LÄNNEN TEHTAAT PLC Interim Report 6 May 2010, 8.30 am
INTERIM REPORT 1 January - 31 March 2010
- Consolidated net sales came to EUR 74.8 (64.7) million, up by 16%.
- Operating profit was EUR 0.9 (-0.7) million; there were no non-recurring
items.
- Profit before taxes totalled EUR 1.2 (-0.4) million.
- Profit for the period came to EUR 0.8 (-0.3) million, and earnings per share
amounted to EUR 0.13 (-0.04).
- The equity ratio was 77.0% (76.5%).
- Assessment of profit performance for the full year is unchanged.
The information in this Interim Report has not been audited.
Matti Karppinen, CEO:
“The year began significantly better than last year. Consolidated net sales were
up year-on-year thanks to growth in the Grains and Oilseeds business and the
Seafood business. The operating profit also showed a year-on-year improvement,
as expected.
“The improved operating profit was significant in both the Grains and Oilseeds
business and the Seafood business. In Frozen Foods and in Other Operations the
result was almost at the previous year's level.
“Market conditions have continued to be uncertain due to the weak economic
circumstances. In the second quarter, the industrial action and the substantial
price rises for salmon and rainbow trout are further challenges affecting our
profit-earning capacity.”
KEY FIGURES ILLUSTRATING PERFORMANCE
EUR million Q1/2010 Q1/2009
Net sales 74.8 64.7
Operating profit 0.9 -0.7
Profit before taxes 1.2 -0.4
Profit for the period 0.8 -0.3
Earnings per share, EUR 0.13 -0.04
NET SALES AND PROFIT
Consolidated net sales in January-March amounted to EUR 74.8 (64.7) million, up
by about 16% year-on-year. Most of this growth was in the Grains and Oilseeds
business.
Operating profit was EUR 0.9 (-0.7) million. There were no non-recurring items
in the first quarter of the year nor were there any in the same period the
previous year. The operating profit includes the share of the profits of
associated companies, which amounted to EUR -0.1 (0.0) million.
Financial income and expenses came to a total of EUR 0.3 (0.3) million. This
figure includes valuation gains of EUR 0.5 (0.1) million with no cash flow
implications. Financial expenses also include EUR -0.2 (-0.1) million of Avena
Nordic Grain Group's profit as the share attributable to the Avena Nordic Grain
Oy employee shareholders.
Profit before taxes was EUR 1.2 (-0.4) million. Profit for the period came to
EUR 0.8 (-0.3) million, and earnings per share amounted to EUR 0.13 (-0.04).
FINANCING AND BALANCE SHEET
The Group's liquidity remained good and its financial position is strong.
The first-quarter cash flow from operating activities after interest and taxes
amounted to EUR -15.3 (8.1) million. The impact of the change in working capital
was EUR -15.3 (6.3) million. In the first quarter, working capital was tied up
in the Grains and Oilseeds business. The net cash flow from investing activities
came to EUR 11.9 (-0.5) million. Withdrawal of investments made in short-term
fixed income funds had an impact of EUR 12.0 (0.0) million on the net cash flow
from investing activities. The cash flow from financing activities came to EUR
-0.5 (-8.2) million, and this included EUR -0.2 (-8.1) million in repayments on
short-term loans. The net change in cash and cash equivalents was EUR -4.0
(-0.5) million.
At the end of the first quarter the Group had EUR 2.5 (8.6) million in
interest-bearing liabilities and EUR 9.2 (13.0) million in liquid assets. Net
interest-bearing liabilities totalled EUR -6.7 (-4.5) million. The consolidated
balance sheet total stood at EUR 173.2 (178.4) million and shareholders' equity
amounted to EUR 133.4 (136.5) million. The equity ratio was 77.0% (76.5%) and
gearing was -5.0% (-3.3%). Commercial papers issued for the Group's short-term
financing stood at a total value of EUR 0.0 (1.0) million at the end of the
quarter. The Group's liquidity over the next few years is secured with committed
credit facilities; a total of EUR 25 (25) million was available in credit at the
end of March. No credit facilities were used during the January-March period.
INVESTMENT
Investment in non-current assets during January-March totalled EUR 0.4 (0.5)
million.
