Raute Corporation - Half Year financial report January 1 - June 30, 2016

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RAUTE CORPORATION HALF YEAR FINANCIAL REPORT JULY 27, 2016 AT 9:00 a.m.


RAUTE CORPORATION – HALF YEAR FINANCIAL REPORT JANUARY 1 – JUNE 30, 2016

- The Group’s net sales, EUR 53.7 million (MEUR 56.4), declined 5 percent on the comparison period. The order intake was EUR 28 million (MEUR 115).
- Operating profit was EUR 2.9 million (MEUR 3.4). The result before taxes was EUR 2.8 million (MEUR 3.5).
- Earnings per share were EUR 0.51 (EUR 0.70).
- Net sales for the second quarter were EUR 27.3 million and operating profit was EUR 1.5 million positive. Order intake, at EUR 16 million, was extremely low. Also the order book at the end of the reporting period was low at EUR 32 million.
- The outlook for financial performance remains unchanged. Raute’s net sales and operating profit for 2016 are expected to remain at the same level as in 2015.


TAPANI KIISKI, PRESIDENT AND CEO: A MAJOR NEW ORDER CAME INTO FORCE IN JULY

In the second quarter, our net sales and operating profit continued to develop as predicted. They corresponded with our order book and order intake. We have every reason to be satisfied with the implementation of projects. There were no surprises.

The economic situation and demand continued at the same level as in previous quarters. According to my assessment, demand has remained relatively good among our customers. A clear indication of this is the level of activity in our spare parts sales. The exceptional market situation that I already presented in our Q1 report has, however, continued. Many of our customers are actively planning even major investments. The level of activity with regard to quotations and negotiations is exceptionally high. Despite this, very few new investment projects are being started up. The volume of order intake was a clear disappointment to us, also in the second quarter.

Our order book fell by the end of the second quarter to a level low enough to cause some concern. The situation has now changed, as expected, during July due to the major new orders that we have received.

The UK’s likely departure from the EU, based on the Brexit referendum result, will probably not have a direct impact on Raute’s business. Raute’s solutions do not have any major customer industries in the UK. The country does, however, have a large wood construction market, on the European scale, and thus the slowing down of the economy may have an impact on customers operating elsewhere. I do not, however, believe in major long-term effects either.

Our current order book and projects which are on the final straight of negotiations will enable us to reach last year’s level both in terms of net sales and operating profit, as estimated earlier. The strengthening of the order book was, however, delayed to the very last minute, which means that the rest of the year will be extremely uneven with regard to both net sales and the accumulation of operating profit. Nevertheless, I believe that our delivery ability, proven in earlier years, will be up to achieving the required final sprint and the result we predicted. This will call for successful work from both us and our partners.


SECOND QUARTER OF 2016

Order intake and order book

The order intake in the second quarter, EUR 16 million (MEUR 31), was at an extremely low level. Technology services accounted for EUR 9 million (MEUR 9) of the order intake.
 
The order book declined during the second quarter, amounting to EUR 32 million at the end of the period (MEUR 100).

Net sales

Second-quarter net sales amounted to EUR 27.3 million (MEUR 31.8). Technology services accounted for 37 percent of the Group’s total net sales (37%).

Result and profitability

Operating profit in the second quarter was EUR 1.5 million positive (MEUR 2.2 positive) and accounted for 6 percent (7%) of net sales. The result was EUR 1.2 million positive (MEUR 1.7 positive), and earnings per share were EUR +0.29 (EUR +0.43).


RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – JUNE 30, 2016

BUSINESS ENVIRONMENT

Market situation in customer industries

Raute’s customers in the plywood and LVL (Laminated Veneer Lumber) industries are engaged in the manufacturing of wood products used in investment projects and are thus highly affected by fluctuations in construction, housing-related consumption, international trade, and transportation.

The situation in the global economy and the financial markets in the early months of 2016 did not change considerably with respect to Raute or Raute’s customer base.

Europe’s economy has continued to strengthen slightly. Russia’s economy continues to be weak although the first signs of stabilization and improvement have been detected. China’s measures to strengthen its economy have still not materialized as increased investments among Raute’s customers. The domestic markets of major South American countries were weak. In part due to weaker currencies, Chilean and Brazilian plywood manufacturers have increased their exports to Europe and North America, which will tighten competition in these markets.

Construction activity has remained at a low level in all market areas, including North America, where the economy in general continues its positive growth and construction shows signs of steady recovery. Due to the market situation described above, Raute’s customers’ order books have remained short, which has not made for an attractive environment for implementing investments.

Demand for wood products technology and technology services

The demand for Raute’s technology and services was conflicting during the period under review. Invitations to tender for projects and even active negotiations were relatively high in number, but very few of these translated into decisions and orders. Negotiations for several mill-scale projects continued actively and have led to the starting up of projects soon after the end of the reporting period. Demand for spare parts and services remained at a good level.


ORDER INTAKE AND ORDER BOOK

Raute serves the wood products industry with a full-service concept based on service that encompasses the entire life cycle of the delivered equipment. Raute’s business consists of project deliveries and technology services. Project deliveries encompass projects from individual machine or production line deliveries to deliveries of all the machines and equipment belonging to a mill’s production process. Additionally, Raute’s full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations, as well as consulting, training and reconditioned machinery.

The order intake during the reporting period, EUR 28 million (MEUR 115), was extremely low. Of the new orders, 39 percent came from Europe (77%), 21 percent from North America (10%), 29 percent from Russia (6%), 7 percent from South America (3%) and 4 percent from Asia-Pacific (4%). The second quarter accounted for EUR 16 million of the order intake.

Order intake in technology services amounted to EUR 19 million (MEUR 19), 1 percent down from the comparison period, due to the low number of investment-type modernization orders.
 
The order book weakened during the second quarter by EUR 12 million, amounting to EUR 32 million at the end of the period (MEUR 100). The order book at the end of the reporting period was at a low level due to the low order intake. At the comparison date June 30, 2015, the order book was at a record high level due to the high order intake volume in the corresponding period in 2015.


COMPETITIVE POSITION

Raute’s competitive position has remained unchanged and is good. Raute’s solutions help customers in securing their delivery and service capabilities throughout the life cycle of the production process or its part. In such investments, the supplier’s overall expertise and extensive and diverse technology offering play a key role. The competitive edge provided by Raute plays a major role when customers select their cooperation partners. Raute’s strong financial position and long-term dedication to serving selected customer industries also enhance its credibility and improve its competitive position as a company that carries out long-term investment projects.


