Olvi Group achieved the best operating profit in its history. All of
the Group companies also significantly improved their earnings. Olvi
Group's net sales amounted to 170.3 (147.5) million euro, an increase
of 15.5%. Operating profit for the accounting period was 18.5 (13.0)
million euro or 10.9% of net sales. The Group's gross capital
expenditure amounted to 20.9 (17.4) million euro, and its equity to
total assets ratio stood at 49.6 percent (47.9%). The Group's market
position strengthened in all of its geographical operating areas.
OLVI GROUP'S KEY INDICATORS
Change
1-12/2006 1-12/2005 MEUR/EUR Change %
Net sales, MEUR 170.3 147.5 22.8 15.5
Operating profit, 18.5 13.0 5.5 42.6
MEUR
Gross capital 20.9 17.4 3.5 20.1
expenditure, MEUR
Equity to total 49.6 47.9
assets, %
Earnings per share, 1.43 0.95 0.48
EUR
Equity per share, EUR 7.46 6.48 0.98
Gearing, % 47.3 49.6
The calculation of per-share indicators in this financial statements
bulletin takes into account the effect of Olvi plc's April 2006 bonus
issue on the previous years' indicators, which means that the
indicators for 2005 are comparable with those for 2006.
SALES VOLUME, NET SALES AND EARNINGS
Olvi Group's sales in fiscal 2006 amounted to a total of 303.4 (272.0)
million litres. This represents an increase of 31.4 million litres or
11.5 percent on the previous year. The Group's sales from October to
December amounted to 70.0 (64.0) million litres, representing an
increase of 9.3 percent.
The parent company's domestic sales in 2006 amounted to 110.1 (106.4)
million litres. This represents an increase of 3.7 million litres or
3.5 percent. Domestic sales from October to December were on a par
with the previous year.
The sales of Olvi's subsidiaries in the Baltic states in 2006 amounted
to a total of 212.8 (181.7) million litres. This represents an
increase of 31.1 million litres or 17.1 percent on the previous year.
The sales increase in October and November was 6.0 million litres or
14.1 percent on the previous year.
Sales volumes by market area (million litres):
10- 10- 1-12/2006 1-12/2005
12/2006 12/2005
Olvi Group total 70.0 64.0 303.4 272.0
Finland 25.2 25.2 110.1 106.4
Estonia 28.9 26.6 127.8 113.7
Latvia 9.7 6.9 42.7 31.5
Lithuania 9.7 9.0 42.2 36.4
Sales between segments -3.5 -3.7 -19.5 -16.0
Olvi Group's consolidated net sales in 2006 amounted to 170.3 (147.5)
million euro, representing an increase of 22.8 million euro or 15.5
percent on the previous year. The Group's net sales in October to
December increased by 14.7 percent to 39.7 (34.6) million euro.
Domestic net sales increased by 8.1 percent in 2006 and 7.6 percent in
October to December. The total net sales of the Baltic subsidiaries in
2006 amounted to 98.3 (79.2) million euro, representing an increase of
19.1 million euro or 24.1 percent. The Baltic companies' net sales in
October to December increased by 19.0 percent to 22.9 (18.6) million
euro.
Net sales by geographical segments (million euro)
10- 10- 1- 1-
12/2006 12/2005 12/2006 12/2005
Olvi Group total 39.7 34.6 170.3 147.5
Finland 18.6 17.3 79.5 73.5
Estonia 14.0 11.9 61.5 50.8
Latvia 4.4 3.0 18.6 13.4
Lithuania 4.5 3.6 18.2 15.0
Net sales between -1.8 -1.2 -7.5 -5.2
segments
Olvi Group's operating profit for fiscal 2006 stood at 18.5 (13.0)
million euro, or 10.9 (8.8) percent of net sales. Operating profit
increased by 5.5 million euro or 42.6 percent compared to the previous
year.
Operating profit in the fourth quarter of the year amounted to 1.7
(1.3) million euro, representing an increase of 0.4 million euro or
31.4 percent on the previous year.
