2016-02-16 08:00:03 CET
2016-02-16 08:00:03 CET
REGULATED INFORMATION
Raute - Financial Statement Release
Raute Corporation - Financial statements January 1 - December 31, 2015
Lahti, Finland, 2016-02-16 08:00 CET (GLOBE NEWSWIRE) -- RAUTE CORPORATION
FINANCIAL STATEMENT RELEASE FEBRUARY 16, 2016 AT 9:00 A.M.
RAUTE CORPORATION – FINANCIAL STATEMENTS JANUARY 1 – DECEMBER 31, 2015
- The Group’s net sales amounted to EUR 127.3 million (MEUR 94.0), up 35% on
the comparison period. Order intake, at EUR 145 million (MEUR 112), increased
30%. The order book at the end of the year, EUR 60 million (MEUR 44), stood at
a good level.
- Operating profit, at EUR +8.1 million (MEUR +2.6), more than tripled from the
previous year. Result before taxes was EUR +8.1 million (MEUR +2.8).
- Undiluted earnings per share were EUR 1.65 (EUR +0.59) and diluted earnings
per share were EUR 1.64 (EUR +0.59).
- Fourth-quarter net sales amounted to EUR 39.5 million and the operating
result was EUR 2.8 million. Order intake was low at EUR 16 million.
- The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.80 (dividend EUR 0.40 and repayment of equity EUR 0.20) per
share be paid for the financial year 2015.
- Raute’s net sales and operating profit for 2016 are expected to remain at the
same level as in 2015.
TAPANI KIISKI, PRESIDENT AND CEO: 2015 A RECORD YEAR
I am pleased with our performance in 2015. Order intake, net sales and
operating profit were all at a record high. Our profitability shows a threefold
improvement on the previous year, owing to the increased net sales but also to
the development measures we implemented. The order intake is an indication of
our customers’ confidence and of our good competitiveness, while the increased
net sales prove that our delivery ability and the flexibility of our capacity
are in order. And the improved result shows that “our engine keeps on running
while there is fuel”! There is still room for improvement, but we are in a good
position to move forward.
Economic development in our main markets did not make our job easier. Europe’s
economy shows modest growth, but the large number of orders is largely the
result of our customers making strategic acquisitions in 2015. In North America
strong economic growth continued, but construction activity remained at a low
level. Although major South American countries suffer from a poor economic
situation, exchange rates and new, competitive productions plants help our
customers succeed in the export markets. In Asia, the slowdown of China’s
economic growth has caused more wide-spread uncertainty, and in Russia the weak
economy and political uncertainty delay the implementation of investments. We
have our long-term co-operation with our customers, aimed at promoting their
success, and their solid business and confidence in the future to thank for our
successes last year.
We are particularly happy with the record-high net sales in the last quarter of
2015. They are proof that our development projects in the last few years have
been successful. Our operating profit was also at a good level, although it did
not reach the record-high level of the last quarter of 2014. Our project
portfolio’s structure and timing differed from the situation at the end of
2014. We decided to discontinue a new technology development project, aimed at
expanding and increasing our business. This resulted in impairments of balance
sheet items and thus in a weaker financial result. We arrived at this decision
due to technical problems and changes in the market situation. In spite of the
risks related to product development, we believe that R&D investments are
necessary to support the company’s growth and future competitive position. As
proof of this we have made a one-and-a-half times large investment in our
future, measured as R&D expenditure, than in the previous year.
Despite the relatively low order intake at the end of the year, our order book
remains at a good level. Our customers in many market areas are preparing
investments of different sizes, including mill-scale investments. I am also
confident that our input into emerging market products will generate growth in
the current year. Demand for our technology services, in particular spare
parts, remained good throughout last year, which is an indication of the good
capacity utilization rates of our customers’ production plants. Based on this
setup, I am confident that we will be able to maintain last year’s level in
terms of both net sales and profit in 2016.
I would like to send out a heartfelt thank you to Raute’s customers for their
invaluable cooperation and trust, to our personnel for their outstanding work
and flexibility under the significantly heavier workload, to our shareholders
for their continued confidence in us, and to all our other partners for their
role in furthering Raute’s development and success.
FOURTH QUARTER OF 2015
Order intake and order book
Order intake at EUR 16 million (MEUR 23) remained low. Technology services
accounted for EUR 10 million (MEUR 10) of the order intake.
Raute’s customers have several large-scale projects in the planning phase, none
of which led to an actual investment decision during the fourth quarter.
Several individual production line orders and modernization projects were also
further postponed.
The order book weakened during the fourth quarter by EUR 23 million, but
remained at a good level, EUR 60 million (MEUR 44), at the end of 2015.
Net sales
Fourth-quarter net sales amounted to a new record at EUR 39.5 million (MEUR
34.0). Net sales increased 26 percent from the third quarter in line with the
order book’s timing. The proportion of technology services fell to 25 percent
(28%) of net sales as a result of a strong increase in project deliveries.
Result and profitability
Operating profit in the fourth quarter was EUR 2.8 million positive (MEUR 3.6
positive) and accounted for 7 percent (11%) of net sales. The operating profit
included a total of EUR 0.6 million in costs related to the development of new
business for Raute. The operating profit was further weakened by a credit loss
of EUR 0.5 million, which was related to an estimate of a single client’s
solvency. The result was EUR 2.4 million positive (MEUR +3.2), and undiluted
earnings per share were EUR 0.58 (EUR +0.80). Profitability improved in
comparison with the previous quarters, which resulted from increased net sales.
RAUTE CORPORATION – FINANCIAL STATEMENTS JANUARY 1–DECEMBER 31, 2015
BUSINESS ENVIRONMENT
Market situation in customer industries
Raute’s customers in the plywood and LVL industries are engaged in the
manufacturing of wood products used in investment commodities and thus highly
affected by fluctuations in the fields of construction, housing-related
consumption, international trade, and transportation.
The situation in the global economy and the financial markets during 2015 did
not change considerably with respect to Raute or Raute’s customer base. Over
the last few months of the year the uncertainty linked to global economic
development increased, in particular due to weaker-than-usual economic reports
from China and political unrest in a number of regions.
Europe’s economy has continued to strengthen slightly. Russia’s development has
remained weak and according to market data, Russian plywood manufacturers have
reduced their prices especially on the European markets to compensate for a
weakening in domestic demand. China’s measures to strengthen its economy have
not as yet materialized as increased investments among Raute’s customers. The
domestic markets of major South American countries were weak. In part due to
weaker currencies, Chilean and Brazilian plywood manufacturers have increased
their exports to Europe and North America.
Construction activity has remained at a low level in all market areas,
including North America, where the economy in general continues its positive
growth. Due to the market situation described above, Raute’s customers’ order
books have remained short, which has not made for an attractive environment for
implementing investments.
Demand for wood products technology and technology services
Unusually, altogether three major mill-scale capacity-generating projects were
begun in Europe in 2015.
In addition to the projects started up during the first half of the year 2015,
several large projects are still in the planning and negotiation phase in
various market areas but the requirements for making the investment decisions,
i.e. trust in the permanence of demand and the availability of funding, did not
yet materialize. The market impact of the projects announced during the first
half of the year may also defer the implementation of projects currently at the
planning phase. The increased uncertainty in the economic and market situation
following the summer also slowed down decision-making concerning some
investment projects.
Even though the North American economy continued to experience strong growth
compared to the rest of the world, the growth of the construction industry has
been clearly slower. Among Raute’s customers, demand focused on smaller
modernization projects and technology services, as well as on individual
replacement and efficiency-improving investments.
The political uncertainty resulting from the crisis in Ukraine, the weak
economic development resulting from low oil and raw material prices, the
weakening of the ruble and the difficulty of securing financing due to the
economic sanctions have caused investment decisions to be postponed in the
Russian markets. However, many investments are still being prepared actively.
The normalization of the market situation in Russia is not expected to happen
anytime soon.
In South America, Raute’s customers continued to focus on ramping up the
capacity of the large plywood mill investments they made a few years ago and
finding markets for their new production capacity. No new major investment
projects were started up. Replacement investments also remained at a low level.
The weakening of China’s economic development slowed down decision-making
concerning a number of pending projects. This also impacted the rest of Asia
and even the entire world.
Demand for maintenance and spare parts services remained at a good level
through the year. This bears testimony to the fact that the utilization rates
of Raute’s customers’ production facilities remained, for the most part, good.
ORDER INTAKE AND ORDER BOOK
Raute serves the wood products industry with a full-service concept based on
service that encompasses the entire life cycle of the delivered equipment.
Raute’s business consists of project deliveries and technology services.
Project deliveries encompass projects from individual machine or production
line deliveries to deliveries of all the machines and equipment belonging to a
mill’s production process. Additionally, Raute’s full-service concept includes
comprehensive technology services ranging from spare parts deliveries to
regular maintenance and equipment modernizations, as well as consulting,
training and reconditioned machinery.
The order intake amounted to EUR 145 million (MEUR 112) during 2015. Of the new
orders, 67 percent came from Europe (63%), 15 percent from North America
(10%),10 percent from Russia (15%), 5 percent from Asia-Pacific (5%) and 3
percent from South America (7%). The strong fluctuations in the distribution of
new orders between the various market areas are typical for project-focused
business.
