2009-04-29 08:00:00 CEST
2009-04-29 08:00:09 CEST
REGULATED INFORMATION
Raute - Interim report (Q1 and Q3)
RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2009
RAUTE CORPORATION INTERIM REPORT 29 APRIL 2009 AT 9:00 A.M. RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2009 - The Group's net sales fell considerably to EUR 11.4 million (MEUR 23.9). - Operating profit, MEUR -2.2 (MEUR 1.2), and result before tax, MEUR -2.1 (MEUR 1.3), were negative. - Earnings per share were EUR -0.47 (EUR 0.24). - The order intake was very low, MEUR 4 (MEUR 33), and the order book at the end of the reporting period was MEUR 17 (MEUR 65). - Net sales will decline significantly in 2009, and operating profit will be negative, despite adaptation measures taken. MR. TAPANI KIISKI, PRESIDENT AND CEO: DIFFICULT MARKET LED TO CONSIDERABLY WEAKENED PROFITABILITY The capacity utilization rates of our customers' mills decreased considerably during the final part of 2008 due to the difficult market situation. This was reflected both in our customers' investment decisions and in the demand for technology services dependent on the utilization rates. As the market leader, Raute was not able to compensate such a considerable reduction in demand by increasing its market share. The order intake remained very low. The good order book in early 2008 and the new orders received since then have now been delivered for the most part. The low order book has reached a level that requires adaptation measures also in future. The measures have mainly already been agreed upon. We have made the best possible use of the flexibility provided by our operational structure developed in recent years and adapted our operations to correspond to the low workload. Nevertheless, the fall in net sales was so steep that we made a loss. As part of our adaptation measures to the current market situation, our product development work has since last fall been focusing on products that provide our customers with an opportunity to increase their competitiveness and profitability also in the short term, instead of increasing their capacity, for example. I believe that these products and applications will bring us new sales this year and strengthen our customer relationships in the future. The cornerstones of our chosen strategy are the ability to serve customers worldwide, an extensive range of technologies and the full service concept as well as long-term development of our operations. We will stick to these even during these difficult times. We want to retain our ability to react to the opportunities offered by the markets as soon as the economy starts to recover. For this reason, the share of resources causing fixed costs in our operations is high. Some of our customers have a similar strategy, and I believe that our customers will make investment decisions during the course of this year to ensure their competitiveness when the market recovers. The preparation of these projects with the customers will provide both parties with a quick start from pole position in the race for victory during the next market uptrend. However, the cost of winning this pole position will be a negative operating profit this year. RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2009 MARKET SITUATION Market situation in customer industries The weak situation in the construction and transport industries continues to keep the demand for plywood and LVL (Laminated Veneer Lumber) at a low level in all market areas. Almost all plywood and LVL mills have had to adapt their production levels to correspond with the lowered demand. Demand for wood products technology and technology services The difficult market situation has postponed investment decisions in the plywood and LVL industries even further and kept the demand for wood products technology and modernizations at a low level. The closing of mills and low capacity utilization rates also kept the demand for maintenance and spare parts services at a low level. Some mill-scale investment projects are still in the planning phase in various markets. The start-up of these projects is being postponed not only due to the difficult market situation but also due to uncertainty in the financial markets. ORDER INTAKE AND COMPETITIVE POSITION Net sales are generated exclusively by project deliveries and technology services related to the wood products technology business. Project deliveries encompass complete mills, production lines, and individual machines and equipment units. Technology services include maintenance, spare part services, modernizations, consulting, training, and sales of reconditioned machinery. The first-quarter order intake, EUR 4 million (MEUR 33), was exceptionally low. The order intake for technology services amounted to EUR 2 million (MEUR 6) for the reporting period. The low volume of order intake was attributable to the difficult market situation of Raute's customer industries, the low utilization rates of mills and the further postponement of investment decisions relating to large, mill-scale projects. There have been no essential changes in Raute's competitive position, and thus Raute will be competitive when demand recovers. Customers appreciate comprehensive competence and strong technology development in their strategic investments aimed at ensuring their ability to deliver and provide service. The competitive edge provided by Raute's technology plays an important role when customers select their suppliers. Due to its strong financial position, Raute's ability to survive the recession is good. Thanks to its strong market position and the development efforts made, Raute's ability to respond to growing demand as soon as the markets recover will be excellent. NET SALES AND ORDER BOOK Net sales for the reporting period totaled EUR 11.4 million (MEUR 23.9), down 52 percent on the comparison period. The decline in net sales was due to the difficult market situation. Technology services accounted for 30 percent (22%) of net sales for the reporting period. Europe's share of net sales was 58 percent (50%), Russia's 19 percent (31%), North America's 6 percent (13%) and the share of other market areas 17 percent (6%). The order book weakened during the reporting period by EUR 7 million due to lower order intake, and stood at EUR 17 million (MEUR 65) at the end of the period. RESULT AND PROFITABILITY Operating profit was EUR 2.2 million negative (MEUR 1.2 positive) and accounted for -19 percent (5.0%) of net sales. The weak profitability for the reporting period was caused by the very low level of net sales. The Group has implemented some structural changes in recent years to increase its ability to adapt to the normal fluctuations in demand typical of the project business. In order to adapt to the exceptionally weak market situation, measures have also been taken to adapt operations and personnel. Due to its strategic choices to operate worldwide and to supply comprehensive mill-scale projects, a significant share of the Group's costs consist of fixed costs. This weakens Raute's ability to adapt costs in a situation of such rapidly and quickly lowering demand and thus decreases the operating profit in the present exceptional market situation. Result before tax for the reporting period was EUR 2.1 million negative (MEUR 1.3 positive) and the result EUR 1.9 million negative (MEUR 1.0 positive). Earnings per share (undiluted) were EUR -0.47 (EUR 0.24). FINANCING The Group's financial position is good. At the end of the reporting period, gearing was -35.5 percent (-76.0%) and the equity ratio 60.2 percent (65.7%). The fluctuation in balance sheet items and the key figures based on them is a result of differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of the project business. Raute's liquid assets stood at EUR 21.8 million (MEUR 27.0) at the end of the reporting period. Operating cash flow was EUR 1.0 million positive (MEUR 16.5). Cash flow from investment activities totaled EUR -0.2 million (MEUR -0.9). Cash flow from financing activities was EUR -0.1 million (MEUR -0.0). Interest-bearing liabilities amounted to EUR 10.3 million (MEUR 0.5) at the end of the reporting period, with a TyEL loan accounting for EUR 10.0 million (MEUR 0.0) Unused long-term credit limits amounted to EUR 14 million (MEUR 15). The company also has a EUR 10 million (MEUR 10) commercial paper program. RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE Research and development costs totaled EUR 0.8 million (MEUR 1.0) in the reporting period, representing 6.6 percent (4.0%) of net sales. Investments totaled EUR 0.2 million (MEUR 0.9) and included EUR 0.1 million (MEUR 0.2) capitalized development costs. PERSONNEL The Group's headcount at the end of the reporting period was 547 (578). Group companies outside Finland accounted for 23 percent (24%) of employees. Converted to full-time employees, the average number of personnel was 465 (568). During the reporting period, the Group concluded negotiations in accordance with the Act on Co-operation within Undertakings on adjustment measures concerning the salaried and senior salaried employees of the Finnish units, and the hourly workers of the Jyväskylä unit. The negotiation results were disclosed as a stock exchange release issued on March 16, 2009. Other personnel of Raute Corporation in Finland is covered by the negotiation result reached on 18 November 2008. SHARES The number of Raute Corporation's shares at the end of the reporting period totaled 4,004,758, of which 991,161 were series K shares (ordinary share, 20 votes/share) and 3,013,597 series A shares (1 vote/share). The shares have a nominal value of two euro. Series K shares can be converted to series A shares under the terms described in Article 3 of the Articles of Association. If a series K share is transferred to a new owner who does not previously hold series K shares, other shareholders of the K series have the right to redeem the share under the terms described in Article 4 of the Articles of Association. Raute Corporation's series A shares are listed on NASDAQ OMX Helsinki Ltd. Raute Corporation has signed a market making agreement with Nordea Bank Finland Plc in compliance with the Liquidity Providing (LP) requirements issued by NASDAQ OMX Helsinki Ltd. The company's market capitalization at the end of the reporting period was EUR 28.3 million (MEUR 60.0), with series K shares valued at the closing price of series A shares on March 31, 2009, that is EUR 7.06 (EUR 14.97). REPURCHASE AND DISPOSAL OF OWN SHARES Raute Corporation's Board of Directors has exercised the authorization given by the Annual General Meeting on April 2, 2008 to repurchase and dispose of Raute Corporation's series A shares. The company repurchased a total of 18,900 of the company's series A shares during the period February 19-March 17, 2009 to be used in the remuneration systems of the company's key employees. On March 27, 2009, the company transferred the acquired shares to the 17 key employees covered by the Group's share-based incentive plan as the share portion of the remuneration paid