OLVI PLC INTERIM REPORT 30 APR 2009 at 9:45 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2009 (3 MONTHS)
January-March in brief:
+ The Group's net sales increased by 1.3 million euro to 47.1 (45.8) million
euro
+ The parent company Olvi plc's operating profit improved clearly by 0.8
million euro
+ The Group's full-year earnings outlook is unchanged
- The Group's operating profit fell 0.8 million euro short of the previous
year,amounting to 2.4 million euro
KEY RATIOS
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | Change % | 1-12/2008 |
--------------------------------------------------------------------------------
| Net sales, MEUR | 47.1 | 45.8 | 2.8 | 222.1 |
--------------------------------------------------------------------------------
| Operating profit, MEUR | 2.4 | 3.2 | -24.3 | 17.5 |
--------------------------------------------------------------------------------
| Gross capital expenditure, | 4.6 | 8.7 | -47.1 | 43.6 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.17 | 0.22 | | 1.22 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 8.82 | 8.83 | | 9.07 |
--------------------------------------------------------------------------------
| Equity to total assets, % | 42.8 | 47.7 | | 43.3 |
--------------------------------------------------------------------------------
| Gearing, % | 65.5 | 52.3 | | 62.9 |
--------------------------------------------------------------------------------
“Olvi Group's first-quarter performance was in line with plans. Our earnings
improved significantly in Finland, and we strengthened our overall market
position in the Baltic states as well as Belarus while the economic recession
imposed a challenge through changed consumer demand,” says Lasse Aho, Olvi plc's
Managing Director.
SALES VOLUME, NET SALES AND EARNINGS
Olvi Group
Olvi Group's sales in the first quarter of 2009 amounted to 78 (73) million
litres. This was 5 million litres more than in the previous year. OAO Lidskoe
Pivo's sales in January-March amounted to 15 million litres, which enabled an
increase in the Group's sales volume. First-quarter domestic sales declined by 9
million litres, and sales in the Baltic states declined by 4 million litres on
the previous year. Intra-Group sales declined by 4 million litres.
The Group's net sales from January to March amounted to 47.1 (45.8) million
euro. This was 1.3 million euro more than in the previous year. Net sales in
Finland amounted to 19.6 (23.3) million euro and aggregate net sales in the
Baltic states to 23.9 (25.8) million euro. First-quarter net sales in Finland
declined by 3.8 million euro. Net sales in the Baltic states fell 2.0 million
euro short of the previous year. First-quarter net sales in Belarus amounted to
5.6 million euro.
Olvi Group's operating profit for the first quarter stood at 2.4 (3.2) million
euro, or 5.1 (6.9) percent of net sales. The operating profit declined by 0.8
million euro. In Finland, the parent company Olvi plc's operating profit
improved by 0.8 million euro on the previous year, while operating profit in the
Baltic states declined by 1.3 million euro. Units in the Baltic states posted an
aggregate operating profit of 0.8 (2.1) million euro. OAO Lidskoe Pivo's
operating result was -0.2 million euro.
Olvi Group's profit after taxes in the period under review was on a par with the
previous year at 2.3 (2.3) million euro. Earnings per share calculated from the
profit belonging to parent company shareholders in the first quarter of 2009
stood at 0.17 (0.22) euro per share.
Owing to the seasonal character of the brewing industry, the majority of the
full-year net sales and operating profit is made during the second and third
quarters.
Parent company Olvi plc
The parent company Olvi plc's sales volume in January-March was 23 (32) million
litres. Sales declined by 9 million litres on the previous year.
According to statistics by the Federation of the Brewing and Soft Drinks
Industry, the Finnish beverage market diminished in January-March in all product
groups except long drinks. The largest decreases in sales volume were seen in
ciders and mineral waters.
Olvi plc's beer volumes declined by 39.4 percent in the first quarter because
Olvi plc was not involved in any significant special offer campaigns for beer
during these months. Aggregate volumes in other product groups were almost on a
par with the previous year. The sales growth of Olvi plc's long drinks clearly
outperformed the market average in the first quarter. The parent company's net
sales from January to March amounted to 19.6 (23.3) million euro, representing a
decline of 3.7 million euro on the previous year.
First-quarter operating profit improved significantly. Operating profit in
January-March stood at 1.8 (1.0) million euro, which was 9.0 (4.2) percent of
net sales. The operating profit increased by 0.8 million euro or 79.8 percent
compared to the previous year. Factors contributing to the profitability
improvement included increased average net sales price due to a reduction in
beer campaigning, increased efficiency of production operations and a reduction
in personnel costs.
AS A. Le Coq
The Estonian subsidiary AS A. Le Coq's first-quarter sales amounted to 23 (28)
million litres. The sales volume declined by 5 million litres, most of which was
intra-Group freighted work.
