2010-08-05 11:01:38 CEST
2010-08-05 11:02:32 CEST
REGULATED INFORMATION
Metsäliitto Osuuskunta - Interim report (Q1 and Q3)
Metsäliitto Group Interim Report January - June 2010
Metsäliitto Group Interim Report 1 January - 30 June 2010, Stock Exchange Release August 5, 2010 at 12:00 noon Metsäliitto Group's operating result excluding non-recurring items was EUR 250 million Result for the first half of 2010 - Sales EUR 2,641 million (1-6/2009: EUR 2,492 million). - Operating result excluding non-recurring items was EUR 250 million (-128), representing 9.5 per cent of sales (-5.1). Operating result including non-recurring items was EUR 246 million (-193). - Result before tax, excluding non-recurring items, was EUR 185 million (-181). Result before tax, including non-recurring items, was EUR 165 million (-257). Result for the second quarter of 2010 - Sales EUR 1,416 million (4-6/2009: EUR 1,213 million). - Operating result excluding non-recurring items was EUR 154 million (-61), representing 10.9 per cent of sales (-5.0). Operating result including non-recurring items was EUR 141 million (-56). - Result before tax, excluding non-recurring items, was EUR 130 million (-88). Result before tax, including non-recurring items, was EUR 102 million (-95). Events in the second quarter of 2010 - A particularly favourable market situation kept the demand for pulp good and prices up. - The demand for board remained good, and prices have been on the rise. - Metsä Tissue announced its plan to develop and strengthen its operations in Poland. The goal of the development programme is to concentrate papermaking and future investments at the Krapkowice mill. - Metsäliitto Wood Products Industry launched statutory labour negotiations at all of its operational sawmills in Finland. The negotiations were motivated by production-related and economic reasons, such as the poor availability of competitive wood raw material. “The growth seen in the first half of the year indicates that Metsäliitto Group has weathered the worst of the recession in good shape. The continued improvement of our result is largely due to uncompromising work on structural change, streamlining measures and a more favourable market situation. The improved market conditions give reason to assess that the result will remain at a good level also in the third quarter.” Kari Jordan, President & CEO, Metsäliitto Group Metsäliitto Group -------------------------------------------------------------------------------- | Income statement | 2010 | 2009 | 2010 | 2009 | 2009 | | (Continuing operations) | 1-6 | 1-6 | Q2 | Q2 | 1-12 | -------------------------------------------------------------------------------- | Sales | 2 641 | 2 492 | 1 416 | 1 213 | 4 837 | -------------------------------------------------------------------------------- | Other operating income | 47 | 84 | 16 | 43 | 353 | -------------------------------------------------------------------------------- | Operating expenses | -2 304 | -2 569 | -1 231 | -1 227 | -4 858 | -------------------------------------------------------------------------------- | Depreciation and impairment | -138 | -200 | -60 | -85 | -501 | | losses | | | | | | -------------------------------------------------------------------------------- | Operating result | 246 | -193 | 141 | -56 | -169 | -------------------------------------------------------------------------------- | Share of results in | -13 | -10 | -7 | -8 | -16 | | associates | | | | | | -------------------------------------------------------------------------------- | Exchange gains and losses | 0 | -4 | 2 | -1 | 2 | -------------------------------------------------------------------------------- | Other net financial items | -68 | -50 | -34 | -30 | -147 | -------------------------------------------------------------------------------- | Result before income tax | 165 | -257 | 102 | -95 | -329 | -------------------------------------------------------------------------------- | Income taxes | -63 | 25 | -40 | 7 | 10 | -------------------------------------------------------------------------------- | Result from continuing | 102 | -232 | 62 | -88 | -318 | | operations | | | | | | -------------------------------------------------------------------------------- Metsäliitto Group -------------------------------------------------------------------------------- | Profitability | 2010 | 2009 | 2010 | 2009 | 2009 | | (Continuing operations) | 1-6 | 1-6 | Q2 | Q2 | 1-12 | -------------------------------------------------------------------------------- | Operating result, EUR mill. | 246 | -193 | 141 | -56 | -169 | -------------------------------------------------------------------------------- | - “ -, excluding non-recurring | 250 | -128 | 154 | -61 | -75 | | items | | | | | | -------------------------------------------------------------------------------- | - “ - % of sales | 9.5 | -5.1 | 10.9 | -5.0 | -1.6 | -------------------------------------------------------------------------------- | Return on capital employed, % | 11.4 | -7.5 | 13.4 | -4.6 | -3.3 | -------------------------------------------------------------------------------- | - ” -, excluding non-recurring | 12.4 | -4.9 | 16.2 | -5.1 | -1.4 | | items | | | | | | -------------------------------------------------------------------------------- | Return on equity, % | 13.7 | -28.7 | 16.3 | -23.2 | -20.0 | -------------------------------------------------------------------------------- | - ” -, excluding non-recurring | 16.4 | -19.3 | 23.8 | -21.5 | -13.4 | | items | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial position | 2010 | 2009 | 2010 | 2009 | 2009 | | | 30.6. | 30.6 | 31.3 | 31.3. | 31.12. | -------------------------------------------------------------------------------- | Equity ratio, % | 27.6 | 25.6 | 27.1 | 24.8 | 24.5 | -------------------------------------------------------------------------------- | Net gearing ratio, % | 135 | 162 | 151 | 167 | 157 | -------------------------------------------------------------------------------- | Interest-bearing net | 2 109 | 2 348 | 2 241 | 2 666 | 2 203 | | liabilities, EUR mill. | | | | | | -------------------------------------------------------------------------------- Business segments -------------------------------------------------------------------------------- | Sales and | Wood | Wood | Pulp | Board | Tissue | | Operating | Supply | Product | Industr | and | and | | result | | s | y | Paper | Cooking | | January- | | Industr | | Industry | Papers | | June 2010 | | y | | | | | (EUR mill.) | | | | | | -------------------------------------------------------------------------------- | Sales | 670 | 448 | 656 | 1 278 | 456 | -------------------------------------------------------------------------------- | Other operating income | 5 | 5 | 11 | 32 | 3 | -------------------------------------------------------------------------------- | Operating expenses | -658 | -425 | -470 | -1 167 | -411 | -------------------------------------------------------------------------------- | Depreciation & impairment | -2 | -18 | -28 | -59 | -24 | | losses | | | | | | -------------------------------------------------------------------------------- | Operating result | 15 | 10 | 169 | 84 | 24 | -------------------------------------------------------------------------------- | Non-recurring items | - | 1 | -2 | -2 | 7 | -------------------------------------------------------------------------------- | Operating result | 15 | 11 | 167 | 82 | 31 | | excl. non-recurring items | | | | | | -------------------------------------------------------------------------------- The figures are unaudited METSÄLIITTO GROUP INTERIM REPORT 1 JANUARY - 30 JUNE 2010 Sales and result Metsäliitto Group's sales for January-June were EUR 2,641 million (1-6/2009: EUR 2,492 million). The corresponding figures for the previous period include, among other things, Metsä-Botnia's business in Uruguay and the holding in Vapo Oy. In the comparable period, the divestment of these operations had an impact of some EUR 250 million on sales. The operating result excluding non-recurring items was EUR 250 million (-128), representing 9.5 per cent of sales (-5.1). Net non-recurring items totalled EUR -4 million (-65) in the first half. In the first quarter, net non-recurring items amounted to EUR 9 million (-70) and in the second quarter, to EUR -13 million (5). M-real recognised a cost provision of approximately EUR 16 million related to