2007-05-15 11:00:00 CEST
2007-05-15 11:00:00 CEST
REGULATED INFORMATION
Ruukki Group Oyj - Quarterly report
RUUKKI GROUP INTERIM REPORT 1 JANUARY - 31 MARCH 2007
This Interim Report complies with the recognition and measurement policies of
the IFRS. The applied accounting policies are equal to the policies applied to
the financial statements for financial year 2006. The Interim Report figures are
unaudited.
RUUKKI GROUP INTERIM REPORT 1 JANUARY - 31 MARCH 2007
SUMMARY
The Ruukki Group's net sales in the first quarter of 2007 totalled EUR 36.8
million (1-3/2006: EUR 27.1 million). Comparable net sales were flat compared
with the first quarter of 2006.
The main business segments accounted for the Group's net sales as follows: house
building 38% (52%), sawmill business 34% (24%), furniture business 13% (10%),
care services 10% (7%). Approximately 30% (22%) of net sales originated from
exports.
The consolidated group EBITDA for the first quarter of 2007 totalled EUR 3.5
million (EUR 3.4 million). The operating profit (EBIT) for the review period was
EUR 2.1 million (EUR 2.8 million), or 5.8% (10.5%) of net sales. The comparable
operating profit (EBIT) was EUR 2.6 million. The major changes affecting the
2007 EBIT were EUR 0.9 million (EUR 0.0 million) expenses related to the planned
Russian operations, and moreover, the drop in house building segment's EBIT
margin due to significant input cost increases. On the other hand, the relative
profitability of the sawmill segment was better than during previous year.
The Group's order book at the end of the review period was EUR 52.9 (44.5)
million.
The most significant corporate restructuring carried out in the review period
involved the increase of Ruukki Group's holding in Incap Furniture, the
furniture manufacturer, from about 47% to about 70%, and the increase of Ruukki
Group's holding in Oplax Ltd, a manufacturer of packaging pallets, from 32% to
100%. Incap Furniture group and its parent company Hirviset Group Ltd together
form Ruukki Group's furniture business segment. Oplax Ltd has been part of the
sawmill business segment from the beginning of March 2007.
With the current business structure the Group's revenue in 2007 is expected to
amount to almost EUR 200 million. At the same time, the Group's euro-denominated
operating profit for 2007 is expected to exceed that of 2006, without taking
into account the expenses arising from the Kostroma projects.
In accordance with the signed agreements, the Ruukki Group is preparing sawmill
and pulp mill (BCTMP) investments in the Kostroma region of Russia. The planned
projects are substantial in relation to the company's size, and their completion
will change the Group's structure and affect the overall risk level.
GROUP KEY FIGURES
--------------------------------------------------------------------------------
| | Q1/2007 | Q1/2006 | 2006 |
--------------------------------------------------------------------------------
| Revenue, | 36.8 | 27.1 | 125.5 |
--------------------------------------------------------------------------------
| Operating profit / loss | 2.1 | 2.8 | 13.0 |
--------------------------------------------------------------------------------
| % of revenue | 5.8 % | 10.5 % | 10.4 % |
--------------------------------------------------------------------------------
| Profit / loss before taxes, | 2.0 | 2.6 | 12.2 |
--------------------------------------------------------------------------------
| % of revenue | 5.4 % | 9.6 % | 9.7 % |
--------------------------------------------------------------------------------
| Return on equity, % | 4.9 % | 25.5 % | 19.1 % |
--------------------------------------------------------------------------------
| Return on investment, % | 11.1 % | 25.4 % | 17.7 % |
--------------------------------------------------------------------------------
| Equity ratio, % | 47.2 % | 36.5 % | 60.1 % |
--------------------------------------------------------------------------------
| Earnings per share, basic, EUR | 0.00 | 0.01 | 0.07 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, EUR | 0.00 | 0.01 | 0.06 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 0.43 | 0.28 | 0.42 |
--------------------------------------------------------------------------------
| Average number of shares, (1,000) | 137, 871 | 93,301 | 118,052 |
--------------------------------------------------------------------------------
| Average number of shares, diluted, | 142,336 | 116,271 | 135,996 |
| (1,000) | | | |
--------------------------------------------------------------------------------
| Number of shares at the end of the | 139,616 | 93,301 | 135,964 |
| period (1,000) | | | |
--------------------------------------------------------------------------------
Financial ratios presented above or below have been calculated according to the
formulas published in conjunction with the Group annual report for the financial
year 2006.
At the end of the above review periods, neither Ruukki Group Plc nor any of its
subsidiaries held any shares in Ruukki Group Plc.
On 31 March 2007, the number of registered company shares totalled 139,615,737.
On the above date, the maximum dilution effect of the company's I/2005 option
program is 2,700,000 shares, and the maximum dilution effect of the outstanding
part of the convertible subordinated loan issued in 2004 is 9,000 shares. In
addition, the company has, pursuant to a decision of the Annual General Meeting
on 20 April 2007, issued through a free directed share issue a total of 598,285
new shares, which were entered in the Trade Register in early May.
KEY EVENTS DURING THE REVIEW PERIOD
In the first quarter of 2007, the Ruukki Group's social services business area
inaugurated four new units that accommodate a total of 80 customers. This
resulted in an increase in the relative importance of elderly care activities.
Companies in the business area have achieved new customer accommodation
agreements in bidding competitions on service procurement arranged by
municipalities. The effect of these new units on the business area's annual net
sales is approximately EUR 1.5 million.
On 9 February 2007, the Kostroma Oblast administration registered two separate
investment agreements made by Ruukki Group, one of which concerns a sawmill
plant with a capacity of 300,000 m3 and the other a BCTMP plant with a capacity
of 300,000-500,000 tons. The investment agreements relating to the registration
have been approved and Ruukki Group's investments have been included in the
Kostroma region's investment project registry. In this connection, the regional
administration of Kostroma made commitments to grant temporary tax exemptions
within their authority, indicate the quantities of timber available for felling
as raw material for the production plants and facilitate the granting and
acquisition of the necessary permits and industrial sites. Approximately EUR 0.9
million in expenses arising from examinations and preparations relating to the
investments planned in Russia were recognised in the consolidated income
statement for the review period 1 January - 31 March 2007. The amount of
corresponding expenses in the comparison period 1 January - 31 March 2006 was
very small.
In February 2007, Ruukki Group Plc carried out an ownership arrangement
concerning Incap Furniture Ltd, the furniture manufacturer. Hirviset Group Ltd,
a fully-owned subsidiary of Ruukki Group Plc, subscribed for Incap Furniture Ltd
shares in a directed share issue. The share subscription was paid for by setting
off approximately EUR 0.3 million in the subordinated loan receivables of
Hirviset Group Ltd from Incap Furniture Ltd. Since the share subscription,
Hirviset Group Ltd has held about 59.0% of Incap Furniture's stock. As Ruukki
Group Plc additionally holds around 11.3% of Incap Furniture's stock after the
issue, the Ruukki Group's combined holding of Incap Furniture is about 70.3%.
