SUOMINEN CORPORATION INTERIM REPORT 29 APRIL 2009 AT 8.30 A.M.
INTERIM REPORT 1 JANUARY - 31 MARCH 2009
SUOMINEN RECORDED A PROFIT FOR THE FIRST QUARTER
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| KEY FIGURES | 1-3/2009 | 1-3/2008 | 1-12/2008 |
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| Net sales, EUR million | 46.9 | 54.5 | 214.6 |
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| Operating profit, EUR | 3.6 | -0.1 | -4.0 |
| million | | | |
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| Profit/loss for the period, | 1.5 | -0.9 | -7.2 |
| EUR million | | | |
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| Earnings/share, EUR | 0.06 | -0.04 | -0.31 |
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| Cash flow from | 0.61 | 0.14 | 0.80 |
| operations/share, EUR | | | |
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Outlook: The financial results for the following quarters are anticipated to
come short of the first quarter. However, the financial performance and profit
after taxes for 2009 will improve on the previous year. Net sales are expected
to decline.
GROUP FINANCIAL RESULTS
Suominen Corporation generated net sales of EUR 46.9 million (54.5) in the first
quarter. Operating profit was EUR 3.6 million (-0.1), profit before taxes EUR
2.0 million (-1.2) and profit after taxes EUR 1.5 million (-0.9).
Net sales fell by 14 per cent on the previous year. The decrease in sales
volumes is presumed to be attributable to a decline in customers' stock levels
and a general reduction in consumer demand. The margins for sales improved. The
declining trend in raw material prices at the end of 2008 stopped, and the
prices partly resumed a slight uptrend. However, due to the delay relating to
the raw material clauses, the cost level was more favourable than in the
corresponding period in 2008. Suominen's cost-saving and operational enhancement
programmes have continued, which brought operating expenses to a substantially
lower level than in 2008.
The Company continued to strengthen its financial position. The working capital
was released and investments were kept at a low level. The strong cash flow from
operations, EUR 14.4 million (3.4), was used to reduce net debt by
EUR 14.2 million. The reduction was EUR 27.8 million compared to the situation
in 2008.
Cost-saving and operational enhancement programme
Suominen's Stairs to Top programme was continued by continuously improving
operational efficiency and renewing the product offering. Cost-savings were made
in procurement, personnel and overhead costs. The results of the
efficiency-enhancement measures were seen in higher production yields and
improved efficiency. The measures included in the enhancement programmes to
release the working capital and refrain from investments were reflected in the
clearly stronger cash flow. Despite the general reduction in sales, progress was
made in the sales and product offering programmes.
Financing
The Group's interest-bearing net liabilities totalled EUR 67.2 million (95.1).
The Company has capital loans of EUR 8.0 million (12.0). Repayments of
non-current loans were EUR 7.5 million. Net financial expenses were EUR 1.5
million (1.1) or 3.3 per cent (2.0) of net sales. A total of EUR 9.6 million was
released in the working capital. The reduction in working capital included the
sale of EUR 6.5 million of trade receivables under the sale programme concluded
with the bank, an increase of EUR 4.7 million on the end of 2008. The equity
ratio was 25.4 per cent (26.5). When the capital loans are included in
shareholders' equity, the equity ratio was 31.2 per cent (33.6) and the ratio of
liabilities to shareholders' equity 136.6 per cent (146.1). Cash flow from
operations was EUR 0.61 per share (0.14).
Investments
The Company's gross investments in production totalled EUR 0.6 million (0.9).
Planned depreciation amounted to EUR 2.6 million (3.3). Codi Wipes accounted for
EUR 0.1 million (0.2), Nonwovens EUR 0.2 million (0.3) and Flexibles EUR 0.3
million (0.4) of total investments. Investments constituted replacement and
maintenance investments.
SEGMENT RESULTS
During the period under review, net sales of the Wiping business area totalled
EUR 30.4 million, having a decrease of 15 per cent on the corresponding period
in 2008. The business area's operating profit was EUR 1.4 million (-0.1).
Net sales of Codi Wipes, at EUR 15.9 million, declined by 14 per cent on the
previous year. The reduction was most significant for brand companies. Of the
product areas, only baby wipes retained their 2008 level. After a slow start,
sales picked up towards the end of the period. Lower sales volumes were partly
due to the discarding of unprofitable product groups. Most of the personnel
reductions in accordance with the unit's rationalisation programme have already
been agreed on. In addition, cost-savings were made in raw material costs.