The beer sales volume remained on the previous year's level, but sales of
mineral waters, well-being beverages and long drinks declined. The sales of
ciders increased by 13.6 percent. In January-March, AS A. Le Coq's freighted
work for other Group companies declined by 4 million litres on the previous year
due to additional capacity acquired for subsidiaries in the other Baltic states.
During the first quarter, AS A. Le Coq became the largest beer manufacturer in
Estonia with an approximate market share of 41.0 (37.5) percent. AS A. Le Coq
was the market leader in terms of volume as well as value.
A. Le Coq Premium became the best-selling beer brand in Estonia in 2008. A. Le
Coq took fourth place in a ranking of most valued corporate brands in Estonia,
while male consumers ranked it at the very top. The consumer survey was carried
out by TNS Emor.
The market share of AS A. Le Coq's ciders increased to 57.5 (48.6) percent, and
the market share of its long drinks increased to 57.2 (55.4) percent.
AS A. Le Coq's net sales in January-March amounted to 13.1 (15.3) million euro,
a decline of 2.2 million euro.
Operating profit in January-March stood at 1.4 (2.1) million euro, which was
11.0 (13.5) percent of net sales. The operating profit declined by 0.7 million
euro compared to the previous year. Factors contributing to the weakened
performance included a decline in volume as well as a decline in the
proportional share of ciders and long drinks.
A/S Cesu Alus
The first-quarter 2009 sales of A/S Cesu Alus operating in Latvia were on a par
with the previous year at 12 (12) million litres.
The beer volume increased by 14.0 percent. Sales of ciders and long drinks
declined clearly. Sales of soft drinks were on a par with the previous year.
During the period, the market share of beer broke the 30-percent mark for the
first time ever, rising to 31.0 percent. The market share of ciders was 46.0
(32.0) percent, and of long drinks 35 (26) percent.
AS Cesu Alus's net sales in January-March amounted to 5.9 (6.0) million euro, a
decline of 0.1 million euro.
The operating result in January—March showed a loss at -0.4 (+0.1) million euro.
The weakened result was affected by intense price competition in the Latvian
market, due to which the average net sales price declined on the previous year,
the share of least expensive beer products in proportion to total demand
increased, and the share of the most profitable product groups, ciders and long
drinks, declined.
AB Ragutis
In the first quarter, the sales volume of AB Ragutis operating in Lithuania
improved to 10 (8) million litres. This was 2 million litres more than in the
previous year. The sales increase was attributable to beer, the new product
group kvass, as well as freighted work for other Group companies. Sales of
ciders and long drinks declined. The market position improved in beers, ciders
and long drinks. The market share of beers was 11.0 (10.0) percent, ciders 32.3
(29.0) and long drinks 22.1 (19.9) percent.
AB Ragutis's net sales from January to March amounted to 4.9 (4.5) million euro,
representing an increase of 0.4 million euro.
AB Ragutis's operating result for the first quarter was -0.3 (-0.1) million
euro, the difference of -0.2 million euro on the previous year being due to
declined proportions of ciders and long drinks.
OAO Lidskoe Pivo
The January-March 2009 sales of OAO Lidskoe Pivo operating in Belarus amounted
to 15 million litres. Sales of beer increased by 7.0 percent, kvass 180.0
percent, long drinks 8.0 percent and soft drinks 2.5 percent, while the sales of
mineral waters increased by 24.0 percent.
The company's net sales were 5.6 million euro, and the January-March operating
result was -0.2 million euro. The operating result was slightly negative due to
devaluation of the Belarusian rouble, product development efforts and increased
personnel costs.
However, OAO Lidskoe Pivo has investments denominated in United States dollars,
which created foreign exchange gains. The company's profit before taxes was 1.7
million euro, and after-tax profit for the period was 1.2 million euro.
OAO Lidskoe Pivo's income statement has been consolidated with Olvi Group as of
the beginning of 2009. The company's balance sheet was consolidated at the end
of fiscal 2008.
FINANCING AND INVESTMENTS
Olvi Group's balance sheet total at the end of March 2009 was 242.1 (192.0)
million euro. Equity per share in January-March was on a par with the previous
year at 8.82 (8.83) euro. At 42.8 (47.7) percent, the equity ratio declined
slightly on the previous year but remains at a healthy level. The amount of
interest-bearing liabilities was 88.3 (49.4) million euro, including current
liabilities of 42.7 (21.2) million euro.
During the period under review, Olvi Group's gross capital expenditure amounted
to 4.6 (8.7) million euro. The parent company Olvi plc accounted for 1.4 million
euro and the subsidiaries in the Baltic states for 2.6 million euro of the
total. OAO Lidskoe Pivo's gross capital expenditure in the first quarter was 0.7
million euro. The largest investments in Finland in 2009 will include the
extension and development of Olvi plc's pressure and fermentation tank cellar,
while the Baltic states will see the acquisition of a bottle washing machine for
AS A. Le Coq, an extension to the pressure tank cellar at A/S Cesu Alus, as well
as additional cooling capacity at AB Ragutis and A/S Cesu Alus. This year's
largest investments in Belarus will include extension of tank capacity to enable
sales growth, as well as a product storage building.
