2010-02-19 07:00:00 CET
2010-02-19 07:00:06 CET
REGULATED INFORMATION
HKScan Oyj - Financial Statement Release
HKSCAN GROUP'S FINANCIAL STATEMENTS RELEASE FOR THE FINANCIAL YEAR OF 1 JAN - 31 DEC 2009
HKScan Corporation STOCK EXCHANGE RELEASE, 19 February 2010 at 08:00
HKSCAN GROUP'S FINANCIAL STATEMENTS RELEASE FOR THE FINANCIAL YEAR OF 1 JAN - 31
DEC 2009
* The HKScan Group's competitiveness grew stronger and supplier shares increased
in all market areas in 2009.
* Reported EBIT increased by 45% and came to EUR 55.1 million (EUR 38.1m). EBIT
exclusive of non-recurring items, which totalled EUR 12.7 million, climbed to
EUR 67.8 million (EUR 38.1 m).
* Owing to improved profitability and reduced financing costs, pre-tax profit
quadrupled to EUR 37.3 million (EUR 9.0m).
* Owing to exchange rate fluctuations, full-year net sales in euro declined by
7.4 percent but remained at the previous year's level when calculated at fixed
rates.
* The share offering executed in December strengthened the Group's balance sheet
structure.
HKSCAN CONSOLIDATED INCOME STATEMENT, Q4 and the entire year
(EUR million)
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| | Q4/2009 | Q4/2008 | 2009 | 2008 |
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| Net sales | 557.5 | 592.3 | 2 124.7 | 2 294.6 |
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| EBIT | 18.4 | 15.3 | 55.1 | 38.1 |
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| - as % of net sales | 3.3 | 2.6 | 2.6 | 1.7 |
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| Share of associates' result | 0.6 | -0.1 | 2.0 | 0.9 |
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| Financial income and | -3.6 | -9.4 | -19.7 | -30.1 |
| expenses, net | | | | |
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| Profit before taxes | 15.4 | 5.9 | 37.3 | 9.0 |
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| - as % of net sales | 2.8 | 1.0 | 1.8 | 0.4 |
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| Income taxes | -1.6 | 2.1 | -4.9 | -1.4 |
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| Profit for the period | 13.8 | 8.0 | 32.5 | 7.6 |
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| - as % of net sales | 2.5 | 1.4 | 1.5 | 0.3 |
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| Profit attributable to: | | | | |
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| - Equity holders of the | 13.2 | 6.9 | 29.9 | 4.7 |
| parent | | | | |
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| - Minority interests | 0.6 | 1.1 | 2.6 | 2.9 |
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| Total | 13.8 | 8.0 | 32.5 | 7.6 |
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| EPS, undiluted, EUR | 0.28 | 0.15 | 0.64 | 0.10 |
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| EPS, diluted, EUR | 0.28 | 0.15 | 0.64 | 0.10 |
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Per-share data has been adjusted for the share offering in 2009.
Q4/2009, OCTOBER-DECEMBER
- The final quarter of 2009 was a successful one both commercially and
financially.
- The Group's EBIT rose from the corresponding period a year earlier to EUR 18.4
million (EUR 15.3m), an increase of 20.3 percent. EBIT for the quarter was
eroded by non-recurring charges totalling EUR 5.8 million (EUR 0m).
- Net sales came to EUR 557.5 million (EUR 592.3m). The year-on-year decline of
5.9 percent arose from exchange rate fluctuations and a low price level in
exports.
CEO MATTI PERKONOJA:
“The final quarter of the year was a resounding success in terms of both sales
and financial performance in all market areas. In the Baltics, Rakvere
Lihakombinaat and Tallegg exceeded the Group's EBIT target of five percent. The
market area of Sweden also developed favourably in the fourth quarter and had it
not been for non-recurring charges of EUR 5.8 million, EBIT in Sweden as well
would have climbed to five percent of net sales. The fact that this was
accomplished amidst the restructuring and reorganization ongoing in the Scan
Group only makes the achievement more remarkable. In Poland, Sokolów posted the
best quarterly results in its history. In the market area of Finland, HK
Ruokatalo's solid earnings development carried through until the end of the
year.
A share offering amounting to roughly EUR 78 million was executed in December
2009. The proceeds of this share offering were used to strengthen the company's
capital structure and to increase its operational and strategic flexibility.
The year under review saw the implementation of a new management system as well
as the determination and development of operational and administrative Group
processes to achieve financial benefits. Particular attention was also paid to
matters pertaining to responsibility and risk management.
The HKScan Group improved its profitability in line with plans in 2009. Most
pleasingly, performance in the latter half of the year in fact outstripped
expectations. HKScan is headed in the right direction.”
MARKET AREA: FINLAND
(EUR million)
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| | Q4/2009 | Q4/2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
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| Net sales | 185.4 | 197.3 | 732.5 | 740.4 |
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| EBIT | 6.4 | 6.4 | 27.0 | 14.4 |
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| - EBIT margin, % | 3.5 | 3.2 | 3.7 | 1.9 |
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Profitability in the market area of Finland continued to rise in line with plans
throughout the financial year and showed a considerable improvement when
compared to the previous year.
HK Ruokatalo's domestic market sales by both volume and value increased by
roughly 10% and the company achieved greater supplier shares. The excellent
delivery reliability maintained all year further contributed to customer
satisfaction. The sales of processed meats, which first picked up in late 2008,
continued to rise all through the year. The holiday season, vital to the
company's earnings performance, was highly successful, and HK Ruokatalo was the
nation's largest supplier of Christmas hams.
Matters pertaining to responsibility were underscored in business operations.
The fall of 1.1 percent in net sales in HKScan's Finnish market area is
attributable to the planned decrease of export sales.
A cost provision totalling of EUR 1.1 million and relating to personnel cuts at
HK Ruokatalo's Forssa production facilities in 2006 is recognized in the figures
for 2009. Severance pay of EUR 1.3 million to HKScan Corporation's former CEO is
included in Group administration costs.
MARKET AREA: SWEDEN
(EUR million)
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| | Q4/2009 | Q4/2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 278.3 | 301.6 | 1 037.4 | 1 179.3 |
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| EBIT | 9.1 | 8.6 | 16.7 | 18.0 |
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| - EBIT margin, % | 3.3 | 2.9 | 1.6 | 1.5 |
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The performance of Scan AB and its subsidiaries improved throughout the year and
especially in the final quarter, the best of the year. EBIT exclusive of
non-recurring items rose to EUR 14.9 million (EUR 8.6m) or 5.4 percent (2.9%) of
net sales. The profitability of operations was successfully enhanced despite the
challenges presented by the market and restructuring. In terms of profitability,
the year 2009 was the best in the company's history.
All in all, non-recurring charges of roughly EUR 10.3 million (EUR 0m) were
recognized in Sweden in 2009. These had to do with the ongoing streamlining
programme and changes in management. Non-recurring charges recognized in Q4
amounted to EUR 5.8 million (EUR 0m).
The weakening of the Swedish crown against the euro resulted in lower
euro-denominated net sales and EBIT. Measured in crowns, net sales fell by 2.9
percent on the year.
March 2009 saw the launch of a three-year streamlining programme designed to
bring Scan's profitability up to the Group's EBIT target level of 5 percent. The
tools employed to this end are a leaner cost structure at Scan, the introduction
of higher value-added products and more efficient commercial operations.
To allow a sustained approach to developing the procurement of meat raw
material, Scan established a separate procurement company Svenska Livdjur och
Service (SLS) that in future will attend to Scan's producer contracts, meat
purchases and production counselling in a centralized manner.
Scan AB's management changed on 4 March 2009 when managing director Magnus
Lagergren and senior VP/director Matts Rosendahl decided to leave the company.
Olli Antniemi, BSc (Econ) replaced Lagergren as managing director and was
replaced in turn by Denis Mattsson eMBA on 23 June 2009.
MARKET AREA: THE BALTICS
(EUR million)
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| | Q4/2009 | Q4/2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
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| Net sales | 38.1 | 43.0 | 156.9 | 168.2 |
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| EBIT | 2.0 | 0.6 | 9.8 | 6.4 |
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| - EBIT margin, % | 5.1 | 1.4 | 6.3 | 3.8 |
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HKScan's Baltic Group posted an excellent financial result. This accomplishment
is made even more remarkable by the fact that it was delivered by AS Rakvere
Lihakombinaat and Tallegg in a highly demanding business environment. Successful
cost management, operational flexibility and product launches matching the
spirit of the times kept financial performance sound despite a 6.7-percent
decline in net sales over the year.
The deep economic recession and decline in consumer purchasing power were
clearly reflected in demand in all Baltic states. Nonetheless, Rakvere
Lihakombinaat and Tallegg managed to grow their EBIT and further strengthen
their market standing.
MARKET AREA: POLAND
(EUR million)
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| *) | Q4/2009 | Q4/2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
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| Net sales | 65.1 | 66.3 | 251.7 | 270.9 |
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| EBIT | 2.9 | 1.9 | 9.3 | 4.2 |
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| - EBIT margin, % | 4.4 | 2.9 | 3.7 | 1.6 |
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*) The figures refer to HKScan's share (50%) of the Sokolów Group's figures.
