Raute Corporation - Interim report January 1 - March 31, 2014

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RAUTE CORPORATION INTERIM REPORT APRIL 29, 2014 AT 9:00 A.M.


RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – MARCH 31, 2014

- The Group’s net sales in the first quarter of the year, EUR 15.0 million (MEUR 23.4), declined 36 percent on the comparison period.
- The operating profit was EUR -1.9 million (MEUR +0.9). The profit before taxes was EUR -1.9 million (MEUR +1.1).
- Earnings per share were EUR -0.40 (EUR 0.21).
- The order intake was EUR 16 million (MEUR 10). The order book at the end of the reporting period amounted to EUR 28 million (MEUR 37).
- The outlook for financial performance remains unchanged. Raute’s net sales are expected to grow in 2014 and operating profit to improve over the year 2013.


TAPANI KIISKI, PRESIDENT AND CEO: SLOW START TO 2014, TARGETS ARE THE SAME

We kicked off the year with high expectations. Our tender book and ongoing negotiations gave us reason to be confident about opportunities for growth, especially in Europe and Russia. I also expected to see some progress in the first quarter in a few major projects that were under lengthy negotiations. But that did not happen. This was partly due to the market developing more slowly than I had predicted, but the biggest single reason is Russia’s poor economic development, which was further exacerbated by the political events stemming from the crisis in Ukraine. Several projects, some of which were even substantial, that our customers had planned to launch in early 2014 have now been postponed to the future.

The volume of new orders, and as a consequence our net sales, remained very low in the first quarter. In addition, the schedules of a few projects in our order book have been delayed, which has hindered our accumulation of net sales during the first quarter. Such a low level of net sales also puts our result substantially at a loss. The new products we have designed and launched, particularly in emerging markets, have been positively received, but their net sales were not sufficient to offset other disappointing areas.

Despite the very poor start to the year, I believe we can reach our targeted improvement over last year, when it comes to both net sales and profit. The market situation in North America has improved and I believe it will continue to do so. Projects in which we have a strong position are also under way in Europe and Africa. And the market has not come to a complete standstill in Russia, even though it will take some time for this sluggish period to end. I believe that there, too, new projects will be started up, in spite of the weakened growth prospects. In Asia, our new products are improving our position.


RAUTE CORPORATION – INTERIM REPORT JANUARY 1–MARCH 31, 2014

BUSINESS ENVIRONMENT

Market situation in customer industries
Raute’s customers in the veneer, plywood and LVL (Laminated Veneer Lumber) industries are engaged in the manufacture of wood products used in investment commodities 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 quarter of 2014 has not considerably changed with respect to Raute or Raute’s customer base. The uncertainty and tension persisted. In North America, the upswing in the construction market has continued, as it has in some parts of Europe. Russia’s economic situation remained weak, which has been reflected in, for example, low investment volumes and the weakening ruble – even before the crisis in Ukraine. The uncertainty caused by the crisis in Ukraine has weakened the situation further.

Demand for wood products technology and technology services
In Raute’s customer base, the start-up of major projects that were in the planning phase have again been delayed. For some projects, the concrete reason is the uncertainty about Russia’s future development in light of the situation in Ukraine. A number of smaller projects involving single production lines and modernizations have also been postponed. In some of these cases, as well, the crisis in Ukraine is to blame. The investments that have been initiated mainly involve replacing lines and projects to boost production capacity.

It is difficult to forecast when demand in the Russian market will recover so as to generate concrete orders. In other market areas, plans are being made to realize projects as usual.

Demand for maintenance and spare parts services continued at a good level. This bears testimony to the fact that the utilization rates of Raute’s customers’ production facilities remained, for the most part, good.

ORDER INTAKE AND ORDER BOOK

Raute serves the wood products industry with a full-service concept based on service that encompasses the entire life cycle of the delivered equipment. Raute’s business consists of project deliveries and technology services. Project deliveries comprise complete production machinery for new mills, production lines and individual machines and equipment. 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.

During the reporting period, order intake remained at a low level, amounting to EUR 16 million (MEUR 10). 60 percent of the new orders came from Europe (51%), 19 percent from Russia (18%), 10 percent from South America (10%), 9 percent from North America (18%) and 2 percent from Asia-Pacific (3%). The strong fluctuations in the distribution of new orders between the various market areas are typical for project-focused business.

Order intake in technology services amounted to EUR 7 million (MEUR 9).

The order book amounted to EUR 28 million (MEUR 37) at the end of the reporting period.

COMPETITIVE POSITION

Raute’s competitive position is good. Raute’s solutions help customers in securing their delivery and service capabilities throughout the life cycle of the equipment or service offered by Raute. In such investments, the supplier’s overall expertise and extensive and diverse technology offering play a key role. The competitive edge provided by Raute is also a major draw 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 totaled EUR 15.0 million (MEUR 23.4), down 36 percent compared to the first quarter of 2013. The decline resulted from the low order intake and from the scheduling of the order book.

Of the total net sales for the reporting period, Europe accounted for 43 percent (39%), South America for 19 percent (32%), Russia for 18 percent (15%), North America for 16 percent (9%), and Asia-Pacific for 4 percent (4%).

Technology services accounted for 47 percent (26%) of the Group’s total net sales and amounted to EUR 7 million (MEUR 6).  Net sales grew 17 percent on the comparison period, mainly due to modernizations.

RESULT AND PROFITABILITY

Operating profit for the reporting period was EUR 1.9 million negative (MEUR +0.9) and accounted for -13 percent (+5%) of net sales. The negative operating profit was due to low net sales.

