OLVI PLC FINANCIAL STATEMENTS BULLETIN 26 FEB 2008
OLVI GROUP IMPROVED ITS PROFITABILITY AND MARKET POSITION
Olvi Group's net sales in 2007 improved by 21.1 percent to 205.2 (169.4) million
euro, while operating profit improved by 25.0 percent to 23.1 (18.5) million
euro. Olvi Group's growth continued and earnings improved also in the fourth
quarter of 2007. Net sales for the quarter stood at 49.5 (39.5) million euro,
while operating profit was 3.2 (1.7) million euro. Full-year profitability
improved substantially in all of the four operating countries. The Group's gross
capital expenditure amounted to 25.4 (21.9) million euro. The equity to total
assets ratio remained good at 47.7 (49.6) percent. Earnings per share improved
to 1.83 (1.43) euro.
OLVI GROUP'S KEY INDICATORS
1-12/2007 1-12/2006 10-12/07 10-12/06
Net sales, MEUR 205.2 169.4 49.5 39.5
Operating profit, MEUR 23.1 18.5 3.2 1.7
Gross capital expenditure, MEUR 25.4 21.9
Earnings per share, EUR 1.83 1.43
Equity per share, EUR 8.61 7.46
Equity to total assets, % 47.7 49.6
Gearing, % 45.6 47.3
SALES VOLUME, NET SALES AND EARNINGS IN 2007
Olvi Group's sales volume, net sales and earnings
Olvi Group's sales in 2007 totalled 342 (303) million litres, an increase of 38
million litres or 12.6 percent. The sales improvement in Finland was 25.0
percent and in the Baltic states 10.5 percent.
The Group's net sales in 2007 amounted to 205.2 (169.4) million euro,
representing an increase of 35.8 million euro or 21.1 percent. Net sales in
Finland increased by 17.1 million euro or 21.5 percent, and aggregate net sales
in the Baltic states increased by 23.8 million euro or 24.4 percent. Net sales
growth in the Baltic states in 2007 clearly outperformed the growth in sales
volume.
Olvi Group's operating profit in 2007 stood at 23.1 (18.5) million euro, or 11.3
(10.9) percent of net sales. This represents an increase of 4.6 million euro or
25.0 percent on the previous year. Operating profits improved on the previous
year in all of the Group companies. The operating profit improvement in Finland
was 20.6 percent, and the corresponding aggregate improvement in the Baltic
states was 29.4 percent.
Profit for the accounting period after taxes stood at 19.0 (14.8) million euro,
an improvement of 4.2 million euro or 28.0 percent on the previous year.
Earnings per share improved by 28.0 percent to 1.83 (1.43) euro per share.
Parent company Olvi plc
The parent company Olvi plc's sales in 2007 totalled 138 (110) million litres,
an increase of 27 million litres or 25.0 percent. Factors contributing to the
growth included a controlled increase in promotional sales of beer, new products
in ciders, the successful launch of a long drink product that is sold in grocery
shops and filled a gap in Olvi's product range, as well as new customer
relationships.
The greatest sales growth was seen in beers and long drinks. Sales of ciders and
soft drinks also increased substantially thanks to expanded product ranges.
Sales of mineral waters declined due to intense price competition.
Tax-free sales and freighted work for the Baltic subsidiaries amounted to a
total of 9.8 (5.3) million litres in 2007, which is 7.2 (4.8) percent of total
sales.
Olvi plc's market share in medium-strength beer increased substantially in 2007.
According to the Nielsen market research company, Olvi plc took the second place
in retail sales of beer in the middle of September. From the beginning of the
year to the end of December, Olvi's market share in medium-strength beer by
value was 21.0 (17.5) percent, and at the end of December, it was 26.8 percent.
Olvi plc's total market share in its main product groups (beers, ciders, soft
drinks and mineral waters) in grocery shops at the end of December 2007 was 18.7
(18.3) percent.
The parent company's net sales in 2007 amounted to 96.5 (79.5) million euro,
representing an increase of 17.1 million euro or 21.5 percent.
Olvi plc's operating profit in 2007 totalled 8.5 (7.1) million euro or 8.8 (8.9)
percent of net sales. The operating profit improved by 1.4 million euro or 20.6
percent.
Non-marketability write-downs on the obsolete package inventory were booked for
a total of 1.8 (1.6) million euro.
AS A. Le Coq
The total sales of Olvi plc's Estonian subsidiary AS A. Le Coq in 2007 amounted
to 138 (128) million litres, an increase of 10 million litres or 8.1 percent on
the previous year. In terms of litres sold, the greatest increase was seen in
beers, while proportional growth was greatest in energy drinks and long drinks.
Sales growth was also considerable in juices. Sales of soft drinks and waters
declined slightly.
AS A. Le Coq had an average market share of approximately 40 (37) percent of the
beer market in 2007. The company was a clear market leader in ciders and long
drinks with market shares of 48 to 57 percent in 2007.
Exports and sales to other Olvi Group companies in 2007 amounted to a total of
24 (19) million litres. The amount corresponds to 14 percent of total sales.
