Raisio plc, Stock Exhange Release 17 August 2010, at 8 a.m.
INTERIM REPORT 1 JANUARY - 30 JUNE 2010
RAISIO SHOWS GROWTH
April-June 2010, continuing operations
- Raisio's net sales increased by 23% and EBIT by 34%.
- Raisio's net sales totalled EUR 120.0 million (Q2/2009: EUR 97.8 million).
- The EBIT was EUR 6.0 million (Q2/2009: EUR 4.5 million excluding one-off
items) accounting for 5.0% (4.6%) of net sales.
- Strong growth in the Brands Division: net sales +46%, EBIT+26%.
- Glisten became part of Raisio's reporting from Q2/2010.
Outlook remains unchanged
Raisio has moved to a growth phase that covers the years 2010 and 2011. We
expect a considerable increase in net sales in 2010. Our target is to maintain
the earlier level of profitability at the beginning of the growth phase even
though the costs of growth projects impact the Group's result and the market
situation in Business to Business Division will probably continue to be
challenging.
Raisio Group's key figures
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| | | Q2/2010 | Q2/2009 | H1/2010 | H1/2009 | 2009 |
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| Results from | | | | | | |
| continuing | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Net sales | M€ | 120.0 | 97.8 | 206.4 | 189.0 | 375.9 |
| | | | | | | |
--------------------------------------------------------------------------------
| Change in net sales | % | 22.6 | -12.3 | 9.2 | -14.4 | -18.8 |
| | | | | | | |
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| EBIT | M€ | 6.0 | 4.5* | 10.3 | 9.0* | 20.5* |
--------------------------------------------------------------------------------
| EBIT | % | 5.0 | 4.6* | 5.0 | 4.8* | 5.5* |
--------------------------------------------------------------------------------
| Depreciation and | M€ | 4.2 | 3.8* | 7.7 | 7.9* | 17.0* |
| impairment | | | | | | |
--------------------------------------------------------------------------------
| EBITDA | M€ | 10.2 | 8.2* | 18.0 | 16.9* | 37.5* |
--------------------------------------------------------------------------------
| Net financial | M€ | -2.9 | -0.2* | -3.0 | -0.5* | -0.5* |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | € | 0.01 | 0.02* | 0.03 | 0.04* | 0.09* |
| (EPS) | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | € | 0.01 | 0.02* | 0.03 | 0.04* | 0.09* |
| (EPS), diluted | | | | | | |
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| Balance sheet | | | | | | |
--------------------------------------------------------------------------------
| Equity ratio | % | - | - | 68.6 | 68.6 | 73.4 |
--------------------------------------------------------------------------------
| Gearing | % | - | - | -10.8 | -17.9 | -46.6 |
--------------------------------------------------------------------------------
| Net | M€ | - | - | -34.1 | -49.1 | -150.2 |
| interest-bearing | | | | | | |
| debt | | | | | | |
--------------------------------------------------------------------------------
| Equity per share | € | - | - | 2.02 | 1.76 | 2.06 |
--------------------------------------------------------------------------------
| Gross investments | M€ | 45.1** | 2.7 | 46.5** | 3.9 | 10.0 |
--------------------------------------------------------------------------------
| Share | | | | | | |
--------------------------------------------------------------------------------
| Market | M€ | - | - | 425.3 | 303.1 | 417.4 |
| capitalisation*** | | | | | | |
--------------------------------------------------------------------------------
| Enterprise value | M€ | - | - | 363.7 | 254.1 | 257.1 |
| (EV) | | | | | | |
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| EV/EBITDA | | - | - | 9.4 | 6.8 | 6.9 |
--------------------------------------------------------------------------------
* Excluding one-off items
** Including the acquisition of Glisten's shares
*** Excluding the company shares held by the Group
The figures for the comparison period are given in brackets in the text.
Chief Executive's Review
“Raisio's second quarter of the year went according to plan. The Group's
acquisition of British company Glistgen and organic growth in the review period
increased net sales and improved the EBIT as expected. The most considerable
boost to net sales resulted from Glisten becoming a part of Raisio Group and its
reporting. Moreover, Glisten's profitability improved compared to the time of
closing the deal. The sales growth of Raisio's other strong brands also
continued in the company's key market areas. The profitability of the feed
business improved and the market position in cattle feeds strengthened. In the
feed protein business and in malt, the market situation remains challenging.
Raisio was one of the first European food and agro companies that started
flexible pricing already three years ago. This is why the strong price
volatility in raw materials worldwide has not affected the Group's
profitability.
The acquisition of British Glisten was the first concrete step in the
implementation of Raisio's strategy. Glisten's merger with Raisio has gone as
planned and the cooperation has had a good start. First Glisten's products will
be launched on the Finnish market during this year. Raisio continues work to
implement the company's strategy and to establish a firm foothold in healthy and
ecological snacking in Europe. The company's objective is to grow through
acquisitions as well as by entering small and growing product categories and new
market areas.”
RESULT FROM THE GROUP'S CONTINUING OPERATIONS
Following the acquisition on 8 April 2010, Glisten subgroup became part of
Raisio Group and its profit is reported as part of the figures of Raisio's
Brands Division as of the second quarter of the year.
Net sales
Raisio Group's net sales from continuing operations in April-June totalled EUR
120.0 million (Q2/2009: EUR 97.8 million), which is 22.6% more than in the
comparison period. Net sales of the Brands Division were EUR 64.5 million (EUR
44.2 million), those of the Business to Business Division EUR 55.6 million (EUR
55.8 million) and those of other operations EUR 0.2 million (EUR 0.2 million).
The most considerable boost to the net sales resulted from the British company
Glisten becoming a part of Raisio Group's financial reporting.
January-June net sales were EUR 206.4 million (EUR 189.0 million). First
half-year net sales from outside Finland represented 40.1% (33.1%) of the total,
amounting to EUR 82.7 million (EUR 62.6 million).
Result
Raisio's EBIT from continuing operations in April-June was EUR 6.0 million (EUR
4.5 million and, including one-off items EUR 3.7 million) accounting for 5.0%
(4.6% and, including one-off items, 3.8%) of net sales. A one-off item of EUR
0.8 million, resulting from expenses of an unrealised acquisition, was included
in the EBIT of the second quarter of 2009. The EBIT of the Brands Division
amounted to EUR 5.8 million (EUR 4.6 million), that of the Business to Business
Division EUR 1.3 million (EUR 0.6 million) and that of other operations EUR -1.1
million (EUR -0.8 million and, including one-off items, EUR -1.6 million).
The Group's EBIT in January-June was EUR 10.3 million (EUR 9.0 million and,
including one-off items, EUR 8.2 million).
Depreciation, allocated to operations in the income statement, amounted to EUR
4.2 million in April-June (EUR 3.8 million) and to EUR 7.7 million in
January-June (EUR 7.9 million).
The second-quarter pre-tax result was EUR 3.1 million (EUR 4.3 million and,
including one-off items, EUR 3.4 million). The Group's pre-tax result for
January-June was EUR 7.4 million (EUR 8.5 million, and including one-off items,
EUR 7.7 million). The Group's net financial items for April-June totalled EUR
-2.9 million (EUR -0.2 million and, including one-off items, EUR -0.3 million)
mainly resulting from the unrealised losses of fund investments. The Group's net
financial items in January-June totalled EUR -3.0 million (EUR -0.5 million and,
including one-off items, EUR -0.6 million). The Group's post-tax result from
continuing operations in April-June totalled EUR 2.3 million (EUR 3.1 million
and, including one-off items, EUR 2.5 million). The post-tax result for
January-June was EUR 5.3 million (EUR 6.0 million and, including one-off items,
EUR 5.3 million). Earnings per share for April-June were EUR 0.01 (EUR 0.02 and,
including one-off items, EUR 0.02) and for January-June EUR 0.03 (EUR 0.04 and,
including one-off items, EUR 0.04).