Operating profit by geographical segments (million euro)
10- 10- 1- 1-
12/2006 12/2005 12/2006 12/2005
Olvi Group total 1.7 1.3 18.5 13.0
Finland 0.4 0.9 7.1 4.7
Estonia 1.2 0.8 9.3 7.7
Latvia -0.1 -0.3 0.8 0.2
Lithuania 0.2 -0.6 1.2 -0.9
Operating profit between 0.0 0.5 0.1 1.3
segments
Parent company Olvi plc
Total sales of the parent company Olvi plc in 2006 amounted to 110.1
(106.4) million litres, which is 3.7 million litres or 3.5 percent
more than a year earlier. Beers accounted for 63.6 (61.5) percent of
total sales. The sales of beers increased by 7.1 percent during the
year, while the sales of ciders increased by 10.5 percent. The sales
volume of soft drinks and long drinks also increased on the previous
year. The sales of the TEHO energy drink almost doubled, while the
sales of mineral waters declined on the previous year but relative
profitability improved.
Olvi plc's total sales from October to December were on a par with the
previous year's level.
Tax-free sales and freighted work for the Baltic subsidiaries amounted
to a total of 5.3 (5.0) million litres in 2006, which is 4.8 percent
of total sales.
According to a study by A.C. Nielsen, Olvi plc's market share in the
main product groups (beers, ciders and mineral waters) in grocery
shops was 18.3 percent in October-December.
The parent company's net sales for fiscal 2006 amounted to 79.5 (73.5)
million euro, representing an increase of 5.9 million euro or 8.1
percent. Net sales in the fourth quarter of the year amounted to 18.6
(17.2) million euro, representing an increase of 1.3 million euro or
7.6 percent on the corresponding period last year.
Olvi plc's operating profit for fiscal 2006 was 7.1 (4.7) million euro
or 8.9 percent of net sales. The operating profit improved by 2.3
million euro or 49.6 percent. The increase in operating profit was
attributable to a more balanced distribution of sales between product
groups, improved logistics and production efficiency and better
control of costs. Furthermore, the warm and dry summer and successful
new products contributed to the increased operating profit.
The parent company's operating profit in October-December 2006 was 0.4
(0.9) million euro. The packaging reform concerning the entire
industry resulted in substantial increases in the scrapping of the
current package inventory. Furthermore, the company made a clearly
larger profit-sharing contribution to the personnel fund compared to
previous years. Marketing efforts were clearly bigger than in the
previous year.
AS A. Le Coq
The Estonian subsidiary AS A. Le Coq Tartu Õlletehas changed its name
in late 2006. The new company name, AS A. Le Coq, was recorded in the
trade register on 18 December 2006.
The total sales of the Estonian subsidiary AS A. Le Coq in 2006
increased to 127.8 (113.7) million litres. This represents an increase
of 14.1 million litres or 12.4 percent. Sales volumes increased in all
product groups but the greatest proportional growth was seen in long
drinks, where the increase was almost 36 percent. The increase in
sales of mineral waters was 23 percent, while ciders and juices
improved by some 20 percent. The sales of beers increased by 3.5
percent in 2006.
AS A. Le Coq's market shares in 2006 have been 37 percent of the beer
market on average, approximately 45 to 55 percent of the cider and
long drink market, as well as approximately 30 to 36 percent of the
soft drink, mineral water and juice markets.
Exports and sales to other Olvi Group companies in 2006 amounted to a
total of 19.1 (16.5) million litres.
AS A. Le Coq's total sales in October-December 2006 amounted to 28.9
(26.5) million litres, representing an increase of 9.1 percent on the
previous year.
The net sales of the Estonian subsidiary in 2006 amounted to 61.5
(50.8) million euro, representing an increase of 10.7 million euro or
21.2 percent. The October-December net sales increased by 17.9 percent
to 14.0 (11.9) million euro.
AS A. Le Coq's operating profit in 2006 amounted to 9.3 (7.7) million
euro or 15.1 percent of net sales. This represents an increase of 1.6
million euro or 20.4 percent. AS A. Le Coq's operating profit in
October-December increased to 1.2 million euro, representing an
increase of 45.5 percent on the previous year.
A/S Cesu Alus
The total sales of A/S Cesu Alus operating in Latvia amounted to 42.7
(31.5) million litres in 2006, representing an increase of 11.2
million litres or 35.6 percent. The sales volumes increased
substantially in all product groups. The sales of ciders tripled, the
sales of soft drinks almost doubled and the sales of long drinks
increased by more than 43 percent. Beers represented 72 percent of A/S
Cesu Alus's total sales. The sales of beers increased by 23.5 percent
in 2006. The company's market share in the Latvian beer market
increased to approximately 20 percent.
A/S Cesu Alus's sales in October-December amounted to 9.7 million
litres, representing an increase of 41.8 percent on the previous year.
A/S Cesu Alus's net sales in 2006 amounted to 18.6 (13.4) million
euro, representing an increase of 5.2 million euro or 38.6 percent on
the previous year. The October-December net sales increased to 4.4
(3.0) million euro, an increase of 45.9 percent.