During 2007, AS A. Le Coq's net sales growth clearly outperformed the growth in
sales volume thanks to the increased proportions of products such as Premium
beers, energy drinks and long drinks. Net sales in 2007 totalled 72.5 (60.6)
million euro, representing an increase of 11.9 million euro or 19.6 percent. The
net sales figures have been adjusted for comparability with the Group's other
units.
AS A. Le Coq's operating profit in 2007 amounted to 10.8 (9.3) million euro or
15.0 (15.3) percent of net sales. The operating profit increased by 1.6 million
euro or 16.9 percent compared to the previous year.
AS A. Le Coq was ranked the best food industry company in Estonia for the third
time in a row. The annual Competitive List of the Best Performances of the
Estonian Enterprises competition is arranged by the Estonian Chamber of Commerce
and Industry, Enterprise Estonia and the Estonian Employers' Confederation.
Winners are chosen on the basis of factors such as competitive ability, sales
development, profitability, staff costs, investments and balance sheet value.
A/S Cesu Alus
The total sales of Olvi plc's Latvian subsidiary A/S Cesu Alus in 2007 amounted
to 54 (43) million litres, increasing by 11 million litres or 26.6 percent. The
greatest growth in sales volume was seen in beers that represent approximately
70 percent of total sales.
The sales of ciders and waters doubled, and the sales of energy drinks tripled.
Sales of long drinks, functional beverages and well-being beverages also
increased substantially.
Exports and internal sales to other Olvi Group companies in 2007 stood at 1
million litres, which was on a par with the previous year.
In the primary product group, beers, A/S Cesu Alus's market position has
strengthened to more than 25 percent, and the brewery is now clearly the number
two player in the market.
The company's net sales in 2007 amounted to 26.7 (18.6) million euro,
representing an increase of 8.1 million euro or 43.7 percent.
Thanks to the growth, A/S Cesu Alus's profitability has improved substantially.
Operating profit in 2007 totalled 2.3 (0.9) million euro, an increase of 1.4
million euro. Operating profit in proportion to net sales was 8.2 (4.6) percent.
AB Ragutis
The total sales of the Lithuanian company AB Ragutis in 2007 amounted to 43 (42)
million litres, representing an increase of 1 million litres or 1.3 percent. The
sales of Ragutis long drinks, energy drinks and soft drinks are rapidly
increasing in Lithuania. Sales of ciders have also developed favourably. The
sales of beer declined slightly as the company scaled down its Private Label
production.
In 2007, the company had an average market share of 10 percent in the Lithuanian
beer market, approximately 37 percent in the cider market and approximately 21
percent in the long drink market.
Exports and internal sales to other Olvi Group companies in 2007 amounted to 1.6
(0) million litres.
The company's net sales in 2007 amounted to 22.1 (18.2) million euro,
representing an increase of 3.9 million euro or 21.1 percent. The net sales of
AB Ragutis have clearly outperformed the increase in sales volumes in 2007
thanks to the decreased proportion of private label products in total sales. The
net sales improvement was also affected by the favourable development of sales
volumes and prices of other product groups that are now supplementing beer.
The operating profit of AB Ragutis has improved thanks to major investments and
the good development of sales volumes. Net sales in 2007 amounted to 1.6 (1.2)
million euro, representing an increase of 0.3 million euro or 25.3 percent.
Operating profit in proportion to net sales was 7.0 (6.8) percent.
Factors contributing to the favourable sales and earnings development of the
Baltic companies also included expansion and reform of the product and package
ranges, as well as efficient utilisation of increased capacity.
SALES VOLUME, NET SALES AND EARNINGS IN THE FOURTH QUARTER OF 2007
Olvi Group's Q4 2007 sales volume
Olvi Group's sales from October to December 2007 totalled 82 (70) million
litres, an increase of 12 million litres or 17.1 percent. Above all, the growth
in sales volumes was attributable to strong sales growth in the parent company
Olvi plc compared to the corresponding period last year. Sales of the Latvian
subsidiary A/S Cesu Alus also increased substantially.
The parent company Olvi plc's sales grew strongly in the fourth quarter. The
sales volume was 37 (25) million litres, an increase of 12 million litres or
47.6 percent on the previous year. The greatest growth was seen in
medium-strength beers. Olvi plc improved its position in all major retail
groups.
Olvi plc's market share continued to increase in the fourth quarter of 2007. In
October-December, Olvi plc's market share in medium-strength beer by value was
25.9 (18.0) percent.
Sales in the Baltic states improved by a total of 5 million litres or 9.6
percent. Fourth-quarter sales of the Estonian subsidiary AS A. Le Coq amounted
to 32 (29) million litres, an increase of 3 million litres or 10.6 percent. In
Latvia, the sales of A/S Cesu Alus increased by 2 million litres to 12 (10)
million litres, an increase of 22.2 percent. The sales of AB Ragutis in
Lithuania declined by 5.9 percent on the previous year, coming to 9.2 (9.7)
million litres in the fourth quarter.
Olvi Group's Q4 2007 net sales
The Group's net sales in October-December amounted to 49.5 (39.5) million euro,
representing an increase of 10.0 million euro or 25.3 percent.
