RAISIO'S TURNOVER INCREASED AND OPERATING RESULT IMPROVED CONSIDERABLY
Raisio plc, Interim Report 5 May 2008 at 8:30
INTERIM REPORT 1 January - 31 March 2008
RAISIO'S TURNOVER INCREASED AND OPERATING RESULT IMPROVED CONSIDERABLY
- Raisio's turnover in January-March increased by more than 20 per cent
year-over-year, amounting to EUR 118.9 million (EUR 96.8 million in
January-March 2007).
- Operating result was EUR 4.2 million (EUR 1.2 million) and, including one-off
items, EUR 8.4 million (EUR 1.2 million). Raisio booked a one-off income item of
EUR 4.2 million from the dissolution of joint ventures with Lantmännen, a
Swedish corporation.
- With the Food Division turning profitable, all of Raisio's Divisions posted a
profitable operating result. The improvement in operating profits resulted from
the implementation of flexible pricing systems, growth and cost-effective
operations.
- Raisio's forecast for the Group's outlook in 2008 is unchanged. Raisio's
turnover is expected to increase and the operating result from continuing
operations in 2008, excluding one-off items, is expected to improve from the
previous year. All divisions are expected to post profitable annual operating
results although the pressure on profitability will continue in feed. The
overall operating result in the Food Division is expected to be profitable,
although the target operating result rate of 5 per cent will probably not be
achieved due to increased marketing inputs, new product launches and
preparations for entry into new markets. The Ingredients Division is expected to
increase turnover and improve profitability from the previous year.
The figures for the comparison period are given in brackets in the text.
Key figures, result from continuing operations
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | 2007 |
--------------------------------------------------------------------------------
| Turnover, EUR million | 118.9 | 96.8 | 421.9 |
--------------------------------------------------------------------------------
| Operating result, EUR million | 4.2 | 1.2 | 9.9 |
--------------------------------------------------------------------------------
| % of turnover | 3.5 | 1.2 | 2.3 |
--------------------------------------------------------------------------------
| Result before taxes, EUR million | 4.2 | 2.1 | 8.8 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.02 | 0.01 | 0.05 |
--------------------------------------------------------------------------------
The figures do not include one-off items.
Key figures, balance sheet
--------------------------------------------------------------------------------
| | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Return on investment, % | 12.3 | 3.1 | 3.6 |
--------------------------------------------------------------------------------
| Equity ratio, % | 77.1 | 74.9 | 77.9 |
--------------------------------------------------------------------------------
| Gearing, % | -4.3 | -11.1 | -12.5 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.70 | 1.70 | 1.70 |
--------------------------------------------------------------------------------
CEO Matti Rihko:
“Raisio's financial performance in the first quarter indicates that the measures
the company took last year to improve profitability were the right ones and that
their impact is now beginning to show. What most improved the operating result
were the divestment of unprofitable operations, enhancement of business model,
cost-effectiveness and new, flexible pricing systems. After a long, unprofitable
period the Food Division posted a profitable result, which speaks of a healthier
cost structure and a new approach in business operations.
Raisio is at the core of the food business, as grain is considered to be a basic
ingredient in the field, whether processed into food or feed. The rising
standard of living in Asia, climate change, increasing production of biofuels,
urbanization and contamination threaten to reduce the size of food production
areas. This will make global supply and demand more challenging both
ecologically and ethically. The food industry must develop ecological and
healthy food without the consumer having to compromise on flavour or
convenience.
As a European pioneer, Raisio added a label to its Elovena oat package that
shows the CO2 emissions and created a new labelling indicator. Consumers want
information about the environmental impact of foods when making purchasing
decisions. Raisio answers this need with the introduction of the CO2 label. In
the future, CO2 emissions labels that show the environmental impact of the
product will become increasingly more common on food packages alongside price
and nutritional information labels.
Raisio continues its measures to develop the entire grain chain. The solution to
the clear imbalance between food supply and demand lies in plant-based, locally
produced food. I believe that Raisio, as a pioneer in ecological, plant-based
food and as one of Europe's most innovative grain companies, is in an extremely
good position to answer the new challenges facing the food industry."
RESULT FROM CONTINUING OPERATIONS
Raisio's turnover in January-March increased by more than 20% to EUR 118.9
million (EUR 96.8 million). The biggest growth was seen in the feed and malt
businesses. The Food Division's turnover amounted to EUR 49.0 million (EUR 49.8
million), while that of Feed & Malt was EUR 64.3 million (EUR 40.4 million) and
that of Ingredients EUR 12.7 million (EUR 12.5 million). Turnover from outside
Finland represented 36.4% (38.0%) of the total, or EUR 43.3 million (EUR 36.8
million).
The Group's operating result in the first quarter totalled EUR 4.2 million (EUR
2.1 million) and, including one-off items, EUR 8.4 million (EUR 2.1 million).
The Food Division's operating result was EUR 0.6 million (EUR -0.9 million) and,
including one-off items, EUR 4.8 million (EUR -0.9 million). The operating
result of the Feed & Malt Division was EUR 1.7 million (EUR 0.5 million), that
of Ingredients EUR 3.3 million (EUR 2.5 million) and that of other operations
EUR -0.8 million (EUR -0.8 million). Raisio booked a one-off income item of EUR
4.2 million in the Food Division's operating result from the dissolution of
joint ventures with Lantmännen, a Swedish corporation. Depreciation, allocated
to operations in the income statement, totalled EUR 4.0 million (EUR 4.3
million) in January-March.
The first-quarter result before taxes was EUR 4.2 million (EUR 2.1 million) and,
including one-off items, EUR 8.4 million (EUR 2.1 million). The Group's net
financial items in January-March totalled EUR -0.1 million (EUR 1.1 million).
The first-quarter result after taxes was EUR 3.1 million (EUR 1.7 million) and,
including one-off items, EUR 7.3 million (EUR 1.7 million). In January-March,
earnings per share were EUR 0.02 (EUR 0.01) and, including one-off items, EUR
0.05 (EUR 0.01). Return on investment amounted to 12.3% (3.1%).
