2012-02-15 16:30:00 CET
2012-02-15 16:30:41 CET
REGULATED INFORMATION
Honkarakenne Oyj - Financial Statement Release
HONKARAKENNE OYJ FINANCIAL STATEMENT RELEASE 1 JANUARY - 31 DECEMBER 2011
HONKARAKENNE OYJ FINANCIAL STATEMENT RELEASE 15 February 2012 at 5:30 pm
HONKARAKENNE OYJ FINANCIAL STATEMENT RELEASE 1 JANUARY - 31 DECEMBER 2011
SUMMARY
The result before taxes for the whole year increased despite decreasing
revenues.
September-December 2011
-- Honkarakenne Group's consolidated net sales for the last quarter of the
year amounted to EUR 13.6 million (EUR 15.0 million in 2010), a decrease of
9% on the previous year's corresponding period
-- Operating profit was EUR -0.2 million (EUR 0.5 million). Operating profit
without non-recurring items was EUR -0.2 million (EUR 0.6 million)
-- Profit before taxes was EUR -0.4 million (EUR 0.2 million)
-- Earnings per share amounted to EUR -0.10 (EUR 0.20)
Year 2011
-- Honkarakenne Group's consolidated net sales for the entire year amounted to
EUR 55.0 million (EUR 58.1 million), a decrease of 5% on the previous
year's corresponding period
-- Operating profit was EUR 1.9 million (EUR 1.3 million), increase 38 %.
Operating profit without non-recurring items was EUR 1.6 million (EUR 2.5
million)
-- Profit before taxes was EUR 1.1 million (EUR 0.4 million)
-- Earnings per share amounted to EUR 0.17 (EUR 0.23)
The Board shall propose at the Annual General Meeting that no dividend should
be distributed for the financial year ending on 31 December 2011 and that the
remaining available funds remain in the unrestricted shareholders' equity. The
Board proposes that capital repayment of EUR 0.08 per share will be distributed
from the fund for invested unrestricted equity.
Net sales and result before taxes for 2012 are forecasted to remain at the
previous year's level. The first quarter of the year will be financially
negative due to seasonal variation. The risk relating to the profit forecast is
that the company's order book at year-end is 25% below the previous year's
level.
KEY FIGURES 10-12/ 10-12/ 1-12/ 1-12/ change
2011 2010 2011 2010 %
Net sales, MEUR 13.6 15.0 55.0 58.1 -5.3
Operating profit/loss, MEUR -0.2 0.5 1.9 1.3
Operating profit before non-recurring -0.2 0.6 1.6 2.5
items, MEUR
Profit/loss before taxes, MEUR -0.4 0.2 1.1 0.4
Average number of personnel 265 291
Earnings/share (EPS), EUR -0.10 0.20 0.17 0.23
Equity ratio, % 53 42
Return on equity, % 5 7
Shareholders' equity/share, EUR 3.7 3.6
Gearing, % 35 73
Mikko Jaskari, acting President and CEO of Honkarakenne Oyj, in connection with
the financial statement release:
Honkarakenne's net result before taxes for the entire year was satisfactory,
considering the circumstances. Despite difficult market situation the result
before taxes improved compared to the previous year and especially the
financial position of the group was in the targeted level in the end of the
year. The Group's equity ratio was 53% (42%) and net gearing was 35 % (73%).
The economic recession affected the sales in the end of the year. The
development of sales was not satisfactory in the third and in the fourth
quarter. The sales in market areas Far East, East and Other Markets were higher
than in the previous year. In Finland and West the sales were lower in the
previous year. Especially sales in the West were lower than targeted.
The main focus in 2012 will be on expediting sales. Honkarakenne will continue
focusing on its premium and luxury strategy. This will be shown especially in
design during 2012. In Finland growth will be sought in the residential house
business and from urban construction projects based on wood. In exports,
premium products, such as Honka Fusion™, will be developed further.
In the end of 2011 we started sales excellence training in Finland. The first
results have been very promising and the training program will be rolled out to
the whole international sales channel during 2012. The importance of personal
sales skills is crucial in the difficult market situation.
NET SALES
Honkarakenne Group's net sales for the year 2011 decreased by 5 per cent to EUR
55.0 million (EUR 58.1 million), the net sales in Finland reduced by 11 per
cent to EUR 22.9 million (EUR 25.7 million), and export net sales reduced by 1
per cent to EUR 30.6 million (EUR 30.8 million).