Net sales of Nonwovens decreased by 18 per cent to EUR 16.8 million. Delivery
volumes of nonwovens for wipes declined both in Europe and the USA, while
deliveries of material for hygiene and health care products were on the level of
the previous year. Suominen reacted to the lower demand during the first quarter
with a shutdown for the winter holidays and a short temporary layoff period
concerning the entire personnel. Operating expenses decreased considerably on
the previous year. The delay relating to the raw material clauses included in
the supply contracts improved the unit's margins for sales. The efficiency of
production improved further as the yield of production increased and the amount
of wastage decreased.
Net sales of Flexibles totalled EUR 16.4 million (19.1) and operating profit was
EUR 2.2 million (0.2). Net sales declined by 14 per cent on the previous year,
in particular due to a clear fall in the delivery volumes of hygiene packaging.
Within the hygiene sector, the production of packaging for kitchen rolls and
toilet paper had already previously been adapted to a lower level. Sales also
decreased in other business segments. Sales to Russia remained on par with the
previous year.
The profitability of operations improved thanks to a wider margin between sales
and raw material prices, mainly due to delays relating to contracts. In
addition, cost-savings relating to purchases and efficiency-enhancement measures
implemented earlier in the Stairs to Top programme improved the margins.
GENERAL MEETINGS OF SHAREHOLDERS
The Annual General meeting of Shareholders was held on 20 March 2009. The
General Meeting decided that no dividend be paid for 2008.
The General Meeting approved the financial statements of the parent company and
the Group for the financial year 1 January - 31 December 2008 and released the
members of the Board of Directors and the President and CEO from liability for
the period.
The General Meeting elected Heikki Bergholm, Kai Hannus, Juhani Lassila, Mikko
Maijala and Heikki Mairinoja to the Board of Directors. Mikko Maijala has served
as Chairman and Heikki Mairinoja as Deputy Chairman of the Board.
PricewaterhouseCoopers Oy, Authorised Public Accountants, with Heikki Lassila,
APA, as the principal auditor, were elected as auditors of Suominen Corporation.
SHARE CAPITAL AND SHARES
Share capital
The registered number of issued shares of Suominen totals 23,720,112 shares or
EUR 11,860,056. There were no changes in share capital during the period under
review.
Share trading and price
The number of Suominen Corporation shares traded on NASDAQ OMX Helsinki from 1
January to 31 March 2009 was 451,033 shares, equivalent to 1.9 per cent of
shares included in the Company's share capital. The trading price varied between
EUR 0.65 and EUR 0.87. The final trading price was EUR 0.75, giving the Company
a market capitalisation of EUR 17.8 million on 31 March 2009.
The Company's own shares
On 1 January 2009, the Company held 55,057 of its own shares, accounting for 0.2
per cent of the share capital and votes.
The Annual General Meeting of Shareholders held on 20 March 2009 authorised the
Board of Directors to decide on the acquisition of a maximum of 200,000 of the
Company's own shares. The authorisation will be valid for 18 months after the
decision of the General Meeting. The shares shall be repurchased to improve
Company's capital structure and/or to be used as consideration in future
acquisitions or other arrangements related to the Company's business or as part
of the Company's incentive program, and/or to finance investments. Shares may be
held, cancelled or conveyed by the Company. The Company's own shares shall be
repurchased otherwise than in proportion to the holdings of the shareholders by
using the non-restricted equity through public trading on NASDAQ OMX Helsinki
Ltd at the market price prevailing at the time of acquisition.
The General Meeting also authorised the Board of Directors to decide on the
conveyance of a maximum of 255,057 of the Company's own shares. The
authorisation will be valid for 18 months after the end of the General Meeting.
Within the authorisation the Company has conveyed 54,375 of its own shares as
emoluments to the Board of Directors in the period under review. The price of
the conveyed shares was EUR 0.80 per share.
During the period under review, the board of Directors did not exercise its
authorities to buy the Company's own shares. On 31 March 2009, Suominen
Corporation held a total of 682 of its own shares, accounting for 0.0 per cent
of the share capital and votes.
