Raute - Interim report (Q1 and Q3)

Raute Corporation - Interim Report January 1 - September 30, 2017

RAUTE CORPORATION INTERIM REPORT OCTOBER 31, 2017 AT 9:00 a.m.
 

RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2017

- The Group’s net sales, EUR 109.0 million (MEUR 77.1), increased 41% on the comparison period. The order intake was EUR 94 million (MEUR 120).
- Operating profit was EUR 8.3 million (MEUR 4.3), showing growth of 94% on the comparison period. The result before taxes was EUR 8.3 million (MEUR 3.9).
- Earnings per share were EUR 1.52 (EUR 0.74).
- Third-quarter net sales amounted to EUR 37.2 million and the operating result was EUR 4.2 million. Order intake was EUR 42 million. The order book at the end of the reporting period amounted to EUR 89 million (MEUR 102).
- The outlook for financial performance remains unchanged. Raute’s net sales are expected to grow clearly in 2017 and operating profit is forecast to improve clearly from 2016.
  

TAPANI KIISKI, PRESIDENT AND CEO: EXCELLENT SUCCESS IN THE THIRD QUARTER

The growth in net sales in the third quarter met our target. That helped for its part to raise our profitability to an excellent level. We are happy with our result development. We are well on our way to proving our prediction that our relative profitability will improve in the second half of the year.

During the third quarter, we succeeded in our deliveries as planned. We owe our improved relative profitability to nearly record-high net sales, the relatively lower general costs in the period and our success in project implementation and operational development projects. Also the order intake, EUR 42 million, was at a good level.

Our order book is strong, and we have a significant amount in the orders for the year 2018 and some also for the year 2019. Thus, we will retain our good momentum, and the utilization rates of our resources will remain high for the rest of the year. The order book scheduled for the last quarter of the year predicts that this year will be more even in terms of net sales than some previous ones. The operating profit of the last quarter will correspond with the level of net sales. As the demand on our key market areas has also continued active, our outlook is promising.

Thanks to a good start to the year, a strong order book and continued active demand, I am confident that our net sales will clearly grow and our operating profit will clearly improve from the previous year.

THIRD QUARTER OF 2017

Order intake and order book

The order intake in the third quarter, EUR 42 million (MEUR 92), was at a good level. The biggest single new orders were for an LVL lay-up line to the United States, an order for two veneer peeling lines to Italy and a veneer pressing line for Italy.

Technology services accounted for EUR 13 million (MEUR 11) of the order intake.

The order book grew during the past quarter by EUR 3 million, amounting to a strong EUR 89 million at the end of the period (MEUR 102).

Net sales

Third-quarter net sales amounted to nearly record-high EUR 37.2 million (MEUR 23.4). Technology services accounted for 38 percent (49%) of the total net sales and amounted to EUR 14.2 million (MEUR 11.3).

Result and profitability

Operating profit in the third quarter was EUR 4.2 million positive (MEUR 1.4 positive) and accounted for 11.2 percent (5.8%) of net sales. The result was EUR 3.4 million positive (MEUR 0.9 positive), and earnings per share (undiluted) were EUR +0.81 (EUR +0.22). The quarter’s profitability was impacted by nearly record-high net sales, the relatively lower general costs in the period, successful project implementation and the results of our operational development projects.

RAUTE CORPORATION - INTERIM REPORT JANUARY 1-SEPTEMBER 30, 2017

BUSINESS ENVIRONMENT

Market situation in customer industries

The situation in the global economy and the financial markets during 2017 did not change considerably with respect to Raute or Raute’s customer base. The relatively slow positive development has continued in the key market areas.

Although construction activity has increased in many market areas, it is still at a fairly low level in all market areas, including North America. Thanks to the continued brighter market situation, investment activity among Raute’s customers has gradually improved and the unravelling of the built-up investment backlog has begun. Projects that have been at the negotiation stage for a long time have begun to materialize as orders. Demand has remained fairly brisk over the whole of the past year.

Demand for wood products technology and technology services

Invitations to tender for both creating new capacity and even smaller project-type undertakings continued at a good level, and trade negotiations took place at a brisk pace. Plenty of projects encompassing individual machine lines were started up.

Demand for maintenance and spare parts services remained good. This indicates that the utilization rates of Raute’s customers’ production facilities continued to remain, for the most part, at a good level.

ORDER INTAKE AND ORDER BOOK

Raute serves the wood products industry with a full-service concept based on service that encompasses the entire life cycle of the delivered equipment. Raute’s business consists of project deliveries and technology services. Project deliveries encompass projects from individual machine or production line deliveries to deliveries of all the machines and equipment belonging to a mill’s production process. Additionally, Raute’s full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations, as well as consulting, training and reconditioned machinery.

The order intake during the review period was at a good level and amounted to EUR 94 million (MEUR 120). An exceptionally large proportion of new orders was again received from European customers. A large LVL lay-up line order raised North America’s share of the order intake higher than it has been in the recent past. Similarly, Russia accounted for an unusually small share of new orders in the third quarter.

Of new orders, 50 percent came from Europe (53%), 28 percent from North America (7%), 14 percent from Russia (35%), 1 percent from Asia-Pacific (3%) and 7 percent from South America (2%). The third quarter accounted for EUR 42 million of the order intake. Sometimes even strong fluctuations in the distribution of new orders between the various market areas and over time are typical for project-focused business.

Order intake in technology services amounted to EUR 39 million (MEUR 29), increasing 31 percent on the comparison period. Growth came equally from all areas of technology services.

The order book grew by EUR 3 million during the third quarter. The order book at the end of the reporting period amounted to a strong EUR 89 million (MEUR 102). A significant portion of the order book is scheduled for 2018.

COMPETITIVE POSITION

Raute’s competitive position has remained unchanged and is good. Raute’s solutions help customers in securing their delivery and service capabilities throughout the life cycle of the production process or a part thereof. In such investments, the supplier’s overall expertise and extensive and diverse technology offering play a key role. The competitive edge provided by Raute plays a major role when customers select their cooperation partners. Raute’s strong financial position and long-term dedication to serving selected customer industries also enhance its credibility and improve its competitive position as a company that carries out long-term investment projects.

The Metriguard products acquired in April complement Raute’s product range. Metriguard’s equipment has been integrated into dozens of Raute’s deliveries over the years. The active installed equipment base extends from North and South America to Europe, Asia, Africa, Australia and New Zealand.

NET SALES

Net sales for the reporting period, EUR 109.0 million (MEUR 77.1), were up 41 percent on the comparison period.

Of the total net sales for the reporting period, Europe accounted for 52 percent (60%), Russia for 28 percent (16%), North America for 14 percent (16%), South America for 4 percent (4%), and Asia-Pacific for 2 percent (5%).

