2014-02-12 07:00:00 CET
2014-02-12 07:00:07 CET
REGULATED INFORMATION
HKScan Oyj - Financial Statement Release
HKScan Group’s financial statements release 1 January—31 December 2013: Strong cash flow
HKScan Corporation FINANCIAL STATEMENTS RELEASE 12
February 2014, at 08:00 am
HKScan Group's financial statements release 1 January—31 December 2013: Strong
cash flow
* Net sales were EUR 2 478.6 (2 503.1) million in January-December, and EUR
640.6 (662.4) million in the fourth quarter.
* In January-December, reported EBIT was EUR 30.5 (43.1) million, and the EBIT
margin was 1.2 (1.7) per cent. Comparable EBIT excluding non-recurring items
for the year was EUR 30.0 (36.7) million, and the corresponding EBIT margin was
1.2 (1.5) per cent.
For the fourth quarter, reported EBIT was EUR 15.2 (21.9) million, and the EBIT
margin was 2.4 (3.3) per cent. Comparable EBIT excluding non-recurring items
for the quarter was EUR 11.1 (15.5) million, and the corresponding EBIT margin
was 1.7 (2.3) per cent.
* Cash flow before debt service was EUR 103.4 (65.8) million in 2013 and EUR
89.6 (39.7) million in the fourth quarter.
* Profit before taxes was EUR 9.7 (14.3) million in 2013 and EUR 8.7 (15.5)
million in the fourth quarter.
* EPS was EUR 0.16 (0.30) in 2013 and EUR 0.10 (0.27) in the fourth quarter.
* Net financial expenses were EUR -24.2 (-31.7) million in 2013.
* Net debt was EUR 355.7 (440.9) million, and net gearing was 87.0 (109.2) per
cent in 2013.
* Outlook for 2014: HKScan expects the comparable operating profit (EBIT)
margin to be
1 - 2 per cent, and anticipates that the last quarter will be the strongest. In
2013, the corresponding comparable operating profit (EBIT) margin was 0.5 per
cent.
The outlook takes into account that the market area Poland (HKScan's 50 per
cent share of Sokolów) will be excluded in the consolidated operating profit
based on the change of IFRS 11 in the International Financial Reporting
Standards as of 1 January 2014. The restated 2013 key figures are included in
this bulletin.
* Board's proposal for dividend is EUR 0.10 (0.10) per share.
Hannu Kottonen, HKScan's President and CEO, comments on the fourth quarter and
year 2013:
- The strong cash flow was clearly the most positive achievement in the fourth
quarter. We are also satisfied with the good Christmas sales, and the good
business performance in the Baltics and Poland.
- During the quarter, the settlement of the fire insurance case in Denmark and
the completion of the refinancing arrangement were amongst the highlights.
- The tough business environment didn't leave much room for sales margin
improvement. However, some signals of an improving market situation can be
seen. Together with our own actions, as well as with the full effect of the
completed development programme, in Sweden and Finland in particular, and the
favourable development in the feed and grain costs the business outlook has
turned slightly more positive.
- As for 2013, I'm very satisfied with the good work done in strengthening the
cash flow and balance sheet, as well as the profitability achieved in the
Baltics and Poland. Sweden got back onto a profit making track, but more has to
be done in order to bring the profitability up to an acceptable level.
Profitability in Finland and Denmark were the biggest disappointments. - We have focused on implementing the strategy and operating model. The
progress has been good and many goals have been achieved. Unfortunately when
looking at the financial performance, the headwind in all market areas has
partly eliminated the good work. However, we as HKScan Group now have a more
stable foundation for better performance in 2014 and beyond.
KEY FIGURES, Q4 and the entire year
(EUR million) Q4/201 Q4/2012* 2013 2012*)
3 )
--------------------------------------------------------------------------------
Net sales 640.6 662.4 2 478.6 2 503.1
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EBIT 15.2 21.9 30.5 43.1
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- % of net sales 2.4 3.3 1.2 1.7
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Profit before taxes 8.7 15.5 9.7 14.3
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- % of net sales 1.4 2.3 0.4 0.6
--------------------------------------------------------------------------------
Profit for the period 6.6 15.4 9.8 17.7
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- % of net sales 1.0 2.3 0.4 0.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
*) EBIT, excluding non-recurring income and 11.1 15.5 30.0 36.7
expenses
--------------------------------------------------------------------------------
- % of net sales 1.7 2.3 1.2 1.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EPS, EUR 0.10 0.27 0.16 0.30
--------------------------------------------------------------------------------
Cash flow before debt service 89.6 39.7 103.4 65.8
--------------------------------------------------------------------------------
Cash Flow Before Financing Activities 83.8 39.6 84.6 33.8
--------------------------------------------------------------------------------
Return on capital employed (ROCE) before 4.4 5.8
taxes, %
--------------------------------------------------------------------------------
Net debt 355.7 440.9
--------------------------------------------------------------------------------
Gearing % 105.4 124.0
--------------------------------------------------------------------------------
Net Gearing % 87.0 109.2
--------------------------------------------------------------------------------
*) The 2012 figures have been restated in accordance with the revised IAS 19
standard for employment benefit plans and the changed reporting principle for
marketing support expenses.
OCTOBER - DECEMBER 2013
Net sales for the fourth quarter declined compared to the same period in the
previous year. Even though the EBIT also decreased during the quarter compared
to 2012, the market areas Poland and the Baltics kept performing well and
achieved good levels of profitability. In other market areas performance lagged
behind the expectations. In Finland, especially, the business environment
continued to be challenging.
A strong positive development was the cash flow for the fourth quarter. As a
result of the focused efforts on implementing development programmes, improving
the working capital, especially by reducing inventories, tight capital
expenditure management, as well as the final settlement of the fire insurance
claim in Denmark, the cash flow ended up record high in the quarter. The cash
flow management was successful in all market areas clearly strengthening the
Group's capital structure.
Demand in both Consumer and Away from Home businesses remained at a lower level
in the quarter compared to the previous year. The traditional Christmas sales
in Sweden and Finland, as well as sales of the branded products in both Poland
and the Baltics were at a good level, but in other product segments the demand
stayed in favour of lower priced-products. The global market prices for grain
and feed declined, and the actual animal purchasing prices have started to
reflect that development.
The refinancing arrangement amounting to EUR 135 million was signed during the
quarter, and the profitability development programme launched in 2012 was
completed successfully. The implementation of the projects belonging to the new
development programme for 2014 was started, and many of them are already up and
running. The programme targets at a profit improvement of over EUR 20 million
and a decrease of over EUR 50 million in net debt.
YEAR 2013
The Group's financial performance was mixed in 2013 as the profitability was
below target whereas the cash flow was strong. The profitability of businesses
in Poland and the Baltics were at a good level. Sweden showed some recovery and
improvement from the previous year, but on the contrary, profit in Finland fell
well behind the previous year. The realised EBIT of approximately 1 per cent in
both market areas was clearly below the Group's long-term financial target.
Last year was a recovery year after the fire in Denmark and the market position
was regained but the profitability remained poor.
The Group's cash flow strengthened significantly in 2013 thanks to the good
work done in managing the working capital and capital expenditure. In addition,
the settlement of the fire insurance case fixed the weaker cash flow since the
fire in Denmark.
The demand in both Consumer and Away from Home businesses, especially in
export, was at a lower level compared to the previous year. As the supply in
the markets didn't adapt quickly enough, the sales price competition was tough
in all markets. The continued recession resulted in lower consumer purchasing
power, and led to demand shifting to lower-priced products. Additionally,
private labels increased their share of the market as a whole.
The year started with high animal purchasing prices and primary production
costs. In the latter part of the year the increase in animal purchasing prices
stopped and started to decrease as global market prices in grain and feed
declined.
Pork meat inventories were high throughout Europe the whole year. Due to the
global meat surplus, export sales prices were poor, hitting the margins
especially in the third and fourth quarter, when the excess stock was more
actively sold to export. Poor weather conditions during spring and early summer
in Europe resulted in the barbeque season starting later. The sales of
Christmas products were good. The structural shortage of beef continued.
In the autumn, the Group functions were further strengthened by founding a
Group Marketing function to enhance long-term Group level brand management and
to develop consumer and customer driven offering. Product innovation exchange
between the Group's home markets will be increased further. A Group-wide
centralised import organisation to strengthen and co-ordinate externally
sourced meat was started from the beginning of the year 2014.
The Group-wide operational efficiency improvements, such as consolidation of
purchases, continued successfully during 2013. In the first quarter a producer
cooperation model was taken into use in Finland. The goal is to get cost
advantage for primary production and to implement best production practices.
Closer integration with primary production started also in Sweden later in the
spring.
One of the Away from Home business' targets is to efficiently utilise the
potential of Group-wide manufacturing and know-how. In the autumn, the first
cross-border product portfolio was launched in AfH Sweden. The export
organisation was centralised under one management to deliver better customer
service and find new value adding market potential.
