2009-02-12 09:00:00 CET
2009-02-12 09:00:01 CET
REGULATED INFORMATION
Raisio - Financial Statement Release
RAISIO'S NET SALES ROSE TO EUR 500 MILLION AND OPERATING RESULT MORE THAN DOUBLED
Raisio plc Financial Statement Release 12 February 2009 at 10 a.m. Finnish time RAISIO PLC FINANCIAL STATEMENTS REVIEW 2008 RAISIO'S NET SALES ROSE TO EUR 500 MILLION AND OPERATING RESULT MORE THAN DOUBLED - In 2008, Raisio's net sales increased by nearly 20% to EUR 504.0 million (EUR 421.9 million in 2007). - The Group's operating result was EUR 28.3 million (EUR 10.6 million). Operating result excluding one-off items totalled EUR 24.1 million (EUR 9.9 million), which represents 4.8% of net sales. - All of Raisio's divisions recorded a profitable operating result. - Cash flow from operations was EUR 52.7 million (EUR 15.6 million). - Earnings per share were EUR 0.14 (EUR 0.05). - The Board of Director proposes that the dividend be raised to EUR 0.07 (EUR 0.04) per share. - Volatility in quarterly results and between divisions will become more pronounced, but they will balance out at Group-level over the year 2009. Even if the food consumption and demand remain steady, the unpredictable outcome of an economic crisis may reduce volumes in the short run either directly or indirectly through the food chain infrastructure. Nevertheless, the negative impact on result can be neutralised within a few months, and in the long run the reallocation of capacity will open up new opportunities for Raisio. - Raisio's main target in 2009 is to maintain its stabilised position under difficult circumstances. Raisio's volumes are expected to develop moderately in annual terms. The trend in net sales will depend on the price level of crop in 2009. The company's profitability will also develop moderately, and operating result is predicted to account for 4-5% of net sales. Cash flow from operations in the review period is expected to be clearly positive but below the 2008 level. Figures for the comparison period are given in brackets. Key figures, result from continuing operations excluding one-off items -------------------------------------------------------------------------------- | | 10-12 | 10-12 | 7-9/ | 4-6/ | 1-3/ | 2008 | 2007 | | | / | / | 2008 | 2008 | 2008 | | | | | 2008 | 2007 | | | | | | -------------------------------------------------------------------------------- | Net sales, EUR | 127.8 | 109.2 | 134.5 | 122.9 | 118.9 | 504.0 | 421.9 | | million | | | | | | | | -------------------------------------------------------------------------------- | Operating | 5.7 | 1.7 | 7.6 | 6.5 | 4.2 | 24.1 | 9.9 | | result, EUR | | | | | | | | | million | | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 4.5 | 1.6 | 5.6 | 5.3 | 3.5 | 4.8 | 2.3 | -------------------------------------------------------------------------------- | Result before | 5.4 | 0.8 | 7.4 | 6.3 | 4.2 | 23.3 | 8.8 | | taxes, EUR | | | | | | | | | million | | | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.04 | 0.02 | 0.03 | 0.02 | 0.02 | 0.12 | 0.05 | | share (EPS), | | | | | | | | | EUR | | | | | | | | -------------------------------------------------------------------------------- Key figures, balance sheet -------------------------------------------------------------------------------- | | 31.12.20 | 30.9.200 | 30.6.2008 | 31.3.2008 | 31.12.200 | | | 08 | 8 | | | 7 | -------------------------------------------------------------------------------- | Return on | 9.8 | 10.5 | 10.5 | 12.3 | 3.5 | | investment, % | | | | | | -------------------------------------------------------------------------------- | Equity ratio, % | 77.9 | 77.0 | 78.2 | 77.1 | 77.9 | -------------------------------------------------------------------------------- | Gearing, % | -20.8 | -12.5 | -0.3 | -4.5 | -13.1 | -------------------------------------------------------------------------------- | Equity per share, | 1.79 | 1.77 | 1.73 | 1.70 | 1.70 | | EUR | | | | | | -------------------------------------------------------------------------------- CHIEF EXECUTIVE'S REVIEW Matti Rihko, CEO of Raisio: “The improvement in Raisio's profitability was a great achievement under difficult circumstances. Raisio succeeded in reaching its goals to enhance operations and improve profitability positively and quickly, in view of the challenging and continuously changing operating environment. Our predictions that ecology would become increasingly important to consumers and that trade would be affected by volatile grain prices proved to be right, and we were able to focus on these key issues. In addition, Raisio was one of the first European companies and the first in Finland to introduce a carbon footprint label in a product. The adoption of the CO2 label in Elovena oat flakes may yet turn out to be the single most important action in 2008. The year 2009 will also be difficult for the whole food chain and everyone involved in it, despite the defensive nature of the sector. As a pioneer in plant-based, ecological food, and as one of Europe's most innovative grain companies, Raisio is in an extremely good position to answer the new global challenges facing the food chain. OCTOBER-DECEMBER 2008 - Net sales increased in the last quarter by 17% over the comparison period, totalling EUR 127.8 million (EUR 109.2 million). - Operating result was EUR 5.7 million (EUR 1.7 million), accounting for 4.5% of net sales. - All of Raisio's divisions recorded a profitable operating result. - Cash flow from operations was EUR 26.4 million (EUR 1.2 million). NET SALES AND OPERATING RESULT FROM CONTINUING OPERATIONS In October-December, Raisio's net sales increased by 17 per cent over the comparison period and amounted to EUR 127.8 million (EUR 109.2 million). The Food Division reported net sales of EUR 51.3 million (EUR 50.3 million), the Feed & Malt Division EUR 70.8 million (EUR 54.0 million) and the Ingredients Division EUR 10.5 million (EUR 11.6 million). Net sales and operating results of divisions -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 2008 | 2007 | | | 2008 | 2007 | 2008 | 2 | 2 | | | | | | | | 008 | 008 | | | -------------------------------------------------------------------------------- | Net sales, EUR | 127.8 | 109.2 | 134.5 | 122.9 | 118.9 | 504.0 | 421.9 | | million | | | | | | | | -------------------------------------------------------------------------------- | Food | 51.3 | 50.3 | 51.7 | 49.7 | 49.0 | 201.8 | 197.1 | -------------------------------------------------------------------------------- | Feed & Malt | 70.8 | 54.0 | 78.7 | 68.9 | 64.3 | 282.7 | 206.7 | -------------------------------------------------------------------------------- | Ingredients | 10.5 | 11.6 | 11.0 | 10.1 | 12.7 | 44.3 | 44.9 | -------------------------------------------------------------------------------- | Operating | 5.7 | 0.6 | 7.6 | 6.5 | 8.4 | 28.3 | 10.6 | | result, EUR | | | | | | | | | million | | | | | | | | -------------------------------------------------------------------------------- | Food | 2.6 | -2.7 | 1.4 | 0.9 | 4.8 | 9.7 | -11.1 | -------------------------------------------------------------------------------- | Feed & Malt | 2.0 | 1.2 | 4.3 | 4.2 | 1.7 | 12.3 | 14.2 | -------------------------------------------------------------------------------- | Ingredients | 1.8 | 2.4 | 3.1 | 1.7 | 3.3 | 10.0 | 9.5 | -------------------------------------------------------------------------------- | One-off items, | 0.0 | -1.2 | 0.0 | 0.0 | 4.2 | 4.2 | 0.7 | | EUR million | | | | | | | | -------------------------------------------------------------------------------- | Food | 0.0 | -1.6 | 0.0 | 0.0 | 4.2 | 4.2 | -5.3 | -------------------------------------------------------------------------------- | Feed & Malt | 0.0 | 0.5 | 0.0 | 0.0 | 0.0 | 0.0 | 6.0 | -------------------------------------------------------------------------------- | Ingredients | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Operating | 5.7 | 1.7 | 7.6 | 6.5 | 4.2 | 24.1 | 9.9 | | result, | | | | | | | | | excluding | | | | | | | | | one-off items, | | | | | | | | | EUR million | | | | | | | | -------------------------------------------------------------------------------- | Food | 2.6 | -1.1 | 1.4 | 0.9 | 0.6 | 5.5 | -5.8 | -------------------------------------------------------------------------------- | Feed & Malt | 2.0 | 0.7 | 4.3 | 4.2 | 1.7 | 12.3 | 8.2 | -------------------------------------------------------------------------------- | Ingredients | 1.8 | 2.4 | 3.1 | 1.7 | 3.3 | 10.0 | 9.5 | -------------------------------------------------------------------------------- Raisio's operating result in October-December was EUR 5.7 million (EUR 0.6 million) and, excluding one-off items, EUR 5.7 million (EUR 1.7 million). The Food Division's operating result was EUR 2.6 million (EUR -2.7 million) and, excluding one-off items, EUR 2.6 million (EUR -1.1 million). The operating result of the Feed & Malt Division was EUR 2.0 million (EUR 1.2 million), and, excluding one-off items, EUR 2.0 million (EUR 0.7 million), while that of Ingredients was EUR 1.8 million (EUR 2.4 million) and that of other operations EUR -0.9 million (EUR -0.4 million). Depreciation, allocated to other operations in the income statement, totalled EUR 4.7 million (EUR 4.6 million) in October-December. In the last quarter of the previous year, one-off items had a net impact of EUR -1.2 million on the operating result. The fourth-quarter result before tax was EUR 5.4 million (EUR -0.4 million) and, excluding one-off items, EUR 5.4 million (EUR 0.8 million). The Group's net financial items in October-December were EUR -0.3 million (EUR -1.0 million). The fourth-quarter result after tax was EUR 5.9 million (EUR 1.6 million) and, excluding one-off items, EUR 5.9 million (EUR 2.5 million). Earnings per share in October-December were EUR 0.04 (EUR 0.01) and, excluding one-off items, EUR 0.04 (EUR 0.02). Return on investment was 9.8 per cent (3.5%). Research and development expenses in the fourth quarter totalled EUR 1.6 million (EUR 2.1 million), or 1.3 per cent (1.9%) of net sales. Investments were EUR 4.1 million (EUR 10.2 million), or 3.2 per cent (9.3%) of net sales. The biggest single investment concerned the feed factory constructed in Ylivieska. CHANGES IN BUSINESS OPERATIONS AND THE GROUP STRUCTURE Changes are described in greater detail in the Board of Directors' report. APPOINTMENTS IN THE GROUP'S MANAGEMENT TEAM Director of Raisio's grain trade operations, Pasi Lähdetie, M. Sc. (Agriculture and Forestry), has been appointed as Vice President and member of the Group's Management Team as of 1 March 2009. RAISIO PLC Heidi Hirvonen Communications Manager tel. +358 50 567 3060 Further information: Matti Rihko, CEO, tel. +358 400 830 727 Jyrki Paappa, CFO, tel. +358 50 556 6512 A press and analyst event will be arranged on Thursday, 12 February 2009 at 2:30 pm Finnish time in Helsinki. It will be held at the Hotel Scandic Simonkenttä, the Pavilion meeting room on the 8th floor. The address is Simonkatu 9, Helsinki A teleconference in English