The Latvian subsidiary's operating profit in 2006 amounted to 0.9
(0.2) million euro or 4.6 percent of net sales. The operating profit
improved by 0.7 million euro on the previous year. A/S Cesu Alus's
operating result from October to December was negative but improved by
0.2 million euro on the previous year.
AB Ragutis
The total sales of AB Ragutis operating in Lithuania amounted to 42.2
(36.4) million litres in 2006. This represents an increase of 5.8
million litres or 15.9 percent. Sales improved in all main product
groups but the greatest proportional increases were seen in ciders, 73
percent, and long drinks, 71 percent. The sales of functional
beverages and well-being beverages doubled, and the sales of juices
improved by one half compared to the previous year. Beers accounted
for 69.4 percent of the total sales of AB Ragutis. The sales of beers
increased by 3.3 percent in 2006. The company has a market share of 11
percent in the Lithuanian beer market, approximately 50 percent in the
cider market and 22 percent in the long drink market.
AB Ragutis's sales in October-December amounted to 9.7 million litres,
representing an increase of 7.4 percent on the previous year.
AB Ragutis's net sales in 2006 amounted to 18.2 (15.0) million euro,
representing an increase of 3.2 million euro or 21.2 percent. The
October-December net sales increased by 23.0 percent to 4.5 (3.6)
million euro.
The Lithuanian subsidiary's operating profit in 2006 amounted to 1.2 (-
0.9) million euro or 6.8 percent of net sales. The operating profit
increased by 2.1 million euro or 242.1 percent compared to the
previous year. AB Ragutis's operating profit in October-December
amounted to 0.2 (-0.6) million euro, representing an increase of 0.8
million euro or 127.7 percent on the previous year.
Factors contributing to the favourable sales and earnings development
of the Baltic companies included expansion and reform of the product
and package ranges, as well as efficient utilisation of increased
capacity.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of the year 2006 was 156.0
(140.4) million euro. Shareholders' equity increased by 10.1 million
euro on the previous year, standing at 77.4 million euro. Equity per
share at the end of December 2006 stood at 7.46 (6.48) euro. The
equity ratio improved from 47.9 percent to 49.6 percent.
The amount of interest-bearing liabilities at year-end was 38.7 (40.2)
million euro, including current liabilities of 11.6 million euro. The
amount of interest-free liabilities was 38.5 (31.3) million euro.
Olvi Group's gross capital expenditure in 2006 amounted to 20.9 (17.4)
million euro. The parent company Olvi plc accounted for 1.5 million
euro and the subsidiaries in the Baltic states for 19.4 million euro
of the total.
The Group's largest investment in 2006 was the construction of a
logistics centre in Tartu, shared by the Estonian brewery and juice
production plant. Other major investments included extensions to the
tank cellars at the Latvian and Lithuanian breweries, as well as
extensions to the storehouse and yeast cellar at the Latvian brewery.
The holding company AS A. Le Coq Group acquired minority interests in
AB Ragutis and A/S Cesu Alus for 1.9 million euro. Olvi plc's largest
investments concerned the can filling line. In addition to these
investments, AS A. Le Coq Group increased the share capitals of AB
Ragutis and A/S Cesu Alus by a total of 10.9 million euro.
PRODUCT DEVELOPMENT, NEW PRODUCTS AND CO-OPERATION AGREEMENTS
Research and development includes projects to design and develop new
products, packages, processes and production methods, as well as
further development of existing products and packages. The research
and development costs, 0.2 million euro in 2006, have been recognised
as expenses.
During 2006 the parent company Olvi plc introduced new products and
flavours to the market, for example in the product groups of ciders,
flavoured mineral waters, soft drinks and energy drinks. Olvi plc
introduced the first coffee-flavoured cider FIZZ Cappuccino, the Alko
retail range was expanded with strong ciders having an alcohol content
of 5.4 percent by volume, and sweet apple and pear ciders were
introduced to grocery shops at the turn of the year 2007. The mineral
water product group was supplemented by KevytOlo products sweetened
with fructose.
In May 2006, Olvi plc signed an agency agreement concerning the
Finnish market with Heineken Plc. The agreement covers the import,
sales and distribution of Heineken beers in Finland. The co-operation
with Heineken now covers the entire operating area of Olvi Group.