Net sales for technology services grew during the reporting period by 21 percent and amounted to EUR 36 million (MEUR 30). Technology services’ share of the Group’s total net sales declined to 33 percent (39%) due to the strong 54 percent growth in project deliveries.

RESULT AND PROFITABILITY

During the period under review, operating profit was EUR 8.3 million positive (MEUR 4.3 positive) and accounted for 7.6 percent of net sales (5.5%). Operating profit grew 94 percent on the comparison period.

The result before taxes for the reporting period was EUR 8.3 million positive (MEUR 3.9 positive). The result for the reporting period was EUR 6.4 million positive (MEUR 3.1 positive). Earnings per share (undiluted) were EUR 1.52 (EUR 0.74).

CASH FLOW AND BALANCE SHEET

The Group’s financial position has remained good. At the end of the reporting period, gearing was –56 percent (–50%) and the equity ratio 61 percent (62%). Fluctuations in balance sheet working capital items and the key figures based on them are due to differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of the project business.

The Group’s cash and cash equivalents amounted to EUR 23.1 million (MEUR 19.1) at the end of the reporting period. Operating cash flow was EUR 9.2 million positive (MEUR 15.4 positive). Cash flow from investment activities was EUR 5.8 million negative (MEUR 2.4 negative), including the cash consideration of EUR 2.9 million on the purchase price and costs of EUR 0.5 million related to the acquisition of the Metriguard business. Cash flow from financing activities was EUR 4.1 million negative (MEUR 0.4 negative), including dividend payments of EUR 4.2 million.
 
Interest-bearing liabilities amounted to EUR 3.0 million (MEUR 3.9) at the end of the reporting period.

The parent company Raute Corporation has a EUR 10 million commercial paper program, which allows the company to issue commercial papers maturing in less than one year.

The parent company Raute Corporation is prepared for future working capital needs and has long-term credit facility agreements with three Nordic banks totaling EUR 23.0 million. The main covenants for the credit facility are an equity ratio of >30% and gearing of <100%. Of the credit facilities, EUR 21.7 million remained unused at the end of the reporting period.

EVENTS DURING THE REPORTING PERIOD

Raute Corporation published stock exchange releases on the following events:

January 2, 2017 Market-making for Raute Corporation transferred to Nordea Bank AB (publ)
January 11, 2017 Raute Corporation's trading and issuer codes to change as from January 16, 2017
February 15, 2017 A new performance- and share-value-based long-term incentive program established for Raute’s top management
March 6, 2017  Disposal of Raute Corporation’s own shares
March 28, 2017 Decisions of Raute’s Annual General Meeting
March 31, 2017 Raute Corporation strengthens its offering in veneer and lumber grading technology by acquiring the business of Metriguard Inc.
July 27, 2017 Raute revises its guidance for 2017 net sales and operating profit:  Net sales will grow clearly and operating profit will improve clearly
July 31, 2017  Raute receives an order worth over EUR 11 million to USA
September 25, 2017 Issue of new shares of Raute Corporation without consideration to the company itself.   

RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE

Raute is a leading technology supplier for the plywood and LVL industries and focuses strongly on the development of increasingly efficient, productive and environmentally friendly manufacturing technology and supporting measurement and machine vision applications. Opportunities provided by digitalization are also an essential part of R&D activities. 

Research and development costs in the reporting period amounted to EUR 2.4 million (MEUR 2.0), representing 2.2 percent of net sales (2.6%).

Capital expenditure during the period came to EUR 5.6 million (MEUR 2.4) and accounted for 5.2 percent (3.1%) of net sales. The acquisition of the Metriguard business accounted for EUR 3.4 million of the Group’s capital expenditure, including an estimate of the earn-out share to be paid in 2018.

PERSONNEL

During the reporting period, the Group’s personnel grew by 42 people, numbering 685 (637) at the end of the reporting period. The higher number of personnel includes the transfer of 24 employees to Raute in connection with the acquisition of Metriguard Inc. Group companies outside Finland accounted for 30 percent (29%) of employees.

Converted to full-time employees (“effective headcount”), the average number of employees was 657 (632) during the reporting period.

GROUP STRUCTURE 

Raute Group established a new subsidiary, Metriguard Technologies, Inc., in the United States. The new subsidiary was a party to the acquisition agreement realized with Metriguard Inc. and has continued Metriguard Inc.’s business as of April 3, 2017.
 
Metriguard is a market leader in grading technology for lumber and veneer manufactured in an industrial production process. Metriguard sells and maintains measuring equipment for the veneer and plywood industry and for sawmills on a global scale. The subsidiary is located in Pullman, Washington.

The Metriguard business’s financial information will be reported as part of Raute’s wood products technology segment. The full consideration for the business was EUR 4.0 million, of which EUR 2.9 million was paid in the form of a cash consideration. The value of the acquired net assets amounted to EUR 3.0 million and goodwill generated was EUR 1.0 million. Expenses of EUR 0.5 million related to the acquisition were entered as a cost item.

SHARES

The number of Raute Corporation’s shares at the end of the reporting period totaled 4,230,335, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,239,174 were series A shares (1 vote/share). Series K and A shares confer equal rights to dividends and company assets.

Series K shares can be converted to series A shares under the terms set out in section 3 of the Articles of Association. If an ordinary share is transferred to a new owner who has not previously held series K shares, the new owner must notify the Board of Directors of this in writing and without delay. Other holders of series K shares have the right to redeem the share under the terms specified in Article 4 of the Articles of Association.

Raute Corporation’s series A shares are listed on Nasdaq Helsinki Ltd. The trading code is RAUTE. Raute Corporation has signed a market making agreement with Nordea Bank Ab in compliance with the Liquidity Providing (LP) requirements issued by Nasdaq Helsinki Ltd.

The company’s market capitalization at the end of the reporting period was EUR 96.1 million (MEUR 68.2), with series K shares valued at the closing price of series A shares on September 30, 2017, i.e. EUR 22.71 (EUR 16.29).

On September 25, 2017, the company resolved on the issuance of new shares to the company itself without consideration so that, in spring 2018, it will have own shares held by the company available for the payment of the share rewards payable based on the company’s share incentive plan 2016–2018. The 8,913 new series A shares were entered in the Trade Register on October 17, 2017 and admitted to public trading on October 18, 2017.

STOCK OPTIONS

At the end of the reporting period, altogether 23,946 of the company’s series 2010 C stock options were unexercised. The subscription period for Raute Corporation’s series B stock options ended on March 31, 2017.

Raute Corporation’s series 2010 C stock options are listed on Nasdaq Helsinki Ltd under the trading code RAUTEEW310. The subscription period for series C stock options is March 1, 2015–March 31, 2018. The subscription price at the end of the reporting period was EUR 5.00 and the closing price was EUR 15.00.