will be held on 12 February 2009 at 4:30 pm Finnish time, tel. +358 (0)9 8248 5665, PIN code 7997. Raisio plc's annual report will be published during the week 11, and the Annual General Meeting will be held on Thursday, 26 March 2009. The interim report for January-March will be published on 5 May 2009, for January-June on 4 August 2009 and for January-September on 3 November 2009. The financial statements have not been audited. REPORT OF THE BOARD OF DIRECTORS 2008 In 2008, Raisio succeeded in reaching its target to improve profitability, although the overall situation clearly weakened for many food chain players. Thanks to the measures taken, Raisio is now in good shape both financially and operationally. A skilled, competent and motivated personnel has been vital to the turnaround carried out in the company. This change, carried out in two years, has ensured a good level for Raisio's operations, operational efficiency and profitability. The turnaround was carried out faster than was generally believed to be possible. Raisio has good opportunities to develop as a company whose operations lie on an ecologically, ethically and economically sustainable foundation. To further develop the company, Raisio is now examining its businesses to determine which of them promise future growth and a positive cash flow and what sort of measures are needed in order to achieve them in the changes taking place in the food chain. Shifts in the business environment are more of an opportunity than a threat to Raisio. Raisio's future success is based on continuous improvement, concentration and a pioneering approach. The global recession affects different sectors in very different ways. Raisio's businesses are defensive, since basic consumption is stable by nature. At the end of 2008, Raisio's financial and operational performance was in a class of its own compared to many other players, thanks to the company's strong balance sheet. The food industry will face consolidation, which strong companies can take advantage of. Raisio is capable of playing an active role in the consolidation process of the food industry if it opens up interesting opportunities for Raisio's shareholders. RESULT FROM CONTINUING OPERATIONS In 2008, Raisio's net sales increased by 19.5 per cent to EUR 504.0 million (EUR 421.9 million in 2007). The Food Division reported net sales of EUR 201.8 million (EUR 197.1 million), the Feed & Malt Division EUR 282.7 million (EUR 206.7 million) and the Ingredients Division EUR 44.3 million (EUR 44.9 million). The growth in net sales was mainly driven by the rise in raw material prices and the increased volumes in all businesses. The biggest growth was seen in the feed and malt businesses. Net sales from outside Finland represented 40.3 per cent (37.5%) of the total, amounting to EUR 203.1 million (EUR 158.0 million). The Group's operating result in 2008 was EUR 28.3 million (EUR 10.6 million) and, excluding one-off items, EUR 24.1 million (EUR 9.9 million). The Food Division's operating result was EUR 9.7 million (EUR -11.1 million) and, excluding one-off items, EUR 5.5 million (EUR -5.8 million). The operating result of the Feed & Malt Division was EUR 12.3 million (EUR 14.2 million), and, excluding one-off items, EUR 12.3 million (EUR 8.2 million), while that of Ingredients was EUR 10.0 million (EUR 9.5 million) and that of other operations EUR -3.4 million (EUR -2.1 million). Depreciation, allocated to operations in the income statement, totalled EUR 18.1 million (EUR 18.3 million). In the first quarter of 2008, Raisio recognised a one-off income item of EUR 4.2 million in the Food Division from the dissolution of joint ventures with Lantmännen, a Swedish corporation. The year before, Raisio recognised impairments in the Food Division and a reversal of impairment in the fixed assets of the Feed & Malt Division. The impact of one-off items on the Group's operating result in 2007 was EUR 0.7 million. Raisio's pre-tax result was EUR 27.5 million (EUR 9.5 million) and, excluding one-off items, EUR 23.3 million (EUR 8.8 million). The Group's net financial expenses totalled EUR -0.8 million (EUR -0.7 million). Raisio's result after tax was EUR 22.2 million (EUR 8.3 million) and, excluding one-off items, EUR 18.0 million (EUR 8.3 million). Tax for the period was EUR -5.3 million (EUR ‑1.2 million) and, excluding one-off items, EUR -5.3 million (EUR -0.6 million). Earnings per share were EUR 0.14 (EUR 0.05) and, excluding one-off items, EUR 0.12 (EUR 0.05). Return on investment was 9.8 per cent (3.5%). INVESTMENTS The Group's gross investments in 2008 totalled EUR 29.1 million (EUR 31.4 million), or 5.8 per cent (7.5%) of net sales. The Food Division made gross investments of EUR 16.6 million (EUR 7.2 million), Feed & Malt EUR 9.3 million (EUR 16.7 million), Ingredients EUR 1.3 million (EUR 7.5 million) and other operations EUR 1.9 million (EUR 1.6 million). The biggest single investment was the acquisition of a 25% holding in Melia Ltd from Lantmännen. The most significant investments in production were the ones made in the highly efficient Ylivieska feed factory completed in summer 2008 and in the container loading station for malts. BALANCE SHEET AND FINANCIAL POSITION Raisio's balance sheet total was EUR 364.0 million (EUR 360.3 million) and shareholders' equity amounted to EUR 279.4 million (EUR 278.8 million). Equity per share was EUR 1.79 (EUR 1.70) at the end of December. The Group's interest-bearing financial debt at the end of the review period was EUR 19.7 million (EUR 7.2 million). The net interest-bearing financial debt totalled EUR -58.2 million (EUR -36.5 million). The equity ratio at the end of the year was 77.9 per cent (77.9%), and the gearing ratio was -20.8 per cent (‑13.1%). Cash flow from operations before investments was EUR 52.7 million (EUR 15.6 million). At the end of the year, working capital totalled EUR 88.9 million (EUR 100.5 million on 31 December 2007). It was reduced by the decrease in inventories and other non-interest-bearing receivables. Raisio plc paid EUR 6.3 million in dividends in 2008 and used EUR 1.6 million for share repurchases. CONTINUING OPERATIONS Raisio's turnaround took full effect in 2008. The measures were successful, leading to improvements under difficult conditions. This resulted in a notable improvement in profitability, as well as in bigger volumes, enhanced operations and successful launches of new products. As a forerunner in plant-based, ecological nutrition, Raisio is well positioned to meet the new challenges facing the food chain. Food The Food Division changed direction quickly and according to plan at a time when the food industry is facing great difficulties. By renewing its product portfolio and offering in line with consumer needs, by enhancing production and the supply chain and by developing flexible pricing systems, the Food Division increased its net sales and considerably improved profitability compared to the previous year. The net sales of Raisio's Food Division were EUR 201.8 million (EUR 197.1 million). Finland accounted for over 50 per cent of the Division's net sales, while Poland, the second biggest market area, accounted for over 20 per cent. The sales volumes of the main brands increased in Northern Europe and Poland, and operating result was positive. Operations in Russia, the only market area to record losses, were rationalised to improve profitability. In 2008, the changes in Raisio's brand strategy were carried out in retail products. In Northern European operations, the total number of products dropped by 20 per cent from the previous year despite Raisio launching several new products in its market area. In Finland, the company moved from sixteen brands to three strategic brands: Elovena, Keiju and Sunnuntai. The company has strong and trusted brands in the fields of breakfasts and snacks, baking and spreads. The product range was renewed in all market areas in accordance with consumer needs. The Food Division achieved organic growth through the launch of Elovena products in Poland, Estonia and Sweden. The main marketing and sales input in Finland was the introduction of Elovena snack drinks. The drinks have found their way to consumers, and the sales have stabilised at a good level. One of the main events in 2008 was the introduction of a label indicating the carbon dioxide emissions of products. The label was first added to Elovena oat flakes. Raisio will expand the use of CO2 emissions labelling in its retail products. In the Swedish market, Keiju products were replaced with margarines re-launched under the Carlshamn Mejeri company brand. In Finland, Raisio took sole responsibility for the sales of Benecol products. Sales of Benecol products continued to grow in Poland, where Raisio is the market leader in cholesterol-lowering functional margarines with a market share of more than 70 per cent. In Russia, the focus of operations moved to grain products. Key figures for the Food Division -------------------------------------------------------------------------------- | | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 2008 | 2007 | | | 2008 | 2008 | 2 | 200 | | | | | | | 008 | 8 | | | -------------------------------------------------------------------------------- | Net sales, EUR | 51.3 | 51.7 | 49.7 | 49.0 | 201.8 | 197.1 | | million | | | | | | | -------------------------------------------------------------------------------- | Northern Europe, EUR | 38.2 | 36.6 | 34.9 | 35.2 | 144.8 | 148.1 | | million | | | | | | | -------------------------------------------------------------------------------- | Eastern Europe, EUR | 14.7 | 16.5 | 16.0 | 15.5 | 62.7 | 53.9 | | million | | | | | | | -------------------------------------------------------------------------------- | Operating result, | 2.6 | 1.4 | 0.9 | 4.8 | 9.7 | -11.1 | | EUR million | | | | | | | -------------------------------------------------------------------------------- | One-off items, EUR | 0.0 | 0.0 | 0.0 | 4.2 | 4.2 | -5.3 | | million | | | | | | | -------------------------------------------------------------------------------- | Operating result | 2.6 | 1.4 | 0.9 | 0.6 | 5.5 | -5.8 | | excluding one-off | | | | | | | | items, EUR million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 5.1 | 2.7 | 1.8 | 1.2 | 2.7 | -2.9 | -------------------------------------------------------------------------------- | Investments, EUR | 0.4 | 1.0 | 1.4 | 13.8 | 16.6 | 7.2 | | million | | | | | | | -------------------------------------------------------------------------------- | Net assets, EUR | 81.6 | 81.0 | 83.6 | 86.0 | 81.6 | 85.8 | | million | | | | | | | -------------------------------------------------------------------------------- The Food Division's operating result was EUR 9.7 million (EUR -11.1 million) and, excluding one-off items, EUR 5.5 million (EUR -5.8 million), which represents 2.7 per cent of net sales. Operating result benefited especially from the good performance of Polish operations in the second half of the year. The Food