Raute Corporation - Half-Year Report January 1 - June 30, 2018

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RAUTE CORPORATION HALF-YEAR REPORT JULY 31, 2018 AT 9:00 a.m.


RAUTE CORPORATION - HALF-YEAR REPORT JANUARY 1-JUNE 30, 2018

- The Group’s net sales, EUR 78.9 million (MEUR 71.6), increased 10% on the comparison period. Order intake was EUR 96 million (MEUR 52).
- Operating profit was EUR 5.9 million (MEUR 4.0), showing growth of 48% on the comparison period. The result before taxes was EUR 6.0 million (MEUR 4.1).
- Undiluted earnings per share were EUR 1.09 (EUR 0.69) and diluted earnings per share were EUR 1.08 (EUR 0.69).
- Net sales for the second quarter were EUR 43.7 million and operating profit was EUR 3.2 million. Order intake was EUR 28 million. The order book at the end of the reporting period came to EUR 127 million (MEUR 87), a significant proportion of which is scheduled for 2019 and a smaller fraction for 2020.
- Raute’s net sales and operating profit for 2018 are expected to be at the previous year’s level.

Tapani Kiiski, President and CEO: Q2 in line with expectations

The second quarter was good, in line with our expectations, both for net sales and the operating profit. Net sales came to approximately EUR eight million more than in the first quarter. Our result also improved thanks to net sales, as we predicted. A strong order book and its timing played a part in this development. Even large quarter-on-quarter fluctuations are normal for Raute’s project business and we will continue to experience similar movements over the second half of the year.

Demand for our technology and services continues to be strong. Demand is still focused on the traditional industrialized markets and especially on Europe. On the emerging markets, demand is looking up but still clearly leans towards more simple and inexpensive technology.

Our order intake in Q2 was lower than in the first quarter. The EUR 28 million order intake is still quite an achievement considering the lack of mill projects. Our order intake in technology services fell short of our target due to the postponement of some major modernization projects. The good market situation is causing some of our customers to invest in new equipment rather than modernizing their old equipment.

Due to high net sales and a normal order intake level, our order book fell to EUR 127 million. Despite the decline, this is a good level and our order book remains strong. A major proportion of it is scheduled for next year and a small fraction for 2020. We have succeeded in further increasing our production capacity and are able to serve our customers with reasonable delivery times. Strong economic growth in Finland is beginning to manifest itself as cost pressure and increasing challenges in terms of the availability of resources. Our goal is to preemptively minimize any harm that could result for our customers and our business. The uncertainty that has recently spread to global trade policies has not, so far, made its mark on our customers’ operations. Even during this period of heavy workload and brisk demand, we will continue to invest in developing new technologies, our service business and our presence and offering on the emerging markets.

H1’s realized net sales and operating profit, strong order book and continued active demand reinforce our outlook for the whole year and provide insight into the next year also. We are well on the way to reaching our goals for this year. Raute’s net sales and operating profit for 2018 are expected to be at the previous year’s level.

SECOND QUARTER OF 2018

Order intake and order book
The total order intake in the second quarter, EUR 28 million (MEUR 29), was at a good level, bearing in mind that it did not include major individual projects.

Technology services accounted for EUR 13 million (MEUR 15) of the order intake. This decline resulted from the timing of orders related to modernization deals.
 
The order book declined during the second quarter from a record level by EUR 15 million, but nevertheless ended the period at a strong EUR 127 million (MEUR 87).

Net sales
Second-quarter net sales amounted to EUR 43.7 million (MEUR 35.1). Technology services accounted for 30 percent (33%) of the total net sales and amounted to EUR 13 million (MEUR 12).

Result and profitability
Operating profit in the second quarter was EUR 3.2 million positive (MEUR 1.3 positive) and accounted for 7.2 percent (3.8%) of net sales. The result was EUR 2.4 million positive (MEUR 0.8 positive), and earnings per share were EUR +0.56 (EUR +0.19).

RAUTE CORPORATION – HALF-YEAR REPORT JANUARY 1–JUNE 30, 2018

BUSINESS ENVIRONMENT

Market situation in customer industries
Raute’s customers in the plywood and LVL (Laminated Veneer Lumber) industries are engaged in the manufacture 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 first half of 2018 did not change considerably with respect to Raute or Raute’s customer base. The positive development has continued in the key market areas, despite the growing political uncertainty and its expansion to global trade policies. Construction activity is continuing to improve in many market areas but the level is still relatively low despite the general economic development.

Demand for wood products technology and technology services
Thanks to the good economic and market situation, investment activity among Raute’s customers has remained high. Enquiry activity for new capacity projects and larger projects involving replacement and efficiency-boosting investments has remained brisk, and trade is being actively negotiated.

Demand is especially strong in industrialized market areas, Europe, North America and Russia. In the emerging markets of Asia, China included, and in South America, demand has not been as strong, and is even focusing more and more on products that use simpler and less expensive technology.

Demand for maintenance and spare parts services remained at a good level, which is an indication of the good capacity utilization rates of Raute’s customers’ production plants.

ORDER INTAKE AND ORDER BOOK

Raute serves the wood products industry with a full-service concept that is based on technology solutions that cover the customer’s entire production process and services throughout their life cycle. 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 good market situation is reflected in the volume of new orders Raute has received. The order intake during the review period was at an extremely good level and amounted to EUR 96 million (MEUR 52). The most significant new orders were a EUR 23 million order for an LVL mill expansion in Finland, and a EUR 20 million order for LVL line equipment for North-East Asia.

Of new orders, 51 percent came from Europe (56%), 22 percent from Asia-Pacific (1%), 15 percent from Russia (17%), 10 percent from North America (17%) and 2 percent from South America (9%). Sometimes even strong fluctuations in the distribution of new orders between the various market areas are typical for project-focused business. The second quarter accounted for EUR 28 million of the order intake.

Order intake in technology services amounted to EUR 28 million (MEUR 25), increasing 10 percent on the comparison period. 