for the period 2006-2008. The company did not possess company shares at the end of the reporting period or hold them as security. Other share-related information is presented in the figures section of this report. SHAREHOLDERS The number of shareholders totaled 1,528 at the beginning of the year and 1,667 at the end of the reporting period. Series K shares are held by 46 private individuals (46). Management held 5.0 percent (4.7%) of the company shares and 9.1 percent (9.1%) of the votes. Nominee-registered shares accounted for 1.6 percent (2.0%) of shares. No flagging notifications were given to the company in the reporting period. CORPORATE GOVERNANCE As of January 1, 2009, Raute Corporation complies with the Finnish Corporate Governance Code for listed companies issued by the Securities Market Association on October 20, 2008. An outline of Raute Corporation's corporate governance principles is presented on the company's website at www.raute.com. EVENTS AFTER THE REPORTING PERIOD Annual General Meeting 2009 Raute Corporation's Annual General Meeting was held on April 2, 2009. It adopted the financial statements for 2008, granted discharge from liability to those accountable and decided to distribute a dividend of 0.70 euro per share. The Annual General Meeting elected the company's Board of Directors for a term that expires at the end of the Annual General Meeting of 2010. Mr. Erkki Pehu-Lehtonen was elected Chairman of the Board, Ms. Sinikka Mustakallio Vice-Chairman and Mr. Risto Hautamäki, Mr. Ilpo Helander, Mr. Mika Mustakallio and Mr. Panu Mustakallio as Board members. Authorized Public Accountants Anna-Maija Simola and Antti Unkuri were elected as auditors, and Ernst & Young Oy, an authorized public accounting company, as deputy auditor. The Annual General Meeting decided that the remuneration paid to the Chairman of the Board will be EUR 40,000 and to the Vice-Chairman of the Board and Board members EUR 20,000 for the term of office and that the Board Members' traveling expenses will be compensated in accordance with the company's travel policy. The compensation to the auditors will be paid on the basis of reasonable invoicing. The Annual General Meeting decided to amend the Articles of Association, mainly due to the new Limited Liability Companies Act, which came into force on September 1, 2006. The Annual General Meeting authorized the Board of Directors to decide on the repurchase of Raute Corporation's series A shares with the company's distributable assets and to decide on a directed issue of a maximum of 400,000 of the company's series A shares. More detailed information on the decisions of the Annual General Meeting can be found in the stock exchange release issued on April 2, 2009. Dividend for the financial year 2008 The Annual General Meeting held on April 2, 2009 decided to distribute a dividend of EUR 0.70 per share for 2008. The total amount of dividends is EUR 2.8 million, series A shares accounting for EUR 2,109,517.90 (EUR 3,013,597.00) and series K shares for EUR 693,812.70 (EUR 991,161.00). The dividend payment date was April 16, 2009. BUSINESS RISKS The continuing financial crisis and the uncertainty in the development of the global economy sustain near-future risks, and the predictability is essentially weaker than in the normal situation. Raute's most significant near-future risks are related to the further weakening order book, and the development of net sales and profitability. During the reporting period, there have been no essential changes in the other business risks described in the Board of Directors' report and financial statements for 2008. OUTLOOK FOR 2009 Due to the global economic uncertainty and the financial crisis, the market situation in Raute's customer industries is expected to remain difficult throughout 2009. Investments and demand for services in the wood products industry are expected to remain low in all market areas, with the exception of individual mill-scale projects, several of which are in the planning phase in various market areas, as customers are already making preparations for the period following the present recession. Thanks to its strong financial position, market position and development efforts made in operations and products Raute's ability to overcome the economic recession and to respond to the growing demand is excellent when the markets recover. Due to the low order book, weak demand and the postponements of investment decisions relating to mill-scale projects, Raute's net sales will decline significantly in 2009. Operating profit will be negative, despite the adaptation measures taken. TABLES OF CONSOLIDATED FINANCIAL STATEMENTS AND NOTES The figures presented in the Interim financial report have not been audited except the figures for the comparison period and financial statements for 2008. -------------------------------------------------------------------------------- | CONSOLIDATED INCOME STATEMENT | | | | -------------------------------------------------------------------------------- | (EUR 1 000) | Note | 1.1.- | 1.1.- | 1.1.- | -------------------------------------------------------------------------------- | | | 31.3. | 31.3. | 31.12. | -------------------------------------------------------------------------------- | | | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- | Continuing operations | | | | | -------------------------------------------------------------------------------- | NET SALES | 2,3,4 | 11 366 | 23 910 | 98 466 | -------------------------------------------------------------------------------- | Other operating | | | | | -------------------------------------------------------------------------------- | income | | 32 | 27 | 95 | -------------------------------------------------------------------------------- | Increase (+) or | | | | | -------------------------------------------------------------------------------- | decrease (-) in | | | | | -------------------------------------------------------------------------------- | inventories of | | | | | -------------------------------------------------------------------------------- | finished goods and | | | | | -------------------------------------------------------------------------------- | work in progress | | 252 | 196 | 404 | -------------------------------------------------------------------------------- | Materials and | | | | | -------------------------------------------------------------------------------- | services | | 5 171 | 11 661 | 50 906 | -------------------------------------------------------------------------------- | Expenses from | | | | | -------------------------------------------------------------------------------- | employee benefits | 9 | 6 132 | 7 131 | 28 592 | -------------------------------------------------------------------------------- | Depreciation, | | | | | -------------------------------------------------------------------------------- | amortization and | | | | | -------------------------------------------------------------------------------- | impairment charges | | 674 | 641 | 2 751 | -------------------------------------------------------------------------------- | Other operating | | | | | -------------------------------------------------------------------------------- | expenses | | 1 851 | 3 497 | 10 375 | -------------------------------------------------------------------------------- | Total operating | | | | | -------------------------------------------------------------------------------- | expenses | 7 | 13 828 | 22 931 | 92 624 | -------------------------------------------------------------------------------- | OPERATING PROFIT | | -2 179 | 1 202 | 6 341 | -------------------------------------------------------------------------------- | % of net sales | | -19 | 5 | 6 | -------------------------------------------------------------------------------- | Financial income | | 250 | 453 | 1 268 | -------------------------------------------------------------------------------- | Financial expenses | | -204 | -330 | -729 | -------------------------------------------------------------------------------- | PROFIT BEFORE TAX | | -2 132 | 1 325 | 6 880 | -------------------------------------------------------------------------------- | % of net sales | | -19 | 6 | 7 | -------------------------------------------------------------------------------- | Income taxes | 6 | 236 | -373 | -2 157 | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | | -1 895 | 952 | 4 723 | -------------------------------------------------------------------------------- | % of net sales | | -17 | 4 | 5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other comprehensive income items: | | | | -------------------------------------------------------------------------------- | Exchange differences on | | | | | -------------------------------------------------------------------------------- | translating foreign | | | | | -------------------------------------------------------------------------------- | operations | | 10 | 631 | 247 | -------------------------------------------------------------------------------- | Income tax related to | | | | | -------------------------------------------------------------------------------- | exchange differences | | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Other comprehensive | | | | | -------------------------------------------------------------------------------- | income items for | | | | | -------------------------------------------------------------------------------- | the period, net of tax | | 10 | 631 | 247 | -------------------------------------------------------------------------------- | TOTAL COMPREHENSIVE PROFIT | | | | | -------------------------------------------------------------------------------- | FOR THE PERIOD | | -1 885 | 1 583 | 4 970 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit for the period | | | | | -------------------------------------------------------------------------------- | attributable to | | | | | -------------------------------------------------------------------------------- | Equity holders of the | | | | | -------------------------------------------------------------------------------- | Parent company | | -1 895 | 952 | 4 723 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive profit | | | | | -------------------------------------------------------------------------------- | for the period attributable to | | | | -------------------------------------------------------------------------------- | Equity holders of the | | | | | -------------------------------------------------------------------------------- | Parent company | | -1 885 | 1 583 | 4 970 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share for profit | | | | -------------------------------------------------------------------------------- | attributable to the equity | | | | | -------------------------------------------------------------------------------- | holders of the Parent | | | | | -------------------------------------------------------------------------------- | company, EUR | | | | | -------------------------------------------------------------------------------- | Undiluted earnings per | | | | | -------------------------------------------------------------------------------- | share, continuing operations | -0.47 | 0.24 | 1.18 | -------------------------------------------------------------------------------- | Diluted earnings per share, | | -0.47 | 0.24 | 1.18 | -------------------------------------------------------------------------------- | continuing operations | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shares, 1 000 pcs | | | | | -------------------------------------------------------------------------------- | Adjusted average | | | | | -------------------------------------------------------------------------------- | number of shares | | 3 998 | 4 005 | 4 005 | -------------------------------------------------------------------------------- | Adjusted average | | | | | -------------------------------------------------------------------------------- | number of shares | | | | | -------------------------------------------------------------------------------- | diluted | | 3 998 | 4 005 | 4 005 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET | | | | | -------------------------------------------------------------------------------- | (1 000 EUR) | Note | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Intangible assets | | 2 385 | 3 046 | 2 482 | -------------------------------------------------------------------------------- | Tangible assets | | 11 097 | 10 979 | 11 175 | -------------------------------------------------------------------------------- | Other financial assets | | 499 | 449 | 499 | -------------------------------------------------------------------------------- | Deferred tax assets | | 120 | 570 | 334 | -------------------------------------------------------------------------------- | Total | | 14 101 | 15 044 | 14 491 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Inventories | | 4 211 | 5 207 | 4 310 | -------------------------------------------------------------------------------- | Accounts receivables and | | | | | -------------------------------------------------------------------------------- | other receivables | 4 | 16 810 | 28 430 | 20 270 | -------------------------------------------------------------------------------- | Financial assets at | | | | | -------------------------------------------------------------------------------- | fair value through | | | | | -------------------------------------------------------------------------------- | profit or loss | | 0 | 2 099 | 0 | -------------------------------------------------------------------------------- | Cash and cash equivalents | | 21 817 | 24 853 | 21 109 | -------------------------------------------------------------------------------- | Total | | 42 838 | 60 590 | 45 689 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 2 | 56 939 | 75 634 | 60 180 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND | | | | | -------------------------------------------------------------------------------- | LIABILITIES | | | | | -------------------------------------------------------------------------------- | Equity attributable to | | | | | | equity | | | | | -------------------------------------------------------------------------------- | holders of the Parent | | | | | | Company | | | | | -------------------------------------------------------------------------------- | Share capital | | 8 010 | 8 010 | 8 010 | -------------------------------------------------------------------------------- | Share premium | | 6 498 | 6 498 | 6 498 | -------------------------------------------------------------------------------- | Other funds | 9 | 294 | -340 | 287 | -------------------------------------------------------------------------------- | Exchange differences | | 158 | 1 154 | 283 | -------------------------------------------------------------------------------- | Retained earnings | | 19 275 | 18 524 | 14 520 | -------------------------------------------------------------------------------- | Net profit for period | | -1 895 | 952 | 4 723 | -------------------------------------------------------------------------------- | Share of shareholders' | | | | | -------------------------------------------------------------------------------- | equity that belongs | | | | | -------------------------------------------------------------------------------- | to the owners of | | | | | -------------------------------------------------------------------------------- | the Parent company | | 32 340 | 34 798 | 34 321 | -------------------------------------------------------------------------------- | Total shareholders' equity | | 32 340 | 34 798 | 34 321 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Long-term liabilities | | | | | -------------------------------------------------------------------------------- | Provisions | | 142 | 392 | 289 | -------------------------------------------------------------------------------- | Deferred tax liabilities | | 652 | 662 | 599 | -------------------------------------------------------------------------------- | Long-term interest-bearing | | 8 231 | 277 | 8 232 | -------------------------------------------------------------------------------- | liabilities | | 9 025 | 1 331 | 9 120 | -------------------------------------------------------------------------------- | Total | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Provisions | | 2 100 | 1 825 | 2 251 | -------------------------------------------------------------------------------- | Pension obligations | | 166 | 240 | 173 | -------------------------------------------------------------------------------- | Short-term interest-bearing | | | | | -------------------------------------------------------------------------------- | liabilities | | 2 100 | 214 | 2 225 | -------------------------------------------------------------------------------- | Advance payments received | 4 | 3 234 | 22 631 | 3 475 | -------------------------------------------------------------------------------- | Current tax liabilities | | 0 | 1 179 | 79 | -------------------------------------------------------------------------------- | Trade and other payables | | 7 975 | 13 416 | 8 536 | -------------------------------------------------------------------------------- | Total | | 15 574 | 39 504 | 16 739 | -------------------------------------------------------------------------------- | Total liabilities | | 24 600 | 40 835 | 25 859 | -------------------------------------------------------------------------------- | TOTAL SHAREHOLDERS' EQUITY | | | | | -------------------------------------------------------------------------------- | AND LIABILITIES | | 56 939 | 75 633 | 60 180 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT | | | | -------------------------------------------------------------------------------- | (1 000 EUR) | 1.1.-31.3. | 1.1.-31.3. | 1.1.-31.12 | -------------------------------------------------------------------------------- | | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- | CASH FLOW FROM OPERATING | | | | -------------------------------------------------------------------------------- | ACTIVITIES | | | | -------------------------------------------------------------------------------- | Proceeds from sales | 15 203 | 37 619 | 100 611 | -------------------------------------------------------------------------------- | Proceeds from other | | | | -------------------------------------------------------------------------------- | operating income | 29 | 24 | 65 | -------------------------------------------------------------------------------- | Payments of operating expenses | -13 758 | -20 890 | -90 988 | -------------------------------------------------------------------------------- | Cash flow before financial | | | | -------------------------------------------------------------------------------- | items and taxes | 1 474 | 16 753 | 9 688 | -------------------------------------------------------------------------------- | Interests and other operating | | | | -------------------------------------------------------------------------------- | financial expenses paid | -102 | -340 | -224 | -------------------------------------------------------------------------------- | Interests and other income | | | | -------------------------------------------------------------------------------- | received | 171 | 464 | 828 | -------------------------------------------------------------------------------- | Dividends received | 75 | 18 | 133 | -------------------------------------------------------------------------------- | Income taxes paid | -614 | -372 | -3 522 | -------------------------------------------------------------------------------- | NET CASH FLOW FROM OPERATING | | | | -------------------------------------------------------------------------------- | ACTIVITIES (A) | 1 005 | 16 522 | 6 903 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW FROM INVESTING | | | | -------------------------------------------------------------------------------- | ACTIVITIES | | | | -------------------------------------------------------------------------------- | Capital expenditure in | | | | -------------------------------------------------------------------------------- | tangible and intangible | | | | -------------------------------------------------------------------------------- | assets | -175 | -852 | -3 201 | -------------------------------------------------------------------------------- | Purchases of available-for-sale | | | | -------------------------------------------------------------------------------- | as investments | 0 | 0 | -50 | -------------------------------------------------------------------------------- | Proceeds from sale of tangible | | | | -------------------------------------------------------------------------------- | and intangible assets | 4 | 0 | 171 | -------------------------------------------------------------------------------- | NET CASH FLOW FROM INVESTING | | | | -------------------------------------------------------------------------------- | ACTIVITIES (B) | -171 | -852 | -3 080 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH FLOW FROM FINANCING | | | | -------------------------------------------------------------------------------- | ACTIVITIES | | | | -------------------------------------------------------------------------------- | Repayments of long-term and | | | | -------------------------------------------------------------------------------- | short-term loan receivables | 0 | -2 | 0 | -------------------------------------------------------------------------------- | Increase of short-term | | | | -------------------------------------------------------------------------------- | liabilities | 0 | 1 | 0 | -------------------------------------------------------------------------------- | Repayments of short-term | | | | -------------------------------------------------------------------------------- | liabilities | -125 | 0 | -63 | -------------------------------------------------------------------------------- | Increase of long-term | | | | -------------------------------------------------------------------------------- | liabilities | 0 | 0 | 10 069 | -------------------------------------------------------------------------------- | Dividends paid | 0 | 0 | -4 005 | -------------------------------------------------------------------------------- | NET CASH FROM FINANCING | | | | -------------------------------------------------------------------------------- | ACTIVITIES (C) | -125 | -1 | 6 001 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET CHANGE IN CASH | | | | -------------------------------------------------------------------------------- | AND CASH EQUIVALENTS (A+B+C) | | | | -------------------------------------------------------------------------------- | increase (+)/decrease (-) | 709 | 15 669 | 9 824 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH AND CASH EQUIVALENTS | | | | -------------------------------------------------------------------------------- | AT THE BEGINNING OF THE PERIOD* | 21 109 | 11 284 | 11 284 | -------------------------------------------------------------------------------- | CASH AND CASH EQUIVALENTS | | | | -------------------------------------------------------------------------------- | AT THE END OF THE PERIOD* | 21 817 | 26 953 | 21 109 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CASH AND CASH EQUIVALENTS | | | | -------------------------------------------------------------------------------- | IN THE BALANCE SHEET | | | | -------------------------------------------------------------------------------- | AT THE END OF THE PERIOD | | | | -------------------------------------------------------------------------------- | Financial assets at fair | | | | -------------------------------------------------------------------------------- | value through profit or loss | 0 | 2 099 | 0 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 21 817 | 24 853 | 21 109 | -------------------------------------------------------------------------------- | TOTAL | 21 817 | 26 953 | 21 109 | -------------------------------------------------------------------------------- *Cash and cash equivalents comprise trading assets as well as cash and bank receivables, which will be due within the following three months' period. -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' | | | | EQUITY | | | -------------------------------------------------------------------------------- | (EUR 1 000) | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Share | Share | Other | Exchange | Retained | -------------------------------------------------------------------------------- | | capital | premium | funds | rate | earnings | -------------------------------------------------------------------------------- | | | | | diff. | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | Jan. 1, 2009 | 8 010 | 6 498 | 287 | 283 | 19 242 | -------------------------------------------------------------------------------- | Purchase of own | | | | | | -------------------------------------------------------------------------------- | shares | | | | | -138 | -------------------------------------------------------------------------------- | Repurchase of own | | | | | | -------------------------------------------------------------------------------- | shares, tax | | | | | 36 | | effect | | | | | | -------------------------------------------------------------------------------- | Equity-settled | | | | | | -------------------------------------------------------------------------------- | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | | | 7 | | | -------------------------------------------------------------------------------- | Total | | | | | | | comprehensive | | | | | | -------------------------------------------------------------------------------- | profit for the | | | | 10 | -1 895 | | period | | | | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | March 31, 2009 | 8 010 | 6 498 | 294 | 293 | 17 244 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | | | (continue) | | -------------------------------------------------------------------------------- | | To the | | Minority | | EQUITY | | | owners | | | | | -------------------------------------------------------------------------------- | | of the | | interest | | TOTAL | -------------------------------------------------------------------------------- | | Parent | | | | | -------------------------------------------------------------------------------- | | company | | | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | Jan. 1, 2009 | 34 321 | | 0 | | 34 321 | -------------------------------------------------------------------------------- | Purchase of own | | | | | | -------------------------------------------------------------------------------- | shares | -138 | | | | -138 | -------------------------------------------------------------------------------- | Repurchase of own | | | | | | -------------------------------------------------------------------------------- | shares, tax | 36 | | | | 36 | | effect | | | | | | -------------------------------------------------------------------------------- | Equity-settled | | | | | | -------------------------------------------------------------------------------- | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | 7 | | | | 7 | -------------------------------------------------------------------------------- | Total | | | | | | | comprehensive | | | | | | -------------------------------------------------------------------------------- | profit for the | -1 885 | | | | -1 885 | | period | | | | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | March 31, 2009 | 32 339 | | 0 | | 32 339 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' | | | | EQUITY | | | -------------------------------------------------------------------------------- | (EUR 1 000) | | | | | | -------------------------------------------------------------------------------- | | Share | Share | Other | Exchange | Retained | -------------------------------------------------------------------------------- | | capital | premium | funds | rate | earnings | -------------------------------------------------------------------------------- | | | | | diff. | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | Jan. 1, 2008 | 8 010 | 6 498 | 125 | 36 | 18 524 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | -------------------------------------------------------------------------------- | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | | | 22 | | | -------------------------------------------------------------------------------- | Total | | | | | | | comprehensive | | | | | | -------------------------------------------------------------------------------- | profit for the | | | -487 | 1 118 | 952 | | period | | | | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | March 31, 2008 | 8 010 | 6 498 | -340 | 1 154 | 19 476 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | | | (continue) | | -------------------------------------------------------------------------------- | | To the | | Minority | | EQUITY | | | owners | | | | | -------------------------------------------------------------------------------- | | of the | | interest | | TOTAL | -------------------------------------------------------------------------------- | | Parent | | | | | -------------------------------------------------------------------------------- | | company | | | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | Jan. 1, 2008 | 33 194 | | 0 | | 33 194 | -------------------------------------------------------------------------------- | Equity-settled | | | | | | -------------------------------------------------------------------------------- | share-based | | | | | | -------------------------------------------------------------------------------- | transactions | 22 | | | | 22 | -------------------------------------------------------------------------------- | Total | | | | | | | comprehensive | | | | | | -------------------------------------------------------------------------------- | profit for the | 1 583 | | | | 1 583 | | period | | | | | | -------------------------------------------------------------------------------- | EQUITY | | | | | | -------------------------------------------------------------------------------- | March 31, 2008 | 34 799 | | 0 | | 34 799 | -------------------------------------------------------------------------------- NOTES General information Raute Group (‘Group') is a globally operating technology corporation, whose core business consists of the production processes of veneer-based wood products. Project deliveries include complete mills, production lines, and single machines. Full-service technology services include spare part, maintenance, and modernization services, as well as services related to developing customers' businesses. The Group's Parent company, Raute Corporation, is a Finnish public limited liability company established in accordance with Finnish law (Business ID FI01490726). Its series A shares are quoted on NASDAQ OMX Helsinki Ltd., under Industrials. Raute Corporation is domiciled in Lahti, Finland. The address of its registered office is Rautetie 2, FI-15550 Nastola, Finland, and its postal address is P.O. Box 69, FI-15551 Nastola, Finland. A copy of the Consolidated financial statements is available online at www.raute.com or at the head office of the Parent company, Rautetie 2, FI-15550 Nastola, Finland. Raute Corporation's Board of Directors has on 29 April 2009 reviewed the Group's Interim financial report for January 1 - March 31, 2009, and decided to publish Raute Corporation's Interim financial report for January 1 - March 31, 2009, in compliance with this release. 1. Accounting principles Raute Corporation's Interim financial report has been prepared in accordance with the recognition and measurement policies set out in International Financial Reporting Standards but not all requirements of the IAS 34 standard have been followed in accounting. Raute Group's Interim financial statements for January 1 - March 31, 2009, included in the Interim financial report do not contain full notes and other information presented in the financial statements. Therefore, the Interim financial report should be read in conjunction with the Financial statements published for 2008. The figures presented in the Interim financial report have not been audited except the figures for the comparison period and financial statements for 2008. Figures in parentheses refer to the corresponding figures in the comparison year. All the monetary figures presented in this interim report are in thousands euros, unless otherwise stated. Due to the rounding of the figures in the financial statement tables, the sums of figures may deviate from the sum total presented in the table. The preparation of the Interim financial report according to the IFRS-standards requires management to use estimates and assumptions when adopting accounting principles. Because the forward-looking estimates and assumptions are based on management's best knowledge at the interim time, they comprise risks and uncertainties. The actual results may differ from these estimates. The Group has adopted following new standards and amendments to standards as of 1 January, 2009: - IFRS 8, Operating segments - IAS 1, Presentation of financial statement In other respects, the Group has followed the accounting principles described in the Financial statements for 2008. 