2012-11-06 07:00:00 CET
2012-11-06 07:00:13 CET
REGULATED INFORMATION
HKScan Oyj - Interim report (Q1 and Q3)
HKScan Group’s interim report 1 January – 30 September 2012: Modest recovery continues
HKScan Corporation INTERIM REPORT
6 November 2012 at 8:00 AM
HKScan Group's interim report 1 January - 30 September 2012: Modest recovery
continues
- Group net sales in January-September 2012 totalled EUR 1 873.3 million (EUR 1
841.4 m for the corresponding period in 2011), growing by 2 per cent.
- Group EBIT came to EUR 19.9 million (EUR 22.1 m) and was 1.1 per cent (1.2%)
of net sales. The EBIT shortfall compared to the corresponding period in 2011
relates to losses during the first six months in the Swedish business. In
Denmark the fire at the Vinderup plant in early June slowed sales and good
business development. The businesses in Finland, Baltics and Poland recorded
positive progress and they improved their performance compared to the previous
year.
- Group cash flow before debt service was EUR 26.1 million (EUR 9.6 million),
and group net financial expenses stood at EUR -24.4 million (EUR -21.9 m)
based mainly on higher loan margins.
HKScan maintains the outlook for 2012 which stated that due to the weak
development of business in Sweden, there is a risk that the Group's EBIT will
come out below the level of 2011. However, including the estimated
non-recurring income of fire insurance compensation is very likely to improve
the reported EBIT compared to 2011.
HKSCAN GROUP
----------------------------------
(EUR million) Q3/2012 Q3/2011 Q1-Q3/2012 Q1-Q3/2011 2011
--------------------------------------------------
---------------------------------------------------------------------------
Net sales 623.0 618.1 1 873.3 1 841.4 2 491.3
---------------------------------------------------------------------------
EBIT 15.0 14.0 19.9 22.1 39.6
---------------------------------------------------------------------------
- EBIT margin, % 2.4 2.3 1.1 1.2 1.6
---------------------------------------------------------------------------
Profit/loss before taxes 6.9 5.6 -2.5 2.2 11.3
---------------------------------------------------------------------------
Earnings per share, EUR 0.11 0.09 0.01 0.05 0.18
---------------------------------------------------------------------------
GROUP OVERVIEW: JULY-SEPTEMBER 2012
The HKScan Group's business during the third quarter of 2012 developed
positively. The businesses in Denmark, Finland, the Baltics and Poland improved
their EBITs compared to the corresponding period in 2011. Business in Sweden
also recovered from the losses in the first six months and reported a small
profit. As for the market area Denmark, the fire at the Vinderup plant at the
beginning of June caused a disturbance in sales, production and business
development. The rebuilding work after the fire has been proceeding according
to plan and full production is expected to be started in early December.
Group volumes were slightly lower than during the previous year due to lower
demand because of rainy weather and shortage of cattle. Raw material prices
kept rising driven by the bad crops and significantly higher feed prices.
At the beginning of August, the Group announced its revised strategy, in which
the focus is to improve profitability by building up brand value and demand,
improving operational efficiency, actively managing the dynamics of future
business and developing its capital structure and Group reporting. HKScan also
announced changes in the Group's management and operating model in order to
harmonise, simplify and enhance internal processes.
The organisations of the Away from Home (AfH) Business associated with the new
operating model announced by HKScan in August and the Group-level functions,
such as Technology & Operations Development, were established during the third
quarter. Away from Home (AfH) looks after the Business-to-Business (B2B), Food
Service, industrial, export and import businesses in all HKScan's markets.
Technology & Operations Development is responsible for raw material and other
material purchases, quality processes, development of the order-supply chain
and production technology, investments, IT systems, coordination and
development of innovation operations, as well as responsibility issues.
At the beginning of April, the Group launched an extensive development
programme to be implemented by the end of 2013. The target is to achieve annual
profit improvements exceeding EUR 20 million and a considerable reduction in
invested capital. The programme covers the Group's business and operations in
Finland, the Baltics, Sweden and Denmark. The identified profitability
improvement opportunities are mainly focused on reaping group synergies in
group-wide cooperation in product mix and offerings, economies of scale in
sourcing, restructuring and simplifying processes and organisations, fixed cost
savings, improving demand and supply planning, management of trade receivables
and payables as well as divestments of non-core business related assets.
As a part of the Group development programme, a specific plan concerning
restructuring of the business in Sweden was published in August. The Swedish
restructuring plan was further specified in early October. Overall the Group
development programme is moving ahead as planned.
MARKET AREA: FINLAND
--------------------------
(EUR million) Q3/2012 Q3/2011 Q1-Q3/2012 Q1-Q3/2011 2011
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 205.5 199.0 615.9 594.9 812.4
-----------------------------------------------------------------
EBIT 5.6 4.8 11.0 4.9 12.1
-----------------------------------------------------------------
- EBIT margin, % 2.7 2.4 1.8 0.8 1.5
-----------------------------------------------------------------
The profitability in Finland continued to improve in the third quarter compared
with the corresponding period in 2011. Net sales in the quarter were EUR 205.5
million (EUR 199.0 m). EBIT was EUR 5.6 million (EUR 4.8 m).
The seasonal sales in summer succeeded well, though the cool and rainy weather
hampered the demand. Supply of Finnish beef continued to be scarce, affecting
especially the production volumes of minced meat.
In Finland HK Rypsiporsas®, the Rapeseed Pork, has continued to sell well.
There are currently already more than 130 different products, meats and
processed meats made from Rypsiporsas® available for consumers. One example of
the new Rypsiporsas based products is the A class HK Sininen Lenkki® launched
on the market this autumn.
Measures to increase operating efficiency have advanced according to plan in
Finland. The contract reform concerning pork procurement was finalised during
the third quarter.
In August the company announced that Järvi-Suomen Portti would adjust its
operations through cost-savings and temporary lay-offs.
MARKET AREA: BALTICS
--------------------------
(EUR million) Q3/2012 Q3/2011 Q1-Q3/2012 Q1-Q3/2011 2011
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 44.3 44.9 131.6 128.3 173.3
-----------------------------------------------------------------
EBIT 3.6 3.4 7.4 7.0 9.8
-----------------------------------------------------------------
- EBIT margin, % 8.1 7.6 5.7 5.4 5.6
-----------------------------------------------------------------
In the Baltics, net sales totalled EUR 44.3 million (EUR 44.9 m) in the third
quarter. EBIT for the quarter was EUR 3.6 million (EUR 3.4 m).