PERSONNEL
The average number of personnel during the first quarter was 602 (652). The
reduction in personnel occurred mainly in the Finnish Seafood business.
OVERVIEW OF OPERATING SEGMENTS
Frozen Foods
EUR million Q1/2010 Q1/2009 2009
Net sales 12.8 12.9 46.0
Operating profit,
excluding non-recurring items 0.3 0.4 3.4
Net sales in Frozen Foods were at the level of a year earlier. Sales of retail
products were up by over 2%, this growth being especially in basic products
under the Apetit brand, namely frozen vegetable and potato products and soups.
Growth was also boosted by new products, for instance the Apetit products
launched in autumn 2009 under the ‘domestic origin' theme. Sales to the hotel,
restaurant and catering sector fell slightly, as did export sales, while sales
to the food industry were at the level of the same quarter in 2009.
Operating profit in the Frozen Foods business was almost at the level of the
previous year. Relative profitability improved as a result of the product mix in
sales and the increase in productivity. Factors adversely affecting
profitability were the increase in depreciation and the growth in storage costs
as a result of the autumn's large home-grown crop.
Special themes in the marketing of Apetit products have been their domestic
origin and the positive properties of frozen products. In particular, attention
has focused on study results which show that the nutritional value of frozen
vegetables is comparable to that of fresh vegetables, as nutritional value is
retained extremely well in frozen vegetables.
The number of personnel in Frozen Foods during the first quarter was 172 (179).
Investment during January-March totalled EUR 0.0 (0.4) million.
Seafood
EUR million Q1/2010 Q1/2009 2009
Net sales 19.0 18.5 75.9
Operating profit,
excluding non-recurring items -0.0 -0.9 -1.8
Net sales of the Seafood business were up by about 3% on the figure for the same
quarter a year earlier. Operating profit improved by EUR 0.9 million. Profit
improved in both the Finnish and foreign operations of the Seafood business.
In the Finnish Seafood business, net sales were up year-on-year as a result of
the increase in average prices and because Easter sales were partially in the
first quarter, in contrast to the previous year.
Profitability improved year-on-year, with the first quarter figure almost
turning positive. This was due to good management of wastage, the continued high
level of delivery reliability, increased productivity in production and in
logistics operations, and the reduction in fixed costs as a consequence of the
structural changes and rigorous cost control. The relative profitability of
first-quarter sales was weakened by the substantial rise in the market price of
salmon and rainbow trout raw materials. The rise in market prices was triggered
by the drop in supply caused by the collapse in Chile's salmon production. This
market disturbance could mean that the price of Norwegian salmon and of rainbow
trout will remain unusually high for some time to come. The rise in raw material
prices will continue to create significant pressures for price increases.
The raw pickled and cold-smoked products that were redesigned at the start of
the year have been well received. April saw the launch of two new salmon
products, Apetit Lohichorizo and Apetit Lohiwursti, for the summer barbecue
season.
The productivity investment programme introduced at the Kuopio production plant
in autumn 2009 will be completed during the second quarter of 2010. The changes
will improve the efficiency of work procedures and processes and will further
enhance the quality of production.
In the foreign operations of the Seafood business, euro-denominated net sales
were up by about 5% year-on-year. Measured in local currencies, sales were down
by almost 5%. In Norway, the drop in sales was attributable to the
discontinuation of an unprofitable product segment. In other product segments
sales were at or above the previous year's level. There was particularly strong
growth in sales of dressings, shellfish and mackerel. In Sweden, shellfish sales
fell as a result of the drop in average prices. The entire Maritim Food Group is
going through a comprehensive, customer-driven product renewal process in order
to improve visibility in stores. The redesigned products will be launched during
the spring and summer.
The profitability of foreign operations was significantly better than a year
earlier, and the operating profit was slightly positive. The improved level of
profitability was due to the development measures taken in different parts of
the business and the greater attention given to working closely with customers.
The profitability of foreign operations was adversely affected by the
considerable rise in the raw material price of Norwegian salmon, which will lead
to pressures to increase product prices.
The number of personnel in the Seafood business totalled 360 (400). The
reduction in personnel occurred mainly in the Finnish Seafood business as a
result of the reduction in Kalatori service counters and the outsourcing of
logistics operations.