Due to the effect of the joint financing package of shareholders and providers
of finance, the financial situation of Incap Furniture was strengthened in this
conjunction by about EUR 3 million. Through the options issued by Incap
Furniture Ltd, Ruukki Group Plc's holding may decrease to about 65 per cent, if
all the options are exercised. A total of EUR 0.9 million of Ruukki Group's cash
assets was tied up in this arrangement.
Acquiring a majority holding in furniture manufacture is a continuation of
Ruukki Group's strategy to grow and invest in wood-based product areas and in
Russia. Due to the demanding situation of Incap Furniture, the clear formation
of owner management was preferred over the previous ownership structure, which
is why Ruukki Group decided to execute the arrangement for its part. Incap
Furniture Ltd is engaged in the manufacture of solid wood furniture and
wood-based combination products. A majority of its production is exported.
Through a transaction carried out in March 2007, Ruukki Group Plc acquired the
rest (approximately 68%) of Oplax Ltd's stock, and thus now holds the entire
stock of Oplax Ltd. Oplax Ltd is engaged in the production of wooden packaging
products and packaging pallets and the provision of logistics services in Oulu,
Tornio and Kemi. The company's business activities will continue along the same
lines as before in all units, and for the time being Aulis Viren will continue
as the company's managing director. Oplax Ltd annually produces over one million
packaging pallets, using about 30,000 m3 of timber. Oplax Ltd has been
consolidated in the Ruukki Group's sawmill business area as a Group company
since March 2007.
KEY EVENTS AFTER THE REVIEW PERIOD
The Annual General Meeting convening in April decided, among other things, to
distribute a dividend of EUR 0.03 per share, to partially amend the company's
Articles of Association, to arrange a directed bonus issue and to change the
terms of the option program I/2005 in accordance with the new Companies Act. It
was decided to re-elect the previous Board in its entirety and the auditors.
In addition, the Annual General Meeting decided to authorise the Board of
Directors to decide on share issue, as well as on granting option rights and
other special rights that entitle to shares. At the maximum 25,000,000 new or
existing shares, equalling approximately slightly less than 18 per cent of the
total number of shares, may be issued by virtue of this authorization. This
authorization is valid up until 20 April 2009.
In late April, changes were announced in the management of the furniture
business segment.
DEVELOPMENT BY BUSINESS AREA
HOUSE BUILDING
The house building business area has delivered ready-to-move-in houses to
customers as follows:
--------------------------------------------------------------------------------
| 1-3/2007 | 1-3/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
| 113 | 127 | 458 |
--------------------------------------------------------------------------------
The house building business area specialises in the design and manufacture of
ready-to-move-in detached wooden houses in the whole of Finland. The business
area's customers are Finnish private persons. The most important competitors in
prefabricated houses are Älvsbyhus and Finndomo.
The house building business area's key figures for the review period were as
follows:
--------------------------------------------------------------------------------
| House building | | | |
--------------------------------------------------------------------------------
| | | 1-3/2007 | 1-3/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
| Revenue | | 14.0 | 14.0 | 53.7 |
--------------------------------------------------------------------------------
| EBIT | | 2.6 | 3.5 | 13.4 |
--------------------------------------------------------------------------------
| EBIT-% | | 18.3 % | 24.6 % | 24.9 % |
--------------------------------------------------------------------------------
The net sales from ready-to-move-in houses delivered by the business area are
entered as income upon delivery to the customer, for which reason sites in
progress have no effect on the Group's net sales or profit. The steep and rapid
climb of the costs of raw materials and supplies in the review period 1 January
- 31 March 2007 weakened relative profitability. During the first quarter of
2007 the number of houses finalised and delivered to the customers dropped by
some 11%, but revenue remained flat since the average sales price per house
increased. Deliveries in house building business are generally very seasonal so
that more deliveries are made during first and fourth quarters than in the
summer time. However, it is expected that in 2007 the timing of deliveries
differs slightly from the general seasonal variation.
The business area's order book excluding VAT stood at approximately EUR 28.7
million at the end of the review period. The order book contains no significant
risks. At the end of the review period, the house building business area's
personnel totalled 114 people.
SAWMILL BUSINESS
The sawmill business segment specialises in the efficient processing of softwood
logs from Northern Finland into various timber products for both domestic and
export markets. The house building industry forms the business area's main
customer group in both Finland and elsewhere, because the Group's products are
extremely well suited to house building thanks to their strength properties.
Included in the business area through an acquisition as from March 2007 is Oplax
Ltd, a fully-owned manufacturer of packaging pallets for the Finnish industry.
The sawmill business area's key figures for the review period were as follows:
--------------------------------------------------------------------------------
| Sawmill business | | | |
--------------------------------------------------------------------------------
| | | 1-3/2007 | 1-3/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
| Revenue | | 12.6 | 6.3 | 27.8 |
--------------------------------------------------------------------------------
| EBIT | | 1.8 | 0.4 | 1.4 |
--------------------------------------------------------------------------------
| EBIT-% | | 14.2 % | 6.0 % | 5.0 % |
--------------------------------------------------------------------------------
In the sawmill business, both the market prices of end products and the stumpage
prices of timber and the raw material transportation costs have increased, as a
net effect of which the business area's profit has increased in the short term.
The operating profit includes a non-recurring gain of EUR 0.4 million. The
increases in the customs duties for round timber announced by Russia and the
mild winter have hampered the availability of Finnish raw material and led to a
steep and rapid price increases. The Ruukki Group subsidiaries of the sawmill
business segment do not import timber from Russia to a significant extents;
however, the indirect effects of the development within the Finnish sawmill
industry might also affect the raw material purchases of Ruukki Group's sawmill
segment.
At the end of the review period, the segment's order book excluding VAT stood at
approximately EUR 15.4 million. The sawmill business area employed altogether
112 people at the review period's end. In addition, at the end of the first
quarter other group companies providing services to the sawmill business
employed two people in Finland as well as eight people in Russia investigating
and preparing for the sawmill and BCTMP pulp mill investments in Kostroma
region.
The softwood sawmill with a capacity of 300,000 m2 planned for the Kostroma
region in Russia is still in the planning stage, and the only expenses arising
from it in the review period were related to some preparatory activities.
FURNITURE BUSINESS
The furniture business segment (Incap Furniture) manufactures wooden,
ready-to-assemble furniture at four production plants in Finland. Additionally,
the business area has signed a letter of intent with Stora Enso Timber on
establishing a solid wood panel plant at Impilahti in Russian Karelia.
--------------------------------------------------------------------------------
| Furniture business | | | |
--------------------------------------------------------------------------------
| | | 1-3/2007 | 1-3/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
| Revenue | | 5.0 | 2.9 | 25.7 |
--------------------------------------------------------------------------------
| EBIT | | -1.2 | -0.6 | -5.3 |
--------------------------------------------------------------------------------
| EBIT-% | | -24.4 % | -21.1 % | -20.8 % |
--------------------------------------------------------------------------------
In the table above the EBIT includes furniture business group companies' results
both as minority-owned associates as well as majority-controlled subsidiaries.
