.6 | 5.0 |
--------------------------------------------------------------------------------
| Return on equity, ROE, % | 3.8 | 4.2 | 4.5 |
--------------------------------------------------------------------------------
| Return on investment, ROI, % | 5.1 | 6.0 | 6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing financial | 63.0 | 18.8 | 62.8 |
| liabilities at period-end, M€ | | | |
--------------------------------------------------------------------------------
| Net interest-bearing financial | -125.4 | -62.2 | -150.2 |
| liabilities at period-end, M€ | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 70.5 | 75.5 | 73.4 |
--------------------------------------------------------------------------------
| Net gearing, % | -40.2 | -22.9 | -46.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross investments, M€ | 1.5 | 1.2 | 10.0 |
--------------------------------------------------------------------------------
| % of net sales | 1.7 | 1.3 | 2.7 |
--------------------------------------------------------------------------------
| R & D expenses, M€ | 1.2 | 1.4 | 6.1 |
--------------------------------------------------------------------------------
| % of net sales | 1.4 | 1.5 | 1.6 |
--------------------------------------------------------------------------------
| Average personnel | 601 | 638 | 627 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/share from continuing | 0.02 | 0.02 | 0.09 |
| operations, EUR | | | |
--------------------------------------------------------------------------------
| Cash flow from operations/share, | -0.04 | 0.03 | 0.33 |
| EUR | | | |
--------------------------------------------------------------------------------
| Equity/share, EUR | 2.00 | 1.74 | 2.06 |
--------------------------------------------------------------------------------
| Average number of shares during | | | |
| the period, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 121 897 | 121 516 | 121 666 |
--------------------------------------------------------------------------------
| Restricted shares | 34 250 | 34 274 | 34 268 |
--------------------------------------------------------------------------------
| Total | 156 147 | 155 791 | 155 934 |
--------------------------------------------------------------------------------
| Average numer of shares at | | | |
| period-end, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 121 900 | 121 516 | 121 894 |
--------------------------------------------------------------------------------
| Restricted shares | 34 250 | 34 273 | 34 250 |
--------------------------------------------------------------------------------
| Total | 156 150 | 155 789 | 156 145 |
--------------------------------------------------------------------------------
| Market capitalisation of shares at | | | |
| period-end, M€*) | | | |
--------------------------------------------------------------------------------
| Free shares | 341.3 | 181.1 | 324.2 |
--------------------------------------------------------------------------------
| Restricted shares | 93.8 | 54.8 | 93.2 |
--------------------------------------------------------------------------------
| Total | 435.2 | 235.9 | 417.4 |
--------------------------------------------------------------------------------
*) 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 |
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*)The calculation of key indicators uses continuing operations result
**)Excluding shares with a potential return obligation