REMUNERATION

The Group has remuneration systems in place that cover the entire personnel.

Share-based incentive plans

The Group has valid long-term share-based incentive plans based on performance.

The company presented its latest performance- and share-based long-term incentive plan to the top management on February 15, 2017.

The terms and conditions of the incentive plans are available on the company’s website.

SHAREHOLDERS

The number of shareholders totaled 3,625 at the beginning of the year and 4,419 at the end of the reporting period. Series K shares were held by 55 private individuals (50) at the end of the reporting period. The company did not receive any flagging notifications during the reporting period.

The Board of Directors, the President and CEO as well as the Executive Board held altogether 246,573 company shares, equaling 5.8 percent (5.9%) of the company shares and 11.2 percent (11.2%) of the votes at the end of the reporting period.

CORPORATE GOVERNANCE

Raute Corporation complies with the Finnish Corporate Governance Code 2015 for listed companies issued by the Securities Market Association on October 1, 2015.

EXECUTIVE BOARD

Raute Group’s Executive Board and the members’ areas of responsibility:
Tapani Kiiski, President and CEO, Chairman - Sales
Arja Hakala, Group Vice President, Finance, CFO - Finance and administration 
Marko Hjelt, Group Vice President, Human Resources - Human resources and competence development
Mika Hyysti, Group Vice President, Technology - Technology, products and R&D
Timo Kangas, Group Vice President, EMEA - Market area EMEA
Antti Laulainen, Group Vice President, Technology Services and Sales Management - Technology services and sales management
Petri Strengell, Group Vice President, Supply Chain - Sourcing and production.

ANNUAL GENERAL MEETING 2017

Raute Corporation’s Annual General Meeting was held on March 28, 2017. More detailed information on the decisions of the Annual General Meeting can be found in the stock exchange release issued on March 28, 2017.

DISTRIBUTION OF PROFIT FOR THE 2016 FINANCIAL YEAR

The company distributed a dividend of EUR 1.00 per share for the 2016 financial year. The total amount of dividends is EUR 4.2 million, with series A shares accounting for EUR 3,228,550.00 and series K shares for EUR 991,161.00. The dividend payment date was April 6, 2017.

BOARD OF DIRECTORS AND BOARD COMMITTEES

At the General Meeting on March 28, 2017, Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio was elected Vice-Chair, and Mr. Joni Bask, Ms. Laura Raitio, Mr. Pekka Suominen, and Mr. Patrick von Essen were elected as Board members. The Board of Directors’ term of office will continue until the 2018 Annual General Meeting.

Based on the evaluation of independence, Chairman Mr. Erkki Pehu-Lehtonen and members Mr. Joni Bask, Mr. Patrick von Essen, Ms. Laura Raitio, and Mr. Pekka Suominen are independent of the company. The Chairman of the Board (Mr. Erkki Pehu-Lehtonen) and two Board members (Mr. Patrick von Essen and Ms. Laura Raitio) are independent of major shareholders.

Raute Corporation’s Board of Directors has an Appointments Committee. The Appointments Committee is chaired by Mr. Erkki Pehu-Lehtonen and its members are Mr. Mika Mustakallio and Mr. Pekka Suominen. The Audit and Working Committees’ tasks are handled by the Board of Directors.

EVENTS AFTER THE REPORTING PERIOD

Raute Corporation published stock exchange releases on the following events after the reporting period:

October 17, 2017 The 8,913 new series A shares of Raute Corporation registered and admitted to public trading   
October 24, 2017 Raute received an order of over EUR 21 million.

BUSINESS RISKS

Risks in the near term continue to be driven by the uncertainty relating to the global economic situation and the development of the financial markets, as well as by international political instability. During the reporting period, there were no essential changes in the business risks described in the 2016 Board of Directors’ Report and Financial Statements.

The most significant risks for Raute in the near term are related to the implementation of major mill-scale projects that are in the order book, in accordance with the contract terms.

OUTLOOK FOR 2017

On July 27, 2017, Raute changed its guidance for the full year 2017 concerning net sales and operating profit. The accumulated net sales and operating profit, the order book timed for the rest of the year, the accumulation of new orders and continued active demand confirm our previous estimate: Raute’s net sales in 2017 are expected to grow clearly and operating profit is forecast to improve clearly from 2016.

TABLES SECTION OF THE INTERIM REPORT 

Raute Corporation's Board of Directors has on October 31, 2017 reviewed the Interim financial report for January 1 - September 30, 2017 and approved it to be published in compliance with this release. 

The figures for the financial year 2016 presented in the figures section of the Interim report have been audited. The presented interim financial report figures have not been audited.

 

