Raute Corporation - Interim report January 1 - March 31, 2016
RAUTE CORPORATION INTERIM REPORT APRIL 29, 2016 at 9:00 a.m.
RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – MARCH 31, 2016
- The Group’s first quarter net sales, EUR 26.4 million (MEUR 24.6), increased 7% on the comparison period.
- Operating profit was EUR 1.4 million (MEUR 1.2). The result before taxes was EUR 1.3 million (MEUR 1.4).
- Earnings per share were EUR 0.22 (EUR 0.27).
- Order intake, at EUR 13 million (MEUR 84), was low. The order book at the end of the reporting period amounted to EUR 44 million (MEUR 101).
- Raute’s net sales and operating profit for 2016 are expected to remain at the same level as in 2015.
TAPANI KIISKI, PRESIDENT AND CEO: SLUGGISH START TO THE YEAR
We can be reasonably satisfied with the net sales and operating profit for the first quarter, which are in line with our estimates based on the order book at the beginning of the year. We were thus successful in executing the projects in our order book mainly as planned.
The volume of order intake was a clear disappointment to us. The economy at large continued to improve slightly in our main markets, but it did not result in a tangible boost for us. In this regard, the situation has changed very little compared to the past few quarters. In my view, our customers’ market situation has remained reasonably good, judging from the demand for our spare parts and active planning of production-related investments by many of our customers.
The overall market situation for LVL and plywood machinery is very interesting. The activity of our customers is, in many market areas, at a higher level than last year. We are receiving large numbers of requests for quotations and are of course making offers accordingly. Customer activity in planning their investments is even more evident in the picking up of contract negotiations. As a result, our sales personnel have been exceptionally busy in the first months of the year, yet the making of actual investment decisions and commercial contracts has been further postponed. It is difficult to find a common denominator for the delays. Apparently, economic and financial market uncertainties have an impact in many cases, and geopolitical tensions and their results also play a role.
We estimated at the very beginning of the year that new orders would focus on the latter half of the year, but we did not expect the beginning of the year to be quite so quiet. The postponement of our customers projects, the resulting low order intake and declining order book increase pressure and challenges relating to the success of our current financial year. Due to the fact that our customers are actively planning investment projects, more of which have emerged in the first months of the year, I am confident that our earlier estimate for the entire year of 2016 will be realized: our net sales and operating profit will reach last year’s level. It will require, however, hard work and successes by us and our partners and customers.
RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – MARCH 31, 2016
BUSINESS ENVIRONMENT
Market situation in customer industries
Raute’s customers in the plywood and LVL (Laminated Veneer Lumber) industries are engaged in the manufacturing of wood products used in investment 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 early months of 2016 did not change considerably with respect to Raute or Raute’s customer base.
Europe’s economy has continued to strengthen slightly. Russia’s development has remained weak and according to market data, Russian plywood manufacturers have reduced their prices on the European and Asian markets to compensate for a weakening in domestic demand. China’s measures to strengthen its economy have still not materialized as increased investments among Raute’s customers. The domestic markets of major South American countries were weak. In part due to weaker currencies, Chilean and Brazilian plywood manufacturers have increased their exports to Europe and North America, which will tighten competition in these markets.
Construction activity has remained at a low level in all market areas, including North America, where the economy in general continues its positive growth and construction shows signs of steady recovery. Due to the market situation described above, Raute’s customers’ order books have remained short, which has not made for an attractive environment for implementing investments.
Demand for wood products technology and technology services
The demand for Raute’s technology and services was conflicting during the period under review. Invitations to tender for projects and even active negotiations were relatively high in number, but very few of these translated into decisions and orders. Demand for spare parts and services remained at a good level.
ORDER INTAKE AND ORDER BOOK
Raute serves the wood products industry with a full-service concept based on service that encompasses the entire life cycle of the delivered equipment. Raute’s business consists of project deliveries and technology services. Project deliveries encompass projects from individual machine or production line deliveries to deliveries of all the machines and equipment belonging to a mill’s production process. Additionally, Raute’s full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations, as well as consulting, training and reconditioned machinery.
The first-quarter order intake was very low, amounting to EUR 13 million (MEUR 84). Of the new orders, 53 percent came from Europe (85%), 18 percent from North America (10%), 12 percent from Russia (3%), 11 percent from South America (1%) and 6 percent from Asia-Pacific (1%). The strong fluctuation by quarter in the distribution of new orders between the various market areas is typical for project-focused business.
Order intake in technology services amounted to EUR 9 million (MEUR 10), 4 percent down from the comparison period.
The order book weakened during the first quarter by EUR 16 million, amounting to EUR 44 million at the end of the period (MEUR 101). The order book at the end of the reporting period was at a reasonable level despite the low order intake. At the comparison date March 31, 2015, the order book was at a record high due to the high order intake volume in the first quarter of 2015.
COMPETITIVE POSITION
Raute’s competitive position has remained unchanged and is good. Raute’s solutions help customers in securing their delivery and service capabilities throughout the life cycle of the production process or its part. In such investments, the supplier’s overall expertise and extensive and diverse technology offering play a key role. The competitive edge provided by Raute plays a major role when customers select their cooperation partners. Raute’s strong financial position and long-term dedication to serving selected customer industries also enhance its credibility and improve its competitive position as a company that carries out long-term investment projects.
NET SALES
Net sales for the reporting period, EUR 26.4 million (MEUR 24.6), were up 7 percent on the first quarter of 2015.
Of the total net sales for the reporting period, Europe accounted for 61 percent (61%), North America for 16 percent (14%), Russia for 14 percent (10%), Asia-Pacific for 6 percent (5%), and South America for 3 percent (10%).
Technology services accounted for 33 percent (41%) of the Group’s total net sales and amounted to EUR 9 million (MEUR 10). Net sales for technology services decreased 14 percent over the comparison period due to the low number of new modernization orders towards the end of 2015.
RESULT AND PROFITABILITY
Operating profit was EUR 1.4 million positive (MEUR 1.2 positive) and accounted for 5 percent of net sales (5%). Other operating income for the reporting period includes insurance compensation of EUR 0.9 million, relating to the project business.
The result before taxes for the reporting period was EUR 1.3 million positive (MEUR 1.4 positive). The result for the reporting period was EUR 0.9 million positive (MEUR 1.1 positive). Earnings per share (undiluted) were EUR 0.22 (EUR 0.27).
CASH FLOW AND BALANCE SHEET
The Group’s financial position remained good. At the end of the reporting period, gearing was -21 percent (-44%) and the equity ratio 56 percent (53%). 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 9.2 million (MEUR 13.1) at the end of the reporting period. Operating cash flow was EUR 1.9 million positive (MEUR 9.0 positive). Cash flow from investment activities was EUR 1.0 million negative (MEUR 0.4 negative). Cash flow from financing activities was EUR 1.8 million positive (MEUR 0.0).
Interest-bearing liabilities amounted to EUR 3.2 million (MEUR 2.8) 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 20.3 million remained unused at the end of the reporting period.
