RAUTE CORPORATION FINANCIAL STATEMENT RELEASE 11 FEBRUARY 2009 AT 9.00 A.M.
RAUTE CORPORATION - FINANCIAL STATEMENTS JANUARY 1 - DECEMBER 31, 2008
- Net sales totaled EUR 98.5 million (MEUR 110.8), down 11.1 percent.
- Operating profit was EUR 6.3 million (MEUR 8.6) and profit before tax
EUR 6.9 million (MEUR 9.0).
- Earnings per share were EUR 1.18 (EUR 1.65).
- Order intake was only EUR 67 million (MEUR 90) due to the weakened market
situation. The order book decreased to a low level, EUR 24 million (MEUR 56).
- The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.70 per share be paid for 2008.
- Net sales and operating profit are expected to decline significantly in 2009.
Achieving a positive result will be challenging.
MR. TAPANI KIISKI, PRESIDENT AND CEO: OUR CUSTOMERS' PLANS HIT BY THE FINANCIAL
CRISIS
The positive development of Raute's profitability stopped at the end of the year
due to the sharp decline in net sales in the fourth quarter. We succeeded well
in our operations and cost management, achieving our targets, but this did not
compensate the decline in net sales. The share of fixed costs is significant in
Raute's business, which is based on profound competence in the field, and thus
any changes in net sales are quickly reflected in profitability.
The demand for our customers' products remained weak also in the fourth quarter.
The slow demand in the construction and transport industries kept the production
of the plywood and LVL industries at a low level. The capacity utilization rates
of several of our customers' mills decreased by dozens of percents compared to
the normal level. In addition, as the financial crisis became critical in
September, its full impact on our clientele could be seen in the fourth quarter,
and several promising projects were postponed due to financing difficulties.
Our customers' market situation was also reflected in the demand for Raute's
products and services in the fourth quarter. Our order book continued to
decrease and reached an alarmingly low level, EUR 24 million, at year-end. We
utilized all the flexibilities we have in our operating setup. Those
flexibilities are well sufficient for the normal fluctuations in the level of
business activity. Now the market disturbance has been exceptionally strong, and
we had to adapt the number of our personnel due to the shortage of work.
The demand situation has remained more or less unchanged during the past few
months. Individual large projects are in the negotiation phase, but they are
progressing slowly. Several relatively small projects to develop existing
production capacity are being planned. The low utilization rates are affecting
our maintenance and spare parts services negatively.
2009 will be very difficult. We began the year with a record-low order book and
by adapting to the situation. The net sales and result for the first quarter
will not be satisfactory. The situation can only be changed by the progress of
customers' projects and the recovery of demand. I hope that the Finnish
government will contribute by implementing necessary measures. Plans and
promises must now be put into practice. Our product and service offering meets
the needs of our customers, and we have adjusted it to make it more suitable for
the present market situation. The substantial investments that we made in 2008
in product development and the competitiveness of our production will ensure
that our competitive position will be strong in the projects to be launched. We
will be ready to rise again as soon as demand recovers.
I thank all of you for the past year, and for the 99 before that, both Raute
employees and partners who have been a part of making Raute's success a reality.
MARKET SITUATION
Market situation in customer industries
The market situation for the plywood industry weakened considerably after the
summer. The demand for plywood remained at a low level in all market areas
during the latter part of the year. The weaker demand for plywood used in the
construction and transportation vehicle industries is a result of the global
economic uncertainty that began in the USA and expanded to reach global
proportions during the third quarter, and the more difficult financing of
investments. The plywood mills have adapted their production capacity to
correspond with the lower demand. However, according to publicly available
statistics, the prices for plywood remained at a normal level for the most part.
The market situation for LVL (Laminated Veneer Lumber) is difficult due to the
low level of activity in the construction industry. The production capacity of
several LVL mills is underutilized, but the prices for LVL have remained at a
normal level.
Demand for wood products technology and technology services
The weakened market situation and the more difficult financing of investments
affected the investment decisions in the plywood and LVL industries and reduced
the demand for wood products technology and modernizations. The closing of mills
and low capacity utilization rates were also reflected in the demand for
maintenance and spare parts services during the latter part of the year. Some
mill-scale investment projects are still in the planning phase in the various
market areas, but the start-up of these projects is being postponed because of
the difficult market and financing situation.