Erkki Lepistö was appointed Managing Director of Apetit Kala Oy at the start of
March. He will continue the implementation of the strategy for the Finnish
Seafood business at Apetit Kala Oy.
Investment in the Seafood business totalled EUR 0.3 (0.0) million. The
investment was mainly in developing the smoked fish packaging department at the
Kuopio production plant, as set out in the strategy.
Grains and Oilseeds
EUR million Q1/2010 Q1/2009 2009
Net sales 43.0 33.2 143.4
Operating profit,
excluding non-recurring items 2.0 0.9 7.4
Net sales in the Grains and Oilseeds business were up by 29% year-on-year,
mainly due to volume growth. The sales volume was significantly greater than a
year earlier due to the growth in trade within the EU.
There was a plentiful supply of grain on the world market during the first
quarter. This was attributable not only to the good crop harvests around the
world but also the high level of stocks transferred from the previous season,
which together kept market prices low. The price of rapeseed in relation to
grain prices was attractive from the grower's viewpoint. The rapeseed price
level was maintained by the tough supply situation for soybeans at the start of
the quarter and by the price of mineral oil. This ensured a busy market for
rapeseed.
The first-quarter operating profit in the Grains and Oilseeds business was up by
EUR 1.1 million on the previous year's first-quarter figure. The good result was
a consequence of sales volumes being greater than a year earlier and of the good
oil yield and high-quality Finnish rapeseed crop.
The total world supply of grain will continue to be plentiful in the near
future, due to the good crop obtained in the last season and the large stocks
from previous seasons around the world. In the second quarter, prices throughout
the world are starting to be affected to an increasing extent by the
overwintering of autumn grains and by the sowing area in the spring and the
outlook for the new crop. Autumn grains are currently thought to be in good
condition. However, the weather conditions in the growing and harvesting seasons
are of major importance for the grain markets. The prices of European rapeseed
are affected not only by weather conditions but also by the price of mineral
oil, the plentiful crop in South America, the growing demand for biodiesel in
Europe, and the area under cultivation, which is expected to rise in Finland and
elsewhere in northern Europe.
The Grains and Oilseeds business employed 59 (63) people. The drop in the number
of personnel was due to the combining and reorganisation of the operations of
Avena and Mildola in autumn 2009.
Investment in the Grains and Oilseeds business came to EUR 0.1 (0.1) million and
focused on the renewal of Avena's Internet marketplace (Avenakauppa) and
replacement equipment for the Kirkkonummi vegetable oil mill.
Other Operations
EUR million Q1/2010 Q1/2009 2009
Net sales 0.4 0.4 2.4
Operating profit,
excluding non-recurring items -1.2 -1.1 -1.3
The Other Operations segment comprises the service company Apetit Suomi Oy,
Group Administration, items not allocated under any of the business segments,
and the associated companies Sucros Ltd and Ateriamestarit Oy. The cost impact
of the services produced by Apetit Suomi Oy is an encumbrance on the operating
result of the Group's businesses in proportion to their use of the services.
Net sales from the sale of services in the Other Operations segment were at the
previous year's level. The operating profit includes EUR -0.1 (0.0) million as
the share of the profits of associated companies.
Investment in Other Operations totalled EUR 0.0 (0.0) million.
DECISIONS OF THE ANNUAL GENERAL MEETING
Lännen Tehtaat plc's Annual General Meeting was held at Säkylä on 30 March 2010.
The Annual General Meeting adopted the parent company's financial statements and
the consolidated financial statements and discharged the members of the Board of
Directors and of the Supervisory Board and the Chief Executive Officer from
liability for the financial year 2009.
Dividend distribution
The Annual General Meeting resolved that a dividend of EUR 0.76 per share be
distributed from the profits of the financial year 2009, in accordance with the
proposal of the Board of Directors. The dividend was paid on 13 April 2010.
Amendments to the Articles of Association
The Annual General Meeting approved the proposal of Lännen Tehtaat plc's Board
of Directors concerning the amendment of section 9, subsection 2, paragraph 3 of
the Articles of Association in regard to the tasks of the Supervisory Board. The
Annual General Meeting also approved Esko Eela's proposal for amending the
Articles of Association in respect of the tasks of the Supervisory Board and in
respect to the two members of the Supervisory Board's Nomination Committee to be
elected by the Annual General Meeting.