EVENTS DURING THE REPORTING PERIOD
Raute Corporation published stock exchange releases on the following events:
January 18, 2016 Advance information on Raute Group’s 2015 net sales and operating profit
March 31, 2016 Decisions of Raute’s Annual General Meeting.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE
Raute is a leading technology supplier for the plywood and LVL industries and focuses strongly on the development of increasingly efficient, productive and environmentally friendly manufacturing technology and supporting measurement and machine vision applications. Opportunities provided by digitalization are also an essential part of R&D activities.
Research and development costs in the reporting period amounted to EUR 0.8 million (MEUR 0.4), representing 2.9 percent of net sales (1.8%).
Capital expenditure during the period came to EUR 1.0 million (MEUR 0.5) and accounted for 3.6 percent (1.9%) of net sales.
PERSONNEL
The number of the Group’s personnel declined by 9, and totaled 637 (595) at the end of the reporting period. Group companies outside Finland accounted for 32 percent (32%) of employees.
Converted to full-time employees (“effective headcount”), the average number of employees was 632 (585) during the reporting period.
SHARES
The number of Raute Corporation’s shares at the end of the reporting period totaled 4,128,158, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,136,997 series A shares (1 vote/share). Series K and A shares confer equal rights to dividends and company assets.
Series K shares can be converted to series A shares under the terms set out in section 3 of the Articles of Association. If an ordinary share is transferred to a new owner who has not previously held series K shares, the new owner must notify the Board of Directors of this in writing and without delay. Other holders of series K shares have the right to redeem the share under the terms specified in Article 4 of the Articles of Association.
Raute Corporation’s series A shares are listed on Nasdaq Helsinki Ltd. The trading code is RUTAV. Raute Corporation has signed a market making agreement with Nordea Bank Finland Plc in compliance with the Liquidity Providing (LP) requirements issued by Nasdaq Helsinki Ltd.
The company’s market capitalization at the end of the reporting period was EUR 62.9 million (MEUR 47.4), with series K shares valued at the closing price of series A shares on March 31, 2016, i.e. EUR 15.24 (EUR 11.80).
STOCK OPTIONS
At the end of the reporting period, altogether 54,040 of the company’s series 2010 B stock options and 49,280 series C stock options were unexercised. The subscription period for Raute Corporation’s series A stock options ended on March 31, 2016.
Raute Corporation’s series 2010 B stock options are listed on Nasdaq Helsinki Ltd under the trading code RUTAVEW210 and series 2010 C stock options under the trading code RUTAVEW310. The subscription period for series B stock options is March 1, 2014 to March 31, 2017 and the subscription period for series C stock options is March 1, 2015 to March 31, 2018. The respective subscription prices were EUR 7.13 and EUR 6.00 and the closing prices at the end of the reporting period were EUR 5.80 and EUR 7.50.
REMUNERATION
The Group has remuneration systems in place that cover the entire personnel.
Share-based incentive plan 2014–2018
The Group has a valid long-term share-based incentive plan based on performance for the years 2014–2018. The plan includes three separate share plans commencing in 2014, 2015 and 2016. Each plan will span three years. Any share-based reward accrued through the incentive plan shall be paid as series A shares. The value of the reward is based on the development of share price.
SHAREHOLDERS
The number of shareholders stood at 2,623 at the beginning of the year and at 2,881 at the end of the reporting period. Series K shares were held by 50 private individuals (50) at the end of the reporting period. Nominee-registered shares accounted for 3.2 percent (3.2%) of shares. The company did not receive any flagging notifications during the reporting period.
The Board of Directors, the President and CEO as well as the Executive Board held altogether 237,879 company shares, equaling 5.8 percent (5.8%) of the company shares and 11.2 percent (11.2%) of the votes at the end of the reporting period.
CORPORATE GOVERNANCE
As of January 1, 2016, Raute Corporation complies with the Finnish Corporate Governance Code 2015 for listed companies issued by the Securities Market Association on October 1, 2015.
EXECUTIVE BOARD
Antti Laulainen (M.SC, Eng.) was appointed Group Vice President, Technology Services and Sales Management and as member of Raute Group’s Executive Board as of March 14, 2016.
Raute Group’s Executive Board and the members’ areas of responsibility as of March 14, 2016:
Tapani Kiiski, President and CEO, Chairman – Sales
Arja Hakala, Group Vice President, Finance, CFO – Finance and administration
Marko Hjelt, Group Vice President, Human Resources – Human resources and competence development
Mika Hyysti, Group Vice President, Technology – Technology, products and R&D
Timo Kangas, Group Vice President, EMEA – Market area EMEA
Antti Laulainen, Group Vice President, Technology Services and Sales Management – Technology services and sales management
Petri Strengell, Group Vice President, Supply Chain – Sourcing and production.
ANNUAL GENERAL MEETING 2016
Raute Corporation’s Annual General Meeting was held on March 31, 2016. The Annual General Meeting adopted the financial statements for 2015, discharged those accountable from liability and resolved to distribute a dividend of EUR 0.80 per share.
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 2017. Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio Vice-Chair, and Mr. Joni Bask, Ms. Päivi Leiwo, Mr. Pekka Suominen, and Mr. Patrick von Essen were elected as Board members.
The authorized public accounting company PricewaterhouseCoopers was chosen as auditor, with Authorized Public Accountant Markku Launis as the principal auditor.
The Annual General Meeting decided 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.
The Annual General Meeting also decided to amend article 2 of the Articles of Association so that the regulations concerning the company’s minimum and maximum share capital and the par value of the share were removed.
More detailed information on the decisions of the Annual General Meeting can be found in the stock exchange release issued on March 31, 2016.
DISTRIBUTION OF PROFIT FOR THE 2015 FINANCIAL YEAR
The Annual General Meeting held on March 31, 2016 decided to pay a dividend of EUR 0.80 per share for the financial year 2015. The total amount of dividends is EUR 3.3 million, series A shares accounting for EUR 2,509,597.60 and series K shares for EUR 792,928.80. The dividend payment date was April 12, 2016.
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, 2016 has held a constitutive meeting.
Based on the evaluation of independence by the Board of Directors, Chairman Mr. Erkki Pehu-Lehtonen and members Mr. Joni Bask, Mr. Patrick von Essen, Ms. Päivi Leiwo, and Mr. Pekka Suominen are independent of the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Patrick von Essen and Ms. Päivi Leiwo) are independent of major shareholders.
Raute Corporation’s Board of Directors has an Appointments Committee. The Appointments Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Pekka Suominen. The tasks of the Audit Committee and the Working Committee are handled by the Board of Directors.
BUSINESS RISKS
Risks in the near term continue to be driven by the uncertainty relating to the global economic situation and the development of the financial markets, as well as by international political instability. During the reporting period, there were no essential changes in the business risks described in the 2015 Board of Directors’ Report and Financial Statements.
