Raute Corporation - Interim Report January 1 - March 31, 2018

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RAUTE CORPORATION INTERIM REPORT APRIL 27, 2018 AT 9:00 a.m.


RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2018

- The Group’s first-quarter net sales, EUR 35.3 million (MEUR 36.6), declined 4% on the comparison period.
- Operating profit amounted to EUR 2.8 million (MEUR 2.7), up 3%. The result before taxes was EUR 2.9 million (MEUR 2.9).
- Undiluted earnings per share were EUR 0.53 (EUR 0.50) and diluted earnings per share were EUR 0.53 (EUR 0.49).
- Order intake, at EUR 68 million (MEUR 24), was at a very good level. The order book at the end of the reporting period came to a record EUR 142 million (MEUR 93), a significant proportion of which is scheduled for 2019.
- Raute’s net sales and operating profit for 2018 are expected to be at the previous year’s level.


PRESIDENT AND CEO TAPANI KIISKI: FIRST QUARTER AS EXPECTED, ORDER INTAKE PARTICULARLY PLEASING

The start of the year was in line with our expectations. Net sales in the first quarter fell slightly short of the result of the comparison period, due to the scheduling of the order book, but operating profit improved somewhat. Even larger variations between quarters are the norm for Raute’s business, and we expect to see the same this year, too.

Demand for our technology and services continues to be strong. The greatest demand in the first quarter was seen in the traditional industrialized markets, and especially in Europe the brisk demand continued. In emerging markets, demand has been more subdued and more focused on simple technology than before.

Active demand also materialized into orders. Two mill-scale orders, both LVL mill projects, raised the volume of our new orders to an excellent level. Even without these mill-scale orders, our volume of new orders was at a sustainable level. It is also pleasing to note that, for the first time in a while, one of these major orders was received from Asia. The first steps, considered to be of minor value at this stage, but important for the future, were a significant cooperation contract concluded with a Russian customer encompassing extensive maintenance services for several mills, and the first service contract based on Raute’s IoT technology concluded with a European customer.

Our order book reached a new record of EUR 142 million. A significant proportion of the work is also scheduled for 2019. We have further increased our overall capacity and scheduled our deliveries in a way that allows us to serve our customers with reasonable delivery times also in the near future. A strong order book gives us the opportunity to focus on developing, within the framework of our resources, new technologies and customer relationships in emerging markets, where we have not managed to secure a position that is in line with our goals.

Our historically strong order book and continued brisk demand already secure this year’s outlook and provide a glimpse into next year. We are enjoying good momentum in reaching our goals for this year. Raute’s net sales and operating profit for 2018 are expected to be at the previous year’s level.


RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – MARCH 31, 2018

BUSINESS ENVIRONMENT

Market situation in customer industries

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

The situation in the global economy and the financial markets in the early months of 2018 did not change considerably with respect to Raute or Raute’s customer base. The positive development has continued in the key market areas, despite the growing political uncertainty. Although construction activity increased in many market areas, it remained at a fairly low level in all major market areas.

Demand for wood products technology and technology services

Thanks to the continued brighter economic and market situation, investment activity among Raute’s customers has remained at a good level. Enquiry activity for new capacity projects and larger projects involving replacement and efficiency-boosting investments has remained brisk, and trade is being actively negotiated.

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

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

ORDER INTAKE AND ORDER BOOK

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

The good market situation is reflected in the volume of new orders Raute has received. During the first quarter, the order intake, EUR 68 million (MEUR 24), was at a very good level. The most significant new orders were a EUR 23 million order for an LVL mill expansion in Finland, and a EUR 20 million order for LVL line equipment for North-East Asia.

Of the new orders, 55 percent came from Europe (52%), 29 percent from Asia-Pacific (1%), 11 percent from North America (19%), 4 percent from Russia (18%) and 1 percent from South America (10%). Sometimes even 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 15 million (MEUR 10), increasing 54 percent on the comparison period.
 
The order book increased during the first quarter by EUR 32 million. The order book at the end of the reporting period amounted to a record EUR 142 million (MEUR 93). A large part of the order book has already been scheduled for 2019.

COMPETITIVE POSITION

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

Raute improves its competitive position, in particular, through knowledge-intensive services. Two examples of this during the reporting period are the extensive maintenance contract concluded with a Russian customer, and the first expert service contract based on Raute’s IoT solutions concluded with a European customer.

NET SALES

Net sales for the reporting period, EUR 35.3 million (MEUR 36.6), declined 4 percent on the first quarter of 2017. Net sales were in line with the scheduling of the order book.

Of the total net sales for the reporting period, Europe accounted for 54 percent (51%), Russia for 22 percent (32%), North America for 16 percent (12%), South America for 5 percent (2%), and Asia-Pacific for 3 percent (3%).

Technology services accounted for 30 percent (28%) of the Group’s total net sales and amounted to EUR 11 million (MEUR 10).

RESULT AND PROFITABILITY

Operating profit was EUR 2.8 million positive (MEUR 2.7 positive) and accounted for 7.8 percent of net sales (7.3%).

