RAUTE CORPORATION - CONSOLIDATED FINANCIAL STATEMENTS JANUARY 1 - SEPTEMBER 30, 2008
RAUTE OYJ STOCK EXCHANGE RELEASE 28 October 2008 at 09.00 am
RAUTE CORPORATION - CONSOLIDATED FINANCIAL STATEMENTS JANUARY 1 - SEPTEMBER 30,
2008
- Net sales for the reporting period totaled EUR 79.8 million (MEUR 85.1), down
6 percent on the comparison period.
- Operating profit was EUR 6.1 million (MEUR 6.2) and profit before tax
EUR 6.6 million (MEUR 6.5).
- Earnings per share were EUR 1.14 (EUR 1.24).
- Order intake amounted to EUR 58 million (MEUR 48). The order book at the end
of the reporting period stood at EUR 32 million (MEUR 44).
- The net sales and operating profit for 2008 are expected to remain below the
previous year's level.
MR. TAPANI KIISKI, PRESIDENT AND CEO: WEAKER MARKET OUTLOOK
The good profitability development during the first half of the year continued
in the third quarter thanks to our good order book and successful operations. We
have a period of strong positive development behind us, but our outlook has
rapidly become more uncertain due the recent financial crisis.
The outlook for our most important customer industries, the plywood and LVL
industries, has weakened considerably during the summer and fall period, also
outside North America. This weakening is attributable to the slowing down of the
construction and transportation vehicle industries, which use plywood and LVL.
As the financial crisis has made it more difficult to receive financing and the
rate of interest has increased, the willingness and ability of Raute's customers
to make investments has clearly weakened during the past months. This
development has also lowered Raute's order intake to a low level, and our order
book has become alarmingly thinner during the early fall.
For both the plywood and LVL industries, the demand for wood products technology
covers three types of projects. Relatively small projects with a short payback
time are being planned in normal or even in higher than normal numbers. Through
these projects, the customers aim to achieve savings in raw material, energy,
glue and labor costs. Established operators are also planning projects to
strengthen their competitiveness and ability to deliver as soon as the demand
returns to its normal level. In addition, some projects triggered by the wood
export duties are being planned in Russia by both Russian and external
operators.
In this market situation, the last part of the year and the coming year will be
challenging. We are now working towards strengthening the order book and are
also preparing for adapting our operations to meet the demand. Also in this
market situation our aim is to reach a positive operating profit also in the
last quarter.
In August we celebrated the company's 100-year journey in a main event with our
various stakeholders. The speeches strongly highlighted the solid foundation of
Raute's success and its will to build for the future. I would like to extend my
warmest thanks to all who remembered Raute on our anniversary.
MARKET SITUATION
Market situation in customer industries
The market situation for the plywood industry has weakened considerably since
the summer in all market areas. Among the most important market areas, demand
has remained at a moderate level in Russia and for some types of plywood also in
Europe, Asia and North America, for example. The weaker demand for plywood used
in the construction and transportation vehicle industries is a result of the
global economic uncertainty that began in the USA and expanded to reach global
proportions during the third quarter and the more difficult financing of
investments. The plywood mills have adapted their production volume to
correspond with the lower demand. However, according to publicly available
statistics, the prices for plywood have remained at a normal level.
The market situation for LVL (Laminated Veneer Lumber) is difficult due to the
low level of activity in the construction industry. The production capacity of
several LVL mills is underutilized, but the prices for LVL have remained at a
normal level.
Demand for wood products technology and technology services
The weaker market situation has affected the investment decisions and
maintenance needs in the plywood and LVL industries and reduced the demand for
wood products technology and services. The recently increased uncertainty in the
financial markets has made it more difficult for some customers to receive
financing for their planned projects and has postponed the launch of the
projects.
The demand for technology services has remained at a good level for
modernizations. However, the low capacity utilization rates due to the
customers' market situation have reduced the demand for spare parts and
maintenance services in all market areas.
Order intake and order book
Raute's business consists of project deliveries and technology services to the
wood products industry. Project deliveries encompass complete mills, production
lines, and individual machines and equipment units. Technology services include
maintenance, spare parts services, modernizations, consulting, training, and
sales of reconditioned machinery.
The order intake amounted to EUR 58 million (MEUR 48) during the reporting
period. The low volume of order intake was attributable to the postponement of
projects in the negotiation phase. The postponements are evaluated to result
from the lower demand for plywood and LVL, more difficult financing of
investments and schedule changes typical of project business.
New orders for project deliveries stood at EUR 40 million (MEUR 26), of which
Europe accounted for 55 percent, Russia for 36 percent, North America for
4 percent and other market areas for 5 percent. The order intake for technology
services stood at EUR 18 million (MEUR 22).
The order intake in the third quarter amounted to EUR 9 million (MEUR 22). The
order book declined by EUR 18 million during the third quarter, and stood at
EUR 32 million (MEUR 44) at the end of the period.
Competitive position
There have been no essential changes in Raute's competitive position during the
reporting period. Customers appreciate comprehensive competence and strong
technology development in their strategic investments aimed at ensuring their
ability to deliver and provide service. The competitive advantages provided by
Raute's technology play an important role when customers select their suppliers.
NET SALES AND RESULT
Net sales for the reporting period totaled EUR 79.8 million (MEUR 85.1), down
6 percent on the comparison period. The decline in net sales was due to the
scheduling of new project orders received and the low order intake during the
first part of the year.
Europe's share of net sales rose to 47 percent (26%), whereas Russia's share of
net sales fell to 36 percent (38%). North America's share was 10 percent (24%)
and the share of other market areas 7 percent (12%). Technology services
accounted for 24 percent (25%) of net sales for the reporting period.
The Group's operating profit was EUR 6.1 million (MEUR 6.2) and accounted for
7.7 percent (7.2%) of net sales. The higher profit margin resulted from the
favorable order book in terms of product and geographical distribution as well
as the successful cost management of projects compared to the comparison period.
The result includes EUR 0.5 million in one-time costs relating to the adaptation
to the continuing weak market situation in North America.
Profit before tax for the reporting period was EUR 6.6 million (MEUR 6.5) and
profit EUR 4.5 million (MEUR 5.0). Earnings per share were EUR 1.14 (EUR 1.24).
There were no dilutive items.
Third-quarter net sales were EUR 25.2 million (MEUR 26.5). Operating profit was
EUR 2.2 million (MEUR 2.4) and accounted for 8.8 percent (9.2%) of net sales.
Profit in the third quarter amounted to EUR 1.6 million (MEUR 1.8), and earnings
per share were EUR 0.40 (EUR 0.46).
FINANCING
The Group's financial position is strong. At the end of the reporting period,
gearing was -53.1 percent (-12.8%) and the equity ratio 67.4 percent (68.3%).
The balance sheet total at the end of the reporting period was EUR 59.7 million
(MEUR 54.1). The fluctuation in balance sheet items and the key figures based on
them is a result of differences in the timing of customer payments and the cost
accumulation from project deliveries, which is typical of project business.
Liquid assets stood at EUR 18.7 million (MEUR 4.6), and the rise on the
comparison year was mainly due to lower trade receivables. Operating cash flow
was EUR 13.7 million (MEUR -16.6). Cash flow from investing activities totaled
EUR -2.3 million (MEUR -1.1). Cash flow from financing activities totaled
EUR -4.0 million (MEUR -1.7).
