Raute Corporation - Interim report January 1 - September 30, 2013

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RAUTE CORPORATION INTERIM REPORT OCTOBER 30, 2013 at 9:00 a.m.
 

RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2013

- The Group’s net sales, EUR 58.8 million (MEUR 67.4), declined 13 percent on the comparison period. The order intake was EUR 41 million (MEUR 104).
- The operating profit was EUR +0.3 million (MEUR +1.9). The profit before tax was EUR +0.4 million (MEUR +1.8).
- Earnings per share were EUR +0.07 (EUR +0.26).
- Third quarter net sales were EUR 15.6 million and operating profit was EUR 0.3 million negative. The order intake was very low at EUR 7 million.
- The order book at the end of the reporting period amounted to EUR 31 million.
- Raute issued a profit warning on September 4, 2013, due to the weakened profit outlook. Net sales are expected to decline from 2012. The operating profit is expected to weaken significantly from the previous year but to remain positive.
 

TAPANI KIISKI, PRESIDENT AND CEO: NEW ORDERS NEEDED!

The order intake remained very low in the third quarter, which lowered our profit outlook for the whole of 2013. The net sales for the third quarter remained lower than we forecast already in the summer, and, consequently, our financial result was negative.

The tentatively positive signs in the macroeconomy are yet to materialize in our industry. Our customers’ market environment is marked by duality. Utilization rates have remained reasonably high, but the order books are exceptionally short. In a single word, the situation could be described as uncertain. At Raute, the situation is materializing as a fairly normal, if not good, demand for services and small projects, with medium-sized and large projects, however, seeming to be unable to make it through to the decision-making and implementation phase. The total volume of new orders has remained very low during the first nine months of the year, despite the growth in technology services.

Our market position continues to be strong, but our order intake has not been sufficient to fuel steady or growing net sales. At the same time, a few of our larger projects in our order book have been moved forward. Our net sales have thus remained low due to the volume and scheduling of the order book. Our result is in line with our cost structure and with our expectations at such a low level of net sales.

We are also undergoing negotiations concerning a reasonable, if not a good, number of projects in several market areas, which has been the case throughout the year. Despite the fact that these projects are being moved further forward, I am confident that our order intake will take a turn for the better in the near future. The scheduling of our order book is such that the net sales and the operating profit for the rest of the year will depend on whether the new orders forecast for the end of the year are realized and on the amount of revenue generated by them for 2013.

THIRD QUARTER OF 2013

Order intake and order book

The order intake during the third quarter remained very low at EUR 7 million (MEUR 28). Technology services accounted for EUR 5 million (MEUR 7) of the order intake.  

The order book declined during the third quarter by EUR 9 million, amounting to EUR 31 million at the end of the period (MEUR 72).

Net sales

Third-quarter net sales were EUR 15.6 million (MEUR 29.9), down 21 percent on the second quarter. The decrease in net sales was due to the scheduling of the order book and the modest order intake during the previous three quarters.

Technology services accounted for 57 percent of total net sales (23%).

Result and profitability

Operating profit for the third quarter was EUR 0.3 million negative (MEUR 1.8 positive) and accounted for -2 percent (6%) of net sales. The third quarter result was EUR 0.4 million negative (MEUR 1.2 positive), and earnings per share were EUR –0.09 (EUR 0.31).

The result was negative due to low net sales.
 

RAUTE CORPORATION - INTERIM REPORT JANUARY 1-SEPTEMBER 30, 2013

BUSINESS ENVIRONMENT

Market situation in customer industries

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

The uncertainty related to the global economic and money-market trend is still being upheld by the risks associated with the growing debts of certain European countries, the future of the euro and by the fears of a slowdown in economic growth in Asian countries. For Raute’s customer industries, the market situation has continued to be uncertain in a number of market areas, although the customer industries’ capacity utilization rates have remained good. In North America, there are signs that the market situation is improving, although the signs are now weaker than a few months ago. This improvement is not yet reflected in concrete terms in the investment decisions of the plywood and LVL industries.

Demand for wood products technology and technology services

In the third quarter of 2013, our customers’ investments were focused on relatively small machine and equipment investments and modernizations. Demand for maintenance and spare parts services continued at a good level. This bears testimony to the fact that the utilization rates of Raute’s customers’ production facilities remained good. The demand for technology services developed positively in North America, which has for a long period been suffering from a difficult market situation.

Several large projects encompassing single production lines and mill-scale deliveries that are in the planning and negotiation phase are pending. Customers will decide on and realize these projects only once they are more confident that demand has recovered permanently and once financing for the projects can be arranged.
 

ORDER INTAKE AND ORDER BOOK

Raute serves the wood products industry with a full-service concept based on service that encompasses the entire life cycle of the delivered equipment. Raute’s business consists of project deliveries and technology services. Project deliveries comprise complete production machinery for new mills, production lines and individual machines and equipment. Additionally, Raute’s full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations as well as consulting, training and reconditioned machinery.

During the reporting period, the order intake remained at a low level, amounting to EUR 41 million (MEUR 104). The third quarter accounted for 18 percent of the total order intake. 31 percent of the new orders came from Europe (28%), 26 percent from Russia (12%), 24 percent from North America (6%), 12 percent from South America (52%) and 6 percent from Asia-Pacific (2%). The strong fluctuations in the distribution of new orders between the various market areas are typical for project-focused business.

The order intake in technology services amounted to EUR 24 million (MEUR 20), an increase of 20 percent on the comparison period. The growth resulted predominantly from modernization orders.

The order book weakened during the reporting period by EUR 19 million, amounting to EUR 31 million at the end of the period (MEUR 72).
 