The profit before tax for the reporting period was EUR 1.9 million negative (MEUR +1.1). The profit for the reporting period was EUR 1.6 million negative (MEUR +0.8). Earnings per share (undiluted) were EUR -0.40 (EUR 0.21).

CASH FLOW AND BALANCE SHEET

The Group’s financial position remained good. At the end of the reporting period, gearing was -38 percent (-24%) and the equity ratio 51 percent (50%). 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 13.6 million (MEUR 17.4) at the end of the reporting period. Operating cash flow was EUR 1.3 million positive (MEUR 1.4 negative). Cash flow from investment activities totaled EUR 0.3 million negative (MEUR 0.7 negative). Cash flow from financing activities totaled EUR 0.0 million (MEUR 0.1 negative).

Interest-bearing liabilities amounted to EUR 6.0 million (MEUR 11.5) 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 17 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:

February 12, 2014 Long-term share-based incentive plan for Raute’s upper management for the years  2014–2018
February 25, 2014  Share subscription with Raute Corporation’s 2010 A stock options
March 31, 2014 Decisions by Raute’s Annual General Meeting 2014.

RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE

Raute’s goal is to be the leading technology supplier in its field, and to invest strongly in continuous research and development, particularly in plywood and LVL manufacturing technology and the supporting by-product handling, automation and instrumentation applications, especially machine vision.

Research and development costs in the reporting period totaled EUR 0.4 million (MEUR 0.7), representing 2.6 percent of net sales (3.0%).

Investments totaled EUR 0.5 million (MEUR 0.8) and 3.2 percent of net sales (3.5%) in the reporting period.

PERSONNEL

At the end of the reporting period, the Group’s personnel numbered 516 (509). Group companies outside Finland accounted for 27 percent (27%) of employees.

Converted to full-time employees (“effective headcount”), the average number of employees was 495 (494) during the reporting period.

The temporary lay-offs that started at the end of 2013 at the company’s Nastola and Jyväskylä units for a maximum of 90 days continued into March.

In a business transaction carried out at the end of March, Raute Corporation sold the Jyväskylä unit’s engineering operations to Insinööritoimisto Comatec Oy.  The eight engineers who worked in the unit transferred to the employ of Comatec as senior employees as of April 1, 2014. The business transaction is in line with Raute’s strategy and reinforces its ability to adjust to the markets’ rapid and changing need for resources.

SHARES

The number of Raute Corporation’s shares at the end of the reporting period totaled 4,006,828, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,015,667 series A shares (1 vote/share). The shares have a nominal value of two euros. 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 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 32.1 million (MEUR 36.2), with series K shares valued at the closing price of series A shares on March 31, 2014, that is EUR 8.00 (EUR 9.05).

STOCK OPTION SCHEME 2010

At the end of the reporting period, the Group’s key personnel held altogether 77,930 of the company’s series 2010 A stock options, 80,000 series B stock options and 80,000 series C stock options. The subscription period for series A stock options began on March 1, 2013 and for series B stock options on March 1, 2014. On February 4, 2014, a total of 2,070 new series A shares were subscribed for under the series A stock option rights. More detailed information concerning the stock option system is available on the company’s website.

SHAREHOLDERS

The number of shareholders totaled 1,915 at the beginning of the year and 1,960 at the end of the reporting period. Series K shares were held by 47 private individuals (49) at the end of the reporting period. Nominee-registered shares accounted for 3.1 percent (3.4%) of shares. No flagging notifications were given to the company during the reporting period.

The Board of Directors, the President and CEO as well as the Executive Board held altogether 235,979 company shares, equaling 5.9 percent (5.7%) of the company shares and 11.3 percent (11.2%) of the votes at the end of the reporting period.

CORPORATE GOVERNANCE

Raute Corporation complies with the Finnish Corporate Governance Code 2010 for listed companies issued by the Securities Market Association on June 15, 2010.

Raute deviates from the Code’s 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. The Board views this exception as justified, taking into consideration the company’s ownership structure and the possibility to consider the expectations of major shareholders as early as in the preparation phase of selecting members of the Board of Directors. 

ANNUAL GENERAL MEETING 2014

Raute Corporation’s Annual General Meeting was held on March 31, 2014. The Annual General Meeting adopted the financial statements for 2013, discharged those accountable from liability and resolved to distribute a dividend of EUR 0.20 per share. The AGM also resolved to distribute EUR 0.30 per share as repayment of equity from the invested non-restricted equity reserve.

The Annual General Meeting elected the company’s Board of Directors for a term that expires at the end of the Annual General Meeting of 2015. Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio Vice-Chair, and Mr. Joni Bask, Mr. Risto Hautamäki, Ms. Päivi Leiwo-Svensk, and Mr. Pekka Suominen were elected Board members.

The authorized public accounting company PricewaterhouseCoopers was chosen as auditor, with Authorized Public Accountant Janne Rajalahti as the principal auditor.

The Annual General Meeting resolved that the remuneration paid to the Chairman of the Board will continue to be EUR 40,000 and to the Vice-Chairman of the Board and Board members EUR 20,000 for the term of office and that the Board members’ traveling expenses will be compensated in accordance with the company’s travel policy. The auditors’ remuneration will be paid on the basis of reasonable invoicing as approved by the company.

The Annual General Meeting authorized the Board of Directors to decide on the repurchase of the company’s series A shares with assets from the company’s non-restricted equity and an issue of a maximum of 400,000 of these shares.

More detailed information on the decisions of the Annual General Meeting can be found in the stock exchange release issued on March 31, 2014.

Distribution of profits for the 2013 financial year
The Annual General Meeting held on March 31, 2014 decided to pay a dividend of EUR 0.20 per share for the financial year 2013. The total amount of dividends is EUR 0.8 million, with series A shares accounting for EUR 603,133.40 (EUR 1,506,798.50) and series K shares for EUR 198,232.20 (EUR 495,580.50). The dividend payment date was April 10, 2014.