Balance sheet and cash flow
Raisio's balance sheet total at the end of June amounted to EUR 462.5 million
(31 December 2009: EUR 444.2 million). Shareholders' equity totalled EUR 316.9
million at the end of June (31 December 2009: EUR 322.0 million), while equity
per share was EUR 2.02 (31 December 2009: EUR 2.06).
Raisio's interest-bearing debt was EUR 74.1 million at the end of June (31
December 2009: EUR 62.8 million). Net interest-bearing debt was EUR -34.1
million (31 December 2009: EUR -150.2 million which was affected by the
acquisition realised in the review period. The equity ratio totalled 68.6 per
cent (31 December 2009: 73.4%) and net gearing was -10.8% (31 December 2009:
-46.6%). Return on investment was 4.4% (31 December 2009: 6.1%).
Cash flow from business operations in April-June was EUR 1.4 million (Q2/2009:
EUR 1.0 million) and in January-June EUR -4.9 million (EUR 6.4 million).
Working capital amounted to EUR 81.9 million at the end of the review period
(Q2/2009: EUR 95.4 million). Increase of working capital is characteristic for
the second quarter of the year compared to the first one. Additionally, the
increase in working capital includes Glisten's working capital of approximately
EUR 6.5 million.
Raisio's interest-bearing financial assets amounted to some EUR 108 million at
the end of the review period. Including securities investments, the Group's
financial assets totalled approximately EUR 135 million at the end of the review
period.
Investments
Gross investments in the second quarter, excluding investments in securities,
were EUR 45.1 million (EUR 2.7 million) accounting for 37.6% (2.8%) of net
sales. The most significant investment was the acquisition of Glisten's shares.
The Group's initial investments have settled at the current, lower level since
the company aims to use the existing capacity efficiently, and this way to raise
utilisation rates. In the review period, Raisio also invested in more
environmentally friendly packages by renewing packaging lines. The gross
investment of the Brands Division was EUR 43.8 million (EUR 0.7 million), those
of the Business to Business Division EUR 1.0 million (EUR 1.7 million) and those
of other operations EUR 0.2 million (EUR 0.3 million).
The Group's investments for January-June amounted to EUR 46.5 million (EUR 3.9
million).
Research and development
Consumer and customer orientation forms the basis for Raisio's operations. By
combining the company's strong knowhow and ecological thinking with the latest
research results, we can launch new, innovative products and solutions that meet
the needs of our consumers and customers. The emphasis of Raisio's food business
is on healthy and ecological snack products as well as on the new product
applications and research evidence of the plant stanol ester used in Benecol
products. In the feeds, product development aims to ensure the well-being of
animals, to reduce the environmental impacts and to improve the effectiveness
and profitability of livestock production.
The Raisio Group's investment in research and development in April-June totalled
EUR 1.7 million (EUR 1.6 million), or 1.4% (1.7%) of net sales. The research and
development investment of the Brands Division was EUR 1.3 million (EUR 1.3
million) and those of the Business to Business Division EUR 0.4 million (EUR 0.3
million).
The Group's investment in research and development in January-June totalled EUR
2.9 million (EUR 3.0 million), or 1.4% of net sales (1.6%).
SEGMENT INFORMATION
BRANDS DIVISION
Net sales of the Brands Division grew in the second quarter by 46% from the
comparison period. The main driver of net sales growth was the merger of Glisten
with Raisio's reporting from the second quarter of the year, but Raisio's other
main brands, such as Elovena, Sunnuntai, Carlshamn and Nordic, also continued to
perform strongly in the company's key market areas. In April-June, net sales of
the Brands Division totalled EUR 64.5 million (EUR 44.2 million) and in
January-June EUR 107.9 million (EUR 88.6 million). The Division accounted for
some 52% of the Group's net sales.
The second quarter EBIT of the Brands Division was EUR 5.8 million (EUR 4.6
million) accounting for 9.0% (10.3%) of net sales. In January-June, the EBIT was
EUR 10.6 million (EUR 10.4 million) accounting for 9.9% (11.7%) of net sales.
Local brands
Net sales generated by local brands grew considerably in April-June amounting to
EUR 52.3 million (EUR 32.8 million). The net sales for January-June were EUR
82.7 million (EUR 66.6 million).
Glisten's profitability improved year-over-year even though there are still
signs of cautiousness regarding the economic recovery in Great-Britain. Glisten
reorganised its production by closing it's factory in Liphook, Hampshire and
transferring production to it's Newport facility.
Strong sales growth in Elovena products continued. In Finland, the growth
focused especially on the Elovena snack products. This year, Elovena celebrates
its 85-year anniversary and the marketing efforts related to the event have had
a positive impact on the demand for the products.
The sales volumes of non-dairy products sold under the Carlshamn brand in Sweden
further increased. The sales of non-dairy soyghurts rose considerably in Finland
and Sweden. In Sweden, Carlshamn became the second in soyghurts market. The
successful launches of new products have also affected the strengthening of
market share in Sweden.
International brands - Benecol
Net sales of Benecol remained at the new, higher level totalling EUR 12.3
million (EUR 11.9 million) in April-June. January-June net sales were EUR 25.2
million (EUR 23.5 million). The strong volume growth of Benecol products in many
European countries during the global economic downturn has now levelled off
however, consumers continue their regular use of cholesterol-lowering Benecol
products as a normal part of their diet. Volatility in sales volume is
characteristic when launching products on new markets.
Raisio's Romanian partner Doprogea Grup launched a cholesterol-lowering Dobrogea
Benecol bread on the Romanian market at the beginning of June. The Benecol bread
is the first cholesterol-lowering foodstuff in Romania.
The research published in the American Journal of Clinical Nutrition (July 2010)
confirms that raising of the daily dose of plant stanol intake from the now
recommended two grams to up to nine grams increases its cholesterol-lowering
impact without any harmful effects. The study strengthens the earlier research
evidence: the lowering of cholesterol becomes more effective when the plant
stanol intake is increased.
Key figures for the Brands Division
--------------------------------------------------------------------------------
| | | Q2/2010 | Q2/2009 | H1/2010 | H1/2009 | 2009 |
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| Net sales | M€ | 64.5 | 44.2 | 107.9 | 88.6 | 177.6 |
--------------------------------------------------------------------------------
| International brands | M€ | 12.3 | 11.9 | 25.2 | 23.5 | 47.0 |
| - Benecol | | | | | | |
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| Local brands | M€ | 52.3 | 32.8 | 82.7 | 66.6 | 133.1 |
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| EBIT | M€ | 5.8 | 4.6 | 10.6 | 10.4 | 20.5 |
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| EBIT | % | 9.0 | 10.3 | 9.9 | 11.7 | 11.5 |
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| Investments | M€ | 43.8 | 0.7 | 44.4 | 1.1 | 3.3 |
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| Net assets | M€ | - | - | 144.3 | 81.7 | 69.6 |
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Outlook
In the early autumn, the Elovena product family will expand into new product
categories with interesting and innovative products. The Elovena's anniversary
year continues and will be especially visible among the schoolchildren both at
schools and on the web through interesting activities.