The most significant risks for Raute in the near term are related to major mill-scale projects, which are in the implementation phase, in accordance with the schedule determined in contract terms, and the development of the order intake.
OUTLOOK FOR 2016
Based on the existing order book and the prevailing market situation, Raute’s net sales and operating profit for 2016 are expected to remain at the same level as in 2015.
TABLES SECTION OF THE INTERIM REPORT
The figures for the financial year 2015 presented in the tables section of the interim report have been audited.
The presented interim financial report figures have not been audited.
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. | |
| (EUR 1 000) | Note | 2016 | 2015 | 2015 |
| NET SALES | 3,4,5 | 26 427 | 24 606 | 127 278 |
| Change in inventories of finished goods and work in progress | 917 | 312 | -313 | |
| Other operating income | 962 | 40 | 393 | |
| Materials and services | -14 264 | -11 856 | -67 992 | |
| Employee benefits expense | 13 | -9 131 | -8 140 | -34 310 |
| Depreciation and amortization | -515 | -548 | -2 125 | |
| Impairment | - | - | -1 370 | |
| Other operating expenses | -3 009 | -3 211 | -13 441 | |
| Total operating expenses | -26 919 | -23 754 | -119 238 | |
| OPERATING PROFIT (LOSS) | 1 386 | 1 204 | 8 120 | |
| % of net sales | 5 | 5 | 6 | |
| Financial income | 93 | 266 | 342 | |
| Financial expenses | -222 | -112 | -343 | |
| PROFIT (LOSS) BEFORE TAX | 1 258 | 1 359 | 8 118 | |
| % of net sales | 5 | 6 | 6 | |
| Income taxes | -353 | -276 | -1 435 | |
| PROFIT (LOSS) FOR THE PERIOD | 904 | 1 083 | 6 684 | |
| % of net sales | 3 | 4 | 5 | |
| Other comprehensive income items: | ||||
| Items that will not be reclassified to profit or loss | ||||
| Remeasurement of defined benefit obligations | - | - | 2 | |
| Items that may be subsequently reclassified to profit or loss | ||||
| Exchange differences on translating foreign operations | 240 | 221 | 88 | |
| Cash flow hedges | 171 | - | 8 | |
| Comprehensive income items for the period, net of tax | 411 | 221 | 98 | |
| COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD | 1 315 | 1 304 | 6 782 | |
| Profit (loss) for the period attributable to | ||||
| Equity holders of the Parent company | 904 | 1 083 | 6 684 | |
| Comprehensive profit (loss) for the period attributable to | ||||
| Equity holders of the Parent company | 1 315 | 1 304 | 6 782 | |
| Earnings per share for profit (loss) attributable | ||||
| to Equity holders of the Parent company, EUR | ||||
| Undiluted earnings per share | 0,22 | 0,27 | 1,65 | |
| Diluted earnings per share | 0,22 | 0,27 | 1,64 | |
| Shares, 1 000 pcs | ||||
| Adjusted average number of shares | 4 124 | 4 015 | 4 051 | |
| Adjusted average number of shares diluted | 4 151 | 4 043 | 4 079 | |
| CONSOLIDATED BALANCE SHEET | 31.3. | 31.3. | 31.12. | |
| (EUR 1 000) | Note | 2016 | 2015 | 2015 |
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 8 | 1 521 | 3 532 | 1 609 |
| Property, plant and equipment | 8 | 9 039 | 7 987 | 8 529 |
| Other financial assets | 490 | 500 | 490 | |
| Deferred tax assets | 176 | 189 | 172 | |
| Total non-current assets | 11 227 | 12 209 | 10 799 | |
| Current assets | ||||
| Inventories | 10 014 | 8 521 | 9 577 | |
| Accounts receivables and other receivables | 5 | 27 581 | 19 839 | 34 722 |
| Income tax receivable | 122 | - | 123 | |
| Cash and cash equivalents | 9 176 | 13 081 | 6 538 | |
| Total current assets | 46 893 | 41 441 | 50 960 | |
| TOTAL ASSETS | 58 120 | 53 650 | 61 760 | |
| EQUITY AND LIABILITIES | ||||
| Equity attributable to Equity holders of the Parent company | ||||
| Share capital | 8 256 | 8 031 | 8 223 | |
| Rights issue | 4 | - | - | |
| Fair value reserve and other reserves | 6 348 | 5 298 | 6 008 | |
| Exchange differences | 548 | 441 | 308 | |
| Retained earnings | 11 859 | 8 477 | 8 477 | |
| Profit (loss) for the period | 904 | 1 083 | 6 684 | |
| Share of shareholders' equity that belongs to the owners of the Parent company | 27 919 | 23 329 | 29 700 | |
| Total equity | 27 919 | 23 329 | 29 700 | |
| Non-current liabilities | ||||
| Non-current provisions | 410 | 323 | 455 | |
| Deferred tax liability | 150 | 4 | 241 | |
| Non-current interest-bearing liabilities | 9 | - | 1 250 | - |
| Pension obligations | - | 2 | - | |
| Total non-current liabilities | 560 | 1 579 | 696 | |
| Current liabilities | ||||
| Current provisions | 1 125 | 1 927 | 1 409 | |
| Current interest-bearing liabilities | 9 | 3 187 | 1 546 | 1 535 |
| Current advance payments received | 5 | 8 663 | 9 289 | 11 024 |
| Income tax liability | 313 | 472 | 11 | |
| Trade payables and other liabilities | 16 353 | 15 508 | 17 386 | |
| Total current liabilities | 29 640 | 28 743 | 31 364 | |
| Total liabilities | 30 200 | 30 321 | 32 059 | |
| TOTAL EQUITY AND LIABILITIES | 58 120 | 53 650 | 61 760 | |
| CONSOLIDATED STATEMENT OF CASH FLOWS | 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. | |
| (EUR 1 000) | 2016 | 2015 | 2015 | |
| CASH FLOW FROM OPERATING ACTIVITIES | ||||
| Proceeds from customer | 29 249 | 29 551 | 122 089 | |
| Other operating income | 962 | 40 | 371 | |
| Payments to suppliers and employees | -28 126 | -21 501 | -114 092 | |
| Cash flow before financial items and taxes | 2 085 | 8 090 | 8 368 | |
| Interest paid from operating activities | -15 | -12 | -115 | |
| Dividends received from operating activities | 93 | 78 | 97 | |
| Interests received from operating activities | - | 1 | 5 | |
| Other financing items from operating activities | -175 | 186 | 105 | |
| Income taxes paid from operating activities | -112 | 614 | -983 | |
| NET CASH FLOW FROM OPERATING ACTIVITIES (A) | 1 876 | 8 956 | 7 477 | |
| CASH FLOW FROM INVESTING ACTIVITIES | ||||
| Purchase of property, plant and equipment and intangible assets | -1 013 | -427 | -2 395 | |
| Proceeds from sale of property, plant and equipment and intangible assets | 1 | 26 | 66 | |
| NET CASH FLOW FROM INVESTING ACTIVITIES (B) | -1 012 | -400 | -2 329 | |
| CASH FLOW FROM FINANCING ACTIVITIES | ||||
| Proceeds from issue of share capital | 111 | - | 607 | |
| Proceeds from current borrowings | 1 660 | - | - | |
| Repayments of non-current borrowings | - | - | -1 250 | |
| Dividends paid and repayment of equity | - | - | -2 409 | |
| NET CASH FLOW FROM FINANCING ACTIVITIES (C) | 1 772 | 0 | -3 052 | |
| NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) | 2 636 | 8 555 | 2 096 | |
| increase (+)/decrease (-) | ||||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD* | 6 538 | 4 431 | 4 431 | |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 2 636 | 8 555 | 2 096 | |
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH | 3 | 95 | 11 | |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* | 9 176 | 13 081 | 6 538 | |
| CASH AND CASH EQUIVALENTS IN THE BALANCE | ||||
| SHEET AT THE END OF THE PERIOD* | ||||
| Cash and cash equivalents | 9 176 | 13 081 | 6 538 | |
| TOTAL | 9 176 | 13 081 | 6 538 | |
*Cash and cash equivalents comprise cash and bank receivables, which will be due within the following three months' period.