In July, HKScan introduced the first steps of the Group's sharpened brand
strategy: company names will be harmonised, and country-of-origin promises were
reaffirmed for its key brands in Finland and Sweden.
The development programme launched in 2012 met the targets for reducing the
annualised costs by more than EUR 20 million and a significant reduction in
capital employed. The improvements will reach their full effect in 2014. The
gains achieved in 2013 were mainly deteriorated by the cost inflation and
decrease in the sales margins. At the end of September, a new development
programme was launched. The programme will run until the end of 2014 and it
targets an annual cost reduction exceeding EUR 20 million and a reduction of
over EUR 50 million in net debt.
In November, the fire insurance case in Denmark was settled, and the
refinancing arrangement amounting to EUR 135 million was completed to replace
the syndicated bank loan due in 2014.
The Group's revised long-term financial targets were announced in August as
follows: operating profit (EBIT)) of more than 4%, return on capital employedgreater than 12%, and net gearing less than 100%. The dividend policy of at
least 30% of net profit remained unchanged.
HKScan Group celebrated its 100th anniversary in 2013. The anniversary was
visible in personnel events, communications and marketing actions mainly in
Finland.
MARKET AREA: FINLAND
-----------------------------------------------
(EUR million) Q4/2013 Q4/2012*) 2013 2012*)
------------------------------------------------------------------------
------------------------------------------------------------------------
Net sales 210.1 219.2 804.1 813.8
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EBIT 1.6 7.4 2.8 18.4
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- EBIT margin, % 0.8 3.4 0.4 2.3
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------------------------------------------------------------------------
EBIT excluding non-recurring expenses 1.6 7.4 6.4 18.4
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- EBIT margin, % 0.8 3.4 0.8 2.3
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*) The 2012 figures have been restated in accordance with the changed reporting
principle for marketing support expenses.
In Finland, net sales were EUR 804.1 (813.8) million and EBIT was EUR 2.8
(18.4) million in 2013.
As for the fourth quarter, net sales amounted to EUR 210.1 (219.2) million.
EBIT for the period was EUR 1.6 (7.4) million.
In the fourth quarter, net sales decreased from the previous year due to lower
volumes and sales prices. The meat category performed better than in the
previous year, but other categories stayed behind due to the continued tough
price competition in both domestic and export markets. Demand for lower priced
products remained. In addition, during the fourth quarter systematic actions to
reduce the frozen stock were continued. These excess sales of the frozen stock
lowered the overall margins, but freed up working capital. As a result the cash
flow for the fourth quarter was on a par with the previous year.
The reorganisation actions including the commercial organisation streamlining
were completed and improvement in managing the delivery capability, as well as
balancing demand and supply were already seen in the fourth quarter. As for the
whole of 2013, the low demand and the fierce competition decreased sales
volumes and average sales prices, and therefore the sales margin development
was poor in both domestic and export markets.
New product launches in Finland during the year comprise, among other things,
novelties in HK Rypsiporsas® (rapeseed pork) as well as fresh Kariniemen
poultry product ranges for the BBQ season in summer. In September, a new range
of organic processed meat products were launched on the market. In August, a
renewed HK-brand web site was launched. The site focuses on describing the meat
value chain to different stakeholders, and it also introduced a “Meat School”
for consumers.
The producer cooperation model was fully implemented in Finland during 2013.
Pork procurement prices came down slightly since July, whereas beef and poultry
prices remained high. The production rationalisation programme between Vantaa,
Mikkeli and Säkylä plants, was completed by the end of the year. During the
transition, the production capacity and efficiency were temporarily limited.
The programme aimed to improve the productivity and efficiency of the business,
as well as bringing benefits from centralising operations and technologies. The
restructuring programme to reduce annual costs by EUR 5 million was
successfully finalised.
MARKET AREA: BALTICS
--------------------------
(EUR million) Q4/2013 Q4/2012 2013 2012
------------------------------------------------
------------------------------------------------
Net sales 44.7 45.1 175.1 176.7
------------------------------------------------
EBIT 2.1 1.5 8.4 8.9
------------------------------------------------
- EBIT margin, % 4.6 3.3 4.8 5.1
------------------------------------------------
In the Baltics, net sales were EUR 175.1 (176.7) million and EBIT was EUR 8.4
(8.9) million in 2013.
In the fourth quarter, net sales were EUR 44.7 (45.1) million. EBIT for the
period was EUR 2.1 (1.5) million.
Good performance continued as the branded products delivered good results and
the cost management in primary production and other areas were well in place.
Export market remained soft. New product launches, sales of branded products
and strong consumer communications brought good results. Overall demand and the
sales price levels also normalised after a weaker first half of the year. This
together with the decreased primary production costs contributed to the good
profit development. Cash flow for the quarter improved clearly compared to the
previous year.
Several efficiency improvement actions took place in the market area. The
Baltic poultry production was centralised to the new Tabasalu facility in
Estonia. From the beginning of 2014, the facility will slaughter, debone and
process poultry for the entire Baltic region in HKScan Group. Lithuanian
logistics were integrated into the Latvian logistics operations in Riga.
As for new products and concepts, the Kiev cutlet was launched in May and the
Doctor's Frankfurter in Rakvere's Lihakas product series was launched in
October.
MARKET AREA: SWEDEN
-----------------------------------------------
(EUR million) Q4/2013 Q4/2012*) 2013 2012*)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net sales 255.8 274.5 965.3 1 025.7
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EBIT 3.5 -0.8 8.1 -5.9
-------------------------------------------------------------------------
- EBIT margin, % 1.4 -0.3 0.8 -0.6
-------------------------------------------------------------------------
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EBIT excluding non-recurring expenses 5.8 6.6 10.4 1.5
-------------------------------------------------------------------------
- EBIT margin, % 2.3 2.4 1.1 0.1
-------------------------------------------------------------------------
*) The 2012 figures have been restated in accordance with the revised IAS 19
standard for employment benefit plans and the changed reporting principle for
marketing support expenses.
In Sweden, net sales were EUR 965.3 (1 025.7) million and EBIT was EUR 8.1
(-5.9) million in 2013.
In the fourth quarter, net sales amounted to EUR 255.8 (274.5) million. EBIT
for the period was EUR 3.5 (-0.8) million.
The decrease in net sales continued due to discontinuing non-profitable sales
and lower volumes. The sales volume was also affected by the stagnated growth
of the consumption of pork and beef whereas the consumption of chicken
continued to grow. The implemented cost savings and production efficiency
improvement actions supported the profitability development. In June,
redundancies due to operational efficiency actions were announced, affecting
around 20 persons at the Skara plant. The strategic review is continuing in
Sweden. The operative cash flow remained at the same good level as in the
previous year in the fourth quarter.
In 2013, branded products, such as Svensk Rapsgris® (Swedish rapeseed pork),
and Pärsons® fresh chicken products performed and developed well throughout the
year. However, the share of new products was still relatively low out of the
total business volume. Pärsons® cold cuts continued to perform well.
The higher meat imports kept putting pressure on sales prices. The private
label products continued to capture market share. The new producer cooperation
model was started, and a new long-term contract model for pig was launched in
the autumn. In the spring, HKScan acquired exclusive rights to Nordic Genetics'
NG Hampshire genetics, which form the basis for the well-known Swedish “Scan
Piggham®” pork.
The Kristianstad production plant was connected to the municipality's district
heating in the third quarter resulting in a sizable annual decrease of carbon
dioxide emissions.
In December, HKScan announced to increase its former 30 per cent ownership in
Höglandsprodukter AB in Halmstad, Sweden, to 100 per cent. The company markets
and sells high-quality Swedish beef, veal and pork that are locally sourced
from Småland under the Höglandskött (Highland Meat) brand.
MARKET AREA: DENMARK
----------------------------------------------------------
(EUR million) Q4/2013 Q4/2012 2013 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 52.6 50.9 226.1 211.7
--------------------------------------------------------------------------------
EBIT 6.4 12.7 4.9 15.4
--------------------------------------------------------------------------------
- EBIT margin, % 12.2 24.9 2.2 7.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EBIT excluding non-recurring income and expenses 0.0 -1.1 -1.5 1.5
--------------------------------------------------------------------------------
- EBIT margin, % 0.1 -2.2 -0.7 0.7
--------------------------------------------------------------------------------
In Denmark, net sales were EUR 226.1 (211.7) million and EBIT was EUR 4.9
(15.4) million in 2013.
For Denmark, net sales in the fourth quarter amounted to EUR 52.6 (50.9)
million. EBIT for the period was EUR 6.4 (12.7) million.
During the fourth quarter the profitability improved to break-even. The tough
price competition in both domestic and export markets continued and the sales
margins remained low, which was seen in the frozen products, in particular. The
extraordinary sales of excess frozen stock, which had started in the third
quarter, continued in the fourth quarter and caused a negative impact on sales
margins. The sales of fresh chicken in Sweden started in spring and developed
well during the rest of the year.