NET SALES

Net sales for the reporting period, EUR 53.7 million (MEUR 56.4), fell 5 percent on the comparison period.

Of the total net sales for the reporting period, Europe accounted for 63 percent (63%), North America for 15 percent (12%), Russia for 15 percent (10%), Asia-Pacific for 5 percent (5%), and South America for 3 percent (10%).

Technology services accounted for 35 percent (39%) and EUR 19 million (MEUR 22) of the Group’s total net sales during the period. Net sales for technology services decreased 14 percent over the comparison period due to the low number of new modernization orders.


RESULT AND PROFITABILITY

Operating profit for the reporting period was EUR 2.9 million positive (MEUR 3.4 positive) and accounted for 5 percent of net sales (6%). Other operating income for the reporting period includes project-business-related insurance compensation of EUR 0.9 million received in the first quarter.

The result before taxes for the reporting period was EUR 2.8 million positive (MEUR 3.5 positive). The result for the reporting period was EUR 2.1 million positive (MEUR 2.8 positive). Earnings per share (undiluted) were EUR 0.51 (EUR 0.70).


CASH FLOW AND BALANCE SHEET

The Group’s financial position remained good. At the end of the reporting period, gearing was 17 percent (-46%) and the equity ratio 59 percent (56%). Fluctuations in balance sheet working capital items and the key figures based on them are due to differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of the project business.

The Group’s cash and cash equivalents amounted to EUR 1.6 million (MEUR 13.8) at the end of the reporting period. Operating cash flow was EUR 5.4 million negative (MEUR 12.8 positive). Cash flow from investment activities was EUR 1.6 million negative (MEUR 0.7 negative). Cash flow from financing activities was EUR 2.1 million positive (MEUR 2.8 negative), including dividend payments of EUR 3.3 million and debt repayments of EUR 0.6 million. A total of EUR 5.6 million in short-term loans was drawn down to finance working capital items.

Interest-bearing liabilities amounted to EUR 6.4 million (MEUR 2.2) at the end of the reporting period.

The parent company Raute Corporation has a EUR 10 million commercial paper program, which allows the company to issue commercial papers maturing in less than one year.

The parent company Raute Corporation is prepared for future working capital needs and has long-term credit facility agreements with three Nordic banks totaling EUR 23.0 million. The main covenants for the credit facility are an equity ratio of >30% and gearing of <100%. Of the credit facilities, EUR 18 million remained unused at the end of the reporting period.


EVENTS DURING THE REPORTING PERIOD

Raute Corporation published stock exchange releases on the following events:

January 18, 2016 Advance information on Raute Group’s 2015 net sales and operating profit
March 31, 2016 Decisions of Raute’s Annual General Meeting
June 3, 2016  Notification pursuant to the Finnish Securities Markets Act, Chapter 9, Section 5 (flagging notification)


RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE

Raute is a leading technology supplier for the plywood and LVL industries and focuses strongly on the development of increasingly efficient, productive and environmentally friendly manufacturing technology and supporting measurement and machine vision applications. Opportunities provided by digitalization are also an essential part of R&D activities.

Research and development costs in the reporting period amounted to EUR 1.6 million (MEUR 1.0), representing 2.9 percent of net sales (1.8%).

Capital expenditure during the period came to EUR 1.7 million (MEUR 0.5) and accounted for 3.1 percent (0.9%) of net sales.

The clearly higher level of both research and development costs and investments results from the timing of projects and the use of resources during a falling order book. The difference compared to the previous year will level out during the second half of the year.


PERSONNEL

During the reporting period, the Group’s personnel grew by 4 people, numbering 650 (640) at the end of the reporting period. Group companies outside Finland accounted for 29 percent (31%) of employees.

Converted to full-time employees (“effective headcount”), the average number of employees was 632 (599) during the reporting period.


SHARES

The number of Raute Corporation’s shares at the end of the reporting period totaled 4,162,578, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,171,417 series A shares (1 vote/share). Series K and A shares confer equal rights to dividends and company assets.

Series K shares can be converted to series A shares under the terms set out in section 3 of the Articles of Association. If an ordinary share is transferred to a new owner who has not previously held series K shares, the new owner must notify the Board of Directors of this in writing and without delay. Other holders of series K shares have the right to redeem the share under the terms specified in Article 4 of the Articles of Association.

Raute Corporation’s series A shares are listed on Nasdaq 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 Nasdaq Helsinki Ltd.

The company’s market capitalization at the end of the reporting period was EUR 54.5 million (MEUR 48.2), with series K shares valued at the closing price of series A shares on June 30, 2016, i.e. EUR 13.10 (EUR 11.95).


STOCK OPTIONS

At the end of the reporting period, altogether 31,900 of the company’s series B 2010 stock options and 35,280 series C stock options were unexercised. The subscription period for Raute Corporation’s series A stock options ended on March 1, 2016.

Raute Corporation’s series B 2010 stock options are listed on Nasdaq Helsinki Ltd under the trading code RUTAVEW210 and series C 2010 stock options under the trading code RUTAVEW310. The subscription period for series B stock options is March 1, 2014 to March 31, 2017 and the subscription period for series C stock options is March 1, 2015 to March 31, 2018. The respective subscription prices were EUR 7.13 and EUR 6.00 and the closing prices at the end of the reporting period were EUR 4.50 and EUR 5.80.


REMUNERATION

The Group has remuneration systems in place that cover the entire personnel.

Share-based incentive plan 2014–2018

The Group has a valid long-term share-based incentive plan based on performance for the years 2014–2018. The plan includes three separate share plans commencing in 2014, 2015 and 2016. Each plan will span three years. Any share-based reward accrued through the incentive plan shall be paid as series A shares. The value of the reward is based on the development of share price.


SHAREHOLDERS

The number of shareholders stood at 2,623 at the beginning of the year and at 3,187 at the end of the reporting period. Series K shares were held by 50 private individuals (50) at the end of the reporting period. Nominee-registered shares accounted for 2.7 percent (3.3%) of shares. On June 2, 2016, the company received a flagging notification pursuant to the Finnish Securities Markets Act, Chapter 9, Section 5, according to which Göran Sundholm’s holding of the total number of Raute Corporation’s shares was less than 15 per cent when Raute Corporation’s share capital increase was marked in the Trade Register on May 9, 2016. Göran Sundholm’s holding of the company’s shares was 14.98% and 2.71% of the votes after the flagging threshold was crossed.