The result before taxes for the reporting period was EUR 2.9 million positive (MEUR 2.9 positive). The result for the reporting period was EUR 2.3 million positive (MEUR 2.1 positive). Earnings per share (undiluted) were EUR 0.53 (EUR 0.50).

CASH FLOW AND BALANCE SHEET

The Group’s financial position remained good. At the end of the reporting period, gearing was –105 percent (–22%) and the equity ratio was 55 percent (52%). 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 39.4 million (MEUR 10.0) at the end of the reporting period. Operating cash flow was EUR 9.8 million positive (MEUR 13.5 negative). Cash flow from investment activities was EUR 1.1 million negative (MEUR 0.4 negative). Cash flow from financing activities was EUR 0.1 million positive (MEUR 0.1 positive).

Interest-bearing liabilities amounted to EUR 1.4 million (MEUR 3.1) 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 21.5 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:

29 January 2018 Raute received orders worth approximately EUR 23 million to Finland
09 February 2018 Raute receives order worth almost 20 million euros from North-East Asia
06 March 2018 Disposal of Raute Corporation’s own shares
22 March 2018 Second plan for Raute’s top management remuneration system, LTI Plan 2018–2020, takes off
22 March 2018 Decisions of Raute’s Annual General Meeting 2018
23 March 2018 Changes in Raute Group’s Executive Board as of 27 March 2018.

RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE

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

Research and development costs in the reporting period amounted to EUR 0.8 million (MEUR 0.8), representing 2.2 percent of net sales (2.1%).

Capital expenditure during the period came to EUR 1.0 million (MEUR 0.4) and accounted for 2.7 percent (1.1%) of net sales.

PERSONNEL

At the end of the reporting period, the Group’s personnel numbered 716 (658). Group companies outside Finland accounted for 32 percent (29%) of employees.

Converted to full-time employees (“effective headcount”), the average number of employees was 692 (635) during the reporting period.

SHARES

The number of Raute Corporation’s shares at the end of the reporting period totaled 4,256,379, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,265,218 were series A shares (1 vote/share). Series K and A shares confer equal rights to dividends and company assets.

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

Raute Corporation’s series A shares are listed on Nasdaq Helsinki Ltd. The trading code is RAUTE. Raute Corporation has signed a market making agreement with Nordea Bank Ab in compliance with the Liquidity Providing (LP) requirements issued by Nasdaq Helsinki Ltd.

The company’s market capitalization at the end of the reporting period was EUR 130.2 million (MEUR 94.4), with series K shares valued at the closing price of series A shares on March 31, 2018, i.e. EUR 30.60 (EUR 22.37).

RAUTE CORPORATION’S 2010 STOCK OPTIONS

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

REMUNERATION

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

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

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

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

SHAREHOLDERS

The number of shareholders totaled 4,797 at the beginning of the year and 4,761 at the end of the reporting period. Series K shares were held by 55 private individuals (50) at the end of the reporting period. Nominee-registered shares accounted for 6.3 percent (2.4%) of shares. The company did not receive any flagging notifications during the reporting period.

The Board of Directors, the President and CEO as well as the Executive Board held altogether 260,810 company shares, equaling 6.1 percent (6.2%) of the company shares and 11.7 percent (11.3%) of the votes at the end of the reporting period.

CORPORATE GOVERNANCE

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

EXECUTIVE BOARD

Raute Group’s Executive Board and the members’ areas of responsibility:

Tapani Kiiski, President and CEO, Chairman – sales
Arja Hakala, Group Vice President, Strategy – business development 
Marko Hjelt, Group Vice President, Human Resources – personnel and competence development
Mika Hyysti, Group Vice President, Technology – technology, products and R&D
Timo Kangas, Group Vice President, EMEA – market area EMEA
Antti Laulainen, Group Vice President, Technology Services and Sales Management – technology services and sales management
Petri Strengell, Group Vice President, Supply Chain – sourcing and production
Olli-Pekka Vanhanen, Group Vice President, CFO – finance and administration (as of March 27, 2018).

ANNUAL GENERAL MEETING 2018

Raute Corporation’s Annual General Meeting was held on March 22, 2018. The Annual General Meeting adopted the financial statements for 2017, discharged those accountable from liability and resolved to distribute a dividend of EUR 1.25 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 2019. Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio was elected Vice-Chair, and Mr. Joni Bask, Ms. Laura Raitio, Mr. Pekka Suominen, and Mr. Patrick von Essen were elected as Board members.

The authorized public accounting company PricewaterhouseCoopers was chosen as the 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 resolved to amend articles 8 and 13 of the Articles of Association pertaining to the auditor to correspond to the valid Finnish Auditing Act.

More detailed information on the decisions of the Annual General Meeting can be found in the stock exchange release issued on March 22, 2018.

DISTRIBUTION OF PROFIT FOR THE 2017 FINANCIAL YEAR

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

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 22, 2018 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. Laura Raitio, and Mr. Pekka Suominen are independent of the company. Vice Chair of the Board of Directors Mr. Mika Mustakallio is not estimated to be independent of the company, as he has served on the Board of Directors for more than ten years. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Patrick von Essen and Ms. Laura Raitio) are independent of major shareholders.

