RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - JUNE 30, 2011
RAUTE CORPORATION INTERIM REPORT AUGUST 9, 2011 AT 9:00 a.m.
RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - JUNE 30, 2011
- The Group’s net sales amounted to EUR 37.8 million (MEUR 30.0), up 26% on the comparison year. Order intake was EUR 39 million (MEUR 34).
- Operating result amounted to EUR -0.6 million (MEUR -1.3). Result before taxes was EUR -0.8 million (MEUR -1.3).
- Earnings per share (undiluted) were EUR -0.19 (EUR -0.27).
- Second-quarter net sales amounted to EUR 23.1 million and the operating result was EUR 0.8 million. Order intake was EUR 9 million and the order book stood at EUR 35 million at the end of the reporting period.
- The outlook for financial performance remains unchanged. Net sales for 2011 will see year-on-year growth and the operating result is expected to be positive.
TAPANI KIISKI, PRESIDENT AND CEO: UNCERTAINTY SURROUNDING THE IMPROVEMENT OF DEMAND
Our net sales saw growth in the second quarter and were almost back to their pre-recession level, and our operating result rose into the black. The loss we posted for the entire first part of 2011 was only half of last year’s figure. Profitability in the second quarter was still somewhat weakened by drawn-out project implementation. Delays in achieving production capacity for mill-scale deliveries and any additional costs that might be incurred from them are major risks in the project business.
The trend in the demand for wood products has remained favorable in the past few months, except in North America, where construction is still at a very low ebb. Thanks to the brighter market situation, the wood products industry has stepped up its utilization rates and is more willing to invest. The rise in capacity utilization in the wood products industry has been most clearly evident in the demand for our technology services. During the first half of the year, the wood products industry announced investment plans targeting to build new capacity in South America.
In our view, uncertainty about the development of the financial markets, the threat of a new recession, and the search for suitable financing solutions have caused the wood products industry to deliberate longer on investment decisions, especially in Europe and Russia. Our projects that are currently under negotiation now once again involve greater uncertainty in terms of implementation and scheduling. In spite of this, we expect to see a positive trend in our order intake in the next few months, paving the way for better profitability and a positive full-year result for 2011.
SECOND QUARTER OF 2011
Order intake and order book
Order intake during the second quarter totaled EUR 9 million (MEUR 9). Technology services accounted for EUR 4 million (MEUR 5) of the new orders. Order intake remained low because many of the projects that had been expected to get the go-ahead in the second quarter were pushed back due to uncertainties concerning market trends and financing.
The most significant new orders were for the delivery of an automated veneer patching line and peeling line to Russia.
The order book declined by EUR 13 million during the past quarter, amounting to EUR 35 million (MEUR 28) at the end of the reporting period.
Net sales
Second-quarter net sales amounted to EUR 23.1 million (MEUR 19.5). The brighter market prospects of the company’s customer industries increased demand, which contributed to net sales growth.
Technology services accounted for 26 percent of total net sales (24%).
Result and profitability
The operating result for the second quarter was EUR 0.8 million positive (MEUR 0.1 positive), representing 4 percent (1%) of net sales. The second-quarter result was EUR 0.5 million positive (MEUR 0.1 negative) and earnings per share were EUR 0.13 (EUR -0.03).
RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – JUNE 30, 2011
BUSINESS ENVIRONMENT
Market situation in customer industries
Raute’s customers in the veneer, plywood, and LVL (Laminated Veneer Lumber) industries are engaged in the manufacturing of wood products used in investment commodities and are thus highly dependent on cyclical fluctuations in construction, housing-related consumption, international trade, and transportation.
During the reporting period, the market situation in Raute’s customer industries continued to improve gradually, with the exception of North America. Outside North America, most plywood and LVL manufacturers are operating at either good or normal utilization rates. However, in North America, the housing market and construction have once again headed downward, and market demand for wood products remained very muted.
Demand for wood products technology and technology services
During the reporting period, demand for wood products technology and technology services was at a normal level in view of the market situation in the customer industries. Demand focused on smaller projects and especially on modernizations, as is typical now that the market is recovering.
Numerous larger projects – both individual production lines and complete mills – have been under prolonged negotiation and planning in many market areas. Customers will decide to go ahead with these projects only once they are confident that the market has recovered permanently.
ORDER INTAKE AND ORDER BOOK
Raute’s business consists of providing project deliveries and technology services to the wood products industry. Project deliveries encompass complete mills, production lines, and individual machines and equipment. Technology services include maintenance, spare parts services, modernization, consulting, training, and reconditioned machinery.
Order intake during the reporting period totaled EUR 39 million (MEUR 34). 59 percent of the new orders came from Russia (9%), 25 percent from Europe (22%), 7 percent from South America (3%), 7 percent from North America (15%), and 2 percent from Asia-Pacific (51%).
The most significant new order was received in January for the delivery of plywood mill machinery valued at more than EUR 12 million to Russia. The low order intake from Asia and South America during the reporting period can be explained by customers’ scheduling of their projects.
Technology services accounted for EUR 11 million (MEUR 8) of the order intake.
During the reporting period, the order book grew by EUR 2 million, amounting to EUR 35 million (MEUR 28) at its end.
COMPETITIVE POSITION
Raute’s competitive position is good. Raute’s solutions help customers in securing their delivery and service capabilities. In such investments, the supplier’s end-to-end expertise and extensive, wide-ranging technology offering play a key role. The competitive edge provided by Raute is also a major draw when customers select their cooperation partners. Furthermore, Raute’s strong financial position enhances its credibility and improves its competitive position in the implementation of long-term investment projects.
NET SALES
Net sales for the reporting period, EUR 37.8 million (MEUR 30.0), were up 26 percent year-on-year. Demand increased in step with the brighter market prospects of the company’s customer industries, contributing to net sales growth.
Of the total net sales for the reporting period, Russia accounted for 33 percent (49%), Asia-Pacific for 25 percent (19%), North America for 10 percent (15%), Europe for 26 percent (13%), and South America for 6 percent (4%).
Net sales of technology services grew by 39 percent and accounted for 33 percent of total net sales (30%).
RESULT AND PROFITABILITY
The operating result was EUR 0.6 million negative (MEUR 1.3 negative), representing -2 percent of net sales (-4%).
The company posted a loss for the reporting period due to additional costs incurred from the drawn-out implementation of some projects that were in the installation phase.
The result before taxes for the reporting period was EUR 0.8 million negative (MEUR 1.3 negative) and the result was EUR 0.7 million negative (MEUR 1.1 negative). Earnings per share (undiluted) were EUR -0.19 (EUR -0.27).
CASH FLOW AND BALANCE SHEET
The Group’s financial position is good. At the end of the reporting period, gearing was -36 percent (-75%) and the equity ratio was 50 percent (45%). Other fluctuations in balance sheet 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 project business.
The Group’s cash and cash equivalents, including financial assets recognized at fair value through profit or loss, amounted to EUR 19.1 million (MEUR 32.8) at the end of the reporting period. Operating cash flow was EUR -0.8 million (MEUR +6.9). Cash flow from investment activities was EUR -0.6 million (MEUR -0.5). Cash flow from financing activities was EUR -3.3 million (MEUR -1.1), including dividends of EUR 1.2 million (MEUR 0.0).
At the end of the reporting period, interest-bearing liabilities amounted to EUR 11.1 million (MEUR 16.5), of which EUR 3.3 million (MEUR 4.4) were current interest-bearing liabilities.
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 company also has unused bilateral credit facilities totaling EUR 10 million with two different Nordic banks.
