2009-02-11 08:00:00 CET
2009-02-11 08:00:10 CET
REGULATED INFORMATION
Raute - Financial Statement Release
RAUTE CORPORATION - FINANCIAL STATEMENTS JANUARY 1 - DECEMBER 31, 2008
RAUTE CORPORATION FINANCIAL STATEMENT RELEASE 11 FEBRUARY 2009 AT 9.00 A.M. RAUTE CORPORATION - FINANCIAL STATEMENTS JANUARY 1 - DECEMBER 31, 2008 - Net sales totaled EUR 98.5 million (MEUR 110.8), down 11.1 percent. - Operating profit was EUR 6.3 million (MEUR 8.6) and profit before tax EUR 6.9 million (MEUR 9.0). - Earnings per share were EUR 1.18 (EUR 1.65). - Order intake was only EUR 67 million (MEUR 90) due to the weakened market situation. The order book decreased to a low level, EUR 24 million (MEUR 56). - The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.70 per share be paid for 2008. - Net sales and operating profit are expected to decline significantly in 2009. Achieving a positive result will be challenging. MR. TAPANI KIISKI, PRESIDENT AND CEO: OUR CUSTOMERS' PLANS HIT BY THE FINANCIAL CRISIS The positive development of Raute's profitability stopped at the end of the year due to the sharp decline in net sales in the fourth quarter. We succeeded well in our operations and cost management, achieving our targets, but this did not compensate the decline in net sales. The share of fixed costs is significant in Raute's business, which is based on profound competence in the field, and thus any changes in net sales are quickly reflected in profitability. The demand for our customers' products remained weak also in the fourth quarter. The slow demand in the construction and transport industries kept the production of the plywood and LVL industries at a low level. The capacity utilization rates of several of our customers' mills decreased by dozens of percents compared to the normal level. In addition, as the financial crisis became critical in September, its full impact on our clientele could be seen in the fourth quarter, and several promising projects were postponed due to financing difficulties. Our customers' market situation was also reflected in the demand for Raute's products and services in the fourth quarter. Our order book continued to decrease and reached an alarmingly low level, EUR 24 million, at year-end. We utilized all the flexibilities we have in our operating setup. Those flexibilities are well sufficient for the normal fluctuations in the level of business activity. Now the market disturbance has been exceptionally strong, and we had to adapt the number of our personnel due to the shortage of work. The demand situation has remained more or less unchanged during the past few months. Individual large projects are in the negotiation phase, but they are progressing slowly. Several relatively small projects to develop existing production capacity are being planned. The low utilization rates are affecting our maintenance and spare parts services negatively. 2009 will be very difficult. We began the year with a record-low order book and by adapting to the situation. The net sales and result for the first quarter will not be satisfactory. The situation can only be changed by the progress of customers' projects and the recovery of demand. I hope that the Finnish government will contribute by implementing necessary measures. Plans and promises must now be put into practice. Our product and service offering meets the needs of our customers, and we have adjusted it to make it more suitable for the present market situation. The substantial investments that we made in 2008 in product development and the competitiveness of our production will ensure that our competitive position will be strong in the projects to be launched. We will be ready to rise again as soon as demand recovers. I thank all of you for the past year, and for the 99 before that, both Raute employees and partners who have been a part of making Raute's success a reality. MARKET SITUATION Market situation in customer industries The market situation for the plywood industry weakened considerably after the summer. The demand for plywood remained at a low level in all market areas during the latter part of the year. The weaker demand for plywood used in the construction and transportation vehicle industries is a result of the global economic uncertainty that began in the USA and expanded to reach global proportions during the third quarter, and the more difficult financing of investments. The plywood mills have adapted their production capacity to correspond with the lower demand. However, according to publicly available statistics, the prices for plywood remained at a normal level for the most part. The market situation for LVL (Laminated Veneer Lumber) is difficult due to the low level of activity in the construction industry. The production capacity of several LVL mills is underutilized, but the prices for LVL have remained at a normal level. Demand for wood products technology and technology services The weakened market situation and the more difficult financing of investments affected the investment decisions in the plywood and LVL industries and reduced the demand for wood products technology and modernizations. The closing of mills and low capacity utilization rates were also reflected in the demand for maintenance and spare parts services during the latter part of the year. Some mill-scale investment projects are still in the planning phase in the various market areas, but the start-up of these projects is being postponed because of the difficult market and financing situation. Order intake and order book Raute's business consists of providing project deliveries and technology services to the wood products industry. Project deliveries encompass complete mills, production lines, and individual machines and equipment. Technology services include maintenance, spare parts services, equipment modernization, consulting, training, and sales of reconditioned machinery. The order intake in 2008 was EUR 67 million (MEUR 90), of which technology services accounted for EUR 23 million (MEUR 29). The low volume of order intake was attributable to the weakened market situation of Raute's customer industries and the postponement of large mill-scale projects. The postponements are evaluated to result from the lower demand for plywood and LVL and more difficult financing of investments. The portion of project deliveries in the order intake in 2008 was EUR 44 million (MEUR 61). Within project deliveries, Europe accounted for 58 percent (53%) and Russia for 32 percent (39%). The share of other market areas was 10 percent (8%). The portion of technology services in the order intake in 2008 was EUR 23 million (MEUR 29). In the fourth quarter, the order intake was only EUR 9 million (MEUR 42). The order book declined by EUR 8 million (MEUR +12). The order book at the end of 2008, EUR 24 million (MEUR 56), was at a low level. Competitive position There have been no essential changes in Raute's competitive position in 2008. Customers appreciate comprehensive competence and strong technology development in their strategic investments aimed at ensuring their ability to deliver and provide service. The competitive edge provided by Raute's technology plays an important role when customers select their suppliers. NET SALES AND RESULT The Group's net sales in 2008 totaled EUR 98.5 million (MEUR 110.8), down 11.1 percent from the previous year. The decline in net sales was due to the low order intake. 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 82), down 10 percent from the previous year, accounting for 74 percent (74%) of net sales. The plywood industry's share of the net sales of project deliveries was 99 percent (82%), while the LVL industry's share was 1 percent (16%). Net sales for technology services totaled EUR 25 million (MEUR 29), down 14 percent from the previous year, accounting for 26 percent (26%) of net sales. The decline in net sales reflected the weak market situation especially in North America. Europe took over as the biggest market area in 2008, accounting for 48 percent (31%) of net sales. Russia's share of net sales was 35 percent (35%), and North America's share fell to 10 percent (22%). The share of other market areas fell to 7 percent (12%). Finland accounted for 16 percent (13%) of net sales. The Group's operating profit was EUR 6.3 million (MEUR 8.6) and accounted for 6.4 percent (7.8%) of net sales. The 11 percent decline in net sales compared to the previous year weakened the overall profitability measured as operating profit, despite the successful and improved cost management of projects. In order to adapt to the drastically weakened market situation in North America, restructuring measures were taken in Raute's North American companies in April. A total of EUR 0.6 million of one-time costs relating to the restructuring was recorded in 2008. Adaptation measures were also started in the units in Finland in December to adapt the number of personnel to the lower order book. The Group's financial income and expenses totaled EUR 0.5 million (MEUR 0.4). Profit before tax was EUR 6.9 million (MEUR 9.0) and profit for the financial year EUR 4.7 million (MEUR 6.6). Earnings per share for 2008 were EUR 1.18 (EUR 1.65). There were no dilutive items. Return on investment was 19 percent (29%) and return on equity 14 percent (21%). Due to the slowing down of the markets, net sales for the fourth quarter of 2008 only amounted to EUR 18.6 million (MEUR 25.7). Operating profit for the same period was EUR 0.2 million (MEUR 2.4) and accounted for 1.1 percent (9.5%) of net sales. The lower profit margin compared to early 2008 resulted from the fact that net sales declined by almost one third compared to the average of the first quarters. Profit in the fourth quarter amounted to EUR 0.2 million (MEUR 1.6), and earnings per share were EUR 0.04 (EUR 0.41). DEVELOPMENT OF OPERATIONS Raute Corporation established a representative office in Moscow in June 2008. The aim is to improve Raute's customer service and strengthen its local presence in Russia. The development of the subcontracting network continued. Raute's own ability to deliver was improved by investing in production equipment at the Nastola main production plant and the Chinese plant. In order to support the management of deliveries, the ERP information system already in place in the other Group units was introduced at the Chinese unit. RAUTE TURNED 100 YEARS Raute turned 100 years on April 30, 2008. The company celebrated its 100-year journey together with its partners and employees in the various units. Some 400 visitors visited the Nastola unit during the open days organized in August. GROUP STRUCTURE Mecano Group Oy, a wholly-owned subsidiary of Raute Corporation focusing on machine vision and analyzing applications, was merged with the parent company on December 31, 2008. The merger will clarify the Group structure and improve the efficiency of operations. The merger will have no impact on Mecano's product offering, customer service or personnel. FINANCING The Group's financial position remained good throughout the year. At the end of the financial year, the equity ratio was 60.5 percent (70.3%) and gearing ‑31.0 percent (-32.5%). The Group's balance sheet total stood at EUR 60.2 million (MEUR 54.8) at the end of 2008. The fluctuation in balance sheet items and the key figures based on them is a result of differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of project business. The Group's cash and cash equivalents, including financial assets recognized at fair value through profit or loss, were EUR 21.1 million (MEUR 11.3) at the end of the financial year. The change in cash and cash equivalents in the reporting year was EUR 9.8 million positive (MEUR -12.7). Operating cash flow was EUR 6.9 million positive (MEUR -10.2). Cash flow from investment activities totaled EUR -3.1 million (MEUR -0.7). Cash flow from financing activities totaled EUR 6.0 million (MEUR -1.8) and includes EUR 10 million in new TyEL loans and EUR 4.0 million in dividend payments for 2007 (MEUR 2.8). The company made preparations for market disturbances caused by the financial crisis by raising a EUR 10 million TyEL loan in November 2008. Due to the new loan, interest-bearing liabilities amounted to EUR 10.5 million (MEUR 0.5) at the end of 2008. Raute Corporation has a EUR 10 million commercial paper program. The company renewed a total of EUR 17 million of its bilateral long-term financing limits during the summer, of which EUR 14 million (MEUR 15) are still unused after the collateral arrangements made for the TyEL loan. RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE Research and development costs totaled EUR 4.9 million (MEUR 4.3) in the reporting year, representing 5.0 percent (3.9%) of net sales. Investments totaled EUR 3.2 million (MEUR 1.9), and were at a higher level than in the past few years. The largest single investments involved the development of production at the plants in Nastola and China. The investments made in 2008 included EUR 0.7 million (MEUR 0.2) in development costs. Other investments consisted of information system and replacement investments. PERSONNEL Converted to full-time employees, the Group's average headcount was 538 (566) in 2008. The number of personnel at the end of the year was 573 (570). Group companies outside Finland accounted for 23 percent (24%) of employees. In April, the number of personnel in the North American units was adapted to the continued low demand. In December, adaptation measures concerning the entire personnel in the Group's Finnish companies were started due to the reduced order book and weakening market and demand situation. The maximum duration of the lay-off periods will be 90 days, and the termination of employment relationships will affect a maximum of 9 members of the office staff. The Raute Leader program was completed during the year to enhance the leadership skills of the Group's supervisors. A total of 16 middle-management supervisors and experts completed the training program which coached them to meet future challenges. 