Order intake and order book
Raute's business consists of providing project deliveries and technology
services to the wood products industry. Project deliveries encompass complete
mills, production lines, and individual machines and equipment. Technology
services include maintenance, spare parts services, equipment modernization,
consulting, training, and sales of reconditioned machinery.
The order intake in 2008 was EUR 67 million (MEUR 90), of which technology
services accounted for EUR 23 million (MEUR 29). The low volume of order intake
was attributable to the weakened market situation of Raute's customer industries
and the postponement of large mill-scale projects. The postponements are
evaluated to result from the lower demand for plywood and LVL and more difficult
financing of investments.
The portion of project deliveries in the order intake in 2008 was EUR 44 million
(MEUR 61). Within project deliveries, Europe accounted for 58 percent (53%) and
Russia for 32 percent (39%). The share of other market areas was 10 percent
(8%). The portion of technology services in the order intake in 2008 was
EUR 23 million (MEUR 29).
In the fourth quarter, the order intake was only EUR 9 million (MEUR 42). The
order book declined by EUR 8 million (MEUR +12).
The order book at the end of 2008, EUR 24 million (MEUR 56), was at a low level.
Competitive position
There have been no essential changes in Raute's competitive position in 2008.
Customers appreciate comprehensive competence and strong technology development
in their strategic investments aimed at ensuring their ability to deliver and
provide service. The competitive edge provided by Raute's technology plays an
important role when customers select their suppliers.
NET SALES AND RESULT
The Group's net sales in 2008 totaled EUR 98.5 million (MEUR 110.8), down
11.1 percent from the previous year. The decline in net sales was due to the low
order intake.
Net sales were generated exclusively by project deliveries and technology
services related to the wood products technology business.
Net sales for project deliveries totaled EUR 73 million (MEUR 82), down
10 percent from the previous year, accounting for 74 percent (74%) of net sales.
The plywood industry's share of the net sales of project deliveries was
99 percent (82%), while the LVL industry's share was 1 percent (16%).
Net sales for technology services totaled EUR 25 million (MEUR 29), down
14 percent from the previous year, accounting for 26 percent (26%) of net sales.
The decline in net sales reflected the weak market situation especially in North
America.
Europe took over as the biggest market area in 2008, accounting for 48 percent
(31%) of net sales. Russia's share of net sales was 35 percent (35%), and North
America's share fell to 10 percent (22%). The share of other market areas fell
to 7 percent (12%). Finland accounted for 16 percent (13%) of net sales.
The Group's operating profit was EUR 6.3 million (MEUR 8.6) and accounted for
6.4 percent (7.8%) of net sales. The 11 percent decline in net sales compared to
the previous year weakened the overall profitability measured as operating
profit, despite the successful and improved cost management of projects.
In order to adapt to the drastically weakened market situation in North America,
restructuring measures were taken in Raute's North American companies in April.
A total of EUR 0.6 million of one-time costs relating to the restructuring was
recorded in 2008. Adaptation measures were also started in the units in Finland
in December to adapt the number of personnel to the lower order book.
The Group's financial income and expenses totaled EUR 0.5 million (MEUR 0.4).
Profit before tax was EUR 6.9 million (MEUR 9.0) and profit for the financial
year EUR 4.7 million (MEUR 6.6).
Earnings per share for 2008 were EUR 1.18 (EUR 1.65). There were no dilutive
items. Return on investment was 19 percent (29%) and return on equity 14 percent
(21%).
Due to the slowing down of the markets, net sales for the fourth quarter of 2008
only amounted to EUR 18.6 million (MEUR 25.7). Operating profit for the same
period was EUR 0.2 million (MEUR 2.4) and accounted for 1.1 percent (9.5%) of
net sales. The lower profit margin compared to early 2008 resulted from the fact
that net sales declined by almost one third compared to the average of the first
quarters. Profit in the fourth quarter amounted to EUR 0.2 million (MEUR 1.6),
and earnings per share were EUR 0.04 (EUR 0.41).
DEVELOPMENT OF OPERATIONS
Raute Corporation established a representative office in Moscow in June 2008.
The aim is to improve Raute's customer service and strengthen its local presence
in Russia.