The Group's last-quarter net sales in 2011 decreased by 9 per cent to EUR 13.6
million (EUR 15.0 million). The net sales in Finland reduced by 7 per cent to
one million EUR (EUR 5.7 million), and export net sales reduced by 10 per cent
to EUR 8.6 million (EUR 9.5 million).
Geographical distribution of net sales:
DEVELOPMENT OF SALES
Distribution of 1-12/ 1-12/
net sales, % 2011 2010
Finland 42 % 44 %
West 14 % 19 %
East 25 % 22 %
Far East 13 % 10 %
Other Markets 4 % 2 %
Process waste sales for recycling 3 % 2 %
Total 100 % 100 %
Net sales, MEUR 10-12/ 10-12/ Change 1-12/ 1-12/ Change
2011 2010 % 2011 2010 %
Finland 4.9 5.3 -7 % 22.9 25.7 -11 %
West 1.7 3.0 -45 % 7.8 11.3 -31 %
East 4.0 4.5 -11 % 13.9 12.8 9 %
Far East 2.4 1.8 32 % 6.9 5.7 21 %
Other Markets 0.5 0.1 268 % 2.0 1.1 70 %
Process waste sales for recycling 0.2 0.2 -17 % 1.5 1.4 6 %
Total 13.6 15.0 55.0 58.1 -5 %
West, includes the following countries: Netherlands, Belgium, Spain, Ireland,
Great Britain, Iceland, Italy, Austria, Greece, Cyprus, Latvia, Lithuania,
Luxembourg, Norway, Portugal, Poland, France, Sweden, Germany, Slovakia,
Slovenia, Switzerland, Denmark, Czech Republic, Hungary and Estonia.
East, includes the following countries: Azerbaijan, Kazakhstan, Ukraine, Russia
and other CIS countries.
Far East, includes South Korea and Japan.
Other markets, includes the following countries: Bulgaria, China, Croatia,
Mongolia, North and South America, Romania, Serbia, Turkey as well as new
target countries and markets.
In addition, the sales of factory process waste for recycling will be reported
separately from the actual Honkarakenne core business operations.
DEVELOPMENT OF PROFIT AND PROFITABILITY
Operating profit in 2011 was MEUR 1.9 (MEUR 1.3), and profit before taxes was
MEUR 1.1 (MEUR 0.4).
The calculations below present the change in operating profit from 2010 to 2011.
Operating profit 2010 without non-recurring items 2.5
Improvement programme and increase in sales -1.0
Other items +0.1
Operating profit 2010 without non-recurring items 1.6
Non-recurring items +0.3
Operating profit 2011 1.9
Non-recurring items 2011 includes a positive item generated by the sale of the
shareholding in Karjalan Lisenssisaha Invest Oy of MEUR 0.34 and non-recurring
implementation expenditure for the improvement programme amounting to MEUR
0.06.
The goal of the improvement programme initiated by the Group at the beginning
of 2010 is to increase the result by MEUR 8 within two years. Of this, MEUR 5.1
was achieved in 2010, and for 2011 the targeted improvement was MEUR 2.9. The
targeted improvement was not achieved and operating profit without
non-recurring items decreased from previous year. The negative result of the
improvement programme is a result of the fact that the development of sales was
not satisfactory, which is why the required volumes have not been secured for
the improvement programme.
FINANCING AND INVESTMENTS
In the course of the period under review, the financial position of the Group
strengthened. The equity ratio stood at 53% (42%) and interest-bearing net
liabilities at MEUR 6.1 (MEUR 12.8). MEUR 0.8 (3.2) of the interest-bearing net
liabilities carries a 30% equity ratio covenant term. Group liquid assets
totalled MEUR 2.6 (MEUR 1.9). The Group also has a MEUR 10.0 bank overdraft
facility, MEUR 9.2 (MEUR 6.8) of which had not been drawn on at the end of the
report period. Gearing stood at 35% (73%). The Group's capital expenditure
totalled MEUR 1.0 (MEUR 0.6), at the same period depreciations were 3.3 MEUR
(MEUR 3.7).