the reorganisation projects at the Gohrsmühle and Reflex mills in Germany. A EUR 8 million reversal of the impairment loss recognised in connection with the shutdown of paper machine 2 at M-real's Kangas mill was made based on the agreed sale of the machine. Metsä-Botnia recognised net non-recurring items totalling some EUR 2 million. The items were related to a partial reversal of the impairment loss of the Kaskinen mill based on an agreed asset deal and specification of the cost provision. Metsä Tissue made write-downs and cost provisions worth EUR 7 million to reorganise its Polish operations. The second-quarter operating result excluding non-recurring items was EUR 154 million, representing 10.9 per cent of sales. The operating result improved both from the previous quarter (Q1/10: EUR 96 million and 7.8%) and from the corresponding period last year (Q2/09: EUR -61 million and -5.0%). Metsäliitto Group's operating result including non-recurring items was EUR 246 million (-193) in January-June. Finance income amounted to EUR 3 million (20) and finance costs to EUR 70 million (70). The finance costs for the comparable period include a profit of some EUR 31 million from the repurchase of a bond maturing in December 2010 and around EUR 8 million of valuation gains on interest rate hedges. The share of results in associates amounted to EUR -13 million (-10). The figure includes a EUR 16 million non-recurring impairment loss related to M-real's holding in Myllykoski Paper Oy. The figure for the comparable period includes a EUR 11 million non-recurring expense item related to the divestment of Myllykoski Paper's Sunila shares. Net exchange gains recognised in financial items were EUR 0 million (-4). In the first half, the British pound strengthened on average 3 per cent and the Swedish krona by 10 per cent year-over-year. The US dollar remained on average at the level of the comparable period against the euro. Compared to the situation at the end of 2009, the dollar had strengthened by 15 per cent, the pound by 8 per cent and the krona by 7 per cent by the end of June. The result before tax was EUR 165 million (-257), while taxes, including changes in deferred tax liabilities, totalled EUR -63 million (25). The result for continuing operations was EUR 102 million (-232), the result for discontinued operations was EUR 0 million (-13) and the result for the financial period was EUR 102 million (-245). The Group's return on capital employed for continuing operations was 11.4 per cent (-7.5), and the return on equity was 13.7 per cent (-28.7). Excluding non-recurring items, the return on capital employed was 12.4 per cent (-4.9) and return on equity was 16.4 per cent (-19.3). Balance sheet and financing Metsäliitto Group's total liquidity at the end of June was EUR 1.0 billion (31 December 2009: 1.4). Of this, EUR 0.4 billion (0.6) was in liquid assets and investments, and EUR 0.6 billion (0.8) was in off-balance-sheet binding credit facilities. In addition, the Group can satisfy short-term financial needs with non-binding commercial paper schemes in Finland and abroad, as well as with credit limits amounting to approximately EUR 0.5 billion. The Group's equity ratio in June was 27.6 per cent and net gearing totalled 135 per cent (31 December 2009: 24.5% and 157%). Interest-bearing net liabilities stood at EUR 2,109 million (31 December 2009: 2,203). The equity ratio of the parent company, Metsäliitto Cooperative, was 57.4 per cent at the end of June and net gearing was 49 per cent (31 December 2009: 57.2% and 50%). The change in the fair value of investments available for sale was approximately EUR 24 million, mainly based on the increase in the fair value of the Pohjolan Voima shares. Metsäliitto Cooperative's members' capital grew by EUR 56.9 million in January-June. The actual members' capital grew by EUR 4.6 million, the additional members' capital A by EUR 26.1 million and the additional members' capital B by EUR 13.3 million. New additional members' capital C had been subscribed for with EUR 12.9 million. At the end of June, Metsäliitto Cooperative had 126,074 members (31 December 2009: 127,158). At its meeting on 5 May 2010, Metsäliitto Cooperative's Representative Council decided to pay an interest of 5.5 per cent (5.5) on the subscribed members' capital, 5.0 per cent (5.0) on the additional A series capital and 4.5 per cent (4.5) on the additional B series capital for 2009. The interest on member's capital for 2009 totalled EUR 35.6 million (37.4). After the period, EUR 35.6 million of the additional members' capital fell due for refund on 1 July 2010. At the end of June, Metsäliitto drew pension loans (TyEL) worth EUR 65 million and M-real worth EUR 135 million. At the end of June, M-real announced it would exercise its right to redeem early the remaining part of its bond maturing on 15 December 2010. The redemption took place on 30 July 2010, and the nominal value of the loan was some EUR 90 million. Capital programme In January, Metsäliitto announced that it will launch a capital programme with the purpose of strengthening its equity to correspond to the company's current and future business structure. The assets to be accrued will be mainly used for financing new business operations. In the context of the programme, Metsäliitto issued a new additional members' capital C, which offers owners the opportunity to gain additional profit as cash payments, in addition to getting interest on members' capital. The amount of additional profit depends on the price development of M-real Corporation's B share on the Helsinki Stock Exchange. At the beginning of May, Metsäliitto Corporation decided to extend the subscription period for members' capital C until 31 December 2010 or until the additional C shares (30 million) have been fully subscribed. The additional members' capital C was issued on 15 February 2010, and the subscription period had originally been set to end on 14 May 2010. Personnel The Group had an average of 13,098 employees (15,308) in January-June. At the end of June, the head count was 13,405 (31 December 2009: 13,592). The parent company, Metsäliitto Cooperative, had 2,393 employees at the end of June (31 December 2009: 2,248). Investments Metsäliitto Group's gross capital expenditure totalled EUR 43 million (74). The modernisation of Metsä Tissue's paper machine 10 at the Mänttä mill was completed ahead of schedule, and the first products were run in late April. The investment, worth some EUR 6 million, will improve product quality, reduce water consumption and decrease the need for energy. In February, Metsä-Botnia's Board of Directors decided on major renovation investments at the Kemi mill. The mill area will get brand new causticisation and water stations. The total value of the investment is some EUR 40 million. Construction work will begin in October 2010, and the new stations will come online at the end of 2011. Business areas Wood Supply Wood Supply sales in January-June were EUR 670 million (577), and the operating result amounted to EUR 15 million (9). The operating result does not include non-recurring items. Wood Supply Finland accounted for EUR 463 million (441) of the sales and EUR 8 million (6) of the operating result. The second-quarter sales were EUR 337 million (Q2/09: 251), and the operating result was EUR 8 million (Q2/09: 4). Wood sales, which were sluggish in the early part of the year, picked up in May. Nevertheless, purchase volumes did not rise to a level sufficient for industry. Metsäliitto's purchase volume in the second quarter fell slightly short of the period's target. Harvesting conditions were good in the early part of the year, and stands marked for felling were harvested as planned. The wood energy business was expanded in the early part of the year, and new delivery contracts boosted Metsäliitto's market position. Metsäliitto supplies energy wood to some 60 plants. Wood supply was a central theme at member events held around Finland in connection with the capital programme. The demand for forestry services continued to rise, and the resources of Metsämannut Oy, which provides the services, were increased. Forestry work was completed according to plans. In Russia and the Baltic countries, the demand for wood exceeded the supply. In Russia, winter logging sites did not offer the normal volumes of wood. In the Baltic countries, most of the wood for sale came from state-owned