The order book declined during the second quarter by EUR 15 million. The order book at the end of the reporting period amounted to a strong EUR 127 million (MEUR 87), however. A large part of the order book has already been scheduled for 2019 and a small portion for 2020.

COMPETITIVE POSITION

Raute’s competitive position has remained unchanged and is strong. Raute’s solutions help customers in securing their delivery and service capabilities throughout the life cycle of the production process or a part thereof. 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 78.9 million (MEUR 71.6), were up 10 percent on the comparison period.

Of the total net sales for the reporting period, Europe accounted for 45 percent (49%), Russia for 30 percent (33%), North America for 18 percent (12%), South America for 4 percent (4%), and Asia-Pacific for 3 percent (2%).

Technology services accounted for 30 percent (31%) of the Group’s total net sales and amounted to EUR 24 million (MEUR 22).

RESULT AND PROFITABILITY

During the period under review, operating profit was EUR 5.9 million positive (MEUR 4.0 positive) and accounted for 7.5 percent of net sales (5.6%).

The result before taxes for the reporting period was EUR 6.0 million positive (MEUR 4.1 positive). The result for the reporting period was EUR 4.6 million positive (MEUR 2.9 positive). Earnings per share (undiluted) were EUR 1.09 (EUR 0.69).

CASH FLOW AND BALANCE SHEET

The Group’s financial position remained good. At the end of the reporting period, gearing was –66 percent (9%) and the equity ratio 61 percent (58%). 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 27.1 million (MEUR 3.1) at the end of the reporting period. Operating cash flow was EUR 3.2 million positive (MEUR 15.1 negative). Cash flow from investment activities was EUR 1.3 million negative (MEUR 4.5 negative). Cash flow from financing activities was EUR 5.5 million negative (MEUR 1.1 negative), including dividend payments of EUR 5.3 million.

Interest-bearing liabilities amounted to EUR 1.3 million (MEUR 6.0) 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 facility, EUR 22.7 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 29, 2018 Raute received orders worth approximately EUR 23 million to Finland
February 9, 2018 Raute receives order worth almost 20 million euros from North-East Asia
March 6, 2018 Disposal of Raute Corporation’s own shares
March 22, 2018 Second plan for Raute’s top management remuneration system, LTI 2018–2020, takes off
March 22, 2018 Decisions of Raute’s Annual General Meeting 2018
March 23, 2018 Changes in Raute Group’s Executive Board as of March 27, 2018.

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, safe 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 1.7 million (MEUR 1.8), representing 2.2 percent of net sales (2.5%).

Capital expenditure during the period came to EUR 2.2 million (MEUR 4.8) and accounted for 2.7 percent (6.6%) of net sales.

PERSONNEL

At the end of the reporting period, the Group’s personnel numbered 778 (705). Group companies outside Finland accounted for 32 percent (29%) of employees.

Converted to full-time employees (“effective headcount”), the average number of employees was 705 (652) during the reporting period.

SHARES

The number of Raute Corporation’s shares at the end of the reporting period totaled 4,263,194, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,272,033 were 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 RAUTE. Raute Corporation has signed a market making agreement with Nordea Bank AB 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 135.1 million (MEUR 96.8), with series K shares valued at the closing price of series A shares on the final closing date June 29, 2018, i.e. EUR 31.70 (EUR 22.92).

RAUTE CORPORATION’S 2010 STOCK OPTIONS

The subscription period for Raute Corporation’s series C 2010 stock options ended on March 31, 2018.

REMUNERATION

The Group has performance-based bonus systems in place that cover the entire personnel.

Share-based incentive plans
The Group has valid long-term share-based incentive plans based on performance.

The company decided to launch a new performance-based, share-value-based, long-term incentive plan, LTI Plan 2018–2020, on March 22, 2018.

The terms and conditions of the incentive plans are available on the company’s website. More detailed and up-to-date information is presented in the Remuneration Statement on the company’s website.

SHAREHOLDERS

The number of shareholders totaled 4,797 at the beginning of the year and 4,722 at the end of the reporting period. Series K shares were held by 55 private individuals (55) at the end of the reporting period. Nominee-registered shares accounted for 6.7 percent (2.7%) of shares. The company did not receive any flagging notifications during the reporting period.

The Board of Directors, the President and CEO as well as the Executive Board held altogether 260,558 company shares, equaling 6.1 percent (5.9%) of the company shares and 11.6 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:

Tapani Kiiski, President and CEO, Chairman – sales
Arja Hakala, Group Vice President, Strategy – business development 
Marko Hjelt, Group Vice President, Human Resources – personnel 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
Olli-Pekka Vanhanen, Group Vice President, Finance, CFO – Finance and administration.

ANNUAL GENERAL MEETING 2018

Raute Corporation’s Annual General Meeting was held on March 22, 2018. More detailed information on the decisions of the Annual General Meeting can be found in the stock exchange release issued on March 22, 2018.

DISTRIBUTION OF PROFIT FOR THE 2017 FINANCIAL YEAR

The Annual General Meeting held on March 22, 2018 decided to pay a dividend of EUR 1.25 per share for the financial year 2017. The total amount of dividends is EUR 5.3 million, with series A shares accounting for EUR 4,081,522.50 and series K shares for EUR 1,238,951.25. The dividend payment date was April 4, 2018.

BOARD OF DIRECTORS AND BOARD COMMITTEES

At the General Meeting on March 22, 2018, Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio was elected Vice-Chair, and Mr. Joni Bask, Ms. Laura Raitio, Mr. Pekka Suominen, and Mr. Patrick von Essen were elected as Board members. The Board of Directors’ term of office will continue until the 2019 Annual General Meeting.

Based on the evaluation of independence by the Board of Directors, Chairman Mr. Erkki Pehu-Lehtonen and members Mr. Joni Bask, Mr. Patrick von Essen, Ms. Laura Raitio, and Mr. Pekka Suominen are independent of the company. Vice Chair of the Board of Directors Mr. Mika Mustakallio is not estimated to be independent of the company, as he has served on the Board of Directors for more than ten years. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Patrick von Essen and Ms. Laura Raitio) 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 Committee’s tasks are handled by the Board of Directors.

