NORDIC ALUMINIUM PLC STOCK EXHANGE RELEASE Feb 28, 2007 9.00 a.m.
NORDIC ALUMINIUM PLC FINANCIAL STATEMENTS BULLETIN 2006
Nordic Aluminium’s consolidated net sales in 2006 were EUR 96.57 million
compared with EUR 80.77 million in the previous year. Consolidated operating
profit was EUR 11.07 million (2005: EUR 8.65 million). Net profit was EUR 8.06
million (EUR 6.65 million). Return on investment was 33.7 % (32.0 %) and return
on equity 27.4 % (28.4 %). The Board proposes the payment of a dividend of 2006
0.85 euro per share for a total payment of EUR 4.11 million (EUR 3.00 million).
Group structure
Nordic Aluminium Plc's parent company is Oy Lival Ab. The Nordic Aluminium
Group is made up of the parent company Nordic Aluminium Plc, operating at
Kirkkonummi and Nivala, and its subsidiaries Nordic Aluprofiler AB in Sweden
and Nordic Aluminium Inc. in the United States.
Net sales and profitability
Nordic Aluminium’s consolidated net sales in the fiscal year 2006 grew to EUR
96.57 million from EUR 80.77 million in the previous year. The growth in sales
was partly due to the high increase in aluminium world market prices but also
the operational growth exceeded 10 per cent. In lighting track production, one
of the Company’s key business areas, the growth was exceptionally good
exceeding 30 per cent.
The profit development continued its positive trend, and the Company made a
record turnover and result. Key factors were, following the strategic plan,
focusing on key operations and increasing the added value.
The share of exports and international operations were 39.1 per cent of net
sales as compared with 38.2 per cent the year before. The major export markets
in 2006 were Western Europe, the Nordic countries, Russia and North America.
Net sales per employee was EUR 0.31 million (EUR 0.26 million).
Consolidated operating profit was EUR 11.07 million. The corresponding figure
for the year before was EUR 8.65 million.
Order backlog
Nordic Aluminium's order book at the end of 2006 stood at EUR 7.95 million (EUR
5.44 million).
Research and development expenses
Nordic Aluminium's research and development expenses in 2006 were EUR 0.47
million (EUR 0.60 million), 0.5 per cent of net sales (0.7 per cent).
Investments
Gross investments in 2006 were EUR 2.42 million (EUR 2.79 million).
Profitability
Return on investment (ROI) in Nordic Aluminium in 2006 was 33.7 per cent (32.0
per cent) and return on equity (ROE) was 27.4 per cent (28.4 per cent). Diluted
earnings per share were 1.70 euros (1.42 euros). Equity per share was 6.96
euros (5.61 euros).
Balance sheet and financing
The consolidated balance sheet total at the end of the 2006 fiscal year was EUR
45.83 million (EUR 42.23 million). Current assets grew due to volume growth and
good cash flow. The positive profit development clearly strengthened the
balance sheet structure. Interest bearing liabilities were EUR 2.22 million
(EUR 3.75 million), and gearing -13.5 per cent (-6.0 per cent). Equity ratio
was 72.0 per cent (62.3 per cent). Cash flow from operations before interests
and taxes was EUR 9.29 million (EUR 10.95 million).
Authorisations
The Board has no current authorisations for the increase of the Company's share
capital, the procurement of own shares or issuing of convertible bonds or
option loans.
Share capital
The nominal value of Nordic Aluminium Plc’s share is 1.28 euros and the total
number of shares at the end of the fiscal year 2006 was 4,836,882. The
registered share capital is 6,191,208.96 euros. All shares have the same voting
and dividend rights. Nordic Aluminium Plc’s shares have been listed on the
Helsinki Exchanges since 1997.
All the warrants 1-4 of the Bond Loan with warrants 1998 of Nordic Aluminium
Plc were traded on the Helsinki Exchanges Main list. The total number of all
the warrants 1-4 was 293,200. Each right entitled to the subscription of one
Nordic Aluminium Plc share in stages during the period May 1, 1999 - May 30,
2006.