The Group arranged its financial position in December 2011. A new loan
agreement was made in December and the loan arrangements were put in place
after the review period in January 2012. After the arrangement in January the
short term loans decreased by 2.8 million euro and long term loans increased by
2.8 million euro. Additionally the bank overdraft facility was decreased by 2
million euro to 8 million euro.
MARKET DEVELOPMENT
Based on a report commissioned by RTS Oy, Finnish log house production value is
estimated to have grown by 1% in 2011. The figure includes production for
Finland and for overseas export.
For year 2012 the RTS Oy's report forecasts 6 % decrease in the market.
PRODUCTS AND MARKETING
In Finland main emphasis in 2011 was on energy efficient solutions, development
of vacation home models and development of urban consruction projects. In the
beginning of the year Honkarakenne brought Honka Säästö energy saving concept
to the market. This is a unique structural solution that allows holiday houses
with modern comforts to remain completely cold during the Winter Honka Säästö™
introduces significant reductions to the energy costs of vacation houses and
provides safety for example electricity black outs during Winter.
In 2011 Honkarakenne launched new vacation house models such as the Saariston
Tähti range, which is particularly directed at meeting the needs of vacation
homes in the archipelago areas.
Honkarakenne's Lokki -model, launched at the Holiday Housing Fair in
Mäntyharju, was elected the Log House of the Year by a jury summoned by
Hirsitaloteollisuus. The jury consisted of designer Ristomatti Ratia and
professor Jouni Koiso-Kanttila.
In August, Honkarakenne presented the regional development venture to be
implemented in Suurpelto in Espoo. Urban homes that will be of high quality and
ecologically sustainable will be built in Suurpelto using the collaborative
construction method.
In market area Westthe sales of Honka Fusion was especially promoted. In order
to boost sales, sales training was organised for all importers in the West
market area.
Single-family house models based on the Honka Fusion™ concept were launched in
Germany and the UK in the second quarter. Efforts were also be made especially
in Germany to recruit additional importers .
In the East, the new Jewels™ range of models in the premium segment was
launched in the second quarter. All houses in the Jewels™ range are large
single-family houses. The Jewels™ range has taken into account the typical
needs of customers in the premium segment of the East market area. The range
was well received in the market and the first deals were made immediately after
the launch. In the fourth quarter the sales promotion was mainly made through
fairs and new representatives were sought from the neighboring countries for
Russia.
In Far East, the first quarter was overshadowed by Japan's natural disaster in
March. In the second quarter the existing product ranges were renewed in
response to the development of customer needs. In order to support sales, a
concept handbook was prepared specifically for importers, which will facilitate
discussion between the seller and the customer when purchasing decisions are
being made. The natural disaster has increased the energy consciousness in
Japan. As a response Honkarakenne took the triple glass windows which are well
known in Nordic countries as a default in all house shipments to Japan.
In the Other Markets group sales was pursued from individual large projects
during the year. The sales network development was made mainly in North
American market where the sales network structure was changed during the second
and third quarter.
In the fourth quarter Honkarakenne streamlined its log range in all market
areas to fit better the customer demand and coming energy restrictions. This
renewal should give better customer satisfaction and cost efficiency in
planning new houses.
RESEARCH AND DEVELOPMENT
In January-December, the Group's R&D expenditures were EUR 0.5 million (EUR
0.6 million), 1.0% of net sales (1.1%). The Group has not activated development
costs during the financial year.
STAFF
During the year the Group employed 265 people (291) on average. This is 26 less
than at the same time in the previous year.
The Group employed 261 (266) people at the end of year.
At the end of the second quarter, Honkarakenne concluded co-operation
negotiations and as a result of these negotiations, it was agreed that
Honkarakenne may lay off its staff for a fixed period not exceeding 90 days up
by the end of March 2012. In the autumn market situation decreased and new
co-operation negotiations were initiated for both indefinite lay-offs and
temporary lay-offs during the last quarter of the year. Co-operation
negotiations were concluded on January 2012. As a result of negotiations 49
persons were laid off for an indefinite period and other personnel in Finland
can be laid off for maximum 90 days by the end of September 2012.
HONKARAKENNE OYJ'S 2011 ANNUAL GENERAL MEETING, BOARD OF DIRECTORS, AND AUDITORS
The Annual General Meeting (AGM) of Honkarakenne Oyj was held at the company's
headquarters in Tuusula on 1 April 2011. The AGM confirmed the financial
statements of the parent company and Group, and discharged from liability the
board members and CEOs for 2010. The AGM decided to pay a dividend of EUR 0.10
on B shares for the 2010 financial year.