EVENTS AFTER THE REPORTING PERIOD

No significant events took place after the reporting period.

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, which has recently expanded to global trade policies. During the reporting period, there were no essential changes in the business risks described in the 2017 Board of Directors’ Report and Financial Statements.

The most significant risks for Raute in the near term are related to the completion of the very high order book, and especially the major mill-scale projects that are in the implementation phase, in accordance with the schedule determined in the contract terms, and the sufficiency and availability of skilled resources.

OUTLOOK FOR 2018

Due to the scheduling of the order book, Raute’s net sales and operating profit for 2018 are expected to be at the previous year’s level.


TABLES SECTION OF THE HALF-YEAR REPORT

Raute Corporation’s Board of Directors has on July 31, 2018 reviewed the Half-year report for January 1 – June 30, 2018, and approved it to be published.

The figures for the financial year 2017 presented in the figures section of the Half-year report have been audited. The presented interim financial report figures have not been audited. The figures for the comparative Half-year period and the financial year 2017 have been restated as a result of changes in IFRS standards.

CONSOLIDATED STATEMENT OF  INCOME    
  Restated RestatedRestated
 1.4.–30.6.1.4.–30.6.1.1.–30.6.1.1.–30.6.1.1.–31.12.
EUR 1 00020182017201820172017
      
NET SALES43 66735 05878 93971 647148 064
      
Change in inventories of finished goods and work in progress1 5748062 8031 2982 054
      
Other operating income2939135811996
      
Materials and services-26 271-19 405-44 445-40 152-80 721
Employee benefits expense-11 568-10 347-22 814-20 103-41 036
Depreciation and amortization-635-660-1 285-1 277-2 633
Other operating expenses -3 903-4 223-7 646-7 534-14 653
Total operating expenses -42 377-34 634-76 190-69 067-139 042
      
OPERATING PROFIT 3 1561 3205 9103 99711 171
% of net sales7,23,87,55,67,5
      
Financial income7217296335359
Financial expenses-107-145-172-250-411
Financial expenses, net-36-12712585-51
      
PROFIT BEFORE TAX3 1211 1926 0354 08211 120
% of net sales7,13,47,65,77,5
      
Income taxes-748-377-1 407-1 166-2 141
PROFIT FOR THE PERIOD2 3728154 6282 9178 979
% of net sales5,42,35,94,16,1
      
Profit for the period attributable to      
Equity holders of the Parent company2 3728154 6282 9178 979
      
Earnings per share for profit attributable     
to equity holders of the Parent company, EUR    
Undiluted earnings per share0,56 0,19 1,09 0,69 2,13
Diluted earnings per share0,550,191,080,692,11
      
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Restated RestatedRestated
 1.4.–30.6.1.4.–30.6.1.1.–30.6.1.1.–30.6.1.1.–31.12.
EUR 1 00020182017201820172017
PROFIT FOR THE PERIOD2 3728154 6282 9178 979
Other comprehensive income items:     
Items that may be subsequently reclassified to profit or loss     
Changes in the fair value of available-for-sale investments246-246-259193
Hedge accounting-79-180-39-180-31
Exchange differences on translating foreign operations-4-6211-91-183
Income taxes related to these items-327-3179-32
Comprehensive income items for the period, net of tax160-215187-452-52
      
COMPREHENSIVE PROFIT FOR THE PERIOD2 5326004 8142 4658 927
      
      
Comprehensive profit for the period attributable to    
Equity holders of the Parent company2 5326004 8142 4658 927
      
Shares, 1 000 pcs     
Adjusted average number of shares4 2634 2254 2564 2154 225
Adjusted average number of shares diluted4 2844 2424 2764 2324 259
      
CONSOLIDATED BALANCE SHEET     
  RestatedRestated  
 30.6.30.6.31.12.  
EUR 1 000201820172017  
ASSETS     
Non-current assets     
Goodwill1 0591 0541 035  
Other intangible assets2 5582 7982 548  
Property, plant and equipment10 6818 9919 948  
Other financial assets1 169471923  
Deferred tax assets20176410  
Total non-current assets15 48813 48914 865  
      
Current assets     
Inventories14 65211 76411 010  
Accounts receivables and other receivables30 71543 55530 363  
Income tax receivable-5045  
Cash and cash equivalents27 1323 07030 724  
Total current assets72 50058 43972 142  
      
TOTAL ASSETS87 98871 92987 006  
      
EQUITY AND LIABILITIES     
Equity attributable to equity holders of the Parent company     
Share capital8 2568 2568 256  
Fair value reserve and other reserves7 6846 4357 156  
Exchange differences670751659  
Retained earnings17 87614 32214 321  
Profit for the period4 6282 9168 979  
Total equity39 11432 68039 372  
      
Non-current liabilities     
Provisions553595707  
Deferred tax liability293886  
Total non-current liabilities582632793  
      
Current liabilities     
Provisions1 6331 0391 378  
Current interest-bearing liabilities1 2695 9941 413  
Current advance payments received24 35615 16625 739  
Income tax liability280513829  
Trade payables and other liabilities20 75415 90417 481  
Total current liabilities48 29238 61646 841  
      
Total liabilities48 87439 24947 634  
      
TOTAL EQUITY AND LIABILITIES87 98871 92987 006  
      
CONSOLIDATED STATEMENT OF CASH FLOWS    
  1.1.–30.6.1.1.–30.6.1.1.–31.12. 
EUR 1 000 201820172017 
      
CASH FLOW FROM OPERATING ACTIVITIES    
Proceeds from customers 82 91260 021167 370 
Other operating income 3541650 
Payments to suppliers and employees -78 423-72 737-145 131 
Cash flow before financial items and taxes 4 843-12 70022 289 
Interest paid from operating activities -69-146-277 
Dividends received from operating activities 249120120 
Interest received from operating activities 937 
Other financing items from operating activities -244-169-298 
Income taxes paid from operating activities -1 597-2 235-3 408 
NET CASH FLOW FROM OPERATING ACTIVITIES (A)3 191-15 12718 432 
      