EVENTS DURING THE REPORTING PERIOD
Raute Corporation has published stock exchange releases on the following events:
January 20, 2011 Raute received new orders valued at over EUR 12 million from Russia.
April 13, 2011 Raute Corporation’s 2011 Annual General Meeting was held in April.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE
Raute seeks to be the leading technology supplier in its field and to invest strongly in continuous research and development, with a special focus on plywood and LVL manufacturing technology and automation and instrumentation applications that support these technologies, particularly machine vision.
Research and development costs totaled EUR 0.8 million (MEUR 0.8) during the reporting period, representing 2.1 percent of net sales (2.6%).
Investments totaled EUR 0.7 million (MEUR 1.7) during the reporting period.
PERSONNEL
At the end of the reporting period, the Group’s personnel numbered 486 (522). Group companies outside Finland accounted for 25 percent (25%) of employees.
Converted to full-time employees (“effective headcount”), the average number of employees was 457 (423) during the reporting period.
SHARES
The number of Raute Corporation’s shares at the end of the reporting period totaled 4,004,758, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,013,597 series A shares (1 vote/share). The shares have a nominal value of two euro. 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 Article 3 of the Articles of Association. If a series K 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 OMX Helsinki Ltd. The trading code is RUTAV. Raute Corporation has signed a market making agreement with Nordea Bank Finland Plc in compliance with the Liquidity Providing (LP) requirements issued by NASDAQ OMX Helsinki Ltd.
The company’s market capitalization at the end of the reporting period was EUR 39.3 million (MEUR 29.5), with series K shares valued at the closing price of the series A shares on June 30, 2011, which was EUR 9.81 (EUR 7.37).
The Annual General Meeting held on April 13, 2011 authorized the company’s Board of Directors to decide on the buyback of Raute Corporation series A shares with distributable funds and on a directed share issue. The maximum number of shares to be repurchased and issued is 400,000. The Board of Directors did not exercise the authorization during the reporting period.
The company did not hold any treasury shares during the reporting period.
STOCK OPTION SCHEME 2010
The Annual General Meeting held on March 31, 2010 resolved to issue a maximum of 240,000 stock options.
In accordance with the authorization granted by the Annual General Meeting, the Board of Directors issued a total of 75,000 stock options marked with the symbol 2010 B to key employees of the Group on May 31, 2011. The share subscription period with stock options 2010 B will be from March 1, 2014 to March 31, 2017 and the subscription price will be EUR 9.83.
Earlier, on May 5, 2010, 80,000 stock options 2010 A were granted to key employees of the Group under this stock option scheme.
The terms and conditions of the stock option scheme are available on the company’s Internet site.
SHAREHOLDERS
The number of shareholders totaled 1,787 at the beginning of the year and 1,763 at the end of the reporting period. Series K shares are held by 52 private individuals (46). Management held 7.1 percent (7.0%) of the company’s shares and 13.3 percent (12.5%) of the votes. Nominee-registered shares accounted for 2.1 percent (2.1%) of shares.
No flagging notifications were given to the company during the reporting period.
CORPORATE GOVERNANCE
Raute Corporation complies with the Finnish Corporate Governance Code for listed companies issued by the Securities Market Association on June 15, 2010. Raute deviates from Recommendation 22 on appointing members to the Appointments Committee in that one member to the Committee is elected from outside the Board of Directors, as per the company’s Administrative Instructions, from among the representatives of major shareholders who have significant voting rights. In the Board’s view, it has a good reason to deviate from the recommendation due to the company’s ownership structure; when selecting Board members, the company can thus meet the expectations of its major shareholders early in the preparation phase. The main points of Raute Corporation’s corporate governance principles are presented on the company’s Internet site at www.raute.com.
Raute Corporation’s Corporate Governance Statement 2010 has been drawn up separately from the Board of Directors’ report and is published on the company’s Internet site.
ANNUAL GENERAL MEETING 2011
Raute Corporation’s Annual General Meeting was held on April 13, 2011. The Annual General Meeting confirmed the 2010 financial statements, granted discharge from liability to those accountable, and decided to distribute a dividend of EUR 0.30 per share.
The Annual General Meeting elected the Board of Directors for the term of office ending at the next Annual General Meeting in 2012. Mr. Erkki Pehu-Lehtonen, M.Sc. (Eng.), was elected as Chairman of the Board, Ms. Sinikka Mustakallio, Researcher, as Vice Chair, and Mr. Risto Hautamäki, M.Sc. (Eng.), Mr. Ilpo Helander, M.Sc. (Eng.), Mr. Mika Mustakallio, M.Sc. (Econ.), and Mr. Pekka Suominen, M.Sc. (Econ.) as members of the Board.
The Annual General Meeting elected authorized public accounting company PricewaterhouseCoopers Oy as auditors with Mr. Janne Rajalahti (Authorized Public Accountant) as the principal auditor.
The Annual General Meeting decided that the Chairman of the Board will be paid remuneration of EUR 40,000 and the Vice Chair of the Board and Board members EUR 20,000 for the term of office, and that the Board members will be reimbursed for their travel expenses as set out in the company’s travel policy. Compensation will be paid to the company’s auditors on the basis of reasonable invoices.
The Annual General Meeting authorized the Board of Directors to decide on the buyback of Raute Corporation series A shares with distributable funds and on a directed share issue of series A shares. The maximum number of shares to be repurchased and issued is 400,000.
A stock exchange release detailing the decisions of the Annual General Meeting was published on April 13, 2011.
DIVIDENDS FOR THE 2010 FINANCIAL YEAR
The Annual General Meeting held on April 13, 2011 decided to pay a dividend of EUR 0.30 per share for the financial year. The dividends amounted to a total of EUR 1.2 million, of which series A shares accounted for EUR 904,079.10 (EUR 0) and series K shares EUR 297,348.30 (EUR 0). The dividend payout date was April 27, 2011.
BOARD OF DIRECTORS AND BOARD COMMITTEES
At the Annual General Meeting held on April 13, 2011, Mr. Erkki Pehu-Lehtonen, M.Sc. (Eng.), was elected as Chairman of the Board of Directors, Ms. Sinikka Mustakallio, Researcher, as Vice Chair, and Mr. Risto Hautamäki, M.Sc. (Eng.), Mr. Ilpo Helander, M.Sc. (Eng.), Mr. Mika Mustakallio, M.Sc. (Econ.), and Mr. Pekka Suominen, M.Sc. (Econ.) as members of the Board.
Based on the evaluation of independence, Mr. Erkki Pehu-Lehtonen (Chairman) and Mr. Risto Hautamäki, Mr. Ilpo Helander, Mr. Mika Mustakallio, and Mr. Pekka Suominen (members) are independent of the company. Ms. Sinikka Mustakallio (Vice Chair), who chaired Raute’s Supervisory Board from 1996 to 1998 and has acted as a member of the Board since 1998, is dependent on the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Ilpo Helander and Mr. Risto Hautamäki) are independent of major shareholders.
Raute Corporation’s Board of Directors has an Appointments Committee and a Working Committee. The Appointments Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Ms. Sinikka Mustakallio and Mr. Ville Korhonen, who was elected by the major shareholders from amongst their number. The Working Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Ms. Sinikka Mustakallio and Mr. Risto Hautamäki. The Audit Committee’s tasks are handled by the Board of Directors.
BUSINESS RISKS
Risks in the near term continue to be driven by the global economic situation and uncertainty concerning its development. Threats related to the indebtedness of certain European countries and the United States have led to mounting nervousness about the trends in the global economy and financial markets. During the reporting period, there have been no essential changes in the business risks described in the 2010 Board of Directors’ report and financial statements. The most significant risks for Raute in the near term are related to the development of net sales and profitability.