In Poland, Sokolów continued to grow its net sales and improve its profitability
in the final quarter of the year to deliver an EBIT margin of 4.4 percent (2.9%)
The company's sales increased in terms of both volume and value. Measured in
zloty, Sokolów's net sales grew by 14 percent on the year, yet fell short of the
euro-denominated figure a year earlier due to changes in exchange rates.
The increase in net sales in 2009 was attributable to successful sales in the
domestic market, higher exports, and cost management. The ongoing recession had
little effect on the food-buying decisions of Polish consumers in 2009.
INVESTMENTS
The Group's production-related gross investments in 2009 totalled EUR 41.3
million (EUR 84.0m). Breakdown of investments by market area: Finland EUR 8.0
million, Sweden EUR 18.5 million and the Baltics EUR 7.3 million. HKScan's share
of Sokolów investments in Poland added a further EUR 7.5 million.
The most important undertaking in Sweden was the new distribution centre rising
in Linköping, where installations of machinery and equipment continued. The
centre will come online in spring 2010. No major investments were underway in
Finland or the Baltics.
FINANCING
Group funding is based on a EUR 550 million syndicated credit facility signed in
June 2007, comprising a EUR 275 million seven-year amortising term loan and a
EUR 275 million five-year credit limit with two one-year extension options, one
of which has been exercised. Untapped credit facilities at 31 December 2009
stood at EUR 207 million (EUR 140m). In addition, the Group had other untapped
overdraft and other facilities of EUR 39 million (EUR 37m). The EUR 100 million
commercial paper programme had been drawn in the amount of EUR 5 million (EUR
0m). The increase in untapped facilities was due to the share offering, the net
proceeds of which were used to pay down debt. In connection with the offering,
the company also paid back its EUR 20 million hybrid bond.
The company has experienced no problems with re-financing and sees no
significant need for further financing before the year 2013. The company's
current loan agreements are subject to ordinary terms relating to profit and
balance sheet. The financial covenants are net gearing ratio and ratio of net
debt to EBITDA.
The share offering executed in December 2009 strengthened the company's capital
structure and the equity ratio climbed to 37.1 percent at year-end (29.5%).
Consolidated cash flow from operating activities improved owing to better
financial performance and prudent consideration of investments delivered
stronger net cash flow from investing activities.
TAXES
The Group's taxes for January to December 2009 totalled EUR -4.9 million (EUR
-1.4m). The effective tax rate was 13.0 percent (15.3%). The lower effective tax
rate was the result of a number of distinct factors, with the greatest impacts
originating in the Baltics and Sweden. In Baltic operations, advantage was taken
of Estonia's zero tax rate on retained profits. In Sweden, the company utilized
losses on which a deferred tax asset had not been recognized earlier.
EFFECT OF CURRENCY EXCHANGE RATES
Of the Group's main currencies, the Swedish crown and the Polish zloty started
to plunge against the euro in autumn 2008 and hit bottom in February-March 2009.
Both currencies have picked up since then but remain below their long-term
levels. Fluctuations in currency exchange rates become visible upon the
consolidation of the figures of foreign business segments. At the closing date,
an average of two thirds of the equities of foreign subsidiaries had been
hedged.
SHARE OFFERING AND BOND ISSUE
Pursuant to an authorization granted by the Extraordinary Meeting of
Shareholders on 24 November 2009, HKScan's Board of Directors between 2 and 17
December 2009 executed a directed share issue in which shareholders had
pre-emptive right to subscribe for new A Shares in proportion to their existing
holding of the company's series A and/or K shares. The share offering was
warranted in order to strengthen the company's capital structure and to increase
its operational and strategic flexibility. The subscription price was EUR 5.30
per share.
A total of 14 720 329 new A Shares were subscribed for, approximately 99.0
percent in the primary subscription and the remaining shares in the secondary
subscription. The proceeds of the share offering amounted to approximately EUR
78.0 million before fees and expenses related to the offering.
As a result of the share offering, the total number of HKScan shares increased
to 54 026 522 shares and the number of A Shares to 48 626 522 shares. The new
shares entitle shareholders to dividend and other rights effective 29 December
2009, on which date the shares were entered in the Trade Register. The company's
registered share capital did not increase as a result of the offering, as the
proceeds were recognized in full in the reserve for invested unrestricted equity
(RIUE).
The company allocated EUR 20 million of the proceeds of the offering to repaying
in late December the hybrid bond which it had issued to its majority
shareholders in September 2008. The bond was originally issued to strengthen the
company's capital structure. It carried an interest rate of 8.5 percent p.a. and
had no maturity. The bond was treated as equity in the IFRS financial
statements. HKScan paid the interest on the bond for 2009 in cash, though the
holders of the bond also had the option of accepting company shares in lieu of
cash. The remaining proceeds of the offering were used to pay other
interest-bearing debts.
RESEARCH AND DEVELOPMENT
Practically all research and development in the HKScan Group involves normal
product development, meaning the development of new products over a span of one
to two years and the updating of products already on the market. A total of EUR
8.9 million (EUR 13.1m) was spent on R&D in 2009, equal to 0.4 percent of net
sales.
CHANGES IN MANAGEMENT
HKScan Corporation's management changed on 5 January 2009 when the Board of
Directors relieved CEO Kai Seikku of his duties. Seikku had served as CEO since
April 2006. CFO Matti Perkonoja was appointed CEO effective 12 January 2009. He
had been the CFO of HKScan since 2000 and also served in commercial and
industrial executive positions in the Group which he joined in 1993. It was
agreed that Mr Perkonoja would serve as CEO until the end of 2010. In January
2010, however, the Board and Mr Perkonoja agreed that he would stay on as CEO
until the end of February 2012, after which time he plans to retire.
The Group's Management Team was augmented in January with the inclusion of CFO
Irma Kiilunen and VP of strategy and development Tero Hemmilä. VP Tero Hemmilä
left HKScan at the beginning of 2010.
In Sweden, Scan AB's managing director Magnus Lagergren resigned on 4 March
2009. Olli Antniemi, BSc (Econ) replaced Lagergren as managing director and was
replaced in turn by Denis Mattsson eMBA on 23 June 2009.
HKScan Corporation Board member Lars Hultström announced his resignation from
the Board on 1 December 2009, effective immediately. Hulström was elected to the
Board as a new member by the Annual General Meeting of Shareholders of 23 April
2009.
AMENDMENTS TO THE ARTICLES OF ASSOCIATION
The Articles of Association were amended on two occasions during the year under
review. The Annual General Meeting of Shareholders of 23 April 2009 passed a
resolution to amend Article 7 concerning notice of meeting deadlines to read as
follows: “Notice of general meetings of shareholders shall be given by
announcement published in at least two (2) newspapers designated by the Board of
Directors no earlier than three (3) months and no later than three (3) weeks
prior to the meeting.”
The Extraordinary General Meeting of Shareholders of 24 November 2009 passed a
resolution to increase the number of A Shares mentioned in the Articles of
Association. The amended Article 3 reads as follows: “At least 3,600,000 and at
most 8,000,000 of the total number of shares in the company are Series K shares
and at least 400,000 and at most 60,000,000 are Series A shares. Holders of
Series K and Series A shares are entitled to exercise their right to vote at
meetings of shareholders as provided in Article 5 of these Articles of
Association.”
SHAREHOLDERS AND SHARE CAPITAL
At the end of the financial year, a total of 11 387 shareholders were entered in
the register of shareholders, compared to 8 356 the year before. At the end of
2009, 25.1 percent (29.6%) of the company's shares were nominee registered or
held by non-domestic shareholders.
The Company's registered and fully paid-up share capital at the beginning of the
financial year and at the balance sheet date was EUR 66 820 528.10. The share
capital breaks down as follows:
Series A shares 48 626 522 shares 90.0%
Series K shares 5 400 000 shares 10.0%
Total 54 026 522 shares 100%
Each A Share conveys one vote and each K Share 20 votes. The K Shares are held
by LSO Osuuskunta (4 375 000 shares) and Swedish Meats (665 000 shares). Each
share gives equal entitlement to a dividend. The shares have no nominal value.
INCREASES IN SHARE CAPITAL FROM 2007 TO 2009
The company's share capital reported to the Trade Register was not increased
during the financial year 2009. The proceeds of roughly EUR 78 million from the
share offering executed in November-December 2009 were recognized in full in the
reserve for invested unrestricted equity (RIUE).
No share capital increases or share offerings took place in the 2008 financial
year.
The most recent share capital increase took place in January 2007 with the
directed issue of 4 843 000 A Shares to Swedish Meats. The issue was part of the
acquisition of the business of Swedish Meats (Scan AB). The subscription period
was 29 January 2007 and the issue price was EUR 15.55 per share. The company's
share capital was increased by EUR 8 233 100.00 to the current EUR 66 820
528.10. The increase was entered in the Trade Register on 5 February 2007. The
new shares first entitled to dividend for the 2007 financial year.