CASH FLOW FROM INVESTING ACTIVITIES    
Purchase of property, plant and equipment and intangible assets-1 488-1 333-2 874 
Business transaction --3 371-3 193 
Proceeds from sale of property, plant and equipment and intangible assets15629117 
Proceeds from sale of investments -182182 
NET CASH FLOW FROM INVESTING ACTIVITIES (B)-1 331-4 492-5 768 
      
CASH FLOW FROM FINANCING ACTIVITIES    
Proceeds from issue of share capital 59130207 
Proceeds from current borrowings -3 0004 413 
Repayments of current borrowings -192--6 136 
Dividends paid -5 320-4 220-4 220 
NET CASH FLOW FROM FINANCING ACTIVITIES (C)-5 454-1 090-5 736 
      
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C)-3 594-20 7096 928 
increase (+)/decrease (-)     
      
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD*30 72423 76923 769 
NET CHANGE IN CASH AND CASH EQUIVALENTS-3 594-20 7096 928 
EFFECTS OF EXCHANGE RATE CHANGES ON CASH31227 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD*27 1323 07030 724 
      
CASH AND CASH EQUIVALENTS IN THE BALANCE    
SHEET AT THE END OF THE PERIOD*     
Cash and cash equivalents 27 1323 07030 724 
TOTAL 27 1323 07030 724 
*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  
 ShareInvested non-restrictedOtherExchangeRetained
EUR 1 000capitalequity reservereservesdifferencesearnings
EQUITY at Jan. 1, 20188 2565 6521 50465923 623
Changes in accounting principles, IFRS 15-----322
Changes in accounting principles, IFRS 9-----104
Changes in accounting principles, IFRS 2--117--
RESTATED EQUITY at Jan. 1, 20188 2565 6521 62165923 197
Comprehensive profit for the period     
Profit for the period----4 628
Other comprehensive income items:     
Changes in the fair value of available-for-sale investments--246--
Hedging reserve---39--
Exchange differences on translating foreign operations---11-
Income taxes related to these items---31--
Total comprehensive profit for the period--176114 628
Transactions with equity holders     
Share-options exercised-59---
Equity-settled share-based transactions--177--
Dividends-----5 320
Total transactions with equity holders0591770-5 320
EQUITY at June 30, 20188 2565 7111 97367022 505
      
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY  
 To the equity holders ofTOTAL  
EUR 1 000the Parent companyEQUITY  
EQUITY at Jan. 1, 201839 694 39 694  
Changes in accounting principles, IFRS 15-322 -322  
Changes in accounting principles, IFRS 9-104 -104  
Changes in accounting principles, IFRS 2117 117  
RESTATED EQUITY at Jan. 1, 201839 385 39 385  
Comprehensive profit for the period     
Profit for the period4 628 4 628  
Other comprehensive income items:     
Changes in the fair value of available-for-sale investments246 246  
Hedging reserve-39 -39  
Exchange differences on translating foreign operations11 11  
Income taxes related to these items-31 -31  
Total comprehensive profit for the period4 814 4 814  
Transactions with equity holders     
Share-options exercised59 59  
Equity-settled share-based transactions177 177  
Dividends-5 320 -5 320  
Total transactions with equity holders-5 085 -5 085  
EQUITY at June 30, 201839 114 39 114  
      
COMPARISION PERIOD, RESTATED     
 ShareInvested non-restrictedOtherExchange Retained
(EUR 1 000)capitalequity reservereservesdifferencesearnings
EQUITY at Jan. 1, 20178 2565 4451 13284218 543
Changes in accounting principles-----
RESTATED EQUITY at Jan. 1, 20178 2565 4451 13284218 453
Comprehensive profit for the period     
Profit for the period, restated----2 917
Other comprehensive income items:     
Changes in the fair value of available-for-sale investments---259--
Hedging reserve---180--
Exchange differences on translating foreign operations----91-
Income taxes related to these items--79--
Total comprehensive profit for the period---360-912 917
Transactions with equity holders     
Share-options exercised-130---
Equity-settled share-based transactions--88--
Dividends -----4 220
Total transactions with equity holders0130880-4 220
EQUITY at June 30, 20178 2565 57586075117 239
      
COMPARISION PERIOD, RESTATED     
 To the equity holders ofTOTAL  
EUR 1 000the Parent companyEQUITY  
EQUITY at Jan. 1, 201734 217 34 217  
Changes in accounting principles0 0  
RESTATED EQUITY at Jan. 1, 201734 217 34 217  
Comprehensive profit for the period     
Profit for the period, restated2 917 2 917  
Other comprehensive income items:     
Changes in the fair value of available-for-sale investments-259 -259  
Hedging reserve-180 -180  
Exchange differences on translating foreign operations-91 -91  
Income taxes related to these items79 79  
Total comprehensive profit for the period2 465 2 465  
Transactions with equity holders     
Share-options exercised130 130  
Equity-settled share-based transactions88 88  
Dividends -4 220 -4 220  
Total transactions with equity holders-4 002 -4 002  
EQUITY at June 30, 201732 680 32 680  
      

NOTES TO THE HALF-YEAR REPORT

General information
Raute Group is a globally operating technology and service company serving the wood products industry, with core competence in selected wood products manufacturing processes. Raute’s customers are com­panies operating in the wood products industry that manufacture ve­neer, plywood, LVL and sawn timber.

Raute’s full-service concept is based on product life-cycle management and includes project deliveries and technology services. Raute’s tech­nology offering covers machinery and equipment for the customer’s entire production process. In addition to a broad range of machines and equipment, Raute’s solutions cover technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations.

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.