The Board of Directors, the President and CEO as well as the Executive Board held altogether 237,979 company shares, equaling 5.7 percent (5.7%) of the company shares and 11.2 percent (11.2%) of the votes at the end of the reporting period.


CORPORATE GOVERNANCE

As of January 1, 2016, Raute Corporation complies with the Finnish Corporate Governance Code 2015 for listed companies issued by the Securities Market Association on October 1, 2015.


EXECUTIVE BOARD

Raute Group’s Executive Board and the members’ areas of responsibility as of March 14, 2016:
Tapani Kiiski, President and CEO, Chairman – Sales
Arja Hakala, Group Vice President, Finance, CFO – Finance and administration
Marko Hjelt, Group Vice President, Human Resources – Human resources and competence development
Mika Hyysti, Group Vice President, Technology – Technology, products and R&D
Timo Kangas, Group Vice President, EMEA – Market area EMEA
Antti Laulainen, Group Vice President, Technology Services and Sales Management – Technology services and sales management
Petri Strengell, Group Vice President, Supply Chain – Sourcing and production.


ANNUAL GENERAL MEETING 2016

Raute Corporation’s Annual General Meeting was held on March 31, 2016. A stock exchange release on the decisions of the Annual General Meeting was published on March 31, 2016.


DISTRIBUTION OF PROFIT FOR THE 2015 FINANCIAL YEAR

The company distributed a dividend of EUR 0.80 per share for the 2015 financial year. The total amount of dividends is EUR 3.3 million, series A shares accounting for EUR 2,509,597.60 (EUR 1,209,626,80) and series K shares for EUR 792,928.80 (EUR 396,464.40). The dividend payment date was April 12, 2016.

BOARD OF DIRECTORS AND BOARD COMMITTEES

At the General Meeting on March 31, 2016, Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio Vice-Chair, and Mr. Joni Bask, Ms. Päivi Leiwo, Mr. Pekka Suominen, and Mr. Patrick von Essen were elected as Board members. The Board of Directors’ term of office will continue until the 2017 Annual General Meeting.

Based on the evaluation of independence, Chairman Mr. Erkki Pehu-Lehtonen and members Mr. Joni Bask, Mr. Patrick von Essen, Ms. Päivi Leiwo, and Mr. Pekka Suominen are independent of the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Patrick von Essen and Ms. Päivi Leiwo) are independent of major shareholders.

Raute Corporation’s Board of Directors has an Appointments Committee. The Appointments Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Pekka Suominen. The Audit and Working Committees’ tasks are handled by the Board of Directors.


EVENTS AFTER THE REPORTING PERIOD

On July 20, 2016, Raute Corporation received orders from the Metsä Wood, business area of Metsä Group, worth altogether approximately EUR 25 million. The orders were connected to the investment program that Metsä Group decided on and announced on June 8, 2016. The orders are made up of an LVL production line for Metsä Wood’s LVL plant in Lohja and machinery and equipment for a birch veneer production plant to be built in Äänekoski. The installation and commissioning of the new LVL line in Lohja will begin in the first quarter of 2017. In Äänekoski, the installation and commissioning of the birch veneer production line will begin in the final quarter of 2017. The received orders are not included in the June 30, 2016 order book.

Negotiations and planning involving the other parts of the projects announced by Metsä Group on June 8 will continue actively.


BUSINESS RISKS

Risks in the near term continue to be driven by the uncertainty relating to the global economic situation and the development of the financial markets, as well as by international political instability. During the reporting period, there were no essential changes in the business risks described in the 2015 Board of Directors’ Report and Financial Statements.

The most significant risks for Raute in the near term are related to major mill-scale projects, which are in the implementation phase, in accordance with the schedule determined in contract terms, and the development of the order intake.


OUTLOOK FOR 2016

Based on the existing order book and the prevailing market situation, Raute’s net sales and operating profit for 2016 are expected to remain at the same level as in 2015.


TABLES SECTION OF THE INTERIM REPORT

 

The figures for the financial year 2015 presented in the tables section of the interim report have been audited. 
The presented interim financial report figures have not been audited.      
             
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1.4.–30.6. 1.4.–30.6. 1.1.–30.6. 1.1.–30.6. 1.1.–31.12.
(EUR 1 000) Note 2016 2015 2016 2015 2015
             
NET SALES 3,4,5 27 306 31 759 53 733 56 366 127 278
             
Change in inventories of finished goods and work in progress   60 -532 977 -219 -313
             
Other operating income   73 314 1 034 354 393
             
Materials and services   -13 513 -16 197 -27 776 -28 053 -67 992
Employee benefits expense 13 -8 966 -8 878 -18 097 -17 018 -34 310
Depreciation and amortization   -573 -556 -1 089 -1 103 -2 125
Impairment   - -160 - -160 -1 370
Other operating expenses   -2 871 -3 529 -5 880 -6 740 -13 441
Total operating expenses     -25 923 -29 320 -52 842 -53 074 -119 238
             
OPERATING PROFIT   1 516 2 222 2 902 3 427 8 120
% of net sales   6 7 5 6 6
             
Financial income   -52 -10 41 256 342
Financial expenses   35 -61 -187 -173 -343
             
PROFIT BEFORE TAX   1 499 2 151 2 756 3 510 8 118
% of net sales   5 7 5 6 6
             
Income taxes   -274 -400 -628 -676 -1 435
             
PROFIT FOR THE PERIOD   1 224 1 750 2 129 2 834 6 684
% of net sales   4 6 4 5 5
             
Other comprehensive income items:          
Items that will not be reclassified to profit or loss        
Remeasurement of defined benefit obligations - 2 - 2 2
             
Items that may be subsequently reclassified to profit or loss          
Exchange differences on translating foreign operations 46 -29 286 192 88
Cash flow hedges     -129 133 42 133 8
Comprehensive income items for the period, net of tax -83 107 328 328 98
             
COMPREHENSIVE PROFIT FOR THE PERIOD 1 141 1 857 2 456 3 161 6 782
             
Profit for the period attributable to          
Equity holders of the Parent company 1 224 1 750 2 129 2 834 6 684
             