Division posted a profitable operating result in every quarter. Factors contributing to the improvement in profitability included the product range renewal in accordance with consumer needs, the enhancement of processes and the consistent development of supply chain management, which improved the reliability of deliveries and reduced waste. The Food Division's operating result includes a one-off item of EUR 4.2 million from the dissolution of joint ventures with Lantmännen. The operating result reported for 2007 includes impairment totalling EUR 5.3 million. In 2009, Raisio's Food Division's targets are profitable growth and increasingly deep, consumer-oriented co-operation with customers. The Division offers innovative products based on consumer needs, which emphasise the promotion of well-being and safety without compromising on flavour. Plant-based, nationally produced nutrition is inexpensive and healthy and less harmful to the environment. Feed & Malt The net sales of the Feed & Malt Division grew considerably in 2008 as a result of the increase in raw material prices. Higher pressing margins in vegetable oils and the good performance development in malt were the main contributors to the Division's improved profitability. In feeds, Raisio strengthened its market position in Finland. The Feed & Malt Division's net sales were up on the previous year by nearly 37 per cent to EUR 282.7 million (EUR 206.7 million). The increase was mainly based on the price increases in feed raw materials and energy, as well as on the growth in feed volumes. Exports to Russia increased by five per cent in terms of volume. Nearly 70 per cent of feed exports consist of fish feeds, while farm feeds account for the rest. The sales volumes of feeds increased and the market position strengthened. Raisio's market share of the feed mixes sold in Finland is some 40 per cent. Competition remained challenging in the market. In Finland, livestock production remained at the same level as the previous year. Raisio boosted co-operation especially with Finnish dairy co-operatives. Direct invoicing rose to more than 50 per cent of all feed invoicing. The highly efficient feed factory in Ylivieska was inaugurated in summer 2008, and production at the Oulu factory was closed down at the end of September. The pelletisation line transferred from Oulu to Ylivieska is up and running. The EUR 20 million factory investment enables around one-tenth of feeds needed in Finland to be produced in Ylivieska, at the heart of Finland's milk-producing region. Raisio's three feed factories are located close to customers and raw material suppliers, which enhances the cost-effectiveness of the logistical chain. Raisio's malting capacity was in full use in 2008. The price of malt reached record figures in early 2008, but quickly turned downward after a good crop. The overall malt market grew slightly, but growth in Europe stabilised. Most of the growth in beer consumption took place in the Far East, Latin America and Africa. In Russia, growth levelled off after rising steeply for several years. The new container loading station enables beer and whisky malt deliveries to the Far East. Key figures for the Feed & Malt division -------------------------------------------------------------------------------- | | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 2008 | 2007 | | | 2008 | 2008 | 2 | 200 | | | | | | | 008 | 8 | | | -------------------------------------------------------------------------------- | Net sales, EUR | 70.8 | 78.7 | 68.9 | 64.3 | 282.7 | 206.7 | | million | | | | | | | -------------------------------------------------------------------------------- | Feed, EUR million | 61.4 | 65.4 | 56.2 | 53.0 | 235.9 | 175.5 | -------------------------------------------------------------------------------- | Malt, EUR million | 9.5 | 12.8 | 11.9 | 9.3 | 43.5 | 30.1 | -------------------------------------------------------------------------------- | Other, EUR million | 0.2 | 0.7 | 1.0 | 2.3 | 4.1 | 1.7 | -------------------------------------------------------------------------------- | Operating result, | 2.0 | 4.3 | 4.2 | 1.7 | 12.3 | 14.2 | | EUR million | | | | | | | -------------------------------------------------------------------------------- | One-off items, EUR | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 6.0 | | million | | | | | | | -------------------------------------------------------------------------------- | Operating result | 2.0 | 4.3 | 4.2 | 1.7 | 12.3 | 8.2 | | excluding one-off | | | | | | | | items, EUR million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 2.8 | 5.5 | 6.1 | 2.6 | 4.3 | 4.0 | -------------------------------------------------------------------------------- | Investments, EUR | 2.8 | 1.7 | 2.6 | 2.3 | 9.3 | 16.7 | | million € | | | | | | | -------------------------------------------------------------------------------- | Net assets, EUR | 81.7 | 100.9 | 122.9 | 104.0 | 81.7 | 86.0 | | million | | | | | | | -------------------------------------------------------------------------------- The Feed & Malt Division's operating result was EUR 12.3 million (EUR 14.2 million) and, excluding one-off items, EUR 12.3 million (EUR 8.2 million). It improved from the previous year thanks to the enhanced pressing margins in oils milling and the good profit development in malt. The operating result reported for 2007 includes a EUR 6.0-million reversal of fixed asset impairment in malt. The target of Raisio's feed business is to be the most cost-effective and highly valued specialist in the field in Finland, as well as a significant player in north-western Russia. Growth in feeds is sought in Finland and partnerships will be deepened with livestock farms and fish farms. The targets in the malt business are to boost partnerships, maintain reaction speed in the changing markets and secure the supply of Finnish malt barley. Grain market The events seen on the grain market in 2008 proved how quickly things can change. Last year's crop was of a record size worldwide and the grain supply grew steeply. The demand for grain decreased in the autumn due to the global economic crisis, and grain prices took a downward turn. The drop levelled off toward the end of the year. Annual volatility in grain supply will be big and prices will continue to fluctuate. The strength of Raisio's grain purchase is that the company is able to use grain in the most suitable way depending on its quality and availability. To ensure the availability and sufficiency of Finnish grain raw material, Raisio actively participates in developing the whole grain chain. The company will continue to develop the fixed-price system it implemented two years ago. Raisio will continue to offer farmers pricing mechanisms and alternatives so that both parties can spread the price risk carried by the crop. To improve the competitiveness of the Finnish food chain, Raisio offers its contract farmers value-added services and sells production inputs. In addition to seeds and crop protection products, the company provides its contract farmers with field fertilizers as a part of its range of production inputs. Ingredients The operating result of the Ingredients Division improved, and profitability remained strong. Sales volumes increased, and the market area expanded into Asia, where the demand for cholesterol-lowering functional foods is on the rise. The solid and substantial scientific evidence of the benefits of stanolester was of vital importance in the strict regulation processes. The net sales of the Ingredients Division were EUR 44.3 million (EUR 44.9 million). In 2008, the market for ingredients based on stanolester developed moderately. Sales in the main European markets, the UK and Poland, increased thanks to the strong brand and efficient marketing activities. Sales decreased in France and Germany. Turkey's long-lasting restriction on advertising had a negative impact on sales development. Raisio took sole responsibility for the sales of Benecol products in Finland and will now concentrate on strengthening its position in the home market. Raisio offers Finland's widest range of cholesterol-lowering functional foods. Asia became an increasingly important market area in 2008. Product launches in Asia gave a further boost to the Benecol brand and to the status of stanolester. Benecol products were introduced in India, Indonesia and Thailand. Obtaining the permits and approvals required for entry into new market areas is a time-consuming process, as is the introduction of Benecol products containing stanolester to consumers and the scientific community. Benecol products are sold in almost 30 countries. The panel on dietetic foods, nutrition and allergies (NDA) of the European Food Safety Authority (EFSA) issued a positive scientific opinion on the health claims of stanolester concerning the reduced risk of disease. In the panel's opinion, the following health claim can be used for Benecol foods: “Stanolesters have been shown to lower blood cholesterol. Lowering the blood cholesterol may reduce the risk of coronary heart disease.” The use of the statement is subject to final approval from the EU Commission. In December, the Ministry of Health of the People's Republic of China gave Raisio a New Resource Food approval to add stanolester to foodstuffs marketed in the country. The approval is one of the first issued by the People's Republic of China after the implementation of the New Resource Food statute at the beginning of 2008. Key figures for the Ingredients Division -------------------------------------------------------------------------------- | | 10-12/ | 7-9/ | 4-6/ | 1-3/ | 2008 | 2007 | | | 2008 | 2008 | 2 | 200 | | | | | | | 008 | 8 | | | -------------------------------------------------------------------------------- | Net sales, EUR | 10.5 | 11.0 | 10.1 | 12.7 | 44.3 | 44.9 | | million | | | | | | | -------------------------------------------------------------------------------- | Operating result, | 1.8 | 3.1 | 1.7 | 3.3 | 10.0 | 9.5 | | EUR million | | | | | | | -------------------------------------------------------------------------------- | One-off items, EUR | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | million | | | | | | | -------------------------------------------------------------------------------- | Operating result | 1.8 | 3.1 | 1.7 | 3.3 | 10.0 | 9.5 | | excluding one-off | | | | | | | | items, EUR million | | | | | | | -------------------------------------------------------------------------------- | % of net sales | 17.1 | 28.5 | 17.4 | 25.9 | 22.5 | 21.2 | -------------------------------------------------------------------------------- | Investments, EUR | 0.3 | 0.1 | 0.2 | 0.7 | 1.3 | 7.5 | | million € | | | | | | | -------------------------------------------------------------------------------- | Net assets, EUR | 38.3 | 42.1 | 40.1 | 43.9 | 38.3 | 46.0 | | million | | | | | | | -------------------------------------------------------------------------------- The operating result of the Ingredients Division was