STOCK EXCHANGE LISTINGS
HKScan's A Share has been quoted on Nasdaq OMX since 6 February 1997 in the
sector of Consumer Staples. During the year under review, 22 285 126 of the
company's shares were traded for a total of EUR 149 498 534.
The highest price quoted was EUR 10.38 and the lowest EUR 3.70. The middle price
was EUR 7.18 and the year-end closing price was EUR 7.85. The share price rose
by 77.6 percent on the year while the index for the Food Products sector
(HX302020) rose by 47.8 percent on the year.
The company's market capitalization (A and K Shares) at year-end was EUR 423.7
million, having stood at EUR 173.7 million a year earlier.
HKScan has in place a market making agreement with FIM Pankkiiriliike Oy which
meets the requirements of NASDAQ OMX's Liquidity Providing (LP) operation.
TREASURY SHARES
At 1 January 2009, HKScan held a total of 4 474 of its A Shares. Over the course
of the year, 47 508 shares assigned in the years 2006-2008 as part of the key
employees' share bonus scheme reverted back to the company. At 31 December 2009,
the company held a total of 51 982 of its A Shares. These had a market value of
EUR 0.41 million (EUR 7.85 each) and accounted for 0.10% of all shares and 0.03%
of all votes. No dividend is paid on treasury shares.
NOTICES OF CHANGES IN OWNERSHIP
During 2009, the company received three notices regarding changes in holdings
pursuant to Chapter 2:9 of the Securities Markets Act.
(1) Artio Global Management LLC announced that as a result of a share
transaction executed on 20 April 2009, its shareholding in HKScan Corporation
had fallen to zero.
(2) HKScan Corporation and Danske Bank A/S signed on 24 November 2009 an
underwriting agreement relating to HKSCan's upcoming share offering. In
consequence of the agreement, Danske Bank A/S Helsinki Branch announced that its
holding in HKScan would rise to 14.2 percent of the shares and 4.9 percent of
the votes in the company if its underwriting commitment was realized in full.
Under the agreement, Danske Bank A/S Helsinki Branch committed, subject to
certain conditions, to subscribe for offered shares that remain unsubscribed for
in HKScan's rights offering.
(3) HKScan Corporation announced the final result of the share offering on 23
December 2009. The underwriting commitment announced by Danske Bank A/S in the
notification released on 24 November 2009 thus did not materialize and neither
was the potential shareholding announced in the said notification realized.
Danske Bank gave the company notification to this effect on 23 December 2009.
BOARD OF DIRECTORS' EXISTING AUTHORIZATIONS
(1) The Board holds the authorisation granted by the AGM on 23 April 2009 to
decide on acquiring a maximum of 3 500 000 Series A shares as treasury shares,
equivalent to approximately 8.9% of total registered shares and 10.3% of total A
Shares.
Treasury shares may only be acquired using unrestricted shareholders' equity.
The company's own shares may be purchased for a price quoted in public trading
on the purchase day or for a price otherwise determined by the market.
The Board of Directors shall resolve upon the method of purchase. Among other
means, derivatives may be utilized in purchasing the shares. The shares may be
purchased in a proportion other than that of the shares held by the shareholders
(directed purchase). The authorisation is valid until 30 June 2010. To date, the
Board of Directors has not exercised this authorisation.
(2) The Board of Directors also holds an authorisation to resolve on an issue of
shares, options as well as other instruments entitling to shares as referred to
in Chapter 10:1 of the Finnish Limited Liability Companies Act. The Board was
authorized to resolve on the issue of a maximum of 5 500 000 A Shares,
corresponding to ca. 14.0% of all registered shares in the company and ca. 16.2%
of all A Shares.
The Board may resolve upon all the terms and conditions of the issue of shares
and other special rights entitling to shares. The authorisation to issue shares
shall cover the issuing of new shares as well as the transfer of the company's
own shares. The issue of shares and other special rights entitling to shares may
be implemented as a directed issue. The authorisation is valid until 30 June
2010.
The authorisations concerning purchases of own shares and share issue were
granted to provide the company's Board with flexibility in deciding on capital
market transactions necessary to the company, e.g. to secure its financing needs
or to execute mergers and acquisitions. A directed acquisition of own shares or
directed share issue can only be executed for reasons of weighty financial
consequence to the company and the authorisation cannot be exercised in
violation of the principle of shareholder equality.
EMPLOYEES
The HKScan Group had an average of 7 427 employees in 2009 (7 750). The
reduction is attributable to the ongoing streamlining and cost-effectiveness
measures in the market areas of Sweden and the Baltics in particular, by which
Group companies are seeking to enhance their competitiveness and profitability.
The average number of employees in each market area was as follows: 3 270 in
Sweden, 2 361 in Finland and 1 798 in the Baltics. In addition, Sokolów had an
average of 5 569 employees.
The HKScan Group has employees in nine European countries. Executive management
in each country ensures that Group companies have regard to the legislation and
agreements governing employment, remuneration and other terms of employment, and
occupational safety in their respective countries.
INCENTIVE SCHEME FOR KEY EMPLOYEES
The company had in place a share-based incentive scheme for key employees
concerning the years 2006-2008. The company's Board has not launched a new
share-based incentive scheme since the expiration of the earlier scheme at the
end of 2008. No bonuses were paid under the scheme in 2008 or 2009. In
accordance with the terms of the scheme, 47 508 A Shares assigned as a part of
the incentive scheme in the years 2006-2008 reverted to the company in 2009.
RISKS AND UNCERTAINTY FACTORS IN THE NEAR FUTURE
The most significant business risks faced by the HKScan Group involve
developments in the price of raw materials and pork in particular, in future
possibly the availability of these as well. Country-specific uncertainties
involve the success of the business development programmes in Sweden and the
development of the national economies in the Baltics.
The international economic situation is gradually stabilizing, yet bad debt
remains a possibility. The problems experienced by customers are due to the
state of the economy in their country of operation as well as the availability
of financing. Ongoing major fluctuations in the Group's central currencies may
affect the Group's net sales, earnings and balance sheet. Any devaluation of
local currencies in particular may have a negative effect on the Group's Baltic
operations.
Changes in demand owing to e.g. rising unemployment and attributable to the
financial climate may occur in the Group's market areas or its export markets.
These may erode Group net sales and earnings.
The possibility of animal diseases can never be fully excluded in the food
industry.
The Group is currently involved in certain legal proceedings and civil
litigation. Though the cases remain pending, they are estimated to have no
significant impact on the Group's financial standing.
ENVIRONMENTAL MANAGEMENT
HKScan operates on the principle of causing minimum adverse environmental impact
during production. This principle is put into practice in all market areas,
taking into account existing regulations and certification processes. Executive
management in each market area are responsible for ensuring the appropriate
organisation of environmental management.
An ISO 14001-certifed environmental management system is in place at all HK
Ruokatalo production plants in Finland, the Rakvere Lihakombinaat and Tallegg
plants in Estonia and six production plants in Sweden. Other Scan facilities
apply the BAS system, in which environmental efforts are managed by a local
steering group responsible for setting environmental targets for plants and
monitoring compliance. In Poland, the Sokolów plants operate according to good
production practice under the ongoing supervision of the Polish veterinary
authority.
In the food industry, energy, water, waste arising from processing biological
materials, wastewater and smoke gases from heating plants cause the greatest
environmental loading. HKScan seeks to reduce the amount of energy and water
consumed in relation to production (= specific consumption), to reduce all
waste, particularly the relative amount of landfill waste, and to improve
sorting. Since there are differences in operations and technology, focus areas
vary from one production facility to another. Continuous improvement has been
achieved by combining and rationalizing operations, by introducing new policies
and by adjusting and improving technology.
All plants operated by the Group in Finland, Sweden and the Baltics furthermore
have in place a quality management system certified to the ISO 9001 standard.
Most also hold either ISO 22000 certification or the British BRC certificate for
their product safety management system.
EVENTS TAKING PLACE AFTER 31 DECEMBER 2009
(1) HKScan Corporation transitioned to a holding company structure in its
Finnish business. The reorganization streamlines financial reporting and
internal auditing in the Group, as the business in each market area is kept
separate from the parent company. The reorganization was accomplished as a
business transfer on 1 January 2010 by transferring HKScan Corporation's
production-related property, plant and equipment in Finland as well as its
holdings in subsidiaries and associates to HKScan Finland Oy, a holding company
wholly owned by HKScan Corporation.
The reorganization is technical and legal in nature and it will have no effect
on operational activities. HK Ruokatalo Oy and LSO Foods Oy, the companies
responsible for the Group's Finnish business, carry on as before. The
arrangement has no effect on jobs or the standing of the parent company or its
shareholders. Managing director Jari Leija of HK Ruokatalo Oy also serves as
managing director of HKScan Finland Oy.