BALANCE SHEET AND FINANCIAL POSITION
At the end of March, Raisio's balance sheet total was EUR 346.7 million (EUR
360.3 million on 31 December 2007) and its equity was EUR 266.4 million (EUR
278.8 million on 31 December 2007). Equity per share at the end of March was EUR
1.70 (EUR 1.70 on 31 December 2007).
The Group's interest-bearing debt at the end of March was EUR 6.6 million (EUR
8.7 million on 31 December 2007). Net interest-bearing debt totalled EUR -11.4
million (EUR -34.9 million on 31 December 2007). The equity ratio at the end of
March was 77.1% (77.9% on 31 December 2007), and the net gearing ratio -4.3%
(-12.5% on 31 December 2007). Cash flow from business operations totalled EUR
-10.1 million (EUR -18.7 million) in the first quarter. Working capital rose to
EUR 119.0 million (EUR 100.5 million on 31 December 2007), mainly due to the
increase in accounts receivables, prepaid expenses and accrued income, as well
as the increase in inventories, which aims to ensure the availability of raw
materials until the next crop.
Gross investments in January-March totalled EUR 17.3 million (EUR 6.4 million).
The biggest single investment was the acquisition of a 25% holding in Melia Ltd
from Lantmännen, a Swedish corporation. The most significant production
investment was made in the Ylivieska feed plant, which will come on line in
summer 2008.
CONTINUING OPERATIONS
Food
The Food Division's turnover in January-March totalled EUR 49.0 million (EUR
49.8 million). The Division implemented a reporting model based on market areas
in the first quarter. Turnover is now reported for two market areas. The Nordic
market area includes Finland, Sweden and the Baltic countries, while Eastern
Europe consists of Poland, Russia and neighbouring regions.
Raisio and Lantmännen, a Swedish corporation, dissolved their joint ventures in
January. Lantmännen handed over its 25% holding in Melia Ltd, a Finnish mill, to
Raisio. In turn, Raisio handed over its 50% holding in the joint venture company
GoGreen AB and its 27% holding in the AS Rigas Dzirnavnieks milling company in
Latvia. Full ownership of Melia gives Raisio better opportunities to develop
Elovena, one of Finland's most highly valued brands, independently.
The Division continued its systematic development and enhancement of the Finnish
product portfolio. To date, the range of branded products has been reduced by
nearly 30 per cent and the range of catering and bakery products by some 40 per
cent. Despite the reductions and enhancements made to the product range, the
sales of branded products increased. A clear emphasis on the main brands -
Elovena, Keiju and Sunnuntai - also enabled better targeting of marketing inputs
and repositioning of consumer prices.
Margarine sales continued to grow in Poland, as did the sales of Benecol
products. Benecol is the uncontested market leader in Poland in
cholesterol-lowering functional foods. Flake sales continued to increase in
Russia, but so did costs.
Key figures for the Food Division
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | 2007 |
--------------------------------------------------------------------------------
| Turnover, EUR million | 49.0 | 49.8 | 197.1 |
--------------------------------------------------------------------------------
| Nordic | 35.2 | 36.6 | 148.1 |
--------------------------------------------------------------------------------
| Eastern Europe | 15.5 | 14.5 | 53.9 |
--------------------------------------------------------------------------------
| Operating result, EUR million | 4.8 | -0.9 | -11.1 |
--------------------------------------------------------------------------------
| One-off items, EUR million | 4.2 | 0.0 | -5.3 |
--------------------------------------------------------------------------------
| Operating result, excluding | 0.6 | -0.9 | -5.8 |
| one-off items, EUR million | | | |
--------------------------------------------------------------------------------
| % of turnover | 1.2 | -1.8 | -2.9 |
--------------------------------------------------------------------------------
| Investments | 13.8 | 3.3 | 7.2 |
--------------------------------------------------------------------------------
| Net assets | 86.0 | 94.1 | 85.8 |
--------------------------------------------------------------------------------
The Food Division's operating result in January-March was EUR 0.6 million (EUR
-0.9 million) and, including one-off items, EUR 4.8 million (EUR -0.9 million).
The Food Division's profitability improved thanks to cost-effective operations,
increased sales of branded products and the implementation of a new, flexible
pricing system. Raisio booked a one-off income item of EUR 4.2 million in the
Food Division's operating result from the dissolution of joint ventures with
Lantmännen, a Swedish corporation.
In early 2008 Raisio introduced an Elovena snack drink, which has already sold
over one million consumer packages. The drink is a good example of innovative
new products based on consumer needs. A second flavour was introduced at the
beginning of May.
Feed & Malt
The Feed & Malt Division's turnover in January-March increased by nearly 60% to
EUR 64.3 million (EUR 40.4 million). Turnover was boosted by the growth in feed
and malt sales volumes and the transfer of raw material price rises to product
prices. Raisio strengthened its position in the feed market.
Key figures for the Feed & Malt division
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | 2007 |
--------------------------------------------------------------------------------
| Turnover, EUR million | 64.3 | 40.4 | 206.7 |
--------------------------------------------------------------------------------
| Feed | 53.0 | 34.6 | 175.5 |
--------------------------------------------------------------------------------
| Malt | 9.3 | 5.7 | 30.1 |
--------------------------------------------------------------------------------
| Other | 2.3 | 0.2 | 1.7 |
--------------------------------------------------------------------------------
| Operating result, EUR million | 1.7 | 0.5 | 14.2 |
--------------------------------------------------------------------------------
| One-off items, EUR million | 0.0 | 0.0 | 6.0 |
--------------------------------------------------------------------------------
| Operating result, excluding | 1.7 | 0.5 | 8.2 |
| one-off items, EUR million | | | |
--------------------------------------------------------------------------------
| % of turnover | 2.6 | 1.1 | 4.0 |
--------------------------------------------------------------------------------
| Investments | 2.3 | 1.9 | 16.7 |
--------------------------------------------------------------------------------
| Net assets | 104.0 | 76.0 | 86.0 |
--------------------------------------------------------------------------------
The Feed & Malt Division's operating result in January-March totalled EUR 1.7
million (EUR 0.5 million). Competition in the feed markets remained strong, but
good financial performance in the malt business improved the operating result
year-over-year.
