2010-02-03 11:10:00 CET
2010-02-03 11:11:19 CET
REGULATED INFORMATION
Ahlstrom - Financial Statement Release
Ahlstrom financial statements bulletin 2009: Cash flow and balance sheet strengthened considerably
Ahlstrom Corporation STOCK EXCHANGE RELEASE 3.2.2010 at 12.10
Year 2009 compared to 2008
· Net sales were EUR 1,596.1 million (1,802.4).
· EBIT amounted to EUR -14.6 (14.6) including non-recurring items of EUR
-54.3 million (-21.1).
· Loss before taxes was EUR 40.1 million (loss before taxes 20.6) and
earnings per share were EUR -0.72 (-0.38).
· Net cash from operating activities increased to EUR 209.6 million
(102.4), and gearing ratio decreased to 57.7% (95.3%).
October-December 2009 compared to October-December 2008
· Net sales were EUR 420.5 million (419.0).
· EBIT amounted to EUR -26.6 (-35.4) including non-recurring items of
EUR
-46.2 million (-21.7).
· Loss before taxes was EUR 33.4 million (loss before taxes 49.5) and
earnings per share were EUR -0.61 (-0.79).
· Net cash from operating activities increased to EUR 48.6 million
(31.5).
Events in 2009
· Ahlstrom's revised strategy was published in October.
· In November, the company issued a EUR 80 million hybrid bond to
strengthen its balance sheet.
· The number of employees decreased by 524 people and working capital by
EUR 104.3 million with turnover improving by 23 days during the year.
Outlook for 2010
* The market sentiment during the latter half of 2009 improved. Net sales for
2010 are expected to increase compared to 2009 but remain lower than the
level for 2008. Operating profit (EBIT) excluding non-recurring items is
expected to increase compared to 2009.
Jan Lång, President and CEO:
- The personnel excellently implemented the streamlining efforts to
improve profitability and cash flow. The EUR 55 million annual savings will be
reached in 2010 as planned. The streamlining and the recovering demand since the
summer returned our EBIT excl. non-recurring items back to a profitable path
toward the end of the year. However, due to the difficult first months,
non-recurring items from the streamlining efforts and impairment charges, the
EBIT was negative and fell short of 2008. The utilization rates of the EUR 500
million investments implemented in the previous years must be improved.
- The improved cash flow and the November hybrid bond have strengthened
our balance sheet and financial position in line with our objective to improve
the financial ability to implement our revised strategy. Ahlstrom operates in
two distinct business clusters that require different kinds of competence and
management: value-added business and operational excellence business.
KEY FIGURES
+--------------------------------+-------+-------+-------+------+------+-------+
|EUR million | 2009| 2008|Change,|10-12/|10-12/|Change,|
| | | | | 2009| 2008| |
| | | | %| | | %|
+--------------------------------+-------+-------+-------+------+------+-------+
|Net sales |1,596.1|1,802.4| -11.4| 420.5| 419.0| 0.4|
+--------------------------------+-------+-------+-------+------+------+-------+
|EBIT (Operating profit/loss) | -14.6| 14.6| -| -26.6| -35.4| 24.8|
+--------------------------------+-------+-------+-------+------+------+-------+
|Profit/loss before taxes | -40.1| -20.6| -94.4| -33.4| -49.5| 32.5|
+--------------------------------+-------+-------+-------+------+------+-------+
|Profit for the period | -32.9| -16.1| -104.5| -27.9| -37.0| 24.6|
+--------------------------------+-------+-------+-------+------+------+-------+
|Earnings per share | -0.72| -0.38| -| -0.61| -0.79| -|
+--------------------------------+-------+-------+-------+------+------+-------+
|Return on capital employed | | | | | | |
|(ROCE), % | -1.1| 1.4| -| -9.4| -10.8| -|
+--------------------------------+-------+-------+-------+------+------+-------+
|Equity ratio, % | 44.8| 36.8| -| 44.8| 36.8| -|
+--------------------------------+-------+-------+-------+------+------+-------+
|Gearing ratio, % | 57.7| 95.3| -| 57.7| 95.3| -|
+--------------------------------+-------+-------+-------+------+------+-------+
|Interest-bearing net liabilities| 395.9| 598.7| -33.9| 395.9| 598.7| -33.9|
+--------------------------------+-------+-------+-------+------+------+-------+
|Investments (excluding | | | | | | |
|acquisitions) | 63.8| 128.0| -50.1| 10.0| 37.5| -73.4|
+--------------------------------+-------+-------+-------+------+------+-------+
|Net cash from operating | | | | | | |
|activities | 209.6| 102.4| 104.8| 48.6| 31.5| 54.2|
+--------------------------------+-------+-------+-------+------+------+-------+
|Number of employees, average | 5,993| 6,510| -7.9| 5,855| 6,427| - 8.9|
+--------------------------------+-------+-------+-------+------+------+-------+
|Number of personnel, | | | | | | |
|at the end of the period | 5,841| 6,365| -8.2| 5,841| 6,365| -8.2|
+--------------------------------+-------+-------+-------+------+------+-------+
OPERATING ENVIRONMENT
The year 2009 followed similar patterns in the markets of most of Ahlstrom's
products: the extremely challenging market situation caused by the recession
continued until the end of the first half of 2009. In the summer 2009, the drop
in market demand stopped, and in most markets, the demand began to recover.
Despite the favorable development in the latter part of the year, the demand
fell short of the level of 2008. The globally increased unemployment weakened
the demand in the consumer goods industry in general.
In the Fiber Composites segment*, the impact of the recession on the demand for
Ahlstrom's products was twofold. The demand for Ahlstrom's food packaging and
teabag materials or nonwovens in medical applications was not impacted
significantly, but the markets for other products declined. After two weak
first-half quarters, the market situation in the construction and automotive
industries improved during the second half of the year, which increased the
demand for Ahlstrom's construction materials and transportation filtration
media. Nevertheless, the markets continued to be challenging. Preparations for
the possible spread of the H1N1 virus causing swine flu had a slightly positive
impact on the demand for face masks and wipes in the summer and fall. However,
the demand leveled off during the fourth quarter. As for wind power and marine
industries, Ahlstrom's main markets in Europe and North America were weak
throughout the year.
In the Specialty Papers segment*, the demand for release and label papers began
to pick up during the second quarter and increased throughout the rest of the
year. The demand for posters, industrial papers, pre-impregnated furniture
papers and crepe papers also increased. The demand for the crepe papers
increased particularly in Asia. On the other hand, the automotive, construction
and textile specialty paper markets continued to be weak.
Ahlstrom's main raw materials are natural fibers, mainly pulp, synthetic fibers
and chemicals. The prices of pulp in particular, but also of other raw
materials, began to increase in June, and the increase continued throughout the
rest of the year. Energy and transportation costs also increased.