All of the figures presented in the Half-year 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.

Basis of preparation
Raute Corporation’s Half-year report for January 1 – June 30, 2018 has been prepared in accordance with standard IAS 34 Interim Financial Reporting.

The Half-year report does not contain full notes and other in­formation presented in the financial statements, and therefore the Half-year report should be read in conjunction with the Finan­cial statements published for 2017. Raute Corporation’s consolidated financial statements information is available online at www.raute.com and at the head office of the Parent company, Rautetie 2, FI-15550 Nastola.

Raute Corporation’s Half-year report for January 1 – June 30, 2018 has been prepared in accordance with the International Financial Reporting Standards, IFRS, accepted for application in the European Union, including related interpretations. The Half-year report has been drawn up according to the same accounting principles as in the consolidated financial statements for 2017, except for the adop­tion of standards effective as of January 1, 2018 or later.

IFRS 15 Revenue from contracts with customers, has been effective as of January 1, 2018. Raute Group has presented on March 23, 2018, with a separate bulletin the restated comparative figures for the finan­cial year 2018 and the restated income statement and balance sheet as well as restated key figures due to the adoption of the new IFRS 15 standard. Of Raute’s products and services, performance obligations to be satisfied over time under the IFRS 15 standard include, as a general rule, project deliveries and modernizations that are treated as long-term projects and recognized based on the percentage of completion method, designed and tailored to the needs of the customer. These performance obligations do not have the alternative use referred to in the IFRS 15 standard and they still form one performance obligation.

The company applies to performance obligations to be satisfied over time the same principle as in the percentage of completion method (proportion of costs incurred to the estimated costs of the project). An exception to the above-mentioned general rule are the individual long-term projects recognized based on the percentage of completion method in which the customer has not committed to paying the in­curred costs and a sufficient margin in situations where the customer unilaterally interrupts the performance of the contract or when the customer is unable to meet its contractual obligations. Going forward, these individual projects will be treated as performance obligations to be satisfied at a point in time. Based on current estimates, the number of these projects has been and will be limited.

IFRS 9 Financial instruments, has been effective as of January 1, 2018. The Group has adopted the standard non-retrospectively applying the simplified approach of the standard. The standard includes hedge ac­counting requirements, but these do not have significant effects on presenting the financial instruments nor on the Half-year re­port. The standard includes also changes in the recognition of impair­ments. An expected credit loss has been estimated on financial receiv­ables. Credit losses are based on the expected credit loss share, which has been measured based on the total outstanding amount of sales receivables, credit losses realized during previous interim periods and the Group’s estimate of the future development of economic condi­tions. The expected credit loss provision amount of EUR 0.1 million has been recognized as an adjustment to the opening balance of equity at January 1, 2018. During the interim period the change in the expected credit loss was EUR -68 thousand. The deferred tax related to this item has been recognized during the interim period.

IFRS 2 Share-based payments, has been adopted non-retrospectively applying the simplified approach of the standard. The standard in­cludes guidance on the basis of preparation when a share-based pay­ment plan has a net settlement payment and Raute Group has an ob­ligation to withhold a tax from the payment. The bonuses of this share reward have been recognized entirely as an equity-settled share-based payment at January 1, 2018. An expense adjustment related to these share-based payments has increased the Group’s opening balance sheet equity by EUR 0.1 million. The corresponding item decreased the item Trade and other payables in the liabilities by EUR 0.1 million.

When preparing the Half-year report in compliance with In­ternational Financial Reporting Standards, the company management has made estimates and assumptions. In addition, the management has exercised its judgment in selecting and applying the accounting policies. The forward-looking estimates and assumptions have been based on management’s best knowledge at the reporting date, and they comprise risks and uncertainties, therefore actual results may dif­fer from these estimate.

Net sales
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. 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 mill or production line scale delivery projects can temporarily increase the share of an individual customer of the Group’s net sales to more than 10 percent. At the end of the interim period, the Group had two (2) customers, whose customized share of the Group’s net sales temporarily exceeded ten percent.

       
   Restated Restated 
 1.1.–30.6. 1.1.–30.6. 1.1.–31.12. 
 2018%2017%2017%
Net sales by market area      
EMEA (Europe and Africa)35 3024534 8384981 95256
CIS (Russia)23 5213023 3703335 36524
NAM (North America)14 545188 9571221 11514
LAM (South America)2 81342 66446 2024
APAC (Asia-Pacific)2 75731 81723 4292
TOTAL78 93910071 647100148 064100
       
Finland accounted for 11 percent (15 %) of net sales.     
       
       
  RestatedRestated   
 30.6.30.6.31.12.   
 201820172017   
Long-term projects      
Specification of net sales      
Net sales by percentage of completion65 32457 790118 115   
Other net sales13 61513 85729 949   
TOTAL78 93971 647148 064   
       
Project revenues entered as income from currently undelivered     
long-term projects recognized by percentage of completion 160 140147 817135 322   
       
Amount of long-term project revenues not yet entered as income (order book)121 77683 261104 728   
       
Balance sheet items of undelivered long-term projects     
Projects in which the value by percentage of completion exceeds    
advance payments invoiced       
- aggregate amount of costs incurred and recognized profits less recognized losses108 971125 08088 318   
- advance payments received89 24791 77667 913   
Gross amount due from customers19 72333 30420 405   
       
Projects in which advance payments invoiced exceed the value by    
percentage of completion       
- aggregate amount of costs incurred and recognized profits less recognized losses50 99822 71146 388   
- advance payments received72 16536 78568 846   
Gross amount due to customers21 16614 07422 458   
       
Advance payments included in current liabilities in the balance sheet   
Gross amount due to customers21 16614 07422 458   
Other advance payments received, not under percentage of completion3 1901 0923 281   
Total24 35615 16625 739   
       
Advance payments of long-term projects included in inventories in the balance sheet  
Advance payments paid for long-term projects1 145876659   
Total1 145876659   
       