In Finland, strong sales development boosted the net sales of the parent company
Olvi plc by 7.0 million euro to 25.6 (18.6) million euro. This represented an
increase of 37.8 percent on the previous year.
In the Baltic countries, fourth-quarter net sales improved by 4.8 million euro
or 21.3 percent on the previous year, which clearly outperformed the growth in
sales volume. AS A. Le Coq's net sales amounted to 16.8 (13.8) million euro, an
increase of 3.0 million euro or 21.8 percent. Thanks to strong sales
development, A/S Cesu Alus's net sales improved by 33.4 percent on the previous
year to 5.9 (4.4) million euro. In spite of the declined sales volume, AB
Ragutis's net sales improved by 7.8 percent. AB Ragutis's fourth-quarter net
sales amounted to 4.8 (4.5) million euro.
Olvi Group's Q4 2007 operating profit
The Group's fourth-quarter operating profit improved substantially on the
previous year both in Finland and the Baltic states. Operating profit in
October-December amounted to 3.2 (1.7) million euro, which is 6.4 (4.4) percent
of net sales. The operating profit improved by 1.4 million euro or 80.9 percent.
Factors contributing to the operating profit improvement included the increased
efficiency of production and logistics brought about by good development in
sales volumes, as well as control of costs across the entire Olvi Group.
The parent company Olvi plc's operating profit in October-December was 1.1 (0.4)
million euro or 4.2 (2.4) percent of net sales. The operating profit improved by
0.6 million euro or 143.2 percent on the previous year.
Thanks to the good performance of AS A. Le Coq, fourth-quarter operating profit
of the Baltic companies stood at 2.2 (1.3) million euro, representing an
increase of 0.9 million euro or 71.5 percent. AS A. Le Coq's operating profit
improved by 0.9 million euro to 2.1 (1.2) million euro, an increase of 74.7
percent on the previous year. Operating profit came to 12.0 (8.4) percent of net
sales. The operating profit of A/S Cesu Alus was 0.2 million euro compared to a
loss in the corresponding period last year. AB Ragutis's operating result fell
short of the previous year's level by 0.2 million euro.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of December 2007 was 187.0 (156.0)
million euro. Shareholders' equity increased by 11.8 million euro on the
previous year, standing at 89.2 (77.4) million euro. Equity per share at the end
of December stood at 8.61 (7.46) euro. The equity to total assets ratio remained
on a healthy level in 2007. The ratio was 47.7 (49.6) percent and declined only
slightly in spite of substantial investments, dividend payouts and the
acquisition of treasury shares.
The amount of interest-bearing liabilities at the end of the accounting period
was 45.0 (38.7) million euro, including current liabilities of 16.4 (11.6)
million euro. The amount of interest-free liabilities was 51.7 (38.5) million
euro.
Olvi Group's gross capital expenditure in 2007 amounted to 25.4 (21.9) million
euro. The parent company Olvi plc accounted for 8.5 million euro and the
subsidiaries in the Baltic states for 16.9 million euro of the total. The
largest investments in 2007 were the filling and packaging lines for recyclable
plastic bottles at Olvi plc and A. Le Coq, as well as extensions to storage
facilities at A/S Cesu Alus and AB Ragutis.
The gross capital expenditure also includes purchases made on finance lease.
PRODUCT DEVELOPMENT 2007
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 R&D costs have been recognised as expenses.
Olvi Group's research and development costs in 2007 totalled 0.4 (0.2) million
euro.
NEW PRODUCTS
Finland, parent company Olvi plc
Several new products and packages were launched during 2007. The Donald Duck
Raspberry soft drink for children was launched in January 2007 and was the first
product in Finland to comply with Disney's new quality requirements for more
healthy foods (“Loved by kids, trusted by moms”). The product has a low glycemic
index, which prevents the intoxicating effect of rapidly increasing blood sugar.
The Disney range was expanded with Donald Duck Pear in January 2008. Other new
soft drinks included The Simpsons Orange Light, Ananas Light and Grapefruit
within the Classic range, as well as Light Vanilla Cola launched in January
2008.
Olvi plc entered a new product group, long drinks sold in grocery shops, through
the introduction of OLVI Greippi-Lonkero cans in April 2007. Olvi
Greippi-Lonkero achieved an approximate market share of 8 percent by value by
the end of 2007.
The FIZZ cider range was expanded with two new FIZZ Cooler products in April
2007: Strawberry-Vanilla and Light Lime-Grapefruit. The range was further
complemented by FIZZ Cooler Winter Cider in the autumn of 2007.
Other important new introductions included OLVI Ykkönen light beer in cans, as
well as OLVI Finland 90 years anniversary beer. The Olvi KevytOlo range of
mineral waters was expanded by Olvi KevytOlo Green Apple that gets its flavour
from real apples, followed by the introduction of Olvi KevytOlo Blackcurrant in
January 2008. Olvi TEHO, which holds the third place in the Finnish energy drink
market, has also been available in 6-packs since early 2007 and in larger 0.5 L
cans since January 2008. TEHO was also launched as a light product in the
autumn.