Interest-bearing liabilities amounted to EUR 0.5 million (MEUR 0.6) at the end
of the reporting period.
Raute Corporation has a EUR 10 million commercial paper program. The company has
renewed its financing limits during the summer and agreed on bilateral long-term
credit arrangements with Nordea Bank Finland plc, Pohjola Bank plc and Svenska
Handelsbanken AB. The commercial paper program and the credit limits have not
been in use during the reporting period.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURES
Research and development costs totaled EUR 3.9 million (MEUR 3.1), representing
4.9 percent (3.7%) of net sales.
Investments totaled EUR 2.2 million (MEUR 1.1) and were mainly focused on the
development of production in the Nastola and Shanghai units and on product
development.
PERSONNEL
The Group's headcount at the end of the reporting period was 584 (572). The
number of personnel increased in the units in China and Finland and was reduced
by the adaptation measures implemented in North America. Group companies outside
Finland accounted for 24 percent (25%) of employees. Converted to full-time
employees, the average number was 564 (570).
ORGANISATION
Mr. Pasi Kenola, President of Mecano Group Oy, which is a wholly-owned
subsidiary of Raute based in Kajaani and focusing on machine vision and
analyzing applications, resigned on July 29, 2008. Ms. Arja Hakala, CFO, Raute
Corporation, was appointed as the new President for the period
July 30-December 31, 2008.
OTHER EVENTS DURING THE REPORTING PERIOD
In order to adapt to the drastically weakened market situation in North America,
restructuring measures were taken in Raute's North American companies in April.
The aim of the measures is to keep business operations in North America
profitable also in a weak market situation. A total of EUR 0.5 million of
one-time costs relating to the restructuring was recorded in the result for the
first quarter.
The registration process for Raute Corporation's representative office in Moscow
was completed at the end of June, and the office started its operations during
the third quarter. Through the local office Raute will further strengthen its
presence in the significant Russian market.
A process of merging Mecano Group Oy with Raute Corporation is underway in the
Group, and the companies have made a decision on the implementation of the
merger. The aim of the merger is to clarify the Group structure and improve the
efficiency of operations. The merger will have no impact on Mecano's product
offering, customer service or personnel. The planned date of merger is
December 31, 2008.
EVENTS AFTER THE REPORTING PERIOD
A decision has been made to start preparations for adaptation measures in the
Group's Finnish companies due to the reduced order book and weakening market and
demand situation. These measures are expected to concern the Group's entire
personnel in Finland.
CORPORATE GOVERNANCE
Raute Corporation's Annual General Meeting was held on April 2, 2008. It adopted
the financial statements for 2007, granted discharge from liability to those
accountable and decided to distribute a dividend of 1.00 euro per share.
The Annual General Meeting on April 2, 2008 elected the company's Board of
Directors for a term that expires at the end of the Annual General Meeting of
2009. Mr. Jarmo Rytilahti was elected Chairman of the Board, Ms. Sinikka
Mustakallio Vice-Chairman and Mr. Ilpo Helander, Mr. Mika Mustakallio, Mr. Panu
Mustakallio and Mr. Jorma Wiitakorpi as Board members. All of the Board members
are independent of the company. Chairman Jarmo Rytilahti and two of the members
(Ilpo Helander and Jorma Wiitakorpi) are independent of major shareholders.
Mr. Jarmo Rytilahti continues as Chairman of the Appointment Committee, and Ms.
Sinikka Mustakallio and Mr. Ville Korhonen - a representative of major
shareholders - act as its members. The Working Committee continues to be chaired
by Mr. Jarmo Rytilahti and its members are Ms. Sinikka Mustakallio and Mr. Jorma
Wiitakorpi.
In the Annual General Meeting, Authorized Public Accountants Anna-Maija Simola
and Antti Unkuri were elected as auditors, and Ernst&Young Oy, an authorized
public accounting company, as deputy auditor.
The Annual General Meeting authorized the Board of Directors to decide on the
repurchase of a maximum of 400,000 Raute Corporation series A shares with the
company's distributable assets. The Annual General Meeting authorized the Board
of Directors to decide on the directed issue of a maximum of 400,000 of the
company's series A shares.
DIVIDEND FOR THE YEAR 2007
The Annual General Meeting decided to distribute a dividend of EUR 1.00 per
share for 2007. The total amount of dividends is EUR 4.0 million, series A
shares accounting for EUR 3,013,597.00 (EUR 2,109,517.90) and series K shares
for EUR 991,161.00 (EUR 693,812.70). The dividend payment date was April 14,
2008.
SHARES
The number of Raute Corporation's shares at the end of the reporting period
totaled 4,004,758, of which 991,161 were series K shares (ordinary share,
20 votes/share) and 3,013,597 series A shares (1 vote/share). The shares have a
nominal value of two euros. Series K shares can be converted to series A shares
under the terms described in section 3 of the Articles of Association. If a
series K share is transferred to a new owner who does not previously hold
series K shares, other shareholders of the K series have the right to redeem the
share under the terms described in section 4 of the Articles of Association.
Raute Corporation's series A shares are listed on NASDAQ OMX Helsinki Ltd. The
trading code is RUTAV. Raute Corporation has signed a market making agreement
with Nordea Bank Finland plc in compliance with the Liquidity Providing (LP)
requirements issued by the NASDAQ OMX Helsinki Ltd.
The company's market capitalization at the end of the reporting period was
EUR 46.0 million (MEUR 52.9), with series K shares valued at the closing price
of series A shares on September 30, 2008, which was EUR 11.49 (EUR 13.20).
The company's Board of Directors has been authorized by the Annual General
Meeting to decide on the buyback and directed issue of a maximum of 400,000 of
the company's series A shares. The Board of Directors has not exercised this
authorization.
Other share-related information is presented in the figures section of this
report.
SHAREHOLDERS
The number of shareholders totaled 1,312 at the beginning of the year and 1,465
at the end of the reporting period. Series K shares are held by 46 private
individuals (46). The management held 4.7 percent (4.7%) of company shares and
9.1 percent (9.1%) of votes. Nominee-registered shares accounted for 2.9 percent
(2.8%) of shares.
The company did not possess company shares during the reporting period or hold
them as security.
No flagging notifications were given to the company in the reporting period.
SEASONAL FLUCTUATION IN BUSINESS
The Group's net sales and working capital fluctuate every quarter due to
different types of project deliveries and their schedules. Business does not
involve systematic seasonal changes, with the exception of technology services
delivered to Finland, many of which take place during service shutdowns in the
summer.
CHANGES IN BUSINESS RISKS
The uncertainty in the development of the global economy will increase
near-future risks, and it is difficult to predict all of its implications.
However, the financial crisis, which has expanded to global proportions, will
make business financing more difficult and increase financing costs which will
affect investment demand and weaken the company's market outlook for the short
term and affect the company's counterparty risk. The company has no
interest-bearing bank credits and is thus not subject to interest rate risk.
Raute's liquid assets are in Finnish and Swedish banks.
During the reporting period, there have been no essential changes in the other
business risks described in the Board of Directors' report and financial
statements for 2007.
OUTLOOK FOR 2008
The market situation and investment activity of Raute's clientele have weakened
due to the weakening of the global economic situation and the financial market
crisis. Mill-scale projects are, however, in the quotation and negotiation phase
in different market areas.
