2013-02-12 08:05:01 CET
2013-02-12 08:05:18 CET
REGULATED INFORMATION
Raute - Financial Statement Release
Raute Corporation - Financial statements January 1 - December 31, 2012
Nastola, Finland, 2013-02-12 08:05 CET (GLOBE NEWSWIRE) -- RAUTE CORPORATION
FINANCIAL STATEMENT RELEASE FEBRUARY 12, 2013 AT 9:05 A.M.
RAUTE CORPORATION -- FINANCIAL STATEMENTS JANUARY 1-DECEMBER 31, 2012
− The Group's net sales, EUR 101.3 million (MEUR 74.3), increased 36% on the
comparison year. Order intake was EUR 116 million (MEUR 77).
− Operating profit was EUR +5.0 million (MEUR -0.7). The result before tax was
EUR +4.8 million (MEUR -1.1).
− Undiluted and diluted earnings per share were EUR +0.75 (EUR -0.27).
− Fourth quarter net sales were EUR 33.9 million and operating profit was EUR
+3.1 million. Order intake was EUR 12 million and the order book stood at EUR
50 million (MEUR 36) at the end of the reporting period.
− Board of Directors will propose to the Annual General Meeting that a dividend
of EUR 0.50 per share be paid for the financial year 2012.
− Raute's net sales and operating profit for 2013 are expected to remain at the
same level as in 2012.
TAPANI KIISKI, PRESIDENT AND CEO: 2012 IS SOLID PROOF OF RAUTE'S DELIVERY
CAPABILITIES
In 2012, we operated in a highly uncertain market environment. The insecurity
related to the global economic and money-market trend was upheld by the risks
associated with the growing debts of certain European countries and by the
fears of a slowdown in economic growth in Asian countries. For Raute's
customers, the uncertain market situation persisted in several market areas.
Despite the general market situation in the wood panel industry, 2012 was a
clear improvement on the past few years for Raute. We kicked off the year with
a satisfactory order book. In February, we received new orders worth more than
EUR 50 million for machinery and equipment for the reconstruction of a plywood
mill that had burned down in Chile in early January. In July, we received a
significant machinery order valued at EUR 14 million for an LVL mill in
Germany. In technology services, growth slowed down following the robust growth
of the previous year. This was partly due to the allocation of both customers'
and our own resources to large new construction projects.
Our biggest challenge in 2012 was an order book with a clear emphasis on the
second part of the year. After a fairly modest EUR 15 million in the first
quarter, our net sales gained momentum towards the end of the year, achieving a
record high of nearly EUR 34 million in the final quarter. During the summer
and the final part of the year, our personnel displayed their commitment to our
customer promise involving delivery times. Of all of the working hours during
the year, around one fifth were generated by our partners. Profitability
improved towards the end of the year, hand in hand with growing net sales. We
were thus able to prove that our ability to deliver has remained good despite
the recession.
Heading into 2013, we still face a rather uncertain market situation. The
economic outlook is not expected to improve in the near future. In this
situation, construction activity, demand for our customers' products and thus
our customers' need to make capacity-increasing investments will remain low.
Various projects are, however, in the planning and preparation phase, but the
uncertain money-market and demand situation makes the implementation of new
investments and the timing of their start-up uncertain. My strongest
expectations this year are focused on the emerging markets in Russia and Asia.
The outlook for North America has also improved from the extremely low level of
the previous few years, and new projects are being planned in Europe. We
believe that demand for technology services will take off on a growth
trajectory.
I believe that Raute can look forward to strong competitiveness once our
customers' faith in the future is restored and they begin to implement their
planned investments. The escalation of the eurozone debt crisis into a
full-scale recession still presents a potential threat to the positive
development. A strong initial order book provides Raute with a good foundation
for achieving the same level of net sales and operating profit this year as in
2012.
We will continue to focus our efforts on the implementation of our strategy and
on development projects. Our development projects will put us in a better
position to meet the challenges of the shifting markets and allow us to take
advantage of the opportunities presented by the improving markets once the
global economy regains its stability.
I would like to send out a heartfelt thank you to Raute's customers for their
invaluable cooperation, to our personnel for their outstanding work in the face
of ever-changing challenges, to our shareholders for their continued confidence
in us, and to all our other partners for their role in furthering Raute's
development.
FOURTH QUARTER OF 2012
Order intake and order book
The order intake in the fourth quarter remained at a low level, amounting to
EUR 12 million (MEUR 31). Technology services accounted for EUR 8 million (MEUR
8) of the order intake.
The order book weakened during the fourth quarter by EUR 22 million, amounting
to EUR 50 million at the end of 2012 (MEUR 36).
Net sales
Fourth-quarter net sales were in line with the timing of the order book,
equaling a record EUR 33.9 million (MEUR 14.9). Technology services accounted
for 28 percent (36%) of net sales.
Result and profitability
Operating profit for the fourth quarter was EUR 3.1 million positive (MEUR 1.1
negative) and accounted for 9 percent (-8%) of net sales. The result was EUR
2.0 million positive (MEUR 1.0 negative), and earnings per share were EUR +0.50
(EUR -0.25).
RAUTE CORPORATION - FINANCIAL STATEMENTS JANUARY 1-DECEMBER 31, 2012
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.
In 2012, the insecurity related to the development of the global economy and
money markets was maintained by the threats connected to the indebtness of
certain European countries and fears of a slowdown of economic growth in Asian
countries. For Raute's customer industries, the market situation continued to
be uncertain in several market areas.
Demand for wood products technology and technology services
In 2012, two significant new projects were launched among Raute's customers. A
plywood mill that was destroyed in a fire in Chile at the beginning of January
will be reconstructed and a new LVL mill, which will use beech as its raw
material, will be constructed in Germany. Raute will be supplying the main
machinery for both projects. The plywood and LVL industries' upgrade
investments to ensure quality and cost competitiveness and to maintain market
shares remained at a low level.
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.
The demand for maintenance and spare parts services remained at a good level
throughout the year. This bears testimony to the fact that the utilization
rates of Raute's customers' production facilities were mostly at a good level.
Demand for technology services developed positively in North America, which is
suffering from a difficult market situation.
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.
The order intake amounted to EUR 116 million (MEUR 77) during 2012. The order
intake increased by 51 percent on the previous year. 48 percent of the new
orders came from South America (26%), 31 percent from Europe (26%), 12 percent
from Russia (38%), 6 percent from North America (8%) and 3 percent from
Asia-Pacific (2%). The strong fluctuation in the distribution of new orders
between the various market areas is typical for project business.
The order intake for project deliveries stood at EUR 89 million (MEUR 50) and
increased on the previous year by 77 percent. The most significant transactions
during 2012 consisted of an order that came into effect in February, amounting
to more than EUR 50 million, for machinery and equipment for a plywood mill in
Chile, and an order that came into effect in July, totaling EUR 14 million, for
machinery for an LVL mill in Germany.
The order intake for technology services stood at EUR 27 million (MEUR 27). A
decline in modernization projects, especially in Russia, led the order intake
to remain on the previous year's level. Maintenance and spare parts services
increased by 10 percent on the previous year.