OUTLOOK FOR 2011
Raute’s business operations are characterized by the sensitivity of investment demand to cyclical fluctuations in the global economy and the financial markets.
The outlook for the world economy and financial markets and their permanent recovery from the financial crisis remains fraught with uncertainty despite favorable development in many markets. The market situation for Raute’s customer industries is expected to remain somewhat uncertain. Demand for wood products has not yet permanently recovered to its pre-recession level. That said, concerns about the continuation and strength of recovery have increased in recent months due to the threats posed by the indebtedness of several European countries and the United States.
Demand for investments and services in the wood products industry is not expected to see a permanent recovery to its pre-recession level in the near future. However, upgrade investments in the plywood industry to ensure quality and maintain market shares will probably continue to increase. Production line and mill-scale investment projects are being planned in several market areas. Their implementation and timing will depend on how financing is arranged for customer projects in some market areas and whether the market situation for wood products continues to develop favorably.
Thanks to its strong financial and market position and the development measures it has carried out, Raute is well poised to respond to growing demand once the markets recover. The implemented adaptation measures have led to a lighter cost structure and business is now more profitable than before, even in a difficult market situation.
Raute’s profit outlook for 2011 remains unchanged. As a result of the order book and projects under negotiation, net sales for 2011 will increase from the previous year. The operating result is expected to be positive.
TABLES SECTION OF THE INTERIM REPORT
| The figures for the financial year 2010 presented in the figures section of the interim financial report have been audited. | ||||||
| The interim figures presented in the interim financial report have not been audited. | ||||||
| CONSOLIDATED STATEMENT OF | Note | 1.4.-30.6. | 1.4.-30.6. | 1.1.–30.6. | 1.1.–30.6. | 1.1.–31.12. |
| COMPREHESIVE INCOME (EUR 1 000) | 2011 | 2010 | 2011 | 2010 | 2010 | |
| NET SALES | 3, 4, 5 | 23 136 | 19 546 | 37 763 | 29 982 | 62 867 |
| Other operating income | 68 | 120 | 100 | 139 | 4 580 | |
| Change in inventories of finished | ||||||
| goods and work in progress | 723 | -87 | 818 | -419 | 351 | |
| Materials and services | -13 891 | -10 612 | -20 958 | -14 283 | -32 679 | |
| Expenses from employee benefits | 15 | -6 137 | -6 211 | -12 184 | -11 598 | -23 467 |
| Depreciation and amortization | -538 | -459 | -1 080 | -1 096 | -2 250 | |
| Other operating expenses | -2 547 | -2 194 | -5 087 | -4 011 | -8 091 | |
| Total operating expenses | -23 113 | -19 476 | -39 310 | -30 989 | -66 487 | |
| OPERATING PROFIT | 814 | 103 | -629 | -1 287 | 1 311 | |
| % of net sales | 4 | 1 | -2 | -4 | 2 | |
| Financial income | 313 | 185 | 523 | 561 | 728 | |
| Financial expenses | -362 | -256 | -680 | -600 | -917 | |
| PROFIT (LOSS) BEFORE TAX | 764 | 33 | -785 | -1 327 | 1 122 | |
| % of net sales | 3 | 0 | -2 | -4 | 2 | |
| Income taxes | 7 | -244 | -156 | 40 | 253 | 36 |
| PROFIT (LOSS) FOR THE PERIOD | 520 | -123 | -745 | -1 074 | 1 158 | |
| % of net sales | 2 | -1 | -2 | -4 | 2 | |
| Other comprehensive income items: | ||||||
| Exchange differences on translating foreign operations | -2 | -37 | -37 | -48 | -20 | |
| Cash flow hedging | - | 16 | - | 8 | -19 | |
| Income tax related to cash flow hedges | - | -4 | - | -2 | 5 | |
| Comprehensive income items for | ||||||
| the period, net of tax | -2 | -25 | -37 | -42 | -34 | |
| COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD | 518 | -149 | -782 | -1 116 | 1 124 | |
| Profit (loss) for the period attributable to | ||||||
| Equity holders of the Parent company | 520 | -123 | -745 | -1 074 | 1 158 | |
| Comprehensive profit (loss) for the period | ||||||
| attributable to | ||||||
| Equity holders of the Parent company | 518 | -149 | -782 | -1 116 | 1 124 | |
| Earnings per share for profit (loss) attributable | ||||||
| to Equity holders of the Parent company, EUR | ||||||
| Undiluted earnings per share | 0,13 | -0,03 | -0,19 | -0,27 | 0,29 | |
| Diluted earnings per share | 0,13 | -0,03 | -0,19 | -0,27 | 0,29 | |
| Shares, 1 000 pcs | ||||||
| Adjusted average number of shares | 4 005 | 4 005 | 4 005 | 4 005 | 4 005 | |
| Adjusted average number of shares diluted | 4 012 | 4 055 | 4 012 | 4 030 | 4 005 | |
| CONSOLIDATED BALANCE SHEET | Note | 30.6. | 30.6. | 31.12. | ||
| (EUR 1 000) | 2011 | 2010 | 2010 | |||
| ASSETS | ||||||
| Non-current assets | ||||||
| Intangible assets | 9 | 1 102 | 1 585 | 1 341 | ||
| Property, plant and equipment | 9 | 8 338 | 9 301 | 8 913 | ||
| Other financial assets | 789 | 487 | 497 | |||
| Receivables | 567 | - | - | |||
| Deferred tax assets | 1 565 | 1 977 | 1 849 | |||
| Total | 12 362 | 13 350 | 12 599 | |||
| Current assets | ||||||
| Inventories | 6 014 | 4 883 | 4 574 | |||
| Accounts receivables and other receivables | 5 | 15 113 | 11 692 | 11 770 | ||
| Cash and cash equivalents | 19 084 | 32 834 | 24 090 | |||
| Total | 40 211 | 49 409 | 40 435 | |||
| Non-current assets classified as held for sale | - | 1 038 | - | |||
| Total | - | 1 038 | - | |||
| TOTAL ASSETS | 52 573 | 63 796 | 53 034 | |||
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||||
| Equity attributable to Equity holders | ||||||
| of the Parent company | ||||||
| Share capital | 8 010 | 8 010 | 8 010 | |||
| Share premium | 6 498 | 6 498 | 6 498 | |||
| Other reserves | 15 | 83 | 312 | 36 | ||
| Exchange differences | -2 | 7 | 35 | |||
| Retained earnings | 8 447 | 8 196 | 8 490 | |||
| Profit (loss) for the period | -745 | -1 074 | 1 158 | |||
| Share of shareholders' equity that belongs | ||||||
| to the owners of the Parent company | 22 290 | 21 948 | 24 227 | |||
| Total shareholders' equity | 22 290 | 21 948 | 24 227 | |||
| Non-current liabilities | ||||||
| Provisions | 36 | 58 | 57 | |||
| Deferred tax liabilities | - | 262 | 337 | |||
| Non-current interest-bearing liabilities | 11 | 7 768 | 12 253 | 10 000 | ||
| Total | 7 804 | 12 573 | 10 394 | |||
| Current liabilities | ||||||
| Provisions | 898 | 1 017 | 612 | |||
| Pension obligations | 94 | 131 | 91 | |||
| Current interest-bearing liabilities | 11 | 3 315 | 4 215 | 4 439 | ||
| Advance payments received | 5 | 7 559 | 14 624 | 5 243 | ||
| Trade and other payables | 10 613 | 9 289 | 8 028 | |||
| Total | 22 479 | 29 275 | 18 413 | |||
| Total liabilities | 30 283 | 41 848 | 28 807 | |||
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 52 573 | 63 796 | 53 034 | |||