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

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 2017 Board of Directors’ Report and Financial Statements.

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

OUTLOOK FOR 2018

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


TABLES SECTION OF THE INTERIM REPORT

Raute Corporation’s Board of Directors has on April 27, 2018 reviewed the Interim financial report for January 1 – March 31, 2018, and approved it to be published.

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

CONSOLIDATED STATEMENT OF  INCOME     
  RestatedRestated  
 1.1.–31.3.1.1.–31.3.1.1.–31.12.  
EUR 1 000201820172017  
      
NET SALES35 27236 589148 064  
      
Change in inventories of finished goods and work in progress1 2304922 054  
      
Other operating income652896  
      
Materials and services-18 174-20 747-80 721  
Employee benefits expense-11 246-9 756-41 036  
Depreciation and amortization-650-618-2 633  
Other operating expenses -3 743-3 311-14 653  
Total operating expenses -33 813-34 432-139 042  
      
OPERATING PROFIT 2 7542 67811 171  
% of net sales7,87,37,5  
      
Financial income225318359  
Financial expenses-64-105-411  
Financial expenses, net160212-51  
      
PROFIT BEFORE TAX2 9142 89011 120  
% of net sales8,37,97,5  
      
Income taxes-659-789-2 141  
PROFIT FOR THE PERIOD2 2562 1018 979  
% of net sales6,45,76,1  
      
Profit for the period attributable to      
Equity holders of the Parent company2 2562 1018 979  
      
Earnings per share for profit attributable     
to Equity holders of the Parent company, EUR    
Undiluted earnings per share 0,53 0,50 2,13  
Diluted earnings per share0,530,492,11  
      
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME     
 1.1.–31.3.1.1.–31.3.1.1.–31.12.  
EUR 1 000201820172017  
      
PROFIT FOR THE PERIOD2 2562 1018 979  
      
Other comprehensive income items:     
Items that may be subsequently reclassified to profit or loss     
Changes in the fair value of available-for-sale investments--259193  
Hedge accounting40--31  
Exchange differences on translating foreign operations15-29-183  
Income taxes related to these items-2852-32  
Comprehensive income items for the period, net of tax27-236-52  
      
COMPREHENSIVE PROFIT FOR THE PERIOD2 2831 8658 927  
      
      
Comprehensive profit for the period attributable to    
Equity holders of the Parent company2 2831 8658 927  
      
Shares, 1 000 pcs     
Adjusted average number of shares4 2484 2054 225  
Adjusted average number of shares diluted4 2674 2494 259  
      
CONSOLIDATED BALANCE SHEET     
  RestatedRestated  
 31.3.31.3.31.12.  
EUR 1 000201820172017  
ASSETS     
Non-current assets     
Goodwill1 036-1 035  
Other intangible assets2 4961 2652 548  
Property, plant and equipment10 2839 4469 948  
Other financial assets923471923  
Deferred tax assets2476410  
Total non-current assets14 98511 18814 865  
      
Current assets     
Inventories12 86510 15711 010  
Accounts receivables and other receivables27 08342 59730 363  
Income tax receivable815645  
Cash and cash equivalents39 44110 03230 724  
Total current assets79 47062 84272 142  
      
TOTAL ASSETS94 45574 02987 006  
      
EQUITY AND LIABILITIES     
Equity attributable to Equity holders of the Parent company     
Share capital8 2568 2568 256  
Fair value reserve and other reserves7 3906 5257 156  
Exchange differences674813659  
Retained earnings17 87614 32314 321  
Profit for the period2 2562 1018 979  
Total equity36 45132 01839 372  
      
Non-current liabilities     
Provisions838722707  
Deferred tax liability435286  
Total non-current liabilities881774793  
      
Current liabilities     
Provisions1 6321 1281 378  
Current interest-bearing liabilities1 3653 1061 413  
Current advance payments received28 33812 80525 739  
Income tax liability2381 464829  
Trade payables and other liabilities25 55122 73517 481  
Total current liabilities57 12341 23746 841  
      
Total liabilities58 00442 01247 634  
      
TOTAL EQUITY AND LIABILITIES94 45574 02987 006  
      
CONSOLIDATED STATEMENT OF CASH FLOWS    
  1.1.–31.3.1.1.–31.3.1.1.–31.12. 
EUR 1 000 201820172017 
      
CASH FLOW FROM OPERATING ACTIVITIES    
Proceeds from customers 42 04822 385167 370 
Other operating income 652850 
Payments to suppliers and employees -31 403-35 615-145 131 
Cash flow before financial items and taxes 10 709-13 20122 289 
Interest paid from operating activities -24-59-277 
Dividends received from operating activities 16299120 
Interest received from operating activities 417 
Other financing items from operating activities 7242-298 
Income taxes paid from operating activities -1 127-404-3 408 
NET CASH FLOW FROM OPERATING ACTIVITIES (A)9 796-13 52118 432 
      
CASH FLOW FROM INVESTING ACTIVITIES    
Purchase of property, plant and equipment and intangible assets-1 141-604-2 874 
Business transaction ---3 193 
Proceeds from sale of property, plant and equipment and intangible assets813117 
Proceeds from sale of investments -182182 
NET CASH FLOW FROM INVESTING ACTIVITIES (B)-1 133-409-5 768 
      