The year 2007 was marked by the design of recyclable plastic deposit bottles.
Olvi's recyclable plastic deposit bottle was launched on 6 November 2007. It was
designed by Harri Koskinen, who has received most international success among
the current generation of Finnish designers. The bottle represents a timeless
simplified style and is suitable for all product groups, which means that the
same bottle can be used for products such as mineral waters, soft drinks, energy
drinks, ciders and long drinks.
Baltic states
The AS A. Le Coq brewery celebrated its 200th anniversary in 2007. The company
launched a number of new products. The anniversary beer, A. Le Coq Special 1807,
in a transparent special glass bottle with a twist off cap was a success.
In the alcoholic beverages segment, AS A. Le Coq entered a completely new
product group, ready-to-drink cocktails, through the introduction of Sex on the
Beach, Cosmopolitan and Cuba Libre under the Chill brand in the spring of 2007.
The products have an alcohol content of six percent. Traditional long drinks
were complemented by the launch of GIN Pink. Two new cider products were
introduced: FIZZ Diamond and FIZZ Cherry.
In co-operation with the University of Tartu, AS A. Le Coq developed a
completely new type of beverage in 2007. According to a study, the product
improves your memory and concentration ability while reducing stress in mental
work. The active ingredient is L-theanine, a natural amino acid commonly found
in green tea, for example. The new product, Tarkuse Vesi or “Water of Wisdom”
also contributed to the celebration of the University of Tartu's 375th
anniversary.
AS A. Le Coq launched Aura soft drink products in addition to the attractively
priced Classic range. The range of Aura juices was supplemented by Aura Tropical
products, while energy drinks saw the addition of the Dynamite brand.
Olvi Group has made systematic efforts to unify operating models across the
Group and intensify co-operation particularly in product development, as this
will bring Group-level resource savings and improve the efficiency of product
development. The cross-Baltic brands FIZZ, Aura, Dynamite and Chill are good
examples of well-functioning co-operation. In addition to this, products
developed with joint concepts are going to be introduced under the Group
companies' own brands.
The most important new introductions in Latvia in 2007 were the Cesu DRY beer in
0.5 L transparent glass bottles and the Cesu Premium Limited Edition beer in 0.5
L cans, both launched in June. A. Le Coq Porter is popular in Estonia, and A/S
Cesu Alus launched a version in Latvia under the name Cesu Balsam Porter. The
company also launched Chill ready-to-drink cocktails, the Cesu GIN Pink long
drink and the Dynamite energy drink developed under Estonian concepts.
In Lithuania, AB Ragutis introduced the Estonian DRY beer concept under its own
Horn brand. The brewery's other beer brand, Fortas, saw the introduction of
Fortas Draught in 0.5 L cans. The cross-Baltic FIZZ Diamond and FIZZ Cherry
ciders, as well as the Dynamite energy drink, were introduced also in Lithuania
besides Estonia and Latvia.
PERSONNEL
Thanks to good sales development, the number of personnel increased in all Group
companies in 2007. Olvi Group's average number of personnel in January-December
was 1,211 (1,126), 389 (346) of them in Finland, 409 (393) in Estonia, 211 (195)
in Latvia and 202 (192) in Lithuania. The average number of personnel increased
by 85 people or 7.6 percent on the previous year. The total number of personnel
at the end of 2007 was 1,204 (1,123).
In Finland, Olvi plc has a performance-based bonus scheme covering the entire
personnel. The company also has a functional personnel fund. All of the Baltic
subsidiaries have a performance-based bonus scheme that includes key personnel.
On 26 January 2006, Olvi plc's Board of Directors decided on a new long-term
share-based incentive scheme for Olvi Group's key personnel constituting two
vesting periods: from 2006 to 2007 and from 2008 to 2010.
The share-based bonus scheme is a part of the incentive and commitment scheme
for the Group's key personnel and its purpose is to combine the objectives of
shareholders and key personnel to improve the company's value.
A total of 32,000 Olvi plc Series A shares became payable for the first vesting
period from 2006 to 2007 on the basis of achieved targets. The share-based
bonuses will be paid by the end of April 2008 in accordance with the terms and
conditions of the scheme. The shares carry a ban on transferring them within two
years of reception.
On 17 December 2007, Olvi plc's Board of Directors decided on the targets for
the second vesting period and the people included in the scheme. The maximum
number of shares to be issued on the basis of the share-based bonus scheme is
48,000 Olvi plc shares. Any bonuses for the second vesting period will be paid
in April 2011.
GROUP STRUCTURE
The merger process between AS A. Le Coq Group, a holding company fully owned by
Olvi plc, and its 100% subsidiary AS A. Le Coq, is still underway. According to
present estimates, the merger will be completed in February 2008. The
arrangements will have no effect on Olvi Group's earnings or shareholders'
equity.
At the end of December 2007, Olvi Group's holding in AS A. Le Coq was 100
percent, in A/S Cesu Alus 97.89 percent and in AB Ragutis 99.57 percent. In
October-December, AS A. Le Coq Group increased its holding in AB Ragutis by
1,465 shares from 99.558 percent to 99.571 percent. The purchase price was 6,560
euro.