General restructuring in the feed business has made the market situation
tougher. Sharp price rises in all production inputs have affected the liquidity
and profitability of farms in the short term. Consolidation continues in the
brewery business.
The prices of grains and oil plants have seen big volatility, and the price
level is currently around 70 per cent higher than a year before. Raisio is
actively developing new pricing models for raw material purchases that take both
the buyer's and seller's interests into consideration and improve
predictability.
Ingredients
The Ingredients Division's turnover in January-March totalled EUR 12.7 million
(EUR 12.5 million). It increased thanks to good growth in volumes, especially in
the UK, Poland and Spain.
Key figures for the Ingredients Division
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | 2007 |
--------------------------------------------------------------------------------
| Turnover, EUR million | 12.7 | 12.5 | 44.9 |
--------------------------------------------------------------------------------
| Operating result, EUR million | 3.3 | 2.5 | 9.5 |
--------------------------------------------------------------------------------
| One-off items, EUR million | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Operating result, excluding | 3.3 | 2.5 | 9.5 |
| one-off items, EUR million | | | |
--------------------------------------------------------------------------------
| % of turnover | 25.9 | 19.7 | 21.2 |
--------------------------------------------------------------------------------
| Investments | 0.7 | 2.4 | 7.5 |
--------------------------------------------------------------------------------
| Net assets | 43.9 | 45.5 | 46.0 |
--------------------------------------------------------------------------------
The Division's operating result in January-March rose to EUR 3.3 million (EUR
2.5 million), boosted by improved cost-effectiveness and restructuring project
carried out last autumn.
In February 2008, British Biologicals, Raisio's partner in India, launched a
nutritional powder containing Benecol plant stanol ester on the Indian market.
The Colred-Benecol nutritional powder is the first cholesterol-lowering Benecol
product that has been introduced on the Asian market. The launch in India will
increase the recognition of the Benecol brand and will pave the way for product
launches elsewhere in Asia.
The Ingredients Division aims to be an active player in the growing European,
Asian and US markets for cholesterol-lowering functional foods with innovative
product applications.
RESEARCH AND DEVELOPMENT
Research and development costs in the first quarter amounted to EUR 1.5 million
(EUR 1.7 million), or 1.3% (1.8%) of turnover. Raisio's R&D is based on a
consumer- and customer-oriented approach. The development of new products
emphasises flavour, convenience, health, well-being and the environment. Raisio
has participated for years in research projects focusing on the environmental
impacts of individual food products and, as a European pioneer, continues to
study and publish the CO2 emissions and other environmental impacts of its
products.
PERSONNEL
Raisio employed 1,050 people at the end of March (1,072 on 31 December 2007),
32.1% of whom worked outside Finland (31.9% on 31 December 2007). At the end of
March the Food Division had 658, Feed & Malt 265, Ingredients 64 and service
functions 63 employees.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares traded on the OMX Nordic Exchange
Helsinki in January-March totalled 8.3 million (13.2 million). The value of
trading was EUR 12.3 million (EUR 26.0 million), and the average price was EUR
1.48. The closing price on 31 March 2008 was EUR 1.44.
A total of 0.1 million restricted shares (0.3 million) were traded in
January-March. The value of trading was EUR 0.2 million (EUR 0.6 million), and
the average price was EUR 1.57. The closing price on 31 March 2008 was EUR 1.48.
On 31 March 2008, the Group had a total of 37,578 registered shareholders
(37,873 on 31 December 2007). Foreign ownership of the entire share capital was
14.8% (15.4% on 31 December 2007).
Raisio's market value at the end of March amounted to EUR 239.2 million (EUR
248.4 million on 31 December 2007) and, excluding the shares held by the
company, EUR 227.2 million (EUR 235.8 million on 31 December 2007).
At the end of the review period Raisio plc held 8,158,500 free shares and
177,803 restricted shares. The number of free shares accounts for 6.24% of all
free shares and the votes they represent, while the corresponding figure for
restricted shares is 0.52%. In all, the shares held by the company represent
5.05% of the share capital and 1.43% of overall votes.
Raisio plc's subsidiaries do not hold any shares in the parent company. The
Raisio plc's Research Foundation, an affiliated association, 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 company share held by Raisio or its subsidiary does not entitle the holder to
participate in the Annual General Meeting.
DECISIONS MADE AT THE ANNUAL GENERAL MEETING
Raisio plc's Annual General Meeting held on 27 March 2008 approved the financial
statements for the financial year 1 January-31 December 2007 and discharged the
members of the Supervisory Board and the Board of Directors, as well as the
Chief Executive Officer from liability. The Annual General Meeting decided to
distribute a dividend of EUR 0.04 per share. The dividend was paid to
shareholders on 8 April 2008.
The AGM decided to remove the reference to food diagnostics in the business
definition (Section 3) of the Articles of Association as proposed by the Board
of Directors. The amendment to the Articles of Association was entered in the
Trade Register on 18 April 2008.
The Annual 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 expires on 27 September 2009.
Furthermore, the Annual General Meeting authorised the Board of Directors to
decide on share issues by (1) disposing all of the company shares and any
repurchased shares - a maximum total of 16,500,000 shares, 2,269,500 of which
can be restricted shares, and by (2) issuing a maximum of 16,500,000 new free
shares against payment. The share issue authorisations will expire at the latest
on 27 March 2013.
Details of the authorisations are available in the stock exchange release issued
on 13 February 2008.
The authorisation to repurchase and dispose of company shares (share issue
authorisation) given by the Annual General Meeting in 2007 expired on 27 March
2008.
The number of members in the Board of Directors was set at five, and Anssi
Aapola, Erkki Haavisto, Satu Lähteenmäki, Simo Palokangas and Michael
Ramm-Schmidt were reappointed as members for the term beginning at the now ended
Annual General Meeting. At its first meeting the Board of Directors elected Simo
Palokangas as its Chairman and Michael Ramm-Schmidt as its Vice Chairman.