Stock options
The Annual General Meeting of Shareholders held on 20 March 2009 approved stock
option plan 2009. Under the plan, a maximum of 450,000 stock options shall be
issued to the President and CEO and to the members of the Corporate Executive
Team as specified by the Board of Directors. Each stock option entitles its
holder to subscribe for one Suominen Corporation's share with an equivalent book
value of EUR 0.50.
Suominen has stock option plans 2006, 2007 and 2009. As the registered number of
Suominen's issued shares totals 23,720,112, the number of shares may rise to a
maximum of 24,670,112 after stock option subscriptions.
Other authorisation for the board of directors
The Board of Directors is not currently authorised to issue shares, convertible
bonds or bonds with warrants.
OUTLOOK
Demand for Suominen's products is evaluated on the basis of customer contracts
and use forecast provided by customers. The short-term use forecasts indicate
lower volumes than the year before. Possible causes for this include weaker
consumer demand, changes in the consumption structure of daily consumer goods
and reductions in customers' stock levels. However, consumption of Suominen's
main product groups is expected to remain more stable than the general consumer
demand.
Suominen's net sales are expected to decline compared to the year before, not
only due to the general economic uncertainty, but also due to the
rationalisation measures taken in the business units.
The focus of the Company's operations is on improving profitability, and
strengthening its cash flow and capital structure. The Stairs to Top enhancement
programme will be continued throughout the Group, and is expected to improve
Suominen's competitiveness. The prices for plastic raw materials have been
difficult to predict, but the global recession and soft demand for raw materials
is likely to restain the rise in raw material prices. The positive effect of raw
material clauses included in Suominen's contracts mainly fell on the first
quarter.
Suominen estimates that the financial results for the following quarters will
come short of the first quarter. However, the financial performance and profit
after taxes for 2009 will improve on the previous year.
NEAR-FUTURE UNCERTAINTIES
The estimate concerning the development of Suominen's net sales is based in part
on forecasts and action plans provided by the Group's customers. Changes in
these forecasts and plans resulting from changes in the market situation or
changes in customers' inventory levels could affect Suominen's margins. Due to
the uncertain global economic situation, the forecasts are more vulnerable to
risks than before.
Nonwovens and Flexibles purchase oil-based raw materials to the value of some
EUR 40 million annually. In addition, significant amounts of viscose, printing
inks, and solvents are also purchased. Rapid fluctuations in the world market
prices of raw materials affect Suominen's margins.
Suominen's cost-saving and operational enhancement efforts are focused on areas
such as improving yield, increasing machine speeds, and reducing changeover
time. The benefits of these efforts will be most evident if production volumes
will increase. Delays in the implementation of measures or their failure would
have a negative impact on the Company's result.
The safety margin of the critical covenants of Suominen's credit agreements
increased due to the good cash flow from operations during the first quarter.
However, a significant or long-term decrease in the cash flow from operations
may result in a situation where the Company does not meet the financial
conditions. In this case, the banks have the right to declare the credits due
and payable and renegotiate the terms.
The sensitivity of Suominen's group goodwill, and possible changes in the
general assumptions are described in the notes to the financial statements for
2008. Suominen's business risks are described in the report of the Board of
Directors for 2008
SUOMINEN CORPORATION CONSOLIDATED 1 JANUARY - 31 MARCH 2009
This interim report has been prepared in compliance with IAS 34 Interim
Financial Reporting. Principles for preparing the interim report are the same as
those used for preparing the financial statements for 2008, and this interim
report should be read parallel to the financial statements for 2008. Changes to
published accounting standards and interpretations, together with the new
accounting standards that came into force on 1 January 2009, are presented in
the financial statements for 2008.
All calculations in this interim report have been prepared in compliance with
revised IAS 1, ‘Presentation of Financial Statements' .The revised standard is
aimed at improving users' ability to analyse and compare the information given
in financial statements by separating changes in equity of an entity arising
from transactions with owners from other changes in equity. Non-owner changes in
equity will be presented in the statement of comprehensive income.
The figures in this interim report have not been audited.
