Raisio plc, Interim Report 5 May 2009, 8:00 a.m.
INTERIM REPORT 1 January - 31 March 2009
RAISIO IMPROVED ITS RESULTS
- Raisio's net sales in January-March totalled EUR 98.6 million (EUR 118.9
million
in January-March 2008).
- The Group's EBIT in the first quarter was up nearly 20 per cent to EUR 5.0
million (EUR 4.2 million and, including one-off items, EUR 8.4 million),
accounting for 5.1 per cent of net sales.
- Cash flow from operations in January-March was EUR +5.4 million (EUR -10.1
million).
- Raisio's estimate of the Group's outlook for 2009 remains unchanged.
The figures for the comparison period are given in brackets in the text.
Key figures, result from continuing operations excluding one-off items
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 2008 |
--------------------------------------------------------------------------------
| Net sales, EUR million | 98.6 | 118.9 | 504.0 |
--------------------------------------------------------------------------------
| EBIT, EUR million | 5.0 | 4.2 | 24.1 |
--------------------------------------------------------------------------------
| % of net sales | 5.1 | 3.5 | 4.8 |
--------------------------------------------------------------------------------
| Profit before tax, EUR million | 4.7 | 4.2 | 23.3 |
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | 0.02 | 0.02 | 0.12 |
--------------------------------------------------------------------------------
Key figures, balance sheet
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Return on investment, % | 6.7 | 12.3 | 9.8 |
--------------------------------------------------------------------------------
| Equity ratio, % | 75.8 | 77.1 | 77.9 |
--------------------------------------------------------------------------------
| Net gearing, % | -22.9 | -4.5 | -20.8 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.74 | 1.70 | 1.79 |
--------------------------------------------------------------------------------
CEO Matti Rihko
“Raisio's first quarter was much as forecast and volatility grew sharper, but
the company managed to even them out. Our EBIT gives reason for satisfaction in
view of the global economic situation. Economical, ecological and healthy
products sold under strong and safe brands appear to be doing well in this
recession. Despite its setbacks, the Feed & Malt Division also reported a
positive EBIT.
The Salmonella Tennessee case and its handling has further emphasised the key
role played by a skilled staff. Raisio Feed will compensate its livestock
producers for damages caused by salmonella in compliance with the Feed Act. It
is impossible to estimate the overall amount of compensation at this time, but
the company does have a comprehensive insurance cover.
Raisio is operationally well equipped to meet demanding challenges. Furthermore,
Raisio is capable of playing an active role in the consolidation process of the
food industry if there opens up interesting opportunities for Raisio's
shareholders.
As a pioneer in plant-based and ecological nutrition, Raisio added as the
world's first food company an H2O label to a package, indicating the overall
water consumption of the product. Now Elovena oat flake package has two labels:
one for carbon dioxide emissions and another for overall water consumption. If
consumers find that the new H2O label gives them the information they need for
consumption choices, Raisio will enlarge the labelling to other products as
well.”
RESULT FROM CONTINUING OPERATIONS
The Group's net sales in January-March totalled EUR 98.6 million (EUR 118.9
million). The drop in net sales resulted from the scheduling of deliveries and
the impact that lower feed raw materials had on product prices. The Food
Division's net sales amounted to EUR 44.0 million (EUR 49.0 million), while that
of Feed & Malt was EUR 49.3 million (EUR 64.3 million) and that of Ingredients
EUR 11.6 million (EUR 12.7 million). Net sales from outside Finland represented
34.8 per cent (36.4%) of the total, or EUR 34.3 million (EUR 43.3 million).
The Group's first-quarter EBIT was up nearly 20 per cent from the comparison
period, totalling EUR 5.0 million (EUR 4.2 million and, including one-off items,
EUR 8.4 million). The Food Division's EBIT was EUR 2.0 million (EUR 0.6 million
and, including one-off items, EUR 4.8 million). The EBIT of the Feed & Malt
Division was EUR 0.1 million (EUR 1.7 million), that of Ingredients EUR 4.4
million (EUR 3.3 million) and that of other operations EUR -1.1 million (EUR
‑0.8 million). The Food Division's first-quarter EBIT in 2008 includes a one-off
income item of EUR 4.2 million from the dissolution of joint ventures with
Lantmännen, a Swedish corporation. Depreciation, allocated to operations in the
income statement, totalled EUR 4.4 million (EUR 4.0 million) in January-March.
The first-quarter profit before tax was EUR 4.7 million (EUR 4.2 million and,
including one-off items, EUR 8.4 million). The Group's net financial items in
January-March totalled EUR -0.3 million (EUR -0.1 million).
Raisio's profit after tax was EUR 3.1 million (EUR 3.1 million and, including
one-off items, EUR 7.3 million). In January-March, earnings per share were EUR
0.02 (EUR 0.02 and, including one-off items, EUR 0.05). Return on investment was
6.7 per cent (12.3%).
BALANCE SHEET AND FINANCIAL POSITION
At the end of March, Raisio's balance sheet total was EUR 363.2 million (EUR
364.0 million on 31 December 2008) and shareholders' equity amounted to EUR
271.3 million (EUR 279.4 million on 31 December 2008). Equity per share at the
end of March was EUR 1.74 (EUR 1.79 on 31 December 2008).
Raisio's interest-bearing financial debt was EUR 18.8 million at the end of
March (EUR 19.7 million on 31 December 2008). Net interest-bearing financial
debt was EUR -62.2 million (EUR -58.2 million on 31 December 2008). The equity
ratio at the end of March was 75.8 per cent (77.9% on 31 December 2008), and
gearing ratio was -22.9 per cent (-20.8% on 31 December 2008). Cash flow from
operations in January-March was EUR +5.4 million (EUR -10.1 million). Working
capital was EUR 90.3 million at the end of the review period (EUR 88.9 million
on 31 December 2008).
The Group's gross investments in the first quarter totalled EUR 1.4 million (EUR
17.3 million), or 1.4 per cent (14.5%) of net sales. Investments in the
comparison period included the acquisition cost of Melia Ltd's shares from
Lantmännen, EUR 12.7 million.
CONTINUING OPERATIONS
Food
Economical, ecological and healthy products sold under strong brands do well in
recession. The Food Division's net sales in January-March totalled EUR 44.0
million (EUR 49.0 million). Net sales from Northern Europe decreased as a result
of changes in exchange rates and the discontinuation of unprofitable private
label sales in Sweden. The drop in Eastern European net sales was caused by
exchange rate changes, though sales in Poland were up year-over-year and those
in Russia remained at the previous year's level.