Increase in the share capital
With Nordic Aluminium warrants of 1998 was issued a total of 213,950 shares
between February 20, - May 30, 2006.
Due to these capital stock subscriptions the increase in the share capital was
a total of EUR 273,856.00, this amount was subscribed to the trade register on
May 8, 2006, May 31, 2006 and June 20, 2006. The issued capital of the Company
is now a total of EUR 6,191,208.96, and the amount of shares is 4,836,882.
The period for subscription of warrants 1998 ended on May 30, 2006.
Turnover of shares
A total of 760,788 Nordic Aluminium Plc shares were traded on the stock market
in 2006. This corresponds to 15.7 per cent (11.9 per cent) of the Company's
total capital stock. The year's highest quotation was 21.50 euros (15.50 euros)
and the lowest 15.05 euros (9.44 euros). The average quotation was 18.57 euros
(12.32 euros). On the last trading day of the year the share traded at an
average price of 19.77 euros (15.50 euros).
Shares and ownership
There were no major changes in the ownership of Nordic Aluminium Plc during the
year. At the end of the fiscal year 2006 Nordic Aluminium Plc’s ownership was
as follows:
The biggest shareholders Dec 31, 2006 Number of Share of capital
Owner shares and votes
%
Oy Lival Ab 3,087,945 63.84
Varma Mutual Pension Employment
Insurance Company 250,000 5.17
Aktia Capital Unit Trust 225,000 4.65
Veritas Mutual Pension Insurance Company 169,000 3.49
Evli-Select Mutual Fund 158,800 3.28
Lival-Lindström, Stig 136,624 2.82
Fondita Micro Cap Mutual Trust 45,000 0,93
Rausanne Oy 43,959 0,91
Teknologiateollisuus ry 31,000 0.64
Others 689,554 14.27
Total 4,836,882 100.00
The number of nominee-registered shares at the end of 2006 was 43,101, which
equals 0.89 per cent of the company's shares and votes. The total number of
shareholders at the end of the year was 806.
Shareholders by sector Dec 31, 2006 Number of Share
shares
%
Companies 3,206,356 66.29
Financial and insurance institutions 514,110 10.63
Associations 443,700 9.17
Non-profit associations 47,651 0.99
Households 623,636 12.89
Owners outside Finland 1,429 0.03
Total 4,836,882 100.00
Shareholders by size of holdings Dec 31, 2006
Number of shares Number of % Number of %
owners shares
1 – 200 391 48.51 44,503 0.92
201 – 2,000 353 43.80 220,289 4.56
2,001 – 20,000 49 6.08 296,526 6.13
20,001 – 200,000 10 1.24 712,619 14.73
200,001 – 2,000,000 2 0.25 475,000 9.82
2,000,001 – 9,999,999 1 0.12 3,087,945 63.84
Total 806 100.00 4,836,882 100.00
Insider issues
Nordic Aluminium Plc adheres to the guidelines for insiders issued by Helsinki
Exchanges (OMX Helsinki). Nordic Aluminium Plc's permanent insiders are:
Members of the Board of Directors, Managing Director & CEO, Secretary of the
Board and the Members of the Management Group as well as named individuals
within the Company's financial administration, sales and marketing and
production. The appointed insider issues responsible is the Company's CFO.
Up-to-date insider data is maintained in the Central Securities Depository at
Central Securities Depository's premises.
The Company recommends that the permanent insiders' investments in the
Company's are to be long-term investments. According to Helsinki Exchanges'
guidelines for insiders and the Company's own Insider Guidelines trading in the
Company's securities should be done at the times when the market has as exact
information as possible of the issues and matters influencing the value of the
security.