Glisten will strongly invest in the re-launch of Dormen's brand in Britain.
Dormen's has become the number one brand in premium nuts in Great-Britain.
BUSINESS TO BUSINESS DIVISION
The net sales of the Business to Business division totalled EUR 55.6 million in
April-June (EUR 55.8 million). The net sales of the feeds remained unchanged
from the comparison period while that of feed protein business more than doubled
from the comparison period. The production was then adjusted to the difficult
market situation. The net sales of malt were nearly halved from the comparison
period due to the global drop in malt prices, reduction in Russian exports and
dip in beer consumption. January-June net sales of the Business to Business
Division were EUR 99.0 million (EUR 105.1 million). This Division accounted for
some 48 per cent of the Group's net sales.
The EBIT of Business to Business Division clearly strengthened in the second
quarter of the year. It was EUR 1.3 million in April-June (EUR 0.6 million)
accounting for 2.3% (1.0%) of net sales. In January-June, the EBIT of the
Division was EUR 1.3 million (EUR 0.6 million).
The overall volume of sales in the Business to Business Division increased by
some 7%. Especially the sales of rapeseed oil, a by-product from processing
rapeseed into meal used as a protein source in feeds, picked up. Sales were
aided both by the global economic recovery and rise in crude oil price which led
to the increased use of rapeseed oil as a traffic fuel.
The overall market of feeds in Finland decreased in the beginning of the year as
a result of the reduction in pork and poultry production but Raisio's sales
volumes in cattle and pig feeds increased. The price development of milk
products has turned up and the amount of milk produced in Finland is
increasing.
The market price of malts decreased considerably year-over-year due to
diminishing overall market and reduction in beer consumption. The EU has
overproduction in the malt markets resulting from decreased beer consumption and
use of raw materials substituting malt as an extract source in breweries.
Key figures for the Business to Business Division
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| | | Q2/2010 | Q2/2009 | H1/2010 | H1/2009 | 2009 |
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| Net sales | M€ | 55.6 | 55.8 | 99.0 | 105.1 | 205.6 |
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| Feeds | M€ | 48.4 | 43.0 | 86.4 | 87.3 | 176.1 |
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| Malt | M€ | 4.3 | 11.0 | 7.8 | 15.4 | 26.3 |
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| Other | M€ | 3.1 | 2.0 | 4.9 | 2.7 | 3.6 |
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| EBIT | M€ | 1.3 | 0.6 | 1.3 | 0.6 | 3.0 |
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| EBIT | % | 2.3 | 1.0 | 1.4 | 0.6 | 1.4 |
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| Investments | M€ | 1.0 | 1.7 | 1.6 | 2.4 | 5.4 |
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| Net assets | M€ | - | - | 99.7 | 97.6 | 79.2 |
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Outlook
The general economic development has an impact on the operations of Raisio's
Business to Business Division. The volatility control of raw material prices in
one of the most significant factors in maintaining the profitability of the
Division. In feeds, the competition in domestic market remains challenging. The
malting barley crop impacts considerably the sales volumes of malts in the short
run.
High water temperatures have caused problems in fish farming in Finland and in
Northwest Russia. Long autumn is expected to improve the situation and to
increase the volumes in fish feeds.
GRAIN MARKET
At the moment, it seems that global grain crop is going to be lower than in two
previous, exceptionally good years. It is also expected in Finland to reach a
lower total crop yield than in the previous years. Record crops have been
harvested in Finland over the past three years and grain production has exceeded
domestic demand.
The grain balance sheet forecast in Finland for the crop year 2010/11 is very
balanced. The production corresponds to domestic consumption. As in the previous
years, Finland will have to import rye despite the increase of rye production.
Globally, grain reserves are at a good level. When the price of wheat rose
considerably in the autumn 2007, stock levels world-wide were adequate for two
months only. At the moment, stock levels are some 50 per cent higher.
The campaign carried out by Raisio together with its contract farmers to
increase the cultivation area of rapeseed has succeeded extremely well, and
according to the crop forecast of this year, domestic rapeseed crop is
increasing by nearly 60 per cent from 2009 to 2010. The forecasts predict a
record total crop of rapeseed in Finland. Nevertheless, domestic rapeseed meal
would only correspond to one fourth of protein supplement needs in livestock
production.
On the threshold of a new crop season, Raisio's grain stocks are above average.
Volatility of grain raw material prices will continue and controlling of this
volatility will be essential for Raisio's profitability also in the future.
However, the flexible pricing system Raisio took into use three years ago has
been proven effective.
PERSONNEL
Raisio's continuing operations employed 1,318 people at the end of June (31
December 2009: 593 people). At the end of the review period, the Brands Division
had 976, the Business to Business Division 276 and the service functions 66
employees. 57 per cent (31 December 2009: 14%) of the staff worked outside
Finland. These figures include Glisten's personnel and also summer employees.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares that were traded on NASDAQ OMX Helsinki
Ltd in January-June totalled 23.0 million (16.5 million). The value of trading
was EUR 63.3 million (EUR 28.1 million) and the average price EUR 2.75 (EUR
1.71). The closing price on 30 June 2010 was EUR 2.72.
A total of 0.7 million restricted shares (0.5 million) were traded in
January-June. The value of trading was EUR 1.8 million (EUR 0.95 million) and
the average price EUR 2.74 (EUR 1.74). The closing price on 30 June 2010 was EUR
2.68.
On 30 June 2010, the company had a total of 36,942 registered shareholders
(37,384 shareholders on 31 December 2009). Foreign ownership of the entire share
capital was 12.7 per cent (13.3% on 31 December 2009).
Raisio plc's market capitalisation at the end of June amounted to EUR 447.8
million (31 December 2009: EUR 441.4 million) and, excluding the company shares
held by the Group, to EUR 425.3 million (31 December 2009: EUR 417.4 million).
At the end of the review period, Raisio plc held 8,070,600 free shares and
201,295 restricted shares. The number of free shares accounts for 6.18 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 5.01 per cent of the company's entire share capital and 1.48 per
cent of overall votes.
In the review period, 11,453 free shares were assigned to the Chairman of the
Board and Board members as part of the compensation for managing their duties,
in line with the decisions taken by the Annual General Meetings held in 2009 and
2010.
Furthermore, a total of 553,056 free shares were assigned as a reward for the
second earnings period of the share-based incentive scheme (financial year 2009)
to 51 persons covered by the scheme as well as a total of 168,000 free shares as
recognition of and reward for the successfully completed divestment of the
margarine business in 2009, also to 51 persons.
In the review period, the company has not acquired its own shares.
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.
MANAGEMENT INCENTIVE SCHEME 2010 - 2013
In June 2010, the Board of Directors of Raisio plc decided on a new incentive
scheme for the members of Raisio Group's Management Team. The purpose of the
scheme is to commit the members of the Management Team to the company by
encouraging them to acquire and hold company shares, and this way to increase
the company's shareholder value in the long run, as well as to support the
achievement of the company's strategic objectives.