Seasonal sales in the Baltics were on the level of the previous year. Sales of
HKScan's local brands developed well, enhancing the product offering and
supporting positive development in profitability. The most successful sales
were Rakvere's barbeque sausage portfolio and Tallegg's marinated chicken
products. In addition to these, a positive sales development could also be
noted for Jelgava salamis in Latvia and Rakvere‘s new “Lihakas” products in
Estonia.
Sales margins have been successfully maintained. Several efficiency improvement
projects have been launched in the Baltics. The main ones include a renovation
project for meat processing in Tallegg, and centralisation of warehousing
operations as well as energy saving projects in both pig primary production and
Rakvere's meat production.
MARKET AREA: SWEDEN
--------------------------
(EUR million) Q3/2012 Q3/2011 Q1-Q3/2012 Q1-Q3/2011 2011
-------------------------------------------------------------------
-------------------------------------------------------------------
Net sales 248.7 254.7 762.6 770.1 1 045.7
-------------------------------------------------------------------
EBIT 3.2 5.4 -6.5 9.7 17.2
-------------------------------------------------------------------
- EBIT margin, % 1.3 2.1 -0.9 1.3 1.6
-------------------------------------------------------------------
In Sweden, net sales in the third quarter amounted to EUR 248.7 million (EUR
254.7 m). EBIT for the period was positive, but lower than in the corresponding
period last year: EUR 3.2 million (EUR 5.4 m).
Prices of imported meat rose rapidly during the quarter supporting the local
meat raw material demand and increasing sales price development.
The barbeque season sales were lower than in the same period in 2011. Sales of
cold cuts, however, are growing strongly, especially products under the Pärsons
brand performed well. In September, the Swedish Rapeseed Pork, Svensk Rapsgris,
was successfully launched to retail.
HKScan has announced a plan concerning restructuring of the business in Sweden.
The aim is to streamline the structure of the business in line with the Group's
new operating model. As a result the structure in Sweden will be harmonised and
rearranged to one operating model and management entity. Scan and Pärsons,
which have previously operated as business units, will continue as brands in
HKScan's business in Sweden. The aim is to continue to further develop the
brands and product offering, as well as raise the added-value of the products.
The plan is to transfer the production of semi-finished products from
Strövelstorp to the production facilities located in Halmstad and Kristianstad,
Sweden. Once implemented, the plan will mean the discontinuation of production
operations at the Strövelstorp plant, and a workforce reduction of
approximately 100 white-collar employees and 50 blue-collar employees.
In the stock release published on 8 October, HKScan specified the above
efficiency plan of the business in Sweden by announcing further actions. One
such action was the shut-down of the cold cut production unit in Bjaeverskov,
Denmark at the end of September. Due to the pork meat production decline in
Sweden, it is additionally intended that the nightshift of pork cutting in
Kristianstad will be discontinued, which means that cutting operations will
work in one shift. Employer-employee negotiations concerning the employment
termination of 55 people were commenced on 8 October 2012 in Kristianstad. If
implemented, this plan means that in addition to the employment termination of
about 150 people, announced previously, the number of staff will be reduced by
about 70 people more.
The restructuring plans of the business in Sweden aim to improve the result by
EUR 10 million before one-off costs, and the plan is to implement the changes
by the middle of 2013. The matter is also handled under “Events after the
reporting period” in this report. The strategic review continues in Sweden.
MARKET AREA: DENMARK
--------------------------
(EUR million) Q3/2012 Q3/2011 Q1-Q3/2012 Q1-Q3/2011 2011
-----------------------------------------------------------------
-----------------------------------------------------------------
Net sales 51.6 60.4 160.8 173.8 228.1
-----------------------------------------------------------------
EBIT 0.9 -1.3 2.6 -2.4 -3.7
-----------------------------------------------------------------
- EBIT margin, % 1.8 -2.2 1.6 -1.4 -1.6
-----------------------------------------------------------------
In Denmark, net sales in the third quarter were EUR 51.6 million (EUR 60.4. m).
EBIT for the period came in at EUR 0.9 million (EUR -1.3 m).
Sales of fresh poultry products to the Danish market are recovering after the
fire, but the corresponding sales launched on the Swedish market in spring will
need a restart. The rebuilding of the Vinderup production plant is proceeding
well and production is planned to be started in early December.
The slaughtering volumes of poultry at the moment are about 80% of the normal.
Recent raw material price increases haven't yet been passed fully to sales
prices, which together with lowered volume due to the fire started affecting
the profitability negatively in the third quarter.
The insurances are estimated to cover both the property damages and the losses
and extra costs caused by the business interruption. It is estimated that the
total damages will be more than EUR 50 million. So far a total of EUR 18.4
million in insurance compensation has been booked on the basis of the property
and business interruption insurance policy in other operating income. Insurance
claims posted in the reporting period are based on received insurance payments
reflecting occurred costs, write-downs and estimated loss of margin. The
current rebuilding work in progress will mean recording higher capital
expenditures during the last quarter.
MARKET AREA: POLAND
---------------------------------
(EUR million) Q3/2012 Q3/2011 Q1-Q3/2012 Q1-Q3/2011 2011
------------------------------------------------------------------------------
*)
------------------------------------------------------------------------------
Net sales 88.7 77.5 256.0 225.0 298.9
------------------------------------------------------------------------------
EBIT 3.6 3.4 11.5 9.2 12.7
------------------------------------------------------------------------------
- EBIT margin, % 4.0 4.4 4.5 4.1 4.2
------------------------------------------------------------------------------
*) The figures refer to HKScan's share (50%) of the Sokolów Group's figures.
In Poland, net sales in the third quarter totalled EUR 88.7 million (EUR 77.5
m), meaning a growth of 14 per cent. EBIT for the period was EUR 3.6 million
(EUR 3.4 m).
Net sales of Sokolów continued to develop well as a result of increased sales
of processed products, successful new product launches and the high recognition
of the Sokolów brand. Export sales have been strong, though strengthened Polish
currency has reduced the margin. The price competition in modern retail chains
in Poland continues to be fierce. Polish primary production is also weakening
and consolidating. Livestock imports are used to some extent to balance the
shortfall.