COMPETITIVE POSITION
Raute's competitive position is good. Raute's solutions help customers to
secure their ability to deliver and provide service throughout the life cycle
of the product. 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
The Group's net sales were EUR 101.3 million (MEUR 74.3). Net sales grew by 36
percent on 2011. The growth in net sales was boosted by large individual
orders. A large proportion of the net sales were generated during the third and
fourth quarters.
Net sales were generated exclusively by project deliveries and technology
services related to the wood products technology business.
Net sales for project deliveries totaled EUR 73 million (MEUR 47), up 55
percent from the previous year. Project deliveries accounted for 72 percent of
total net sales (63%). The plywood industry's share of the net sales of project
deliveries was 93 percent (68%), while the LVL industry's share was 7 percent
(32%).
Net sales for technology services totaled EUR 28 million (MEUR 27). Net sales
grew 4 percent from the previous year and accounted for 28 percent (37%) of
total net sales. The growth of net sales remained low due to the decline in net
sales from modernization projects.
South America's share of total net sales in 2012 was 52 percent (6%), Europe's
22 percent (26%), Russia's 14 percent (35%), North America's 8 percent (8%),
and Asia-Pacific's 4 percent (25%).
RESULT AND PROFITABILITY
The Group's operating profit for 2012 was EUR 5.0 million positive (MEUR 0.7
negative) and accounted for 5 percent (-1%) of net sales. The profitability of
operations improved from the previous year due to the growth in net sales and a
lighter cost structure resulting from earlier operational reorganization
measures.
The Group's financial income and expenses totaled EUR -0.3 million (MEUR -0.4).
The Group's result before tax was EUR 4.8 million positive (MEUR -1.1) and the
result for the financial year was EUR 3.0 million positive (MEUR -1.1). The
Group's comprehensive income totaled EUR 3.1 million positive (MEUR -1.1).
Undiluted and diluted earnings per share were EUR +0.75 (EUR -0.27). Return on
investment was 15 percent (-0%) and return on equity +13 percent (-5%).
CASH FLOW AND BALANCE SHEET
The Group's financial position remained good throughout the year. At the end of
the financial year, the Group's cash and cash equivalents exceeded
interest-bearing liabilities by EUR 8.1 million (MEUR 10.4). At the end of the
financial year gearing was -34 percent (-47%) and equity ratio 48 percent
(47%).
The Group's cash and cash equivalents, including financial assets recognized at
fair value through profit or loss, stood at EUR 19.5 million (MEUR 25.7) at the
end of the financial year. The change in cash and cash equivalents in the
financial year was EUR 6.2 million negative (MEUR 1.6 positive). Operating cash
flow was EUR 1.9 million positive (MEUR 2.5 positive). Cash flow from
investment activities totaled EUR 2.9 million negative (MEUR 1.7 negative).
Cash flow from financing activities was EUR 5.2 million negative (MEUR 0.8
positive), including dividend payments of EUR 1.2 million (MEUR 1.2).
The Group's balance sheet total at the end of the year stood at EUR 63.1
million (MEUR 52.7). 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.
Interest-bearing liabilities amounted to EUR 11.5 million (MEUR 15.2) at the
end of the reporting period, with current interest-bearing liabilities
accounting for EUR 5.6 million (MEUR 4.3).
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 company also has unused bilateral short-term credit
facilities totaling EUR 5 million with a Nordic bank.
LOANS TO RELATED PARTIES AND OTHER LIABILITIES
On December 31, 2012, the Parent company Raute Corporation had loan receivables
from its subsidiaries Raute Service LLC in the amount of EUR 355 thousand and
Raute Canada Ltd in the amount of EUR 391 thousand. Raute Corporation had EUR
100 thousand in liabilities to the Raute Sickness Fund. Other liabilities are
presented in the figures section of this report.
EVENTS DURING THE REPORTING PERIOD
Raute Corporation published stock exchange releases on the following events in
2012:
February 10, 2012 Raute received orders valued at over EUR 50 million from
Chile.
April 16, 2012 Decisions by Raute's Annual General Meeting 2012.
July 30, 2012 Raute received an order valued at over EUR 14 million from
Germany.
October 25, 2012 Change in Raute's Executive Board. The President of Raute's
North American companies, Bruce Alexander, resigned from the Raute Group on
October 24, 2012. The North American operations have been integrated with the
Technology Services business segment, headed by Group Vice President Petri
Lakka.
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 automation and
instrumentation applications, especially machine vision.
In 2012, the Group's research and development costs totaled EUR 2.5 million
(MEUR 2.0) and 2.5 percent of net sales (2.7%). In 2012, Raute continued to
invest strongly in continuous research and development, particularly in plywood
and LVL manufacturing technology and the supporting automation and
instrumentation applications, especially machine vision. Additionally, the
development of products designed for the emerging markets was continued.
The Group's investments during the financial year totaled EUR 3.5 million (MEUR
1.9). The largest single investments focused on technology acquisitions and
product development in addition to acquisitions related to the new production
plant in China. The investments include capitalized development costs worth EUR
1.0 (MEUR 0.2).
DEVELOPMENT OF OPERATIONS
The largest project in terms of developing production and delivery capabilities
was the transfer of the Chinese plant into larger facilities at the end of the
year. Increasing the company's own production capacity enables better control
over the quality and delivery times of the components and equipment
manufactured in China.
A maintenance service center was established in Latvia, a key customer region,
in order to improve the service capabilities of technology services.
PERSONNEL
The Group's headcount at the end of 2012 was 503 (464). Finnish Group companies
accounted for 74 percent (75%) of employees, Chinese companies for 11 percent
(10%), North American companies for 11 percent (11%), and other sales and
maintenance companies for 4 percent (4%).
Converted to full-time employees (“effective headcount”), the average number of
employees during the financial year was 480 (457). Salaries and remunerations
paid by the Group totaled EUR 23.7 million (MEUR 19.9).
The Group continued to develop the competence of its personnel and increase
their commitment to the company. 2 percent (2%) of the payroll was invested in
personnel training. The “Great Place to Work” project was used to develop Raute
as a work community and work environment. The objective of the Särmä (Edge)
project, started at the end of the year, is to get Raute's entire personnel to
commit even more strongly to Raute's customer promise and the better quality of
products, services and operations.
REMUNERATION
The Group has remuneration systems in place that cover the entire personnel.
The Annual General Meeting held on March 31, 2010 resolved to issue a maximum
of 240,000 stock options. In compliance with the authorization granted by the
Annual General Meeting, the Board of Directors issued a total of 73,000 stock
options marked with the symbol 2010C to the Group's key employees on June 21,
2012. The share subscription period for 2010C stock options will be from March
1, 2015 to March 31, 2018 and the exercise price EUR 8.40. On December 31,
2012, the Group's key employees held a total of 70,500 previously granted
series A stock options and 75,000 series B stock options. The terms and
conditions of the stock option scheme are available on the company's website.
SOCIETY AND THE ENVIRONMENT
The environment is one of the values that guide Raute's operations. Raute
strives to systematically develop the environmental soundness of its products
and services and to reduce the environmental impacts of its operations. The
Group abides by the principles of good corporate citizenship, taking into
consideration nature and its protection, and how society as a whole operates,
while respecting local cultures.