The order intake for project deliveries stood at EUR 105 million (MEUR 73) and
increased on the previous year by 44 percent. The new orders included
altogether three major capacity-generating mill projects to Europe, which
entered into force in the first and second quarters.
Order intake in technology services amounted to EUR 40 million (MEUR 39), 5
percent more than in 2014. The order intake in spare parts increased by 15
percent. In modernizations the order intake was down a quarter as modernization
projects in Europe and North America were postponed.
At the end of 2015, the order book, EUR 60 million (MEUR 44), was at a good
level.
COMPETITIVE POSITION
Raute’s competitive position has remained good. Raute’s solutions help
customers in securing their delivery and service capabilities throughout the
life cycle of the production process or its part. In such investments, the
supplier’s overall expertise and extensive and vast and diverse technology
offering play a key role. Raute competitive advantages are significant when
customers select their cooperation partners. Raute’s strong financial position
and long-term dedication to serving selected customer industries also enhance
its credibility and improve its competitive position as a company that carries
out long-term investment projects.
NET SALES
The Group’s net sales in 2015 amounted to EUR 127.3 million (MEUR 94.0). Net
sales grew by 35 percent on 2014. The growth in net sales resulted from a
higher initial order book than in the comparison year, a large volume of order
intake and the timing of the order book.
Net sales were generated by project deliveries related to the wood products
technology business and by technology services.
Net sales for project deliveries totaled EUR 85 million (MEUR 58), up 48
percent from the previous year. Project deliveries accounted for 67 percent
(62%) of total net sales. The plywood industry’s share of the net sales of
project deliveries was 68 percent (75%), while the LVL industry’s share was 32
percent (25%).
Altogether six major capacity-generating projects were at the installation and
commissioning phase during the year, and they have proceeded according to the
timetable set by the customer. The final approval of the order received in July
2012 for the delivery of LVL mill machinery to Germany has been further delayed
due to changes made in the production process. The two major orders received
from Poland in 2014 progressed to production use and ramping up of production.
The three new major orders received in 2015 progressed as planned to the
machine and equipment delivery phase and installation phase.
Net sales for technology services totaled EUR 42 million (MEUR 36). Net sales
grew 16 percent from the previous year and accounted for 33 percent (38%) of
total net sales. The growth took place mainly in modernizations and spare
parts.
Of the total net sales in 2015, Europe accounted for 66 percent (52%), North
America for 13 percent (14%), Russia for 9 percent (18%), South America for 7
percent (13%), and Asia-Pacific for 5 percent (3%).
RESULT AND PROFITABILITY
The Group’s operating profit for 2015 was EUR 8.1 million positive (MEUR 2.6
positive) and accounted for 6 percent of net sales (3%). The operating profit
was burdened by impairments totaling EUR 1.2 million, which were caused by the
decision to discontinue a R&D project aimed at generating new business for
Raute due to technical problems and changes in the market situation. The impact
of credit losses on the operating profit was EUR -0.6 million. The fourth
quarter accounted for EUR 39.5 million of net sales and operating profit for
EUR 2.8 million.
The operating profit showed a threefold increase on the previous year mainly as
a result of an increase in net sales and the operational development measures
implemented.
The Group’s financial income and expenses totaled EUR -0.0 million (MEUR +0.2).
The Group’s profit before tax was EUR 8.1 million positive (MEUR +2.8) and
profit for the financial year was EUR 6.7 million positive (MEUR +2.4).
Comprehensive income for the Group was EUR 6.8 million positive (MEUR +2.6).
Undiluted earnings per share were EUR 1.65 (EUR 0.59) and diluted earnings per
share were EUR 1.64 (EUR 0.59). Return on investment was 28.5 percent (10.9%)
and return on equity 24.7 percent (+9.8%).
CASH FLOW AND BALANCE SHEET
The Group's financial position remained good throughout the year. At the end of
the financial year, the Group’s cash and cash equivalents exceeded
interest-bearing liabilities by EUR 5.0 million (MEUR 1.7). At the end of the
financial year gearing was -17 percent (-7%) and the equity ratio was 59
percent (56%).
The Group’s cash and cash equivalents amounted to EUR 6.5 million (MEUR 4.4) at
the end of 2015. The change in cash and cash equivalents in the financial year
was EUR 2.1 million positive (MEUR 8.1 negative). Operating cash flow was EUR
7.5 million positive (MEUR 1.9 negative). Cash flow from investment activities
totaled EUR 2.3 million negative (MEUR 1.1 negative). Cash flow from financing
activities was EUR 3.1 million negative (MEUR 5.2 negative). Cash flow from
financing activities includes EUR 2.4 million (MEUR 2.0) in dividend payment
and repayment of equity from the non-restricted equity reserve, EUR 1.2 million
in debt repayments and payments totaling EUR 0.6 million (MEUR 0.0) for series
A shares subscribed for using stock options.
The Group’s balance sheet total at the end of 2015 stood at EUR 61.8 million
(MEUR 52.6). Fluctuations in balance sheet working capital items and the key
figures based on them are due to differences in the timing of customer payments
and the cost accumulation from project deliveries, which is typical of the
project business.
The interest-bearing liabilities EUR 1.5 million (MEUR 2.8) at the end of 2015
were current interest-bearing liabilities (MEUR 1.5).
The parent company Raute Corporation has a EUR 10 million commercial paper
program, which allows the company to issue commercial papers maturing in less
than one year.
The parent company Raute Corporation is prepared for future working capital
needs and has concluded long-term credit facility agreements with three Nordic
banks totaling EUR 23.0 million. The main covenants for the credit facility are
an equity ratio of >30% and gearing of <100%. Of the credit facility, EUR 20.0
million remained unused at the end of the financial year.
LOANS TO RELATED PARTIES AND OTHER LIABILITIES
Other liabilities are presented in the figures section of this report.
EVENTS DURING THE REPORTING PERIOD
Raute Corporation published stock exchange releases on the following events in
2015:
March 5, 2015 Raute received an order worth EUR 30 million to Finland
March 24, 2015 Decisions of Raute’s Annual General Meeting
March 25, 2015 Change in Raute’s Executive Board
March 25, 2015 Raute received a new order worth EUR 31 million to Estonia -
Profit outlook improved
March 26, 2015 Raute Corporation applies for listing of its 2010 stock options
April 24, 2015 Raute received a new order worth EUR 13 million to Estonia
May 7, 2015 Share subscriptions with Raute Corporation’s stock options 2010
July 3, 2015 Share subscriptions with Raute Corporation’s stock options 2010
August 4, 2015 Share subscriptions with Raute Corporation’s stock options 2010
October 7, 2015 Share subscriptions with Raute Corporation’s stock options 2010
November 10, 2015 Share subscriptions with Raute Corporation’s stock options
2010
December 21, 2015 Antti Laulainen appointed member of Raute Group’s Executive
Board
December 29, 2015 Share subscriptions with Raute Corporation’s stock options
2010.
RESEARCH AND DEVELOPMENT
Raute is a leading technology supplier for the plywood and LVL industries and
focuses strongly on the development of increasingly efficient, productive and
environmentally friendly manufacturing technology and supporting measurement
and machine vision applications. Opportunities provided by digitalization are
also an essential part of R&D activities.
In 2015, the Group’s research and development costs totaled EUR 3.1 million
(MEUR 1.8) and 2.4 percent of net sales (1.9%).
In 2015, the extensive program aimed at developing automation, measurement
systems and machine vision to produce new, more advanced applications for
process optimization in the plywood and LVL industries was continued. The new
green veneer composing concept, which improves customers’ veneer yield, was
successfully tested in production. The Dragon product family, targeted at
China’s emerging plywood manufacturing markets, was expanded with an eight-foot
peeling line and a veneer dryer. The implementation of IoT-based remote
services was continued and expanded together with customers.
At the end of 2015, Raute decided to discontinue a development project aimed at
broadening and increasing its business due to technical problems and changes in
the market situation. The project accounted for EUR 1.2 million of the
impairments. Impairments relating to other ongoing development projects
amounted to EUR 0.2 million.
Balance sheet risk associated with new technology and first deliveries declined
to EUR 0.5 million (MEUR 2.8) in 2015.
INVESTMENTS
The Group’s investments in 2015 totaled EUR 2.5 million (MEUR 1.7). The
investments essentially consisted of replacement investments related to fixed
assets. The biggest single investment was the NC boring machine purchased for
the Nastola production unit, the acquisition cost of which is partly scheduled
for 2016. The Group’s investments include EUR 0.2 million in capitalized
development costs (MEUR 0.3).
DEVELOPMENT OF OPERATIONS
In 2015, the strategic development projects focused on ensuring delivery
capability and quality. New operating methods and tools have been used to
simultaneously implement three major delivery projects.
PERSONNEL
The Group’s headcount at the end of 2015 was 646 (587). Finnish Group companies
accounted for 68 percent (67%) of employees, Chinese companies for 16 percent
(18%), North American companies for 12 percent (11%), and other sales and
maintenance companies for 4 percent (4%).
Converted to full-time employees (“effective headcount”), the average number of
employees during the financial year was 614 (530). Salaries and remunerations
paid by the Group totaled EUR 28.1 million (MEUR 24.1).
The Group continued to develop the competence of its personnel and increase
their commitment to the company. 2 percent (2%) of the payroll was invested in
personnel training. In 2015 the focus in personnel development was, on the
basis of competence surveys, on the removal of identified bottlenecks in
competence and induction of new employees.