The development of the subcontracting network continued. Raute's own ability to
deliver was improved by investing in production equipment at the Nastola main
production plant and the Chinese plant. In order to support the management of
deliveries, the ERP information system already in place in the other Group units
was introduced at the Chinese unit.
RAUTE TURNED 100 YEARS
Raute turned 100 years on April 30, 2008. The company celebrated its 100-year
journey together with its partners and employees in the various units. Some 400
visitors visited the Nastola unit during the open days organized in August.
GROUP STRUCTURE
Mecano Group Oy, a wholly-owned subsidiary of Raute Corporation focusing on
machine vision and analyzing applications, was merged with the parent company on
December 31, 2008. The merger will clarify the Group structure and improve the
efficiency of operations. The merger will have no impact on Mecano's product
offering, customer service or personnel.
FINANCING
The Group's financial position remained good throughout the year. At the end of
the financial year, the equity ratio was 60.5 percent (70.3%) and gearing
‑31.0 percent (-32.5%). The Group's balance sheet total stood at
EUR 60.2 million (MEUR 54.8) at the end of 2008. The fluctuation in balance
sheet items and the key figures based on them is a result of differences in the
timing of customer payments and the cost accumulation from project deliveries,
which is typical of project business.
The Group's cash and cash equivalents, including financial assets recognized at
fair value through profit or loss, were EUR 21.1 million (MEUR 11.3) at the end
of the financial year. The change in cash and cash equivalents in the reporting
year was EUR 9.8 million positive (MEUR -12.7). Operating cash flow was
EUR 6.9 million positive (MEUR -10.2). Cash flow from investment activities
totaled EUR -3.1 million (MEUR -0.7). Cash flow from financing activities
totaled EUR 6.0 million (MEUR -1.8) and includes EUR 10 million in new TyEL
loans and EUR 4.0 million in dividend payments for 2007 (MEUR 2.8).
The company made preparations for market disturbances caused by the financial
crisis by raising a EUR 10 million TyEL loan in November 2008. Due to the new
loan, interest-bearing liabilities amounted to EUR 10.5 million (MEUR 0.5) at
the end of 2008.
Raute Corporation has a EUR 10 million commercial paper program. The company
renewed a total of EUR 17 million of its bilateral long-term financing limits
during the summer, of which EUR 14 million (MEUR 15) are still unused after the
collateral arrangements made for the TyEL loan.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE
Research and development costs totaled EUR 4.9 million (MEUR 4.3) in the
reporting year, representing 5.0 percent (3.9%) of net sales.
Investments totaled EUR 3.2 million (MEUR 1.9), and were at a higher level than
in the past few years. The largest single investments involved the development
of production at the plants in Nastola and China. The investments made in 2008
included EUR 0.7 million (MEUR 0.2) in development costs. Other investments
consisted of information system and replacement investments.
PERSONNEL
Converted to full-time employees, the Group's average headcount was 538 (566)
in 2008. The number of personnel at the end of the year was 573 (570). Group
companies outside Finland accounted for 23 percent (24%) of employees.
In April, the number of personnel in the North American units was adapted to the
continued low demand.
In December, adaptation measures concerning the entire personnel in the Group's
Finnish companies were started due to the reduced order book and weakening
market and demand situation. The maximum duration of the lay-off periods will be
90 days, and the termination of employment relationships will affect a maximum
of 9 members of the office staff.
The Raute Leader program was completed during the year to enhance the leadership
skills of the Group's supervisors. A total of 16 middle-management supervisors
and experts completed the training program which coached them to meet future
challenges. 1.0 percent (0.9%) of the payroll was invested in the training of
personnel.
CORPORATE GOVERNANCE
Raute Corporation's Annual General Meeting was held on April 2, 2008. It adopted
the financial statements for 2007, granted discharge from liability to those
accountable and decided to distribute a dividend of 1.00 euro per share.
The Annual General Meeting on April 2, 2008 elected the company's Board of
Directors for a term that expires at the end of the Annual General Meeting
of 2009. Mr. Jarmo Rytilahti was elected Chairman of the Board, Ms. Sinikka
Mustakallio Vice-Chairman and Mr. Ilpo Helander, Mr. Mika Mustakallio, Mr. Panu
Mustakallio and Mr. Jorma Wiitakorpi as Board members. All of the Board members
are independent of the company. Chairman Jarmo Rytilahti and two of the members
(Ilpo Helander and Jorma Wiitakorpi) are independent of major shareholders.