Annual General Meeting
The Annual General Meeting of Nordic Aluminium Plc on April 5, 2006 adopted the
financial statements and discharged the members of the Board and the Managing
Director from liability. The Meeting also decided to approve the proposal of
the Board for a dividend of 2005 EUR 0.65 per share (EUR 0.50) or a total of
EUR 3,00 million.
The Annual General Meeting elected Stig Lival-Lindström, Robert Paajanen and
Eric Westerlund regular members of the Board of Directors. The board elected
Stig Lival-Lindström Chairman on the same date.
The Annual General Meeting elected Authorised Public Accountants Tomi Englund,
Authorised Public Accountant and Lars Winberg, Authorised Public Accountant,
auditors, with Ernst & Young Oy, deputy auditor.
Personnel
In 2006 the Nordic Aluminium Group had an average number of 311 employees. The
corresponding number the year before was 313. At the end of 2006 the Group had
289 employees as compared with the number of 314 on the previous year.
Prospects
The market demand in the whole aluminium trade is exceptionally good, which is
visible in increased order stocks and prolonged delivery times. The demand is
expected to continue at a good level the first half of the year. Growth
prospects in export are positive for the electrotechnical products.
The key target for the current year is increasing the operative efficiency.
Main measures are: the development of efficient and clear material flows,
focused investments on operative efficiency and increase of technical know-how
on all levels.
The Company aims at a good profit development for the whole year.
The Board’s proposal on the allocation of profits
The net profit of the parent company for the year is EUR 8,126,353.23 and its
distributable earnings EUR 19,248,934.48.
The Board proposes that a dividend of EUR 0.85 per share, or a total of EUR
4,111,349.70, be declared and that the remaining balance of EUR 15,137,584.78
be retained in profit and loss account.
The Board has evaluated the company’s future and finds that the proposal above
does not risk the liquidity.
CONSOLIDATED INCOME STATEMENT
(EUR million), SUMMARY 1.1. - 1.1. -
31.12.2006 31.12.2005
Net sales 96.57 80.77
Other operating income 0.03 0.10
Increase(+) or decrease(-)
finished goods and
work in progress 1.30 2.42
Raw materials and
consumables -52.60 -42.06
Personnel expenses -15.10 -14.10
Depreciation and
reduction of value -3.86 -4.98
Other operating expenses -15.26 -13.52
Operating profit 11.07 8.65
Financial items -0.13 0.17
Profit before taxes 10.94 8.82
Income taxes -2.88 -2.17
Net profit for the period 8.06 6.65
CONSOLIDATED BALANCE SHEET
EUR million Dec 31, Dec 31,
2006 2005
Non-current assets
Tangible assets 11.79 13.24
Goodwill 2.25 2.25
Intangible assets 1.30 1.29
Other financial assets 0.00 0.05
Tradable financial assets 0.02 0.02
Deferred tax liabilities 0.10 0.14
Total 15.46 16.99
Current assets
Inventories 10.24 8.49
Accounts receivable and other
current assets 13.46 11.41
Financial assets 6.67 5.34
Total 30.38 25.23
Cash in hand and at banks 45.83 42.23
EUR million Dec 31, Dec 31,
2006 2005
Shareholders' equity and liabilities
Equity
Shareholders' equity 6.19 5.92
Share premium account 3.45 2.11
Conversion difference -0.16 -0.15
Retained earnings 23.50 18.45
Total 32.99 26.33
Long-term liabilities
Deferred tax liabilities 0.62 0.75
Provisions 0.14 0.00
Interest bearing liabilities 0.75 2.21
Total 1.51 2.96
Short-term liabilities
Accounts payable 9.77 11.32
Provisions 0.09 0.09
Short-term interest
bearing liabilities 1.48 1.54
Total 11.33 12.94