The AGM on March 31, 2014, resolved, on the basis of the balance sheet adopted in respect of the financial year ended on 31 December 2013, on the repayment of assets from the invested non-restricted equity reserve in the amount of EUR 0.30 per share, i.e. a total of EUR 1,202,048.40 and the remainder, EUR 5,296,293.53, to be retained in equity. The date of repayment of equity was April 10, 2014.

EVENTS AFTER THE REPORTING PERIOD

Board of Directors and Board Committees
The Board of Directors elected by Raute Corporation’s Annual General Meeting on March 31, 2014 held a constitutive meeting.

Based on the evaluation of independence, Chairman Erkki Pehu-Lehtonen and members Joni Bask, Risto Hautamäki, Päivi Leiwo-Svensk, Mika Mustakallio, and Pekka Suominen are independent of the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Ms. Päivi Leiwo-Svensk 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 Mr. Mika 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 Mr. Mika 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 the uncertainty concerning the development of the financial markets. During the reporting period, there were no essential changes in the business risks described in the 2013 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. The crisis in Ukraine has contributed to the uncertainty surrounding the realization of new investments in Russia in the near future.

OUTLOOK FOR 2014

Raute’s business operations are characterized by the sensitivity of investment commodity demand to cyclical fluctuations in the global economy and the financial markets.

No changes have occurred in Raute’s profit outlook for the whole of 2014. Based on the tender book and ongoing negotiations, Raute’s net sales are expected to grow in 2014 and operating profit to improve over the previous year.


TABLES SECTION OF THE INTERIM REPORT

The figures for the financial year 2013 presented in the tables section of the interim report have been audited. The presented interim financial report figures have not been audited.

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1.1.–31.3. 1.1.–31.3. 1.1.–31.12.
(EUR 1 000) Note 2014 2013 2013
         
NET SALES 3,4,5 15 020 23 386 83 274
         
Change in inventories of finished goods and work in progress   69 364 -954
         
Other operating income   25 20 295
         
Materials and services   -7 197 -12 979 -40 711
Employee benefits expense 13 -7 164 -6 871 -27 417
Depreciation and amortization   -465 -479 -2 174
Other operating expenses   -2 209 -2 532 -10 485
Total operating expenses   -17 035 -22 862 -80 787
         
OPERATING PROFIT (LOSS)   -1 920 909 1 828
% of net sales   -13 4 2
         
Financial income   205 400 735
Financial expenses   -213 -224 -974
         
PROFIT (LOSS) BEFORE TAX   -1 928 1 085 1 589
% of net sales   -13 5 2
         
Income taxes   345 -246 -394
PROFIT (LOSS) FOR THE PERIOD   -1 583 839 1 196
% of net sales   -11 4 1
         
Other comprehensive income items:        
Items that will not be reclassified to profit or loss        
Remeasurement of defined benefit obligations - - 84
         
Items that may be subsequently reclassified to profit or loss        
Exchange differences on translating foreign operations 3 -6 -83
Comprehensive income items for the period, net of tax 3 -6 -1
         
COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD -1 580 833 1 196
         
Profit (loss) for the period attributable to      
Equity holders of the Parent company   -1 583 839 1 196
         
Comprehensive profit (loss) for the period attributable to      
Equity holders of the Parent company   -1 580 833 1 196
         
Earnings per share for profit (loss) attributable      
to Equity holders of the Parent company, EUR      
Undiluted earnings per share   -0,40 0,21 0,30
Diluted earnings per share   -0,40 0,21 0,30
         
Shares, 1 000 pcs        
Adjusted average number of shares   4 006 4 005 4 005
Adjusted average number of shares diluted 4 008 4 017 4 013

  

           
CONSOLIDATED BALANCE SHEET     31.3. 31.3. 31.12.
(EUR 1 000) Note   2014 2013 2013
ASSETS          
Non-current assets          
Intangible assets 8   3 533 3 580 3 574
Property, plant and equipment 8   8 390 7 864 8 396
Other financial assets     500 789 500
Deferred tax assets     143 - 96
Total non-current assets     12 566 12 233 12 565
           
Current assets          
Inventories     4 869 6 430 5 047
Accounts receivables and other receivables 5   14 091 24 002 18 329
Income tax receivable     483 31 183
Cash and cash equivalents     13 631 17 386 12 658
Total current assets     33 074 47 850 36 218
           
TOTAL ASSETS     45 640 60 083 48 783
           
EQUITY AND LIABILITIES          
Equity attributable to Equity holders of the Parent company      
Share capital     8 014 8 010 8 010
Fair value reserve and other reserves     5 913 6 863 7 061
Exchange differences     22 236 20
Retained earnings     7 721 9 065 7 327
Profit (loss) for the period     -1 583 839 1 196
Share of shareholders' equity that belongs to the owners of the Parent company     20 088 25 013 23 613
Total equity     20 088 25 013 23 613
           
Non-current liabilities          
Non-current provisions     366 155 460
Deferred tax liability     88 242 423
Non-current interest-bearing liabilities 9   2 500 5 972 2 500
Pension obligations     2 89 4
Total non-current liabilities     2 956 6 457 3 387
           
Current liabilities          
Current provisions     657 1 121 775
Current interest-bearing liabilities 9   3 455 5 498 3 481
Current advance payments received 5   6 328 9 814 7 099
Income tax liability     6 109 3
Trade payables and other liabilities     12 149 12 071 10 425
Total current liabilities     22 595 28 613 21 783
           