CASH FLOW FROM FINANCING ACTIVITIES    
Proceeds from issue of share capital 59117207 
Proceeds from current borrowings --4 413 
Repayments of current borrowings ---6 136 
Dividends paid ---4 220 
NET CASH FLOW FROM FINANCING ACTIVITIES (C)59117-5 736 
      
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C)8 722-13 8136 928 
increase (+)/decrease (-)     
      
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD*30 72423 76923 769 
NET CHANGE IN CASH AND CASH EQUIVALENTS8 722-13 8136 928 
EFFECTS OF EXCHANGE RATE CHANGES ON CASH-47727 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD*39 44110 03230 724 
      
CASH AND CASH EQUIVALENTS IN THE BALANCE    
SHEET AT THE END OF THE PERIOD*     
Cash and cash equivalents 39 44110 03230 724 
TOTAL 39 44110 03230 724 
*Cash and cash equivalents comprise cash and bank receivables, which will be due within the following three months' period.
      
      
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY  
 ShareInvested non-restrictedOtherExchangeRetained
EUR 1 000capitalequity reservereservesdifferencesearnings
EQUITY at Jan. 1, 20188 2565 6521 50465923 623
Changes in accounting principles, IFRS 15-----322
Changes in accounting principles, IFRS 9-----104
Changes in accounting principles, IFRS 2--117--
RESTATED EQUITY at Jan. 1, 20188 2565 6521 62165923 197
Comprehensive profit for the period     
Profit for the period----2 256
Other comprehensive income items:     
Changes in the fair value of available-for-sale investments-----
Hedging reserve--40--
Exchange differences on translating foreign operations---15-
Income taxes related to these items---28--
Total comprehensive profit for the period--12152 256
Transactions with owners     
Share-options exercised-59---
Equity-settled share-based transactions--46--
Dividends-----5 320
Total transactions with equity holders059460-5 320
EQUITY at March 31, 20188 2565 7111 67967420 132
      
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY  
 To the equity holders ofTOTAL  
EUR 1 000the Parent companyEQUITY  
EQUITY at Jan. 1, 201839 694 39 694  
Changes in accounting principles, IFRS 15-322 -322  
Changes in accounting principles, IFRS 9-104 -104  
Changes in accounting principles, IFRS 2117 117  
RESTATED EQUITY at Jan. 1, 201839 385 39 385  
Comprehensive profit for the period     
Profit for the period2 256 2 256  
Other comprehensive income items:     
Changes in the fair value of available-for-sale investments- -  
Hedging reserve40 40  
Exchange differences on translating foreign operations15 15  
Income taxes related to these items-28 -28  
Total comprehensive profit for the period2 282 2 282  
Transactions with equity holders     
Share-options exercised59 59  
Equity-settled share-based transactions46 46  
Dividends-5 320 -5 320  
Total transactions with equity holders-5 215 -5 215  
EQUITY at March 31, 201836 451 36 451  
      
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY  
 ShareInvested non-restrictedOtherExchange Retained
EUR 1 000capitalequity reservereservesdifferencesearnings
EQUITY at Jan. 1, 20178 2565 4451 13284218 543
Changes in accounting principles-----
RESTATED EQUITY at Jan. 1, 20178 2565 4451 13284218 453
Comprehensive profit for the period     
Profit for the period----2 101
Other comprehensive income items:     
Changes in the fair value of available-for-sale investments---259--
Hedging reserve-----
Exchange differences on translating foreign operations----29-
Income taxes related to these items--52--
Total comprehensive profit for the period---207-292 101
Transactions with equity holders     
Share-options exercised-117---
Equity-settled share-based transactions--39--
Dividends -----4 220
Total transactions with equity holders0117390-4 220
EQUITY at March 31, 20178 2565 56296381316 424
      
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY  
 To the equity holders ofTOTAL  
EUR 1 000the Parent companyEQUITY  
EQUITY at Jan. 1, 201734 217 34 217  
Changes in accounting principles0 0  
RESTATED EQUITY at Jan. 1, 201734 217 34 217  
Comprehensive profit for the period     
Profit for the period2 101 2 101  
Other comprehensive income items:     
Changes in the fair value of available-for-sale investments-259 -259  
Hedging reserve- -  
Exchange differences on translating foreign operations-29 -29  
Income taxes related to these items52 52  
Total comprehensive profit for the period1 865 1 865  
Transactions with equity holders     
Share-options exercised117 117  
Equity-settled share-based transactions39 39  
Dividends -4 220 -4 220  
Total transactions with equity holders-4 064 -4 064  
EQUITY at March 31, 201732 018 32 018  
      
      
NOTES TO THE INTERIM FINANCIAL REPORT    

General information

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

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

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

All of the figures presented in the 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.

Basis of preparation

Raute Corporation’s Interim financial report for January 1 – March 31, 2018 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 2017. Raute Corporation’s consolidated financial statements information is available online at www.raute.com and at the head office of the Parent company, Rautetie 2, FI-15550 Nastola.