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
| Share | Share | Invested non-restricted | Other | Exchange | Retained | |
| (EUR 1 000) | capital | issue | equity reserve | reserves | differences | earnings |
| EQUITY at Jan. 1, 2016 | 8 223 | 0 | 4 950 | 1 058 | 308 | 15 161 |
| Comprehensive profit (loss) for the period | ||||||
| Profit (loss) for the period | - | - | - | - | - | 904 |
| Other comprehensive income items: | ||||||
| Hedging reserve | - | - | - | 171 | - | - |
| Exchange differences on translating foreign operations | - | - | - | - | 240 | - |
| Total comprehensive profit (loss) for the period | 0 | 0 | 0 | 171 | 240 | 904 |
| Transactions with owners | ||||||
| Share-options exercised | 33 | 4 | 74 | - | - | - |
| Equity-settled share-based | ||||||
| transactions | - | - | - | 95 | - | - |
| Dividends and repayment of equity | - | - | - | - | - | -3 303 |
| Total transactions with owners | 33 | 4 | 74 | 95 | 0 | -3 303 |
| EQUITY at March 31, 2016 | 8 256 | 4 | 5 024 | 1 324 | 548 | 12 763 |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE) | ||||||
| To the owners of | ||||||
| (EUR 1 000) | the Parent company | TOTAL | ||||
| EQUITY at Jan. 1, 2016 | 29 700 | 29 700 | ||||
| Comprehensive profit (loss) for the period | ||||||
| Profit (loss) for the period | 904 | 904 | ||||
| Other comprehensive income items: | ||||||
| Hedging reserve | 171 | 171 | ||||
| Exchange differences on translating foreign operations | 240 | 240 | ||||
| Total comprehensive profit (loss) for the period | 1 315 | 1 315 | ||||
| Transactions with owners | ||||||
| Share-options exercised | 111 | 111 | ||||
| Equity-settled share-based | ||||||
| transactions | 95 | 95 | ||||
| Dividends and repayment of equity | -3 303 | -3 303 | ||||
| Total transactions with owners | -3 096 | -3 096 | ||||
| EQUITY at March 31, 2016 | 27 919 | 27 919 | ||||
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||
| Share | Share | Invested non-restricted | Other | Exchange | Retained | |
| (EUR 1 000) | capital | issue | equity reserve | reserves | differences | earnings |
| EQUITY at Jan. 1, 2015 | 8 031 | 0 | 5 339 | 662 | 220 | 10 083 |
| Comprehensive profit (loss) for the period | ||||||
| Profit (loss) for the period | - | - | - | - | - | 1 083 |
| Other comprehensive income items: | ||||||
| Hedging reserve | - | - | - | - | - | - |
| Exchange differences on translating foreign operations | - | - | - | - | 221 | - |
| Total comprehensive profit (loss) for the period | 0 | 0 | 0 | 0 | 221 | 1 083 |
| Transactions with owners | ||||||
| Share-options exercised | - | - | - | - | - | - |
| Equity-settled share-based | ||||||
| transactions | - | - | - | 100 | - | - |
| Dividends and repayment of equity | - | - | -803 | - | - | -1 606 |
| Total transactions with owners | 0 | 0 | -803 | 100 | 0 | -1 606 |
| EQUITY at March, 31, 2015 | 8 031 | 0 | 4 536 | 762 | 441 | 9 560 |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE) | ||||||
| To the owners of | ||||||
| (EUR 1 000) | the Parent company | TOTAL | ||||
| EQUITY at Jan. 1, 2015 | 24 334 | 24 334 | ||||
| Comprehensive profit (loss) for the period | ||||||
| Profit (loss) for the period | 1 083 | 1 083 | ||||
| Other comprehensive income items: | ||||||
| Hedging reserve | 0 | 0 | ||||
| Exchange differences on translating foreign operations | 221 | 221 | ||||
| Total comprehensive profit (loss) for the period | 1 304 | 1 304 | ||||
| Transactions with owners | ||||||
| Share-options exercised | 0 | 0 | ||||
| Equity-settled share-based | ||||||
| transactions | 100 | 100 | ||||
| Dividends and repayment of equity | -2 409 | -2 409 | ||||
| Total transactions with owners | -2 309 | -2 309 | ||||
| EQUITY at March, 31, 2015 | 23 329 | 23 329 | ||||
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, Lahti municipality, Finland. Its other production plants are in Kajaani, in the Vancouver area in Canada, and in the Shanghai area in China. The company's sales network has a global reach.
Raute Group's Parent company, Raute Corporation, is a Finnish public limited liability company established in accordance with Finnish law (Business ID FI01490726). Its series A shares are quoted on Nasdaq Helsinki Ltd, under Industrials. Raute Corporation is domiciled in Lahti. The address of its registered office is Rautetie 2, FI-15550 Nastola, and its postal address is P.O. Box 69, FI-15551 Nastola.
Raute Corporation's consolidated financial statement information is available online at www.raute.com or at the head office of the Parent company, Rautetie 2, FI-15550 Nastola, Finland.
Raute Corporation's Board of Directors has on April 29, 2016 reviewed the Interim financial report for January 1 - March 31, 2016, 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, 2016 has been prepared in accordance with standard IAS 34 Interim Financial Reporting. The Interim financial report does not contain full notes and other information presented in the financial statements, and therefore the Interim financial report should be read in conjunction with the Financial statements published for 2015.
Raute Corporation's Interim financial report for January 1 - March 31, 2016 has been prepared in accordance with the International Financial Reporting Standards, IFRS, accepted for application in the EU. Preparations have complied with the IAS and IFRS standards, as well as SIC and IFRIC interpretations, effective on March 31, 2016. The notes to the Interim financial statements also comply with Finnish accounting legislation.