(2) In January, the Board and HKScan Corporation CEO Matti Perkonoja agreed that
he would stay on as CEO for longer than initially announced. The appointment is
effective until the end of February 2012, at which time Mr Perkonoja is to
retire. He had earlier planned to retire after 2010.
(3) Olli Antniemi, MSc (Econ & Bus Admin), was appointed senior vice president
in charge of strategy and development as of 1 January 2010. He also joined the
Management Team. Mr Antniemi is responsible for strategic business planning with
an emphasis on Group synergies and management of the Group's strategy process.
He previously served as executive vice president of the HKScan Group's Baltic
Group, managing director of Scan AB and most recently as development director at
HK Ruokatalo Oy.
HKScan Corporation's Management Team as of 1 January 2010 consists of CEO Matti
Perkonoja as Chairman along with CFO Irma Kiilunen, senior vice president for
strategy and development Olli Antniemi, HK Ruokatalo Oy managing director Jari
Leija and Scan AB managing director Denis Mattsson. Management Team meetings are
also attended by AS Rakvere Lihakombinaat managing director Anne Mere and AS
Tallegg managing director Teet Soorm. Tero Hemmilä, Management Team member and
VP in charge of strategy, left HKScan at the beginning of 2010. CFO Irma
Kiilunen serves as deputy to the CEO of HKScan Corporation.
(4) In late January HKScan Corporation announced that its better than
anticipated Q4/2009 performance. According to preliminary data, sound commercial
performance during Q4/2009 and the Christmas season in particular had resulted
in higher-than-anticipated EBIT before non-recurring items.
HKScan had earlier estimated that EBIT for 2009 would clearly surpass that for
2008. Based on preliminary figures, the HKScan Group's reported EBIT for 2009
would be around EUR 55 million and EBIT before non-recurring items around EUR 67
million.
The company furthermore estimated that the non-recurring charges caused by the
measures in the Swedish restructuring programme would amount to approximately
EUR 8.6 million instead of the roughly EUR 5 million announced earlier.
FUTURE OUTLOOK
Consumer demand for food is expected to remain steady in the Group's domestic
markets and export markets are anticipated to pick up somewhat towards the end
of the year. In addition, the ongoing streamlining programmes and the
restructuring programme in Sweden in particular provide the foundation for solid
business development.
The Group's full-year EBIT exclusive of non-recurring items is estimated to
surpass that in 2009 despite the considerable challenges posed by the markets in
the early part of the year.
BOARD OF DIRECTORS' PROPOSAL ON DISTRIBUTION OF PROFIT
The parent company's distributable assets stand at EUR 156.7 million including
the reserve for invested unrestricted equity (RIUE), which holds EUR 143.1
million. The Board of Directors recommends that the company pays a dividend of
EUR 0.22 per share for 2009, i.e. a total of EUR 11.9 million.
There have been no material changes in the company's financial standing since
the end of the year under review. The company maintains good liquidity and the
recommended distribution of dividend will not in the Board's estimation
compromise the company's solvency.
ANNUAL GENERAL MEETING
HKScan Corporation's Annual General Meeting will be held at 11am on Tuesday, 23
April 2010 in Helsinki in Congress Hall A of Finlandia Hall, address
Mannerheimintie 13 e, 00100 Helsinki, Finland. To be eligible to attend the
Annual General Meeting, shareholders should be registered by 13 April 2010 in
HKScan Corporation's shareholder register maintained by Euroclear Finland Ltd
(the Finnish Central Securities Depository APK). Notice of and Board proposals
to the Annual General Meeting the will be published at a later date.
CONSOLIDATED FINANCIAL STATEMENTS OF THE HKSCAN GROUP, 1 JAN - 31 DEC 2009
CONSOLIDATED INCOME STATEMENT 1 JANUARY - 31 DECEMBER
(EUR million)
--------------------------------------------------------------------------------
| | 2009 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 2 124.7 | 2 294.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in inventories of finished goods and | 5.1 | 0.4 |
| work in progress | | |
--------------------------------------------------------------------------------
| Work performed for own use and capitalized | 0.9 | 1.3 |
--------------------------------------------------------------------------------
| Other operating income | 6.7 | 14.0 |
--------------------------------------------------------------------------------
| Share of associates' results | 0.9 | 0.6 |
--------------------------------------------------------------------------------
| Materials and services | -1 474.5 | -1 642.6 |
--------------------------------------------------------------------------------
| Employee benefits expenses | -306.7 | -319.0 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | -57.2 | -54.8 |
--------------------------------------------------------------------------------
| Impairment | 0.0 | 0.8 |
--------------------------------------------------------------------------------
| Other operating expenses | -244.8 | -257.1 |
--------------------------------------------------------------------------------
| EBIT | 55.1 | 38.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 5.2 | 5.5 |
--------------------------------------------------------------------------------
| Financial expenses | -24.9 | -35.5 |
--------------------------------------------------------------------------------
| Share of associates' results | 2.0 | 0.9 |
--------------------------------------------------------------------------------
| PROFIT/LOSS BEFORE TAXES | 37.3 | 9.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -4.9 | -1.4 |
--------------------------------------------------------------------------------
| PROFIT/LOSS FOR THE PERIOD | 32.5 | 7.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PROFIT/LOSS FOR THE PERIOD ATTRIBUTABLE TO: | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 29.9 | 4.7 |
--------------------------------------------------------------------------------
| Minority interests | 2.6 | 2.9 |
--------------------------------------------------------------------------------
| Total | 32.5 | 7.6 |
--------------------------------------------------------------------------------
Earnings per share calculated on profit attributable to equity holders of the
parent:
--------------------------------------------------------------------------------
| EPS, undiluted, continuing operations, | 0.64 | 0.10 |
| EUR/share | | |
--------------------------------------------------------------------------------
| EPS, diluted, continuing operations, EUR/share | 0.64 | 0.10 |
--------------------------------------------------------------------------------
Per-share data has been adjusted for the share offering in 2009.
Consolidated statement of comprehensive income for 1 January to 31 December
(EUR million)
--------------------------------------------------------------------------------
| | 2009 | 2008 |
--------------------------------------------------------------------------------
| Profit/loss for the period | 32.5 | 7.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER COMPREHENSIVE INCOME (after taxes): | | |
--------------------------------------------------------------------------------
| Exchange differences on translating foreign | 1.8 | -23.4 |
| operations | | |
--------------------------------------------------------------------------------
| Available-for-sale investments | 0.4 | -0.2 |
--------------------------------------------------------------------------------
| Cash flow hedging | -7.1 | -2.0 |
--------------------------------------------------------------------------------
| TOTAL OTHER COMPREHENSIVE INCOME | -4.8 | -25.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 27.6 | -18.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | | |
| ATTRIBUTABLE TO: | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 24.8 | -20.5 |
--------------------------------------------------------------------------------
| Minority interests | 2.8 | 2.5 |
--------------------------------------------------------------------------------
| Total | 27.6 | -18.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER
(EUR million)
--------------------------------------------------------------------------------
| | Note | 2009 | 2008 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Intangible assets | 1. | 65.7 | 57.8 |
--------------------------------------------------------------------------------
| Goodwill | 2. | 88.2 | 81.7 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 3. | 469.1 | 479.3 |
--------------------------------------------------------------------------------
| Shares in associates | | 20.9 | 17.8 |
--------------------------------------------------------------------------------
| Trade and other receivables | | 18.2 | 17.4 |
--------------------------------------------------------------------------------
| Other long-term investments | | 10.5 | 9.9 |
--------------------------------------------------------------------------------
| Deferred tax asset | | 12.3 | 10.1 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | 685.0 | 673.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Inventories | 4. | 118.7 | 128.3 |
--------------------------------------------------------------------------------
| Trade and other receivables | | 194.3 | 198.4 |
--------------------------------------------------------------------------------
| Income tax receivable | | 0.2 | 1.5 |
--------------------------------------------------------------------------------
| Other financial assets | | 2.0 | 2.2 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | 73.9 | 92.2 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | 389.0 | 422.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | 1 074.0 | 1 096.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 5. | 66.8 | 66.8 |
--------------------------------------------------------------------------------
| Share premium reserve | | 74.2 | 73.5 |
--------------------------------------------------------------------------------
| Treasury shares | | -0.0 | -0.0 |
--------------------------------------------------------------------------------
| Fair value reserve and other reserves | | 149.7 | 96.8 |