REMUNERATION
The Group has remuneration systems in place that cover the entire personnel.
Stock option incentive plan 2010
The Annual General Meeting held on March 31, 2010 resolved to issue a maximum
of 240,000 stock options. On December 31, 2015, the Group’s key employees held
a total of 94,625 stock options granted under the incentive plan.
Share-based incentive plan 2014–2018
The Group has a valid long-term share-based incentive plan based on performance
for the years 2014–2018. The plan includes three separate share plans
commencing in 2014, 2015 and 2016. Each plan will span three years. Any
share-based reward accrued through the incentive plan shall be paid as series A
shares. The value of the reward is based on the development of share price. A
total amount of the share-based reward, equaling EUR 377 thousand (EUR 49
thousand), has been recognized as expense for the incentive plan in 2015. No
shares were issued under the plan in 2015.
SOCIETY AND THE ENVIRONMENT
The environment is one of the values that guide Raute’s operations. Raute
strives to systematically develop the environmental soundness of its products
and services and to reduce the environmental impacts of its operations. The
Group abides by the principles of good corporate citizenship, taking into
consideration nature and its protection, and how society as a whole operates,
while respecting local cultures.
Raute’s operations mainly affect the environment indirectly when the company’s
technology is used in the production processes of the plywood and LVL industry.
Raute’s technology enables customers to substantially reduce the environmental
load caused by their operations through, for example, more efficient use of
wood raw materials, additives and energy.
The Group’s own operations do not involve considerable environmental risks that
might have a direct impact on the Group’s business operations or financial
position. The Nastola main production units manage environmental matters in
compliance with a certified environmental system. The operations and ethical
principles of the partner and subcontractor network are also subjected to
systematic inspection.
Raute aims to continuously reduce energy consumption, decrease the volume of
waste, and develop the working environment.
SEASONAL FLUCTUATIONS IN BUSINESS
The Group’s net sales and working capital fluctuate every quarter due to
different types of project deliveries and their schedules. Business operations
do not involve regular seasonal changes.
RISKS AND RISK MANAGEMENT
The Group’s identified key risk areas relate to the nature of the business, the
business environment, financing, and damage or loss. The fluctuations in demand
resulting from economic cycles and delivery and technology risks have been
identified as the Group’s most significant business risks.
Risks in the near term continue to be driven by the uncertainty relating to the
global economic situation and the development of the financial markets, as well
as by international political instability. The most significant risks for Raute
in the near term are related to major mill-scale projects, which are in the
implementation phase, in accordance with the schedule determined in contract
terms, and the development of the order intake.
The Group has no ongoing legal proceedings or other disputes in progress that
might materially affect the continuity of business operations, nor is the Board
of Directors aware of any other legal risks related to the Group’s operations
that might have such an effect.
Business risks
Impact of economic cycles on business operations
Raute’s business operations are characterized by the sensitivity of investment
demand to fluctuations in the global economy and the financing markets, and the
cyclical nature of project business. The impact of changes in demand on the
Group’s result is reduced by increasing the share of technology services,
increasing operations in market areas with a small current market share,
creating products for completely new customer groups and developing the partner
network.
Deliveries and technology
The bulk of Raute’s business operations consists of project deliveries, which
expose the company to risks caused by customer-specific solutions related to
each customer’s end product, production methods or raw materials. At the
quotation and negotiation phase, the company has to take risks relating to the
promised performance figures and make estimates of implementation costs.
Raute invests heavily in product development. The developmental phase for new
technologies involves the risk that the project will not lead to a
technologically or commercially acceptable solution. The functionality and
capacity of new solutions produced as a result of development work cannot be
fully verified until the solutions can be tested under production conditions in
conjunction with the customer deliveries. The balance sheet risk related to new
technology and first deliveries amounted to EUR 0.5 million (MEUR 2.8) at the
end of 2015.
Contract, product liability, implementation, cost and capacity risks are
managed using project management procedures that comply with the company’s
ISO-certified quality system. Technology risks are reduced by the conditions of
delivery contracts and by restricting the number of simultaneous first
deliveries.
Emerging markets
Raute’s objective is to increase its local business for example in China and
Russia, where, besides opportunities, companies face risks typical for emerging
markets.
Information security
Information security risks are managed according to a defined information
security policy.
Human resources
Competence retention and development and ensuring the sufficiency of human
resources are particularly important in cyclical business. Continuity is
ensured by monitoring the development of the age structure, implementing
systematic human resources management and investing in well-being at work.
Financing risks
The most significant financing risks in the Group’s international business
operations are default risks and currency risks related to counterparties. The
Group is also exposed to liquidity, refinancing, interest rate and price risks.
The default risk relating to customers’ solvency is managed through payment
terms and by covering the unpaid sum with bank guarantees, letters of credit or
other suitable securities. The Group’s liquid assets are mainly held in banks
in the Nordic countries. The credit losses recognized during the financial year
amounted to EUR 0.6 million (MEUR 0.0), most of which related to a single
client.
The Group’s main currency is the euro. The most significant currency risks
result from the following currencies: Chinese yuan (CNY), Russian ruble (RUB),
Canadian dollar (CAD) and US dollar (USD). The main hedging instruments used
are foreign currency forward contracts. Currency clauses are included in
quotations to hedge against currency risks during the quotation period.
Depending on the case, currency risks related to preliminary sales contracts
are hedged with currency option contracts.
The Group has made preparations for fluctuating working capital requirements
and possible disturbances in the availability of money through long-term credit
facility agreements with three Nordic banks.
Risks of damage or loss
Raute’s most significant single risks concerning material damage and business
interruption loss are a fire, a serious machine breakdown and information
system breakdown or malfunction at the Nastola main unit, where the production,
planning, financial, and ERP systems serving the Group’s key technologies are
centrally located.
Other risks of damage or loss include occupational safety risks, which are
managed by means of active risk-prevention measures, such as continuous
personnel training and investigation of all near-miss situations. Occupational
safety and ergonomics are under continuous development.
Raute’s production operations do not involve significant environmental risks.
The main unit in Nastola has an ISO-certified environmental management program,
whose principles are also adhered to in other units.
The Group hedges against risks of damage or loss by assessing its facilities
and processes in terms of risk management and by maintaining emergency plans.
Global and local insurance programs are checked regularly as part of overall
risk management. The objective is to use insurance policies to sufficiently
hedge against all risks that are reasonable to handle through insurance due to
economical or other reasons.
Organizing risk management
Raute’s risk management policy is approved by the Board of Directors. The Board
is responsible for organizing internal control and risk management, and for
monitoring their efficiency.
The Executive Board defines the Group’s general risk management principles and
operating policies, and defines the boundaries of the organization’s powers.
The President and CEO and the CFO regularly report significant risks to the
Board.
The Group’s President and CEO controls the implementation of the risk
management principles in the entire Group, while the Presidents of the Group
companies are responsible for risk management in their respective companies.
The members of the Group’s Executive Board are responsible for their own areas
of responsibility across company boundaries.
Raute has no separate internal auditing organization. The Controller function
oversees the annual internal control plan, develops internal control and risk
management procedures together with the operative leadership, and monitors
compliance with risk management principles, operational policies and powers.
GROUP STRUCTURE
Raute Corporation’s wholly-owned Chinese subsidiary Raute (Shanghai) Trading
Co., Ltd. has been discontinued. Operations in China have been consolidated in
another of Raute’s wholly-owned subsidiaries Raute (Shanghai) Machinery Co.,
Ltd.
SHAREHOLDERS
The number of shareholders totaled 1,991 at the beginning of the year and 2,623
at the end of the financial year. Series K shares were held by 50 private
individuals (50) at the end of the financial year. Nominee-registered shares
accounted for 3.3 percent (3.1%) of shares. The company did not receive any
flagging notifications in 2015.
On December 31, 2015, the Board of Directors and the Group’s President and CEO
held altogether 228,479 company shares, totaling 5.6 percent (5.7%) of the
company shares and 11.2 percent (11.2%) of the votes. The figures include the
holdings of their own, minor children and control entities.
AUDITORS
At Raute Corporation’s Annual General Meeting on March 24, 2015, the authorized
public accounting company PricewaterhouseCoopers was chosen as auditor with
Authorized Public Accountant Janne Rajalahti as the principal auditor.
CORPORATE GOVERNANCE
In 2015, Raute Corporation has complied with the Finnish Corporate Governance
Code 2010 for listed companies issued by the Securities Market Association on
June 15, 2010.
Raute Corporation’s Corporate Governance Statement and the company’s
remuneration statement will be published at the same time with the financial
statements.
CORPORATE GOVERNANCE STATEMENT
Raute Corporation’s Board of Directors has reviewed Raute Corporation’s
Corporate Governance Statement for 2015 according to chapter 7, section 7 of
the Finnish Securities Markets Act and recommendation 54 of the Finnish
Corporate Governance Code 2010 for listed companies issued by the Securities
Market Association on June 15, 2010. The statement has been drawn up separately
from the Report of the Board of Directors.
BOARD OF DIRECTORS AND PRESIDENT AND CEO
The Annual General Meeting elects the Chairman and Vice-Chairman for the Board
of Directors, and 3–5 Board members.
At Raute Corporation’s Annual General Meeting on March 24, 2015, Mr. Erkki
Pehu-Lehtonen was elected Chairman of the Board, Mr. Mika Mustakallio
Vice-Chairman and Mr. Joni Bask, Mr. Risto Hautamäki, Ms. Päivi Leiwo and Mr.