DEVELOPMENT OF NET SALES
+-----------------+-------+-------+-------+------+------+-------+
|Net sales | 2009| 2008|Change,|10-12/|10-12/|Change,|
| | | | | | | |
|by segment | | | %| 2009| 2008| %|
| | | | | | | |
|and business area| | | | | | |
+-----------------+-------+-------+-------+------+------+-------+
|Fiber Composites | 861.2| 987.4| -12.8| 223.4| 229.1| -2.5|
+-----------------+-------+-------+-------+------+------+-------+
| Advanced | | | | | | |
| | | | | | | |
| Nonwovens | 175.4| 189.2| -7.3| 44.1| 50.2| -12.2|
+-----------------+-------+-------+-------+------+------+-------+
| Filtration | 276.2| 306.5| -9.9| 71.1| 66.2| 7.4|
+-----------------+-------+-------+-------+------+------+-------+
| Glass & | | | | | | |
| | | | | | | |
| Industrial | | | | | | |
| | | | | | | |
| Nonwovens | 180.0| 235.6| -23.6| 45.9| 48.6| -5.6|
+-----------------+-------+-------+-------+------+------+-------+
| Home & | | | | | | |
| | | | | | | |
| Personal | | | | | | |
| | | | | | | |
| Nonwovens | 238.4| 268.5| -11.2| 64.6| 67.4| -4.2|
+-----------------+-------+-------+-------+------+------+-------+
|Specialty Papers | 743.8| 822.4| -9.6| 199.6| 191.6| 4.2|
+-----------------+-------+-------+-------+------+------+-------+
| Release & | | | | | | |
| | | | | | | |
| Label Papers | 282.0| 314.6| -10.4| 76.2| 73.5| 3.6|
+-----------------+-------+-------+-------+------+------+-------+
| Technical | | | | | | |
| | | | | | | |
| Papers | 464.1| 507.9| -8.6| 123.6| 118.2| 4.6|
+-----------------+-------+-------+-------+------+------+-------+
|Other functions* | | | | | | |
| | | | | | | |
|and eliminations | -8.9| -7.4| -| -2.5| -1.7| -|
+-----------------+-------+-------+-------+------+------+-------+
|Total net sales |1,596.1|1,802.4| -11.4| 420.5| 419.0| 0.4|
+-----------------+-------+-------+-------+------+------+-------+
* Other functions include financing and taxation-related receivables,
liabilities, and cost items, as well as earnings, costs, assets, and liabilities
belonging to holding and sales companies.
Development of net sales in 2009
Group net sales decreased in all business areas due to lower volumes in most
products. Net sales for 2009 amounted to EUR 1,596.1 million, decreasing by
11.4% compared to the previous year (EUR 1,802.4 million).
Quarterly net sales decreased to its lowest, EUR 376.1 million, during the first
quarter of 2009, after which they increased steadily toward the end of the year.
Net sales increased by 12.4% in Asia-Pacific. The increase was particularly
strong in China and India. Net sales decreased in other geographic areas.
Net sales of the Fiber Composites segment amounted to EUR 861.2 million (EUR
987.4 million), representing 54% of the Group's net sales. Net sales decreased
by 12.8% compared to the previous year. The net sales of the Advanced Nonwovens
business area decreased the least (-7.3%). The decline was mainly due to the
optimization of the product mix improving profitability and the impact of
exchange rate fluctuations. The heaviest drop was seen in the Glass & Industrial
Nonwovens business area (-23.6%). The decrease in the net sales of this business
area was the steepest due to the weak demand in the windmill and marine
industries in Ahlstrom's main markets. However, sales of glassfiber tissue and
industrial nonwovens, such as wallcovers, increased toward the end of the year,
and sales of specialty reinforcements used in windmills and the marine industry
seemed to have bottomed out in the fourth quarter.
Net sales of the Specialty Papers segment amounted to EUR 743.8 million (EUR
822.4 million), representing 46% of the Group's net sales. Net sales decreased
by 9.6%. Net sales were reduced both in the Release & Label Papers (-10.4%) and
Technical Papers (-8.6%) business areas due to a decrease in sales volumes of
most products caused by the recession. However, the general trend in sales
volumes turned in the summer, and the net sales increased during the second half
of the year.
Development of net sales in October-December 2009
The Group's net sales remained on the level of October-December 2008. Net sales
were EUR 420.5 million (EUR 419.0 million). With regard to net sales, it should
be noted that the fourth quarter of 2008 was the first reporting period with the
global recession reflected on Ahlstrom's sales to its full extent.
Net sales of the Fiber Composites segment amounted to EUR 223.4 million (EUR
229.1 million), representing 53% of the Group's net sales. The segment's net
sales decreased by 2.5% compared to October-December 2008. Net sales increased
by 7.4% in the Filtration business area as the customers refilled their
inventories toward the end of the year to meet the increasing demand for their
products. Net sales in other business areas decreased. The net sales of the
Advanced Nonwovens business area fell the most (-12.2%), mainly due to exchange
rate fluctuations. The euro strengthened compared to the main invoicing
currencies in the business area, the US dollar and the pound sterling.
Net sales of the Specialty Papers segment amounted to EUR 199.6 million (EUR
191.6 million), representing 47% of the Group's net sales. Sales volumes
increased in both business areas following the picking up of market demand in
the summer generating higher consumption for Ahlstrom's products toward the end
of the year. The net sales of the segment as a whole were 4.2% higher compared
to October-December 2008.
RESULT AND PROFITABILITY
+---------------------------------+-----+-----+-------+------+------+-------+
|Financial result | 2009| 2008|Change,|10-12/|10-12/|Change,|
| | | | | | | |
|by segment | | | %| 2009| 2008| %|
+---------------------------------+-----+-----+-------+------+------+-------+
|Fiber Composites |
+---------------------------------+-----+-----+-------+------+------+-------+
| EBIT (Operating profit/loss) |-18.8| 15.3| -| -30.4| -24.7| -23.0|
+---------------------------------+-----+-----+-------+------+------+-------+
| EBIT (Operating profit/loss), %| -2.2| 1.5| -| -13.6| -10.8| -|
+---------------------------------+-----+-----+-------+------+------+-------+
| Return on net | | | | | | |
| | | | | | | |
| assets, RONA, % | -2.5| 2.0| -| -17.0| -12.3| -|
+---------------------------------+-----+-----+-------+------+------+-------+
|Specialty Papers |
+---------------------------------+-----+-----+-------+------+------+-------+
| EBIT (Operating profit/loss) | 14.6| 10.2| 42.4| 3.8| -6.5| -|
+---------------------------------+-----+-----+-------+------+------+-------+
| EBIT (Operating profit/loss), %| 2.0| 1.2| -| 1.9| -3.4| -|
+---------------------------------+-----+-----+-------+------+------+-------+
| Return on net | | | | | | |
| | | | | | | |
| assets, RONA, % | 3.8| 2.3| -| 4.1| -6.0| -|
+---------------------------------+-----+-----+-------+------+------+-------+
|Other functions* and eliminations| | | | | | |
+---------------------------------+-----+-----+-------+------+------+-------+
| Operating profit/loss |-10.4|-10.9| -| -0.0| -4.2| -|
+---------------------------------+-----+-----+-------+------+------+-------+
|Ahlstrom Group total | | | | | | |
+---------------------------------+-----+-----+-------+------+------+-------+
| EBIT (Operating profit/loss) |-14.6| 14.6| -| -26.6| -35.4| 24.8|
+---------------------------------+-----+-----+-------+------+------+-------+
| EBIT (Operating profit/loss), | | | | | | |
| | | | | | | |
| % | -0.9| 0.8| -| -6.3| -8.4| -|
+---------------------------------+-----+-----+-------+------+------+-------+
| ROCE, % | -1.1| 1.4| -| -9.4| -10.8| -|
+---------------------------------+-----+-----+-------+------+------+-------+
* Other functions include financing and taxation-related receivables,
liabilities, and cost items, as well as earnings, costs, assets, and liabilities
belonging to holding and sales companies.
Result and profitability in 2009
The Group EBIT was EUR -14.6 million (EUR 14.6 million). The performance was
burdened by non-recurring expenses totaling EUR 54.3 million (EUR 21.1 million),
the largest of which was the EUR 22.4 million impairment charge in the Home &
Personal Nonwovens business area in December.
The second most significant individual non-recurring item was the closing down
of the paper machine in Barcelona, Spain, in the Filtration business area. The
decision was made in December 2009, and non-recurring expenses related to the
closure amounting to EUR 7.3 million were booked in the fourth quarter of 2009.
Of these, EUR 5.3 million were asset write-downs and EUR 2.0 million
cash-related items. A total of 37 employees were laid off.
EBIT excluding non-recurring items amounted to EUR 39.8 million, slightly above
the previous year (EUR 35.7 million). In particular, lower sales volumes
compared to 2008 burdened the performance. It was improved by streamlining of
operations, a fall in raw material costs during the first half of the year and
the picking up of demand that started in the summer. Profitability did not
weaken significantly due to the increase in raw material prices toward the end
of the year, as the company strived for sales price increases in proportion to
the higher raw material prices. Favorable trends of Ahlstrom's business
strengthened toward the end of the year. However, some projects included in the
EUR 500 million investment program carried out during 2007 and 2008 did not meet
the profitability targets set, mainly due to demand falling short of
expectations.
