Raute Corporation - Interim report January 1 - September 30, 2014

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

RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2014

- The Group’s net sales, EUR 60.0 million (MEUR 58.8), increased 2% on the comparison period. The order intake was EUR 89 million (MEUR 41).
- The operating profit was EUR -1.0 million (MEUR +0.3). The profit before taxes was EUR -1.0 million (MEUR +0.4).
- Earnings per share were EUR -0.21 (EUR +0.07).
- Net sales for the third quarter were EUR 24.7 million and operating profit was EUR 0.3 million positive. The order intake was EUR 22 million. The order book at the end of the reporting period amounted to EUR 56 million.
- The outlook for financial performance remains unchanged. Raute’s net sales are expected to grow in 2014 and operating profit to improve from 2013.

TAPANI KIISKI, PRESIDENT AND CEO: EXPECTED RESULTS FOR THE FULL YEAR ARE BASED ON A STRONG ORDER BOOK AND RAUTE’S PERFORMANCE TRACK RECORD

Our order intake in the third quarter was at a reasonable level, considering the general economic situation. We received a follow-up order to the transaction announced in June regarding the delivery of machinery for a new softwood plywood mill in Poland, increasing the order’s total value to EUR 15 million. In technology services, spare parts sales increased nearly 60 percent over the third quarter of 2013. This is an indication of the good utilization levels of our customers. Investment needs have been accumulating, and there are several major projects in the planning phase. I believe that despite the uncertain economic situation, our order intake will remain at least at a reasonable level in the coming months.

This year, an even larger proportion of the result than I had anticipated will be generated during the final quarter. The approval of final production line lines for two mill-scale deliveries that are very near completion were delayed, which resulted in net sales being carried forward to the final quarter of the year. In spite of the raw material tests carried out during the selling process, the behavior of new wood species in our industry-proven processes caused some additional costs to us. The required equipment alterations have also generated additional costs, the scale of which we were not prepared for. A pilot-like first-time delivery project, for which we developed new technology and which we believe holds potential for major new business in the future, exceeded the budgeted costs in the third quarter and has had an impact on our profit.

We do have positive news, too. The launch of our Dragon peeling lathe range in China and other Asian markets has been successful with seven machines already in operation. We have also managed to steer our North American operations to a clearly profitable growth path following the recession.

We are lagging behind our targets and forecasts for this year with regard to the growth in net sales and especially operating profit. Owing to our strong order book and our organization’s track record, I am sure that our net sales and operating profit will increase this year. However, it requires managing our operations successfully. I am confident that our competence and hunger for success will see us through these challenges.

THIRD QUARTER OF 2014

Order intake and order book

Order intake during the third quarter was at a good level, totaling EUR 22 million (MEUR 7). Technology services accounted for EUR 7 million (MEUR 5) of the order intake.

The most significant order during the third quarter was a follow-up to an order placed by Paged Sklejka S.A. that was announced in June. The equipment to be delivered is destined for a new softwood plywood mill being built beside the company’s plywood mill in Morag, Poland.

The order book declined during the third quarter by EUR 3 million, amounting to EUR 56 million at the end of the period (MEUR 31).

Net sales

Third-quarter net sales amounted to EUR 24.7 million (MEUR 15.6). Net sales increased 21 percent from the second quarter as a result of the scheduling of the order book.

Net sales for the third quarter remained lower than expected due to the full revenue recognition of two mill-scale projects being postponed.

Technology services accounted for 43 percent of the Group’s total net sales (57%).

Result and profitability

Operating profit for the third quarter was EUR 0.3 million positive (MEUR 0.3 negative) and accounted for 1 percent (-2%) of net sales. The profit was EUR 0.3 million positive (MEUR 0.4 negative). Earnings per share were EUR 0.06 (EUR -0.09).

Profitability remained low with respect to net sales. This was due to unforeseeable additional costs relating to a delivery where proven technology is applied to a new raw material, and to budgeted costs being exceeded in a pilot project that includes new technology.