Comprehensive profit for the period attributable to        
Equity holders of the Parent company 1 141 1 857 2 456 3 161 6 782
             
Earnings per share for profit attributable          
to Equity holders of the Parent company, EUR        
Undiluted earnings per share   0,29 0,43 0,51 0,70 1,65
Diluted earnings per share   0,29 0,43 0,51 0,70 1,64
             
Shares, 1 000 pcs            
Adjusted average number of shares 4 147 4 025 4 136 4 020 4 051
Adjusted average number of shares diluted 4 147 4 036 4 161 4 031 4 079

  

           
CONSOLIDATED BALANCE SHEET   30.6. 30.6. 31.12.
(EUR 1 000) Note   2016 2015 2015
ASSETS          
Non-current assets          
Intangible assets 8   1 393 2 950 1 609
Property, plant and equipment 8   9 287 7 847 8 529
Other financial assets     490 500 490
Deferred tax assets     181 188 172
Total non-current assets     11 351 11 484 10 799
           
Current assets          
Inventories     9 565 9 368 9 577
Accounts receivables and other receivables 5   33 947 24 205 34 722
Income tax receivable     123 - 123
Cash and cash equivalents     1 573 13 799 6 538
Total current assets     45 209 47 373 50 960
           
TOTAL ASSETS     56 559 58 857 61 760
           
EQUITY AND LIABILITIES          
Equity attributable to Equity holders of the Parent company          
Share capital     8 256 8 062 8 223
Share issue     - 101 -
Fair value reserve and other reserves   6 530 5 598 6 008
Exchange differences     594 412 308
Retained earnings     11 858 8 477 8 477
Profit for the period     2 129 2 834 6 684
Share of shareholders' equity that belongs to the owners of the Parent company     29 367 25 482 29 700
Total equity     29 367 25 482 29 700
           
Non-current liabilities          
Non-current provisions     514 332 455
Deferred tax liability     78 146 241
Non-current interest-bearing liabilities 9   - 625 -
Total non-current liabilities     593 1 103 696
           
Current liabilities          
Current provisions     1 209 2 256 1 409
Current interest-bearing liabilities 9   6 447 1 537 1 535
Current advance payments received 5   6 965 13 329 11 024
Income tax liability     496 713 11
Trade payables and other liabilities   11 482 14 436 17 386
Total current liabilities     26 599 32 271 31 364
           
Total liabilities     27 192 33 375 32 059
           
TOTAL EQUITY AND LIABILITIES     56 559 58 857 61 760
           
           
CONSOLIDATED STATEMENT OF CASH FLOWS 1.1.–30.6. 1.1.–30.6. 1.1.–31.12.
(EUR 1 000)     2016 2015 2015
           
CASH FLOW FROM OPERATING ACTIVITIES      
Proceeds from customers     47 572 61 975 122 089
Other operating income     1 034 354 371
Payments to suppliers and employees   -53 716 -50 015 -114 092
Cash flow before financial items and taxes   -5 109 12 314 8 368
Interest paid from operating activities   -57 -66 -115
Dividends received from operating activities   114 97 97
Interest received from operating activities   1 1 5
Other financing items from operating activities   -92 -111 105
Income taxes paid from operating activities   -273 546 -983
NET CASH FLOW FROM OPERATING ACTIVITIES (A) -5 416 12 781 7 477
           
CASH FLOW FROM INVESTING ACTIVITIES        
Purchase of property, plant and equipment and intangible assets -1 662 -696 -2 395
Proceeds from sale of property, plant and equipment and intangible assets 26 26 66
NET CASH FLOW FROM INVESTING ACTIVITIES (B) -1 637 -670 -2 329
           
CASH FLOW FROM FINANCING ACTIVITIES        
Proceeds from issue of share capital   394 199 607
Proceeds from current borrowings   5 607 - -
Repayments of current borrowings   -625 - -
Repayments of non-current borrowings   - -625 -1 250
Dividends paid and repayment of equity   -3 303 -2 409 -2 409
NET CASH FLOW FROM FINANCING ACTIVITIES (C) 2 073 -2 835 -3 052
           
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) -4 980 9 276 2 096
increase (+)/decrease (-)          
           
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD* 6 538 4 431 4 431
NET CHANGE IN CASH AND CASH EQUIVALENTS -4 980 9 276 2 096
EFFECTS OF EXCHANGE RATE CHANGES ON CASH 15 93 11
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* 1 573 13 799 6 538
           
CASH AND CASH EQUIVALENTS IN THE BALANCE      
SHEET AT THE END OF THE PERIOD*        
Cash and cash equivalents     1 573 13 799 6 538
TOTAL     1 573 13 799 6 538

  *Cash and cash equivalents comprise cash and bank receivables, which will be due within the following three months' period.

 

             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY    
  Share Share Invested non-restricted Other Exchange Retained
(EUR 1 000) capital issue equity reserve reserves differences earnings
EQUITY at Jan. 1, 2016 8 223 0 4 950 1 058 308 15 161
Comprehensive profit for the period          
Profit for the period - - - - - 2 129
Other comprehensive income items:          
Hedging reserve - - - 42 - -
Exchange differences on translating foreign operations - - - - 286 -
Total comprehensive profit for the period 0 0 0 42 286 2 129
Transactions with owners            
Share-options exercised 33 - 361 - - -
Equity-settled share-based            
transactions - - - 118 - -
Dividends and repayment of equity - - - - - -3 303
Total transactions with owners 33 0 361 118 0 -3 303
EQUITY at June 30, 2016 8 256 0 5 311 1 219 594 13 987
             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)      
  To the owners of        
(EUR 1 000) the Parent company TOTAL      
EQUITY at Jan. 1, 2016 29 700   29 700      
Comprehensive profit for the period          
Profit for the period 2 129   2 129      
Other comprehensive income items:          
Hedging reserve 42   42      
Exchange differences on translating foreign operations 286   286      
Total comprehensive profit for the period 2 457   2 457      
Transactions with owners            
Share-options exercised 394   394      
Equity-settled share-based            
transactions 118   118      
Dividends and repayment of equity -3 303   -3 303      
Total transactions with owners -2 790   -2 790      
EQUITY at June 30, 2016 29 367   29 367      
             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY    
  Share Share Invested non-restricted Other Exchange Retained
(EUR 1 000) capital issue equity reserve reserves differences earnings
EQUITY at Jan. 1, 2015 8 031 0 5 339 662 220 10 083
Comprehensive profit for the period          
Profit for the period - - - - - 2 834
Other comprehensive income items:          
Hedging reserve - - - 133 - -
Exchange differences on translating foreign operations - - - - 192 -
Total comprehensive profit for the period 0 0 0 133 192 2 834
Transactions with owners            
Share-options exercised 31 101 68 - - -
Equity-settled share-based            
transactions - - - 198 - -
Dividends and repayment of equity - - -803 - - -1 606
Total transactions with owners 31 101 -735 198 0 -1 606
EQUITY at June 30, 2015 8 062 101 4 604 994 412 11 310
             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)      
  To the owners of        
(EUR 1 000) the Parent company TOTAL      
EQUITY at Jan. 1, 2015 24 334   24 334      
Comprehensive profit for the period            
Profit for the period 2 834   2 834      
Other comprehensive income items:          
Hedging reserve 133   133      
Exchange differences on translating foreign operations 192   192      
Total comprehensive profit for the period 3 159   3 159      
Transactions with owners            
Share-options exercised 199   199      
Equity-settled share-based            
transactions 198   198      
Dividends and repayment of equity -2 409   -2 409      
Total transactions with owners -2 011   -2 011      
EQUITY at June 30, 2015 25 482   25 482      