BALANCE SHEET
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| EUR 1 000 | 3/2009 | 3/2008 | 12/2008 |
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| ASSETS | | | |
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| Non-current assets | | | |
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| Goodwill | 23 404 | 25 604 | 23 404 |
--------------------------------------------------------------------------------
| Intangible non-current assets | 809 | 881 | 855 |
--------------------------------------------------------------------------------
| Tangible non-current assets | 59 094 | 72 049 | 62 661 |
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| Available-for-sale financial assets | 577 | 712 | 627 |
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| Held-to-maturity investments | 172 | 100 | 172 |
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| Deferred tax assets | 1 522 | 961 | 1 562 |
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| Non-current assets, total | 85 578 | 100 307 | 89 281 |
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| Current assets | | | |
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| Inventories | 21 019 | 33 280 | 24 050 |
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| Trade receivables | 17 994 | 26 277 | 21 174 |
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| Other current receivables | 3 158 | 5 169 | 4 843 |
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| Income tax receivables | 696 | 339 | 228 |
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| Cash at bank and in hand | 10 566 | 3 904 | 4 243 |
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| Current assets, total | 53 433 | 68 969 | 54 538 |
--------------------------------------------------------------------------------
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| Assets, total | 139 011 | 169 276 | 143 819 |
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| SHAREHOLDERS' EQUITY AND LIABILITIES | | | |
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| Equity attributable to owners of the | | | |
| parent | | | |
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| Share capital | 11 860 | 11 860 | 11 860 |
--------------------------------------------------------------------------------
| Share premium account | 24 681 | 24 681 | 24 681 |
--------------------------------------------------------------------------------
| Fair value and other reserves | -1 046 | 755 | -540 |
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| Translation differences | -1 306 | 1 402 | -288 |
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| Other shareholders' equity | 1 158 | 6 120 | -323 |
--------------------------------------------------------------------------------
| Shareholders' equity, total | 35 347 | 44 818 | 35 390 |
--------------------------------------------------------------------------------
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| Liabilities | | | |
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| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 3 616 | 5 457 | 3 684 |
--------------------------------------------------------------------------------
| Capital loans | 6 000 | 10 000 | 8 000 |
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| Interest-bearing liabilities | 60 275 | 62 336 | 66 436 |
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| Non-current liabilities, total | 69 891 | 77 793 | 78 120 |
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| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 9 900 | 25 128 | 9 967 |
--------------------------------------------------------------------------------
| Provisions | | 100 | |
--------------------------------------------------------------------------------
| Capital loans | 2 000 | 2 000 | 2 000 |
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| Income tax liabilities | 678 | 106 | 229 |
--------------------------------------------------------------------------------
| Trade payables and other current | 21 194 | 19 331 | 18 113 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Current liabilities, total | 33 773 | 46 665 | 30 309 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities, total | 103 664 | 124 458 | 108 429 |
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--------------------------------------------------------------------------------
| Shareholders' equity and liabilities, | 139 011 | 169 276 | 143 819 |
| total | | | |
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STATEMENT OF INCOME
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| EUR 1 000 | 1-3/2009 | 1-3/2008 | 1-12/2008 |
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| NET SALES | 46 944 | 54 462 | 214 605 |
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| Cost of goods sold | -40 629 | -51 723 | -203 429 |
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| GROSS PROFIT | 6 315 | 2 739 | 11 176 |
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| Other operating income | 298 | 169 | 1 547 |
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| Sales and marketing expenses | -803 | -838 | -3 319 |
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| Research and development | -450 | -539 | -2 233 |
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| Administration expenses | -1 700 | -1 625 | -6 667 |
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| Other operating expenses | -110 | -31 | -2 060 |
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| OPERATING PROFIT BEFORE IMPAIRMENT | 3 551 | -125 | -1 555 |
| LOSSES | | | |
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| Impairment losses | | | -2 490 |
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| OPERATING PROFIT | 3 551 | -125 | -4 045 |