Pekka Suominen as Board members.
The Board of Directors appoints the President and CEO and confirms the terms of
his or her employment, including fringe benefits.
Mr. Tapani Kiiski, Licentiate in Technology, continued as Raute Corporation’s
President and CEO. He was appointed as Raute Corporation’s President and CEO on
March 16, 2004. As agreed in the executive contract, the term of notice is six
months, and the severance pay equals twelve months’ salary.
Raute Corporation’s Articles of Association do not grant any unusual
authorizations to the Board of Directors, or to the President and CEO.
Any decisions on changes to the Articles of Association or an increase in share
capital are made in compliance with the regulations of the effective Companies
Act.
EXECUTIVE BOARD
Raute Group’s Executive Board and the members’ areas of responsibility:
- Tapani Kiiski, President and CEO, Chairman – Sales
- Arja Hakala, Group Vice President, Finance, CFO – Finance and administration
- Marko Hjelt, Group Vice President, Human Resources – Human resources and
competence development
- Mika Hyysti, Group Vice President, Technology – Technology, products and R&D
- Timo Kangas, Group Vice President, Customer Care and Technology Services –
Customer relationships and marketing, market area EMEA, and as of April 1, 2015
technology services
- Petri Strengell, Group Vice President, Supply Chain – Sourcing and production
and until April 1, 2015 Petri Lakka, Group Vice President, Technology Services.
SHARES
During 2015, a total of 96,480 new series A shares (10.470 shares) were
subscribed for under the 2010 series A, B and C stock option rights.
The number of Raute Corporations shares at the end of 2015 totaled 4,111,708
(4,015,228), of which 991,161 (991,161) were series K shares (ordinary share,
20 votes/share) and 3,120,547 (3,024,067) series A shares (1 vote/share). The
shares have a nominal value of two euros. Series K and A shares confer equal
rights to dividends and company assets.
Series K shares can be converted to series A shares under the terms set out in
section 3 of the Articles of Association. If an ordinary share is transferred
to a new owner who has not previously held series K shares, the new owner must
notify the Board of Directors of this in writing and without delay. In this
kind of situation other holders of series K shares have the right to redeem the
series K share under the terms specified in Article 4 of the Articles of
Association.
Raute Corporation’s series A shares are listed on Nasdaq Helsinki Ltd. The
trading code is RUTAV. During 2015, 1,094,902 shares were traded (593,682)
worth altogether EUR 13.1 million (MEUR 4.6). The number of shares traded
represents 36 percent (20%) of all listed series A shares. The average price of
a series A share was EUR 11.95 (EUR 7.69). The highest closing price of the
year was EUR 14.25 and the lowest EUR 7.17.
The company’s market capitalization at the end of 2015 totaled EUR 58.1 million
(MEUR 29.3), with series K shares valued at the closing price of series A
shares, EUR 14.12 (EUR 7.30), on December 31, 2015.
Raute Corporation has signed a market making agreement with Nordea Bank Finland
Plc in compliance with the Liquidity Providing (LP) requirements issued by
Nasdaq Helsinki Ltd.
Other share-related information is presented in the figures section of this
report.
RAUTE CORPORATION’S 2010A , 2010 B AND 2010 C STOCK OPTIONS
Raute Corporation’s 2010 stock options have been listed on Nasdaq Helsinki Ltd
since April 27, 2015 under the trading codes RUTAVEW110, RUTAVEW210 and
RUTAVEW310. The closing prices at the end of 2015 were EUR 8.00 for series A
stock options, EUR 5.70 for series B stock options and EUR 6.45 for series C
stock options.
In 2015, altogether 54,175 series A shares have been subscribed for with
Raute’s series A 2010 stock options, 21,600 with series B stock options and
20,705 with series C stock options.
At the end of 2015, altogether 15,355 series A stock options, 58,400 series B
stock options and 54,295 series C stock options had not been exercised. The
subscription prices at the end of 2015 were EUR 5.44 for series A stock
options, EUR 7.93 for series B stock options and EUR 6.80 for series C stock
options. The subscription period ends for series A stock options on March 31,
2016, for series B stock options on March 31, 2017 and for series C stock
options on March 31, 2018.
RAUTE’S DIVIDEND POLICY
Raute exercises an active dividend policy. Its aim is to ensure competitive
returns for its investors. Dividend payment takes into account future
investment needs and the goal of maintaining a solid equity ratio. Due to the
nature of the project business, the dividend is not directly tied to the annual
result.
DISTRIBUTION OF PROFIT FOR THE 2014 FINANCIAL YEAR
The Annual General Meeting held on March 24, 2015 decided to pay a dividend of
EUR 0.40 per share for the financial year 2014. The dividends amounted to a
total of EUR 1.6 million, of which series A shares accounted for EUR
1,209,626.80 and series K shares for EUR 396,464.40. The dividend payment date
was April 2, 2015.
The Annual General Meeting on March 24, 2015 resolved, on the basis of the
balance sheet adopted in respect of the financial year that ended on 31
December 2014, on the repayment of assets from the invested non-restricted
equity reserve in the amount of EUR 0.20 per share, i.e. a total of EUR
803,045.60 and the remainder, EUR 4,536,581.73, to be retained in equity. The
date of repayment of equity was April 2, 2015.
AUTHORIZATION OF REPURCHASE AND DISPOSAL OF OWN SHARES
The Annual General Meeting held on March 24, 2015 authorized the company’s
Board of Directors to decide on the repurchase of Raute Corporation series A
shares with assets from the company’s non-restricted equity and to decide on a
directed issue of a maximum of 400,000 shares. The Board of Directors did not
exercise the authorization in 2015.
The company did not possess company shares at the end of the financial period
or hold them as security.
EVENTS AFTER THE FINANCIAL YEAR
Raute Corporation published stock exchange releases on the following events in
2016:
January 18, 2016 Advance information on Raute Group’s 2015 net sales and
operating profit.
PUBLICATION OF THE FINANCIAL STATEMENTS AND ANNUAL REPORT 2015
Raute Corporation’s consolidated financial statements 2015 will be published on
February 16, 2016. Raute Corporation’s Annual Report 2015 will be published
during week 9.
ANNUAL GENERAL MEETING 2016
Raute Corporation’s Annual General Meeting will be held at Lahti’s Sibelius
Hall on Thursday March 31, 2016 at 6:00 p.m. A shareholder who wishes to
include an issue in Raute Corporation’s Annual General Meeting’s agenda shall
notify the company thereof in writing no later than February 23, 2016.
BOARD OF DIRECTORS’ PROPOSAL CONCERNING PROFIT DISTRIBUTION, DIVIDEND EUR 0.80
PER SHARE
On December 31, 2015, the Parent Company’s distributable assets totaled EUR
18,482 thousand, of which EUR 7,725 thousand stand for the profit for the
financial year 2015.
The Board of Directors will propose to Raute Corporation’s Annual General
Meeting, to be held on March 31, 2016, that a dividend of EUR 0.80 per share be
paid to holders of series A shares and series K shares for the financial year
2015, and that the remainder of distributable assets be transferred to equity.
On the date of the profit distribution proposal, the number of shares entitling
to a dividend is 4,111,708 shares, which would amount to total dividends of EUR
3,289 thousand. Shareholders who are registered in the shareholders’ register
maintained by Euroclear Finland Ltd on the record date for dividend
distribution, April 4, 2016, are entitled to dividends. The dividend payment
date would be April 12, 2016.
No essential changes have taken place in the company’s financial position since
the end of the financial year. The company has good liquidity, and in the Board
of Directors’ view, the proposed dividend does not pose a risk to solvency.
OUTLOOK FOR 2016
Raute’s business operations are characterized by the sensitivity of investment
commodity demand to cyclical fluctuations in the global economy and financial
markets.
The development of the global economy and financial markets is facing major
uncertainty and the market situation for Raute’s customer industries is
expected to remain unpredictable.
However, improvement investments in the plywood industry to ensure quality and
cost competitiveness and to maintain market shares are expected to be at a
reasonable level in 2016. Several large projects encompassing single production
lines and new mills’ entire production lines that are in the planning and
negotiation phase are also pending. The demand for technology services is
expected to continue strong.
Thanks to its strong financial and market position and the development measures
carried out, Raute is well positioned to respond to demand.
Based on the existing order book and the prevalent market situation, Raute’s
net sales and operating profit for 2016 are expected to remain at the same
level as in 2015. New orders will likely focus on the second half of the year.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
The figures for the financial year 2015 and 2014 presented in the tables
section of the financial statements bulletin have been audited. The presented
interim financial report figures have not been audited.
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE 1.10.–31 1.10.–31 1.1.–31. 1.1.–31
INCOME .12. .12. 12. .12.