In early August 2006, Olvi plc and Sony BMG Music Entertainment
Finland signed a licence agreement concerning LORDI COLA and LORDI
COLA light soft drinks. Olvi plc has an exclusive right to produce,
sell, market and distribute LORDI COLA and LORDI COLA light beverages
in the Finnish market.
In December 2006, Olvi plc signed a licence production agreement with
Disney Consumer Products (Nordic) A/S concerning the production,
marketing and sales of Donald Duck soft drinks in Finland. The Donald
Duck Raspberry soft drink has been available retail since the
beginning of 2007.
The Baltic companies have also invested substantial effort in the
development of new flavours and product packages for ciders, mineral
waters, soft drinks and beers. The Safari Long Drink beverage was
successfully launched in Estonia and Latvia. AS A. Le Coq's juices
under the Aura brand were ranked as the highest-quality food and
beverage products in the Estonian market. The Aura Mineral water
containing a multitude of micronutrients was introduced to the mineral
water product group, while the sports beverages group saw the
introduction of Arctic Sport Slim Line. The share of beverages
promoting well-being is on a clear upward trend within the soft drink,
mineral water and juice product groups.
Furthermore, AS A. Le Coq introduced new products such as the top-
fermented English Ale.
In Latvia, strong efforts were made in the introduction of new long
drinks to the market. In Lithuania, AB Ragutis has invested
substantial effort in cider competence and the production of cider.
BUSINESS RISKS
The aim of Olvi Group's risk management is to identify the threats and
opportunities associated with the Group's business operations that
affect the realisation of business strategies and targets, to prevent
the realisation of risks and to prepare for controlled operations in
exceptional situations.
Normal business risks are inherently associated with the brewing and
soft drinks industry. The Group is not willing to take any additional
risks that would endanger the continuity of operations, be
uncontrollable or essentially hamper the company's business.
Operational risks refer to the risk of loss attributable to reasons
such as inadequate or failed internal processes, personnel, systems or
external factors. Operational risks are managed by actions such as
developing internal processing, ensuring sufficient guidance, training
and orientation, as well as ensuring sufficient internal controls and
internal audit. Insurance policies are used to prepare for unexpected
events having an adverse effect on business. External factors are
prepared for by careful planning and active monitoring.
The objective of managing the Group's financing risks is to minimise
any adverse and unexpected impacts of changes in the financial markets
on the Group's earnings and to ensure sufficient liquidity. The
primary type of financing risk is interest rate risk. The Group has
diversified its borrowing between fixed- and variable-rate loans and
uses interest rate swaps to reduce interest rate risk if required by
the market conditions.
The Group does not have any significant concentrations of credit risk
on receivables because its customer base is wide and geographically
diversified.
ENVIRONMENTAL PROTECTION PRINCIPLES
Olvi Group observes environmental, health and safety considerations in
its operations. We comply with the principles of sustainable
development. Environmental protection in the parent company Olvi plc
is based on the environmental policy of the Finnish brewing and soft
drink industry, as well as the corporate values that include
responsibility for the environment. Olvi Group cares for the
environment by acting on its own initiative and by complying with laws
and recommendations associated with its business, as well as policies
prepared by co-operation bodies of the brewing industry. Olvi plc's
operations are in compliance with the environmental permit granted by
the North Savo Regional Environment Centre on 30 September 2003, which
is valid until 2014.
Olvi Group companies have not been involved in any legal or
administrative proceedings related to environmental issues, and the
company is not aware of any environmental risks that would have a
significant effect on the Group's financial position.
PERSONNEL
The Group's average number of personnel during the period under review
was 1,126 (1,074), 346 (333) of them in Finland, 393 (379) in Estonia,
195 (180) in Latvia and 192 (182) in Lithuania. The average number of
personnel increased by 52 employees or 4.8 percent on the previous
year. At the end of fiscal 2006, Olvi Group companies employed a total
of 1,123 people.
In Finland, Olvi plc established permanent posts for 31 fixed-term
employees during 2006.
The entire personnel in Finland belongs to the scope of performance-
based bonuses, and the company has a functional personnel fund. The
company paid a total of 1.5 million euro in performance bonuses to
employees and profit-sharing contribution to the personnel fund,
representing more than 10 percent of the annual income of the
personnel.
Olvi plc's Board of Directors has decided on a new share-based
incentive scheme for Olvi Group's key personnel. The share-based bonus
scheme is a part of the incentive and commitment scheme for the
members of Olvi Group companies' Management Groups.