forests. Deliveries to Finland and Sweden increased considerably once the tough ice conditions this spring eased. The demand for wood also exceeded the supply in Sweden. Metsäliitto Wood Supply's entire delivery volume to production plants in the first half of the year was 15.3 million cubic metres (12.7). Wood Products The sales of Metsäliitto Wood Products Industry were EUR 448 million (425) in January-June, and the operating result totalled EUR 11 million (-35). Non-recurring items recognised in the first half of the year amounted to EUR -1 million net (0). The positive performance development resulted from the increase in sawn timber price, which has compensated for the rise in log costs. Supply and demand were in balance in the sawn timber market. The second-quarter sales were EUR 256 million (Q2/09: 224), and the operating result was EUR 10 million (Q2/09: -10). The construction market picked up considerably in the second quarter, following the cold and snowy winter in Europe. However, construction volumes remained quite low in the main market areas, with the exception of Finland. The demand for industrial processed products improved slightly in the second quarter, but overall demand was still at a relatively low level. The performance improvement seen in processed products and engineered wood products was partly weakened by the rapid increase in raw material prices, which could not be transferred in full to the prices of finished products. The garden range was expanded by launching new products on the domestic and international markets. A new kind of concrete shuttering panel was launched for industrial customers. After the reporting period, an agreement was signed on the divestment of the machinery and equipment of the Soinlahti sawmill to Anaika Wood Ltd Oy and of the buildings and land area belonging to the sawmill site to Iisalmen Teollisuuskylä Oy. Pulp Metsä-Botnia's sales in the first half increased by 66 per cent year-over-year, amounting to EUR 656 million (395). The operating result excluding non-recurring items totalled EUR 166 million (-105). Sales increased by 28 percent from the first to the second quarter, totalling EUR 368 million (Q1/10: 288). The operating result excluding non-recurring items nearly doubled, amounting to EUR 109 million (Q1/10: 57). The considerable improvement in sales and operating result came about from the market picking up and the pulp price rising steeply. The stocks of both producers and customers are still very low, and the demand for pulp has remained good. Pulp sale volumes were up 15 per cent year-over-year. Foreign currency-denominated market prices for softwood pulp were, on average, 52 per cent higher in the first half of the year compared with the corresponding period last year. The average prices of hardwood pulp increased by 62 per cent. The price of softwood pulp in Europe was USD 830 at the beginning of the year and USD 980 at the end of the period. The corresponding figures for hardwood pulp were USD 730 and USD 920. Under a deal signed on 28 June 2010, Metsä-Botnia sold some of the old machinery of the Kaskinen pulp mill, which was shut down in March 2009, to an Asian buyer. The dismantling of the machinery included in the deal will begin in early August. Pulp Industry (Metsä-Botnia) has been consolidated in the financial statements of Metsäliitto Group as a subsidiary from 8 December 2009 onwards. Prior to that, 53 per cent of Metsä-Botnia had been consolidated using proportionate consolidation. Metsä-Botnia has treated its business operations in Uruguay as discontinued operations in accordance with the IFRS 5 standard. For this reason, the Uruguay operations are not included in the sales and operating profit figures presented above for 2009. Board and Paper The sales of Board and Paper totalled EUR 1,278 million (1,208), and the operating result excluding non-recurring items was EUR 82 million (-135). The operating profit was boosted by higher delivery volumes resulting from the recovery in general demand, as well as by higher pulp prices and the cost savings carried out. Non-recurring items in the operating profit totalled EUR 2 million net (-56) in January-June. A non-recurring income item of EUR 10 million, resulting from the release of IT cost provisions made at the end of 2008, was recognised in the first quarter. In the second quarter, M-real recognised a cost provision of approximately EUR 16 million related to the reorganisation projects at the Gohrsmühle and Reflex mills in Germany. A EUR 8 million reversal of the impairment loss recognised in connection with the shutdown of paper machine 2 at M-real's Kangas mill was made based on the agreed sale of the machine. The operating result including non-recurring items totalled EUR 84 million (-191). Net interest and other financial expenses amounted to EUR 33 million (10). The figure for the comparable period includes a profit of some EUR 31 million from the repurchase of a bond maturing in December 2010 and around EUR 9 million of valuation gains on interest rate hedges. The share of results in associates amounted to EUR -20 million (-13). The figure includes a EUR 16 million non-recurring impairment loss related to M-real's holding in Myllykoski Paper Oy. The figure for the comparable period includes a EUR 11 million non-recurring expense item related to the divestment of Myllykoski Paper's Sunila shares. Exchange differences from accounts receivable, trade payables, financial items and the valuation of currency hedging were EUR -6 million (2). The result before tax was EUR 25 million (-212), earnings per share were EUR 0.03 (-0.61) and return on capital employed was 6.1 per cent (-11.5). Excluding non-recurring items, the result before tax was EUR 39 million (-145), earnings per share were EUR 0.08 (-0.42) and the return on capital employed was 7.3 per cent (-7.3). At the end of June, M-real's equity ratio was 31.1 per cent and net gearing amounted to 89 per cent (31 December 2009: 29.6% and 84%, respectively). Some of M-real's loan agreements set a 120 per cent limit on the company's gearing ratio and a 30 per cent limit on the equity ratio. At the end of June, gearing calculated in the manner defined in the borrowing agreements was approximately 67 per cent and the equity ratio about 37 per cent. On 25 January 2010 M-real decided to exercise its right to redeem early part of its bond maturing on 15 December 2010. The outstanding nominal amount before the redemption was approximately EUR 340 million. The total par value of redemption was EUR 250 million. In June, M-real announced it would redeem the remaining part of the bond. The redemption took place on 30 July 2010, and the nominal value of the loan was some EUR 90 million. Tissue and Cooking Papers The first-half sales of Metsä Tissue, producer of tissue and cooking papers, totalled EUR 456 million (435). Sales were up by some five per cent year-over-year thanks to bigger sale volumes (3%) and favourable exchange differences (2%). The sale of Metsä Tissue's own brands increased by 12 per cent year-over-year. The operating profit excluding non-recurring items was EUR 31 million (41). It was weakened by the steeply rising prices of raw materials, pulp and - especially in the second quarter - recycled paper. The operating result including non-recurring items was EUR 24 million (41). A development plan for operations in Poland was published in May. The plan aims to strengthen the company's position on the Polish market, use investments to increase production capacity, as well as to further enhance the product, brand and service offering. The objective is to centralise the Polish paper production at the company's Krapkowice mill and to shut down papermaking at the Konstancin-Jeziorna mill by the end of 2012. A total of EUR 7 million was recognised as write-downs and cost provisions related to the Polish development project in the second quarter. In June, the company announced a development programme related to the Baking & Cooking business. In connection with it, Metsä Tissue signed a letter of intent on the purchase of a speciality paper machine (PM5), the related equipment and fixed assets from M-real's Reflex mill in Germany. Metsä Tissue also announced the launch of statutory labour negotiations concerning the personnel at the Mänttä mill and Baking & Cooking employees working in Finland. The goal is to enhance operations and ensure profitability. The