--------------------------------------------------------------------------------
| Translation differences | | -13.1 | -15.8 |
--------------------------------------------------------------------------------
| Retained earnings | | 111.6 | 97.0 |
--------------------------------------------------------------------------------
| Equity attributable to equity holders of | | 389.3 | 318.3 |
| the parent | | | |
--------------------------------------------------------------------------------
| Minority interest | | 9.4 | 5.4 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | 398.7 | 323.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | | 32.2 | 33.6 |
--------------------------------------------------------------------------------
| Non-current interest-bearing liabilities | | 329.9 | 442.1 |
--------------------------------------------------------------------------------
| Non-current non-interest bearing | | 5.9 | 7.9 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Pension obligations | | 3.6 | 3.7 |
--------------------------------------------------------------------------------
| Non-current provisions | | 8.5 | 1.4 |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | 380.1 | 488.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | |
--------------------------------------------------------------------------------
| Current interest-bearing liabilities | | 87.5 | 82.4 |
--------------------------------------------------------------------------------
| Trade and other payables | | 202.0 | 199.4 |
--------------------------------------------------------------------------------
| Income tax liability | | 2.7 | 0.5 |
--------------------------------------------------------------------------------
| Current provisions | | 2.8 | 1.9 |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | 295.1 | 284.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | 1 074.0 | 1 096.5 |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
(EUR million)
--------------------------------------------------------------------------------
| | 1. | 2. | 3. | 4. | 5.* | 6. | 7. | 8. | 9. | 10. | 11. | 12. |
| | | | | | ) | | | | | | | |
--------------------------------------------------------------------------------
| SHA | 66. | 73. | -2. | 66. | 20. | 12. | -15 | 0.0 | 97. | 318 | 5.4 | 323. |
| REH | 8 | 5 | 2 | 7 | 0 | 2 | .8 | | 0 | .2 | | 7 |
| OLD | | | | | | | | | | | | |
| ERS | | | | | | | | | | | | |
| ' | | | | | | | | | | | | |
| EQU | | | | | | | | | | | | |
| ITY | | | | | | | | | | | | |
| AT | | | | | | | | | | | | |
| 1.1 | | | | | | | | | | | | |
| .20 | | | | | | | | | | | | |
| 09 | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Inc | | 0.0 | -6. | | | -0. | 2.7 | 0.0 | 29. | 24. | 2.8 | 27.6 |
| ome | | | 7 | | | 1 | | | 0 | 8 | | |
| and | | | | | | | | | | | | |
| exp | | | | | | | | | | | | |
| ens | | | | | | | | | | | | |
| es | | | | | | | | | | | | |
| rec | | | | | | | | | | | | |
| ogn | | | | | | | | | | | | |
| ize | | | | | | | | | | | | |
| d | | | | | | | | | | | | |
| dur | | | | | | | | | | | | |
| ing | | | | | | | | | | | | |
| the | | | | | | | | | | | | |
| per | | | | | | | | | | | | |
| iod | | | | | | | | | | | | |
| , | | | | | | | | | | | | |
| tot | | | | | | | | | | | | |
| al | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Sha | | 0.8 | | | | | | | | | 0.8 | 0.8 |
| re- | | | | | | | | | | | | |
| bas | | | | | | | | | | | | |
| ed | | | | | | | | | | | | |
| com | | | | | | | | | | | | |
| pen | | | | | | | | | | | | |
| sat | | | | | | | | | | | | |
| ion | | | | | | | | | | | | |
| exp | | | | | | | | | | | | |
| ens | | | | | | | | | | | | |
| e | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Oth | | | | | -20 | 0.2 | | | | | -19 | -19. |
| er | | | | | .0 | | | | | | .8 | 8 |
| cha | | | | | | | | | | | | |
| nge | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Dir | | | | | | | | | -2. | -2. | | -2.0 |
| ect | | | | | | | | | 0 | 0 | | |
| rec | | | | | | | | | | | | |
| ogn | | | | | | | | | | | | |
| iti | | | | | | | | | | | | |
| on | | | | | | | | | | | | |
| in | | | | | | | | | | | | |
| ret | | | | | | | | | | | | |
| ain | | | | | | | | | | | | |
| ed | | | | | | | | | | | | |
| ear | | | | | | | | | | | | |
| nin | | | | | | | | | | | | |
| gs | | | | | | | | | | | | |
| **) | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tra | | | 0.6 | | | 2.3 | | | -2. | 0.0 | | 0.0 |
| nsf | | | | | | | | | 9 | | | |
| ers | | | | | | | | | | | | |
| bet | | | | | | | | | | | | |
| wee | | | | | | | | | | | | |
| n | | | | | | | | | | | | |
| ite | | | | | | | | | | | | |
| ms | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Sha | | | | 76. | | | | | | 76. | | 76.8 |
| re | | | | 8 | | | | | | 8 | | |
| off | | | | | | | | | | | | |
| eri | | | | | | | | | | | | |
| ng | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Pur | | | | | | | | | | 0.0 | | 0.0 |
| cha | | | | | | | | | | | | |
| se | | | | | | | | | | | | |
| of | | | | | | | | | | | | |
| tre | | | | | | | | | | | | |
| asu | | | | | | | | | | | | |
| ry | | | | | | | | | | | | |
| sha | | | | | | | | | | | | |
| res | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Inc | | | | | | | | | | | 2.1 | 2.1 |
| rea | | | | | | | | | | | | |
| se | | | | | | | | | | | | |
| in | | | | | | | | | | | | |
| hol | | | | | | | | | | | | |
| din | | | | | | | | | | | | |
| gs | | | | | | | | | | | | |
| in | | | | | | | | | | | | |
| sub | | | | | | | | | | | | |
| sid | | | | | | | | | | | | |
| iar | | | | | | | | | | | | |
| ies | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Div | | | | | | | | | -9. | -9. | -0. | -10. |
| ide | | | | | | | | | 4 | 4 | 9 | 3 |
| nd | | | | | | | | | | | | |
| dis | | | | | | | | | | | | |
| tri | | | | | | | | | | | | |
| but | | | | | | | | | | | | |
| ion | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| SHA | 66, | 74. | -8. | 143 | 0.0 | 14. | -13 | 0.0 | 111 | 389 | 9.4 | 398. |
| REH | 8 | 2 | 4 | .5 | | 6 | .1 | | .6 | .3 | | 7 |
| OLD | | | | | | | | | | | | |
| ERS | | | | | | | | | | | | |
| ' | | | | | | | | | | | | |
| EQU | | | | | | | | | | | | |
| ITY | | | | | | | | | | | | |
| AT | | | | | | | | | | | | |
| 31. | | | | | | | | | | | | |
| 12. | | | | | | | | | | | | |
| 200 | | | | | | | | | | | | |
| 9 | | | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1. | 2. | 3. | 4. | 5.* | 6. | 7. | 8. | 9. | 10. | 11. | 12. |
| | | | | | ) | | | | | | | |
--------------------------------------------------------------------------------
| SHA | 66 | 73. | 0.8 | 66. | 0.0 | 10. | 3.0 | -0. | 105 | 328 | 2.9 | 331. |
| REH | .8 | 4 | | 7 | | 8 | | 7 | .5 | .5 | | 5 |
| OLD | | | | | | | | | | | | |
| ERS | | | | | | | | | | | | |
| ' | | | | | | | | | | | | |
| EQU | | | | | | | | | | | | |
| ITY | | | | | | | | | | | | |
| AT | | | | | | | | | | | | |
| 1.1 | | | | | | | | | | | | |
| .20 | | | | | | | | | | | | |
| 08 | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Inc | | -0. | -3. | | | 0.3 | -21 | | 3.4 | -20 | 2.5 | -18. |
| ome | | 1 | 1 | | | | .1 | | | .5 | | 0 |
| and | | | | | | | | | | | | |
| exp | | | | | | | | | | | | |
| ens | | | | | | | | | | | | |
| es | | | | | | | | | | | | |
| rec | | | | | | | | | | | | |
| ogn | | | | | | | | | | | | |
| ize | | | | | | | | | | | | |
| d | | | | | | | | | | | | |
| dur | | | | | | | | | | | | |
| ing | | | | | | | | | | | | |
| the | | | | | | | | | | | | |
| per | | | | | | | | | | | | |
| iod | | | | | | | | | | | | |
| , | | | | | | | | | | | | |
| tot | | | | | | | | | | | | |
| al | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Sha | | 0.2 | | | | | | | | 0.2 | | 0.2 |
| re- | | | | | | | | | | | | |
| bas | | | | | | | | | | | | |
| ed | | | | | | | | | | | | |
| com | | | | | | | | | | | | |
| pen | | | | | | | | | | | | |
| sat | | | | | | | | | | | | |
| ion | | | | | | | | | | | | |
| exp | | | | | | | | | | | | |
| ens | | | | | | | | | | | | |
| e | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Oth | | | | | 20. | | | | | 20. | | 20.0 |
| er | | | | | 0 | | | | | 0 | | |
| cha | | | | | | | | | | | | |
| nge | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Dir | | | | | | | | | | 0.0 | 1.4 | 1.4 |
| ect | | | | | | | | | | | | |
| rec | | | | | | | | | | | | |
| ogn | | | | | | | | | | | | |
| iti | | | | | | | | | | | | |
| on | | | | | | | | | | | | |
| in | | | | | | | | | | | | |
| ret | | | | | | | | | | | | |
| ain | | | | | | | | | | | | |
| ed | | | | | | | | | | | | |
| ear | | | | | | | | | | | | |
| nin | | | | | | | | | | | | |
| gs | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tra | | | | | | 1.2 | | | -1. | 0.0 | | 0.0 |
| nsf | | | | | | | | | 2 | | | |
| ers | | | | | | | | | | | | |
| bet | | | | | | | | | | | | |
| wee | | | | | | | | | | | | |
| n | | | | | | | | | | | | |
| ite | | | | | | | | | | | | |
| ms | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Pur | | | | | | | | -0. | | -0. | | -0.1 |
| cha | | | | | | | | 1 | | 1 | | |
| se | | | | | | | | | | | | |
| of | | | | | | | | | | | | |
| tre | | | | | | | | | | | | |
| asu | | | | | | | | | | | | |
| ry | | | | | | | | | | | | |
| sha | | | | | | | | | | | | |
| res | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Pay | | | | | | | | 0.8 | | 0.8 | | 0.8 |
| men | | | | | | | | | | | | |
| ts | | | | | | | | | | | | |
| mad | | | | | | | | | | | | |
| e | | | | | | | | | | | | |
| in | | | | | | | | | | | | |
| tre | | | | | | | | | | | | |
| asu | | | | | | | | | | | | |
| ry | | | | | | | | | | | | |
| sha | | | | | | | | | | | | |
| res | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Div | | | | | | | | | -10 | -10 | -1.4 | -12. |
| ide | | | | | | | | | .6 | .6 | | 0 |
| nd | | | | | | | | | | | | |
| dis | | | | | | | | | | | | |
| tri | | | | | | | | | | | | |
| but | | | | | | | | | | | | |
| ion | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| SHA | 66 | 73. | -2. | 66. | 20. | 12. | -15 | 0.0 | 97. | 318 | 5.4 | 323. |
| REH | .8 | 5 | 2 | 7 | 0 | 2 | .8 | | 0 | .2 | | 7 |
| OLD | | | | | | | | | | | | |
| ERS | | | | | | | | | | | | |
| ' | | | | | | | | | | | | |
| EQU | | | | | | | | | | | | |
| ITY | | | | | | | | | | | | |
| AT | | | | | | | | | | | | |
| 31. | | | | | | | | | | | | |
| 12. | | | | | | | | | | | | |
| 200 | | | | | | | | | | | | |
| 8 | | | | | | | | | | | | |
--------------------------------------------------------------------------------
COLUMNS: 1. Share capital, 2. Share premium reserve, 3. Revaluation reserve, 4.