The scheme includes two vesting periods, the first one extending from
1 January 2006 to 31 December 2007 and the second one from 1 January
2008 to 31 December 2010. The bonuses will be paid in 2008 and 2011
partially in Olvi plc Series A shares and partially in cash. The
proportion payable in cash covers the taxes and other statutory fees
arising from the share-based bonus. The shares are associated with a
ban on transfer valid for two years from receipt. The potential
return on the scheme for the vesting period from 1 January 2006 to 31
December 2007 is based on Olvi Group's net sales and operating profit
percentage. The target group of the scheme includes 21 key employees
in the vesting period 2006-2007.
On the basis of this incentive scheme, a total of 32,000 Olvi plc
Series A shares may become payable in 2008 for the first vesting
period if the targets are achieved in full.
CORPORATE GOVERNANCE
Olvi plc has corporate governance guidelines approved by the Board of
Directors that are in compliance with the recommendations of HEX, the
Central Chamber of Commerce and the Confederation of Finnish
Industries. The company maintains a public and company-specific
insider register, as well as project-specific insider registers for
individual projects. Public insiders comprise the members of the Board
of Directors and Management Group, auditors and their closely related
parties.
CHANGES IN CORPORATE STRUCTURE
AS A. Le Coq Group increased its share of holding in the Latvian
company A/S Cesu Alus and the Lithuanian company AB Ragutis during
2006. At the end of 2006, the holding company's share of A/S Cesu
Alus was 97.89 (96.89) percent and its share of AB Ragutis was 99.56
(83.07) percent.
In Estonia, the juice company AS Ösel Foods merged with AS A. Le Coq
Tartu Õlletehas on 2 January 2006.
MANAGEMENT AND AUDITORS
Olvi plc's Annual General Meeting held on 4 April 2006 elected the
following members to the Board of Directors: Heikki Hortling, M.Sc.
(Econ), Iisalmi, Esa Lager, Chief Financial Officer, LL.M., M.Sc.
(Econ), Kauniainen, Hannele Ranta-Lassila, Professor, LL.D., M.Sc.
(Econ), Helsinki, Lauri Ratia, Managing Director, M.Sc. (Eng),
Helsinki, and Heikki Sinnemaa, LL.M., Member of the Bar, Iisalmi. All
of them have been in office during the fiscal year. Heikki Hortling
has served as Chairman of the Board, while Esa Lager has served as
Vice Chairman.
The company's ordinary auditor during the fiscal year has been Pekka
Loikkanen, Authorised Public Accountant, Kuopio, and
PricewaterhouseCoopers Oy, Authorised Public Accountants, have served
as deputy auditors with Silja Komulainen, Authorised Public
Accountant, Sotkamo, as the responsible auditor.
Lasse Aho, M.Soc.Sc., has served as Olvi plc's Managing Director.
SHARE CAPITAL
By virtue of a decision made by the General Meeting of Shareholders on
4 April 2006, Olvi plc increased its share capital through a bonus
issue in April 2006. The bonus issue comprised 933,064 new Series K
shares and 4,256,638 new Series A shares. The increase in share
capital, 10,379,404 euro, was recorded in the Trade Register on 7
April 2006. The new shares entitle to full dividend for the accounting
period that started on 1 January 2006, and to all other rights
associated with the share since the registration of the increase in
share capital in the Trade Register.
The effects of the bonus issue on Olvi Group's figures for the
previous year has been taken into account in order to preserve the
comparability of the figures.
Olvi plc's registered share capital on 31 December 2006 is 20,758,808
euro and the total number of shares is 10,379,404. There are
1,866,128 Series K shares and 8,513,276 Series A shares. The nominal
value of both Series K and Series A shares is 2.00 euro. Each Series K
share carries 20 votes at General Meetings, while each Series A share
carries one vote. The shares entitle to equal dividend.
On 4 April 2006 Olvi plc's General Meeting of Shareholders decided to
amend Olvi plc's Articles of Association to the effect that the
company's minimum capital is 15,000,000 euro and the maximum capital
is 60,000,000 euro, the minimum number of Series K shares is 1,500,000
and their maximum number is 6,000,000, the maximum number of Series A
shares is 24,000,000 and the aggregate minimum number of Series K and
Series A shares is 7,500,000.
Olvi plc's Articles of Association include a redemption clause
concerning Series K shares.
OLVI PLC SHARES
A total of 3,052,970 Olvi plc Series A shares changed hands from
January to December 2006 on the Helsinki Stock Exchange, totalling
60.5 million euro in trading volume. The traded shares represented
35.9 percent of the total number of Series A shares. The average share
price was 14.70 euro, with a low of 10.50 euro quoted in January and a
high of 20.19 euro quoted in December. The year's last trading price
was 20.00 euro.