The Interim financial report has been prepared according to the same accounting principles as those applied in the Annual financial statement for 2015.
All of the figures presented in the Interim financial report are in thousand euro, unless otherwise stated. Due to the rounding of the figures in the financial statement tables, the sums of figures may deviate from the sum total presented in the table. Figures in parentheses refer to the corresponding figures in the comparison period.
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, 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 | 2016 | 2015 | 2015 | |||
| Net sales | 26 427 | 24 606 | 127 278 | |||
| Operating profit (loss) | 1 386 | 1 204 | 8 120 | |||
| Assets | 58 120 | 53 650 | 61 760 | |||
| Liabilities | 30 200 | 30 321 | 32 059 | |||
| Capital expenditure | 961 | 476 | 2 506 | |||
| Assets of the wood products technology segment | 31.3. | 31.3. | 31.12. | |||
| by geographical location | 2016 | % | 2015 | % | 2015 | % |
| Finland | 48 331 | 83 | 42 165 | 79 | 52 488 | 85 |
| China | 4 594 | 8 | 5 042 | 9 | 4 572 | 7 |
| North America | 4 164 | 7 | 5 072 | 9 | 3 655 | 6 |
| Russia | 727 | 1 | 959 | 2 | 732 | 1 |
| South America | 179 | 0 | 220 | 0 | 202 | 0 |
| Other | 124 | 0 | 192 | 0 | 112 | 0 |
| TOTAL | 58 120 | 100 | 53 650 | 100 | 61 760 | 100 |
| Capital expenditure of the wood products technology segment | 31.3. | 31.3. | 31.12. | |||
| by geographical location | 2016 | % | 2015 | % | 2015 | % |
| Finland | 877 | 91 | 441 | 93 | 2 388 | 95 |
| China | 19 | 2 | 25 | 5 | 57 | 2 |
| North America | 64 | 7 | 10 | 2 | 61 | 2 |
| Russia | - | - | - | - | - | - |
| South America | 1 | 0 | - | - | 1 | 0 |
| Other | - | - | - | - | - | - |
| TOTAL | 961 | 100 | 476 | 100 | 2 506 | 100 |
4. Net sales
The main part of the net sales is comprised of project deliveries and modernizations in technology services, which are treated as long-term projects. The rest of the net sales is comprised of technology services provided to the wood products industry such as spare parts and maintenance services as well as services provided to the development of customers' business.
Project deliveries and modernizations related to technology services include both product and service sales, making it impossible to give a reliable presentation of the breakdown of the Group's net sales into purely product and service sales.
Large delivery projects can temporarily increase the shares of various customers of the Group’s net sales to more than ten percent. At the end of the period, the Group had two customers (2), whose customized share of the Group's net sales temporarily exceeded ten percent. The sales share of the customers was 52 percent.
| 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. | ||||
| Net sales by market area | 2016 | % | 2015 | % | 2015 | % |
| EMEA (Europe and Africa) | 16 248 | 61 | 14 897 | 61 | 82 632 | 66 |
| NAM (North America) | 4 102 | 16 | 3 358 | 14 | 16 962 | 13 |
| CIS (Russia) | 3 659 | 14 | 2 576 | 10 | 11 841 | 9 |
| APAC (Asia-Pacific) | 1 527 | 6 | 1 245 | 5 | 6 906 | 5 |
| LAM (South America) | 890 | 3 | 2 531 | 10 | 8 937 | 7 |
| TOTAL | 26 427 | 100 | 24 606 | 100 | 127 278 | 100 |
Finland accounted for 23 percent (27 %) of net sales.
| 31.3. | 31.3. | 31.12. | |||
| 5. Long-term projects | 2016 | 2015 | 2015 | ||
| Net sales | |||||
| Net sales by percentage of completion | 22 291 | 19 165 | 104 251 | ||
| Other net sales | 4 136 | 5 441 | 23 027 | ||
| TOTAL | 26 427 | 24 606 | 127 278 | ||
| Project revenues entered as income from currently undelivered | |||||
| long-term projects recognized by percentage of completion | 127 590 | 70 030 | 112 329 | ||
| Amount of long-term project revenues not yet entered as income (order book) | 43 322 | 99 970 | 59 210 | ||
| Projects for which the value by percentage of completion exceeds | |||||
| advance payments invoiced | |||||
| - aggregate amount of costs incurred and recognized profits less recognized losses | 83 911 | 58 928 | 72 948 | ||
| - advance payments received | 64 306 | 47 421 | 46 415 | ||
| Gross amount due from customers | 19 605 | 11 507 | 26 533 | ||
| Projects for which advance payments invoiced exceed the value by | |||||
| percentage of completion | |||||
| - aggregate amount of costs incurred and recognized profits less recognized losses | 43 679 | 11 060 | 36 823 | ||
| - advance payments received | 52 202 | 19 754 | 46 294 | ||
| Gross amount due to customers | 8 523 | 8 694 | 9 471 | ||
| Advance payments included in the current liabilities in the balance sheet | |||||
| Gross amount due to customers | 8 523 | 8 694 | 9 471 | ||
| Other advance payments received, not under percentage of completion | 140 | 595 | 1 553 | ||
| Total | 8 663 | 9 289 | 11 024 | ||
| Specification of combined asset and liability items | |||||
| Advance payments paid | 791 | 642 | 1 367 | ||
| Advance payments included in inventories in the balance sheet | 791 | 642 | 1 367 | ||
| 31.3. | 31.3. | 31.12. | |||
| 6. Number of personnel, persons | 2016 | 2015 | 2015 | ||
| Effective, on average | 632 | 585 | 614 | ||
| In books, on average | 641 | 592 | 624 | ||
| In books, at the end of the period | 637 | 595 | 646 | ||
| - of which personnel working abroad | 203 | 190 | 205 | ||
| 31.3. | 31.3. | 31.12. | |||
| 7. Research and development costs | 2016 | 2015 | 2015 | ||
| Research and development costs for period | -757 | -438 | -3 092 | ||
| Amortization of previously capitalized development costs | -57 | -70 | -104 | ||
| Development costs recognized as an asset in the balance sheet | - | 57 | 220 | ||
| Research and development costs entered as expense for the period | -814 | -451 | -2 976 | ||