Raute's operations mainly affect the environment indirectly when the company's
technology is used in the production processes of the wood products industry.
Raute's technology enables the wood products industry to substantially reduce
the environmental load caused by its operations through, for example, more
efficient use of wood raw materials, additives and energy.
The Group's own operations do not involve considerable environmental risks that
might have a direct impact on the Group's business operations or financial
position. The Nastola main production units manage environmental matters in
compliance with a certified environmental system. The operations and ethical
principles of the partner and subcontractor network are also subjected to
systematic inspection.
Raute aims to continuously reduce energy consumption, decrease the volume of
waste, and develop the working environment.
SEASONAL FLUCTUATIONS IN BUSINESS
The Group's net sales and working capital fluctuate every quarter due to
different types of project deliveries and their schedules. Business operations
do not involve regular seasonal changes.
RISKS AND RISK MANAGEMENT
The Group's identified main risk areas relate to the nature of the business,
the business environment, financing, and damage or loss. The fluctuation in
demand resulting from economic cycles and delivery and technology risks have
been identified as the Group's most significant 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. The
most significant risks for Raute are related to the development of net sales
and profitability.
The Group has no ongoing legal proceedings or other disputes in progress that
might materially affect the continuity of business operations, nor is the Board
of Directors aware of any other legal risks related to the Group's operations
that might have such an effect.
Business risks
Impact of economic cycles on business operations
Raute's business operations are characterized by the sensitivity of investment
demand to fluctuations in the global economy and the financing markets, and the
cyclical nature of project business. The impact of changes in demand on the
Group's result is reduced by increasing the share of technology services,
increasing operations in market areas with a small current market share,
creating products for completely new customer groups and developing the partner
network.
Deliveries and technology
The bulk of Raute's business operations consists of project deliveries, which
expose the company to risks caused by customer-specific solutions related to
each customer's end product, production methods or raw materials. At the
quotation and negotiation phase, the company has to take risks relating to the
promised performance figures and make estimates of implementation costs.
Raute invests heavily in product development. The developmental phase for new
technologies involves the risk that the project will not lead to a
technologically or commercially acceptable solution. The functionality and
capacity of new solutions produced as a result of development work cannot be
fully verified until the solutions can be tested under production conditions in
conjunction with the customer deliveries.
Contract, product liability, implementation, cost and capacity risks are
managed using project management procedures that comply with the company's
ISO-certified quality system. Technology risks are reduced by the conditions of
delivery contracts and by restricting the number of simultaneous first
deliveries.
Emerging markets
Raute's objective is to increase its local business in China and Russia, among
others, where, besides opportunities, companies face risks typical for emerging
markets. Information security risks are managed according to a defined
information security policy.
Human resources
Competence retention and development and ensuring the sufficiency of human
resources are particularly important in cyclical business. Continuity is
ensured by monitoring the development of the age structure, implementing
systematic human resources management and investing in well-being at work.
Financing risks
The most significant financing risks in the Group's international business
operations are default risks and currency risks related to counterparties. The
Group is also exposed to liquidity, refinancing, interest rate and price risks.
The default risk relating to customers' solvency is managed by covering the
unpaid sum with bank guarantees, letters of credit or other securities. The
Group's liquid assets are mainly held in banks in the Nordic countries.
The Group's main currency is the euro. The most significant currency risks
result from the following currencies: Chinese yuan (CNY), Russian ruble (RUB),
Canadian dollar (CAD) and US dollar (USD). The main hedging instruments used
are foreign currency forward contracts. Currency clauses are included in
quotations to hedge against currency risks during the quotation period.
Depending on the case, currency risks related to preliminary sales contracts
are hedged with currency option contracts.
The Group has braced for fluctuations in the working capital tied up in project
operations and possible disturbances in the availability of money by taking out
a long-term loan. The interest rate risk related to the company's variable
interest rate loans is hedged with interest rate swaps. The Group's interest
risks are mainly related to the return on liquid assets.
Risks of damage or loss
Raute's most significant single risks concerning material damage and business
interruption loss are a fire or a serious machine or information system
breakdown at the Nastola main unit, where the production, planning, financial,
and ERP systems serving the Group's key technologies are centrally located.
Other risks of damage or loss include occupational safety risks, which are
managed by means of active risk-prevention measures, such as continuous
personnel training and investigation of all near-miss situations. Occupational
safety and ergonomics are under continuous development.
Raute's production operations do not involve significant environmental risks.
The main unit in Nastola has an ISO-certified environmental management program,
whose principles are also adhered to in other units.
The Group hedges against risks of damage or loss by assessing its facilities
and processes in terms of risk management and by maintaining emergency plans.
Global and local insurance programs are checked regularly as part of overall
risk management. The objective is to use insurance policies to sufficiently
hedge against all risks that are reasonable to handle through insurance due to
economic or other reasons.
Organizing risk management
Raute's risk management policy is approved by the Board of Directors. The Board
is responsible for organizing internal control and risk management, and for
monitoring their efficiency.
The Executive Team defines the Group's general risk management principles and
operating policies, and defines the boundaries of the organization's powers.
The President and CEO and the CFO regularly report significant risks to the
Board.
The Group's President and CEO controls the implementation of the risk
management principles in the entire Group, while the Presidents of the Group
companies are responsible for risk management in their respective companies.
The members of the Group's Executive Board are responsible for their own areas
of responsibility across company boundaries.
Raute has no separate internal auditing organization. The Controller function
oversees the annual internal control plan approved by the Board, develops
internal control and risk management procedures together with the operative
leadership, and monitors compliance with risk management principles,
operational policies and powers.
GROUP STRUCTURE
No changes took place in the Group's legal structure during 2012.
SHAREHOLDERS
The number of shareholders totaled 1,667 at the beginning of the year and 1,682
at the end of the reporting period. Series K shares were held by 49 private
individuals (49) at the end of the reporting period. Nominee-registered shares
accounted for 3.3 percent (1.5%) of shares. No flagging notifications were
given to the company in 2012.
The Board of Directors and the Group's President and CEO held altogether
226,529 company shares, equaling 5.7 percent (7.0%) of the company shares and
11.2 percent (13.8%) of the votes. The figures include the holdings of their
own, minor children and control entities.
AUDITORS
At Raute Corporation's Annual General Meeting on April 16, 2012, the authorized
public accounting company PricewaterhouseCoopers was chosen as auditor with
Authorized Public Accountant Janne Rajalahti as the principal auditor.
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. On April 16, 2012 the shareholders proposed and the Annual General
Meeting elected as Board members a group of persons consisting only of men.
An outline of Raute Corporation's corporate governance principles and the
company's remuneration statement will be published together with the financial
statements.
CORPORATE GOVERNANCE STATEMENT
Raute Corporation's Board of Directors has handled Raute Corporation's
Corporate Governance Statement for 2012 according to chapter 2, section 6 of
the Finnish Securities Markets Act and recommendation 54 of the Finnish
Corporate Governance Code 2010 for listed companies issued by the Securities
Market Association on June 15, 2010. The statement has been drawn up separately
from the Report of the Board of Directors and will be published together with
the financial statements.