Total liabilities     25 552 35 070 25 170
           
TOTAL EQUITY AND LIABILITIES     45 640 60 083 48 783

  

           
CONSOLIDATED STATEMENT OF CASH FLOWS   1.1.–31.3. 1.1.–31.3. 1.1.–31.12.
(EUR 1 000)     2014 2013 2013
           
CASH FLOW FROM OPERATING ACTIVITIES        
Proceeds from customer     14 976 18 518 76 836
Other operating income     25 20 295
Payments to suppliers and employees     -13 564 -20 300 -73 187
Cash flow before financial items and taxes   1 437 -1 762 3 944
Interest paid from operating activities     -17 -5 -364
Dividends received from operating activities   75 126 180
Interests received from operating activities   1 90 122
Other financing items from operating activities   108 124 153
Income taxes paid from operating activities   -302 -1 -329
NET CASH FLOW FROM OPERATING ACTIVITIES (A) 1 301 -1 428 3 704
           
CASH FLOW FROM INVESTING ACTIVITIES        
Purchase of property, plant and equipment and intangible assets -324 -672 -3 226
Proceeds from sale of property, plant and equipment and intangible assets 26 12 53
Purchase of investments     - - -3
NET CASH FLOW FROM INVESTING ACTIVITIES (B) -299 -661 -3 176
           
CASH FLOW FROM FINANCING ACTIVITIES          
Proceeds from issue of share capital     14 - -
Repayments of current borrowings     - -100 -2 100
Repayments of non-current borrowings     - - -3 250
Dividends paid     - - -2 002
NET CASH FLOW FROM FINANCING ACTIVITIES (C) 14 -100 -7 352
           
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) 1 016 -2 188 -6 825
increase (+)/decrease (-)          
           
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD* 12 658 19 548 19 548
NET CHANGE IN CASH AND CASH EQUIVALENTS   1 016 -2 188 -6 825
EFFECTS OF EXCHANGE RATE CHANGES ON CASH -43 27 -66
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* 13 631 17 386 12 658
           
CASH AND CASH EQUIVALENTS IN THE BALANCE      
SHEET AT THE END OF THE PERIOD*        
Cash and cash equivalents     13 631 17 386 12 658
TOTAL     13 631 17 386 12 658
           
*Cash and cash equivalents comprise cash and bank receivables, which will be due within the following three months' period.

  

           
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY    
  Share Invested non-restricted Other Exchange Retained
(EUR 1 000) capital equity reserve reserves differences earnings
EQUITY at Jan. 1, 2014 8 010 6 498 563 19 8 523
Comprehensive profit (loss) for the period        
Profit (loss) for the period - - - - -1 583
Other comprehensive income items:          
Exchange differences on translating foreign operations - - - 3 -
Total comprehensive profit (loss) for the period 0 0 0 3 -1 583
Transactions with owners          
Share options exercised 4 9 - - -
Equity-settled share-based          
transactions - - 45 - -
Dividends and repayment of equity - -1 202 - - -801
Total transactions with owners 4 -1 193 45 0 -801
EQUITY at March 31, 2014 8 014 5 305 608 22 6 139
           
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)  
  To the owners of      
(EUR 1 000) the Parent company     TOTAL
EQUITY at Jan. 1, 2014 23 613       23 613
Comprehensive profit (loss) for the period        
Profit (loss) for the period -1 583       -1 583
Other comprehensive income items:          
Exchange differences on translating foreign operations 3       3
Total comprehensive profit (loss) for the period -1 580       -1 580
Transactions with owners          
Share options exercised 14       14
Equity-settled share-based          
transactions 45       45
Dividends and repayment of equity -2 003       -2 003
Total transactions with owners -1 945       -1 945
EQUITY at March 31, 2014 20 088       20 088
           
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY    
  Share Invested non-restricted Other Exchange Retained
(EUR 1 000) capital equity reserve reserves differences earnings
EQUITY at Jan. 1, 2013 8 010 6 498 364 103 9 166
Comprehensive profit (loss) for the period        
Profit (loss) for the period - - - - 839
Other comprehensive income items:          
Exchange differences on translating foreign operations - - - -6 -
Total comprehensive profit (loss) for the period 0 0 0 -6 839
Transactions with owners          
Share options exercised - - - - -
Equity-settled share-based          
transactions - - 39 - -
Dividends and repayment of equity - - - - -
Total transactions with owners 0 0 39 0 0
EQUITY at March 31, 2013 8 010 6 498 403 97 10 005
           
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)  
  To the owners of      
(EUR 1 000) the Parent company     TOTAL
EQUITY at Jan. 1, 2013 24 141       24 141
Comprehensive profit (loss) for the period        
Profit (loss) for the period 839       839
Other comprehensive income items:          
Exchange differences on translating foreign operations -6       -6
Total comprehensive profit (loss) for the period 833       833
Transactions with owners          
Share options exercised -       -
Equity-settled share-based          
transactions 39       39
Dividends and repayment of equity -       -
Total transactions with owners 39       39
EQUITY at March 31, 2013 25 013       25 013
           

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. General information


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

Raute Group's Parent company, Raute Corporation, is a Finnish public limited liability company established in accordance with Finnish law (Business ID FI01490726). Its series A shares are quoted on NASDAQ OMX Helsinki Ltd, under Industrials. Raute Corporation is domiciled in Lahti. The address of its registered office is Rautetie 2, FI-15550 Nastola, and its postal address is P.O. Box 69, FI-15551 Nastola.

Raute Corporation's consolidated financial statement information is available online at www.raute.com or at the head office of the Parent company, Rautetie 2, FI-15550 Nastola, Finland.