The Food Division's sales volumes remained on a par with those of the comparison
period, although the production of GoGreen products, among others, ended at the
non-dairy plant in Turku. In the Finnish retail trade, the sales of Raisio's
main brands continued to rise in terms of value and volume.
Elovena snack drinks were the biggest new product launch in Finland in 2008, and
in early 2009 the drinks were successfully launched in Sweden. They are now well
established in Finland, having sold over 3 million packages. Raisio also added a
CO2 emissions label to its Elovena snack drinks in Finland and Sweden. Swedish
consumers are well aware of the environmental impacts of their choices and have
shown great enthusiasm for the new label.
In early 2009, Raisio launched milk-free drinks and snacks under the Carlshamn
Mejeri brand in Sweden. The sales of plant-based products are seeing steep
growth in Sweden, and Raisio's products are an ideal answer to the increasing
demand. The company's product range includes oat, soy and rice drinks, soy-based
yoghurts and oat-based snack drinks. The products have been well received by
both trade and consumers.
The most significant product launch in Finland this year has been the successful
incorporation of convenient baking mixes into the Sunnuntai product family. The
new mixes are a much needed addition to the baking category, which is seeing its
first upturn in many years. Every year, Raisio introduces interesting new
products into the Elovena, Sunnuntai and Keiju product families, and expands
their product ranges and market areas.
In Poland, Benecol spreads command nearly 70 per cent of the market in
cholesterol-lowering functional foods, and sales continued to grow steeply. The
sales of Benecol drinks, which came under Raisio's control in Finland last year,
have developed positively and the overall market has grown.
Key figures for the Food Division
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 2008 |
--------------------------------------------------------------------------------
| Net sales, EUR million | 44.0 | 49.0 | 201.8 |
--------------------------------------------------------------------------------
| Northern Europe, EUR million | 31.6 | 35.2 | 144.8 |
--------------------------------------------------------------------------------
| Eastern Europe, EUR million | 13.7 | 15.5 | 62.7 |
--------------------------------------------------------------------------------
| EBIT, EUR million | 2.0 | 4.8 | 9.7 |
--------------------------------------------------------------------------------
| One-off items, EUR million | 0.0 | 4.2 | 4.2 |
--------------------------------------------------------------------------------
| EBIT excluding one-off items, EUR | 2.0 | 0.6 | 5.5 |
| million | | | |
--------------------------------------------------------------------------------
| % of net sales | 4.6 | 1.2 | 2.7 |
--------------------------------------------------------------------------------
| Investments, EUR million | 0.5 | 13.8 | 16.6 |
--------------------------------------------------------------------------------
| Net assets, EUR million | 78.5 | 86.0 | 81.6 |
--------------------------------------------------------------------------------
The Food Division's EBIT in January-March was EUR 2.0 million (EUR 0.6 million
and, including one-off items, EUR 4.8 million), accounting for 4.6 per cent
(1.2%) of net sales. The improvement mainly came from the weaker markets picking
up and Russia, for example, reported a positive operational result in the first
quarter. The profitability of Polish operations remained good and on a par with
the comparison period. The EBIT of Northern European operations improved
year-over-year thanks to cost savings, the discontinuation of unprofitable
private label sales in Sweden, as well as further enhancement measures taken in
the order-supply chain, which enhanced the accuracy of forecasts, raised the
reliability of product deliveries and reduced wastage. Persistent development
work has made our order-supply chain processes extremely efficient.
Raisio will continue to launch innovative products based on consumer needs and
to expand into new product segments and market areas. It will put more emphasis
on the growing milk-free snack drink segment and will expand the product range.
The brand reform in Finland will focus on the HoReCa sector. In retail products,
Raisio will concentrate on the customer-orientation and development of the
product ranges sold under its four main brands: Elovena, Sunnuntai, Benecol and
Keiju.
The Food Division's short-term risks are related to exchange rate changes and
their impact on competitiveness, as well as to possible changes in consumer
behaviour in a drawn-out recession.
Feed & Malt
The Feed & Malt Division's net sales in January-March totalled EUR 49.3 million
(EUR 64.3 million). The decrease came from the drop in raw material prices being
transferred to product prices and from the overall reduction in feed market
volumes. Malt deliveries were temporarily far below normal during two months. In
the oil milling business, the volume and market prices of crushed rapeseed and
rapeseed oil fell short of the comparison period.
The volume drop in the overall feed market was caused by a decrease in the
production of pork and poultry. Raisio's market position has not changed
notably, and despite the salmonella case, the volume of daily deliveries at the
end of March did not differ from the average volume for February. As concerns
malt, the global economic crisis has led to a reduction in beer consumption.
Furthermore, breweries have had large transition period stocks, which have
affected the timing of deliveries.
As a result of codetermination talks, Raisio will lay off its staff at the oil
milling plant for a maximum of 90 days. The lay-offs will commence in May 2009,
affecting 31 people. The effects of the global economic crisis are also evident
in Raisio's vegetable oil business, taking the form of price drops and a marked
decrease in biodiesel production. Weaker demand leads to growing stocks and a
sharp decrease in profitability. The profitability of the Finnish vegetable oil
industry is also weakened by the scant availability of domestic raw material,
leading to the use of imported seed.
In early March, Raisio's self-monitoring operations detected Salmonella
Tennessee bacteria in egg-producing and pig farm feeds at the feed plant in
Raisio. According to studies conducted by the Finnish Food Safety Authority and
Raisio Feed, the bacteria got onto production line 7 and into products
manufactured on it through the cooling system's replacement air. In all of
Raisio Feed's 61 years, this was the first salmonella outbreak to hit the
company's production line and products. A key observation concerning salmonella
insurance is that the strict product liability set by the Feed Act does not, as
such, oblige a feed industry player to acquire comprehensive product liability
insurance, thus undermining the legal security of producers. Since Raisio Feed
is a big company and capable of handling its responsibilities in compliance with
the Feed Act, producers will not end up paying for the costs. The company has a
comprehensive insurance cover as for general liability and product liability.