modernisation of paper machine 10 at the Mänttä mill was completed in April, ahead of schedule. The investment has improved energy efficiency and raised the quality of Lambi, Serla and Katrin products. This spring, Metsä Tissue introduced two napkin machines at the Pauliström mill in Sweden. These production lines and the ones in Germany jointly generate synergies and improve the reliability of the company's deliveries. Risks and uncertainties Since the estimates and statements in this interim report are based on current plans and projections, they involve risks and uncertainties that may cause prospects to materially differ from those expressed in such statements. The risks related to the Group's business have been explained more extensively in Metsäliitto Group's annual report for 2009. Events after the period In December 2009, M-real initiated cooperation procedures concerning a possible shutdown of its Alizay pulp mill in France. In July, M-real announced the permanent closure of the mill because it had not found the required economic prerequisites for continuing operations. As a result of the completed cooperation procedures, M-real will recognise a non-recurring additional cost provision of some EUR 4 million in its third-quarter operating profit. For the possible closure of its mill, M-real already recognised a cost provision of some EUR 13 million in December 2009. In July, M-real purchased the former Kangas paper mill facilities and land area from Sappi Limited for a price of EUR 13 million. The deal was part of an agreement with which M-real and Sappi finally settled the issues still open after the divestment of M-real's Graphic Papers business area in 2008. M-real plans to develop the Kangas facilities, located near the centre of Jyväskylä, jointly with the planning authorities and any other partners. In July, Metsäliitto's Wood Products Industry signed an agreement on the divestment of the machinery and equipment of the Soinlahti sawmill, located in Iisalmi, Finland, to Anaika Wood Ltd Oy. The agreement also included a long-term wood supply agreement between Metsäliitto Wood Supply and Anaika Wood. The buildings and land area belonging to the sawmill site were sold to Iisalmen Teollisuuskylä Oy. Metsäliitto shut down the sawmill at the beginning of 2009. Near-term outlook The demand for all timber grades will remain good. Member services and the wood energy business will continue to be developed determinedly. The operating result of Wood Products Industry is expected to weaken slightly in the third quarter due to smaller production volumes during the holiday season. The availability of wood raw material and the price development in relation to the prices of finished products will also have an impact on the result. The demand for end products is not expected to change extensively. The market situation for pulp is expected to remain good in the third quarter, although the market will see new capacity, especially in hardwood pulp. Metsä-Botnia's profitability is expected to remain strong. The demand for board is expected to remain good also in the third quarter. The prices of folding boxboard and liner were raised in the first half of the year. The efforts to raise prices will continue. The demand for uncoated fine paper is expected to continue to be strong. In order to compensate for the higher fibre costs, prices were raised in the first half of the year. Price increase measures will continue, and prices are expected to be somewhat higher at the end of the third quarter compared to the end of the second quarter. In 2010, M-real's third-quarter operating result excluding non-recurring items is expected to improve from the second quarter. The demand for tissue and cooking papers is expected to remain steady. The high pulp and recycled paper prices will continue to cause cost pressure, which will be compensated for with increases in sale prices. The market situation is expected to remain satisfactory in the following quarter. Metsäliitto Group estimates the third-quarter operating result excluding non-recurring items to be roughly at the same level as in the second quarter. Espoo, 5 August 2010 Metsäliitto Group Board of Directors Further information: Hannu Anttila, Executive Vice President, Strategy, Metsäliitto Group, tel. +358 10 465 5111 Anne-Mari Achrén, Group CCO, Metsäliitto Group, tel. +358 10 465 4541 Unaudited METSÄLIITTO GROUP -------------------------------------------------------------------------------- | Condensed consolidated | 2010 | 2009 | Chang | 2010 | 2009 | 2009 | | statement | 1-6 | 1-6 | e | Q2 | Q2 | 1-12 | | of comprehensive income, | | | | | | | | EUR mill. | | | | | | | -------------------------------------------------------------------------------- | Continuing operations | | | | | | | -------------------------------------------------------------------------------- | Sales | 2 641 | 2 492 | 149 | 1 416 | 1 213 | 4 837 | -------------------------------------------------------------------------------- | Other operating income | 47 | 84 | -37 | 16 | 43 | 353 | -------------------------------------------------------------------------------- | Operating expenses | -2 | -2 | 265 | -1 | -1 227 | -4 858 | | | 304 | 569 | | 231 | | | -------------------------------------------------------------------------------- | Depreciation and | -138 | -200 | 62 | -60 | -85 | -501 | | impairment losses | | | | | | | -------------------------------------------------------------------------------- | Operating result | 246 | -193 | 439 | 141 | -56 | -169 | -------------------------------------------------------------------------------- | Share of results in | -13 | -10 | -3 | -7 | -8 | -16 | | associated companies | | | | | | | -------------------------------------------------------------------------------- | Exchange gains and losses | 0 | -4 | 4 | 2 | -1 | 2 | -------------------------------------------------------------------------------- | Other net financial items | -68 | -50 | -18 | -34 | -30 | -147 | -------------------------------------------------------------------------------- | Result before income tax | 165 | -257 | 422 | 102 | -95 | -329 | -------------------------------------------------------------------------------- | Income taxes | -63 | 25 | -88 | -40 | 7 | 10 | -------------------------------------------------------------------------------- | Result for the period | 102 | -232 | 334 | 62 | -88 | -318 | | from continuing operations | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Discontinued operations | | | | | | | -------------------------------------------------------------------------------- | Result from discontinued | 0 | -13 | 13 | 0 | -3 | -23 | | operations | | | | | | | -------------------------------------------------------------------------------- | Result for the period | 102 | -245 | 347 | 62 | -91 | -342 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other comprehensive income | | | | | | | -------------------------------------------------------------------------------- | Cash flow hedges | -1 | 15 | -15 | -2 | 18 | 35 | -------------------------------------------------------------------------------- | Available for sale | 24 | -128 | 152 | 6 | -62 | -103 | | financial assets | | | | | | | -------------------------------------------------------------------------------- | Currency translation | 18 | -2 | 21 | 6 | -12 | -15 | | differences | | | | | | | -------------------------------------------------------------------------------- | Other items | 0 | 0 | 0 | -3 | -2 | 0 | -------------------------------------------------------------------------------- | Income tax relating to | -1 | 31 | -32 | 1 | 10 | 23 | | components | | | | | | | | of other comprehensive | | | | | | | | income | | | | | | | -------------------------------------------------------------------------------- | Other comprehensive | 40 | -85 | 125 | 8 | -48 | -60 | | income, | | | | | | | | net of tax | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive income | 142 | -329 | 472 | 70 | -139 | -402 | | for the period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Result attributable to: | | | | | | | -------------------------------------------------------------------------------- | Members of parent company | 79 | -119 | 198 | 57 | -35 | -116 | -------------------------------------------------------------------------------- | Non-controlling interests | 23 | -125 | 149 | 5 | -56 | -226 | -------------------------------------------------------------------------------- | | 102 | -245 | 347 | 62 | -91 | -342 | -------------------------------------------------------------------------------- | Total comprehensive income | | | | | | | | attributable to: | | | | | | | -------------------------------------------------------------------------------- | Members of parent company | 103 | -156 | 259 | 61 | -58 | -150 | -------------------------------------------------------------------------------- | Non-controlling interests | 39 | -173 | 213 | 9 | -81 | -252 | -------------------------------------------------------------------------------- | | 142 | -329 | 472 | 70 | -139 | -402 | -------------------------------------------------------------------------------- Unaudited -------------------------------------------------------------------------------- | Condensed consolidated balance sheet | 2010 | 2009 | 2009 | | | 30.6. | 30.6. | 31.12. | -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | Non-current | | | | -------------------------------------------------------------------------------- | Goodwill | 502 | 165 | 493 | -------------------------------------------------------------------------------- | Other intangible assets | 250 | 77 | 245 | -------------------------------------------------------------------------------- | Tangible assets | 2 344 | 2 141 | 2 428 | -------------------------------------------------------------------------------- | Biological assets | 8 | 5 | 7 | -------------------------------------------------------------------------------- | Investments in associated companies | 84 | 102 | 98 | -------------------------------------------------------------------------------- | Available for sale investments | 370 | 330 | 356 | -------------------------------------------------------------------------------- | Non-current financial assets | 13 | 228 | 12 | -------------------------------------------------------------------------------- | Deferred tax receivables | 64 | 71 | 58 | -------------------------------------------------------------------------------- | | 3 635 | 3 120 | 3 697 | -------------------------------------------------------------------------------- | Current | | | | -------------------------------------------------------------------------------- | Inventories | 708 | 668 | 669 | -------------------------------------------------------------------------------- | Accounts receivables and other receivables | 923 | 791 | 797 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 401 | 350 | 558 | -------------------------------------------------------------------------------- | | 2 032 | 1 809 | 2 024 | -------------------------------------------------------------------------------- | Assets classified as held for sale | 21 | 731 | 9 | -------------------------------------------------------------------------------- | Total assets | 5 688 | 5 660 | 5 730 | -------------------------------------------------------------------------------- | MEMBERS' FUNDS AND LIABILITIES | | | | -------------------------------------------------------------------------------- | Members' funds | | | | -------------------------------------------------------------------------------- | Members' funds | 1 056 | 937 | 927 | -------------------------------------------------------------------------------- | Non-controlling interests | 507 | 510 | 471 | -------------------------------------------------------------------------------- | | 1 563 | 1 447 | 1 399 | -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 395 | 249 | 382 | -------------------------------------------------------------------------------- | Post-employment benefit obligations | 115 | 124 | 122 | -------------------------------------------------------------------------------- | Provisions | 82 | 54 | 76 | -------------------------------------------------------------------------------- | Borrowings | 1 563 | 2 393 | 1 976 | -------------------------------------------------------------------------------- | Other liabilities | 36 | 37 | 134 | -------------------------------------------------------------------------------- | | 2 191 | 2 857 | 2 689 | -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Provisions | 27 | 37 | 52 | -------------------------------------------------------------------------------- | Current borrowings | 964 | 378 | 798 | -------------------------------------------------------------------------------- | Accounts payable and other liabilities | 943 | 700 | 787 | -------------------------------------------------------------------------------- | | 1 934 | 1 115 | 1 637 | -------------------------------------------------------------------------------- | Liabilities classified as held for sale | - | 240 | 6 | -------------------------------------------------------------------------------- | Total liabilities | 4 125 | 4 213 | 4 331 | -------------------------------------------------------------------------------- | Total members' funds and liabilities | 5 688 | 5 660 | 5 730 | -------------------------------------------------------------------------------- Non-current portion of derivative financial instruments have been transferred to non-current financial assets from accounts receivables and other receivables (QII/09: EUR 0 mill. and QIV/09: EUR 2 mill.). Non-current portion of derivative financial instruments have been transferred to other liabilities from accounts payable and other liabilities (QII/09: EUR 19 mill. and QIV/09: EUR 19 mill.). Unaudited Equity attributable to members of parent company -------------------------------------------------------------------------------- | Change | Members | Share | Tran | Fair | Retai- | Total | Non- | Total | | in | ' | premiu | sla | value | ned | | contro | | | members' | capital | m | tion | and | ear ni | | lling | | | funds | | accoun | diff | other | ngs | | intere | | | EUR | | t | er | reser | | | sts | | | million | | | ence | ves | | | | | | | | | s | | | | | | -------------------------------------------------------------------------------- | Members' | 585 | 30 | -5 | 165 | 329 | 1 104 | 682 | 1 786 | | funds | | | | | | | | | | 1.1.2009 | | | | | | | | | -------------------------------------------------------------------------------- | Result | | | | | -119 | -119 | -125 | -245 | | for | | | | | | | | | | the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | | | | compre- | | | | | | | | | | hensive | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- | Cash | | | | 6 | | 6 | 8 | 15 | | flow | | | | | | | | | | hedges | | | | | | | | | -------------------------------------------------------------------------------- | Availabl | | | | -54 | | -54 | -74 | -129 | | e | | | | | | | | | | for sale | | | | | | | | | | financia | | | | | | | | | | l | | | | | | | | | | assets | | | | | | | | | -------------------------------------------------------------------------------- | Currency | | | -3 | | | -3 | 1 | -2 | | translat | | | | | | | | | | ion | | | | | | | | | | differen | | | | | | | | | | ces | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Income | | | 2 | 13 | | 14 | 17 | 31 | | tax | | | | | | | | | | relating | | | | | | | | | | to | | | | | | | | | | componen | | | | | | | | | | ts | | | | | | | | | | of other | | | | | | | | | | compre- | | | | | | | | | | hensive | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Transact | | | | | | | | | | ions | | | | | | | | | | with | | | | | | | | | | owners | | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | -35 | -35 | -1 | -37 | | s | | | | | | | | | | paid | | | | | | | | | -------------------------------------------------------------------------------- | Change | 24 | | | | | 24 | | 24 | | in | | | | | | | | | | members' | | | | | | | | | | capital | | | | | | | | | -------------------------------------------------------------------------------- | Transfer | | | | | | | | | | from | | | | | | | | | | unrestri | | | | | | | | | | cted | | | | | | | | | | to | | | | | | | | | | restrict | | | | | | | | | | ed | | | | | | | | | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Business | | | 2 | -2 | | 0 | 3 | 3 | | arrange- | | | | | | | | | | ments | | | | | | | | | -------------------------------------------------------------------------------- | Members' | 609 | 30 | -4 | 128 | 174 | 937 | 510 | 1 447 | | funds | | | | | | | | | | 30.6.200 | | | | | | | | | | 9 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Members' | 