Raute Corporation's Board of Directors has on April 29, 2014 reviewed the Interim financial report for January 1 - March 31, 2014, and approved it to be published in compliance with this release.

2. Accounting principles

Raute Corporation's Interim financial report for January 1 - March 31, 2014 has been prepared in accordance with standard IAS 34 Interim Financial Reporting. The Interim financial report does not contain full notes and other information presented in the financial
statements, and therefore the Interim financial report should be read in conjunction with the Financial statements published for 2013.

Raute Corporation's Interim financial report for January 1 - March 31, 2014 has been prepared in accordance with the International Financial Reporting Standards, IFRS, accepted for application in the EU. Preparations have complied with the IAS and IFRS standards, as well as SIC and IFRIC interpretations, effective on March 31, 2014. The notes to the Interim financial statements also comply with Finnish accounting legislation. The presented Interim financial report figures have not been audited.

The Interim financial report has been prepared according to the same accounting principles as those applied in the Annual financial statement for 2013, with the exception of certain new or revised standards, interpretations and amendments to existing standards which the Group has applied as of January 1, 2014. The impact of the new and revised standards has been presented in the annual financial statements for 2013. The adoption of these standards has not had an impact on the Interim financial report.

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

The preparation of Interim financial report in conformity with IFRS standards requires management to make certain critical accounting estimates and to exercise its judgment in applying the Group's accounting policies. Because the forward-looking estimates and assumptions are based on management's best knowledge at the reporting date, they comprise risks and uncertainties. The actual results may differ from these estimates.

3. Segment information

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

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

 

  31.3.   31.3.   31.12.  
Wood products technology 2014   2013   2013  
Net sales 15 020   23 386   83 274  
Operating profit (loss) -1 920   909   1 828  
Assets 45 640   60 083   48 783  
Liabilities 25 552   35 070   25 170  
Capital expenditure 478   813   3 188  
             
Assets of the wood products technology 31.3.   31.3.   31.12.  
segment by geographical location 2014 % 2013 % 2013 %
Finland 39 950 88 52 101 87 40 492 83
China 2 371 5 3 761 6 2 926 6
North America 2 214 5 2 681 4 3 914 8
Russia 827 2 1 204 2 1 114 2
South America 160 0 217 0 198 0
Other 118 0 119 0 140 0
TOTAL 45 640 100 60 083 100 48 783 100
             
Capital expenditure of the wood products 31.3.   31.3.   31.12.  
technology segment by geographical location 2014 % 2013 % 2013 %
Finland 451 94 641 79 2 324 73
China 18 4 172 21 837 26
North America 5 1 - - 15 0
Russia - - - - 3 0
South America 1 0 - - 1 0
Other 3 1 - - 8 0
TOTAL 478 100 813 100 3 188 100

4. Net sales

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

Project deliveries and modernizations related to technology services include both product and service sales, making it impossible to give a reliable presentation of the breakdown of the Group's net sales into purely product and service sales.
 
Large delivery projects can temporarily increase the shares of various customers of the Group’s net sales to more than ten percent. At the end of the period, the Group had two customers (3), whose customized share of the Group's net sales temporarily exceeded ten percent. The total share of these customers was 22 percent.

             
  1.1.–31.3.   1.1.–31.3.   1.1.–31.12.  
Net sales by market area 2014 % 2013 % 2013 %
EMEA (Europe and Africa) 6 310 43 9 143 39 33 697 40
LAM (South America) 2 841 19 7 598 32 18 020 22
CIS (Russia) 2 755 18 3 589 15 16 291 19
NAM (North America) 2 469 16 2 159 9 11 432 14
APAC (Asia-Pacific) 645 4 896 4 3 834 5
TOTAL 15 020 100 23 386 100 83 274 100
             
Finland accounted for 9 percent (2 %) of net sales.          

  

5. Long-term projects     31.3. 31.3. 31.12.
      2014 2013 2013
Net sales          
Net sales by percentage of completion     10 186 19 853 66 214
Other net sales     4 834 3 533 17 060
TOTAL     15 020 23 386 83 274
           
Project revenues entered as income from currently undelivered          
long-term projects recognized by percentage of completion    89 996 95 042 86 534
           
Amount of long-term project revenues not yet entered as income (order book) 28 228 35 762 27 770
           
Projects for which the value by percentage of completion exceeds      
advance payments invoiced           
- aggregate amount of costs incurred and recognized profits less recognized losses 54 616 60 354 65 872
- advance payments received     47 395 44 413 53 619
Gross amount due from customers     7 221 15 941 12 253
           
Projects for which advance payments invoiced exceed the value by      
percentage of completion            
- aggregate amount of costs incurred and recognized profits less recognized losses 35 381 34 688 20 467
- advance payments received     40 644 43 963 26 953
Gross amount due to customers     5 263 9 275 6 486
           
Specification of combined asset and liability items                  
Advance payments paid     70 299 101
Advance payments received included in inventories in the balance sheet 70 299 101
           
Advance payments in the balance sheet     6 328 9 814 7 099
           
6. Number of personnel, persons     31.3. 31.3. 31.12.
      2014 2013 2013
Effective, on average     495 494 515
In books, on average     520 505 522
In books, at the end of the period     516 509 534
- of which personnel working abroad     141 135 148
           
7. Research and development costs     31.3. 31.3. 31.12.
      2014 2013 2013
Research and development costs for period   387 696 2 523
Amortization of previously capitalized development costs 21 56 405
Development costs recognized as an asset in the balance sheet -62 -192 -615
Research and development costs entered as expense for the period 346 559 2 313
           