According to both the Ministry of Agriculture and Forestry and the Finnish Food
Safety Authority, no mistakes or negligence have been found in Raisio Feed's
operations. The safety of consumers has not been at risk at any time. Two
erroneous pieces of information still persist to be corrected. Firstly,
according to the Finnish Food Safety Authority, positive environmental samples
are found from all players in the sector, but this does not jeopardise the food
supply chain's freedom from salmonella. Secondly, most of the 47 feed industry
players registered in the list of positive samples maintained by the Association
for Animal Disease Prevention do not heat their feed. In other words, it is
misleading to link responsibility to feed heating.
Key figures for the Feed & Malt division
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 2008 |
--------------------------------------------------------------------------------
| Net sales, EUR million | 49.3 | 64.3 | 282.7 |
--------------------------------------------------------------------------------
| Feed, EUR million | 44.3 | 53.0 | 235.9 |
--------------------------------------------------------------------------------
| Malt, EUR million | 4.4 | 9.3 | 43.5 |
--------------------------------------------------------------------------------
| Other, EUR million | 0.7 | 2.3 | 4.1 |
--------------------------------------------------------------------------------
| EBIT, EUR million | 0.1 | 1.7 | 12.3 |
--------------------------------------------------------------------------------
| One-off items, EUR million | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| EBIT excluding one-off items, EUR | 0.1 | 1.7 | 12.3 |
| million | | | |
--------------------------------------------------------------------------------
| % of net sales | 0.1 | 2.6 | 4.3 |
--------------------------------------------------------------------------------
| Investments, EUR million | 0.6 | 2.3 | 9.3 |
--------------------------------------------------------------------------------
| Net assets, EUR million | 84.8 | 104.0 | 81.7 |
--------------------------------------------------------------------------------
Despite the setbacks, the Feed & Malt Division recorded a profitable EBIT in the
first quarter. The salmonella case did not weaken demand at the end of March,
but cleaning expenses of Raisio factory and feed recalls from farms led to a
considerable increase in expenses.
The Feed & Malt Division's EBIT in January-March totalled EUR 0.1 million (EUR
1.7 million). The year-over-year decrease in first-quarter EBIT resulted from
the timing of malt deliveries, as well as the weaker profitability of oil
milling following a decrease in demand.
Ingredients
The Ingredients Division's net sales in January-March totalled EUR 11.6 million
(EUR 12.7 million). Net sales were down on the comparison period due to the
timing of plant stanol ester deliveries. However, strong growth continued in the
sales of Benecol products produced by Raisio's partners. Growth was strongest in
Poland and the UK, but Benecol sales also increased in Greece, Switzerland,
Ireland and Belgium in January-March.
In the first quarter, Benecol became a market leader in cholesterol-lowering
functional foods also in the UK. Its market leadership further strengthened in
Poland. The good development in sales is a result of a persistent strategy
implementation and a strong brand.
Key figures for the Ingredients Division
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 2008 |
--------------------------------------------------------------------------------
| Net sales, EUR million | 11.6 | 12.7 | 44.3 |
--------------------------------------------------------------------------------
| EBIT, EUR million | 4.4 | 3.3 | 10.0 |
--------------------------------------------------------------------------------
| One-off items, EUR million | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| EBIT excluding one-off items, EUR | 4.4 | 3.3 | 10.0 |
| million | | | |
--------------------------------------------------------------------------------
| % of net sales | 37.7 | 25.9 | 22.5 |
--------------------------------------------------------------------------------
| Investments, EUR million | 0.1 | 0.7 | 1.3 |
--------------------------------------------------------------------------------
| Net assets, EUR million | 40.3 | 43.9 | 38.3 |
--------------------------------------------------------------------------------
The Ingredients Division's EBIT in January-March was EUR 4.4 million (EUR 3.3
million), or 37.7 per cent of net sales. It was up on the comparison period
mainly due to changes in the timing of expenses. In January-March, the
Division's fixed expenses were exceptionally low in sales, marketing and product
development. The volatility in expenses will level off in the coming quarters.
The launch of Benecol products in three Asian countries is still in early
stages, but thanks to systematic work, Raisio and its partners now offer
cholesterol-lowering functional foods to local consumers. However, it will take
time to create awareness for the products and brand among consumers and the
scientific community. Benecol products got off to a good start in Thailand.
In January 2009, Raisio's Benecol innovation - plant stanol ester - was named
one of the ten greatest discoveries in nutrition worldwide. All the discoveries
were presented in the European Journal of Clinical Nutrition. The nominations
were based on the views of world-leading nutrition researchers and on solid
research data. Superior research evidence and efficacy were the features
emphasised in conjunction with plant stanol ester.
Raisio will continue to prepare for product launches in Asia and North and South
America. Entry into new markets is expected to lead to long-term growth in the
global market. Most of the growth in 2009 is expected to take place in Europe,
where Benecol products have an established position. It is difficult to forecast
the impact that a drawn-out recession might have on consumer purchase behaviour.
No negative effects have been detected to date.
RESEARCH AND DEVELOPMENT
Raisio's research and development is an important part of the chain that
introduces new products on the market based on consumer and customer needs. R&D
in food emphasises healthiness, convenience and environmental friendliness,
emphasising flavour and pleasure. In feeds, R&D focuses on developing feed mixes
and feeding solutions that ensure the well-being and health of animals, improve
the nutritional properties of farm animal products and are increasingly positive
in terms of their environmental impacts. Research and development inputs in the
first quarter amounted to EUR 1.4 million (EUR 1.5 million), or 1.4 per cent
(1.3%) of net sales.
PERSONNEL
Raisio employed 948 people at the end of March (960 on 31 December 2008), 32.3
per cent of whom worked outside Finland (32.3% on 31 December 2008). At the end
of March, the Food Division had 562, Feed & Malt 257, Ingredients 63 and service
functions 66 employees.
Pasi Lähdetie, Vice President, Grain Trade Operations, was appointed member of
the Group Management Team on 1 March 2009.
SHARES AND SHAREHOLDERS
The number of Raisio plc's free shares that were traded on NASDAQ OMX Helsinki
in January-March totalled 5.6 million (8.3 million). The value of trading was
EUR 8.8 million (EUR 12.3 million), and the average price was EUR 1.58 (EUR
1.48). The closing price on 31 March 2009 was EUR 1.49.
A total of 0.1 million restricted shares (0.1 million) were traded in
January-March. The value of trading was EUR 0.2 million (EUR 0.2 million), and
the average price was EUR 1.63 (EUR 1.57). The closing price on 31 March 2009
was EUR 1.60.