Olvi plc's market capitalisation increased by 89.3 percent during 2006
and stood at 207.3 (109.5) million euro at the end of 2006, excluding
treasury shares held by the Group.
Olvi plc's Annual General Meeting on 4 April 2006 decided to annul the
stock options 2002 granted by the General Meeting of Shareholders on 4
April 2002. There were 50,000 stock options 2002A and 50,000 stock
options 2002B. All of the stock options 2002 were in the possession of
Olvi plc's subsidiary Olvin Juomaa Oy.
TREASURY SHARES
Olvi plc's Annual General Meeting held on 4 April 2006 revoked all
existing unused authorisations to acquire own shares and authorised
the Board of Directors to acquire a maximum of 245,000 Olvi A shares
using distributable funds within one year of the Annual General
Meeting. The Board of Directors may also propose that any shares
acquired on the company's own account be cancelled by reducing the
share capital. The authorisation allows the Board of Directors to
acquire the company's own shares for use as consideration in case of
any upcoming corporate acquisitions, for the funding of investments,
for the incentive and commitment scheme for key personnel or for
cancellation.
The Annual General Meeting decided to revoke all existing unused
authorisations for the transfer of own shares and authorise the Board
of Directors to decide on the transfer of any A shares acquired on the
company's own account within one year of the Annual General Meeting.
The authorisation grants the Board of Directors with the power to
decide on the transfer price and to whom and in what order the shares
held by the company shall be transferred.
On the basis of the authorisation granted by the General Meeting of
Shareholders, Olvi plc's Board of Directors decided to acquire a total
of 16,000 Olvi plc Series A shares during 2006. The treasury shares
were acquired through public trading on the Helsinki Stock Exchange at
the current market price at the time of acquisition. 4,000 of the
company's own Series A shares were acquired between 1 June and 14 June
2006 at an average price of 13.48 euro per share. The total
consideration paid for the shares was 53,927.99 euro. 12,000 of the
company's own Series A shares were acquired between 29 November and 15
December 2006 at an average price of 19.68 euro per share. The total
consideration paid for the shares was 236,176.52 euro. The total
consideration paid for treasury shares in 2006 was 290,104.51 euro.
The acquired Series A shares constitute 0.15 percent of the share
capital and 0.03 percent of the aggregate number of votes. The
acquired shares represent 0.19 percent of all Series A shares and
associated votes.
The Board of Directors has not exercised the authorisation granted by
the General Meeting of Shareholders to transfer the company's own
Series A shares between January and December 2006, which means that
all of the treasury shares acquired are in the company's possession.
SHAREHOLDERS
At the end of the accounting period, Olvi plc had a total of 5,149
(4,314) shareholders, 82.0 (77.8) percent of whom were Finnish (share
of votes 93.8%). Nominee-registered holdings accounted for 12.6 (15.1)
percent of the number of shares and 2.9 (3.4) percent of the votes,
while registered foreign holdings accounted for 5.4 (7.1) percent of
the shares and 3.4 (3.4) percent of the votes.
LARGEST SHAREHOLDERS ON 31 DECEMBER 2006
Series K Series Total % Votes %
A
1 Olvi Foundation 1,181,952 354,408 1,536,3 14.8 239,934,4 52.3
60 48 5
2 Hortling Heikki 450,712 85,380 536,092 5.16 9,099,620 19.8
Wilhelm 5
3 The Heirs of 93,552 12,624 106,176 1.02 1,883,664 4.11
Hortling Kalle
Einari
4 Hortling Timo 82,912 17,592 100,504 0.97 1,675,832 3.66
Einari
5 Hortling-Rinne 51,144 1,050 52,194 0.5 1,023,930 2.23
Marit
6 Ilmarinen Mutual 518,748 518,748 5 518,748 1.13
Pension Insurance Company
7 Evli-Select mutual fund 224,400 224,400 2.16 224,400 0.49
8 Oy Autocarrera 220,750 220,750 2.13 220,750 0.48
Ab
9 Veritas Pension 208,000 208,000 2 208,000 0.45
Insurance Company Ltd.
10 Odin 178,760 178,760 1.72 178,760 0.39
Forvaltnings As
MANAGEMENT'S INTERESTS
The members of the Board of Directors and the Managing Director of
Olvi plc hold a total of 450,712 Series K shares and 102,580 Series A
shares on 31 December 2006, which represent 5.3 percent of the total
number of shares and 19.9 percent of the votes.