Raute's net sales for 2008 are expected to remain below the previous year's
level. This is due to the postponement of decision making for projects in the
negotiation phase from the earlier estimation.
The operating profit for 2008 is expected to remain below the previous year's
level due to the lower than estimated level of net sales in the last quarter.
TABLES OF CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
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| CONSOLIDATED INCOME STATEMENT | | | | | |
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| (EUR 1 000) | Note | 1.7.- | 1.7.- | 1.1.- | 1.1.- | 1.1.- |
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| | | 30.9. | 30.9. | 30.9. | 30.9. | 31.12. |
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| | | 2008 | 2007 | 2008 | 2007 | 2007 |
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| NET SALES | 2,3,4 | 25 227 | 26 466 | 79 847 | 85 116 | 110 799 |
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| Other operating | | | | | | |
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| income | | 29 | 17 | 82 | 75 | 461 |
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| Increase (+) or | | | | | | |
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| decrease (-) in | | | | | | |
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| inventories of | | | | | | |
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| finished goods and | | | | | | |
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| work in progress | | -65 | 103 | 512 | 295 | 42 |
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| Materials and | | | | | | |
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| services | | 13 735 | 14 653 | 42 688 | 49 089 | 60 999 |
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| Expenses from | | | | | | |
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| employee benefits | 9 | 6 541 | 6 397 | 21 530 | 20 772 | 28 875 |
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| Depreciation, | | | | | | |
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| amortization and | | | | | | |
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| impairment charges | | 699 | 684 | 2 060 | 2 000 | 2 654 |
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| Other operating | | | | | | |
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| expenses | | 1 988 | 2 412 | 8 028 | 7 457 | 10 166 |
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| Total operating | | | | | | |
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| expenses | 7 | 22 962 | 24 146 | 74 306 | 79 319 | 102 695 |
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| OPERATING PROFIT | | 2 228 | 2 440 | 6 135 | 6 166 | 8 607 |
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| % of net sales | | 9 | 9 | 8 | 7 | 8 |
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| Financial income | | 75 | -1 | 718 | 501 | 660 |
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| Financial expenses | | 26 | -57 | -281 | -162 | -291 |
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| PROFIT BEFORE TAX | | 2 329 | 2 382 | 6 571 | 6 506 | 8 976 |
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| % of net sales | | 9 | 9 | 8 | 8 | 8 |
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| Income taxes | 6 | -733 | -536 | -2 025 | -1 531 | -2 375 |
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| PROFIT FOR THE PERIOD | | 1 597 | 1 845 | 4 546 | 4 974 | 6 601 |
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| % of net sales | | 6 | 7 | 6 | 6 | 6 |
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| Attributable to | | | | | | |
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| Equity holders of the | | | | | | |
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| Parent company | | 1 597 | 1 845 | 4 546 | 4 974 | 6 601 |
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| Earnings per share, | | | | | | |
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| EUR | | | | | | |
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| Undiluted earnings | | 0,40 | 0,46 | 1,14 | 1,24 | 1,65 |
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| per share | | | | | | |
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| Diluted earnings | | 0,40 | 0,46 | 1,14 | 1,24 | 1,65 |
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| per share | | | | | | |
--------------------------------------------------------------------------------
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| Shares, 1 000 pcs | | | | | | |
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| Adjusted average | | | | | | |
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| number of shares | | 4 005 | 4 005 | 4 005 | 4 005 | 4 005 |
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| Adjusted average | | | | | | |
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| number of shares | | | | | | |
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| diluted | | 4 005 | 4 005 | 4 005 | 4 005 | 4 005 |
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| CONSOLIDATED BALANCE SHEET | | | | |
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| (1 000 EUR) | Note | 30.9.2008 | 30.9.2007 | 31.12.2007 |
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| ASSETS | | | | |
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| Non-current assets | | | | |
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| Intangible assets | | 3 161 | 2 716 | 2 546 |
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| Tangible assets | | 10 877 | 11 901 | 10 993 |
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| Available-for-sale | | | | |
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| investments | | 499 | 395 | 449 |
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| Deferred tax assets | | 460 | 348 | 275 |
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| Total | | 14 997 | 15 360 | 14 263 |
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| Current assets | | | | |
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| Inventories | | 5 057 | 5 411 | 4 515 |
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| Accounts receivables and | | | | |
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| other receivables | 4 | 20 936 | 28 756 | 24 739 |
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| Financial assets at | | | | |
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| fair value through | | | | |
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| profit or loss | | 2 100 | 2 653 | 2 144 |
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| Cash and cash equivalents | | 16 588 | 1 926 | 9 140 |
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| Total | | 44 682 | 38 746 | 40 537 |
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| TOTAL ASSETS | 2 | 59 678 | 54 107 | 54 800 |
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| SHAREHOLDERS' EQUITY AND | | | | |
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| LIABILITIES | | | | |
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| Shareholders' equity | | | | |
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| Share capital | | 8 010 | 8 010 | 8 010 |
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| Share premium | | 6 498 | 6 498 | 6 498 |
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| Other funds | 9 | 171 | 218 | 161 |
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| Retained earnings | | 15 097 | 11 824 | 11 924 |
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| Net profit for period | | 4 546 | 4 974 | 6 601 |
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| Share of shareholders' | | | | |
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| equity that belongs | | | | |
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| to the owners of | | | | |
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| the Parent company | | 34 322 | 31 524 | 33 194 |
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| Total shareholders' equity | | 34 322 | 31 524 | 33 194 |
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| Long-term liabilities | | | | |
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| Provisions | | 548 | 216 | 286 |
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| Deferred tax liabilities | | 586 | 1 006 | 676 |
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| Long-term interest-bearing | | 348 | 317 | 277 |
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| liabilities | | 1 482 | 1 539 | 1 239 |
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| Total | | | | |
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| Current liabilities | | | | |
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| Provisions | | 1 761 | 958 | 971 |
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| Pension obligations | | 195 | 279 | 260 |
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| Short-term interest-bearing | | | | |
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| liabilities | | 110 | 238 | 213 |
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| Advance payments received | 4 | 8 743 | 7 980 | 7 590 |
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| Current tax liabilities | | 747 | 98 | 851 |
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| Trade and other payables | | 12 319 | 11 489 | 10 481 |
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| Total | | 23 875 | 21 043 | 20 367 |
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| Total liabilities | | 25 356 | 22 582 | 21 605 |
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| TOTAL SHAREHOLDERS' EQUITY | | | | |
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| AND LIABILITIES | | 59 678 | 54 107 | 54 800 |
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| CONSOLIDATED CASH FLOW STATEMENT | | | |
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| (1 000 EUR) | 1.1.-30.9. | 1.1.-30.9. | 1.1.-31.12 |
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| | 2008 | 2007 | 2007 |
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| CASH FLOW FROM OPERATING | | | |
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| ACTIVITIES | | | |
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| Proceeds from sales | 85 633 | 68 128 | 96 117 |
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| Proceeds from other | | | |
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| operating income | 77 | 75 | 114 |
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| Payments of operating expenses | -70 344 | -83 794 | -104 963 |
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| Cash flow before financial | | | |
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| items and taxes | 15 365 | -15 591 | -8 732 |
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| Interests and other operating | | | |
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| financial expenses paid | -28 | -162 | -394 |
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| Interests and other income | | | |
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| received | 635 | 386 | 639 |
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| Dividends received | 133 | 115 | 115 |
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| Income taxes paid | -2 406 | -1 387 | -1 843 |
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| NET CASH FLOW FROM OPERATING | | | |
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| ACTIVITIES (A) | 13 699 | -16 639 | -10 214 |