COMPETITIVE POSITION

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

NET SALES

Net sales for the reporting period totaled EUR 58.8 million (MEUR 67.4), down 13 percent on the comparison period. The decline resulted from the low order intake during the first nine months of the year and from the scheduling of our order book.

Of the total net sales for the reporting period, Europe accounted for 45 percent (23%), South America for 21 percent (48%), Russia for 18 percent (17%), North America for 11 percent (9%), and Asia-Pacific for 4 percent (4%).

Technology services’ net sales grew 11 percent on the comparison period and accounted for 40 percent (30%) of total net sales.
 

RESULT AND PROFITABILITY

Operating profit for the reporting period was EUR 0.3 million positive (MEUR 1.9 positive) and accounted for 1 percent of net sales (3%).

The profit before tax for the reporting period was EUR 0.4 million positive (MEUR 1.8 positive). The profit for the reporting period was EUR 0.3 million positive (MEUR 1.0 positive). Earnings per share (undiluted) were EUR +0.07 (EUR +0.26).
 

CASH FLOW AND BALANCE SHEET

The Group’s financial position is good. At the end of the reporting period, gearing was -41 percent (-54%) and the equity ratio 55 percent (44%). Other 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, including financial assets recognized at fair value through profit or loss, amounted to EUR 18.0 million (MEUR 25.6) at the end of the reporting period. Operating cash flow was EUR 5.2 million positive (MEUR 4.8 positive). Cash flow from investment activities totaled EUR 2.0 million negative (MEUR 1.7 negative). Cash flow from financing activities was EUR 4.7 million negative (MEUR 3.2 negative), including dividend payments of EUR 2.0 million and debt repayments of EUR 2.7 million.

Interest-bearing liabilities amounted to EUR 8.7 million (MEUR 13.6) 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 concluded 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 15.0 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:

September 4, 2013     Raute’s profit outlook for the full year 2013 weakened
September 30, 2013   Raute strengthens its Group Executive Board
 

RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE

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

Research and development costs in the reporting period totaled EUR 2.0 million (MEUR 1.6), representing 3.3 percent of net sales (2.4%).

Investments totaled EUR 2.5 million (MEUR 2.2) in the reporting period. The majority of investments were related to productional investments at the mills in Nastola, Finland, and in China.


PERSONNEL

At the end of the reporting period, the Group’s personnel numbered 532 (496). Group companies outside Finland accounted for 28 percent (26%) of employees.

Converted to full-time employees (“effective headcount”), the average number of employees was 512 (476) during the reporting period.


SHARES

The number of Raute Corporation’s shares at the end of the reporting period totaled 4,004,758, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,013,597 series A shares (1 vote/share). The shares have a nominal value of 2 euros. Series K and A shares confer equal rights to dividends and company assets.

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

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

The company’s market capitalization at the end of the reporting period was EUR 33.6 million (MEUR 29.3), with series K shares valued at the closing price of series A shares on September 30, 2013, that is EUR 8.39 (EUR 7.32).


STOCK OPTION SCHEME 2010

In compliance with the authorization granted by the Annual General Meeting, the Board of Directors issued 2,000 stock options marked with the symbol 2010 A, 2,000 stock options marked 2010 B and 2,000 stock options marked 2010 C to the Group’s key employees on September 30, 2013. At the end of the reporting period, the Group’s key personnel held altogether 80,000 of the company’s series A stock options, 80,000 series B stock options and 80,000 series C stock options. The subscription period for series A stock options began on March 1, 2013. Stock options have not been exercised to subscribe for shares. More detailed information concerning the stock option system is available on the company’s website.


SHAREHOLDERS

The number of shareholders totaled 1,682 at the beginning of the year and 1,878 at the end of the reporting period. Series K shares were held by 49 private individuals (49) at the end of the reporting period. The Board of Directors, the Group’s President and CEO as well as the Executive Group held altogether 232,799 company shares, equaling 5.8 percent (5.6%) of the company shares and 11.2 percent (11.1%) of the votes at the end of the reporting period. Nominee-registered shares accounted for 3.1 percent (3.3%) of the total shares.

No flagging notifications were given to the company during the reporting period.


CORPORATE GOVERNANCE

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

Raute deviates from the Code’s recommendation 22 on appointing members to the Appointments Committee in that one member to the Committee is elected from outside the Board of Directors, as per the company’s Administrative Instructions, from among the representatives of major shareholders who have significant voting rights. The Board views this exception as justified, taking into consideration the company’s ownership structure and the possibility to consider the expectations of major shareholders as early as in the preparation phase of selecting members of the Board of Directors.

Raute deviates from recommendation 9 on the number, composition and competence of the directors in that the company does not have both genders represented on the Board. When seeking new members, the Appointments Committee was unable to find any female candidates fulfilling the criteria set for the members of the Board of Directors.


EXECUTIVE BOARD

On September 30, 2013, Raute has clarified the areas of responsibility for its Executive Board and appointed two new members as of October 1, 2013.

Mika Hyysti, B.Sc. (Eng.) (48) has been appointed Group Vice President, Technology, with responsibility for technology, products and R&D. He joined Raute in 1990 and has previously held the positions of Automation Engineering Manager, R&D Manager and Technology Manager, among others.

Marko Hjelt, M.Ed. (44) has been appointed Group Vice President, Human Resources, with responsibility for human resources and competence development. He joined Raute in 2013 as Group HR Manager. Prior to joining Raute, he worked at Go On Yhtiöt as Head of the unit in Lahti and Hämeenlinna, Finland, and as a Senior Consultant for Mercuri Urval.

Raute Group’s Executive Board and the members’ areas of responsibility as of October 1, 2013:

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, Customer Care – Customer relationships and marketing, market area EMEA
Petri Lakka, Group Vice President, Technology Services – Technology services
Petri Strengell, Group Vice President, Operations – Project deliveries and operations.