(EUR 1 000) Note 2015 2014 2015 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 3,4,5 39 521 33 978 127 278 94 021
--------------------------------------------------------------------------------
Change in inventories of finished -1 254 710 -313 1 672
goods and work in progress
Other operating income 32 -28 393 72
Materials and services -21 316 -19 574 -67 992 -51 775
Employee benefits expense 13 -8 935 -8 023 -34 310 -29 304
Depreciation and amortization -296 -524 -2 125 -2 018
Impairment -1 370 - -1 370 -
Other operating expenses -3 600 -2 953 -13 441 -10 062
--------------------------------------------------------------------------------
Total operating expenses -35 518 -31 075 -119 238 -93 160
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
OPERATING PROFIT 2 781 3 585 8 120 2 605
--------------------------------------------------------------------------------
% of net sales 7 11 6 3
Financial income 129 244 342 605
Financial expenses -72 -2 -343 -400
--------------------------------------------------------------------------------
PROFIT BEFORE TAX 2 837 3 826 8 118 2 810
--------------------------------------------------------------------------------
% of net sales 7 11 6 3
Income taxes -459 -633 -1 435 -449
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 2 378 3 193 6 684 2 361
--------------------------------------------------------------------------------
% of net sales 6 9 5 3
Other comprehensive income items:
Items that will not be reclassified to
profit or loss
Remeasurement of defined benefit - - 2 2
obligations
Items that may be subsequently
reclassified to profit or loss
Exchange differences on translating -97 158 88 201
foreign operations
Cash flow hedges -21 - 8 -
--------------------------------------------------------------------------------
Comprehensive income items for the -118 158 98 203
period, net of tax
--------------------------------------------------------------------------------
COMPREHENSIVE PROFIT FOR THE PERIOD 2 260 3 351 6 782 2 564
--------------------------------------------------------------------------------
Profit for the period attributable
to
Equity holders of the Parent 2 378 3 193 6 684 2 361
company
Comprehensive profit for the period
attributable to
Equity holders of the Parent 2 260 3 351 6 782 2 564
company
Earnings per share for profit
attributable
to Equity holders of the Parent company,
EUR
Undiluted earnings per share 0,58 0,80 1,65 0,59
Diluted earnings per share 0,57 0,80 1,64 0,59
Shares, 1 000 pcs
Adjusted average number of shares 4 091 4 009 4 051 4 010
Adjusted average number of shares 4 139 4 010 4 079 4 011
diluted
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET 31.12. 31.12.
(EUR 1 000) Note 2015 2014
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Intangible assets 8 1 609 3 492
Property, plant and equipment 8 8 529 7 930
Other financial assets 490 500
Deferred tax assets 172 185
--------------------------------------------------------------------------------
Total non-current assets 10 799 12 107
--------------------------------------------------------------------------------
Current assets
Inventories 9 577 7 855
Accounts receivables and other receivables 5 34 722 27 568
Income tax receivable 123 684
Cash and cash equivalents 6 538 4 431
--------------------------------------------------------------------------------
Total current assets 50 960 40 539
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL ASSETS 61 760 52 646
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to Equity holders of the Parent
company
Share capital 8 223 8 031
Fair value reserve and other reserves 6 008 6 001
Exchange differences 308 220
Retained earnings 8 477 7 722
Profit for the period 6 684 2 361
Share of shareholders' equity that belongs to the 29 700 24 334
owners of the Parent company
--------------------------------------------------------------------------------
Total equity 29 700 24 334
--------------------------------------------------------------------------------
Non-current liabilities
Non-current provisions 455 314
Deferred tax liability 241 238
Non-current interest-bearing liabilities 9 - 1 250
Pension obligations - 2
--------------------------------------------------------------------------------
Total non-current liabilities 696 1 804
--------------------------------------------------------------------------------
Current liabilities
Current provisions 1 409 2 201
Current interest-bearing liabilities 9 1 535 1 512
Current advance payments received 5 11 024 9 072
Income tax liability 11 67
Trade payables and other liabilities 17 386 13 656
--------------------------------------------------------------------------------
Total current liabilities 31 364 26 508
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total liabilities 32 059 28 312
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 61 760 52 646
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS 1.1.–31. 1.1.–31.
12. 12.
(EUR 1 000) 2015 2014
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Proceeds from customers 122 089 89 032
Other operating income 371 95
Payments to suppliers and employees -114 092 -90 193
--------------------------------------------------------------------------------
Cash flow before financial items and taxes 8 368 -1 066
Interest paid from operating activities -115 -217
Dividends received from operating activities 97 100
Interests received from operating activities 5 35
Other financing items from operating activities 105 260
Income taxes paid from operating activities -983 -969
--------------------------------------------------------------------------------
NET CASH FLOW FROM OPERATING ACTIVITIES (A) 7 477 -1 858
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible -2 395 -1 461
assets
Proceeds from sale of property, plant and equipment and 66 361
intangible assets
NET CASH FLOW FROM INVESTING ACTIVITIES (B) -2 329 -1 101
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 607 64
Repayments of current borrowings - -2 000
Repayments of non-current borrowings -1 250 -1 250
Dividends paid and repayment of equity -2 409 -2 003
--------------------------------------------------------------------------------
NET CASH FLOW FROM FINANCING ACTIVITIES (C) -3 052 -5 189
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) 2 096 -8 148
--------------------------------------------------------------------------------
increase (+)/decrease (-)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD* 4 431 12 658
NET CHANGE IN CASH AND CASH EQUIVALENTS 2 096 -8 148
EFFECTS OF EXCHANGE RATE CHANGES ON CASH 11 -79
--------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD* 6 538 4 431
--------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS IN THE BALANCE
SHEET AT THE END OF THE PERIOD*
Cash and cash equivalents 6 538 4 431
--------------------------------------------------------------------------------
TOTAL 6 538 4 431
--------------------------------------------------------------------------------
*Cash and cash equivalents comprise cash and bank receivables, which will be
due within the following three months' period.
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Invested Other Exchang Retain
non-restricte e ed
d
(1 000 EUR) capita equity reserve reserv differe earnin
l es nces gs
--------------------------------------------------------------------------------
EQUITY at Jan. 1, 2014 8 010 6 498 563 20 8 522
--------------------------------------------------------------------------------
Comprehensive profit for the
period
Profit for the period - - - - 2 361
Other comprehensive income
items:
Hedging reserve - - - - -
Exchange differences on - - - 201 -
translating foreign operations
--------------------------------------------------------------------------------
Total comprehensive profit for 0 0 0 201 2 361
the period
--------------------------------------------------------------------------------
Transactions with owners
Share-options exercised 21 43 - - -
Equity-settled share-based
transactions - - 99 - -
Dividends and repayment of - -1 202 - - -801
equity
--------------------------------------------------------------------------------
Total transactions with owners 21 -1 159 99 0 -801
--------------------------------------------------------------------------------
EQUITY at Dec. 31, 2014 8 031 5 339 662 220 10 083
--------------------------------------------------------------------------------
----------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(CONTINUE)
----------------------------------------------------------------
To the owners of
(1 000 EUR) the Parent company TOTAL
----------------------------------------------------------------
EQUITY at Jan. 1, 2014 23 613 23 613
----------------------------------------------------------------
Comprehensive profit for the
period
Profit for the period 2 361 2 361
Other comprehensive income
items:
Hedging reserve - -
Exchange differences on 201 201
translating foreign operations
----------------------------------------------------------------
Total comprehensive profit for 2 562 2 562
the period
----------------------------------------------------------------
Transactions with owners
Share-options exercised 64 64
Equity-settled share-based
transactions 99 99
Dividends and repayment of -2 003 -2 003
equity
----------------------------------------------------------------
Total transactions with owners -1 841 -1 841
----------------------------------------------------------------
EQUITY at Dec. 31, 2014 24 334 24 334
----------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Invested Other Exchang Retain
non-restricted e ed
(EUR 1 000) capita equity reserve reserv differe earnin
l es nces gs
--------------------------------------------------------------------------------
EQUITY at Jan. 1, 2015 8 031 5 339 662 220 10 083
--------------------------------------------------------------------------------
Comprehensive profit for the
period
Profit for the period - - - - 6 684
Other comprehensive income
items:
Hedging reserve - - 8 - -
Exchange differences on - - - 88 -
translating foreign operations
--------------------------------------------------------------------------------
Total comprehensive profit for 0 0 8 88 6 684
the period
--------------------------------------------------------------------------------
Transactions with owners
Share-options exercised 193 414 - - -
Equity-settled share-based
transactions - - 389 - -
Dividends and repayment of - -803 - - -1 606
equity
--------------------------------------------------------------------------------
Total transactions with owners 193 -389 389 0 -1 606
--------------------------------------------------------------------------------
EQUITY at Dec. 31, 2015 8 223 4 950 1 058 308 15 161
--------------------------------------------------------------------------------
----------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(CONTINUE)
To the owners of
(1 000 EUR) the Parent company TOTAL
----------------------------------------------------------------
EQUITY at Jan. 1, 2015 24 334 24 334
----------------------------------------------------------------
Comprehensive profit for the
period
Profit for the period 6 684 6 684
Other comprehensive income
items:
Hedging reserve 8 8
Exchange differences on 88 88
translating foreign operations
----------------------------------------------------------------
Total comprehensive profit for 6 780 6 780
the period
----------------------------------------------------------------
Transactions with owners
Share-options exercised 607 607
Equity-settled share-based
transactions 389 389
Dividends and repayment of -2 409 -2 409
equity
----------------------------------------------------------------
Total transactions with owners -1 413 -1 413
----------------------------------------------------------------
EQUITY at Dec. 31, 2015 29 700 29 700
----------------------------------------------------------------
NOTES
1. General information
Raute Group is a globally operating technology and service company. Raute's
customers are companies operating in the wood products industry that
manufacture veneer, plywood and LVL. Raute's technology offering covers
machinery and equipment for the entire production process. Raute's full-service
concept is based on product life-cycle management. In addition to a broad range
of machines and equipment, our solutions cover technology services ranging from
spare parts deliveries to regular maintenance and equipment modernizations.