CONSOLIDATED STATEMENT OF  INCOME
		1.7.–30.9.	1.7.–30.9.	1.1.–30.9.	1.1.–30.9.	1.1.–31.12.
(EUR 1 000)		2017	2016	2017	2016	2016
NET SALES		37 152	23 355	108 956	77 087	113 130
Change in inventories of finished goods and work in progress		-224	67	1 013	1 044	150
Other operating income		167	46	286	1 080	1 103
Materials and services		-19 386	-10 032	-59 538	-37 809	-54 849
Employee benefits expense		-9 495	-8 627	-29 599	-26 725	-36 606
Depreciation and amortization		-654	-605	-1 931	-1 694	-2 340
Other operating expenses		-3 381	-2 838	-10 915	-8 717	-12 030
Total operating expenses		-32 916	-22 103	-101 983	-74 944	-105 825
OPERATING PROFIT		4 179	1 364	8 273	4 267	8 558
% of net sales		11,2	5,8	7,6	5,5	7,6
Financial income		19	-70	354	-29	123
Financial expenses		-121	-134	-371	-322	-461
Financial expenses, net		-102	-205	-17	-351	-338
PROFIT BEFORE TAX		4 077	1 159	8 256	3 916	8 220
% of net sales		11,0	5,0	7,6	5,1	7,3
Income taxes		-660	-219	-1 846	-847	-1 536
PROFIT FOR THE PERIOD		3 417	940	6 410	3 069	6 684
% of net sales		9,2	4,0	5,9	4,0	5,9
Profit for the period attributable to
Equity holders of the Parent company		3 417	940	6 410	3 069	6 684
Earnings per share for profit attributable
to Equity holders of the Parent company, EUR
Undiluted earnings per share		0,81	0,22	1,52	0,74	1,60
Diluted earnings per share		0,80	0,22	1,51	0,73	1,59
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
		1.7.–30.9.	1.7.–30.9.	1.1.–30.9.	1.1.–30.9.	1.1.–31.12.
(EUR 1 000)		2017	2016	2017	2016	2016
PROFIT FOR THE PERIOD		3 417	940	6 410	3 069	6 684
Other comprehensive income items:
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit obligations		-	-	-	-	-
Items that may be subsequently reclassified to profit or loss
Changes in the fair value of available-for-sale investments		-	-	-259	-	259
Hedge accounting		-40	-41	-220	1	66
Exchange differences on translating foreign operations		-85	-86	-177	200	534
Income taxes related to these items		18	-	97	-	-60
Comprehensive income items for the period, net of tax		-109	-127	-559	201	799
COMPREHENSIVE PROFIT FOR THE PERIOD		3 308	814	5 852	3 270	7 483
Comprehensive profit for the period attributable to
Equity holders of the Parent company		3 308	814	5 852	3 270	7 483
Shares, 1 000 pcs
Adjusted average number of shares		4 229	4 192	4 220	4 160	4 167
Adjusted average number of shares diluted		4 259	4 201	4 249	4 194	4 210
CONSOLIDATED BALANCE SHEET			30.9.	30.9.	31.12.
(EUR 1 000)			2017	2016	2016
ASSETS
Non-current assets
Goodwill			1 035	-	-
Other intangible assets			2 711	1 497	1 353
Property, plant and equipment			9 290	9 306	9 580
Other financial assets			471	490	748
Deferred tax assets			351	184	167
Total non-current assets			13 858	11 476	11 848
Current assets
Inventories			11 670	10 368	9 674
Accounts receivables and other receivables			29 305	20 973	24 435
Income tax receivable			50	183	40
Cash and cash equivalents			23 123	19 120	23 769
Total current assets			64 147	50 644	57 918
TOTAL ASSETS			78 005	62 120	69 767
EQUITY AND LIABILITIES
Equity attributable to Equity holders of the Parent company
Share capital			8 256	8 256	8 256
Fair value reserve and other reserves			6 479	6 687	6 577
Exchange differences			665	508	842
Retained earnings			14 322	11 859	11 859
Profit for the period			6 410	3 069	6 684
Total equity			36 132	30 379	34 217
Non-current liabilities
Provisions			927	501	462
Deferred tax liability			24	10	192
Total non-current liabilities			951	511	653
Current liabilities
Provisions			1 141	1 303	1 156
Current interest-bearing liabilities			2 982	3 853	3 136
Current advance payments received			18 472	13 243	13 069
Income tax liability			899	734	1 131
Trade payables and other liabilities			17 428	12 097	16 404
Total current liabilities			40 922	31 231	34 896
Total liabilities			41 873	31 742	35 549
TOTAL EQUITY AND LIABILITIES			78 005	62 120	69 767
CONSOLIDATED STATEMENT OF CASH FLOWS			1.1.–30.9.	1.1.–30.9.	1.1.–31.12.
(EUR 1 000)			2017	2016	2016
CASH FLOW FROM OPERATING ACTIVITIES
Proceeds from customers			118 350	91 896	123 974
Other operating income			286	1 080	1 103
Payments to suppliers and employees			-106 766	-77 004	-103 221
Cash flow before financial items and taxes			11 870	15 972	21 856
Interest paid from operating activities			-215	-78	-111
Dividends received from operating activities			120	114	114
Interest received from operating activities			4	2	3
Other financing items from operating activities			-203	-203	-251
Income taxes paid from operating activities			-2 408	-404	-374
NET CASH FLOW FROM OPERATING ACTIVITIES (A)			9 169	15 403	21 237
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible assets			-2 631	-2 460	-3 019
Business transaction			-3 371	-	-
Proceeds from sale of property, plant and equipment and intangible assets			29	26	94
Proceeds from sale of investments			182	-	-
NET CASH FLOW FROM INVESTING ACTIVITIES (B)			-5 790	-2 435	-2 925
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of share capital			155	510	528
Proceeds from current borrowings			3 000	6 011	6 410
Repayments of current borrowings			-3 000	-3 625	-4 794
Dividends paid and return of equity			-4 220	-3 303	-3 303
NET CASH FLOW FROM FINANCING ACTIVITIES (C)			-4 065	-406	-1 158
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C)			-686	12 562	17 154
increase (+)/decrease (-)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD*			23 769	6 538	6 538
NET CHANGE IN CASH AND CASH EQUIVALENTS			-686	12 562	17 154
EFFECTS OF EXCHANGE RATE CHANGES ON CASH			40	21	77
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD*			23 123	19 120	23 769
CASH AND CASH EQUIVALENTS IN THE BALANCE
SHEET AT THE END OF THE PERIOD*
Cash and cash equivalents			23 123	19 120	23 769
TOTAL			23 123	19 120	23 769
*Cash and cash equivalents comprise cash and bank receivables, which will be due within the following three months' period.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
	Share	Invested non-restricted	Other	Exchange	Retained
(EUR 1 000)	capital	equity reserve	reserves	differences	earnings
EQUITY at Jan. 1, 2017	8 256	5 445	1 132	842	18 543
Comprehensive profit for the period
Profit for the period	-	-	-	-	6 410
Other comprehensive income items:
Changes in the fair value of
available-for-sale investments	-	-	-259	-	-
Hedging reserve	-	-	-220	-	-
Exchange differences on translating foreign operations	-	-	-	-177	-
Income taxes related to these items	-	-	97	-	-
Total comprehensive profit for the period	0	0	-382	-177	6 410
Transactions with owners
Share-options exercised	-	155	-	-	-
Equity-settled share-based transactions	-	-	128	-	-
Dividends	-	-	-	-	-4 220
Total transactions with owners	0	155	128	0	-4 220
EQUITY at September 30, 2017	8 256	5 600	879	665	20 733
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
	To the owners of		TOTAL
(EUR 1 000)	the Parent company		EQUITY
EQUITY at Jan. 1, 2017	34 217		34 217
Comprehensive profit for the period
Profit for the period	6 410		6 410
Other comprehensive income items:
Changes in the fair value
available-for-sale investments	-259		-259
Hedging reserve	-220		-220
Exchange differences on translating foreign operations	-177		-177
Income taxes related to these items	97		97
Total comprehensive profit for the period	5 851		5 851
Transactions with owners
Share-options exercised	155		155
Equity-settled share-based transactions	128		128
Dividends	-4 220		-4 220
Total transactions with owners	-3 937		-3 937
EQUITY at September 30, 2017	36 132		36 132
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
	Share	Invested non-restricted	Other	Exchange	Retained
(EUR 1 000)	capital	equity reserve	reserves	differences	earnings
EQUITY at Jan. 1, 2016	8 223	4 950	1 058	308	15 161
Comprehensive profit for the period
Profit for the period	-	-	-	-	3 069
Other comprehensive income items:
Changes in the fair value of
available-for-sale investments	-	-	-	-	-
Hedging reserve	-	-	1	-	-
Exchange differences on translating foreign operations	-	-	-	200	-
Income taxes related to these items	-	-	-	-	-
Total comprehensive profit for the period	0	0	1	200	3 069
Transactions with owners
Share-options exercised	33	477	-	-	-
Equity-settled share-based transactions	-	-	200	-	-
Dividends	-	-	-	-	-3 303
Total transactions with owners	33	477	200	0	-3 303
EQUITY at September 30, 2016	8 256	5 427	1 260	508	14 928
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
	To the owners of		TOTAL
(EUR 1 000)	the Parent company		EQUITY
EQUITY at Jan. 1, 2016	29 700		29 700
Comprehensive profit for the period
Profit for the period	3 069		3 069
Other comprehensive income items:
Changes in the fair value of
available-for-sale investments	-		-
Hedging reserve	1		1
Exchange differences on translating foreign operations	200		200
Income taxes related to these items	-		-
Total comprehensive profit for the period	3 271		3 271
Transactions with owners
Share-options exercised	510		510
Equity-settled share-based transactions	200		200
Dividends	-3 303		-3 303
Total transactions with owners	-2 593		-2 593
EQUITY at September 30, 2016	30 379		30 379