| CONSOLIDATED STATEMENT OF CASH FLOWS | 1.1.–30.6. | 1.1.–30.6. | 1.1.–31.12. | |||
| (EUR 1 000) | 2011 | 2010 | 2010 | |||
| CASH FLOW FROM OPERATING ACTIVITIES | ||||||
| Proceeds from sales | 37 253 | 36 122 | 57 338 | |||
| Proceeds from other operating income | 37 | 100 | 121 | |||
| Payments of operating expenses | -37 933 | -28 681 | -63 416 | |||
| Cash flow before financial items and taxes | -643 | 7 541 | -5 958 | |||
| Interests and other operating financial expenses paid | -274 | -761 | -650 | |||
| Interests and other income received | 85 | 35 | 394 | |||
| Dividends received | 42 | 87 | 118 | |||
| Income taxes paid | -38 | 8 | -18 | |||
| NET CASH FLOW FROM OPERATING ACTIVITIES (A) | -828 | 6 908 | -6 114 | |||
| CASH FLOW FROM INVESTING ACTIVITIES | ||||||
| Capital expenditure in tangible and intangible assets | -447 | -1 484 | -2 067 | |||
| Purchases of assets-for-sale as investments | - | -1 | -11 | |||
| Purchase of investments | -293 | - | - | |||
| Proceeds from sale of tangible and intangible assets | 93 | 990 | 6 448 | |||
| NET CASH FLOW FROM INVESTING ACTIVITIES (B) | -646 | -495 | 4 370 | |||
| CASH FLOW FROM FINANCING ACTIVITIES | ||||||
| Decrease of non-current and current receivables | 1 000 | 1 000 | 2 000 | |||
| Repayments of current borrowings | -115 | -100 | -228 | |||
| Increase of non-current borrowings | 6 000 | - | - | |||
| Repayments of non-current borrowings | -9 000 | -2 000 | -4 088 | |||
| Dividends paid | -1 201 | - | - | |||
| NET CASH FLOW FROM FINANCING ACTIVITIES (C) | -3 317 | -1 099 | -2 316 | |||
| NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) | -4 791 | 5 314 | -4 060 | |||
| increase (+)/decrease (-) | ||||||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING | ||||||
| OF THE PERIOD* | 24 090 | 27 900 | 27 900 | |||
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH | -216 | -380 | 251 | |||
| CASH AND CASH EQUIVALENTS AT THE END | ||||||
| OF THE PERIOD* | 19 084 | 32 834 | 24 090 | |||
| CASH AND CASH EQUIVALENTS IN THE BALANCE | ||||||
| SHEET AT THE END OF THE PERIOD | ||||||
| Cash and cash equivalents | 19 084 | 32 834 | 24 090 | |||
| TOTAL | 19 084 | 32 834 | 24 090 | |||
| *Cash and cash equivalents comprise trading assets as well as cash and bank receivables, | ||||||
| which will be due within the following three months' period. | ||||||
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
| Share | Share | Other | Exchange | Retained | ||
| (EUR 1 000) | capital | premium | reserves | rate diff. | earnings | |
| EQUITY Jan. 1, 2011 | 8 010 | 6 498 | 36 | 35 | 9 648 | |
| Profit (loss) for the period | - | - | - | - | -745 | |
| Comprehensive profit (loss) for the period: | ||||||
| Exchange differences on translating | ||||||
| foreign operations | - | - | - | -37 | - | |
| Cash flow hedging, net of tax | - | - | - | - | - | |
| Total comprehensive profit (loss) | ||||||
| for the period | 0 | 0 | 0 | -37 | -745 | |
| Dividends | - | - | - | - | -1 201 | |
| Equity-settled share-based transactions | - | - | 47 | - | - | |
| EQUITY June 30, 2011 | 8 010 | 6 498 | 83 | -2 | 7 701 | |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | ||||||
| To the owners | ||||||
| of the Parent | EQUITY | |||||
| (EUR 1 000) | company | TOTAL | ||||
| EQUITY Jan. 1, 2011 | 24 227 | 24 227 | ||||
| Profit (loss) for the period | -745 | -745 | ||||
| Comprehensive profit (loss) for the period: | ||||||
| Exchange differences on translating | ||||||
| foreign operations | -37 | -37 | ||||
| Cash flow hedging, net of tax | - | - | ||||
| Total comprehensive profit (loss) | ||||||
| for the period | -782 | -782 | ||||
| Dividends | -1 201 | -1 201 | ||||
| Equity-settled share-based transactions | 47 | 47 | ||||
| EQUITY June 30, 2011 | 22 290 | 22 290 | ||||
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
| Share | Share | Other | Exchange | Retained | ||
| (EUR 1 000) | capital | premium | funds | rate diff. | earnings | |
| EQUITY Jan. 1, 2010 | 8 010 | 6 498 | 294 | 55 | 8 196 | |
| Profit (loss) for the period | - | - | - | - | -1 074 | |
| Comprehensive profit (loss) for the period: | ||||||
| Exchange differences on translating | ||||||
| foreign operations | - | - | - | -48 | - | |
| Cash flow hedging, net of tax | - | - | 6 | - | - | |
| Total comprehensive profit (loss) | ||||||
| for the period | 0 | 0 | 6 | -48 | -1 074 | |
| Dividends | - | - | - | - | - | |
| Equity-settled share-based transactions | - | - | 12 | - | - | |
| EQUITY June 30, 2010 | 8 010 | 6 498 | 312 | 7 | 7 122 | |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | ||||||
| To the owners | ||||||
| of the Parent | EQUITY | |||||
| (EUR 1 000) | company | TOTAL | ||||
| EQUITY Jan. 1, 2010 | 23 053 | 23 053 | ||||
| Profit (loss) for the period | -1 074 | -1 074 | ||||
| Comprehensive profit (loss) for the period: | ||||||
| Exchange differences on translating | ||||||
| foreign operations | -48 | -48 | ||||
| Cash flow hedging, net of tax | 6 | 6 | ||||
| Total comprehensive profit (loss) | ||||||
| for the period | -1 116 | -1 116 | ||||
| Dividends | - | - | ||||
| Equity-settled share-based transactions | 12 | 12 | ||||
| EQUITY June 30, 2010 | 21 948 | 21 948 | ||||
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ||||||
| 1. General information | ||||||
| Raute Group is a globally operating technology corporation which manufactures complete mills, | ||||||
| production lines and single machines for the veneer, plywood and LVL industries. Raute’s technology offering | ||||||
| covers the customers’ entire production process, ranging from raw material processing to the finishing and | ||||||
| packaging of end products. Additionally, Raute’s full service concept includes technology services, such as | ||||||
| maintenance, spare parts services, equipment modernization, consulting, training and sales of reconditioned machinery. The Group has production units in Finland, Canada and China. The company’s sales network has a global reach. | ||||||
| Raute Group’s Parent company is a Finnish public limited liability company, Raute Corporation, | ||||||
| established in accordance with Finnish law (Business ID FI01490726). Its series A shares are | ||||||
| quoted on NASDAQ OMX Helsinki Ltd., under Industrials. Raute Corporation is domiciled in Lahti, Finland. | ||||||
| The address of its registered office is Rautetie 2, FI-15550 Nastola, Finland, and its postal address is P. O. Box 69, FI-15551 Nastola, Finland. | ||||||
| The Consolidated financial statements are 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 August 9, 2011 reviewed the Group's Interim financial report for | ||||||
| January 1 - June 30, 2011, and approved the Interim financial report for January 1 – June 30, 2011 to be published | ||||||