BOARD OF DIRECTORS AND PRESIDENT AND CEO
The Annual General Meeting elects the Chairman and Vice-Chairman for the Board
of Directors, and 3-5 Board members.
At Raute Corporation's Annual General Meeting on April 16, 2012, 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.
The Board of Directors appoints the President and CEO and confirms the terms of
his or her employment, including fringe benefits.
Mr. Tapani Kiiski, Licentiate in Technology, continued as Raute Corporation's
President and CEO. He was appointed as Raute Corporation's President and CEO on
March 16, 2004. As agreed in the executive contract, the term of notice is six
months, and the severance pay equals six months' salary.
Raute Corporation's Articles of Association do not grant any unusual
authorizations to the Board of Directors, or to the President and CEO.
Any decisions on changes to the Articles of Association or an increase in share
capital are made in compliance with the regulations of the effective Companies
Act.
EXECUTIVE BOARD
The Group's Executive Board consists of Mr. Tapani Kiiski, President and CEO
(Chairman); Ms. Arja Hakala, CFO; Mr. Timo Kangas, Group Vice President, EMEA;
Mr. Petri Lakka, Group Vice President, Technology Services; Mr. Petri
Strengell, Group Vice President, Technology and Operations and, up to October
24, 2012, Mr. Bruce Alexander, Group Vice President, North American Operations.
SHARES
The number of Raute Corporations shares at the end of 2012 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. During 2012, 302,096 shares were traded (522,287) worth
altogether EUR 2.4 million (MEUR 4.3). The number of shares traded represents
10 percent (17%) of all listed series A shares. The average price of a series A
share was EUR 8.22 (EUR 8.57). The highest closing price of the year was EUR
9.24 and the lowest EUR 6.18.
The company's market capitalization at the end of 2012 totaled EUR 36.0 million
(MEUR 24.8), with series K shares valued at the closing price of series A
shares, EUR 9.00 (EUR 6.20), on December 31, 2012.
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.
Other share-related information is presented in the figures section of this
report.
DIVIDENDS FOR THE 2011 FINANCIAL YEAR
The Annual General Meeting held on April 16, 2012 decided to pay a dividend of
EUR 0.30 per share for the financial year 2011. The dividends amounted to a
total of EUR 1.2 million, of which series A shares accounted for EUR 904,079.10
and series K shares for EUR 297,348.30.
AUTHORIZATION OF REPURCHASE AND DISPOSAL OF OWN SHARES
The Annual General Meeting held on April 16, 2012 authorized the company's
Board of Directors to decide on the repurchase of Raute Corporation series A
shares with the company's distributable assets and to decide on a directed
issue of a maximum of 400,000 shares. The Board of Directors did not exercise
the authorization in 2012.
The company did not possess company shares at the end of the financial period
or hold them as security.
ANNUAL GENERAL MEETING 2013
Raute Corporation's Annual General Meeting will be held at Lahti's Sibelius
Hall on Monday April 8, 2013 at 6:00 p.m. A shareholder who wishes to include
an issue in Raute Corporation's Annual General Meeting's agenda shall notify
the company thereof in writing no later than February 28, 2013.
PUBLICATION OF THE FINANCIAL STATEMENTS AND ANNUAL REPORT 2012
Raute Corporation's consolidated financial statements 2012 will be published on
February 13, 2013. Raute Corporation's Annual Report 2012 will be published
during week 9.
THE BOARD OF DIRECTORS' PROPOSAL FOR DIVIDEND DISTRIBUTION AND MEASURES
CONCERNING THE RESULT
According to the financial statements 2012, distributable assets total EUR
14,495 thousand.
The Board of Directors will propose to Raute Corporation's Annual General
Meeting, to be held on April 8, 2013, that a dividend of EUR 0.50 per share be
paid for series A shares and series K shares, and that the remainder of
distributable assets be transferred to equity. The proposed record date for
dividend payments is April 11, 2013 and the dividend payment date is April 18,
2013. No essential changes have taken place in the company's financial position
since the end of the financial year. The company has good liquidity, and in the
Board of Directors' view, the proposed dividend does not pose a risk to
solvency.
OUTLOOK FOR 2013
Raute's business operations are characterized by the sensitivity of investment
demand to cyclical fluctuations in the global economy and the financial
markets.
Major uncertainty still overshadows the development of the global economy and
financial markets due to the hazards of growing debt among a few European
countries and the threats associated with the recovery of the US economy.
Reports signaling a slowdown in economic growth in Asia, and in particular
China, also add to the 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. In addition, several production line and
mill-scale investment projects are being planned. The implementation and timing
of these projects will depend on prospective investors' confidence that the
market for wood products will remain at a reasonable level. The availability of
financing for customer projects in some market areas will also be an important
factor.
Thanks to its strong financial and market position and the development measures
it has carried out, Raute is well positioned to respond to demand once the
markets recover.
Uncertainty concerning the development of the economy in 2013 will be reflected
in the investment decisions of Raute's customers and in the volume of new
orders. Based on a strong initial order book and projects in the negotiation
phase, Raute's net sales and operating profit for 2013 are expected to remain
at the same level as in 2012.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
The figures for the financial years 2011 and 2012 presented in the figures
section of the financial statement release
have been audited. The presented interim financial report figures have not been
audited.
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF 1.10.-31 1.10.-31 1.1.-31 1.1.-31
.12. .12. .12. .12.
COMPREHENSIVE INCOME (EUR 1 000) Note 2012 2011 2012 2011
--------------------------------------------------------------------------------
NET SALES 3,4,5 33 914 14 934 101 273 74 323
--------------------------------------------------------------------------------
Change in inventories of finished 551 -1 225 500 -184
goods and work in progress
Other operating income 1 256 23 1 423 168
Materials and services -19 388 -5 561 -55 725 -39 404
Employee benefits expense 12 -8 038 -6 437 -28 752 -24 019
Depreciation and amortization -491 -518 -1 968 -2 128
Other operating expenses -4 680 -2 336 -11 720 -9 494
--------------------------------------------------------------------------------
Total operating expenses -32 597 -14 853 -98 165 -75 045
OPERATING PROFIT (LOSS) 3 125 -1 121 5 031 -738
--------------------------------------------------------------------------------
% of net sales 9,2 -8 5 -1
Financial income -37 -60 482 705
Financial expenses -126 -10 -738 -1 093
PROFIT (LOSS) BEFORE TAX 2 962 -1 190 4 775 -1 126
--------------------------------------------------------------------------------
% of net sales 8,7 -8 5 -2
Income taxes -973 170 -1 759 30
PROFIT (LOSS) FOR THE PERIOD 1 989 -1 020 3 016 -1 095
--------------------------------------------------------------------------------
% of net sales 5,9 -7 3 -1
Other comprehensive income items:
Exchange differences on translating 50 57 80 23
foreign operations
Cash flow hedging - 19 - 19
Income tax related to cash flow - -5 - -5
hedges
--------------------------------------------------------------------------------
Comprehensive income items for
the period, net of tax 50 71 80 37
COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD 2 038 -949 3 096 -1 058
--------------------------------------------------------------------------------
Profit (loss) for the period attributable
to
--------------------------------------------------------------------------------
Equity holders of the Parent 1 989 -1 020 3 016 -1 095
company
Comprehensive profit (loss) for the period
attributable to
--------------------------------------------------------------------------------
Equity holders of the Parent 2 038 -949 3 096 -1 058
company
Earnings per share for profit (loss)
attributable
to Equity holders of the Parent company,
EUR
--------------------------------------------------------------------------------
Undiluted earnings per share 0,50 -0,25 0,75 -0,27
Diluted earnings per share 0,50 -0,25 0,75 -0,27
Shares, 1 000 pcs
--------------------------------------------------------------------------------
Adjusted average number of shares 4 005 4 005 4 005 4 005
Adjusted average number of shares 4 008 4 005 4 008 4 005
diluted
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET 31.12. 31.12.