2. Segment information Operational segment Continuing operations of Raute Group belong to the wood products technology segment. -------------------------------------------------------------------------------- | | 1.1.- | | 1.1.- | | 1.1.- | | -------------------------------------------------------------------------------- | | 31.3. | | 31.3. | | 31.12. | | -------------------------------------------------------------------------------- | Wood products technology | 2009 | | 2008 | | 2008 | | -------------------------------------------------------------------------------- | Net sales | 11 366 | | 23 910 | | 98 466 | | -------------------------------------------------------------------------------- | Operating profit | -2 179 | | 1 202 | | 6 341 | | -------------------------------------------------------------------------------- | Assets | 56 939 | | 75 634 | | 60 180 | | -------------------------------------------------------------------------------- | Liabilities | 24 600 | | 40 835 | | 25 859 | | -------------------------------------------------------------------------------- | Capital expenditure | 174 | | 852 | | 3 242 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets of the wood | | | | | | | | products | | | | | | | -------------------------------------------------------------------------------- | technology segment | | | | | | | -------------------------------------------------------------------------------- | by geographical location | | % | | % | | % | -------------------------------------------------------------------------------- | Europe | 53 086 | 93 | 68 914 | 91 | 55 616 | 92 | -------------------------------------------------------------------------------- | Russia | 425 | 1 | 1 058 | 1 | 782 | 1 | -------------------------------------------------------------------------------- | North America | 2 452 | 4 | 4 024 | 5 | 2 730 | 5 | -------------------------------------------------------------------------------- | South America | 43 | 0 | 40 | 0 | 36 | 0 | -------------------------------------------------------------------------------- | Others | 933 | 2 | 1 598 | 3 | 1 016 | 2 | -------------------------------------------------------------------------------- | TOTAL | 56 939 | 100 | 75 634 | 100 | 60 180 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital expenditure of the | | | | | | | | wood | | | | | | | -------------------------------------------------------------------------------- | products technology | | | | | | | | segment by | | | | | | | -------------------------------------------------------------------------------- | geographical location | | % | | % | | % | -------------------------------------------------------------------------------- | Europe | 169 | 97 | 553 | 65 | 2 775 | 86 | -------------------------------------------------------------------------------- | Russia | 2 | 1 | 1 | 0 | 2 | 0 | -------------------------------------------------------------------------------- | North America | 3 | 2 | 3 | 0 | 75 | 2 | -------------------------------------------------------------------------------- | South America | 0 | 0 | 5 | 1 | 19 | 1 | -------------------------------------------------------------------------------- | Others | 0 | 0 | 290 | 34 | 371 | 11 | -------------------------------------------------------------------------------- | TOTAL | 174 | 100 | 852 | 100 | 3 242 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 3. Proceeds from sales | | | | | | | -------------------------------------------------------------------------------- | | 1.1.- | | 1.1.- | | 1.1.- | | -------------------------------------------------------------------------------- | Net sales | 31.3. | | 31.3. | | 31.12. | | -------------------------------------------------------------------------------- | by market area | 2009 | % | 2008 | % | 2008 | % | -------------------------------------------------------------------------------- | Rest of Europe | 3 782 | 33 | 8 741 | 37 | 31 909 | 32 | -------------------------------------------------------------------------------- | Finland | 2 795 | 25 | 3 145 | 13 | 15 800 | 16 | -------------------------------------------------------------------------------- | Russia | 2 163 | 19 | 7 429 | 31 | 34 359 | 35 | -------------------------------------------------------------------------------- | Asia | 858 | 8 | 74 | 0 | 1 241 | 1 | -------------------------------------------------------------------------------- | South America | 840 | 7 | 1 258 | 5 | 4 311 | 4 | -------------------------------------------------------------------------------- | North America | 686 | 6 | 3 035 | 13 | 9 832 | 10 | -------------------------------------------------------------------------------- | Oceania | 226 | 2 | 142 | 1 | 701 | 1 | -------------------------------------------------------------------------------- | Others | 16 | 0 | 86 | 0 | 313 | 1 | -------------------------------------------------------------------------------- | TOTAL | 11 366 | 100 | 23 910 | 100 | 98 466 | 100 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 4. Long-term projects | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- | Net sales | | | | -------------------------------------------------------------------------------- | Net sales by percentage | | | | -------------------------------------------------------------------------------- | of completion | 9 088 | 20 315 | 80 749 | -------------------------------------------------------------------------------- | Other net sales | 2 278 | 3 595 | 17 717 | -------------------------------------------------------------------------------- | TOTAL | 11 366 | 23 910 | 98 466 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Project revenues entered | | | | -------------------------------------------------------------------------------- | as income from currently | | | | -------------------------------------------------------------------------------- | undelivered long-term | | | | -------------------------------------------------------------------------------- | projects recognized | | | | -------------------------------------------------------------------------------- | by percentage of completion | 65 247 | 112 011 | 85 487 | -------------------------------------------------------------------------------- | Amount of long-term project | | | | -------------------------------------------------------------------------------- | revenues not yet | | | | -------------------------------------------------------------------------------- | entered as income | 15 200 | 61 297 | 22 817 | -------------------------------------------------------------------------------- | Specification of combined | | | | -------------------------------------------------------------------------------- | asset and liability items: | | | | -------------------------------------------------------------------------------- | Accrued income | | | | -------------------------------------------------------------------------------- | corresponding to revenues | | | | -------------------------------------------------------------------------------- | by percentage of completion | 65 673 | 111 356 | 85 328 | -------------------------------------------------------------------------------- | Advances received from | | | | -------------------------------------------------------------------------------- | project customers | -56 549 | -95 477 | -73 509 | -------------------------------------------------------------------------------- | Project receivables included | | | | -------------------------------------------------------------------------------- | in current assets | 9 124 | 15 879 | 11 819 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Advance payments received | | | | -------------------------------------------------------------------------------- | in the Balance Sheet | 3 234 | 22 631 | 3 475 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 5. Number of personnel, persons | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- | - Effective, on average | 465 | 568 | 538 | -------------------------------------------------------------------------------- | - In books, on average | 556 | 580 | 585 | -------------------------------------------------------------------------------- | - In books, at the end of period, | 547 | 578 | 573 | -------------------------------------------------------------------------------- | - of which personnel working | | | | -------------------------------------------------------------------------------- | abroad | 128 | 140 | 136 | -------------------------------------------------------------------------------- 6. Income taxes The taxes in the income statement include the taxes corresponding to the Group companies' taxable profit for the financial period as well as tax adjustments for the previous years and the change in deferred taxes. Current tax based on the taxable income is calculated on taxable income using the tax rate in force in each country. -------------------------------------------------------------------------------- | 7. Research and development costs | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- | Research and development costs | | | | -------------------------------------------------------------------------------- | for the period | 755 | 862 | 4 375 | -------------------------------------------------------------------------------- | Depreciation of capitalized | | | | -------------------------------------------------------------------------------- | development costs | 129 | 92 | 549 | -------------------------------------------------------------------------------- | Recognized as assets | | | | -------------------------------------------------------------------------------- | in balance sheet | -123 | -226 | -667 | -------------------------------------------------------------------------------- | Research and development | | | | -------------------------------------------------------------------------------- | costs entered as expenses | | | | -------------------------------------------------------------------------------- | for the period | 761 | 728 | 4 257 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 8. Changes in Property, plant and | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- | equipment | | | | -------------------------------------------------------------------------------- | Carrying amount at the | | | | -------------------------------------------------------------------------------- | beginning of the period | 40 447 | 40 008 | 40 008 | -------------------------------------------------------------------------------- | Exchange rate differences | 173 | -130 | -1 484 | -------------------------------------------------------------------------------- | Additions | 16 | 587 | 2 170 | -------------------------------------------------------------------------------- | Disposals | 0 | 0 | -90 | -------------------------------------------------------------------------------- | Other reclassifications between | | | | -------------------------------------------------------------------------------- | items | 0 | 0 | -157 | -------------------------------------------------------------------------------- | Carrying amount at the end | | | | -------------------------------------------------------------------------------- | of the period | 40 635 | 40 465 | 40 447 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Accumulated depreciation and | | | | -------------------------------------------------------------------------------- | amortization at the beginning | | | | -------------------------------------------------------------------------------- | of the period | -29 272 | -29 014 | -29 014 | -------------------------------------------------------------------------------- | Exchange rate differences | -142 | -71 | 1 375 | -------------------------------------------------------------------------------- | Depreciation for the | | | | -------------------------------------------------------------------------------- | financial period | -411 | -401 | -1 632 | -------------------------------------------------------------------------------- | Accumulated depreciation and | | | | -------------------------------------------------------------------------------- | amortization at the end | | | | -------------------------------------------------------------------------------- | of the period | -29 825 | -29 487 | -29 272 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Book value at the beginning | | | | -------------------------------------------------------------------------------- | of the period | 11 175 | 10 993 | 10 993 | -------------------------------------------------------------------------------- | Book value at the end | | | | -------------------------------------------------------------------------------- | of the period | 10 811 | 10 979 | 11 175 | -------------------------------------------------------------------------------- 9. Share-based payments During the reporting period, Raute Corporation's Board of Directors conveyed on March 27, 2009 a total of 18,900 Raute's series A shares held by the Company gratuitously to 17 key persons of the Company's share-based incentive plan as reward payment for the earnings period 2006-2008. The effect of the share-based remunerations to the profit of Raute Group was EUR 110 thousand (49 thousand). -------------------------------------------------------------------------------- | 10. Other leases and operating | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- | lease liabilities | | | | -------------------------------------------------------------------------------- | Group as lessee | | | | -------------------------------------------------------------------------------- | Minimum rents paid on the basis of | | | | -------------------------------------------------------------------------------- | other non-cancellable leases: | | | | -------------------------------------------------------------------------------- | - Within one year | 274 | 120 | 273 | -------------------------------------------------------------------------------- | - After the period of more than 1 | | | | -------------------------------------------------------------------------------- | and less than 5 years | 465 | 343 | 464 | -------------------------------------------------------------------------------- | TOTAL | 739 | 463 | 737 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The Group has rented in a part of | | | | | its | | | | -------------------------------------------------------------------------------- | office and production premises. | | | | -------------------------------------------------------------------------------- | The rental agreements are made for | | | | -------------------------------------------------------------------------------- | the time being or for the | | | | | fixed-term. | | | | -------------------------------------------------------------------------------- | The agreements made for the | | | | | fixed-term | | | | -------------------------------------------------------------------------------- | include an option to extend the rental | | | -------------------------------------------------------------------------------- | period after the date of initial expiration. | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Minimum direct leasing rents | | | | -------------------------------------------------------------------------------- | paid on the basis of | | | | -------------------------------------------------------------------------------- | non-cancellable direct leasing | | | | -------------------------------------------------------------------------------- | contracts: | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | - Within one year | 12 | 58 | 12 | -------------------------------------------------------------------------------- | - After the period of more than 1 | | | | -------------------------------------------------------------------------------- | and less than 5 years | 2 | 46 | 2 | -------------------------------------------------------------------------------- | TOTAL | 14 | 104 | 14 | -------------------------------------------------------------------------------- 11. Pledged assets and contingent liabilities Raute Group has long-term bilateral credit facilities worth EUR 17 million (MEUR 15), of which EUR 14 million (MEUR 15) were unused on March 31, 2009. Raute Corporation has a EUR 10 million (MEUR 10) domestic commercial paper program, which is arranged by Nordea Bank Finland Plc. Within the limits of the program, the company can issue commercial papers maturing in less than one year. -------------------------------------------------------------------------------- | Pledged assets | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Debts and other contingent | | | | | liabilities | | | | -------------------------------------------------------------------------------- | have been secured by mortgages | | | | -------------------------------------------------------------------------------- | - Mortgages on real property | 134 | 134 | 134 | -------------------------------------------------------------------------------- | (Raute Corporation's Sickness | | | | | Fund) | | | | -------------------------------------------------------------------------------- | - Business mortgages (Credit | 10 000 | 10 000 | 10 000 | -------------------------------------------------------------------------------- | regulation agreements) | | | | -------------------------------------------------------------------------------- | Contingent liabilities and | | | | -------------------------------------------------------------------------------- | other liabilities | | | | -------------------------------------------------------------------------------- | Security for Parent company and | | | | -------------------------------------------------------------------------------- | subsidiaries | | | | -------------------------------------------------------------------------------- | - Bank guarantees | 9 688 | 17 685 | 8 928 | -------------------------------------------------------------------------------- | Other own liabilities | | | | -------------------------------------------------------------------------------- | Leasing and rent liabilities | | | | -------------------------------------------------------------------------------- | - For the current accounting | | | | -------------------------------------------------------------------------------- | period | 286 | 178 | 285 | -------------------------------------------------------------------------------- | - For subsequent accounting | | | | -------------------------------------------------------------------------------- | periods | 467 | 389 | 466 | -------------------------------------------------------------------------------- No pledges have been given or other commitments made on behalf of the company's management or shareholders. No loans are granted to the company's management and shareholders. -------------------------------------------------------------------------------- | 12. Currency derivatives | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- | Currency derivatives are used for hedging purposes. | | -------------------------------------------------------------------------------- | Nominal values of forward | | | | -------------------------------------------------------------------------------- | contracts in foreign currency | | | | -------------------------------------------------------------------------------- | Economic hedging | | | | -------------------------------------------------------------------------------- | - Related to financing | 3 425 | 3 245 | 3 186 | -------------------------------------------------------------------------------- | - Related to hedging of net sales | 111 | 2 598 | 532 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Fair values of forward contracts | | | | -------------------------------------------------------------------------------- | in foreign currency | | | | -------------------------------------------------------------------------------- | Economic hedging | | | | -------------------------------------------------------------------------------- | - Related to financing | 142 | 330 | 170 | -------------------------------------------------------------------------------- | - Related to the hedging | | | | -------------------------------------------------------------------------------- | of net sales | -2 | 65 | -8 | -------------------------------------------------------------------------------- 13. Own shares The company repurchased a total of 18,900 of the company's own shares under the authorization given by the Annual General Meeting on April 2, 2008. The acquisition price of the shares was the stock exchange price at the time of the acquisition. The acquisition of the shares did not have any significant impact on the holdings and voting rights in the company. All company shares held by the company were transferred on March 27, 2009 to the employees covered by the share-based remuneration system. The Parent company has repurchased own shares during the period as follows: -------------------------------------------------------------------------------- | Period | From Feb. 19 to | From March 1 to | -------------------------------------------------------------------------------- | | Feb. 28, 2009 | March 17, 2009 | -------------------------------------------------------------------------------- | Amount, pieces | 8 800 | 10 100 | -------------------------------------------------------------------------------- | Nominal value, euros | 2.00 | 2.00 | -------------------------------------------------------------------------------- | Consideration paid, | | | -------------------------------------------------------------------------------- | euros (average) | 7.00 | 7.12 | -------------------------------------------------------------------------------- | Consideration paid, | | | -------------------------------------------------------------------------------- | euros (range) | 6.90 - 7.15 | 7.00 - 7.20 | -------------------------------------------------------------------------------- 14. Events after the balance sheet date The Annual General Meeting decided according to the proposal of the Board of Directors to distribute the dividend EUR 0.70 per share be paid for series A and series K shares. -------------------------------------------------------------------------------- | GROUP KEY RATIOS | 1.1.