However, the revenue is recognised only for those periods when all or part of
those companies have been subsidiaries of Ruukki Group. Therefore the EBIT
margin is indicative in nature. In January and February of 2007 the furniture
business has been fully minority-owned, but from March 2007 onwards treated as a
subsidiary. In February and March of financial year 2006 Incap Furniture Ltd was
a minority-owned associated company, but Hirviset Ltd was a subsidiary for
1-4/2006. For the period 5-9/2006 all furniture business companies were
considered being subsidiaries of Ruukki Group based on potential control.
Subsequently for 10-12/2006 Incap Furniture group was categorised as associated
company.
The business environment of the furniture business in general and also
concerning Incap Furniture has continued to be very challenging, and the result
remains a loss. Restructuring and efficiency improvement measures have been
actively continued. On 31 March 2007, the segment employed a total of 311
people. Moreover, the order book stood at some EUR 7.5 million at the end of
March 2007. Incap Furniture's board of directors has changed during spring 2007,
and moreover, Incap Furniture will have a new managing director starting as of
15 May 2007.
CARE SERVICES
The care services business area provides high-quality care and rehabilitation
services for municipalities, cities, communities and businesses. The business
area applies the best approved methods, experiences and service production
processes and supports their development.
The key figures for the care services in the review period were as follows:
--------------------------------------------------------------------------------
| Care services | | | |
--------------------------------------------------------------------------------
| | | 1-3/2007 | 1-3/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
| Revenue | | 3.9 | 1.9 | 9.8 |
--------------------------------------------------------------------------------
| EBIT | | 0.2 | 0.3 | 0.6 |
--------------------------------------------------------------------------------
| EBIT-% | | 4.9 % | 14.8 % | 6.2 % |
--------------------------------------------------------------------------------
The business area's operations remained stable in the review period. The
operations of the new units acquired and started up during the final quarter of
the preceding financial year have substantially increased the business area's
volumes. At the end of the review period, the business area employed 280
persons. It is highly probable that a merger can be carried out at the end of
the second quarter, in which a substantial part of the sub-group's companies
will be merged with Mikeva Ltd. The business area has service units in 19
locations, and the combined number of these units' customers was about 470 at
the end of the first quarter.
The comparable increase in the net sales of the care services business area was
approximately 38%, when eliminating the effect of the acquisition of the
Terveyspalvelut Mendis Ltd during the 2006 financial year. Correspondingly, the
comparable change in operating profit is about -48%.
OTHER OPERATIONS
The planned new sawmill and pulp business operations in Kostroma, Russia have
affected the review period's figures mainly through the significant total
expenses of EUR 0.9 million (equal expenses EUR 0.0 million for the first
quarter of 2006, and totalling EUR 0.5 million for the full financial year
2006). At the end of the review period, the Russian subsidiaries' fixed assets
totalled approximately EUR 0.1 million, and the number of employees was eight.
The volume and profitability of the Ruukki Group's metal industry business
operations have changed very little from the comparison period of last year: in
the period 1 January - 31 March 2007, the metal industry sub-group's net sales
were EUR 1.8 million and operating profit EUR 0.0 million. Starting from the
beginning of 2007, the metal industry business area is not reported as a
separate segment.
Ruukki Group Plc also has, both directly and through its subsidiaries, minority
holdings in a number of Finnish businesses. Associates have been consolidated in
the consolidated financial statements by applying the equity method. The
combined profit effect of associates, however after excluding the effect of
Incap Furniture Ltd that is part of the furniture business segment, was EUR 0.1
million for the first quarter of 2007. Of that total Oplax Ltd accounted for the
most part.
OUTLOOK FOR THE FUTURE
The company's Board has decided to focus the Group's business more intensively
on wood-based operations so that the future industrial operations and
investments will be focused on Russia in particular and on a substantially
larger scale than before. Considering the Group's size, the planned projects,
particularly relating to the planned pulp business, are extremely large and
entail a number of different kinds of risks.
With the current business structure the Group's revenue in 2007 is expected to
amount to almost EUR 200 million. At the same time, the Group's euro-denominated
operating profit for 2007 is expected to exceed that of 2006, without taking
into account the expenses arising from the Kostroma projects.
Future outlook by business area:
House building:
- The sector is typically cyclical and has grown heavily in recent years
- Growth is expected to continue in house building in the coming years,
particularly in the production of prefabricated houses in which the company has
a substantial market position
- Consolidation may take place in the sector, and the competitive situation may
change especially in the production of prefabricated houses
- The situation with zoning and plots and any changes in these as well as
changes in market interest rates will affect future growth potential in the
sector.
- Costs of production-related raw materials and goods and labour expenses have
risen rapidly in recent times, and the situation is not expected to change
substantially over the short term, which may have a negative impact on
profitability
- Rises in market interest rates can cause the general level of house building
activity to fall, which would have negative effect for the short-term and
long-term prospects of the business
Sawmill business
- The sawmill sector is typically cyclical, and changes in the business cycle in
the future will have substantial effects on operations
- The recent rise in stumpage prices for timber is expected to slow down or
level off, but the proportion of raw material imported to Finland from Russia
will probably decrease generally in the sector, which may have an effect on raw
material availability and price in the future for Finnish sawmills
- The development of sawnwood market sales prices is expected to continue to be
positive in the near future, and the export market demand is expected to be good
- The production capacity of the sector's different areas and its geographical
distribution will change materially, and the focus on new investments will
probably be on Finland's neighbouring areas
- Different kinds of consolidation and restructuring may take place in the
sector, which may affect the profitability of the business
Furniture business
- The year 2007 is expected to be extremely challenging with respect to the
operating environment due to increased raw material costs
- The rationalisation measures carried out and the coming restructuring will
have a substantial effect during 2007, but profitability will remain weak at
least during 2007
Care services
- The care services business area is expected to grow both organically and
through acquisitions
- The bidding competitions and service outsourcing from the public sector to
private operators offer good growth opportunities for the field, particularly in
elderly care and mental health services; additionally, demographic development
will affect the demand for elderly care services in the coming years
- Availability of competent workforce is a factor that slows down growth in the
field, particularly in certain areas
BUSINESS RISKS AND CHANGES IN THEM DURING AND AFTER THE REVIEW PERIOD
No substantial changes have taken place in the competitive situation after the
balance sheet date. The announced upcoming changes to customs duties for timber
from Russia may cause substantial changes with respect to the operators in, and
structures of, the wood processing sector in Finland both in the short and long
term, which is exemplified by possible reductions in pulp production, at least
temporarily. These changes may have a substantial, though partly just regional,
effect on the Group's risks related to house building, the sawmill business and
the furniture business.
The price and availability risks related to raw materials still exist, and their
future development is difficult to forecast. Alongside the price and
availability problems relating to timber, there have also been indications of
quality problems on the Finnish market. If timber prices continue to increase,
it will have a negative effect on the profitability of group's house building
and furniture businesses. It may be more difficult to secure competent personnel
in the future, a risk that can be seen in the care services sector, for example,
in given geographical areas.