The operative cash flow in the fourth quarter was exceptionally strong as the
remaining fire insurance compensation payment was received in full, whereas a
year before and earlier during 2013 there was a significant insurance
compensation receivable in the books.
In November, the fire insurance case was settled and completed with the
insurance company. The unpaid part of the insurance compensation payments were
received during the fourth quarter. The insurance covered damage to property,
loss of profit and additional costs caused by business interruption. The
property insurance compensation part of the total compensation amounted to EUR
26.5 million (EUR 7.1 million in 2013 and EUR 19.3 million in 2012). They are
reported as non-recurring income. The insurance compensation for the business
interruption as loss of profit and additional costs covered the time period of
24 months from June 2012 to May 2014.
As for the whole of 2013, the market position was returned to the same level as
it was before the fire in June 2012, but tough price competition kept the sales
margin low resulting poor profitability. From the operations point of view the
rebuild and start-up of the new production lines were completed during the
year. All the temporary production arrangements were discontinued and as a part
of these production rearrangements the operations at the Padborg plant were
closed down in mid-June and the facility was later sold. At the end of June,
around 100 personnel were given notice at the Skovsgaard plant.
MARKET AREA: POLAND *)
---------------------------------
(EUR million) Q4/2013 Q4/2012 2013 2012
----------------------------------------------------------
----------------------------------------------------------
Net sales 94.3 87.7 375.1 343.7
----------------------------------------------------------
EBIT 4.3 4.3 18.8 15.8
----------------------------------------------------------
- EBIT margin, % 4.6 4.9 5.0 4.6
----------------------------------------------------------
---------------------------------------------
*) Represents HKScan's 50% share of Sokolów.
In Poland, net sales were EUR 375.1 (343.7) million and EBIT was EUR 18.8
(15.8) million in 2013.
In the fourth quarter, net sales amounted to EUR 94.3 (87.7) million. EBIT for
the period was EUR 4.3 (4.3) million.
Sales growth was strong throughout the year. Sales of branded processed and
barbecue products increased thanks to the expanded product range. Furthermore,
the high recognition of the Sokolów brand continued to contribute to the
positive development. As a result the profitability was good.
An improved level in beef supply in Poland was accompanied by a decrease in
purchase prices. The slaughtering volumes of Sokolów grew and enabled larger
export volumes. Polish consumer demand for beef increased. Additionally,
exports of processed products increased starting from the third quarter.
Responding to the market situation, Sokolów launched a new line of products
using “Mylar Cook” technology for convenience food during the third quarter.
In September, at the International Polagra Fair in Poznań, four Sokolów
products were awarded with gold medals for up-to-date, innovative and highest
technology products.
In a rating of the most valuable brands in Poland, the Sokolów brand reached
the 10th place and it had the highest brand value in the meat industry.
INVESTMENTS
The Group's net investments in 2013 came to EUR 52.9 (76.6) million and were
divided by market area as follows:
(EUR million) Q4/2013 Q4/2012 2013 2012
------------------------------------------------------------------
Finland 4.4 4.7 15.2 11.8
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Baltics 1.2 2.2 8.7 10.5
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Sweden 2.6 2.2 6.1 7.4
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Denmark 1) 6.8 24.6 12.1 33.0
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Poland 2) 2.9 2.1 10.8 14.0
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Total 17.9 35.9 52.9 76.6
------------------------------------------------------------------
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1) The investments include rebuilding of the Vinderup plant.
2) HKScan's share (50%) of Sokolów investments.
A substantial share of the investments planned and executed in 2013 focused on
improvements in operational efficiency, which has been identified as a
strategic focus area.
The main investments during 2013 included the following: in Finland, transfers
of production lines between the Vantaa, Mikkeli and Säkylä plants, production
line and infrastructure investment for processed meat products in Mikkeli, as
well as investments in poultry production in the Eura plant were completed. In
the Baltics market area, the consolidation of poultry production to the renewed
Tabasalu plant was carried out, as well as capacity enhancement in primary
production at Pärnjõe farm in Estonia. In Sweden, the main investments were
made at the Skara plant to improve energy efficiency. In Poland, several
investments were made in the production plants, such as the investments in
processing and packing at the Sokolów Podlaski plant, as well as in power
supply and cooling systems at the Kolo facility.
FINANCING AND TAXES
The Group's interest-bearing debt at year-end stood at EUR 431.1 (499.7)
million. Net debt decreased to EUR 355.7 (440.9) million.
The Group's liquidity has been good throughout the financial year. Undrawn
committed credit facilities on 31 December 2013 stood at EUR 161.5 (177.4)
million. In addition, the Group had other unused overdraft and other facilities
of EUR 35.7 (28.8) million. The EUR 200 million commercial paper programme had
been drawn to the amount of EUR 129.0 (120.0) million.
In November, HKScan signed an approx. EUR 135 million secured multi-currency
credit facility arrangement with a Nordic banking group. The arrangement
refinanced the remaining part of the syndicated credit facility established in
2007 which matures in June 2014.
Net financial expenses were EUR -24.2 (-31.7) million. The decline is mainly
attributable to a lower loan amount and lower interest rate level.
Group taxes were EUR 0.1 (3.4) million positive.
RESEARCH AND DEVELOPMENT
Research and development in HKScan Group mainly involves 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 11.2 (10.5) million was spent on R&D, equal to
0.5 (0.4) per cent of net sales.
The Group R&D function and the Group-wide category management organisation were
founded in 2013. The organisations work in a matrix across businesses and
countries. The innovation strategy was finalised and the implementation started
at the end of the year. Group-level processes and developing common platforms
have been accelerated and it is estimated that the first Group-level
R&D-projects will bring results in 2014.
Product development highlights of 2013 include, among other things, premium
barbeque sausages in Sweden and organic and corn-fed chicken products in
Denmark. In the Baltics, launches include the new Kiev cutlet and
snack-products, which well answered the growing demand. In Finland new organic
pork-meat based processed products were launched.
HKScan R&D is based on sharing information in a collaborative and networking
model, and the cooperation with research institutes continues in order to
expand expertise of developing new meat-based concepts. Research and
development of the rapeseed pork (HK Rypsiporsas® in Finland and Svensk
Rapsgris® in Sweden) concept continued.
SUSTAINABILITY
HKScan is committed to systematic development of sustainable business.
Sustainable operations apply to the entire supply chain from feed and genetics
to the consumer's plate. In 2013 a sustainability programme was launched to
systematically manage and develop sustainability.
Economic sustainability refers to long-term profitability of HKScan and its
stakeholders. The Group is an important employer, and its investments
contribute to the local economies. HKScan production is firmly based on its
home markets and tightly connected to local primary production through
contracts.
Social sustainability includes product responsibility, employee well-being and
relations with society and communities. Products are produced responsibly at
HKScan; they are safe for consumers and the taste and quality meets their
expectations. In addition, HKScan works continuously to improve the nutritional
balance. Organisational restructurings and other actions related to the
personnel are handled in a responsible way. New possibilities for Group-wide
cooperation and development have arisen for the personnel.
Animal welfare—ethical treatment of animals—is considered in genetics, farms,
transportation and slaughterhouses. The animal disease status is good (i.e.
low) in HKScan's contract production and in its own primary production. Control
of animal diseases is a constant part of day to day work in preventing all
incidents. Antibiotics are used only for diagnosed needs, and this is being
carefully monitored.
Environmental management includes climate change mitigation and use of
renewable energy sources, waste management and sustainable handling of
resources and chemicals. The Group works to decrease greenhouse gas emissions
through energy efficiency activities and transition to renewable energy
sources. For example, in Sweden HKScan's target is to reduce climate emissions
by 50% up till 2020, and a greenhouse gas emissions disclosure was published
together with the other companies in “the Haga Initiative” climate network.
HKScan also engages in local commitments and projects. Several production sites
have been able to improve their material efficiency. The Group works to
decrease the number of chemicals in use and to substitute them with more
environmentally sound alternatives.
HKScan increases its collaboration with its stakeholders to share the meat
expertise of the value chain. In order to increase the transparency of the
supply chain the Group has developed its supplier evaluation process and
traceability.
SHARES AND SHAREHOLDERS
Shares
The HKScan Group's registered and fully paid-up share capital at the beginning
and the end of 2013 was EUR 66 820 528.10. The total number of shares issued
was 55 026 522, and it was divided into two share series as follows: A Shares,
49 626 522 (90.19% of the total number of shares) and K Shares 5 400 000
(9.81%). The A Shares are quoted on the NASDAQ OMX Helsinki. The K Shares are
held by LSO Osuuskunta (4 735 000 shares) and Sveriges Djurbönder ek.för. (665
000 shares) and are not listed.
According to the Articles of Association, each A Share conveys one vote, and
each K Share 20 votes. Each share gives equal entitlement to a dividend. The
shares have no nominal value.