       
 30.6.30.6.31.12.   
 201820172017   
Number of personnel      
Effective, on average, persons705652660   
On average, persons732671682   
In books at the end of the period, persons778705704   
Personnel working abroad at the end of the period250205222   
Personnel working abroad, %32,129,131,5   
       
Pledges on behalf of the company's management     
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.  
  201820172017  
Research and development costs      
Research and development costs for the period-1 704-1 758-3 237  
Amortization of previously capitalized development costs-94-113-223  
Development costs recognized as an asset in the balance sheet15154123  
Research and development costs entered as expense for the period-1 646-1 816-3 338  
       
  30.6.30.6.31.12.  
  201820172017  
Other intangible assets      
Acquisition cost at the beginning of the period 14 79913 39113 391  
Exchange rate differences 4-33-48  
Additions 2212 5871 750  
Reclassification between items 115252-295  
Acquisition cost at the end of the period 15 13916 19714 799  
       
Accumulated depreciation and amortization at the beginning of the period-12 250-12 038-12 038  
Exchange rate differences -32942  
Accumulated depreciation and amortization of disposals and reclassifications--565  
Depreciation and amortization for the period -326-370-820  
Accumulated depreciation and amortization at the end of the period-12 580-13 399-12 250  
       
Book value of Other intangible assets, at the beginning of the period2 5481 3531 353  
Book value of Other intangible assets, at the end of the period2 5582 7982 548  
       
  30.6.30.6.31.12.  
  201820172017  
Property, plant and equipment      
Acquisition cost at the beginning of the period 50 13448 65748 657  
Exchange rate differences -173-424-596  
Additions 1 9476492 623  
Disposals -146-23-97  
Reclassification between items -115-252-452  
Acquisition cost at the end of the period 51 64848 60750 134  
       
Accumulated depreciation and amortization at the beginning of the period-40 186-39 077-39 077  
Exchange rate differences 179368520  
Accumulated depreciation and amortization of disposals and reclassifications-0183  
Depreciation and amortization for the period -959-907-1 813  
Accumulated depreciation and amortization at the end of the period-40 966-39 615-40 186  
       
Book value of Property, plant and equipment, at the beginning of the period9 9489 5809 580  
Book value of Property, plant and equipment, at the end of the period10 6818 9919 948  
       
Financial assets      
At the end of the reporting period June 30, 2018, the fair value of the financial assets categorized at  
fair value on hierarchy level 3 was EUR 1 169 thousand.     
       
There were no transfers between the hierarchy levels 1 and 2 during the reporting period.   
       
       
 30.6.30.6.31.12.   
 201820172017   
Current interest-bearing liabilities      
Partial payments of financial loans1 2695 9941 413   
TOTAL1 2695 9941 413   
       
Maturities of the interest-bearing financial liabilities at June 30, 2018    
Financial loansCurrentNon-currentTotal   
Partial payments of financial loans1 269-1 269   
TOTAL1 269-1 269   
       
 30.6.30.6.31.12.   
 201820172017   
Derivatives      
Nominal values of forward contracts in foreign currency       
Economic hedging      
- Related to financing86517492   
- Related to the hedging of net sales6 9505 0653 228   
Hedge accounting      
- Related to the hedging of net sales11 3852 69412 716   
       
Fair values of forward contracts in foreign currency     
Economic hedging      
- Related to financing-613252   
- Related to the hedging of net sales-4811127   
Hedge accounting      
- Related to the hedging of net sales-458102-18   
       
       
 30.6.30.6.31.12.   
 201820172017   
Pledged assets and contingent liabilities      
On behalf of the Parent company      
Business mortgages8 5252 6098 274   
       
Financial loans-3 000-   
Business mortgages-3 000-   
       
       
Mortgage agreements on behalf of subsidiaries     
Financial loans1 2692 9941 413   
Other obligations4391 186313   
Business mortgages1 7084 3911 726   
       
Commercial bank guarantees on behalf of the Parent company and subsidiaries33 89515 19525 728   
       
Other own obligations      
Rental liabilities maturing within one year1 4301 1231 297   
Rental liabilities maturing in one to five years3 1971 4392 773   
Rental liabilities maturing later126--   
Total4 7542 5624 070   
       
Share-based payments      
The subscription period for Raute Corporation’s 2010 C stock options has ended on March 31, 2018.  
   
A total of 13,946 Raute's series A shares have been subscribed for with Raute's stock options 2010 C during the reporting period. The new shares have been registered in the Trade Register on February 26, 2018 and May 8, 2018.
 
On June 30, 2018 the company's share capital is EUR 8,256,316 and the number of company's shares 4,263,194 pieces.
 
An expense of EUR 213 thousand was recognized for the share rewards to the income statement during the reporting period.
       
Distribution of the profit for the financial year 2017     
Raute Corporation's Annual General Meeting held on March 22, 2018, decided, according to the Board of Directors' proposal, to distribute a dividend of EUR 1.25 per share to be paid for series A and K shares, a total of EUR 5,320 thousand. The dividend payment date was April 4, 2018.
       
Segment information      
Continuing operations of Raute Group belong to the wood products technology segment. 
Raute Corporation's Board of Directors is the chief operating decision maker that is responsible for assigning resources to 
the operating segment and assessing its result. 
       
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. 
       