EUR 10.0 million (EUR 9.5 million). It was affected by operational efficiency and volume growth. In view of the nature of the Division, the operating result percentage of 22.5 per cent was on target. Raisio is preparing for expansion into new market areas, especially in Asia and North and South America. It will also extend its partner network and develop new, innovative product applications. Raisio's strength in different market areas lies in its adaptability: it works with local partners to introduce Benecol products suitable for local consumer habits. As new markets open up, the global market is also expected to grow in the long-run. RESEARCH AND DEVELOPMENT Raisio engages in consumer- and customer-oriented research and development based on the idea of promoting health and well-being through nutritional measures. High-quality research and development ensure that the products meet customer and consumer needs, are safe and offer the right quality. Raisio's Food Division offers products based on consumer needs, which emphasise health, the promotion of well-being and safety without compromising on flavour. The development of new ingredients emphasises solid scientific evidence and safety. Research and development in feeds aims to develop feed mixes and feeding solutions that increase the efficiency and profitability of livestock production and ensure the well-being and health of animals. Customers also expect that the properties of feed mixes are environmentally friendly. The Group's research and development expenses in 2008 totalled EUR 5.8 million (EUR 6.4 million), or 1.2 per cent (1.5%) of net sales. In line with its strategy, Raisio focused on research and product development based on the needs of consumers, customers and farm animal products. Research and development expenses in the Food Division totalled EUR 2.4 million (EUR 2.4 million), Feed & Malt EUR 1.0 million (EUR 1.0 million) and Ingredients EUR 2.3 million (EUR 3.0 million). CORPORATE RESPONSIBILITY Raisio is committed to taking responsibility for its operating environment. The target is for the company's operations to stand on an ecologically, ethically and financially solid basis now and in the future. Raisio's corporate responsibility report is included in the annual report. Raisio is not aware of any significant financial environmental risks. GOVERNANCE, MANAGEMENT AND PERSONNEL Raisio's Board of Directors had five members in 2008: Simo Palokangas (Chairman), Michael Ramm-Schmidt (Deputy Chairman), Anssi Aapola, Erkki Haavisto and Satu Lähteenmäki. The Board members are independent of the company and of significant shareholders. The Chairman of Raisio's Supervisory Board is Juha Saura and its Vice Chairman is Holger Falck. On 31 December 2008, Raisio's continuing operations employed 960 people (1,072 in 2007 and 1,200 in 2006). Employees working abroad accounted for 32.3 per cent (31.9%) of the personnel at the end of 2008. The headcount was mainly reduced by the outsourcing of the laboratory and maintenance operations. At the end of the year, the Food Division had 572 employees, the Feed & Malt Division 258 employees, the Ingredients Division 63 employees and Group administration 67 employees. Markku Krutsin, Vice President of the Food Division, Northern Europe, and Jacek Dziekonski, Vice President of the Food Division, Eastern Europe, were appointed to the Management Team in May 2008. Kirsi Swanljung-von Wehrt, Vice President, Legal Affairs, and a member of the Group's management team, resigned from the company in October 2008. In 2008, the wages and fees paid by Raisio totalled EUR 41.8 million (EUR 43.8 million in 2007 and EUR 48.2 million in 2006) excluding other personnel expenses. Personnel-related matters are reported in greater detail in the corporate responsibility report published in conjunction with the annual report. CHANGES IN GROUP STRUCTURE The mill company Melia Ltd became a fully owned subsidiary of Raisio Nutrition Ltd in January 2008, when the Swedish company Lantmännen handed over its 25% holding in Melia. In turn, Raisio handed over its 50% holding in the companies' joint venture GoGreen AB and its holding of approximately 27% in the mill company AS Rigas Dzirnavnieks in Latvia. Melia Ltd's business was transferred to Raisio Nutrition Ltd, while Melia Ltd's machinery, equipment, land and buildings in both Raisio and Nokia were transferred to Raisionkaari Industrial Park Ltd on 31 December 2008. Melia Ltd's personnel transferred to the employment of Raisio Nutrition Ltd under the prevailing terms and benefits of employment. This completed the reorganisation initiated in autumn 2007, leading to Raisio's commercial and production operations in Finland being separated also at company-level. The malting business run by Raisio Nutrition was incorporated into a limited company, Raisio Malt Ltd, through a partial demerger, which took effect on 31 December 2008. Raisio Malt Ltd started operations on 1 January 2009. Raisio Group Holding Oy merged with the parent company, Raisio plc, in November. Following the merger, Raisio Feed Ltd came to be fully and directly owned by Raisio plc. COMPANY SHARES At the end of the review period, Raisio plc held 9,158,500 free shares and 197,808 restricted shares, which were acquired from 2005 to 2008 based on the authorisations given by the Annual General Meetings. The number of free shares accounts for 7.0 per cent of all free shares and the votes they represent, while the corresponding figure for restricted shares is 0.6 per cent. In all, the company shares held by the Group represent 5.7 per cent of the company's share capital and 1.6 per cent of overall votes. The company does not have any shares as collateral and did not have any in the review period. Since all of the shares were purchased in public trading, the company does not know what proportion of them may have been purchased from close associates of the company. Of the shares held by the company, 19,503 restricted shares were repurchased from January to March 2008 on the basis of the authorisation given by the Annual General Meeting in 2007. Based on the authorisation given by the Annual General Meeting in 2008, the company repurchased 1,000,000 free shares and 20,005 restricted shares from September to December 2008. The shares were purchased in public trading at the going price at the time of acquisition. A total of EUR 1,549,541 was paid for free shares and EUR 63,680 for restricted shares repurchased in the review period. The number of free shares repurchased in the review period accounts for 0.8 per cent of all free shares and the votes they represent, while the corresponding percentage for restricted shares is 0.1 per cent. The shares repurchased in the review period account for 0.63 per cent of the share capital and 0.2 per cent of the votes it represents. By two consecutive decisions made by the Board of Directors, a total of 72,000 free shares were assigned in the review period, based on the authorisation given by the Annual General Meeting in 2007. The shares were assigned to recognise and reward good performance in 2007 without payment. Matti Rihko, Raisio's CEO, was assigned 40,000 free shares, and a total of 32,000 free shares were assigned to 16 other individuals. Of these, Markku Krutsin, Leif Liedes, Merja Lumme and Jyrki Paappa belonged to the close associates of the company. The number of assigned shares equals 0.04 per cent of the share capital and 0.01 per cent of the votes it represents. The Board of Directors was authorised by the Annual General Meeting in 2008 to dispose of all company shares. According to the Companies Act, the Board of Directors is also entitled to annul them. None of the shares held by the company were disposed of or annulled in the review period based on the authorisation of the year 2008. Subsidiaries do not and did not hold parent company shares, and they do not and did not hold them as collateral. The Raisio Group Research Foundation holds 150,510 restricted shares, which is 0.44 per cent of the restricted shares and the votes they represent and, correspondingly, 0.09 per cent of the whole share capital and 0.37 per cent of the votes it represents. The Foundation does not and did not hold Raisio plc shares as collateral. A share in Raisio or its subsidiary does not entitle the holder to participate in the Annual General Meeting. BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFITS The parent company's distributable equity was EUR 199,648,743.48 on 31 December 2008. The Board of Directors will propose a dividend of EUR 0.07 per share at the Annual General Meeting on 26 March 2009. The ex-dividend date is 27 March 2009 and the record date is 31 March 2009. The payable date is 7 April 2009. RISKS AND SOURCES OF UNCERTAINTY IN THE NEAR FUTURE Raw material and energy prices will continue to be highly volatile. Volatility management will be essential for Raisio's profitability even in the future. A decrease in the profitability of field cultivation and a reduction in the demand of bioenergy may affect cultivation and lead to changes in inputs. Changes in the extent of cultivated areas affect total crop volumes as well as emphasis between cultivated plants. The long-lasting economic difficulties in the meat chain, especially in pork, and dissatisfaction with future decisions on agricultural subsidies may make the livestock producers less willing to continue production in an uncertain business climate. This, in turn, may reduce the potential demand for feeds. Worldwide centralisation in the brewery business affects the malt markets in Finland and Russia. Global consolidation has only started in the malt business, and the sector is growing narrower for individual companies. As a result of the economic crisis and its rapid impact on biodiesel demand, the price of rapeseed oil has plunged, and oil milling has become unprofitable in the short term. The entire food chain is likely to experience other indirect impacts of this kind. Raisio has considerably reduced the risks in its Russian operations and will continue to enhance risk management. Russian operations, which consist of the feed, malt and food businesses, account for less than ten per cent of Raisio's net sales. The economic crisis has weakened especially the Russian currency, but also the currencies of other East European countries and Sweden, eroding the competitiveness of companies in the Euro zone. A devaluation of neighbouring currencies would change the field in both exports and imports. It is yet too early to predict the size, permanence and effects of the change. Any negative publicity related to sterols might also be linked stanols, although numerous clinical trials have proved the safety and efficiency of the stanolester patented by Raisio. Raisio's stanolester has received a positive opinion from the European Food Safety Authority (EFSA) concerning the health claims of Benecol products. However, during the transition period for the EU's nutritional and health claim regulations, lasting until 2010, products