Anders Adlercreutz, Lasse Kurkilahti, Mauri Saarelainen, Marko Saarelainen,
Mauri Niemi, Teijo Pankko and Pirjo Ruuska were elected to the Board of
Directors. The Board's organisation meeting elected Lasse Kurkilahti as
Chairman of the Board. Mauri Saarelainen is serving as Deputy Chairman of the
Board. Lasse Kurkilahti, Pirjo Ruuska and Teijo Pankko were elected to the
company's audit committee.
Authorised Public Accounting company KPMG Oy Ab was elected as auditor, the
main auditor being Authorised Public Accountant Reino Tikkanen.
AUTHORISATIONS OF THE BOARD OF DIRECTORS, RELATED DIRECTED ISSUE, MANAGEMENT
INCENTIVE SYSTEM, AND OWN SHARES
On 1 April 2011, the AGM decided that the Board of Directors was authorised to
acquire a maximum of 400,000 of the company's own B shares with assets included
in the company's unrestricted equity. In addition, the AGM authorised the Board
to decide on a rights issue or bonus issue and on granting special rights to
shares referred to in Section 1 of Chapter 10 of the Limited Liability
Companies Act in one or more instalments. By virtue of the authorisation, the
Board may issue a maximum total of 400,000 new shares and/or relinquish old B
shares held by the company, including those shares that can be issued by virtue
of special rights. Both authorisations will be valid until 25 March 2012.
On 31 May 2010, the Board of Directors of Honkarakenne Oyj decided on a share
ownership system for the management of the Honkarakenne Group, the purpose of
which is to enable the significant long-term ownership in the company by
management. In the second quarter, the Board decided to relinquish to Honka
Management Oy, a holding company set up by management, 17,250 of the company's
B shares in its possession in a directed rights issue in order to enlarge the
system, with Honkarakenne's new management team member, Sanna Wester, joining
it.
In the directed issue, Honkarakenne relinquished to Honka Management Oy a total
of 17,250 of its own shares (HONBS) as part of the share ownership system for
Honkarakenne management. The purchase price of the shares was EUR 5.26 each,
making a total of EUR 90,735.
After the transaction, Honka Management Oy now owns 286,250 B shares in
Honkarakenne Oyj.
During the period under review, Honkarakenne Oyj did not buy any of its own
shares. At the end of the period, the Group owned 364,385 B shares, with a
total purchase price of EUR 1,381,750.23. The proportion of these shares of the
company's share capital is 7.05% and represents 3.35% of all voting rights. The
purchase cost of the shares has been entered in the Group accounts to reduce
shareholders' equity. Honkarakenne Oyj's share capital comprises a total of
5,168,968 shares, of which
300,096 are A shares and 4,868,872 are B shares. Each B share yields one (1)
vote and each A share twenty (20) votes, so the total number of votes yielded
by all Honkarakenne's shares is 10,870,792. The company's share capital amounts
to EUR 9,897,936.00.
OWNERSHIP CHANGES IN ASSOCIATED COMPANIES
On 17 February 2011, Honkarakenne Oyj signed an agreement to sell its 37.5%
sharehold in Karjalan Lisenssisaha Invest Oy to FM Timber Team Oy. Karjalan
Lisenssisaha Invest Oy and its subsidiaries operate in the field of sawmill
industry in Russia. Honkarakenne relinquished its sharehold in Karjalan
Lisenssisaha Invest Oy as part of its aim to focus on its core operations.
CORPORATE GOVERNANCE
Honkarakenne Oyj follows the Limited Liability Companies Act and the Finnish
Corporate Governance Code, 1 October 2010, for listed companies issued by the
Finnish Securities Market Association. The company's website,
www.honka.com/investors, provides more information on the corporate governance
systems.
FORTHCOMING RISKS AND UNCERTAINTIES
During the last two quarters the amount of signed deals has decreased
significantly. This causes a risk in achieving the estimated revenue and profit
forecasts, if the decreasing trend cannot be turned.
The market situation in all Honkarakenne markets is uncertain. Market situation
may lead to overall decrease of demand which is a risk for achieving the
forecasted result level.