| in compliance with this release. | ||||||
| 2. Accounting principles | ||||||
| Raute Corporation’s Interim financial report January 1 – June 30, 2011 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. Therefore, the Interim financial report should be read | ||||||
| in conjunction with the Financial statements published for 2010. | ||||||
| Raute Corporation’s Interim financial report for January 1 – June 30, 2011 has been prepared applying the accounting | ||||||
| principles described in the Annual financial statements for 2010 and the following new and amended standards and | ||||||
| interpretations which have taken effect on January 1, 2011 or later: | ||||||
| - IAS 24 Related Party Disclosures, revised | ||||||
| - IAS 32 Classification of Rights Issues, amendment | ||||||
| - IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments | ||||||
| - IFRIC 14 Prepayments of a Minimum Funding Requirement, amendment | ||||||
| - Annual Improvements to standards and interpretations. | ||||||
| The new standards, amendments and interpretations do not have any significant impact on the Group's | ||||||
| Interim financial report. | ||||||
| All the monetary figures presented in the Interim financial report are in thousand euros, unless otherwise stated. | ||||||
| Due to the rounding of the figures in the Interim 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. | ||||||
| The preparation of financial statements according to international financial reporting standards requires | ||||||
| management to use estimates and assumptions. In addition, the management must exercise its judgement in | ||||||
| selecting and applying the accounting policies of the Interim financial report. These estimates and assumptions | ||||||
| affect the assets and liabilities in the Group's balance sheet, the disclosure ofcommitments and possible assets | ||||||
| in the consolidated financial statements, and income and expenses for the period. Actual results may differ from the 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. | ||||||
| 30.6. | 30.6. | 31.12. | ||||
| Wood products technology | 2011 | 2010 | 2010 | |||
| Net sales | 37 763 | 29 982 | 62 867 | |||
| Operating profit | -629 | -1 287 | 1 311 | |||
| Assets | 52 573 | 63 796 | 53 034 | |||
| Liabilities | 30 283 | 41 848 | 28 807 | |||
| Capital expenditure | 668 | 1 684 | 2 224 | |||
| Assets of the wood products technology | 30.6. | 30.6. | 31.12. | |||
| segment by geographical location | 2011 | % | 2010 | % | 2010 | % |
| Finland | 46 652 | 89 | 56 363 | 88 | 44 006 | 83 |
| North America | 2 868 | 5 | 4 522 | 7 | 3 730 | 7 |
| China | 1 521 | 3 | 1 665 | 4 | 4 129 | 8 |
| Russia | 1 240 | 2 | 976 | 2 | 880 | 2 |
| South America | 149 | 0 | 138 | 0 | 160 | 0 |
| Others | 143 | 0 | 132 | 0 | 129 | 0 |
| TOTAL | 52 573 | 100 | 63 796 | 100 | 53 034 | 100 |
| Capital expenditure of the wood products | 30.6. | 30.6. | 31.12. | |||
| technology segment by geographical location | 2011 | % | 2010 | % | 2010 | % |
| Finland | 656 | 98 | 214 | 13 | 590 | 27 |
| North America | 3 | 0 | 1 445 | 86 | 1 606 | 72 |
| China | 6 | 1 | 5 | 0 | 7 | 0 |
| Russia | - | - | - | - | - | - |
| South America | 1 | 0 | 20 | 1 | 21 | 1 |
| Others | 1 | 0 | - | - | - | - |
| TOTAL | 668 | 100 | 1 684 | 100 | 2 224 | 100 |
| 4. Net sales | ||||||
| The main part of the net sales is comprised of project deliveries related to wood products technology that are | ||||||
| treated as long-term projects. The rest of the net sales is comprised of technology services provided to the | ||||||
| wood products industry (spare parts, maintenance and modernization services as well as services provided | ||||||
| to the development of customers' business). | ||||||
| A significant part of the Group's net sales (project deliveries and modernization in technology services) includes | ||||||
| both product and service sales. Breakdown of the Group's net sales into purely product and service sales | ||||||
| cannot be presented reliably. | ||||||
| At the end of the reporting period, the Group had two (2) customers, whose share of the Group's net sales | ||||||
| temporarily exceeded 10 percent due to the nature of project business. | ||||||
| Net sales | 1.1.–30.6. | 1.1.–30.6. | 1.1.–31.12. | |||
| by market area | 2011 | % | 2010 | % | 2010 | % |
| Russia | 12 545 | 33 | 14 554 | 49 | 18 627 | 30 |
| Asia-Pacific | 9 514 | 25 | 5 684 | 19 | 18 442 | 29 |
| Finland | 5 101 | 14 | 1 404 | 5 | 5 094 | 8 |
| Rest of Europe | 4 450 | 12 | 2 531 | 8 | 8 805 | 14 |
| North America | 3 811 | 10 | 4 515 | 15 | 9 551 | 15 |
| South America | 2 244 | 6 | 1 294 | 4 | 2 212 | 4 |
| Others | 98 | 0 | - | - | 136 | 0 |
| TOTAL | 37 763 | 100 | 29 982 | 100 | 62 867 | 100 |
| 5. Long-term projects | 30.6. | 30.6. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Net sales | ||||||
| Net sales by percentage of completion | 31 638 | 25 029 | 51 860 | |||
| Other net sales | 6 125 | 4 953 | 11 007 | |||
| TOTAL | 37 763 | 29 982 | 62 867 | |||
| Project revenues entered as income from currently undelivered | ||||||
| long-term projects recognized by percentage of completion | 53 852 | 38 601 | 50 784 | |||
| Amount of long-term project revenues not yet entered as income (order book) | 32 902 | 26 098 | 31 799 | |||
| Specification of combined asset and liability items | ||||||
| Advance payments paid | 531 | 145 | 147 | |||
| Advance payments received included in inventories in the balance sheet | 531 | 145 | 147 | |||
| Accrued income corresponding to revenues by percentage of completion | 59 646 | 40 635 | 51 200 | |||
| Advance payments received from project customers | -51 610 | -35 442 | -46 490 | |||
| Project receivables included in current assets in the balance sheet | 8 036 | 5 193 | 4 710 | |||
| Advance payments in the balance sheet | 7 559 | 14 624 | 5 243 | |||
| 6. Number of personnel, persons | 30.6. | 30.6. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Effective, on average | 457 | 423 | 438 | |||
| In books, on average | 482 | 517 | 512 | |||
| In books, at the end of period | 486 | 522 | 495 | |||
| - of which personnel working abroad | 120 | 128 | 129 | |||
| 7. Income taxes | ||||||
| The taxes in the consolidated income statement include the taxes corresponding to the Group companies' taxable | ||||||
| profit for the financial period as well as tax adjustments for the previous years and the change in deferred taxes. | ||||||
| Current tax based on the taxable income is calculated on taxable income using the tax rate in force in each country. | ||||||
| Deferred tax receivables are recognized to the extent that it is probable that taxable profits will be available | ||||||
| against which temporary differences can be utilized. | ||||||