The gross capital expenditure also includes purchases made on finance lease.
PRODUCT DEVELOPMENT
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.
NEW PRODUCTS
In addition to the new product launches of April 2009 described in the financial
statement information, Olvi plc will introduce three juice drinks to the Finnish
market in the beginning of May. Juice-making competence in Olvi Group is
centralised with AS A. Le Coq in Estonia, which will produce the new
high-quality Olvi Raikas juice drinks. Olvi Group is the largest producer of
juices in Estonia, and its juice products have been ranked as the
highest-quality Estonian food products. The products will be sold in one-litre
reclosable TetraPak packaging.
Subsidiaries
In February, AS A. Le Coq extended its range of Arctic Sport beverages with a
new product containing 10 percent apple juice. February also marked the
introduction of preservative-free Aura Sweet Orange Nectar juice, as well as
pear and cranberry juice concentrates under the Aura brand. Dynami:t, the second
most selling energy drink in Estonia, was launched as a +10% Extra Energy
version. To celebrate the 200-year-old A. Le Coq trademark, the A. Le Coq
Special Red beer was introduced in March into the super premium segment. In
March, AS A. Le Coq also started the production of kvass, which is a traditional
home-style malt beverage. The product is made using the original method of
fermentation from malt and rye. Kvass contains a maximum of 0.8 percent alcohol
and is thus not considered an alcoholic beverage. The Aura Active Spritzer range
was complemented by a new flavour, pear. The product contains 15 percent pure
pear juice and mineral water. The Figuurisõbrad mineral waters are new
alternatives for health-conscious consumers. A 1.5-litre bottle provides 45
percent of the daily calcium requirement.
In January, A/S Cesu Alus launched two mixed alcoholic beverages, Beershake Beer
+ Cola and Beershake Beer + Tequila&Lime. Cesu R.U.M.Z. Cola was introduced to
the long drink segment. The existing Cesu Dzins long drink was complemented with
a parallel product Cesu Dzons in the Safari, Mai Tai, Green Lime and Blue Ice
flavours. The Estonian Special Red concept was also utilised in Latvia through
the introduction of Cesu Special Red beer in April in a similar 0.5-litre
transparent glass bottle. Dynami:t +10% Extra Energy and real kvass produced
through fermentation were also launched in Latvia.
In April, AB Ragutis introduced a version of Beershake under the names b-shake
Cola and b-shake Tequila Lemon. The product is similar to the Latvian one.
Dynami:t Extra Energy was also introduced in April. The company's long drink
brand Jamaica was expanded with the Kiwi-Lime flavour. In May, AB Ragutis will
expand its Fortas brand of beers through the introduction of Fortas Sviesus 5%
in cans. At the same time, Fortas Pilsner 4.7% will be introduced in 2-litre PET
bottles. AB Ragutis sells kvass under the Smetoniska Gira brand.
PERSONNEL
Olvi Group's average number of personnel in January-March was 2,032 (1,234), 347
(423) of them in Finland, 340 (394) in Estonia, 214 (219) in Latvia, 194 (198)
in Lithuania and 937 in Belarus. The Group's average number of personnel
increased by 798 people or 64.7 percent. The number of personnel in Finland and
the Baltic states declined by 139 people on the previous year. The total number
of personnel at the end of March was 2,031 (1,257).
GROUP STRUCTURE
At the end of March 2009, Olvi Group's holding in AS A. Le Coq was 100 percent,
in A/S Cesu Alus 98.2 percent, in AB Ragutis 99.57 percent, and in OAO Lidskoe
Pivo 51.0 percent.
Olvi plc's Finnish subsidiary Olvin Juomaa Oy, which was held on a 100-percent
basis, was considered unnecessary and dissolved at the end of 2008. The company
did not engage in any business activities.
RESOLUTIONS OF ANNUAL GENERAL MEETING 7 APRIL 2009
At their Annual General Meeting held on 7 April 2009, the shareholders of Olvi
plc adopted the closing of the accounts for the year 2008 and granted discharge
from liability to the members of the Board of Directors and Managing Director as
regards the fiscal year 2008.
In accordance with the Board's proposal, the General Meeting of Shareholders
decided that a dividend of 0.50 euro be paid on each K and A share for fiscal
2008. The dividend according to the decision represented 41.0 percent of
consolidated earnings per share. The dividend payout totalled 5.2 million euro.
The dividend was paid on 21 April 2009 to all shareholders recorded in the
company's register of shareholders maintained by the Finnish Central Securities
Depository Ltd on the record date 14 April 2009 at the latest. The payment of
dividends will expire on 23 April 2012.
