ATRIA GROUP PLC'S INTERIM REPORT 1 JANUARY-30 JUNE 2007
ATRIA GROUP'S SALES AND EARNINGS STILL SHOWING STRONG GROWTH
- Group turnover was EUR 622.3 million (EUR 523.3 million), growth 18.9 per
cent
- Operating profit (EBIT) amounted to EUR 62.0 million (EUR 11.0 million)
- Comparable operating profit was EUR 27.8 million (EUR 11.0 million)
- Earnings per share amounted to EUR 1.97 (EUR 0.25)
Atria Group:
Q2/ Q2/ H1/ H1/
EUR million 2007 2006 2007 2006 2006
-----------------------------------------------------------------------------
Turnover 346.2 278.3 622.3 523.3 1.103.3
Operating profit 50.6 6.5 62.0 11.0 41.5
Comparable operating profit 16.4 6.5 27.8 11.0 33.5
Comparable operating profit % 4.7 2.3 4.5 2.1 3.0
Profit before tax 45.6 5.2 53.3 8.9 34.6
Earnings per share 1.70 0.12 1.97 0.25 1.15
Review Q2/2007
Atria Group's turnover and operating profit for the second quarter were
significantly better than during the corresponding period last year (growth of
turnover 24.4 per cent and growth of comparable operating profit 152.3 per
cent). The review period operating profit amounted to EUR 62.0 million, EUR
34.8 million of which consisted of profit from the sale of shares in Svensk
Snabbmat för Storkök AB. A share issue was launched during the review period,
in which a total of 5,175,000 new A series shares were issued.
In Finland, Atria's turnover for the second quarter increased by 7.3 per cent
compared to the same period last year, amounting to EUR 188.8 million (EUR
176.0 million). The comparable operating profit totalled EUR 9.5 million
(EUR 6.8 million).
In Scandinavia (Sweden and Denmark), turnover for the second quarter amounted
to EUR 140.9 million (EUR 82.1 million). The operating profit
totalled EUR 6.1 million (EUR 2.0 million). The operations of AB Sardus,
which was consolidated into Atria Group in April, is included in the Atria
Scandinavia (Sweden and Denmark) segment. In April Atria sold its shareholding
in Svensk Snabbmat för Storkök AB and the company's operations are included in
the figures for Atria Scandinavia until 31 May 2007.
In Russia, the second quarter focused on stabilizing operations and improving
profitability. Earnings were clearly better than during the corresponding
period last year. The second quarter operating profit showed clear growth
compared to the same period last year, amounting to EUR 1.5 million (loss of
EUR 1.8 million).
Earnings were unsatisfactory in the Baltic region. Turnover remained at the
previous year's level and the comparable operating loss was EUR 0.7 million
(loss of EUR 0.5 million). The Group's Baltic operations will be centralized
to Estonia, while the plant in Lithuania will be closed by the end of August.
Atria Finland
Q2/ Q2/ H1/ H1/
EUR million 2007 2006 2007 2006 2006
---------------------------------------------------------------------------
Turnover 188.8 176.0 358.3 332.8 686.1
Operating profit 9.5 6.8 18.9 11.3 34.0
Comparable operating profit 9.5 6.8 18.9 11.3 32.2
Comparable operating profit % 5.0 3.9 5.3 3.4 4.7
The development has remained excellent in Atria's food product market - the
total market growth, measured based on the value of sales, has been 6.0 per
cent. All product groups in the industry have increased in value compared to
last year, but the growth in poultry products (19.8 per cent) has been
particularly strong.
The Atria brand has strengthened its position in the food product market. The
total growth of the Atria brand since the beginning of the year was 12.8 per
cent (industry growth 6.0 per cent), measured based on the value of sales,
during the first six months of the year. The development of products produced
under the Atria brand has been stronger than the growth of the market in all
product groups (Nielsen, weeks 1-25/2007). The summer season has gone
according to expectations and the growth rate of products produced by Atria
has increased since the beginning of the year. Atria's supplier share after
six months amounts to 30.0 per cent (29.5 per cent 1-25/2006), which means
that Atria has consolidated its market leadership during the first half of
the year.