The company's management does not hold any warrants or options.
OUTLOOK
Olvi Group aims to strengthen its market position in all business
areas while ensuring the efficient utilisation of the substantial
investments made to increase the capacity of the Baltic subsidiaries
in particular. Another crucial objective is to ensure continuous
improvement of the entire Olvi Group's profitability. In Finland, the
company is preparing for new tax legislation concerning packages
across the entire brewing and beverage industry that will enter into
force on 1 January 2008, as well as changes arising from the increased
use of single-use packages.
We estimate Olvi Group's net sales in 2007 to increase on the previous
year and the operating profit to be on a par with 2006 or slightly
higher.
BOARD OF DIRECTORS' PROPOSAL FOR THE DISTRIBUTION OF PROFIT
Olvi plc continues to pursue an active and earnings-based dividend
policy. The aim is to distribute at least 40 percent of the annual
earnings per share as dividend to the shareholders.
At the end of 2006, the parent company Olvi plc had 44.0 (41.5)
million euro of distributable funds, of which profit for the period
accounted for 7.2 million euro.
The company's Board of Directors will propose to the Annual General
Meeting that a dividend of 0.65 euro shall be paid for 2006 on each
Series K and Series A share, representing 45.5 percent of the Olvi
Group's earnings per share. The proposed dividend payment totals 6.7
million euro. The proposal calls for the payment of dividends in April
2007.
In accordance with the Annual General Meeting's decision, a dividend
of 0.425 euro on each Series K and Series A share, totalling 4.4
million euro, was paid for 2005. The date of dividend payment was 18
April 2006.
The financial statements from 1 January to 31 December 2006 have been
prepared in accordance with International Financial Reporting
Standards approved for use within the EU. The preparation has been
carried out in compliance with the IAS and IFRS standards, as well as
their official interpretations, valid on 31 December 2006.
The information in this financial statement bulletin is unaudited.
An annual summary of disclosures made by the company in 2006 can be
found at www.olvi.fi under “Financial reports”.
FINANCIAL REPORTS IN 2007
Olvi Group's financial statements and Board of Directors' report for
the year 2006 will be published on the company's Web site on 27 March
2007. The Annual General Meeting of the shareholders of Olvi plc will
be held in Iisalmi, Finland, on 3 April 2007.
The following interim reports will be released in 2007:
- Interim Report 1Q/2007, January to March, on 26 April 2007
- Interim Report 2Q/2007, January to June, on 16 August 2007
- Interim Report 3Q/2007, January to September, on 25 October 2007
Further information:
Lasse Aho, Managing Director
Phone +358 17 838 5200 or +358 400 203 600
OLVI PLC
Board of Directors
APPENDICES
- Balance sheet, Appendix 1
- Income statement, Appendix 2
- Changes in consolidated shareholders' equity, Appendix 3
- Cash flow statement, Appendix 4
- Number of shares, personnel and contingent liabilities,
Appendix 5
DISTRIBUTION
Helsinki Stock Exchange
Key media
www.olvi.fi
OLVI GROUP APPENDIX 1
BALANCE SHEET
EUR 1,000
31 Dec 31 Dec
2006 2005
ASSETS
Non-current assets
Tangible assets 83,474 73,679
Goodwill 10,675 8,706
Other intangible assets 1,640 2,439
Investments available for sale 253 253
Other non-current assets available 311 94
for sale
Loans receivable 44 44
Deferred tax receivables 65 47
Total non-current assets 96,462 85,262
Current assets
Inventories 25,173 21,424
Accounts receivable and other 32,256 27,273
receivables
Liquid assets 2,102 6,437
Total current assets 59,531 55,134
TOTAL ASSETS 155,993 140,396
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity held by parent company shareholders
Share capital 20,759 10,379
Other reserves 1,128 11,507
Treasury shares -290 0
Accrued earnings 40,847 35,568
Net profit for the period 14,822 9,808
77,266 67,262
Minority interest 101 0