(EUR 1 000) Note 2012 2011
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets 8 3 204 1 433
Property, plant and equipment 8 7 892 8 226
Other financial assets 789 789
Receivables - 549
Deferred tax assets 60 1 601
--------------------------------------------------------------------------------
Non-current assets 11 944 12 598
--------------------------------------------------------------------------------
Current assets
Inventories 7 130 5 059
Accounts receivables and other receivables 5 24 427 9 298
Income tax receivable 37 37
Cash and cash equivalents 19 548 25 674
--------------------------------------------------------------------------------
Current assets 51 143 40 067
--------------------------------------------------------------------------------
TOTAL ASSETS 63 087 52 666
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to Equity holders of
the Parent company
Share capital 8 010 8 010
Share premium account - 6 498
Other reserves 6 862 187
Exchange differences 103 23
Retained earnings 6 150 8 447
Profit (loss) for the period 3 016 -1 095
--------------------------------------------------------------------------------
Share of shareholders' equity that belongs
to the owners of the Parent company 24 141 22 069
--------------------------------------------------------------------------------
Equity 24 141 22 069
--------------------------------------------------------------------------------
Non-current liabilities
Provisions 56 123
Deferred tax liabilities 174 0
Non-current interest-bearing liabilities 9 5 866 10 937
Pension obligations 90 -
--------------------------------------------------------------------------------
Non-current liabilities 6 186 11 060
--------------------------------------------------------------------------------
Current liabilities
Provisions 1 134 697
Pension obligations - 98
Current interest-bearing liabilities 9 5 594 4 340
Advance payments received 5 12 776 5 589
Income tax liability - 416
Trade payables and other liabilities 13 255 8 399
--------------------------------------------------------------------------------
Current liabilities 32 759 19 537
--------------------------------------------------------------------------------
Total liabilities 38 946 30 597
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 63 087 52 666
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS 1.1.-31.12. 1.1.-31.12.
(EUR 1 000) 2012 2011
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Proceeds from sales 90 385 64 268
Proceeds from other operating income 1 423 168
Payments of operating expenses -89 379 -62 322
--------------------------------------------------------------------------------
Cash flow before financial items and taxes 2 429 2 113
Interest paid from operating activities -529 -163
Dividends received from operating activities 118 108
Interests received from operating activities 269 357
Other financing items from operating activities -275 -183
Income taxes paid -75 298
NET CASH FLOW FROM OPERATING ACTIVITIES (A) 1 938 2 531
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and -3 055 -1 589
intagible assets
Proceeds from sale of property, plant and equipment 160 133
and intangible assets
Purchase of assets-for-sale as investments - -293
NET CASH FLOW FROM INVESTING ACTIVITIES (B) -2 895 -1 748
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
Decrease of non-current and current receivables - 1 000
Increase of current borrowings - 163
Repayments of current borrowings - -115
Increase of non-current borrowings - 11 000
Repayments of non-current borrowings -4 000 -10 000
Dividends paid -1 201 -1 201
NET CASH FLOW FROM FINANCING ACTIVITIES (C) -5 201 846
--------------------------------------------------------------------------------
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) -6 159 1 629
--------------------------------------------------------------------------------
increase (+)/decrease (-)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF
THE PERIOD* 25 674 24 090
NET CHANGE IN CASH AND CASH EQUIVALENTS -6 159 1 629
EFFECTS OF EXCHANGE RATE CHANGES ON CASH 33 -45
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* 19 548 25 674
--------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS IN THE BALANCE
SHEET AT THE END OF THE PERIOD
Cash and cash equivalents 19 548 25 674
TOTAL 19 548 25 674
--------------------------------------------------------------------------------
*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
Invested
non-
restrict
ed
Share Share equity Other Exchange
(EUR 1 000) capital premiu reserve reserve rate
m s diff.
--------------------------------------------------------------------------------
EQUITY at Jan. 1, 2012 8 010 6 498 0 187 23
--------------------------------------------------------------------------------
Comprehensive profit (loss) for
the period
Profit (loss) for the period - - - - -
Other comprehensive income items:
Exchange differences on
translating foreign
operations - - - - 80
Cash flow hedging, net of tax - - - - -
Total comprehensive profit (loss) 0 0 0 0 80
for the period
--------------------------------------------------------------------------------
Transactions with owners
Equity-settled share-based
transactions - - - 177 -
Reclassification between items - -6 498 6 498 - -
Dividends paid - - - - -
EQUITY at Dec. 31, 2012 8 010 0 6 498 364 103
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(continue)
Retaine To the owners of
d
(1 000 EUR) earning the Parent TOTAL
s Company
--------------------------------------------------------------------------------
EQUITY at Jan. 1, 2012 7 351 22 069 22 069
--------------------------------------------------------------------------------
Comprehensive profit (loss) for
the period
Profit (loss) for the period 3 016 3 016 3 016
Other comprehensive income items:
Exchange differences on
translating foreign
operations - 80 80
Cash flow hedging, net of tax - - -
Total comprehensive profit (loss) 3 016 3 096 3 096
for the period
--------------------------------------------------------------------------------
Transactions with owners
Equity-settled share-based
transactions - 177 177
Reclassification between items - - -
Dividends paid -1 201 -1 201 -1 201
EQUITY at Dec. 31, 2012 9 166 24 141 24 141
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
Share Share Other Exchange
(1 000 EUR) capital premium reserves rate
diff.
--------------------------------------------------------------------------------
EQUITY at Jan. 1, 2011 8 010 6 498 36 35
--------------------------------------------------------------------------------
Comprehensive profit (loss) for the
period
Profit (loss) for the period - - - -
Other comprehensive income items:
Exchange differences on translating
foreign
operations - - - -12
Cash flow hedging, net of tax - - 14 -
Total comprehensive profit (loss) for the 0 0 14 -12
period
--------------------------------------------------------------------------------
Transactions with owners
Equity-settled share-based
transactions - - 137 -
Reclassification between items - - - -
Dividend paid - - - -
EQUITY at Dec. 31, 2011 8 010 6 498 187 23
--------------------------------------------------------------------------------
----------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue)
Retained
(1 000 EUR) earnings TOTAL
----------------------------------------------------------------------------
EQUITY at Jan. 1, 2011 9 648 24 227
----------------------------------------------------------------------------
Comprehensive profit (loss) for the period
Profit (loss) for the period -1 095 -1 095
Other comprehensive income items:
Exchange differences on translating foreign
operations - -12
Cash flow hedging, net of tax - 14
Total comprehensive profit (loss) for the period -1 095 -1 093
----------------------------------------------------------------------------
Transactions with owners
Equity-settled share-based
transactions - 137
Reclassification between items - -
Dividend paid -1 201 -1 201
----------------------------------------------------------------------------
EQUITY at Dec. 31, 2011 7 351 22 069
----------------------------------------------------------------------------
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General information
Raute Group 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). 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 is a Finnish public limited liability company,
Raute Corporation, 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, Finland. The address of
its registered office is Rautetie 2, FI-15550 Nastola, Finland, and its postal
address is P.O. Box 69, FI-15551 Nastola, Finland.