NOTES TO THE INTERIM FINANCIAL REPORT 

General information

Raute Group is a globally operating technology and service company with core competence in selected wood products manufacturing processes. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL and sawn timber. 

Raute’s full-service concept is based on product life-cycle management and includes project deliveries and technology services. Its technology offering covers machinery and equipment of the customer's entire production process. In addition to a broad range of machines and equipment, Raute’s solutions cover technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. 

Raute Group's Parent company, Raute Corporation, is a Finnish public limited liability company established in accordance with Finnish law (Business ID FI01490726). Its series A shares are quoted on Nasdaq Helsinki Ltd, under Industrials. Raute Corporation is domiciled in Lahti. The address of its registered office is Rautetie 2, FI-15550 Nastola, and its postal address is P.O. Box 69, FI-15551 Nastola. 

Basis of preparation

Raute Corporation's Interim financial report for January 1 - September 30, 2017 has been prepared in accordance with standard IAS 34 Interim Financial Reporting, and with the principles of presentation presented in the consolidated financial statement 2016. The Interim financial report does not contain full notes or other information presented in the financial statements, and therefore the Interim financial report should be read in conjunction with the Financial statements published for 2016. Preparations of the Interim financial report have complied with the IAS and IFRS standards, as well as SIC and IFRIC interpretations, effective on September 30, 2017. 

Preparation work for the adoption of IFRS 15 standard in Raute Group continues. Raute will give additional information on the impacts of the IFRS standard in the year-end financial statements 2017 and estimates on the numerical impacts at the beginning of the financial year 2018. 

All of the figures presented in the Interim financial report are in thousand euro, unless otherwise stated. Due to the rounding of the figures in the tables, the sums of figures may deviate from the sum total presented in the table. Figures in parentheses refer to the corresponding figures in the comparison period. 

When preparing the Interim financial report in compliance with International Financial Reporting Standards, the company management has made  estimates and assumptions. The estimates and assumptions have been based on management’s best knowledge at the reporting date, therefore actual results may differ from these estimates.

Raute Corporation's consolidated financial statement information is available online at www.raute.com or at the head office of the Parent company, Rautetie 2, FI-15550 Nastola, Finland. 

Net sales

The main part of the net sales is comprised of project deliveries and modernizations, which have been treated as long-term projects. The rest of the net sales is comprised of technology services provided to the wood products industry such as spare parts and maintenance services as well as services provided to the development of customers’ business. 

Project deliveries and modernizations related to technology services include both product and service sales, making it impossible to give a reliable presentation of the breakdown of the Group’s net sales into purely product and service sales. 

Large delivery projects can temporarily increase the shares of various customers of the Group’s net sales to more than ten percent. At the end of the period, the Group had three customers (2), whose customized share of the Group’s net sales temporarily exceeded ten percent. The sales share of the customers was 46 percent.

 

	1.1.–30.9.		1.1.–30.9.		1.1.–31.12.
	2017	%	2016	%	2016	%
Net sales by market area
EMEA (Europe and Africa)	56 826	52	45 958	60	67 186	60
CIS (Russia)	29 938	28	12 261	16	19 928	17
NAM (North America)	15 149	14	12 244	16	16 829	15
LAM (South America)	4 459	4	2 990	4	3 826	3
APAC (Asia-Pacific)	2 585	2	3 634	5	5 361	5
TOTAL	108 956	100	77 087	100	113 130	100
Finland accounted for 16 percent (16 %) of net sales.
			30.9.	30.9.	31.12.
			2017	2016	2016
Long-term projects
Specification of net sales
Net sales by percentage of completion			86 993	60 430	89 231
Other net sales			21 964	16 657	23 899
TOTAL			108 956	77 087	113 130
Project revenues entered as income from currently undelivered
long-term projects recognized by percentage of completion			146 351	105 466	114 461
Amount of long-term project revenues not yet entered as income (order book)			85 686	101 169	105 684
The balance sheet items of the undelivered projects
Projects for which the value by percentage of completion exceeds
advance payments invoiced
- aggregate amount of costs incurred and recognized profits less recognized losses			98 128	82 827	90 806
- advance payments received			80 050	69 255	74 065
Gross amount due from customers			18 078	13 572	16 741
Projects in which advance payments invoiced exceed the value by
percentage of completion
- aggregate amount of costs incurred and recognized profits less recognized losses			47 304	21 279	23 641
- advance payments received			63 713	33 495	35 980
Gross amount due to customers			16 409	12 216	12 339
Advance payments included in the current liabilities in the balance sheet
Gross amount due to customers			16 409	12 216	12 339
Other advance payments received, not under percentage of completion			2 063	1 027	730
Total			18 472	13 243	13 069
Advance payments of the long-term projects included in inventories in the balance sheet
Advance payments paid for long-term projects			1 042	575	847
Total			1 042	575	847
			30.9.	30.9.	31.12.
Number of personnel			2017	2016	2016
Effective, on average			657	632	631
In books, on average			676	642	642
In books, at the end of the period			685	637	643
Personnel working abroad, at the end of the period			206	185	183
Personnel working abroad, %			30,1	29,0	28,5
Pledges on behalf of the company's management
No loans have been granted to the company's management.
No pledges have been given or other commitments made on behalf of the company's management and shareholders.
			30.9.	30.9.	31.12.
			2017	2016	2016
Research and development costs
Research and development costs for the period			-2 416	-1 980	-2 863
Amortization of previously capitalized development costs			-170	-170	-227
Development costs recognized as an asset in the balance sheet			84	-	-
Research and development costs entered as expense for the period			-2 502	-2 150	-3 090
			30.9.	30.9.	31.12.
			2017	2016	2016
Other intangible assets
Acquisition cost at the beginning of the period			13 391	14 035	14 035
Exchange rate differences			-49	-46	-28
Additions			1 684	94	108
Reclassification between items			252	296	-724
Acquisition cost at the end of the period			16 298	14 378	13 391
Accumulated depreciation and amortization at the beginning of the period			-12 038	-12 426	-12 426
Exchange rate differences			43	33	18
Accumulated depreciation and amortization of disposals and reclassifications			-	-	1 020
Depreciation and amortization for the period			-573	-488	-650
Accumulated depreciation and amortization at the end of the period			-13 587	-12 882	-12 038
Book value of Intangible assets, at the beginning of the period			1 353	1 609	1 609
Book value of Intangible assets, at the end of the period			2 711	1 497	1 353
			30.9.	30.9.	31.12.
			2017	2016	2016
Property, plant and equipment
Acquisition cost at the beginning of the period			48 657	45 463	45 463
Exchange rate differences			-407	121	445
Additions			1 414	2 330	3 116
Disposals			-24	-8	-66
Reclassification between items			-252	-301	-301
Acquisition cost at the end of the period			49 389	47 605	48 657
Accumulated depreciation and amortization at the beginning of the period			-39 077	-36 934	-36 934
Exchange rate differences			335	-165	-458
Accumulated depreciation and amortization of disposals and reclassifications			1	5	5
Depreciation for the period			-1 359	-1 205	-1 690
Accumulated depreciation and amortization at the end of the period			-40 099	-38 299	-39 077
Book value of Property, plant and equipment, at the beginning of the period			9 580	8 529	8 529
Book value of Property, plant and equipment, at the end of the period			9 290	9 306	9 580