For share ownership purposes, Raisio plc's Managing Director and seven members
of the Group's Management Team acquired a company named Raisio Management Oy. At
the beginning of July 2010, Raisio Management Oy acquired for its part a total
of 362,740 Raisio plc's free shares from the market or from the members of the
Management Team at market price, as well as a total of 4,120,000 free shares
from Raisio plc in a directed share issue. The acquisitions were financed by
the capital investments in Raisio Management Oy by the members of the Management
Team, in the total amount of EUR 1,161,000, as well as by a loan of EUR
10,449,000 granted by Raisio plc. The members of the Management Team financed
their investments in Raisio Management Oy mainly by transferring Raisio plc's
free shares they held to Raisio Management Oy. After the implementation of the
scheme, the members of the Raisio's Management Team now hold, through Raisio
Management Oy, a total of 4,482,740 free shares, which covers some 2.7% of all
of the Raisio plc's shares and some 0.5% of all of the votes of the shares.
The scheme will be valid until the turn of the year 2013 - 2014, after which it
is intended to be dissolved in a manner to be decided later. The scheme may be
dissolved, e.g., by merging Raisio Management Oy with Raisio plc, or by selling
the free shares held by Raisio Management Oy to Raisio plc, or in another way.
The scheme will be continued by one year at a time if the Raisio plc's share
price in October - November 2013, 2014, 2015 or 2016 is below the average price
that Raisio Management Oy paid for the shares it holds.
The transfer of Raisio plc's free shares held by Raisio Management Oy has been
restricted for the period of the validity of the scheme. The ownership by the
members of the Management Team in Raisio Management Oy will mainly be valid
until the dissolution of the scheme. In case the employment or service of a
member of the Management Team ends before the dissolution of the scheme, due to
reasons related to this member, his or her share may be redeemed before the
dissolution of the scheme without him or her gaining any financial benefit from
the scheme.
As part of the scheme, Raisio plc granted to Raisio Management Oy an
interest-bearing loan for a total amount of EUR 10,449,000 to finance the
acquisition of the company's free shares. The loan will be repaid by 31 March
2014, at the latest. If the scheme is continued one year at a time in 2013,
2014, 2015 or 2016, the loan period will be extended respectively. Raisio
Management Oy is entitled to repay the loan prematurely at any time. Raisio
Management Oy is obligated to repay the loan prematurely by selling the Raisio
plc's free shares it holds in case the market price of the free share exceeds,
otherwise than temporarily, a certain level defined in the scheme.
SHARE-BASED INCENTIVE SCHEME 2010
Raisio has a three-year, share-based incentive scheme the purpose of which is to
combine the objectives of owners and key personnel in order to increase the
capitalisation value of the company and to commit the key personnel to the
company by offering them a competitive reward system based on shareholding.
The scheme allows, during three years, to distribute a maximum total of
1,600,000 Raisio plc's free shares already held by the company due to the share
repurchases carried out. The reward is paid as a combination of the company's
shares and cash. The cash payment is 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 earnings period, which is the financial year
2010. The earnings criterion is operating result in proportion to net sales, in
addition to which a prerequisite for receipt of the reward is that a certain
amount of net sales during the financial 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 potential
rewards 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 service
contract of the person in question ends prior to the expiration of the disposal
restriction. At the beginning of the third earnings period there were 61 persons
within the scheme.
DECISIONS MADE AT THE ANNUAL GENERAL MEETING
Raisio plc's Annual General Meeting held on 25 March 2010 approved the financial
statements for the financial year 1 January - 31 December 2009 and discharged
the members of the Board of Directors and the Supervisory Board, as well as the
Chief Executive Officer, from liability. The Annual General Meeting decided to
distribute a dividend of EUR 0.09 per share. The dividend was paid to the
shareholders on 8 April 2010.
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 in the 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 from the closed AGM and ending at the Annual General Meeting of 2013.
Two of the elected members, Salonen and Vuorela, are new in the Supervisory
Board. In May 2010, the Supervisory Board elected Michael Hornborg as its
Chairman and Holger Falck as its Vice Chairman.
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.
CHANGES IN GROUP STRUCTURE
Glisten Acquisition and Shareholder Agreement
The acquisition of snack foods producer Glisten plc came into force on 8 April
2010 after the completion of related legal conditions. Glisten plc was delisted
from the AIM of London Stock Exchange on 9 April 2010. The subgroup formed by
Glisten Ltd as a parent company was made part of Raisio Group on 8 April 2010.
Raisio paid EUR 22.2 million for Glisten's share capital and financed the
repayment of Glisten's credits at the time of acquisition, granted by financial
institutions, in a total amount of EUR 36.5 million.
Glisten Ltd is owned by Raisio plc's subsidiary Raisio UK Ltd, of which Raisio
plc owns 85 per cent and Glisten Ltd's CEO and Financial Director (senior
management) together own 15 per cent. With the shareholder agreement signed in
February 2010, it has been agreed on the terms that entitle, on the one hand,
Raisio to buy back the shares held by Glisten's senior management in Raisio UK
Ltd, and on the other hand, Glisten's senior management to withdraw from its
ownership in Raisio UK Ltd for the benefit of Raisio plc after June 2012.
It has been discussed with Glisten's senior management that they will continue
working for Raisio Group also after the summer 2012, not only in the Glisten's
management but also to implement Raisio's growth strategy in the Brands
Division's operations in Western Europe. In this context, it has been agreed to
amend the shareholder agreement so that Glisten's senior management will
increase its ownership in Raisio UK Ltd up to 21.3 per cent.
Raisio Finance NV
In June, Raisio plc and Ravintoraisio Oy founded a company in Belgium named
Raisio Finance NV, which operates in financing of group companies. The new
subsidiary has started its operations. Its share capital is owned by the
founding companies.
EVENTS AFTER THE REVIEW PERIOD
Directed share issue
Based on the authorisation given by the Annual General Meeting held on 25 March
2010, the Board of Directors of Raisio plc decided, on 23 June 2010, on the
share issue against payment directed to Raisio Management Oy. In the share
issue, a total of 4,120,000 free shares held by the company were assigned,
deviating from the pre-emptive subscription right of shareholders, to be
subscribed by Raisio Management Oy. The company had a weighty financial reason
to deviate from the pre-emptive subscription right of shareholders since the
shares assigned in the ssue were used to implement the incentive and commitment
system for the members of the Raisio Management Team. As the assigned free
shares in the share issue were company shares held by Raisio plc, the number of
the company's shares remained unchanged.
The subscription price (assignment price) of a free share was the trade volume
weighted average quotation of the company's free share on the NASDAQ OMX
Helsinki Ltd during 5 May - 22 June 2010, i.e. EUR 2.58. The share subscription
period was 1 - 2 July 2010 and the subscribed shares had to be paid on 16 July
2010, at the latest. The subscription price has been paid to the company and
registered to the reserve for invested unrestricted equity of the company.
RISKS AND SOURCES OF UNCERTAINTY IN THE NEAR FUTURE
The volatility of raw material prices is estimated to continue strong.
Controlling of volatility is essential for Raisio's profitability. The main
risks in the near future are related to any possible changes caused by general
economic development in the Group's key market areas.
The risks and outlook of the businesses in the near future are further examined
in the Segment information of this Interim Report.
OUTLOOK REMAINS UNCHANGED
Raisio has moved to a growth phase that covers the years 2010 and 2011. We
expect a considerable increase in net sales in 2010. Our target is to maintain
the earlier level of profitability at the beginning of the growth phase even
though the costs of growth projects impact the Group's result and the market
situation in Business to Business Division will probably continue to be
challenging.