Raute's head office is located in Lahti (formerly Nastola municipality),
Finland. Its other production plants are in the Vancouver area in Canada, in
the Shanghai area in China, and in Kajaani, Finland. The company's sales
network has a global reach.
Raute Group's Parent company, Raute Corporation, is a Finnish public limited
liability company established in accordance with Finnish law (Business ID
FI01490726). Its series A shares are quoted on Nasdaq Helsinki Ltd, under
Industrials. Raute Corporation is domiciled in Lahti (formerly Nastola
municipality), Finland. The address of its registered office is Rautetie 2,
FI-15550 Nastola, and its postal address is P.O. Box 69, FI-15551 Nastola.
Raute Corporation's consolidated financial statement information is available
online at www.raute.com or at the head office of the Parent company, Rautetie
2, FI-15550 Nastola, Finland.
Raute Corporation's Board of Directors has on February 16, 2016 reviewed the
financial statements bulletin for January 1 - December 31, 2015, and approved
it to be published in compliance with this release.
2. Accounting principles
Raute Corporation's financial statements bulletin for January 1 - December 31,
2015 has been prepared in accordance with standard IAS 34 Interim Financial
Reporting. The financial statements bulletin does not contain full notes and
other information presented in the financial statements. Raute Corporation's
financial statements with full notes will be published on February 16, 2016.
Raute Corporation's financial statements bulletin for January 1 - December 31,
2015 has been prepared in accordance with the International Financial Reporting
Standards, IFRS, accepted for application in the EU. Preparations have complied
with the IAS
and IFRS standards, as well as SIC and IFRIC interpretations, effective on
December 31, 2015. The notes to the financial statements bulletin also comply
with Finnish accounting legislation.
The financial statements bulletin has been prepared according to the same
accounting principles as those applied in the Annual financial statement for
2015, with the exception of certain new or revised standards, interpretations
and amendments
to existing standards which the Group has applied as of January 1, 2016.
The impact of the new and revised standards has been presented in the Annual
financial statements for 2015. The adoption of these standards has not had an
essential impact on the financial statements bulletin.
All of the figures presented in the financial statements bulletin are in
thousand euro, 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. Figures in parentheses refer to the corresponding
figures in the comparison period.
The preparation of financial statement bulletin in conformity with IFRS
standards requires management to make certain critical accounting estimates and
to exercise its judgment in applying the Group's accounting policies. Because
the forward-looking estimates and assumptions are based on management's best
knowledge at the reporting date, they comprise risks and uncertainties. The
actual results may differ from these estimates.
3. Segment information
Operational segment
Continuing operations of Raute Group belong to the wood products technology
segment.
Due to Raute's business model, operational nature and administrative structure,
the operational segment to be reported as wood products technology segment is
comprised of the whole Group and the information on the segment is consistent
with that of the Group. Segment reporting follows the principles of
presentation of the consolidated financial statements.
------------------------------------------------------------------
31.12. 31.12.
Wood products technology 2015 2014
------------------------------------------------------------------
Net sales 127 278 94 021
Operating profit 8 120 2 605
Assets 61 760 52 646
Liabilities 32 059 28 312
Capital expenditure 2 506 1 675
----------------------------------------------------------------------
Assets of the wood products technology 31.12. 31.12.
segment by geographical location 2015 % 2014 %
----------------------------------------------------------------------
Finland 52 488 85 41 532 79
China 4 572 7 4 672 9
North America 3 655 6 5 222 10
Russia 732 1 886 2
South America 202 0 192 0
Other 112 0 141 0
----------------------------------------------------------------------
TOTAL 61 760 100 52 646 100
----------------------------------------------------------------------
----------------------------------------------------------------------
Capital expenditure of the wood products 31.12. 31.12.
technology segment by geographical location 2015 % 2014 %
----------------------------------------------------------------------
Finland 2 388 95 1 402 84
China 57 2 139 8
North America 61 2 118 7
Russia - - 2 0
South America 1 0 3 0
Other - - 12 1
----------------------------------------------------------------------
TOTAL 2 506 100 1 675 100
----------------------------------------------------------------------
4. Net sales
The main part of the net sales is comprised of project deliveries and
modernizations in technology services, which are treated as long-term projects.
The other net sales is comprised of technology services provided to the wood
products industry such as spare parts and maintenance services as well as
services provided to the development of customers' business.
Project deliveries and modernizations related to technology services include
both product and service sales, making it impossible to give a reliable
presentation of the breakdown of the Group's net sales into purely product and
service sales.
Large delivery projects can temporarily increase the shares of various
customers of the Group’s net sales to more than ten percent. At the end of the
period, the Group had two customers (2), whose customized share of the Group's
net sales
temporarily exceeded ten percent. The sales share of these customers was 35
percent.
--------------------------------------------------------------------------------
1.1.–31 1.1.–31
.12. .12.
Net sales by market area 2015 % 2014 %
--------------------------------------------------------------------------------
EMEA (Europe and Africa) 82 632 66 48 737 52
NAM (North America) 16 962 13 13 167 14
CIS (Russia) 11 841 9 16 813 18
LAM (South America) 8 937 7 12 689 13
APAC (Asia-Pacific) 6 906 5 2 616 3
--------------------------------------------------------------------------------
TOTAL 127 278 100 94 021 100
--------------------------------------------------------------------------------
Finland accounted for 24 percent (6 %) of net sales.
--------------------------------------------------------------------------------
31.12. 31.12.
5. Long-term projects 2015 2014
--------------------------------------------------------------------------------
Net sales
Net sales by percentage of completion 104 251 74 413
Other net sales 23 027 19 608
--------------------------------------------------------------------------------
TOTAL 127 278 94 021
--------------------------------------------------------------------------------
Project revenues entered as income from currently undelivered
long-term projects recognized by percentage of completion 112 329 71 178
Amount of long-term project revenues not yet entered as income 59 210 42 001
(order book)
Projects for which the value by percentage of completion
exceeds
advance payments invoiced
- aggregate amount of costs incurred and recognized profits 72 948 51 832
less recognized losses
- advance payments received 46 415 33 709
--------------------------------------------------------------------------------
Gross amount due from customers 26 533 18 123
--------------------------------------------------------------------------------
Projects for which advance payments invoiced exceed the value
by
percentage of completion
- aggregate amount of costs incurred and recognized profits 36 823 19 233
less recognized losses
- advance payments received 46 294 27 153
--------------------------------------------------------------------------------
Gross amount due to customers 9 471 7 920
--------------------------------------------------------------------------------
Advance payments included in the current liabilities in the
balance sheet
Gross amount due to customers 9 471 7 920
Other advance payments received, not under percentage of 1 553 1 152
completion
--------------------------------------------------------------------------------
Total 11 024 9 072
--------------------------------------------------------------------------------
Specification of combined asset and liability items
Advance payments paid 1 367 891
--------------------------------------------------------------------------------
Advance payments included in inventories in the balance sheet 1 367 891
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
31.12. 31.12.
6. Number of personnel, persons 2015 2014
--------------------------------------------------------------------------------
Effective, on average 614 530
In books, on average 624 545
In books, at the end of the period 646 587
- of which personnel working abroad 205 193
--------------------------------------------------------------------------------
31.12. 31.12.
7. Research and development costs 2015 2014
--------------------------------------------------------------------------------
Research and development costs for period -3 092 -1 767
Amortization of previously capitalized development costs -104 -239
Development costs recognized as an asset in the balance sheet 220 292
--------------------------------------------------------------------------------
Research and development costs entered as -2 976 -1 714
expense for the period before impairment
--------------------------------------------------------------------------------
Impairment of previously capitalized development costs -1 020 -
Research and development costs entered as expense for the -3 996 -1 714
period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
8. Changes in Intangible assets and in Property, 31.12. 31.12.
plant and equipment 2015 2014
--------------------------------------------------------------------------------
Intangible assets
Carrying amount at the beginning of the period 13 826 13 372
Exchange rate differences 60 65
Additions 346 497
Disposals -350 -
Reclassification between items 152 -109
--------------------------------------------------------------------------------
Carrying amount at the end of the period 14 035 13 826
--------------------------------------------------------------------------------
Accumulated depreciation and amortization at the beginning of -10 334 -9 799
the period
Exchange rate differences -32 -34
Accumulated depreciation and amortization of disposals and - 129
reclassifications
Depreciation and amortization for the period -690 -630
Impairment -1 370 -
--------------------------------------------------------------------------------
Accumulated depreciation, amortization and -12 426 -10 334
impairment at the end of the period
--------------------------------------------------------------------------------
Book value of Intangible assets, at the beginning of the 3 492 3 574
period
Book value of Intangible assets, at the end of the period 1 609 3 492
Property, plant and equipment
Carrying amount at the beginning of the period 43 944 42 670
Exchange rate differences -458 451
Additions 2 160 1 178
Disposals -30 -324
Reclassification between items -152 -31
--------------------------------------------------------------------------------
Carrying amount at the end of the period 45 463 43 944
--------------------------------------------------------------------------------
Accumulated depreciation and amortization at the beginning of -36 014 -34 274
the period
Exchange rate differences 502 -356
Accumulated depreciation and amortization of disposals and - 9
reclassifications
Depreciation and amortization for the period -1 422 -1 394
--------------------------------------------------------------------------------
Accumulated depreciation and amortization at the end of the -36 934 -36 014
period
--------------------------------------------------------------------------------
Book value of Property, plant and equipment, at the beginning 7 930 8 396
of the period
Book value of Property, plant and equipment, at the end of the 8 529 7 930
period
--------------------------------------------------------------------------------
31.12. 31.12.