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| CASH FLOW FROM INVESTING | | | |
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| ACTIVITIES | | | |
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| Capital expenditure in | | | |
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| tangible and intangible | | | |
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| assets | -2 211 | -1 073 | -1 964 |
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| Purchases of available-for-sale | | | |
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| as investments | -50 | 0 | -74 |
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| Proceeds from sale of tangible | | | |
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| and intangible assets | 5 | 0 | 1 310 |
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| NET CASH FLOW FROM INVESTING | | | |
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| ACTIVITIES (B) | -2 256 | -1 073 | -728 |
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| CASH FLOW FROM FINANCING | | | |
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| ACTIVITIES | | | |
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| Repayments of long-term and | | | |
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| short-term loan receivables | -2 | 1 000 | 1 000 |
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| Increase of short-term | | | |
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| liabilities | -103 | 88 | 63 |
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| Repayment of long-term | | | |
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| liabilities | 71 | 0 | -40 |
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| Dividends paid | -4 005 | -2 803 | -2 803 |
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| NET CASH FROM FINANCING | | | |
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| ACTIVITIES (C) | -4 038 | -1 715 | -1 780 |
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| NET CHANGE IN CASH | | | |
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| AND CASH EQUIVALENTS (A+B+C) | | | |
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| increase (+)/decrease (-) | 7 404 | -19 427 | -12 723 |
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| CASH AND CASH EQUIVALENTS | | | |
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| AT THE BEGINNING OF THE PERIOD* | 11 284 | 24 006 | 24 006 |
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| CASH AND CASH EQUIVALENTS | | | |
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| AT THE END OF THE PERIOD* | 18 688 | 4 580 | 11 284 |
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| CASH AND CASH EQUIVALENTS | | | |
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| IN THE BALANCE SHEET | | | |
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| AT THE END OF THE PERIOD | | | |
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| Financial assets at fair | | | |
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| value through profit or loss | 2 100 | 2 653 | 2 144 |
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| Cash and cash equivalents | 16 588 | 1 926 | 9 140 |
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| TOTAL | 18 688 | 4 580 | 11 284 |
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* Cash and cash equivalents comprise trading assets as well as cash and bank
receivables, which will be due within the following three months' period.
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| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |
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| (EUR 1 000) | | | | | |
--------------------------------------------------------------------------------
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| | Share | Share | Other | Exchange | Retained |
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| | capital | premium | funds | rate | earnings |
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| | | | | diff. | |
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| EQUITY | | | | | |
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| Jan. 1, 2008 | 8 010 | 6 498 | 125 | 36 | 18 524 |
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| Exchange | | | | | |
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| differences | | | | | |
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| from net | | | | | |
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| investments | | | 22 | | |
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| Translation | | | | | |
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| differences | | | | 541 | |
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| Net income | | | | | |
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| recognized | | | | | |
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| directly in | | | | | |
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| equity | 0 | 0 | 22 | 541 | 0 |
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| Profit for | | | | | |
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| the period | | | | | 4 546 |
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| Total income and | | | | | |
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| expenses | | | | | |
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| recognized | | | | | |
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| in the period | 0 | 0 | 22 | 541 | 4 546 |
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| Dividend | | | | | -4 005 |
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| Equity-settled | | | | | |
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| share-based | | | | | |
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| transactions | | | 24 | | |
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| EQUITY | | | | | |
--------------------------------------------------------------------------------
| September 30, 2008| 8 010 | 6 498 | 171 | 577 | 19 065 |
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| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) |
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| | To owners | | Minority | | EQUITY |
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| | of the | | interest | | TOTAL |
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| | Parent | | | | |
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| | company | | | | |
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| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2008 | 33 194 | | 0 | | 33 194 |
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| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | 22 | | | | 22 |
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| Translation | | | | | |
--------------------------------------------------------------------------------
| differences | 541 | | | | 541 |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | 563 | | 0 | | 563 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the period | 4 546 | | | | 4 546 |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 5 109 | | 0 | | 5 109 |
--------------------------------------------------------------------------------
| Dividend | -4 005 | | | | -4 005 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | 24 | | | | 24 |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| September 30, 2008| 34 322 | | 0 | | 34 322 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |
--------------------------------------------------------------------------------
| (EUR 1 000) | | | | | |
--------------------------------------------------------------------------------
| | Share | Share | Other | Exchange | Retained |
--------------------------------------------------------------------------------
| | capital | premium | funds | rate | earnings |
--------------------------------------------------------------------------------
| | | | | diff. | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2007 | 8 010 | 6 498 | -201 | 274 | 14 726 |
--------------------------------------------------------------------------------
| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | | | 376 | | |
--------------------------------------------------------------------------------
| Translation | | | | | |
--------------------------------------------------------------------------------
| differences | | | | -374 | |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | 0 | 0 | 376 | -374 | 0 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the period | | | | | 4 974 |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 0 | 0 | 376 | -374 | 4 974 |
--------------------------------------------------------------------------------
| Dividend | | | | | -2 803 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | | | 43 | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| September 30, 2007| 8 010 | 6 498 | 218 | -100 | 16 897 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) |
--------------------------------------------------------------------------------
| | To owners | | Minority | | EQUITY |
--------------------------------------------------------------------------------
| | of the | | interest | | TOTAL |
--------------------------------------------------------------------------------
| | Parent | | | | |
--------------------------------------------------------------------------------
| | company | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2007 | 29 308 | | 0 | | 29 308 |
--------------------------------------------------------------------------------
| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | 376 | | | | 376 |
--------------------------------------------------------------------------------
| Translation | | | | | |
--------------------------------------------------------------------------------
| differences | -374 | | | | -374 |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | 2 | | 0 | | 2 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the period | 4 974 | | | | 4 974 |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 4 976 | | 0 | | 4 976 |
--------------------------------------------------------------------------------
| Dividend | -2 803 | | | | -2 803 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | 43 | | | | 43 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| September 30, 2007| 31 524 | | 0 | | 31 524 |
--------------------------------------------------------------------------------
NOTES
General information
Raute Group (‘Group') is a globally operating technology corporation, whose core
business consists of the production processes of veneer-based wood products.
Project deliveries include complete mills, production lines, and single
machines. Full-service technology services include spare part, maintenance, and
modernization services, as well as services related to developing customers'
businesses.
The Group's Parent company, Raute Corporation, is a Finnish public limited
liability company established in accordance with Finnish law (Business ID
FI01490726). Its series A shares are quoted on NASDAQ OMX Helsinki Ltd., under
Industrials. Raute Corporation is domiciled in Lahti, Finland. The address of
its registered office is Rautetie 2, FI-15550 Nastola, Finland, and its postal
address is P.O. Box 69, FI-15551 Nastola, Finland.
A copy of the Consolidated financial statements is available online at
www.raute.com or at the head office of the Parent company, Rautetie 2, FI-15550
Nastola, Finland.