Reserve for invested unrestricted equity (RIUE), 5. Other equity item, 6. Other
reserves, 7. Translation differences, 8. Treasury shares, 9. Retained earnings,
10. Equity holders of the parent, 11. Minority interest, 12. Total
*) Comprising a hybrid bond classified as equity
**) Comprising interest paid on hybrid bond
In the financial statements for 2008, the company reported re-measurement of net
investment hedges in the revaluation reserve. In the financial statements for
2009, the manner of reporting has been changed and hedging is recognized as an
adjustment to translation differences. The figures for the comparison year have
been modified to correspond to the current practice.
CASH FLOW STATEMENT
(EUR million)
--------------------------------------------------------------------------------
| | 2009 | 2008 |
--------------------------------------------------------------------------------
| Operating activities | | |
--------------------------------------------------------------------------------
| EBIT | 55.1 | 38.1 |
--------------------------------------------------------------------------------
| Adjustments to EBIT | -0.4 | -1.3 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | 57.2 | 54.0 |
--------------------------------------------------------------------------------
| Change in provisions | 7.6 | 1.4 |
--------------------------------------------------------------------------------
| Change in net working capital | 2.5 | 1.3 |
--------------------------------------------------------------------------------
| Financial income | 5.2 | 5.5 |
--------------------------------------------------------------------------------
| Financial expenses | -24.9 | -35.5 |
--------------------------------------------------------------------------------
| Taxes | -4.9 | -1.4 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities | 97.4 | 62.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investing activities | | |
--------------------------------------------------------------------------------
| Gross investments in fixed assets | -43.7 | -84.1 |
--------------------------------------------------------------------------------
| Disposals of fixed assets | 2.9 | 12.0 |
--------------------------------------------------------------------------------
| Investments in subsidiary | -4.7 | 0.0 |
--------------------------------------------------------------------------------
| Shares in associates purchased | -0.3 | 0.0 |
--------------------------------------------------------------------------------
| Loans granted | -0.0 | -0.2 |
--------------------------------------------------------------------------------
| Repayments of loans receivable | 5.1 | 2.0 |
--------------------------------------------------------------------------------
| Net cash flow from investing activities | -40.8 | -70.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow before financing activities | 56.6 | -8.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing activities | | |
--------------------------------------------------------------------------------
| Proceeds from share offering | 76.8 | 0.0 |
--------------------------------------------------------------------------------
| Payments received on hybrid bond | 0.0 | 20.0 |
--------------------------------------------------------------------------------
| Repayment of hybrid bond | -20.0 | 0.0 |
--------------------------------------------------------------------------------
| Current borrowings raised | 46.6 | 187.9 |
--------------------------------------------------------------------------------
| Current borrowings repaid | -82.3 | -164.2 |
--------------------------------------------------------------------------------
| Non-current borrowings raised | 74.7 | 27.4 |
--------------------------------------------------------------------------------
| Non-current borrowings repaid | -160.8 | -7.3 |
--------------------------------------------------------------------------------
| Interest on hybrid bond | -2.1 | 0.0 |
--------------------------------------------------------------------------------
| Dividends paid | -9.4 | -10.6 |
--------------------------------------------------------------------------------
| Purchase of treasury shares | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Net cash flow from financing activities | -76.5 | 53.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -19.9 | 44.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at 1.1. | 94.4 | 56.8 |
--------------------------------------------------------------------------------
| Effect of changes in exchange rates on cash | 1.4 | -7.3 |
| and cash equivalents | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at 31.12. | 75.9 | 94.4 |
--------------------------------------------------------------------------------
FINANCIAL INDICATORS
--------------------------------------------------------------------------------
| | 2009 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, EUR million | 2 124.7 | 2 294.6 |
--------------------------------------------------------------------------------
| EBIT, EUR million | 55.1 | 38.1 |
--------------------------------------------------------------------------------
| - as % of net sales | 2.6 | 1.7 |
--------------------------------------------------------------------------------
| Profit before taxes, EUR million | 37.3 | 9.0 |
--------------------------------------------------------------------------------
| - as % of net sales | 1.8 | 0.4 |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | 9.0 | 2.3 |
--------------------------------------------------------------------------------
| Return on investment (ROI), % | 7.4 | 5.2 |
--------------------------------------------------------------------------------
| Equity ratio, % | 37.1 | 29.5 |
--------------------------------------------------------------------------------
| Net gearing ratio, % | 84.9 | 131.8 |
--------------------------------------------------------------------------------
| Gross investments, EUR million | 41.3 | 84.0 |
--------------------------------------------------------------------------------
| - as % of net sales | 1.9 | 3.7 |
--------------------------------------------------------------------------------
| R&D expenditure, EUR million | 8.9 | 13.1 |
--------------------------------------------------------------------------------
| - as % of net sales | 0.4 | 0.6 |
--------------------------------------------------------------------------------
| Employees, average | 7 429 | 7 750 |
--------------------------------------------------------------------------------
PER SHARE DATA
Per-share data has been adjusted for the share offering in 2009.
--------------------------------------------------------------------------------
| | 2009 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS, undiluted, EUR | 0.64 | 0.10 |
--------------------------------------------------------------------------------
| EPS, diluted, EUR | 0.64 | 0.10 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 7.21 | 7.13 |
--------------------------------------------------------------------------------
| Dividend per share, EUR | 0.22 *) | 0.21 |
--------------------------------------------------------------------------------
| Dividend payout ratio, undiluted, % | 34.5 *) | 199.3 |
--------------------------------------------------------------------------------
| Dividend payout ratio, diluted, % | 34.5 *) | 199.3 |
--------------------------------------------------------------------------------
| Effective dividend yield, % | 2.8 *) | 5.4 |
--------------------------------------------------------------------------------
| Price/earnings ratio (P/E) | | |
--------------------------------------------------------------------------------
| - undiluted | 12.3 | 36.7 |
--------------------------------------------------------------------------------
| - diluted | 12.3 | 37.8 |
--------------------------------------------------------------------------------
| Lowest trading price, EUR | 3.70 | 3.43 |
--------------------------------------------------------------------------------
| Highest trading price, EUR | 10.38 | 12.75 |
--------------------------------------------------------------------------------
| Middle price, EUR | 7.18 | 6.94 |
--------------------------------------------------------------------------------
| Closing price on year, EUR | 7.85 | 3.89 |
--------------------------------------------------------------------------------
| Market capitalization, EUR million | 423.7 | 173.7 |
--------------------------------------------------------------------------------
| Shares traded in thousands | 22 285 | 9 028 |
--------------------------------------------------------------------------------
| - % of average number | 56.4 | 23.0 |
--------------------------------------------------------------------------------
| Adjusted number of shares in thousands | | |
--------------------------------------------------------------------------------
| - average during the financial year | 44 937 | 44 606 |
--------------------------------------------------------------------------------
| - at end of financial year | 53 975 | 44 624 |
--------------------------------------------------------------------------------
| - fully diluted | 53 975 | 44 624 |
--------------------------------------------------------------------------------
*) Based on Board of Directors' dividend recommendation.