484 | 30 | 9 | 221 | 184 | 927 | 471 | 1 399 | | funds | | | | | | | | | | 1.1.2010 | | | | | | | | | -------------------------------------------------------------------------------- | Result | | | | | 79 | 79 | 23 | 102 | | for | | | | | | | | | | the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | | | | compre- | | | | | | | | | | hensive | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- | Cash | | | | 4 | | 4 | -4 | -1 | | flow | | | | | | | | | | hedges | | | | | | | | | -------------------------------------------------------------------------------- | Availabl | | | | 11 | | 11 | 14 | 24 | | e | | | | | | | | | | for sale | | | | | | | | | | financia | | | | | | | | | | l | | | | | | | | | | assets | | | | | | | | | -------------------------------------------------------------------------------- | Currency | | | 12 | | | 12 | 6 | 18 | | translat | | | | | | | | | | ion | | | | | | | | | | differen | | | | | | | | | | ces | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Income | | | 2 | -4 | | -1 | | -1 | | tax | | | | | | | | | | relating | | | | | | | | | | to | | | | | | | | | | componen | | | | | | | | | | ts | | | | | | | | | | of other | | | | | | | | | | compre- | | | | | | | | | | hensive | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Transact | | | | | | | | | | ions | | | | | | | | | | with | | | | | | | | | | owners | | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | | -32 | -32 | -4 | -35 | | s | | | | | | | | | | paid | | | | | | | | | -------------------------------------------------------------------------------- | Change | 57 | | | | | 57 | | 57 | | in | | | | | | | | | | members' | | | | | | | | | | capital | | | | | | | | | -------------------------------------------------------------------------------- | Transfer | | | | 9 | -9 | 0 | | 0 | | from | | | | | | | | | | unrestri | | | | | | | | | | cted | | | | | | | | | | to | | | | | | | | | | restrict | | | | | | | | | | ed | | | | | | | | | | equity | | | | | | | | | -------------------------------------------------------------------------------- | Business | | | | | | | | | | arrange- | | | | | | | | | | ments | | | | | | | | | -------------------------------------------------------------------------------- | Members' | 541 | 30 | 23 | 240 | 222 | 1 056 | 507 | 1 563 | | funds | | | | | | | | | | 30.6.201 | | | | | | | | | | 0 | | | | | | | | | -------------------------------------------------------------------------------- Unaudited -------------------------------------------------------------------------------- | Condensed consolidated cash flow statement | 2010 | 2009 | 2009 | | | 1-6 | 1-6 | 1-12 | -------------------------------------------------------------------------------- | Result for the period | 102 | -245 | -342 | -------------------------------------------------------------------------------- | Total adjustments | 231 | 209 | 469 | -------------------------------------------------------------------------------- | Change in working capital | -154 | 103 | 231 | -------------------------------------------------------------------------------- | Cash flow arising from operations | 179 | 67 | 359 | -------------------------------------------------------------------------------- | Net financial items | -81 | -8 | -84 | -------------------------------------------------------------------------------- | Income taxes paid | -16 | 6 | 0 | -------------------------------------------------------------------------------- | Net cash flow arising from operating activities | 83 | 65 | 275 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Acquisitions | -2 | -4 | -496 | -------------------------------------------------------------------------------- | Investments in tangible and | -42 | -70 | -152 | | intangible assets | | | | -------------------------------------------------------------------------------- | Divestments of assets and other | 22 | 155 | 940 | -------------------------------------------------------------------------------- | Net cash flow arising from investing activities | -22 | 80 | 291 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in members' funds | 57 | 24 | -57 |-------------------------------------------------------------------------------- | Change in long-term loans | -238 | -376 | -530 | | and other financial items | | | | -------------------------------------------------------------------------------- | Dividends paid | -40 | -40 | -40 | -------------------------------------------------------------------------------- | Net cash flow arising from financing activities | -222 | -391 | -626 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Changes in cash and cash equivalents | -160 | -246 | -60 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents at beginning of period | 558 | 619 | 619 | -------------------------------------------------------------------------------- | Translation difference | 3 | 1 | -1 | -------------------------------------------------------------------------------- | Changes in cash and cash equivalents | -160 | -246 | -60 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 0 | -25 | -1 | | in assets classified as held for sale | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at end of period | 401 | 350 | 558 | -------------------------------------------------------------------------------- Unaudited BUSINESS SEGMENTS -------------------------------------------------------------------------------- | Wood Supply | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 | -------------------------------------------------------------------------------- | Sales | 670 | 577 | 337 | 251 | 1 101 | -------------------------------------------------------------------------------- | EBITDA | 17 | 10 | 9 | 4 | -5 | -------------------------------------------------------------------------------- | - ” -, excl. | 17 | 10 | 9 | 4 | 16 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Depreciation and | -2 | -2 | -1 | -1 | -4 | | impairment | | | | | | -------------------------------------------------------------------------------- | Operating result | 15 | 9 | 8 | 4 | -9 | -------------------------------------------------------------------------------- | - ” -, excl. | 15 | 9 | 8 | 4 | 12 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Capital expenditure | 0 | 1 | 0 | 0 | 2 | -------------------------------------------------------------------------------- | Personnel at end of | 1 047 | 990 | 1 047 | 990 | 945 | | period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Wood Products Industry | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 | -------------------------------------------------------------------------------- | Sales | 448 | 425 | 256 | 224 | 806 | -------------------------------------------------------------------------------- | EBITDA | 28 | -15 | 20 | 0 | -2 | -------------------------------------------------------------------------------- | - ” -, excl. | 29 | -15 | 20 | 0 | -2 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Depreciation and | -18 | -20 | -9 | -10 | -45 | | impairment | | | | | | -------------------------------------------------------------------------------- | Operating result | 10 | -35 | 11 | -10 | -47 | -------------------------------------------------------------------------------- | - ” -, excl. | 11 | -35 | 11 | -10 | -41 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Capital expenditure | 7 | 4 | 3 | 3 | 10 | -------------------------------------------------------------------------------- | Personnel at end of | 2 773 | 3 206 | 2 773 | 3 206 | 3 110 | | period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Pulp Industry | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 | -------------------------------------------------------------------------------- | Sales | 656 | 585 | 368 | 282 | 1 195 | -------------------------------------------------------------------------------- | EBITDA | 197 | -38 | 119 | -9 | 366 | -------------------------------------------------------------------------------- | - ” -, excl. | 206 | -21 | 128 | -9 | 71 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Depreciation and | -28 | -126 | -7 | -33 | -173 | | impairment | | | | | | -------------------------------------------------------------------------------- | Operating result | 169 | -165 | 112 | -42 | 193 | -------------------------------------------------------------------------------- | - ” -, excl. | 