RAUTE CORPORATION – INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2014

BUSINESS ENVIRONMENT

Market situation in customer industries

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

The situation in the global economy and the financial markets during 2014 has not changed considerably with respect to Raute or Raute’s customer base. Uncertainty and tension persisted, and the situation has even taken a turn for the worse, with the exception of North-America. In North America, the upswing in the construction market has continued, as it has in some parts of Europe. Russia’s economic situation remained weak, which has been reflected in, for example, low investment volumes and the weakening ruble, even before the crisis in Ukraine, and has led to downgrading of the country’s credit rating. The uncertainty caused by the prolonged crisis in Ukraine has weakened the situation further.

Despite the unsettled market situation, the production volumes and capacity utilization rates of Raute’s customers have mainly been at a good level, and their operations have been profitable. As a result of the above-mentioned uncertainty, however, the order books are often short, which means the situation is not conducive to realizing significant investments. A sign of this has been the slow progress of major projects that are under negotiation.

Demand for wood products technology and technology services

Raute’s clients have several large-scale projects in the planning phase, none of which came to fruition as actual investment decisions during the third quarter. Several single production line and modernization projects also have not reached order status.

The uncertainty caused by the crisis in Ukraine has obviously caused investment decisions to be postponed in the Russian markets, although preparations for many investments have been actively continued. It is difficult to estimate when the situation in the Russian markets will normalize, but it is not expected to happen anytime soon. In other market areas, projects are being planned as usual, in accordance with the economic situation.

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

ORDER INTAKE AND ORDER BOOK

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

During the reporting period, order intake, EUR 89 million (MEUR 41), was more than double that of the comparison period. The third quarter accounted for EUR 22 million of the order intake.

Of new orders, 67 percent came from Europe (31%), 15 percent from Russia (26%), 10 percent from North America (24%), 6 percent from South America (12%) and 2 percent from Asia-Pacific (6%). The strong fluctuations in the distribution of new orders between the various market areas are typical for project-focused business.

Among the new orders were two projects aimed at boosting production capacity in Poland. A total of EUR 15 million worth of equipment will be delivered for a new softwood plywood mill being built beside the company Paged’s plywood mill in Morag, Poland. The orders for these two projects were received in the second and third quarters. An order worth roughly EUR 23 million for machinery and equipment required for producing laminated veneer lumber (LVL) will be delivered to the German company Steico’s future LVL mill in Czarna Woda, Poland.

Order intake in technology services amounted to EUR 29 million (MEUR 24), an increase of 19 percent on the comparison period. Growth in modernizations equaled 27 percent and in spare parts 16 percent.

The order book grew during the reporting period by EUR 28 million, amounting to EUR 56 million at the end of the period (MEUR 31).

COMPETITIVE POSITION

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

NET SALES

Net sales for the reporting period totaled EUR 60.0 million (MEUR 58.8), up 2 percent on the comparison period.

Of the total net sales for the reporting period, Europe accounted for 45 percent (45%), Russia for 20 percent (18%), North America for 17 percent (11%), South America for 15 percent (21%), and Asia-Pacific for 3 percent (4%).

Technology services accounted for 44 percent (40%) and EUR 26.7 million (MEUR 23.2) of the Group’s total net sales during the period. Technology services recorded net sales growth of 15 percent on the comparison period, mainly due to modernizations.

RESULT AND PROFITABILITY

Operating profit for the reporting period was EUR 1.0 million negative (MEUR 0.3 positive) and accounted for -2 percent of net sales (+1%). The negative operating profit was due to unforeseen additional costs relating to a delivery where proven technology is applied to a new raw material, and to budgeted costs exceeding the estimate in a pilot project that includes new technology.

The profit before tax for the reporting period was EUR 1.0 million negative (MEUR 0.4 positive). The profit for the reporting period was EUR 0.8 million negative (MEUR 0.3 positive). Earnings per share (undiluted) were EUR -0.21 (EUR +0.07).

CASH FLOW AND BALANCE SHEET

The Group’s financial position remained good. At the end of the reporting period, gearing was -29 percent (-41%) and the equity ratio 55 percent (55%). 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 10.5 million (MEUR 18.0) at the end of the reporting period. Operating cash flow was EUR 2.0 million positive (MEUR 5.2 positive). Cash flow from investment activities totaled EUR 0.7 million negative (MEUR 2.0 negative). Cash flow from financing activities was EUR 3.6 million negative (MEUR 4.7 negative), including dividend payments and distribution of funds from non-restricted equity of EUR 2.0 million and debt repayments of EUR 1.6 million.