HKScan's market capitalisation at the end of the year stood at EUR 206.9
million using the closing price of the last trading day of the period. The
Series A shares had a market value of EUR 186.6 million, and the unlisted
Series K shares EUR 20.3 million correspondingly.
In 2013, a total of 7 670 318 of the company's shares, with a total value of
EUR 28 414 082, were traded. The highest price quoted was EUR 4.28 and the
lowest EUR 3.29. The average price was EUR 3.70. At the end of 2013, the
closing price was EUR 3.76.
HKScan has a market-making agreement with FIM Pankkiiriliike Oy which meets the
requirements of NASDAQ OMX's Liquidity Providing (LP) operation.
Shareholders
At the end of 2013, the shareholder register maintained by Euroclear Finland
Ltd included 12 159 shareholders. Nominee-registered and foreign shareholders
held 20.2 per cent of the company's shares.
Notifications of changes in holdings
HKScan did not receive any notifications of changes in holdings during 2013.
Treasury shares
At the beginning and at the end of the financial year 2013, HKScan held 1 053
734 treasury A Shares. At the end of 2013, they had a market value of EUR 3.96
million and accounted for 1.91% of all shares and 0.67% of all votes.
Share-based incentive scheme
HKScan has a share-based incentive plan for the Group key personnel for years
2013 - 2015. The aim of the plan is to combine the objectives of the
shareholders and the key personnel in order to develop the value of the
company, to commit the key personnel to the company, to increase their share
ownership in the company, and to offer them a competitive reward plan based on
earning and holding the company's shares. The incentive plan and conditions are
described in detail in the stock exchange release dated 20 December 2012.
ANNUAL GENERAL MEETING AND BOARD OF DIRECTORS' AUTHORISATIONS
The Annual General Meeting of HKScan Corporation, held on 24 April 2013, in
Turku, adopted the parent company's and consolidated financial statements and
discharged the members of the Board of Directors and the CEO from liability for
the year 2012. The AGM resolved that a dividend of EUR 0.10 per share be paid
for 2012.
The AGM resolved to amend the Articles 8 and 9 in the company's Articles of
Association so that the Board of Directors may include one to three deputy
members when necessary and that the number of Board members can be increased to
a maximum of eight actual members.
In addition, concerning Article 12 of the Articles of Association, the AGM
resolved to amend the number of auditors, so that the company has at least one
and a maximum of two auditors who must be auditors accepted by the Central
Chamber of Commerce (CPA) or auditing firms. If only one auditor is appointed
for the Company, and it is not an auditing firm approved by the Central Chamber
of Commerce, one deputy auditor must be appointed.
The AGM also decided on the annual remuneration of the Board's members, deputy
members and the chairs of the committees. In addition, compensation per meeting
will be paid for each Board and Board committee meeting attended.
The AGM resolved that the number of actual members of the Board of Directors to
be six (6), and that two (2) deputy members will be elected to the Board of
Directors.
The previous Board members, Juha Kylämäki, Niels Borup, Teija Andersen, Gunilla
Aschan, Tero Hemmilä and Henrik Treschow, were re-elected and Mikko Nikula and
Per Nilsson were elected as deputy members. At the organisational meeting after
the AGM, the Board re-elected Juha Kylämäki as Chairman and Niels Borup as Vice
Chairman.
PricewaterhouseCoopers Oy, an audit firm chartered by the Central Chamber of
Commerce, with APA Johan Kronberg as the main auditor, was appointed as the
auditor. The remuneration of the auditor will be paid according to the
auditor's invoice accepted by the company.
The AGM gave three authorisations to the Board to decide on an issue of shares,
option rights as well as other special rights entitling to shares, on acquiring
and/or accepting as pledge treasury A Shares and on the transfer of treasury
acquired for the company. The authorisations will be effective until 30 June
2014, replacing the authorisations given by the AGM 25 April 2012.
During 2013, the Board did not exercise the authorisations given by the AGM.
The resolutions of the Annual General Meeting have been published in full in
the stock exchange release of 24 April 2013, and they are also available on the
company's website at www.hkscan.com.
PERSONNEL
In 2013, HKScan, excluding Sokolów in Poland, had an average of 7 698 (7 836)
personnel.
During 2013, the average number of personnel decreased in Finland, the Baltics
and Denmark due to the efficiency programmes.
The average number of employees in each market area was as follows:
2013 2012
---------------------
Finland 2 685 2 794
---------------------
Baltics 1 685 1 742
---------------------
Sweden 2 459 2 428
---------------------
Denmark 869 872
---------------------
Total 7 698 7 836
---------------------
In addition, the Sokolów Group employed an average of 6 458 (6 310) persons
during the year.
Division of personnel by market area at year end is as follows:
31.12.2013 31.12.2012
-------------------------------
Finland 2 572 2 592
-------------------------------
Baltics 1 732 1 700
-------------------------------
Sweden 2 248 2 339
-------------------------------
Denmark 838 893
-------------------------------
Total 7 390 7 524
-------------------------------
Additionally, the Sokolów Group had 6 813 (6 491) employees at the end of the
year.
GROUP MANAGEMENT TEAM
The Management Team of the Group is as follows: Hannu Kottonen, CEO; Aki Laiho,
COO responsible for the development of technology and production; Tuomo
Valkonen, CFO; Samuli Eskola, EVP responsible for the consumer business in
Finland and the Baltics; Göran Holm, EVP responsible for the consumer business
in Scandinavia; Jukka Nikkinen, EVP of Away from Home Business; Sari Suono,
EVP, HR; Anne Mere, CMO; and Markku Suvanto, EVP Legal and Administration, who
also acts as the Group Management Team's secretary.
CHANGES IN THE GROUP STRUCTURE
In order to minimise administration and promote internal process harmonisation,
HKScan continued streamlining and clarifying its corporate structure.
In Finland, HK Agri Oy—the HK Ruokatalo Oy's wholly owned subsidiary
responsible for meat procurement and producer services—was merged with HK
Ruokatalo Oy on 31 December 2013.
In Sweden, Pärsons Sverige AB's business was merged with HKScan Sweden at the
beginning of September 2013. In December 2013, HKScan announced to increase its
former 30 per cent ownership in Höglandsprodukter AB, in Halmstad, Sweden to
100 per cent.
The Latvian subsidiaries Rīgas Miesnieks and Jelgavas Gaļas Kombināts were
merged to form Rīgas Miesnieks as of the beginning of March.
Other changes in the Group structure are described in the events after the
reporting period.
CLAIM BY OY PRIMULA AB'S BANKCRUPTY ESTATE
In September 2012, HKScan Corporation and HK Ruokatalo Oy were notified that Oy
Primula Ab's bankruptcy estate has submitted an action for damages to the
District Court of Finland Proper concerning the companies. The claim amounts to
about EUR 16.3 million, plus claims related to interest and legal process
costs.
HKScan Corporation and HK Ruokatalo Oy find the action to be unjustified, and
the companies have disputed the claim in its entirety in the pending trial.
Therefore, the action did not give rise to any provisions in the consolidated
financial statements.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
The most significant uncertainty factors in the HKScan Group's business are
connected—through price increases for feed raw material in particular and other
production inputs related to primary production—to price development and the
availability of local meat raw material, as well as to the adequacy of
increases in the sales prices for the products in relation to cost development.
The risks include various unexpected authority actions, which may cause
restrictions for the business. Additionally, the Group's on-going development
projects and organisational restructurings can bring uncertainties caused by
own actions and unforeseen extra costs.
The risks of animal diseases in the food industry's raw meat supplies or
eventual international or regional food scandals impacting on the overall
consumption outlook can never be fully excluded.
EVENTS AFTER THE REPORTING PERIOD
As part of its development programme and strategy review in Sweden, HKScan sold
its 49 per cent stake in Nyhléns & Hugosons Chark AB to Alviksgården Lantbruks
AB on 2 January 2014. The sales price amounted to EUR 2.2 million which was
paid in cash. The transaction caused an asset impairment of EUR 2.3 million
which is reported as a non-recurring cost in the fourth quarter of 2013.
OUTLOOK FOR 2014
HKScan expects the comparable operating profit (EBIT) margin to be 1 - 2 per
cent, and anticipates that the last quarter will be the strongest. In 2013, the
corresponding comparable operating profit (EBIT) margin was 0.5 per cent.
The outlook takes into account that the market area Poland (HKScan's 50 per
cent share of Sokolów) will be excluded in the consolidated operating profit
based on the change of IFRS 11 in the International Financial Reporting
Standards as of 1 January 2014.
HKScan expects the overall economic situation to remain tough. However, the
market situation in both demand and supply is anticipated to improve from the
previous year. Group's development programmes will continue to contribute to
better financial performance.
BOARD OF DIRECTORS' PROPOSAL ON DISTRIBUTION OF PROFIT
The parent company's distributable equity stands at EUR 187.0 million including
the reserve for invested unrestricted equity, which holds EUR 143.1 million.