On 31 March 2009, the Group had a total of 37,238 registered shareholders
(37,269 on 31 December 2008). Foreign ownership of the entire share capital was
15.2 per cent (14.8% on 31 December 2008).
Raisio's market capitalisation at the end of March amounted to EUR 249.9 million
(EUR 248.6 million on 31 December 2008). Excluding the company shares held by
the Group, the company's market capitalisation was EUR 235.9 million (EUR 234.8
million on 31 December 2008).
At the end of the review period, Raisio plc held 9,158,500 free shares and
201,295 restricted shares. Of these, 3,487 restricted shares were repurchased in
the review period based on the authorisation given by the 2008 Annual General
Meeting. The number of free shares held by the company accounts for 7.01 per
cent of all free shares and the votes they represent, while the corresponding
figure for restricted shares is 0.58 per cent. In all, the company shares held
by the Group represent 5.67 per cent of the company's share capital and 1.61 per
cent of overall votes. The share repurchases initiated in September 2008 ended
on 26 March 2009 at the expiry of the repurchase authorisation granted in 2008.
Raisio plc's subsidiaries do not hold any shares in the parent company. The
Raisio Group Research Foundation holds 150,510 restricted shares, which is 0.44
per cent of the restricted shares and the votes they represent and,
correspondingly, 0.09 per cent of the whole share capital and 0.37 per cent of
the votes it represents. A share in Raisio or its subsidiary does not entitle
the holder to participate in the Annual General Meeting.
CHANGES IN GROUP STRUCTURE
Raisio Malt Ltd, a malting company spun off from Raisio Nutrition Ltd, started
operations on 1 January 2009.
DECISIONS MADE AT THE ANNUAL GENERAL MEETING
Raisio plc's Annual General Meeting held on 26 March 2009 approved the financial
statements for the financial year 1 January - 31 December 2008 and discharged
the members of the Supervisory Board and the Board of Directors, as well as the
Chief Executive Officer, from liability. The Annual General Meeting decided to
distribute a dividend of EUR 0.07 per share. The dividend was paid to
shareholders on 7 April 2009.
Section 14, paragraph 2 of the Articles of Association was amended to state that
a person who has turned 68 before the beginning of the term cannot be elected a
member of the Board of Directors. The amendment to the Articles of Association
was entered in the Trade Register on 15 April 2009.
The Annual General Meeting authorised the Board of Directors to decide on the
repurchase of a maximum of 5,500,000 free shares and 1,375,000 restricted
shares. The authorisation expires on 26 September 2010.
Furthermore, the Annual General Meeting authorised the Board of Directors to
decide on share issues by (1) disposing all of the company shares and any
repurchased shares - a maximum total of 16,460,000 shares, 1,801,500 of which
can be restricted shares, and by (2) issuing a maximum of 16,500,000 new free
shares against payment. The share issue authorisations will expire, at the
latest, on 26 March 2014.
Details of the authorisations are available in the stock exchange release issued
on 12 February 2009.
The repurchase and share issue authorisation granted by the 2008 Annual General
Meeting expired on 26 March 2009.
The number of members in the Board of Directors was set at five, and Anssi
Aapola, Erkki Haavisto, Satu Lähteenmäki, Simo Palokangas and Michael
Ramm‑Schmidt were reappointed as members for the term beginning at the Annual
General Meeting. At its first meeting the Board of Directors elected Simo
Palokangas as its Chairman and Michael Ramm-Schmidt as its Vice Chairman.
The number of Supervisory Board members was set at 25. Members appointed to the
Supervisory Board for a term beginning at this year's Annual General Meeting and
ending at the 2012 Annual General Meeting include Cay Blomberg, Holger Falck,
Johan Laurén, Antti Lithovius, Jarmo Mäntyharju, Heikki Pohjala, Rita Wegelius
and Tapio Ylitalo. Of them, Cay Blomberg and Jarmo Mäntyharju are new members of
the Supervisory Board.
Johan Kronberg and Mika Kaarisalo, authorised public accountants, were elected
as regular auditors for the financial year 2010. PricewaterhouseCoopers Oy and
Kalle Laaksonen, authorised public accountant, will act as deputy auditors.
EVENTS AFTER THE REVIEW PERIOD
As the first food company in the world, Raisio marked a consumer product with a
label that indicates its overall water consumption. The H2O label, which was
added to Elovena oat flakes, indicates the product's water footprint throughout
the production chain - from the field to the ready, packaged product. The
footprint includes the water that the plant uses for growth, the water used in
production, as well as the resulting wastewater. Most of the consumption in the
oat flake production chain consists of the water that oats use during the growth
period and get from rain water, as a part of the natural water cycle. The
overall water consumption of Elovena oat flakes is 101 litres per 100 grams of
the product. Freshwater, that is, water suitable for drinking and cultivation,
accounts for only around one per cent of the global water resources. The UN
estimates that two-thirds of the world's population will suffer from lack of
water in 2025.
In March, Raisio announced the launch of the world's first phytase enzyme in
feed for big trout, which will considerably reduce the phosphorus load from fish
farming. Feeding studies conducted in cooperation with the Finnish Game and
Fisheries Research Institute show that the phosphorus load from each additional
kilogram of trout growth is reduced by 26 per cent when produced using the new
phytase feed.
RISKS AND SOURCES OF UNCERTAINTY IN THE NEAR FUTURE
In March, public reporting on the salmonella case was appropriate, but April saw
a few isolated, negative exaggerations that attracted great attention among
customers and had a negative impact on Raisio Feed's deliveries and image at
least in the short term. The feed sales team is in direct contact with customers
to correct the misinformation put out. The work is still underway and it is yet
too early to evaluate its success. As a result of the negative publicity, Raisio
Feed runs the risk of its volumes falling to the levels of 2007.
The taxation on the sales profit from the divestment of Raisio's chemicals
business in 2004, totalling EUR 220 million, continues to be handled in court.
Ever since the divestment, Raisio has considered the sales profit to be free of
tax and has handled it accordingly in its accounting. Expert statements obtained
by Raisio support this stance. Most recently, the Helsinki Administrative Court
made a resolution, in August 2008, stating that the sales profit was free of
tax. However, the Tax Administration's Tax Recipients' Legal Services Unit filed
for leave to appeal and lodged an appeal with the Supreme Administrative Court
in October 2008.