The recent rapid strengthening of the euro in relation to a number of leading
international currencies such as the U.S. dollar and the Japanese yen
deteriorates the Group's ability to compete with prices on export markets,
unless this change trend in currency exchange rates is a permanent one.
The interest rate risks relating to the Group's loan financing have been
somewhat increased and to some extent realised due to the rise of market rates
and also because the Group's loan capital has increased after the review period
particularly on account of financing a corporate acquisition related to the
Group's sawmill business area. Moreover, the consolidation of furniture business
as a subsidiary at the end of February 2007 has significantly increased
interest-bearing debt at the group balance sheet.
There are permit risks and other process administration risks relating to the
advance of the investment projects planned for Kostroma, Russia, which must be
borne before the projects can be successfully completed. With respect to these
risks, Ruukki Group's Russian projects have progressed in the planning process
closer to implementation, as a result of which the weight of the various risks
related to the Russian operations has increased. Furthermore, the organisation
and gathering of needed know-how and employees set additional new demands for
the group operations, if and when the planned operations start. Additionally,
the financing solutions related to the whole project will increase the financial
risk substantially.
CHANGES IN PLEDGES AND CONTINGENT LIABILITIES DURING AND AFTER THE REVIEW PERIOD
After the review period, Ruukki Group Plc has paid in cash a further EUR 7.1
million of additional purchase price liabilities. Additionally, a total of EUR
1.1 million has been paid in the company's shares. The mergers and acquisitions
made during the review period have no additional purchase price obligations
relating to them.
During the review period, Group companies paid a total of EUR 0.7 million in
loan repayment instalments, which has correspondingly reduced guarantee
liabilities.
To finance a share transaction carried out during the review period, Ruukki
Group Plc has drawn a EUR 4.5 million long-term loan from a financial
institution. The loan has been covered by pledging the purchased subsidiary
shares, and there are covenant terms relating to the loan both at the level of
the Group and the acquired company.
A change in the financing and ownership structure of the furniture business area
has increased Ruukki Group Plc's direct liabilities, but at the same time
reduced guarantee liabilities relating to the business area, which means that
the net amount of financial liabilities has not changed materially. However,
Incap Furniture Ltd had the following liabilities, as of 31 March 2007, that
have been consolidated into Ruukki Group: debt from financial institutions
totalling EUR 18.4 million, subordinated loan (excluding Ruukki Group companies)
of EUR 1.8 million as well as leasing liabilities of EUR 2.9 million. Various
pledges have been given by Incap Furniture as collateral for these debt
arrangements.
At the end of March 2007, Ruukki Group Plc and its subsidiaries had given out
the following pledges as collateral for external financing: EUR 14.8 million
corporate mortgages (31.12.2006: EUR 5.7 million) and EUR 4.1 million
(31.12.2006: 2.2) real estate mortgages. Ruukki Plc has given a total of EUR 4.8
million (31.12.2006: 6.6) pledges to give additional collateral for the
financing of its subsidiaries.
RELATED PARTY TRANSACTIONS
Salaries and other remuneration paid to the group and subsidiaries board and top
management members totalled EUR 0,1 million in the first quarter of 2007. The
group parent company has a receivable of EUR 43 thousand from a member of parent
company executive director or an entity controlled by him.
A related party to the parent company has converted his subordinated loan unit
so that a total of 1,561,000 new shares have been issued to him due to this
conversion during Q1/2007. During the three month period three thousand euros
interest expense has been accrued thereby.
Ruukki Group has paid in cash or in new shares earn-out payments, related to
previous acquisitions, totalling EUR 8.2 million in the first half of 2007.
LITIGATIONS
Ruukki Group Plc's appeals to the Market Court and the Helsinki Court of Appeal
against Rautaruukki, another listed company, and related to the use of the name
"Ruukki" are still open and pending.
CHANGES IN SHARE CAPITAL
--------------------------------------------------------------------------------
| Changes in share | Increase in | Number of shares | Share capital, |
| capital | euros | after | in euros |
| | | registration | after |
| | | | registration |
--------------------------------------------------------------------------------
| Share capital | | 135 963 737 | 23 017 809,60 |
| 31.12.2006 | | | |
--------------------------------------------------------------------------------
| Conversion of | 620 840,00 | 139 615 737 | 23 638 649,60 |
| convertible bonds | | | |
| (13 Feb 2007) | | | |
--------------------------------------------------------------------------------
| Free directed issue | | 140 214 022 | 23 638 649,60 |
| (3 May 2007) | | | |
--------------------------------------------------------------------------------
SHAREHOLDERS
On 11 May 2007, the company had a total of 3,552 shareholders, of which 12 were
nominee-registered. The number of shares in issue on 11 May 2007 was
140,214,022.
Largest shareholders, 11 May 2007:
--------------------------------------------------------------------------------
| | Shareholder | Shares | % |
--------------------------------------------------------------------------------
| 1 | Herttakakkonen Ltd | 35 367 681 | 25.2 |
--------------------------------------------------------------------------------
| 2 | Nordea Pankki Suomi Plc | 26 726 963 | 19.1 |
--------------------------------------------------------------------------------
| 3 | Nordea Pankki Suomi Plc | 14 788 889 | 10.6 |
| | nominee-registered | | |
--------------------------------------------------------------------------------
| 4 | Evli Pankki Plc | 10 300 857 | 7.4 |
--------------------------------------------------------------------------------
| 5 | Kankaala Markku | 8 949 259 | 6.4 |
--------------------------------------------------------------------------------
| 6 | Svenska Handelsbanken Ltd | 6 116 228 | 4.4 |
--------------------------------------------------------------------------------
| 7 | Hukkanen Esa | 5 007 500 | 3.6 |
--------------------------------------------------------------------------------
| 8 | Procomex S.A. | 4 575 010 | 3.3 |
--------------------------------------------------------------------------------
| 9 | Skandinaviska Enskilda Banken | 3 084 250 | 2.2 |
--------------------------------------------------------------------------------
| 10 | Rausanne Ltd | 1 805 892 | 1.3 |
--------------------------------------------------------------------------------
| | Total | 116 722 529 | 83.2 |
--------------------------------------------------------------------------------
| | Other Shareholders | 23 491 493 | 16.8 |
--------------------------------------------------------------------------------
| | Total shares registered | 140 214 022 | 100.0 |
--------------------------------------------------------------------------------
CHANGES IN SHARE PRICE DURING THE REVIEW PERIOD
During the period under review, the price of Ruukki Group's share varied between
EUR 1.18 (Q1/2006: 0.64) and EUR 1.99 (0.79). A total of 50,510,586 (12,204,073)
Ruukki Group shares were traded in the review period, representing 36.1% (13.5%)
of all shares registered at the end of the review period. The closing price of
the company's share on 31 March 2007 was EUR 1.75 (0.76). The market
capitalisation of the Group's entire capital stock of 139,615,737 (93,300,880)
shares at the closing price on 31 March 2007 was EUR 244.3 (70.9) million.