CHANGES IN ORGANISATION
On 31 October 2012 HKScan published a stock release on following changes: Göran
Holm (54) has been appointed Executive Vice President of HKScan's consumer
business in Scandinavia and a member of the Management Team of HKScan as of 3
December 2012. Göran Holm will report to CEO Hannu Kottonen.
As announced earlier, director Denis Mattsson will retire at the end of 2012.
Magnus Lindholm will continue as director of operative activities of HKScan
Sweden.
Sirpa Laakso, Executive Vice President, HR, will leave HKScan's employment. A
new Executive Vice President, HR, will be appointed at a later date.
Markku Krutsin (48), M.Sc. (Econ.), has been appointed Senior Vice President,
Innovation and Technology, at HKScan's Technology & Operations Development as
of 1 November 2012. Krutsin will report to Aki Laiho, COO responsible for the
development of HKScan's technology and production.
Marja-Leena Dahlskog, M.Sc. (Econ.), was appointed Senior Vice President (SVP),
Communications of HKScan Group at the beginning of October. She will assume her
duties on 3 December 2012.
HKSCAN'S MANAGEMENT TEAM
As of 3 December 2012, the Management Team of HKScan comprises as follows:
Hannu Kottonen, CEO; Aki Laiho, COO responsible for the development of
technology and production; Tuomo Valkonen, CFO; Anne Mere, Executive Vice
President responsible for the consumer business in Finland and the Baltics;
Göran Holm, Executive Vice President responsible for the consumer business in
Scandinavia; Jukka Nikkinen, Executive Vice President of the Away from Home
Business; and Markku Suvanto, Administrative and Legal Director of HKScan who
also acts as the Management Group's secretary.
Appointments in HKScan's Management Team and senior management which were made
in conjunction with the strategy update and operating model changes were
announced in the stock exchange release on 10 August 2012.
CHANGES TO THE CORPORATE STRUCTURE
HKScan announced on 29 June 2012 that it will clarify and simplify its
corporate structure in Finland in order to harmonise the Group's operational
policies and to streamline its internal administration. The merger of HKScan
Finland Oy and its wholly owned subsidiaries (Järvi-Suomen Portti Oy and
Helanderin Teurastamo Oy) is proceeding according to plan. The aim is that the
mergers will be completed by 31 December 2012.
On 10 August 2012, HKScan announced its aim to clarify and streamline the
structure of the business in Sweden in line with the Group's operating model.
According to the plan, the wholly-owned subsidiaries belonging to the subgroup
in Sweden will be merged into a single legal entity. Scan and Pärsons, which
have previously operated as business units, will continue as brands in HKScan's
business in Sweden.
In addition, HKScan will streamline the structure of production and revamp the
organisation. When the plan is implemented, HKScan's commercial, production and
logistics organisations and other operations supporting the business in Sweden
will be merged.
INVESTMENTS
The Group's production-related gross investments in the third quarter totalled
EUR 7.1 million (EUR 9.1 m) and in January-September EUR 40.7 million (EUR 41.5
m). They were divided by market area as follows:
(EUR million) Q3/2012 Q3/2011 Q1-Q3/2012 Q1-Q3/2011 2011
--------------------------------------------------------------
Finland 0.6 2.0 7.1 12.3 17.3
--------------------------------------------------------------
Baltics 3.6 2.2 8.3 8.5 12.4
--------------------------------------------------------------
Sweden 0.2 1.0 5.2 6.7 8.9
--------------------------------------------------------------
Denmark 1) 0.6 1.5 8.4 4.3 7.8
--------------------------------------------------------------
Poland 2) 2.2 2.5 11.9 9.7 14.5
--------------------------------------------------------------
Total 7.1 9.1 40.7 41.5 61,0
--------------------------------------------------------------
---------------------------------------------------------
1) Excluding the work in progress of the Vinderup plant.
2) HKScan's share (50%) of Sokolów investments.
In Finland, the investments concerned the repair and maintenance of the
production lines. In Sweden, the investments were made in process development
both in Kristianstad and Linköping, and the Svensk Rapsgris concept in Skara.
In the market area of the Baltics, the investments involved energy savings and
primary production as well the programme for restructuring of the production at
Tallegg. Additionally, the investment in the production line of cooked minced
meat will enable an increase in related sales in all the Baltic markets. In
Poland, the investments in the third quarter included four new production lines
and the developing of processing facilities at the Kolo plant.
FINANCING
The Group's interest-bearing debt at the end of September stood at EUR 524.4
million (EUR 506.9 m). Gross interest-bearing debt at the turn of the year was
EUR 504.2 million. The growth in debt compared to the situation at the turn of
the year is attributable to currency changes, paid dividends, tying up of
working capital and repurchase of HKScan own shares. Compared with the
corresponding period in 2011, the debt increased due to currency changes and
the above mentioned repurchase of own shares, which was earlier booked as a
liability in the balance sheet.
Group net financial expenses in January-September totalled EUR -24.4 million
(EUR -21.9 m). Net financial expenses increased compared with the previous year
due to higher debt, higher margins on loans and non-recurring expenses for
financing arrangements. Because of interest rate hedging, decreased general
interest levels have not significantly lowered the financial expenses.
Undrawn committed credit facilities on 30 September 2012 stood at EUR 180.0
million (EUR 178.0 m). In addition, the Group had other undrawn overdraft and
other facilities of EUR 35.1 million (EUR 31.8 m). The EUR 200 million
commercial paper programme had been drawn to the amount of EUR 135.0 million
(EUR 73.0 m).
The equity ratio at the end of September was 33.2 per cent (33.3%). The equity
ratio at the turn of the year was 33.6 per cent.
SHARES
At the end of September 2012, the HKScan Group's share capital stood at EUR 66
820 528.10. The Group's total number of shares issued was 55 026 522, and was
divided into two share series as follows: A Shares, 49 626 522 (90.19% of the
total number of shares) and K Shares 5 400 000 (9.81%). The A Shares are quoted
on the NASDAQ OMX Helsinki. The K Shares are held by LSO Osuuskunta (4 735 000
shares) and Sveriges Djurbönder ek.för. (665 000 shares) and are not listed. At
the end of September the company held 1 053 734 A Shares as treasury shares.