Raute Corporation’s Interim financial report for January 1 – March 31, 2018 has been prepared in accordance with the International Financial Reporting Standards, IFRS, accepted for application in the European Union, including related interpretations. The Interim financial report has been drawn up according to the same accounting principles as in the consolidated financial statements for 2017, except for the adoption of new standards effective as of January 1, 2018 or later.

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

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

IFRS 9 Financial instruments, has been effective as of January 1, 2018. The Group has adopted the standard non-retrospectively applying the simplified approach of the standard. The standard includes hedge accounting requirements, but these do not have significant effects on presenting the financial instruments nor on the Interim financial report. The standard includes also changes in the recognition of impairments. An expected credit loss has been estimated on financial receivables. Credit losses are based on the expected credit loss share, which has been measured based on the total outstanding amount of sales receivables, credit losses realized during previous interim periods and the Group’s estimate of the future development of economic conditions. The expected credit loss provision amount of EUR 0.1 million has been recognized as an adjustment to the opening balance of equity at January 1, 2018. During the interim period the change in the expected credit loss was EUR -45 thousand. The deferred tax related to this item has been recognized during the interim period.

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

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

Net sales

Raute serves the wood products industry with a full-service concept based on service that encompasses the entire life cycle of the delivered equipment. Raute’s business consists of project deliveries and technology services. Project deliveries encompass projects from individual machine or production line deliveries to deliveries of all the machines and equipment belonging to a mill’s production process.

Additionally, Raute’s full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations, as well as consulting, training and reconditioned machinery. Project deliveries and modernizations related to technology services include both product and service sales, making it impossible to give a reliable presentation of the breakdown of the Group’s net sales into purely product and service sales.

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

   Restated Restated
 1.1.–31.3. 1.1.–31.3. 1.1.–31.12.
 2018%2017%2017
Net sales by market area     
EMEA (Europe and Africa)19 3345418 6835181 952
CIS (Russia)7 6542211 7813235 365
NAM (North America)5 646164 2071221 115
LAM (South America)1 663573826 202
APAC (Asia-Pacific)97431 18033 429
TOTAL35 27210036 589100148 064
      
Finland accounted for 11 percent (13 %) of net sales.    
      
      
  RestatedRestated  
 31.3.31.3.31.12.  
 201820172017  
Long-term projects     
Specification of net sales     
Net sales by percentage of completion29 20330 660118 115  
Other net sales6 0695 92929 949  
TOTAL35 27236 589148 064  
      
Project revenues entered as income from currently undelivered    
long-term projects recognized by percentage of completion 133 546129 059135 322  
      
Amount of long-term project revenues not yet entered as income (order book)136 28692 005104 728  
      
The balance sheet items of the undelivered long-term projects    
Projects in which the value by percentage of completion exceeds   
advance payments invoiced      
- aggregate amount of costs incurred and recognized profits less recognized losses86 865113 32088 318  
- advance payments received71 20179 90867 913  
Gross amount due from customers15 66433 41220 405  
      
Projects in which advance payments invoiced exceed the value by   
percentage of completion      
- aggregate amount of costs incurred and recognized profits less recognized losses46 66415 75546 388  
- advance payments received73 35527 59868 846  
Gross amount due to customers26 69111 84322 458  
      
Advance payments included in the current liabilities in the balance sheet  
Gross amount due to customers26 69111 84322 458  
Other advance payments received, not under percentage of completion1 6479623 281  
Total28 33812 80525 739  
      
Advance payments of the long-term projects included in inventories in the balance sheet 
Advance payments paid for long-term projects754926659  
Total754926659  
      
      
 31.3.31.3.31.12.  
Number of personnel201820172017  
Effective, on average, persons692635660  
On average, persons711651682  
In books at March 31, persons716658704  
Personnel working abroad at the end of the period226191222  
Personnel working abroad, %31,629,031,5  
      
Pledges on behalf of the company's management    
No loans have been granted to the company's management.   
      
No pledges have been given or other commitments made on behalf of the company's management and shareholders. 
      
  31.3.31.3.31.12. 
  201820172017 
Research and development costs     
Research and development costs for the period-769-783-3 237 
Amortization of previously capitalized development costs-47-57-223 
Development costs recognized as an asset in the balance sheet78-123 
Research and development costs entered as expense for the period-738-839-3 338 
      
  31.3.31.3.31.12. 
  201820172017 
Other intangible assets     
Acquisition cost at the beginning of the period 14 79913 39113 391 
Exchange rate differences 0-7-48 
Additions 114601 750 
Reclassification between items -16-295 
Acquisition cost at the end of the period 14 91313 46114 799 
      
Accumulated depreciation and amortization at the beginning of the period-12 250-12 038-12 038 
Exchange rate differences 0642 
Accumulated depreciation and amortization of disposals and reclassifications--565 
Depreciation and amortization for the period -166-164-820 
Accumulated depreciation and amortization at the end of the period-12 417-12 196-12 250 
      
Book value of Other intangible assets, at the beginning of the period2 5481 3531 353 
Book value of Other intangible assets, at the end of the period2 4961 2652 548 
      