The Consolidated financial statements are available online at www.raute.com and
at the head office of the Parent company,
Rautetie 2, FI-15550 Nastola, Finland.
Raute Corporation's Board of Directors has on February 12, 2013 reviewed the
consolidated financial statement for January 1 -
December 31, 2012, and approved it to be published in compliance with this
release.
2. Accounting principles
Raute Corporation's financial statement release January 1 - December 31, 2012
has been prepared in accordance with standard IAS 34 Interim Financial
Reporting. The financial statement release does not contain full notes and
other information presented in the financial statements. Raute Corporation's
financial statements with full notes will be published on February 13, 2013.
Raute Corporation's financial statement release for January 1 - December 31,
2012 has been prepared in accordance with international financial statement
standards (International Financial Reporting Standards, IFRS) as adopted by the
European Union, and preparations have complied with the IAS and IFRS standards,
as well as SIC and IFRIC interpretations, effective on December 31, 2012. The
notes to the financial statements also comply with Finnish accounting
legislation.
The financial statement release has been prepared according to the same
accounting principles as those applied in the annual financial statements for
2011 except for the certain new or revised standards, interpretations and
amendments which the Group has applied as of January 1, 2012. The impact of the
new and revised standards has been presented in the Annual financial
statements.
All the monetary figures presented in the financial statement release are in
thousand euros, 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 financial statements according to IFRS standards requires
management to use estimates and assumptions in the process of applying the
accounting principles. Because estimates and assumptions are based on
management's best knowledge at the reporting date, they comprise risks and
uncertainties. The actual results may therefore differ from these estimates.
3. Segment information
Operational segment
Continuing operations of Raute Group belong to the wood products technology
segment.
Due to Raute's business model, operational nature and administrative structure,
the operational segment to be reported as wood products technology segment is
comprised of the whole Group and the information on the segment is consistent
with that of the Group. Segment reporting follows the principles of
presentation of the consolidated financial statements.
----------------------------------------------------------------------
31.12. 31.12.
Wood products technology 2012 2011
----------------------------------------------------------------------
Net sales 101 273 74 323
Operating profit (loss) 5 031 -738
Assets 63 087 52 666
Liabilities 38 946 30 597
Capital expenditure 3 529 1 885
----------------------------------------------------------------------
Assets of the wood products technology 31.12. 31.12.
segment by geographical location 2012 % 2011 %
----------------------------------------------------------------------
Finland 53 631 85 46 196 88
China 4 406 7 1 550 3
North America 3 437 5 3 305 6
Russia 1 257 2 1 302 2
South America 199 0 170 0
Others 158 0 143 0
TOTAL 63 087 100 52 666 100
----------------------------------------------------------------------
----------------------------------------------------------------------
Capital expenditure of the wood products 31.12. 31.12.
technology segment by geographical location 2012 % 2011 %
----------------------------------------------------------------------
Finland 2 980 84 1 824 97
China 517 15 36 2
North America 6 0 22 1
Russia 1 0 0 0
South America 22 1 2 0
Others 2 0 1 0
TOTAL 3 529 100 1 885 100
----------------------------------------------------------------------
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 share
of the Group's net sales temporarily exceeded ten percent. The share of the
other customer was 36 percent and the other's 14 percent.
--------------------------------------------------------------------------------
1.1.-31.12 1.1.-31.12
. .
Net sales by market area 2012 % 2011 %
--------------------------------------------------------------------------------
LAM (South America) 52 588 52 4 301 6
EMEA (Europe) 22 179 22 19 608 26
CIS (Russia) 14 454 14 26 026 35
NAM (North America) 8 469 8 6 090 8
APAC (Asia-Pasific) 3 583 4 18 299 25
TOTAL 101 273 100 74 323 100
--------------------------------------------------------------------------------
Finland accounted for 6 percent (12%)
of net sales.