-31.3. | 1.1.-31.3. | 1.1.-31.12. | -------------------------------------------------------------------------------- | | 2009 | 2008 | 2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on investment (ROI), % | -17.6 | 19.2 | 19.4 | -------------------------------------------------------------------------------- | Return on equity (ROE), % | -22.7 | 11.2 | 14.0 | -------------------------------------------------------------------------------- | Gearing, % | -35.5 | -76.0 | -31.0 | -------------------------------------------------------------------------------- | Equity ratio, % | 60.2 | 65.7 | 60.5 | -------------------------------------------------------------------------------- | Order book, MEUR | 17 | 65 | 24 | -------------------------------------------------------------------------------- | Order intake, MEUR | 4 | 33 | 67 | -------------------------------------------------------------------------------- | Exported portion of net sales, % | 75.4 | 86.8 | 84.0 | -------------------------------------------------------------------------------- | Change in net sales, % | -52.5 | -17.2 | -11.1 | -------------------------------------------------------------------------------- | Gross capital expenditure, MEUR | 0.2 | 0.9 | 3.2 | -------------------------------------------------------------------------------- | % of net sales | 1.5 | 3.6 | 3.3 | -------------------------------------------------------------------------------- | Research and development, MEUR | 0.8 | 1.0 | 4.9 | -------------------------------------------------------------------------------- | % of net sales | 6.6 | 4.0 | 5.0 | -------------------------------------------------------------------------------- | Earnings per share, EUR | | | | -------------------------------------------------------------------------------- | - undiluted | -0.47 | 0.24 | 1.18 | -------------------------------------------------------------------------------- | - diluted | -0.47 | 0.24 | 1.18 | -------------------------------------------------------------------------------- | Equity to share, EUR | 8.08 | 8.69 | 8.57 | -------------------------------------------------------------------------------- | Dividend per share | | | | -------------------------------------------------------------------------------- | series K shares, EUR | | | 0.70 | -------------------------------------------------------------------------------- | Dividend per share | | | | -------------------------------------------------------------------------------- | series A shares, EUR | | | 0.70 | -------------------------------------------------------------------------------- | Dividend per profit, % | | | 59.4 | -------------------------------------------------------------------------------- | Effective dividend return, % | | | 10.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share price at the end of | | | | -------------------------------------------------------------------------------- | the period, EUR | 7.06 | 14.97 | 6.40 | -------------------------------------------------------------------------------- | Number of shares | | | | -------------------------------------------------------------------------------- | - weighted average, 1 000 pcs | 3 998 | 4 005 | 4 005 | -------------------------------------------------------------------------------- | - diluted, 1 000 pcs | 3 998 | 4 005 | 4 005 | -------------------------------------------------------------------------------- CALCULATION OF KEY RATIOS Return on investment (ROI), % = Profit before tax + financial expenses ----------------------------------------------------------- x 100 Shareholders' equity + interest-bearing financial liabilities (average of the period) Return on equity (ROE), % = Profit/loss for the period ----------------------------------------------------------- x 100 Shareholders' equity (average of the period) Interest-bearing net liabilities = Interest-bearing liabilities ./. (cash and cash equivalents + financial assets at fair value through profit or loss) Equity ratio, % = Shareholders' equity ----------------------------------------------------------- x 100 Balance Sheet total ./. advances received Earnings per share, undiluted, euros = Profit for the period ----------------------------------------------------------- Equity issue-adjusted average number of shares during the period Earnings per share, diluted, euros = Diluted profit for the period ----------------------------------------------------------- Diluted equity issue-adjusted average number of shares Equity to share, euros = Share of shareholders' equity belonging to the owners of the Parent company ----------------------------------------------------------- Undiluted number of shares at the end of the period Dividend per share, euros = Distributed dividend for the period ----------------------------------------------------------- Undiluted number of shares at the end of the period Dividend per profit, % = Dividend per share ----------------------------------------------------------- x 100 Earnings per share Effective dividend return, % = Dividend per share ----------------------------------------------------------- x 100 Closing share price at the end of the period Price/earnings ratio (P/E ratio) = Closing share price at the end of the period ----------------------------------------------------------- Earnings per share Trend in share turnover, in volume and percentage figures (series A shares) The trend in turnover of shares is given as the number of shares traded during the period and as the percentage of the average undiluted number of traded shares relative to issued share stock during the period. Market value of capital stock = Undiluted number of shares at the end of the period(series A + series K shares) x closing price of the share on the last day of the period Gearing, % = Interest-bearing net financial liabilities ---------------------------------------------------------- x 100 Shareholders' equity -------------------------------------------------------------------------------- | THE DEVELOPMENT OF QUARTERLY RESULTS | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Q 1 | Q 4 | Q 3 | Q 2 | Rolling | Rolling | -------------------------------------------------------------------------------- | | 2009 | 2008 | 2008 | 2008 | 1.4.2008 | 1.4.2007 | -------------------------------------------------------------------------------- | | | | | | - | - | -------------------------------------------------------------------------------- | | | | | | 31.3.2009 | 31.3.2008 | -------------------------------------------------------------------------------- | NET SALES | 11 366 | 18 619 | 25 227 | 30 710 | 85 922 | 105 827 | -------------------------------------------------------------------------------- | Other operating | | | | | | | -------------------------------------------------------------------------------- | income | 32 | 14 | 29 | 26 | 101 | 450 | -------------------------------------------------------------------------------- | Increase (+) or | | | | | | | -------------------------------------------------------------------------------- | decrease (-) in | | | | | | | -------------------------------------------------------------------------------- | inventories of | | | | | | | -------------------------------------------------------------------------------- | finished goods | | | | | | | -------------------------------------------------------------------------------- | and work | | | | | | | -------------------------------------------------------------------------------- | in progress | 252 | -108 | -65 | 381 | 460 | -8 | -------------------------------------------------------------------------------- | Materials and | | | | | | | -------------------------------------------------------------------------------- | services | 5 171 | 8 218 | 13 735 | 17 293 | 44 416 | 55 663 | -------------------------------------------------------------------------------- | Expenses | | | | | | | -------------------------------------------------------------------------------- | from employee | | | | | | | -------------------------------------------------------------------------------- | benefits | 6 132 | 7 062 | 6 541 | 7 858 | 27 592 | 28 999 | -------------------------------------------------------------------------------- | Depreciation, | | | | | | | -------------------------------------------------------------------------------- | amortization | | | | | | | -------------------------------------------------------------------------------- | and impairment | | | | | | | -------------------------------------------------------------------------------- | charges | 674 | 692 | 699 | 720 | 2 785 | 2 642 | -------------------------------------------------------------------------------- | Other operating | | | | | | | -------------------------------------------------------------------------------- | expenses | 1 851 | 2 347 | 1 988 | 2 543 | 8 729 | 11 045 | -------------------------------------------------------------------------------- | Total operating | | | | | | | -------------------------------------------------------------------------------- | expenses | 13 828 | 18 318 | 22 962 | 28 413 | 83 522 | 98 350 | -------------------------------------------------------------------------------- | OPERATING | -2 179 | 206 | 2 228 | 2 704 | 2 960 | 7 919 | | PROFIT | | | | | | | -------------------------------------------------------------------------------- | % of net sales | -19 | 1 | 9 | 9 | 3 | 7 | -------------------------------------------------------------------------------- | Financial | 250 | 550 | 75 | 190 | 1 065 | 801 | | income | | | | | | | -------------------------------------------------------------------------------- | Financial | -204 | -448 | 26 | 22 | -603 | -570 | | expenses | | | | | | | -------------------------------------------------------------------------------- | PROFIT BEFORE | -2 132 | 309 | 2 329 | 2 916 | 3 422 | 8 150 | | TAX | | | | | | | -------------------------------------------------------------------------------- | % of net sales | -19 | 2 | 9 | 9 | 4 | 8 | -------------------------------------------------------------------------------- | Income taxes | 236 | -131 | -733 | -920 | -1 547 | -2 231 | -------------------------------------------------------------------------------- | PROFIT FOR THE | | | | | | | -------------------------------------------------------------------------------- | PERIOD | -1 895 | 177 | 1 597 | 1 996 | 1 875 | 5 919 | -------------------------------------------------------------------------------- | % of net sales | -17 | 1 | 6 | 6 | 2 | 6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | | | -------------------------------------------------------------------------------- | Equity holders | | | | | | | | of | | | | | | | -------------------------------------------------------------------------------- | the Parent | -1 895 | 177 | 1 597 | 1 996 | 1 875 | 5 919 | | company | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per | | | | | | | -------------------------------------------------------------------------------- | share, EUR | | | | | | | -------------------------------------------------------------------------------- | Undiluted | | | | | | | -------------------------------------------------------------------------------- | earnings | | | | | | | -------------------------------------------------------------------------------- | per share | -0.47 | 0.04 | 0.40 | 0.50 | | | -------------------------------------------------------------------------------- | Diluted | | | | | | | | earnings | | | | | | | -------------------------------------------------------------------------------- | per share | -0.47 | 0.04 | 0.40 | 0.50 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shares, | | | | | | | -------------------------------------------------------------------------------- | 1 000 pcs | | | | | | | -------------------------------------------------------------------------------- | Adjusted | | | | | | | -------------------------------------------------------------------------------- | average number | | | | | | | -------------------------------------------------------------------------------- | of shares | 3 998 | 4 005 | 4 005 | 4 005 | | | -------------------------------------------------------------------------------- | Adjusted | | | | | | | -------------------------------------------------------------------------------- | average number | | | | | | | -------------------------------------------------------------------------------- | of shares, | | | | | | | -------------------------------------------------------------------------------- | diluted | 3 998 | 4 005 | 4 005 | 4 005 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 20 LARGEST SHAREHOLDERS AT | Number of | Number of | | -------------------------------------------------------------------------------- | 31 MARCH, 2009 | series K | series A | | -------------------------------------------------------------------------------- | | shares | shares | Total | -------------------------------------------------------------------------------- | | (20 votes | (1 vote | number | -------------------------------------------------------------------------------- | | per share) | per share) | of shares | -------------------------------------------------------------------------------- | 1. Sundholm Göran | | 525 000 | 525 000 | -------------------------------------------------------------------------------- | 2. Hietala Pekka Tapani | | 181 900 | 181 900 | -------------------------------------------------------------------------------- | 3. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 | -------------------------------------------------------------------------------- | 4. Mustakallio Kari Pauli | 60 480 | 60 009 | 120 489 | -------------------------------------------------------------------------------- | 5. Suominen Pekka Matias | 48 000 | 64 159 | 112 159 | -------------------------------------------------------------------------------- | 6. Suominen Tiina Sini-Maria | 48 000 | 62 316 | 110 316 | -------------------------------------------------------------------------------- | 7. Kirmo Kaisa Marketta | 50 280 | 58 362 | 108 642 | -------------------------------------------------------------------------------- | 8. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | -------------------------------------------------------------------------------- | 9. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | -------------------------------------------------------------------------------- | 10. Särkijärvi Riitta | 60 480 | 22 009 | 82 489 | -------------------------------------------------------------------------------- | 11. Mustakallio Mika | 39 750 | 42 670 | 82 420 | -------------------------------------------------------------------------------- | 12. Mustakallio Risto | 42 240 | 35 862 | 78 102 | -------------------------------------------------------------------------------- | 13. Mustakallio Ulla Sinikka | 47 240 | 30 862 | 78 102 | -------------------------------------------------------------------------------- | 14. Sr Arvo Finland Value | 0 | 63 042 | 63 042 | -------------------------------------------------------------------------------- | 15. Mustakallio Marja Helena | 42 240 | 20 662 | 62 902 | -------------------------------------------------------------------------------- | 16. Kirmo Lasse Antti | 30 000 | 26 200 | 56 200 | -------------------------------------------------------------------------------- | 17. Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 | -------------------------------------------------------------------------------- | 18. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 | -------------------------------------------------------------------------------- | 19. Mustakallio Kai Henrik | 47 420 | 6 994 | 54 414 | -------------------------------------------------------------------------------- | 20. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | -------------------------------------------------------------------------------- | TOTAL | 697 330 | 1 493 937 | 2 191 267 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share of total amount of shares, % | 70.4 | 49.6 | 54.7 | -------------------------------------------------------------------------------- | Share of total voting rights, % | 70.4 | 49.6 | 67.6 | -------------------------------------------------------------------------------- | Administrative registered | | 64 647 | 64 647 | -------------------------------------------------------------------------------- | Other shareholders | 293 831 | 1 455 013 | 1 748 844 | -------------------------------------------------------------------------------- | TOTAL | 991 161 | 3 013 597 | 4 004 758 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | MANAGEMENT'S SHAREHOLDING | 98 990 | 102 738 | 201 728 | -------------------------------------------------------------------------------- | Share of total amount of shares, % | 10.0 | 3.4 | 5.0 | -------------------------------------------------------------------------------- | Share of total voting rights, % | 10.0 | 3.4 | 9.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHARE INFORMATION | 31.3.2009 | 31.3.2008 | 31.12.2008 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Number of shares | | | | -------------------------------------------------------------------------------- | - Series K shares, ordinary shares | | | | -------------------------------------------------------------------------------- | (20 votes/share) | 991 161 | 991 161 | 991 161 | -------------------------------------------------------------------------------- | - Series A shares | | | | -------------------------------------------------------------------------------- | (1 vote/share) | 3 013 597 | 3 013 597 | 3 013 597 | -------------------------------------------------------------------------------- | Total | 4 004 758 | 4 004 758 | 4 004 758 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Development in share price | | | | -------------------------------------------------------------------------------- | (series A shares) | | | | -------------------------------------------------------------------------------- | Trading of shares, pcs | 144 473 | 102 557 | 392 693 | -------------------------------------------------------------------------------- | Trading of shares, MEUR | 1.0 | 1.4 | 4.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share price of series A shares | | | | -------------------------------------------------------------------------------- | At the end of reporting period, | 7.06 | 14.97 | 6.40 | | EUR | | | | -------------------------------------------------------------------------------- | Highest price during | | | | -------------------------------------------------------------------------------- | the reporting period, EUR | 7.61 | 14.98 | 15.20 | -------------------------------------------------------------------------------- | Lowest price during | | | | -------------------------------------------------------------------------------- | the reporting period, EUR | 6.50 | 12.80 | 6.24 | -------------------------------------------------------------------------------- | Average price during | | | | -------------------------------------------------------------------------------- | the reporting period, EUR | 6.97 | 14.06 | 12.37 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Market value of capital stock | | | | -------------------------------------------------------------------------------- | - Series K shares, MEUR* | 7.0 | 14.8 | 6.3 | -------------------------------------------------------------------------------- | - Series A shares, MEUR | 21.3 | 45.1 | 19.3 | -------------------------------------------------------------------------------- | Total, MEUR | 28.3 | 60.0 | 25.6 | -------------------------------------------------------------------------------- *Series K shares valued at the value of series A shares at the end of the reporting period. RAUTE CORPORATION Board of Directors PRESS CONFERENCE ON APRIL 29, 2009 AT 2 P.M.: A press conference will be organized for analysts and the media on April 29, 2009 at 2 p.m. at Scandic Simonkenttä Hotel, Roba cabinet, address Simonkatu 9, Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President and CEO, and Mrs. Arja Hakala, CFO. NEXT INTERIM REPORT: Raute Corporation's interim report for the period January 1-June 30, 2009 will be published on August 4, 2009. FURTHER INFORMATION: Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560, mobile +358 400 814 148 Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293, mobile +358 400 710 387 DISTRIBUTION: NASDAQ OMX Helsinki Ltd, main media, www.raute.com RAUTE IN BRIEF: Raute is a technology company serving the wood products industry worldwide. Its most important customers are the plywood and LVL industries. The company is one of the world's leading suppliers of mill-scale projects to these customer industries. The company's total service concept also includes technology services, which cover the entire life-cycle of the investment. Raute's head office and main production plant are in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Jyväskylä and Kajaani, Finland. Net sales in 2008 were EUR 98.5 million and the number of personnel 573. More information on the company can be found at www.raute.com.
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