OUTLOOK
Raisio's estimate of the Group's outlook for 2009 remains unchanged. Volatility
in quarterly results and between divisions will become more pronounced, but they
will balance out at Group-level over the year 2009. Even if the food consumption
and demand remain steady, the unpredictable outcome of an economic crisis may
reduce volumes in the short run either directly or indirectly through the food
chain infrastructure. Nevertheless, the negative impact on result can be
neutralised within a few months, and in the long run the reallocation of
capacity will open up new opportunities for Raisio.
Raisio's main target in 2009 is to maintain its stabilised position under
difficult circumstances. Raisio's volumes are expected to develop moderately in
annual terms. The trend in net sales will depend on the price level of crop in
2009. The company's profitability will also develop moderately, and operating
result is predicted to account for 4-5% of net sales. Cash flow from operations
in the review period is expected to be clearly positive but below the 2008
level.
Raisio, 5 May 2009
RAISIO PLC
Board of Directors
Further information:
Matti Rihko, CEO, tel. +358 400 830 727
Jyrki Paappa, CFO,tel. +358 50 5566 512
Heidi Hirvonen, Communications Manager, tel. +358 50 567 3060
A press and analyst event will be arranged on 5 May 2009 at noon in Helsinki. It
will be held at Hotel Scandic Simonkenttä, in the Bulsa-Freda meeting room. The
address is Simonkatu 9, Helsinki.
A teleconference in English will be held on 5 May 2009 at 2:30 p.m. Finnish
time, tel. +358 (0)9 8248 3532, PIN code 8076.
The interim report has not been audited.
Raisio's interim report for January-June will be published on 4 August 2009 and
for January-September on 3 November 2009.
CONDENSED FINANCIAL STATEMENTS AND NOTES
INCOME STATEMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 2008 |
--------------------------------------------------------------------------------
| Net sales | 98.6 | 118.9 | 504.0 |
--------------------------------------------------------------------------------
| Expenses corresponding to products | -79.7 | -99.1 | -421.7 |
| sold | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 18.9 | 19.8 | 82.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operating income and expenses, | -13.9 | -11.3 | -54.1 |
| net | | | |
--------------------------------------------------------------------------------
| Operating result | 5.0 | 8.4 | 28.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 1.0 | 0.8 | 2.4 |
--------------------------------------------------------------------------------
| Financial expenses | -1.4 | -0.8 | -3.2 |
--------------------------------------------------------------------------------
| Share of result of associated | 0.0 | 0.0 | 0.1 |
| companies and joint ventures | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result before taxes | 4.7 | 8.4 | 27.5 |
--------------------------------------------------------------------------------
| Income tax | -1.6 | -1.1 | -5.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | 3.1 | 7.3 | 22.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent company | 3.1 | 7.2 | 22.1 |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share from the profit | | | |
| attributable to equity holders of the | | | |
| parent company | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per share | 0.02 | 0.05 | 0.14 |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0.02 | 0.05 | 0.14 |
--------------------------------------------------------------------------------
COMPREHENSIVE INCOME STATEMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 2008 |
--------------------------------------------------------------------------------
| Result for the period | 3.1 | 7.3 | 22.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income items | | | |
--------------------------------------------------------------------------------
| Translation differences recognised in | | 0.1 | 0.1 |
| profit and loss on disposal of foreign | | | |
| operations | | | |
--------------------------------------------------------------------------------
| Gains and losses arising from | -0.4 | -0.6 | -1.0 |
| translating the financial statements | | | |
| of foreign operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive income for the period | 2.7 | 6.8 | 21.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Components of comprehensive income: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent company | 2.7 | 6.7 | 21.2 |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
BALANCE SHEET (EUR million)
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 9.4 | 11.2 | 10.0 |
--------------------------------------------------------------------------------
| Goodwill | 1.0 | 1.4 | 1.2 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 121.3 | 127.3 | 124.2 |
--------------------------------------------------------------------------------
| Shares in associated companies and | 0.7 | 0.7 | 0.7 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Financial assets available for sale | 0.6 | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Receivables | 0.3 | 1.0 | 0.6 |
--------------------------------------------------------------------------------
| Deferred tax assets | 7.6 | 11.1 | 7.9 |
--------------------------------------------------------------------------------
| Total non-current assets | 140.9 | 153.3 | 145.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 88.0 | 95.6 | 73.3 |
--------------------------------------------------------------------------------
| Accounts receivables and other | 53.1 | 79.9 | 66.0 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets at fair value | 68.1 | 11.4 | 66.8 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Cash in hand and at banks | 13.1 | 6.6 | 12.8 |
--------------------------------------------------------------------------------
| Total current assets | 222.3 | 193.5 | 218.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 363.2 | 346.7 | 364.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Share capital | 27.8 | 27.8 | 27.8 |
--------------------------------------------------------------------------------
| Own shares | -19.4 | -17.8 | -19.3 |
--------------------------------------------------------------------------------
| Other equity attributable to equity | 262.9 | 256.3 | 271.0 |
| holders of the parent company | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | 271.3 | 266.4 | 279.4 |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total equity | 271.3 | 266.4 | 279.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 7.4 | 9.1 | 7.4 |
--------------------------------------------------------------------------------
| Pension liabilities | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Non-current financial liabilities | 14.2 | 0.4 | 14.3 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 21.8 | 9.7 | 22.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 63.9 | 62.7 | 55.6 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Reserves | 0.9 | 1.9 | 1.1 |
--------------------------------------------------------------------------------