offered by other manufacturers may feature health claims that even exceed their clinical evidence. This might harm the credibility of all functional foods in the consumers' eyes. The taxation on the sales profit from the divestment of Raisio's chemicals business in 2004, totalling EUR 220 million, continues to be handled in court. Ever since the divestment, Raisio has considered the sales profit to be free of tax and has handled it accordingly in its accounting. Expert statements obtained by Raisio support this stance. Most recently, the Helsinki Administrative Court made a resolution, in August 2008, stating that the sales profit was free of tax. However, the Tax Administration's Tax Recipients' Legal Services Unit filed for leave to appeal and lodged an appeal with the Supreme Administrative Court in October 2008. Some Group companies stand as defendants in trials related to the termination of employment. One Group company has pledged to assume liability for any compensation imposed in a trial related to a discontinued operation. The outcomes of these trials are not expected to have any major impact on the Group's financial standing. None of the Group companies are involved in arbitration proceedings. OUTLOOK FOR 2009 Volatility in quarterly results and between divisions will become more pronounced, but they will balance out at Group-level over the year 2009. Even if the food consumption and demand remain steady, the unpredictable outcome of an economic crisis may reduce volumes in the short run either directly or indirectly through the food chain infrastructure. Nevertheless, the negative impact on result can be neutralised within a few months, and in the long run the reallocation of capacity will open up new opportunities for Raisio. Raisio's main target in 2009 is to maintain its stabilised position under difficult circumstances. Raisio's volumes are expected to develop moderately in annual terms. The trend in net sales will depend on the price level of crop in 2009. The company's profitability will also develop moderately, and operating result is predicted to account for 4-5% of net sales. Cash flow from operations in the review period is expected to be clearly positive but below the 2008 level. Raisio, 12 February 2009 Raisio plc Board of Directors CONDENSED FINANCIAL STATEMENTS AND NOTES INCOME STATEMENT (EUR million) -------------------------------------------------------------------------------- | | 10-12/200 | 10-12/200 | 2008 | 2007 | | | 8 | 7 | | | -------------------------------------------------------------------------------- | CONTINUING OPERATIONS: | | | | | -------------------------------------------------------------------------------- | Net sales | 127.8 | 109.2 | 504.0 | 421.9 | -------------------------------------------------------------------------------- | Expenses corresponding to | -107.3 | -93.7 | -421.7 | -352.0 | | products sold | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gross profit | 20.4 | 15.5 | 82.4 | 69.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other operating income and | -14.7 | -14.9 | -54.1 | -59.3 | | expenses, net | | | | | -------------------------------------------------------------------------------- | Operating result | 5.7 | 0.6 | 28.3 | 10.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income | 1.0 | 0.6 | 2.4 | 2.5 | -------------------------------------------------------------------------------- | Financial expenses | -1.3 | -1.6 | -3.2 | -3.2 | -------------------------------------------------------------------------------- | Share of result of associated | 0.0 | 0.0 | 0.1 | -0.3 | | companies and joint ventures | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Result before taxes | 5.4 | -0.4 | 27.5 | 9.5 | -------------------------------------------------------------------------------- | Income tax | 0.4 | 2.0 | -5.3 | -1.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Result for the period from | 5.9 | 1.6 | 22.2 | 8.3 | | the continuing operations | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | DISCONTINUED OPERATIONS: | 0.0 | -1.6 | 0.0 | -7.3 | | Result for the period from | | | | | | discontinued operations | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | RESULT FOR THE PERIOD | 5.9 | 0.0 | 22.2 | 1.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to: | | | | | -------------------------------------------------------------------------------- | Equity holders of the parent | 5.9 | 0.1 | 22.1 | 1.4 | | company | | | | | -------------------------------------------------------------------------------- | Minority interest | 0.0 | -0.1 | 0.1 | -0.4 | -------------------------------------------------------------------------------- | Earnings per share from the | | | | | | profit attributable to equity | | | | | | holders of the parent company | | | | | -------------------------------------------------------------------------------- | Earnings per share from | 0.04 | 0.01 | 0.14 | 0.05 | | continuing operations (EUR) | | | | | -------------------------------------------------------------------------------- | Earnings per share from | 0.00 | -0.01 | 0.00 | -0.05 | | discontinued operations (EUR) | | | | | -------------------------------------------------------------------------------- BALANCE SHEET (EUR million) -------------------------------------------------------------------------------- | | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Intangible assets | 10.0 | 10.9 | -------------------------------------------------------------------------------- | Goodwill | 1.2 | 1.3 | -------------------------------------------------------------------------------- | Property, plant and equipment | 124.2 | 127.9 | -------------------------------------------------------------------------------- | Shares in associated companies and joint | 0.7 | 1.4 | | ventures | | | -------------------------------------------------------------------------------- | Financial assets available for sale | 0.6 | 0.6 | -------------------------------------------------------------------------------- | Receivables | 0.6 | 1.3 | -------------------------------------------------------------------------------- | Deferred tax assets | 7.9 | 11.3 | -------------------------------------------------------------------------------- | Total non-current assets | 145.2 | 154.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Inventories | 73.3 | 91.7 | -------------------------------------------------------------------------------- | Accounts receivables and other receivables | 66.0 | 70.1 | -------------------------------------------------------------------------------- | Financial assets at fair value through | 66.8 | 27.9 | | profit or loss | | | -------------------------------------------------------------------------------- | Cash in hand and at banks | 12.8 | 15.9 | -------------------------------------------------------------------------------- | Total current assets | 218.9 | 205.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total assets | 364.0 | 360.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | Equity attributable to equity holders of | | | | the parent company | | | -------------------------------------------------------------------------------- | Share capital | 27.8 | 27.8 | -------------------------------------------------------------------------------- | Own shares | -19.3 | -17.9 | -------------------------------------------------------------------------------- | Other equity attributable to equity holders | 271.0 | 256.2 | | of the parent company | | | -------------------------------------------------------------------------------- | Equity attributable to equity holders of | 279.4 | 266.1 | | the parent company | | | -------------------------------------------------------------------------------- | Minority interest | 0.0 | 12.7 | -------------------------------------------------------------------------------- | Total equity | 279.4 | 278.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Deferred tax liabilities | 7.4 | 9.1 | -------------------------------------------------------------------------------- | Pension liabilities | 0.2 | 0.2 | -------------------------------------------------------------------------------- | Non-current financial liabilities | 14.3 | 0.4 | -------------------------------------------------------------------------------- | Other non-current liabilities | 0.1 | 0.0 | -------------------------------------------------------------------------------- | Total non-current liabilities | 22.0 | 9.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Accounts payable and other liabilities | 55.6 | 61.8 | -------------------------------------------------------------------------------- | Reserves | 1.1 | 1.9 | -------------------------------------------------------------------------------- | Financial liabilities at fair value through | 0.4 | 1.5 | | profit or loss | | | -------------------------------------------------------------------------------- | Current financial liabilities | 5.5 | 6.8 | -------------------------------------------------------------------------------- | Total current liabilities | 62.6 | 71.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total liabilities | 84.6 | 81.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total equity and liabilities | 364.0 | 360.3 | -------------------------------------------------------------------------------- CHANGES IN GROUP EQUITY (EUR million) -------------------------------------------------------------------------------- | | Shar | Sha | Res | Own | Tran | Retai | Total | Minor | Total | | | e | re | erv | shar | slat | ned | | ity | equit | | | capi | pre | e | es | ion | earni | | inter | y | | | tal | miu | fun | | diff | ngs | | est | | | | | m | d | | eren | | | | | | | | res | | | ces | | | | | | | | erv | | | | | | | | | | | e | | | | | | | | -------------------------------------------------------------------------------- | Equity on | 27.8 | 2.9 | 88. | -11. | -1.2 | 170.4 | 277.1 | 13.3 | 290.4 | | 31.12.2006 | | | 6 | 4 | | | | | | -------------------------------------------------------------------------------- | Translation | - | - | - | - | 0.4 | - | 0.4 | 0.0 | 0.4 | | differences | | | | | | | | | | | , | | | | | | | | | | | transferred | | | | | | | | | | | to the | | | | | | | | | | | income | | | | | | | | | | | statement | | | | | | | | | | | on disposal | | | | | | | | | | | of | | | | | | | | | | | subsidiarie | | | | | | | | | | | s | | | | | | | | | | -------------------------------------------------------------------------------- | Translation | - | - | - | - | -1.5 | - | -1.5 | 0.0 | -1.5 | | differences | | | | | | | | | | | , generated | | | | | | | | | | | in the | | | | | | | | | | | financial | | | | | | | | | | | period | | | | | | | | | | -------------------------------------------------------------------------------- | Other | - | - | - | - | - | 0.0 | 0.0 | - | 0.0 | | changes | | | | | | | | | | -------------------------------------------------------------------------------- | Net