HKScan's market capitalisation at the end of September 2012 stood at EUR 197.5
million. It breaks down as follows: The Series A shares had a market value of
EUR 178.2 million and the unlisted Series K shares a calculated market value of
EUR 19.4 million.
In January-September 2012, a total of 6 615 237 of the company's shares with a
total value of EUR 31 186 607 were traded. The highest price quoted in the
period under review was EUR 6.40 and the lowest EUR 3.17. The median price was
EUR 4.64. At the end of September, the closing price was EUR 3.59.
At the end of September 2012, foreign and nominee-registered shareholders held
14.7 per cent of the company's shares.
HKScan has a market making agreement with FIM Pankkiiriliike Oy which meets the
requirements of NASDAQ OMX's Liquidity Providing (LP) operation.
REPURCHASE OF OWN SHARES
On 6 August 2012, HKScan acquired 1 000 000 HKScan series A shares for EUR 8
000 000 (at EUR 8.00/share). The acquisition pertains to the share purchase
agreement of the Danish company Rose Poultry A/S, announced on 9 September 2010
and 4 June 2012.
BOARD OF DIRECTORS' AUTHORISATIONS
The Annual General Meeting of HKScan Corporation held on 25 April 2012 gave the
Board authorisations to decide on share issues as well as issue option rights
and other special rights entitling to shares, to decide on the purchase of the
Company's own Series A shares and/or on the acceptance of the Company's own
Series A shares as a pledge, and to decide on the transfer of the Company's own
shares.
The authorisations are described in more detail in the stock release on the AGM
published on 25 April 2012.
During January-September 2012, the Board exercised the above authorisations in
conjunction to the share repurchase of 1 000 000 shares paid on 6 August 2012.
Further information about the repurchase is available in the stock releases
published on 4 June 2012 and 6 August 2012, and under title “Repurchase of own
shares” in this report.
EMPLOYEES
During January - September 2012, HKScan, excluding Sokolów in Poland, had an
average workforce of 8 091 employees (8 520).
The number of employees in Finland has increased mainly due to the intake of
outsourced cutting operations. In Sweden, Denmark and the Baltics, the numbers
of employees have decreased as a consequence of the ongoing efficiency
programmes.
The average number of employees in each market area was as follows:
Q1-Q3/2012 Q1-Q3/2011 2011
-------------------------------------------------------------------
Finland 2 846 2 796 2 750
-------------------------------------------------------------------
Baltics 1 772 1 897 1 881
-------------------------------------------------------------------
Sweden 2 683 2 937 2 789
-------------------------------------------------------------------
Denmark 790 890 867
-------------------------------------------------------------------
Total 8 091 8 520 8 287
-------------------------------------------------------------------
In addition, the Sokolów Group employed during the period an average of 6 213
(6 193) persons.
At the end of 2011 the corresponding number was 6 191.
On 30 September the number of employees, excluding Sokolów in Poland, stood at
7 504 (8 055).
Division of employees by market area at 30 September is as follows:
30.9.2012 30.9.2011 31.12.2011
--------------------------------------------------------------------------------
Finland 2 610 2 614 2 568
--------------------------------------------------------------------------------
Baltics 1 746 1 861 1 803
--------------------------------------------------------------------------------
Sweden 2 358 2 731 2 704
--------------------------------------------------------------------------------
Denmark 790 849 807
--------------------------------------------------------------------------------
Total 7 504 8 055 7 882
--------------------------------------------------------------------------------
Additionally, the Sokolów Group had 6 228 (6 352) employees at the end of the
period under review. At the end of 2011, the corresponding number was 6 175.
HKSCAN AND HK RUOKATALO SUBJECT TO AN ACTION FOR DAMAGES BY OY PRIMULA AB'S
BANKRUPT'S ESTATE
As informed by a stock exchange release on 7 September 2012, HKScan Corporation
and HK Ruokatalo Oy have been notified that Oy Primula Ab's bankruptcy estate
has submitted an action for damages to the District Court of Finland Proper
concerning the companies. The claim amounts to about EUR 16.3 million plus
claims related to interest and legal process costs, and it concerns initial
reports between HK Ruokatalo and Primula in 2009 and 2010 related to possible
cooperation with Primula's Järvenpää factory (Järvenpään Herkkutehdas Oy). The
reports did not result in cooperation between HK Ruokatalo and Primula's
Järvenpää factory.
HKScan and HK Ruokatalo find the action to be unjustified, and the companies
are going to dispute the claim in its entirety in the pending trial. Therefore,
the action will not give raise to any provisions in the consolidated financial
statements.
RISKS AND UNCERTAINTY FACTORS IN THE NEAR FUTURE
The most significant uncertainty factors in the HKScan Group's business are
connected - through price increases for feed raw material in particular and
other production inputs related to primary production - to the price
development and availability of local meat raw material as well as with the
adequacy of increases in the sales prices for the products in relation to cost
development. Uncertainty factors specific to market areas have to do with the
implementation of the business development programmes. The factors are also
related to recovery from the production break at the Vinderup plant in Denmark
on the market. The Christmas season's sales have a signifcant impact on
profitability.
The risk of animal diseases can never be fully excluded in the food industry's
raw meat supplies.
EVENTS AFTER THE REVIEW PERIOD
On 8 October 2012, HKScan announced continuing efficiency measures in Sweden
and Denmark as part of the extensive group development programme launched in
the spring and which will continue until the end of 2013.
As communicated previously, the slicing of cold cuts and the manufacturing of
cold-smoked products in Sweden will be centralised in Halmstad, and the
manufacturing of other cold cuts in Kristianstad. Related to this, the cold cut
production unit in Bjaeverskov, Denmark, was also shut down at the end of
September. If implemented, the aforementioned measures will cause the
employment of about 70 people to be terminated.
Due to the pork meat production decline in Sweden, it is additionally intended
that the nightshift of pork cutting in Kristianstad will be discontinued, which
means that cutting operations will work in one shift. Employer-employee
negotiations concerning the employment termination of 55 people have been
commenced on 8 October 2012.
If implemented, the above plan means that in addition to the employment
termination of about 150 people, announced previously, the number of staff will
be reduced by about 70 people more. This issue is also discussed under “Market
area Sweden” in this report.