NEAR-TERM RISKS AND UNCERTAINTIES
The introduction of recyclable plastic deposit bottles into the Finnish market
has increased the need for investments by retail and wholesale traders and
beverage manufacturers, as well as brought changes to the production and
logistics processes of breweries. The majority of soft drink, mineral water and
cider consumption, and perhaps a part of long drink and beer consumption, can be
expected to change over to recyclable plastic deposit bottles. However, it is
difficult to predict the rate of change.
The present refillable bottle stock will probably be completely phased out step
by step before the year 2010. This will result in increased non-marketability
write-downs on inventories within the next few years.
Strong growth in the sales and market shares of Olvi Group companies will
require that the sufficiency of production capacity be secured and that the
efficiency of operations be improved further.
The prices of raw materials and packaging supplies, as well as the costs of
energy and logistics will increase substantially in 2008. This will impose a
significant challenge to optimise the product range and to transfer the cost
increases to product sales prices.
It is still difficult to recruit skilled and committed personnel in the Baltic
states. Personnel costs and the costs of the most important raw materials and
packaging supplies have increased substantially, which together with price
increases on power and fuels imposes a pressure for increasing product prices.
The inflation rate in the Baltic states has accelerated and uncertainty in the
economy has increased, due to which the economic trend in these countries is
under intense supervision.
NEAR-TERM OUTLOOK
The overall market position of Olvi Group companies has strengthened both in
Finland and in the Baltic states. Substantial investments ensure the sufficiency
of capacity supporting our growth and cost-efficient production of versatile
product ranges and alternative packages. Further improvement of the entire Olvi
Group's profitability and competitive ability is a crucial target. Olvi plc is
more intensively seeking growth also outside Finland.
We expect Olvi Group's net sales to increase and operating profit to improve
slightly on the previous year.
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.
The parent company Olvi plc had 45.3 (44.0) million euro of distributable funds,
of which profit for the period accounted for 8.5 (7.2) million euro.
The company's Board of Directors proposes to the Annual General Meeting that
distributable funds be used as follows:
- A dividend of 0.80 euro shall be paid for 2007 on each Series K and Series A
share, totalling 8.3 million euro. The dividend represents 43.7 percent of Olvi
Group's earnings per share. The proposal calls for the payment of dividends in
April 2008.
- 37.0 million euro shall be retained in the parent company's non-restricted
equity.
In accordance with the Annual General Meeting's decision, a dividend of 0.65
euro on each Series K and Series A share, totalling 6.7 million euro, was paid
for 2006.
The financial statements from 1 January to 31 December 2007 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 2007.
The accounting policies used for the preparation of the financial statements
2007 are the same as those used for the annual financial statements 2006.
The information in this financial statement bulletin is unaudited.
An annual summary of disclosures made by the company in 2007 can be found at
www.olvi.fi under “Financial reports”.
FINANCIAL REPORTS IN 2008
Olvi Group's financial statements and Board of Directors' report for the year
2007 will be published on the company's Web site on 2 April 2008. The Annual
General Meeting of the shareholders of Olvi plc will be held in Iisalmi,
Finland, on 10 April 2008. A notice to convene the meeting will be published in
March 2008.
The following interim reports will be released in 2008:
Interim Report 1Q, January to March, on 24 April 2008,
Interim Report 2Q, January to June, on 14 August 2008, and
Interim Report 3Q, January to September, on 23 October 2008.
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 shareholders' equity, Appendix 3
Cash flow statement, Appendix 4
Notes to the financial statements, Appendix 5
DISTRIBUTION
OMX Nordic Exchange, Helsinki
Key media
www.olvi.fi
APPENDIX 1
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| OLVI GROUP | | |
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| BALANCE SHEET | | |
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| EUR 1,000 | | |
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| | 31 Dec | 31 Dec 2006 |
| | 2007 | |
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| ASSETS | | |
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| Non-current assets | | |
--------------------------------------------------------------------------------
| Tangible assets | 97706 | 83474 |
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| Goodwill | 10679 | 10675 |
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| Other intangible assets | 1002 | 1640 |
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| Financial assets available for sale | 285 | 253 |
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| Other non-current assets available | |
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| for sale | 63 | 311 |
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| Loan receivables and other non-current | 480 | 44 |
| receivables | | |
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| Deferred tax receivables | 0 | 65 |
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| Total non-current assets | 110215 | 96462 |
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| Current assets | | |
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| Inventories | 30159 | 25173 |
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| Accounts receivable and other receivables | 42181 | 32256 |
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| Deferred tax receivables | 110 | - |
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| Liquid assets | 4332 | 2102 |
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| Total current assets | 76782 | 59531 |
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| TOTAL ASSETS | 186997 | 155993 |
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| SHAREHOLDERS' EQUITY AND LIABILITIES | | |
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| Shareholders' equity held by parent company shareholders | |
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| Share capital | 20759 | 20759 |
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| Other reserves | 1092 | 1128 |
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| Treasury shares | -722 | -290 |
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| Retained earnings | 48979 | 40847 |
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| Net profit for the period | 18944 | 14822 |
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| | 89052 | 77266 |
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| Minority interest | 136 | 101 |
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| Total shareholders' equity | 89188 | 77367 |
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| Non-current liabilities | | |