More information on the amendments to the Articles of Association was given in
the stock exchange release of 30 March 2010 concerning the decisions made by the
Annual General Meeting.
Authorisations to issue shares
The Board of Directors has been authorised by the Annual General Meeting to
decide on issuing new shares and transferring Lännen Tehtaat plc shares held by
the company, and to do this in one or more lots as a share issue with a total of
no more than 761,757 shares. The share issue authorisation covers all Lännen
Tehtaat plc shares in the company's possession, i.e. 130,000 shares. The maximum
number of new shares that can be issued is 631,757.
The subscription price for each new share shall be at least the share's nominal
value, or EUR 2. The transfer price for Lännen Tehtaat plc shares held by the
company must be at least the current value of the share at the time of transfer,
determined by the price quoted in public trading on the NASDAQ OMX Helsinki Ltd
exchange, but when implementing share-based incentive plans shares can also be
issued without consideration.
The authorisation concerns the right to deviate from the shareholders'
pre-emptive subscription right (targeted issue) if the company has an important
financial reason to do so, such as developing the company's capital structure,
financing and implementing corporate acquisitions or other arrangements, or
implementing a share-based incentive plan. This authorisation also includes the
right to offer shares instead of money, also against capital consideration in
kind or otherwise under certain conditions or by using right of set-off; and the
right to decide on the share subscription price and other terms and
circumstances concerning the share issue.
The authorisation is valid until the next AGM. The authorisation revoked the
earlier authorisation to issue shares, given on 2 April 2009, and the
authorisation to transfer Lännen Tehtaat plc shares, given on the same date.
SHARES AND TRADING
The number of Lännen Tehtaat plc shares traded on the stock exchange during the
first quarter was 294,715 (156,317), representing 4.7% (2.5%) of the total
number of shares. The highest share price quoted was EUR 18.51 (14.43) and the
lowest EUR 15.51 (12.64). The average price of shares traded was EUR 17.23
(13.51). The share turnover was EUR 5.1 (2.1) million. At the end of March, the
market capitalisation totalled EUR 107.4 (81.8) million.
At the close of the first quarter, the company had in its possession a total of
130,000 of its own shares, with a combined nominal value of EUR 0.26 million.
These shares represent 2.1% of the company's total number of shares and of the
total number of votes.
FLAGGING ANNOUNCEMENTS
No flagging announcements were made during the first quarter.
CORPORATE ADMINISTRATION AND AUDITORS
At its organisational meeting on 13 April 2010, Lännen Tehtaat plc's Supervisory
Board elected Helena Walldén as its chairman and Juha Nevavuori as its deputy
chairman.
At the same meeting, the Supervisory Board elected the following as members of
the company's Board of Directors: Harri Eela, Heikki Halkilahti, Aappo Kontu,
Matti Lappalainen, Hannu Simula and Soili Suonoja. Matti Lappalainen was elected
chairman of the Board of Directors and Hannu Simula was elected deputy chairman.
Hannu Pellinen, APA and PricewaterCoopers Oy Authorized Public Accountants, with
Tomi Moisio, APA, CPFA as responsible auditor, were appointed as auditors for
Lännen Tehtaat plc by the Annual General Meeting on 30 March 2010.
SEASONALITY OF OPERATIONS
In accordance with the IAS 2 standard, the historical cost of inventories
includes a systematically allocated portion of the fixed production overheads.
In production that focuses on seasonal crops, raw materials are processed into
finished products mainly during the final quarter of the year, which means that
the inventory volumes and their balance-sheet values are at their highest at the
end of the year. Since the entry of the fixed production overheads included in
the historical cost as an expense item is deferred until the time of sale, most
of the Group's annual profit is accrued in the final quarter. The seasonal
nature of operations is most marked in Frozen Foods and in the associated
company Sucros, due to the link between production and the crop harvesting
season.
Apetit Kala's sales peak at weekends and on seasonal holidays. As Easter can
take place in either the first or the second quarter, this can affect the
comparability of Seafood's net sales and profit between different years. A
significant proportion of the entire year's profit in the Seafood business
depends on the success of Christmas sales.