The Board of Directors recommends that the company pays a dividend of EUR 0.10
per share for 2013, i.e. a total of approximately EUR 5.4 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 2014
HKScan Corporation's Annual General Meeting 2014 will be held at 11 am on 10
April 2014 in the Finlandia Hall, Helsinki. To be eligible to attend the Annual
General Meeting, shareholders should be registered by 31 March 2014 in HKScan
Corporation's shareholder register maintained by Euroclear Finland Ltd. Notice
to the meeting and Board proposals to the Annual General Meeting will be
published at a later date.
CONSOLIDATED FINANCIAL STATEMENTS 1 JANUARY - 31 DECEMBER 2013
CONSOLIDATED INCOME STATEMENT
(EUR million) Note 2013 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 2 478.6 2 503.1
--------------------------------------------------------------------------------
Other operating income 1. 38,0 57.6
--------------------------------------------------------------------------------
Share of associates' results 0.0 -0.1
--------------------------------------------------------------------------------
Materials and services 1. -1 792.7 -1 843.9
--------------------------------------------------------------------------------
Employee benefits expenses 1. -366.5 -380.0
--------------------------------------------------------------------------------
Depreciation and amortisation 1. -71.6 -85.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other operating expenses 1. -255.2 -207.7
--------------------------------------------------------------------------------
EBIT 30.5 43.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 6.5 5.4
--------------------------------------------------------------------------------
Financial expenses -30.7 -37.1
--------------------------------------------------------------------------------
Share of associates' results 3.4 3.0
------------------------
PROFIT/LOSS BEFORE TAXES 9.7 14.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income tax 0.1 3.4
--------------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD 9.8 17.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD ATTRIBUTABLE TO:
--------------------------------------------------------------------------------
Equity holders of the parent 8.7 16.4
--------------------------------------------------------------------------------
Non-controlling interests 1.1 1.3
--------------------------------------------------------------------------------
Total 9.8 17.7
--------------------------------------------------------------------------------
Earnings per share calculated on profit attributable to equity holders of the
parent:
--------------------------------------------------------------------------------
-
EPS, undiluted, continuing operations, EUR/share 0.16 0.30
--------------------------------------------------------------------------------
EPS, diluted, continuing operations, EUR/share 0.16 0,30
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(EUR million) 2013 2012
------------------------------------------------------------
Profit/loss for the period 9.8 17.7
------------------------------------------------------------
------------------------------------------------------------
OTHER COMPREHENSIVE INCOME (after taxes):
------------------------------------------------------------
Items that may be subsequently reclassified to
profit or loss
------------------------------------------------------------
Exchange differences on translating foreign -3.4 7.6
operations
------------------------------------------------------------
Cash flow hedging 2.8 0.2
------------------------------------------------------------
Revaluation 0.0 0.0
------------------------------------------------------------
Items that will not be reclassified to profit or
loss
------------------------------------------------------------
Actuarial gains or losses 1.6 1.2
------------------------------------------------------------
TOTAL OTHER COMPREHENSIVE INCOME 1.0 8.9
------------------------------------------------------------
------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 10.8 26.7
------------------------------------------------------------
------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO:
------------------------------------------------------------
Equity holders of the parent 9.7 25.2
------------------------------------------------------------
Non-controlling interests 1.1 1.4
------------------------------------------------------------
Total 10.8 26.7
------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(EUR million) Note 31.12.2013 31.12.2012
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Intangible assets 2. 74.7 77.7
--------------------------------------------------------------------------------
Goodwill 3. 100.9 101.5
--------------------------------------------------------------------------------
Tangible assets 4. 478.7 504.6
--------------------------------------------------------------------------------
Shares in associates 29.4 34.7
--------------------------------------------------------------------------------
Trade and other receivables 3.5 6.0
--------------------------------------------------------------------------------
Available-for-sale investments 14.1 12.9
--------------------------------------------------------------------------------
Deferred tax asset 29.0 28.9
--------------------------------------------------------------------------------
NON-CURRENT ASSETS 730.3 766.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Inventories 5. 168.8 176.3
--------------------------------------------------------------------------------
Trade and other receivables 180.8 216.5
--------------------------------------------------------------------------------
Income tax receivable 0.2 0.9
--------------------------------------------------------------------------------
Other financial assets - -
--------------------------------------------------------------------------------
Cash and bank 74.9 58.9
--------------------------------------------------------------------------------
CURRENT ASSETS 424.6 452.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ASSETS 1 154.9 1 218.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY
--------------------------------------------------------------------------------
Share capital 6. 66.8 66.8
--------------------------------------------------------------------------------
Share premium reserve 73.5 73.4
--------------------------------------------------------------------------------
Treasury shares 0.0 0.0
--------------------------------------------------------------------------------
Fair value reserve and other reserves 164.7 155.0
--------------------------------------------------------------------------------
Translation differences 2.0 5.5
--------------------------------------------------------------------------------
Retained earnings 93.1 93.7
--------------------------------------------------------------------------------
Equity attributable to equity holders of the 400.0 394.4
parent
--------------------------------------------------------------------------------
Non-controlling interests 9.0 8.6
--------------------------------------------------------------------------------
EQUITY 409.0 403.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES
--------------------------------------------------------------------------------
Deferred tax liability 27.0 27.6
--------------------------------------------------------------------------------
Non-current interest-bearing liabilities 260.1 312.9
--------------------------------------------------------------------------------
Non-current non-interest bearing liabilities 2.4 2.0
--------------------------------------------------------------------------------
Non-current provisions 0.1 0.1
--------------------------------------------------------------------------------
Pension obligations 9.0 10.4
--------------------------------------------------------------------------------
NON-CURRENT LIABILITIES 298.6 352.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CURRENT LIABILITIES
--------------------------------------------------------------------------------
Current interest-bearing liabilities 171.0 186.8
--------------------------------------------------------------------------------
Trade and other payables 273.4 275.0
--------------------------------------------------------------------------------
Income tax liability 2.0 0.5
--------------------------------------------------------------------------------
Current provisions 0.8 0.7
--------------------------------------------------------------------------------
CURRENT LIABILITIES 447.3 463.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES 1 154.9 1 218.9
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.4 -13.7 143.5 25.2 5.4 0.0 93.7 394.4 8.6 403.0
1.1.2013
--------------------------------------------------------------------------------
Result for - - - - - - - 8.7 8.7 1.1 9.8
the
financial
period
--------------------------------------------------------------------------------
Other
comprehens
ive
income (+)
/
expense
(-)
--------------------------------------------------------------------------------
Transl. - - - - - -3.4 - - -3.4 - -3.4
diff.
--------------------------------------------------------------------------------
Cash flow - - 2.8 - - - - - 2.8 - 2.8
hedging
--------------------------------------------------------------------------------
Actuarial - - - - - - - 1.6 1.6 - 1.6
gains
or losses
--------------------------------------------------------------------------------
Total - - 2.8 - - -3.4 - 10.3 9.7 1.1 10.8
compreh.
income for
the
period
--------------------------------------------------------------------------------
Direct - - - - - - - -0.1 -0.1 - -0.1
recognit.
in
retained
earnings
--------------------------------------------------------------------------------
Transfers - - - - 5.6 - - -5.5 0.1 -0.1 0.0
between
items
--------------------------------------------------------------------------------
Dividend - - - - - - - -5.4 -5.4 -0.6 -6.0
distribut.
--------------------------------------------------------------------------------
Other - 0.2 - - 1.2 - - - 1.4 - 1.4
change
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.5 -10.8 143.5 32.0 2.0 0.0 93.1 400.0 9.0 409.0
31.12.2013
--------------------------------------------------------------------------------
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.4 -13.9 143.5 23.5 -1.9 0.0 117.9 409.3 12.2 421.5
1.1.2012
previously
presented
--------------------------------------------------------------------------------
The effect 0,0 0,0 0,0 0,0 0,0 0,0 0,0 -29.2 -29.2 0,0 -29.2
of
changes in
accounting
policies
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.4 -13.9 143.5 23.5 -1.9 0.0 88.7 380.0 12.2 392.2
1.1.2012
restated
--------------------------------------------------------------------------------
Result for - - - - - - - 16.4 16.4 1.3 17.7
the
financial
period
--------------------------------------------------------------------------------
Other
comprehens
ive
income (+)
/
expense
(-)
--------------------------------------------------------------------------------
Transl. - - - - - 7.4 - - 7.4 0.2 7.6
diff.
--------------------------------------------------------------------------------
Cash flow - - 0.2 - - - - - 0.2 - 0.2
hedging
--------------------------------------------------------------------------------
Revaluat. - - - - 0.0 - - - 0.0 - 0.0
--------------------------------------------------------------------------------
Actuarial - - - - - - - 1.2 1.2 - 1.2
gains
or losses
--------------------------------------------------------------------------------
Total - - 0.2 - 0.0 7.4 - 17.6 25.2 1.4 26.7
compreh.
income for
the
period
--------------------------------------------------------------------------------
Direct - - - - - - - -1.5 -1.5 - -1.5
recognit.
in
retained
earnings
--------------------------------------------------------------------------------
Transfers - - - - 1.7 - - -1.7 0.0 - 0.0
between
items
--------------------------------------------------------------------------------
Dividend - - - - - - - -9.3 -9.3 -0.9 -10.2
distribut.