Total liabilities 12.84 15.90
Total shareholders' equity and
liabilities 45.83 42.23
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 1-12/06 1-12/05
Cash flow from operations
Net profit (loss) 8.06 6.65
Corrections
Depreciation according to plan 3.86 4.98
Financial items 0.13 -0.17
Taxes 2.88 2.17
Cash flow before change
in net working capital 14.93 13.62
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) -2.05 -2.05
Inventories
increase(-)/decrease(+) -1.75 -2.23
Short-term interest bearing liabilities
increase(+)/decrease(-) -1.84 1.60
Total -5.64 -2.68
Cash flow from operations before
interests and taxes 9.29 10.95
Paid interests and payments for
other financial expenses -0.33 -0.24
Received interests and payments
from other financial income 0.20 0.41
Paid income taxes -2.66 -1.59
Cash flow from operations(A) 6.49 9.53
Cash flow from investing activities
Investments in tangible and
intangible assets -2.42 -2.79
Income from sales of tangible
and intangible assets 0.00 0.90
Repayment of loan receivables 0.05 0.02
Cash flow from investments(B) -2.37 -1.87
Cash flow from financial items
Rights issue 1.62 0.06
Withdrawals of short-term loans 4.30
Amortization of short-term loans -4.37 -0.94
Amortization of long-term loans -1.33 -1.53
Dividends paid -3.01 -2.31
Cash flow from financial items(C) -2.78 -4.72
Change in cash flow (A+B+C) 1.34 2.94
Conversion difference 0.00 0.00
Total 1.34 2.94
Cash in hand and at banks
in the beginning of period 5.34 2.39
Cash in hand and at banks
in the end of period 6.67 5.34
Change 1.34 2.94
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Share prem. Conversion Retained Total
Equity account difference earnings equity
Equity
1.1.2005 5.91 2.06 -0.15 14.11 21.93
Conversion diff. 0.00 0.00
Net profit 6.65 6.65
Earnings and costs total 6.65
Dividends -2.31 -2.31
Warrants used 0.01 0.05 0.06
-2.25
Equity
31.12.2005 5.92 2.11 -0.15 18.45 26.33
Equity
1.1.2006 5.92 2.11 -0.15 18.45 26.33
Conversion
difference 0.00 0.00
Net profit 8.06 8.06
Earnings and costs total 8.05
Dividends -3.00 -3.00
Warrants used 0.27 1.35 1.62
-1.38
Equity
31.12.2006 6.19 3.45 -0.16 23.50 32.99
EUR million 1-12/06 1-12/05
Equity/share, EUR 6.96 5.61
Investments in tangible and
intangible assets, EUR mill. 2.42 2.79
Average number of personnel 311 313
CONTINGENT LIABILITIES
EUR million Dec 31, Dec 31,
2006 2005
Consignation liability 2.25 4.30
Rental and leasing liabilities 11.57 2.42
Corporate mortgages given 8.41 8.41
KEY FIGURES
EUR million 1-12/06 1-12/05
Diluted earnings per share, EUR 1.70 1.42
Equity ratio, % 72.0 62.3
Gearing, % -13.5 -6.0
Balance sheet total, EUR million 45.83 42.23
Order backlog:
EUR million 1-12/06 1-12/05
7.95 5.44
Geographical segments:
Net sales
EUR million 1-12/06 1-12/05
Finland 58.80 49.95
Other countries 37.76 30.82
Total 96.57 80.77
The financial statements for the fiscal year 2006 have been audited. The key
data have been calculated as instructed by the Finnish Book-keeping Board.
Nordic Aluminium Plc’s Annual General Meeting will be held on March 29, 2007.
Nordic Aluminium Plc’s next Interim Report for the first quarter of 2006 will
be published on April 25, 2007. All releases can be viewed at Nordic
Aluminium's homepages www.nordicaluminium.fi.
Kirkkonummi February 28, 2007
NORDIC ALUMINIUM PLC
Board of Directors
Robert Paajanen
Managing Director
For further information please contact:
Robert Paajanen, Managing Director, Nordic Aluminium,
phone +358 9 6825 2500
Distribution:
Helsinki Exchanges
The Main Media
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