As a consequence of the success of both basic and new products, Atria's market
share has grown in all product groups except for sausages. Atria's market share
of new products in the industry exceeded 30 per cent (May-June). The lack of
growth in the sausage product group was due to the tightened price competition
in the grill sausage group, which Atria did not take part in during the summer
season. Despite this, Atria is the clear market leader in the grill sausage
group after the first summer months (May-June).
The new logistics centre has been brought into use according to plan and owing
to the new facilities all deliveries during early summer and around midsummer
were successfully completed.
Atria Scandinavia
Q2/ Q2/ H1/ H1/
EUR million 2007 2006 2007 2006 2006
--------------------------------------------------------------------------
Turnover 140.9 82.1 233.2 152.6 336.4
Operating profit 40.9 2.0 42.7 2.3 15.1
Operating profit from
operations 6.1 2.0 7.9 2.3 7.4
Operating profit from
operations % 4.3 2.4 3.4 1.5 2.2
Turnover increased by 71.6 per cent and operating profit showed significant
improvement compared to the corresponding period last year. Profitability
developed positively during the second quarter due to both business growth and
price increases implemented at the end of last year. The growth in turnover was
mainly due to the consolidation of AB Sardus' operations into Atria from the
beginning of the second quarter. Sardus' turnover amounted to EUR 56.2 million
in the second quarter. Svensk Snabbmat för Storkök AB's turnover for the period
April-May amounted to EUR 38.1 million and its operating profit was EUR 1.3
million. The integration of AB Sardus caused expenses amounting to EUR 1.0
million in the second quarter. These expenses are included in the operating
profit from operations.
In Sweden, Atria is currently striving to develop operations in several areas.
During the review period Atria launched a completely new selection of Sibylla
sausages to the retail trade.
During the review period a decision was made to improve the efficiency of
production by investing in automation for the Sköllersta meat product plant.
The arrangement will affect 70 employees.
In April Atria sold its share of the Group's Swedish subsidiary Svensk Snabbmat
för Storkök AB to Euro Cater A/S. Snabbmat is a local HoReCa wholesale outlet,
in which Atria held 57.2 per cent of the shares. Atria recorded a tax-free
profit of EUR 34.8 million from the deal. Snabbmat is included in the figures
for Atria Scandinavia until 31 May 2007.
The operations of Sardus were consolidated into Atria Group on 2 April 2007 and
the company's figures are included in the Atria Scandinavia segment. AB Sardus
comprises 11 plants in Sweden and 2 plants in Denmark, which have been divided
up into five business areas: Sardus Chark & Deli (liver pate, cold cuts and
convenience food), 3-Stjernet (cold cuts in Denmark), Falbygdens Ost (refining
and marketing of speciality cheese), Sardus Lätta Måltider (sandwiches and
salads) and Sardus Foodpartner (frozen foods for institutional kitchens).
The business areas Sardus Chark & Deli, Foodpartner and 3-Stjernet in
particular increased their sales and improved their cost structure during the
review period. Sardus Lätta Måltider showed improved earnings compared to the
corresponding period last year, but the figures were still in the red.
The integration of Sardus with Atria's operations is progressing according to
plan and will be completed in August.
Atria Russia
Q2/ Q2/ H1/ H1/
EUR million 2007 2006 2007 2006 2006
-------------------------------------------------------------------------
Turnover 17.1 18.3 33.1 33.7 74.1
Operating profit 1.5 -1.8 2.7 -1.6 -2.7
Comparable operating profit 1.5 -1.8 2.7 -1.6 -2.7
Comparable operating profit % 8.8 -9.8 8.2 -4.7 -3.6
In Russia, the second quarter focused on consolidating operations, improving
profitability and carrying out geographic expansion. During May the plant in
central St. Petersburg was closed down and production was moved to Sinyavino,
located some 40 kilometres outside the city. The Pit-Product brand
image was updated and sales operations were initiated in Moscow.