The chairman of the Appointments Committee is Mr. Jarmo Rytilahti, and Ms.
Sinikka Mustakallio and Mr. Ville Korhonen - a representative of major
shareholders - act as its members. The Working Committee continues to be chaired
by Mr. Jarmo Rytilahti and its members are Ms. Sinikka Mustakallio and Mr. Jorma
Wiitakorpi.
In the Annual General Meeting, Authorized Public Accountants Anna-Maija Simola
and Antti Unkuri were elected as auditors, and Ernst & Young Oy, an authorized
public accounting company, as deputy auditor.
The Group's President and CEO is Raute Corporation's President and CEO Mr.
Tapani Kiiski. The Group's Executive Board also includes Ms. Arja Hakala, CFO;
Mr. Petri Strengell, Vice President, Technology and Operations; Mr. Timo Kangas,
Vice President, Technology Services; and Mr. Bruce Alexander, Vice President,
North American Business Operations.
SHARES
The number of Raute Corporation's shares at the end of the reporting year
totaled 4,004,758, of which 991,161 were series K shares (ordinary share,
20 votes/share) and 3,013,597 series A shares (1 vote/share). The shares have a
nominal value of two euros. Series K shares can be converted to series A shares
under the terms described in Article 3 of the Articles of Association. If a
series K share is transferred to a new owner who does not previously hold
series K shares, the other shareholders of the K series have the right to redeem
the share under the terms described in Article 4 of the Articles of Association.
Raute Corporation's series A shares are listed on NASDAQ OMX Helsinki Ltd. The
trading code is RUTAV. Raute Corporation has signed a market making agreement
with Nordea Bank Finland plc in compliance with the Liquidity Providing (LP)
requirements issued by NASDAQ OMX Helsinki Ltd.
The company's market capitalization at the end of the reporting year was
EUR 25.6 million (MEUR 57.5), with series K shares valued at the closing price
of series A shares, EUR 6.40 (EUR 14.35), on December 31, 2008.
Other share-related information is presented in the figures section of this
report.
Board authorizations
The company's Board of Directors has been authorized by the Annual General
Meeting held on April 2, 2008, to decide on the buyback and directed issue of a
maximum of 400,000 of the company's series A shares. The authorizations are
effective until the next Annual General Meeting. The Board of Directors has not
exercised the authorization.
DIVIDEND FOR THE YEAR 2007
The Annual General Meeting decided to distribute a dividend of EUR 1.00 per
share for 2007. The date of payment was April 14, 2008. The total amount of
dividend paid was EUR 4.0 million.
SHAREHOLDERS
The number of shareholders totaled 1,312 at the beginning of the year and 1,528
at the end of the reporting year. Series K shares are held by 46 private
individuals (46). The management held 4.7 percent (4.7%) of company shares and
9.1 percent (9.1%) of votes. Nominee-registered shares accounted for 2.4 percent
(2.8%) of shares.
The company did not possess company shares during 2008 or hold them as security.
No flagging notifications were given to the company in 2008.
SEASONAL FLUCTUATION IN BUSINESS
The Group's net sales and working capital fluctuate every quarter due to
different types of project deliveries and their schedules. Business does not
involve systematic seasonal changes, with the exception of technology services
delivered to Finland, which mainly take place during service shutdowns in the
summer.
BUSINESS RISKS
The uncertainty in the development of the global economy will increase
near-future risks, and it is difficult to predict all of its implications. The
financial crisis, which expanded to global proportions in early fall 2008, will
make business financing more difficult and increase financing costs which will
affect investment demand and weaken the company's market outlook for the short
term and affect the company's counterparty risk. The company's loans have fixed
interest rates, and thus the company is not subject to interest rate risk.
Raute's liquid assets are in Finnish and Swedish banks.
The Group is prepared for fluctuations in the working capital tied up in project
operations. Raute Corporation has a EUR 10 million domestic commercial paper
program, which allows the company to issue commercial papers maturing in less
than one year. The company also has unused bilateral non-current credit
regulation agreements worth EUR 14 million.
Impact of economic fluctuations on business operations
Raute supplies technology and services to plants in the wood products industry.