9. Interest-bearing liabilities 2015 2014
--------------------------------------------------------------------------------
Non-current interest-bearing liabilities recognized at
amortized cost
Loans from financial institutions - 1 250
--------------------------------------------------------------------------------
TOTAL - 1 250
--------------------------------------------------------------------------------
Maturities of the interest-bearing financial liabilities at
Dec. 31
Financial liability
--------------------------------------------------------------------------------
Loans from financial institutions, current 1 535 1 512
Loans from financial institutions, non-current - 1 250
--------------------------------------------------------------------------------
TOTAL 1 535 2 762
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
31.12. 31.12.
10. Pledged assets and contingent liabilities 2015 2014
--------------------------------------------------------------------------------
On behalf of the Parent company
Business mortgages 7 869 7 011
Loans from financial institutions 1 250 2 500
Business mortgages 1 250 2 500
Mortgage agreements on behalf of subsidiaries
Loans from financial institutions 285 262
Other obligations 568 227
Business mortgages 881 489
Commercial bank guarantees on behalf of the 11 546 13 999
Parent company and subsidiaries
Other own obligations
Rental liabilities maturing within one year 903 717
Rental liabilities maturing in one to five years 1 301 1 674
Rental liabilities maturing more than five years - 13
--------------------------------------------------------------------------------
Total 2 204 2 404
--------------------------------------------------------------------------------
11. Related party transactions
No loans are granted to the company's management. On December 31, 2015, the
Parent Company Raute Corporation
had loan receivables from its subsidiary Raute Canada Ltd. EUR 992
thousand.
No pledges have been given or other commitments made on behalf of the company's
management and shareholders.
--------------------------------------------------------------------------------
31.12. 31.12.
12. Derivatives 2015 2014
--------------------------------------------------------------------------------
Nominal values of forward contracts in foreign
currency
Economic hedging
- Related to financing - 348
- Related to the hedging of net sales 2 969 2 785
Hedge accounting
- Related to the hedging of net sales 2 679 -
Fair values of forward contracts in foreign currency
Economic hedging
- Related to financing - -7
- Related to the hedging of net sales -89 -136
Hedge accounting
- Related to the hedging of net sales -47 -
13. Share-based payments
An expense of EUR 12 thousand (EUR 99 thousand) was recognized for the options
to the income statement during the reporting period.
A total of 96 480 Raute's series A new shares have been subscribed for with
Raute's stock options 2010 A, 2010 B and 2010 C during the reporting period.
The new shares have been registered in the Trade Register on May 7, 2015, on
July 3, 2015, on August 4, 2015, on October 7, 2015, on November 10, 2015 and
on December 29, 2015. The company's share capital is EUR 8 223 416 and the
number of company's shares 4 111 708 pieces.
An expense of EUR 377 thousand was recognized for the share rewards to the
income statement during the reporting period.
During the reporting period, no share rewards were delivered based on the
long-term share-based incentive program 2014-2018 directed to the top
management.
14. Dividend distribution and repayment of equity
Raute Corporation's Annual General Meeting held on March 24, 2015, decided,
according to the Board of Directors' proposal, to distribute a dividend of EUR
0,40 per share to be paid for series A and K shares, a total of EUR 1 606
thousand. The dividend
payment date was April 2, 2015.
Raute Corporation's Annual General Meeting held on March 24, 2015, decided,
according to the Board of Directors' proposal, to distribute a repayment of
equity EUR 0,20 per share to be paid for series A and K shares, a total of EUR
803 thousand.
The payment date was April 2, 2015.
15. Financial assets and liabilities that are measured at fair value
At the end of the reporting period December 31, 2015, the fair value of the
financial assets categorized at fair value on hierarchy level 2 was EUR 48
thousand. The fair value of the financial assets categorized at fair value
hierarchy level 3 was EUR 490 thousand. The methods of fair value determination
have been presented in the Annual financial statement. There were no transfers
between the hierarchy levels 1 and 2 during the reporting period.
-------------------------------------------------
16. Exchange rates used
1.1.–31.12. 1.1.–31.12.
Income statement, euros 2015 2014
-------------------------------------------------
CNY (Chinese juan) 6,9733 8,1883
RUB (Russian rouble) 68,0090 51,0113
CAD (Canadian dollar) 1,4177 1,4669
USD (US dollar) 1,1097 1,3288
SGD (Singapore dollar) 1,5251 1,6831
CLP (Chilean peso) 725,3048 756,9608
-------------------------------------------------
31.12. 31.12.
Balance sheet, euros 2015 2014
-------------------------------------------------
CNY (Chinese juan) 7,0223 7,6330
RUB (Russian rouble) 80,6736 72,3370
CAD (Canadian dollar) 1,5116 1,4063
USD (US dollar) 1,0887 1,2141
SGD (Singapore dollar) 1,5417 1,6058
CLP (Chilean peso) 765,9751 756,4665
17. The Board of Directors' proposal for dividend distribution and measures
concerning the result of 2015
The Board of Directors will propose to Raute Corporation’s Annual General
Meeting 2016, to be held on March 31, 2016,
that a dividend of EUR 0,80 per share be paid for the financial year 2015, and
that the remainder of distributable funds be transferred to equity. At the date
of the proposal for profit distribution, there is a total of 4,111,708 shares
entitled for the
the dividend, i.e. the total amount of dividends would be EUR 3,289 thousand.
--------------------------------------------------------------------------------
FINANCIAL DEVELOPMENT 31.12. 31.12.
2015 2014
--------------------------------------------------------------------------------
Change in net sales, % 35,4 12,9
Exported portion of net sales, % 76,3 94,3
Return on investment (ROI), % 28,5 10,9
Return on equity, ROE, % 24,7 9,8
Interest-bearing net liabilities, EUR million -5,0 -1,7
Gearing, % -16,8 -6,9
Equity ratio, % 58,5 55,8
Gross capital expenditure, EUR million 2,5 1,7
% of net sales 2,0 1,8
Research and development costs, EUR million 3,1 1,8
% of net sales 2,4 1,9
Order book, EUR million 60 44
Order intake, EUR million 145 112
--------------------------------------------------------------------------------
SHARE-RELATED DATA 31.12. 31.12.
2015 2014
--------------------------------------------------------------------------------
Earnings per share, (EPS), undiluted, EUR 1,65 0,59
Earnings per share, (EPS), diluted, EUR 1,64 0,59
Equity to share, EUR 7,26 6,06
Dividend per series A share, EUR 0,80* 0,40
Dividend per series K share, EUR 0,80* 0,40
Dividend per profit, % 48,4* 68,0
Effective dividend return, % 5,7* 5,50
Repayment of equity from invested non-restricted equity -* 0,20
reserve, EUR
* Board of Directors' proposal to the Annual General
Meeting.
Development in share price (series A shares)
Lowest share price for the period, EUR 7,17 6,90
Highest share price for the period, EUR 14,25 8,60
Average share price for the period, EUR 11,95 7,69
Share price at the end of the period, EUR 14,12 7,30
Market value of capital stock
- Series K shares, EUR million* 14,0 7,2
- Series A shares, EUR million 44,1 22,1
--------------------------------------------------------------------------------
Total, EUR million 58,1 29,3
--------------------------------------------------------------------------------
* Series K shares valued at the value of series A shares.