Atria is the clear market leader in the so-called modern retail trade in the
St. Petersburg economic area. The market share grew and exceeded 26 per cent at
the beginning of the year (Nielsen). The launch of a new type of cold cut
packaging was a success and during the summer season a new range of grill
sausages were also introduced. The price increases effective in May and the
completed cost saving measures contributed to the improved earnings.
The new plant and logistics centre (EUR 70 million) construction project in
Gorelovo has progressed according to plan.
Atria Baltic
Q2/ Q2/ H1/ H1/
EUR million 2007 2006 2007 2006 2006
-------------------------------------------------------------------------
Turnover 7.5 8.1 14.2 15.0 30.5
Operating profit -1.3 -0.5 -2.3 -1.0 -4.9
Comparable operating profit -0.7 -0.5 -1.7 -1.0 -3.4
Comparable operating profit % -9.3 -6.2 -12.0 -6.7 -11.1
In Baltic Countries, earnings did not reach the level of the corresponding
period last year due to reorganisation of operations.
Atria decided to centralise the production operations of the Baltic business
unit in the Valga factory in Estonia during the review period. Operations at
the production plant in Vilnius will cease and the plant will be closed down by
31 August 2007.
Atria's operations in Lithuania are unprofitable and the market share is too
small (approximately 3 per cent). In connection with the shutdown, 139
employees were given notice at the Lithuanian factory. The process of selling
the factory property in Vilnius has been initiated. The effect of the shutdown
on earnings is approximately EUR 2 million. EUR 0.6 million of this is
included in the figures for the second quarter.
Human Resources
Atria Group's personnel numbered approximately 5,908 during the review period
(5,816).
MSc (Econ.) Tomas Back was appointed CFO of Atria Group Plc and he assumed his
duties on 1 August 2007.
Christer Åberg was appointed General Manager of AB Sardus effective 1 July
2007. Christer Åberg also acts as General Manager of Atria AB and Group Vice
President of the Atria Scandinavia business area.
Investments
The Nurmo logistics centre investment project progressed to the implementation
stage during the review period. The plant operates in full capacity during the
autumn of 2007. At the end of June the new facility operated at approximately
30 per cent capacity, which ensured the success of the summer season
deliveries. No new large-scale investments have been initiated in Finland
during the review period.
The construction of a new production plant and logistics centre is under way in
the Gorelovo region of St. Petersburg. The new plant will be completed by the
end of 2008. The value of the investment is approximately EUR 70 million.
In Estonia, an investment programme valued at approximately EUR 8 million was
initiated at the beginning of the year, including investments in primary
production and automation of the Valga production plant.
Gross investments during the second quarter totalled EUR 99.6 million. EUR 77.4
million of the investments comprised the integration of Sardus into Atria
Group.
Financing
Atria launched a share issue during the review period, in which a total of
5,175,000 new A series shares were issued. Approximately 75 per cent of the
issued shares were allocated to Finnish investors and 25 per cent to foreign
investors. The subscription price was EUR 23 per share.
Upon registration of the new shares, Atria's share capital amounted to EUR
48,055,137.60, divided into 19,063,747 A series shares and 9,203,981 KII series
shares. The total net assets acquired in Atria's share issue amounted to
approximately EUR 115 million.
Financing was also balanced with a bond loan of EUR 40 million in the domestic
market.