The sales of Ahlstrom's new glassfiber tissue production plant in Tver, Russia,
showed noticeable progress by the fall 2009. After a challenging start, the
plant opened in summer 2008 benefited from the recovered demand in the Russian
market toward the end of 2009. On the other hand, the profitability of the
increased production capacity in La Gère, France, implemented in the summer
2007, fell short of expectations again in 2009. Sales of the plant's release
base papers did increase, but sales prices suffered from overcapacity on the
market. Commercialization of the teabag material nonwovens line, opened in
Chirnside, the United Kingdom, at the end of 2008 started slowly, and the
customer approval processes of the new products are still going on.
The EBIT of the Fiber Composites segment decreased to EUR -18.8 million (EUR
15.3 million). Non-recurring items amounted to EUR -44.2 million (EUR -18.0
million).
The EBIT of the Specialty Papers segment, on the other hand, increased to EUR
14.6 million (EUR 10.2 million). Non-recurring items amounted to EUR -7.4
million (EUR
-2.4 million).
During the year, Ahlstrom adjusted its production to the weak demand. The market
related downtime in production decreased significantly toward the end of the
year. The figure for the year as a whole was 18.2% (10.3%), but only 12.0%
(22.7%) for the fourth quarter. Temporary layoffs and other flexible working
hour solutions were also implemented, depending on the market conditions.
Globally, approximately 3,000 (1,200) employees were affected by the temporary
layoffs and other flexible working hour arrangements and 600 (900) employees
during October-December.
Fixed costs excluding non-recurring items decreased by 5.3% as a result of cost
control and implemented streamlining measures.
Net financial expenses were EUR 26.2 million (EUR 34.2 million). Net financial
expenses include net interest expenses of EUR 23.3 million (EUR 30.0 million),
exchange rate losses of EUR 0.2 million (EUR 1.5 million), and other financial
expenses of EUR 2.7 million (EUR 2.6 million).
Loss before taxes was EUR 40.1 million (loss before taxes of EUR 20.6 million).
Deferred tax income amounted to EUR 7.1 million (EUR 4.5 million).
Loss for the period was EUR 32.9 million (loss for the period of EUR 16.1
million). Earnings per share were EUR -0.72 (EUR -0.38).
Return on capital employed (ROCE) amounted to -1.1% (1.4%), and return on equity
(ROE) to -5.0% (-2.3%).
Result and profitability in October-December 2009
Ahlstrom's EBIT in October-December was EUR -26.6 million (EUR -35.4 million).
The EBIT was burdened by non-recurring expenses amounting to EUR 46.2 million
(EUR 21.7 million).
Operating profit excluding non-recurring items was better than in the comparison
period: EUR 19.5 million (EUR -13.7 million). The result was improved by
increased sales volumes due to favorable demand, but first and foremost by the
company's streamlining efforts and internal cost control reflecting on the cost
structure.
EBIT of the Fiber Composites segment amounted to EUR -30.4 million (EUR -24.7
million). The figure includes non-recurring expenses amounting to EUR 40.5
million (EUR 20.2 million), of which EUR 22.4 million were impairment charges
and EUR 7.3 million due to the closure of the Barcelona paper machine.
EBIT of the Specialty Papers segment amounted to EUR 3.8 million (EUR -6.5
million). The figure includes non-recurring expenses amounting to EUR 4.4
million (EUR 1.8 million).
FINANCING
Net cash from operating activities amounted to EUR 209.6 million (EUR 102.4
million) and cash flow after investing activities was EUR 143.3 million (EUR
-51.0 million). Cash flow was improved by significantly reduced operative
working capital, to which particular attention was paid throughout the year.
Operative working capital decreased by EUR 104.3 million compared to the end of
2008.
Interest-bearing net liabilities decreased by EUR 202.8 million from the turn of
the year to EUR 395.9 million (EUR 598.7 million). Ahlstrom's interest-bearing
liabilities amounted to EUR 415.8 million on December 31, 2009. Of the loan
portfolio, approximately 60% was tied to a fixed interest rate using interest
rate derivatives or based on the loan contracts. The duration of the loan
portfolio (average interest rate tying period) was 28 months and the average
interest rate was approximately 3.4%.
Ahlstrom actively strengthened its balance sheet during 2009, not only by
strengthening its cash flow but also by issuing a hybrid bond of EUR 80 million
in November. As it is treated as equity, it reduced the company's gearing ratio
by approximately 20 percentage points. The coupon rate of the bond is 9.5% and
issue price was 100%. The bond was clearly oversubscribed.
The company also extended the maturity structure of its loan portfolio by
agreeing on new loan facilities. During the first half of the year, the company
entered into agreements on new medium-term bilateral loan facilities amounting
to EUR 55 million. During the summer it signed a three-year, EUR 200 million
agreement on the refinancing of the medium-term revolving credit facility of the
same amount expiring in November 2009. In the fall, Ahlstrom signed an agreement
on pension loans amounting to EUR 56 million. The average maturity of the loan
portfolio was 2.3 years.
The company's liquidity is good. At the end of the year, its total liquidity,
including cash, available committed credit facilities, and cash pool overdraft
limits totaled EUR 328.0 million. In addition, the company had uncommitted
credit facilities and domestic commercial paper programs totaling EUR 318.1
million available.
The gearing ratio decreased to 57.7% (95.3%). The equity ratio was 44.8%
(36.8%).
CAPITAL EXPENDITURE
Ahlstrom did not make any major investment decisions during the year. The
company's capital expenditure totaled EUR 63.8 million (EUR 128.0 million
excluding acquisitions in 2008).
The largest project in 2009 was the construction of a medical nonwovens plant in
the Mundra special economic zone in Gujarat, India. The total cost of the
construction project was approximately EUR 38 million. Production at the plant
is started during the first quarter of 2010.
GUIDELINES AND IMPLEMENTATION OF THE REVISED STRATEGY
Ahlstrom announced its revised strategy in October 2009. The key conclusion is
that Ahlstrom operates in two distinct business clusters that require different
kinds of competence and management. The company's operations are based on two
distinct business models: value-added business and operational excellence
business.
The value-added business will be Ahlstrom's future growth engine, developing
through organic growth and possibly by making small acquisitions.Geographically, growth will particularly focus on Asia. New and innovative
products will create the foundation of success in this business. The products in
this cluster cover the majority of Ahlstrom's Fiber Composites segment as well
as crepe papers and vegetable parchment.
The task of the operational excellence business is to support the growth of the
company. In this business, it is important to be able to develop cost effective
products serving customers' needs through, for instance, alternative raw
materials or new technological solutions. The cluster covers the majority of
Ahlstrom's Specialty Papers segment as well as the nonwoven materials used in
consumer wipes and air filters.
The long-term target of the strategy is to ensure Ahlstrom's profitable growth,
strengthen the company's competitive position and generate returns that are in
line with the company's financial targets. At the same time, measures to manage
the balance sheet and reduce the gearing ratio will continue. One of the most
important indicators is return on capital employed (ROCE), which should reach
its target level of 13%. With regard to product lines and units falling short of
their objectives, measures will be continued to meet the goals.
During 2010, the implementation of the strategy will particularly focus on
making Ahlstrom's vision, mission, values, and corporate image clearer, and
developing the personnel, organization, and processes.
STREAMLINING PROGRAMS
Restructuring programs
Ahlstrom carried out two restructuring programs during the year in accordance
with plans to improve and adjust operational activities to changed market
demand. The total annual savings from these programs are approximately EUR 55
million. In addition, a project to optimize working capital was initiated; this
project will continue until the end of 2010.
January program
Concerning the permanent layoffs of 210 people as part of the restructuring
program launched in January, a total of 176 employees were laid off by the end
of the year. The EUR 5 million annual savings resulting from the program will
have full effect in 2010. In addition, there were temporary layoffs and
production was cut down by market related downtime*.