  31.3.31.3.31.12. 
  201820172017 
Property, plant and equipment     
Acquisition cost at the beginning of the period 50 13448 65748 657 
Exchange rate differences -457-58-596 
Additions 8533532 623 
Disposals 0-8-97 
Reclassification between items --16-452 
Acquisition cost at the end of the period 50 53048 92750 134 
      
Accumulated depreciation and amortization at the beginning of the period-40 186-39 077-39 077 
Exchange rate differences 42249520 
Accumulated depreciation and amortization of disposals and reclassifications--183 
Depreciation and amortization for the period -482-453-1 813 
Accumulated depreciation and amortization at the end of the period-40 248-39 481-40 186 
      
Book value of Property, plant and equipment, at the beginning of the period9 9489 5809 580 
Book value of Property, plant and equipment, at the end of the period10 2839 4469 948 
      
      

Financial assets

At the end of the reporting period March 31, 2018, the fair value of the financial assets categorized at fair value on hierarchy level 3 was EUR 923 thousand.

There were no transfers between the hierarchy levels 1 and 2 during the reporting period.

     
 31.3.31.3.31.12. 
 201820172017 
Current interest-bearing liabilities    
Partial payments of financial loans1 3653 1061 413 
TOTAL1 3653 1061 413 
     
Maturities of the interest-bearing financial liabilities at March 31, 2018 
Financial loansCurrentNon-currentTotal 
Partial payments of financial loans1 365-1 365 
TOTAL1 365-1 365 
     
 31.3.31.3.31.12. 
 201820172017 
Derivatives    
Nominal values of forward contracts in foreign currency     
Economic hedging    
- Related to financing893-492 
- Related to the hedging of net sales4 7224 8703 228 
Hedge accounting    
- Related to the hedging of net sales12 5563 96012 716 
     
Fair values of forward contracts in foreign currency   
Economic hedging    
- Related to financing-7-52 
- Related to the hedging of net sales61327 
Hedge accounting    
- Related to the hedging of net sales-96-55-18 
     
     
 31.3.31.3.31.12. 
 201820172017 
Pledged assets and contingent liabilities    
On behalf of the Parent company    
Business mortgages8 5256 6598 274 
     
Mortgage agreements on behalf of subsidiaries   
Financial loans1 3653 1061 413 
Other obligations374225313 
Business mortgages1 7383 3411 726 
     
Commercial bank guarantees on behalf of the Parent company and subsidiaries23 44117 42325 728 
     
Other own obligations    
Rental liabilities maturing within one year1 2829411 297 
Rental liabilities maturing in one to five years2 2386232 773 
Rental liabilities maturing later391- 
Total3 5601 5654 070 

Share-based payments

A total of 7,131 Raute’s series A shares have been subscribed for with Raute’s stock options 2010 C during the reporting period. The new shares have been registered in the Trade Register on February 26, 2018.

On March 31, 2018 the company’s share capital is EUR 8,256,316 and the number of company’s shares 4,256,379 pieces.

An expense of EUR 114 thousand was recognized for the share rewards to the income statement during the reporting period.

Distribution of the profit for the financial year 2017

Raute Corporation’s Annual General Meeting held on March 22, 2018, decided, according to the Board of Directors’ proposal, to distribute a dividend of EUR 1.25 per share to be paid for series A and K shares, a total of EUR 5,320 thousand. The dividend payment date was April 4, 2018.

Segment information

Continuing operations of Raute Group belong to the wood products technology segment. Raute Corporation’s Board of Directors is the chief operating decision maker that is responsible for assigning resources to the operating segment and assessing its result.

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

   RestatedRestated 
 31.3. 31.3.31.12. 
 2018 20172017 
Wood products technology     
Net sales35 272 36 589148 064 
Operating profit2 754 2 67811 171 
Assets94 455 74 02987 006 
Liabilities58 004 42 01247 634 
Capital expenditure967 4136 962 
      
   Restated Restated
 31.3. 31.3. 31.12.
 2018%2017%2017
Assets of the wood products technology     
segment by geographical location     
Finland85 0669065 3608877 541
North America5 53764 15865 693
China2 52633 24442 511
Russia1 045195811 007
South America14901720128
Other13201390127
TOTAL94 45510074 02910087 006
      
 31.3. 31.3. 31.12.
 2018%2017%2017
Capital expenditure of the wood products     
technology segment by geographical location    
Finland89192335814 283
North America66776182 663
China10---
Russia913113
South America----1
Other----1
TOTAL9671004131006 962
      
      
Exchange rates used in consolidation of subsidiaries    
 1.1.–31.3.1.1.–31.3.1.1.–31.12.  
Income statement, euros201820172017  
CNY (Chinese juan)7,81497,33417,6266  
RUB (Russian rouble)69,946462,519865,8806  
CAD (Canadian dollar)1,55451,40931,4644  
USD (US dollar)1,22951,06471,1292  
SGD (Singapore dollar)1,62131,50811,5583  
CLP (Chilean peso)740,1695697,9336732,3058  
      