Raute Corporation's Board of Directors has on 27 October 2008 reviewed the
Group's Interim financial statements for January 1 - September 30, 2008, and
decided to publish Raute Corporation's Interim financial reporting for January 1
- September 30, 2008, in compliance with this release.
1. Accounting principles
Raute Corporation's Interim financial reporting has been prepared in compliance
with IAS 34.
Raute Group's Interim financial statements for January 1 - September 30, 2008,
included in the Interim financial reporting do not contain full notes and other
information presented in the financial statements. Therefore, the Interim
financial reporting should be read in conjunction with the Financial statements
published for 2007.
The figures presented in the Interim financial reporting have not been audited.
Figures in parentheses refer to the corresponding figures in the comparison
year. All the monetary figures presented in this interim report are in thousands
euros, unless otherwise stated. Due to the roundings of the figures in the
interim financial statement tables, the sums of figures may deviate from the sum
total presented in the table.
The preparation of interim financial statements according to IFRS requires
management to use estimates and assumptions that affect the assets and
liabilities on the balance sheet date, as well as the income and expenses for
the financial period. Because the forward-looking estimates and assumptions are
based on management's best knowledge at the interim time, they comprise risks
and uncertainties. The actual results may differ from these estimates.
The following standards have taken effect during the interim period, but
according to the management's view, they do not affect the performance, the
financial condition or the notes of the Group:
- IFRIC 11, IFRS 2: Group and Treasury Share Transactions
- IFRIC 12, Service Concession Arrangements
- IFRIC 14, IAS 19: The Limit and Defined Benefit Assets, Minimum Funding
Requirements and their Interaction
- IFRIC 16, Hedges of a Net Investment in a Foreign Operation
- IFRIC 15, Agreements for the Construction of Real Estate
In other respects, the Group has followed the accounting principles described in
the Financial statements for 2007.
2. Segment information
Primary reporting segment
Raute's primary reporting segment is the business segment. Continuing operations
belong to the wood products technology segment.
Secondary reporting segment
Raute's secondary reporting segment is geographical. The geographical segment
consists of market areas accounting for over 10 percent of the Group's net
sales.
Geographical reporting segment information:
--------------------------------------------------------------------------------
| Net sales to external | 1.1.- | | 1.1.- | | 1.1.- | |
--------------------------------------------------------------------------------
| clients by | 30.9. | | 30.9. | | 31.12. | |
--------------------------------------------------------------------------------
| clients geographical | 2008 | % | 2007 | % | 2007 | % |
--------------------------------------------------------------------------------
| location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 37 587 | 47 | 22 181 | 26 | 34 117 | 31 |
--------------------------------------------------------------------------------
| Russia | 29 065 | 36 | 32 508 | 38 | 38 314 | 35 |
--------------------------------------------------------------------------------
| North America | 8 140 | 10 | 20 373 | 24 | 24 047 | 22 |
--------------------------------------------------------------------------------
| South America | 3 561 | 5 | 7 787 | 9 | 11 485 | 10 |
--------------------------------------------------------------------------------
| Others | 1 494 | 2 | 2 267 | 3 | 2 836 | 3 |
--------------------------------------------------------------------------------
| TOTAL | 79 847 | 100 | 85 116 | 100 | 110 799 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets by geographical | | | | | | |
--------------------------------------------------------------------------------
| location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 53 771 | 90 | 46 237 | 85 | 48 822 | 89 |
--------------------------------------------------------------------------------
| Russia | 922 | 2 | 439 | 1 | 1 048 | 2 |
--------------------------------------------------------------------------------
| North America | 3 703 | 6 | 6 164 | 11 | 3 275 | 6 |
--------------------------------------------------------------------------------
| South America | 64 | 0 | 47 | 0 | 34 | 0 |
--------------------------------------------------------------------------------
| Others | 1 218 | 2 | 1 220 | 2 | 1 621 | 3 |
--------------------------------------------------------------------------------
| TOTAL | 59 678 | 100 | 54 107 | 100 | 54 800 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure by | | | | | | |
--------------------------------------------------------------------------------
| geographical location | | | | | | |
--------------------------------------------------------------------------------
| Europe | 1 818 | 82 | 712 | 66 | 1 411 | 75 |
--------------------------------------------------------------------------------
| Russia | 1 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| North America | 34 | 2 | 75 | 7 | 74 | 4 |
--------------------------------------------------------------------------------
| South America | 21 | 1 | 0 | 0 | 4 | 0 |
--------------------------------------------------------------------------------
| Others | 345 | 15 | 286 | 27 | 380 | 20 |
--------------------------------------------------------------------------------
| TOTAL | 2 219 | 100 | 1 073 | 100 | 1 869 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Proceeds from sales | | | | | | |
--------------------------------------------------------------------------------
| | 1.1.- | | 1.1.- | | 1.1.- | |
--------------------------------------------------------------------------------
| Net sales | 30.9. | | 30.9. | | 31.12. | |
--------------------------------------------------------------------------------
| by market area | 2008 | % | 2007 | % | 2007 | % |
--------------------------------------------------------------------------------
| Rest of Europe | 26 633 | 33 | 13 924 | 16 | 20 077 | 18 |
--------------------------------------------------------------------------------
| Russia | 29 065 | 36 | 32 508 | 38 | 38 314 | 35 |
--------------------------------------------------------------------------------
| Finland | 10 954 | 14 | 8 257 | 10 | 14 040 | 13 |
--------------------------------------------------------------------------------
| North America | 8 140 | 10 | 20 373 | 24 | 24 047 | 22 |
--------------------------------------------------------------------------------
| South America | 3 561 | 5 | 7 787 | 9 | 11 485 | 10 |
--------------------------------------------------------------------------------
| Asia | 612 | 1 | 885 | 1 | 915 | 1 |
--------------------------------------------------------------------------------
| Oceania | 633 | 1 | 597 | 1 | 979 | 1 |
--------------------------------------------------------------------------------
| Others | 249 | 0 | 785 | 1 | 942 | 1 |
--------------------------------------------------------------------------------
| TOTAL | 79 847 | 100 | 85 116 | 100 | 110 799 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Long-term projects | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Net sales | | | |
--------------------------------------------------------------------------------
| Net sales by percentage | | | |
--------------------------------------------------------------------------------
| of completion | 66 009 | 73 398 | 94 905 |
--------------------------------------------------------------------------------
| Other net sales | 13 839 | 11 718 | 15 894 |
--------------------------------------------------------------------------------
| TOTAL | 79 847 | 85 116 | 110 799 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Project revenues entered | | | |
--------------------------------------------------------------------------------
| as income from currently | | | |
--------------------------------------------------------------------------------
| undelivered long-term | | | |
--------------------------------------------------------------------------------
| projects recognized | | | |
--------------------------------------------------------------------------------
| by percentage of completion | 97 511 | 109 120 | 120 722 |
--------------------------------------------------------------------------------
| Amount of long-term project | | | |
--------------------------------------------------------------------------------
| revenues not yet | | | |
--------------------------------------------------------------------------------
| entered as income | 30 535 | 40 718 | 53 474 |
--------------------------------------------------------------------------------
| Specification of combined | | | |
--------------------------------------------------------------------------------
| asset and liability items: | | | |
--------------------------------------------------------------------------------
| Accrued income | | | |
--------------------------------------------------------------------------------
| corresponding to revenues | | | |
--------------------------------------------------------------------------------
| by percentage of completion | 97 587 | 110 024 | 120 942 |
--------------------------------------------------------------------------------
| Advances received from | | | |
--------------------------------------------------------------------------------
| project customers | -85 375 | -87 280 | -102 601 |
--------------------------------------------------------------------------------
| Project receivables included | | | |
--------------------------------------------------------------------------------
| in current assets | 12 212 | 22 744 | 18 341 |
--------------------------------------------------------------------------------
| Advance payments received | | | |
--------------------------------------------------------------------------------
| in the Balance Sheet | 8 743 | 7 980 | 7 590 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Number of personnel, persons | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| - Effective, on average | 564 | 570 | 566 |
--------------------------------------------------------------------------------
| - In books, on average | 586 | 576 | 575 |
--------------------------------------------------------------------------------
| - In books, at the end of period, | 584 | 572 | 570 |
--------------------------------------------------------------------------------
| - of which personnel working | | | |
--------------------------------------------------------------------------------
| abroad | 141 | 140 | 140 |
--------------------------------------------------------------------------------
6. Income taxes
Income taxes represent the tax corresponding to the period's result, based on
the estimated full-year tax rate. The effective tax rate of the reporting period
is 30.8 percent.