  

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


1. General information
Raute Group is a globally operating technology company. Raute's customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL. Raute's technology offering covers machinery and equipment for the entire production process. Raute's full-service concept is based on product life-cycle management. In addition to a broad range of machines and equipment, our solutions cover technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute's head office is located in Nastola, Lahti municipality, Finland. Its other production plants are in Kajaani, in the Vancouver area in Canada, and in the Shanghai area in China. The company's sales network has a global reach.

Raute 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 Helsinki Ltd, under Industrials. Raute Corporation is domiciled in Lahti. The address of its registered office is Rautetie 2, FI-15550 Nastola, and its postal address is P.O. Box 69, FI-15551 Nastola.

Raute Corporation's consolidated financial statement information 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 July 27, 2016 reviewed the Interim financial report for January 1 - June 30, 2016, and approved it to be published in compliance with this release.

2. Accounting principles
Raute Corporation's Interim financial report for January 1 - June 30, 2016 has been prepared in accordance with standard IAS 34 Interim Financial Reporting. The Interim financial report does not contain full notes and other information presented in the financial
statements, and therefore the Interim financial report should be read in conjunction with the Financial statements published for 2015.

Raute Corporation's Interim financial report for January 1 - June 30, 2016 has been prepared in accordance with the International Financial Reporting Standards, IFRS, accepted for application in the EU. Preparations have complied with the IAS and IFRS
standards, as well as SIC and IFRIC interpretations, effective on June 30, 2016. The notes to the Interim financial statements also comply with Finnish accounting legislation.

The Interim financial report has been prepared according to the same accounting principles as those applied in the Annual financial statement for 2015.

All of the figures presented in the Interim financial report are in thousand euro, unless otherwise stated. Due to the rounding of the figures in the financial statement tables, the sums of figures may deviate from the sum total presented in the table. Figures in parentheses refer to the corresponding figures in the comparison period.

In the preparation of the Interim financial report in conformity with IFRS standardsthe management has made forward-looking accounting estimates and assumptions. Because the estimates and assumptions are based on management's best
knowledge at the reporting date, the actual results may differ from these estimates.

3. Segment information
Operational segment

Continuing operations of Raute Group belong to the wood products technology segment.

Due to Raute's business model, operational nature and administrative structure, the operational segment to be reported as wood products technology segment is comprised of the whole Group and the information on the segment is consistent with
that of the Group. Segment reporting follows the principles of presentation of the consolidated financial statements.

             
  30.6.   30.6.   31.12.  
Wood products technology 2016   2015   2015  
Net sales 53 733   56 366   127 278  
Operating profit  2 902   3 427   8 120  
Assets 56 559   58 857   61 760  
Liabilities 27 192   33 375   32 059  
Capital expenditure 1 678   511   2 506  
             
Assets of the wood products technology 30.6.   30.6.   31.12.  
segment by geographical location 2016 % 2015 % 2015 %
Finland 46 884 83 47 759 81 52 488 85
North America 4 799 8 4 626 8 3 655 6
China 3 704 7 4 794 8 4 572 7
Russia 852 2 1 307 2 732 1
South America 177 0 216 0 202 0
Other 144 0 154 0 112 0
TOTAL 56 559 100 58 857 100 61 760 100
             
Capital expenditure of the wood products 30.6.   30.6.   31.12.  
technology segment by geographical location 2016 % 2015 % 2015 %
Finland 1 567 93 432 85 2 388 95
North America 87 5 36 7 61 2
China 19 1 43 8 57 2
Russia - - - - - -
South America 1 0 - - 1 0
Other 4 0 - - - -
TOTAL 1 678 100 511 100 2 506 100

  

4. Net sales
The main part of the net sales is comprised of project deliveries and modernizations in technology services, which are treated as long-term projects. The rest of the net sales is comprised of technology services provided to the wood products industry such as spare parts and maintenance services as well as services provided to the development of customers' business.

Project deliveries and modernizations related to technology services include both product and service sales, making it impossible to give a reliable presentation of the breakdown of the Group's net sales into purely product and service sales.

Large delivery projects can temporarily increase the shares of various customers of the Group’s net sales to more than ten percent. At the end of the period, the Group had three customers (1), whose customized share of the Group's net sales
temporarily exceeded ten percent. The sales share of the customers was 45 percent.

 

  1.1.–30.6.   1.1.–30.6.   1.1.–31.12.  
Net sales by market area 2016 % 2015 % 2015 %
EMEA (Europe and Africa) 33 709 63 35 301 63 82 632 66
NAM (North America) 8 067 15 6 511 12 16 962 13
CIS (Russia) 7 885 15 5 633 10 11 841 9
APAC (Asia-Pacific) 2 504 5 3 006 5 6 906 5
LAM (South America) 1 568 3 5 915 10 8 937 7
TOTAL 53 733 100 56 366 100 127 278 100
             

  Finland accounted for 16 percent (14 %) of net sales.