The consolidated financial statements include EUR 2.0 million (EUR 3.7 million)
of long-term receivables which are more than 180 days overdue, with no credit
loss provision. The Group has one significant concentration of credit risks in
sales receivables, concerning the open sales receivables of one importer. No
provision for doubtful debt has been made for this. The new sales made with
this importer have been paid according to the agreed terms. Deliveries to the
importer have continued, and the risks with the open sales receivables have not
increased. A payment plan agreement related to the matter was updated during
the second quarter of the year. These sales receivables have diminished during
2011.
The assessment of amounts in the balance sheet is based on current assessment
by the management. If these assessments are changed, this may result in changes
to the Group's result.
REPORTING
This report contains statements that relate to the future, and these statements
are based on hypotheses that the company's management hold currently as well as
on the decisions and plans that are currently in place. Although the management
believes that the hypotheses relating to the future are well-founded, there is
no guarantee that the said hypotheses will prove to be correct.
This financial statements bulletin has been prepared in line with standard IAS
34, Interim Financial Reporting. The new revised standards or interpretations
effective as of 1 January 2010 have no bearing on the figures presented for the
report period. The figures have not been examined by the auditor.
EVENTS AFTER THE REVIEW PERIOD
Honkarakenne CEO Esa Rautalinko resigned to pursue a new career opportunity on
27.1.2012. The Board of Directors has appointed Mikko Jaskari as acting
President and CEO of Honkarakenne as of February 2 2012. Search for a new CEO
is ongoing.
THE OUTLOOK FOR 2012
Net sales and result before taxes for 2012 are forecasted to remain at the
previous year's level.The first quarter of the year will be financially
negative due to seasonal variation. The risk relating to the profit forecast is
that the company's orderbook at year-end is 25% below the previous year's
level.
At the end of December, the Group's order book stood at MEUR 13.6, which was
MEUR 17.3 at the same period the previous year. The order book refers to orders
whose delivery date falls within the next 24 months. Some orders may include a
financing or building permit condition.
PROPOSAL OF THE BOARD OF DIRECTORS ON THE USE OF PROFIT FUNDS
The free capital of the parent company as of December 31 2011 was MEUR 3.6 of
which distributable assets were MEUR 0.7. The profit of the annual period in
the parent company was MEUR 0.3.
The Board shall propose at the Annual General Meeting that no dividend should
be distributed for the financial year ending on 31 December 2011 and that the
remaining available funds remain in the unrestricted shareholders' equity. The
Board proposes that capital repayment of EUR 0.08 per share will be distributed
from the fund for invested unrestricted equity.
GENERAL MEETING
The Annual General Meeting of Honkarakenne Oyj will be held at the company's
headquarters in Tuusula on Friday 30 March 2012 at 2:00 pm.
HONKARAKENNE OYJ
Board of Directors
Further information:
Mikko Jaskari, acting President and CEO, tel. +358 400 535 337,
mikko.jaskari@honka.com
This and previous releases are available for viewing on the company's website
at www.honka.com/investors. In week 10, Honkarakenne will publish on the
company's website at www.honka.com/investors report by the Board of Directors,
the financial statements and a separate Corporate Governance Statement. The
2012 interim reports will be published on 10 May 2012, 9 August 2012 and 8
November 2012.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com
CONSOLIDATED BALANCE SHEET 31.12.2011 31.12.2010
(unaudited)
(MEUR)
Assets
Non-current assets
Property, plant and equipment 19.0 21.6
Goodwill 0.1 0.1
Other intangible assets 0.7 1.0
Investments in associated companies 0.3 1.8