The program involved the closing down of unprofitable operations in Milan,
Italy, that belong to the Home & Personal Nonwovens business area. The company
closed down the Gallarate plant as well as one production line in Cressa. The
reduction impact on personnel related to the closures was approximately 50.
Non-recurring expenses were EUR 19.0 million, of which EUR 5.2 million were
cash-related. The expenses have been booked in Ahlstrom's fourth quarter 2008
financial results.
April program
Ahlstrom announced in April that it was to initiate another restructuring
program, aiming for annual savings of EUR 50 million. The savings will have full
effect in 2010.
In April, Ahlstrom estimated that the restructuring may have an impact on
400-500 -Ahlstrom employees globally. The measures taken in 2009 will, however,
reduce the personnel by approximately 560 persons. According to the agreed
timetable, the cuts will be implemented in 2009 and 2010. The number of
personnel was decreased by a total of 384 employees in 2009, and approximately
180 persons will leave the company in 2010.
The company decided in June to permanently close down a production line at the
plant in Bethune, USA, and move its production to Green Bay, USA. The production
line belonged to the Home & Personal Nonwovens business area. Personnel cuts
made as a result of the closure totaled 65 employees.
In December, it was decided to close down the Filtration business area's paper
machine in Barcelona, and a total of 37 employees were laid off. ()
( )
In addition, significant adjustment decisions reducing the amount personnel were
made at two other plants during the fourth quarter. A total of 76 employees were
laid off at the plant in Karhula, Finland, in connection with the production
adjustment of specialty reinforcements and glassfiber tissue. The plant is part
of the Glass & Industrial Nonwovens business area. Reductions of 34 employees in
2009 and a maximum of 30 in 2010 were agreed at the plant in Altenkirchen,
Germany. The Altenkirchen plant is part of the Ahlstrom's Technical Papers
business area.
The cost of the April program was initially estimated to be approximately EUR
40 million in 2009, of which 50% cash-related. EUR 31.9 million of the costs
were realized, of which EUR 18.3 million were cash-related. The costs were lower
than estimated as more cost-efficient solutions than expected were found to
reach the target for savings.
Optimization of working capital
The project to optimize working capital initiated at the beginning of 2009
proceeded according to plan. The project aims to reduce working capital by EUR
100 million over two years. The project had been initiated at 20 plants by the
end of the year and it will be rolled out to all production sites and functions
during 2010. Operative working capital decreased by EUR 104.3 million during
2009 with turnover improving by 23 days to 53 days.
CHANGES IN THE CORPORATE EXECUTIVE TEAM
Jan Lång started as the President & CEO of Ahlstrom Corporation on January
1, 2009. Risto Anttonen who had acted as interim CEO from February 28, 2008 to
December 31, 2008, assumed the role of Deputy of the President & CEO, and
continued as a member of the Corporate Executive Team.
The following people changed tasks and started in their new positions on January
1, 2009:
Tommi Björnman, Senior Vice President, Filtration.
Claudio Ermondi, Senior Vice President, Innovations & Technology.
Paul Marold, Senior Vice President, Advanced Nonwovens.
Laura Raitio, Senior Vice President, Glass & Industrial Nonwovens.
In addition, three new appointments were announced during the first quarter of
2009:
Rami Raulas was appointed onJanuary 9, 2009 as Senior Vice President, Sales &
Marketing, as of February 1, 2009.
Paula Aarnio was appointed Senior Vice President, Human Resources, onFebruary
6, 2009. She assumed her responsibility on April 27, 2009.
Seppo Parvi was appointed Chief Financial Officer onFebruary 6, 2009. He assumed
his position on May 25, 2009.
Paul Marold, Senior Vice President, Advanced Nonwovens, resigned from Ahlstrom's
service on August 14, 2009.
Ahlstrom announced in December that it will change the structure of its
Corporate Executive Team as of February 1, 2010, with regard to sourcing and
sustainability (see Events after the balance sheet date, p. 14).
The current composition of the Corporate Executive Team and members' CVs are
available on the company's website www.ahlstrom.com.
PERSONNEL
The number of Ahlstrom employees during 2009 was 5,993 on average (6,510) and at
the end of the year, 5,841 (6,365). Wages and salaries including bonus payments
totaled EUR 249.1 million (EUR 249.9 million).
The January and April restructuring programs together resulted in a reduction of
a total of 560 employees in 2009, and an additional decrease of approximately
180 employees was agreed for 2010. On the other hand, the company hired new
employees in 2009 for the Mundra, India plant, among others. The number of
personnel was decreased by a total of 524 people in year 2009.
At the end of the year, the highest numbers of employees were in the United
States (24%), France (21%), Italy (12%), Finland (11%), Germany (9%) and Brazil
(7%).
ANNUAL GENERAL MEETING AND AUTHORIZATIONS OF THE BOARD
Ahlstrom Corporation's Annual General Meeting of Shareholders (AGM) was held on
March 25, 2009. The AGM resolved to distribute a dividend of EUR 0.45 per share
for the fiscal year that ended on December 31, 2008 from the retained earnings
in accordance with the proposal of the Board of Directors. The AGM approved the
financial statements and discharged the members of the Board of Directors and
the CEO from liability for the financial period January 1-December 31, 2008.
The AGM confirmed the number of Board members as unchanged at seven. Thomas
Ahlström, Sebastian Bondestam, Jan Inborr, Martin Nüchtern, Bertel Paulig and
Peter Seligson were re-elected as members of the Board of Directors. Anders
Moberg was elected as a new member. The term of the Board of Directors will
expire at the close of the next Annual General Meeting.
The Board of Directors elected Peter Seligson as Chairman and Bertel Paulig as
Vice Chairman of the Board. Bertel Paulig (Chairman), Thomas Ahlström, and
Martin Nüchtern were elected as members of the Audit Committee. Peter Seligson
(Chairman), Sebastian Bondestam, and Jan Inborr were elected as members of the
Compensation and Nomination Committee.
The AGM elected PricewaterhouseCoopers Oy (PwC) as Ahlstrom's auditor. PwC
designated Authorized Public Accountant Eero Suomela as auditor in charge.
The AGM authorized the Board of Directors to repurchase Ahlstrom shares. The
maximum number of shares to be purchased is 4,500,000. The shares may be
repurchased only through public trading at the prevailing market price using
unrestricted shareholders' equity.
The AGM also authorized the Board of Directors to distribute a maximum of
4,500,000 own shares held by the company. The Board of Directors is authorized
to decide to whom and in which order the shares will be distributed. The shares
may be used as consideration in acquisitions and in other arrangements as well
as to implement the company's share-based incentive plans in the manner and to
the extent decided by the Board of Directors. The Board of Directors also has
the right to decide on the distribution of the shares in public trading for the
purpose of financing possible acquisitions.
The authorizations are valid for 18 months from the close of the Annual General
Meeting but will, however, expire at the close of the next Annual General
Meeting, at the latest.
On February 3, 2010, the Board of Directors decided to utilize the authorization
of the AGM to repurchase Ahlstrom's shares for the implementation of the
company's share-based incentive plan (see Events after the balance sheet date,
p. 14).
OTHER EVENTS IN 2009
Product innovations
As in previous years, Ahlstrom launched new products and technologies to
consolidate its leading position in the fiber-based materials market. Both in
2008 and 2009, as much as 48% of Ahlstrom's net sales were generated by new or
improved products* (39% in 2007).
In 2009, Ahlstrom introduced a new advanced nonwoven material for medical
applications, especially for drapes and gowns. This material based on
bi-component spunbond is stronger than comparable basis weight fabric, it is
soft and comfortable in gowns, and offers drapability and strength for drapes.
The new material also suits for sterilization by means of radiation. The product
generated significant sales in 2009 and further growth is expected in 2010.
Hybrid wallcovering was among the significant product launches. Both natural
fibers and synthetic fibers are used in its production, which combines the
favorable properties of nonwovens and papers in a cost-efficient way. The
wallcovering is manufactured by Ahlstrom's Turin plant, whose equipment
investment was completed during the second quarter of 2009. Several wallcovering
manufacturers approved the product during the fourth quarter, and commercial
deliveries were started.