| Impairment of previously capitalized development costs | - | - | -1 020 | ||
| Research and development costs entered as expense for the period | -814 | -451 | -3 996 | ||
| 8. Changes in Intangible assets and in Property, | 31.3. | 31.3. | 31.12. | ||
| plant and equipment | 2016 | 2015 | 2015 | ||
| Intangible assets | |||||
| Carrying amount at the beginning of the period | 14 035 | 13 826 | 13 826 | ||
| Exchange rate differences | -21 | 90 | 60 | ||
| Additions | 44 | 74 | 346 | ||
| Disposals | - | - | -350 | ||
| Reclassification between items | 34 | 102 | 152 | ||
| Carrying amount at the end of the period | 14 091 | 14 092 | 14 035 | ||
| Accumulated depreciation and amortization at the beginning of the period | -12 426 | -10 334 | -10 334 | ||
| Exchange rate differences | 14 | -50 | -32 | ||
| Depreciation and amortization for the period | -158 | -176 | -690 | ||
| Impairments | - | - | -1 370 | ||
| Accumulated depreciation and amortization at the end of the period | -12 570 | -10 560 | -12 426 | ||
| Book value of Intangible assets, at the beginning of the period | 1 609 | 3 492 | 3 492 | ||
| Book value of Intangible assets, at the end of the period | 1 521 | 3 532 | 1 609 | ||
| Property, plant and equipment | |||||
| Carrying amount at the beginning of the period | 45 463 | 43 944 | 43 944 | ||
| Exchange rate differences | 145 | 391 | -458 | ||
| Additions | 917 | 402 | 2 160 | ||
| Disposals | - | -14 | -30 | ||
| Reclassification between items | -34 | -102 | -152 | ||
| Carrying amount at the end of the period | 46 491 | 44 621 | 45 463 | ||
| Accumulated depreciation and amortization at the beginning of the period | -36 934 | -36 014 | -36 014 | ||
| Exchange rate differences | -160 | -248 | 502 | ||
| Depreciation and amortization for the period | -358 | -372 | -1 422 | ||
| Accumulated depreciation and amortization at the end of the period | -37 452 | -36 633 | -36 934 | ||
| Book value of Property, plant and equipment, at the beginning of the period | 8 529 | 7 930 | 7 930 | ||
| Book value of Property, plant and equipment, at the end of the period | 9 039 | 7 987 | 8 529 | ||
| 31.3. | 31.3. | 31.12. | |||
| 9. Interest-bearing liabilities | 2016 | 2015 | 2015 | ||
| Non-current interest-bearing liabilities recognized at amortized cost | - | 1 250 | - | ||
| Current interest-bearing liabilities | 3 187 | 1 546 | 1 535 | ||
| TOTAL | 3 187 | 2 796 | 1 535 | ||
| Maturities of the interest-bearing financial liabilities at March 31, 2016 | |||||
| Financial liability | Current | Non-current | Total | ||
| Loans from financial institutions | 3 187 | - | 3 187 | ||
| Total | 3 187 | - | 3 187 | ||
| 31.3. | 31.3. | 31.12. | |||
| 10. Pledged assets and contingent liabilities | 2016 | 2015 | 2015 | ||
| On behalf of the Parent company | |||||
| Business mortgages | 7 869 | 6 771 | 7 869 | ||
| Loans from financial institutions | 1 250 | 2 500 | 1 250 | ||
| Business mortgages | 1 250 | 2 500 | 1 250 | ||
| Mortgage agreements on behalf of subsidiaries | |||||
| Loans from financial institutions | 1 660 | 296 | 285 | ||
| Other obligations | 548 | 433 | 568 | ||
| Business mortgages | 881 | 729 | 881 | ||
| Commercial bank guarantees on behalf of the Parent company and subsidiaries | 10 207 | 15 434 | 11 546 | ||
| Other own obligations | |||||
| Rental liabilities maturing within one year | 859 | 828 | 903 | ||
| Rental liabilities maturing in one to five years | 1 047 | 1 886 | 1 301 | ||
| Total | 1 906 | 2 714 | 2 204 | ||
| 11. Related party transactions | |||||
| 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. | |||||
| 31.3. | 31.3. | 31.12. | |||
| 12. Derivatives | 2016 | 2015 | 2015 | ||
| Nominal values of forward contracts in foreign currency | |||||
| Economic hedging | |||||
| - Related to financing | - | 252 | - | ||
| - Related to the hedging of net sales | 2 771 | 4 258 | 2 969 | ||
| Hedge accounting | |||||
| - Related to the hedging of net sales | 2 562 | - | 2 679 | ||
| Fair values of forward contracts in foreign currency | |||||
| Economic hedging | |||||
| - Related to financing | - | -48 | - | ||
| - Related to the hedging of net sales | -22 | -156 | -89 | ||
| Hedge accounting | |||||
| - Related to the hedging of net sales | 113 | - | -47 | ||
13. Share-based payments
A total of 16 450 Raute's series A shares have been subscribed for with Raute's stock options 2010 A, 2010 B and 2010 C during the reporting period. The new shares have been registered in the Trade Register on February 24, 2016.
The company's share capital is EUR 8 256 316 and the number of company's shares 4 128 158 pieces.
An expense of EUR 95 thousand was recognized for the share rewards to the income statement during the reporting period.
During the interim period, no share rewards were delivered based on the long-term share-based incentive program 2014-2018 directed to the top management.
14. Distribution of the profit for the financial year 2015
Raute Corporation's Annual General Meeting held on March 31, 2016, decided, according to the Board of Directors' proposal, to distribute a dividend of EUR 0,80 per share to be paid for series A and K shares, a total of EUR 3 303 thousand. The dividend payment date was April 12, 2016.
15. Financial assets and liabilities that are measured at fair value
At the end of the reporting period March, 31, 2016, the fair value of the financial assets categorized at fair value on hierarchy level 3 was EUR 500 thousand. The methods of fair value determination correspond the valuation principles presented in the Annual financial statements for 2015. There were no transfers between the hierarchy levels 1 and 2 during the reporting period.