 31.3.31.3.31.12.  
Balance sheet, euros201820172017  
CNY (Chinese juan)7,79827,36927,8073  
RUB (Russian rouble)70,889760,313069,3920  
CAD (Canadian dollar)1,58951,42651,5039  
USD (US dollar)1,23211,06911,1993  
SGD (Singapore dollar)1,61581,49401,6024  
CLP (Chilean peso)745,4177707,5191751,8129  

       
  RestatedRestated   
FINANCIAL DEVELOPMENT31.3.31.3.31.12.   
 201820172017   
Change in net sales, %-3,638,530,9   
Exported portion of net sales, %88,986,982,6   
Operating profit, % of net sales7,87,37,5   
Return on investment, (ROI), %30,332,929,5   
Return on equity, (ROE), %23,825,424,4   
Interest-bearing net liabilities, EUR million-38,1-6,9-29,3   
Gearing, % -104,5-21,6-74,4   
Equity ratio, %55,152,364,3   
       
Gross capital expenditure, EUR million1,00,47,0   
% of net sales2,71,14,7   
       
Research and development costs, EUR million0,80,83,2   
% of net sales2,22,12,2   
       
Order book, EUR million14293110   
Order intake, EUR million6824155   
       
       
  RestatedRestated   
SHARE-RELATED DATA31.3.31.3.31.12.   
 201820172017   
Earnings per share, (EPS), undiluted, EUR0,530,502,13   
Earnings per share, (EPS), diluted, EUR0,530,492,11   
Equity to share, EUR8,567,599,27   
Dividend per series A share, EUR--1,25   
Dividend per series K share, EUR--1,25   
Dividend per profit, %--56,8   
Effective dividend return, %--4,3   
Price/earnings ratio (P/E ratio)--13,17   
       
Development in share price (series A shares)     
Lowest share price for the period, EUR27,4016,8416,84   
Highest share price for the period, EUR34,9024,1530,52   
Average share price for the period, EUR30,8419,5322,70   
Share price at the end of the period, EUR30,6022,3729,00   
       
Market value of capital stock       
- Series K shares, EUR million*30,322,228,7   
- Series A shares, EUR million99,972,194,5   
Total, EUR million130,294,2123,2   
*Series K shares valued at the value of series A shares.       
       
Trading of the company's shares (series A shares)     
Trading of shares, pcs326 669207 572845 672   
Trading of shares, EUR million10,14,119,2   
       
Number of shares      
- Series K shares, ordinary shares (20 votes/share)991 161991 161991 161   
- Series A shares (1 vote/share)3 265 2183 228 5503 258 087   
Total4 256 3794 219 7114 249 248   
       
Number of shares, weighted average, 1 000 pcs4 2484 2054 225   
Number of shares, diluted, 1 000 pcs4 2674 2494 259   
       
Number of shareholders4 7613 7444 797   
       
       
     RollingRolling
DEVELOPMENT OF QUARTERLY RESULTSRestatedRestatedRestated restatedrestated
 Q2Q3Q4Q11.4.20171.4.2016
 2017201720172018
EUR 1 000    31.3.201831.3.2017
       
NET SALES35 05837 04939 36735 272146 747123 293
       
Change in inventories of finished goods      
and work in progress806-1879431 2302 791-275
       
Other operating income91167-19065132170
       
Materials and services-19 405-19 386-21 183-18 174-78 148-61 332
Employee benefits expense-10 347-9 495-11 437-11 246-42 525-37 232
Depreciation and amortization-660-654-702-650-2 665-2 442
Other operating expenses-4 223-3 381-3 738-3 743-15 085-12 332
Total operating expenses-34 634-32 916-37 060-33 813-138 423-113 338
       
OPERATING PROFIT1 3204 1133 0602 75411 2479 849
% of net sales3,811,17,87,87,78,0
       
Financial income17195225266347
Financial expenses-145-121-39-64-369-344
Financial expenses, net-127-102-34160-1033
       
PROFIT BEFORE TAX1 1924 0113 0262 91411 1449 852
% of net sales3,410,87,78,37,68,0
       
Income taxes-377-647-328-659-2 011-1 971
       
PROFIT FOR THE PERIOD8153 3642 6982 2569 1337 881
% of net sales2,39,16,96,46,26,4
       
Attributable to      
Equity holders of the Parent company8153 3642 6982 2569 1337 881
       
Earnings per share, EUR      
Undiluted earnings per share0,190,800,640,532,151,87
Diluted earnings per share0,190,790,630,532,141,86
       
Shares, 1 000 pcs      
Adjusted average number of shares4 2254 2294 2404 2484 2484 205
       
Adjusted average number of shares,       
diluted4 2424 2594 2744 2674 2674 249
       
FINANCIAL DEVELOPMENT QUARTERLYRestatedRestatedRestated RollingRolling
 Q2Q3Q4Q1restatedrestated
 2017 2017 2017 2018 1.4.2017–1.4.2016–
     31.3.201831.3.2017
Order intake during the period, EUR million29426068199173
Order book at the end of the period, EUR million878911014214293
       