The number of Supervisory Board members was set at 25. Members appointed to the
Supervisory Board for the term beginning at the now ended Annual General Meeting
and continuing until the Annual General Meeting 2011 include Michael Hornborg,
Pentti Kalliala, Paavo Myllymäki, Yrjö Ojaniemi, Kari Niemistö, Raine Rekikoski
and Hannu Tarkkonen.
Johan Kronberg and Mika Kaarisalo, authorised public accountants, were elected
as regular auditors for the financial year 2009. PricewaterhouseCoopers Oy and
Kalle Laaksonen, authorised public accountant, will act as deputy auditors.
EVENTS AFTER THE REVIEW PERIOD
As a European pioneer in the sector, Raisio has equipped its Elovena oats with a
label indicating the CO2 emissions of the product and has created a new
labelling indicator. Consumers want information about the environmental impact
of foods when making purchasing decisions. Raisio answers this need for
information with the introduction of its CO2 label. The company will now
determine the CO2 emissions of its other products and add the label to other
consumer items in order to further develop the new indicator. The CO2 emissions
of Elovena oats, from cultivation through processing to store shelves, are only
around 37 grams per 100 grams of oats. This is an extremely low emissions level.
In other words, Elovena's overall impact on the environment is positive.
RISKS AND SOURCES OF UNCERTAINTY IN THE NEAR FUTURE
Business risks in 2008 were described in greater detail in the financial
statements released on 13 February 2008. The biggest challenge in the near
future comes from controlling the volatility of raw material prices until the
next crop.
According to the decision made by the Assessment Adjustment Board of the Tax
Office for Major Corporations in November 2006, the sales profit of the
divestment of Raisio Chemicals, totalling approximately EUR 220 million, is free
of tax. The case is still under consideration in the Helsinki administrative
court. Raisio's stand, supported by the expert statements obtained by the
company, remains the same: the sales profit is free of tax.
OUTLOOK
Raisio's forecast for the Group's outlook in 2008 is unchanged. Raisio's
turnover is expected to increase and the operating result from continuing
operations in 2008, excluding one-off items, is expected to improve from the
previous year. All divisions are expected to post profitable annual operating
results although the pressure on profitability will continue in feed. The
overall operating result in the Food Division is expected to be profitable,
although the target operating result rate of 5 per cent will probably not be
achieved due to increased marketing inputs, new product launches and
preparations for entry into new markets. The Ingredients Division is expected to
increase turnover and improve profitability from the previous year.
Raisio, 5 May 2008
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 held on 5 May 2008 at 1:00 pm
Finnish time in Helsinki. It will be held at Hotel Scandic Simonkenttä, in the
Bulsa-Freda meeting room. The address is Simonkatu 9, Helsinki
A teleconference in English will be held on 5 May 2008 at 4:00 pm Finnish time,
tel. +358 (0)9 8248 2831, PIN code 140112.
The Interim Report has not been audited.
The January-June Interim Report will be published on 1 August 2008 and the
January-September report on 31 October 2008.
INCOME STATEMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | 2007 |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS: | | | |
--------------------------------------------------------------------------------
| Turnover | 118.9 | 96.8 | 421.9 |
--------------------------------------------------------------------------------
| Expenses corresponding to products | -99.1 | -81.0 | -352.0 |
| sold | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 19.8 | 15.9 | 69.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income and expenses, | -11.3 | -14.7 | -59.3 |
| net | | | |
--------------------------------------------------------------------------------
| Operating result | 8.4 | 1.2 | 10.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 0.8 | 1.4 | 2.5 |
--------------------------------------------------------------------------------
| Financial expenses | -0.8 | -0.3 | -3.2 |
--------------------------------------------------------------------------------
| Share of result of associated | 0.0 | -0.2 | -0.3 |
| companies and joint ventures | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before taxes | 8.4 | 2.1 | 9.5 |
--------------------------------------------------------------------------------
| Income tax | -1.1 | -0.4 | -1.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the period from the | 7.3 | 1.7 | 8.3 |
| continuing operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS: | 0.0 | -1.0 | -7.3 |
| Result for the period from | | | |
| discontinued operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | 7.3 | 0.7 | 1.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent company | 7.2 | 0.7 | 1.4 |
--------------------------------------------------------------------------------
| Minority interest | 0.1 | 0.0 | -0.4 |
--------------------------------------------------------------------------------
| Earnings per share from the profit | | | |
| attributable to equity holders of the | | | |
| parent company | | | |
--------------------------------------------------------------------------------
| Earnings per share from continuing | 0.05 | 0.01 | 0.05 |
| operations (EUR) | | | |
--------------------------------------------------------------------------------
| Earnings per share from discontinued | 0.00 | -0.01 | -0.05 |
| operations (EUR) | | | |
--------------------------------------------------------------------------------
BALANCE SHEET (EUR million)
--------------------------------------------------------------------------------
| | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 11.2 | 11.5 | 10.9 |
--------------------------------------------------------------------------------
| Goodwill | 1.4 | 2.6 | 1.3 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 127.3 | 116.8 | 127.9 |
--------------------------------------------------------------------------------
| Shares in associated companies and | 0.7 | 2.2 | 1.4 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Financial assets available for sale | 0.6 | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Receivables | 1.0 | 2.9 | 1.3 |
--------------------------------------------------------------------------------
| Deferred tax assets | 11.1 | 11.1 | 11.3 |
--------------------------------------------------------------------------------
| Total non-current assets | 153.3 | 147.6 | 154.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 95.6 | 92.5 | 91.7 |
--------------------------------------------------------------------------------
| Accounts receivables and other | 79.9 | 74.6 | 70.1 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets at fair value | 11.4 | 43.6 | 27.9 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | 6.6 | 9.9 | 15.9 |