FORMULAE FOR FINANCIAL INDICATORS
Profit before taxes - taxes
Return on equity (%) -------------------------------------- x 100
Total shareholders' equity (average)
Profit before taxes + interest expenses
and other financial expenses
Return on investment (%) ----------------------------------------------- x 100
Balance sheet total - non-interest-bearing
debts (average)
Total equity
Equity ratio (%) -------------------------------------- x 100
Balance sheet total - advances received
Net interest-bearing liabilities - interest-bearing loans receivable - cash and
cash equivalents
Net gearing ratio (%) ---------------------------------------------- x 100
Total shareholders' equity
Profit for the period attributable to
equity holders of the parent
Earnings per share -----------------------------------------
Average adjusted number of shares
during the financial year
Equity attributable to
equity holders of the parent
Equity per share -----------------------------------------
Adjusted number of shares
at end of financial year
Dividend per share
Dividend per share -----------------------------------------
Coefficient of share issues
after the financial year
Adjusted dividend per share
Dividend payout ratio (%) --------------------------------------- x 100
Earnings per share
Dividend per share
Effective dividend yield (%) --------------------------------------- x 100
Adjusted closing price
on the last trading day
Adjusted closing price
on the last trading day
P/E ratio ---------------------------------------
Earnings per share
Market capitalization Number of outstanding shares at the end of the
financial year x closing price at the last day of the financial year
No. of employees Average of workforce figures calculated
at the end of calendar months
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ACCOUNTING POLICIES
HKScan Corporation's financial statement bulletin for 1 January - 31 December
2009 has been prepared in compliance with IAS 34 Interim Financial Reporting.
The consolidated financial statements have been prepared in compliance with the
International Financial Reporting Standards (IFRS) and the IAS and IFRS
standards and SIC and IFRIC interpretations effective at 31 December 2009.
The consolidated financial statements have been prepared in compliance with the
same accounting policies as in 2008 except for the following new standards,
interpretations and standard amendments, which are effective as of 1 January
2009.
As of 1 January 2009, the Group has applied the following new or revised
standards and interpretations:
- IAS 1 (revised) Presentation of Financial Statements. The revision is aimed at
improving users' ability to analyze and compare the information given in
financial statements. The means to achieve this include separating changes in a
company's equity resulting from transactions with owners in their capacity as
owners from other changes in equity. Non-owner-related changes are presented in
the statement of comprehensive income. The Group will report a separate income
statement and statement of comprehensive income.
- IAS 23 (revised) Borrowing Costs. The standard requires that borrowing costs
that are directly attributable to the acquisition, construction or production of
a qualifying asset, such as a production facility, are included in the cost of
that asset. The Group has previously recognized borrowing costs as an expense
during the period in which they are incurred, in the manner permitted. The
revised standard means that borrowing costs concerning construction projects
undertaken on or after 1 January 2009 are allocated to the project and
capitalized in the balance sheet. The Group had no such projects underway in the
financial year under review.
- IFRS 8 Operating Segments. The standard replaces IAS 14 and requires adoption
of the ‘management approach' to presenting segment information, meaning that
information is reported in the same manner as in internal reporting. The
standard has not altered the Group's segment reporting breakdown.
- Improving Disclosures about Financial Instruments: Amendments to IFRS 7
Financial Instruments: Disclosures. The amendments introduce a three-level
hierarchy for disclosing the fair values of financial instruments. The amended
standard also calls for additional disclosures to help judge the relative
reliability of fair value measurements. The amendments furthermore enhance and
clarify earlier disclosure requirements concerning liquidity risk.
- Improvements to IFRSs. The Annual Improvements process allows minor and
non-urgent amendments to IFRSs to be presented and implemented once each year in
a single document. The amendments presented concern a total of 34 standards and
the impacts vary for each standard. The amendments have had no significant
impact on HKSCan's consolidated financial statements, however.
- IFRIC 16. Hedges of a Net Investment in a Foreign Unit. The interpretation
clarifies the accounting treatment in consolidated financial statements in
respect of the hedge of a net investment in a foreign unit. It has not had any
significant effect on the Group's financial statements.
- Amendments to IFRS 2. Share-based Payments - Vesting Conditions and
Cancellations. The amendments require that non-vesting conditions be taken into
account in the estimation of the fair value of the equity instrument at the
grant date and also clarify instructions relating to the accounting treatment of
cancellations. The amendments have not affected the consolidated financial
statements.
The Group has elected to apply the following standard early, in the financial
statements for the financial year ended 31 December 2009:
- IFRS 3 (Revised). Business Combinations (effective for annual periods
beginning on or after 1 July 2009). The revised standard has a wider scope of
application and contains many changes that are significant to the Group. The
amendments affect the amount of goodwill recognized on acquisitions as well as
the outcomes of disposals of businesses. The amendments furthermore affect items
recognized in profit or loss in both the financial year in which the acquisition
takes place and in the financial years in which additional purchase price is
paid or additional acquisitions made.
The Group has yet to apply the following new or revised standards and
interpretations published by the IASB. These will be applied as from the
effective date of each standard and interpretation or, if the effective date
does not fall on the first day of the financial year, as from the start of the
financial year first beginning after the effective date.
- Revised IAS 27. Consolidated and Separate Financial Statements (effective for
annual periods beginning on or after 1 July 2009). The revised standard requires
the effects of changes in subsidiary ownership to be recognized directly in
Group equity when the parent entity retains control. If control in the
subsidiary is lost, any remaining investment is measured to fair value and any
difference recognized in profit or loss. A corresponding accounting treatment
will in future apply also to investments in associates (IAS 28) and interests in
joint ventures (IAS 31) As a result of the revision, the losses of a subsidiary
can be allocated to the minority also when the losses exceed the minority's
investment.
- Improvements to IFRSs (as a rule, effective for annual periods beginning on or
after 1 January 2010). The Annual Improvements process allows minor and
non-urgent amendments to IFRSs to be presented and implemented once each year in
a single document. The amendments presented concern a total of 12 standards and
the impacts vary for each standard. The amendments have had no significant
impact on HKSCan's consolidated financial statements, however. The amendments
are yet to be adopted for application in the EU.
- ED 9 Joint Arrangements. The current IAS 31 Interests in Joint Ventures
permits the proportionate consolidation of the figures for a joint venture (line
by line consolidation). The standard (the new ED 9) is likely to be amended to
permit the application of the equity method only. The new standard will
significantly alter both Group figures and the treatment of the Poland segment.
No effective date has yet been determined.
COMPARISON OF SEGMENT INFORMATION
Net sales and EBIT by main market area
(EUR million)
--------------------------------------------------------------------------------
| | Q4/2009 | Q4/2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | | | | |
--------------------------------------------------------------------------------
| -Finland | 185.4 | 197.3 | 732.5 | 740.4 |
--------------------------------------------------------------------------------
| -Sweden | 278.3 | 301.6 | 1 037.4 | 1 179.3 |
--------------------------------------------------------------------------------
| -The Baltics | 38.1 | 43.0 | 156.9 | 168.2 |
--------------------------------------------------------------------------------
| -Poland | 65.1 | 66.3 | 251.7 | 270.9 |
--------------------------------------------------------------------------------
| -Between segments | -9.5 | -16.0 | -53.9 | -64.3 |
--------------------------------------------------------------------------------
| Total | 557.5 | 592.3 | 2 124.7 | 2 294.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBIT | | | | |
--------------------------------------------------------------------------------
| -Finland | 6.4 | 6.4 | 27.0 | 14.4 |
--------------------------------------------------------------------------------
| -Sweden | 9.1 | 8.6 | 16.7 | 18.0 |
--------------------------------------------------------------------------------
| -The Baltics | 2.0 | 0.6 | 9.8 | 6.4 |
--------------------------------------------------------------------------------
| -Poland | 2.9 | 1.9 | 9.3 | 4.2 |
--------------------------------------------------------------------------------
| -Between segments | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| -Group administration | -1.9 | -2.2 | *) -7.7 | -4.9 |
| costs | | | | |
--------------------------------------------------------------------------------
| Total | 18.4 | 15.3 | 55.1 | 38.1 |
--------------------------------------------------------------------------------
*) Includes EUR 1.3 million in non-recurring severance pay relating to the
termination of the former CEO's employment and recognized in Q1.