| Financial liabilities at fair value | 0.8 | 0.1 | 0.4 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Current financial liabilities | 4.5 | 6.1 | 5.5 |
--------------------------------------------------------------------------------
| Total current liabilities | 70.1 | 70.7 | 62.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 91.9 | 80.4 | 84.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 363.2 | 346.7 | 364.0 |
--------------------------------------------------------------------------------
CHANGES IN GROUP EQUITY (EUR million)
--------------------------------------------------------------------------------
| | Shar | Sha | Res | Own | Tran | Retai | Total | Minor | Total |
| | e | re | erv | shar | slat | ned | | ity | equit |
| | capi | pre | e | es | ion | earni | | inter | y |
| | tal | miu | fun | | diff | ngs | | est | |
| | | m | d | | eren | | | | |
| | | res | | | ces | | | | |
| | | erv | | | | | | | |
| | | e | | | | | | | |
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -17. | -2.3 | 167.0 | 266.1 | 12.7 | 278.8 |
| 31.12.2007 | | | 6 | 9 | | | | | |
--------------------------------------------------------------------------------
| Comprehensi | - | - | - | - | -0.5 | 7.1 | 6.7 | 0.1 | 6.8 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -6.3 | -6.3 | - | -6.3 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | 0.0 | - | - | 0.0 | - | 0.0 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | 0.2 | - | 0.0 | 0.1 | - | 0.1 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
| Squeeze-out | - | - | - | - | - | -0.2 | -0.2 | -12.8 | -13.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -17. | -2.8 | 167.6 | 266.4 | 0.0 | 266.4 |
| 31.3.2008 | | | 6 | 8 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -19. | -3.2 | 182.7 | 279.4 | 0.0 | 279.4 |
| 31.12.2008 | | | 6 | 3 | | | | | |
--------------------------------------------------------------------------------
| Comprehensi | - | - | - | - | -0.4 | 3.1 | 2.7 | 0.0 | 2.7 |
| ve income | | | | | | | | | |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | - | - | - | - | - | -10.9 | -10.9 | - | -10.9 |
--------------------------------------------------------------------------------
| Repurchase | - | - | - | 0.0 | - | - | 0.0 | - | 0.0 |
| of own | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | - | - | - | 0.1 | 0.1 | - | 0.1 |
| payment | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity on | 27.8 | 2.9 | 88. | -19. | -3.6 | 175.0 | 271.3 | 0.0 | 271.3 |
| 31.3.2009 | | | 6 | 4 | | | | | |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | 2008 |
--------------------------------------------------------------------------------
| Operating result | 5.0 | 8.4 | 28.3 |
--------------------------------------------------------------------------------
| Adjustments to operting result | 5.1 | 0.3 | 16.6 |
--------------------------------------------------------------------------------
| Cash flow before change in working | 10.1 | 8.8 | 44.8 |
| capital | | | |
--------------------------------------------------------------------------------
| Change in current receivables | 9.2 | -9.5 | -0.7 |
--------------------------------------------------------------------------------
| Change in inventories | -14.8 | -4.0 | 18.1 |
--------------------------------------------------------------------------------
| Change in current non-interest-bearing | -0.8 | -3.5 | -5.7 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total change in working capital | -6.4 | -17.0 | 11.7 |
--------------------------------------------------------------------------------
| Financial items and taxes | 1.6 | -1.9 | -3.8 |
--------------------------------------------------------------------------------
| Cash flow from business operations | 5.4 | -10.1 | 52.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments | -2.0 | -6.2 | -17.1 |
--------------------------------------------------------------------------------
| Divestment of subsidiaries | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 0.0 | -8.0 | -8.0 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 0.0 | 0.1 | 1.3 |
--------------------------------------------------------------------------------
| Loans granted | 0.0 | -1.1 | -1.9 |
--------------------------------------------------------------------------------
| Repayment of loan receivables | 0.3 | 1.0 | 1.8 |
--------------------------------------------------------------------------------
| Cash flow from investments | -1.7 | -14.2 | -23.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in non-current loans | -0.1 | -0.6 | 15.7 |
--------------------------------------------------------------------------------
| Change in current loans | -0.6 | -0.5 | -3.2 |
--------------------------------------------------------------------------------
| Repurchase of own shares | 0.0 | 0.0 | -1.6 |
--------------------------------------------------------------------------------
| Dividend paid to equity holders of the | 0.0 | 0.0 | -6.3 |
| parent company | | | |
--------------------------------------------------------------------------------
| Cash flow from financial operations | -0.7 | -1.1 | 4.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjustment to translation difference | 0.2 | 0.1 | 0.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in liquid funds | 3.1 | -25.4 | 33.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds at the beginning of the | 77.9 | 43.6 | 43.6 |
| period | | | |
--------------------------------------------------------------------------------
| Impact of change in market value on | -0.1 | -0.2 | 0.4 |
| liquid funds | | | |
--------------------------------------------------------------------------------
| Liquid funds at period-end | 81.0 | 18.0 | 77.9 |
--------------------------------------------------------------------------------
NOTES TO THE INTERIM REPORT
This interim report has been prepared in compliance with IAS 34 Interim
Financial Reporting according to the same accounting principles used in
financial statements 2008.
The Group adopted the following IFRSs or amendments to them on 1 January 2009:
Revised IAS 1, Presentation of Financial Statements: Amendments have been made
to the presentation of the income statement and the statement of changes in
equity.
IFRS 8, Operating Segments, states that segment information must be based on
internal reporting submitted to management and on the principles followed in
reporting. Since Raisio's segment information is already based on internal
reports submitted to management, no changes have been made to segment reporting.
IAS 23, Borrowing Costs: The amended standard requires that the acquisition cost
of an asset that meets the conditions shall include borrowing costs incurred
from the acquisition, construction or production of the asset in question. The
adopted standards have not affected the Group's results.
When preparing the interim report, management must make estimates and
assumptions that affect the reported assets and liabilities, income and
expenses. Actual figures may differ from these estimates.
The interim review is shown in EUR millions.