Top 10 major shareholders
1 January 2007 30 June 2007
No of shares A series KII series Tot. % A series KII series Tot. %
-------------------------------------------------------------------------------
Name
1. Lihakunta 2,352,232 4,020,200 27.59 3,221,797 4,020,200 25.62
2. Itikka 1,301,801 4,914,281 26.92 2,301,801 4,914,281 25.53
Co-operative
3. Odin Norden 1,427,100 6.18 1,694,200 5.99
4. Skandinaviska 1,238,006 5.36 1,535,185 5.43
Enskilda Banken
5. Nordea Bank 254,932 1.10 770,722 2.73
Finland plc
6. Österbottens Kött 380,038 269,500 2.81 480,038 269,500 2.65
7. Odin Förvaltnings 480,400 2.08 732,700 2.59
AS
8. OP-Suomi Arvo 548,300 2.37 523,300 1.85
9. OKO Bank plc 25,100 0.11 319,440 1.13
10. Public pension 236,500 1.02 281,500 1.00
insurance company Veritas
1 January 2007 30 June 2007
Votes A series KII series Tot. % A series KII series Tot. %
-------------------------------------------------------------------------------
Name
1. Itikka 1,301,801 49,142,810 47.62 2,301,801 49,142,810 46.30
Co-operative
2. Lihakunta 2,352,232 40,202,000 40.17 3,221,797 40,202,000 39.08
3. Österbottens 380,038 2,695,000 2.90 480,038 2,695,000 2.86
Kött
4. Odin Norden 1,427,100 1.35 1,694,200 1.52
5. Skandinaviska 1,238,006 1.17 1,535,185 1.38
Enskilda Banken
6. Nordea Bank 254,932 0.24 770,722 0.69
Finland plc
7. Odin 480,400 0.45 732,700 0.66
Förvaltnings AS
8. OP-Suomi Arvo 548,300 0.52 523,300 0.47
9. OKO Bank plc 25,100 0.02 319,440 0.29
10 Public pension 236,500 0.22 281,500 0.25
insurance company Veritas
At the beginning of the year the Group had a total of 7,700 shareholders. On 30
June 2007 the number of shareholders was 9,624.
Notification of changes in shareholding according to the Securities Markets Act
According to a notification on 11 May 2007, the total shareholding of Julius
Baer Investment Management LLC and Julius Baer International Equity Fund
increased to 5.35 per cent of the share capital and 1.17 per cent of the votes.
The Board's valid issue authorisations
The AGM authorised the Board of Directors to decide on increasing the company's
share capital by means of one or more subscription issues, so that the maximum
number of the company's A series shares available for subscription should not
exceed a total of 10,000,000 shares. The nominal value of one A series share is
EUR 1.70.
The AGM authorised the Board of Directors to decide on one or more share
capital increases in which the share capital can be increased by a maximum of
EUR 850,000. The AGM set the validity period of these authorisations to a
maximum of five years, starting from the authorisation decision.
The share issue authorisation given to the Board of Directors applies to both a
cash share issue and a bonus issue. The share issue may also be a private
offering, if there is a strong financial justification for it concerning the
benefit for the company or, in case of a directed bonus issue, a particularly
strong financial justification concerning the benefit for the company and all
its shareholders.
The authorisation for a bonus issue can be mainly used when executing the share
ownership plan of the senior management. The Board of Directors was given
authorisation to decide on all the conditions of the share issues, including
who is entitled to subscription and the subscription price.
This authorisation will be in effect for five years from the authorisation
decision. A total of 5,175,000 authorised A series shares have been used.
Future prospects
Finland:
Sales growth is expected to continue also in the third quarter. We estimate
that Atria Finland's profit in the third quarter will be somewhat better
than that of the corresponding period last year.
Scandinavia:
The integration of Sardus with Atria will be completed before the end of
August. The profitability of the unprofitable unit Lätta Måltider will improve
due to the earlier initiated efficiency improvement programme.
Some costs due to the integration of Sardus will also be included in the
figures for the third quarter. We estimate that Atria Scandinavia's profit in
the third quarter will be better than that of the corresponding period last
year.
Russia:
Turnover is expected to increase towards the end of the year as deliveries to
Moscow increase and sales operations are initiated in areas outside St.
Petersburg and Moscow. Due to the geographic expansion, the marketing costs for
the rest of the year will increase considerably. We estimate that the profit in
the third quarter of 2007 in the Russian market will be positive and clearly
better than that of the third quarter of 2006.