FLAGGING NOTICES DURING OR AFTER THE REVIEW PERIOD
Ruukki Group has received the following flagging notices during or after the
review period 1.1. - 31.3.2007:
Mandatum Pankkiiriliike Ltd's ownership exceeded one twentieth (1/20) of the
share capital and voting rights of Ruukki Group Plc on 2 January 2007.
Mandatum Pankkiiriliike Ltd's ownership fell below one twentieth (1/20) of the
share capital and voting rights of Ruukki Group Plc on 16 March 2007.
Nordea Pankki Suomi Plc's ownership exceeded three twentieth (3/20) 16 March
2007. At the time of that flagging, it was informed that Nordea Pankki Suomi
Plc's ownership will fall below one twentieth when April 2007 forward contracts
expire.
Nordea Pankki Suomi Plc has purchased Ruukki Group shares and entered into
Ruukki Group share forward contracts in 20 April 2007. Forward contracts will
expire in June 2007, in December 2007 and in January 2008. As and when the
January 2008 forward contracts expire, the ownership of Nordea Pankki Suomi Plc
will fall below one twentieth
1/20).
FINANCIAL DEVELOPMENT BY SEGMENT, SUMMARY, IN MILLION EUROS
--------------------------------------------------------------------------------
| | Revenue | Revenue | Revenue |
| | 1-3/2007 | 1-3/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
| House building | 14.0 | 14.0 | 53.7 |
--------------------------------------------------------------------------------
| Sawmill business | 12.6 | 6.3 | 27.8 |
--------------------------------------------------------------------------------
| Furniture business | 5.0 | 2.9 | 25.7 |
--------------------------------------------------------------------------------
| Care services | 3.9 | 1.9 | 9.8 |
--------------------------------------------------------------------------------
| Other operations | 1.9 | 2.0 | 8.8 |
--------------------------------------------------------------------------------
| Eliminations and | -0.5 | -0.1 | -0.4 |
| unallocated items | | | |
--------------------------------------------------------------------------------
| Group total | 36.8 | 27.1 | 125.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | EBIT 1-3/2007 | EBIT 1-3/2006 | EBIT 1-12/2006 |
--------------------------------------------------------------------------------
| House building | 2.6 | 3.5 | 13.4 |
--------------------------------------------------------------------------------
| Sawmill business | 1.8 | 0.4 | 1.4 |
--------------------------------------------------------------------------------
| Furniture business | -1.2 | -0.6 | -5.3 |
--------------------------------------------------------------------------------
| Care services | 0.2 | 0.3 | 0.6 |
--------------------------------------------------------------------------------
| Other operations | -1.1 | -0.4 | 2.9 |
--------------------------------------------------------------------------------
| Eliminations and | -0.1 | -0.3 | 0.1 |
| unallocated items | | | |
--------------------------------------------------------------------------------
| Group total | 2.1 | 2.8 | 13.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT, % of revenue | EBIT-% | EBIT-% | EBIT-% |
| | 1-3/2007 | 1-3/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
| House building | 18.3% | 24.6% | 24.9% |
--------------------------------------------------------------------------------
| Sawmill business | 14.2% | 6.0% | 5.0% |
--------------------------------------------------------------------------------
| Furniture business ** | -24.4% | -21.1% | -20.8% |
--------------------------------------------------------------------------------
| Care services | 4.9% | 14.8% | 6.2% |
--------------------------------------------------------------------------------
| Other operations | -60.5% | -18.4% | 33.2% |
--------------------------------------------------------------------------------
| Eliminations and | | | |
| unallocated items | | | |
--------------------------------------------------------------------------------
| Group total | 5.8% | 10.5% | 10.4% |
--------------------------------------------------------------------------------
* Other operations include approximately EUR 0.4 million in non-recurring sales
gain recognised as a result of ownership changes in Group companies during the
review period of Q1/2006 (the ownership change in the house building business
area is included in the income statement under Other operating income) and
approximately EUR 0.6 million in non-recurring sales loss (Metal industry,
Operating expenses).
** Furniture business segment's EBIT margin above is only indicative in nature
since for a part of the reporting period furniture business segment's companies
have been minority-owned; therefore for those periods no revenue has been
recognised at the Ruukki Group level, even though the related ownership shares
of associated companies' profit/loss have been reflected in the group EBIT.
GOODWILL BY SEGMENT, SUMMARY, IN MILLION EUROS
--------------------------------------------------------------------------------
| | 31 Mar | % | 31 Mar | % | 31 Dec | % |
| | 2007 | | 2006 | | 2006 | |
--------------------------------------------------------------------------------
| House building | 19,3 | 56 % | 17,8 | 63 % | 19,3 | 62 % |
--------------------------------------------------------------------------------
| Sawmill | 6,2 | 18 % | 4,5 | 16 % | 4,8 | 15 % |
| business | | | | | | |
--------------------------------------------------------------------------------
| Furniture | 1,8 | 5 % | 1,1 | 4 % | 0,0 | 0 % |
| business | | | | | | |
--------------------------------------------------------------------------------
| Care services | 5,7 | 17 % | 3,5 | 12 % | 5,7 | 18 % |
--------------------------------------------------------------------------------
| Other | 1,5 | 4 % | 1,4 | 5 % | 1,4 | 4 % |
--------------------------------------------------------------------------------
| TOTAL | 34,5 | 100 % | 28,3 | 100 % | 31,2 | 100 % |
--------------------------------------------------------------------------------
GROUP PROFIT AND LOSS ACCOUNT, SUMMARY, IN THOUSAND EUROS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| | 1 Jan - 31 Mar | 1 Jan - 31 Mar | 1 Jan - 31 Dec |
| | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
| Revenue | 36 792 | 27 086 | 125 460 |
--------------------------------------------------------------------------------
| Other operating income | 500 | 452 | 5 712 |
--------------------------------------------------------------------------------
| Operating expenses | -33 062 | -23 983 | -112 399 |
--------------------------------------------------------------------------------
| Depreciation and | -1 372 | -517 | -4 403 |
| amortization | | | |
--------------------------------------------------------------------------------
| Share of associated | -737 | -201 | -968 |
| companies profit | | | |
--------------------------------------------------------------------------------
| Impairment | 0 | 0 | -354 |
--------------------------------------------------------------------------------
| Operating profit | 2 122 | 2 837 | 13 048 |
--------------------------------------------------------------------------------
| Financial income and | -117 | -234 | -891 |
| expense | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 2 005 | 2 603 | 12 156 |
--------------------------------------------------------------------------------
| Income taxes * | -1 261 | -991 | -4 177 |
--------------------------------------------------------------------------------
| Net profit | 743 | 1 612 | 7 979 |
--------------------------------------------------------------------------------
| Profit attributable | | | |
--------------------------------------------------------------------------------
| to equity shareholders | 504 | 1 348 | 8 442 |
--------------------------------------------------------------------------------
| to minority interests | 239 | 264 | -464 |
--------------------------------------------------------------------------------
| Earnings per share: | | | |
--------------------------------------------------------------------------------
| basic (EUR) | 0.00 | 0.01 | 0.07 |
--------------------------------------------------------------------------------
| diluted (EUR) | 0.00 | 0.01 | 0.06 |
--------------------------------------------------------------------------------
* During the reporting period certain subsidiaries have recognised taxable
profits and certain subsidiaries taxable losses. For the major part of the
loss-making group companies, no deferred tax assets related to these realised
losses have been recognised. This has been done based on either since the group
has a view that there is no certainty the company in question can utilise the
income tax carry forward in the foreseeable future in its own operations, or
since it is not possible to utilise group contributions in the inter-company
relation because of the Ruukki Group's level of ownership or because of some
other reasons. This principle has been applied also previously, and therefore,
the effective income tax rate in group profit and loss account has been high.