| 16. Exchange rates used | |||||
| 1.1.–31.3. | 1.1.–31.3. | 1.1.–31.12. | |||
| Income statement, euros | 2016 | 2015 | 2015 | ||
| CNY (Chinese juan) | 7,2482 | 7,0284 | 6,9733 | ||
| RUB (Russian rouble) | 82,4730 | 71,0867 | 68,0090 | ||
| CAD (Canadian dollar) | 1,5154 | 1,3966 | 1,4177 | ||
| USD (US dollar) | 1,1018 | 1,1270 | 1,1097 | ||
| SGD (Singapore dollar) | 1,5468 | 1,5280 | 1,5251 | ||
| CLP (Chilean peso) | 774,0937 | 703,1988 | 725,3048 | ||
| 31.3. | 31.3. | 31.12. | |||
| Balance sheet, euros | 2016 | 2015 | 2015 | ||
| CNY (Chinese juan) | 7,2220 | 6,7623 | 7,0223 | ||
| RUB (Russian rouble) | 76,3051 | 62,4400 | 80,6736 | ||
| CAD (Canadian dollar) | 1,4738 | 1,3738 | 1,5116 | ||
| USD (US dollar) | 1,1385 | 1,0759 | 1,0887 | ||
| SGD (Singapore dollar) | 1,5304 | 1,4774 | 1,5417 | ||
| CLP (Chilean peso) | 757,1601 | 681,2526 | 765,9751 |
| FINANCIAL DEVELOPMENT | 31.3. | 31.3. | 31.12. | ||
| 2016 | 2015 | 2015 | |||
| Change in net sales, % | 7,4 | 63,8 | 35,4 | ||
| Exported portion of net sales, % | 76,8 | 91,4 | 76,3 | ||
| Return on investment (ROI), % | 19,0 | 19,4 | 28,5 | ||
| Return on equity, ROE, % | 12,6 | 18,2 | 24,7 | ||
| Interest-bearing net liabilities, EUR million | -6,0 | -10,3 | -5,0 | ||
| Gearing, % | -21,4 | -44,1 | -16,8 | ||
| Equity ratio, % | 56,5 | 52,6 | 58,5 | ||
| Gross capital expenditure, EUR million | 1,0 | 0,5 | 2,5 | ||
| % of net sales | 3,6 | 1,9 | 2,0 | ||
| Research and development costs, EUR million | 0,8 | 0,4 | 3,1 | ||
| % of net sales | 2,9 | 1,8 | 2,4 | ||
| Order book, EUR million | 44 | 101 | 60 | ||
| Order intake, EUR million | 13 | 84 | 145 | ||
| SHARE-RELATED DATA | 31.3. | 31.3. | 31.12. | ||
| 2016 | 2015 | 2015 | |||
| Earnings per share, (EPS), undiluted, EUR | 0,22 | 0,27 | 1,65 | ||
| Earnings per share, (EPS), diluted, EUR | 0,22 | 0,27 | 1,64 | ||
| Equity to share, EUR | 6,77 | 5,81 | 7,26 | ||
| Dividend per series A share, EUR | - | - | 0,80 | ||
| Dividend per series K share, EUR | - | - | 0,80 | ||
| Dividend per profit, % | - | - | 48,4 | ||
| Effective dividend return, % | - | - | 5,7 | ||
| Repayment of equity from invested non-restricted equity reserve, EUR | - | - | - | ||
| Development in share price (series A shares) | |||||
| Lowest share price for the period, EUR | 13,00 | 7,17 | 7,17 | ||
| Highest share price for the period, EUR | 15,30 | 13,59 | 14,25 | ||
| Average share price for the period, EUR | 14,01 | 10,62 | 11,95 | ||
| Share price at the end of the period, EUR | 15,24 | 11,80 | 14,12 | ||
| Market value of capital stock | |||||
| - Series K shares, EUR million* | 15,1 | 11,7 | 14,0 | ||
| - Series A shares, EUR million | 47,8 | 35,7 | 44,1 | ||
| Total, EUR million | 62,9 | 47,4 | 58,1 | ||
| *Series K shares valued at the value of series A shares. | |||||
| Trading of the company's shares (series A shares) | |||||
| Trading of shares, pcs | 268 601 | 438 872 | 1 094 902 | ||
| Trading of shares, EUR million | 3,8 | 4,7 | 13,1 | ||
| Number of shares | |||||
| - Series K shares, ordinary shares (20 votes, share) | 991 161 | 991 161 | 991 161 | ||
| - Series A shares (1 vote/share) | 3 136 997 | 3 024 067 | 3 120 547 | ||
| Total | 4 128 158 | 4 015 228 | 4 111 708 | ||
| Number of shares, weighted average, 1 000 pcs | 4 124 | 4 015 | 4 051 | ||
| Number of shares, diluted, 1 000 pcs | 4 151 | 4 043 | 4 139 | ||
| Number of shareholders | 2 881 | 2 054 | 2 623 | ||
| DEVELOPMENT OF | Q 2 | Q 3 | Q 4 | Q 1 | Rolling | Rolling |
| QUARTERLY RESULTS | 2015 | 2015 | 2015 | 2016 | 1.4.2015 | 1.4.2014 |
| (EUR 1 000) | – | – | ||||
| 31.3.2016 | 31.3.2015 | |||||
| NET SALES | 31 759 | 31 391 | 39 521 | 26 427 | 129 099 | 103 607 |
| Change in inventories of finished goods and | ||||||
| work in progress | -532 | 1 161 | -1 254 | 917 | 292 | 1 916 |
| Other operating income | 314 | 7 | 32 | 962 | 1 314 | 87 |
| Materials and services | -16 197 | -18 623 | -21 316 | -14 264 | -70 400 | -56 434 |
| Employee benefits expense | -8 878 | -8 357 | -8 935 | -9 131 | -35 301 | -30 280 |
| Depreciation and amortization | -716 | -565 | -296 | -515 | -2 092 | -2 101 |
| Impairment | - | - | -1 370 | - | -1 370 | - |
| Other operating expenses | -3 529 | -3 102 | -3 600 | -3 009 | -13 239 | -11 064 |
| Total operating expenses | -29 320 | -30 646 | -35 518 | -26 919 | -122 403 | -99 879 |
| OPERATING PROFIT (LOSS) | 2 222 | 1 912 | 2 781 | 1 386 | 8 301 | 5 730 |
| % of net sales | 7 | 6 | 7 | 5 | 6 | 6 |
| Financial income | -10 | -42 | 129 | 93 | 169 | 667 |
| Financial expenses | -61 | -99 | -72 | -222 | -453 | -300 |
| PROFIT (LOSS) BEFORE TAX | 2 151 | 1 772 | 2 837 | 1 258 | 8 017 | 6 097 |
| % of net sales | 7 | 6 | 7 | 5 | 6 | 6 |
| Income taxes | -400 | -300 | -459 | -353 | -1 512 | -1 070 |
| PROFIT (LOSS) FOR THE PERIOD | 1 750 | 1 472 | 2 378 | 904 | 6 505 | 5 027 |
| % of net sales | 6 | 5 | 6 | 3 | 5 | 5 |
| Attributable to | ||||||
| Equity holders of the Parent company | 1 750 | 1 472 | 2 378 | 904 | 6 505 | 5 027 |
| Earnings per share, EUR | ||||||
| Undiluted earnings per share | 0,43 | 0,36 | 0,58 | 0,22 | 1,58 | 1,25 |
| Diluted earnings per share | 0,43 | 0,36 | 0,58 | 0,22 | 1,58 | 1,25 |
| Shares, 1 000 pcs | ||||||
| Adjusted average number of shares | 4 025 | 4 053 | 4 091 | 4 124 | 4 124 | 4 015 |
| Adjusted average number of shares | ||||||
| diluted | 4 036 | 4 065 | 4 139 | 4 151 | 4 128 | 4 043 |
| FINANCIAL DEVELOPMENT QUARTERLY | Q 2 | Q 3 | Q 4 | Q 1 | Rolling | Rolling |
| 2015 | 2015 | 2015 | 2016 | 1.4.2015 | 1.4.2014 | |
| – | – | |||||
| 31.3.2016 | 31.3.2015 | |||||
| Order intake during the period, EUR million | 31 | 14 | 16 | 13 | 74 | 180 |