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| Financial income and expenses | -1 539 | -1 084 | -4 796 |
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| PROFIT BEFORE INCOME TAXES | 2 012 | -1 209 | -8 841 |
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| Income taxes | -538 | 309 | 1 600 |
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| PROFIT/LOSS FOR THE PERIOD | 1 474 | -900 | -7 241 |
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| Earnings/share, EUR | 0.06 | -0.04 | -0.31 |
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STATEMENT OF COMPREHENSIVE INCOME
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| EUR 1 000 | 1-3/2009 | 1-3/2008 | 1-12/2008 |
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| Profit/loss for the period | 1 474 | -900 | -7 241 |
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| | | | |
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| Other comprehensive income | | | |
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| Total exchange differences on foreign | -1 376 | 177 | -2 014 |
| operations | | | |
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| Fair value changes of cash flow hedges | -751 | -1 224 | -2 990 |
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| Fair value changes of availabe-for-sale | | | -73 |
| assets | | | |
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| Other reclassifications | 4 | 87 | -8 |
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| Income tax on other comprehensive | 553 | 341 | 1 320 |
| income | | | |
--------------------------------------------------------------------------------
| Total other comprehensive income | -1 570 | -619 | -3 765 |
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| | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for the | -96 | -1 519 | -11 006 |
| period | | | |
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STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
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| EUR 1 000 | Share | Share | Own | Transla | Fair |Retained | Total |
| |capital|premium | shares | tion | value |earnings | |
| | |account | | differ- |reserves | | |
| | | | | ences | | | |
--------------------------------------------------------------------------------
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| Total | 11 860| 24 681 | -50 | -288 | -490 | -323 | 35 390 |
| equity at 1 | | | | | | | |
| Jan. 2009 | | | | | | | |
--------------------------------------------------------------------------------
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| Total | | | | -1 018 | -555 | 1 477 | -96 |
| comprehensi | | | | | | | |
| ve income | | | | | | | |
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| Share-based | | | | | | 10 | 10 |
| payments | | | | | | | |
--------------------------------------------------------------------------------
| Conveyance | | | 49 | | | -6 | 43 |
| of own | | | | | | | |
| shares | | | | | | | |
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| Total | 11 860| 24 681 | -1 | -1 306 | -1 045 | 1 158 | 35 347 |
| equity at | | | | | | | |
| 31 March | | | | | | | |
| 2009 | | | | | | | |
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--------------------------------------------------------------------------------
| EUR 1 000 | Share | Share | Own | Transla | Fair |Retained | Total |
| |capital|premium | shares | tion | value |earnings | |
| | |account | | differ- |reserves | | |
| | | | | ences | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 11 860| 24 681 | -115 | 1 202 | 1 776 | 6 903 | 46 307 |
| equity at 1 | | | | | | | |
| Jan. 2008 | | | | | | | |
--------------------------------------------------------------------------------
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| Total | | | | 200 | -906 | -813 | -1 519 |
| comprehensi | | | | | | | |
| ve income | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | 30 | 30 |
| payments | | | | | | | |
--------------------------------------------------------------------------------
| Total | 11 860| 24 681 | -115 | 1 402 | 870 | 6 120 | 44 818 |
| equity at | | | | | | | |
| 31 March | | | | | | | |
| 2008 | | | | | | | |
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--------------------------------------------------------------------------------
| EUR 1 000 | Share | Share | Own | Transla | Fair |Retained | Total |
| |capital|premium | shares | tion | value |earnings | |
| | |account | | differ- |reserves | | |
| | | | | ences | | | |
--------------------------------------------------------------------------------
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| Total | 11 860| 24 681 | -115 | 1 202 | 1 776 | 6 903 | 46 307 |
| equity at 1 | | | | | | | |
| Jan. 2008 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | | | | -1 490 | -2 267 | -7 249 | -11 |
| comprehensi | | | | | | | 006 |
| ve income | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | 72 | 72 |
| payments | | | | | | | |
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| Repurchase | | | -34 | | | | -34 |
| of own | | | | | | | |
| shares | | | | | | | |
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| Conveyance | | | 99 | | | -48 | 51 |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Total | 11 860| 24 681 | -50 | -288 | -490 | -323 | 35 390 |
| equity at | | | | | | | |
| 31 Dec. | | | | | | | |
| 2008 | | | | | | | |
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CASH FLOW STATEMENT
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| EUR 1 000 | 1-3/2009 | 1-3/2008 | 1-12/2008 |
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| Operations | | | |
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| Operating profit | 3 551 | -125 | -4 045 |
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| Total adjustments | 2 638 | 3 238 | 14 763 |