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| Interest-bearing liabilities | 28592 | 27108 |
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| Interest-free liabilities | - | 490 |
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| Deferred tax liabilities | 1113 | 1413 |
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| Current liabilities | | |
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| Interest-bearing liabilities | 16383 | 11562 |
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| Accounts payable and other liabilities | 51721 | 38053 |
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| Total liabilities | 97809 | 78626 |
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| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 186997 | 155993 |
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OLVI GROUP APPENDIX
2
INCOME STATEMENT
EUR 1,000
10-12/07 10-12/06 1-12/07 1-12/06
Net sales 49485 39485 205188 169434
Other operating income 178 209 894 590
Operating expenses -43506 -35223 -171222 -140692
Depreciation and impairment -2992 -2721 -11759 -10851
Operating profit 3165 1750 23101 18481
Financial income 44 46 186 188
Financial expenses -497 -363 -1953 -1432
Profit before taxes 2712 1433 21334 17237
Taxes *) -109 -277 -2354 -2413
Net profit for the period 2603 1156 18980 14824
Attributable to:
parent company shareholders 2604 1166 18944 14822
minority -1 -10 36 2
Ratios calculated from the profit belonging to parent company shareholders:
- earnings per share, EUR 1.83 1.43
- earnings per share adjusted for
dilution from warrants, EUR 1.83 1.42
*) Taxes are recognised as the share of the entire financial year's estimated
taxes proportionate to the profit for the review period.
OLVI GROUP APPENDIX 3
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
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| EUR 1,000 | A | B | C | D | E | F | G | H | I |
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| Shareholders | 10379 | 112 | 127 | 0 | 143 | 0 | 4537 | 0 | 67262 |
| ' equity 1 | | 37 | | | | | 6 | | |
| Jan 2006 | | | | | | | | | |
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| Bonus issue | 10379 | -10 | | | | | | | 0 |
| | | 379 | | | | | | | |
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| Effect of increases in the share | | | | | | 0 |
| capital | | | | | | |
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| of subsidiaries on | | | | | | -145 | 145 | 0 |
| minority interest | | | | | | | | |
--------------------------------------------------------------------------------
| Change in minority | | | | | 46 | -46 | 0 |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | -290 | | | | | -290 |
| treasury shares | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | | -18 | | | -18 |
| translation | | | | | | | | | |
| difference | | | | | | | | | |
--------------------------------------------------------------------------------
| Payment of | | | | | | | -441 | | -4411 |
| dividends | | | | | | | 1 | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | | 1482 | | 14824 |
| for the | | | | | | | 4 | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Share of profit belonging | | | | | -2 | 2 | 0 |
| to the minority | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 20758 | 858 | 127 | -290 | 143 | -18 | 5568 | 101 | 77367 |
| ' equity 31 | | | | | | | 8 | | |
| Dec 2006 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders | 20758 | 858 | 127 | -290 | 143 | -18 | 5568 | 101 | 77367 |
| ' equity 1 | | | | | | | 8 | | |
| Jan 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
| Transfer of reserve | | | | -35 | | 35 | | 0 |
| to retained earnings | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | -432 | | | | | -432 |
| treasury shares | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | | 9 | | | 9 |
| translation | | | | | | | | | |
| difference | | | | | | | | | |
--------------------------------------------------------------------------------
| Payment of | | | | | | | -673 | | -6736 |
| dividends | | | | | | | 6 | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | | 1898 | | 18980 |
| for the | | | | | | | 0 | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Share of profit belonging | | | | | -35 | 35 | 0 |
| to the minority | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 20758 | 858 | 127 | -722 | 108 | -9 | 6793 | 136 | 89188 |
| ' equity 31 | | | | | | | 2 | | |
| Dec 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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
4
--------------------------------------------------------------------------------
| CASH FLOW STATEMENT | | |
--------------------------------------------------------------------------------
| EUR 1,000 | | |
--------------------------------------------------------------------------------
| | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit for the period | 18,980 | 14,824 |
--------------------------------------------------------------------------------
| Adjustments to profit for the period | 15,542 | 14,852 |
--------------------------------------------------------------------------------
| Change in net working capital | -1,597 | -3,320 |
--------------------------------------------------------------------------------
| Interest paid | -1,806 | -1,529 |
--------------------------------------------------------------------------------
| Interest received | 72 | 188 |
--------------------------------------------------------------------------------
| Taxes paid | -3,307 | -1,080 |
--------------------------------------------------------------------------------
| Cash flow from operations (A) | 27,884 | 23,935 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | -25,140 | -22,064 |
--------------------------------------------------------------------------------
| Disposals of fixed assets | 308 | 145 |
--------------------------------------------------------------------------------
| Cash flow from investments (B) | -24,832 | -21,919 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Withdrawals of loans | 16,000 | 7,000 |
--------------------------------------------------------------------------------
| Repayments of loans | -9,665 | -8,650 |
--------------------------------------------------------------------------------
| Acquisition of treasury shares | -432 | -290 |
--------------------------------------------------------------------------------
| Dividends paid | -6,725 | -4,411 |
--------------------------------------------------------------------------------
| Cash flow from financing (C) | -822 | -6,351 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (+) / | 2,230 | -4,335 |
| decrease (-) in cash flows | | |
--------------------------------------------------------------------------------
| (A+B+C) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets 1 January | 2,102 | 6,437 |
--------------------------------------------------------------------------------
| Liquid assets 31 December | 4,332 | 2,102 |
--------------------------------------------------------------------------------
| Change in liquid assets | 2,230 | -4,335 |
--------------------------------------------------------------------------------
OLVI GROUP APPENDIX 5
NOTES TO THE FINANCIAL STATEMENTS
The accounting policies used for the preparation of these financial statements
are the same as those used for the annual financial statements 2006.