Raisio, 17 August 2010
RAISIO PLC
Board of Directors
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO, tel. +358 50 5566 512
Heidi Hirvonen, Communications Manager, tel. +358 50 567 3060
A press and analyst event in Finnish will be arranged on 17 August 2010 at 10:30
a.m. 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 17 August 2010 at 4.00 p.m. Finnish
time. Participants are requested to call the number +358 (0)9 8248 8000, PIN
code 274994.
The interim report has not been audited.
Financial releases in 2010:
Raisio plc's Interim Report for January-September on 2 November 2010.
CONDENSED FINANCIAL STATEMENTS AND NOTES
INCOME STATEMENT (M€)
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS: | | | | | |
--------------------------------------------------------------------------------
| Net sales | 120.0 | 97.8 | 206.4 | 189.0 | 375.9 |
--------------------------------------------------------------------------------
| Expenses corresponding to | -99.3 | -81.3 | -170.1 | -156.4 | -313.3 |
| products sold | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 20.7 | 16.5 | 36.3 | 32.6 | 62.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income and | -14.6 | -12.8 | -25.9 | -24.4 | -43.2 |
| expenses, net | | | | | |
--------------------------------------------------------------------------------
| EBIT | 6.0 | 3.7 | 10.3 | 8.2 | 19.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | -1.9 | 0.7 | -1.0 | 1.7 | 3.1 |
--------------------------------------------------------------------------------
| Financial expenses | -1.0 | -1.0 | -1.9 | -2.3 | -3.7 |
--------------------------------------------------------------------------------
| Share of result of | 0.0 | 0.0 | 0.1 | 0.0 | 0.1 |
| associated companies and | | | | | |
| joint ventures | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before taxes | 3.1 | 3.4 | 7.4 | 7.7 | 18.9 |
--------------------------------------------------------------------------------
| Income tax | -0.8 | -1.0 | -2.1 | -2.3 | -5.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the period from | 2.3 | 2.5 | 5.3 | 5.3 | 13.4 |
| continuing operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS: | -0.2 | 0.7 | -0.1 | 0.9 | 39.7 |
| Result for the period from | | | | | |
| discontinued operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | 2.1 | 3.1 | 5.2 | 6.2 | 53.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 2.1 | 3.1 | 5.2 | 6.2 | 53.1 |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 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 | 0.01 | 0.02 | 0.03 | 0.03 | 0.09 |
| share | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0.01 | 0.02 | 0.03 | 0.03 | 0.09 |
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS: | | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per | 0.00 | 0.00 | 0.00 | 0.01 | 0.26 |
| share | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0.00 | 0.00 | 0.00 | 0.01 | 0.25 |
--------------------------------------------------------------------------------
COMPREHENSIVE INCOME STATEMENT (M€)
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Result for the period | 2.1 | 3.1 | 5.2 | 6.2 | 53.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income | | | | | |
| items | | | | | |
--------------------------------------------------------------------------------
| Translation differences | 0.0 | 0.0 | 0.0 | 0.0 | -0.3 |
| recognised in profit and | | | | | |
| loss on disposal of foreign | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Protection of net | -0.6 | | -0.6 | | |
| investments | | | | | |
--------------------------------------------------------------------------------
| Gains and losses arising | 3.2 | -0.3 | 3.8 | -0.7 | -0.3 |
| from translating the | | | | | |
| financial statements of | | | | | |
| foreign operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive income for | 4.6 | 2.8 | 8.3 | 5.5 | 52.6 |
| the period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Components of comprehensive | | | | | |
| income: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 4.6 | 2.9 | 8.3 | 5.5 | 52.6 |
| parent company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
BALANCE SHEET (M€)
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 11.7 | 8.4 | 7.5 |
--------------------------------------------------------------------------------
| Goodwill | 54.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 109.0 | 99.4 | 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 | 0.5 | 0.3 | 0.4 |
--------------------------------------------------------------------------------
| Deferred tax assets | 7.1 | 7.2 | 6.5 |
--------------------------------------------------------------------------------
| Total non-current assets | 183.6 | 116.6 | 111.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 74.9 | 71.6 | 55.0 |
--------------------------------------------------------------------------------
| Accounts receivables and other | 67.8 | 58.7 | 54.9 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets at fair value | 110.6 | 84.2 | 215.3 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | 25.6 | 34.0 | 8.0 |
--------------------------------------------------------------------------------
| Total current assets | 278.9 | 248.5 | 333.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets available for sale | | 37.6 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 462.5 | 402.7 | 444.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Share capital | 27.8 | 27.8 | 27.8 |
--------------------------------------------------------------------------------
| Own shares | -16.8 | -19.3 | -18.5 |
--------------------------------------------------------------------------------
| Other equity attributable to equity | 305.9 | 265.7 | 312.8 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | 316.9 | 274.2 | 322.0 |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total equity | 316.9 | 274.2 | 322.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 7.2 | 7.3 | 7.6 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Reserves | 1.9 | | 1.4 |
--------------------------------------------------------------------------------
| Non-current financial liabilities | 59.9 | 55.5 | 48.6 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 69.3 | 63.0 | 57.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 56.4 | 43.8 | 48.4 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Reserves | 1.6 | 0.9 | 1.6 |
--------------------------------------------------------------------------------
| Financial liabilities at fair value | 4.0 | 0.3 | 0.1 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Current financial liabilities | 14.2 | 14.3 | 14.2 |
--------------------------------------------------------------------------------
| Total current liabilities | 76.3 | 59.4 | 64.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts related to non-current assets | | 6.1 | |
| held for sale | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 145.6 | 128.5 | 122.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 462.5 | 402.7 | 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 | - | - | - | - | -0.7 | 6.2 | 5.5 | 0.0 | 5.5 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -10.9 | -10.9 | - | -10.9 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | 0.0 | - | - | 0.0 | - | 0.0 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 0.0 | - | 0.1 | 0.1 | - | 0.1 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -19. | -3.9 | 178.1 | 274.2 | 0.0 | 274.2 |
| 30.6.2009 | | | 6 | 3 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -18. | -3.7 | 225.0 | 322.0 | 0.0 | 322.0 |
| 31.12.2009 | | | 6 | 5 | | | | | |
--------------------------------------------------------------------------------
| Comprehensi | - | - | - | - | 3.1 | 5.2 | 8.3 | - | 8.3 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -14.1 | -14.1 | - | -14.1 |
--------------------------------------------------------------------------------
| Repurchase | | | | | | | 0.0 | | 0.0 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 1.7 | - | -1.1 | 0.6 | - | 0.6 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -16. | -0.6 | 215.0 | 316.9 | 0.0 | 316.9 |
| 30.6.2010 | | | 6 | 8 | | | | | |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT (M€)
--------------------------------------------------------------------------------
| | 1-6/2010 | 1-6/2009 | 2009 |
--------------------------------------------------------------------------------
| Result before taxes, continuing | 7.4 | 7.7 | 18.9 |
| operations | | | |
--------------------------------------------------------------------------------
| Result before taxes, discontinued | -0.3 | 1.1 | 39.3 |
| operations | | | |
--------------------------------------------------------------------------------