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| Cash flow before change in working | 6 189 | 3 112 | 10 718 |
| capital | | | |
--------------------------------------------------------------------------------
| Change in working capital | 9 635 | 778 | 12 255 |
--------------------------------------------------------------------------------
| Financial items | -1 353 | -441 | -4 682 |
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| Taxes paid | -31 | -23 | 621 |
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| Cash flow from operations | 14 439 | 3 427 | 18 912 |
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| | | | |
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| Investment payments | | | |
--------------------------------------------------------------------------------
| Investments in tangible and intangible | -636 | -956 | -3 578 |
| assets | | | |
--------------------------------------------------------------------------------
| Proceeds from disposal of fixed assets | -16 | | 274 |
| and other proceeds | | | |
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| Cash flow from investing activities | -652 | -956 | -3 304 |
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| | | | |
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| Financing | | | |
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| Non-current loans drawn | 26 000 | | 33 000 |
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| Repayments of non-current loans | -31 533 | -1 233 | -35 147 |
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| Withdrawals of capital loans | | 10 000 | 10 000 |
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| Repayments of capital loans | -2 000 | | -2 000 |
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| Repurchase and conveyance of own shares | 44 | | 17 |
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| Change in current loans | | -8 422 | -18 336 |
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| Cash flow from financing | -7 490 | 345 | -12 466 |
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| Change in cash and cash equivalents | 6 298 | 2 817 | 3 142 |
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| KEY FIGURES | 1-3/2009 | 1-3/2008 | 1-12/2008 |
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| Net sales, change, % * | -13.8 | 0.3 | -0.3 |
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| Gross profit, % ** | 13.5 | 5.0 | 5.2 |
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| Operating profit, % ** | 7.6 | -0.2 | -1.9 |
---------------------------------------------------------------------------
| Financial income and expenses, % ** | -3.3 | -2.0 | -2.2 |
---------------------------------------------------------------------------
| Profit before income taxes, % ** | 4.3 | -2.2 | -4.1 |
---------------------------------------------------------------------------
| Profit for the period, % ** | 3.1 | -1.7 | -3.4 |
---------------------------------------------------------------------------
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| Earnings/share, EUR | 0.06 | -0.04 | -0.31 |
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| Equity/share, EUR | 1.49 | 1.89 | 1.49 |
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| Cash flow from operations/share, EUR | 0.61 | 0.14 | 0.80 |
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| Return on equity (ROE), % | 16.7 | -7.9 | -16.7 |
---------------------------------------------------------------------------
| Return on invested capital (ROI), % | 12.1 | -0.3 | -2.9 |
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| Equity ratio, % | 25.4 | 26.5 | 24.6 |
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| Gearing, % | 190.2 | 212.0 | 229.9 |
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| Gross investments, EUR 1 000 | 562 | 912 | 3 910 |
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| Depreciation, EUR 1 000 | 2 595 | 3 339 | 12 595 |
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| Impairment losses, EUR 1 000 | | | 2 490 |
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* Compared with the corresponding period of the previous year.
** As of net sales.
SEGMENT REPORTING
WIPING
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| EUR 1 000 | 1-3/2009 | 1-3/2008 | Change % | 1-12/2008 |
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| Net sales | | | | |
--------------------------------------------------------------------------------
| - Codi Wipes | 15 914 | 18 507 | -14.0 | 72 367 |
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| - Nonwovens | 16 822 | 20 559 | -18.2 | 76 320 |
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| - eliminations | -2 372 | -3 564 | | -10 166 |
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| Total | 30 364 | 35 502 | -14.5 | 138 521 |
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| Operating profit before | 1 405 | -97 | | -2 266 |
| impairment losses | | | | |
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| % of net sales | 4.6 | -0.3 | | -1.6 |
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| Impairment losses | | | | -2 490 |
--------------------------------------------------------------------------------
| Operating profit | 1 405 | -97 | | -4 756 |
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| Assets | 89 377 | 106 952 | | 93 804 |
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| Liabilities | 11 888 | 11 831 | | 12 242 |
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| Net assets | 77 489 | 95 121 | | 81 562 |
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| Investments | 235 | 558 | | 2 042 |
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| Depreciation | 1 749 | 1 925 | | 7 525 |
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| Impairment losses | | | | 2 490 |