1.0 percent (0.9%) of the payroll was invested in the training of personnel. CORPORATE GOVERNANCE Raute Corporation's Annual General Meeting was held on April 2, 2008. It adopted the financial statements for 2007, granted discharge from liability to those accountable and decided to distribute a dividend of 1.00 euro per share. The Annual General Meeting on April 2, 2008 elected the company's Board of Directors for a term that expires at the end of the Annual General Meeting of 2009. Mr. Jarmo Rytilahti was elected Chairman of the Board, Ms. Sinikka Mustakallio Vice-Chairman and Mr. Ilpo Helander, Mr. Mika Mustakallio, Mr. Panu Mustakallio and Mr. Jorma Wiitakorpi as Board members. All of the Board members are independent of the company. Chairman Jarmo Rytilahti and two of the members (Ilpo Helander and Jorma Wiitakorpi) are independent of major shareholders. The chairman of the Appointments Committee is Mr. Jarmo Rytilahti, and Ms. Sinikka Mustakallio and Mr. Ville Korhonen - a representative of major shareholders - act as its members. The Working Committee continues to be chaired by Mr. Jarmo Rytilahti and its members are Ms. Sinikka Mustakallio and Mr. Jorma Wiitakorpi. In the Annual General Meeting, Authorized Public Accountants Anna-Maija Simola and Antti Unkuri were elected as auditors, and Ernst & Young Oy, an authorized public accounting company, as deputy auditor. The Group's President and CEO is Raute Corporation's President and CEO Mr. Tapani Kiiski. The Group's Executive Board also includes Ms. Arja Hakala, CFO; Mr. Petri Strengell, Vice President, Technology and Operations; Mr. Timo Kangas, Vice President, Technology Services; and Mr. Bruce Alexander, Vice President, North American Business Operations. SHARES The number of Raute Corporation's shares at the end of the reporting year 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 two euros. Series K shares can be converted to series A shares under the terms described in Article 3 of the Articles of Association. If a series K share is transferred to a new owner who does not previously hold series K shares, the other shareholders of the K series have the right to redeem the share under the terms described in Article 4 of the Articles of Association. Raute Corporation's series A shares are listed on NASDAQ OMX Helsinki Ltd. The trading code is RUTAV. Raute Corporation has signed a market making agreement with Nordea Bank Finland plc in compliance with the Liquidity Providing (LP) requirements issued by NASDAQ OMX Helsinki Ltd. The company's market capitalization at the end of the reporting year was EUR 25.6 million (MEUR 57.5), with series K shares valued at the closing price of series A shares, EUR 6.40 (EUR 14.35), on December 31, 2008. Other share-related information is presented in the figures section of this report. Board authorizations The company's Board of Directors has been authorized by the Annual General Meeting held on April 2, 2008, to decide on the buyback and directed issue of a maximum of 400,000 of the company's series A shares. The authorizations are effective until the next Annual General Meeting. The Board of Directors has not exercised the authorization. DIVIDEND FOR THE YEAR 2007 The Annual General Meeting decided to distribute a dividend of EUR 1.00 per share for 2007. The date of payment was April 14, 2008. The total amount of dividend paid was EUR 4.0 million. SHAREHOLDERS The number of shareholders totaled 1,312 at the beginning of the year and 1,528 at the end of the reporting year. Series K shares are held by 46 private individuals (46). The management held 4.7 percent (4.7%) of company shares and 9.1 percent (9.1%) of votes. Nominee-registered shares accounted for 2.4 percent (2.8%) of shares. The company did not possess company shares during 2008 or hold them as security. No flagging notifications were given to the company in 2008. SEASONAL FLUCTUATION IN BUSINESS The Group's net sales and working capital fluctuate every quarter due to different types of project deliveries and their schedules. Business does not involve systematic seasonal changes, with the exception of technology services delivered to Finland, which mainly take place during service shutdowns in the summer. BUSINESS RISKS The uncertainty in the development of the global economy will increase near-future risks, and it is difficult to predict all of its implications. The financial crisis, which expanded to global proportions in early fall 2008, will make business financing more difficult and increase financing costs which will affect investment demand and weaken the company's market outlook for the short term and affect the company's counterparty risk. The company's loans have fixed interest rates, and thus the company is not subject to interest rate risk. Raute's liquid assets are in Finnish and Swedish banks. The Group is prepared for fluctuations in the working capital tied up in project operations. Raute Corporation has a EUR 10 million domestic commercial paper program, which allows the company to issue commercial papers maturing in less than one year. The company also has unused bilateral non-current credit regulation agreements worth EUR 14 million. Impact of economic fluctuations on business operations Raute supplies technology and services to plants in the wood products industry. Business is characterized by sensitivity to economic fluctuations due to changes in the investment activity of customer industries. The impact that the cyclical nature of project deliveries has on the Group's performance is mitigated by systematically increasing the share of technology services, by developing the subcontracting network, and by focusing on core competencies in the company's own operations. In the long term, the Group's growth opportunities are increased and the impact of economic fluctuations balanced by developing operations in market areas where the company's market share is still small, and by creating products for new customer groups, such as the decorative veneer industry. Delivery and technology risks The bulk of Raute's business operations consist of different kinds of project deliveries, which always expose the company to risks caused by, for example, each customer's end product, production methods, or tailored solutions related to 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. Contract, product liability, implementation, cost, and capacity risks are managed using project management procedures that comply with the company's certified quality system. Raute emphasizes product development and continuously develops new technology in order to offer solutions for customers' expanding needs. The functionality and capacity of new solutions cannot be fully verified until the solutions can be tested under production conditions in conjunction with the first customer deliveries. Technology risks are reduced by the conditions of delivery contracts and by restricting the number of simultaneous first deliveries. Hedging of foreign currency receivables Items related to business payments and denominated in foreign currency are hedged with currency derivatives when contracts take effect. Forward contracts in Canadian and US dollars related to the economic hedging of payments from binding sales agreements had a nominal value of EUR 0.5 million (MEUR 2.5) at the end of the reporting year. The company had no forward contracts involving fair value hedging at the end of the reporting year (MEUR 0). Credit risk The financial crisis and the weakening of the global economy affect the company's counterparty risk. The maximum counterparty risk relating to customers' solvency is the amount of receivables relating to binding sales contracts that are not covered by bank guarantees, letters of credit or other securities. Received bank guarantees and letters of credit covered 33 percent (44%) of the accounts receivables and the percentage of completion receivables recorded in the balance sheet and 23 percent (9%) of the order book at the end of the financial year. According to the management's best estimate, the Group's receivables do not include any overdue accounts receivables resulting from counterparties' permanent insolvency. SOCIETY AND THE ENVIRONMENT The environment is one of the values that guide Raute's operations. Raute has been systematically developing the environmental soundness of its products and services and aims to reduce the environmental impact of its operations. The Group abides by the principles of good corporate citizenship, taking into consideration nature and its protection, as well as the operating methods of the surrounding society, and by showing respect to 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 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 and Jyväskylä plants manage environmental matters in compliance with a certified environmental system. At the Canadian plant, environmental surveys are carried out regularly by an external assessor. The operations and ethical principles of the partner and subcontractor networks are also subjected to systematic inspection. Raute aims to continuously reduce energy consumption, decrease the volume of waste, and develop the working environment. EVENTS AFTER THE REPORTING YEAR At the end of January 2009, negotiations in accordance with the Act on Co-operation within Undertakings were started in the Group's Finnish units on additional adaptation measures relating to personnel and other arrangements to adapt operations to the continued weak market situation. The structural changes that the company has implemented in recent years to increase its ability to adapt to the normal fluctuations in demand typical of project business are not sufficient enough to enable the adaptation of the operations to the present exceptional market situation. The Board of Directors of Raute Corporation has decided to utilize the authorization it was given by the Annual General Meeting of Share holders on April 2, 2008 to acquire the company's own series A shares. The shares are acquired to be used as part of the incentive schemes for key personnel. The purchase of the shares will begin at earliest on February 19, 2009 and will end at latest on April 2, 2009. BOARD PROPOSALS TO THE ANNUAL GENERAL MEETING Raute Corporation's Annual General Meeting will be held in Lahti on April 2, 2009 at 6:00 p.m. The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.70 per share be paid for series A and K shares, that is, a total of EUR 2.8 million, on April 16, 2009. The record date for dividend payments is April 7, 2009. The Board of Directors proposes to the Annual General Meeting that the Meeting continue the Board of Directors' existing authorization to decide on the buyback and directed issue of a maximum of 400,000 of the company's series A shares until the next General Meeting. In addition, the Board of Directors proposes to the Annual General Meeting that the Meeting decide to amend the Articles of Association as follows, mainly due to the new Limited Liability Companies Act, which came into force on September 1, 2006: - The set time periods relating to the right of redemption should be replaced by the maximum periods set in the Act, with the exception of the time period stipulated for the request for redemption made by shareholders