 

           
      30.6. 30.6. 31.12.
5. Long-term projects     2016 2015 2015
Net sales          
Net sales by percentage of completion   43 688 45 239 104 251
Other net sales     10 045 11 127 23 027
TOTAL     53 733 56 366 127 278
           
Project revenues entered as income from currently undelivered        
long-term projects recognized by percentage of completion    112 136 89 170 112 329
           
Amount of long-term project revenues not yet entered as income (order book) 30 885 99 086 59 210
           
Projects for which the value by percentage of completion exceeds    
advance payments invoiced           
- aggregate amount of costs incurred and recognized profits less recognized losses 98 951 71 269 72 948
- advance payments received     72 963 56 910 46 415
Gross amount due from customers   25 987 14 360 26 533
           
Projects for which advance payments invoiced exceed the value by    
percentage of completion            
- aggregate amount of costs incurred and recognized profits less recognized losses 15 610 17 803 36 823
- advance payments received     22 506 32 204 46 294
Gross amount due to customers     6 896 14 401 9 471
           
Advance payments included in the current liabilities in the balance sheet    
Gross amount due to customers     6 896 14 401 9 471
Other advance payments received, not under percentage of completion 69 -1 072 1 553
Total     6 965 13 329 11 024
           
Specification of combined asset and liability items                  
Advance payments paid     157 1 253 1 367
Advance payments included in inventories in the balance sheet 157 1 253 1 367
           
           
      30.6. 30.6. 31.12.
6. Number of personnel, persons   2016 2015 2015
Effective, on average     632 599 614
In books, on average     641 608 624
In books, at the end of the period     650 640 646
- of which personnel working abroad   187 199 205
           
      30.6. 30.6. 31.12.
7. Research and development costs   2016 2015 2015
Research and development costs for period   -1 559 -1 040 -3 092
Amortization of previously capitalized development costs -113 -320 -104
Development costs recognized as an asset in the balance sheet - 138 220
Research and development costs entered as expense for the period -1 671 -1 222 -2 976
Impairment of previously capitalized development costs - - -1 020
Research and development costs entered as expense for the period -1 671 -1 222 -3 996
           
           
8. Changes in Intangible assets and in Property,  30.6. 30.6. 31.12.
plant and equipment     2016 2015 2015
Intangible assets          
Carrying amount at the beginning of the period   14 035 13 826 13 826
Exchange rate differences     -39 68 60
Additions     79 207 346
Disposals     - - -350
Reclassification between items     34 102 152
Carrying amount at the end of the period   14 109 14 203 14 035
           
Accumulated depreciation and amortization at the beginning of the period -12 426 -10 334 -10 334
Exchange rate differences     27 -37 -32
Accumulated depreciation and amortization of disposals and reclassifications - -350 -
Depreciation and amortization for the period   -316 -533 -690
Impairment     - - -1 370
Accumulated depreciation and amortization at the end of the period -12 715 -11 253 -12 426
           
Book value of Intangible assets, at the beginning of the period 1 609 3 492 3 492
Book value of Intangible assets, at the end of the period 1 393 2 950 1 609
           
Property, plant and equipment          
Carrying amount at the beginning of the period   45 463 43 944 43 944
Exchange rate differences     309 280 -458
Additions     1 599 654 2 160
Disposals     -8 -14 -30
Reclassification between items     -34 -102 -152
Carrying amount at the end of the period   47 330 44 762 45 463
           
Accumulated depreciation and amortization at the beginning of the period -36 934 -36 014 -36 014
Exchange rate differences     -337 -171 502
Depreciation and amortization for the period   -772 -731 -1 422
Accumulated depreciation and amortization at the end of the period -38 043 -36 915 -36 934
           
Book value of Property, plant and equipment, at the beginning of the period 8 529 7 930 7 930
Book value of Property, plant and equipment, at the end of the period 9 287 7 847 8 529
           
      30.6. 30.6. 31.12.
9. Interest-bearing liabilities     2016 2015 2015
Non-current interest-bearing liabilities recognized at amortized cost - 625 -
Current interest-bearing liabilities     6 447 1 537 1 535
TOTAL     6 447 2 162 1 535
           
Maturities of the interest-bearing financial liabilities at June 30, 2016    
Financial liability     Current Non-current Total
Loans from financial institutions     6 447 - 6 447
Total     6 447 - 6 447
           
      30.6. 30.6. 31.12.
10. Pledged assets and contingent liabilities 2016 2015 2015
On behalf of the Parent company        
Business mortgages     3 302 7 297 7 869
           
Loans from financial institutions     3 625 1 875 1 250
Business mortgages     3 625 1 875 1 250
           
Mortgage agreements on behalf of subsidiaries        
Loans from financial institutions     2 822 287 285
Other obligations     1 315 540 568
Business mortgages     3 073 828 881
           
Commercial bank guarantees on behalf of the Parent company and subsidiaries     7 897 21 706 11 546
           
Other own obligations          
Rental liabilities maturing within one year   869 904 903
Rental liabilities maturing in one to five years   855 1 743 1 301
Total     1 724 2 647 2 204
           
11. Related party transactions          
No loans have been granted to the company's management.      
           
No pledges have been given or other commitments made on behalf of the company's management and shareholders.     
           
      30.6. 30.6. 31.12.
12. Derivatives     2016 2015 2015
Nominal values of forward contracts in        
foreign currency           
Economic hedging          
- Related to financing     - 166 -
- Related to the hedging of net sales   3 125 4 546 2 969
Hedge accounting          
- Related to the hedging of net sales   1 763 4 239 2 679
           
Fair values of forward contracts in foreign currency       
Economic hedging          
- Related to financing     - -23 -
- Related to the hedging of net sales   -77 -124 -89
Hedge accounting          
- Related to the hedging of net sales   50 121 -47
           

13. Share-based payments
A total of 50 870 Raute's series A shares have been subscribed for with Raute's stock options 2010 A, 2010 B and 2010 C during the reporting period. The new shares have been registered in the Trade Register on February 24, 2016 and May 9, 2016.

On June 30, 2016, the company's share capital is EUR 8 256 316 and the number of company's shares 4 162 578 pieces.

An expense of EUR 118 thousand was recognized for the share rewards to the income statement during the reporting period.

During the interim period, no share rewards were delivered based on the long-term share-based incentive program 2014-2018 directed to the top management.

14. Distribution of the profit for the financial year 2015
Raute Corporation's Annual General Meeting held on March 31, 2016, decided, according to the Board of Directors' proposal, to distribute a dividend of EUR 0,80 per share to be paid for series A and K shares, a total of EUR 3 303  thousand. The dividend
payment date was April 12, 2016.