| 8. Research and development costs | 30.6. | 30.6. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Research and development costs for the period | 781 | 780 | 1 849 | |||
| Amortization of previously capitalized development costs | 148 | 191 | 395 | |||
| Development costs recognized as an asset in the balance sheet | - | -17 | -41 | |||
| Research and development costs entered as expenses for the period | 928 | 953 | 2 203 | |||
| 9. Changes in Intangible assets and in Property, | 30.6. | 30.6. | 31.12. | |||
| plant and equipment | 2011 | 2010 | 2010 | |||
| Intangible assets | ||||||
| Carrying amount at the beginning of the period | 11 759 | 11 462 | 11 462 | |||
| Exchange rate differences | -15 | 46 | 71 | |||
| Additions | 64 | 55 | 151 | |||
| Other reclassifications between items | 23 | 57 | 75 | |||
| Carrying amount at the end of the period | 11 830 | 11 620 | 11 759 | |||
| Accumulated depreciation and amortization at the beginning of the period | -10 418 | -9 630 | -9 631 | |||
| Exchange rate differences | 9 | -24 | -16 | |||
| Depreciation for the period | -319 | -380 | -771 | |||
| Accumulated depreciation and amortization at the end of the period | -10 729 | -10 035 | -10 418 | |||
| Book value of intangible assets, at the beginning of the period | 1 341 | 1 831 | 1 831 | |||
| Book value of intangible assets, at the end of the period | 1 102 | 1 585 | 1 341 | |||
| Property, plant and equipment | ||||||
| Carrying amount at the beginning of the period | 43 714 | 42 022 | 42 022 | |||
| Exchange rate differences | -546 | 1 772 | 1 696 | |||
| Additions | 310 | 1 627 | 2 060 | |||
| Disposals | -31 | -952 | -1 989 | |||
| Other reclassifications between items | -23 | -1 091 | -75 | |||
| Carrying amount at the end of the period | 43 424 | 43 378 | 43 714 | |||
| Accumulated depreciation and amortization at the beginning of the period | -34 800 | -31 755 | -31 755 | |||
| Exchange rate differences | 474 | -1 593 | -1 568 | |||
| Depreciation for the period | -758 | -728 | -1 478 | |||
| Accumulated depreciation and amortization at the end of the period | -35 085 | -34 076 | -34 801 | |||
| Book value of Property, plant and equipment, at the beginning of the period | 8 913 | 10 267 | 10 267 | |||
| Book value of Property, plant and equipment, at the end of the period | 8 338 | 9 301 | 8 913 | |||
| 10. Related party transactions | ||||||
| Raute Group's related parties consist of Board members, President and CEO, Presidents of the subsidiaries and | ||||||
| Raute Corporation's Sickness Fund. Based on the authorization given by the Annual General Meeting 2010, | ||||||
| the Board of Directors of Raute Corporation has granted stock options to the management. The main items of | ||||||
| the terms and conditions of the stock option system granted during the financial year 2010 have been presented | ||||||
| in the annual financial statement 2010. The main items of the terms and conditions of the stock option system | ||||||
| granted during the reporting period 2011 and the impact of all granted option systems on the profit (loss) for | ||||||
| the reporting period, have been presented in the note number 15. Group management's other employee | ||||||
| benefits are presented in the annual financial statement. | ||||||
| 11. Interest-bearing liabilities | 30.6. | 30.6. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Non-current interest-bearing liabilities recognized at amortized cost | 7 767 | 12 253 | 10 000 | |||
| Current interest-bearing liabilities | 3 315 | 4 215 | 4 439 | |||
| TOTAL | 11 082 | 16 469 | 14 439 | |||
| Maturities, non-current and current liabilities total | ||||||
| Financial liability | Under 1 year | 1 - 5 years | ||||
| Pension loans (TyEL) | 2 000 | 3 000 | ||||
| Loans from financial institutions | 1 000 | 4 768 | ||||
| Other loans | 315 | - | ||||
| Total | 3 315 | 7 768 | ||||
| During the reporting period, Raute Corporation drew out a financial institution loan in the amount of | ||||||
| SEK 52.9 million. The interest rate and currency risks of the interest-bearing currency-denominated loan | ||||||
| are hedged with an interest rate and currency swap agreement. | ||||||
| 12. Other lease liabilities | 30.6. | 30.6. | 31.12. | |||
| Group as lessee | 2011 | 2010 | 2010 | |||
| Minimum rents paid on the basis of other | ||||||
| non-cancellable leases: | ||||||
| - Within one year | 551 | 568 | 547 | |||
| - After the period of more than one and less than five years | 1 051 | 1 071 | 1 157 | |||
| - More than five years | 610 | 778 | 701 | |||
| TOTAL | 2 212 | 2 418 | 2 406 | |||
| The Group has rented in a part of office and production premises. The rental agreements are made | ||||||
| for the time being or for the fixed-term. | ||||||
| The agreements made for the fixed-term include an option to extend the rental period after the date of | ||||||
| initial expiration. | ||||||
| 13. Pledged assets and contingent liabilities | ||||||
| Raute Group has non-current credit regulation agreements worth EUR 10 million (MEUR 10) of which | ||||||
| EUR 8 million (MEUR 7) were unused on June 30, 2011. The unused credit limit is secured by a | ||||||
| EUR 3 million business mortgage. | ||||||
| Raute Corporation has a EUR 10 million (MEUR 10) domestic commercial paper program, which allows | ||||||
| it to issue commercial papers maturing in less than one year. The program is arranged by Nordea Bank | ||||||
| Finland Plc. | ||||||
| 30.6. | 30.6. | 31.12. | ||||
| 2011 | 2010 | 2010 | ||||
| Pledged assets on behalf of the Parent company | ||||||
| Loans from financial institutions | 5 768 | - | - | |||
| - Business mortgages | 3 500 | - | - | |||
| Pension loans (TyEL) | 5 000 | 16 000 | 14 000 | |||
| - Business mortgages | 1 500 | 4 700 | 6 700 | |||
| - Pledged assets | - | 2 000 | 1 000 | |||
| - Credit insurance agreements | 3 500 | 4 900 | 4 900 | |||
| Other loans | 100 | 100 | 100 | |||
| - Real estate mortgages | 101 | 134 | 134 | |||
| Commercial bank guarantees on behalf of the Parent | ||||||
| company and subsidiaries | 12 426 | 28 235 | 10 154 | |||
| Mortgage agreements on behalf of subsidiaries | ||||||
| Loans from financial institutions | 215 | 216 | 227 | |||
| - Business mortgages | 200 | 200 | 200 | |||
| - Counter guarantees | - | - | 3 100 | |||
| Other lease liabilities | 2 212 | 2 418 | 2 406 | |||
| Loans and guarantees on behalf of the related party | ||||||
| No loans are granted to the company's management. | ||||||
| No pledges have been given or other commitments made on behalf of the company's management and shareholders. | ||||||
| 14. Currency derivatives and hedging instruments | 30.6. | 30.6. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Currency derivatives are used for hedging purposes. | ||||||
| Nominal values of forward contracts in foreign currency | ||||||