entitled to redemption (Article 4). - The provisions concerning the tally day should be deleted (Article 5). - The list of the Board's tasks should be deleted (Article 8). - A provision on the number of the company's auditors and a mention about an authorized public accounting company should be added (new Article 8). - The provisions on signing for the company should be amended to make them consistent with the terminology of the new Act, and the mention on the Board's authority to grant and withdraw procurations should be transferred to the same Article (Article 9). - The provision on the convocation period of a General Meeting should be deleted, and the decision-making responsibilities should be amended so that the newspapers in which the notice of the General Meeting is published are decided by the Board, not by the General Meeting. A mention that the notice must also be published on the company's website should be added (Article 12). - The agenda of the Annual General Meeting should be amended in part to correspond with the contents of the new Act, and the principles for indemnifying travel expenses to the Chairman of the Board, the Board members and the auditors should be added in the list of items to be decided on (Article 13). - Article 14 referring to making decisions about amendments to the Articles of Association, about the company's entrance into liquidation and about an increase of the share capital in accordance with the provisions of the Companies Act should be deleted (Article 14). The Board of Directors proposes to the Annual General Meeting that Ms. Anna-Maija Simola and Mr. Antti Unkuri, Authorized Public Accountants, be elected as auditors, and Ernst & Young Oy, an authorized public accounting company, as deputy auditor. Raute Corporation's Appointments Committee has announced that it will propose to the Annual General Meeting, which will convene on April 2, 2009, that six be confirmed as the number of Board members and that Mr. Ilpo Helander, Mr. Mika Mustakallio, Mr. Panu Mustakallio and Ms. Sinikka Mustakallio of the present members be re-elected. In addition, the Appointments Committee proposes that Mr. Erkki Pehu-Lehtonen and Mr. Risto Hautamäki be elected as new Board members. The Appointments Committee proposes that Mr. Erkki Pehu-Lehtonen be elected Chairman of the Board and Ms. Sinikka Mustakallio Vice-Chairman. Mr. Jarmo Rytilahti, who has acted as a member of Raute's Board of Directors since 2003 and been its Chairman since 2004, has announced that he will leave Raute's Board of Directors. OUTLOOK FOR 2009 Due to the financial crisis and global economic uncertainty, the market situation in Raute's customer industries is expected to remain difficult for the entire year 2009. Investments and demand for services in the wood products industry are expected to remain weak in all market areas, with the exception of individual mill-scale projects, several of which are in the planning phase in the various market areas. 2009 will be a difficult year for Raute due to the low order book and weak continuing demand. The net sales and operating profit for 2009 are expected to decline significantly. Achieving a positive result will be very challenging in the present market situation, despite the adaptation measures taken. Thanks to its strong financial position Raute is well-equipped to cope with the economic recession. The strong market position and development efforts made in operations and products ensure that Raute's ability to respond to the growing demand is excellent when the markets recover. TABLES OF CONSOLIDATED FINANCIAL STATEMENTS AND NOTES -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT | | | | | -------------------------------------------------------------------------------- | (EUR 1 000) | Note | 1.10.- | 1.10.- | 1.1.- | 1.1.- | -------------------------------------------------------------------------------- | | | 31.12. | 31.12. | 31.12. | 31.12. | -------------------------------------------------------------------------------- | | | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET SALES | 2,3,4 | 18 619 | 25 683 | 98 466 | 110 799 | -------------------------------------------------------------------------------- | Other operating | | | | | | -------------------------------------------------------------------------------- | income | | 14 | 386 | 95 | 461 | -------------------------------------------------------------------------------- | Increase (+) or | | | | | | -------------------------------------------------------------------------------- | decrease (-) in | | | | | | -------------------------------------------------------------------------------- | inventories of | | | | | | -------------------------------------------------------------------------------- | finished goods and | | | | | | -------------------------------------------------------------------------------- | work in progress | | -108 | -252 | 404 | 42 | -------------------------------------------------------------------------------- | Materials and | | | | | | -------------------------------------------------------------------------------- | services | | 8 218 | 11 910 | 50 906 | 60 999 | -------------------------------------------------------------------------------- | Expenses from | | | | | | -------------------------------------------------------------------------------- | employee benefits | 9 | 7 062 | 8 103 | 28 592 | 28 875 | -------------------------------------------------------------------------------- | Depreciation, | | | | | | -------------------------------------------------------------------------------- | amortization and | | | | | | -------------------------------------------------------------------------------- | impairment charges | | 692 | 654 | 2 751 | 2 654 | -------------------------------------------------------------------------------- | Other operating | | | | | | -------------------------------------------------------------------------------- | expenses | | 2 347 | 2 709 | 10 375 | 10 166 | -------------------------------------------------------------------------------- | Total operating | | | | | | -------------------------------------------------------------------------------- | expenses | 7 | 18 318 | 23 376 | 92 624 | 102 695 | -------------------------------------------------------------------------------- | OPERATING PROFIT | | 206 | 2 441 | 6 341 | 8 607 | -------------------------------------------------------------------------------- | % of net sales | | 1 | 10 | 6 | 8 | -------------------------------------------------------------------------------- | Financial income | | 550 | 159 | 1 268 | 660 | -------------------------------------------------------------------------------- | Financial expenses | | -448 | -129 | -729 | -291 | -------------------------------------------------------------------------------- | PROFIT BEFORE TAX | | 309 | 2 470 | 6 880 | 8 976 | -------------------------------------------------------------------------------- | % of net sales | | 2 | 10 | 7 | 8 | -------------------------------------------------------------------------------- | Income taxes | 6 | -131 | -843 | -2 157 | -2 375 | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | | 177 | 1 627 | 4 723 | 6 601 | -------------------------------------------------------------------------------- | % of net sales | | 1 | 6 | 5 | 6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | | -------------------------------------------------------------------------------- | Equity holders of the | | | | | | -------------------------------------------------------------------------------- | Parent company | | 177 | 1 627 | 4 723 | 6 601 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, | | | | | | -------------------------------------------------------------------------------- | EUR | | | | | | -------------------------------------------------------------------------------- | Undiluted earnings | | 0,04 | 0,41 | 1,18 | 1,65 | -------------------------------------------------------------------------------- | per share | | | | | | -------------------------------------------------------------------------------- | Diluted earnings | | 0,04 | 0,41 | 1,18 | 1,65 | -------------------------------------------------------------------------------- | per share | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shares, 1 000 pcs | | | | | | -------------------------------------------------------------------------------- | Adjusted average | | | | | | -------------------------------------------------------------------------------- | number of shares | | 4 005 | 4 005 | 4 005 | 4 005 | -------------------------------------------------------------------------------- | Adjusted average | | | | | | -------------------------------------------------------------------------------- | number of shares | | | | | | -------------------------------------------------------------------------------- | diluted | | 4 005 | 4 005 | 4 005 | 4 005 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET | | | | -------------------------------------------------------------------------------- | (1 000 EUR) | Note | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Intangible assets | | 2 482 | 2 546 | -------------------------------------------------------------------------------- | Tangible assets | | 11 175 | 10 993 | -------------------------------------------------------------------------------- | Other financial assets | | 499 | 449 | -------------------------------------------------------------------------------- | Deferred tax assets | | 334 | 275 | -------------------------------------------------------------------------------- | Total | | 14 491 | 14 263 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | | 4 310 | 4 515 | -------------------------------------------------------------------------------- | Accounts receivables and | | | | -------------------------------------------------------------------------------- | other receivables | 4 | 20 270 | 24 739 | -------------------------------------------------------------------------------- | Financial assets at | | | | -------------------------------------------------------------------------------- | fair value through | | | | -------------------------------------------------------------------------------- | profit or loss | | 0 | 2 144 | -------------------------------------------------------------------------------- | Cash and cash equivalents | | 21 109 | 9 140 | -------------------------------------------------------------------------------- | Total | | 45 689 | 40 537 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 2 | 60 180 | 54 800 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND | | | | -------------------------------------------------------------------------------- | LIABILITIES | | | | -------------------------------------------------------------------------------- | Equity attributable to equity | | | | -------------------------------------------------------------------------------- | holders of the Parent Company | | | | -------------------------------------------------------------------------------- | Share capital | | 8 010 | 8 010 | -------------------------------------------------------------------------------- | Share premium | | 6 498 | 6 498 | -------------------------------------------------------------------------------- | Other funds | 9 | 287 | 125 | -------------------------------------------------------------------------------- | Exchange rate differences | | 283 | 36 | -------------------------------------------------------------------------------- | Retained earnings | | 14 520 | 11 924 | -------------------------------------------------------------------------------- | Profit for period | | 4 723 | 6 601 | -------------------------------------------------------------------------------- | Share of shareholders' | | | | -------------------------------------------------------------------------------- | equity that belongs | | | | -------------------------------------------------------------------------------- | to owners of the | | | | -------------------------------------------------------------------------------- | Parent company | | 34 321 | 33 194 | -------------------------------------------------------------------------------- | Total | | 34 321 | 33 194 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Long-term liabilities | | | | -------------------------------------------------------------------------------- | Provisions | | 289 | 286 | -------------------------------------------------------------------------------- | Deferred tax liabilities | | 599 | 676 | -------------------------------------------------------------------------------- | Long-term interest-bearing | | 8 232 | 277 | -------------------------------------------------------------------------------- | liabilities | | | | -------------------------------------------------------------------------------- | Total | | 9 120 | 1 239 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | | -------------------------------------------------------------------------------- | Provisions | | 2 251 | 971 | -------------------------------------------------------------------------------- | Pension obligations | | 173 | 260 | -------------------------------------------------------------------------------- | Short-term interest-bearing | | | | -------------------------------------------------------------------------------- | liabilities | | 2 225 | 213 | -------------------------------------------------------------------------------- | Advance payments received | 4 | 3 475 | 7 590 | -------------------------------------------------------------------------------- | Current tax liabilities | | 79 | 851 | -------------------------------------------------------------------------------- | Trade and other payables | | 8 536 | 10 481 | -------------------------------------------------------------------------------- | Total | | 16 739 | 20 367 | -------------------------------------------------------------------------------- | Total liabilities | | 25 859 | 21 605 | -------------------------------------------------------------------------------- | TOTAL SHAREHOLDERS' EQUITY | | | | -------------------------------------------------------------------------------- | AND LIABILITIES | | 60 180 | 54 800 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT | | | -------------------------------------------------------------------------------- | (1 000 EUR) | 1.1.