The Group has adopted the IFRS 7 Financial Instruments: Disclosures standard and
the associated amendment to the IAS 1 Presentation of Financial Statements -
Capital Disclosures standard that entered into force on 1 January 2007.
According to the Group's estimate, the adoption of the new and amended standard
will mostly affect the notes to the Group's financial statements.
1. SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
--------------------------------------------------------------------------------
| | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 49485 | 39485 | 205188 | 169434 | |
--------------------------------------------------------------------------------
| Finland | 25579 | 18563 | 96546 | 79458 | |
--------------------------------------------------------------------------------
| Estonia *) | 16797 | 13790 | 72494 | 60632 | |
--------------------------------------------------------------------------------
| Latvia | 5927 | 4443 | 26686 | 18573 | |
--------------------------------------------------------------------------------
| Lithuania | 4798 | 4452 | 22069 | 18224 | |
--------------------------------------------------------------------------------
| - sales between | -3616 | -1763 | -12607 | -7453 | |
| segments | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The net sales figures for Estonia have been adjusted for comparability |
| with the Group's other units. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR | | | |
| 1,000) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 3166 | 1750 | 23101 | 18481 | |
--------------------------------------------------------------------------------
| Finland | 1080 | 444 | 8514 | 7060 | |
--------------------------------------------------------------------------------
| Estonia | 2055 | 1176 | 10838 | 9268 | |
--------------------------------------------------------------------------------
| Latvia | 151 | -74 | 2294 | 845 | |
--------------------------------------------------------------------------------
| Lithuania | -49 | 156 | 1553 | 1239 | |
--------------------------------------------------------------------------------
| - eliminations | -71 | 48 | -98 | 69 | |
--------------------------------------------------------------------------------
*) The net sales figures for Estonia have been adjusted for comparability with
the Group's other units.
2. PERSONNEL ON AVERAGE
1 Dec 2007 1 Dec 2006
Finland 389 346
Estonia 409 393
Latvia 211 195
Lithuania 202 192
Total 1211 1126
3. RELATED PARTY TRANSACTIONS
Employee benefits to management
Salaries and other short-term employee benefits to the Board of Directors and
Managing Director
EUR 1,000 1-12/2007 1-12/2006
Managing Directors 577 488
Chairman of the Board 203 181
Other members of the Board 106 91
Total 886 760*)
*) The figures for 2006 have been adjusted to be comparable with the information
in the financial statements 2007.
4. SHARES AND SHARE CAPITAL
31 Dec 2007
Number of A shares 8513276
Number of K shares 1866128
Total 10379404
Total votes carried by A shares 8513276
Total votes carried by K shares 37322560
Total number of votes 45835836
Registered share capital, EUR 1,000 20759
The Series A and Series K shares received a dividend of 0.65 euro per share for
2006 (0.425 euro per share for 2005), totalling 6.7 (4.4) million euro. The
dividends were paid on 16 April 2007.
Nominal value of A and K shares, EUR 2
Votes per Series A share 1
Votes per Series K share 20
The shares entitle to equal dividend. The Articles of Association include a
redemption clause concerning Series K shares.
5. TREASURY SHARES
In April 2007, the General Meeting of Shareholders of Olvi plc decided to
authorise the Board of Directors to decide on the acquisition of the company's
own shares using distributable funds. The authorisation is valid for one year
starting from the General Meeting and covers a maximum of 245,000 Series A
shares. The Board of Directors may also decide that any shares acquired on the
company's own account be cancelled by reducing the share capital.
On 16 August 2007, on the basis of the authorisation granted by the General
Meeting on 3 April 2007, the Board of Directors of Olvi plc decided to acquire a
maximum total of 16,000 of the company's own Series A shares.
In compliance with the rules of the Helsinki Stock Exchange and guidelines
concerning treasury shares of a listed company, the shares were acquired through
public trading on the Helsinki Stock Exchange at the current market price at the
time of acquisition. The acquisition was carried out between 27 August and 18
September 2007. 16,000 shares were bought at an average price of 26.96 euro per
share. The total purchase price was 431,832.63 euro.