ANNUAL GENERAL MEETING 2013

Raute Corporation’s Annual General Meeting was held on April 8, 2013. A stock exchange release on the decisions of the Annual General Meeting was published on April 8, 2013.


DIVIDENDS FOR THE FINANCIAL YEAR 2012

The Annual General Meeting held on April 8, 2013 decided to pay a dividend of EUR 0.50 per share for the financial year 2012. The total amount of dividends is EUR 2.0 million, series A shares accounting for EUR 1,506,798.50 and series K shares for EUR 495,580.50. The dividend payment date was April 18, 2013.


BOARD OF DIRECTORS AND BOARD COMMITTEES

At Raute Corporation’s Annual General Meeting on April 8, 2013, Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio Vice-Chairman and Mr. Joni Bask, Mr. Risto Hautamäki, Mr. Ilpo Helander and Mr. Pekka Suominen as Board members.

Based on the evaluation of independence, Chairman Erkki Pehu-Lehtonen and members Joni Bask, Risto Hautamäki, Ilpo Helander, Mika Mustakallio, and Pekka Suominen are independent of the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Ilpo Helander and Mr. Risto Hautamäki) are independent of major shareholders.

Raute Corporation’s Board of Directors has an Appointments Committee and a Working Committee. The Appointments Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Ville Korhonen, who was elected by the major shareholders from amongst their number. The Working Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Risto Hautamäki. The Audit Committee’s tasks are handled by the Board of Directors.


BUSINESS RISKS

Risks in the near term continue to be driven by the global economic situation and the uncertainty concerning the development of the financial markets. During the reporting period, there were no essential changes in the business risks described in the 2012 Board of Directors’ Report and Financial Statements. The most significant risks for Raute in the near term are related to the development of demand and the order book after the delivery of the present order book has taken place.


OUTLOOK FOR 2013

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

The development of the global economy and financial markets is still facing major uncertainty. The market situation for Raute’s customer industries is expected to remain uncertain.

However, improvement investments in the plywood industry to ensure quality and cost competitiveness and to maintain market shares are expected to be at a reasonable level in the near future, provided that the economic uncertainty does not spiral into a new crisis. Several large projects encompassing single production lines and mill-scale deliveries that are in the planning and negotiation phase are also pending.

Thanks to its strong financial and market position and the development measures carried out, Raute is well positioned to respond to demand once the markets recover.

Raute issued a profit warning on September 4, 2013, due to the weakened profit outlook. Uncertainty concerning the development of the economy has been reflected in the investment decisions of Raute’s customers and in the order volume of new project deliveries. Net sales are expected to decline from 2012. The operating profit is expected to weaken significantly from the previous year but to remain positive. The operating profit will depend on whether the new orders forecast for the end of the year are realized and on the amount of revenue generated by them for 2013.

   

TABLES SECTION OF THE INTERIM REPORT

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1.7.–30.9. 1.7.–30.9. 1.1.–30.9. 1.1.–30.9. 1.1.–31.12.
(EUR 1 000) Note 2013 2012 2013 2012 2012
             
NET SALES 3,4,5 15 610 29 886 58 762 67 359 101 273
             
Change in inventories of finished goods and work in progress   -37 -742 -283 -52 500
             
Other operating income   102 61 137 167 1 423
             
Materials and services   -7 304 -17 475 -29 189 -36 336 -55 725
Employee benefits expense 13 -5 969 -7 083 -20 030 -20 715 -28 752
Depreciation and amortization   -597 -482 -1 695 -1 478 -1 968
Other operating expenses   -2 115 -2 346 -7 387 -7 039 -11 720
Total operating expenses   -15 984 -27 386 -58 302 -65 568 -98 165
             
OPERATING PROFIT (LOSS)   -309 1 818 315 1 907 5 031
% of net sales   -2 6 1 3 5
             
Financial income   53 130 525 518 482
Financial expenses   -161 -267 -461 -612 -738
             
PROFIT (LOSS) BEFORE TAX   -417 1 680 379 1 813 4 775
% of net sales   -3 6 1 3 5
             
Income taxes   51 -451 -99 -785 -1 759
PROFIT (LOSS) FOR THE PERIOD   -366 1 229 280 1 028 3 016
% of net sales   -2 4 0 2 3
             
Other comprehensive income items:          
Exchange differences on translating foreign operations 5 7 18 38 80
Comprehensive income items for the period, net of tax 5 7 18 38 80
             
COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD -361 1 236 298 1 066 3 096
             
Profit (loss) for the period attributable to          
Equity holders of the Parent company   -366 1 229 280 1 028 3 016
             
Comprehensive profit (loss) for the period attributable to          
Equity holders of the Parent company   -361 1 236 298 1 066 3 096
             
Earnings per share for profit (loss) attributable          
to Equity holders of the Parent company, EUR          
Undiluted earnings per share   -0,09 0,31 0,07 0,26 0,75
Diluted earnings per share   -0,09 0,31 0,07 0,26 0,75
             
Shares, 1 000 pcs            
Adjusted average number of shares   4 005 4 005 4 005 4 005 4 005
Adjusted average number of shares, diluted   4 010 4 007 4 010 4 007 4 008

 

           
CONSOLIDATED BALANCE SHEET     30.9. 30.9. 31.12.
(EUR 1 000) Note   2013 2012 2012
ASSETS          
Non-current assets          
Intangible assets 8   3 892 2 493 3 204
Property, plant and equipment 8   7 966 7 976 7 892
Other financial assets     789 789 789
Non-current accounts receivables and other receivables - 225 -
Deferred tax assets     197 857 60
Total non-current assets     12 845 12 341 11 944
           