Ahlstrom introduced several filtration media innovations to match the stricter
environmental criteria, e.g. in diesel filtration. In vehicles, the use of low
sulfur fuels and biodiesel requires advanced properties from the fuel water
separator systems. In response, Ahlstrom launched the ultra-high surface
coalescing media for reliable water removal from any commercial fuel. In 2009,
Ahlstrom also introduced a new transmission filtration media. Transmission
filters with the Micro Filtration Technology (MFT-series) are pleated, offering
more surface area and enabling a smaller carbon footprint than conventional
filters when using them in vehicles.
Ahlstrom also developed a new range of dry wiping fabrics for general purpose
cleaning applications in home and industrial environments. The new products are
based on a composite spunlace technology, combining layers of different
materials into one fabric. These fabrics are soft, highly absorbent, strong and
resistant to abrasion. The products were developed together with Ahlstrom's
customers for their new innovative wiping products.
The most significant new product in Specialty Papers was the one-side-coated
label paper Lumimax TT. Developed particularly for thermal transfer printing,
the paper is used for printing barcodes and other labels, such as price tags or
product identifiers. Lumimax TT enables excellent definition even at the lowest
printing temperatures. In 2009, Lumimax was used by Ahlstrom's customers in
South America for both domestic and export businesses.
The commercialization of one of the most significant innovations of 2008,
Ahlstrom's Disruptor(TM) PAC water filtration material and a high-quality
compostable teabag material, continued in 2009. The products have attracted
considerable interest.
Progress in sustainable development
In 2009, Ahlstrom was ranked among the ten best Finnish companies in the global
Carbon Disclosure Leadership index.
Natural fibers are by far the most significant of Ahlstrom's raw materials. The
company considers it important that they come from sustainably managed forests.
Also the rest of the company's pulp suppliers were certified in 2009 with regard
to the chain of custody in accordance with either PEFC or FSC, i.e. the most
widely used sustainable forest management certification systems.
EVENTS AFTER THE BALANCE SHEET DATE
Changes in the Corporate Executive Team
In December 2009, Ahlstrom announced that it will change the structure of its
Corporate Executive Team. The changes took effect on February 1, 2010. The
responsibility for Ahlstrom's Sourcing operations was transferred to CFO Seppo
Parvi. Diego Borello, Senior Vice President, Purchasing and Sustainability, took
on a new role outside the CET in Ahlstrom's Sourcing organization. Paula Aarnio,
Senior Vice President, Human Resources, will be responsible for Ahlstrom's
Sustainability in addition to her other responsibility areas.
On January 26, 2010, William Casey was appointed Senior Vice President, Advanced
Nonwovens, as of February 8, 2010. He will be based in Windsor Locks, USA.
Casey's latest position was Chief Operations Officer at Shawmut Corporation.
Shawmut Corporation is a supplier of laminates for the automotive industry.
Repurchase of Ahlstrom's shares
Today, on February 3, 2010, Ahlstrom announced that its Board of Directors has
decided to utilize the authorization given by the Annual General Meeting held on
March 25, 2009, to repurchase Ahlstrom shares for the implementation of the
Company's share-based incentive plan.
The maximum number of shares to be acquired is 75,000 corresponding to less than
0.2% of the total number of shares. The repurchases shall decrease the
distributable capital and reserves.
The share repurchases shall start on February 10 at the earliest, and end by the
end of the next AGM on March 31, 2010, at the latest.
The shares shall be acquired through public trading on the NASDAQ OMX Helsinki
at market price prevailing at the time of repurchase. Evli Bank Plc will act as
stock broker in the repurchases.
SHARES AND SHARE CAPITAL
Ahlstrom's share is listed on the NASDAQ OMX Helsinki. Ahlstrom has one series
of shares. The share is classified under NASDAQ OMX's Materials sector and the
trading code is AHL1V.
During 2009, a total of 4.5 million Ahlstrom shares were traded for a total of
EUR 35.7 million. The lowest trading price was EUR 6.15 and the highest EUR
10.00. The closing price on December 30, 2009 was EUR 9.23 and market
capitalization was EUR 430.8 million at year's end.
Ahlstrom Group's equity per share was EUR 12.98 at the end of the review period
(EUR 13.46).
In 2009, Ahlstrom did not use the AGM authorization to repurchase or distribute
company shares.
DIVIDEND POLICY AND PROPOSAL FOR THE DISTRIBUTION OF PROFITS
Ahlstrom's dividend policy was revised in December 2009. The new dividend policy
is based on the company's cash generating capabilities and will be applied as
from the dividend paid for the financial year 2009.
The company will aim to pay a dividend of not less than one third of the net
cash from operating activities after operative investments, calculated as a
three-year rolling average to achieve stability in the dividend payout.
Operative investments include maintenance, cost improvement, and efficiency
improvement investments.
According to the previous dividend policy, the aim was to pay a dividend of not
less than 50% of the result for the financial year on average.
The distributable funds in the balance sheet of Ahlstrom Corporation as per
December 31, 2009 amounted to EUR 652,268,818.91.
The Board of Directors proposes to the Annual General Meeting that a dividend of
EUR 0.55 per share be paid for the fiscal year that ended on December 31, 2009.
The dividend will be paid to shareholders registered in the Register of
Shareholders held by Euroclear Finland Ltd on the record date, April 7, 2010. As
per February 3, 2010, the number of shares of the Company amounts to 46,670,608
based on which the maximum amount to be distributed as dividend would be EUR
25,668,834.40. The Board of Directors proposes that the dividend be paid on
April 14, 2010.
In addition, the Board of Directors proposes that EUR 535,000.00 be reserved to
be used for the public donations at the discretion of the Board.
OUTLOOK
The market sentiment in the latter half of 2009 improved. The situation seems
stable in most business areas. However, demand is expected to fall short of the
level of 2008. The biggest challenges continue to be found in specialty
reinforcements in the Glass & Industrial Nonwovens business area, as there are
no clear signs of a revival in the demand in the windmill and marine industries
in Ahlstrom's main markets, Europe and North America. Net sales for 2010 are
expected to increase compared to 2009 but remain lower than the level for 2008.
The more efficient cost structure and improved demand are expected to improve
profitability. The restructuring programs of 2009 are almost complete, but the
continuous efficiency improvement measures will remain a priority also in 2010.
EBIT excluding non-recurring items is expected to increase compared to 2009.
In 2010, investments excluding acquisitions are estimated at approximately EUR
60 million (EUR 63.8 million in 2009).
SHORT-TERM RISKS
Despite the improved market sentiment, it is difficult to predict the rate at
which the world economy will recover. If the recovery from the recession is
prolonged, it may be necessary to limit production more than planned and the
risk of a decrease in sales prices increases. So far, bad debts have remained
low, but Ahlstrom's customer credit risks have increased due to the weakening
economic situation and are more difficult to cover with credit insurance.
In addition, raw material prices, the price of pulp, man made fibers and
polymers in particular, have been increasing since last summer and they are
expected to remain at a high level during 2010. If the prices remain high and
the increased raw material costs cannot be transferred to selling prices, the
growth in profitability achieved in 2009 might be compromised.
The weaker-than-expected utilization rate of the investments of the past few
years due to the low demand may, if it continues, extend the payback period of
Ahlstrom's EUR 500 million investment program carried out in 2007 and 2008. The
start-up of operations of the Mundra, India plant in early 2010 and
commissioning of capacity are also critical.
The general risks of Ahlstrom's business operations are described in more detail
on the company website, www.ahlstrom.com <http://www.ahlstrom.com/>, and in the
report by the Board of Directors in the company's Annual Report 2009. The
printed Annual Report will be published in the week starting March 15, 2010, and
the pdf file of the report will be available in the week starting March
8, 2010. The risk management process is also described in the Corporate
Governance Statement available on the website after the Annual Report has been
published.