Olvi plc already possessed 16,000 Olvi Series A shares acquired by the Board of
Directors in 2006 on the basis of an authorisation granted by the General
Meeting of Shareholders. The purchase price for treasury shares in 2006 totalled
290,399.76 euro.
The Board of Directors has not exercised the authorisation granted by the
General Meeting to transfer the company's own Series A shares during
January-December 2007. All of the treasury shares acquired, a total of 32,000
shares, are in the company's possession. Series A shares held by Olvi plc as
treasury shares represent 0.31 percent of the share capital and 0.07 percent of
the aggregate number of votes. The acquired shares represent 0.38 percent of all
Series A shares and associated votes.
6. NUMBER OF SHARES *) 1-12/2007 1-12/2006
- average 10358296 10363311
- at end of period 10347404 10363404
- average number of shares
adjusted for dilution from
warrants 10358296 10413050
*) Acquired treasury shares deducted
7. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK EXCHANGE IN JANUARY-DECEMBER
2007
Number of Olvi A shares traded in 01-12/2007 2286279
Total trading volume, EUR 1,000 55328
Traded shares in proportion to all Series A shares, % 26.9
Average share price 01-12/2007, EUR 24.14
Highest quote in June, EUR 30.80
Lowest quote in January, EUR 19.50
8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 DECEMBER 2007
Book entries Votes Shareholders
qty % qty % qty
Finnish total 8350135 80.45 42834831 93.45 5634
Foreign total 267034 2.57 1238770 2.70 23
Nominee registered
(foreign) total 1220 0.01 1220 0.00 2
Nominee registered
(Finnish) total 1761015 16.97 1761015 3.84 8
Total 10379404 100 45835836 100 5667
9. LARGEST SHAREHOLDERS ON 31 DECEMBER 2007
Series K Series A Total % Votes %
1. Olvi Foundation
1181952 354408 1536360 14.80 23993448 52.35
2. Hortling Heikki Wilhelm *)
450712 85380 536092 5.16 9099620 19.85
3. The Heirs of Hortling Kalle Einari
3552 12624 106176 1.02 1883664 4.11
4. Hortling Timo Einari
82912 17304 100216 0.97 1675544 3.66
5. Hortling-Rinne Marit
51144 1050 52194 0.51 1023930 2.23
6. Skandinaviska Enskilda Banken nominee register
992602 992602 9.56 992602 2.17
7. Nordea Bank Finland plc, nominee register
645355 645355 6.22 645355 1.41
8. Ilmarinen Mutual Pension Insurance Company
515748 515748 4.97 515748 1.13
9. Autocarrera Oy Ab
221891 221891 2.14 221891 0.48
10. Pensionsförsäkringsaktiebolaget Veritas Pension Insurance
Company 208000 208000 2.00 208000 0.45
Others 5856 5458914 5464770 52.65 5576034 12.17
Total 1866128 8513276 10379404 100,00 45835836 100.00
*) The figures include the shareholder's own holdings and shares held by parties
in his control.
--------------------------------------------------------------------------------
| 10. PROPERTY, PLANT AND EQUIPMENT |
--------------------------------------------------------------------------------
| EUR 1,000 | | |
--------------------------------------------------------------------------------
| | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase | 29031 | 21878 |
--------------------------------------------------------------------------------
| Decrease | -5108 | -3535 |
--------------------------------------------------------------------------------
| Total | 23923 | 18343 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 11. CONTINGENT LIABILITIES | 31 Dec 2007 | 31 Dec 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Pledges and contingent liabilities | |
--------------------------------------------------------------------------------
| For own commitments | 1134 | 765 |
--------------------------------------------------------------------------------
| For others | 0 | 1055 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing liabilities: | | |
--------------------------------------------------------------------------------
| Due within one year | 882 | 1041 |
--------------------------------------------------------------------------------
| Due within 1 to 5 years | 1101 | 1019 |
--------------------------------------------------------------------------------
| Due in more than 5 years | 5 | 5 |
--------------------------------------------------------------------------------
| Total leasing liabilities | 1988 | 2065 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Package liabilities | 4604 | 4734 |
--------------------------------------------------------------------------------
| Other liabilities | 1980 | 1980 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts for which mortgages have been given as collateral |
--------------------------------------------------------------------------------
| Loans from financial institutions | | |
--------------------------------------------------------------------------------
| For own commitments | 0 | 2318 |
--------------------------------------------------------------------------------
| For others | 0 | 1527 |
--------------------------------------------------------------------------------
12. CALCULATION OF FINANCIAL RATIOS
Equity to total assets, % = Shareholders' equity held by parent company
shareholders + minority interest/100 * balance sheet total - advances received
Earnings per share = Profit belonging to parent company shareholders / Average
number of shares during the period, adjusted for share issues
Equity per share = Shareholders' equity held by parent company shareholders /
Number of shares at end of period, adjusted for share issues
Gearing, % = Interest-bearing debt - cash in hand and at bank / Shareholders'
equity held by parent company shareholders + minority interest