--------------------------------------------------------------------------------
Other - - - - - - - - - -4.2 -4.2
change
--------------------------------------------------------------------------------
EQUITY AT 66.8 73.4 -13.7 143.5 25.2 5.5 0.0 93.7 394.4 8.6 403.0
31.12.2012
--------------------------------------------------------------------------------
COLUMNS: 1. Share capital, 2. Share premium reserve, 3. Revaluation reserve, 4.
Reserve for invested unrestricted equity (RIUE), 5. Other reserves, 6.
Translation differences, 7. Treasury shares, 8. Retained earnings, 9. Equity
holders of the parent, 10. Non-controlling interests, 11. Total
CASH FLOW STATEMENT
(EUR million) 2013 2012
--------------------------------------------------------------------------------
Operating activities
--------------------------------------------------------------------------------
Cash flow from operating activities 151.3 140.5
--------------------------------------------------------------------------------
Financial items and taxes -20.1 -33.7
--------------------------------------------------------------------------------
Net cash flow from operating activities 131.2 106.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments
---------------
Gross investments in property, plant and equipment -57.6 -76.9
--------------------------------------------------------------------------------
Disposals of property, plant and equipment 11.0 1.5
--------------------------------------------------------------------------------
Shares in associates purchased -1.2 -0.2
--------------------------------------------------------------------------------
Shares in associates sold 1.1 3.9
--------------------------------------------------------------------------------
Loan receivables borrowings and repayments 0.6 -1.4
--------------------------------------------------------------------------------
Net cash flow from investing activities -46.0 -73.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow before financing activities 85.2 33.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financing activities
--------------------------------------------------------------------------------
Current borrowings raised 12.9 25.5
--------------------------------------------------------------------------------
Current borrowings repaid -195.5 -52.7
--------------------------------------------------------------------------------
Non-current borrowings raised 130.8 125.0
--------------------------------------------------------------------------------
Non-current borrowings repaid -11.3 -102.7
--------------------------------------------------------------------------------
Dividends paid -5.9 -9.9
--------------------------------------------------------------------------------
Purchase of own shares - -8.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash flow from financing activities -69.0 -22.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and cash equivalents 16.2 11.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash equivalents at 1.1. 58.9 48.4
--------------------------------------------------------------------------------
Effect of changes in exchange rates on cash and cash equivalents -0.3 -0.6
--------------------------------------------------------------------------------
Cash and cash equivalents at 31.12. 74.9 58.9
--------------------------------------------------------------------------------
FINANCIAL INDICATORS
2013 2012
--------------------------------------------------------------------
Net sales, EUR million 2 478.6 2 503.1
--------------------------------------------------------------------
Operating profit/loss (EBIT), EUR million 30.5 43.1
--------------------------------------------------------------------
- % of net sales 1.2 1.7
--------------------------------------------------------------------
Profit/loss before taxes, EUR million 9.7 14.3
--------------------------------------------------------------------
- % of net sales 0.4 0.6
--------------------------------------------------------------------
Return on equity (ROE), % 2.4 4.3
--------------------------------------------------------------------
Return on capital employed (ROCE) before taxes , % 4.4 5.8
--------------------------------------------------------------------
Equity ratio, % 35.4 33.1
--------------------------------------------------------------------
Gearing ratio % 105.4 124.0
--------------------------------------------------------------------
Net gearing ratio, % 87.0 109.2
--------------------------------------------------------------------
Gross investments, EUR million 52.9 76.6
--------------------------------------------------------------------
- % of net sales 2.1 3.1
--------------------------------------------------------------------
R&D expenses, EUR million 11.2 10.5
--------------------------------------------------------------------
- % of net sales 0.5 0.4
--------------------------------------------------------------------
Average no. of employees 7 698 7 836
--------------------------------------------------------------------
PER SHARE DATA
2013 2012
--------------------------------------------------------------------
--------------------------------------------------------------------
Earnings per share (EPS), undiluted, EUR 0.16 0.30
--------------------------------------------------------------------
Earnings per share (EPS), diluted, EUR 0.16 0.30
--------------------------------------------------------------------
Equity per share, EUR 7.41 7.31
--------------------------------------------------------------------
--------------------------------------------------------------------
Dividend per share, EUR 0.10* 0.10
--------------------------------------------------------------------
Dividend payout ratio, undiluted, % 62.1* 33.2
--------------------------------------------------------------------
Dividend payout ratio, diluted, % 62.1* 33.2
--------------------------------------------------------------------
Effective dividend yield, % 2.7* 2.8
--------------------------------------------------------------------
Price/earnings ratio (P/E)
--------------------------------------------------------------------
- undiluted 23.3 12.0
--------------------------------------------------------------------
- diluted 23.3 12.0
--------------------------------------------------------------------
Lowest trading price, EUR 3.29 3.17
--------------------------------------------------------------------
Highest trading price, EUR 4.28 6.40
--------------------------------------------------------------------
Middle price, EUR 3.70 4.34
--------------------------------------------------------------------
Closing price on year, EUR 3.76 3.63
--------------------------------------------------------------------
Market capitalisation, EUR million 206.9 199.7
--------------------------------------------------------------------
Shares traded, 1 000 7 670 9 084
--------------------------------------------------------------------
- % of average number 14.1 16.7
--------------------------------------------------------------------
Adjusted number of outstanding shares in thousands
--------------------------------------------------------------------
- average during the financial year 53 973 54 556
--------------------------------------------------------------------
- at end of financial year 53 973 53 973
--------------------------------------------------------------------
- fully diluted 53 973 53 973
--------------------------------------------------------------------
* Based on the Board of Directors' dividend proposal
CALCULATION OF FINANCIAL INDICATORS
Profit
Return on equity (%) --------------------------------------- x 100
Total equity (average)
Profit before tax + interest and
other financial expenses
Return on capital employed --------------------------------------- x 100
(ROCE) before tax (%) Balance sheet total - non-
interest-bearing liabilities
(average)
Total equity
Equity ratio (%) --------------------------------------- x 100
Balance sheet total - advances
received
Interest-bearing liabilities
Gearing ratio (%) --------------------------------------- x 100
Total equity
Net interest-bearing liabilities
Net gearing ratio (%) --------------------------------------- x 100
Total equity
Profit for the period
attributable to equity holders of
the parent
Earnings per share (EPS) ---------------------------------------
Average number of outstanding
shares during period
Equity attributable to holders of
the parent
Equity per share ---------------------------------------
Number of outstanding shares at
end of period
Dividend distribution
Dividend per share ---------------------------------------
Number of outstanding shares at
end of period
Dividend per share
Dividend payout ratio (%) --------------------------------------- x 100
Earnings per share
Dividend per share
Effective dividend yield (%) --------------------------------------- x 100
Closing price on the last trading
day of the financial year
Closing price on the last trading
day of the financial year
P/E ratio ---------------------------------------
Earnings per share
Market capitalisation The number of outstanding shares at the end of
period x the closing price on the last trading
day of
the financial year
Cash flow before debt service Cash flow before financing activities and
financial
items
Employee numbers Average of workforce figures calculated
at the end of calendar months
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS:
ACCOUNTING POLICIES
HKScan Corporation's financial statement release for 1 January — 31 December
2013 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 on 31 December 2013.
The consolidated financial statements have been prepared in compliance with the
same accounting policies as in 2012, with the exception of the revised IAS 19
Employee Benefits standard (effective as of 1 January 2013). In addition, the
Group has changed the accounting principles for marketing support. The Group's
financial statement 2013 is in line with these changes. The Group financial
statement 2012 has been restated accordingly. Due to the rounding of the
figures to the nearest million euros, some totals may not agree with their
constituent parts.
IASB has published the following new or revised standards and interpretations
that the Group has not yet adopted. The Group will adopt these standards as of
the effective date of each of the standards, or if the effective date is not
the first day of the reporting period, as of the beginning of the next
reporting period following the effective date.
- IFRS 9 Funding instruments and changes to it (the date for mandatory
application is still open). When complete, the IASB project, originally
consisting of three phases, will replace the current standard IAS 39 Financial
Instruments: Recognition and Measurement. The first phase of IFRS 9 covers the
classification of financial assets; the measurement depends on the contractual
cash flow characteristics and the company's business model. The second phase,
issued in October 2010, covers the classification and measurement of financial
liabilities and is largely based on the requirements of the current IAS 39.