Interest-bearing liabilities amounted to EUR 4.3 million (MEUR 8.7) at the end of the reporting period.

The parent company Raute Corporation has a EUR 10 million commercial paper program, which allows the company to issue commercial papers maturing in less than one year.

The parent company Raute Corporation is prepared for future working capital needs and has long-term credit facility agreements with three Nordic banks totaling EUR 23.0 million. The main covenants for the credit facility are an equity ratio of >30% and gearing of <100%. Of the credit facility, EUR 17 million remained unused at the end of the reporting period.

EVENTS DURING THE REPORTING PERIOD

Raute Corporation published stock exchange releases on the following events:

February 12, 2014 Long-term share-based incentive plan for Raute’s upper management for the years 2014–2018
February 25, 2014  Share subscription with Raute Corporation’s 2010 A stock options
March 31, 2014 Decisions by Raute’s Annual General Meeting 2014.
June 6, 2014 Raute received an order valued at more than EUR 8 million from Poland
June 26, 2014 Raute received an order valued at EUR 23 million from engineered wood products company Steico.

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 1.2 million (MEUR 2.0), representing 2.0 percent of net sales (3.3%).

Capital expenditure during the reporting period totaled EUR 1.1 million (MEUR 2.5) and accounted for 1.9 percent (4.3%) of net sales.

PERSONNEL

At the end of the reporting period, the Group’s personnel numbered 568 (532). The share of employees in Group companies outside Finland has increased to 32 percent (28%). The number of personnel has increased mainly in China to meet the needs of the heavy workload in the final quarter of 2014.

Converted to full-time employees (“effective headcount”), the average number of employees was 517 (512) during the reporting period. These numbers are affected by the adjustment measures carried out during the first quarter in the Nastola and Jyväskylä units in Finland, and the outsourcing of the Jyväskylä unit’s engineering functions through a business transaction at the beginning of April.

SHARES

The number of Raute Corporation’s shares at the end of the reporting period totaled 4,006,828, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,015,667 series A shares (1 vote/share). The shares have a nominal value of two euros. Series K and A shares confer equal rights to dividends and company assets.

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

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

The company’s market capitalization at the end of the reporting period was EUR 31.9 million (MEUR 33.6), with series K shares valued at the closing price of series A shares on September 30, 2014, that is EUR 7.97 (EUR 8.39).

STOCK OPTION SCHEME 2010

At the end of the reporting period, the Group’s key personnel held altogether 69,530 of the company’s 2010 A series stock options, 80,000 series B stock options and 75,000 series C stock options. The subscription period for series A stock options began on March 1, 2013 and for series B stock options on March 1, 2014. During the period under review, a total of 10,470 new series A shares were subscribed for under the series A stock option rights. 2,070 of these have been entered in the Trade Register. More detailed information concerning the stock option system is available on the company’s website.

SHAREHOLDERS

The number of shareholders totaled 1,915 at the beginning of the year and 1,958 at the end of the reporting period. Series K shares were held by 47 private individuals (49) at the end of the reporting period. Nominee-registered shares accounted for 3.2 percent (3.1%) 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 234,679 company shares, equaling 5.9 percent (5.8%) of the company shares and 11.2 percent (11.2%) of the votes at the end of the reporting period.

CORPORATE GOVERNANCE

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

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

ANNUAL GENERAL MEETING 2014

Raute Corporation’s Annual General Meeting was held on March 31, 2014. A stock exchange release on the decisions of the Annual General Meeting was published on March 31, 2014.

DISTRIBUTION OF PROFITS FOR THE 2013 FINANCIAL YEAR

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

The Annual General Meeting on March 31, 2014 resolved, on the basis of the balance sheet adopted in respect of the financial year ended on 31 December 2013, on the repayment of assets from the invested non-restricted equity reserve in the amount of EUR 0.30 per share, i.e. a total of EUR 1,202,048.40 and the remainder, EUR 5,296,293.40, to be retained in equity. The date of repayment of equity was April 10, 2014.