GROUP BALANCE SHEET, SUMMARY, IN THOUSAND EUROS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| ASSETS | 31.3.2007 | 31.3.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Investments and intangible | | | |
| assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 34 546 | 28 290 | 31 237 |
--------------------------------------------------------------------------------
| Associated companies | 1 607 | 9 585 | 5 568 |
--------------------------------------------------------------------------------
| Other intangible assets | 7 066 | 1 802 | 4 001 |
--------------------------------------------------------------------------------
| Investments and intangible | 43 219 | 39 677 | 40 807 |
| assets total | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 35 947 | 12 006 | 15 855 |
--------------------------------------------------------------------------------
| Other non-current assets | 1 796 | 445 | 528 |
--------------------------------------------------------------------------------
| Non-current assets total | 80 962 | 52 128 | 57 189 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 29 381 | 14 097 | 17 057 |
--------------------------------------------------------------------------------
| Receivables | 17 960 | 7 507 | 9 805 |
--------------------------------------------------------------------------------
| Other investments | 5 234 | 0 | 7 271 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 14 354 | 10 547 | 24 768 |
--------------------------------------------------------------------------------
| Current assets total | 66 928 | 32 151 | 58 901 |
--------------------------------------------------------------------------------
| Total assets | 147 890 | 84 279 | 116 089 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 31.3.2007 | 31.3.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Shareholders' equity | | | |
--------------------------------------------------------------------------------
| Share capital | 23 639 | 15 861 | 23 018 |
--------------------------------------------------------------------------------
| Share premium reserve | 25 735 | 5 207 | 24 712 |
--------------------------------------------------------------------------------
| Revaluation reserve | 757 | 0 | 0 |
--------------------------------------------------------------------------------
| Invested non-restricted equity | 424 | 0 | 424 |
| fund | | | |
--------------------------------------------------------------------------------
| Retained earnings | 9 783 | 4 743 | 9 511 |
--------------------------------------------------------------------------------
| Shareholders' equity | 60 336 | 25 811 | 57 665 |
--------------------------------------------------------------------------------
| Minority interest | 1 831 | 264 | 1 591 |
--------------------------------------------------------------------------------
| Total equity | 62 166 | 26 075 | 59 256 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 28 775 | 26 943 | 13 489 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Prepayments | 16 266 | 12 769 | 17 576 |
--------------------------------------------------------------------------------
| Other current liabilities | 40 683 | 18 492 | 25 769 |
--------------------------------------------------------------------------------
| Current liabilities total | 56 949 | 31 261 | 43 345 |
--------------------------------------------------------------------------------
| Total liabilities | 85 724 | 58 204 | 56 834 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 147 890 | 84 279 | 116 089 |
--------------------------------------------------------------------------------
SUMMARY OF INTEREST-BEARING RECEIVABLES AND LIABILITIES, IN THOUSAND EUROS
--------------------------------------------------------------------------------
| | 31 Mar 2007 | 31 Mar 2006 | 31 Dec 2006 |
--------------------------------------------------------------------------------
| Interest-bearing receivables | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current | 5 523 | 114 | 7 271 |
--------------------------------------------------------------------------------
| Non-current | 339 | 170 | 453 |
--------------------------------------------------------------------------------
| Interest-bearing | 5 862 | 284 | 7 724 |
| receivables, total | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing liabilities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current | 14 838 | 3 090 | 4 510 |
--------------------------------------------------------------------------------
| Non-current | 20 758 | 18 068 | 9 205 |
--------------------------------------------------------------------------------
| Interest-bearing | 35 596 | 21 158 | 13 715 |
| liabilities, total | | | |
--------------------------------------------------------------------------------
GROUP CASH FLOW STATEMENT, SUMMARY, IN THOUSAND EUROS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| | 1 Jan - 31 Mar | 1 Jan - 31 Mar | 1 Jan - 31 |
| | 2007 | 2006* | Dec 2006 |
--------------------------------------------------------------------------------
| Cash flow from operating | | | |
| activities | | | |
--------------------------------------------------------------------------------
| Net profit | 743 | 1 612 | 8 442 |
--------------------------------------------------------------------------------
| Adjustments to net profit | 2 647 | 1 416 | 10 794 |
--------------------------------------------------------------------------------
| Change in working capital | -2 246 | -772 | -12 178 |
--------------------------------------------------------------------------------
| Cash flow from operating | 1 144 | 2 256 | 7 058 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition of | -5 359 | -5 537 | -13 401 |
| subsidiaries and | | | |
| associates | | | |
--------------------------------------------------------------------------------
| Payment of earn-out | -7 054 | -4 724 | -8 875 |
| liabilities and exercises | | | |
| of call options related to | | | |
| acquisitions | | | |
--------------------------------------------------------------------------------
| Sale of subsidiaries and | 2 361 | 2 227 | 4 183 |
| associates | | | |
--------------------------------------------------------------------------------
| Capital expenditures and | -1 844 | -702 | -3 203 |
| other investing activities | | | |
--------------------------------------------------------------------------------
| Cash flow used in | -11 896 | -8 736 | -21 296 |
| investing activities ** | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share issues | 0 | 0 | 21 218 |
--------------------------------------------------------------------------------
| Dividend payouts | 0 | 0 | -3 146 |
--------------------------------------------------------------------------------
| Borrowing | 889 | 1 900 | 5 561 |
--------------------------------------------------------------------------------
| Repayment of debt, and | -840 | -2 865 | -2 611 |
| other financing activities | | | |
--------------------------------------------------------------------------------
| Cash flow from/used in | 49 | -965 | 21 022 |
| financing activities ** | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash | -10 703 | -7 445 | 6 784 |
--------------------------------------------------------------------------------
* when the change in an investment into mutual fund, which was sold in Q1/2006
(totalling 8,579 thousand euros), has been presented within the change of cash
** the repayment of acquisition related earn-out liabilities, as well as
exercises of acquisition related call options, have been recategorized so that
those repayments have been presented in the investing activities' cash flows,
whereas previously those items have been included in the financing activities
SUMMARY OF THE CHANGES IN SHAREHOLDERS' EQUITY OF THE GROUP, IN THOUSAND EUROS
--------------------------------------------------------------------------------
| | | | Equity attributable to | | Minor | Total |
| | | | shareholders | | ity | equit |
| | | | | | inter | y |
| | | | | | ests | |
--------------------------------------------------------------------------------
| EUR 1,000 | Shar | Shar | Shar | Fair | Inve | Retai | Total | | |
| | e | e | e | valu | sted | ned | | | |
| | capi | issu | prem | e | non- | earni | | | |
| | tal | e | ium | rese | rest | ngs | | | |
| | | | rese | rve | rict | | | | |
| | | | rve | & | ed | | | | |
| | | | | Reva | equi | | | | |
| | | | | luat | ty | | | | |
| | | | | ion | fund | | | | |
| | | | | rese | | | | | |