* * *
This financial statements bulletin has been prepared in accordance with the
International Financial Reporting Standards (IFRS). Comparable figures refer to
the same period last year unless otherwise stated.
This report contains certain forward-looking statements that reflect the present
views of the company's management. The statements contain uncertainties and
risks and are thus subject to changes in the general economic situation and in
the company's business.
Helsinki, February 3, 2010
Ahlstrom Corporation
Board of Directors
ADDITIONAL INFORMATION
Jan Lång, President & CEO, tel. +358 10 888 4700
Seppo Parvi, CFO, tel. +358 10 888 4768
Ahlstrom's President & CEO Jan Lång and CFO Seppo Parvi will present the
financial results 2009 in Finnish at a press and analyst conference in Helsinki
on February 3, at 2:00 p.m. Finnish time. The conference will take place at
Event Arena Bank, address Unioninkatu 20, 2nd floor. The name of the meeting
room will be displayed on the display board in the lobby. You are welcome to
attend.
In addition, a conference call for analysts and investors will be held in
English on February 3, 2010, at 4:00 p.m. Finnish time. Mr Lång and Mr Parvi
will present the financial results 2009. To participate in the teleconference,
please dial +358 (0)800 914 672 in Finland or +44 (0)203 003 2666 in UK a few
minutes before the conference begins (access code not needed).
The event can also be viewed as a live audio webcast at www.ahlstrom.com.
Registration is required. It is possible to participate in the Q & A session via
teleconference or online.
An on-demand audio webcast of the conference will be available on Ahlstrom's
website for twelve months after the call.
The presentation material will be available at www.ahlstrom.com > Investors > IR
presentations on February 3, 2010, after the financial statements bulletin has
been published.
AHLSTROM'S FINANCIAL INFORMATION IN 2010
Ahlstrom will publish its financial information in 2010 as follows:
Report Date of publication Silent period
Financial statements bulletin 2009 Wednesday, February 3 January 1-February 3
Interim Report January-March Thursday, April 29 April 1-April 29
Interim Report January-June Wednesday, August 11 July 1-August 11
Interim Report January-September Tuesday, October 26 October 1-October 26
During the silent period, Ahlstrom will refrain from contact with the
representatives of the capital market.
The printed annual report 2009 will be published during the week starting March
15.
It will be available as a pdf file on the company website at www.ahlstrom.com<http://www.ahlstrom.com/>> Investors during the week starting March 8.
( )
The Annual General Meeting of Shareholders (AGM) will be held on Wednesday,
March 31, 2010, at 1:00 p.m. in Finlandia Hall, address Mannerheimintie 13 e,
Helsinki, Finland.
Distribution:
NASDAQ OMX Helsinki
www.ahlstrom.com
Principal media
Ahlstrom in brief
Ahlstrom is a global leader in the development, manufacture and marketing of
high performance nonwovens and specialty papers. Ahlstrom's products are used in
a large variety of everyday applications, such as filters, wipes, flooring,
labels, and tapes. Based upon its unique fiber expertise and innovative
approach, the company has a strong market position in several business areas in
which it operates. Ahlstrom's 5,800 employees serve customers via sales offices
and production facilities in more than 20 countries on six continents. In 2009,
Ahlstrom's net sales amounted to EUR 1.6 billion. Ahlstrom's share is quoted on
the NASDAQ OMX Helsinki. The company website is at www.ahlstrom.com.
APPENDIX
Consolidated financial statements
APPENDIX
CONSOLIDATED FINANCIAL STATEMENTS
Financial statements are unaudited.
INCOME STATEMENT Q4 Q4 Q1-Q4 Q1-Q4
EUR million 2009 2008 2009 2008
Net sales 420.5 419.0 1,596.1 1,802.4
Other operating income 5.3 5.6 13.4 18.7
Expenses -391.0 -419.8 -1,486.3 -1,694.2
Depreciation, amortization and
impairment charges -61.4 -40.2 -137.8 -112.3
-----------------------------------------------------------------------
Operating profit / loss -26.6 -35.4 -14.6 14.6
Net financial expenses -6.4 -13.8 -26.2 -34.2
Share of profit / loss of associated
companies -0.4 -0.3 0.7 -1.1
-----------------------------------------------------------------------
Profit / loss before taxes -33.4 -49.5 -40.1 -20.6
Income taxes 5.5 12.4 7.1 4.5
-----------------------------------------------------------------------
Profit / loss for the period -27.9 -37.0 -32.9 -16.1
-----------------------------------------------------------------------
Attributable to
Owners of the parent -27.9 -37.0 -32.9 -17.9
Minority interest - - - 1.8
-----------------------------------------------------------------------
Earnings per share, EUR
- Basic and diluted * -0.61 -0.79 -0.72 -0.38
*With the effect of interest on hybrid bond for the period after taxes
-----------------------------------------------------------
STATEMENT OF COMPREHENSIVE INCOME Q4 Q4 Q1-Q4 Q1-Q4
EUR million 2009 2008 2009 2008
-----------------------------------------------------------
Profit / loss for the period -27.9 -37.0 -32.9 -16.1
Other comprehensive income,
net of tax:
Translation differences 10.1 -30.1 32.5 -37.1
Hedges of net investments in
foreign operations -0.9 3.2 -1.0 6.4
Cash flow hedges 0.4 -1.3 0.4 -1.2
-----------------------------------------------------------
Other comprehensive income,
net of tax 9.7 -28.2 31.8 -32.0
-----------------------------------------------------------
Total comprehensive income
for the period -18.3 -65.2 -1.1 -48.1
-----------------------------------------------------------
Attributable to
Owners of the parent -18.3 -65.2 -1.1 -52.8
Minority interest - - - 4.7
-------------------------------------------------------
BALANCE SHEET Dec 31, Dec 31,
-------------------------------------------------------
EUR million 2009 2008
-------------------------------------------------------
ASSETS
Non-current assets
Property, plant and equipment 717.6 745.7
Goodwill 151.3 169.1
Other intangible assets 52.1 51.6
Investments in associated companies 12.1 11.4
Other investments 0.2 0.2
Other receivables 23.0 15.6
Deferred tax assets 54.5 40.4
-------------------------------------------------------
Total non-current assets 1,010.8 1,033.9
Current assets
Inventories 175.9 252.5
Trade and other receivables 319.9 356.2
Income tax receivables 3.7 6.3
Other investments - 0.0
Cash and cash equivalents 19.9 58.2
-------------------------------------------------------
Total current assets 519.4 673.2
-------------------------------------------------------
Total assets 1,530.2 1,707.0
-------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to owners of the parent 605.6 628.1
Hybrid bond 80.0 -
Minority interest - 0.0
-------------------------------------------------------------
Total equity 685.6 628.1
Non-current liabilities
Interest-bearing loans and borrowings 235.1 188.7
Employee benefit obligations 78.2 84.6
Provisions 5.0 4.4
Other liabilities 0.4 0.2
Deferred tax liabilities 23.8 16.5
-------------------------------------------------------------
Total non-current liabilities 342.5 294.4
Current liabilities
Interest-bearing loans and borrowings 180.7 468.1
Trade and other payables 305.1 293.3
Income tax liabilities 3.7 3.5
Provisions 12.7 19.7
-------------------------------------------------------------
Total current liabilities 502.1 784.5
-------------------------------------------------------------
Total liabilities 844.6 1,078.9
-------------------------------------------------------------
Total equity and liabilities 1,530.2 1,707.0
-------------------------------------------------------------
STATEMENT OF CHANGES IN EQUITY
1) Issued capital
2) Share premium
3) Non-restricted equity reserve
4) Hedging reserve
5) Translation reserve
6) Retained earnings
7) Minority interest
8) Hybrid bond
9) Total equity
Attributable to owners
of the parent
-----------------------------------------