However, IASB is still considering limited amendments to the already issued
IFRS 9 guidance on the classification and measurement of financial assets. The
other incomplete issues concern impairment and general hedge accounting. IASB
has decoupled accounting for macro hedging from IFRS 9 and it will be
progressed as a separate project. Due to the incomplete sections, for the time
being it is not possible to assess the final effects of the standard on the
consolidated financial statements. The standard has not yet been endorsed for
application in the EU.
- IFRS 10 Consolidated Financial Statements (applicable in the EU as of 1
January 2014 or subsequent accounting periods). Based on existing principles,
the standard defines control as a primary factor when determining whether an
entity should be included within the consolidated financial statements. In
addition, the standard provides further guidance on how to assess control in
difficult cases. The standard will become mandatory in the EU in 2014. The
impacts of IFRS 10 are being assessed, and the Group willadopt it in 2014.
- IFRS 11 Joint Arrangements (applicable in the EU as of 1 January 2014 or
subsequent accounting periods). The standard focuses on the rights and
obligations in the accounting of joint arrangements rather than on their legal
form. There are two types of joint arrangement: joint operations and joint
ventures. The standard also requires a single method, the equity method, in
joint venture reporting and the previous option to apply proportionate
consolidation is no longer allowed. The new standard will significantly change
reporting of the Group's figures and the segment of Poland. The Group will
adopt the standard in 2014.
- IFRS 12 Disclosures of Interests in Other Entities (applicable in the EU as
of 1 January 2014 or subsequent accounting periods). The standard includes the
disclosure requirements for various interests in other entities, including
associates, joint arrangements, special purpose companies and other off-balance
sheet companies. The new standard will expand the notes concerning the Group's
holdings in other entities. The standard has been endorsed for application in
the EU, and the Group will adopt it as of the accounting period that begins on
1 January 2014.
- IAS 27 (revised in 2011) Separate Financial Statements (applicable in the EU
as of 1 January 2014 or subsequent accounting periods). The revised standard
includes those requirements concerning separate financial statements which
remain after the sections concerning control have been incorporated in the new
IFRS 10. The revision of the standard is not expected to have a material effect
on the Group's financial statements.
- IAS 28 (revised in 2011) Investments in Associates and Joint Ventures
(applicable in the EU as of 1 January 2014 or subsequent accounting periods).
The revised standard includes requirements for accounting of joint ventures as
well as associates with the equity method following the issue of IFRS 11.
- Amendment to IAS 32 Financial Instruments: Presentation (applicable in the EU
as of 1 January 2014 or subsequent accounting periods). The amendment clarifies
the rules concerning the presentation of financial assets and liabilities as
net amounts and provides further application guidance. The amendment will not
have a material effect on the Group's financial statements. The revised
standard has not yet been endorsed for application in the EU.
- Amendment to IAS 36 Impairment of Assets: Recoverable Amount Disclosures for
Non-Financial Assets (applicable as of the accounting period that begins on 1
January 2014 or subsequent accounting periods). The amendment will specify the
disclosure requirements concerning cash-generating units for which impairment
losses have been recognised. The revised standard has not yet been endorsed for
application in the EU.
- Amendment to IAS 39 Financial Instruments: Recognition and Measurement,
Novation of Derivatives and Continuation of Hedge Accounting (applicable as of
the accounting period that begins on 1 January 2014 or subsequent accounting
periods). The amendment concerns the requirements for the application of hedge
accounting in situations where a derivative instrument is transferred to a
central counterparty. According to the amendment, the hedge accounting may
continue provided that certain conditions in the situations in question are
met. The revised standard has not yet been endorsed for application in the EU.
- IFRIC 21 Levies (applicable as of the accounting period that begins on 1
January 2014 or subsequent accounting periods). The interpretation applies to
the accounting of a possible obligation arising to the paying party due to
public payments. The interpretation will not have an effect on the consolidated
financial statements. The interpretation has not yet been endorsed for
application in the EU.
ANALYSIS BY SEGMENT
Net sales and EBIT by market area
------------------------------------
(EUR million) Q4/2013 Q4/2012 2013 2012
--------------------------------------------------------------
NET SALES
--------------------------------------------------------------
- Finland 210.1 219.2 804.1 813.8
--------------------------------------------------------------
- Baltics 44.7 45.1 175.1 176.7
--------------------------------------------------------------
- Sweden 255.8 274.5 965.3 1 025.7
--------------------------------------------------------------
- Denmark 52.6 50.9 226.1 211.7
--------------------------------------------------------------
- Poland 94.3 87.7 375.1 343.7
--------------------------------------------------------------
- Between segments -17.0 -15.0 -67.0 -68.5
--------------------------------------------------------------
Group total 640.6 662.4 2 478.6 2 503.1
--------------------------------------------------------------
--------------------------------------------------------------
EBIT
--------------------------------------------------------------
- Finland 1.6 7.4 2.8 18.4
--------------------------------------------------------------
- Baltics 2.1 1.5 8.4 8.9
--------------------------------------------------------------
- Sweden 3.5 -0.8 8.1 -5.9
--------------------------------------------------------------
- Denmark 6.4 12.7 4.9 15.4
--------------------------------------------------------------
- Poland 4.3 4.3 18.8 15.8
--------------------------------------------------------------
- Between segments - - - -
--------------------------------------------------------------
Segments total 17.9 25.1 43.0 52.5
--------------------------------------------------------------
--------------------------------------------------------------
Group administration costs -2.7 -3.2 -12.5 -9.5
--------------------------------------------------------------
Group total 15.2 21.9 30.5 43.1
--------------------------------------------------------------
NOTES TO THE INCOME STATEMENT
1. NON-RECURRING ITEMS
(EUR million) Q4/2013 Q4/2012 2013 2012
-------------------------------------------------------------------------------
Restructuring redundancy expenses, -0.1 - -2.6 -
Finland 1)
-------------------------------------------------------------------------------
Restructuring expenses for production setup, - - -1.0 -
Finland 1)
-------------------------------------------------------------------------------
Restructuring redundancy expenses, Sweden - -4.0 - -4.0
1)
-------------------------------------------------------------------------------
Restructuring expenses for closed operations, - -3.4 - -3.4
Sweden 1)
-------------------------------------------------------------------------------
Impairment of assets, Sweden 1) -2.3 - -2.3 -
-------------------------------------------------------------------------------
Property insurance compensation, 7.1 13.8 7.1 19.3
Denmark 1)
-------------------------------------------------------------------------------
Impairment of fixed assets destroyed in the - 0.0 - -5.5
fire, Denmark 2)
-------------------------------------------------------------------------------
Restructuring expenses for layoffs, -0.7 - -0.7 -
Denmark 1)
-------------------------------------------------------------------------------
Non-recurring items Total 4.1 6.4 0.5 6.4
-------------------------------------------------------------------------------
1) Included in the Income Statement in the item Operating income and expenses
2) Included in the Income Statement in the item ”Depreciation and amortisation”
NOTES TO THE STATEMENT OF FINANCIAL POSITION
2. CHANGES IN INTANGIBLE ASSETS
(EUR million) 2013 2012
----------------------------------------------------
Carrying amount at beginning of period 77.7 76.6
----------------------------------------------------
Translation differences -2.0 2.5
----------------------------------------------------
Increase 2.1 1.9
----------------------------------------------------
Increase (acquisitions) - -
----------------------------------------------------
Decrease 0.0 -0.2
----------------------------------------------------
Depreciation and impairment -3.5 -4.5
----------------------------------------------------
Transfer to other balance sheet item 0.4 1.4
----------------------------------------------------
Carrying amount at end of period 74.7 77.7
----------------------------------------------------
3. CHANGES IN GOODWILL
(EUR million) 2013 2012
----------------------------------------------------
Carrying amount at beginning of period 101.5 101.0
----------------------------------------------------
Translation differences -0.6 1.3
----------------------------------------------------
Increase - -
----------------------------------------------------
Increase (acquisitions) - -
----------------------------------------------------
Decrease - -0.9
----------------------------------------------------
Depreciation and impairment - -
----------------------------------------------------
Transfer to other balance sheet item 0.0 -
----------------------------------------------------
Carrying amount at end of period 100.9 101.5
----------------------------------------------------
4. CHANGES IN PROPERTY, PLANT AND EQUIPMENT
----------------------------------------------
(EUR million) 2013 2012
----------------------------------------------------
Carrying amount at beginning of period 504.6 516.5
----------------------------------------------------
Translation differences -3.8 10.8
----------------------------------------------------
Increase 51.3 72.7
----------------------------------------------------
Increase (acquisitions) 0.2 -
----------------------------------------------------
Decrease -5.8 -11.5
----------------------------------------------------
Depreciation and impairment -67.5 -82.5
----------------------------------------------------
Transfer to other balance sheet item -0.2 -1.4
----------------------------------------------------
Carrying amount at end of period 478.7 504.6
----------------------------------------------------
-------------
5. INVENTORIES
(EUR million) 2013 2012
----------------------------------------------------
Materials and supplies 89.4 82.6
----------------------------------------------------
Unfinished products 12.3 13.3
----------------------------------------------------
Finished products 47.6 55.7
----------------------------------------------------
Other inventories 6.6 7.7
----------------------------------------------------
Prepayments for inventories 1.1 8.0
----------------------------------------------------
Live animals, IFRS 41 11.9 9.0
----------------------------------------------------
Total inventories 168.8 176.3
----------------------------------------------------
6. NOTES TO EQUITY
Share capital Number of Share Share Reserve for Treasu Total
and share outstanding capit premium invested ry
premium shares al reserve unrestricted
reserve equity
--------------------------------------------------------------------------------
1.1.2013 53 972 788 66.8 72.9 143.5 0.0 283.1
--------------------------------------------------------------------------------
31.12.2013 53 972 788 66.8 72.9 143.5 0.0 283.1
--------------------------------------------------------------------------------
DERIVATIVE INSTRUMENT LIABILITIES
(EUR million) 31.12.2013 31.12.2012
--------------------------------------------------------------------------------
Nominal values of derivative instruments
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Foreign exchange derivatives 78.3 67.3
--------------------------------------------------------------------------------
Interest rate derivatives 228.2 275.3
--------------------------------------------------------------------------------
Electricity derivatives 9.3 10.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Fair values of derivative instruments
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Foreign exchange derivatives -0.8 -1.1
--------------------------------------------------------------------------------
Interest rate derivatives -16.6 -24.9
--------------------------------------------------------------------------------
Electricity derivatives -2.1 -1.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CONSOLIDATED OTHER CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
-
--------------------------------------------------------------------------------
(EUR million) 31.12.2013 31.12.2012
--------------------------------------------------------------------------------
Debts secured by pledges or mortgages
--------------------------------------------------------------------------------
- loans from financial institutions 299.0 370.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Given as security
--------------------------------------------------------------------------------
- real estate mortgages 71.0 74.6
--------------------------------------------------------------------------------
- pledges 0.4 5.2
--------------------------------------------------------------------------------
- floating charges 15.3 16.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
For associates
--------------------------------------------------------------------------------
- guarantees 7.5 7.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
For others
--------------------------------------------------------------------------------
- guarantees and pledges 15.7 12.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other contingencies
--------------------------------------------------------------------------------
Leasing commitments 21.4 21.8
--------------------------------------------------------------------------------
Rent liabilities 52.1 58.0
--------------------------------------------------------------------------------
Other commitments 6.6 7.8
--------------------------------------------------------------------------------
The parent company has pledged the shares of its subsidiaries, HK Ruokatalo Oy
and Scan AB, as security for its loans.