| | | | | rve | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharehold | 14 5 | 4 34 | 2 14 | 9 | 0 | 3 380 | 24 | | 24 |
| ers' | 84 | 0 | 4 | | | | 457 | | 457 |
| equity | | | | | | | | | |
| 31 Dec | | | | | | | | | |
| 2005 | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | | 1 348 | 1 348 | 264 | 1 612 |
| profit | | | | | | | | | |
--------------------------------------------------------------------------------
| Bonus | 87 | | -87 | | | | 0 | | 0 |
| issue | | | | | | | | | |
| 01/2006 | | | | | | | | | |
--------------------------------------------------------------------------------
| Share | 1 | -4 | 3 | | | | 0 | | 0 |
| issue | 190 | 340 | 150 | | | | | | |
| 12/2005 | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | -9 | | 7 | -2 | | -2 |
| component | | | | | | | | | |
| of | | | | | | | | | |
| convertib | | | | | | | | | |
| le bonds | | | | | | | | | |
| and other | | | | | | | | | |
| changes | | | | | | | | | |
| in equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Sharehold | 15 8 | 0 | 5 20 | 0 | 0 | 4 735 | 25 | 264 | 26 |
| ers' | 61 | | 7 | | | | 803 | | 067 |
| equity | | | | | | | | | |
| 31 Mar | | | | | | | | | |
| 2006 | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | | 7 094 | 7 094 | 1 327 | 8 421 |
| profit | | | | | | | | | |
--------------------------------------------------------------------------------
| Share | 5 | | 16 | | | | 21 | | 21 |
| issue | 100 | | 118 | | | | 218 | | 218 |
| 3/2006 | | | | | | | | | |
--------------------------------------------------------------------------------
| Free | | | | | 424 | | 424 | | 424 |
| directed | | | | | | | | | |
| issue | | | | | | | | | |
| 10/2006 | | | | | | | | | |
--------------------------------------------------------------------------------
| Conversio | 2 | | 3 | | | | 5 444 | | 5 444 |
| ns of | 057 | | 387 | | | | | | |
| convertib | | | | | | | | | |
| le bonds | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | | | -2 31 | -2 | | -2 |
| component | | | | | | 8 | 318 | | 318 |
| of | | | | | | | | | |
| convertib | | | | | | | | | |
| le bonds | | | | | | | | | |
| and other | | | | | | | | | |
| changes | | | | | | | | | |
| in | | | | | | | | | |
| equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Sharehold | 23 0 | 0 | 24 7 | 0 | 424 | 9 512 | 57 66 | 1 591 | 59 |
| ers' | 18 | | 12 | | | | 5 | | 256 |
| equity | | | | | | | | | |
| 31 Dec | | | | | | | | | |
| 2006 | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | | 504 | 504 | 239 | 743 |
| profit | | | | | | | | | |
--------------------------------------------------------------------------------
| Conversio | 621 | | 1 | | | | 1 643 | | 1 643 |
| ns of | | | 023 | | | | | | |
| convertib | | | | | | | | | |
| le bonds | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | | | -233 | -233 | | -233 |
| component | | | | | | | | | |
| of | | | | | | | | | |
| convertib | | | | | | | | | |
| le bonds | | | | | | | | | |
| and other | | | | | | | | | |
| changes | | | | | | | | | |
| in equity | | | | | | | | | |
--------------------------------------------------------------------------------
| Revaluati | | | | 757 | | | 757 | | 757 |
| on | | | | | | | | | |
| reserve | | | | | | | | | |
| generated | | | | | | | | | |
| by | | | | | | | | | |
| acquisiti | | | | | | | | | |
| ons | | | | | | | | | |
--------------------------------------------------------------------------------
| Sharehold | 23 6 | 0 | 25 7 | 757 | 424 | 9 783 | 60 33 | 1 831 | 62 |
| ers' | 39 | | 35 | | | | 6 | | 166 |
| equity | | | | | | | | | |
| 31 Mar | | | | | | | | | |
| 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
MERGERS AND ACQUISITIONS
INCAP FURNITURE LTD
During the review period, the Ruukki Group became the majority owner of Incap
Furniture Ltd through a directed share issue. See below for more specific
information. Incap Furniture's share subscription was paid for by setting off
former subordinated loan receivables. However, prior this share issue, Ruukki
Group invested some 0.9 million euros by a subordinated loan arrangement. If a
corresponding proportional holding of 70.3% in Incap Furniture would have been
valid as of 1 January 2007, its net effect on the reported Ruukki Group's 1
January - 31 March 2007 profit and loss account main items would have been the
following: Ruukki Group revenue would have increased by some 8,907 thousand
euros (+24%) vis-à-vis the reported group revenue, group EBIT* decreased by
roughly 714 thousand euros (-34 %) and group net income* been lower than the
reported by about 885 thousand euros.
* when taking into account the purchase price allocation, the related
depreciation and amortization, and the actual balance sheet as of 28 February
2007
The following assets and liabilities were recognised relating to the acquisition
which also gives information about the contribution of this transaction to the
group balance sheet at the end of the review period:
--------------------------------------------------------------------------------
| EUR 1,000 | Fair value of | Book value before |
| | acquired assets | acquisition |
--------------------------------------------------------------------------------
| Intangible assets | | |
--------------------------------------------------------------------------------
| Clientele | 814 | 0 |
--------------------------------------------------------------------------------
| Other intangible assets | 555 | 607 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 18 193 | 18 284 |
--------------------------------------------------------------------------------
| Inventories | 8 185 | 7 810 |
--------------------------------------------------------------------------------
| Receivables | | |
--------------------------------------------------------------------------------
| Accounts receivable | 5 902 | 5 902 |
--------------------------------------------------------------------------------
| Other receivables | 2 502 | 2 444 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 369 | 369 |
--------------------------------------------------------------------------------
| Total assets | 36 521 | 35 415 |
--------------------------------------------------------------------------------
| Interest bearing debt | | |
--------------------------------------------------------------------------------
| Leasing liabilities | 3 200 | 3 200 |
--------------------------------------------------------------------------------
| Current and non-current debt | 23 041 | 23 041 |
--------------------------------------------------------------------------------
| Non-interest bearing debt | | |
--------------------------------------------------------------------------------
| Accounts payable | 7 742 | 7 742 |
--------------------------------------------------------------------------------
| Other debt | 3 842 | 3 669 |
--------------------------------------------------------------------------------
| Deferred tax liability | 1 295 | 986 |
--------------------------------------------------------------------------------
| Total liabilities | 39 120 | 38 638 |
--------------------------------------------------------------------------------
| Net assets | -2 600 | -3 223 |
--------------------------------------------------------------------------------
| Acquisition cost | 1 171 | |
--------------------------------------------------------------------------------
| Net assets 28 Feb 2007 (100 %) | -2 600 | |
--------------------------------------------------------------------------------
| Acquired net assets 28 Feb 2007 | -604 | |
| (23.3 %) | | |
--------------------------------------------------------------------------------
| Goodwill | 1 775 | |
--------------------------------------------------------------------------------
| Net cash outflow on the | | |
| acquisition: | | |
--------------------------------------------------------------------------------
| Consideration paid in cash | 886 | |
--------------------------------------------------------------------------------
| Acquired cash and cash | 86 | |
| equivalents 23.3% | | |
--------------------------------------------------------------------------------
| Cash flow | 800 | |
--------------------------------------------------------------------------------
OPLAX LTD
In March, the company decided to finalise a cash transaction to increase its
holding in Oplax Ltd, manufacturer of packaging pallets in Oulu, Kemi and
Tornio, from 32% to 100%. The latest of these transaction increased Ruukki
Group's ownership by 61.7%, which is reflected in the table below, where also
more specific information relating to this transaction is presented.