SEGMENT INFORMATION
NET SALES BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 2008 |
| | 2009 | 2008 | |
--------------------------------------------------------------------------------
| Food | 44.0 | 49.0 | 201.8 |
--------------------------------------------------------------------------------
| Feed & Malt | 49.3 | 64.3 | 282.7 |
--------------------------------------------------------------------------------
| Ingredients | 11.6 | 12.7 | 44.3 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.2 | 1.0 |
--------------------------------------------------------------------------------
| Interdivisional net sales | -6.4 | -7.4 | -25.7 |
--------------------------------------------------------------------------------
| Total net sales | 98.6 | 118.9 | 504.0 |
--------------------------------------------------------------------------------
OPERATING RESULT BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 2008 |
| | 2009 | 2008 | |
--------------------------------------------------------------------------------
| Food | 2.0 | 4.8 | 9.7 |
--------------------------------------------------------------------------------
| Feed & Malt | 0.1 | 1.7 | 12.3 |
--------------------------------------------------------------------------------
| Ingredients | 4.4 | 3.3 | 10.0 |
--------------------------------------------------------------------------------
| Other operations | -1.1 | -0.8 | -3.4 |
--------------------------------------------------------------------------------
| Eliminations | -0.4 | -0.6 | -0.3 |
--------------------------------------------------------------------------------
| Total net sales | 5.0 | 8.4 | 28.3 |
--------------------------------------------------------------------------------
NET ASSETS BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Food | 78.5 | 86.0 | 81.6 |
--------------------------------------------------------------------------------
| Feed & Malt | 84.8 | 104.0 | 81.7 |
--------------------------------------------------------------------------------
| Ingredients | 40.3 | 43.9 | 38.3 |
--------------------------------------------------------------------------------
| Other operations, discontinued | 67.6 | 32.5 | 77.9 |
| operations and unallocated items | | | |
--------------------------------------------------------------------------------
| Total net assets | 271.3 | 266.4 | 279.4 |
--------------------------------------------------------------------------------
INVESTMENTS BY SEGMENT (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 2008 |
| | 2009 | 2008 | |
--------------------------------------------------------------------------------
| Food | 0.5 | 13.8 | 16.6 |
--------------------------------------------------------------------------------
| Feed & Malt | 0.6 | 2.3 | 9.3 |
--------------------------------------------------------------------------------
| Ingredients | 0.1 | 0.7 | 1.3 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.5 | 1.9 |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total investments | 1.4 | 17.3 | 29.1 |
--------------------------------------------------------------------------------
NET SALES BY MARKET AREA (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 1-3/ | 2008 |
| | 2009 | 2008 | |
--------------------------------------------------------------------------------
| Finland | 64.3 | 75.6 | 301.0 |
--------------------------------------------------------------------------------
| Poland | 9.7 | 10.8 | 45.9 |
--------------------------------------------------------------------------------
| Russia | 5.0 | 9.0 | 44.1 |
--------------------------------------------------------------------------------
| Other Europe | 18.1 | 21.8 | 106.7 |
--------------------------------------------------------------------------------
| ROW | 1.6 | 1.7 | 6.3 |
--------------------------------------------------------------------------------
| Total | 98.6 | 118.9 | 504.0 |
--------------------------------------------------------------------------------
TANGIBLE ASSETS
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of | 417.1 | 430.2 | 430.2 |
| the period | | | |
--------------------------------------------------------------------------------
| Conversion differences | -1.2 | -1.2 | -1.8 |
--------------------------------------------------------------------------------
| Increase | 1.2 | 3.5 | 14.2 |
--------------------------------------------------------------------------------
| Decrease | -0.7 | -4.0 | -25.6 |
--------------------------------------------------------------------------------
| Reclassifications between items | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Acquisition cost at period-end | 416.3 | 428.5 | 417.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | 292.8 | 302.3 | 302.3 |
| write-downs at the beginning of the | | | |
| period | | | |
--------------------------------------------------------------------------------
| Conversion difference | -0.6 | -0.8 | -1.0 |
--------------------------------------------------------------------------------
| Decrease and transfers | -0.7 | -4.0 | -24.7 |
--------------------------------------------------------------------------------
| Depreciation for the period | 3.6 | 3.6 | 14.9 |
--------------------------------------------------------------------------------
| Write-downs | 0.0 | 0.0 | 1.3 |
--------------------------------------------------------------------------------
| Accumulated depreciation and | 295.1 | 301.1 | 292.8 |
| write-downs at period-end | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at period-end | 121.3 | 127.3 | 124.2 |
--------------------------------------------------------------------------------
RESERVES
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| At the beginning of the period | 1.1 | 1.9 | 1.9 |
--------------------------------------------------------------------------------
| Increase in provisions | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Provisions used | -0.2 | 0.0 | -0.8 |
--------------------------------------------------------------------------------
| At period-end | 0.9 | 1.9 | 1.1 |
--------------------------------------------------------------------------------
BUSINESS ACTIVITIES INVOLVING INSIDERS
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Sales to associated companies and | 3.2 | 3.5 | 13.6 |
| joint ventures | | | |
--------------------------------------------------------------------------------
| Purchases from associated companies | 0.1 | 0.0 | 0.1 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
| Sales to key employees in | 0.2 | 0.0 | 1.1 |
| management | | | |
--------------------------------------------------------------------------------
| Purchases from key employees in | 0.3 | 0.4 | 0.9 |
| management | | | |
--------------------------------------------------------------------------------
| Short-term receivables from | 1.6 | 1.7 | 1.4 |
| associated companies and joint | | | |
| ventures | | | |
--------------------------------------------------------------------------------
| Liabilities to associated companies | 0.1 | 0.1 | 0.2 |
| and joint ventures | | | |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES (EUR million)
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Contingent off-balance sheet | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Non-cancelable other leases | | | |
--------------------------------------------------------------------------------
| Minimum lease payments | 1.7 | 2.6 | 1.8 |
--------------------------------------------------------------------------------
| Contingent liabilities for the | 0.2 | 0.0 | 0.0 |
| company | | | |
--------------------------------------------------------------------------------
| Contingent liabilities for others | | | |
--------------------------------------------------------------------------------
| Guarantees | 0.0 | 0.1 | 0.0 |
--------------------------------------------------------------------------------
| Other liabilities | 1.4 | 2.1 | 1.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitment to investment payments | 0.9 | 1.6 | 0.8 |
--------------------------------------------------------------------------------
DERIVATIVE CONTRACTS (EUR million)
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Nominal values of derivative | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Raw material futures | 0.0 | 6.9 | 0.0 |
--------------------------------------------------------------------------------
| Currency forward contracts | 13.5 | 20.0 | 28.9 |
--------------------------------------------------------------------------------
| Interest rate swaps | 10.0 | | 10.0 |
--------------------------------------------------------------------------------
QUARTERLY PERFORMANCE (EUR million)
--------------------------------------------------------------------------------
| | 1-3/ | 10-12/ | 7-9/ | 4-6/ | 1-3/ |
| | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Net sales by segment | | | | | |