8. Changes in Intangible assets and in Property, plant and 31.3. 31.3. 31.12.
equipment     2014 2013 2013
Intangible assets          
Carrying amount at the beginning of the period   13 372 14 019 14 019
Exchange rate differences     -18 9 -10
Additions     84 360 1 552
Reclassification between items     -116 157 -2 188
Carrying amount at the end of the period   13 322 14 546 13 372
           
Accumulated depreciation and amortization at the beginning of the period -9 799 -10 815 -10 815
Exchange rate differences     10 -5 7
Accumulated depreciation and amortization of disposals and reclassifications 116 - 1 791
Depreciation and amortization for the period   -116 -146 -782
Accumulated depreciation and amortization at the end of the period -9 789 -10 966 -9 799
           
Book value of Intangible assets, at the beginning of the period 3 574 3 204 3 204
Book value of Intangible assets, at the end of the period 3 533 3 580 3 574
           
Property, plant and equipment          
Carrying amount at the beginning of the period   42 670 41 673 41 673
Exchange rate differences     -319 89 -947
Additions     394 453 1 634
Disposals     -4 -2 -44
Reclassification between items     -8 -214 354
Carrying amount at the end of the period   42 733 41 999 42 670
           
Accumulated depreciation and amortization at the beginning of the period -34 274 -33 782 -33 782
Exchange rate differences     271 -77 857
Accumulated depreciation and amortization of disposals and reclassifications 8 56 44
Depreciation and amortization for the period   -349 -333 -1 392
Accumulated depreciation and amortization at the end of the period -34 343 -34 135 -34 274
           
Book value of Property, plant and equipment, at the beginning of the period 8 396 7 892 7 892
Book value of Property, plant and equipment, at the end of the period 8 390 7 864 8 396
           
9. Interest-bearing liabilities     31.3. 31.3. 31.12.
      2014 2013 2013
Non-current interest-bearing liabilities recognized at amortized cost 2 500 5 972 2 500
Current interest-bearing liabilities     3 455 5 498 3 481
TOTAL     5 955 11 470 5 981
           
Maturities of the interest-bearing financial liabilities at March 31, 2014    
Financial liability     Current Non-current Total
Non-current loans from financial institutions, interest-bearing 3 455 2 500 5 955
Total     3 455 2 500 5 955
           
10. Pledged assets and contingent liabilities   31.3. 31.3. 31.12.
      2014 2013 2013
On behalf of the Parent company          
Business mortgages     3 638 - 3 946
           
Loans from financial institutions     5 721 9 222 5 741
Business mortgages     5 750 6 700 5 750
           
Pension loans (TYEL)     - 2 000 -
Business mortgages     - 600 -
Credit insurance agreements     - 1 400 -
           
Mortgage agreements on behalf of subsidiaries        
Loans from financial institutions     234 248 240
Other obligations     378 - 64
Business mortgages     611 248 304
           
Commercial bank guarantees on behalf of the Parent company and subsidiaries     1 739 33 492 1 484
           
Other own obligations          
Rental liabilities maturing within one year     742 783 845
Rental liabilities maturing in one to five years   2 131 2 516 2 398
Rental liabilities maturing more than five years   129 356 185
Total     3 002 3 655 3 428

11. Related party transactions

No loans are granted to the company's management. On March 31, 2014, the Parent Company Raute Corporation had loan receivables from its subsidiary Raute Service LLC EUR 355 thousand (EUR 355 thousand), Raute Shanghai Machinery Co., Ltd EUR 550 thousand and from Raute Canada Ltd. EUR 328 thousand (EUR 576 thousand).

No pledges have been given or other commitments made on behalf of the company's management and shareholders. 

 

12. Derivatives     31.3. 31.3. 31.12.
      2014 2013 2013
           
Nominal values of forward contracts in foreign currency           
Economic hedging          
- Related to financing     525 1 162 1 311
- Related to the hedging of net sales     2 198 479 2 967
           
Fair values of forward contracts in foreign currency       
Economic hedging          
- Related to financing     -11 -44 -3
- Related to the hedging of net sales     -39 9 24
           
Interest rate and currency swap agreements        
- Nominal value     1 982 4 222 1 991
- Fair value     -69 99 -42

13. Share-based payments

An expense of EUR 45 thousand (EUR 39 thousand) was recognized for the options to the income statement during the interim period. A total amount of 2 thousand series A shares were subscribed during the period. The share capital of Raute Corporation, as a result of the share subscription made with stock options, increased EUR 4 thousand.

14. Dividend distribution and repayment of equity

Raute Corporation's Annual General Meeting held on March 31, 2014, decided, according to the Board of Directors' proposal, to distribute a dividend of EUR 0,20 per share to be paid for series A and K shares, a total of EUR 801 thousand. The dividend payment date was April 10, 2014.

Raute Corporation's  Annual General Meeting held on March 31, 2014, decided, according to the Board of Directors' proposal, to distribute a repayment of equity EUR 0,30 per share to be paid for series A and K shares, a total of EUR 1 202 thousand. The payment date was April 10, 2014.

15. Financial assets and liabilities that are measured at fair value

At the end of the reporting period March 31, 2014, the fair value of the financial assets categorized at fair value on hierarchy level 3 was EUR 789 thousand. The methods of fair value determination correspond the valuation principles presented in the Annual
financial statements for 2013. There were no transfers between the hierarchy levels 1 and 2 during the reporting period.