-31.12. | 1.1.-31.12. | -------------------------------------------------------------------------------- | | 2008 | 2007 | -------------------------------------------------------------------------------- | CASH FLOW FROM OPERATING | | | -------------------------------------------------------------------------------- | ACTIVITIES | | | -------------------------------------------------------------------------------- | Proceeds from sales | 100 611 | 96 117 | -------------------------------------------------------------------------------- | Proceeds from other | | | -------------------------------------------------------------------------------- | operating income | 65 | 114 | -------------------------------------------------------------------------------- | Payments of operating expenses | -90 988 | -104 963 | -------------------------------------------------------------------------------- | Cash flow before financial | | | -------------------------------------------------------------------------------- | items and taxes | 9 688 | -8 732 | -------------------------------------------------------------------------------- | Interests and other operating | | | -------------------------------------------------------------------------------- | financial expenses paid | -224 | -394 | -------------------------------------------------------------------------------- | Interests and other income | | | -------------------------------------------------------------------------------- | received | 828 | 639 | -------------------------------------------------------------------------------- | Dividends received | 133 | 115 | -------------------------------------------------------------------------------- | Income taxes paid | -3 522 | -1 843 | -------------------------------------------------------------------------------- | NET CASH FLOW FROM OPERATING | | | -------------------------------------------------------------------------------- | ACTIVITIES (A) | 6 903 | -10 214 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW FROM INVESTING | | | -------------------------------------------------------------------------------- | ACTIVITIES | | | -------------------------------------------------------------------------------- | Capital expenditure in | | | -------------------------------------------------------------------------------- | tangible and intangible | | | -------------------------------------------------------------------------------- | assets | -3 201 | -1 964 | -------------------------------------------------------------------------------- | Purchases of available-for-sale | | | -------------------------------------------------------------------------------- | as investments | -50 | -74 | -------------------------------------------------------------------------------- | Proceeds from sale of tangible | | | -------------------------------------------------------------------------------- | and intangible assets | 171 | 1 310 | -------------------------------------------------------------------------------- | NET CASH FLOW FROM INVESTING | | | -------------------------------------------------------------------------------- | ACTIVITIES (B) | -3 080 | -728 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW FROM FINANCING | | | -------------------------------------------------------------------------------- | ACTIVITIES | | | -------------------------------------------------------------------------------- | Repayments of long-term and | | | -------------------------------------------------------------------------------- | short-term loan receivables | 0 | 1 000 | -------------------------------------------------------------------------------- | Increase of short-term | | | -------------------------------------------------------------------------------- | liabilities | 0 | 63 | -------------------------------------------------------------------------------- | Repayments of short-term | | | -------------------------------------------------------------------------------- | liabilities | -63 | 0 | -------------------------------------------------------------------------------- | Increase of long-term | | | -------------------------------------------------------------------------------- | liabilities | 10 069 | 0 | -------------------------------------------------------------------------------- | Repayment of long-term | | | -------------------------------------------------------------------------------- | liabilities | 0 | -40 | -------------------------------------------------------------------------------- | Dividends paid | -4 005 | -2 803 | -------------------------------------------------------------------------------- | NET CASH FROM FINANCING | | | -------------------------------------------------------------------------------- | ACTIVITIES (C) | 6 001 | -1 780 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET CHANGE IN CASH | | | -------------------------------------------------------------------------------- | AND CASH EQUIVALENTS (A+B+C) | | | -------------------------------------------------------------------------------- | increase (+)/decrease (-) | 9 824 | -12 723 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH AND CASH EQUIVALENTS | | | -------------------------------------------------------------------------------- | AT THE BEGINNING OF THE PERIOD* | 11 284 | 24 006 | -------------------------------------------------------------------------------- | CASH AND CASH EQUIVALENTS | | | -------------------------------------------------------------------------------- | AT THE END OF THE PERIOD* | 21 109 | 11 284 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH AND CASH EQUIVALENTS | | | -------------------------------------------------------------------------------- | IN THE BALANCE SHEET | | | -------------------------------------------------------------------------------- | AT THE END OF THE PERIOD | | | -------------------------------------------------------------------------------- | Financial assets at fair | | | -------------------------------------------------------------------------------- | value through profit or loss | 0 | 2 144 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 21 109 | 9 140 | -------------------------------------------------------------------------------- | TOTAL | 21 109 | 11 284 | -------------------------------------------------------------------------------- * Cash and cash equivalents comprise trading assets as well as cash and bank receivables, which will be due within the following three months' period. -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | | -------------------------------------------------------------------------------- | (EUR 1 000) | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Share | Share | Other | Exchange | Retained | -------------------------------------------------------------------------------- | | capital | premium | funds | rate | earnings | -------------------------------------------------------------------------------- | | | | | diff. | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | Jan. 1, 2008 | 8 010 | 6 498 | 125 | 36 | 18 524 | -------------------------------------------------------------------------------- | Exchange | | | | | | -------------------------------------------------------------------------------- | differences | | | | | | -------------------------------------------------------------------------------- | from net | | | | | | -------------------------------------------------------------------------------- | investments | | | 22 | | | -------------------------------------------------------------------------------- | Exchange rate | | | | | | -------------------------------------------------------------------------------- | differences | | | | 247 | | -------------------------------------------------------------------------------- | Net income | | | | | | -------------------------------------------------------------------------------- | recognized | | | | | | -------------------------------------------------------------------------------- | directly in | | | | | | -------------------------------------------------------------------------------- | equity | 0 | 0 | 22 | 247 | 0 | -------------------------------------------------------------------------------- | Profit for | | | | | | -------------------------------------------------------------------------------- | the financial | | | | | 4 723 | | year | | | | | | -------------------------------------------------------------------------------- | Total income and | | | | | | -------------------------------------------------------------------------------- | expenses | | | | | | -------------------------------------------------------------------------------- | recognized | | | | | | -------------------------------------------------------------------------------- | in the period | 0 | 0 | 22 | 247 | 4 723 | -------------------------------------------------------------------------------- | Dividend | | | | | -4 005 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | -------------------------------------------------------------------------------- | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | | | 139 | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | December 31, 2008 | 8 010 | 6 498 | 287 | 283 | 19 242 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | -------------------------------------------------------------------------------- | | To owners | | Minority | | EQUITY | -------------------------------------------------------------------------------- | | of the | | interest | | TOTAL | -------------------------------------------------------------------------------- | | Parent | | | | | -------------------------------------------------------------------------------- | | company | | | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | Jan. 1, 2008 | 33 194 | | 0 | | 33 194 | -------------------------------------------------------------------------------- | Exchange | | | | | | -------------------------------------------------------------------------------- | differences | | | | | | -------------------------------------------------------------------------------- | from net | | | | | | -------------------------------------------------------------------------------- | investments | 22 | | | | 22 | -------------------------------------------------------------------------------- | Exchange rate | | | | | | -------------------------------------------------------------------------------- | differences | 247 | | | | 247 | -------------------------------------------------------------------------------- | Net income | | | | | | -------------------------------------------------------------------------------- | recognized | | | | | | -------------------------------------------------------------------------------- | directly in | | | | | | -------------------------------------------------------------------------------- | equity | 269 | | 0 | | 269 | -------------------------------------------------------------------------------- | Profit for | | | | | | -------------------------------------------------------------------------------- | the financial | 4 723 | | | | 4 723 | | year | | | | | | -------------------------------------------------------------------------------- | Total income and | | | | | | -------------------------------------------------------------------------------- | expenses | | | | | | -------------------------------------------------------------------------------- | recognized | | | | | | -------------------------------------------------------------------------------- | in the period | 4 992 | | 0 | | 4 992 | -------------------------------------------------------------------------------- | Dividend | -4 005 | | | | -4 005 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | -------------------------------------------------------------------------------- | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | 139 | | | | 139 | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | December 31, 2008 | 34 321 | | 0 | | 34 321 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | | -------------------------------------------------------------------------------- | (EUR 1 000) | | | | | | -------------------------------------------------------------------------------- | | Share | Share | Other | Exchange | Retained | -------------------------------------------------------------------------------- | | capital | premium | funds | rate | earnings | -------------------------------------------------------------------------------- | | | | | diff. | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | Jan. 1, 2007 | 8 010 | 6 498 | -201 | 274 | 14 726 | -------------------------------------------------------------------------------- | Exchange | | | | | | -------------------------------------------------------------------------------- | differences | | | | | | -------------------------------------------------------------------------------- | from net | | | | | | -------------------------------------------------------------------------------- | investments | | | 264 | | | -------------------------------------------------------------------------------- | Taxes related to items | | | | | -------------------------------------------------------------------------------- | recognized in | | | | | | | equity | | | | | | -------------------------------------------------------------------------------- | or transferred | | | | | | -------------------------------------------------------------------------------- | from equity | | | 12 | | | -------------------------------------------------------------------------------- | Exchange rate | | | | | | -------------------------------------------------------------------------------- | differences | | | | -238 | | -------------------------------------------------------------------------------- | Other increase/ | | | | | | -------------------------------------------------------------------------------- | decrease | | | -48 | | | -------------------------------------------------------------------------------- | Net income | | | | | | -------------------------------------------------------------------------------- | recognized | | | | | | -------------------------------------------------------------------------------- | directly in | | | | | | -------------------------------------------------------------------------------- | equity | 0 | 0 | 228 | -238 | 0 | -------------------------------------------------------------------------------- | Profit for | | | | | | -------------------------------------------------------------------------------- | the financial | | | | | 6 601 | | year | | | | | | -------------------------------------------------------------------------------- | Total income and | | | | | | -------------------------------------------------------------------------------- | expenses | | | | | | -------------------------------------------------------------------------------- | recognized | | | | | | -------------------------------------------------------------------------------- | in the period | 0 | 0 | 228 | -238 | 6 601 | -------------------------------------------------------------------------------- | Dividend | | | | | -2 803 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | -------------------------------------------------------------------------------- | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | | | 98 | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | December 31, 2007 | 8 010 | 6 498 | 125 | 36 | 18 524 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) | -------------------------------------------------------------------------------- | | To owners | | Minority | | EQUITY | -------------------------------------------------------------------------------- | | of the | | interest | | TOTAL | -------------------------------------------------------------------------------- | | Parent | | | | | -------------------------------------------------------------------------------- | | company | | | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | Jan. 1, 2007 | 29 309 | | 0 | | 29 309 | -------------------------------------------------------------------------------- | Exchange | | | | | | -------------------------------------------------------------------------------- | differences | | | | | | -------------------------------------------------------------------------------- | from net | | | | | | -------------------------------------------------------------------------------- | investments | 264 | | | | 264 | -------------------------------------------------------------------------------- | Taxes related to items | | | | | -------------------------------------------------------------------------------- | recognized in | | | | | | | equity | | | | | | -------------------------------------------------------------------------------- | or transferred | | | | | | -------------------------------------------------------------------------------- | from equity | 12 | | | | 12 | -------------------------------------------------------------------------------- | Exchange rate | | | | | | -------------------------------------------------------------------------------- | differences | -238 | | | | -238 | -------------------------------------------------------------------------------- | Other increase/ | | | | | | -------------------------------------------------------------------------------- | decrease | -48 | | | | -48 | -------------------------------------------------------------------------------- | Net income | | | | | | -------------------------------------------------------------------------------- | recognized | | | | | | -------------------------------------------------------------------------------- | directly in | | | | | | -------------------------------------------------------------------------------- | equity | -10 | | 0 | | -10 | -------------------------------------------------------------------------------- | Profit for | | | | | | -------------------------------------------------------------------------------- | the financial | 6 601 | | | | 6 601 | | year | | | | | | -------------------------------------------------------------------------------- | Total income and | | | | | | -------------------------------------------------------------------------------- | expenses | | | | | | -------------------------------------------------------------------------------- | recognized | | | | | | -------------------------------------------------------------------------------- | in the period | 6 591 | | 0 | | 6 591 | -------------------------------------------------------------------------------- | Dividend | -2 803 | | | | -2 803 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | -------------------------------------------------------------------------------- | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | 98 | | | | 98 | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | December 31, 2007 | 33 194 | | 0 | | 33 194 | -------------------------------------------------------------------------------- NOTES General information Raute Group (‘Group') is a globally operating technology corporation, whose core business consists of the production processes of veneer-based wood products. Project deliveries include complete mills, production lines, and single machines. Full-service technology services include spare part, maintenance, and modernization services, as well as services related to developing customers' businesses. The Group's Parent company, Raute Corporation, is a Finnish public limited liability company established in accordance with Finnish law (Business ID FI01490726). Its series A shares are quoted on NASDAQ OMX Helsinki Ltd., under Industrials. Raute Corporation is domiciled in Lahti, 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. A copy of the consolidated financial statements is available online at www.raute.com or at the head office of the Parent company, Rautetie 2, FI-15550 Nastola, Finland. Raute Corporation's Board of Directors has on 11 February 2009 reviewed the Group's Financial statements for January 1 - December 31, 2008, and decided to publish Raute Corporation's Financial statement bulletin for January 1 - December 31, 2008, in compliance with this release. 1. Accounting principles Raute Corporation's financial statement bulletin has been prepared in accordance with the recognition and measurement policies set out in International Financial Reporting Standards but not all requirements of the IAS 34 standard have been followed in accounting. Financial Statements 2008 with full notes will be published week 12 in March 2009. The figures presented in the financial statement bulletin have not been audited. Figures in parentheses refer to the corresponding figures in the comparison year. All the monetary figures presented in this bulletin are in thousands euros, unless otherwise stated. Due to the roundings of the figures in the financial statement tables, the sums of figures may deviate from the sum total presented in the table. The preparation of financial statements according to IFRS requires management to use estimates and assumptions that affect the assets and liabilities on the balance sheet date, as well as the income and expenses for the financial period. Because the forward-looking estimates and assumptions are based on management's best knowledge at the balance sheet date, they comprise risks and uncertainties. The actual results may differ from these estimates. The following standards have taken effect during the financial year, but according to the management's view, they do not affect the performance, the financial condition or the notes of the Group: - IFRIC 11, IFRS 2: Group and Treasury Share Transactions - IFRIC 14, IAS 19: The Limit and Defined Benefit Assets, Minimum Funding Requirements and their Interaction - IFRIC 16, Hedges of a Net Investment in a Foreign Operation - IAS 39, Financial Instruments: recognition and measurement and IFRS 7, Financial Instruments: Presentation of financial statements standard amendment. The following standards have taken effect during the financial year, but according to the management's view, they are not relevant for Group's operations: - IFRIC 12, Service Concession Arrangements - IFRIC 13, Customer Loyalty Programmes - IFRIC 15, Agreements for the Construction of Real Estate. In other respects, the Group has followed the accounting principles described in the Financial statements for 2007. 2. Segment information Primary reporting segment Raute's primary reporting segment is the business segment. Continuing operations belong to the wood products technology segment. Secondary reporting segment Raute's secondary reporting segment is geographical. The geographical segment consists of market areas accounting for over 10 percent of the Group's net sales. Geographical reporting segment information: -------------------------------------------------------------------------------- | Net sales to external | 1.1.- | | 1.1.