--------------------------------------------------------------------------------
| Food | 44.0 | 51.3 | 51.7 | 49.7 | 49.0 |
--------------------------------------------------------------------------------
| Feed & Malt | 49.3 | 70.8 | 78.7 | 68.9 | 64.3 |
--------------------------------------------------------------------------------
| Ingredients | 11.6 | 10.5 | 11.0 | 10.1 | 12.7 |
--------------------------------------------------------------------------------
| Other operations | 0.2 | 0.3 | 0.3 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Interdivisional net sales | -6.4 | -5.1 | -7.2 | -6.0 | -7.4 |
--------------------------------------------------------------------------------
| Total net sales | 98.6 | 127.8 | 134.5 | 122.9 | 118.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating result by segment | | | | | |
--------------------------------------------------------------------------------
| Food | 2.0 | 2.6 | 1.4 | 0.9 | 4.8 |
--------------------------------------------------------------------------------
| Feed & Malt | 0.1 | 2.0 | 4.3 | 4.2 | 1.7 |
--------------------------------------------------------------------------------
| Ingredients | 4.4 | 1.8 | 3.1 | 1.7 | 3.3 |
--------------------------------------------------------------------------------
| Other operations | -1.1 | -0.9 | -1.0 | -0.7 | -0.8 |
--------------------------------------------------------------------------------
| Eliminations | -0.4 | 0.2 | -0.3 | 0.4 | -0.6 |
--------------------------------------------------------------------------------
| Total operating result | 5.0 | 5.7 | 7.6 | 6.5 | 8.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and | -0.3 | -0.3 | -0.2 | -0.2 | -0.1 |
| expenses, net | | | | | |
--------------------------------------------------------------------------------
| Share of result of | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Result before taxes | 4.7 | 5.4 | 7.4 | 6.3 | 8.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax | -1.6 | 0.4 | -2.1 | -2.5 | -1.1 |
--------------------------------------------------------------------------------
| Result for the period from | 3.1 | 5.9 | 5.3 | 3.8 | 7.3 |
| continuing operations | | | | | |
--------------------------------------------------------------------------------
KEY INDICATORS
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Net sales, EURm | 98.6 | 118.9 | 504.0 |
--------------------------------------------------------------------------------
| change, % | -17.1 | 22.8 | 19.5 |
--------------------------------------------------------------------------------
| Operating result, EURm | 5.0 | 8.4 | 28.3 |
--------------------------------------------------------------------------------
| % of net sales | 5.1 | 7.1 | 5.6 |
--------------------------------------------------------------------------------
| Result before taxes, EURm | 4.7 | 8.4 | 27.5 |
--------------------------------------------------------------------------------
| % of net sales | 4.8 | 7.0 | 5.5 |
--------------------------------------------------------------------------------
| Return on equity, ROE, % | 4.5 | 10.7 | 8.0 |
--------------------------------------------------------------------------------
| Return on investment, ROI, % | 6.7 | 12.3 | 9.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing financial liabilities | 18.8 | 6.1 | 19.7 |
| at period-end, EURm | | | |
--------------------------------------------------------------------------------
| Net interest-bearing financial | -62.2 | -11.9 | -58.2 |
| liabilities at period-end, EURm | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 75.8 | 77.1 | 77.9 |
--------------------------------------------------------------------------------
| Net gearing, % | -22.9 | -4.5 | -20.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross investments, EURm | 1.4 | 17.3 | 29.1 |
--------------------------------------------------------------------------------
| % of net sales | 1.4 | 14.5 | 5.8 |
--------------------------------------------------------------------------------
| Depreciation, EURm | 4.4 | 4.0 | 18.1 |
--------------------------------------------------------------------------------
| R & D expenses, EURm | 1.4 | 1.5 | 5.8 |
--------------------------------------------------------------------------------
| % of net sales | 1.4 | 1.3 | 1.2 |
--------------------------------------------------------------------------------
| Average personnel | 954 | 1,051 | 1,048 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/share from continuing | 0.02 | 0.05 | 0.14 |
| operations, EUR | | | |
--------------------------------------------------------------------------------
| Cash flow from operations/share, EUR | 0.03 | -0.06 | 0.34 |
--------------------------------------------------------------------------------
| Equity/share, EUR | 1.74 | 1.70 | 1.79 |
--------------------------------------------------------------------------------
| Average number of shares during the | | | |
| period, in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 121,516 | 122,463 | 122,310 |
--------------------------------------------------------------------------------
| Restricted shares | 34,274 | 34,304 | 34,294 |
--------------------------------------------------------------------------------
| Total | 155,791 | 156,767 | 156,605 |
--------------------------------------------------------------------------------
| Average numer of shares at period-end, | | | |
| in 1,000s*) | | | |
--------------------------------------------------------------------------------
| Free shares | 121,516 | 122,516 | 121,516 |
--------------------------------------------------------------------------------
| Restricted shares | 34,273 | 34,296 | 34,276 |
--------------------------------------------------------------------------------
| Total | 155,789 | 156,813 | 155,793 |
--------------------------------------------------------------------------------
| Market capitalisation of shares at | | | |
| period-end, EURm*) | | | |
--------------------------------------------------------------------------------
| Free shares | 181.1 | 176.4 | 178.6 |
--------------------------------------------------------------------------------
| Restricted shares | 54.8 | 50.8 | 56.2 |
--------------------------------------------------------------------------------
| Total | 235.9 | 227.2 | 234.8 |
--------------------------------------------------------------------------------
*) Number of shares without own shares
CALCULATION OF INDICATORS
--------------------------------------------------------------------------------
| Return on equity (ROE), % | Result before taxes - income taxes*) |
| | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity (average over the period) |
--------------------------------------------------------------------------------
| Return on investment | Result before taxes + financial expenses*) |
| (ROI), % | ------------------------------------------- x |
| | 100 |
| | Shareholders' equity + interest-bearing |
| | financial liabilities (average over the period) |
--------------------------------------------------------------------------------
| Equity ratio, % | Shareholders' equity |
| | ------------------------------------------- x |
| | 100 |
| | Balance sheet total - advances received |
--------------------------------------------------------------------------------
| Net interest-bearing | Interest-bearing financial liabilities - liquid |
| financial liabilities | assets and financial assets recorded at fair |
| | value in the income statement |
--------------------------------------------------------------------------------
| Net gearing, % | Net interest-bearing financial liabilities |
| | ----------------------------------------- x 100 |
| | Shareholders' equity |
--------------------------------------------------------------------------------
| Earnings per share*) | Result for the year of parent company |
| | shareholders |
| | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue |
--------------------------------------------------------------------------------
| Cash flow from business | Cash flow from business operations |
| operations per share | ------------------------------------------------ |
| | Average number of shares for the year, adjusted |
| | for share issue |
--------------------------------------------------------------------------------
| Shareholders' equity per | Equity of parent company shareholders |
| share | ------------------------------------------------ |
| | Number of shares at period-end adjusted for |
| | share issue |
--------------------------------------------------------------------------------
| Market capitalisation | Closing price, adjusted for issue x number of |
| | shares without own shares at the end of the |
| | period |
--------------------------------------------------------------------------------
*)The calculation of key indicators uses continuing operations result