Baltic region:
The measures to improve efficiency in the Baltic region continue. The non-
recurring costs due to the shutdown of the Lithuanian unit have been included
in the figures for the second quarter and no significant additional costs or
depreciations are expected during the latter half of the year. We estimate that
the profit in the third quarter of 2007 in the Baltic market will be better
than that of the third quarter of 2006.
Atria Group's full year 2007 turnover is expected to increase and operating
profit is estimated to be clearly stronger than last year.
Corporate Governance
Our Corporate Governance Code, any exceptions to them and the associated
personnel data are published on our website www.atria.fi.
The Board of Directors of Atria Group Plc has decided to adopt a share-based
incentive programme for Atria Group's key personnel. The programme will
comprise three one-year accrual periods, i.e. calendar years 2007, 2008 and
2009. Payments will be made in 2008, 2009 and 2010, partly in the form of
company A series shares and partly as cash payments. The cash payments will
cover any taxes or similar costs caused by the incentives. The shares may not
be transferred for a period of two years from the end of the accrual period.
Any return from the programme for the accrual period 2007 will be based on the
Group's EBIT percentage and return on capital employed (ROCE). The share
incentives to be paid for 2007 amount to no more than 100,100 of Atria Group
Plc's A series shares.
Election of the Board members and Chairmen of Atria Group Plc
The AGM decided to re-elect the following retiring members of the Supervisory
Board: Mika Asunmaa, Lassi-Antti Haarala, Juhani Herrala, Heikki Panula and
Ahti-Pekka Vornanen. Sinikka Ouramo (Raahe) and Teuvo Mutanen (Polvijärvi) were
elected as new members.
In its organisation meeting following the annual general meeting, Atria Group
Plc's Supervisory Board elected retiring members Timo Komulainen, Runar
Lillandt and Leena Saarinen. Ahti-Pekka Vornanen was appointed as a Chairman
of the Supervisory Board and Esa Kaarto as a Vice-Chairman. Martti Selin
was appointed as a Chairman of the Board and Timo Komulainen as a Vice-
Chairman. Atria Group Plc's Board of Directors now has the following
membership:
Chairman Martti Selin, Vice-Chairman Timo Komulainen, members Tuomo Heikkilä,
Runar Lillandt, Leena Saarinen, Matti Tikkakoski and Ilkka Yliluoma.
Restrictions on trading by insiders
In its meeting on 27 June 2007 the Board has decided that the following insider
trading restrictions will apply:
The period during which the company's insiders may not trade company shares is
14 days before the publication of interim reports and financial statements. The
restriction on trading also applies to parties under the guardianship of
insiders and their controlled corporations as defined in Chapter 1, Section 5
of the Securities Markets Act.
KEY INDICATORS
mill. EUR H1/07 H1/06 2006
Equity/share, € 16.11 12.13 13.28
Interest-bearing
liabilities 349.3 242.0 244.2
Interest-bearing
receivables 48.1 48.4 44.6
Equity ratio, % 45.8 42.9 42.8
Gross investments 242.0 37.8 89.0
Gross investments
of turnover, % 38.9 7.2 8.1
Average personnel 5 908 5 816 5 740
Principles applied in preparing the interim report
This interim report has been prepared in accordance with the IAS 34 Interim
Financial Reporting standard. The company has applied the same principles in
preparing this interim report as in preparing the 2006 annual financial
statements. This interim report is unaudited.