income | 0.0 | 0.0 | 0.0 | 0.0 | -1.1 | 0.0 | -1.1 | 0.0 | -1.1 | | recorded | | | | | | | | | | | directly in | | | | | | | | | | | shareholder | | | | | | | | | | | s' equity | | | | | | | | | | -------------------------------------------------------------------------------- | Result for | - | - | - | - | - | 1.4 | 1.4 | -0.4 | 1.1 | | the | | | | | | | | | | | financial | | | | | | | | | | | period | | | | | | | | | | -------------------------------------------------------------------------------- | Net profit | 0.0 | 0.0 | 0.0 | 0.0 | -1.1 | 1.4 | 0.4 | -0.4 | 0.0 | | for the | | | | | | | | | | | financial | | | | | | | | | | | period | | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | - | - | - | - | - | -4.8 | -4.8 | -0.3 | -5.1 | -------------------------------------------------------------------------------- | Repurchase | - | - | - | -6.5 | - | - | -6.5 | - | -6.5 | | of own | | | | | | | | | | | shares | | | | | | | | | | -------------------------------------------------------------------------------- | Total other | 0.0 | 0.0 | 0.0 | -6.5 | 0.0 | -4.8 | -11.3 | -0.3 | -11.6 | | chanes | | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity on | 27.8 | 2.9 | 88. | -17. | -2.3 | 167.0 | 266.1 | 12.7 | 278.8 | | 31.12.2007 | | | 6 | 9 | | | | | | -------------------------------------------------------------------------------- | Translation | - | - | - | - | 0.0 | 0.1 | 0.1 | - | 0.1 | | differences | | | | | | | | | | | , | | | | | | | | | | | transferred | | | | | | | | | | | to the | | | | | | | | | | | income | | | | | | | | | | | statement | | | | | | | | | | | on disposal | | | | | | | | | | | of | | | | | | | | | | | associated | | | | | | | | | | | companies | | | | | | | | | | | and joint | | | | | | | | | | | ventures | | | | | | | | | | -------------------------------------------------------------------------------- | Translation | - | - | - | - | -1.0 | - | -1.0 | - | -1.0 | | differences | | | | | | | | | | | , generated | | | | | | | | | | | in the | | | | | | | | | | | financial | | | | | | | | | | | period | | | | | | | | | | -------------------------------------------------------------------------------- | Other | - | - | - | - | 0.1 | -0.1 | 0.0 | 0.0 | 0.0 | | changes | | | | | | | | | | -------------------------------------------------------------------------------- | Net income | 0.0 | 0.0 | 0.0 | 0.0 | -0.9 | -0.1 | -0.9 | 0.0 | -0.9 | | recorded | | | | | | | | | | | directly in | | | | | | | | | | | shareholder | | | | | | | | | | | s' equity | | | | | | | | | | -------------------------------------------------------------------------------- | Result for | - | - | - | - | - | 22.1 | 22.1 | 0.1 | 22.2 | | the | | | | | | | | | | | financial | | | | | | | | | | | period | | | | | | | | | | -------------------------------------------------------------------------------- | Net profit | 0.0 | 0.0 | 0.0 | 0.0 | -0.9 | 22.1 | 21.2 | 0.1 | 21.3 | | for the | | | | | | | | | | | financial | | | | | | | | | | | period | | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | - | - | - | - | - | -6.3 | -6.3 | - | -6.3 | -------------------------------------------------------------------------------- | Repurchase | - | - | - | -1.6 | - | - | -1.6 | - | -1.6 | | of own | | | | | | | | | | | shares | | | | | | | | | | -------------------------------------------------------------------------------- | Share-based | - | - | - | 0.2 | - | 0.1 | 0.2 | - | 0.2 | | payment | | | | | | | | | | -------------------------------------------------------------------------------- | Squeeze-out | - | - | - | - | - | -0.2 | -0.2 | -12.8 | -13.0 | -------------------------------------------------------------------------------- | Total other | 0.0 | 0.0 | 0.0 | -1.5 | 0.0 | -6.5 | -7.9 | -12.8 | -20.7 | | changes | | | | | | | | | | -------------------------------------------------------------------------------- | Equity on | 27.8 | 2.9 | 88. | -19. | -3.2 | 182.7 | 279.4 | 0.0 | 279.4 | | 31.12.2008 | | | 6 | 3 | | | | | | -------------------------------------------------------------------------------- CASH FLOW STATEMENT (EUR million) -------------------------------------------------------------------------------- | | 2008 | 2007 | -------------------------------------------------------------------------------- | Operating result | 28.3 | 3.3 | -------------------------------------------------------------------------------- | Adjustments to operting result | 16.6 | 22.3 | -------------------------------------------------------------------------------- | Cash flow before change in working capital | 44.8 | 25.6 | -------------------------------------------------------------------------------- | Change in current receivables | -0.7 | 1.9 | -------------------------------------------------------------------------------- | Change in inventories | 18.1 | -12.1 | -------------------------------------------------------------------------------- | Change in current non-interest-bearing | -5.7 | 0.2 | | liabilities | | | -------------------------------------------------------------------------------- | Total change in working capital | 11.7 | -9.9 | -------------------------------------------------------------------------------- | Financial items and taxes | -3.8 | 0.0 | -------------------------------------------------------------------------------- | Cash flow from business operations | 52.7 | 15.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Investments | -17.1 | -30.7 | -------------------------------------------------------------------------------- | Divestment of subsidiaries | 0.1 | 4.1 | -------------------------------------------------------------------------------- | Acquisition of subsidiaries | -8.0 | -0.2 | -------------------------------------------------------------------------------- | Divestment of associated companies | 0.0 | 0.7 | -------------------------------------------------------------------------------- | Proceeds from sale of fixed assets | 1.3 | 2.9 | -------------------------------------------------------------------------------- | Loans granted | -1.9 | -0.1 | -------------------------------------------------------------------------------- | Repayment of loan receivables | 1.8 | 1.3 | -------------------------------------------------------------------------------- | Cash flow from investments | -23.8 | -21.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in non-current loans | 15.7 | -11.7 | -------------------------------------------------------------------------------- | Change in current loans | -3.2 | -5.3 | -------------------------------------------------------------------------------- | Repurchase of own shares | -1.6 | -6.5 | -------------------------------------------------------------------------------- | Dividend paid to equity holders of the | -6.3 | -4.8 | | parent company | | | -------------------------------------------------------------------------------- | Dividend paid to minority interests | 0.0 | -0.3 | -------------------------------------------------------------------------------- | Cash flow from financial operations | 4.5 | -28.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Adjustment to translation difference | 0.5 | -0.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in liquid funds | 33.9 | -35.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Liquid funds at the beginning of the period | 43.6 | 78.8 | -------------------------------------------------------------------------------- | Impact of change in market value on liquid | 0.4 | 0.1 | | funds | | | -------------------------------------------------------------------------------- | Liquid funds at period-end | 77.9 | 43.6 | -------------------------------------------------------------------------------- NOTES TO THE FINANCIAL STATEMENTS This financial statements review has been prepared in compliance with IAS 34 Interim Financial Reporting according to the same accounting principles and calculating methods used in financial statements 2007. In 2008, the Group applied IFRS 2, Share-Based Payment, to its share-based incentive and reward scheme targeting key personnel. The earnings period of the scheme is the year 2008. The Group has adopted the amendments to IAS 39 and IFRS 7 that permit certain financial assets to be reclassified under special circumstances. The adoption does not affect these financial statements. The IFRIC interpretations that took effect on 1 January 2008 have not had an impact on the Group's financial statements. The financial statements is shown in EUR millions. When preparing the financial statements, management must make estimates and assumptions that affect the reported assets and liabilities, income and expenses. Actual figures may differ from these estimates. SEGMENT INFORMATION NET SALES BY SEGMENT (EUR million) -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | 2008 | 2007 | | | 2008 | 2007 | | | -------------------------------------------------------------------------------- | Food | 51.3 | 50.3 | 201.8 | 197.1 | -------------------------------------------------------------------------------- | Feed & Malt | 70.8 | 54.0 | 282.7 | 206.7 | -------------------------------------------------------------------------------- | Ingredients | 10.5 | 11.6 | 44.3 | 44.9 | -------------------------------------------------------------------------------- | Other operations | 0.3 | 0.1 | 1.0 | 0.4 | -------------------------------------------------------------------------------- | Interdivisional net sales | -5.1 | -6.7 | -25.7 | -27.1 | -------------------------------------------------------------------------------- | Total net sales | 127.8 | 109.2 | 504.0 | 421.9 | -------------------------------------------------------------------------------- OPERATING RESULT BY SEGMENT (EUR million) -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | 2008 | 2007 | | | 2008 | 2007 | | | -------------------------------------------------------------------------------- | Food | 2.6 | -2.7 | 9.7 | -11.1 | -------------------------------------------------------------------------------- | Feed & Malt | 2.0 | 1.2 | 12.3 | 14.2 | -------------------------------------------------------------------------------- | Ingredients | 1.8 | 2.4 | 10.0 | 9.5 | -------------------------------------------------------------------------------- | Other operations | -0.9 | -0.4 | -3.4 | -2.1 | -------------------------------------------------------------------------------- | Eliminations | 0.2 | 0.2 | -0.3 | 0.1 | -------------------------------------------------------------------------------- | Total net sales | 5.7 | 0.6 | 28.3 | 10.6 | -------------------------------------------------------------------------------- NET ASSETS BY SEGMENT (EUR million) -------------------------------------------------------------------------------- | | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Food | 81.6 | 85.8 | -------------------------------------------------------------------------------- | Feed & Malt | 81.7 | 86.0 | -------------------------------------------------------------------------------- | Ingredients | 38.3 | 46.0 | -------------------------------------------------------------------------------- | Other operations, discontinued operations and | 77.9 | 60.9 | | unallocated items | | | -------------------------------------------------------------------------------- | Total net assets | 279.4 | 278.8 | -------------------------------------------------------------------------------- INVESTMENTS BY SEGMENT (EUR million) -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | 2008 | 2007 | | | 2008 | 2007 | | | -------------------------------------------------------------------------------- | Food | 0.4 | 1.4 | 16.6 | 7.2 | -------------------------------------------------------------------------------- | Feed & Malt | 2.8 | 6.4 | 9.3 | 16.7 | -------------------------------------------------------------------------------- | Ingredients | 0.3 | 1.8 | 1.3 | 7.5 | -------------------------------------------------------------------------------- | Other operations | 0.6 | 0.6 | 1.9 | 1.6 | -------------------------------------------------------------------------------- | Eliminations | 0.0 | 0.0 | 0.0 | -1.6 | -------------------------------------------------------------------------------- | Total investments | 4.1 | 10.2 | 29.1 | 31.4 | -------------------------------------------------------------------------------- NET SALES BY MARKET AREA (EUR million) -------------------------------------------------------------------------------- | | 10-12/ | 10-12/ | 2008 | 2007 | | | 2008 | 2007 | | | -------------------------------------------------------------------------------- | Finland | 75.0 | 73.7 | 301.0 | 263.9 | -------------------------------------------------------------------------------- | Poland | 10.1 | 8.0 | 45.9 | 38.5 | -------------------------------------------------------------------------------- | Russia | 6.5 | 6.2 | 44.1 | 39.5 | -------------------------------------------------------------------------------- | Other Europe | 34.4 | 20.1 | 106.7 | 74.8 | -------------------------------------------------------------------------------- | ROW | 1.9 | 1.2 | 6.3 | 5.2 | -------------------------------------------------------------------------------- | Total | 127.8 | 109.2 | 504.0 | 421.9 | -------------------------------------------------------------------------------- DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE Discontinued operations The diagnostics business, food potato businesses and Monäs Feed Oy Ab sold in 2007 are treated as discontinued operations in the Group's reporting. -------------------------------------------------------------------------------- | | 2008 | 2007 | -------------------------------------------------------------------------------- | Result for the discontinued operations | | | -------------------------------------------------------------------------------- | Income from ordinary operations | | 19.3 | -------------------------------------------------------------------------------- | Expenses | | -23.7 | -------------------------------------------------------------------------------- | Result before taxes | | -4.5 | -------------------------------------------------------------------------------- | Taxes | | -0.1 | -------------------------------------------------------------------------------- | Result after taxes | | -4.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Result from discontinued operations | | -2.9 | -------------------------------------------------------------------------------- | Taxes | | 0.1 | -------------------------------------------------------------------------------- | Result after taxes | | -2.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Result for the discontinued operations | | -7.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow for the discontinued operations | | | -------------------------------------------------------------------------------- | Cash flow from business operations | | 1.3 | -------------------------------------------------------------------------------- | Cash flow from investments | 0.9 | 5.8 | -------------------------------------------------------------------------------- | Cash flow from financial operations | | -0.1 | -------------------------------------------------------------------------------- | Total cash flow | 0.9 | 7.0 | -------------------------------------------------------------------------------- TANGIBLE ASSETS -------------------------------------------------------------------------------- | | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Acquisition cost at the beginning of the | 430.2 | 450.5 | | period | | | -------------------------------------------------------------------------------- | Conversion differences | -1.8 | -1.4 | -------------------------------------------------------------------------------- | Increase | 14.2 | 29.4 | -------------------------------------------------------------------------------- | Decrease | -25.6 | -48.3 | -------------------------------------------------------------------------------- | Reclassifications between items | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Acquisition cost at period-end | 417.1 | 430.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Accumulated depreciation and write-downs at | 302.3 | 332.8 | | the beginning of the period | | | -------------------------------------------------------------------------------- | Conversion difference | -1.0 | -1.0 | -------------------------------------------------------------------------------- | Decrease and transfers | -24.7 | -42.8 | -------------------------------------------------------------------------------- | Depreciation for the period | 14.9 | 15.1 | -------------------------------------------------------------------------------- | Write-downs | 1.3 | -1.9 | -------------------------------------------------------------------------------- | Accumulated depreciation and write-downs at | 292.8 | 302.3 | | period-end | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Book value at period-end | 124.2 | 127.9 | -------------------------------------------------------------------------------- RESERVES -------------------------------------------------------------------------------- | | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | At the beginning of the period | 1.9 | 5.1 | -------------------------------------------------------------------------------- | Increase in provisions | 0.0 | 0.0 | -------------------------------------------------------------------------------- | Provisions used | -0.8 | -3.3 | -------------------------------------------------------------------------------- | At period-end | 1.1 | 1.9 | -------------------------------------------------------------------------------- BUSINESS ACTIVITIES INVOLVING INSIDERS -------------------------------------------------------------------------------- | | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Sales to associated companies and joint | 13.6 | 12.8 | | ventures | | | -------------------------------------------------------------------------------- | Purchases from associated companies and joint | 0.1 | 3.1 | | ventures | | | -------------------------------------------------------------------------------- | Sales to key employees in management | 1.1 | 0.0 | -------------------------------------------------------------------------------- | Purchases from key employees in management | 0.9 | 0.6 | -------------------------------------------------------------------------------- | Short-term receivables from associated | 1.4 | 2.3 | | companies and joint ventures | | | -------------------------------------------------------------------------------- | Liabilities to associated companies and joint | 0.2 | 0.5 | | ventures | | | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES (EUR million) -------------------------------------------------------------------------------- | | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Assets given for security | | | -------------------------------------------------------------------------------- | For the company | | | -------------------------------------------------------------------------------- | Mortgages on real estate | 0.0 | 0.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Contingent off-balance sheet liabilities | | | -------------------------------------------------------------------------------- | Non-cancelable other leases | | | -------------------------------------------------------------------------------- | Minimum lease payments | 1.8 | 2.5 | -------------------------------------------------------------------------------- | Contingent liabilities for the company | 0.0 | 1.5 | -------------------------------------------------------------------------------- | Contingent liabilities for others | | | -------------------------------------------------------------------------------- | Guarantees | 0.0 | 0.1 | -------------------------------------------------------------------------------- | Other liabilities | 1.7 | 2.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Commitment to investment payments | 0.8 | 2.7 | -------------------------------------------------------------------------------- DERIVATIVE CONTRACTS (EUR million) -------------------------------------------------------------------------------- | | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Nominal values of derivative contracts | | | -------------------------------------------------------------------------------- | Raw material futures | 0.0 | 11.2 | -------------------------------------------------------------------------------- | Currency forward contracts | 28.9 | 18.6 | -------------------------------------------------------------------------------- | Interest rate swaps | 10.0 | - | -------------------------------------------------------------------------------- QUARTERLY PERFORMANCE (EUR million) -------------------------------------------------------------------------------- | | 10-12 | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | / | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 | | | 2008 | | | | | | | | -------------------------------------------------------------------------------- | Net sales by | | | | | | | | | | segment | | | | | | | | | -------------------------------------------------------------------------------- | Food | 51.3 | 51.7 | 49.7 | 49.0 | 50.3 | 48.6 | 48.5 | 49.8 | -------------------------------------------------------------------------------- | Feed & Malt | 70.8 | 78.7 | 68.9 | 64.3 | 54.0 | 59.3 | 53.0 | 40.4 | -------------------------------------------------------------------------------- | Ingredients | 10.5 | 11.0 | 10.1 | 12.7 | 11.6 | 10.2 | 10.7 | 12.5 | -------------------------------------------------------------------------------- | Other | 0.3 | 0.3 | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | | operations | | | | | | | | | -------------------------------------------------------------------------------- | Interdivisional | -5.1 | -7.2 | -6.0 | -7.4 | -6.7 | -8.4 | -6.1 | -5.9 | | net sales | | | | | | | | | -------------------------------------------------------------------------------- | Total net sales | 127.8 | 134. | 122. | 118. | 109.2 | 109.8 | 106.1 | 96.8 | | | | 5 | 9 | 9 | | | | |-------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating | | | | | | | | | | result by | | | | | | | | | | segment | | | | | | | | | -------------------------------------------------------------------------------- | Food | 2.6 | 1.4 | 0.9 | 4.8 | -2.7 | -5.7 | -1.7 | -0.9 | -------------------------------------------------------------------------------- | Feed & Malt | 2.0 | 4.3 | 4.2 | 1.7 | 1.2 | 9.6 | 2.9 | 0.5 | -------------------------------------------------------------------------------- | Ingredients | 1.8 | 3.1 | 1.7 | 3.3 | 2.4 | 2.1 | 2.6 | 2.5 | -------------------------------------------------------------------------------- | Other | -0.9 | -1.0 | -0.7 | -0.8 | -0.4 | -0.4 | -0.5 | -0.8 | | operations | | | | | | | | | -------------------------------------------------------------------------------- | Eliminations | 0.2 | -0.3 | 0.4 | -0.6 | 0.2 | 0.0 | 0.0 | -0.1 | -------------------------------------------------------------------------------- | Total operating | 5.7 | 7.6 | 6.5 | 8.4 | 0.6 | 5.6 | 3.3 | 1.2 | | result | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial | -0.3 | -0.2 | -0.2 | -0.1 | -1.0 | -0.5 | -0.3 | 1.1 | | income and | | | | | | | | | | expenses, net | | | | | | | | | -------------------------------------------------------------------------------- | Share of result | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 | -0.1 | -0.1 | -0.2 | | of associated | | | | | | | | | | companies | | | | | | | | | -------------------------------------------------------------------------------- | Result before | 5.4 | 7.4 | 6.3 | 8.4 | -0.4 | 5.0 | 2.8 | 2.1 | | taxes | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Income tax | 0.4 | -2.1 | -2.5 | -1.1 | 2.0 | -2.1 | -0.8 | -0.4 | -------------------------------------------------------------------------------- | Result for the | 5.9 | 5.3 | 3.8 | 7.3 | 1.6 | 2.9 | 2.1 | 1.7 | | period from | | | | | | | | | | continuing | | | | | | | | | | operations | | | | | | | | | -------------------------------------------------------------------------------- ONE-OFF ITEMS (EUR million) -------------------------------------------------------------------------------- | | 10-12 | 7-9/ | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ | | | / | 2008 | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 | | | 2008 | | | | | | | | -------------------------------------------------------------------------------- | Food | | | | | | | | | -------------------------------------------------------------------------------- | Impairment of | | | | | | -1.3 | | | | goodwill | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | -1.6 | -2.0 | | | | impairments | | | | | | | | | -------------------------------------------------------------------------------- | Other one-off | | | | 4.2 | | -0.3 | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Feed & Malt | | | | | | | | | -------------------------------------------------------------------------------- | The reversal of | | | | | 0.5 | 5.5 | | | | impairment in | | | | | | | | | | the Feed & Malt | | | | | | | | | | business | | | | | | | | | -------------------------------------------------------------------------------- | Impact on | 0.0 | 0.0 | 0.0 | 4.2 | -1.2 | 1.9 | 0.0 | 0.0 | | operating | | | | | | | | | | result | | | | | | | | | -------------------------------------------------------------------------------- | Financial | | | | | | | | | | income and | | | | | | | | | | expenses, net | | | | | | | | | -------------------------------------------------------------------------------- | Share of result | | | | | | | | | | of associated | | | | | | | | | | companies and | | | | | | | | | | joint ventures | | | | | | | | | -------------------------------------------------------------------------------- | Impact on | 0.0 | 0.0 | 0.0 | 4.2 | -1.2 | 1.9 | 0.0 | 0.0 | | result before | | | | | | | | | | taxes | | | | | | | | | -------------------------------------------------------------------------------- KEY INDICATORS -------------------------------------------------------------------------------- | | 31.12.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | Net sales, EURm | 504.0 | 421.9 | -------------------------------------------------------------------------------- | change, % | 19.5 | 4.8 | -------------------------------------------------------------------------------- | Operating result, EURm | 28.3 | 10.6 | -------------------------------------------------------------------------------- | % of net sales | 5.6 | 2.5 | -------------------------------------------------------------------------------- | Result before taxes, EURm | 27.5 | 9.5 | -------------------------------------------------------------------------------- | % of net sales | 5.5 | 2.3 | -------------------------------------------------------------------------------- | Return on equity, ROE, % | 8.0 | 2.9 | -------------------------------------------------------------------------------- | Return on investment, ROI, % | 9.8 | 3.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest-bearing liabilities at period-end, | 19.7 | 7.2 | | EURm | | | -------------------------------------------------------------------------------- | Net interest-bearing financial liabilities | -58.2 | -36.5 | | at period-end, EURm | | | -------------------------------------------------------------------------------- | Equity ratio, % | 77.9 | 77.9 | -------------------------------------------------------------------------------- | Net gearing, % | -20.8 | -13.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gross investments, EURm | 29.1 | 31.4 | -------------------------------------------------------------------------------- | % of net sales | 5.8 | 7.5 | -------------------------------------------------------------------------------- | Depreciation, EURm | 18.1 | 18.3 | -------------------------------------------------------------------------------- | R & D expenses, EURm | 5.8 | 6.4 | -------------------------------------------------------------------------------- | % of net sales | 1.2 | 1.5 | -------------------------------------------------------------------------------- | Average personnel | 1,048 | 1,157 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings/share from continuing operations, | 0.14 | 0.05 | | EUR | | | -------------------------------------------------------------------------------- | Cash flow from operations/share, EUR | 0.34 | 0.10 | -------------------------------------------------------------------------------- | Equity/share, EUR | 1.79 | 1.70 | -------------------------------------------------------------------------------- | Average number of shares during the period, | | | | in 1,000s*) | | | -------------------------------------------------------------------------------- | Free shares | 122,310 | 124,553 | -------------------------------------------------------------------------------- | Restricted shares | 34,294 | 34,462 | -------------------------------------------------------------------------------- | Total | 156,605 | 159,015 | -------------------------------------------------------------------------------- | Average numer of shares at period-end, in | | | | 1,000s*) | | | -------------------------------------------------------------------------------- | Free shares | 121,516 | 122,444 | -------------------------------------------------------------------------------- | Restricted shares | 34,276 | 34,316 | -------------------------------------------------------------------------------- | Total | 155,793 | 156,760 | -------------------------------------------------------------------------------- | Market capitalisation of shares at | | | | period-end, EURm*) | | | -------------------------------------------------------------------------------- | Free shares | 178.6 | 183.7 | -------------------------------------------------------------------------------- | Restricted shares | 56.2 | 52.2 | -------------------------------------------------------------------------------- | Total | 234.8 | 235.8 | -------------------------------------------------------------------------------- *) Number of shares without own shares CALCULATION OF INDICATORS -------------------------------------------------------------------------------- | Return on equity (ROE), % | Result before taxes - income taxes*) | | | ------------------------------------------- x | | | 100 | | | Shareholders' equity (average over the period) | -------------------------------------------------------------------------------- | Return on investment | Result before taxes + financial expenses*) | | (ROI), % | ------------------------------------------- x | | | 100 | | | Shareholders' equity + interest-bearing | | | financial liabilities (average over the period) | -------------------------------------------------------------------------------- | Equity ratio, % | Shareholders' equity | | | ------------------------------------------- x | | | 100 | | | Balance sheet total - advances received | -------------------------------------------------------------------------------- | Net interest-bearing | Interest-bearing financial liabilities - liquid | | financial liabilities | assets and financial assets recorded at fair | | | value in the income statement | -------------------------------------------------------------------------------- | Net gearing, % | Net interest-bearing financial liabilities | | | ----------------------------------------- x 100 | | | Shareholders' equity | -------------------------------------------------------------------------------- | Earnings per share*) | Result for the year of parent company | | | shareholders | | | ------------------------------------------------ | | | Average number of shares for the year, adjusted | | | for share issue | -------------------------------------------------------------------------------- | Cash flow from business | Cash flow from business operations | | operations per share | ------------------------------------------------ | | | Average number of shares for the year, adjusted | | | for share issue | -------------------------------------------------------------------------------- | Shareholders' equity per | Equity of parent company shareholders | | share | ------------------------------------------------ | | | Number of shares at period-end adjusted for | | | share issue | -------------------------------------------------------------------------------- | Market capitalisation | Closing price, adjusted for issue x number of | | | shares without own shares at the end of the | | | period | -------------------------------------------------------------------------------- *)The calculation of key indicators uses continuing operations result
© 2024 Nasdaq, Inc. All Rights Reserved |