Current assets          
Inventories     6 099 6 293 7 130
Accounts receivables and other receivables 5   12 466 22 339 24 427
Income tax receivable     19 407 37
Cash and cash equivalents     17 964 25 628 19 548
Total current assets     36 548 54 667 51 143
           
TOTAL ASSETS     49 393 67 008 63 087
           
EQUITY AND LIABILITIES          
Equity attributable to Equity holders of the         
Parent company          
Share capital     8 010 8 010 8 010
Fair value reserve and other reserves     7 000 6 836 6 862
Exchange differences     120 61 103
Retained earnings     7 164 6 149 6 150
Profit (loss) for the period     280 1 028 3 016
Share of shareholders' equity that belongs to the      
owners of the Parent company     22 575 22 084 24 141
Total equity     22 575 22 084 24 141
           
Non-current liabilities          
Non-current provisions     160 70 56
Deferred tax liability     359 - 174
Non-current interest-bearing liabilities 9   4 181 8 622 5 866
Pension obligations     86 92 90
Total non-current liabilities     4 786 8 784 6 186
           
Current liabilities          
Current provisions     710 1 223 1 134
Current interest-bearing liabilities 9   4 495 4 989 5 594
Current advance payments received 5   8 557 17 320 12 776
Income tax liability     41 - -
Trade payables and other liabilities     8 230 12 607 13 255
Total current liabilities     22 032 36 140 32 759
           
Total liabilities     26 818 44 924 38 946
           
TOTAL EQUITY AND LIABILITIES     49 393 67 008 63 087
           
           
CONSOLIDATED STATEMENT OF CASH FLOWS   1.1.–30.9. 1.1.–30.9. 1.1.–31.12.
(EUR 1 000)     2013 2012 2012
           
CASH FLOW FROM OPERATING ACTIVITIES          
Proceeds from customers     59 795 64 936 90 385
Other operating income     137 167 1 423
Payments to suppliers and employees     -54 904 -59 144 -89 379
Cash flow before financial items and taxes   5 028 5 959 2 429
Interest paid from operating activities     -212 -275 -529
Dividends received from operating activities     180 118 118
Interests received from operating activities     98 258 269
Other financing items from operating activities     74 -431 -275
Income taxes paid from operating activities     -12 -823 -75
NET CASH FLOW FROM OPERATING ACTIVITIES (A) 5 157 4 807 1 938
           
CASH FLOW FROM INVESTING ACTIVITIES          
Purchase of property, plant and equipment and intangible assets -2 026 -1 749 -3 055
Proceeds from sale of property, plant and equipment and intangible assets 37 22 160
NET CASH FLOW FROM INVESTING ACTIVITIES (B)   -1 989 -1 727 -2 895
           
CASH FLOW FROM FINANCING ACTIVITIES          
Repayments of current borrowings     -1 100 - -
Repayments of non-current borrowings     -1 625 -1 970 -4 000
Dividends paid     -2 002 -1 201 -1 201
NET CASH FLOW FROM FINANCING ACTIVITIES (C)   -4 727 -3 172 -5 201
           
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) -1 559 -92 -6 159
increase (+)/decrease (-)          
           
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD* 19 548 25 674 25 674
NET CHANGE IN CASH AND CASH EQUIVALENTS   -1 559 -92 -6 159
EFFECTS OF EXCHANGE RATE CHANGES ON CASH   -25 46 33
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* 17 964 25 628 19 548
           
CASH AND CASH EQUIVALENTS IN THE BALANCE        
SHEET AT THE END OF THE PERIOD          
Cash and cash equivalents     17 964 25 628 19 548
TOTAL     17 964 25 628 19 548

 

*Cash and cash equivalents comprise assets at fair value through profit and loss, as well as cash and bank receivables, which will be due within the following three months' period.

 

  

             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY      
    Share  Invested      
  Share premium non-restricted Other Exchange Retained
(EUR 1 000) capital account equity reserve reserves differences earnings
EQUITY at Jan. 1, 2013 8 010 0 6 498 364 103 9 166
Comprehensive profit (loss) for the period          
Profit (loss) for the period - - - - - 280
Other comprehensive income items:            
   Exchange differences on translating 
   foreign operations
- - - - 18 -
Total comprehensive profit (loss) for the period 0 0 0 0 18 280
Transactions with owners            
Equity-settled share-based            
transactions - - - 138 - -
Reclassification between items - - - - - -
Dividends paid - - - - - -2 002
Total transactions with owners 0 0 0 138 0 -2 002
EQUITY at Sept. 30, 2013 8 010 0 6 498 502 120 7 444
             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)      
  To the owners of         
(EUR 1 000) the Parent company       TOTAL
EQUITY at Jan. 1, 2013 24 141       24 141
Comprehensive profit (loss) for the period          
Profit (loss) for the period         280       280
Other comprehensive income items:            
   Exchange differences on translating
   foreign operations
18         18
Total comprehensive profit (loss) for the period 298         298
Transactions with owners            
Equity-settled share-based            
transactions 138         138
Reclassification between items 0         0
Dividends paid -2 002         -2 002
Total transactions with owners -1 864                 -1 864
EQUITY at Sept. 30, 2013 22 575         22 575
             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY      
    Share  Invested      
  Share premium non-restricted Other Exchange Retained
(EUR 1 000) capital account equity reserve reserves differences earnings
EQUITY at Jan. 1, 2012 8 010 6 498 0 187 23 7 351
Comprehensive profit (loss) for the period          
Profit (loss) for the period - - - - - 1 028
Other comprehensive income items:            
   Exchange differences on translating
   foreign operations
- - - - 38 -
Total comprehensive profit (loss) for the period 0 0 0 0 38 1 028
Transactions with owners            
Equity-settled share-based            
transactions - - - 152 - -
Reclassification between items - -6 498 6 498 - - -
Dividends paid - - - - - -1 201
Total transactions with owners 0 -6 498 6 498 152 0 -1 201
EQUITY at Sept. 30, 2012 8 010 0 6 498 338 61 7 177
             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUE)      
  To the owners of         
(EUR 1 000) the Parent company       TOTAL
EQUITY at Jan. 1, 2012 22 069         22 069
Comprehensive profit (loss) for the period          
Profit (loss) for the period 1 028         1 028
Other comprehensive income items:            
   Exchange differences on translating foreign operations 38         38
Total comprehensive profit (loss) for the period 1 066         1 066
Transactions with owners            
Equity-settled share-based            
transactions 152         152
Reclassification between items 0         0
Dividends paid -1 201         -1 201
Total transactions with owners -1 049                 -1 049
EQUITY at Sept. 30, 2012 22 084         22 084

