2022-01-25 08:00:00 CET

2022-01-25 08:00:12 CET


REGULATED INFORMATION

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Raute - Inside information

Profit warning: Raute Corporation's operating profit for 2021 will remain at the level of 2020 due to the new agenda decision issued by IFRIC on IT cloud services


RAUTE CORPORATION INSIDE INFORMATION JANUARY 25, 2022 at 9.00 a.m.
PROFIT WARNING: RAUTE CORPORATION’S OPERATING PROFIT FOR 2021 WILL REMAIN AT THE
LEVEL OF 2020 DUE TO THE NEW AGENDA DECISION ISSUED BY IFRIC ON IT CLOUD
SERVICES

According to preliminary, unaudited information, Raute’s operating profit for
2021 will be weaker than previously estimated.

According to the preliminary, unaudited information Raute Group’s net sales for
2021 were EUR 142 million (2020: 115 M€). Operating profit will be EUR 2.2
million negative (2020: 1.9 M€ negative). Previously the company has estimated
net sales for 2021 to increase and operating profit to improve compared to 2020.

IFRS Interpretations Committee, IFRIC gave in April 2021 an agenda decision on
bookkeeping practices of configuration and tailoring costs of cloud-based IT
systems (IAS 38§, Intangible Assets). Raute has analyzed this decision’s impacts
on the ongoing process and IT system renewal project. This IT system is cloud
based. As a conclusion of this analysis Raute will book as expenses 2.9 M€ of
costs that were earlier capitalized. 2.0 M€ of that concerns 2021 and 0.9 M€
retroactively to year 2020.

Further, in early December, Raute was forced to halt the operations of its main
production plant due to a Covid-19 cluster. Due to an ongoing industrial action,
it was not possible to use overtime to compensate for the resulting loss of
production. The industrial action impeded production during the busiest time of
year in other ways, too. In Q4 the delays caused by problems in the availability
of raw materials and components reduced net sales, and increased prices weakened
the result.

Raute will publish its financial statements release for 2021, as planned, on
Friday February 11, 2022.  The company will give then more detailed information
on its net sales and operating profit for 2021 and outlook for 2022.

RAUTE CORPORATION
Tapani Kiiski
President and CEO
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, mobile phone +358 400 814 148
Ms. Tarja Järvinen, Executive Vice President, CFO, mobile phone +358 40658 3562
DISTRIBUTION:
Nasdaq Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s
customers are companies operating in the wood products industry that manufacture
veneer, plywood, LVL (Laminated Veneer Lumber) and sawn timber. Its technology
offering covers the entire production process for veneer, plywood and LVL and
special measurement equipment for sawn timber. As a supplier of mill-scale
projects, Raute is a global market leader both in the plywood and LVL
industries. Additionally, Raute’s full-service concept includes technology
services ranging from spare parts deliveries to regular maintenance and
equipment modernizations. Raute’s head office is located in the Nastola area of
Lahti, Finland. The company’s other production plants are located in Kajaani,
Finland, the Vancouver area of Canada, the Shanghai area of China and in
Pullman, Washington, USA. More information about the company can be found at
www.raute.com.