Business is characterized by sensitivity to economic fluctuations due to changes
in the investment activity of customer industries. The impact that the cyclical
nature of project deliveries has on the Group's performance is mitigated by
systematically increasing the share of technology services, by developing the
subcontracting network, and by focusing on core competencies in the company's
own operations. In the long term, the Group's growth opportunities are increased
and the impact of economic fluctuations balanced by developing operations in
market areas where the company's market share is still small, and by creating
products for new customer groups, such as the decorative veneer industry.
Delivery and technology risks
The bulk of Raute's business operations consist of different kinds of project
deliveries, which always expose the company to risks caused by, for example,
each customer's end product, production methods, or tailored solutions related
to raw materials. At the quotation and negotiation phase, the company has to
take risks relating to the promised performance figures and make estimates of
implementation costs. Contract, product liability, implementation, cost, and
capacity risks are managed using project management procedures that comply with
the company's certified quality system.
Raute emphasizes product development and continuously develops new technology in
order to offer solutions for customers' expanding needs. The functionality and
capacity of new solutions cannot be fully verified until the solutions can be
tested under production conditions in conjunction with the first customer
deliveries. Technology risks are reduced by the conditions of delivery contracts
and by restricting the number of simultaneous first deliveries.
Hedging of foreign currency receivables
Items related to business payments and denominated in foreign currency are
hedged with currency derivatives when contracts take effect.
Forward contracts in Canadian and US dollars related to the economic hedging of
payments from binding sales agreements had a nominal value of EUR 0.5 million
(MEUR 2.5) at the end of the reporting year. The company had no forward
contracts involving fair value hedging at the end of the reporting year
(MEUR 0).
Credit risk
The financial crisis and the weakening of the global economy affect the
company's counterparty risk. The maximum counterparty risk relating to
customers' solvency is the amount of receivables relating to binding sales
contracts that are not covered by bank guarantees, letters of credit or other
securities. Received bank guarantees and letters of credit covered 33 percent
(44%) of the accounts receivables and the percentage of completion receivables
recorded in the balance sheet and 23 percent (9%) of the order book at the end
of the financial year. According to the management's best estimate, the Group's
receivables do not include any overdue accounts receivables resulting from
counterparties' permanent insolvency.
SOCIETY AND THE ENVIRONMENT
The environment is one of the values that guide Raute's operations. Raute has
been systematically developing the environmental soundness of its products and
services and aims to reduce the environmental impact of its operations. The
Group abides by the principles of good corporate citizenship, taking into
consideration nature and its protection, as well as the operating methods of the
surrounding society, and by showing respect to local cultures.
Raute's operations mainly affect the environment indirectly when the company's
technology is used in the production processes of the wood products industry.
Raute's technology enables the wood products industry to substantially reduce
the environmental load caused by its operations through, for example, more
efficient use of raw materials, additives, and energy.
The Group's own operations do not involve considerable environmental risks that
might have a direct impact on the Group's business operations or financial
position. The Nastola and Jyväskylä plants manage environmental matters in
compliance with a certified environmental system. At the Canadian plant,
environmental surveys are carried out regularly by an external assessor. The
operations and ethical principles of the partner and subcontractor networks are
also subjected to systematic inspection.
Raute aims to continuously reduce energy consumption, decrease the volume of
waste, and develop the working environment.
EVENTS AFTER THE REPORTING YEAR
At the end of January 2009, negotiations in accordance with the Act on
Co-operation within Undertakings were started in the Group's Finnish units on
additional adaptation measures relating to personnel and other arrangements to
adapt operations to the continued weak market situation. The structural changes
that the company has implemented in recent years to increase its ability to
adapt to the normal fluctuations in demand typical of project business are not
sufficient enough to enable the adaptation of the operations to the present
exceptional market situation.
The Board of Directors of Raute Corporation has decided to utilize the
authorization it was given by the Annual General Meeting of Share holders on
April 2, 2008 to acquire the company's own series A shares. The shares are
acquired to be used as part of the incentive schemes for key personnel. The
purchase of the shares will begin at earliest on February 19, 2009 and will end
at latest on April 2, 2009.
BOARD PROPOSALS TO THE ANNUAL GENERAL MEETING
Raute Corporation's Annual General Meeting will be held in Lahti on
April 2, 2009 at 6:00 p.m.