 

16. Exchange rates used          
      1.1.–31.3. 1.1.–31.3. 1.1.–31.12.
Income statement, euros     2014 2013 2013
CNY (Chinese juan)     8,3587 8,2193 8,1655
RUB (Russian rouble)     48,0778 40,1507 42,3248
CAD (Canadian dollar)     1,5110 1,3317 1,3685
USD (US dollar)     1,3697 1,3204 1,3282
SGD (Singapore dollar)     1,7381 1,6345 1,6618
CLP (Chilean peso)     756,2665 623,5035 658,1306
           
      31.3. 31.3. 31.12.
Balance sheet, euros     2014 2013 2013
CNY (Chinese juan)     8,5332 8,0599 8,3248
RUB (Russian rouble)     48,7800 39,7617 45,3246
CAD (Canadian dollar)     1,5225 1,3021 1,4671
USD (US dollar)     1,3788 1,2805 1,3791
SGD (Singapore dollar)     1,7366 1,5900 1,7414
CLP (Chilean peso)     778,4266 612,2572 725,0943
           
           
FINANCIAL DEVELOPMENT     31.3. 31.3. 31.12.
      2014 2013 2013
Change in net sales, %     -35,8 54,8 -17,8
Exported portion of net sales, %     91,5 97,6 94,2
Return on investment (ROI), %     -25,6 14,7 7,3
Return on equity, ROE, %     -29,0 13,7 5,0
Interest-bearing net liabilities, EUR million     -7,7 -5,9 -6,7
Gearing, %     -38,2 -23,7 -28,3
Equity ratio, %     51,1 49,8 56,6
           
Gross capital expenditure, EUR million     0,5 0,8 3,2
% of net sales     3,2 3,5 3,8
           
Research and development costs, EUR million   0,4 0,7 2,5
% of net sales     2,6 3,0 3,0
           
Order book, EUR million     28 37 28
Order intake, EUR million     16 10 63
           
           
SHARE-RELATED DATA     31.3. 31.3. 31.12.
      2014 2013 2013
Earnings per share, (EPS), undiluted, EUR   -0,40 0,21 0,30
Earnings per share, (EPS), diluted, EUR     -0,40 0,21 0,30
Equity to share, EUR     5,01 6,25 5,90
Dividend per share, EUR     - - 0,20
Dividend per profit, %     - - 66,70
Effective dividend return, %     - - 2,90
Repayment of equity from invested non-restricted equity reserve, EUR - - 0,30
           
Development in share price (series A shares)        
Lowest share price for the period, EUR     6,90 8,52 6,88
Highest share price for the period, EUR     8,22 9,33 9,33
Average share price for the period, EUR     7,68 9,06 8,49
Share price at the end of the period, EUR     8,00 9,05 6,95
           
Market value of capital stock          
- Series K shares, EUR million*     7,9 9,0 6,9
- Series A shares, EUR million     24,1 27,3 20,9
Total, EUR million     32,1 36,2 27,8
*Series K shares valued at the value of series A shares.            
           
Trading of the company's shares (series A shares)        
Trading of shares, pcs     197 150 111 296 513 699
Trading of shares, EUR million     1,5 1,0 4,4
           
Number of shares          
- Series K shares, ordinary shares (20 votes, share)   991 161 991 161 991 161
- Series A shares (1 vote/share)     3 015 667 3 013 597 3 013 597
Total     4 006 828 4 004 758 4 004 758
           
Number of shares, weighted average, 1 000 pcs   4 006 4 005 4 005
Number of shares, diluted, 1 000 pcs     4 008 4 017 4 013
           
Number of shareholders     1 960 1 723 1 915

  

             
  Q 2 Q 3 Q 4 Q 1 Rolling Rolling
DEVELOPMENT OF 2013 2013 2013 2014 1.4.2013 1.4.2012
QUARTERLY RESULTS        
(EUR 1 000)         31.3.2014 31.3.2013
             
NET SALES 19 766 15 610 24 512 15 020 74 908 109 551
             
Change in inventories of finished          
goods and work in progress -610 -37 -672 69 -1 251 400
             
Other operating income 15 102 158 25 301 1 396
             
Materials and services -8 906 -7 304 -11 521 -7 197 -34 928 -61 899
Employee benefits expense -7 190 -5 969 -7 387 -7 164 -27 710 -28 989
Depreciation and amortization -619 -597 -479 -465 -2 160 -1 947
Other operating expenses -2 740 -2 115 -3 098 -2 209 -10 163 -12 025
Total operating expenses -19 456 -15 984 -22 486 -17 035 -74 961 -104 859
             
OPERATING PROFIT (LOSS) -286 -309 1 513 -1 920 -1 002 6 489
% of net sales -1 -2 6 -13 -1 6
             
Financial income 72 53 210 205 540 674
Financial expenses -75 -161 -513 -213 -962 -767
             
PROFIT (LOSS) BEFORE TAX -289 -417 1 210 -1 928 -1 424 6 396
% of net sales -1 -3 5 -13 -2 6
             
Income taxes 96 51 -294 345 198 -2 076
             
PROFIT (LOSS) FOR THE PERIOD -193 -366 916 -1 583 -1 226 4 319
% of net sales -1 -2 4 -11 -2 4
             
Attributable to            
Equity holders of the Parent company -193 -366 916 -1 583 -1 226 4 319
             
Earnings per share, EUR            
Undiluted earnings per share -0,05 -0,09 0,23 -0,40 -0,31 1,08
Diluted earnings per share -0,05 -0,09 0,23 -0,40 -0,31 1,08
             
Shares, 1 000 pcs            
Adjusted average number of shares 4 005 4 005 4 005 4 005 4 006 4 005
Adjusted average number of shares            
diluted 4 013 4 010 4 013 4 008 4 008 4 017
             
  Q 2 Q 3 Q 4 Q 1 Rolling Rolling
  2013 2013 2013 2014 1.4.2013 1.4.2012
FINANCIAL DEVELOPMENT        
QUARTERLY         31.3.2014 31.3.2013
Order intake during the period, EUR million 24 7 22 16 69 65
Order book at the end of the period, EUR million 40 31 28 28 28 37
             