| Adjustments | 10.3 | 9.3 | -24.1 |
--------------------------------------------------------------------------------
| Cash flow before change in working | 17.4 | 18.0 | 34.1 |
| capital | | | |
--------------------------------------------------------------------------------
| Change in current receivables | -1.6 | -1.8 | 4.2 |
--------------------------------------------------------------------------------
| Change in inventories | -10.6 | -5.6 | 16.3 |
--------------------------------------------------------------------------------
| Change in current | -6.9 | -4.7 | -2.6 |
| non-interest-bearing liabilities | | | |
--------------------------------------------------------------------------------
| Total change in working capital | -19.0 | -12.1 | 17.9 |
--------------------------------------------------------------------------------
| Financial items and taxes | -3.3 | 0.4 | -0.5 |
--------------------------------------------------------------------------------
| Cash flow from business operations | -4.9 | 6.4 | 51.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments in fixed assets | -5.2 | -4.8 | -10.0 |
--------------------------------------------------------------------------------
| Divestment of subsidiaries | 3.5 | 0.0 | 47.1 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | -22.2 | 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 | -0.4 | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Repayment of loan receivables | 0.3 | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | -44.0 | -4.5 | 50.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in non-current loans | -35.6 | 51.2 | 43.9 |
--------------------------------------------------------------------------------
| Change in current loans | -6.9 | -0.7 | -0.7 |
--------------------------------------------------------------------------------
| Repurchase of own shares | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Dividend paid to equity holders of | -14.0 | -10.8 | -10.8 |
| the parent company | | | |
--------------------------------------------------------------------------------
| Cash flow from financial operations | -56.5 | 39.6 | 32.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | -105.4 | 41.5 | 134.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds at the beginning of the | 213.0 | 77.9 | 77.9 |
| period | | | |
--------------------------------------------------------------------------------
| Effects of changes in foreign | 0.8 | 0.2 | 0.1 |
| exchange rates | | | |
--------------------------------------------------------------------------------
| Impact of change in market value on | -0.2 | 0.0 | 0.1 |
| liquid funds | | | |
--------------------------------------------------------------------------------
| Liquid funds at period-end | 108.2 | 119.7 | 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 international brands - 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 as well as, from the beginning of the
second quarter, those of the Western European operations of the food business,
which include the transactions of Glisten companies. The Business to Business
segment includes the feed, malt and feed protein businesses.
NET SALES BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Brands | 64.5 | 44.2 | 107.9 | 88.6 | 177.6 |
--------------------------------------------------------------------------------
| Business to Business | 55.6 | 55.8 | 99.0 | 105.1 | 205.6 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.2 | 0.4 | 0.5 | 0.9 |
--------------------------------------------------------------------------------
| Interdivisional net sales | -0.4 | -2.4 | -0.9 | -5.2 | -8.1 |
--------------------------------------------------------------------------------
| Total net sales | 120.0 | 97.8 | 206.4 | 189.0 | 375.9 |
--------------------------------------------------------------------------------
EBIT BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Brands | 5.8 | 4.6 | 10.6 | 10.4 | 20.5 |
--------------------------------------------------------------------------------
| Business to Business | 1.3 | 0.6 | 1.3 | 0.6 | 3.0 |
--------------------------------------------------------------------------------
| Other operations | -1.1 | -1.6 | -1.7 | -2.7 | -4.3 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.2 | 0.0 | -0.1 | 0.3 |
--------------------------------------------------------------------------------
| Total EBIT | 6.0 | 3.7 | 10.3 | 8.2 | 19.5 |
--------------------------------------------------------------------------------
NET ASSETS BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Brands | 144.3 | 81.7 | 69.6 |
--------------------------------------------------------------------------------
| Business to Business | 99.7 | 97.6 | 79.2 |
--------------------------------------------------------------------------------
| Other operations, assets held for | 72.9 | 94.9 | 173.2 |
| sale and unallocated items | | | |
--------------------------------------------------------------------------------
| Total net assets | 316.9 | 274.2 | 322.0 |
--------------------------------------------------------------------------------
INVESTMENTS BY SEGMENT (M€)
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Brands | 43.8 | 0.7 | 44.4 | 1.1 | 3.3 |
--------------------------------------------------------------------------------
| Business to Business | 1.0 | 1.7 | 1.6 | 2.4 | 5.4 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.3 | 0.5 | 0.5 | 1.3 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total investments | 45.1 | 2.7 | 46.5 | 3.9 | 10.0 |
--------------------------------------------------------------------------------
NET SALES BY MARKET AREA (M€)
--------------------------------------------------------------------------------
| | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Finland | 64.9 | 62.1 | 123.7 | 126.4 | 251.5 |
--------------------------------------------------------------------------------
| Rest of Europe | 52.7 | 34.2 | 78.3 | 59.7 | 117.4 |
--------------------------------------------------------------------------------
| ROW | 2.4 | 1.5 | 4.3 | 2.9 | 7.1 |
--------------------------------------------------------------------------------
| Total | 120.0 | 97.8 | 206.4 | 189.0 | 375.9 |
--------------------------------------------------------------------------------
ACQUIRED BUSINESS OPERATIONS
Raisio plc made a public purchase offer for the entire share capital of British
Glisten plc. The shareholders of Glisten plc approved Raisio's purchase offer on
12 March 2010, and the deal became legally valid on 8 April 2010.
Glisten produces healthy, nutritious, high-quality snack foods. Fruitus and
Dormen's are the company's well-known brands in their own product categories.
The company operates through eight premises across Great-Britain and employs
approximately 650 people. The group consists of 23 separate companies. Glisten's
result is reported as part of the figures of Raisio's Brands Division from the
beginning of the second quarter.
Raisio UK Ltd, founded for the purpose of the acquisition, acquired the share
capital of Glisten plc. After the closing of the deal, Raisio plc owns 85% and
the senior management of Glisten 15% of Raisio UK Ltd's share capital. Later it
has been agreed to amend the shareholder agreement so that Glisten's senior
management will increase its ownership in Raisio UK Ltd up to 21.3 per cent.
Since Raisio is obligated to redeem the part of the management's shares, the
company has been consolidated to the Group according to the shareholding of 100%
and the redemption price has been treated as a liability.
The acquisition price was thus comprised of the share paid in cash and the
additional purchase price later paid to Glisten management for the ownership of
Raisio UK Ltd's. The part of the purchase price paid in cash was 22.2 M€ (19.5
M£). The amount of the additional purchase price was estimated to be 16.0 M€
(14.0 M£) at the time of the acquisition and it has been entered on the balance
sheet as a liability. The payment time of the additional purchase price is
estimated to be during the third quarter of 2012. The fees of lawyers, advisors
and outside valuators related to the deal amounted to a total of 1.1 M€, which
has been recognised as an expense. Goodwill resulting from the acquisition was
50.3 M€ (44.1 M£).
Raisio Group's net sales for January-June 2010 would have been 226.1 M€ and
pre-tax result excluding one-off items 7.6 M€ if the acquisition of business
operations completed during the financial year had been combined with the
consolidated financial statement from the beginning of the financial year 2010.
The post-acquisition net sales of subgroup Glisten was 22.8 M€ and pre-tax
result 1.5 M€.