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

1. General information

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

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

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

Raute Corporation's Board of Directors has on October 30, 2013 reviewed the Interim financial report for January 1 - September 30, 2013, and approved it to be published in compliance with this release.

2. Accounting principles

Raute Corporation's Interim financial report for January 1 - September 30, 2013 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 2012.

Raute Corporation's Interim financial report for January 1 - September 30, 2013 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 September 30, 2013. The notes to the Interim financial statements also comply with Finnish accounting legislation. The presented Interim financial report figures have not been audited.

The Interim financial report has been prepared according to the same accounting principles as those applied in the Annual financial statement for 2012, with the exception of certain new or revised standards, interpretations and amendments to existing standards which the Group has applied as of January 1, 2013.The impact of the new and revised standards has been presented in the Annual financial statements for 2012. The adoption of these standards has not had an impact on the Interim financial report.

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

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

3. Segment information

Operational segment

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

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

 

  30.9.   30.9.   31.12.
Wood products technology 2013   2012   2012
Net sales 58 762   67 359   101 273
Operating profit (loss) 315   1 907   5 031
Assets 49 393   67 008   63 087
Liabilities 26 818   44 924   38 946
Capital expenditure 2 536   2 240   3 529

   

Assets of the wood products technology 30.9.   30.9.   31.12.  
segment by geographical location 2013 % 2012 % 2012 %
Finland 42 288 86 58 796 88 53 631 85
China 3 355 7 2 874 4 4 406 7
North America 2 177 4 3 627 5 3 437 5
Russia 1 288 3 1 349 2 1 257 2
South America 183 0 207 0 199 0
Other 101 0 155 0 158 0
TOTAL 49 393 100 67 008 100 63 087 100
             
Capital expenditure of the wood products 30.9.   30.9.   31.12.  
technology segment by geographical location 2013 % 2012 % 2012 %
Finland 1 836 72 2 194 98 2 980 84
China 676 27 36 2 517 15
North America 16 1 6 0 6 0
Russia 3 0 1 0 1 0
South America 1 0 1 0 22 1
Other 4 0 2 0 2 0
TOTAL 2 536 100 2 240 100 3 529 100

 

4. Net sales

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

Project deliveries and modernizations related to technology services include both product and service sales, making it impossible to give a reliable presentation of the breakdown of the Group's net sales into purely product and service sales.

Large delivery projects can temporarily increase the shares of various customers of the Group’s net sales to more than ten percent. At the end of the period, the Group had two customers (2), whose customized share of the Group's net sales temporarily exceeded ten percent. The total share of these customers was 33 percent.

 

  1.1.–30.9.   1.1.–30.9.   1.1.–31.12.  
Net sales by market area 2013 % 2012 % 2012 %
EMEA (Europe and Africa) 26 366 45 15 179 23 22 179 22
LAM (South America) 12 574 21 32 629 48 52 588 52
CIS (Russia) 10 828 18 11 212 17 14 454 14
NAM (North America) 6 720 11 5 946 9 8 469 8
APAC (Asia-Pacific) 2 275 4 2 392 4 3 583 4
TOTAL 58 762 100 67 359 100 101 273 100

Finland accounted for 5 percent (7 %) of net sales.

 

5. Long-term projects     30.9. 30.9. 31.12.
      2013 2012 2012
Net sales          
Net sales by percentage of completion     46 443 56 258 85 267
Other net sales     12 319 11 101 16 006
TOTAL     58 762 67 359 101 273
           
Project revenues entered as income from currently undelivered            
long-term projects recognized by percentage of completion      110 667 66 414 89 601
           
Amount of long-term project revenues not yet entered as income (order book) 26 042 70 515 49 040
           
Projects for which the value by percentage of completion exceeds        
advance payments invoiced           
- aggregate amount of costs incurred and recognized profits less recognized losses 64 444 46 494 64 872
- advance payments received     58 236 31 422 48 372
Gross amount due from customers     6 208 15 072 16 499
           
Projects for which advance payments invoiced exceed the value by      
percentage of completion            
- aggregate amount of costs incurred and recognized profits less recognized losses 46 223 19 994 27 890
- advance payments received     53 041 37 107 40 394
Gross amount due to customers         6 818 17 113 12 504
           
Specification of combined asset and liability items                    
Advance payments paid     357 624 1 021
Advance payments received included in inventories in the balance sheet 357 624 1 021
           
Advance payments in the balance sheet     8 557 17 320 12 776
           
6. Number of personnel, persons     30.9. 30.9. 31.12.
      2013 2012 2012
Effective, on average        512 476 480
In books, on average         519 484 488
In books, at the end of period         532 496 503
- of which personnel working abroad        149 129 132
           