On 31 October 2012 HKScan published a stock release on changes in the HKScan
Management Team and senior management. See further the chapter “Changes in the
organisation” earlier in this report.
FUTURE OUTLOOK
Prices of meat raw material are difficult to predict under cost pressure in
primary production. The Group will improve its profitability through its
development programmes, and passing raw material price increases to sales
prices. Rectifying the performance level of the business in Sweden will have a
significant impact on the Group during the end of the year.
HKScan maintains the outlook for 2012 which stated that due to the weak
development of business in Sweden, there is a risk that the Group's EBIT will
come out below the level of 2011. However, including the estimated
non-recurring income of fire insurance compensation is very likely to improve
the reported EBIT compared to 2011.
CONSOLIDATED INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2012
CONSOLIDATED INCOME STATEMENT
(EUR million) Note Q3/201 Q3/201 Q1-Q3/20 Q1-Q3/20 2011
2 1 12 11
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 623.0 618.1 1 873.3 1 841.4 2 491.3
--------------------------------------------------------------------------------
Operating income and expenses 1. -589.8 -586.6 -1 793.3 -1 765.9 -2
380.5
--------------------------------------------------------------------------------
Share of associates' results -0.3 0.2 -0.6 0.6 1.1
--------------------------------------------------------------------------------
Depreciation and impairment 1. -17.9 -17.7 -59.6 -54.0 -72.3
--------------------------------------------------------------------------------
EBIT 15.0 14.0 19.9 22.1 39.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 1.1 2.0 4.4 5.5 7.4
--------------------------------------------------------------------------------
Financial expenses -9.6 -11.0 -28.9 -27.4 -38.3
--------------------------------------------------------------------------------
Share of associates' results 0.4 0.6 2.1 2.0 2.5
------------------------------
PROFIT/LOSS BEFORE TAXES 6.9 5.6 -2.5 2.2 11.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -0.4 -0.1 3.9 1.7 1.0
--------------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD 6.5 5.6 1.4 3.9 12.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD
ATTRIBUTABLE TO:
--------------------------------------------------------------------------------
Equity holders of the parent 5.8 5.2 0.7 2.6 10.1
--------------------------------------------------------------------------------
Non-controlling interests 0.7 0.4 0.7 1.3 2.1
--------------------------------------------------------------------------------
Total 6.5 5.6 1.4 3.9 12.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share calculated on profit attributable to equity holders
of the parent:
------------------------------------------------------------------------
EPS, undiluted, continuing 0.11 0.09 0.01 0.05 0.18
operations, EUR/share
--------------------------------------------------------------------------------
EPS, diluted, continuing 0.11 0.09 0.01 0.05 0.18
operations, EUR/share
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1 JANUARY - 30 SEPTEMBER
(EUR million) Q3/201 Q3/201 Q1-Q3/2 Q1-Q3/2 31.12.2
2 1 012 011 011
--------------------------------------------------------------------------------
Profit/loss for the period 6.5 5.6 1.4 3.9 12.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME (after
taxes):
--------------------------------------------------------------------------------
Exchange differences on translating 5.0 -4.3 9.1 -6.0 -2.5
foreign operations
--------------------------------------------------------------------------------
Cash flow hedging -0.3 -4.5 -0.7 -3.5 -7.4
--------------------------------------------------------------------------------
Revaluation 0.1 0.1 0.3 0.1 0.0
--------------------------------------------------------------------------------
TOTAL OTHER COMPREHENSIVE INCOME 4.8 -8.7 8.7 -9.4 -9.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE 11.2 -3.1 10.1 -5.5 2.4
PERIOD
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD ATTRIBUTABLE TO:
--------------------------------------------------------------------------------
Equity holders of the parent 10.8 -3.5 9.6 -6.6 0.3
--------------------------------------------------------------------------------
Non-controlling interests 0.4 0.5 0.5 1.1 2.1
--------------------------------------------------------------------------------
Total 11.2 -3.1 10.1 -5.5 2.4
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR million) Note 30.9.2012 30.9.2011 31.12.2011
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 2. 78.7 74.7 76.6
--------------------------------------------------------------------------------
Goodwill 3. 102.0 99.7 101.0
--------------------------------------------------------------------------------
Tangible assets 4. 500.3 513.2 516.5
--------------------------------------------------------------------------------
Shares in associates 35.3 28.6 29.9
--------------------------------------------------------------------------------
Trade and other receivables 37.9 29.7 31.1
--------------------------------------------------------------------------------
Available-for-sale investments 13.5 12.1 13.0
--------------------------------------------------------------------------------
Deferred tax asset 25.1 17.0 21.1
--------------------------------------------------------------------------------
NON-CURRENT ASSETS 792.8 775.1 789.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 5. 180.3 180.2 190.2
--------------------------------------------------------------------------------
Trade and other receivables 226.7 238.5 223.8
--------------------------------------------------------------------------------
Income tax receivable 7.9 4.0 1.5
--------------------------------------------------------------------------------
Other financial assets 0.3 0.3 0.4
--------------------------------------------------------------------------------
Cash and bank 50.0 48.4 48.0
--------------------------------------------------------------------------------
CURRENT ASSETS 465.3 471.4 463.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS 1 258.0 1 246.5 1 253.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY
--------------------------------------------------------------------------------
Share capital 6. 66.8 66.8 66.8
--------------------------------------------------------------------------------
Share premium reserve 73.4 73.3 73.4
--------------------------------------------------------------------------------
Treasury shares 0.0 0.0 0.0
--------------------------------------------------------------------------------
Fair value reserve and other reserves 154.4 155.7 153.2
--------------------------------------------------------------------------------
Translation differences 7.4 -5.0 -1.9
--------------------------------------------------------------------------------
Retained earnings 107.8 111.5 117.9
--------------------------------------------------------------------------------
Equity attributable to equity holders of 409.8 402.2 409.3
the
parent
--------------------------------------------------------------------------------
Non-controlling interests 8.0 11.3 12.2
--------------------------------------------------------------------------------
EQUITY 417.8 413.5 421.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liability 37.7 37.5 36.9
--------------------------------------------------------------------------------
Non-current interest-bearing liabilities 357.8 397.9 333.5
--------------------------------------------------------------------------------
Non-current non-interest bearing 2.3 12.4 3.0
liabilities
--------------------------------------------------------------------------------
Non-current provisions 0.7 1.0 0.6
--------------------------------------------------------------------------------
Pension obligations 2.9 2.9 3.1
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES 401.5 451.8 377.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Current interest-bearing liabilities 166.5 109.0 170.6
--------------------------------------------------------------------------------
Trade and other payables 271.1 269.5 282.9
--------------------------------------------------------------------------------
Income tax liability 0.2 2.1 0.1
--------------------------------------------------------------------------------
Current provisions 0.9 0.7 0.7
--------------------------------------------------------------------------------
CURRENT LIABILITIES 438.8 381.2 454.4
--------------------------------------------------------------------------------
---------------------------------------------------------- -----------
EQUITY AND LIABILITIES 1 258.0 1 246.5 1 253.0
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED
EQUITY
(EUR 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
million)
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.4 -13.9 143.5 23.5 -1.9 0.0 117.9 409.3 12.2 421.5
1.1.2012
--------------------------------------------------------------------------------
Result for 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.7 0.7 0.7 1.4
the
financial
period
--------------------------------------------------------------------------------
Transl. 0.0 0.0 0.0 0.0 0.0 9.3 0.0 0.0 9.3 -0.2 9,1
diff.