The values of acquired assets and assumed liabilities on the date of acquisition
were as follows:
--------------------------------------------------------------------------------
| | Fair values entered | Carrying values |
| | in the business | before business |
| | combination | combination |
--------------------------------------------------------------------------------
| Property, plant and equipment | 14.0 | 14.0 |
--------------------------------------------------------------------------------
| Trade marks | 4.6 | 0.0 |
--------------------------------------------------------------------------------
| Deferred tax assets | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Inventories | 8.4 | 8.2 |
--------------------------------------------------------------------------------
| Accounts receivables and other | 13.6 | 13.6 |
| receivables | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total assets | 41.0 | 36.3 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1.3 | 0.0 |
--------------------------------------------------------------------------------
| Reserves | 0.9 | 0.9 |
--------------------------------------------------------------------------------
| Financial liabilities | 32.3 | 32.3 |
--------------------------------------------------------------------------------
| Financial liabilities at fair | 4.3 | 4.3 |
| value through profit or loss | | |
--------------------------------------------------------------------------------
| Other liabilities | 14.3 | 14.3 |
--------------------------------------------------------------------------------
| Total liabilities | 53.1 | 51.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets | -12.1 | -15.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost | 38.2 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill | 50.3 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase price paid in cash | 22.2 | |
--------------------------------------------------------------------------------
| Financial assets of the | 0.0 | |
| acquired subsidiary | | |
--------------------------------------------------------------------------------
| Cash flow generation | 22.2 | |
--------------------------------------------------------------------------------
Determination of fair value of assets and liabilities is still on a preliminary
basis.
DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE
Discontinued operations
Raisio and Bunde signed an agreement on the divestment of Raisio's margarine
business to Bunge in May 2009. The divestment was concluded in October 2009.
Discontinued operations in the income statement include the result of Raisio
Polska Foods Sp's margarine business, as well as the impact that the divestment
of the margarine business had on results. The result of the Finnish margarine
business is still reported under continuing operations, since Raisio will
continue to sell margarines in Finland, Sweden and Estonia as a distributor of
Bunge.
--------------------------------------------------------------------------------
| | 1-6/2010 | 1-6/2009 | 2009 |
--------------------------------------------------------------------------------
| Result for the discontinued | | | |
| operations (M€) | | | |
--------------------------------------------------------------------------------
| Income from ordinary operations | 0.0 | 20.3 | 32.7 |
--------------------------------------------------------------------------------
| Expenses | 0.0 | -19.2 | -28.9 |
--------------------------------------------------------------------------------
| Result before taxes | 0.0 | 1.1 | 3.7 |
--------------------------------------------------------------------------------
| Taxes | 0.0 | -0.2 | -0.7 |
--------------------------------------------------------------------------------
| Result after taxes | 0.0 | 0.9 | 3.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings due to discontinuation | -0.3 | | 35.6 |
--------------------------------------------------------------------------------
| Taxes | 0.2 | | 1.1 |
--------------------------------------------------------------------------------
| Result after taxes | -0.1 | | 36.7 |
--------------------------------------------------------------------------------
| Result for discontinued operations | -0.1 | | 39.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow for the discontinued | | | |
| operations (M€) | | | |
--------------------------------------------------------------------------------
| Cash flow from business operations | -4.5 | 1.5 | 7.3 |
--------------------------------------------------------------------------------
| Cash flow from investments | 3.5 | 0.0 | 70.7 |
--------------------------------------------------------------------------------
| Cash flow from financial | 0.0 | -0.8 | -1.0 |
| operations | | | |
--------------------------------------------------------------------------------
| Total cash flow | -1.0 | 0.6 | 77.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets held for sale (M€): | | | |
--------------------------------------------------------------------------------
| Intangible assets | | 0.4 | |
--------------------------------------------------------------------------------
| Goodwill | | 1.1 | |
--------------------------------------------------------------------------------
| Tangible assets | | 21.3 | |
--------------------------------------------------------------------------------
| Deferred tax assets | | 0.6 | |
--------------------------------------------------------------------------------
| Inventories | | 7.2 | |
--------------------------------------------------------------------------------
| Accounts receivables and other | | 5.4 | |
| receivables | | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | | 1.7 | |
--------------------------------------------------------------------------------
| Total assets | | 37.6 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities held for sale (M€): | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | | 0.8 | |
--------------------------------------------------------------------------------
| Accounts payable and other | | 5.3 | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total liabilities | | 6.1 | |
--------------------------------------------------------------------------------
TANGIBLE ASSETS (M€)
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning | 332.7 | 417.1 | 417.1 |
| of the period | | | |
--------------------------------------------------------------------------------
| Conversion differences | 4.1 | -1.7 | -1.1 |
--------------------------------------------------------------------------------
| Increase | 36.1 | 3.9 | 9.4 |
--------------------------------------------------------------------------------
| Decrease | -0.2 | -0.8 | -92.6 |
--------------------------------------------------------------------------------
| Reclassifications between items | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Operations held for sale | | -93.7 | |
--------------------------------------------------------------------------------
| Acquisition cost at period-end | 372.7 | 324.7 | 332.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | 237.4 | 292.8 | 292.8 |
| impairment at the beginning of the | | | |
| period | | | |
--------------------------------------------------------------------------------
| Conversion difference | 3.2 | -1.0 | -0.7 |
--------------------------------------------------------------------------------
| Increase | 16.9 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Decrease and transfers | 0.0 | -0.8 | -73.4 |
--------------------------------------------------------------------------------
| Depreciation for the period | 6.2 | 6.7 | 12.5 |
--------------------------------------------------------------------------------
| Write-downs | 0.0 | 0.0 | 6.2 |
--------------------------------------------------------------------------------
| Operations held for sale | | -72.4 | |
--------------------------------------------------------------------------------
| Accumulated depreciation and | 263.7 | 225.4 | 237.4 |
| impairment at period-end | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at period-end | 109.0 | 99.4 | 95.3 |
--------------------------------------------------------------------------------
RESERVES (M€)
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| At the beginning of the period | 3.1 | 1.1 | 1.1 |
--------------------------------------------------------------------------------
| Increase in provisions | 0.9 | 0.0 | 2.3 |
--------------------------------------------------------------------------------
| Provisions used | -0.5 | -0.2 | -0.4 |
--------------------------------------------------------------------------------
| At period-end | 3.5 | 0.9 | 3.1 |
--------------------------------------------------------------------------------
BUSINESS ACTIVITIES INVOLVING INSIDERS (M€)
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Sales to associated companies and | 5.4 | 6.0 | 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 | 0.5 | 0.4 | 0.7 |
| management | | | |
--------------------------------------------------------------------------------
| Receivables from associated | 0.9 | 1.2 | 1.2 |
| companies and joint ventures | | | |
--------------------------------------------------------------------------------
| Liabilities to associated companies | 0.0 | 0.1 | 0.2 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES (M€)
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Contingent off-balance sheet | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Non-cancelable other leases | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | 10.3 | 1.5 | 1.3 |
--------------------------------------------------------------------------------
| Contingent liabilities for the | | 0.2 | |
| company | | | |
--------------------------------------------------------------------------------
| Contingent liabilities for others | | | |