Total shareholders' equity 77,367 67,262
Non-current liabilities
Interest-bearing liabilities 27,108 33,359
Interest-free liabilities 490
Deferred tax liabilities 1,413 1,559
Current liabilities
Interest-bearing liabilities 11,562 6,872
Accounts payable and other 38,053 31,344
liabilities
Total liabilities 78,626 73,134
TOTAL SHAREHOLDERS' EQUITY AND 155,993 140,396
LIABILITIES
OLVI GROUP APPENDIX 2
INCOME STATEMENT
EUR 1,000
10- 10- 1-12/2006 1-12/2005
12/2006 12/2005
Net sales 39,724 34,635 170,319 147,519
Other operating income 209 52 590 519
Operating expenses -35,462 -29,327 -141,577 -123,269
Depreciation and -2,721 -4,029 -10,851 -11,807
impairment
Operating profit 1,750 1,331 18,481 12,962
Financial income 46 65 188 159
Financial expenses -363 -222 -1,432 -1,885
Profit before tax 1,433 1,174 17,237 11,236
Taxes -277 -314 -2,413 -1,688
Net profit for the period 1,156 860 14,824 9,548
Distribution
- parent company 1,166 949 14,822 9,808
shareholders
- minority -10 -89 2 -260
KEY RATIOS
Ratios calculated from the profit belonging to parent company
shareholders:
- earnings per share, euro 1.43 0.95
- earnings per share adjusted for dilution
from warrants, euro 1.42 0.95
OLVI GROUP APPENDIX 3
CASH FLOW STATEMENT
EUR 1,000
1-12/2006 1-12/2005
Net profit for the period 14,824 9,548
Adjustments to profit for the 14,852 14,649
period
Change in net working capital -3,320 1,772
Interest paid -1,529 -1,732
Interest received 188 159
Taxes paid -1,080 -1,763
Cash flow from operations (A) 23,935 22,633
Investments -22,064 -13,988
Disposals of fixed assets 145 122
Cash flow from investments -21,919 -13,866
(B)
Increase of share capital 0 1,106
Withdrawals of loans 7,000 4,000
Repayments of loans -8,650 -8,613
Acquisition of treasury 290 0
shares
Dividends paid -4,411 -3,259
Cash flow from financing (C) -6,351 -6,766
Increase (+)/decrease (-) in cash flows
(A+B+C) -4 335 2,001
Liquid assets 1 January 6 437 4,436
Liquid assets 31 December 2 102 6,437
Change in liquid assets -4 355 2,001
OLVI GROUP APPENDIX 4
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
EUR 1,000 A B C D E F G H I
Shareholders' 10,028 10,482 127 0 143 0 38,827 260 59,867
equity 1 Jan 2005
Share 351 755 1,106
subscription
Change in 0
translation
difference
Payment of -3,259 -3,259
dividends
Net profit for 9,808 9,808
the period
Change in minority -260 -260
interest
Shareholders' 10,379 11,237 127 0 143 0 45,376 0 67,262
equity 31 Dec
2005
EUR 1,000 A B C D E F G H I
Shareholders' 10,379 11,237 127 0 143 0 45,376 0 67,262
equity 1 Jan 2006
Bonus issue 10,379 -10,379 0
Effect of increases in the share
capital
of subsidiaries on -145 145 0
minority interest
Change in minority interest 46 -46 0
Acquisition of treasury -290 -290
shares
Change in -18 -18
translation
difference
Payment of -4,411 -4,411
dividends
Net profit for 14,824 14,824
the period
Share of profit belonging to -2 2 0
the minority
Shareholders' 20,758 858 127 -290 143 -18 55,688 101 77,367
equity 31 Dec
2006
A = Share capital
B = Share premium
account
C = Legal reserve
D = Treasury shares
reserve
E = Other
reserves
F = Translation
differences
G = Retained
earnings
H = Minority
interest
I = Total
OLVI GROUP APPENDIX 5
1 Jan -31 Dec 1 Jan -31 Dec
2006*) 2005**)
NUMBER OF SHARES
- at end of period 10,363,404 10,379,404
- average 10,376,311 10,292,806
- average number of shares
adjusted
for dilution from
warrants 10,413,050 10,378,178
*)
**)
AVERAGE NUMBERS OF GROUP 2006 2005
PERSONNEL
Finland 346 333
Estonia 393 379
Latvia 195 180
Lithuania 192 182
Olvi Group total 1,126 1,074
CONTINGENT LIABILITIES
EUR 1,000 2006 2005
Pledges and contingent
liabilities
- for own commitments 765 1,135
- for others 1,055 1,278
Leasing liabilities:
- due within one year 1,041 1,240
- due within 1 to 5 years 1,019 1,471
- due in more than 5 years 5
Total leasing liabilities 2,065 2,711
Package liabilities 4,734 5,442
Other liabilities 1,980 2,016
Debts for which mortgages have been given as
collateral
Loans from financial
institutions
- for own commitments 2,318 3,864
- for others 1,527 4,125