 

Business transaction Metriguard Technologies, Inc.

On April 3, 2017, Raute Corporation acquired the business of Metriguard Inc. in the USA. Metriguard sells and maintains measuring equipment for the veneer and plywood industry and for sawmills on a global scale. The production of the company has been centralized in Pullman, Washington. Metriguard’s business will be continued under Raute’s new US subsidiary, Metriguard Technologies, Inc., whose financial information will be reported as part of Raute’s wood products technology segment. 

The acquisition has been implemented as an asset purchase, including Metriguard’s intangible assets, working capital and fixed assets, except real estate. Metriguard Inc.’s personnel transferred in the business transaction. The purchase price is paid in two installments. A base purchase price of USD 3.1 million has been paid at closing. The additional earn-out payment based on net sales for a 12-month period following closing of the transaction will be paid in the summer 2018. The fair values of the balance sheet items recognized from the acquisition are preliminary. 

The Group has recognized acquisition related expenses in the amount of EUR 0.5 million. The expenses are included in Other operating expenses of the consolidated statement of income.

Fair values of the acquisition	3.4.2017
Assets and liabilities
Intangible assets	1 407
Tangible assets	94
Inventory	1 368
Sales receivables and other receivables	310
Trade payables and other payables	-178
Net assets acquired	3 002
Purchase consideration
Cash paid	2 911
Contingent consideration	1 126
Total purchase consideration	4 037
Goodwill from the acquisition
Total purchase consideration	4 037
Net assets acquired	-3 002
Goodwill	1 035

The cash flow effect of the business transaction during the review period was EUR 3,371 thousand.

Financial assets

At the end of the reporting period September 30, 2017, the fair value of the financial assets categorized at fair value on hierarchy level 3 was EUR 471 thousand.

The methods of fair value determination correspond the valuation principles presented in the Annual financial statements for 2016.

There were no transfers between the hierarchy levels 1 and 2 during the reporting period.

			30.9.	30.9.	31.12.
			2017	2016	2016
Interest-bearing liabilities
Partial payments of financial loans			2 982	3 853	3 136
TOTAL			2 982	3 853	3 136
Maturities of the interest-bearing financial liabilities at September 30, 2017			Current	Non-current	Total
Financial loans			2 982	-	2 982
TOTAL			2 982	-	2 982
			30.9.	30.9.	31.12.
			2017	2016	2016
Derivatives
Nominal values of forward contracts in foreign currency
Economic hedging
- Related to financing			500	-	-
- Related to the hedging of net sales			2 337	8 183	6 084
Hedge accounting
- Related to the hedging of net sales			11 267	1 146	2 556
Fair values of forward contracts in foreign currency
Economic hedging
- Related to financing			49	-	-
- Related to the hedging of net sales			278	-57	-41
Hedge accounting
- Related to the hedging of net sales			70	4	-75
			30.9.	30.9.	31.12.
			2017	2016	2016
Pledged assets and contingent liabilities
On behalf of the Parent company
Business mortgages			5 688	4 427	6 623
Financial loans			-	625	-
Business mortgages			-	625	-
Mortgage agreements on behalf of subsidiaries
Financial loans			2 982	3 228	3 136
Other obligations			1 442	1 488	189
Business mortgages			4 312	2 798	3 377
Commercial bank guarantees on behalf of the Parent company and subsidiaries			24 352	11 840	17 793
Other own obligations
Rental liabilities maturing within one year			972	845	926
Rental liabilities maturing in one to five years			1 297	694	756
Rental liabilities maturing later			-	2	1
Total			2 269	1 541	1 684

  

Share-based payments

A total of 23 873 Raute's series A shares have been subscribed for with Raute's stock options 2010 B and 2010 C during the reporting period. The new shares have been registered in the Trade Register on February 23, 2017, May 9, and August 9, 2017.

On September 30, 2017 the company's share capital is EUR 8 256 316 and the number of company's shares 4 230 335 pieces.

An expense of EUR 329 thousand was recognized for the share rewards to the income statement during the reporting period.

During the reporting period, no share rewards were delivered based on the long-term share-based incentive program 2014-2018 directed to the top management.

Distribution of the profit for the financial year 2016

Raute Corporation's Annual General Meeting held on March 28, 2017, decided, according to the Board of Directors' proposal, to distribute a dividend of EUR 1.00 per share to be paid for series A and K shares, a total of EUR 4 220 thousand. The dividend payment date was April 6, 2017.

Segment information

Continuing operations of Raute Group belong to the wood products technology segment. Raute Corporation's Board of Directors is the chief operating decision maker that is responsible for assigning resources to the operating segment and assessing its result.

Due to Raute's business model, operational nature and administrative structure, the operational segment to be reported as wood products technology segment is comprised of the whole Group and the information on the segment is consistent with that of the Group. Segment reporting follows the principles of presentation of the consolidated financial statements.