-------------------------------------------------------------------------
5. Long-term projects 31.12. 31.12.
2012 2011
-------------------------------------------------------------------------
Net sales
Net sales by percentage of completion 85 267 58 760
Other net sales 16 006 15 563
TOTAL 101 273 74 323
-------------------------------------------------------------------------
Project revenues entered as income from currently
undelivered
long-term projects recognized by percentage of 89 601 45 250
completion
Amount of long-term project revenues not yet
entered as income
(order book) 49 040 35 034
Projects for which the value by percentage of
completion exceeds
advance payments invoiced
- aggregate amount of costs incurred and recognized
profits less
recognized losses 64 872 16 805
- advance payments received 48 372 13 431
Gross amount due from customers 16 499 3 374
-------------------------------------------------------------------------
Projects for which advance payments invoiced exceed
the value by
percentage of completion
- aggregate amount of costs incurred and recognized
profits less
recognized losses 27 890 28 445
- advance payments received 40 394 33 704
Gross amount due to customers 12 504 5 259
-------------------------------------------------------------------------
Specification of combined asset and
liability items
Advance payments paid 1 021 101
Advance payments received included in inventories 1 021 101
in the balance sheet
-------------------------------------------------------------------------
Advance payments in the balance sheet 12 776 5 589
-------------------------------------------------------------------------
6. Number of personnel, persons 31.12. 31.12.
2012 2011
-------------------------------------------------------------------------
Effective, on average 480 457
In books, on average 488 475
In books, at the end of period 503 464
- of which personnel working abroad 132 117
-------------------------------------------------------------------------
7. Research and development costs 31.12. 31.12.
2012 2011
-------------------------------------------------------------------------
Research and development costs for the 2 516 2 020
period
Amortization of previously capitalized 126 262
development costs
Development costs recognized as an asset in the -1 024 -209
balance sheet
Research and development costs entered as expense 1 618 2 072
for the period
-------------------------------------------------------------------------
-------------------------------------------------------------------------
8. Changes in Intangible assets and in 31.12. 31.12.
Property,
plant and equipment 2012 2011
-------------------------------------------------------------------------
Intangible assets
Carrying amount at the beginning of the 12 447 11 759
period
Exchange rate differences 7 16
Additions 2 198 609
Reclassifications between items -634 63
Carrying amount at the end of the 14 019 12 447
period
-------------------------------------------------------------------------
Accumulated depreciation and amortization at the -11 013 -10 420
beginning of the period
Exchange rate differences -5 -8
Accumulated depreciation and amortization of 679 18
disposals and reclassifications
Depreciation and amortization for the -474 -604
period
-------------------------------------------------------------------------
Accumulated depreciation and
amortization
at the end of the period -10 815 -11 013
-------------------------------------------------------------------------
Book value of Intangible assets, at the beginning 1 433 1 341
of the period
Book value of Intangible assets, at the end of the 3 204 1 433
period
Property, plant and equipment
Carrying amount at the beginning of the 44 463 43 714
period
Exchange rate differences 88 117
Additions 1 331 983
Disposals -370 -67
Reclassifications between items -3 839 -285
Carrying amount at the end of the 41 673 44 463
period
-------------------------------------------------------------------------
Accumulated depreciation and amortization at the -36 236 -34 801
beginning of the period
Exchange rate differences -70 -96
Accumulated depreciation and amortization of 4 019 202
disposals and reclassifications
Depreciation and amortization for the -1 494 -1 541
period
-------------------------------------------------------------------------
Accumulated depreciation and
amortization
at the end of the period -33 782 -36 236
-------------------------------------------------------------------------
Book value of Property, plant and equipment, at the
beginning
of the period 8 226 8 913
Book value of Property, plant and equipment, at the
end
of the period 7 892 8 226
-------------------------------------------------------------------------
9. Interest-bearing liabilities 31.12. 31.12.
2012 2011
-------------------------------------------------------------------------
Non-current interest-bearing liabilities recognized 5 866 10 937
at amortized cost
Current interest-bearing liabilities 5 594 4 340
TOTAL 11 461 15 277
-------------------------------------------------------------------------
Maturities of the interest-bearing
financial liabilities
Financial liability Current Non-curren Total
t
--------------------------------------------------------------------------------
Pension loans (TyEL) 2 000 - 2 000
Loans from financial institutions 3 494 5 866 9 361
Other loans 100 - 100
Total 5 594 5 866 11 461
--------------------------------------------------------------------------------
-------------------------------------------------------------------------
10. Pledged assets and contingent 31.12. 31.12.
liabilities
2012 2011
-------------------------------------------------------------------------
On behalf of the Parent company
Loans from financial institutions 9 117 11 177
Business mortgages 6 700 6 700
Pension loans (TyEL) 2 000 4 000
Business mortgages 600 1 200
Credit insurance agreements 1 400 2 800
Other liabilities 100 100
Real estate mortgages 101 101
Mortgage agreements on behalf of
subsidiaries
Loans from financial institutions 244 240
Business mortgages 244 240
Commercial bank guarantees on behalf of the Parent
company
and subsidiaries 39 600 18 472
Other own obligations
Rental liabilities maturing within one 868 546
year
Rental liabilities maturing in one to 2 682 1 358
five years
Rental liabilities maturing more than 519 523
five years
Total 4 069 2 426
-------------------------------------------------------------------------
Loans and guarantees on behalf of the related party
No loans are granted to the company's management. On December 31, 2012, 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 391 thousand (EUR 1 774 thousand). Raute Corporation had a EUR 100
thousand (EUR 100 thousand) liability
to Raute Sickness Fund.
No pledges have been given or other commitments made on behalf of the company's
management and shareholders.
-----------------------------------------------------------------------
11. Derivatives 31.12. 31.12.
2012 2011
-----------------------------------------------------------------------
Nominal values of forward contracts in foreign currency
Economic hedging
- Related to financing 2 093 1 211
- Related to the hedging of net sales 1 763 637
Fair values of forward contracts in foreign currency
Economic hedging -8 -32
- Related to financing 18 4
- Related to the hedging of net sales
Interest rate and currency swap agreements
- Nominal value 4 117 5 937
- Fair value -4 -285
12. 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 177 thousand (EUR 137 thousand) was
recognized for the options in the income statement during the period. On June
21, 2012, Raute Corporation's Board of Directors issued, in compliance with the
authorization by the Annual General Meeting, a total of 73 000 option rights
marked with the symbol 2010 C to the Group's key personnel.
Key terms and conditions of the granted option arrangements are:
Nature of arrangement stock options
Grant date 21.6.2012
Number of stock options granted 73 000
Price, EUR 8,40
Share market value at grant date, EUR 7,55
Term, years 3
Subscription period 1.3.2015-31.3.2018
Realization in shares
13. Dividend distribution
Raute Corporations' Annual General Meeting decided to distribute a dividend of
EUR 0,30 per share to be paid for series A and K shares. A total amount of
dividends to be paid was EUR 1 201 427,40. The dividend payment date was April
26, 2012.
-------------------------------------------------
14. Exchange rates used
1.1.-31.12. 1.1.-31.12.
Income statement, euros 2012 2011
-------------------------------------------------
CNY (Chinese juan) 8,1096 8,9958
RUB (Russian rouble) 39,9238 40,8797
CAD (Canadian dollar) 1,2848 1,3756
USD (US dollar) 1,2856 1,3917
SGD (Singapore dollar) 1,6062 1,7491
CLP (Chilean peso) 624,7032 672,0723
31.12. 31.12.
-------------------------------------------------
Balance sheet, euros 2012 2011
-------------------------------------------------
CNY (Chinese juan) 8,1809 8,3499
RUB (Russian rouble) 40,3295 41,7650
CAD (Canadian dollar) 1,3137 1,3215
USD (US dollar) 1,3194 1,2939
SGD (Singapore dollar) 1,6111 1,6819
CLP (Chilean peso) 625,1146 680,171
15. The Board of Directors' proposal for dividend distribution and measures
concerning the result of 2012 The Board of Directors will propose to Raute
Corporation's Annual General Meeting, to be held on April 8, 2013, that a
dividend of EUR 0.50 per share be paid for series A shares and series K shares
for the financial year 2012, that is, a total of EUR 2 002 thousand, and that
the remainder, EUR 12 492 thousand, be retained to the equity.
--------------------------------------------------------------------------------
FINANCIAL DEVELOPMENT 31.12. 31.12.
2012 2011
--------------------------------------------------------------------------------
Change in net sales, % 36,3 18,2
Exported portion of net sales, % 93,9 88,0
Return on investment (ROI), % 15,0 -0,1
Return on equity (ROE), % 13,1 -4,7
Interest-bearing net liabilities, EUR million -8,1 -10,4
Gearing, % -33,5 -47,1
Equity ratio, % 48,0 46,9
Gross capital expenditure, EUR million 3,5 1,9
% of net sales 3,5 2,5
Research and development costs, EUR million 2,5 2,0
% of net sales 2,5 2,7
Order book, EUR million 50 36
Order intake, EUR million 116 77
--------------------------------------------------------------------------------
SHARE-RELATED DATA 31.12. 31.12.
2012 2011
--------------------------------------------------------------------------------
Earnings per share, (EPS), undiluted, EUR 0,75 -0,27
Earnings per share, (EPS), diluted, EUR 0,75 -0,27
Equity to share, EUR 6,03 5,51
Dividend per share, EUR 0,50* 0,30
Dividend per profit, % 66,4* -109,7
Effective dividend return, % 5,6* 4,8
* Board of Directors' proposal to the Annual General
Meeting.