EUR million 1) 2) 3) 4) 5) 6) 7) 8) 9)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity at January
1, 2008 70.0 209.3 8.3 0.0 -15.5 444.3 36.0 - 752.4
Dividends paid and
other - - - - - -46.7 - - -46.7
Purchases of minority
interest - - - - - 11.3 -40.7 - -29.4
Total comprehensive
income
for the period - - - -1.2 -33.6 -17.9 4.7 - -48.1
--------------------------------------------------------------------------------
Equity at December
31, 2008 70.0 209.3 8.3 -1.2 -49.1 390.9 0.0 - 628.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity at January
1, 2009 70.0 209.3 8.3 -1.2 -49.1 390.9 0.0 - 628.1
Dividends paid and
other - - - - - -21.0 - - -21.0
Hybrid bond - - - - - -0.5 - 80.0 79.5
Purchases of minority
interest - - - - - - -0.0 - -0.0
Share-based incentive
plan - - - - - 0.1 - - 0.1
Total comprehensive
income
for the period - - - 0.4 31.5 -32.9 - - -1.1
--------------------------------------------------------------------------------
Equity at December
31, 2009 70.0 209.3 8.3 -0.8 -17.7 336.6 - 80.0 685.6
-----------------------------------------------------------------------------
STATEMENT OF CASH FLOWS Q4 Q4 Q1-Q4 Q1-Q4
EUR million 2009 2008 2009 2008
-----------------------------------------------------------------------------
Cash flow from operating activities
Profit / loss for the period -27.9 -37.0 -32.9 -16.1
Adjustments, total 53.4 33.2 146.3 131.5
Changes in net working capital 34.2 38.1 129.3 47.2
Change in provisions 1.8 5.1 -5.3 -20.0
Financial items -12.4 -2.4 -28.2 -16.8
Taxes paid -0.5 -5.4 0.4 -23.4
-----------------------------------------------------------------------------
Net cash from operating activities 48.6 31.5 209.6 102.4
Cash flow from investing activities
Acquisition of Group companies - -0.1 -0.0 -39.0
Purchases of intangible and tangible assets -11.8 -39.7 -69.8 -131.2
Other investing activities 0.3 0.5 3.5 16.9
-----------------------------------------------------------------------------
Net cash from investing activities -11.5 -39.2 -66.3 -153.4
Cash flow from financing activities
Dividends paid - - -21.0 -46.7
Payments received on hybrid bond 80.0 - 80.0 -
Changes in loans and other financing activities -133.9 43.1 -242.6 136.3
-----------------------------------------------------------------------------
Net cash from financing activities -53.9 43.1 -183.6 89.7
Net change in cash and cash equivalents -16.8 35.3 -40.2 38.7
Cash and cash equivalents at beginning of period 36.2 24.3 58.2 21.3
Foreign exchange adjustment 0.5 -1.4 2.0 -1.7
-----------------------------------------------------------------------------
Cash and cash equivalents at end of period 19.9 58.2 19.9 58.2
-----------------------------------------------------------------------------
--------------------------------------------------------------------------------
KEY FIGURES Q4 Q4 Q1-Q4 Q1-Q4
2009 2008 2009 2008
--------------------------------------------------------------------------------
Operating profit, % -6.3 -8.4 -0.9 0.8
Return on capital employed (ROCE), % -9.4 -10.8 -1.1 1.4
Return on equity (ROE), % -17.1 -22.4 -5.0 -2.3
--------------------------------------------------------------------------------
Interest-bearing net liabilities, EUR million 395.9 598.7 395.9 598.7
Equity ratio, % 44.8 36.8 44.8 36.8
Gearing ratio, % 57.7 95.3 57.7 95.3
--------------------------------------------------------------------------------
Basic earnings per share*, EUR -0.61 -0.79 -0.72 -0.38
Equity per share, EUR 12.98 13.46 12.98 13.46
Cash earnings per share, EUR 1.04 0.67 4.49 2.19
Average number of shares during the period,
1000's 46,671 46,671 46,671 46,671
Number of shares at the end of the period,
1000's 46,671 46,671 46,671 46,671
--------------------------------------------------------------------------------
Capital expenditure, EUR million 10.0 37.5 63.8 128.0
Capital employed, at the end of the period,
EUR million 1,101.5 1,285.0 1,101.5 1,285.0
Number of employees, average 5,855 6,427 5,993 6,510
*With the effect of interest on hybrid bond for the period after taxes
ACCOUNTING PRINCIPLES
This report has been prepared in accordance with IAS 34, Interim Financial
reporting, as adopted by EU and the accounting policies set out in the Group's
Financial Statements for 2008 except for the changes below.
Changes in accounting principles
The Group has adopted the following new or amended standards and interpretations
as of January 1, 2009:
- Amendment to IAS 1 Presentation of Financial Statements: A Revised
presentation
The amendment has changed the presentation of financial statements. The income
statement is presented in two statements: income statement and statement of
comprehensive income. The statement of changes in equity includes only
transactions with owners and all non-owner changes are presented in equity as a
single line.
- Amendment to IFRS 7 Improving Disclosures about Financial Statements
Amended IFRS 7 requires instruments measured at fair value to be disclosed by
the source of the inputs in determining fair value, using the three-level
hierarchy. The amended standard also requires enhanced disclosures about
liquidity risk. The before mentioned amendments have affected the notes to the
consolidated year-end financial statements.
- IFRS 8 Operating segments
The Group has two reportable segments: the Fiber Composites segment and the
Specialty Papers segment. The adoption of IFRS 8 does not have an impact on
reportable segments. It has neither remarkably changed the presentation of the
segment information in the notes to the consolidated financial statements.
- Revised IAS 23 Borrowing costs
The Group has already earlier applied this accounting policy and the adoption of
the revised standard has no impact on the consolidated financial
statements.
The below mentioned new and amended standards and interpretations do not have an
impact on the consolidated financial statements.
- Amendment to IFRS 2 Share-based payment: Vesting Conditions and Cancellations
- Amendments to IAS 32 and IAS 1 Puttable Financial Instruments and Obligations
Arising on Liquidation
- Amendments to IFRIC 9 and IAS 39 Embedded Derivatives
- IFRIC 13 Customer Loyalty Programmes
---------------------------------------------------------------------
SEGMENT INFORMATION Q4 Q4 Q1-Q4 Q1-Q4
EUR million 2009 2008 2009 2008
---------------------------------------------------------------------
Fiber Composites 223.4 229.1 861.2 987.4
Specialty Papers 199.6 191.6 743.8 822.4
Other operations 5.0 5.4 16.3 20.2
Internal sales -7.5 -7.2 -25.2 -27.6
---------------------------------------------------------------------
Total net sales 420.5 419.0 1,596.1 1,802.4
Fiber Composites 2.1 2.3 6.4 5.6
Specialty Papers 0.6 1.8 3.2 9.0
Other operations 4.8 3.1 15.6 12.9
---------------------------------------------------------------------
Total internal sales 7.5 7.2 25.2 27.6
Fiber Composites -30.4 -24.7 -18.8 15.3
Specialty Papers 3.8 -6.5 14.6 10.2
Other operations 0.0 -4.2 -10.4 -10.7
Eliminations -0.0 -0.0 0.1 -0.2
---------------------------------------------------------------------
Operating profit / loss -26.6 -35.4 -14.6 14.6
Fiber Composites 845.5 947.1 845.5 947.1
Specialty Papers 571.4 609.2 571.4 609.2
Other operations 24.0 30.4 24.0 30.4
Eliminations -5.8 -15.9 -5.8 -15.9
Investments in associated companies 12.1 11.4 12.1 11.4
Unallocated assets 83.1 124.9 83.1 124.9
---------------------------------------------------------------------
Total assets 1,530.2 1,707.0 1,530.2 1,707.0
Segment information is presented according to the IFRS standards.
-------------------------------------------------
NET SALES BY REGION Q4 Q4 Q1-Q4 Q1-Q4
EUR million 2009 2008 2009 2008
-------------------------------------------------
Europe 221.9 219.6 846.3 1,015.9
North America 102.1 114.9 410.1 442.5
South America 48.8 48.3 174.9 189.2
Asia-Pacific 39.7 27.4 134.2 119.4
Rest of the world 8.1 8.8 30.7 35.5
-------------------------------------------------
Total net sales 420.5 419.0 1,596.1 1,802.4
.