Net sales in the Grains and Oilseeds business vary from one year and quarter to
the next to a greater extent than in the other businesses, being dependent on
the demand and supply situation and on the price levels domestically and on
other markets.
SHORT-TERM RISKS AND UNCERTAINTIES
The most significant short-term risks for the Lännen Tehtaat Group concern the
following: industrial action in the Finnish food industry; the effects of a
prolonged economic downturn on demand from consumers and customers; the solvency
of customers and the delivery performance of suppliers; the management of raw
material price changes and currency risks; changes in the Group's businesses and
customerships; introduction of a new enterprise resource planning (ERP) system
in Seafood's foreign operations; and corporate acquisitions and the subsequent
integration processes.
SIGNIFICANT EVENTS SINCE THE END OF THE REVIEW PERIOD
The collective agreement negotiations between the Finnish Food Workers' Union
(SEL) and food industry employers have become protracted and have led to
industrial action being taken. If the industrial action were to continue, this
would adversely affect the Group's businesses. So far, the impact of the
industrial action has been limited.
FUTURE OUTLOOK
The Group's net sales will be affected particularly by the market activity and
by changes in the price level of grains and oilseeds.
Thanks to the development measures undertaken in the Group's businesses, the
full-year operating profit, excluding non-recurring items, is expected to be at
least at the level of 2009. Profit accrual is expected to be weighted heavily
towards the latter part of the year, as in 2009. The profit performance in the
second half of the year will be influenced substantially by the extent of
activity in the grain and oilseed markets, which at this stage of the year is
still difficult to assess.
The profit outlook for the second quarter is more challenging than a year ago.
If the industrial action in the food industry were to be prolonged, this would
affect net sales and profits in all the Group's Finnish businesses. The profit
performance in the Seafood business will be affected by the sharp rise seen in
salmon and rainbow trout raw material costs and by the success with which these
higher costs can be transferred to sales prices.
CONSOLIDATED INCOME STATEMENT
EUR million Q1/2010 Q1/2009 2009
Net sales 74.8 64.7 266.0
Other operating income 0.4 0.3 1.5
Operating expenses -72.8 -64.4 -257.3
Depreciation -1.3 -1.3 -5.3
Impairments 0.0 - -0.1
Share of profits of associated companies -0.1 0.0 2.0
Operating profit 0.9 -0.7 6.8
Financial income and expenses 0.3 0.3 0.5
Profit before taxes 1.2 -0.4 7.3
Income taxes -0.4 0.1 -1.5
Profit for the period 0,8 -0.3 5.8
Attributable to
Equity holders of the parent 0.8 -0.2 5.8
Non-controlling interests - -0.1 -
Basic and diluted earnings per share,
calculated of the profit attributable
to the shareholders of the parent
company, EUR 0.13 -0.04 0.94
STATEMENT OF COMPREHENSIVE INCOME
EUR million Q1/2010 Q1/2009 2009
Profit for the period 0.8 -0.3 5.8
Other comprehensive income
Cash flow hedges -0.3 0.9 1.1
Taxes related to cash flow hedges 0.1 -0.3 -0.3
Translation differences 0.5 0.7 1.4
Total comprehensive income 1.1 1.0 8.0
Attributable to
Equity holders of the parent 1.1 1.0 8.0
Non-controlling interests - 0.0 -
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million 31 March 31 March 31 Dec
2010 2009 2009
ASSETS
Non-current assets
Intangible assets 5.6 5.8 5.6
Goodwill 7.1 6.4 6.9