BOARD OF DIRECTORS AND BOARD COMMITTEES

At the AGM on March 31, 2014 Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio Vice-Chair, and Mr. Joni Bask, Mr. Risto Hautamäki, Ms. Päivi Leiwo, and Mr. Pekka Suominen were elected Board members. The Board of Directors’ term of office will continue until the 2015 Annual General Meeting.

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

AUDITOR

At the Annual General Meeting on March 31, 2014, the authorized public accounting company PricewaterhouseCoopers was chosen as auditor, with Authorized Public Accountant Janne Rajalahti as the principal auditor.

BUSINESS RISKS

Risks in the near term are driven by the global economic situation and the uncertainty concerning the development of the financial markets. During the reporting period, there were no essential changes in the business risks described in the 2013 Board of Directors’ Report and Financial Statements.

The most significant risks for Raute in the near term are related to the development of net sales and profitability. The heavy workload at the end of the year in all of Raute’s manufacturing units as a result of the scheduling of the order book will increase cost, scheduling and quality risks. The continuing crisis in Ukraine and the downgrading of Russia’s credit rating have contributed to the uncertainty surrounding the realization of new investments in Russia in the near future.

OUTLOOK FOR 2014

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

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

TABLES SECTION OF THE INTERIM REPORT

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

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 establishedin accordance with Finnish law (Business ID FI01490726). Its series A shares are quoted on NASDAQ OMXHelsinki 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 29, 2014 reviewed the Interim financial report for January 1 -September 30, 2014, 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, 2014 has been prepared in accordance with standard IAS 34 Interim Financial Reporting. The Interim financial report does not contain full notes and other information presented in the financial statements, and therefore the Interim financial report should be read in conjunction with the Financial statements published for 2013.

Raute Corporation's Interim financial report for January 1 - September 30, 2014 has been prepared in accordance with the International Financial Reporting Standards, IFRS, accepted for application in the EU. Preparations have complied with the IAS and IFRS standards, as well as SIC and IFRIC interpretations, effective on September 30, 2014. The notes to the Interim financial statements also comply with Finnish accounting legislation. The presented Interim financial report figures have not been audited.

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

All of the figures presented in the Interim financial report are in thousand euro, unless otherwise stated. Due to the rounding of the figures in the 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.

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 one customer (2), whose customized share of the Group's net sales temporarily was 13 percent. 

11. Related party transactions

No loans are granted to the company's management. On September 30, 2014, the Parent Company Raute Corporation had loan receivables from its subsidiary Raute Service LLC EUR 355 thousand (EUR 355 thousand) and Raute Shanghai Machinery Co., Ltd EUR 550 thousand.

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

13. Share-based payments

An expense of EUR 81 thousand (EUR 138 thousand) was recognized for the options to the income statement during the interim period. During the period a total of 10 thousand series A shares were subscribed for under the stock options rights. 2 thousand of these shares have been entered in the Trade Register. The share capital of Raute Corporation, as a result of the share subscription made with stock options, increased EUR 4 thousand.

14. Dividend distribution and repayment of equity

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

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

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

At the end of the reporting period September 30, 2014, the fair value of the financial assets categorized at fair value on hierarchy level 3 was EUR 500 thousand. The methods of fair value determination correspond the valuation principles presented in the Annual financial statements for 2013. There were no transfers between the hierarchy levels 1 and 2 during the reporting period.

RAUTE CORPORATION
Board of Directors

PRESS CONFERENCE ON OCTOBER 29, 2014 AT 2 P.M.:
A briefing will be organized for analysts, investors and the media on October 29, 2014 at 2 p.m. at Scandic Simonkenttä Hotel, Roba cabinet, Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Ms. Arja Hakala, CFO.

FINANCIAL RELEASES IN 2015:
Raute Corporation will publish a release on its financial statements for 2014 on Thursday February 12, 2015.
   
Raute’s interim reports will be published as follows:
- January–March on Friday, April 24, 2015
- January–June on Tuesday, July 28, 2015
- January–September on Friday, October 30, 2015

Raute Corporation’s Annual General Meeting is scheduled to be held in Lahti on Tuesday, March 24, 2015.

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

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

RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the entire production process. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Kajaani, Finland. Raute’s net sales in 2013 were EUR 83.3 million. The Group’s headcount at the end of 2013 was 534.

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