--------------------------------------------------------------------------------
Cash flow 0,0 0,0 -0.7 0.0 0.0 0.0 0.0 0.0 -0.7 0.0 -0.7
hedging
--------------------------------------------------------------------------------
Revaluat. 0.0 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.3 0.0 0.3
--------------------------------------------------------------------------------
Total 0.0 0.0 -0.7 0.0 0.3 9.3 0.0 0.7 9.6 0.5 10.1
compreh.
income for
the
period
--------------------------------------------------------------------------------
Shared-bas 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 0.0 0.0
ed
compens.
expense
--------------------------------------------------------------------------------
Other 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 -3.8 -3.8
change
--------------------------------------------------------------------------------
Direct 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.2 0.2 0.0 0.2
recognit.
in
retained
earnings
--------------------------------------------------------------------------------
Transfers 0,0 0,0 0,0 0,0 1.7 0.0 0.0 -1.7 0.0 0.0 0.0
between
items
--------------------------------------------------------------------------------
Share 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0,0 0.0
issue
--------------------------------------------------------------------------------
Purchase 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 0.0
of
treasury
shares
--------------------------------------------------------------------------------
Increase 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 0.0
in
holdings
in
subsid.
--------------------------------------------------------------------------------
Dividend 0,0 0,0 0,0 0,0 0,0 0,0 0,0 -9.3 -9.3 -0.9 -10.2
distribut
.
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.4 -14.6 143.5 25.5 7.4 0.0 107.8 409.8 8.0 417.8
30.9.2012
--------------------------------------------------------------------------------
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.4 -6.5 143.5 17.4 0.6 0.0 124.4 419.6 11.1 430.6
1.1.2011
--------------------------------------------------------------------------------
Result for 0,0 0,0 0,0 0,0 0,0 0,0 0,0 2.6 2.6 1.3 3.9
the
financial
period
--------------------------------------------------------------------------------
Transl. 0,0 -0.1 0.0 0.0 -1.4 -5.6 0.0 1.3 -5.9 -0.1 -6.0
diff.
--------------------------------------------------------------------------------
Cash flow 0.0 0.0 -3.5 0,0 0,0 0,0 0,0 0.0 -3.5 0.0 -3.5
hedging
--------------------------------------------------------------------------------
Revaluat. 0,0 0,0 0,0 0,0 0.1 0.0 0.0 0.0 0.1 0.0 0.1
--------------------------------------------------------------------------------
Total 0.0 -0.1 -3.5 0.0 -1.3 -5.6 0.0 3.9 -6.6 1.1 -5.5
compreh.
income for
the
period
--------------------------------------------------------------------------------
Shared-bas 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 0.0
ed
compens.
expense
--------------------------------------------------------------------------------
Other 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 0.0
change
--------------------------------------------------------------------------------
Direct 0,0 0,0 0,0 0,0 0,0 0,0 0,0 1.4 1.4 0.0 1.4
recognit.
in
retained
earnings
--------------------------------------------------------------------------------
Transfers 0,0 0,0 0,0 0,0 6.2 0.0 0.0 -6.2 0.0 0.0 0.0
between
items
--------------------------------------------------------------------------------
Share 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 0.0
issue
--------------------------------------------------------------------------------
Purchase 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 0.0
of
treasury
shares
--------------------------------------------------------------------------------
Increase 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0.0 0.0 0.0
in
holdings
in
subsid.
--------------------------------------------------------------------------------
Dividend 0,0 0,0 0,0 0,0 0,0 0,0 0,0 -12.1 -12.1 -0.9 -13.0
distribut
.
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.3 -10.0 143.5 22.2 -5.0 0.0 111.5 402.2 11.3 413.5
30.9.2011
--------------------------------------------------------------------------------
COLUMNS: 1. Share capital, 2. Share premium reserve, 3. Revaluation reserve, 4.
Reserve for invested unrestricted equity (RIUE), 5. Other reserves, 6.