15. Financial assets and liabilities that are measured at fair value
At the end of the reporting period June 30, 2016,  the fair value of the financial assets categorized at fair value on hierarchy level 3 was EUR 500 thousand. The methods of fair value determination correspond the valuation principles presented in the Annual
financial statements for 2015. There were no transfers between the hierarchy levels 1 and 2 during the reporting period.

           
16. Exchange rates used          
      1.1.–30.6. 1.1.–30.6. 1.1.–31.12.
Income statement, euros     2016 2015 2015
CNY (Chinese juan)     7,3132 6,9411 6,9733
RUB (Russian rouble)     78,4122 64,6024 68,0090
CAD (Canadian dollar)     1,4854 1,3772 1,4177
USD (US dollar)     1,1155 1,1159 1,1097
SGD (Singapore dollar)     1,5402 1,5059 1,5251
CLP (Chilean peso)     769,3287 692,3979 725,3048
           
      30.6. 30.6. 31.12.
Balance sheet, euros     2016 2015 2015
CNY (Chinese juan)     7,4023 6,9587 7,0223
RUB (Russian rouble)     71,5200 62,3550 80,6736
CAD (Canadian dollar)     1,4384 1,3839 1,5116
USD (US dollar)     1,1102 1,1189 1,0887
SGD (Singapore dollar)     1,4957 1,5068 1,5417
CLP (Chilean peso)     764,6714 706,9221 765,9751
           

  

           
FINANCIAL DEVELOPMENT     30.6. 30.6. 31.12.
      2016 2015 2015
Change in net sales, %     -4,7 59,5 35,4
Exported portion of net sales, %     84,4 86,2 76,3
Return on investment (ROI), %     17,6 25,8 28,5
Return on equity, ROE, %     14,4 22,8 24,7
Interest-bearing net liabilities, EUR million   4,9 -11,6 -5,0
Gearing, %     16,6 -45,7 -16,8
Equity ratio, %     59,2 56,0 58,5
           
Gross capital expenditure, EUR million   1,7 0,5 2,5
% of net sales     3,1 0,9 2,0
           
Research and development costs, EUR million   1,6 1,0 3,1
% of net sales     2,9 1,8 2,4
           
Order book, EUR million     32 100 60
Order intake, EUR million     28 115 145
           
           
SHARE-RELATED DATA     30.6. 30.6. 31.12.
      2016 2015 2015
Earnings per share, (EPS), undiluted, EUR   0,51 0,70 1,65
Earnings per share, (EPS), diluted, EUR   0,51 0,70 1,64
Equity to share, EUR     7,06 6,33 7,26
Dividend per series A share, EUR   - - 0,80
Dividend per series K share, EUR   - - 0,80
Dividend per profit, %     - - 48,4
Effective dividend return, %     - - 5,7
Repayment of equity from invested non-restricted equity reserve, EUR - - -
           
Development in share price (series A shares)      
Lowest share price for the period, EUR   12,06 7,17 7,17
Highest share price for the period, EUR   15,30 13,59 14,25
Average share price for the period, EUR   13,67 11,11 11,95
Share price at the end of the period, EUR   13,10 11,95 14,12
           
Market value of capital stock          
- Series K shares, EUR million*     13,0 11,8 14,0
- Series A shares, EUR million     41,5 36,3 44,1
Total, EUR million     54,5 48,2 58,1
*Series K shares valued at the value of series A shares.            
           
Trading of the company's shares (series A shares)      
Trading of shares, pcs     504 948 667 187 1 094 902
Trading of shares, EUR million     6,9 7,4 13,1
           
Number of shares          
- Series K shares, ordinary shares (20 votes, share) 991 161 991 161 991 161
- Series A shares (1 vote/share)     3 171 417 3 039 567 3 120 547
Total     4 162 578 4 030 728 4 111 708
           
Number of shares, weighted average, 1 000 pcs 4 136 4 020 4 051
Number of shares, diluted, 1 000 pcs   4 161 4 031 4 139
           
Number of shareholders     3 187 2 158 2 623
           

  

             
DEVELOPMENT OF Q 3 Q 4 Q 1 Q 2 Rolling Rolling
QUARTERLY RESULTS 2015 2015 2016 2016 1.7.2015 1.7.2014
(EUR 1 000)        
          30.6.2016 30.6.2015
             
NET SALES 31 391 39 521 26 427 27 306 124 645 115 037
             
Change in inventories of finished         
goods and work in progress 1 161 -1 254 917 60 883 1 121
             
Other operating income 7 32 962 73 1 073 393
             
Materials and services -18 623 -21 316 -14 264 -13 513 -67 715 -62 478
Employee benefits expense -8 357 -8 935 -9 131 -8 966 -35 389 -32 158
Depreciation and amortization -565 -296 -515 -573 -1 949 -2 341
Impairment - -1 370 - - -1 370 -
Other operating expenses -3 102 -3 600 -3 009 -2 871 -12 581 -12 255
Total operating expenses -30 646 -35 518 -26 919 -25 923 -119 006 -109 232
             
OPERATING PROFIT  1 912 2 781 1 386 1 516 7 595 7 319
% of net sales 6 7 5 6 6 6
             
Financial income -42 129 93 -52 128 592
Financial expenses -99 -72 -222 35 -358 -303
             
PROFIT BEFORE TAX 1 772 2 837 1 258 1 499 7 365 7 608
% of net sales 6 7 5 5 6 7
             
Income taxes -300 -459 -353 -274 -1 386 -1 331
             
PROFIT FOR THE PERIOD 1 472 2 378 904 1 224 5 979 6 277
% of net sales 5 6 3 4 5 5
             
Attributable to            
Equity holders of the Parent company 1 472 2 378 904 1 224 5 979 6 277
             
Earnings per share, EUR            
Undiluted earnings per share 0,36 0,58 0,22 0,29 1,45 1,56
Diluted earnings per share 0,36 0,57 0,22 0,29 1,44 1,55
             
Shares, 1 000 pcs            
Adjusted average number of shares 4 053 4 091 4 124 4 147 4 136 4 020
Adjusted average number of          
shares diluted 4 065 4 139 4 151 4 147 4 161 4 031
             