NOTES TO THE STATEMENT OF FINANCIAL POSITION
1. CHANGES IN INTANGIBLE ASSETS
(EUR million)
--------------------------------------------------------------------------------
| | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| Carrying value at beginning of period | 57.8 | 65.4 |
--------------------------------------------------------------------------------
| Translation differences | 3.0 | -7.7 |
--------------------------------------------------------------------------------
| Increase | 2.8 | 0.3 |
--------------------------------------------------------------------------------
| Increase (acquisitions) | 2.0 | 0.0 |
--------------------------------------------------------------------------------
| Decrease | 0.0 | -0.1 |
--------------------------------------------------------------------------------
| Depreciation and impairment | -2.7 | -2.1 |
--------------------------------------------------------------------------------
| Transfer to other balance sheet item | 2.8 | 2.0 |
--------------------------------------------------------------------------------
| Carrying value at end of period | 65.7 | 57.8 |
--------------------------------------------------------------------------------
2. CHANGES IN GOODWILL
(EUR million)
--------------------------------------------------------------------------------
| | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| Carrying value at beginning of period | 81.7 | 85.1 |
--------------------------------------------------------------------------------
| Translation differences | 1.6 | -4.1 |
--------------------------------------------------------------------------------
| Increase | 1.9 | 0.7 |
--------------------------------------------------------------------------------
| Increase (acquisitions) | 3.0 | 0.0 |
--------------------------------------------------------------------------------
| Decrease | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Depreciation and impairment | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Transfer to other balance sheet item | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Carrying value at end of period | 88.2 | 81.7 |
--------------------------------------------------------------------------------
3. CHANGES IN PROPERTY, PLANT AND EQUIPMENT
(EUR million)
--------------------------------------------------------------------------------
| | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| Carrying value at beginning of period | 479.3 | 476.7 |
--------------------------------------------------------------------------------
| Translation differences | 6.6 | -24.1 |
--------------------------------------------------------------------------------
| Increase | 41.2 | 79.9 |
--------------------------------------------------------------------------------
| Increase (acquisitions) | 3.8 | 0.0 |
--------------------------------------------------------------------------------
| Decrease | -3.3 | -11.8 |
--------------------------------------------------------------------------------
| Depreciation and impairment | -55.8 | -48.3 |
--------------------------------------------------------------------------------
| Transfer to other balance sheet item | -2.6 | 6.9 |
--------------------------------------------------------------------------------
| Carrying value at end of period | 469.1 | 479.3 |
--------------------------------------------------------------------------------
4. INVENTORIES
(EUR million)
--------------------------------------------------------------------------------
| | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| Materials and supplies | 73.9 | 80.9 |
--------------------------------------------------------------------------------
| Unfinished products | 7.1 | 7.1 |
--------------------------------------------------------------------------------
| Finished products | 23.7 | 25.6 |
--------------------------------------------------------------------------------
| Goods | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Other inventories | 4.1 | 4.2 |
--------------------------------------------------------------------------------
| Prepayments | 2.1 | 2.2 |
--------------------------------------------------------------------------------
| Live animals, IFRS 41 | 7.6 | 8.2 |
--------------------------------------------------------------------------------
| Total inventories | 118.7 | 128.3 |
--------------------------------------------------------------------------------
5. NOTES TO SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| Share | Number of | Share | Share | RIUE | Treasury | Tot. |
| capital and | outstandi | capital | premium | | shares | |
| share | ng shares | | reserve | | | |
| premium | | | | | | |
| reserve | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1.1.2009 | 39 301 | 66.8 | 72.9 | 66.7 | 0.0 | 206.4 |
| | 719 | | | | | |
--------------------------------------------------------------------------------
| Reversion of | -47 508 | | | | 0.0 | 0.0 |
| treasury | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Share | 14 720 | | | 76.8 | | 76.8 |
| offering | 329 | | | | | |
--------------------------------------------------------------------------------
| 31.12.2009 | 53 974 | 66.8 | 72.9 | 143.5 | 0.0 | 283.2 |
| | 540 | | | | | |
--------------------------------------------------------------------------------
RIUE = Reserve for invested unrestricted equity
Dividends for the financial year 2008 were paid on 6 May 2009. At a dividend of
EUR 0.24 per share, the total came to EUR 9 422 692.56.
INTEREST-BEARING LIABILITIES
The Group's interest-bearing debt totalled EUR 417.4 million (EUR 524.4m) at the
end of the financial year. The decrease was mainly due to the allocation of the
net proceeds from the share offering executed in December to paying down
interest-bearing debt. The proceeds were also used to repay the hybrid bond of
EUR 20 million. A positive cash flow from operating activities allowed the
repayment of loans as well.
FINANCIAL RISKS
Financial risks consist of refinancing and liquidity risks, counterparty risks
in financial contracts, foreign exchange risks, interest rate risks, commodity
risks and credit risks. Financial risks and financial risk management are part
of the Group's treasury policy. The policy observed has been adopted by the
Board and its implementation is centralized to a finance unit led by the Group's
CFO. The treasury policy was amended in the 2009 financial year to allow foreign
exchange risk in commercial operations to be hedged for no more than 12 months
into the future, with 30-70 percent of the anticipated net currency flow hedged
as a rule. Hedging of a net investment in a foreign subsidiary was started in
the period under review in respect of the Polish zloty.
The purpose of capital management in the Group is to support business through an
optimal capital structure by safeguarding a normal operating environment and
enabling organic and structural growth. Capital structure is influenced by
controlling the amount of working capital tied up in the business and through
reported profit/loss, distribution of dividend and share issues. The Group may
also decide on the disposal of assets to reduce liabilities.
Financial risks and capital management will be discussed in more detail in the
Notes to the 2009 financial statements.
DERIVATIVE INSTRUMENT LIABILITIES
(EUR million)
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Nominal values of derivative instruments | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives | 104.6 | 84.4 |
--------------------------------------------------------------------------------
| Interest-rate derivatives | 203.5 | 276.8 |
--------------------------------------------------------------------------------
| Electricity derivatives | 10.8 | 8.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values of derivative instruments | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives | -1.1 | -2.0 |
--------------------------------------------------------------------------------
| Interest-rate derivatives | -11.3 | -11.5 |
--------------------------------------------------------------------------------
| Electricity derivatives | -0.6 | -1.9 |
--------------------------------------------------------------------------------
CONSOLIDATED OTHER CONTINGENT LIABILITIES
(EUR mill.)
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by | | |
--------------------------------------------------------------------------------
| pledges or mortgages | | |
--------------------------------------------------------------------------------
| - Loans from financial institutions | 33.9 | 41.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Given as security | | |
--------------------------------------------------------------------------------
| - real estate mortgages | 55.5 | 36.0 |
--------------------------------------------------------------------------------
| - pledges | 30.4 | 15.4 |
--------------------------------------------------------------------------------
| - floating charges | 20.7 | 19.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Security for debts of participating | | |
| interests | | |
--------------------------------------------------------------------------------
| - Guarantees | 5.0 | 5.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For others | | |
--------------------------------------------------------------------------------
| - guarantees and pledges | 12.4 | 9.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other contingencies | | |
--------------------------------------------------------------------------------
| Leasing commitments | 19.0 | 23.0 |
--------------------------------------------------------------------------------
| Other rent commitments | 40.6 | 42.4 |
--------------------------------------------------------------------------------
| Other commitments | 5.8 | 4.7 |
--------------------------------------------------------------------------------
BUSINESS TRANSACTIONS WITH RELATED PARTIES
--------------------------------------------------------------------------------
| | 2009 | 2008 |
--------------------------------------------------------------------------------
| Sales to associates | 34.9 | 37.6 |
--------------------------------------------------------------------------------
| Purchases from associates | 35.2 | 37.0 |
--------------------------------------------------------------------------------
| Trade and other receivables | 2.5 | 2.2 |
--------------------------------------------------------------------------------
| Trade and other payables | 8.5 | 9.0 |
--------------------------------------------------------------------------------
| Severance pay to the CEO | 1.3 | 0.0 |
--------------------------------------------------------------------------------
NON-RECURRING ITEMS
(EUR million)
--------------------------------------------------------------------------------
| | Q4/2009 | Q4/2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Employee benefits | -5.8 | 0.0 | -10.8 | 0.0 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation and | 0.0 | 0.0 | -1.9 | 0.0 |
| impairment | | | | |
--------------------------------------------------------------------------------
| Total non-recurring | -5.8 | 0.0 | -12.7 | 0.0 |
| items | | | | |
--------------------------------------------------------------------------------
The figures reported in the financial statement bulletin are unaudited.
Vantaa, 19 February 2010
HKScan Corporation
Board of Directors
Further information is available from HKScan Corporation CEO Matti Perkonoja.
Please leave any messages for him to call with Marjukka Hujanen on +358
(0)10 570 6218.
HKScan is one of the leading food companies in northern Europe with home markets
in Finland, Sweden, the Baltics and Poland. HKScan manufactures, sells and
markets pork and beef, poultry products, processed meats and convenience foods
under several well-known local brand names. Its customers are retail, the HoReCa
sector, industry and export customers. HKScan is active in nine countries and
has some 10,000 employees. It had net sales of 2.1 billion euro in 2009.
DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority FIN-FSA
Main media
www.hkscan.com
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