Board members and auditors
The Annual General Meeting re-elected the members of the Board who were in
office in 2008: Mr. Heikki Hortling, Chairman of the Board, M.Sc. (Econ),
Iisalmi, Mr. Esa Lager, CFO, LL.M., M.Sc. (Econ), Kauniainen, Mr. Lauri Ratia,
Managing Director, M.Sc. (Eng), Helsinki, Mr. Heikki Sinnemaa, LL.M., Member of
the Bar, Iisalmi, and Mr. Harri Sivula, Managing Director, M.Adm.Sc., Tuusula.
The Annual General Meeting appointed PricewaterhouseCoopers Ltd, Authorised
Public Accountants, as the company's auditor, with Mr. Pekka Loikkanen,
Authorised Public Accountant, Kuopio, as the auditor in charge. Ms. Silja
Komulainen, Authorised Public Accountant, Sotkamo, was elected deputy auditor.
Organisation of the Board of Directors
At its organising meeting held on 7 April 2009, Olvi plc's Board of Directors
elected Mr. Heikki Hortling as the Chairman of the Board and Mr. Esa Lager as
the Vice Chairman of the Board.
Decision regarding the acquisition of own A shares
In accordance with the Board of Directors' proposal, the Annual General Meeting
decided to revoke all existing unused authorisations to acquire treasury shares
and authorise the Board of Directors to decide on the acquisition of the
company's own Series A shares using distributable funds. The authorisation is
valid for one year starting from the Annual 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.
The authorisation allows the Board of Directors to acquire the company's own
shares for use as consideration in case of any upcoming corporate acquisitions,
for the funding of investments, for the incentive and commitment scheme for key
personnel or for cancellation.
Decision regarding the transfer of own shares
In accordance with the Board of Directors' proposal, the Annual General Meeting
decided to revoke all existing unused authorisations for the transfer of own
shares and authorise the Board of Directors to decide on the transfer of any A
shares acquired on the company's own account within one year of the Annual
General Meeting. The authorisation comprises the transfer of all shares
purchased on the basis of acquisition authorisations granted to the Board of
Directors.
The authorisation grants the Board of Directors with the power to decide to whom
and in what order the shares held by the company shall be transferred. The Board
of Directors could transfer the company's own shares for use as consideration in
case of any upcoming corporate acquisitions, for the funding of investments or
for use within an incentive and commitment scheme for key personnel. The Board
of Directors is authorised to decide on the transfer price of the company's own
shares and on the bases for determining the transfer price.
BUSINESS RISKS AND UNCERTAINTIES IN THE NEAR TERM
The economic recession in the Baltic states has become even deeper, due to which
construction and industrial investments have come to an almost complete stop.
Unemployment has increased and caused a significant reduction in the amount of
disposable consumer funds. The Finnish economy is also in a decline, which is
reflected in consumer behaviour.
The markets of the brewing industry are declining in Finland as well as in the
Baltic states. As the consumers' purchasing power is declining and inflation is
going up, consumption will shift to less expensive products and product groups.
Excise tax hikes may increase private imports from countries with lower excise
rates, particularly from Estonia.
NEAR-TERM OUTLOOK
Olvi Group companies have good possibilities to retain their overall market
position across the entire operating area. Substantial investments made in
previous years will ensure sufficient capacity and cost-effective production of
versatile product ranges and packaging alternatives. We estimate Olvi Group's
operating profit to remain at the 2008 level or slightly improve in 2009.
Further information:
Lasse Aho, Managing Director
Phone +358 17 838 5200 or +358 400 203 600
OLVI PLC
Board of Directors
APPENDICES
- Income statement, Appendix 1
- Balance sheet, Appendix 2
- Changes in shareholders' equity, Appendix 3
- Cash flow statement, Appendix 4
- Notes to the interim report, Appendix 5
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi
APPENDIX 1
Olvi Group
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| STATEMENT OF COMPREHENSIVE INCOME | | | |
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 47080 | 45800 | 222124 |
--------------------------------------------------------------------------------
| Other operating income | 333 | 287 | 1005 |
--------------------------------------------------------------------------------
| Operating expenses | -40688 | -39600 | -191496 |
--------------------------------------------------------------------------------
| Depreciation and impairment | -4331 | -3325 | -14155 |
--------------------------------------------------------------------------------
| Operating profit | 2394 | 3162 | 17478 |
--------------------------------------------------------------------------------
| Financial income | 2083 | 35 | 247 |
--------------------------------------------------------------------------------
| Financial expenses | -1346 | -582 | -3420 |
--------------------------------------------------------------------------------
| Earnings before tax | 3131 | 2615 | 14305 |
--------------------------------------------------------------------------------
| Taxes *) | -852 | -303 | -1631 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE YEAR | 2279 | 2312 | 12674 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income items: | | | |
--------------------------------------------------------------------------------
| Translation differences related to | -4338 | 19 | -15 |
| foreign subsidiaries | | | |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE INCOME FOR THE | -2059 | 2331 | 12659 |