   Restated Restated 
 30.6. 30.6. 31.12. 
 2018 2017 2017 
Wood products technology      
Net sales78 939 71 647 148 064 
Operating profit5 910 3 997 11 171 
Assets87 988 71 929 87 006 
Liabilities48 874 39 249 47 634 
Capital expenditure2 168 4 761 6 962 
       
   Restated Restated 
 30.6. 30.6. 31.12. 
 2018%2017%2017%
Assets of the wood products technology      
segment by geographical location      
Finland77 3588861 1248577 54189
North America5 84775 69285 6937
China3 40944 00262 5113
Russia1 067180511 0071
South America185016901280
Other121013701270
TOTAL87 98810071 92910087 006100
       
 30.6. 30.6. 31.12. 
 2018%2017%2017%
Capital expenditure of the wood products      
technology segment by geographical location     
Finland2 079963 238684 28362
North America7031 517322 66338
China20----
Russia17160130
South America----10
Other----10
TOTAL2 1681004 7611006 962100
       
       
Exchange rates used in the consolidation of subsidiaries    
 1.1.–30.6.1.1.–30.6.1.1.–31.12.   
Income statement, euros201820172017   
CNY (Chinese juan)7,71007,44187,6266   
RUB (Russian rouble)71,980262,734965,8806   
CAD (Canadian dollar)1,54641,44451,4644   
USD (US dollar)1,21081,08251,1292   
SGD (Singapore dollar)1,60581,52011,5583   
CLP (Chilean peso)740,4894714,3828732,3058   
       
 30.6.30.6.31.12.   
Balance sheet, euros201820172017   
CNY (Chinese juan)7,55127,64597,8073   
RUB (Russian rouble)73,158267,544969,3920   
CAD (Canadian dollar)1,54421,47851,5039   
USD (US dollar)1,16581,14121,1993   
SGD (Singapore dollar)1,58961,57101,6024   
CLP (Chilean peso)743,9823747,2473751,8129   
       
       
  RestatedRestated   
FINANCIAL DEVELOPMENT30.6.30.6.31.12.   
 201820172017   
Change in net sales, %10,233,330,9   
Exported portion of net sales, %88,885,282,6   
Operating profit, % of net sales7,54,07,5   
Return on investment, (ROI), %30,622,829,5   
Return on equity, (ROE), %23,617,424,4   
Interest-bearing net liabilities, EUR million-25,92,9-29,3   
Gearing, % -66,18,9-74,4   
Equity ratio, %61,557,664,3   
       
Gross capital expenditure, EUR million2,24,87,0   
% of net sales2,76,64,7   
       
Research and development costs, EUR million1,71,83,2   
% of net sales2,22,52,2   
       
Order book, EUR million12787110   
Order intake, EUR million9652155   
       
       
  RestatedRestated   
SHARE-RELATED DATA30.6.30.6.31.12.   
 201820172017   
Earnings per share, (EPS), undiluted, EUR1,090,692,13   
Earnings per share, (EPS), diluted, EUR1,080,692,11   
Equity to share, EUR9,177,739,27   
Dividend per series A share, EUR--1,25   
Dividend per series K share, EUR--1,25   
Dividend per profit, %--58,8   
Effective dividend return, %--4,3   
Price/earnings ratio (P/E ratio)--13,65   
       
Development in share price (series A shares)     
Lowest share price for the period, EUR26,0016,8416,84   
Highest share price for the period, EUR34,9024,1530,52   
Average share price for the period, EUR30,3520,5922,70   
Share price at the end of the period, EUR31,7022,9229,00   
       
Market value of capital stock      
- Series K shares, EUR million*31,422,728,7   
- Series A shares, EUR million103,774,194,5   
Total, EUR million135,196,8123,2   
*Series K shares valued at the value of series A shares.       
       
Trading of the company's shares (series A shares)     
Trading of shares, pcs467 647383 187845 672   
Trading of shares, EUR million14,27,919,2   
       
Number of shares      
- Series K shares, ordinary shares (20 votes/share)991 161991 161991 161   
- Series A shares (1 vote/share)3 272 0333 234 1503 258 087   
Total4 263 1944 225 3114 249 248   
       
Number of shares, weighted average, 1 000 pcs4 2564 2154 225   
Number of shares, diluted, 1 000 pcs4 2764 2324 259   
       
Number of shareholders4 7224 0934 797   
       
     RollingRolling
DEVELOPMENT OF QUARTERLY RESULTSRestatedRestated  restatedrestated
 Q 3Q 4Q 1Q 21.7.20171.7.2016
 2017201720182018
EUR 1 000    30.6.201830.6.2017
       
NET SALES37 04939 36735 27243 667155 355131 045
       
Change in inventories of finished goods      
and work in progress-1879431 2301 5743 559471
       
Other operating income167-19065293335189
       
Materials and services-19 386-21 183-18 174-26 271-85 014-67 225
Employee benefits expense-9 495-11 437-11 246-11 568-43 746-38 612
Depreciation and amortization-654-702-650-635-2 640-2 529
Other operating expenses-3 381-3 738-3 743-3 903-14 765-13 685
Total operating expenses-32 916-37 060-33 813-42 377-146 166-122 050
       
OPERATING PROFIT4 1133 0602 7543 15613 0849 654
% of net sales11,17,87,87,28,47,4
       
Financial income19522572321417
Financial expenses-121-39-64-107-332-523
Financial expenses, net-102-34160-36-11-106
       
PROFIT BEFORE TAX4 0113 0262 9143 12113 0729 545
% of net sales10,87,78,37,18,47,3
       
Income taxes-647-328-659-748-2 382-2 074
       
PROFIT FOR THE PERIOD3 3642 6982 2562 37210 6907 471
% of net sales9,16,96,45,46,95,7
       
Attributable to      
Equity holders of the Parent company      
 3 3642 6982 2562 37210 6907 471
Earnings per share, EUR      
Undiluted earnings per share      
Diluted earnings per share0,800,640,530,562,511,77
 0,790,630,530,552,501,76
Shares, 1 000 pcs      
Adjusted average number of shares      
 4 2294 2404 2484 2634 2564 215
Adjusted average number of shares,       
diluted4 2594 2744 2674 2844 2764 232
       
FINANCIAL DEVELOPMENT QUARTERLY    RollingRolling
     restatedrestated
 RestatedRestated  1.7.20171.7.2016
 Q 3Q 4Q 1Q 2
 201720172018201830.6.201830.6.2017
Order intake during the period, EUR million42606828198187
Order book at the end of the period, EUR million8911014212712787
       