Tangible assets 37.4 43.0 37.9
Investment in associated companies 24.0 25.1 24.0
Available-for-sale investments 0.1 0.1 0.1
Receivables 1.9 3.1 1.8
Deferred tax assets 0.9 1.2 1.1
Non-current assets total 76.9 84.6 77.4
Current assets
Inventories 40.8 49.4 48.1
Receivables 46.3 31.1 25.5
Income tax receivable 0.1 0.2 0.1
Financial assets at fair value
through profits 5.3 3.7 17.2
Cash and cash equivalents 3.9 9.3 7.9
Current assets total 96.3 93.7 98.7
Total assets 173.2 178.4 176.1
EUR million 31 March 31 March 31 Dec
2010 2009 2009
EQUITY AND LIABILITIES
Equity attributable to the equity
holders of the parent 133.4 136.1 137.3
Non-controlling interests - 0.4 -
Total equity 133.4 136.5 137.3
Non-current liabilities
Deferred tax liabilities 3.7 4.1 4.1
Long-term financial liabilities 2.0 4.6 2.4
Non-current provisions 0.2 0.1 0.2
Other non-current liabilities 0.0 0.2 -
Non-current liabilities total 6.0 9.0 6.6
Current liabilities
Short-term financial liabilities 0.4 4.0 0.9
Income tax payable 1.9 1.0 1.5
Trade payables and other liabilities 31.6 27.9 29.7
Current liabilities total 33.9 32.8 32.1
Total liabilities 39.9 41.8 38.8
Total equity and liabilities 173.2 178.4 176.1
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million Q1/2010 Q1/2009 2009
Net profit for the period 0.8 -0.3 5.8
Adjustments, total -0.1 1.5 6.5
Change in net working capital -15.3 6.3 14.9
Financial expenses paid -0.7 -0.2 -1.8
Interests received 0.1 0.3 1.0
Taxes paid -0.1 0.4 -0.6
Net cash flow from operating activities -15.3 8.1 25.8
Investments in tangible and intangible assets -0.4 -0.5 -2.7
Proceeds from sales of tangible
and intangible assets 0.4 0.0 3.2
Transactions with non-controlling interests - - -1.2
Purchases of other investments - - -22.0
Proceeds from sales of other investments 12.0 - 9.0
Dividends received from investing activities - - 3.3
Net cash flow from investing activities 11.9 -0.5 -10.4
Repayments of short-term loans -0.2 -8.1 -9.5
Repayments of long-term loans -0.3 -0.1 -2.7
Payment of financial lease liabilities - 0.0 0.0
Dividends paid - - -5.3
Cash flows from financing activities -0.5 -8.2 -17.5
Net change in cash and cash equivalents -4.0 -0.5 -2.0
Cash and cash equivalents at the
beginning of the period 7.9 9.9 9.9
Cash and cash equivalents at the
end of the period 3.9 9.3 7.9
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
EUR million
A = Share capital
B = Share premium account
C = Net unrealised gains
D = Other reserves
E = Own shares
F = Translation differences
G = Retained earnings
H = Attributable to equity holders of the parent company total
I = Non-controlling interests
J = Shareholders' equity total
A B C D E F G H I J
Shareholders'
equity at
1 Jan 2010 12.6 23.4 0.0 7.2 -1.8 -0.5 96.5 137.3 - 137.3
Dividend
distribution - - - - - - -4.7 -4.7 - -4.7
Other changes - - - - - - -0.2 -0.2 - -0.2
Total comprehensive
income - - -0.2 0.0 - 0.5 0.8 1.1 - 1.1
Shareholders'
equity at
31 March 2010 12.6 23.4 -0.2 7.2 -1.8 0.0 92.1 133.4 - 133.4
Shareholders'
equity at
1 Jan 2009 12.6 23.4 -0.8 7.2 -1.8 -1.9 96.6 135.1 0.5 135.6
Total comprehensive
income - - - 0.6 - 0.7 -0.2 1.0 -0.1 1.0
Shareholders'
equity at
31 March 2009 12.6 23.4 -0.8 7.8 -1.8 -1.2 96.3 136.1 0.4 136.5
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The interim report has been prepared in accordance with IAS 34, Interim
Financial Reporting, as adopted by the EU. The accounting policies adopted are
consistent with those of the Group's annual financial statements for the year
ended 31 December 2009.