167 | -90 | 110 | -42 | -43 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Capital expenditure | 4 | 20 | 4 | 10 | 53 | -------------------------------------------------------------------------------- | Personnel at end of | 956 | 1 753 | 956 | 1 753 | 1 106 | | period | | | | | | -------------------------------------------------------------------------------- Pulp Industry (Metsä-Botnia) has been consolidated as a subsidiary from 8 December 2009 onwards. Before that, 53% of Metsä-Botnia has been consolidated using the proportional consolidation method (M-real 30% and Metsäliitto 23%). -------------------------------------------------------------------------------- | Board and Paper Industry | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 | -------------------------------------------------------------------------------- | Sales | 1 278 | 1 208 | 676 | 585 | 2 432 | -------------------------------------------------------------------------------- | EBITDA | 143 | -71 | 61 | -23 | 88 | -------------------------------------------------------------------------------- | - ” -, excl. | 149 | -33 | 77 | -20 | 44 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Depreciation and | -59 | -120 | -26 | -51 | -356 | | impairment | | | | | | -------------------------------------------------------------------------------- | Operating result | 84 | -191 | 35 | -73 | -267 | -------------------------------------------------------------------------------- | - ” -, excl. | 82 | -135 | 43 | -70 | -150 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Capital expenditure | 17 | 32 | 10 | 16 | 73 | -------------------------------------------------------------------------------- | Personnel at end of | 4 946 | 6 080 | 4 946 | 6 080 | 4 903 | | period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Tissue and Cooking Papers | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 | -------------------------------------------------------------------------------- | Sales | 456 | 435 | 231 | 217 | 890 | -------------------------------------------------------------------------------- | EBITDA | 49 | 62 | 19 | 33 | 135 | -------------------------------------------------------------------------------- | - ” -, excl. | 52 | 62 | 23 | 33 | 135 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Depreciation and | -24 | -21 | -14 | -10 | -42 | | impairment | | | | | | -------------------------------------------------------------------------------- | Operating result | 24 | 41 | 5 | 22 | 93 | -------------------------------------------------------------------------------- | - ” -, excl. | 31 | 41 | 12 | 22 | 93 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Capital expenditure | 11 | 11 | 7 | 7 | 35 | -------------------------------------------------------------------------------- | Personnel at end of | 3 254 | 3 274 | 3 254 | 3 274 | 3 150 | | period | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other operations | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 | -------------------------------------------------------------------------------- | Sales | 2 | 164 | 2 | 72 | 170 | -------------------------------------------------------------------------------- | EBITDA | -4 | 47 | -2 | 32 | 69 | -------------------------------------------------------------------------------- | - ” -, excl. | -4 | 20 | -2 | 5 | 21 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Depreciation and | -1 | -10 | 0 | -5 | -11 | | impairment | | | | | | -------------------------------------------------------------------------------- | Operating result | -5 | 37 | -2 | 27 | 59 | -------------------------------------------------------------------------------- | - ” -, excl. | -5 | 10 | -2 | 0 | 11 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Capital expenditure | 2 | 22 | 2 | 11 | 516 | -------------------------------------------------------------------------------- | Personnel at end of | 428 | 425 | 428 | 425 | 378 | | period | | | | | | -------------------------------------------------------------------------------- Other operations include Vapo Group (49.9%) until June 24, 2009 and Metsäliitto's service and holding functions. -------------------------------------------------------------------------------- | Internal sales | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 | | and eliminations | | | | | | -------------------------------------------------------------------------------- | Sales | -869 | -903 | -454 | -417 | -1 758 | -------------------------------------------------------------------------------- | EBITDA | -45 | 12 | -26 | -10 | -319 | -------------------------------------------------------------------------------- | - ” -, excl. | -45 | 18 | -26 | 10 | -40 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Depreciation and | -6 | 98 | -3 | 26 | 129 | | impairment | | | | | | -------------------------------------------------------------------------------- | Operating result | -52 | 110 | -29 | 16 | -190 | -------------------------------------------------------------------------------- | - ” -, excl. | -51 | 71 | -29 | 35 | 45 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Metsäliitto Group | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 | -------------------------------------------------------------------------------- | Sales | 2 641 | 2 492 | 1 416 | 1 213 | 4 837 | -------------------------------------------------------------------------------- | EBITDA | 384 | 7 | 201 | 29 | 332 | -------------------------------------------------------------------------------- | - ” -, excl. | 403 | 41 | 229 | 24 | 246 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Depreciation and | -138 | -200 | -60 | -85 | -501 | | impairment | | | | | | -------------------------------------------------------------------------------- | Operating result | 246 | -193 | 141 | -56 | -169 | -------------------------------------------------------------------------------- | - ” -, excl. | 250 | -128 | 154 | -61 | -75 | | non-recurring items | | | | | | -------------------------------------------------------------------------------- | Capital expenditure | 43 | 74 | 27 | 38 | 648 | -------------------------------------------------------------------------------- | Personnel at end of | 13 405 | 14 378 | 13 405 | 14 378 | 13 592 | | period | | | | | | -------------------------------------------------------------------------------- EBITDA = Operating result before depreciation and impairment losses. Unaudited -------------------------------------------------------------------------------- | Quarterly data | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | | | QII | QI | QIV | QIII | QII | QI | -------------------------------------------------------------------------------- | Sales | | | | | | | -------------------------------------------------------------------------------- | Wood Supply | 337 | 333 | 292 | 232 | 251 | 327 | -------------------------------------------------------------------------------- | Wood Products Industry | 256 | 192 | 193 | 188 | 224 | 202 | -------------------------------------------------------------------------------- | Pulp Industry | 368 | 288 | 297 | 313 | 282 | 303 | -------------------------------------------------------------------------------- | Board and Paper Industry | 676 | 602 | 606 | 618 | 585 | 623 | -------------------------------------------------------------------------------- | Tissue and Cooking Papers | 231 | 225 | 229 | 226 | 217 | 218 | -------------------------------------------------------------------------------- | Other operations | 2 | 0 | 4 | 3 | 72 | 92 | -------------------------------------------------------------------------------- | Internal sales and | -454 | -415 | -431 | -425 | -418 | -487 | | eliminations | | | | | | | -------------------------------------------------------------------------------- | Sales total | 1 416 | 1 224 | 1 190 | 1 155 | 1 213 | 1 278 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating result | | | | | | | -------------------------------------------------------------------------------- | Wood Supply | 8 | 7 | -17 | -1 | 4 | 5 | -------------------------------------------------------------------------------- | Wood Products Industry | 11 | -2 | -9 | -3 | -10 | -25 | -------------------------------------------------------------------------------- | Pulp Industry | 112 | 57 | 355 | 2 | -42 | -122 | -------------------------------------------------------------------------------- | Board and Paper Industry | 35 | 49 | -52 | -24 | -73 | -117 | -------------------------------------------------------------------------------- | Tissue and Cooking Papers | 5 | 19 | 21 | 31 | 22 | 19 | -------------------------------------------------------------------------------- | Other operations | -2 | -2 | 20 | 2 | 27 | 10 | -------------------------------------------------------------------------------- | Eliminations | -29 | -23 | -300 | 0 | 16 | 94 | -------------------------------------------------------------------------------- | Operating result total | 141 | 105 | 18 | 7 | -56 | -137 | -------------------------------------------------------------------------------- | - % of sales | 10.0 | 8.6 | 1.5 | 0.6 | -4.6 | -10.