The Board of Directors will propose to the Annual General Meeting that a
dividend of EUR 0.70 per share be paid for series A and K shares, that is, a
total of EUR 2.8 million, on April 16, 2009. The record date for dividend
payments is April 7, 2009.
The Board of Directors proposes to the Annual General Meeting that the Meeting
continue the Board of Directors' existing authorization to decide on the buyback
and directed issue of a maximum of 400,000 of the company's series A shares
until the next General Meeting.
In addition, the Board of Directors proposes to the Annual General Meeting that
the Meeting decide to amend the Articles of Association as follows, mainly due
to the new Limited Liability Companies Act, which came into force on
September 1, 2006:
- The set time periods relating to the right of redemption should be replaced by
the maximum periods set in the Act, with the exception of the time period
stipulated for the request for redemption made by shareholders entitled to
redemption (Article 4).
- The provisions concerning the tally day should be deleted (Article 5).
- The list of the Board's tasks should be deleted (Article 8).
- A provision on the number of the company's auditors and a mention about an
authorized public accounting company should be added (new Article 8).
- The provisions on signing for the company should be amended to make them
consistent with the terminology of the new Act, and the mention on the Board's
authority to grant and withdraw procurations should be transferred to the same
Article (Article 9).
- The provision on the convocation period of a General Meeting should be
deleted, and the decision-making responsibilities should be amended so that the
newspapers in which the notice of the General Meeting is published are decided
by the Board, not by the General Meeting. A mention that the notice must also be
published on the company's website should be added (Article 12).
- The agenda of the Annual General Meeting should be amended in part to
correspond with the contents of the new Act, and the principles for indemnifying
travel expenses to the Chairman of the Board, the Board members and the auditors
should be added in the list of items to be decided on (Article 13).
- Article 14 referring to making decisions about amendments to the Articles of
Association, about the company's entrance into liquidation and about an increase
of the share capital in accordance with the provisions of the Companies Act
should be deleted (Article 14).
The Board of Directors proposes to the Annual General Meeting that Ms.
Anna-Maija Simola and Mr. Antti Unkuri, Authorized Public Accountants, be
elected as auditors, and Ernst & Young Oy, an authorized public accounting
company, as deputy auditor.
Raute Corporation's Appointments Committee has announced that it will propose to
the Annual General Meeting, which will convene on April 2, 2009, that six be
confirmed as the number of Board members and that Mr. Ilpo Helander, Mr. Mika
Mustakallio, Mr. Panu Mustakallio and Ms. Sinikka Mustakallio of the present
members be re-elected. In addition, the Appointments Committee proposes that Mr.
Erkki Pehu-Lehtonen and Mr. Risto Hautamäki be elected as new Board members. The
Appointments Committee proposes that Mr. Erkki Pehu-Lehtonen be elected Chairman
of the Board and Ms. Sinikka Mustakallio Vice-Chairman. Mr. Jarmo Rytilahti, who
has acted as a member of Raute's Board of Directors since 2003 and been its
Chairman since 2004, has announced that he will leave Raute's Board of
Directors.
OUTLOOK FOR 2009
Due to the financial crisis and global economic uncertainty, the market
situation in Raute's customer industries is expected to remain difficult for the
entire year 2009. Investments and demand for services in the wood products
industry are expected to remain weak in all market areas, with the exception of
individual mill-scale projects, several of which are in the planning phase in
the various market areas.
2009 will be a difficult year for Raute due to the low order book and weak
continuing demand. The net sales and operating profit for 2009 are expected to
decline significantly. Achieving a positive result will be very challenging in
the present market situation, despite the adaptation measures taken.
Thanks to its strong financial position Raute is well-equipped to cope with the
economic recession. The strong market position and development efforts made in
operations and products ensure that Raute's ability to respond to the growing
demand is excellent when the markets recover.