| Economic hedging | ||||||
| - Related to financing | 6 548 | 2 172 | 189 | |||
| - Related to hedging of net sales | 137 | 542 | 283 | |||
| Hedge accounting | ||||||
| - Related to the hedging of net sales | - | 1 465 | - | |||
| Fair values of forward contracts in foreign currency | ||||||
| Economic hedging | ||||||
| - Related to financing | -4 | 26 | - | |||
| - Related to the hedging of net sales | 2 | -11 | 2 | |||
| Hedge accounting | ||||||
| - Related to the hedging of net sales | - | 7 | - | |||
| Interest rate swap | ||||||
| - Nominal value | 5 924 | - | - | |||
| - Fair value | -78 | - | - | |||
| 15. Share-based payments | ||||||
| The fair value of the options granted according to the 2010 stock option plan is recognized as an expense in | ||||||
| the income statement during the earning period of the options. The options granted during the financial year | ||||||
| 2010 are measured at fair value at their grant date May 5, 2010. Based on the authorization given by the | ||||||
| Annual General Meeting, the Board of Directors of Raute Corporation has granted 75,000 stock options | ||||||
| marked with symbol 2010 B to the Group's key persons during the reporting period. The granted options | ||||||
| have been valued at fair value upon the grant date May 31, 2011. | ||||||
| The conditions of the option system are: | ||||||
| Arrangement | Stock option | |||||
| Grant date | May 31, 2011 | |||||
| Options granted | 75,000 pcs | |||||
| Subscription price | EUR 9.83 | |||||
| Share price at the grant date | EUR 10.50 | |||||
| Exercise period | 3 years | |||||
| Subscription period | March 1, 2014 to March 31, 2017 | |||||
| Settlement | Shares | |||||
| An expense of EUR 47 thousand was recognized for the options in the income statement during the | ||||||
| reporting period. | ||||||
| 16. Exchange rate used | ||||||
| 1.1.–30.6. | 1.1.–30.6. | 1.1.–31.12. | ||||
| Income statement, euros | 2011 | 2010 | 2010 | |||
| USD (US dollar) | 1,4031 | 1,3285 | 1,3268 | |||
| CAD (Canadian dollar) | 1,3703 | 1,3737 | 1,3665 | |||
| SGD (Singapore dollar) | 1,7654 | 1,8556 | 1,8080 | |||
| CLP (Chilean peso) | 666,7786 | 696,0297 | 675,8537 | |||
| RUB (Russian rouble) | 40,1449 | 39,9227 | 40,2780 | |||
| CNY (Chinese juan) | 9,1760 | 9,0678 | 8,9805 | |||
| 30.6. | 30.6. | 31.12. | ||||
| Balance sheet, euros | 2011 | 2010 | 2010 | |||
| USD (US dollar) | 1,4453 | 1,2271 | 1,3362 | |||
| CAD (Canadian dollar) | 1,3951 | 1,2890 | 1,3322 | |||
| SGD (Singapore dollar) | 1,7761 | 1,7160 | 1,7136 | |||
| CLP (Chilean peso) | 675,7233 | 655,0369 | 626,1104 | |||
| RUB (Russian rouble) | 40,4000 | 38,2820 | 40,8200 | |||
| CNY (Chinese juan) | 9,3187 | 8,3245 | 8,7873 | |||
| GROUP KEY RATIOS | 1.1.–30.6. | 1.1.–30.6. | 1.1.–31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Return on investment (ROI), % | -0,6 | -3,6 | 5,1 | |||
| Return on equity (ROE), % | -6,4 | -9,5 | 4,9 | |||
| Gearing, % | -35,9 | -74,6 | -39,8 | |||
| Equity ratio, % | 49,5 | 44,6 | 50,7 | |||
| Order book, EUR million | 35 | 28 | 33 | |||
| Order intake, EUR million | 39 | 34 | 72 | |||
| Exported portion of net sales, % | 86,5 | 95,3 | 91,9 | |||
| Change in net sales, % | 26,0 | 43,2 | 71,6 | |||
| Gross capital expenditure, EUR million | 0,7 | 1,7 | 2,2 | |||
| % of net sales | 1,8 | 5,6 | 3,5 | |||
| Research and development costs, EUR million | 0,8 | 0,8 | 1,8 | |||
| % of net sales | 2,1 | 2,6 | 2,9 | |||
| Earnings per share (EPS), EUR | ||||||
| - undiluted | -0,19 | -0,27 | 0,29 | |||
| - diluted | -0,19 | -0,27 | 0,29 | |||
| Equity to share, EUR | 5,57 | 5,48 | 6,05 | |||
| Dividend per share series K shares, EUR | - | - | 0,30 | |||
| Dividend per share series A shares, EUR | - | - | 0,30 | |||
| Dividend per profit, % | - | - | 103,8 | |||
| Effective dividend return, % | - | - | 3,1 | |||
| Share price at the end of the financial year, EUR | 9,81 | 7,37 | 9,70 | |||
| Number of shares | ||||||
| - weighted average, 1 000 pcs | 4 005 | 4 005 | 4 005 | |||
| - diluted, 1 000 pcs | 4 012 | 4 030 | 4 005 | |||
| Calculation of key ratios | ||||||
| Return on investment (ROI), % = | Profit before tax + financial expenses | |||||
| -------------------------------------------------------------------------------- | x 100 | |||||
| Shareholders' equity + interest-bearing financial liabilities (average | ||||||
| of the period) | ||||||
| Return on equity (ROE), % = | Profit/loss for the period | |||||
| ------------------------------------------------------------------------------ | x 100 | |||||
| Shareholders' equity (average of the period) | ||||||
| Interest-bearing net liabilities = | Interest-bearing liabilities ./. (cash and cash equivalents + financial | |||||
| assets at fair value through profit or loss) | ||||||
| Equity ratio, % = | Shareholders' equity | |||||
| -------------------------------------------------------------------- | x 100 | |||||
| Balance Sheet total ./. advances received | ||||||
| Earnings per share, undiluted, | Profit for the period | |||||
| euros = | --------------------------------------------------------------------------------- | |||||
| Equity issue-adjusted average number of shares during the period | ||||||
| Earnings per share, diluted, | Diluted profit for the period | |||||
| euros = | --------------------------------------------------------------------------------- | |||||
| Diluted equity issue-adjusted average number of shares | ||||||
| Share of shareholders' equity belonging to the owners | ||||||
| Equity to share, euros = | of the Parent company | |||||
| -------------------------------------------------------------------------------- | ||||||
| Undiluted number of shares at the end of the period | ||||||
| Dividend per share, euros = | Distributed dividend for the financial year | |||||
| -------------------------------------------------------------------------------- | ||||||
| Undiluted number of shares at the end of the financial year | ||||||
| Dividend per profit, % = | Dividend per share | |||||
| ------------------------------------------------------- | x 100 | |||||
| Earnings per share | ||||||
| Effective dividend return, % = | Dividend per share | |||||
| ------------------------------------------------------------------------------- | x 100 | |||||
| Closing share price at the end of the financial year | ||||||
| Price/earnings ratio (P/E ratio) = | Closing share price at the end of the period | |||||
| ---------------------------------------------------------- | ||||||
| Earnings per share | ||||||
| Trend in share turnover, in volume and percentage figures (series A shares)= | ||||||
| The trend in turnover of shares is given as the number of shares traded during the | ||||||
| period and as the percentage of the average undiluted number of | ||||||