--------------------------------------------------------------------------------
| 7. Research and development costs | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Research and development costs | | | |
--------------------------------------------------------------------------------
| for the period | 3 498 | 3 137 | 3 969 |
--------------------------------------------------------------------------------
| Depreciation of capitalized | | | |
--------------------------------------------------------------------------------
| development costs | 382 | 275 | 367 |
--------------------------------------------------------------------------------
| Recognized as assets | | | |
--------------------------------------------------------------------------------
| in balance sheet | -692 | -191 | -233 |
--------------------------------------------------------------------------------
| Research and development | | | |
--------------------------------------------------------------------------------
| costs entered as expenses | | | |
--------------------------------------------------------------------------------
| for the period | 3 188 | 3 221 | 4 103 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8. Changes in Property, plant and | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| equipment | | | |
--------------------------------------------------------------------------------
| Carrying amount at the | | | |
--------------------------------------------------------------------------------
| beginnig of the period | 40 008 | 40 411 | 40 411 |
--------------------------------------------------------------------------------
| Exchange rate differences | -369 | -320 | 4 |
--------------------------------------------------------------------------------
| Additions | 1 304 | 455 | 1 263 |
--------------------------------------------------------------------------------
| Disposals | 0 | 0 | -1 558 |
--------------------------------------------------------------------------------
| Other reclassifications between | | | |
--------------------------------------------------------------------------------
| items | -163 | -145 | -112 |
--------------------------------------------------------------------------------
| Carrying amount at the end | | | |
--------------------------------------------------------------------------------
| of the period | 40 781 | 40 401 | 40 008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | | | |
--------------------------------------------------------------------------------
| amortization at the beginning | | | |
--------------------------------------------------------------------------------
| of the period | -29 014 | -27 868 | -27 868 |
--------------------------------------------------------------------------------
| Exchange rate differences | 291 | 548 | 2 |
--------------------------------------------------------------------------------
| Accumulated depreciations on | | | |
--------------------------------------------------------------------------------
| disposals | 0 | 0 | -50 |
--------------------------------------------------------------------------------
| Depreciation for the | | | |
--------------------------------------------------------------------------------
| financial period | -1 180 | -1 180 | -1 574 |
--------------------------------------------------------------------------------
| Impairments | 0 | 0 | 477 |
--------------------------------------------------------------------------------
| Accumulated depreciation and | | | |
--------------------------------------------------------------------------------
| amortization at the end | | | |
--------------------------------------------------------------------------------
| of the period | -29 904 | -28 500 | -29 014 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at the beginnig | | | |
--------------------------------------------------------------------------------
| of the period | 10 993 | 12 542 | 12 542 |
--------------------------------------------------------------------------------
| Book value at the end | | | |
--------------------------------------------------------------------------------
| of the period | 10 877 | 11 901 | 10 993 |
--------------------------------------------------------------------------------
9. Share-based payments
The effect of the share-based remunerations to the profit of Raute Group was
EUR -52 thousand. At the end of the period the current value of the cash portion
was EUR 11.49 per share. The fair value of granted share-based remunerations was
EUR 0.3 million in total.
--------------------------------------------------------------------------------
| 10. Other leases and operating | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| lease liabilities | | | |
--------------------------------------------------------------------------------
| Group as lessee | | | |
--------------------------------------------------------------------------------
| Minimum rents paid on the basis of | | | |
--------------------------------------------------------------------------------
| other non-cancellable leases: | | | |
--------------------------------------------------------------------------------
| - Within one year | 189 | 48 | 127 |
--------------------------------------------------------------------------------
| - After the period of more than 1 | | | |
--------------------------------------------------------------------------------
| and less than 5 years | 359 | 486 | 370 |
--------------------------------------------------------------------------------
| TOTAL | 548 | 534 | 497 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The Group has rented in a part of its business premises in use. |
--------------------------------------------------------------------------------
| The rental agreements are made for fixed-term. The agreements include an |
--------------------------------------------------------------------------------
| option to extend the rental period after the date of initial expiration. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minimum direct leasing rents | | | |
--------------------------------------------------------------------------------
| paid on the basis of | | | |
--------------------------------------------------------------------------------
| non-cancellable direct leasing | | | |
--------------------------------------------------------------------------------
| contracts: | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - Within one year | 59 | 25 | 60 |
--------------------------------------------------------------------------------
| - After the period of more than 1 | | | |
--------------------------------------------------------------------------------
| and less than 5 years | 19 | 55 | 60 |
--------------------------------------------------------------------------------
| TOTAL | 78 | 80 | 120 |
--------------------------------------------------------------------------------
11. Pledged assets and contingent liabilities
Pledged assets
Debts secured by mortgages
Raute Group has on September 30, 2008 long-term bilateral credit facilities
worth EUR 17 million, which were unused during the period.
Raute Corporation has a EUR 10 million domestic commercial paper program, which
is arranged by Nordea Bank Finland plc. Within the limits of the program, the
company can issue commercial papers maturing in less than one year.
--------------------------------------------------------------------------------
| Contingent liabilities and | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| other liabilities | | | |
--------------------------------------------------------------------------------
| For own debt | | | |
--------------------------------------------------------------------------------
| - Mortgages on real property | 134 | 1 059 | 134 |
--------------------------------------------------------------------------------
| - Business mortgages | 10 000 | 10 000 | 10 000 |
--------------------------------------------------------------------------------
| Security for Group's liabilities | | | |
--------------------------------------------------------------------------------
| - Bank guarantees | 16 340 | 17 150 | 17 584 |
--------------------------------------------------------------------------------
| Other own liabilities | | | |
--------------------------------------------------------------------------------
| Leasing and rent liabilities | | | |
--------------------------------------------------------------------------------
| - For the current accounting | | | |
--------------------------------------------------------------------------------
| period | 248 | 73 | 187 |
--------------------------------------------------------------------------------
| - For subsequent accounting | | | |
--------------------------------------------------------------------------------
| periods | 378 | 541 | 430 |
--------------------------------------------------------------------------------
No loans or pledges have been given or other commitments made on behalf of the
company's management or shareholders.