Translation differences, 7. Treasury shares, 8. Retained earnings, 9. Equity
holders of the parent, 10. Non-controlling interests, 11. Total
CASH FLOW STATEMENT
(EUR million) Q1-Q3/2012 Q1-Q3/2 2011
011
--------------------------------------------------------------------------------
Operating activities
--------------------------------------------------------------------------------
Cash flow from operating activities 69.5 51.8 79.9
--------------------------------------------------------------------------------
Financial items and taxes -35.6 -24.2 -26.1
--------------------------------------------------------------------------------
Net cash flow from operating activities 33.9 27.6 53.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments
--------------------------------
Gross investments in property, plant and -39.8 -40.1 -60.4
equipment
--------------------------------------------------------------------------------
Disposals of property, plant and equipment 1.1 1.3 1.9
--------------------------------------------------------------------------------
Investments in subsidiary - - -
--------------------------------------------------------------------------------
Shares in associates purchased -0.1 -0.2 -1.0
--------------------------------------------------------------------------------
Shares in associates sold 0.6 0.0 0.0
--------------------------------------------------------------------------------
Loans granted -1.8 -1.5 -1.8
--------------------------------------------------------------------------------
Repayments of loans receivable 0.4 1.2 2.1
--------------------------------------------------------------------------------
Net cash flow from investing activities -39.7 -39.3 -59.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow before financing activities -5.8 -11.7 -5.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financing activities
--------------------------------------------------------------------------------
Current borrowings raised 29.3 35.7 76.8
--------------------------------------------------------------------------------
Current borrowings repaid -34.2 -82.1 -98.3
--------------------------------------------------------------------------------
Non-current borrowings raised 124.3 125.9 159.4
--------------------------------------------------------------------------------
Non-current borrowings repaid -102.2 -77.8 -142.4
--------------------------------------------------------------------------------
Dividends paid -9.9 -12.1 -12.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash flow from financing activities 7.4 -10.5 -17.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents 1.6 -22.2 -22.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at 1.1. 48.4 73.4 73.4
--------------------------------------------------------------------------------
Effect of changes in exchange rates on cash and 0.3 -2.4 -2.5
cash equivalents
--------------------------------------------------------------------------------
Cash and cash equivalents at 30.9. 50.3 48.7 48.4
--------------------------------------------------------------------------------
FINANCIAL INDICATORS
30.9.20 30.9.20 31.12.2011
12 11
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share (EPS), undiluted, EUR 0.01 0.05 0.18
--------------------------------------------------------------------------------
Earnings per share (EPS), diluted, EUR 0.01 0.05 0.18
--------------------------------------------------------------------------------
Equity per share at 30 September, EUR 7.59 7.32 7.67
--------------------------------------------------------------------------------
Equity ratio, % 33.2 33.3 33.6
--------------------------------------------------------------------------------
Adjusted average number of shares, mill. 54.0 55.0 55.0
--------------------------------------------------------------------------------
Gross capital expenditure on PPE, EUR mill. 40.7 41.5 61.0
--------------------------------------------------------------------------------
Employees, end of month average 8 091 8 520 8 287
--------------------------------------------------------------------------------
NOTES TO THE CONSOLIDATED INTERIM REPORT
ACCOUNTING POLICIES
HKScan Corporation's interim report for 1 January - 30 September 2012 has been
prepared in compliance with IAS 34 Interim Financial Reporting standards. The
same accounting principles have been applied in the interim report as in the
annual financial statements for 2011. There are no IFRS standards or IFRIC
interpretations that have become effective in the period under review that
would have a material impact on the Group. Due to the rounding of the figures
to the nearest million euros in the interim report, some totals may not agree
with the sum of their constituent parts. These accounting principles are
explained in the financial statements for 2011.
ANALYSIS BY SEGMENT
Net sales and EBIT by market area
----------------------------------
(EUR million) Q3/2012 Q3/2011 Q1-Q3/2012 Q1-Q3/2011 2011
---------------------------------------------------------------------------
NET SALES
---------------------------------------------------------------------------
- Finland 205.5 199.0 615.9 594.9 812.4
---------------------------------------------------------------------------
- Baltics 44.3 44.9 131.6 128.3 173.3
---------------------------------------------------------------------------
- Sweden 248.7 254.7 762.6 770.1 1 045.7
---------------------------------------------------------------------------
- Denmark 51.6 60.4 160.8 173.8 228.1
---------------------------------------------------------------------------
- Poland 88.7 77.5 256.0 225.0 298.9
---------------------------------------------------------------------------
- Between segments -15.9 -18.3 -53.6 -50.7 -67.1
---------------------------------------------------------------------------
Group total 623.0 618.1 1 873.3 1 841.4 2 491.3
---------------------------------------------------------------------------
---------------------------------------------------------------------------
EBIT
---------------------------------------------------------------------------
- Finland 5.6 4.8 11.0 4.9 12.1
---------------------------------------------------------------------------
- Baltics 3.6 3.4 7.4 7.0 9.8
---------------------------------------------------------------------------
- Sweden 3.2 5.4 -6.5 9.7 17.2
---------------------------------------------------------------------------
- Denmark 0.9 -1.3 2.6 -2.4 -3.7
---------------------------------------------------------------------------
- Poland 3.6 3.4 11.5 9.2 12.7
---------------------------------------------------------------------------
- Between segments - - - - -
---------------------------------------------------------------------------
Segments total 16.9 15.7 26.1 28.4 48.0
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Group admin. costs -1.9 -1.7 -6.2 -6.3 -8.4
---------------------------------------------------------------------------
Group total 15.0 14.0 19.9 22.1 39.6
---------------------------------------------------------------------------
NOTES TO THE INCOME STATEMENT
1. NON-RECURRING ITEMS
(EUR million) Q3/2012 Q3/2011 Q1-Q3/2012 Q1-Q3/2011 2011
--------------------------------------------------------------------------------
Property insurance claim 1) 0.1 - 5.5 - -
--------------------------------------------------------------------------------
Impairment of fixed assets -0.1 - -5.5 - -
destroyed in the fire 2)
--------------------------------------------------------------------------------
Non-recurring items Total 0.0 - 0.0 - -
--------------------------------------------------------------------------------
1) Included in the Income Statement in the item ”Operating income and
expenses”
2) Included in the Income Statement in the item ”Depreciation and
impairment”
NOTES TO THE STATEMENT OF FINANCIAL POSITION
2. CHANGES IN INTANGIBLE ASSETS
(EUR million) Q1-Q3/2012 Q1-Q3/2011 2011
---------------------------------------------------------------------
Carrying amount at beginning of period 76.6 77.1 77.1
---------------------------------------------------------------------
Translation differences 3.5 0.1 0.3
---------------------------------------------------------------------
Increase 0.9 1.8 2.3
---------------------------------------------------------------------
Increase (acquisitions) 0.0 0.0 0.0
---------------------------------------------------------------------