| YEAR | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of profit: | | | |
--------------------------------------------------------------------------------
| - parent company shareholders | 1731 | 2317 | 12684 |
--------------------------------------------------------------------------------
| - minority | 548 | -5 | -10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution of comprehensive profit: | | |
--------------------------------------------------------------------------------
| - parent company shareholders | -2559 | 2336 | 12670 |
--------------------------------------------------------------------------------
| - minority | 500 | -5 | -11 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Ratios calculated from the profit belonging to parent company shareholders: |
--------------------------------------------------------------------------------
| - earnings per share, euro | 0.17 | 0.22 | 1.22 |
--------------------------------------------------------------------------------
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| *) Taxes calculated from the profit for the review period. | |
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Olvi Group APPENDIX 2
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| BALANCE SHEET | | | |
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| | 31 Mar 2009 | 31 Mar 2008 | 31 Dec 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Tangible assets | 128711 | 102950 | 132028 |
--------------------------------------------------------------------------------
| Goodwill | 10788 | 10679 | 10743 |
--------------------------------------------------------------------------------
| Other intangible assets | 928 | 884 | 1023 |
--------------------------------------------------------------------------------
| Financial assets available for | 288 | 285 | 288 |
| sale | | | |
--------------------------------------------------------------------------------
| Other non-current assets | 429 | 5 | 429 |
| available for sale | | | |
--------------------------------------------------------------------------------
| Loan receivables and other | 123 | 119 | 350 |
| non-current receivables | | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 600 | 359 | 1042 |
--------------------------------------------------------------------------------
| Total non-current assets | 141867 | 115281 | 145903 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 37750 | 35486 | 33699 |
--------------------------------------------------------------------------------
| Accounts receivable and other | 42043 | 39561 | 48839 |
| receivables | | | |
--------------------------------------------------------------------------------
| Deferred tax receivables | 32 | 117 | 23 |
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| Liquid assets | 20386 | 1529 | 15748 |
--------------------------------------------------------------------------------
| Total current assets | 100211 | 76693 | 98309 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 242078 | 191974 | 244212 |
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--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Shareholders' equity held by parent company | | |
| shareholders | | |
--------------------------------------------------------------------------------
| Share capital | 20759 | 20759 | 20759 |
--------------------------------------------------------------------------------
| Other reserves | 1092 | 1092 | 1092 |
--------------------------------------------------------------------------------
| Treasury shares | -63 | -722 | -63 |
--------------------------------------------------------------------------------
| Translation differences | -4313 | 10 | -23 |
--------------------------------------------------------------------------------
| Retained earnings | 74070 | 70250 | 72339 |
--------------------------------------------------------------------------------
| | 91545 | 91389 | 94104 |
--------------------------------------------------------------------------------
| Minority interest | 12118 | 131 | 11618 |
--------------------------------------------------------------------------------
| Total shareholders' equity | 103663 | 91520 | 105722 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 45594 | 28140 | 42361 |
--------------------------------------------------------------------------------
| Interest-free liabilities | 2 | 0 | 4 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1407 | 1030 | 1421 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 42658 | 21212 | 39840 |
--------------------------------------------------------------------------------
| Accounts payable and other | 48754 | 50072 | 54864 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total liabilities | 138415 | 100454 | 138490 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' EQUITY AND | 242078 | 191974 | 244212 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
Olvi Group APPENDIX 3
CHANGES IN OLVI GROUP'S CONSOLIDATED SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder | 20759 | 857 | 127 |-722 | 108 | -9 | 67932 | 136 | 89188 |
| s' equity 1 | | | | | | | | | |
| Jan 2008 | | | | | | | | | |
--------------------------------------------------------------------------------
| Payment of | | | | | | | | | 0 |
| dividends | | | | | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | | | | 19 | 2312 | | 2331 |
| income | | | | | | | |
| for the year | | | | | | | |
--------------------------------------------------------------------------------
| Share of profit | | | | 5 | -5 | 0 |
| belonging to | | | | | | |
| the minority | | | | | | |
--------------------------------------------------------------------------------
| Shareholder | 20759 | 857 | 127 |-722 | 108 | 10 | 70249 | 131 | 91520 |
| s' equity | | | | | | | | | |
| 31 Mar 2008 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder | 20759 | 857 | 127 | -63 | 108 | -23 | 72339 | 11618 | 105722 |