	30.9.		30.9.		31.12.
Wood products technology	2017		2016		2016
Net sales	108 956		77 087		113 130
Operating profit	8 273		4 267		8 558
Assets	78 005		62 120		69 767
Liabilities	41 873		31 742		35 549
Capital expenditure	5 641		2 424		3 224
Assets of the wood products technology	30.9.		30.9.		31.12.
segment by geographical location	2017	%	2016	%	2016	%
Finland	67 997	87	52 753	85	58 993	85
North America	5 786	7	4 272	7	4 077	6
China	2 942	4	3 970	6	5 357	8
Russia	962	1	822	1	990	1
South America	160	0	173	0	189	0
Other	158	0	130	0	161	0
TOTAL	78 005	100	62 120	100	69 767	100
Capital expenditure of the wood products	30.9.		30.9.		31.12.
technology segment by geographical location	2017	%	2016	%	2016	%
Finland	3 062	54	2 242	92	2 925	91
North America	2 570	46	156	6	181	6
China	-	-	20	1	104	3
Russia	9	0	-	-	9	0
South America	-	-	1	0	1	0
Other	-	-	4	0	4	0
TOTAL	5 641	100	2 424	100	3 224	100
Exchange rates used in consolidation of subsidiaries
			1.1.–30.9.	1.1.–30.9.	1.1.–31.12.
Income statement, euros			2017	2016	2016
CNY (Chinese juan)			7,5723	7,3562	7,3594
RUB (Russian rouble)			64,8983	76,3054	74,2224
CAD (Canadian dollar)			1,4538	1,4754	1,4664
USD (US dollar)			1,1130	1,1158	1,1066
SGD (Singapore dollar)			1,5461	1,5301	1,5278
CLP (Chilean peso)			727,7853	759,2613	748,7723
			30.9.	30.9.	31.12.
Balance sheet, euros			2017	2016	2016
CNY (Chinese juan)			7,8257	7,4819	7,2983
RUB (Russian rouble)			68,2519	70,5140	64,3000
CAD (Canadian dollar)			1,4687	1,4690	1,4188
USD (US dollar)			1,1806	1,1161	1,0541
SGD (Singapore dollar)			1,6031	1,5235	1,5234
CLP (Chilean peso)			745,3324	748,9861	702,2261
FINANCIAL DEVELOPMENT			30.9.	30.9.	31.12.
			2017	2016	2016
Change in net sales, %			41,3	-12,2	-11,1
Exported portion, % of net sales			83,6	83,6	78,3
Operating profit, % of net sales			7,6	5,5	7,6
Return on investment (ROI), %			30,1	17,9	25,3
Return on equity (ROE), %			24,3	13,6	20,9
Interest-bearing net liabilities, EUR million			-20,1	-15,3	-20,6
Gearing, %			-55,7	-50,3	-60,3
Equity ratio, %			60,7	62,2	60,4
Gross capital expenditure, EUR million			5,6	2,4	3,2
% of net sales			5,2	3,1	2,8
Research and development costs, EUR million			2,4	2,0	2,9
% of net sales			2,2	2,6	2,5
Order book, EUR million			89	102	106
Order intake, EUR million			94	120	162
SHARE-RELATED DATA			30.9.	30.9.	31.12.
			2017	2016	2016
Earnings per share, (EPS), undiluted, EUR			1,52	0,74	1,60
Earnings per share, (EPS), diluted, EUR			1,51	0,73	1,59
Equity to share, EUR			8,54	7,27	8,13
Dividend per series A share, EUR			-	-	1,00
Dividend per series K share, EUR			-	-	1,00
Dividend per profit, %			-	-	62,3
Effective dividend return, %			-	-	6,0
Price/earnings ratio (P/E ratio)			-	-	10,41
Development in share price (series A shares)
Lowest share price for the period, EUR			16,84	12,06	12,06
Highest share price for the period, EUR			25,98	16,50	17,98
Average share price for the period, EUR			21,51	13,97	14,50
Share price at the end of the period, EUR			22,71	16,29	16,70
Market value of capital stock
- Series K shares, EUR million*			22,5	16,1	16,6
- Series A shares, EUR million			73,6	52,0	53,7
Total, EUR million			96,1	68,2	70,2
*Series K shares valued at the value of series A shares.
Trading of the company's shares (series A shares)
Trading of shares, pcs			547 938	812 082	987 608
Trading of shares, EUR million			11,8	11,3	14,3
Number of shares
- Series K shares, ordinary shares (20 votes/share)			991 161	991 161	991 161
- Series A shares (1 vote/share)			3 239 174	3 194 428	3 215 301
Total			4 230 335	4 185 589	4 206 462
Number of shares, weighted average, 1 000 pcs			4 220	4 160	4 167
Number of shares, diluted, 1 000 pcs			4 249	4 194	4 210
Number of shareholders			4 419	3 466	3 625
DEVELOPMENT OF QUARTERLY RESULTS
	Q 4	Q 1	Q 2	Q 3	Rolling	Rolling
	2016	2017	2017	2017	1.10.2016	1.10.2015
					–	–
(EUR 1 000)					30.9.2017	30.9.2016
NET SALES	36 043	36 595	35 209	37 152	144 999	116 609
Change in inventories of finished goods
and work in progress	-894	489	748	-224	119	-211
Other operating income	24	28	91	167	310	1 112
Materials and services	-17 041	-20 747	-19 405	-19 386	-76 579	-59 124
Employee benefits expense	-9 882	-9 756	-10 347	-9 495	-39 480	-35 660
Depreciation and amortization	-646	-618	-660	-654	-2 577	-1 990
Impairment	-	-	-	-	-	-1 370
Other operating expenses	-3 313	-3 311	-4 223	-3 381	-14 227	-12 317
Total operating expenses	-30 881	-34 432	-34 634	-32 916	-132 863	-110 463
OPERATING PROFIT	4 292	2 681	1 413	4 179	12 565	7 047
% of net sales	11,9	7,3	4,0	11,2	8,7	6,0
Financial income	152	318	17	19	506	99
Financial expenses	-139	-105	-145	-121	-510	-394
Financial expenses, net	13	212	-127	-102	-5	-294
PROFIT BEFORE TAX	4 304	2 894	1 286	4 077	12 560	6 753
% of net sales	11,9	7,9	3,7	11,0	8,7	5,8
Income taxes	-689	-790	-396	-660	-2 535	-1 305
PROFIT FOR THE PERIOD	3 615	2 104	890	3 417	10 025	5 448
% of net sales	10,0	5,7	2,5	9,2	6,9	4,7
Attributable to
Equity holders of the Parent company	3 615	2 104	890	3 417	10 025	5 448
Earnings per share, EUR
Undiluted earnings per share	0,86	0,50	0,21	0,81	2,38	1,31
Diluted earnings per share	0,85	0,50	0,21	0,80	2,37	1,31
Shares, 1 000 pcs
Adjusted average number of shares	4 191	4 205	4 225	4 229	4 220	4 160
Adjusted average number of shares,