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| Average personnel | 403 | 459 | | 445 |
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FLEXIBLES
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| EUR 1 000 | 1-3/2009 | 1-3/2008 | Change % | 1-12/2008 |
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| Net sales | 16 380 | 19 094 | -14.2 | 76 795 |
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| Operating profit | 2 220 | 175 | | 1 191 |
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| % of net sales | 13.6 | 0.9 | | 1.6 |
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| Assets | 44 191 | 57 835 | | 47 183 |
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| Liabilities | 8 666 | 9 423 | | 8 136 |
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| Net assets | 35 525 | 48 412 | | 39 047 |
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| Investments | 327 | 354 | | 1 820 |
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| Depreciation | 841 | 1 403 | | 5 033 |
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| Average personnel | 535 | 581 | | 562 |
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NON-ALLOCATED ITEMS
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| EUR 1 000 | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
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| Net sales | 200 | -134 | -711 |
--------------------------------------------------------------------------------
| Operating profit | -74 | -203 | -480 |
--------------------------------------------------------------------------------
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| Assets | 5 443 | 4 489 | 2 832 |
--------------------------------------------------------------------------------
| Liabilities | 83 110 | 103 203 | 89 244 |
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| Investments | | | 48 |
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| Depreciation | 5 | 11 | 37 |
--------------------------------------------------------------------------------
| Average personnel | 11 | 12 | 12 |
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NET SALES BY MARKET AREA
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| EUR 1 000 | 1-3/2009 | 1-3/2008 | 1-12/2008 |
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| Finland | 7 607 | 8 416 | 34 954 |
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| Scandinavia | 4 141 | 4 789 | 18 375 |
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| The Netherlands | 3 893 | 4 667 | 16 891 |
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| Other Europe | 25 792 | 28 888 | 119 573 |
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| Other countries | 5 511 | 7 702 | 24 812 |
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| Net sales, total | 46 944 | 54 462 | 214 605 |
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QUARTERLY FIGURES
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| EUR 1 000 | II/2008 | III/2008 | IV/2008 | I/2009 | II/2008- |
| | | | | | I/2009 |
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| NET SALES | | | | | |
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| Wiping | | | | | |
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| - Codi Wipes | 17 379 | 19 481 | 17 000 | 15 914 | 69 774 |
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| - Nonwovens | 21 109 | 19 152 | 15 500 | 16 822 | 72 583 |
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| - eliminations | -1 966 | -2 493 | -2 143 | -2 372 | -8 974 |
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| Total | 36 522 | 36 140 | 30 357 | 30 364 | 133 383 |
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| Flexibles | 18 817 | 19 157 | 19 727 | 16 380 | 74 081 |
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| Non-allocated items | -171 | -146 | -260 | 200 | -377 |
| and eliminations | | | | | |
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| Net sales, total | 55 168 | 55 151 | 49 824 | 46 944 | 207 087 |
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| OPERATING PROFIT | | | | | |
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| Wiping | 295 | -516 | -369 | 1 405 | 815 |
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| % of net sales | 0.8 | -1.4 | -1.2 | 4.6 | 0.6 |
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| Flexibles | 509 | -312 | 819 | 2 220 | 3 236 |
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| % of net sales | 2.7 | -1.6 | 4.2 | 13.6 | 4.4 |
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| Non-allocated items | -186 | 63 | -154 | -74 | -351 |
| and eliminations | | | | | |
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| Operating profit | 618 | -765 | 296 | 3 551 | 3 700 |
| before | | | | | |
| non-recurring costs | | | | | |
| and impairment | | | | | |
| losses | | | | | |
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| % of net sales | 1.1 | -1.4 | 0.6 | 7.6 | 1.8 |
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| Non-recurring costs | | | -1 579 | | -1 579 |
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| Impairment losses | | | -2 490 | | -2 490 |
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| Operating profit, | 618 | -765 | -3 773 | 3 551 | -369 |
| total | | | | | |
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| % of net sales | 1.1 | -1.4 | -7.6 | 7.6 | -0.2 |
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| NET FINANCIAL | -1 200 | -1 260 | -1 252 | -1 539 | -5 251 |
| EXPENSES | | | | | |
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| PROFIT BEFORE | -582 | -2 025 | -5 025 | 2 012 | -5 620 |
| INCOME TAXES | | | | | |
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TAXES FOR THE PERIOD UNDER REVIEW
Income tax expense is recognised based on the estimated average income tax rate
for the full financial year.