--------------------------------------------------------------------------------
| 12. Currency derivatives | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency derivatives are used for hedging purposes. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of forward | | | |
--------------------------------------------------------------------------------
| contracts in foreign currency | | | |
--------------------------------------------------------------------------------
| Economic hedging | | | |
--------------------------------------------------------------------------------
| - Related to financing | 4 288 | 3 650 | 3 277 |
--------------------------------------------------------------------------------
| - Related to hedging of net sales | 1 759 | 6 568 | 2 481 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values of forward contracts | | | |
--------------------------------------------------------------------------------
| in foreign currency | | | |
--------------------------------------------------------------------------------
| Economic hedging | | | |
--------------------------------------------------------------------------------
| - Related to financing | -26 | -4 | -30 |
--------------------------------------------------------------------------------
| - Related to the hedging | | | |
--------------------------------------------------------------------------------
| of net sales | -20 | 346 | 360 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY RATIOS | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | 1.1.-30.9. | 1.1.-30.9. | 1.1.-31.12. |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment (ROI), % | 26,7 | 28,7 | 29,2 |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | 18,0 | 21,8 | 21,1 |
--------------------------------------------------------------------------------
| Quick ratio | 2,6 | 2,6 | 2,8 |
--------------------------------------------------------------------------------
| Gearing, % | -53,1 | -12,8 | -32,5 |
--------------------------------------------------------------------------------
| Equity ratio, % | 67,4 | 68,3 | 70,3 |
--------------------------------------------------------------------------------
| Order book, MEUR | 32 | 44 | 56 |
--------------------------------------------------------------------------------
| Order intake, MEUR | 58 | 48 | 90 |
--------------------------------------------------------------------------------
| Exported portion of net sales, % | 86,3 | 90,3 | 87,3 |
--------------------------------------------------------------------------------
| Change in net sales, % | -6,2 | 15,5 | 4,3 |
--------------------------------------------------------------------------------
| Gross capital expenditure, MEUR | 2,2 | 1,1 | 1,9 |
--------------------------------------------------------------------------------
| % of net sales | 2,8 | 1,3 | 1,7 |
--------------------------------------------------------------------------------
| Research and development, MEUR | 3,9 | 3,1 | 4,0 |
--------------------------------------------------------------------------------
| % of net sales | 4,9 | 3,7 | 3,6 |
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | | | |
--------------------------------------------------------------------------------
| - basic | 1,14 | 1,24 | 1,65 |
--------------------------------------------------------------------------------
| - diluted | 1,14 | 1,24 | 1,65 |
--------------------------------------------------------------------------------
| Equity to share, EUR | 8,57 | 7,87 | 8,29 |
--------------------------------------------------------------------------------
| Dividend per share | | | |
--------------------------------------------------------------------------------
| series K shares, EUR | | | 1,00 |
--------------------------------------------------------------------------------
| Dividend per share | | | |
--------------------------------------------------------------------------------
| series A shares, EUR | | | 1,00 |
--------------------------------------------------------------------------------
| Dividend per profit, % | | | 60,7 |
--------------------------------------------------------------------------------
| Effective dividend return, % | | | 7,0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share price at the end of | | | |
--------------------------------------------------------------------------------
| the period, EUR | 11,49 | 13,20 | 14,35 |
--------------------------------------------------------------------------------
| Number of shares | | | |
--------------------------------------------------------------------------------
| - weighted average, 1 000 pcs | 4 005 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
| - diluted, 1 000 pcs | 4 005 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
The formulas used to calculate key ratios are described on page 72 of the Annual
Report 2007.
THE DEVELOPMENT OF QUARTERLY RESULTS
--------------------------------------------------------------------------------
| | Q 3 | Q 2 | Q 1 | Q 4 | Rolling | Rolling |
--------------------------------------------------------------------------------
| | 2008 | 2008 | 2008 | 2007 | 1.10.2007 | 1.10.2006 |
--------------------------------------------------------------------------------
| | | | | | - | - |
--------------------------------------------------------------------------------
| | | | | | 30.9.2008 | 30.9.2007 |
--------------------------------------------------------------------------------
| NET SALES | 25 227 | 30 710 | 23 910 | 25 683 | 105 530 | 117 610 |
--------------------------------------------------------------------------------
| Other operating | | | | | | |
--------------------------------------------------------------------------------
| income | 29 | 26 | 27 | 386 | 468 | 147 |
--------------------------------------------------------------------------------
| Increase (+) or | | | | | | |
--------------------------------------------------------------------------------
| decrease (-) in | | | | | | |
--------------------------------------------------------------------------------
| inventories of | | | | | | |
--------------------------------------------------------------------------------
| finished goods | | | | | | |
--------------------------------------------------------------------------------
| and work | | | | | | |
--------------------------------------------------------------------------------
| in progress | -65 | 381 | 196 | -252 | 259 | 282 |
--------------------------------------------------------------------------------
| Materials and | | | | | | |
--------------------------------------------------------------------------------
| services | 13 735 | 17 293 | 11 661 | 11 910 | 54 598 | 68 579 |
--------------------------------------------------------------------------------
| Expenses | | | | | | |
--------------------------------------------------------------------------------
| from employee | | | | | | |
--------------------------------------------------------------------------------
| benefits | 6 541 | 7 858 | 7 131 | 8 103 | 29 633 | 27 869 |
--------------------------------------------------------------------------------
| Depreciation, | | | | | | |
--------------------------------------------------------------------------------
| amortization | | | | | | |
--------------------------------------------------------------------------------
| and impairment | | | | | | |
--------------------------------------------------------------------------------
| charges | 699 | 720 | 641 | 654 | 2 714 | 2 871 |
--------------------------------------------------------------------------------
| Other operating | | | | | | |
--------------------------------------------------------------------------------
| expenses | 1 988 | 2 543 | 3 497 | 2 709 | 10 737 | 10 253 |
--------------------------------------------------------------------------------
| Total operating | | | | | | |
--------------------------------------------------------------------------------
| expenses | 22 962 | 28 413 | 22 931 | 23 376 | 97 681 | 109 573 |
--------------------------------------------------------------------------------
| OPERATING PROFIT| 2 228 | 2 704 | 1 202 | 2 441 | 8 576 | 8 465 |
--------------------------------------------------------------------------------
| % of net sales | 9 | 9 | 5 | 10 | 8 | 7 |
--------------------------------------------------------------------------------
| Financial income| 75 | 190 | 453 | 159 | 876 | 700 |
--------------------------------------------------------------------------------
| Financial | | | | | | |
--------------------------------------------------------------------------------
| expenses | 26 | 22 | -330 | -129 | -411 | -247 |
--------------------------------------------------------------------------------
| PROFIT BEFORE | | | | | | |
--------------------------------------------------------------------------------
| TAX | 2 329 | 2 916 | 1 325 | 2 470 | 9 041 | 8918 |
--------------------------------------------------------------------------------
| % of net sales | 9 | 9 | 6 | 10 | 9 | 8 |
--------------------------------------------------------------------------------
| Income taxes | -733 | -920 | -373 | -844 | -2 869 | -2 248 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | | | | | | |
--------------------------------------------------------------------------------
| PERIOD | 1 597 | 1 996 | 952 | 1 626 | 6 172 | 6 670 |
--------------------------------------------------------------------------------
| % of net sales | 6 | 6 | 4 | 6 | 6 | 6 |
--------------------------------------------------------------------------------
| Breakdown | | | | | | |
--------------------------------------------------------------------------------
| Share of profit | | | | | | |
--------------------------------------------------------------------------------