| Order book at the end of the period, EUR million | 100 | 83 | 60 | 44 | 44 | 101 |
| 20 LARGEST SHAREHOLDERS AT MARCH 31, 2016 | ||||||
| Total number | % of total | Total number | % of voting | |||
| By number of shares | Number of series K shares | Number of series A shares | of shares | shares | of votes | rights |
| 1. Sundholm Göran Wilhelm | - | 623 423 | 623 423 | 15,1 | 623 423 | 2,7 |
| 2. Mandatum Life Unit-Linked | - | 182 635 | 182 635 | 4,4 | 182 635 | 0,8 |
| 3. Laakkonen Mikko | - | 119 919 | 119 919 | 2,9 | 119 919 | 0,5 |
| 4. Suominen Pekka | 48 000 | 62 429 | 110 429 | 2,7 | 1 022 429 | 4,5 |
| 5. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | 2,5 | 1 066 339 | 4,6 |
| 6. Kirmo Kaisa Marketta | 55 680 | 48 341 | 104 021 | 2,5 | 1 161 941 | 5,1 |
| 7. Suominen Tiina Sini-Maria | 48 000 | 54 316 | 102 316 | 2,5 | 1 014 316 | 4,4 |
| 8. Relander Harald Bertel | - | 85 000 | 85 000 | 2,1 | 85 000 | 0,4 |
| 9. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | 2,1 | 723 116 | 3,1 |
| 10. Mustakallio Mika Tapani | 57 580 | 26 270 | 83 850 | 2,0 | 1 177 870 | 5,1 |
| 11. Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | 2,0 | 1 231 609 | 5,4 |
| 12. Mustakallio Kari Pauli | 60 480 | 500 | 60 980 | 1,5 | 1 210 100 | 5,3 |
| 13. Mustakallio Marja Helena | 43 240 | 16 047 | 59 287 | 1,4 | 880 847 | 3,8 |
| 14. Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 | 1,3 | 283 256 | 1,2 |
| 15. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 | 1,3 | 283 256 | 1,2 |
| 16. Mustakallio Ulla Sinikka | 53 240 | - | 53 240 | 1,3 | 1 064 800 | 4,6 |
| 17. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | 1,3 | 527 164 | 2,3 |
| 18. Keskinäinen työeläkevakuutusyhtiö Varma | - | 51 950 | 51 950 | 1,3 | 51 950 | 0,2 |
| 19. Suominen Jussi Matias | 48 000 | - | 48 000 | 1,2 | 960 000 | 4,2 |
| 20. Keskiaho Ilta Marjaana | 24 780 | 19 094 | 43 874 | 1,1 | 514 694 | 2,2 |
| TOTAL | 632 680 | 1 531 064 | 2 163 744 | 52,4 | 14 184 664 | 61,8 |
| Total number | % of total | Total number | % of voting | |||
| By number of votes | Number of series K shares | Number of series A shares | of shares | shares | of votes | rights |
| 1. Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | 2,0 | 1 231 609 | 5,4 |
| 2. Mustakallio Kari Pauli | 60 480 | 500 | 60 980 | 1,5 | 1 210 100 | 5,3 |
| 3. Mustakallio Mika Tapani | 57 580 | 26 270 | 83 850 | 2,0 | 1 177 870 | 5,1 |
| 4. Kirmo Kaisa Marketta | 55 680 | 48 341 | 104 021 | 2,5 | 1 161 941 | 5,1 |
| 5. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | 2,5 | 1 066 339 | 4,6 |
| 6. Mustakallio Ulla Sinikka | 53 240 | - | 53 240 | 1,3 | 1 064 800 | 4,6 |
| 7. Suominen Pekka | 48 000 | 62 429 | 110 429 | 2,7 | 1 022 429 | 4,5 |
| 8. Suominen Tiina Sini-Maria | 48 000 | 54 316 | 102 316 | 2,5 | 1 014 316 | 4,4 |
| 9. Suominen Jussi Matias | 48 000 | - | 48 000 | 1,2 | 960 000 | 4,2 |
| 10. Mustakallio Marja Helena | 43 240 | 16 047 | 59 287 | 1,4 | 880 847 | 3,8 |
| 11. Mustakallio Risto Knut kuolinpesä | 42 240 | - | 42 240 | 1,0 | 844 800 | 3,7 |
| 12. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | 2,1 | 723 116 | 3,1 |
| 13. Sundholm Göran Wilhelm | - | 623 423 | 623 423 | 15,1 | 623 423 | 2,7 |
| 14. Keskiaho Vesa Heikki | 29 680 | - | 29 680 | 0,7 | 593 600 | 2,6 |
| 15. Keskiaho Juha-Pekka | 27 880 | 5 816 | 33 696 | 0,8 | 563 416 | 2,5 |
| 16. Kirmo Lasse Antti | 27 645 | 3 167 | 30 812 | 0,7 | 556 067 | 2,4 |
| 17. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | 1,3 | 527 164 | 2,3 |
| 18. Keskiaho Ilta Marjaana | 24 780 | 19 094 | 43 874 | 1,1 | 514 694 | 2,2 |
| 19. Kultanen Leea Annikka | 22 405 | 8 031 | 30 436 | 0,7 | 456 131 | 2,0 |
| 20. Molander Sole | 20 160 | - | 20 160 | 0,5 | 403 200 | 1,8 |
| TOTAL | 778 690 | 1 022 062 | 1 800 752 | 43,6 | 16 595 862 | 72,3 |
| MANAGEMENT'S AND PUBLIC INSIDERS' SHAREHOLDING AND NOMINEE-REGISTERED SHARES | ||||||
| Number of series K shares | Number of series A shares | Total number of shares | % of total shares | Total number of votes | % of voting rights | |
| Management's and Public insiders' | ||||||
| holding at March 31, 2016 | ||||||
| The Board of Directors, The Group's President and CEO and Executive Board* | 122 830 | 115 049 | 237 879 | 5,8 | 2 571 649 | 11,2 |
| TOTAL | 122 830 | 115 049 | 237 879 | 5,8 | 2 571 649 | 11,2 |
| *The figures include the holdings of their own, minor children and control entities. | ||||||
| Nominee-registered shares at March 31, 2016 | - | 131 040 | 131 040 | 3,2 | 131 040 | 0,6 |
RAUTE CORPORATION
Board of Directors
BRIEFING ON APRIL 29, 2016 AT 2 P.M.:
A briefing will be organized for analysts, investors and the media on April 29, 2016 at 2 p.m. at Scandic Simonkenttä Hotel, Tapiola cabinet, Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Ms. Arja Hakala, CFO.
NEXT INTERIM REPORT:
Raute Corporation’s interim report January 1–June 30, 2016 will be published on Wednesday, July 27, 2016.
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3500, mobile phone +358 400 814 148
Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile phone +358 400 710 387
DISTRIBUTION:
Nasdaq Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the customer’s entire production process. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in the Nastola area of Lahti, Finland. The company’s other production plants are in Kajaani, Finland, the Vancouver area of Canada and in the Shanghai area of China. Raute’s net sales in 2015 were EUR 127.3 million. The Group’s headcount at the end of 2015 was 646.
More information about the company can be found at www.raute.com.