Decrease 0.0 -0.7 -0.3
---------------------------------------------------------------------
Depreciation and impairment -3.2 -2.9 -4.0
---------------------------------------------------------------------
Transfer to other balance sheet item 1.0 -0.5 1.1
---------------------------------------------------------------------
Carrying amount at end of period 78.7 74.7 76.6
---------------------------------------------------------------------
3. CHANGES IN GOODWILL
(EUR million) Q1-Q3/2012 Q1-Q3/2011 2011
---------------------------------------------------------------------
Carrying amount at beginning of period 101.0 100.4 100.4
---------------------------------------------------------------------
Translation differences 1.9 -1.1 0.2
---------------------------------------------------------------------
Increase 0.0 0.4 0.4
---------------------------------------------------------------------
Increase (acquisitions) 0.0 0.0 0.0
---------------------------------------------------------------------
Decrease -0.9 0.0 0.0
---------------------------------------------------------------------
Depreciation and impairment 0.0 0.0 0.0
---------------------------------------------------------------------
Transfer to other balance sheet item 0.0 0.0 0.0
---------------------------------------------------------------------
Carrying amount at end of period 102.0 99.7 101.0
---------------------------------------------------------------------
4. CHANGES IN PROPERTY, PLANT AND EQUIPMENT
---------------------------------------------------
(EUR million) Q1-Q3/2012 Q1-Q3/2011 2011
---------------------------------------------------------------------
Carrying amount at beginning of period 516.5 537.8 537.8
---------------------------------------------------------------------
Translation differences 12.6 -10.3 -7.9
---------------------------------------------------------------------
Increase 40.1 37.5 56.2
---------------------------------------------------------------------
Increase (acquisitions) 0.1 1.1 1.3
---------------------------------------------------------------------
Decrease -10.5 -1.0 -1.2
---------------------------------------------------------------------
Depreciation and impairment -57.4 -50.1 -67.7
---------------------------------------------------------------------
Transfer to other balance sheet item -1.0 -1.7 -1.8
---------------------------------------------------------------------
Carrying amount at end of period 500.3 513.2 516.5
---------------------------------------------------------------------
5. INVENTORIES
(EUR million) Q1-Q3/2012 Q1-Q3/2011 2011
---------------------------------------------------------------------
Materials and supplies 80.6 91.5 88.7
---------------------------------------------------------------------
Unfinished products 11.2 9.7 9.1
---------------------------------------------------------------------
Finished products 67.3 60.4 72.1
---------------------------------------------------------------------
Goods 0.0 0.0 0.0
---------------------------------------------------------------------
Other inventories 8.0 7.9 7.7
---------------------------------------------------------------------
Prepayments for inventories 3.2 2.4 4.5
---------------------------------------------------------------------
Live animals, IFRS 41 10.0 8.3 7.9
---------------------------------------------------------------------
Total inventories 180.3 180.2 190.2
---------------------------------------------------------------------
6. NOTES TO EQUITY
Share capital Number of Share Share Reserve for Treasu Total
and share outstanding capit premium invested ry
premium shares al reserve unrestricted
reserve equity
--------------------------------------------------------------------------------
1.1.2012 54 972 788 66.8 72.9 143.5 0.0 283.2
--------------------------------------------------------------------------------
30.9.2012 53 972 788 66.8 72.9 143.5 0.0 283.2
--------------------------------------------------------------------------------
DERIVATIVE INSTRUMENT LIABILITIES
(EUR million) 30.9.2012 30.9.2011 31.12.2011
--------------------------------------------------------------------------------
Nominal values of derivative instruments
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Foreign exchange derivatives 96.5 76.5 63.2
--------------------------------------------------------------------------------
Interest rate derivatives 288.8 265.4 283.8
--------------------------------------------------------------------------------
Electricity derivatives 10.7 10.5 11.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Fair values of derivative instruments
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Foreign exchange derivatives -0.9 3.6 -0.5
--------------------------------------------------------------------------------
Interest rate derivatives -25.1 -18.9 -23.0
--------------------------------------------------------------------------------
Electricity derivatives -1.3 0.0 -1.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED OTHER CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
(EUR million)
--------------------------------------------------------------------------------
30.9.2012 30.9.2011 31.12.2011
--------------------------------------------------------------------------------
Debts secured by pledges or mortgages
--------------------------------------------------------------------------------
- loans from financial institutions 372.7 32.1 34.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Given as security
--------------------------------------------------------------------------------
- real estate mortgages 74.2 58.6 63.0
--------------------------------------------------------------------------------
- pledges 5.1 5.9 5.1
--------------------------------------------------------------------------------
- floating charges 19.3 44.7 22.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
For associates
--------------------------------------------------------------------------------
- guarantees 5.2 5.3 5.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
For others
--------------------------------------------------------------------------------
- guarantees and pledges 13.4 14.0 14.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other contingencies
--------------------------------------------------------------------------------
Leasing commitments 23.5 25.6 26.2
--------------------------------------------------------------------------------
Rent liabilities 56.0 38.2 61.0
--------------------------------------------------------------------------------
Other commitments 8.0 19.1 7.8
--------------------------------------------------------------------------------
The parent company has pledged the shares of its subsidiaries, HKScan Finland Oy
and Scan Ab, as security for its loans.
BUSINESS TRANSACTIONS WITH RELATED PARTIES
-------------------------------------------
(EUR million) Q1-Q3/2012 Q1-Q3/2011 2011
------------------------------------------------------------
Sales to associates 75.4 45.7 73.0
------------------------------------------------------------
Purchases from associates 36.9 36.9 47.3
------------------------------------------------------------
Trade and other receivables 3.2 3.6 2.8
------------------------------------------------------------
Trade and other payables 9.4 8.0 9.1
------------------------------------------------------------
NEXT FINANCIAL REPORT
The HKScan Group's financial statements 2012 release will be published on
Friday, 15 February 2013.
Vantaa, 6 November 2012
HKScan Corporation
Board of Directors
Further information is available from HKScan Corporation's CEO, Hannu Kottonen
and CFO, Tuomo Valkonen. Please leave any messages for them with HKScan's
communications manager Marja Siltala, firstname.surname@hkscan.com, tel. +358
10 570 2290 or with executive assistant Marjukka Hujanen, tel. +358 10 570
6218.
HKScan is one of the leading food companies in northern Europe with home
markets in Finland, Sweden, Denmark, the Baltic countries and Poland. HKScan
manufactures, sells and markets pork and beef, poultry products, processed
meats and convenience foods under strong brand names. Its customers are retail,
the Food Service, industry and export sectors. It had net sales of EUR 2.5
billion in 2011 and some 11 400 employees.
DISTRIBUTION: NASDAQ OMX Helsinki, Main media, www.hkscan.com
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