diluted	4 235	4 249	4 242	4 259	4 249	4 194
FINANCIAL DEVELOPMENT QUARTERLY	Q 4	Q 1	Q 2	Q 3	Rolling	Rolling
	2016	2017	2017	2017	1.10.2016	1.10.2015
					–	–
					30.9.2017	30.9.2016
Order intake during the period, EUR million	42	24	29	42	136	137
Order book at the end of the period, EUR million	106	93	86	89	89	102
20 LARGEST SHAREHOLDERS AT September 30, 2017			Total number	% of total	Total number	% of voting
By number of shares	Number of series K shares	Number of series A shares	of shares	shares	of votes	rights
1. Sundholm Göran	-	591 250	591 250	14,0	591 250	2,6
2. Mandatum Life Unit-Linked	-	131 196	131 196	3,1	131 196	0,6
3. Laakkonen Mikko Kalervo	-	119 919	119 919	2,8	119 919	0,5
4. Suominen Pekka	48 000	62 429	110 429	2,6	1 022 429	4,4
5. Siivonen Osku Pekka	50 640	53 539	104 179	2,5	1 066 339	4,6
6. Kirmo Kaisa Marketta	55 680	48 341	104 021	2,5	1 161 941	5,0
7. Suominen Tiina Sini-Maria	48 000	53 356	101 356	2,4	1 013 356	4,4
8. Keskiaho Kaija Leena	33 600	51 116	84 716	2,0	723 116	3,1
9. Mustakallio Mika Tapani	56 980	26 270	83 250	2,0	1 165 870	5,1
10. Särkijärvi Anna Riitta	60 480	22 009	82 489	1,9	1 231 609	5,3
11. Mustakallio Kari Pauli	60 480	500	60 980	1,4	1 210 100	5,2
12. Mustakallio Marja Helena	46 740	12 547	59 287	1,4	947 347	4,1
13. Särkijärvi Timo Juha	12 000	43 256	55 256	1,3	283 256	1,2
14. Särkijärvi-Martinez Anu Riitta	12 000	43 256	55 256	1,3	283 256	1,2
15. Suominen Jukka Matias	24 960	27 964	52 924	1,3	527 164	2,3
16. Keskinäinen työeläkevakuutusyhtiö Varma	-	51 950	51 950	1,2	51 950	0,2
17. Relander Pär-Gustaf	-	51 000	51 000	1,2	51 000	0,2
18. Suominen Jussi	48 000	-	48 000	1,1	960 000	4,2
19. Mustakallio Ulla Sinikka	47 740	-	47 740	1,1	954 800	4,1
20. Keskiaho Ilta Marjaana	24 780	19 094	43 874	1,0	514 694	2,2
Total	630 080	1 408 992	2 039 072	48,2	14 010 592	60,8
			Total number	% of total	Total number	% of voting
By number of votes	Number of series K shares	Number of series A shares	of shares	shares	of votes	rights
1. Särkijärvi Anna Riitta	60 480	22 009	82 489	1,9	1 231 609	5,3
2. Mustakallio Kari Pauli	60 480	500	60 980	1,4	1 210 100	5,2
3. Mustakallio Mika Tapani	56 980	26 270	83 250	2,0	1 165 870	5,1
4. Kirmo Kaisa Marketta	55 680	48 341	104 021	2,5	1 161 941	5,0
5. Siivonen Osku Pekka	50 640	53 539	104 179	2,5	1 066 339	4,6
6. Suominen Pekka	48 000	62 429	110 429	2,6	1 022 429	4,4
7. Suominen Tiina Sini-Maria	48 000	53 356	101 356	2,4	1 013 356	4,4
8. Suominen Jussi	48 000	-	48 000	1,1	960 000	4,2
8. Mustakallio Ulla Sinikka	47 740	-	47 740	1,1	954 800	4,1
10. Mustakallio Marja Helena	46 740	12 547	59 287	1,4	947 347	4,1
11. Mustakallio Risto Knut kuolinpesä	42 240	-	42 240	1,0	844 800	3,7
12. Keskiaho Kaija Leena	33 600	51 116	84 716	2,0	723 116	3,1
13. Keskiaho Vesa Heikki	29 680	-	29 680	0,7	593 600	2,6
14. Sundholm Göran	-	591 250	591 250	14,0	591 250	2,6
15. Keskiaho Juha-Pekka	27 880	5 816	33 696	0,8	563 416	2,4
16. Kirmo Lasse	27 645	2 967	30 612	0,7	555 867	2,4
17. Suominen Jukka Matias	24 960	27 964	52 924	1,3	527 164	2,3
18. Keskiaho Ilta Marjaana	24 780	19 094	43 874	1,0	514 694	2,2
19. Kultanen Leea Annikka	21 595	8 031	29 626	0,7	439 931	1,9
20. Molander Sole	20 160	-	20 160	0,5	403 200	1,7
Total	775 280	985 229	1 760 509	41,6	16 490 829	71,5
MANAGEMENT'S SHAREHOLDING AND NOMINEE-REGISTERED SHARES
	Number of series K shares	Number of series A shares	Total number of shares	% of total shares	Total number of votes	% of total voting rights
Management's holding at September 30, 2017
The Board of Directors, The Group's President and CEO and Executive Board*	122 970	123 603	246 573	5,8	2 583 003	11,2
Total	122 970	123 603	246 573	5,8	2 583 003	11,2
*The figures include the holdings of their own, minor children and control entities.
Nominee-registered shares at September 30, 2017	-	116 793	116 793	2,8	116 793	0,5

RAUTE CORPORATION
Board of Directors

BRIEFING ON OCTOBER 31, 2017 AT 2 P.M.:
A briefing will be organized for analysts, investors and the media on October 31, 2017 at 2 p.m. at Scandic Simonkenttä Hotel, Espa cabinet, Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Ms. Arja Hakala, CFO.

FINANCIAL RELEASES IN 2018:
Raute Corporation will publish a release on its financial statements for 2017 on Thursday, February 15, 2018.
   
Raute’s half-year report and two interim reports will be published as follows:
- interim report January–March on Friday, April 27, 2018
- half-year report January–June on Tuesday, July 31, 2018
- interim report January–September on Wednesday, October 31, 2018.

Raute Corporation’s Annual General Meeting is scheduled to be held in Lahti on Thursday, March 22, 2018.

FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3500, mobile phone +358 400 814 148
Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile phone +358 400 710 387

DISTRIBUTION:
Nasdaq Helsinki Ltd, main media, www.raute.com

RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in the Nastola area of Lahti, Finland. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. Raute’s net sales in 2016 were EUR 113.1 million. The Group’s headcount at the end of 2016 was 643. More information about the company can be found at www.raute.com.

Attachments:

Raute Corporation Interim report January 1 - September 30 2017.pdf