Other investments 0.2 0.4
Receivables 0.3 0.1
Deferred tax assets 1.1 1.6
21.7 26.5
Current assets
Inventories 7.1 9.9
Trade and other receivables 7.7 8.0
Cash and bank receivables 2.6 1.9
17.3 19.9
Total assets 39.0 46.4
31.12.2011 31.12.2010
Shareholders' equity and liabilities
Equity attributable to equity holders
of the parent
Capital stock 9.9 9.9
Share premium 0.5 0.5
Reserve fund 5.3 5.3
Unrestricted equity reserve 1.9 1.9
Translation differences 0.5 0.3
Retained earnings -0.2 -0.6
17.9 17.3
Non-controlling interests 0.2 0.2
Total equity 18.1 17.5
Non-current liabilities
Deferred tax liabilities 0.2 0.3
Provisions 0.3 0.4
Intrest bearing debt 5.1 11.1
Non-intrest bearing debt 0.0 0.0
5.6 11.8
Current liabilities
Trade and other payables 11.5 13.5
Tax liabilities 0.1 0.0
Intrest bearing debt 3.7 3.6
15.3 17.1
Total liabilities 20.9 28.9
Total equity and liabilities 39.0 46.4
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
(unaudited) 10-12 10-12 1-12 1-12
/2011 /2010 /2011 /2010
(MEUR)
Net sales 16.6 15.0 55.0 58.1
Other operating income 0.3 0.2 1.1 1.0
Change in inventories -1.8 -0.8 -2.0 0.3
Production for own use 0.0 0.0 0.0 0.0
Materials and services -5.7 -7.7 -28.9 -32.6
Employee benefit expenses -2.8 -3.1 -11.1 -12.2
Depreciations -0.9 -0.9 -3.3 -3.7
Other operating expenses -2.9 -2.3 -8.9 -9.6
Operating profit/loss 0.2 0.5 1.9 1.3
Financial income and expenses -0.2 -0.1 -0.7 -0.7
Share of associated companies' 0.0 -0.2 -0.1 -0.2
profit
Profit/loss before taxes -0.4 -0.2 1.1 0.4
Taxes -0.1 0.7 -0.3 0.7
Profit/loss for the period -0.5 0.9 0.8 1.1
Other comprehensive income:
Translation differences 0.0 0.1 0.1 0.3
Total comprehensive -0.5 1.0 0.9 1.4
income for the period
Attributable to:
Equity holders of the parent -0.5 1.0 0.9 1.4
Non-controlling interest -0.0 0.0 0.0 0.0
-0.5 1.0 0.9 1.4
Earnings/share (EPS), EUR
Basic -0.10 0.20 0.17 0.23
Diluted -0.10 0.20 0.17 0.23
STATEMENT OF CHANGES IN EQUITY
(unaudited)
1000 EUR Equity attributable to equity holders of the
parent
a) b) c) d) e) f) g) Total h) Total
equity
Total equity 7.498 520 5.316 29 -1.138 82 12.307 9 12.316
1.1.2010
Share issue 2.400 1.081 3.480 3.480
Management 816 -816 0 203 203
Incentive
plan
Purchase of -182 -182 -182
own shares
Proceeds from 758 -414 344 344
sale of
own shares
Total 290 1.103 1.393 -11 1382
comprehensiv
e income for
the period
Total equity 9.898 520 5.316 1.896 319 -1.378 771 17.342 200 17.542
31.12.2010
a) b) c) d) e) f) g) Total h) Total
equity
Total equity 9.898 520 5.316 1.896 319 -1.378 771 17.342 200 17.542
1.1.2011
Dividends -445 -445 -445
Proceeds from 40 40
sale of
own shares
Total 143 823 966 2 968
comprehensiv
e income for
the period
Total equity 9.898 520 5.316 1.896 462 -1.378 1.149 17.863 242 18.104
31.12.2011
a) Share capital
b) Premium fund
c) Reserve fund
d) Unrestricted equity reserve
e) Translation difference
f) Own shares
g) Retained earnings
h) Non-controlling interests
CONSOLIDATED CASH FLOW STATEMENT 1.1.- 1.1.-
(Unaudited) 31.12.2011 31.12.2010
(MEUR)
Cash flow from operations 6.0 2.8
Cash flow from investments, net 0.9 -0.8
Total cash flow from financing -6.3 -1.8
Share issue 3.5
Sale of own shares 0.3
Dividends -0,5
Increase in credit capital
Decrease in credit capital -5.6 -5.4
Other financial items -0.2 -0.3
Change in liquid assets 0.7 0.2
Liquid assets at the beginning of period 1.9 1.7
Liquid assets at the end of period 2.6 1.9
NOTES TO THE FINANCIAL STATEMENT RELEASE
Calculation methods
This financial statements release has been prepared in line with standard IAS
34, Interim Financial Reporting. In preparing this financial statement release,
Honkarakenne has observed the same preparation principles as in its annual
financial statements of 2010, yet so that Honkarakenne has applied the new and
changed standards and interpretations introduced in 2011. The new revised
standards or interpretations effective as of 1 January 2011 have no bearing on
the figures presented for the report period. The figures have not been examined
by the auditor.