7. Research and development costs     30.9. 30.9. 31.12.
      2013 2012 2012
Research and development costs for the period     1 956 1 606 2 516
Amortization of previously capitalized development costs   376 99 126
Development costs recognized as an asset in the balance sheet      -543 -534 -1 024
Research and development costs entered as expense for the period 1 789 1 171 1 618
           
8. Changes in Intangible assets and in Property,    30.9. 30.9. 31.12.
plant and equipment     2013 2012 2012
Intangible assets          
Carrying amount at the beginning of the period     14 019 12 448 12 447
Exchange rate differences       1 9 7
Additions       1 323 1 399 2 198
Reclassifications between items         -1 770 -678 -634
Carrying amount at the end of the period     13 573 13 179 14 019
           
Accumulated depreciation and amortization at the beginning of the period -10 815 -11 015 -11 014
Exchange rate differences        0 -7 -5
Accumulated depreciation and amortization of disposals and reclassifications 1 791 679 679
Depreciation and amortization for the period     -656 -343 -474
Accumulated depreciation and amortization at the end of the period -9 680 -10 686 -10 815
           
Book value of Intangible assets, at the beginning of the period   3 204 1 433 1 433
Book value of Intangible assets, at the end of the period       3 892 2 493 3 204
           
Property, plant and equipment          
Carrying amount at the beginning of the period     41 673 44 463 44 463
Exchange rate differences       -501 503 88
Additions       1 213 841 1 331
Disposals       -30 -7 -370
Reclassifications between items         -21 -3 814 -3 839
Carrying amount at the end of the period     42 334 41 986 41 673
           
Accumulated depreciation and amortization at the beginning of the period -33 782 -36 236 -36 236
Exchange rate differences        453 -450 -70
Accumulated depreciation and amortization of disposals and reclassifications - 3 812 4 019
Depreciation and amortization for the period     -1 039 -1 135 -1 494
Accumulated depreciation and amortization at the end of the period        -34 367 -34 010 -33 782
           
Book value of Property, plant and equipment,         
at the beginning of the period     7 892 8 227 8 226
Book value of Property, plant and equipment,         
at the end of the period     7 966 7 976 7 892
           
9. Interest-bearing liabilities     30.9. 30.9. 31.12.
      2013 2012 2012
Non-current interest-bearing liabilities recognized at amortized cost 4 181 8 622 5 866
Current interest-bearing liabilities     4 495 4 989 5 594
TOTAL     8 676 13 611 11 461
           
Maturities of the interest-bearing financial liabilities at September 30, 2013      
Financial liability     Current Non-current Total
Pension loans (TYEL)     1 000 - 1 000
Loans from financial institutions     3 495 4 181 7 676
Total     4 495 4 181 8 676
           
10. Pledged assets and contingent liabilities     30.9. 30.9. 31.12.
      2013 2012 2012
On behalf of the Parent company          
Business mortgages     2 700 - -
           
Loans from financial institutions     7 431 10 512 9 117
Business mortgages     7 375 6 700 6 700
           
Pension loans (TYEL)     1 000 3 000 2 000
Business mortgages     300 900 600
Credit insurance agreements     700 2 100 1 400
           
Other liabilities     - 100 100
Real estate mortgages     - 101 101
           
Mortgage agreements on behalf of subsidiaries          
Loans from financial institutions     245 246 244
Other obligations     65 - -
Business mortgages     310 200 244
           
Commercial bank guarantees on behalf of the Parent company and subsidiaries     3 722 37 975 39 600
           
Other own obligations          
Rental liabilities maturing within one year     841 861 868
Rental liabilities maturing in one to five years     2 413 2 653 2 682
Rental liabilities maturing more than five years     268 670 519
Total     3 522 4 184 4 069
           

11. Related party transactions

No loans are granted to the company's management. On September 30, 2013, the Parent Company Raute Corporation had loan receivables from its subsidiary Raute Service LLC EUR 355 thousand (EUR 355 thousand) and from Raute Canada Ltd. EUR 884 thousand (EUR 1 774 thousand).

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

 

12. Derivatives     30.9. 30.9. 31.12.
      2013 2012 2012
           
Nominal values of forward contracts in foreign currency           
Economic hedging          
- Related to financing     1 386 1 802 2 093
- Related to the hedging of net sales     4 423 4 844 1 763
           
Fair values of forward contracts in foreign currency         
Economic hedging          
- Related to financing     9 -21 -8
- Related to the hedging of net sales     -12 0 18
           
Interest rate and currency swap agreements        
- Nominal value     3 056 5 298 4 117
- Fair value     -20 28 -4

  

 13. Share-based payments

The fair value of the options granted according to the 2010 stock option plan is recognized as an expense in the income statement during the earning period of the options. An expense of EUR 138 thousand (EUR 152 thousand) was recognized for the options to the income statement during the period.

14. Dividend distribution

Raute Corporations' Annual General Meeting held on April 8, 2013, decided, according to the Board of Directors' proposal, to distribute a dividend of EUR 0,50 per share to be paid for series A and K shares, a total of EUR 2 002 thousand. The dividend payment date was April 18, 2013.

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

At the end of the reporting period September 30, 2013, the fair value of the financial assets categorized at fair value on hierarchy level 3 was EUR 789 thousand. The methods of fair value determination correspond the valuation principles presented in the Annual financial statements for 2012. There were no transfers between the hierarchy levels 1 and 2 during the reporting period.