--------------------------------------------------------------------------------
| Total current assets | 193.5 | 220.6 | 205.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets available for | | 14.3 | |
| sale | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 346.7 | 382.5 | 360.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity | | | |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Share capital | 27.8 | 27.8 | 27.8 |
--------------------------------------------------------------------------------
| Own shares | -17.8 | -11.4 | -17.9 |
--------------------------------------------------------------------------------
| Other equity attributable to equity | 256.3 | 256.3 | 256.2 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity | 266.4 | 272.7 | 266.1 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 13.3 | 12.7 |
--------------------------------------------------------------------------------
| Total equity | 266.4 | 286.0 | 278.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 9.1 | 8.0 | 9.1 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 0.4 | 1.2 | 0.4 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other non-current liabilities | 0.0 | 1.0 | 0.0 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 9.7 | 10.3 | 9.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 62.7 | 60.6 | 60.4 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Reserves | 1.9 | 2.6 | 1.9 |
--------------------------------------------------------------------------------
| Financial liabilities at fair value | 0.1 | 0.1 | 1.5 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Current interest-bearing liabilities | 6.1 | 20.2 | 8.2 |
--------------------------------------------------------------------------------
| Total current liabilities | 70.7 | 83.6 | 71.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts related to non-current assets | | 2.6 | |
| held for sale | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 80.4 | 96.5 | 81.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 346.7 | 382.5 | 360.3 |
--------------------------------------------------------------------------------
CHANGES IN GROUP EQUITY (EUR million)
--------------------------------------------------------------------------------
| | 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. | -11. | -1.2 | 170.4 | 277.1 | 13.3 | 290.4 |
| 31.12.2006 | | | 6 | 4 | | | | | |
--------------------------------------------------------------------------------
| Translation | - | - | - | - | -0.4 | - | -0.4 | 0.0 | -0.4 |
| differences | | | | | | | | | |
| , generated | | | | | | | | | |
| in the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | - | - | - | - | | 0.0 | 0.0 | - | 0.0 |
| changes | | | | | | | | | |
--------------------------------------------------------------------------------
| Net income | 0.0 | 0.0 | 0.0 | 0.0 | -0.4 | 0.0 | -0.3 | 0.0 | -0.3 |
| recorded | | | | | | | | | |
| directly in | | | | | | | | | |
| shareholder | | | | | | | | | |
| s' equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | - | - | - | - | - | 0.7 | 0.7 | 0.0 | 0.7 |
| the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | 0.0 | 0.0 | 0.0 | 0.0 | -0.4 | 0.7 | 0.4 | 0.0 | 0.4 |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -4.8 | -4.8 | - | -4.8 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | - | - | - | 0.0 | - | 0.0 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Total other | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -4.8 | -4.8 | 0.0 | -4.8 |
| chanes | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -11. | -1.6 | 166.3 | 272.7 | 13.3 | 286.0 |
| 31.3.2007 | | | 6 | 4 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -17. | -2.3 | 167.0 | 266.1 | 12.7 | 278.8 |
| 31.12.2007 | | | 6 | 9 | | | | | |
--------------------------------------------------------------------------------
| Translation | - | - | - | - | 0.0 | 0.1 | 0.1 | - | 0.1 |
| differences | | | | | | | | | |
| , | | | | | | | | | |
| transferred | | | | | | | | | |
| to the | | | | | | | | | |
| income | | | | | | | | | |
| statement | | | | | | | | | |
| on disposal | | | | | | | | | |
| of | | | | | | | | | |
| associated | | | | | | | | | |
| companies | | | | | | | | | |
| and joint | | | | | | | | | |
| ventures | | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | - | - | - | - | -0.6 | - | -0.6 | - | -0.6 |
| differences | | | | | | | | | |
| , generated | | | | | | | | | |
| in the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | - | - | - | - | 0.1 | -0.1 | 0.0 | 0.0 | 0.0 |
| changes | | | | | | | | | |
--------------------------------------------------------------------------------
| Net income | 0.0 | 0.0 | 0.0 | 0.0 | -0.5 | -0.1 | -0.5 | 0.0 | -0.5 |
| recorded | | | | | | | | | |
| directly in | | | | | | | | | |
| shareholder | | | | | | | | | |
| s' equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | - | - | - | - | - | 7.2 | 7.2 | 0.1 | 7.3 |
| the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | 0.0 | 0.0 | 0.0 | 0.0 | -0.5 | 7.1 | 6.7 | 0.1 | 6.8 |
| for the | | | | | | | | | |
| financial | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -6.3 | -6.3 | - | -6.3 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | 0.0 | - | - | 0.0 | - | 0.0 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 0.2 | - | 0.0 | 0.1 | - | 0.1 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
| Squeeze-out | - | - | - | - | - | -0.2 | -0.2 | -12.8 | -13.0 |
--------------------------------------------------------------------------------
| Total other | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | -6.6 | -6.4 | -12.8 | -19.2 |
| changes | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -17. | -2.8 | 167.6 | 266.4 | 0.0 | 266.4 |
| 31.3.2008 | | | 6 | 8 | | | | | |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 2007 |
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Operating result | 8.4 | 0.1 | 3.3 |
--------------------------------------------------------------------------------
| Adjustments to operting result | 0.3 | 4.6 | 22.3 |
--------------------------------------------------------------------------------
| Cash flow before change in working capital | 8.8 | 4.7 | 25.6 |
--------------------------------------------------------------------------------
| Change in current receivables | -9.5 | -5.1 | 1.9 |
--------------------------------------------------------------------------------
| Change in inventories | -4.0 | -14.7 | -12.1 |
--------------------------------------------------------------------------------
| Change in current non-interest-bearing | -3.5 | -4.8 | 0.2 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total change in working capital | -17.0 | -24.7 | -9.9 |
--------------------------------------------------------------------------------
| Financial items and taxes | -1.9 | 1.3 | 0.0 |
--------------------------------------------------------------------------------
| Cash flow from business operations | -10.1 | -18.7 | 15.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments | -6.2 | -5.7 | -30.7 |