| s' equity 1 | | | | | | | | | |
| Jan 2009 | | | | | | | | | |
--------------------------------------------------------------------------------
| Payment of | | | | | | | | | 0 |
| dividends | | | | | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | | | |-4290 | 2279 | -48 | -2059 |
| income | | | | | | | |
| for the year | | | | | | | |
--------------------------------------------------------------------------------
| Share of profit | | | | -548 | 548 | 0 |
| belonging to | | | | | | |
| the minority | | | | | | |
--------------------------------------------------------------------------------
| Shareholder | 20759 | 857 | 127 | -63 | 108 |-4313 | 74070 | 12118 | 103663 |
| s' equity | | | | | | | | | |
| 31 Mar 2009 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| A = Share capital |
--------------------------------------------------------------------------------
| B = Share premium account |
--------------------------------------------------------------------------------
| C = Legal reserve |
--------------------------------------------------------------------------------
| D = Treasury shares reserve |
--------------------------------------------------------------------------------
| E = Other reserves |
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| F = Translation differences |
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| G = Retained earnings |
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| H = Minority interest |
--------------------------------------------------------------------------------
| I = Total |
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Olvi Group APPENDIX 4
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| CASH FLOW STATEMENT | | | |
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit for the period | 2279 | 2313 | 12674 |
--------------------------------------------------------------------------------
| Adjustments to profit for the period | 3186 | 4179 | 18971 |
--------------------------------------------------------------------------------
| Change in net working capital | -3005 | -4390 | -5282 |
--------------------------------------------------------------------------------
| Interest paid | -826 | -298 | -2959 |
--------------------------------------------------------------------------------
| Interest received | 249 | 35 | 234 |
--------------------------------------------------------------------------------
| Taxes paid | 508 | -641 | -3054 |
--------------------------------------------------------------------------------
| Cash flow from operations (A) | 2391 | 1198 | 20584 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | -3914 | -8392 | -32160 |
--------------------------------------------------------------------------------
| Disposals of fixed assets | 114 | 14 | 245 |
--------------------------------------------------------------------------------
| Cash flow from investments (B) | -3800 | -8378 | -31915 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Withdrawals of loans | 19746 | 7706 | 78000 |
--------------------------------------------------------------------------------
| Repayments of loans | -13699 | -3329 | -46965 |
--------------------------------------------------------------------------------
| Acquisition of treasury shares | | | 0 |
--------------------------------------------------------------------------------
| Dividends paid | | 0 | -8288 |
--------------------------------------------------------------------------------
| Cash flow from financing (C) | 6047 | 4377 | 22747 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (+)/decrease (-) in liquid | 4638 | -2803 | 11416 |
| assets (A+B+C) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid assets 1 January | 15748 | 4332 | 4332 |
--------------------------------------------------------------------------------
| Liquid assets 31 Mar/31 Dec | 20386 | 1529 | 15748 |
--------------------------------------------------------------------------------
| Change in liquid assets | 4638 | -2803 | 11416 |
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Olvi Group APPENDIX 5
NOTES TO THE INTERIM REPORT
The accounting policies used for this interim report are the same as those used
for the annual financial statements 2008.
The accounting policies are presented in the Annual Report 2008 that was
published on 31 March 2009. The information disclosed in the interim report is
unaudited.
The interim report information is presented in thousands of euros (EUR 1,000).
For the sake of presentation, individual figures and totals have been rounded to
full thousands, which causes rounding differences in additions.
The Group has adopted the following new or revised standards in 2009:
- IAS 1 (Revised), Presentation of Financial Statements. The Group presents all
income and expense items recognised in the financial period in one statement of
comprehensive income.
- IFRS 8, Operating Segments. The reporting of geographical segment information
corresponds to the company's internal reporting.
- IAS 23, Borrowing Costs. The Group will start to capitalise borrowing costs in
projects that start in 2009 and fulfil the conditions specified in the standard.
- IFRS 2, Share-based Payments. Group management is investigating the effects of
amendments to the standard.
- IFRIC 11, IFRS 2, Group and Treasury Share Transactions. This interpretation
does not have any substantial effect on the Group.
1. SEGMENT INFORMATION
The segments reported to Olvi Group's chief operating decision maker are based
on the geographical locations of Group companies and are Finland, Estonia,
Latvia, Lithuania and Belarus. The products and services of geographical
segments are produced in a specific economic environment with risks and
profitability deviating from the risks and profitability of the economic
environment of other geographical segments.