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Other liabilities | 4.5 | 1.7 | 2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitment to investment payments | 1.6 | 0.8 | 0.6 |
--------------------------------------------------------------------------------
DERIVATIVE CONTRACTS (M€)
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Nominal values of derivative | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Currency forward contracts | 63.4 | 16.1 | 7.5 |
--------------------------------------------------------------------------------
| Interest rate swaps | 36.0 | 8.9 | 39.4 |
--------------------------------------------------------------------------------
QUARTERLY PERFORMANCE (M€)
--------------------------------------------------------------------------------
| | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales by segment | | | | | | |
--------------------------------------------------------------------------------
| Brands | 64.5 | 43.4 | 45.5 | 43.5 | 44.2 | 44.5 |
--------------------------------------------------------------------------------
| Business to Business | 55.6 | 43.3 | 46.3 | 54.2 | 55.8 | 49.3 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.2 | 0.3 | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Interdivisional net | -0.4 | -0.5 | -0.6 | -2.4 | -2.4 | -2.7 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Total net sales | 120.0 | 86.4 | 91.5 | 95.5 | 97.8 | 91.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT by segment | | | | | | |
--------------------------------------------------------------------------------
| Brands | 5.8 | 4.8 | 2.8 | 7.3 | 4.6 | 5.8 |
--------------------------------------------------------------------------------
| Business to Business | 1.3 | 0.1 | 2.0 | 0.3 | 0.6 | 0.1 |
--------------------------------------------------------------------------------
| Other operations | -1.1 | -0.6 | -0.8 | -0.8 | -1.6 | -1.1 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.0 | 0.2 | 0.2 | 0.2 | -0.3 |
--------------------------------------------------------------------------------
| Total EBIT | 6.0 | 4.3 | 4.2 | 7.0 | 3.7 | 4.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | -2.9 | -0.1 | 0.3 | -0.3 | -0.3 | -0.3 |
| expenses, net | | | | | | |
--------------------------------------------------------------------------------
| Share of result of | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| associated companies | | | | | | |
--------------------------------------------------------------------------------
| Result before taxes | 3.1 | 4.3 | 4.5 | 6.8 | 3.4 | 4.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax | -0.8 | -1.3 | -1.5 | -1.8 | -1.0 | -1.4 |
--------------------------------------------------------------------------------
| Result for the period | 2.3 | 3.0 | 3.0 | 5.0 | 2.5 | 2.9 |
| from continuing | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
KEY INDICATORS
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Net sales, M€ | 206.4 | 189.0 | 375.9 |
--------------------------------------------------------------------------------
| Change of net sales, % | 9.2 | -14.4 | -18.8 |
--------------------------------------------------------------------------------
| Operating margin, M€ | 18.0 | 16.1 | 36.4 |
--------------------------------------------------------------------------------
| Depreciation and impairment, M€ | 7.7 | 7.9 | 17.0 |
--------------------------------------------------------------------------------
| EBIT, M€ | 10.3 | 8.2 | 19.5 |
--------------------------------------------------------------------------------
| % of net sales | 5.0 | 4.4 | 5.2 |
--------------------------------------------------------------------------------
| Result before taxes, M€ | 7.4 | 7.7 | 18.9 |
--------------------------------------------------------------------------------
| % of net sales | 3.6 | 4.1 | 5.0 |
--------------------------------------------------------------------------------
| Return on equity, ROE, % | 3.3 | 3.9 | 4.5 |
--------------------------------------------------------------------------------
| Return on investment, ROI, % | 4.4 | 5.3 | 6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing financial | 74.1 | 70.6 | 62.8 |
| liabilities at period-end, M€ | | | |
--------------------------------------------------------------------------------
| Net interest-bearing financial | -34.1 | -49.1 | -150.2 |
| liabilities at period-end, M€ | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 68.6 | 68.6 | 73.4 |
--------------------------------------------------------------------------------
| Net gearing, % | -10.8 | -17.9 | -46.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross investments, M€ | 46.5 | 3.9 | 10.0 |
--------------------------------------------------------------------------------
| % of net sales | 22.5 | 2.1 | 2.7 |
--------------------------------------------------------------------------------
| R & D expenses, M€ | 2.9 | 3.0 | 6.1 |
--------------------------------------------------------------------------------
| % of net sales | 1.4 | 1.6 | 1.6 |
--------------------------------------------------------------------------------
| Average personnel | 950 | 644 | 627 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/share from continuing | 0.03 | 0.03 | 0.09 |
| operations, EUR | | | |
--------------------------------------------------------------------------------
| Cash flow from operations/share, | -0.03 | 0.04 | 0.33 |
| EUR | | | |
--------------------------------------------------------------------------------
| Equity/share, EUR | 2.02 | 1.76 | 2.06 |
--------------------------------------------------------------------------------
| Average number of shares during | | | |
| the period, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 122,119 | 121,518 | 121,666 |
--------------------------------------------------------------------------------
| Restricted shares | 34,250 | 34,274 | 34,268 |
--------------------------------------------------------------------------------
| Total | 156,370 | 155,791 | 155,934 |
--------------------------------------------------------------------------------
| Average number of shares at | | | |
| period-end, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 122,627 | 121,524 | 121,894 |
--------------------------------------------------------------------------------
| Restricted shares | 34,250 | 34,273 | 34,250 |
--------------------------------------------------------------------------------
| Total | 156,877 | 155,797 | 156,145 |
--------------------------------------------------------------------------------
| Market capitalisation of shares at | | | |
| period-end, M€*) | | | |
--------------------------------------------------------------------------------
| Free shares | 333.5 | 237.0 | 324.2 |
--------------------------------------------------------------------------------
| Restricted shares | 91.8 | 66.1 | 93.2 |
--------------------------------------------------------------------------------
| Total | 425.3 | 303.1 | 417.4 |
--------------------------------------------------------------------------------
| Share price at period-end | | | |
--------------------------------------------------------------------------------
| Free shares | 2.72 | 1.95 | 2.66 |
--------------------------------------------------------------------------------
| Restricted shares | 2.68 | 1.93 | 2.72 |
--------------------------------------------------------------------------------
*) Number of shares, excluding the shares held by the company
CALCULATION OF INDICATORS
--------------------------------------------------------------------------------
| Return on equity (ROE), % | Result before taxes - income taxes*) |
| | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity (average over the period) |
--------------------------------------------------------------------------------
| Return on investment | Result before taxes + financial expenses*) |
| (ROI), % | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity + interest-bearing |
| | financial liabilities (average over the period) |
--------------------------------------------------------------------------------
| Equity ratio, % | Shareholders' equity |
| | ------------------------------------------- x |
| | 100 |
| | Balance sheet total - advances received |
--------------------------------------------------------------------------------
| Net interest-bearing | Interest-bearing financial liabilities - liquid |
| financial liabilities | funds and liquid financial assets at fair value |
| | through profit or loss |
--------------------------------------------------------------------------------
| Net gearing, % | Net interest-bearing financial liabilities |
| | ----------------------------------------- x 100 |
| | Shareholders' equity |
--------------------------------------------------------------------------------
| Earnings per share*) | Result for the year of parent company |
| | shareholders |
| | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue**) |
--------------------------------------------------------------------------------
| Cash flow from business | Cash flow from business operations |
| operations per share | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue |
--------------------------------------------------------------------------------
| Shareholders' equity per | Equity of parent company shareholders |
| share | ------------------------------------------------ |
| | Number of shares at period-end adjusted for |
| | share issue |
--------------------------------------------------------------------------------
| Market capitalisation | Closing price, adjusted for issue x number of |
| | shares without own shares at the end of the |
| | period |
--------------------------------------------------------------------------------
*)The calculation of key indicators uses continuing operations result
**)Excluding shares with a potential return obligation