20 LARGEST SHAREHOLDERS AT JUNE 30, 2018 BY NUMBER OF SHARES   
 NumberNumberTotal % ofTotal% of
 of seriesof seriesnumbertotalnumber voting
 K sharesA sharesof sharessharesof votesrights
1. Sundholm Göran-500 000500 00011,7500 0002,2
2. Mandatum Life Unit-Linked-131 396131 3963,1131 3960,6
3. Laakkonen Mikko Kalervo-119 919119 9192,8119 9190,5
4. Suominen Pekka48 00062 429110 4292,61 022 4294,4
5. Siivonen Osku Pekka50 64053 539104 1792,41 066 3394,6
6. Kirmo Kaisa Marketta55 68048 341104 0212,41 161 9415,0
7. Suominen Tiina Sini-Maria48 00053 356101 3562,41 013 3564,4
8. Keskiaho Kaija Leena33 60051 11684 7162,0723 1163,1
9. Mustakallio Mika Tapani62 10021 17083 2702,01 263 1705,5
10. Särkijärvi Anna Riitta60 48022 00982 4891,91 231 6095,3
11. Mustakallio Kari Pauli60 48050060 9801,41 210 1005,2
12. Mustakallio Marja Helena46 74012 54759 2871,4947 3474,1
13. Mustakallio Ulla Sinikka47 74010 73058 4701,4965 5304,2
14. Särkijärvi Anu Riitta12 00043 25655 2561,3283 2561,2
15. Särkijärvi Timo Juha12 00043 25655 2561,3283 2561,2
16. Suominen Jukka Matias24 96027 96452 9241,2527 1642,3
17. Keskinäinen työeläkevakuutusyhtiö Varma-51 95051 9501,251 9500,2
18. Relander Pär-Gustaf-51 00051 0001,251 0000,2
19. Suominen Jussi48 000-48 0001,1960 0004,2
20. Keskiaho Ilta Marjaana24 78019 09443 8741,0514 6942,2
TOTAL635 2001 323 5721 958 77245,914 027 57260,7
       
20 LARGEST SHAREHOLDERS AT JUNE 30, 2018 BY NUMBER OF VOTES   
 NumberNumberTotal % ofTotal% of
 of seriesof seriesnumbertotalnumber voting
 K sharesA sharesof sharessharesof votesrights
1. Mustakallio Mika Tapani62 10021 17083 2702,01 263 1705,5
2. Särkijärvi Anna Riitta60 48022 00982 4891,91 231 6095,3
3. Mustakallio Kari Pauli60 48050060 9801,41 210 1005,2
4. Kirmo Kaisa Marketta55 68048 341104 0212,41 161 9415,0
5. Siivonen Osku Pekka50 64053 539104 1792,41 066 3394,6
6. Suominen Pekka48 00062 429110 4292,61 022 4294,4
7. Suominen Tiina Sini-Maria48 00053 356101 3562,41 013 3564,4
8. Mustakallio Ulla Sinikka47 74010 73058 4701,4965 5304,2
9. Suominen Jussi 48 000-48 0001,1960 0004,2
10. Mustakallio Marja Helena46 74012 54759 2871,4947 3474,1
11. Keskiaho Kaija Leena33 60051 11684 7162,0723 1163,1
12. Keskiaho Vesa Heikki29 680-29 6800,7593 6002,6
13. Keskiaho Juha-Pekka27 8805 71633 5960,8563 3162,4
14. Suominen Jukka Matias24 96027 96452 9241,2527 1642,3
15. Keskiaho Ilta Marjaana24 78019 09443 8741,0514 6942,2
16. Sundholm Göran -500 000500 00011,7500 0002,2
17. Kultanen Leea Annikka21 5958 03129 6260,7439 9311,9
18. Mustakallio Risto Knut kuolinpesä21 120-21 1200,5422 4001,8
19. Molander Sole20 160-20 1600,5403 2001,7
20. Kirmo Lasse 19 0252 96421 9890,5383 4641,7
TOTAL750 660899 5061 650 16638,715 912 70668,9
       
       
MANAGEMENT'S SHAREHOLDING AND NOMINEE-REGISTERED SHARES   
 Number of series K sharesNumber of series A sharesTotal number of shares% of
total shares
Total number of votes% of voting rights
Management's holding at June 30, 2018      
The Board of Directors, The Group's President and CEO and Executive Board*127 890132 668260 5586,12 690 46811,6
Total127 890132 668
260 558
6,12 690 468
11,6
       
*The figures include the holdings of their own, minor children and control entities.   
       
Nominee-registered shares at June 30, 2018-286 963286 9636,7286 9631,2
       

RAUTE CORPORATION
Board of Directors


BRIEFING ON JULY 31, 2018 AT 2 P.M.:
A briefing will be organized for analysts, investors and the media on July 31, 2018 at 2 p.m. at Scandic Simonkenttä Hotel, Roba cabinet, Simonkatu 9, Helsinki. The half-year report will be presented by Mr. Tapani Kiiski, President and CEO, and Mr. Olli-Pekka Vanhanen, CFO.

NEXT INTERIM REPORT:
Raute Corporation’s interim report January 1–September 30, 2018 will be published on Wednesday, October 31, 2018.

FINANCIAL RELEASES IN 2019:
Raute Corporation will publish a release on its financial statements for 2018 on Thursday, February 14, 2019.                                                                  

Raute’s half-year report and two interim reports will be published as follows:
- Interim report January–March on Friday, May 3, 2019
- Half-year report January–June on Wednesday, July 31, 2019
- Interim report January–September on Wednesday, October 30, 2019

Raute Corporation’s Annual General Meeting is scheduled to be held in Lahti on Tuesday, April 2, 2019.

FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, mobile phone +358 400 814 148
Mr. Olli-Pekka Vanhanen, CFO, Raute Corporation, mobile phone +358 40 505 7515

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, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. 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 located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. Raute’s net sales in 2017 were EUR 148.1 million. The Group’s headcount at the end of 2017 was 704. More information about the company can be found at www.raute.com.