| traded shares relative to issued share stock during the period. | ||||||
| Market value of capital stock = | Undiluted number of shares at the end of the period (series A + series K shares) x | |||||
| closing price of the share on the last day of the period | ||||||
| Gearing, % = | Interest-bearing net financial liabilities | |||||
| -------------------------------------------------------------- | x 100 | |||||
| Shareholders' equity | ||||||
| DEVELOPMENT OF | Q 2 | Q 1 | Q 4 | Q 3 | Rolling | Rolling |
| QUARTERLY RESULTS | 2011 | 2011 | 2010 | 2010 | 1.7.2010 | 1.7.2009 |
| (EUR 1 000) | – | – | ||||
| 30.6.2011 | 30.6.2010 | |||||
| NET SALES | 23 136 | 14 627 | 13 396 | 19 490 | 70 648 | 45 690 |
| Other operating income | 68 | 32 | 10 | 4 431 | 4 541 | 152 |
| Change in inventories of finished | ||||||
| goods and work in progress | 723 | 95 | 815 | -45 | 1 588 | -12 |
| Materials and services | -13 891 | -7 067 | -7 395 | -11 001 | -39 355 | -20 994 |
| Expenses from employee benefits | -6 137 | -6 047 | -6 418 | -5 450 | -24 053 | -22 127 |
| Depreciation and amortization | -538 | -542 | -574 | -580 | -2 234 | -2 426 |
| Other operating expenses | -2 547 | -2 540 | -2 166 | -1 913 | -9 166 | -7 168 |
| Total operating expenses | -23 113 | -16 196 | -16 554 | -18 944 | -74 807 | -52 716 |
| OPERATING PROFIT | 814 | -1 442 | -2 333 | 4 932 | 1 971 | -6 886 |
| % of net sales | 4 | -10 | -17 | 25 | 3 | -15 |
| Financial income | 313 | 211 | 266 | -98 | 691 | 676 |
| Financial expenses | -362 | -318 | -338 | 21 | -996 | -910 |
| PROFIT (LOSS) BEFORE TAX | 764 | -1 550 | -2 406 | 4 855 | 1 665 | -7 120 |
| % of net sales | 3 | -11 | -18 | 25 | 2 | -16 |
| Income taxes | -244 | 285 | 538 | -755 | -177 | 1 341 |
| PROFIT (LOSS) FOR THE PERIOD | 520 | -1 265 | -1 868 | 4 100 | 1 488 | -5 779 |
| % of net sales | 2 | -9 | -14 | 21 | 2 | -13 |
| Attributable to | ||||||
| Equity holders of the Parent company | 520 | -1 265 | -1 868 | 4 100 | 1 488 | -5 779 |
| Earnings per share, EUR | ||||||
| Undiluted earnings per share | 0,13 | -0,32 | -0,47 | 1,02 | ||
| Diluted earnings per share | 0,13 | -0,32 | -0,47 | 1,02 | ||
| Shares, 1 000 pcs | ||||||
| Adjusted average number of shares | 4 005 | 4 005 | 4 005 | 4 005 | ||
| Adjusted average number of shares, diluted | 4 012 | 4 014 | 4 005 | 4 005 | ||
| LARGEST SHAREHOLDERS AT | Number of | Number of | ||||
| JUNE 30, 2011 | series K | series A | ||||
| shares | shares | Total | ||||
| (20 votes | (1 vote | number | ||||
| per share) | per share) | of shares | ||||
| 1. Sundholm Göran | - | 601 433 | 601 433 | |||
| 2. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 | |||
| 3. Mustakallio Kari Pauli | 60 480 | 59 500 | 119 980 | |||
| 4. Suominen Pekka | 48 000 | 62 429 | 110 429 | |||
| 5. Suominen Tiina Sini-Maria | 48 000 | 62 316 | 110 316 | |||
| 6. Sijoitusrahasto Alfred Berg Small Cap Finland | - | 107 587 | 107 587 | |||
| 7. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | |||
| 8. Mandatum Henkivakuutusosakeyhtiö | - | 96 900 | 96 900 | |||
| 9. Kirmo Kaisa Marketta | 50 280 | 41 826 | 92 106 | |||
| 10. Lisboa De Castro Palacios Hietala M | - | 85 000 | 85 000 | |||
| 11. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | |||
| 12. Mustakallio Mika Tapani | 49 180 | 34 670 | 83 850 | |||
| 13. Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | |||
| 14. Mustakallio Ulla Sinikka | 47 240 | 30 862 | 78 102 | |||
| 15. Relander Harald Bertel | - | 65 000 | 65 000 | |||
| 16. Mustakallio Marja Helena | 43 240 | 18 162 | 61 402 | |||
| 17. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 | |||
| 18. Särkijärvi Timo | 12 000 | 43 256 | 55 256 | |||
| 19. Kirmo Lasse | 30 000 | 24 110 | 54 110 | |||
| 20. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | |||
| TOTAL | 618 100 | 1 605 694 | 2 223 794 | |||
| Share of total amount of shares, % | 62,4 | 53,3 | 55,5 | |||
| Share of total voting rights, % | 62,4 | 53,3 | 61,2 | |||
| Nominee-registered | 85 994 | 85 994 | ||||
| Other shareholders | 373 061 | 1 321 899 | 1 694 960 | |||
| TOTAL | 991 161 | 3 013 587 | 4 004 748 | |||
| MANAGEMENT'S SHAREHOLDING | 144 470 | 141 049 | 285 519 | |||
| Share of total amount of shares, % | 14,6 | 4,7 | 7,1 | |||
| Share of total voting rights, % | 14,6 | 4,7 | 13,3 | |||
| SHARE INFORMATION | 30.6. | 30.6. | 31.12. | |||
| 2011 | 2010 | 2010 | ||||
| Number of shares | ||||||
| - Series K shares, ordinary shares (20 votes/share) | 991 161 | 991 161 | 991 161 | |||
| - Series A shares (1 vote/share) | 3 013 597 | 3 013 597 | 3 013 597 | |||
| Total | 4 004 758 | 4 004 758 | 4 004 758 | |||
| Trading of the company's shares (series A shares) | ||||||
| Trading of shares, pcs | 185 108 | 356 761 | 646 052 | |||
| Trading of shares, EUR million | 1,9 | 2,8 | 5,2 | |||
| Share price of the series A shares | ||||||
| At the end of the period, EUR | 9,81 | 7,37 | 9,70 | |||
| Highest price during the period, EUR | 11,55 | 9,34 | 10,10 | |||
| Lowest price during the period, EUR | 9,07 | 7,24 | 7,24 | |||
| Average price during the period, EUR | 10,41 | 7,88 | 8,21 | |||
| Market value of capital stock | ||||||
| - Series K shares, EUR million* | 9,7 | 7,3 | 9,6 | |||
| - Series A shares, EUR million | 29,6 | 22,2 | 29,2 | |||
| Total, EUR million | 39,3 | 29,5 | 38,8 | |||
| *Series K shares valued at the value of series A shares at the end of reporting period. | ||||||
| RAUTE CORPORATION | ||||||
| Board of Directors | ||||||
| BRIEFING ON AUGUST 9, 2011 AT 2 P.M.: | ||||||
| A briefing for analysts, investors and the media will be organized on August 9, 2011 at 2 p.m. at Scandic | ||||||
| Simonkenttä Hotel, Roba cabinet, Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, | ||||||
| President and CEO, and Mrs. Arja Hakala, CFO. | ||||||
| NEXT INTERIM REPORT: | ||||||
| Raute Corporation’s interim report January 1 – September 30, 2011 will be published on Tuesday, | ||||||
| November 1, 2011. | ||||||
| FURTHER INFORMATION: | ||||||
| Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560, mobile +358 400 814 148 | ||||||
| Mrs. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile +358 400 710 387 | ||||||
| DISTRIBUTION: | ||||||
| NASDAQ OMX 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 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 services ranging from repairs and spare parts deliveries to regular | ||||||
| maintenance and equipment modernizations. Raute’s head office is located in Nastola, Finland. | ||||||
| Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in | ||||||
| Kajaani, Finland. Raute’s net sales in 2010 were EUR 62.9 million. The number of personnel | ||||||
| at the end of 2010 was 495. More information on the company can be found at www.raute.com. | ||||||