According to the management's view, the implementation of the above-mentioned
standards and interpretations has not had an impact on the figures presented
concerning the report period.
Honka Management Oy, established previous year and owned by the top management
of the company, has been included in the consolidated financial statements due
to the terms and conditions of the shareholder agreement concluded between it
and Honkarakenne Oyj.
Honkarakenne has one operating segment, the manufacture, sales and marketing of
log houses, under the Honka brand. Geographically, the sales of the Group
divide as follows: Finland, Central Europe, Far East, and other countries. The
internal reporting of the management is in line with IFRS reporting. For this
reason, separate reconciliations are not presented.
The figures have not been examined by the auditor.
TANGIBLE ASSETS
(Unaudited) Tangible
(MEUR) assets
Acquisition cost 1.1.2011 67.0
Translation difference (+/-) 0.2
Increase 0.8
Decrease -1.4
Transfers between balance sheet items -0.0
Acquisition cost 31.12.2011 66.7
Accumulated depreciation 1.1.2011 -45.4
Translation difference (+/-) -0.2
Disposals and reclassifications 0.8
Depreciation for the period -2.8
Accumulated depreciation 31.12.2011 -47.7
Book value 1.1.2011 21.6
Book value 31.12.2011 19.0
Own shares
During the second quarter, by virtue of authorization granted by the AGM, the
Board of Directors of the company decided to organize a rights issue of 17,250
shares. In the rights issue, in an exception to the shareholders' subscription
privilege, Honkarakenne relinquished 17,250 Honkarakenne B shares for the
subscription of Honka Management at a price of EUR 5.26 per share. As a result
of the issue, management group members now own 5.5% of Honkarakenne's shares
and 2.63% of the company's voting rights. Because Honka Management Oy has been
consolidated into the figures for the Honkarakenne Group, the purchase cost for
these shares has been entered in the consolidated accounts to reduce the
Group's shareholders' equity.
At the end of the report period, the Group held 364,385 of its Honkarakenne B
shares with a total purchase price of EUR 1,377.609,57. These shares represent
7.05% of the company's capital stock and 3.35% of all votes.
CONTINGENT LIABILITIES
(Unaudited) 31.12.2011 31.12.2010
MEUR
For own loans
- Mortgages 25.7 25.7
- Pledged shares
- Other guarantees 1.8 2.3
For others
- guarantees 0.2 0.7
Leasing liabilities 0.4 0.3
Rent liabilities
Nominal values of forward exchange contracts 3.4 2.8
Derivative contracts 0.4 0.3
Events in the circle of acquaintances
The Group's circle of acquaintances consists of subsidiaries, associated
companies and the company's management. The management included in the circle
of acquaintances comprises the Board of Directors, CEO and the company's
managing committee.
Honka Management Oy, owned by the top management of the company, has received
from Honkarakenne Oyj a long-term loan of EUR 0.9 million.
KEY INDICATORS 1-12 1-12
(Unaudited) 2011 2010
Earnings/share (EPS) eur 0.17 0.23
Return on equity % 4.6 7.3
Equity ratio % 52.6 42.4
Shareholders equity/share eur 3.7 3.6
Net debt MEUR 6.1 12.8
Gearing % 34.5 73.1
Gross investments MEUR 1.0 0.5
% of net sales 1.8 0.8
Order book MEUR 13.6 18.0
Average number of personnel Staff 123 135
Workers 142 156
Total 265 291
Due to the issue of new shares, the historical indicators by share have been
corrected using the following formula: average number of shares x 1.01.
CALCULATION OF KEY INDICATORS
Profit for the period attributable to equity holders of
parent
Earnings/share (EPS) -----------------------------------------
Average number of outstanding shares Profit before taxes - taxes
Return on equity % -----------------------------------------
Total equity, average
Total equity
Equity ratio, % -----------------------------------------
Balance sheet total - advances received
Net debt Interest-bearing debt - cash and cash equivalents
Interest-bearing debt - cash and cash equivalents
Gearing, % -----------------------------------------
Total equity
Shareholders' equity
Shareholders -----------------------------------------
equity/share
Number of shares outstanding at end of period
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