20 LARGEST SHAREHOLDERS AT MARCH 31, 2018 BY NUMBER OF SHARES   
 NumberNumberTotal % ofTotal% of
 of seriesof seriesnumbertotalnumber voting
 K sharesA sharesof sharessharesof votesrights
1. Sundholm Göran-500 000500 00011,7500 0002,2
2. Mandatum Life Unit-Linked-131 396131 3963,1131 3960,6
3. Laakkonen Mikko Kalervo-119 919119 9192,8119 9190,5
4. Suominen Pekka48 00062 429110 4292,61 022 4294,4
5. Siivonen Osku Pekka50 64053 539104 1792,41 066 3394,6
6. Kirmo Kaisa Marketta55 68048 341104 0212,41 161 9415,0
7. Suominen Tiina Sini-Maria48 00053 356101 3562,41 013 3564,4
8. Keskiaho Kaija Leena33 60051 11684 7162,0723 1163,1
9. Mustakallio Mika Tapani62 10021 17083 2702,01 263 1705,5
10. Särkijärvi Anna Riitta60 48022 00982 4891,91 231 6095,3
11. Mustakallio Kari Pauli60 48050060 9801,41 210 1005,2
12. Mustakallio Marja Helena46 74012 54759 2871,4947 3474,1
13. Mustakallio Ulla Sinikka47 74010 73058 4701,4965 5304,2
14. Särkijärvi Anu Riitta12 00043 25655 2561,3283 2561,2
15. Särkijärvi Timo Juha12 00043 25655 2561,3283 2561,2
16. Suominen Jukka Matias24 96027 96452 9241,2527 1642,3
17. Keskinäinen työeläkevakuutusyhtiö Varma-51 95051 9501,251 9500,2
18. Relander Pär-Gustaf-51 00051 0001,251 0000,2
19. Suominen Jussi48 000-48 0001,1960 0004,2
20. Keskiaho Ilta Marjaana24 78019 09443 8741,0514 6942,2
TOTAL635 2001 323 5721 958 77246,014 027 57260,8
       
20 LARGEST SHAREHOLDERS AT MARCH 31, 2018 BY NUMBER OF VOTES   
 NumberNumberTotal % ofTotal% of
 of seriesof seriesnumbertotalnumber voting
 K sharesA sharesof sharessharesof votesrights
1. Mustakallio Mika Tapani62 10021 17083 2702,01 263 1705,5
2. Särkijärvi Anna Riitta60 48022 00982 4891,91 231 6095,3
3. Mustakallio Kari Pauli60 48050060 9801,41 210 1005,2
4. Kirmo Kaisa Marketta55 68048 341104 0212,41 161 9415,0
5. Siivonen Osku Pekka50 64053 539104 1792,41 066 3394,6
6. Suominen Pekka48 00062 429110 4292,61 022 4294,4
7. Suominen Tiina Sini-Maria48 00053 356101 3562,41 013 3564,4
8. Mustakallio Ulla Sinikka47 74010 73058 4701,4965 5304,2
9. Suominen Jussi 48 000-48 0001,1960 0004,2
10. Mustakallio Marja Helena46 74012 54759 2871,4947 3474,1
11. Mustakallio Risto Knut kuolinpesä42 240-42 2401,0844 8003,7
12. Keskiaho Kaija Leena33 60051 11684 7162,0723 1163,1
13. Keskiaho Vesa Heikki29 680-29 6800,7593 6002,6
14. Keskiaho Juha-Pekka27 8805 71633 5960,8563 3162,4
15. Suominen Jukka Matias24 96027 96452 9241,2527 1642,3
16. Keskiaho Ilta Marjaana24 78019 09443 8741,0514 6942,2
17. Sundholm Göran -500 000500 00011,7500 0002,2
18. Kultanen Leea Annikka21 5958 03129 6260,7439 9311,9
19. Molander Sole20 160-20 1600,5403 2001,7
20. Kirmo Lasse 19 0252 96421 9890,5383 4641,7
TOTAL771 780899 5061 671 28639,316 335 10670,8
       
       
MANAGEMENT'S SHAREHOLDING AND NOMINEE-REGISTERED SHARES   
 Number of series K sharesNumber of series A sharesTotal number of shares% of
total shares
Total number of votes% of voting rights
Management's holding at March 31, 2018      
The Board of Directors, The Group's President and CEO and Executive Board*127 890132 920260 8106,12 690 72011,7
Total127 890132 920260 8106,12 690 72011,7
       
*The figures include the holdings of their own, minor children and control entities.   
       
Nominee-registered shares at March 31, 2018-266 298266 2986,3266 2981,2
 


      

RAUTE CORPORATION
Board of Directors


BRIEFING ON APRIL 27, 2018 AT 2 P.M.:
A briefing will be organized for analysts, investors and the media on April 27, 2018 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 Mr. Olli-Pekka Vanhanen, CFO.

NEXT INTERIM REPORT:
Raute Corporation’s Half-year Report January 1-June 30, 2018 will be published on Tuesday, July 31, 2018.

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

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

RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in the Nastola area of Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. Raute’s net sales in 2017 were EUR 148.1 million. The Group’s headcount at the end of 2017 was 704. More information about the company can be found at www.raute.com.