ATRIA GROUP PLC
CONSOLIDATED BALANCE SHEET
Assets
mill. EUR 30-6-07 30-6-06 31-12-06
Non-current assets
Property, plant
and equipment 432.6 347.2 362.8
Goodwill 149.1 52.3 57.7
Other intangible assets 70.3 22.9 33.3
Loan assets and
other receivables 7.3 6.1 6.9
Investments 8.0 6.7 6.3
Total 667.3 435.2 467.0
Current assets
Inventories 94.4 62.0 63.4
Trade and
other receivables 191.0 168.0 165.8
Cash in hand
and at bank 45.4 9.7 35.4
Total 330.8 239.7 264.6
Total assets 998.1 674.9 731.6
Equity and liabilities
mill. EUR 30-6-07 30-6-06 31-12-06
Equity
Shareholders' equity 455.4 269.3 306.6
Minority interest 2.0 20.2 5.8
Equity, total 457.4 289.5 312.4
Non-current liabilities
Interest-bearing
liabilities 280.7 126.8 165.4
Deferred tax liabilities 44.9 23.0 26.9
Pension obligations 0.3 0.3 0.3
Total 325.9 150.1 192.6
Current liabilities
Interest-bearing
liabilities 68.6 115.2 78.8
Trade and
other payables 146.2 120.1 147.8
Total 214.8 235.3 226.6
Liabilities, total 540.7 385.4 419.2
Total equity and
liabilities 998.1 674.9 731.6
CONSOLIDATED INCOME STATEMENT
mill. EUR Q2/07 Q2/06 H1/07 H1/06 2006
Turnover 346.2 278.3 622.3 523.3 1 103.3
Expenses -284.4 -263.1 -538.6 -495.0 -1 024.0
Depreciations -11.2 -8.7 -21.7 -17.3 -37.8
Operating profit 50.6 6.5 62.0 11.0 41.5
* % of turnover 14.6 2.3 10.0 2.1 3.8
Income from associates 0.3 0.1 0.7 0.4
Financial income and
expenses -5.0 -1.6 -8.8 -2.8 -7.3
Profit before tax 45.6 5.2 53.3 8.9 34.6
* % of turnover 13.2 1.9 8.6 1.7 3.1
Income taxes -3.3 -2.4 -5.5 -3.3 -8.6
Profit for the period 42.3 2.8 47.8 5.6 26.0
* % of turnover 12.2 1.0 7.7 1.1 2.4
Profit distribution for
the accounting period:
To parent company
shareholders 41.8 2.6 47.1 5.4 25.1
To minority shares 0.5 0.2 0.7 0.2 0.9
Total 42.3 2.8 47.8 5.6 26.0
Basic earnings/share, € 1.70 0.12 1.97 0.25 1.15
Diluted
earnings/share, € 1.70 0.12 1.97 0.25 1.15
CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY
mill. EUR
Equity belonging to the owners of the parent company Mino Share-
rity holders'
Share Share Other Trans- Retained Total share equity
Capital premium reserve lation earnings in total
diff.
Shareholders'
equity 1-1-2006 35.8 104.4 -0.9 115.5 254.8 20.2 275.0
Translation differences 0.6 0.6 -0.1 0.5
Profit for the period 5.6 5.6 0.1 5.7
Distribution
of dividends -12.6 -12.6 -12.6
Share issue 1.9 19.0 20.9 20.9
Shareholders'
equity 30-6-2006 37.7 123.4 -0.3 108.5 269.3 20.2 289.5
Shareholders'
equity 1-1-2007 39.3 138.5 0.7 128.1 306.6 5.8 312.4
Translation differences -1.1 -1.1 -0.1 -1,2
Other changes -4.4 -4.4
Profit for the period 47.1 47.1 0.7 47.8
Distribution
of dividends -13.7 -13.7 -13.7
Share issue 8.8 110.2 -2.5 116.5 116.5
Shareholders'
equity 30-6-2007 48.1 138.5 110.2 -0.4 159.0 455.4 2.0 457.4
GROUP CASH FLOW STATEMENT
mill. EUR H1/07 H1/06 2006
Cash flow from operating activities
Operating activities 19.2 -4.4 62.2
Financial items
and taxes -20.1 -5.7 -14.5
Cash flow from operating activities,
total -0.9 -10.1 47.7
Cash flow from investing activities
Tangible and
intangible assets -40.0 -37.4 -63.5
Investments 1.6 -3.9 -2.1
Sold shares in subsidiaries 33.0 10.7
Bought shares in subsidiaries -123.7 -16.1
Cash flow from investing activities,
total -129.1 -41.3 -71.0
Cash flow from financing activities