INFORMATION ON RELATED PARTIES
Suominen has related party relationships with the members of the Board of
Directors, and the members of the Corporate Executive Team. The Company has no
investments in associated companies. Salaries paid to the related parties
amounted to EUR 291 thousand, share-based payments EUR 10 thousand, and
unsecured loans EUR 880 thousand.
MOVEMENTS IN BORROWINGS
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| EUR 1 000 | 1-3/2009 | 1-3/2008 |
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| Total borrowings on 1 January | 86 403 | 99 119 |
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| | | |
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| Current loans from financial institutions on 1 | | 3 000 |
| January | | |
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| Change in current loans from financial institutions | | -3 000 |
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| Current loans from financial institutions on 31 | 0 | 0 |
| March | | |
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| | | |
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| Commercial papers on 1 January | | 15 336 |
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| Change in commercial papers | | -5 422 |
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| Commercial papers on 31 March | 0 | 9 914 |
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| | | |
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| Non-current loans on 1 January | 76 403 | 78 783 |
--------------------------------------------------------------------------------
| Change in non-current loans | -6 228 | -1 233 |
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| Non-current loans on 31 March | 70 175 | 77 550 |
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| | | |
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| Capital loans on 1 January | 10 000 | 2 000 |
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| Change in capital loans | -2 000 | 10 000 |
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| Capital loans on 31 March | 8 000 | 12 000 |
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| | | |
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| Total borrowings on 31 March | 78 175 | 99 464 |
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CHANGES IN FIXED ASSETS
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| EUR 1 000 | 1-3/ | | 1-3/ | | 1-12/ | |
| | 2009 | | 2008 | | 2008 | |
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| | Tangi- | Intan- | Tangi- | Intan- | Tangi- | Intan- |
| | ble | gible | ble | gible | ble | gible |
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| Book value at the | 62 661 | 855 | 74 083 | 942 | 74 083 | 942 |
| beginning of the | | | | | | |
| period | | | | | | |
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| Investments | 554 | 8 | 887 | 25 | 3 701 | 137 |
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| Decreases | | | | | -2 305 | |
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| Depreciation and | -2 543 | -52 | -3 290 | -49 | -12 666 | -219 |
| impairment | | | | | | |
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| Translation | -1 578 | -2 | 369 | -37 | -152 | -5 |
| differences and | | | | | | |
| other changes | | | | | | |
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| Book value at the | 59 094 | 809 | 72 049 | 881 | 62 661 | 855 |
| end of the period | | | | | | |
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CONTINGENT LIABILITIES
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| EUR 1 000 | 1-3/2009 | 1-3/2008 | 1-12/2008 |
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| FOR OWN DEBT | | | |
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| Real estate mortgages | 24 045 | 5 045 | 24 045 |
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| Corporate mortgages | 50 000 | | 50 000 |
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| OTHER OWN COMMITMENTS | | | |
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| Operating leases, real estates | 18 748 | 18 902 | 19 389 |
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| Operating leases, machinery and | 2 757 | 3 031 | 3 214 |
| equipment | | | |
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| Guarantee commitment for financial | 1 445 | 1 536 | 1 468 |
| lease | | | |
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NOMINAL AND FAIR VALUES OF DERIVATIVE FINANCIAL INSTRUMENTS
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| EUR 1 000 | 1-3/2009 | 1-3/2008 | 1-12/2008 |
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| CURRENCY DERIVATIVES | | | |
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| Nominal value | 7 830 | 9 161 | 6 548 |
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| Fair value | -52 | 118 | 121 |
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| INTEREST RATE DERIVATIVES | | | |
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| Nominal value | 45 500 | 73 667 | 58 700 |
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| Fair value | -732 | 752 | -297 |
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| ELECTRICITY DERIVATIVES | | | |
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| Nominal value | 2 451 | 4 281 | 2 973 |
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| Fair value | -647 | 520 | -394 |
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| COMMODITY DERIVATIVES | | | |
--------------------------------------------------------------------------------
| Nominal value | 179 | | |
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| Fair value | -3 | | |
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Helsinki, 29 April 2009
SUOMINEN CORPORATION
Board of Directors
For addition information please contact:
Mr. Petri Rolig, President and CEO, tel. +358 (0)10 214 300
Mr. Arto Kiiskinen, Vice President and CFO, tel. +358 (0)10 214 300