--------------------------------------------------------------------------------
| Divestment of subsidiaries | 0.0 | 0.0 | 4.1 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | -8.0 | -0.2 | -0.2 |
--------------------------------------------------------------------------------
| Divestment of associated companies | 0.0 | 0.0 | 0.7 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 0.1 | 0.0 | 2.9 |
--------------------------------------------------------------------------------
| Loans granted | -1.1 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Repayment of loan receivables | 1.0 | 1.1 | 1.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | -14.2 | -4.8 | -21.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in non-current loans | -0.6 | -1.2 | -11.7 |
--------------------------------------------------------------------------------
| Change in current loans | -0.5 | 0.0 | -5.3 |
--------------------------------------------------------------------------------
| Repurchase of own shares | 0.0 | 0.0 | -6.5 |
--------------------------------------------------------------------------------
| Dividend paid to equity holders of the | 0.0 | 0.0 | -4.8 |
| parent company | | | |
--------------------------------------------------------------------------------
| Dividend paid to minority interests | 0.0 | 0.0 | -0.3 |
--------------------------------------------------------------------------------
| Cash flow from financial operations | -1.1 | -1.2 | -28.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjustment to translation difference | 0.1 | -0.1 | -0.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | -25.4 | -24.8 | -35.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds at the beginning of the period | 43.6 | 78.8 | 78.8 |
--------------------------------------------------------------------------------
| Impact of change in market value on liquid | -0.2 | -0.1 | 0.1 |
| funds | | | |
--------------------------------------------------------------------------------
| Liquid funds at the end of the period | 18.0 | 54.0 | 43.6 |
--------------------------------------------------------------------------------
NOTES TO THE INTERIM REPORT
This interim report has been prepared in accordance with the IAS 34 Interim
Financial Reporting. The same accounting principles and calculating methods has
been complied in this interim report as in 2007 annual financial statements. The
interim report is shown in EUR millions.
When preparing the interim report, management must make estimates and
assumptions that affect the reported assets and liabilities, income and
expenses. Actual figures may differ from these estimates.
SEGMENT INFORMATION
TURNOVER BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 2007 |
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Food | 49.0 | 49.8 | 197.1 |
--------------------------------------------------------------------------------
| Feed & Malt | 64.3 | 40.4 | 206.7 |
--------------------------------------------------------------------------------
| Ingredients | 12.7 | 12.5 | 44.9 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.1 | 0.4 |
--------------------------------------------------------------------------------
| Interdivisional turnover | -7.4 | -5.9 | -27.1 |
--------------------------------------------------------------------------------
| Total turnover | 118.9 | 96.8 | 421.9 |
--------------------------------------------------------------------------------
OPERATING RESULT BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 2007 |
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Food | 4.8 | -0.9 | -11.1 |
--------------------------------------------------------------------------------
| Feed & Malt | 1.7 | 0.5 | 14.2 |
--------------------------------------------------------------------------------
| Ingredients | 3.3 | 2.5 | 9.5 |
--------------------------------------------------------------------------------
| Other operations | -0.8 | -0.8 | -2.1 |
--------------------------------------------------------------------------------
| Eliminations | -0.6 | -0.1 | 0.1 |
--------------------------------------------------------------------------------
| Total turnover | 8.4 | 1.2 | 10.6 |
--------------------------------------------------------------------------------
NET ASSETS BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 31.3.2008 | 31.3.2007 | 31.3.2007 |
--------------------------------------------------------------------------------
| Food | 86.0 | 94.1 | 85.8 |
--------------------------------------------------------------------------------
| Feed & Malt | 104.0 | 76.0 | 86.0 |
--------------------------------------------------------------------------------
| Ingredients | 43.9 | 45.5 | 46.0 |
--------------------------------------------------------------------------------
| Other operations, discontinued | 32.5 | 70.4 | 60.9 |
| operations and unallocated items | | | |
--------------------------------------------------------------------------------
| Total net assets | 266.4 | 286.0 | 278.8 |
--------------------------------------------------------------------------------
INVESTMENTS BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 2007 |
| | 20 | 2007 | |
| | 08 | | |
--------------------------------------------------------------------------------
| Food | 13.8 | 3.3 | 7.2 |
--------------------------------------------------------------------------------
| Feed & Malt | 2.3 | 1.9 | 16.7 |
--------------------------------------------------------------------------------
| Ingredients | 0.7 | 2.4 | 7.5 |
--------------------------------------------------------------------------------
| Other operations | 0.5 | 0.4 | 1.6 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | -1.6 | -1.6 |
--------------------------------------------------------------------------------
| Total turnover | 17.3 | 6.4 | 31.4 |
--------------------------------------------------------------------------------
TURNOVER BY MARKET AREA (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 2007 |
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Finland | 75.6 | 60.0 | 263.9 |
--------------------------------------------------------------------------------
| Poland | 10.8 | 10.7 | 38.5 |
--------------------------------------------------------------------------------
| Russia | 9.0 | 5.7 | 39.5 |
--------------------------------------------------------------------------------
| Other Europe | 21.8 | 18.7 | 74.8 |
--------------------------------------------------------------------------------
| ROW | 1.7 | 1.7 | 5.2 |
--------------------------------------------------------------------------------
| Total | 118.9 | 96.8 | 421.9 |
--------------------------------------------------------------------------------
DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE
Discontinued operations
The diagnostics business, food potato businesses and Monäs Feed Oy Ab sold in
2007 are treated as discontinued operations in the Group's reporting.