FINANCIAL DEVELOPMENT QUARTERLY Q 3 Q 4 Q 1 Q 2 Rolling Rolling
  2015 2015 2016 2016 1.7.2015 1.7.2014
         
          30.6.2016 30.6.2015
Order intake during the period, EUR million 14 16 13 16 59 160
Order book at the end of the period, EUR million 83 60 44 32 32 100
             
20 LARGEST SHAREHOLDERS AT JUNE 30, 2016 Total number % of total Total number % of voting
By number of shares Number of series K shares Number of series A shares of shares shares of votes rights
1. Sundholm Göran Wilhelm - 623 423 623 423 15,0 623 423 2,7
2. Mandatum Life Unit-Linked - 162 760 162 760 3,9 162 760 0,7
3. Laakkonen Mikko - 119 919 119 919 2,9 119 919 0,5
4. Suominen Pekka 48 000 62 429 110 429 2,7 1 022 429 4,4
5. Siivonen Osku Pekka 50 640 53 539 104 179 2,5 1 066 339 4,6
6. Kirmo Kaisa Marketta 55 680 48 341 104 021 2,5 1 161 941 5,1
7. Suominen Tiina Sini-Maria 48 000 54 316 102 316 2,5 1 014 316 4,4
8. Relander Harald Bertel - 85 000 85 000 2,0 85 000 0,4
9. Keskiaho Kaija Leena 33 600 51 116 84 716 2,0 723 116 3,1
10. Mustakallio Mika Tapani 57 580 26 270 83 850 2,0 1 177 870 5,1
11. Särkijärvi Anna Riitta 60 480 22 009 82 489 2,0 1 231 609 5,4
12. Mustakallio Kari Pauli 60 480 500 60 980 1,5 1 210 100 5,3
13. Mustakallio Marja Helena 43 240 16 047 59 287 1,4 880 847 3,8
14. Särkijärvi Timo Juha 12 000 43 256 55 256 1,3 283 256 1,2
15. Särkijärvi-Martinez Anu Riitta 12 000 43 256 55 256 1,3 283 256 1,2
16. Mustakallio Ulla Sinikka 53 240 - 53 240 1,3 1 064 800 4,6
17. Suominen Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
18. Keskinäinen työeläkevakuutusyhtiö Varma - 51 950 51 950 1,2 51 950 0,2
19. Suominen Jussi Matias 48 000 - 48 000 1,2 960 000 4,2
20. Keskiaho Ilta Marjaana 24 780 19 094 43 874 1,1 514 694 2,2
TOTAL 632 680 1 511 189 2 143 869 51,5 14 614 789 61,6
             
      Total number % of total Total number % of voting
By number of votes Number of series K shares Number of series A shares of shares shares of votes rights
1. Särkijärvi Anna Riitta 60 480 22 009 82 489 2,0 1 231 609 5,4
2. Mustakallio Kari Pauli 60 480 500 60 980 1,5 1 210 100 5,3
3. Mustakallio Mika Tapani 57 580 26 270 83 850 2,0 1 177 870 5,1
4. Kirmo Kaisa Marketta 55 680 48 341 104 021 2,5 1 161 941 5,1
5. Siivonen Osku Pekka 50 640 53 539 104 179 2,5 1 066 339 4,6
6. Mustakallio Ulla Sinikka 53 240 - 53 240 1,3 1 064 800 4,6
7. Suominen Pekka 48 000 62 429 110 429 2,7 1 022 429 4,4
8. Suominen Tiina Sini-Maria 48 000 54 316 102 316 2,5 1 014 316 4,4
9. Suominen Jussi Matias 48 000 - 48 000 1,2 960 000 4,2
10. Mustakallio Marja Helena 43 240 16 047 59 287 1,4 880 847 3,8
11. Mustakallio Risto Knut kuolinpesä 42 240 - 42 240 1,0 844 800 3,7
12. Keskiaho Kaija Leena 33 600 51 116 84 716 2,0 723 116 3,1
13. Sundholm Göran Wilhelm - 623 423 623 423 15,0 623 423 2,7
14. Keskiaho Vesa Heikki 29 680 - 29 680 0,7 593 600 2,6
15. Keskiaho Juha-Pekka 27 880 5 816 33 696 0,8 563 416 2,5
16. Kirmo Lasse Antti 27 645 2 967 30 612 0,7 555 867 2,4
17. Suominen Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
18. Keskiaho Ilta Marjaana 24 780 19 094 43 874 1,1 514 694 2,2
19. Kultanen Leea Annikka 22 405 8 031 30 436 0,7 456 131 2,0
20. Molander Sole 20 160 - 20 160 0,5 403 200 1,8
TOTAL 778 690 1 021 862 1 800 552 43,3 16 595 662 72,2
             

 

MANAGEMENT'S AND PUBLIC INSIDERS' SHAREHOLDING AND NOMINEE-REGISTERED SHARES
    Number of series K shares Number of series A shares Total number of shares % of total shares Total number of votes % of total voting rights
Management's and Public insiders' holding at June 30, 2016        
The Board of Directors, The Group's President and CEO and Executive Board*   122 830 115 149 237 979 5,7 2 571 749 11,2
TOTAL   122 830 115 149 237 979 5,7 2 571 749 11,2
               
*The figures include the holdings of their own, minor children and control entities.      
               
Nominee-registered shares at June 30, 2016 - 111 342 111 342 2,7 111 342 0,5

  
 

RAUTE CORPORATION
Board of Directors


BRIEFING ON JULY 27, 2016 AT 2 P.M.:
A briefing will be organized for analysts, investors and the media on July 27, 2016 at 2 p.m. at Scandic Simonkenttä Hotel, Tapiola cabinet, Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Ms. Arja Hakala, CFO.

NEXT INTERIM REPORT:
Raute Corporation’s interim report January 1–September 30, 2016 will be published on Wednesday, October 26, 2016.

FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3500, mobile phone +358 400 814 148
Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile phone +358 400 710 387

DISTRIBUTION:
Nasdaq Helsinki Ltd, main media, www.raute.com

RAUTE IN BRIEF:

Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the customer’s entire production process. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in the Nastola area of Lahti, Finland. The company’s other production plants are in Kajaani, Finland, the Vancouver area of Canada and in the Shanghai area of China. Raute’s net sales in 2015 were EUR 127.3 million. The Group’s headcount at the end of 2015 was 646.

More information about the company can be found at www.raute.com.