THE FAIR VALUE DETERMINATION PRINCIPLES APPLIED BY THE GROUP ON FINANCIAL
INSTRUMENTS MEASURED AT FAIR VALUE
Derivatives
The fair values of currency derivatives are determined by using the market
prices for contracts of equal duration at the reporting date. The fair values
of interest rate swaps are determined using the net present value method
supported by the market interest rates at the reporting date. The fair value of
commodity derivatives are determined by using publicly quoted market prices.
31.12.2013 Level 1 Level 2 Level 3
--------------------------------------------------------------------------------
Assets measured at fair value
--------------------------------------------------------------------------------
Financial assets recognised at fair value
--------------------------------------------------------------------------------
through profit or loss
--------------------------------------------------------------------------------
- Trading securities - - - -
--------------------------------------------------------------------------------
- Trading derivatives
--------------------------------------------------------------------------------
- Interest rate swaps 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
- Foreign exchange derivatives 0.2 0.0 0.2 0.0
--------------------------------------------------------------------------------
- Commodity derivatives - - - -
--------------------------------------------------------------------------------
Available-for-sale financial assets
--------------------------------------------------------------------------------
- Investments in shares 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Total 0.2 0.0 0.2 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities measured at fair value
--------------------------------------------------------------------------------
Financial liabilities recognised at fair
value
--------------------------------------------------------------------------------
through profit or loss
--------------------------------------------------------------------------------
-Trading derivatives
--------------------------------------------------------------------------------
- Interest rate swaps -16.6 0.0 -16.6 0.0
--------------------------------------------------------------------------------
of which subject to cash flow hedging -12.3 0.0 -12.3 0.0
--------------------------------------------------------------------------------
- Foreign exchange derivatives -1.0 0.0 -1.0 0.0
--------------------------------------------------------------------------------
of which subject to net investment - - - -
hedging
--------------------------------------------------------------------------------
- Commodity derivatives -2.1 0.0 -2.1 0.0
--------------------------------------------------------------------------------
of which subject to cash flow hedging -2.1 0.0 -2.1 0.0
--------------------------------------------------------------------------------
Total -19.7 0.0 -19.7 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
31.12.2012 Level 1 Level 2 Level 3
--------------------------------------------------------------------------------
Assets measured at fair value
--------------------------------------------------------------------------------
Financial assets recognised at fair value
--------------------------------------------------------------------------------
through profit or loss
--------------------------------------------------------------------------------
- Trading securities - - - -
--------------------------------------------------------------------------------
- Trading derivatives
--------------------------------------------------------------------------------
- Interest rate swaps 0.1 0.0 0.1 0.0
--------------------------------------------------------------------------------
- Foreign exchange derivatives 0.1 0.0 0.1 0.0
--------------------------------------------------------------------------------
- Commodity derivatives 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Available-for-sale financial assets
--------------------------------------------------------------------------------
- Investments in shares 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
Total 0.2 0.0 0.2 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities measured at fair value
--------------------------------------------------------------------------------
Financial liabilities recognised at fair
value
--------------------------------------------------------------------------------
through profit or loss
--------------------------------------------------------------------------------
-Trading derivatives
--------------------------------------------------------------------------------
- Interest rate swaps -25.0 0.0 -25.0 0.0
--------------------------------------------------------------------------------
of which subject to cash flow hedging -19.0 0.0 -19.0 0.0
--------------------------------------------------------------------------------
- Foreign exchange derivatives -1.2 0.0 -1.2 0.0
--------------------------------------------------------------------------------
of which subject to net investment - - - -
hedging
--------------------------------------------------------------------------------
- Commodity derivatives -1.3 0.0 -1.3 0.0
--------------------------------------------------------------------------------
of which subject to cash flow hedging -1.3 0.0 -1.3 0.0
--------------------------------------------------------------------------------
Total -27.5 0.0 -27.5 0.0
--------------------------------------------------------------------------------
BUSINESS TRANSACTIONS WITH RELATED PARTIES
-------------------------------------------
(EUR million) 2013 2012
------------------------------------------------
Sales to associates 106.5 99.9
------------------------------------------------
Purchases from associates 45.5 54.9
------------------------------------------------
Trade and other receivables 4.0 3.2
------------------------------------------------
Trade and other payables 4.3 3.5
------------------------------------------------
RESTATED KEY FIGURES 2013
IFRS 11 (Joint Arrangements) requires a single method, the equity method, in
joint venture reporting and the previous option to apply proportionate
consolidation is no longer allowed. The Group will adopt the standard in 2014.
(EUR million) 2013 2013
reported restated
------------------------------------------------------------------------
Net sales 2 478.6 2 113.3
------------------------------------------------------------------------
EBIT 30,5 11.7
------------------------------------------------------------------------
- % of net sales 1.2 0.6
------------------------------------------------------------------------
Profit before taxes 9.7 6.7
------------------------------------------------------------------------
- % of net sales 0.4 0.3
------------------------------------------------------------------------
Profit for the period 9.8 9.8
------------------------------------------------------------------------
- % of net sales 0.4 0.5
------------------------------------------------------------------------
------------------------------------------------------------------------
*) EBIT, excluding non-recurring income and expenses 30.0 11.2
------------------------------------------------------------------------
- % of net sales 1.2 0.5
------------------------------------------------------------------------
------------------------------------------------------------------------
EPS, EUR 0.16 0.16
------------------------------------------------------------------------
Cash flow before debt service 103.4 86.8
------------------------------------------------------------------------
Cash Flow Before Financing Activities 84.6 74.6
------------------------------------------------------------------------
Return on capital employed before taxes (ROCE), % 4.4 4.0
------------------------------------------------------------------------
Net debt 355,7 335.3
------------------------------------------------------------------------
Gearing % 105.4 98.9
------------------------------------------------------------------------
Net Gearing % 87.0 82.0
------------------------------------------------------------------------
NEXT FINANCIAL REPORT
HKScan Group's interim report January - March 2014 will be published on 7 May
2014.
Vantaa, 12 February 2014
HKScan Corporation
Board of Directors
Further information is available from HKScan Corporation's CEO, Hannu Kottonen
and CFO, Tuomo Valkonen. Please leave any messages for them to call with
Communications Manager Elina Hollo, tel. +358 40 570 4030 or +358 10 570 2133.
DISTRIBUTION:
NASDAQ OMX Helsinki,
Main media,
www.hkscan.com
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