Cash share issue 116.6 20.9 20.9
Loans drawn down 254.5 48.4 99.7
Loans repaid -217.7 -13.1 -66.0
Dividends paid -13.7 -12.5 -13.0
Cash flow from financing,
total 139.7 43.7 41.6
Change in liquid funds 9.7 -7.7 18.3
SEGMENT-SPECIFIC INFORMATION
GEOGRAPHICAL
mill. EUR Q2/07 Q2/06 H1/07 H1/06 2006
Turnover
Finland 188.8 176.0 358.3 332.8 686.1
Scandinavia 140.9 82.1 233.2 152.6 336.4
Russia 17.1 18.3 33.1 33.7 74.1
Others 7.5 8.1 14.2 15.0 30.5
Eliminations -8.1 -6.2 -16.5 -10.8 -23.8
Total 346.2 278.3 622.3 523.3 1 103.3
Operating profit
Finland 9.5 6.8 18.9 11.3 34.0
Scandinavia 40.9 2.0 42.7 2.3 15.1
Russia 1.5 -1.8 2.7 -1.6 -2.7
Others -1.3 -0.5 -2.3 -1.0 -4.9
Total 50.6 6.5 62.0 11.0 41.5
Comparable operating profit
Finland 9.5 6.8 18.9 11.3 32.2
Scandinavia 6.1 2.0 7.9 2.3 7.4
Russia 1.5 -1.8 2.7 -1.6 -2.7
Others -0.7 -0.5 -1.7 -1.0 -3.4
Total 16.4 6.5 27.8 11.0 33.5
LIABILITIES
mill. EUR 30-6-07 30-6-06 31-12-06
Debts with mortgages or other collateral
given as security
Loans from financial
institutions 61.4 93.8 90.4
Pension fund loans 4.6 6.5 7.0
Total 66.0 100.3 97.4
Mortgages and other securities given
as comprehensive security
Real estate mortgages 94.9 77.8 83.6
Corporate mortgages 45.9 43.9 44.2
Other securities 46.7 54.9 52.6
Total 187.5 176.6 180.4
Guarantee engagements not included
in the balance sheet
Unused limits 107.4 90.8 104.7
Guarantees 3.7 15.4 27.8
BUSINESS COMBINATIONS
On 1 April 2007 the Group acquired the Swedish company AB Sardus. The
acquisition forms part of Atria's goal of becoming the leading food industry
company in the Baltic Sea region. The food industry is currently undergoing a
structural change and integration development, and there are a limited number
of major operators. Integrating of Atria and Sardus strengthens the ability
of both companies to respond to the new challenges set by the integrating
markets. Together, the companies will complement each other and form a stronger
operator with a wide selection of strong brands. The integration is expected to
produce synergy benefits for product development, purchases, logistics,
production and marketing. The wider product range and the synergy benefits will
form the main accelerators of growth, and they strengthen the brands and
product groups of both companies.
Sardus' turnover in 2006 amounted to EUR 229.8 million and its operating profit
was EUR 8.9 million.
Acquiree's
Fair current
value book value
Assets
Property, plant and equipment 54.1 54.1
Goodwill 91.8 42.9
Other intangible assets 53.6 3.4
Financial assets 0.9 0.9
Inventories 25.8 25.8
Receivables 31.0 31.0
Cash and cash equivalents 4.0 4.0
Assets, total 261.2 162.1
Liabilities
Deferred tax liabilities 22.3 9.4
Interest-bearing liabilities 81.0 81.0
Other liabilities 30.9 30.9
Liabilities, total 134.2 121.3
Net assets 127.0 40.8
Purchase price 127.0
Cash and cash equivalents of acquired company 4.0
Effect on cash flow 123.0
Calculation has been made as a draft.
ATRIA GROUP PLC
Board of Directors
For further information, please contact Mr Matti Tikkakoski, President & CEO,
tel. +358 50 2582.
DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.atria.fi
The interim report will be mailed to you upon request and is also available on
our website at www.atria.fi/konserni.