| that belongs | | | | | | |
--------------------------------------------------------------------------------
| to owners of the| | | | | | |
--------------------------------------------------------------------------------
| Parent company | 1 597 | 1 996 | 952 | 1 626 | 6 172 | 6 670 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | | | | | | |
--------------------------------------------------------------------------------
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Undiluted | | | | | | |
--------------------------------------------------------------------------------
| earnings | | | | | | |
--------------------------------------------------------------------------------
| per share | 0,40 | 0,50 | 0,24 | 0,41 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings| | | | | | |
--------------------------------------------------------------------------------
| per share | 0,40 | 0,50 | 0,24 | 0,41 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares, | | | | | | |
--------------------------------------------------------------------------------
| 1 000 pcs | | | | | | |
--------------------------------------------------------------------------------
| Adjusted | | | | | | |
--------------------------------------------------------------------------------
| average number | | | | | | |
--------------------------------------------------------------------------------
| of shares | 4 005 | 4 005 | 4 005 | 4 005 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjusted | | | | | | |
--------------------------------------------------------------------------------
| average number | | | | | | |
--------------------------------------------------------------------------------
| of shares, | | | | | | |
--------------------------------------------------------------------------------
| diluted | 4 005 | 4 005 | 4 005 | 4 005 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 20 LARGEST SHAREHOLDERS AT | Number of | Number of | |
--------------------------------------------------------------------------------
| 30 SEPTEMBER, 2008 | series K- | series A- | |
--------------------------------------------------------------------------------
| | shares | shares | Total |
--------------------------------------------------------------------------------
| | (20 votes | (1 vote | number |
--------------------------------------------------------------------------------
| | per share) | per share) | of shares |
--------------------------------------------------------------------------------
| 1. Sundholm Göran | | 525 000 | 525 000 |
--------------------------------------------------------------------------------
| 2. Hietala Pekka Tapani | | 181 900 | 181 900 |
--------------------------------------------------------------------------------
| 3. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 |
--------------------------------------------------------------------------------
| 4. Mustakallio Kari Pauli | 60 480 | 60 009 | 120 489 |
--------------------------------------------------------------------------------
| 5. Kirmo Kaisa Marketta | 50 280 | 64 052 | 114 332 |
--------------------------------------------------------------------------------
| 6. Suominen Pekka Matias | 48 000 | 64 159 | 112 159 |
--------------------------------------------------------------------------------
| 7. Suominen Tiina Sini-Maria | 48 000 | 62 316 | 110 316 |
--------------------------------------------------------------------------------
| 8. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 |
--------------------------------------------------------------------------------
| 9. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 |
--------------------------------------------------------------------------------
| 10. Särkijärvi Riitta | 60 480 | 22 009 | 82 489 |
--------------------------------------------------------------------------------
| 11. Mustakallio Mika | 39 750 | 42 670 | 82 420 |
--------------------------------------------------------------------------------
| 12. Mustakallio Risto | 42 240 | 35 862 | 78 102 |
--------------------------------------------------------------------------------
| 13. Mustakallio Ulla Sinikka | 47 240 | 30 862 | 78 102 |
--------------------------------------------------------------------------------
| 14. Sr Arvo Finland Value | | 63 042 | 63 042 |
--------------------------------------------------------------------------------
| 15. Mustakallio Marja Helena | 42 240 | 20 662 | 62 902 |
--------------------------------------------------------------------------------
| 16. Kirmo Lasse Antti | 30 000 | 26 200 | 56 200 |
--------------------------------------------------------------------------------
| 17. Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 |
--------------------------------------------------------------------------------
| 18. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 |
--------------------------------------------------------------------------------
| 19. Mustakallio Kai Henrik | 47 420 | 6 994 | 54 414 |
--------------------------------------------------------------------------------
| 20. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 |
--------------------------------------------------------------------------------
| TOTAL | 697 330 | 1 499 627 | 2 196 957 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of total amount of shares, % | 70,4 | 49,8 | 54,9 |
--------------------------------------------------------------------------------
| Share of total voting rights, % | 70,4 | 49,8 | 67,6 |
--------------------------------------------------------------------------------
| Administrative registered | | 117 058 | 117 058 |
--------------------------------------------------------------------------------
| Other shareholders | 293 831 | 1 396 912 | 1 690 743 |
--------------------------------------------------------------------------------
| TOTAL | 991 161 | 3 013 597 | 4 004 758 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MANAGEMENT'S SHAREHOLDING | 98 990 | 90 838 | 189 828 |
--------------------------------------------------------------------------------
| Share of total amount of shares, % | 10,0 | 3,0 | 4,7 |
--------------------------------------------------------------------------------
| Share of total voting rights, % | 10,0 | 3,0 | 9,1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHARE INFORMATION | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares | | | |
--------------------------------------------------------------------------------
| - Series K shares, ordinary shares | | | |
--------------------------------------------------------------------------------
| (20 votes/share) | 991 161 | 991 161 | 991 161 |
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| - Series A shares | | | |
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| (1 vote/share) | 3 013 597 | 3 013 597 | 3 013 597 |
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| Total | 4 004 758 | 4 004 758 | 4 004 758 |
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| Trading of series A shares | | | |
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| Trading of shares, pcs | 295 111 | 805 203 | 981 095 |
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| Trading of shares, MEUR | 4,1 | 11,3 | 13,7 |
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| Exchange rate of series A shares | | | |
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| At the end of report period, EUR | 11,49 | 13,20 | 14,35 |
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| Highest price during | | | |
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| the report period, EUR | 15,20 | 15,45 | 15,45 |
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| Lowest price during | | | |
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| the report period, EUR | 11,49 | 12,40 | 12,40 |
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| Average price during | | | |
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| the report period, EUR | 13,77 | 13,88 | 13,85 |
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| Market value of capital stock | | | |
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| Series K shares valued at the | | | |
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| value of series A shares | | | |
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| at the end of reporting period. | | | |
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| - Series K shares, MEUR | 11,4 | 13,1 | 14,2 |
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| - Series A shares, MEUR | 34,6 | 39,8 | 43,2 |
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| Total, MEUR | 46,0 | 52,9 | 57,5 |
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RAUTE CORPORATION
Board of Directors
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation,
tel. +358 3 829 3560, mobile +358 400 814 148
Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293,
mobile +358 400 710 387
RAUTE IN BRIEF:
Raute is a technology company serving the wood products industry worldwide. Its
most important customers are the plywood and LVL industries. The company is one
of the world's leading suppliers of mill-scale projects to these customer
industries. The total service concept also includes technology services, with
which Raute supports its customers throughout the entire life cycle of their
investments. Raute's head office and main production plant are in Nastola,
Finland. Its other production plants are in the Vancouver area of Canada, in the
Shanghai area of China, and in Jyväskylä and Kajaani, Finland. Net sales in 2007
were EUR 111 million and the number of personnel 570. More information on the
company can be found at www.raute.com.
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd., main media, www.raute.com