 

16. Exchange rates used          
      1.1.–30.9. 1.1.–30.9. 1.1.–31.12.
Income statement, euros     2013 2012 2012
CNY (Chinese juan)     8,1240 8,1103 8,1096
RUB (Russian rouble)     41,6592 39,7964 39,9238
CAD (Canadian dollar)     1,3485 1,2845 1,2848
USD (US dollar)     1,3172 1,2817 1,2856
SGD (Singapore dollar)     1,6487 1,6129 1,6062
CLP (Chilean peso)     643,0765 626,5112 624,7032
           
      30.9. 30.9. 31.12.
Balance sheet, euros     2013 2012 2012
CNY (Chinese juan)     8,1690 8,1272 8,1809
RUB (Russian rouble)     43,8240 40,1400 40,3295
CAD (Canadian dollar)     1,3912 1,2684 1,3137
USD (US dollar)     1,3505 1,2930 1,3194
SGD (Singapore dollar)     1,6961 1,5848 1,6111
CLP (Chilean peso)     672,7827 608,9378 625,1146
           

  

           
FINANCIAL DEVELOPMENT     30.9. 30.9. 31.12.
      2013 2012 2012
Change in net sales, %     -12,8 13,7 36,3
Exported portion of net sales, %     94,8 92,9 93,9
Return on investment (ROI), %     3,1 8,8 15,0
Return on equity, ROE, %     1,6 6,2 13,1
Interest-bearing net liabilities, EUR million     -9,3 -12,0 -8,1
Gearing, %     -41,1 -54,4 -33,5
Equity ratio, %     55,3 44,4 48,0
           
Gross capital expenditure, EUR million     2,5 2,2 3,5
% of net sales     4,3 3,3 3,5
           
Research and development costs, EUR million     2,0 1,6 2,5
% of net sales     3,3 2,4 2,5
           
Order book, EUR million     31 72 50
Order intake, EUR million     41 104 116
           
           
SHARE-RELATED DATA     30.9. 30.9. 31.12.
      2013 2012 2012
Earnings per share, (EPS), undiluted, EUR     0,07 0,26 0,75
Earnings per share, (EPS), diluted, EUR     0,07 0,26 0,75
Equity to share, EUR     5,64 5,51 6,03
Dividend per share, EUR     - - 0,50
Dividend per profit, %     - - 66,40
Effective dividend return, %     - - 5,60
           
Development in share price (series A shares)        
Lowest share price for the period, EUR     7,99 6,18 6,18
Highest share price for the period, EUR     9,33 9,24 9,24
Average share price for the period, EUR     8,28 8,28 8,22
Share price at the end of the period, EUR     8,39 7,32 9,00
           
Market value of capital stock          
- Series K shares, EUR million**     8,3 7,3 8,9
- Series A shares, EUR million     25,3 22,1 27,1
Total, EUR million     33,6 29,3 36,0
**Series K shares valued at the value of series A shares.            
           
Trading of the company's shares (series A shares)        
Trading of shares, pcs     381 117 232 047 302 096
Trading of shares, EUR million     3,3 1,9 2,4
           
Number of shares          
- Series K shares, ordinary shares (20 votes, share)   991 161 991 161 991 161
- Series A shares (1 vote/share)     3 013 597 3 013 597 3 013 597
Total     4 004 758 4 004 758 4 004 758
           
Number of shares, weighted average,  1000 pcs     4 005 4 005 4 005
Number of shares, diluted, 1 000 pcs     4 010 4 006 4 008
           
Number of shareholders     1 878 1 652 1 682

  

             
DEVELOPMENT OF Q 4 Q 1 Q 2 Q 3 Rolling Rolling
QUARTERLY RESULTS 2012 2013 2013 2013 1.10.2012 1.10.2011
(EUR 1 000)        
          30.9.2013 30.9.2012
             
NET SALES 33 914 23 386 19 766 15 610 92 676 82 293
             
Change in inventories of finished            
goods and work in progress 551 364 -610 -37 269 -1 277
             
Other operating income 1 256 20 15 102 1 393 190
             
Materials and services -19 388 -12 979 -8 906 -7 304 -48 578 -41 897
Employee benefits expense -8 038 -6 871 -7 190 -5 969 -28 068 -27 152
Depreciation and amortization -491 -479 -619 -597 -2 186 -1 996
Other operating expenses -4 680 -2 532 -2 740 -2 115 -12 067 -9 376
Total operating expenses -32 597 -22 862 -19 456 -15 984 -90 899 -80 421
             
OPERATING PROFIT (LOSS) 3 125 909 -286 -309 3 439 786
% of net sales 9 4 -1 -2 4 1
             
Financial income -37 400 72 53 488 458
Financial expenses -126 -224 -75 -161 -586 -622
             
PROFIT (LOSS) BEFORE TAX 2 962 1 085 -289 -417 3 341 622
% of net sales 9 5 -1 -3 4 1
             
Income taxes -973 -246 96 51 -1 073 -615
             
PROFIT (LOSS) FOR THE PERIOD 1 989 839 -193 -366 2 268 8
% of net sales 6 4 -1 -2 2 0
             
Attributable to             
Equity holders of the Parent company 1 989 839 -193 -366 2 268 8
             
Earnings per share, EUR            
Undiluted earnings per share 0,50 0,21 -0,05 -0,09 0,57 0,00
Diluted earnings per share 0,50 0,21 -0,05 -0,09 0,57 0,00
             
Shares, 1 000 pcs            
Adjusted average number of shares 4 005 4 005 4 005 4 005 4 005 4 005
Adjusted average number of shares,            
diluted 4 008 4 017 4 013 4 010 4 010 4 007
             

  