             
20 LARGEST SHAREHOLDERS AT March 31, 2014 Number of series  Number of series  Total number % of total Total number % of voting
By number of shares K shares A shares of shares of shares of votes rights
1. Sundholm, Göran - 624 398 624 398 15,6 624 398 2,7
2. Mandatum Life Unit-Linked - 181 900 181 900 4,5 181 900 0,8
3. Laakkonen Mikko - 119 919 119 919 3,0 119 919 0,5
4. Suominen, Pekka 48 000 62 429 110 429 2,8 1 022 429 4,5
5. Suominen, Tiina Sini-Maria 48 000 62 316 110 316 2,8 1 022 316 4,5
6. Siivonen, Osku Pekka 50 640 53 539 104 179 2,6 1 066 339 4,7
7. Kirmo, Kaisa Marketta 55 680 48 341 104 021 2,6 1 161 941 5,1
8. Mustakallio, Mika Tapani 57 580 29 270 86 850 2,2 1 180 870 5,2
9. Keskiaho, Kaija Leena 33 600 51 116 84 716 2,1 723 116 3,2
10. Särkijärvi, Anna Riitta 60 480 22 009 82 489 2,1 1 231 609 5,4
11. Relander, Harald - 78 000 78 000 1,9 78 000 0,3
12. Mustakallio, Kari Pauli 60 480 2 895 63 375 1,6 1 212 495 5,3
13. Mustakallio, Marja Helena 43 240 16 047 59 287 1,5 880 847 3,9
14. Särkijärvi, Timo 12 000 43 256 55 256 1,4 283 256 1,2
15. Särkijärvi-Martinez, Anu Riitta 12 000 43 256 55 256 1,4 283 256 1,2
16. Mustakallio, Ulla Sinikka 53 240 - 53 240 1,3 1 064 800 4,7
17. Suominen, Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
18. Mustakallio, Kai Henrik 47 420 4 594 52 014 1,3 952 994 4,2
19. Keskinäinen työeläkevakuutusyhtiö Varma - 51 950 51 950 1,3 51 950 0,2
20. Sjoitusrahasto Nordea Suomi Small Cap - 49 573 49 573 1,2 49 573 0,2
Total 607 320 1 572 772 2 180 092 54,4 13 719 172 60,1
             
  Number of series  Number of series  Total number % of total Total number % of voting
By number of votes K shares A shares of shares of shares of votes rights
1. Särkijärvi, Anna Riitta 60 480 22 009 82 489 2,1 1 231 609 5,4
2. Mustakallio, Kari Pauli 60 480 2 895 63 375 1,6 1 212 495 5,3
3. Mustakallio, Mika Tapani 57 580 29 270 86 850 2,2 1 180 870 5,2
4. Kirmo, Kaisa Marketta 55 680 48 341 104 021 2,6 1 161 941 5,1
5. Siivonen, Osku Pekka 50 640 53 539 104 179 2,6 1 066 339 4,7
6. Mustakallio, Ulla Sinikka 53 240 - 53 240 1,3 1 064 800 4,7
7. Suominen, Pekka 48 000 62 429 110 429 2,8 1 022 429 4,5
8. Suominen, Tiina Sini-Maria 48 000 62 316 110 316 2,8 1 022 316 4,5
9. Suominen, Jussi 48 000 - 48 000 1,2 960 000 4,2
10. Mustakallio, Kai Henrik 47 420 4 594 52 014 1,3 952 994 4,2
11. Mustakallio, Marja Helena 43 240 16 047 59 287 1,5 880 847 3,9
12. Mustakallio, Risto Knut kuolinpesä 42 240 - 42 240 1,1 844 800 3,7
13. Keskiaho, Kaija Leena 33 600 51 116 84 716 2,1 723 116 3,2
14. Sundholm, Göran - 624 398 624 398 15,6 624 398 2,7
15. Keskiaho, Vesa Heikki 29 680 - 29 680 0,7 593 600 2,6
16. Keskiaho, Juha-Pekka 27 880 7 491 35 371 0,9 565 091 2,5
17. Kirmo, Lasse 27 645 9 621 37 266 0,9 562 521 2,5
18. Suominen, Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
19. Keskiaho, Marjaana 24 780 21 500 46 280 1,2 517 100 2,3
20. Kultanen, Leea Annikka 22 405 8 031 30 436 0,8 456 131 2,0
Total 805 950 1 051 561 1 857 511 46,4 17 170 561 75,2

 

               
MANAGEMENTS' AND PUBLIC INSIDERS' SHAREHOLDING AND NOMINEE-REGISTERED SHARES    
    Number Number Total   Total  % of 
    of series of series number % of total number voting
    K shares A shares of shares shares of votes rights
Management's holding at March 31, 2014            
The Board of Directors, The Group's President            
and CEO and Executive Board   122 880 113 099 235 979 5,9 2 570 699 11,3
Public insiders' holding at March. 31, 2014 122 880 113 099 235 979 5,9 2 570 699 11,3
               
The figures include the holdings of their own, minor children and control entities.        
               
Nominee-registered shares at March 31, 2014 - 125 609 125 609 3,1 125 609 0,5



RAUTE CORPORATION
Board of Directors


BRIEFING ON APRIL 29, 2014 AT 2 P.M.:
A briefing will be held for analysts, investors and the media on April 29, 2014 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–June 30, 2014 will be published on Tuesday, July 29, 2014.

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 technology services ranging from 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 2013 were EUR 83.3 million. The number of personnel at the end of 2013 was 534.

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