Development in share price (series A shares)
Lowest share price for the period, EUR 6,18 6,05
Highest share price for the period, EUR 9,24 11,55
Average share price for the period, EUR 8,22 8,57
Share price at the end of the period, EUR 9,00 6,20
Market value of capital stock
- Series K shares, EUR million** 8,9 6,1
- Series A shares, EUR million 27,1 18,7
Total, EUR million 36,0 24,8
--------------------------------------------------------------------------------
**Series K shares valued at the value of series A shares.
Trading of the company's shares (series A shares)
Trading of shares, pcs 302 096 522 287
Trading of shares, EUR million 2,4 4,3
Number of shares
- Series K shares, ordinary shares (20 votes/share) 991 161 991 161
- Series A shares (1 vote/share) 3 013 597 3 013 597
Total 4 004 758 4 004 758
--------------------------------------------------------------------------------
Number of shares, weighted average, 1 000 pcs 4 005 4 005
Number of shares diluted, 1 000 pcs 4 008 4 005
The number of shareholders 1 682 1 667
--------------------------------------------------------------------------------
DEVELOPMENT OF Q 1 Q 2 Q 3 Q 4 Rolling Rolling
QUARTERLY RESULTS 2012 2012 2012 2012 1.1.2012 1.1.2011
(EUR 1 000) - -
31.12.2012 31.12.2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 15 109 22 365 29 886 33 914 101 273 74 323
--------------------------------------------------------------------------------
Change in
inventories of
finished
goods and work in 464 226 -742 551 500 -184
progress
Other operating 46 60 61 1 256 1 423 168
income
Materials and -6 806 -12 055 -17 475 -19 388 -55 725 -39 404
services
Employee benefits -6 635 -6 997 -7 083 -8 038 -28 752 -24 019
expense
Depreciation and -501 -495 -482 -491 -1 968 -2 128
amortisation
Other operating -2 227 -2 467 -2 346 -4 680 -11 720 -9 494
expenses
Total operating -16 168 -22 014 -27 386 -32 597 -98 165 -75 045
expenses
--------------------------------------------------------------------------------
OPERATING PROFIT -549 637 1 818 3 125 5 031 -738
(LOSS)
--------------------------------------------------------------------------------
% of net sales -4 3 6 9 5 -1
Financing income 208 181 130 -37 482 705
Financing expenses -195 -150 -267 -126 -738 -1 093
PROFIT (LOSS) BEFORE -536 669 1 680 2 962 4 775 -1 126
TAX
--------------------------------------------------------------------------------
% of net sales -4 3 6 9 5 -2
Income taxes 72 -406 -451 -973 -1 759 30
PROFIT (LOSS) FOR -464 263 1 229 1 989 3 016 -1 095
THE PERIOD
--------------------------------------------------------------------------------
% of net sales -3 1 4 6 3 -1
Attributable to -464 263 1 229 1 989 3 016 -1 095
equity holders of
the Parent company
Earnings per share,
EUR
--------------------------------------------------------------------------------
Undiluted earnings -0,12 0,07 0,31 0,50 0,75 -0,27
per share
Diluted earnings per -0,12 0,07 0,31 0,50 0,75 -0,27
share
Shares, 1 000 pcs
--------------------------------------------------------------------------------
Adjusted average 4 005 4 005 4 005 4 005 4 005 4 005
number of shares
Adjusted average 4 005 4 005 4 005 4 008 4 008 4 005
number of shares
diluted
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
LARGEST SHAREHOLDERS AT Number Number
December 31, 2012 of series of series
K shares A shares Total
(20 votes (1 vote number
per share) per share) of shares
--------------------------------------------------------------------------------
1. Sundholm Göran - 624 398 624 398
2. Mandatum Henkivakuutusosakeyhtiö - 181 900 181 900
3. Mustakallio Kari Pauli 60 480 56 900 117 380
4. Sijoitusrahasto Alfred Berg Small Cap - 116 671 116 671
Finland
5. Suominen Pekka 48 000 62 429 110 429
6. Suominen Tiina Sini-Maria 48 000 62 316 110 316
7. Siivonen Osku Pekka 50 640 53 539 104 179
8. Kirmo Kaisa Marketta 50 280 41 826 92 106
9. Mustakallio Mika Tapani 57 580 29 270 86 850
10. Keskiaho Kaija Leena 33 600 51 116 84 716
11. Särkijärvi Anna Riitta 60 480 22 009 82 489
12. Laakkosen Arvopaperi Oy - 71 849 71 849
13. Relander Harald Bertel - 70 900 70 900
14. Mustakallio Ulla Sinikka 53 240 15 862 69 102
15. Mustakallio Marja Helena 43 240 16 047 59 287
16. Särkijärvi Timo 12 000 43 256 55 256
17. Särkijärvi-Martinez Anu Riitta 12 000 43 256 55 256
18. Kirmo Lasse 30 000 24 110 54 110
19. Suominen Jukka Matias 24 960 27 964 52 924
20. Mustakallio Kai Henrik 47 420 4 594 52 014
TOTAL 631 920 1 620 212 2 252 132
--------------------------------------------------------------------------------
Share of total amount of shares, % 63,8 53,8 56,2
Share of total voting rights, % 63,8 53,8 62,4
--------------------------------------------------------------------------------
Nominee-registered 132 984 132 984
Other shareholders 359 241 1 260 401 1 619 642
--------------------------------------------------------------------------------
TOTAL 991 161 3 013 597 4 004 758
--------------------------------------------------------------------------------
MANAGEMENT'S SHAREHOLDING 122 880 108 899 231 779
--------------------------------------------------------------------------------
Share of total amount of shares, % 12,4 3,6 5,8
--------------------------------------------------------------------------------
Share of total voting rights, % 12,4 3,6 11,2
--------------------------------------------------------------------------------
RAUTE CORPORATION
Board of Directors
BRIEFING ON FEBRUARY 12, 2013 AT 2 P.M.:
A briefing will be organized for analysts, investors and the media on February
12, 2013 at 2 p.m. at Scandic Simonkenttä Hotel, Roba cabinet, Simonkatu 9,
Helsinki. The financial statements will be presented by Mr. Tapani Kiiski,
President and CEO, and Mrs. Arja Hakala, CFO.
FINANCIAL RELEASES IN 2013:
Raute's interim reports will be published as follows:
- January-March on Friday, April 26, 2013
- January-June on Tuesday, July 30, 2013
- January-September on Wednesday, October 30, 2013
Raute Corporation's consolidated financial statements will be published on
February 13, 2012. Raute Corporation's Annual Report 2012 will be published
during week 9.
Raute Corporation's Annual General Meeting will be held in Lahti, at Sibelius
Hall on Monday, April 8, 2013 at 6:00 p.m.
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, tel. +358 3 829 3293, mobile +358 400
710 387
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute's
customers are companies operating in the wood products industry that
manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology
offering covers machinery and equipment for the entire production process. As a
supplier of mill-scale projects Raute is a global market leader both in the
plywood and LVL industries. Additionally, Raute's full-service concept includes
technology services ranging from spare parts deliveries to regular maintenance
and equipment modernizations. Raute's head office is located in Nastola,
Finland. Its other production plants are in the Vancouver area of Canada, in
the Shanghai area of China, and in Kajaani, Finland. Raute's net sales in 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.
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