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share of results in | -7 | -6 | -4 | -1 | -8 | -2 | | associated companies | | | | | | | -------------------------------------------------------------------------------- | Exchange gains and losses | 2 | -2 | 2 | 4 | -1 | -2 | -------------------------------------------------------------------------------- | Other net financial items | -34 | -34 | -34 | -63 | -30 | -20 | -------------------------------------------------------------------------------- | Result before income tax | 102 | 64 | -18 | -53 | -95 | -163 | -------------------------------------------------------------------------------- | Income tax | -40 | -24 | -9 | -6 | 7 | 19 | -------------------------------------------------------------------------------- | Result from continuing | 62 | 40 | -27 | -59 | -88 | -144 | | operations | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Result from discontinued | 0 | 0 | -9 | -2 | -3 | -10 | | operations | | | | | | | -------------------------------------------------------------------------------- | Result for the period | 62 | 40 | -36 | -61 | -91 | -153 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating result | QII/10 | QI/10 | QIV/09 | QIII/09 | QII/09 | QI/09 | | excl. non-rec. | | | | | | | | items | | | | | | | -------------------------------------------------------------------------------- | Wood Supply | 8 | 7 | 4 | -1 | 4 | 5 | -------------------------------------------------------------------------------- | Wood Products | 11 | 0 | -3 | -3 | -10 | -25 | | Industry | | | | | | | -------------------------------------------------------------------------------- | Pulp Industry | 110 | 57 | 44 | 2 | -42 | -47 | -------------------------------------------------------------------------------- | Board and Paper | 43 | 39 | 7 | -22 | -70 | -65 | | Industry | | | | | | | -------------------------------------------------------------------------------- | Tissue and | 12 | 19 | 21 | 31 | 22 | 19 | | Cooking Papers | | | | | | | -------------------------------------------------------------------------------- | Other operations | -31 | -25 | -28 | 3 | 35 | 46 | | & eliminations | | | | | | | -------------------------------------------------------------------------------- | Operating result | 154 | 96 | 44 | 9 | -61 | -67 | | total | | | | | | | -------------------------------------------------------------------------------- Unaudited -------------------------------------------------------------------------------- | Change in tangible assets | QI-II/10 | QI-II/09 | QI-IV/09 | -------------------------------------------------------------------------------- | Book value at beginning of period | 2 428 | 2 958 | 2 958 | -------------------------------------------------------------------------------- | Business acquisitions | - | 1 | 472 | -------------------------------------------------------------------------------- | Investments | 39 | 68 | 143 | -------------------------------------------------------------------------------- | Decrease | -5 | -245 | -772 | -------------------------------------------------------------------------------- | Assets classified as held for sale | -19 | -447 | -3 | -------------------------------------------------------------------------------- | Depreciation and impairment charges | -129 | -187 | -449 | -------------------------------------------------------------------------------- | Translation differences and other | 30 | -7 | 78 | | changes | | | | -------------------------------------------------------------------------------- | Book value at end of period | 2 344 | 2 141 | 2 428 | -------------------------------------------------------------------------------- In June 2010, assets classified as held for sale include part of the former equipment of Metsä-Botnia's Kaskinen pulp mill, shut down in 2009 (EUR 11 million), and the tangible assets of M-real's paper machine 2 in Kangas (EUR 8 million). Depreciation and impairment charges include the June 2010 partial reversal of the impairment loss related to the shutdown of Metsä-Botnia's Kaskinen mill (EUR -11 million), based on an agreed asset deal; the partial reversal of the impairment loss recognised in connection with the closure of M-real's paper machine 2 at the Kangas mill (EUR -8 million), based on the agreed sale of the machine; as well as the write-down related to the reorganisation of Metsä Tissue's Polish operations (EUR 4 million). In June 2009, assets classified as held for sale include property, plant and equipment of Metsä-Botnia's operations in Uruguay, and in December 2009, property, plant and equipment of Metsäliitto Wood Products Industry's blockboard mill. -------------------------------------------------------------------------------- | Commitments | QII/10 | QII/09 | QIV/09 | -------------------------------------------------------------------------------- | On own behalf (incl. leasing | 587 | 353 | 456 | | liabilities) | | | | -------------------------------------------------------------------------------- | On behalf of associated companies | 6 | 4 | 6 | -------------------------------------------------------------------------------- | On behalf of others | 4 | 6 | 4 | -------------------------------------------------------------------------------- | Total | 597 | 363 | 466 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Open derivative contracts | QII/10 | QII/09 | QIV/09 | -------------------------------------------------------------------------------- | Interest rate derivatives | 886 | 1 074 | 831 | -------------------------------------------------------------------------------- | Currency derivatives | 1 708 | 2 160 | 1 766 | -------------------------------------------------------------------------------- | Other derivatives | 260 | 347 | 254 | -------------------------------------------------------------------------------- | Total | 2 854 | 3 581 | 2 850 | -------------------------------------------------------------------------------- The market value of open derivative contracts at the end of the review period was EUR -45 million (QIV/09: EUR -28 million). Open derivative contracts also include closed contracts to a total amount of EUR 364 million (QIV/09: EUR 537 million). Accounting policies This Interim Report was prepared in accordance with the IAS 34 standard Interim Financial Reporting and the accounting policies presented in Metsäliitto Group's Annual Report 2009. -------------------------------------------------------------------------------- | Calculation of | | | | key ratios | | | -------------------------------------------------------------------------------- | Return on capital | = | (Result from continuing operations before tax + | | employed (%) | | interest expenses, net exchange gains/losses and | | | | other financial expenses) per | | | | (Balance total - non-interest-bearing liabilities | | | | (average)) | -------------------------------------------------------------------------------- | Return on equity | = | (Result from continuing operations before tax - | | (%) | | income taxes) per | | | | (Members' funds (average)) | -------------------------------------------------------------------------------- | Equity ratio (%) | = | (Members' funds) per | | | | (Balance total - advance payments received) | -------------------------------------------------------------------------------- | Net gearing ratio | = | (Interest bearing borrowings - liquid funds - | | (%) | | interest-bearing receivables) per | | | | (Members' funds) | --------------------------------------------------------------------------------
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