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | 2007 |
--------------------------------------------------------------------------------
| Result for the discontinued operations | | | |
--------------------------------------------------------------------------------
| Income from ordinary operations | | 6.2 | 19.3 |
--------------------------------------------------------------------------------
| Expenses | | -7.3 | -23.7 |
--------------------------------------------------------------------------------
| Result before taxes | | -1.1 | -4.5 |
--------------------------------------------------------------------------------
| Taxes | | 0.1 | -0.1 |
--------------------------------------------------------------------------------
| Result after taxes | | -1.0 | -4.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result from discontinued operations | | | -2.9 |
--------------------------------------------------------------------------------
| Taxes | | | 0.1 |
--------------------------------------------------------------------------------
| Result after taxes | | 0.0 | -2.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the discontinued operations | | -1.0 | -7.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow for the discontinued operations | | | |
--------------------------------------------------------------------------------
| Cash flow from business operations | | -0.6 | 1.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | | -0.3 | 5.8 |
--------------------------------------------------------------------------------
| Cash flow from financial operations | | -0.1 | -0.1 |
--------------------------------------------------------------------------------
| Total cash flow | | -1.1 | 7.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 31.3.2007 | |
--------------------------------------------------------------------------------
| Assets held for sale: | | | |
--------------------------------------------------------------------------------
| Tangible assets | | 2.9 | |
--------------------------------------------------------------------------------
| Intangible assets | | 1.3 | |
--------------------------------------------------------------------------------
| Inventories | | 4.3 | |
--------------------------------------------------------------------------------
| Financial assets available for sale | | 0.9 | |
--------------------------------------------------------------------------------
| Accounts receivables and other receivables | | 4.4 | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | | 0.5 | |
--------------------------------------------------------------------------------
| Total assets | | 14.3 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities held for sale: | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | | 0.6 | |
--------------------------------------------------------------------------------
| Accounts payable and other liablities | | 2.1 | |
--------------------------------------------------------------------------------
| Total liabilities | | 2.6 | |
--------------------------------------------------------------------------------
TANGIBLE ASSETS
--------------------------------------------------------------------------------
| | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of | 430.2 | 450.5 | 450.5 |
| the period | | | |
--------------------------------------------------------------------------------
| Conversion differences | -1.2 | -0.4 | -1.4 |
--------------------------------------------------------------------------------
| Increase | 3.5 | 6.0 | 29.4 |
--------------------------------------------------------------------------------
| Decrease | -4.0 | -0,8 | -48.3 |
--------------------------------------------------------------------------------
| Reclassifications between items | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Operations held for sale | | -33.8 | |
--------------------------------------------------------------------------------
| Acquisition cost at the end of the | 428.5 | 421.5 | 430.2 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | 302.3 | 332.8 | 332.8 |
| write-downs at the beginning of the | | | |
| period | | | |
--------------------------------------------------------------------------------
| Conversion difference | -0.8 | -0.2 | -1.0 |
--------------------------------------------------------------------------------
| Decrease and transfers | -4.0 | -0.7 | -42.8 |
--------------------------------------------------------------------------------
| Depreciation for the period | 3.6 | 3.7 | 15.1 |
--------------------------------------------------------------------------------
| Write-downs | 0.0 | 0.0 | -1.9 |
--------------------------------------------------------------------------------
| Operations held for sale | | -31.0 | |
--------------------------------------------------------------------------------
| Accumulated depreciation and | 301.1 | 304.7 | 302.3 |
| write-downs at the end of the period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at the end of the period | 127.3 | 116.8 | 127.9 |
--------------------------------------------------------------------------------
RESERVES
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | 2007 |
--------------------------------------------------------------------------------
| At the beginning of the period | 1.9 | 5.1 | 5.1 |
--------------------------------------------------------------------------------
| Increase in provisions | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Provisions used | 0.0 | -2.5 | -3.3 |
--------------------------------------------------------------------------------
| At the end of the period | 1.9 | 2.6 | 1.9 |
--------------------------------------------------------------------------------
BUSINESS ACTIVITIES INVOLVING INSIDERS
--------------------------------------------------------------------------------
| | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Sales to associated companies and | 3.5 | 3.3 | 12.8 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Purchases from associated companies | 0.0 | 1.6 | 3.1 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
| Sales to key employees in management | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Purchases from key employees in | 0.4 | 0.2 | 0.6 |
| management | | | |
--------------------------------------------------------------------------------
| Short-term receivables from | 1.7 | 3.4 | 2.3 |
| associated companies and joint | | | |
| ventures | | | |
--------------------------------------------------------------------------------
| Liabilities to associated companies | 0.1 | 0.9 | 0.5 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES (EUR million)
--------------------------------------------------------------------------------
| | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Assets given for security | | | |
--------------------------------------------------------------------------------
| For the company | | | |
--------------------------------------------------------------------------------
| Mortgages on real estate | 0.0 | 17.1 | 0.7 |
--------------------------------------------------------------------------------
| Securities pledged | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Corporate mortgages | 0.0 | 34.4 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent off-balance sheet | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Non-cancelable other leases | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | 2.6 | 2.5 | 2.5 |
--------------------------------------------------------------------------------
| Contingent liabilities for the | 0.0 | 1.5 | 1.5 |
| company | | | |
--------------------------------------------------------------------------------
| Contingent liabilities for associated | | | |
| companies | | | |
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 3.0 | 0.0 |
--------------------------------------------------------------------------------
| Contingent liabilities for others | | | |
--------------------------------------------------------------------------------
| Guarantees | 0.1 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Other liabilities | 2.1 | 2.7 | 2.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitment to investment payments | 1.6 | 12.8 | 2.7 |
--------------------------------------------------------------------------------
DERIVATIVE CONTRACTS (EUR million)
--------------------------------------------------------------------------------
| | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Nominal values of derivative | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Raw material futures | 6.9 | 3.0 | 11.2 |
--------------------------------------------------------------------------------
| Currency forward contracts | 20.0 | 26.4 | 18.6 |
--------------------------------------------------------------------------------
QUARTERLY PERFORMANCE (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2008 | 2007 | 2007 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Turnover by segment | | | | | |
--------------------------------------------------------------------------------
| Food | 49.0 | 50.3 | 48.6 | 48.5 | 49.8 |
--------------------------------------------------------------------------------
| Feed & Malt | 64.3 | 54.0 | 59.3 | 53.0 | 40.4 |
--------------------------------------------------------------------------------
| Ingredients | 12.7 | 11.6 | 10.2 | 10.7 | 12.5 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Interdivisional turnover | -7.4 | -6.7 | -8.4 | -6.1 | -5.9 |
--------------------------------------------------------------------------------
| Total turnover | 118.9 | 109.2 | 109.8 | 106.1 | 96.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating result by | | | | | |
| segment | | | | | |
--------------------------------------------------------------------------------
| Food | 4.8 | -2.7 | -5.7 | -1.7 | -0.9 |
--------------------------------------------------------------------------------
| Feed & Malt | 1.7 | 1.2 | 9.6 | 2.9 | 0.5 |
--------------------------------------------------------------------------------
| Ingredients | 3.3 | 2.4 | 2.1 | 2.6 | 2.5 |
--------------------------------------------------------------------------------
| Other operations | -0.8 | -0.4 | -0.4 | -0.5 | -0.8 |
--------------------------------------------------------------------------------
| Eliminations | -0.6 | 0.2 | 0.0 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Total operating result | 8.4 | 0.6 | 5.6 | 3.3 | 1.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | -0.1 | -1.0 | -0.5 | -0.3 | 1.1 |
| expenses, net | | | | | |
--------------------------------------------------------------------------------
| Share of result of | 0.0 | 0.0 | -0.1 | -0.1 | -0.2 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Result before taxes | 8.4 | -0.4 | 5.0 | 2.8 | 2.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax | -1.1 | 2.0 | -2.1 | -0.8 | -0.4 |
--------------------------------------------------------------------------------
| Result for the period | 7.3 | 1.6 | 2.9 | 2.1 | 1.7 |
| from continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
ONE-OFF ITEMS (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2008 | 2007 | 2007 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Food | | | | | |
--------------------------------------------------------------------------------
| Impairment of goodwill | | | -1.3 | | |
--------------------------------------------------------------------------------
| Other impairments | | -1.6 | -2.0 | | |
--------------------------------------------------------------------------------
| Other one-off items | 4.2 | | -0.3 | | |
--------------------------------------------------------------------------------
| Feed & Malt | | | | | |
--------------------------------------------------------------------------------
| The reversal of | | 0.5 | 5.5 | | |
| impairment in the Feed & | | | | | |
| Malt business | | | | | |
--------------------------------------------------------------------------------
| Impact on operating | 4.2 | -1.2 | 1.9 | 0.0 | 0.0 |
| result | | | | | |
--------------------------------------------------------------------------------
| Financial income and | | | | | |
| expenses, net | | | | | |
--------------------------------------------------------------------------------
| Share of result of | | | | | |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Impact on result before | 4.2 | -1.2 | 1.9 | 0.0 | 0.0 |
| taxes | | | | | |
--------------------------------------------------------------------------------
KEY INDICATORS
--------------------------------------------------------------------------------
| | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Return on equity, ROE, % | 10.7 | 2.4 | 2.9 |
--------------------------------------------------------------------------------
| Return on investment, ROI, % | 12.3 | 3.1 | 3.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing liabilities at the | 6.6 | 22.2 | 8.7 |
| end of the period, EURm | | | |
--------------------------------------------------------------------------------
| Gross investments, EURm | 17.3 | 6.4 | 31.4 |
--------------------------------------------------------------------------------
| % of turnover | 14.5 | 6.6 | 7.5 |
--------------------------------------------------------------------------------
| Depreciation, EURm | 4.0 | 4.3 | 18.3 |
--------------------------------------------------------------------------------
| R & D expenses, EURm | 1.5 | 1.7 | 6.4 |
--------------------------------------------------------------------------------
| % of turnover | 1.3 | 1.8 | 1.5 |
--------------------------------------------------------------------------------
| Average personnel | 1 051 | 1 170 | 1 157 |
--------------------------------------------------------------------------------
| Equity ratio, % | 77.1 | 74.9 | 77.9 |
--------------------------------------------------------------------------------
| Net gearing, % | -4.3 | -11.1 | -12.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/share from continuing | 0.05 | 0.01 | 0.05 |
| operations, EUR | | | |
--------------------------------------------------------------------------------
| Cash flow from operations/share, EUR | -0.06 | -0.12 | 0.10 |
--------------------------------------------------------------------------------
| Equity/share, EUR | 1.70 | 1.70 | 1.70 |
--------------------------------------------------------------------------------
| Average number of shares during the | | | |
| period, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 122 463 | 125 655 | 124 553 |
--------------------------------------------------------------------------------
| Restricted shares | 34 304 | 34 522 | 34 462 |
--------------------------------------------------------------------------------
| Total | 156 767 | 160 177 | 159 015 |
--------------------------------------------------------------------------------
| Average numer of shares at the end of | | | |
| the period, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 122 516 | 125 655 | 122 444 |
--------------------------------------------------------------------------------
| Restricted shares | 34 296 | 34 522 | 34 316 |
--------------------------------------------------------------------------------
| Total | 156 813 | 160 177 | 156 760 |
--------------------------------------------------------------------------------
| Market capitalisation of shares at the | | | |
| end of the period, EURm*) | | | |
--------------------------------------------------------------------------------
| Free shares | 176.4 | 233.7 | 183.7 |
--------------------------------------------------------------------------------
| Restricted shares | 50.8 | 64.6 | 52.2 |
--------------------------------------------------------------------------------
| Total | 227.2 | 298.3 | 235.8 |
--------------------------------------------------------------------------------
*) Number of shares without own shares
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 + interest and other |
| (ROI), % | financial expenses*) |
| | ------------------------------------------- x |
| | 100 |
| | Balance sheet total - non-interest-bearing |
| | liabilities (average over the period) |
--------------------------------------------------------------------------------
| Equity ratio, % | Shareholders' equity |
| | ------------------------------------------- x |
| | 100 |
| | Balance sheet total - advances received |
--------------------------------------------------------------------------------
| Net interest-bearing | Interest-bearing liabilities - liquid assets and |
| liabilities | financial assets recorded at fair value in the |
| | income statement |
--------------------------------------------------------------------------------
| Net gearing, % | Net interest-bearing 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 the end of the period |
| | 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