Trading of the company's shares (series A shares)
Trading of shares, pcs 1 094 902 593 682
Trading of shares, EUR million 13,1 4,6
Number of shares
- Series K shares, ordinary shares (20 votes/share) 991 161 991 161
- Series A shares (1 vote/share) 3 120 547 3 024 067
--------------------------------------------------------------------------------
Total 4 111 708 4 015 228
--------------------------------------------------------------------------------
Number of shares, weighted average, 1 000 pcs 4 051 4 010
Number of shares, diluted, 1 000 pcs 4 139 4 017
Number of shareholders 31.12. 2 623 1 991
--------------------------------------------------------------------------------
DEVELOPMENT OF Q 1 Q 2 Q 3 Q 4 Rolling Rolling
QUARTERLY 2015 2015 2015 2015 1.1.2015 1.1.2014
RESULTS
(EUR 1 000) – –
31.12.2015 31.12.2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 24 606 31 759 31 391 39 521 127 278 94 021
--------------------------------------------------------------------------------
Change in inventories of
finished
goods and work 312 -532 1 161 -1 254 -313 1 672
in progress
Other 40 314 7 32 393 72
operating
income
Materials and -11 856 -16 197 -18 623 -21 316 -67 992 -51 775
services
Employee -8 140 -8 878 -8 357 -8 935 -34 310 -29 304
benefits
expense
Depreciation -548 -716 -565 -296 -2 125 -2 018
and
amortization
Impairment -1 370 -1 370
Other -3 211 -3 529 -3 102 -3 600 -13 441 -10 062
operating
expenses
--------------------------------------------------------------------------------
Total -23 754 -29 320 -30 646 -35 518 -119 238 -93 160
operating
expenses
--------------------------------------------------------------------------------
OPERATING 1 204 2 222 1 912 2 781 8 120 2 605
PROFIT
--------------------------------------------------------------------------------
% of net sales 5 7 6 7 6 3
Financial 266 -10 -42 129 342 605
income
Financial -112 -61 -99 -72 -343 -400
expenses
--------------------------------------------------------------------------------
PROFIT BEFORE 1 359 2 151 1 772 2 837 8 118 2 810
TAX
--------------------------------------------------------------------------------
% of net sales 6 7 6 7 6 3
Income taxes -276 -400 -300 -459 -1 435 -449
--------------------------------------------------------------------------------
PROFIT FOR 1 083 1 750 1 472 2 378 6 684 2 361
THE PERIOD
--------------------------------------------------------------------------------
% of net sales 4 6 5 6 5 3
Attributable
to
Equity holders 1 083 1 750 1 472 2 378 6 684 2 361
of the Parent
company
Earnings per
share, EUR
Undiluted 0,27 0,43 0,36 0,58 1,65 0,59
earnings per
share
Diluted 0,27 0,43 0,36 0,57 1,64 0,59
earnings per
share
Shares, 1 000
pcs
Adjusted 4 015 4 025 4 053 4 091 4 051 4 010
average
number of
shares
Adjusted
average
number of
shares
diluted 4 043 4 036 4 065 4 139 4 079 4 011
--------------------------------------------------------------------------------
FINANCIAL Q 1 Q 2 Q 3 Q 4 Rolling Rolling
DEVELOPMENT
QUARTERLY
2015 2015 2015 2015 1.1.2015 1.1.2014
– –
31.12.2015 31.12.2014
--------------------------------------------------------------------------------
Order intake 84 31 14 16 145 112
during the
period, EUR
million
Order book at 101 100 83 60 60 44
the end of
the period,
EUR million
--------------------------------------------------------------------------------
20 LARGEST SHAREHOLDERS AT DEC. 31,
2015
By number of Number of Number of Total % of Total % of
shares series K series A number of total number of voting
shares shares shares shares votes rights
--------------------------------------------------------------------------------
1. Sundholm - 623 423 623 423 15,2 623 423 2,7
Göran Wilhelm
2. Mandatum - 182 635 182 635 4,4 182 635 0,8
Life
Unit-Linked
3. Laakkonen - 119 919 119 919 2,9 119 919 0,5
Mikko
4. Suominen 48 000 62 429 110 429 2,7 1 022 429 4,5
Pekka
5. Siivonen 50 640 53 539 104 179 2,5 1 066 339 4,6
Osku Pekka
6. Kirmo Kaisa 55 680 48 341 104 021 2,5 1 161 941 5,1
Marketta
7. Suominen 48 000 54 316 102 316 2,5 1 014 316 4,4
Tiina
Sini-Maria
8. Relander - 85 000 85 000 2,1 85 000 0,4
Harald Bertel
9. Keskiaho 33 600 51 116 84 716 2,1 723 116 3,2
Kaija Leena
10. 57 580 26 270 83 850 2,0 1 177 870 5,1
Mustakallio
Mika Tapani
11. Särkijärvi 60 480 22 009 82 489 2,0 1 231 609 5,4
Anna Riitta
12. 60 480 500 60 980 1,5 1 210 100 5,3
Mustakallio
Kari Pauli
13. 43 240 16 047 59 287 1,4 880 847 3,8
Mustakallio
Marja Helena
14. Särkijärvi 12 000 43 256 55 256 1,3 283 256 1,2
Timo Juha
15. 12 000 43 256 55 256 1,3 283 256 1,2
Särkijärvi-Ma
rtinez Anu
Riitta
16. 53 240 - 53 240 1,3 1 064 800 4,6
Mustakallio
Ulla Sinikka
17. Suominen 24 960 27 964 52 924 1,3 527 164 2,3
Jukka Matias
18. - 51 950 51 950 1,3 51 950 0,2
Keskinäinen
työeläkevakuu
tusyhtiö Varma
19. Suominen 48 000 - 48 000 1,2 960 000 4,2
Jussi Matias
20. Keskiaho 24 780 19 094 43 874 1,1 514 694 2,2
Ilta Marjaana
--------------------------------------------------------------------------------
TOTAL 632 680 1 531 064 2 163 744 52,6 14 184 664 61,8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
By number of Number of Number of Total % of Total % of
votes series K series A number of total number of voting
shares shares shares shares votes rights
--------------------------------------------------------------------------------
1. Särkijärvi 60 480 22 009 82 489 2,0 1 231 609 5,4
Anna Riitta
2. Mustakallio 60 480 500 60 980 1,5 1 210 100 5,3
Kari Pauli
3. Mustakallio 57 580 26 270 83 850 2,0 1 177 870 5,1
Mika Tapani
4. Kirmo Kaisa 55 680 48 341 104 021 2,5 1 161 941 5,1
Marketta
5. Siivonen 50 640 53 539 104 179 2,5 1 066 339 4,6
Osku Pekka
6. Mustakallio 53 240 - 53 240 1,3 1 064 800 4,6
Ulla Sinikka
7. Suominen 48 000 62 429 110 429 2,7 1 022 429 4,5
Pekka
8. Suominen 48 000 54 316 102 316 2,5 1 014 316 4,4
Tiina
Sini-Maria
9. Suominen 48 000 - 48 000 1,2 960 000 4,2
Jussi Matias
10. 43 240 16 047 59 287 1,4 880 847 3,8
Mustakallio
Marja Helena
11. 42 240 - 42 240 1,0 844 800 3,7
Mustakallio
Risto Knut
kuolinpesä
12. Keskiaho 33 600 51 116 84 716 2,1 723 116 3,2
Kaija Leena
13. Sundholm - 623 423 623 423 15,2 623 423 2,7
Göran Wilhelm
14. Keskiaho 29 680 - 29 680 0,7 593 600 2,6
Vesa Heikki
15. Keskiaho 27 880 6 416 34 296 0,8 564 016 2,5
Juha-Pekka
16. Kirmo 27 645 4 221 31 866 0,8 557 121 2,4
Lasse Antti
17. Suominen 24 960 27 964 52 924 1,3 527 164 2,3
Jukka Matias
18. Keskiaho 24 780 19 094 43 874 1,1 514 694 2,2
Ilta Marjaana
19. Kultanen 22 405 8 031 30 436 0,7 456 131 2,0
Leea Annikka
20. Molander 20 160 - 20 160 0,5 403 200 1,8
Sole
--------------------------------------------------------------------------------
TOTAL 778 690 1 023 716 1 802 406 43,8 16 597 516 72,3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
MANAGEMENT'S AND PUBLIC INSIDERS' SHAREHOLDING AND NOMINEE-REGISTERED
SHARES
Number of Number Total % of Total % of
series K of number total number of total
shares series A of shares votes voting
shares shares rights
--------------------------------------------------------------------------------
Management's and Public insiders' holding at
December 31, 2015
The Board of 122 830 115 349 238 179 5,8 2 571 949 11,2
Directors, The
Group's President
and CEO and
Executive Board*
--------------------------------------------------------------------------------
TOTAL 122 830 115 349 238 179 5,8 2 571 949 11,2
--------------------------------------------------------------------------------
*The figures include the holdings of their own,
minor children and control entities.
--------------------------------------------------------------------------------
Nominee-registered - 136 250 136 250 3,3 136 250 0,6
shares at Dec. 31,
2015
--------------------------------------------------------------------------------
RAUTE CORPORATION
Board of Directors
PRESS CONFERENCE ON FEBRUARY 16, 2016 AT 2 P.M.:
A briefing will be organized for analysts, investors and the media on February
16, 2016 at 2 p.m. at Scandic Simonkenttä Hotel, Tapiola cabinet, Simonkatu 9,
Helsinki. The financial statements will be presented by Mr. Tapani Kiiski,
President and CEO, and Ms. Arja Hakala, CFO.
FINANCIAL RELEASES IN 2016:
Raute’s interim reports will be published as follows:
- January–March on Friday, April 29, 2016
- January–June on Wednesday, July 27, 2016
- January–September on Wednesday, October 26, 2016
Raute Corporation’s consolidated financial statements will be published on
February 16, 2016. Raute Corporation’s Annual Report 2015 will be published
during week 9.
Raute Corporation’s Annual General Meeting will be held in Lahti, at Sibelius
Hall on Thursday, March 31, 2016 at 6:00 p.m.
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, mobile phone +358 400
814 148
Ms. Arja Hakala, CFO, Raute Corporation, mobile phone +358 400 710 387
DISTRIBUTION:
Nasdaq OMX Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s
customers are companies operating in the wood products industry that
manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology
offering covers machinery and equipment for the customer’s entire production
process. As a supplier of mill-scale projects, Raute is a global market leader
both in the plywood and LVL industries. Additionally, Raute’s full-service
concept includes technology services ranging from spare parts deliveries to
regular maintenance and equipment modernizations. Raute’s head office is
located in the Nastola area of Lahti, Finland. Its other production plants are
in Kajaani, Finland, the Vancouver area of Canada and in the Shanghai area of
China. Raute’s net sales in 2015 were EUR 127.3 million. The Group’s headcount
at the end of 2015 was 646.
More information on the company can be found at www.raute.com.
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