SEGMENT INFORMATION
A Frozen Foods
B Seafood
C Grains and Oilseeds
D Other Operations
E Total
Operating segments Q1/2010
EUR million A B C D E
Total segment sales 12.8 19.0 43.0 0.4 75.2
Intra-group sales 0.0 0.0 0.0 -0.3 -0.4
Net sales 12.7 19.0 43.0 0.1 74.8
Share of profits of
associated companies
included in operating
profit - - - -0.1 -0.1
Operating profit 0.3 -0.0 2.0 -1.2 0.9
Gross investments in
non-current assets 0.0 0.3 0.1 0.0 0.4
Corporate acquisitions
and other share
purchases - - - - -
Depreciations 0.5 0.5 0.2 0.2 1.3
Impairments - 0.0 - - 0.0
Personnel 172 360 59 11 602
Operating segments Q1/2009
EUR million A B C D E
Total segment sales 12.9 18.5 33.2 0.4 65.1
Intra-group sales 0.0 0.0 0.0 -0.3 -0.4
Net sales 12.9 18.5 33.2 0.1 64.7
Share of profits of
associated companies
included in operating
profit - - - 0.0 0.0
Operating profit 0.4 -0.9 0.9 -1.1 -0.7
Gross investments in
non-current assets 0.4 0.0 0.1 - 0.5
Corporate acquisitions
and other share purchases - - - - -
Depreciations 0.4 0.5 0.2 0.2 1.3
Impairments - - - - -
Personnel 179 400 63 10 652
Operating segments 1-12/2009
EUR million A B C D E
Total segment sales 46.0 75.9 143.4 2.4 267.8
Intra-group sales -0.1 0.0 0.0 -1.6 -1.7
Net sales 46.0 75.9 143.4 0.8 266.0
Share of profits of
associated companies
included in operating
profit - - - 2.0 2.0
Operating profit 3.4 -2.5 7.3 -1.3 6.8
Gross investments in
non-current assets 1.9 0.6 0.3 - 2.7
Corporate acquisitions
and other share
purchases - 1.2 - - 1.2
Depreciations 2.0 2.0 0.7 0.7 5.3
Impairments - - 0.1 - 0.1
Personnel 205 379 62 11 657
KEY INDICATORS
31 March 31 March 31 Dec
2010 2009 2009
Shareholders' equity per share, EUR 21.56 21.99 22.19
Equity ratio, % 77.0 76.5 78.0
Gearing, % -5.0 -3.3 -15.8
Gross investments in non-
current assets, EUR million 0.4 0.5 2.7
Corporate acquisitions and other
share purchases, EUR million - - 1.2
Average number of personnel 602 652 657
Average number of shares, 1 000 pcs 6,188 6,188 6,188
The key figures in this interim financial report are calculated with same
accounting principles than presented in year 2009 annual financial statements.
CONTINGENT LIABILITIES
EUR million 31 March 31 March 31 Dec
2010 2009 2009
Mortgages given for debts
Real estate mortgages 2.3 8.8 2.0
Guarantees 6.1 10.4 11.1
Non-cancellable other leases,
minimum lease payments
Real estate leases 4.5 4.8 4.3
Other leases 0.8 0.8 0.8
DERIVATIVE INSTRUMENTS
Outstanding nominal values of
derivative instruments
Forward currency contracts 2.8 2.4 4.0
Commodity derivative instruments 6.2 13.5 9.2
CONTINGENT ASSETS
The present value of proceeds from
the sale of shares in the joint
entry account 0.7 - 0.7
INVESTMENT COMMITMENTS
Lännen Tehtaat does not have any significant investment commitments on 31 March
2010.
CHANGES IN TANGIBLE ASSETS
EUR million Q1/2010 Q1/2009 2009
Book value at the beginning of the period 37.9 43.5 43.5
Acquisitions 0.3 0.2 2.0
Disposals 0.0 0.0 -4.0
Depreciations and impairments -1.1 -1.2 -4.5
Other changes 0.3 0.5 0.9
Book value at the end of the period 37.4 43.0 37.9
TRANSACTIONS WITH ASSOCIATED COMPANIES AND JOINT VENTURES
EUR million Q1/2010 Q1/2009 2009
Sales to associated companies 0.1 0.1 1.0
Sales to joint ventures 2.2 2.0 6.7
Purchases from associated companies 0.6 0.4 2.2
Long-term receivables from associated
companies 1.5 2.7 1.3
Long-term receivables from joint ventures 0.1 0.0 0.1
Trade receivables and other
receivables from associated companies 1.5 1.5 1.6
Trade receivables and other
receivables from joint ventures 0.9 0.9 0.7
Trade payables and other liabilities
to associated companies 0.0 0.0 0.2
LÄNNEN TEHTAAT PLC
Board of Directors
Further information: Matti Karppinen, CEO, tel. +358 10 402 4001
Copies to:
NASDAQ OMX Helsinki Ltd
Principal media
www.lannen.fi