20 LARGEST SHAREHOLDERS AT SEPTEMBER 30, 2013        
  Number of series Number series Total number % of total Total number % of voting
By number of shares  K shares A shares of shares of shares of votes rights
1. Sundholm Göran     - 624 398 624 398 15,6 624 398 2,7
2. Mandatum Life Unit-Linked     - 181 900 181 900 4,5 181 900 0,8
3. Mustakallio Kari Pauli 60 480 56 093 116 573 2,9 1 265 693 5,5
4. Laakkonen Mikko     - 115 349 115 349 2,9 115 349 0,5
5. Suominen Pekka 48 000 62 429 110 429 2,8 1 022 429 4,5
6. Suominen Tiina Sini-Maria 48 000 62 316 110 316 2,8 1 022 316 4,5
7. Siivonen Osku Pekka 50 640 53 539 104 179 2,6 1 066 339 4,7
8. Kirmo Kaisa Marketta 50 280 41 826 92 106 2,3 1 047 426 4,6
9. Mustakallio Mika Tapani 57 580 29 270 86 850 2,2 1 180 870 5,2
10. Keskiaho Kaija Leena 33 600 51 116 84 716 2,1 723 116 3,2
11. Särkijärvi Anna Riitta 60 480 22 009 82 489 2,1 1 231 609 5,4
12. Relander Harald     - 75 000 75 000 1,9 75 000 0,3
13. Sijoitusrahasto Alfred Berg Small Cap Finland     - 74 596 74 596 1,9 74 596 0,3
14. Mustakallio Ulla Sinikka 53 240 9 862 63 102 1,6 1 074 662 4,7
15. Mustakallio Marja Helena 43 240 16 047 59 287 1,5 880 847 3,9
16. Särkijärvi Timo 12 000 43 256 55 256 1,4 283 256 1,2
17. Särkijärvi-Martinez Anu Riitta 12 000 43 256 55 256 1,4 283 256 1,2
18. Suominen Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
19. Mustakallio Kai Henrik 47 420 4 594 52 014 1,3 952 994 4,2
20. Keskinäinen työeläkevakuutusyhtiö Varma     - 51 950 51 950 1,3 51 950 0,2
Total 601 920 1 646 770 2 248 690 56,2 13 685 170 59,9
             
  Number of series Number series Total number % of total Total number % of voting
By number of votes  K shares A shares of shares of shares of votes rights
1. Mustakallio Kari Pauli 60 480 56 093 116 573 2,9 1 265 693 5,5
2. Särkijärvi Anna Riitta 60 480 22 009 82 489 2,1 1 231 609 5,4
3. Mustakallio Mika Tapani 57 580 29 270 86 850 2,2 1 180 870 5,2
4. Mustakallio Ulla Sinikka 53 240 9 862 63 102 1,6 1 074 662 4,7
5. Siivonen Osku Pekka 50 640 53 539 104 179 2,6 1 066 339 4,7
6. Kirmo Kaisa Marketta 50 280 41 826 92 106 2,3 1 047 426 4,6
7. Suominen Pekka 48 000 62 429 110 429 2,8 1 022 429 4,5
8. Suominen Tiina Sini-Maria 48 000 62 316 110 316 2,8 1 022 316 4,5
9. Suominen Jussi 48 000     - 48 000 1,2 960 000 4,2
10. Mustakallio Kai Henrik 47 420 4 594 52 014 1,3 952 994 4,2
11. Mustakallio Marja Helena 43 240 16 047 59 287 1,5 880 847 3,9
12. Mustakallio Risto Knut kuolinpesä 42 240     - 42 240 1,1 844 800 3,7
13. Keskiaho Kaija Leena 33 600 51 116 84 716 2,1 723 116 3,2
14. Sundholm Göran     - 624 398 624 398 15,6 624 398 2,7
15. Kirmo Lasse 30 000 4 683 34 683 0,9 604 683 2,6
16. Keskiaho Juha-Pekka 27 880 7 491 35 371 0,9 565 091 2,5
17. Suominen Jukka Matias 24 960 27 964 52 924 1,3 527 164 2,3
18. Keskiaho Marjaana 24 780 21 500 46 280 1,2 517 100 2,3
19. Kultanen Leea Annikka 22 405 8 031 30 436 0,8 456 131 2,0
20. Molander Sole 20 160     - 20 160 0,5 403 200 1,8
Total 793 385 1 103 168 1 896 553 47,4 16 970 868 74,3

  

MANAGEMENTS' 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 holding at Sept. 30, 2013            
The Board of Directors, The Group's President and CEO and Executive Board 122 880 109 899 232 779 5,8 2 567 499 11,2
Public insiders’ holding at Sept. 30, 2013 122 880 109 899 232 779 5,8 2 567 499 11,2
               
The figures include the holdings of their own, minor children and control entities.      
               
Nominee-registered shares at Sept. 30, 2013     - 125 360 125 360 3,1 125 360 0,5

 

RAUTE CORPORATION
Board of Directors


BRIEFING ON OCTOBER 30, 2013 AT 2 P.M.:
A briefing will be held for analysts, investors and the media on Wednesday October 30, 2013 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.

FINANCIAL RELEASES IN 2014:
Raute Corporation will publish a release of its financial statements for 2013 on Thursday February 13, 2014.

Raute’s interim reports will be published as follows:
- January - March on Tuesday April 29, 2014
- January - June on Tuesday July 29, 2014
- January - September on Wednesday October 29, 2014.

Raute Corporation’s Annual general meeting is scheduled to be held in Lahti on Monday March 31, 2014.

FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560, mobile +358 400 814 148
Ms. Arja Hakala, CFO, Raute Corporation, +358 3 829 3293, mobile phone +358 400 710 387

DISTRIBUTION: NASDAQ OMX Helsinki Ltd, main media, www.raute.com  

RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the entire production process. As a supplier of mill-scale projects Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Kajaani, Finland. Raute’s net sales in 2012 were EUR 101.3 million. The Group’s headcount at the end of 2012 was 503.

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