- | | -------------------------------------------------------------------------------- | clients by | 31.12. | | 31.12. | | -------------------------------------------------------------------------------- | clients' geographical | 2008 | % | 2007 | % | -------------------------------------------------------------------------------- | location | | | | | -------------------------------------------------------------------------------- | Europe | 47 709 | 48 | 34 117 | 31 | -------------------------------------------------------------------------------- | Russia | 34 359 | 35 | 38 314 | 35 | -------------------------------------------------------------------------------- | North America | 9 832 | 10 | 24 047 | 22 | -------------------------------------------------------------------------------- | South America | 4 311 | 4 | 11 485 | 10 | -------------------------------------------------------------------------------- | Others | 2 255 | 3 | 2 836 | 3 | -------------------------------------------------------------------------------- | TOTAL | 98 466 | 100 | 110 799 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets by geographical | | | | | -------------------------------------------------------------------------------- | location | | | | | -------------------------------------------------------------------------------- | Europe | 55 616 | 92 | 48 822 | 89 | -------------------------------------------------------------------------------- | Russia | 782 | 1 | 1 048 | 2 | -------------------------------------------------------------------------------- | North America | 2 730 | 5 | 3 275 | 6 | -------------------------------------------------------------------------------- | South America | 36 | 0 | 34 | 0 | -------------------------------------------------------------------------------- | Others | 1 016 | 3 | 1 621 | 3 | -------------------------------------------------------------------------------- | TOTAL | 60 180 | 100 | 54 800 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital expenditure by | | | | | -------------------------------------------------------------------------------- | geographical location | | | | | -------------------------------------------------------------------------------- | Europe | 2 775 | 86 | 1 411 | 75 | -------------------------------------------------------------------------------- | Russia | 2 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | North America | 75 | 2 | 74 | 4 | -------------------------------------------------------------------------------- | South America | 19 | 1 | 4 | 0 | -------------------------------------------------------------------------------- | Others | 371 | 11 | 380 | 20 | -------------------------------------------------------------------------------- | TOTAL | 3 242 | 100 | 1 869 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. Proceeds from sales | | | | | -------------------------------------------------------------------------------- | | 1.1.- | | 1.1.- | | -------------------------------------------------------------------------------- | Net sales | 31.12. | | 31.12. | | -------------------------------------------------------------------------------- | by market area | 2008 | % | 2007 | % | -------------------------------------------------------------------------------- | Russia | 34 359 | 35 | 38 314 | 35 | -------------------------------------------------------------------------------- | Rest of Europe | 31 909 | 32 | 20 077 | 18 | -------------------------------------------------------------------------------- | Finland | 15 800 | 16 | 14 040 | 13 | -------------------------------------------------------------------------------- | North America | 9 832 | 10 | 24 047 | 22 | -------------------------------------------------------------------------------- | South America | 4 311 | 4 | 11 485 | 10 | -------------------------------------------------------------------------------- | Asia | 1 241 | 1 | 915 | 1 | -------------------------------------------------------------------------------- | Oceania | 701 | 1 | 979 | 1 | -------------------------------------------------------------------------------- | Others | 313 | 1 | 942 | 1 | -------------------------------------------------------------------------------- | TOTAL | 98 466 | 100 | 110 799 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 4. Long-term projects | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Net sales | | | -------------------------------------------------------------------------------- | Net sales by percentage | | | -------------------------------------------------------------------------------- | of completion | 80 749 | 94 905 | -------------------------------------------------------------------------------- | Other net sales | 17 717 | 15 894 | -------------------------------------------------------------------------------- | TOTAL | 98 466 | 110 799 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Project revenues entered | | | -------------------------------------------------------------------------------- | as income from currently | | | -------------------------------------------------------------------------------- | undelivered long-term | | | -------------------------------------------------------------------------------- | projects recognized | | | -------------------------------------------------------------------------------- | by percentage of completion | 85 487 | 120 722 | -------------------------------------------------------------------------------- | Amount of long-term project | | | -------------------------------------------------------------------------------- | revenues not yet | | | -------------------------------------------------------------------------------- | entered as income | 22 817 | 53 474 | -------------------------------------------------------------------------------- | Specification of combined | | | -------------------------------------------------------------------------------- | asset and liability items: | | | -------------------------------------------------------------------------------- | Accrued income | | | -------------------------------------------------------------------------------- | corresponding to revenues | | | -------------------------------------------------------------------------------- | by percentage of completion | 85 328 | 120 942 | -------------------------------------------------------------------------------- | Advances received from | | | -------------------------------------------------------------------------------- | project customers | -73 509 | -102 601 | -------------------------------------------------------------------------------- | Project receivables included | | | -------------------------------------------------------------------------------- | in current assets | 11 819 | 18 341 | -------------------------------------------------------------------------------- | Advance payments received | | | -------------------------------------------------------------------------------- | in the Balance Sheet | 3 475 | 7 590 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 5. Number of personnel, persons | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | - effective, on average | 538 | 566 | -------------------------------------------------------------------------------- | - in books, on average | 585 | 575 | -------------------------------------------------------------------------------- | - in books, at the end of period, | 573 | 570 | -------------------------------------------------------------------------------- | - of which personnel working | | | -------------------------------------------------------------------------------- | abroad | 136 | 140 | -------------------------------------------------------------------------------- 6. Income taxes The taxes in the income statement include the taxes corresponding to the Group companies' taxable profit for the financial year as well as tax adjustments for the previous years and the change in deferred taxes. Current tax based on the taxable income is calculated on taxable income using the tax rate in force in each country. The effective tax rate of the reporting period is 31.1 percent (26.5 %). -------------------------------------------------------------------------------- | 7. Research and development costs | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Research and development costs | | | -------------------------------------------------------------------------------- | for the period | 4 375 | 3 969 | -------------------------------------------------------------------------------- | Depreciation of capitalized | | | -------------------------------------------------------------------------------- | development costs | 549 | 367 | -------------------------------------------------------------------------------- | Recognized as assets | | | -------------------------------------------------------------------------------- | in balance sheet | -667 | -233 | -------------------------------------------------------------------------------- | Research and development | | | -------------------------------------------------------------------------------- | costs entered as expenses | | | -------------------------------------------------------------------------------- | for the period | 4 257 | 4 103 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 8. Changes in Property, plant and | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | equipment | | | -------------------------------------------------------------------------------- | Carrying amount at the | | | -------------------------------------------------------------------------------- | beginning of the period | 40 008 | 40 411 | -------------------------------------------------------------------------------- | Exchange rate differences | -1 484 | 4 | -------------------------------------------------------------------------------- | Additions | 2 175 | 1 263 | -------------------------------------------------------------------------------- | Disposals | -90 | -1 558 | -------------------------------------------------------------------------------- | Other reclassifications between | | | -------------------------------------------------------------------------------- | items | -157 | -112 | -------------------------------------------------------------------------------- | Carrying amount at the end | | | -------------------------------------------------------------------------------- | of the period | 40 453 | 40 008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Accumulated depreciation and | | | -------------------------------------------------------------------------------- | amortization at the beginning | | | -------------------------------------------------------------------------------- | of the period | -29 014 | -27 868 | -------------------------------------------------------------------------------- | Exchange rate differences | 1 281 | 2 | -------------------------------------------------------------------------------- | Accumulated depreciations on | | | -------------------------------------------------------------------------------- | disposals and transfers | 0 | -50 | -------------------------------------------------------------------------------- | Depreciation for the | | | -------------------------------------------------------------------------------- | financial period | -1 544 | -1 574 | -------------------------------------------------------------------------------- | Impairments | 0 | 477 | -------------------------------------------------------------------------------- | Accumulated depreciation and | | | -------------------------------------------------------------------------------- | amortization at the end | | | -------------------------------------------------------------------------------- | of the period | -29 277 | -29 014 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Book value at the beginnig | | | -------------------------------------------------------------------------------- | of the period | 10 993 | 12 542 | -------------------------------------------------------------------------------- | Book value at the end | | | -------------------------------------------------------------------------------- | of the period | 11 175 | 10 993 | -------------------------------------------------------------------------------- 9. Share-based payments The effect of the share-based remunerations to the profit of Raute Group was EUR 115.8 thousand. At the end of the financial year the current value of the cash portion was EUR 6.40 per share. The fair value of granted share-based remunerations was EUR 0.4 million in total. -------------------------------------------------------------------------------- | 10. Other leases and operating | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | lease liabilities | | | -------------------------------------------------------------------------------- | Group as lessee | | | -------------------------------------------------------------------------------- | Minimum rents paid on the basis of | | | -------------------------------------------------------------------------------- | other non-cancellable leases: | | | -------------------------------------------------------------------------------- | - Within one year | 273 | 127 | -------------------------------------------------------------------------------- | - After the period of more than 1 | | | -------------------------------------------------------------------------------- | and less than 5 years | 464 | 370 | -------------------------------------------------------------------------------- | TOTAL | 737 | 497 | -------------------------------------------------------------------------------- The Group has rented in a part of its office premises. The rental agreements are made for the time being or for the fixed-term. The agreements made for a fixed-term include an option to extend the rental period after the date of initial expiration. -------------------------------------------------------------------------------- | Minimum direct leasing rents | | | -------------------------------------------------------------------------------- | paid on the basis of | | | -------------------------------------------------------------------------------- | non-cancellable direct leasing | | | -------------------------------------------------------------------------------- | contracts: | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | - Within one year | 12 | 60 | -------------------------------------------------------------------------------- | - 1-5 years | 2 | 60 | -------------------------------------------------------------------------------- | TOTAL | 14 | 120 | -------------------------------------------------------------------------------- 11. Pledged assets and contingent liabilities Pledged assets Debts secured by mortgages Raute Group has long-term bilateral credit facilities worth EUR 17 million (MEUR 15), of which EUR 14 million (MEUR 15) were unused on December 31, 2008. Raute Corporation has a EUR 10 million (MEUR 10) domestic commercial paper program, which is arranged by Nordea Bank Finland Plc. Within the limits of the program, the company can issue commercial papers maturing in less than one year. -------------------------------------------------------------------------------- | Contingent liabilities and | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | other liabilities | | | -------------------------------------------------------------------------------- | For own debt | | | -------------------------------------------------------------------------------- | - Mortgages on real property | 134 | 134 | -------------------------------------------------------------------------------- | - Business mortgages | 10 000 | 10 000 | -------------------------------------------------------------------------------- | Security for Group's liabilities | | | -------------------------------------------------------------------------------- | - Bank guarantees | 8 928 | 17 584 | -------------------------------------------------------------------------------- | Other own liabilities | | | -------------------------------------------------------------------------------- | Leasing and rent liabilities | | | -------------------------------------------------------------------------------- | - For the current accounting | | | -------------------------------------------------------------------------------- | period | 285 | 187 | -------------------------------------------------------------------------------- | - For subsequent accounting | | | -------------------------------------------------------------------------------- | periods | 466 | 430 | -------------------------------------------------------------------------------- No loans or pledges have been given or other commitments made on behalf of the company's management or shareholders. -------------------------------------------------------------------------------- | 12. Currency derivatives | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Currency derivatives are used for hedging purposes. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Nominal values of forward | | | -------------------------------------------------------------------------------- | contracts in foreign currency | | | -------------------------------------------------------------------------------- | Economic hedging | | | -------------------------------------------------------------------------------- | - Related to financing | 3 186 | 3 277 | -------------------------------------------------------------------------------- | - Related to hedging of net sales | 532 | 2 481 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values of forward contracts | | | -------------------------------------------------------------------------------- | in foreign currency | | | -------------------------------------------------------------------------------- | Economic hedging | | | -------------------------------------------------------------------------------- | - Related to financing | 170 | -30 | -------------------------------------------------------------------------------- | - Related to the hedging | | | -------------------------------------------------------------------------------- | of net sales | -8 | 360 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | GROUP KEY RATIOS | 1.1.-31.12. | 1.1.-31.12. | -------------------------------------------------------------------------------- | | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on investment (ROI), % | 19,4 | 29,2 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | 14,0 | 21,1 | -------------------------------------------------------------------------------- | Gearing, % | -31,0 | -32,5 | -------------------------------------------------------------------------------- | Equity ratio, % | 60,5 | 70,3 | -------------------------------------------------------------------------------- | Order book, MEUR | 24 | 56 | -------------------------------------------------------------------------------- | Order intake, MEUR | 67 | 90 | -------------------------------------------------------------------------------- | Exported portion of net sales, % | 84,0 | 87,3 | -------------------------------------------------------------------------------- | Change in net sales, % | -11,1 | 4,3 | -------------------------------------------------------------------------------- | Gross capital expenditure, MEUR | 3,2 | 1,9 | -------------------------------------------------------------------------------- | % of net sales | 3,3 | 1,7 | -------------------------------------------------------------------------------- | Research and development, MEUR | 4,9 | 4,3 | -------------------------------------------------------------------------------- | % of net sales | 5,0 | 3,9 | -------------------------------------------------------------------------------- | Earnings per share (EPS), EUR | | | -------------------------------------------------------------------------------- | - undiluted | 1,18 | 1,65 | -------------------------------------------------------------------------------- | - diluted | 1,18 | 1,65 | -------------------------------------------------------------------------------- | Equity to share, EUR | 8,57 | 8,29 | -------------------------------------------------------------------------------- | Dividend per share | | | -------------------------------------------------------------------------------- | series K shares, EUR | 0,70* | 1,00 | -------------------------------------------------------------------------------- | Dividend per share | | | -------------------------------------------------------------------------------- | series A shares, EUR | 0,70* | 1,00 | -------------------------------------------------------------------------------- | Dividend per profit, % | 59,4 | 60,7 | -------------------------------------------------------------------------------- | Effective dividend return, % | 10,9 | 7,0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share price at the end of | | | -------------------------------------------------------------------------------- | the period, EUR | 6,40 | 14,35 | -------------------------------------------------------------------------------- | Number of shares | | | -------------------------------------------------------------------------------- | - weighted average, 1 000 pcs | 4 005 | 4 005 | -------------------------------------------------------------------------------- | - diluted, 1 000 pcs | 4 005 | 4 005 | -------------------------------------------------------------------------------- * The Board of Directors' proposal to the Annual General Meeting. CALCULATION OF KEY RATIOS Return on investment (ROI), % = Profit before tax + financial expenses ----------------------------------------------------------- x 100 Shareholders' equity + interest-bearing financial liabilities (average of the financial year) Return on equity (ROE), % = Profit/loss for the period ----------------------------------------------------------- x 100 Shareholders' equity (average of the financial year) Interest-bearing net liabilities = Interest-bearing liabilities ./. (cash and cash equivalents + financial assets at fair value through profit or loss) Equity ratio, % = Shareholders' equity ----------------------------------------------------------- x 100 Balance Sheet total ./. advances received Earnings per share, undiluted, euros = Profit for the financial year ----------------------------------------------------------- Equity issue-adjusted average number of shares during the financial year Earnings per share, diluted, euros = Diluted profit for the financial year ----------------------------------------------------------- Diluted equity issue-adjusted average number of shares Equity to share, euros = Share of shareholders' equity belonging to the owners of the Parent company ----------------------------------------------------------- Undiluted number of shares at the day of the financial statements Dividend per share, euros = Distributed dividend for the financial year ----------------------------------------------------------- Undiluted number of shares at the day of the financial statements Dividend per profit, % = Dividend per share ----------------------------------------------------------- x 100 Earnings per share Effective dividend return, % = Dividend per share ----------------------------------------------------------- x 100 Closing share price at Dec. 31 Price/earnings ratio (P/E ratio) = Closing share price at Dec. 31 ----------------------------------------------------------- Earnings per share Trend in share turnover, in volume and percentage figures (series A shares) The trend in turnover of shares is given as the number of shares traded during the financial year and as the percentage of the average undiluted number of traded shares relative to issued share stock during the year. Market value of capital stock = Undiluted number of shares at year end (series A + series K shares) x closing price of the share on the last day of the financial year Gearing, % = Interest-bearing net financial liabilities ---------------------------------------------------------- x 100 Shareholders' equity -------------------------------------------------------------------------------- | THE DEVELOPMENT OF QUARTERLY RESULTS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Q 4 | Q 3 | Q 2 | Q 1 | Rolling | Rolling | -------------------------------------------------------------------------------- | | 2008 | 2008 | 2008 | 2008 | 1.1.2008 | 1.1.2007 | -------------------------------------------------------------------------------- | | | | | | - | - | -------------------------------------------------------------------------------- | | | | | | 31.12.200 | 31.12.200 | | | | | | | 8 | 7 | -------------------------------------------------------------------------------- | NET SALES | 18 619 | 25 227 | 30 710 | 23 910 | 98 466 | 110 799 | -------------------------------------------------------------------------------- | Other operating | | | | | | | -------------------------------------------------------------------------------- | income | 14 | 29 | 26 | 27 | 95 | 461 | -------------------------------------------------------------------------------- | Increase (+) or | | | | | | | -------------------------------------------------------------------------------- | decrease (-) in | | | | | | | -------------------------------------------------------------------------------- | inventories of | | | | | | | -------------------------------------------------------------------------------- | finished goods | | | | | | | -------------------------------------------------------------------------------- | and work | | | | | | | -------------------------------------------------------------------------------- | in progress | -108 | -65 | 381 | 196 | 404 | 42 | -------------------------------------------------------------------------------- | Materials and | | | | | | | -------------------------------------------------------------------------------- | services | 8 218 | 13 735 | 17 293 | 11 661 | 50 906 | 60 999 | -------------------------------------------------------------------------------- | Expenses | | | | | | | -------------------------------------------------------------------------------- | from employee | | | | | | | -------------------------------------------------------------------------------- | benefits | 7 062 | 6 541 | 7 858 | 7 131 | 28 592 | 28 875 | -------------------------------------------------------------------------------- | Depreciation, | | | | | | | -------------------------------------------------------------------------------- | amortization | | | | | | | -------------------------------------------------------------------------------- | and impairment | | | | | | | -------------------------------------------------------------------------------- | charges | 692 | 699 | 720 | 641 | 2 751 | 2 654 | -------------------------------------------------------------------------------- | Other operating | | | | | | | -------------------------------------------------------------------------------- | expenses | 2 347 | 1 988 | 2 543 | 3 497 | 10 375 | 10 166 | -------------------------------------------------------------------------------- | Total operating | | | | | | | -------------------------------------------------------------------------------- | expenses | 18 318 | 22 962 | 28 413 | 22 931 | 92 624 | 102 695 | -------------------------------------------------------------------------------- | OPERATING | 206 | 2 228 | 2 704 | 1 202 | 6 341 | 8 607 | | PROFIT | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 1 | 9 | 9 | 5 | 6 | 8 | -------------------------------------------------------------------------------- | Financial | 550 | 75 | 190 | 453 | 1 268 | 660 | | income | | | | | | | -------------------------------------------------------------------------------- | Financial | -448 | 26 | 22 | -330 | -729 | -291 | | expenses | | | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE | 309 | 2 329 | 2 916 | 1 325 | 6 880 | 8 976 | | TAX | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 2 | 9 | 9 | 6 | 7 | 8 | -------------------------------------------------------------------------------- | Income taxes | -131 | -733 | -920 | -373 | -2 157 | -2 375 | -------------------------------------------------------------------------------- | PROFIT FOR THE | | | | | | | -------------------------------------------------------------------------------- | PERIOD | 177 | 1 597 | 1 996 | 952 | 4 723 | 6 601 | -------------------------------------------------------------------------------- | % of net sales | 1 | 6 | 6 | 4 | 5 | 6 | -------------------------------------------------------------------------------- | Attributable to | | | | | | | -------------------------------------------------------------------------------- | Equity holders | | | | | | | | of | | | | | | | -------------------------------------------------------------------------------- | the Parent | 177 | 1 597 | 1 996 | 952 | 4 723 | 6 601 | | company | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | | | | | | | -------------------------------------------------------------------------------- | share, EUR | | | | | | | -------------------------------------------------------------------------------- | Undiluted | | | | | | | -------------------------------------------------------------------------------- | earnings | | | | | | | -------------------------------------------------------------------------------- | per share | 0,04 | 0,40 | 0,50 | 0,24 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Diluted | | | | | | | | earnings | | | | | | | -------------------------------------------------------------------------------- | per share | 0,04 | 0,40 | 0,50 | 0,24 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shares, | | | | | | | -------------------------------------------------------------------------------- | 1 000 pcs | | | | | | | -------------------------------------------------------------------------------- | Adjusted | | | | | | | -------------------------------------------------------------------------------- | average number | | | | | | | -------------------------------------------------------------------------------- | of shares | 4 005 | 4 005 | 4 005 | 4 005 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Adjusted | | | | | | | -------------------------------------------------------------------------------- | average number | | | | | | | -------------------------------------------------------------------------------- | of shares, | | | | | | | -------------------------------------------------------------------------------- | diluted | 4 005 | 4 005 | 4 005 | 4 005 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 20 LARGEST SHAREHOLDERS AT | Number of | Number of | | -------------------------------------------------------------------------------- | 31 DECEMBER, 2008 | series K | series A | | -------------------------------------------------------------------------------- | | shares | shares | Total | -------------------------------------------------------------------------------- | | (20 votes | (1 vote | number | -------------------------------------------------------------------------------- | | per share) | per share) | of shares | -------------------------------------------------------------------------------- | 1. Sundholm Göran | | 525 000 | 525 000 | -------------------------------------------------------------------------------- | 2. Hietala Pekka Tapani | | 181 900 | 181 900 | -------------------------------------------------------------------------------- | 3. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 | -------------------------------------------------------------------------------- | 4. Mustakallio Kari Pauli | 60 480 | 60 009 | 120 489 | -------------------------------------------------------------------------------- | 5. Kirmo Kaisa Marketta | 50 280 | 64 052 | 114 332 | -------------------------------------------------------------------------------- | 6. Suominen Pekka Matias | 48 000 | 64 159 | 112 159 | -------------------------------------------------------------------------------- | 7. Suominen Tiina Sini-Maria | 48 000 | 62 316 | 110 316 | -------------------------------------------------------------------------------- | 8. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | -------------------------------------------------------------------------------- | 9. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | -------------------------------------------------------------------------------- | 10. Särkijärvi Riitta | 60 480 | 22 009 | 82 489 | -------------------------------------------------------------------------------- | 11. Mustakallio Mika | 39 750 | 42 670 | 82 420 | -------------------------------------------------------------------------------- | 12. Mustakallio Risto | 42 240 | 35 862 | 78 102 | -------------------------------------------------------------------------------- | 13. Mustakallio Ulla Sinikka | 47 240 | 30 862 | 78 102 | -------------------------------------------------------------------------------- | 14. Sr Arvo Finland Value | | 63 042 | 63 042 | -------------------------------------------------------------------------------- | 15. Mustakallio Marja Helena | 42 240 | 20 662 | 62 902 | -------------------------------------------------------------------------------- | 16. Kirmo Lasse Antti | 30 000 | 26 200 | 56 200 | -------------------------------------------------------------------------------- | 17. Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 | -------------------------------------------------------------------------------- | 18. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 | -------------------------------------------------------------------------------- | 19. Mustakallio Kai Henrik | 47 420 | 6 994 | 54 414 | -------------------------------------------------------------------------------- | 20. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | -------------------------------------------------------------------------------- | TOTAL | 697 330 | 1 499 627 | 2 196 957 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share of total amount of shares, % | 70,4 | 49,8 | 54,9 | -------------------------------------------------------------------------------- | Share of total voting rights, % | 70,4 | 49,8 | 67,6 | -------------------------------------------------------------------------------- | Administrative registered | | 97 969 | 97 969 | -------------------------------------------------------------------------------- | Other shareholders | 293 831 | 1 416 001 | 1 709 832 | -------------------------------------------------------------------------------- | TOTAL | 991 161 | 3 013 597 | 4 004 758 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | MANAGEMENT'S SHAREHOLDING | 98 990 | 90 838 | 189 828 | -------------------------------------------------------------------------------- | Share of total amount of shares, % | 10,0 | 3,0 | 4,7 | -------------------------------------------------------------------------------- | Share of total voting rights, % | 10,0 | 3,0 | 9,1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHARE INFORMATION | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 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 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Trading of series A shares | | | -------------------------------------------------------------------------------- | Trading of shares, pcs | 392 693 | 981 095 | -------------------------------------------------------------------------------- | Trading of shares, MEUR | 4,9 | 13,7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share price of series A shares | | | -------------------------------------------------------------------------------- | At the end of reporting period, EUR | 6,40 | 14,35 | -------------------------------------------------------------------------------- | Highest price during | | | -------------------------------------------------------------------------------- | the reporting period, EUR | 15,20 | 15,45 | -------------------------------------------------------------------------------- | Lowest price during | | | -------------------------------------------------------------------------------- | the reporting period, EUR | 6,24 | 12,40 | -------------------------------------------------------------------------------- | Average price during | | | -------------------------------------------------------------------------------- | the reporting period, EUR | 12,37 | 13,85 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Market value of capital stock | | | -------------------------------------------------------------------------------- | Series K shares valued at the | | | -------------------------------------------------------------------------------- | value of series A shares | | | -------------------------------------------------------------------------------- | at the end of reporting period. | | | -------------------------------------------------------------------------------- | - Series K shares, MEUR | 6,3 | 14,2 | -------------------------------------------------------------------------------- | - Series A shares, MEUR | 19,3 | 43,2 | -------------------------------------------------------------------------------- | Total, MEUR | 25,6 | 57,5 | -------------------------------------------------------------------------------- RAUTE CORPORATION Board of Directors 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 RAUTE IN BRIEF: Raute is a technology company serving the wood products industry worldwide. Its most important customers are the plywood and LVL industries. The company is one of the world's leading suppliers of mill-scale projects to these customer industries. The total service concept also includes technology services, with which Raute supports its customers throughout the entire life cycle of their investments. Raute's head office and main production plant are in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Jyväskylä and Kajaani, Finland. Net sales in 2008 were EUR 98.5 million and the number of personnel 573. More information on the company can be found at www.raute.com. DISTRIBUTION: NASDAQ OMX Helsinki Ltd, main media, www.raute.com
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