---------------------------------------------------------
CHANGES OF PROPERTY, PLANT AND
EQUIPMENT Q1-Q4 Q1-Q4
EUR million 2009 2008
---------------------------------------------------------
Book value at Jan 1 745.7 747.7
Acquisitions through business combinations - 3.9
Additions 63.6 118.7
Disposals -1.0 -3.7
Depreciations and impairment charges -106.9 -97.3
Translation adjustment and other changes 16.1 -23.5
Book value at end of the period 717.6 745.7
----------------------------------------------------
TRANSACTIONS WITH RELATED PARTIES Q1-Q4 Q1-Q4
EUR million 2009 2008
----------------------------------------------------
Transactions with associated companies
Sales and interest income 0.5 1.0
Purchases of goods and services -2.4 -3.6
Trade and other receivables 0.0 2.6
Trade and other payables 0.2 0.3
Market prices have been used in transactions with associated companies.
---------------------------------------
OPERATING LEASES Dec 31, Dec 31,
EUR million 2009 2008
---------------------------------------
Current portion 6.6 6.9
Non-current portion 20.4 17.1
---------------------------------------
Total 27.0 24.0
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COLLATERALS AND COMMITMENTS Dec 31, Dec 31,
EUR million 2009 2008
----------------------------------------------------------------------
Mortgages 73.0 -
Pledges 0.3 0.5
Commitments
Guarantees given on behalf of group companies 19.6 38.7
Guarantees given on behalf of associated companies 2.1 4.2
Capital expenditure commitments 10.2 36.2
Other commitments 3.6 4.7
----------------------------------------------------------------------
--------------------------------------------------------------------------------
QUARTERLY DATA Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2009 2009 2009 2009 2008 2008 2008 2008
--------------------------------------------------------------------------------
Net sales 420.5 400.6 398.9 376.1 419.0 451.2 465.9 466.2
Other operating income 5.3 2.0 3.5 2.7 5.6 5.8 4.3 3.1
Expenses -391.0 -364.4 -366.7 -364.2 -419.8 -421.5 -426.9 -425.9
Depreciation,
amortization,
impairment charges -61.4 -25.0 -25.9 -25.3 -40.2 -24.1 -23.9 -24.1
--------------------------------------------------------------------------------
Operating profit /
loss -26.6 13.1 9.7 -10.7 -35.4 11.3 19.4 19.3
Net financial expenses -6.4 -6.8 -4.8 -8.2 -13.8 -7.1 -4.7 -8.6
Share of profit / loss
of
associated companies -0.4 1.0 -0.3 0.4 -0.3 -0.7 -0.6 0.5
--------------------------------------------------------------------------------
Profit / loss before
taxes -33.4 7.3 4.7 -18.6 -49.5 3.5 14.2 11.2
Income taxes 5.5 -2.4 -2.2 6.2 12.4 -1.0 -3.6 -3.4
--------------------------------------------------------------------------------
Profit / loss for the
period -27.9 4.9 2.5 -12.4 -37.0 2.5 10.6 7.8
--------------------------------------------------------------------------------
Attributable to
Owners of the parent -27.9 4.9 2.5 -12.4 -37.0 2.0 9.9 7.2
Minority interest - - - - - 0.5 0.7 0.6
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QUARTERLY DATA
BY SEGMENT Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2009 2009 2009 2009 2008 2008 2008 2008
-------------------------------------------------------------------------
Net sales
Fiber Composites 223.4 216.5 212.4 208.8 229.1 249.3 257.0 252.0
Specialty Papers 199.6 185.9 188.2 170.1 191.6 204.0 209.7 217.0
Other operations and
eliminations -2.5 -1.8 -1.7 -2.8 -1.7 -2.1 -0.7 -2.8
-------------------------------------------------------------------------
Group total 420.5 400.6 398.9 376.1 419.0 451.2 465.9 466.2
-------------------------------------------------------------------------
Operating profit / loss
Fiber Composites -30.4 8.8 5.3 -2.5 -24.7 7.7 16.8 15.5
Specialty Papers 3.8 7.3 6.8 -3.4 -6.5 6.5 4.7 5.5
Other operations and
eliminations -0.0 -3.0 -2.4 -4.9 -4.2 -2.9 -2.0 -1.7
-------------------------------------------------------------------------
Group total -26.6 13.1 9.7 -10.7 -35.4 11.3 19.4 19.3
-------------------------------------------------------------------------
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KEY FIGURES QUARTERLY Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR million 2009 2009 2009 2009 2008 2008 2008 2008
--------------------------------------------------------------------------------
Net sales 420.5 400.6 398.9 376.1 419.0 451.2 465.9 466.2
Operating profit /
loss -26.6 13.1 9.7 -10.7 -35.4 11.3 19.4 19.3
Profit / loss before
taxes -33.4 7.3 4.7 -18.6 -49.5 3.5 14.2 11.2
Profit / loss for the
period -27.9 4.9 2.5 -12.4 -37.0 2.5 10.6 7.8
--------------------------------------------------------------------------------
Gearing ratio, % 57.7 81.9 92.0 99.8 95.3 84.8 76.0 64.4
Return on capital
employed
(ROCE), % -9.4 4.8 3.2 -3.3 -10.8 3.9 6.3 6.4
Basic earnings per
share*, EUR -0.61 0.10 0.05 -0.26 -0.79 0.04 0.22 0.15
Cash earnings per
share, EUR 1.04 1.44 1.56 0.45 0.67 0.53 0.12 0.87
Average number of
shares
during the period,
1000's 46,671 46,671 46,671 46,671 46,671 46,671 46,671 46,671
--------------------------------------------------------------------------------
*With the effect of interest on hybrid bond for the period after taxes
CALCULATION OF KEY FIGURES
Interest-bearing net
liabilities
Interest-bearing loans and borrowings - Cash and cash equivalents - Other
investments (current)
Equity ratio, %
Total
equity/ x
100
Total assets -
Advances received
Gearing ratio, %
Interest-bearing net liabilities/ x
100
Total equity
Return on equity
(ROE), %
Profit (loss) for the period/ x
100
Total equity (annual
average)
Return on capital
employed (ROCE), %
Profit (loss) before taxes + Financing
expenses/ x 100
Total assets (annual average) - Non-interest bearing liabilities
(annual average)
Basic earnings per
share, EUR
Profit (loss) for the period - Minority interest - Interest on hybrid bond for
the period after taxes/
Average number of
shares during the
period
Diluted earnings per
share, EUR
Profit (loss) for the period - Minority interest - Interest on hybrid bond for
the period after taxes/
Average diluted
number of shares
during the period
Cash earnings per
share, EUR
Net cash from
operating
activities/
Average number of
shares during the
period
Equity per share,
EUR
Equity attributable
to owners of the
parent/
Number of shares at
the end of the
period
--------------------------------------------------------------------------------
*Ahlstrom's business is reported in two segments: the Fiber Composites segment
and the Specialty Papers segment. The Fiber Composites segment comprises the
Advanced Nonwovens, Filtration, Glass & Industrial Nonwovens and Home & Personal
Nonwovens business areas. The Specialty Papers segment covers the Release &
Label Papers and Technical Papers business areas.
*Ahlstrom's business is reported in two segments: the Fiber Composites segment
and the Specialty Papers segment. The Fiber Composites segment comprises the
Advanced Nonwovens, Filtration, Glass & Industrial Nonwovens and Home & Personal
Nonwovens business areas. The Specialty Papers segment covers the Release &
Label Papers and Technical Papers business areas.
* Market related downtime = downtime taken due to market reasons, lack of orders
or too high product stock. Otherwise plants could have run normally without any
other downtime.
Market related downtime % = market related downtime / manned time.
Manned time = available time - unmanned time. Time the machines were running
according to their shift system.
* 3M definition applied: New product perceived by customer as new, not older
than 3 years; Other innovations represent a significant technical contribution,
not older than 3 years.
[HUG#1380151]
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