--------------------------------------------------------------------------------
| SALES BY GEOGRAPHICAL SEGMENT (1,000 litres) | |
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 78217 | 72958 | 340938 |
--------------------------------------------------------------------------------
| Finland | 22713 | 32408 | 138155 |
--------------------------------------------------------------------------------
| Estonia | 22586 | 28176 | 125170 |
--------------------------------------------------------------------------------
| Latvia | 11765 | 11710 | 58753 |
--------------------------------------------------------------------------------
| Lithuania | 9893 | 8316 | 44085 |
--------------------------------------------------------------------------------
| Belarus | 15282 | | |
--------------------------------------------------------------------------------
| - sales between segments | -4022 | -7652 | -25225 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000) | |
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 47080 | 45800 | 222124 |
--------------------------------------------------------------------------------
| Finland | 19562 | 23319 | 106291 |
--------------------------------------------------------------------------------
| Estonia | 13082 | 15301 | 71995 |
--------------------------------------------------------------------------------
| Latvia | 5867 | 5986 | 31366 |
--------------------------------------------------------------------------------
| Lithuania | 4917 | 4541 | 23825 |
--------------------------------------------------------------------------------
| Belarus | 5581 | | |
--------------------------------------------------------------------------------
| - sales between segments | -1929 | -3347 | -11352 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Olvi Group total | 2394 | 3162 | 17477 |
--------------------------------------------------------------------------------
| Finland | 1750 | 974 | 4252 |
--------------------------------------------------------------------------------
| Estonia | 1435 | 2064 | 11618 |
--------------------------------------------------------------------------------
| Latvia | -384 | 113 | 1281 |
--------------------------------------------------------------------------------
| Lithuania | -274 | -115 | 32 |
--------------------------------------------------------------------------------
| Belarus | -165 | | |
--------------------------------------------------------------------------------
| - eliminations | 32 | 126 | 294 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. PERSONNEL ON AVERAGE | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finland | 347 | 423 | 431 |
--------------------------------------------------------------------------------
| Estonia | 340 | 394 | 388 |
--------------------------------------------------------------------------------
| Latvia | 214 | 219 | 231 |
--------------------------------------------------------------------------------
| Lithuania | 194 | 198 | 206 |
--------------------------------------------------------------------------------
| Belarus | 937 | 0 | 0 |
--------------------------------------------------------------------------------
| Total | 2032 | 1234 | 1256 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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 | | | |
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Managing Directors | 237 | 299 | 995 |
--------------------------------------------------------------------------------
| Chairman of the Board | 53 | 52 | 209 |
--------------------------------------------------------------------------------
| Other members of the Board | 29 | 29 | 109 |
--------------------------------------------------------------------------------
| Total | 319 | 380 | 1313 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. SHARES AND SHARE CAPITAL | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 31 Mar 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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 0.50 euro per share for
2008 (0.80 euro per share for 2007), totalling 5.2 (8.3) million euro. The
dividends were paid on 21 April 2009.
--------------------------------------------------------------------------------
| Nominal value of A and K shares, EUR | 2,00 |
--------------------------------------------------------------------------------
| 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. SHARE-BASED PAYMENTS
Olvi plc's Board of Directors decided on 26 January 2006 on a share-based
incentive scheme for Olvi Group's key personnel.
The share-based bonus scheme is a part of the incentive and commitment scheme
for the Group's key personnel and its purpose is to combine the objectives of
shareholders and key personnel to improve the company's value.
The scheme includes two vesting periods, the first one extending from 1 January
2006 to 31 December 2007 and the second one from 1 January 2008 to 31 December
2010. The amount of bonuses payable out of the scheme is linked to Olvi Group's
net sales and the operating profit percentage in relation to net sales.
The bonuses are payable partially in Olvi plc's Series A shares and partially in
cash. The proportion payable in cash covers the taxes and other statutory fees
arising from the share-based bonuses. The bonuses for the first vesting period
were paid in April 2008. The shares carry a ban on transferring them within two
years of reception.
Any bonuses for the second vesting period will be paid in April 2011. 50 percent
of the shares received as bonus for the second vesting period may be transferred
after one year of reception, and 100 percent after two years of reception. The
right to dividends begins when the shares are transferred to the key employees'
book-entry accounts.
On the basis of this incentive scheme, a total of 48,000 Olvi plc Series A
shares may become payable in 2011 for the second vesting period if the targets
are achieved in full.
The target group of the scheme currently includes 21 key employees.
No accounting entries associated with the 2008-2010 vesting period were
recognised in January-March 2009.
Olvi Group has no warrants or options.
6. TREASURY SHARES
On 10 April 2008, the General Meeting of Shareholders of Olvi plc decided to
authorise the Board of Directors of Olvi plc 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.
From January to March 2009, the Board of Directors of Olvi plc has not exercised
the authorisation granted by the General Meeting to acquire more treasury
shares.
Also, from January to March 2009, the Board of Directors has not exercised the
authorisation granted by the General Meeting to transfer any treasury shares.
At the end of March 2009, Olvi plc held a total of 2,400 of its own Series A
shares acquired for a price of 54 thousand euro. Treasury shares held by Olvi
plc represent 0.02 percent of the share capital and 0.01 percent of the
aggregate number of votes. The treasury shares represent 0.03 percent of all
Series A shares and associated votes.