If the corresponding 100% holding in Oplax Ltd would have been valid as of 1
January 2007, its net effect on the reported Ruukki Group's 1 January - 31 March
2007 profit and loss account main items would have been the following: Ruukki
Group revenue would have increased by roughly 1,428 thousand euros (+4 %)
vis-à-vis the reported group revenue, group EBIT* decreased by some 269 thousand
euros (-13 %) and group net income* been lower than the reported by about 261
thousand euros.
* when taking into account the purchase price allocation, the related
depreciation and amortization, and the actual balance sheet as of 12 March 2007
The following assets and liabilities were recognised relating to the acquisition
which also gives information about the contribution of this transaction to the
group balance sheet at the end of the review period:
--------------------------------------------------------------------------------
| 1,000 EUR | Fair value of | Book value before |
| | acquired assets | acquisition |
--------------------------------------------------------------------------------
| Intangible assets | | |
--------------------------------------------------------------------------------
| Clientele | 2 061 | 0 |
--------------------------------------------------------------------------------
| Property, plant and | | |
| equipment | | |
--------------------------------------------------------------------------------
| Land and buildings | 525 | 78 |
--------------------------------------------------------------------------------
| Machinery and equipment | 1 628 | 273 |
--------------------------------------------------------------------------------
| Investments | 1 446 | 1 434 |
--------------------------------------------------------------------------------
| Other assets | | |
--------------------------------------------------------------------------------
| Inventories | 1 226 | 1 142 |
--------------------------------------------------------------------------------
| Accounts receivable | 707 | 707 |
--------------------------------------------------------------------------------
| Other receivables | 125 | 125 |
--------------------------------------------------------------------------------
| Accruals | 2 | 2 |
--------------------------------------------------------------------------------
| Cash | 9 | 9 |
--------------------------------------------------------------------------------
| Total assets | 7 728 | 3 769 |
--------------------------------------------------------------------------------
| Non-interest bearing debt | | |
--------------------------------------------------------------------------------
| Accounts payable | 429 | 429 |
--------------------------------------------------------------------------------
| Other debt | 216 | 216 |
--------------------------------------------------------------------------------
| Deferrals | 80 | 80 |
--------------------------------------------------------------------------------
| Deferred tax liability | 1 029 | 0 |
--------------------------------------------------------------------------------
| Interest bearing debt | 114 | 114 |
--------------------------------------------------------------------------------
| Total liabilities | 1 869 | 839 |
--------------------------------------------------------------------------------
| Net assets | 5 859 | 2 930 |
--------------------------------------------------------------------------------
| Acquisition cost | 4 852 | |
--------------------------------------------------------------------------------
| Net assets 12 Mar 2007 (100 | 5 859 | |
| %) | | |
--------------------------------------------------------------------------------
| Net assets 12 Mar 2007 | 3 613 | |
| (61.66 %) | | |
--------------------------------------------------------------------------------
| Goodwill | 1 239 | |
--------------------------------------------------------------------------------
| Net cash outflow on the | | |
| acquisition: | | |
--------------------------------------------------------------------------------
| Consideration paid in cash | 4 772 | |
--------------------------------------------------------------------------------
| Acquired cash and cash | -9 | |
| equivalents | | |
--------------------------------------------------------------------------------
| Cash flow | 4 763 | |
--------------------------------------------------------------------------------
OTHER KEY INDICATORS
--------------------------------------------------------------------------------
| | Q1/2007 | Q1/2006 | 2006 |
--------------------------------------------------------------------------------
| Gross capital expenditure | 25.6 | 6.6 | 14.3 |
--------------------------------------------------------------------------------
| % of revenue | 69.6 % | 24.5 % | 11.4 % |
--------------------------------------------------------------------------------
| Personnel, average | 637 | 411 | 570 |
--------------------------------------------------------------------------------
| Personnel, at the end of the | 869 | 416 | 452 |
| period | | | |
--------------------------------------------------------------------------------
| Dividends, EUR 1,000 | 0,0 | 0,0 | 4,079 |
--------------------------------------------------------------------------------
| Dividend per share, EUR | 0.00 | 0.00 | 0.03 |
--------------------------------------------------------------------------------
| Dividend per earnings, % | 0.0% | 0.0% | 41.9 % |
--------------------------------------------------------------------------------
| Effective dividend yield, % | 0.0% | 0.0% | 2.5 % |
--------------------------------------------------------------------------------
| Price to earnings | 119.7 | 13.2 | 16.8 |
--------------------------------------------------------------------------------
| Highest share price, EUR | 1.99 | 0.78 | 1.23 |
--------------------------------------------------------------------------------
| Lowest share price, EUR | 1.18 | 0.64 | 0.64 |
--------------------------------------------------------------------------------
| Average share price, EUR | 1.40 | 0.70 | 0.84 |
--------------------------------------------------------------------------------
| Market capitalisation, | 244 .3 | 70.9 | 163.2 |
--------------------------------------------------------------------------------
| Turnover | 70,.5 | 8.5 | 84.8 |
--------------------------------------------------------------------------------
| Turnover, % | 36.1 % | 13.1 % | 86.0 % |
--------------------------------------------------------------------------------
RUUKKI GROUP PLC
BOARD OF DIRECTORS
Ruukki Group is an entrepreneurial development company that operates through the
companies it owns all over Finland in various field including house building,
sawmill and furniture business and care services. Ruukki Group Plc's share
(RUG1V) is listed on the Helsinki Exchange in the OMX Nordic Exchange's small
cap category.
For additional information, please contact:
Antti Kivimaa
CEO
Ruukki Group Plc
Tel. +358 400 501780
www.ruukkigroup.fi
© 2024 Nasdaq, Inc. All Rights Reserved |