--------------------------------------------------------------------------------
| 7. NUMBER OF SHARES *) | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - average | 10377004 | 10347404 | 10368444 |
--------------------------------------------------------------------------------
| - at end of period | 10377004 | 10347404 | 10377004 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Treasury shares deducted. | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8. TRADING OF SERIES A SHARES ON THE | | |
| HELSINKI STOCK EXCHANGE | | |
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading volume of Olvi A | 296709 | 580945 | 1622708 |
| shares | | | |
--------------------------------------------------------------------------------
| Total trading volume, EUR | 3808 | 14114 | 35436 |
| 1,000 | | | |
--------------------------------------------------------------------------------
| Traded shares in proportion to | | | |
--------------------------------------------------------------------------------
| all Series A shares, % | 3.5 | 6.8 | 19.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average share price, EUR | 13.28 | 23.88 | 20.82 |
--------------------------------------------------------------------------------
| Price on the closing date, EUR | 13.20 | 26.10 | 15.59 |
--------------------------------------------------------------------------------
| Highest quote, EUR | 15.00 | 26.55 | 27.00 |
--------------------------------------------------------------------------------
| Lowest quote, EUR | 12.80 | 20.00 | 12.50 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 9. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 MARCH 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Book entries | Votes | Shareholders |
--------------------------------------------------------------------------------
| | qty | % | qty | % | qty | % |
--------------------------------------------------------------------------------
| Finnish total | 8251576 | 79.51 | 42736272 | 93.23 | 6608 | 99.4 |
--------------------------------------------------------------------------------
| Foreign total | 228386 | 2.20 | 1200122 | 2.62 | 32 | 0.5 |
--------------------------------------------------------------------------------
| Nominee-regist | 1000 | 0.01 | 1000 | 0.00 | 1 | 0.0 |
| ered (foreign) | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
| Nominee-regist | 1898442 | 18.29 | 1898442 | 4.14 | 6 | 0.1 |
| ered (Finnish) | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
| Total | 1037940 | 100.00 | 45835836 | 100.00 | 6647 | 100.00 |
| | 4 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 10. LARGEST SHAREHOLDERS ON 31 MARCH | | | | |
| 2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Series | Series | Total | % | Votes | % |
| | K | A | | | | |
--------------------------------------------------------------------------------
| 1. Olvi Foundation | 118195 | 421286 | 1603238 | 15.45 | 2406032 | 52.49 |
| | 2 | | | | 6 | |
--------------------------------------------------------------------------------
| 2. Hortling Heikki | 450712 | 86380 | 537092 | 5.17 | 9100620 | 19.85 |
| Wilhelm *) | | | | | | |
--------------------------------------------------------------------------------
| 3. The Heirs of | 93552 | 12624 | 106176 | 1.02 | 1883664 | 4.11 |
| Hortling | | | | | | |
| Kalle | | | | | | |
| Einari | | | | | | |
--------------------------------------------------------------------------------
| 4. Hortling Timo | 82912 | 17304 | 100216 | 0.97 | 1675544 | 3.66 |
| Einari | | | | | | |
--------------------------------------------------------------------------------
| 5. Skandinaviska Enskilda | 123887 | 1238871 | 11.94 | 1238871 | 2.70 |
| Banken, | 1 | | | | |
| nominee register | | | | | |
--------------------------------------------------------------------------------
| 6. Hortling-Rinne | 51144 | 1050 | 52194 | 0.50 | 1023930 | 2.23 |
| Marit | | | | | | |
--------------------------------------------------------------------------------
| 7. Nordea Bank Finland plc, | 551257 | 551257 | 5.31 | 551257 | 1.20 |
| | | | | | |
| nominee register | | | | | |
--------------------------------------------------------------------------------
| 8. Ilmarinen Mutual Pension | 515748 | 515748 | 4.97 | 515748 | 1.13 |
| | | | | | |
| Insurance Company | | | | | |
--------------------------------------------------------------------------------
| 9. Autocarrera Oy Ab | | 221891 | 221891 | 2.14 | 221891 | 0.48 |
--------------------------------------------------------------------------------
| 10. Kamprad Ingvar | | 200000 | 200000 | 1.93 | 200000 | 0.44 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Others | 5856 | 5246865| 5252721 | 50.62 | 5363985 | 11.71 |
| | | | | | | |
--------------------------------------------------------------------------------
| 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. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 11. PROPERTY, PLANT AND EQUIPMENT | | |
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase | 4555 | 8576 | |
--------------------------------------------------------------------------------
| Decrease | -1046 | -81 | |
--------------------------------------------------------------------------------
| Total | 3509 | 8495 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 12. CONTINGENT LIABILITIES | 31 Mar 2009 | 31 Mar | 31 Dec |
| | | 2008 | 2008 |
--------------------------------------------------------------------------------
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts for which mortgages have been given as | | |
| collateral | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | | | |
--------------------------------------------------------------------------------
| For own commitments | 1118 | 0 | 1594 |
--------------------------------------------------------------------------------
| For others | 0 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Pledges and contingent | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| For own commitments | 10809 | 1134 | 6227 |
--------------------------------------------------------------------------------
| For others | 4 | 0 | 5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing liabilities: | | | |
--------------------------------------------------------------------------------
| Due within one year | 774 | 765 | 834 |
--------------------------------------------------------------------------------
| Due within 1 to 5 years | 715 | 850 | 1055 |
--------------------------------------------------------------------------------
| Due in more than 5 years | | | |
--------------------------------------------------------------------------------
| Total leasing liabilities | 1489 | 1615 | 1889 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Package liabilities | 7111 | 4943 | 6402 |
--------------------------------------------------------------------------------
| Other liabilities | 1980 | 1980 | 1980 |
--------------------------------------------------------------------------------
13. 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