TABLES OF CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
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| CONSOLIDATED INCOME STATEMENT | | | | |
--------------------------------------------------------------------------------
| (EUR 1 000) | Note | 1.10.- | 1.10.- | 1.1.- | 1.1.- |
--------------------------------------------------------------------------------
| | | 31.12. | 31.12. | 31.12. | 31.12. |
--------------------------------------------------------------------------------
| | | 2008 | 2007 | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 2,3,4 | 18 619 | 25 683 | 98 466 | 110 799 |
--------------------------------------------------------------------------------
| Other operating | | | | | |
--------------------------------------------------------------------------------
| income | | 14 | 386 | 95 | 461 |
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| Increase (+) or | | | | | |
--------------------------------------------------------------------------------
| decrease (-) in | | | | | |
--------------------------------------------------------------------------------
| inventories of | | | | | |
--------------------------------------------------------------------------------
| finished goods and | | | | | |
--------------------------------------------------------------------------------
| work in progress | | -108 | -252 | 404 | 42 |
--------------------------------------------------------------------------------
| Materials and | | | | | |
--------------------------------------------------------------------------------
| services | | 8 218 | 11 910 | 50 906 | 60 999 |
--------------------------------------------------------------------------------
| Expenses from | | | | | |
--------------------------------------------------------------------------------
| employee benefits | 9 | 7 062 | 8 103 | 28 592 | 28 875 |
--------------------------------------------------------------------------------
| Depreciation, | | | | | |
--------------------------------------------------------------------------------
| amortization and | | | | | |
--------------------------------------------------------------------------------
| impairment charges | | 692 | 654 | 2 751 | 2 654 |
--------------------------------------------------------------------------------
| Other operating | | | | | |
--------------------------------------------------------------------------------
| expenses | | 2 347 | 2 709 | 10 375 | 10 166 |
--------------------------------------------------------------------------------
| Total operating | | | | | |
--------------------------------------------------------------------------------
| expenses | 7 | 18 318 | 23 376 | 92 624 | 102 695 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | | 206 | 2 441 | 6 341 | 8 607 |
--------------------------------------------------------------------------------
| % of net sales | | 1 | 10 | 6 | 8 |
--------------------------------------------------------------------------------
| Financial income | | 550 | 159 | 1 268 | 660 |
--------------------------------------------------------------------------------
| Financial expenses | | -448 | -129 | -729 | -291 |
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| PROFIT BEFORE TAX | | 309 | 2 470 | 6 880 | 8 976 |
--------------------------------------------------------------------------------
| % of net sales | | 2 | 10 | 7 | 8 |
--------------------------------------------------------------------------------
| Income taxes | 6 | -131 | -843 | -2 157 | -2 375 |
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| PROFIT FOR THE PERIOD | | 177 | 1 627 | 4 723 | 6 601 |
--------------------------------------------------------------------------------
| % of net sales | | 1 | 6 | 5 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | | | | | |
--------------------------------------------------------------------------------
| Parent company | | 177 | 1 627 | 4 723 | 6 601 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | | | | | |
--------------------------------------------------------------------------------
| EUR | | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings | | 0,04 | 0,41 | 1,18 | 1,65 |
--------------------------------------------------------------------------------
| per share | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings | | 0,04 | 0,41 | 1,18 | 1,65 |
--------------------------------------------------------------------------------
| per share | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares, 1 000 pcs | | | | | |
--------------------------------------------------------------------------------
| Adjusted average | | | | | |
--------------------------------------------------------------------------------
| number of shares | | 4 005 | 4 005 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
| Adjusted average | | | | | |
--------------------------------------------------------------------------------
| number of shares | | | | | |
--------------------------------------------------------------------------------
| diluted | | 4 005 | 4 005 | 4 005 | 4 005 |
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| CONSOLIDATED BALANCE SHEET | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | Note | 31.12.2008 | 31.12.2007 |
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| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | | 2 482 | 2 546 |
--------------------------------------------------------------------------------
| Tangible assets | | 11 175 | 10 993 |
--------------------------------------------------------------------------------
| Other financial assets | | 499 | 449 |
--------------------------------------------------------------------------------
| Deferred tax assets | | 334 | 275 |
--------------------------------------------------------------------------------
| Total | | 14 491 | 14 263 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | | 4 310 | 4 515 |
--------------------------------------------------------------------------------
| Accounts receivables and | | | |
--------------------------------------------------------------------------------
| other receivables | 4 | 20 270 | 24 739 |
--------------------------------------------------------------------------------
| Financial assets at | | | |
--------------------------------------------------------------------------------
| fair value through | | | |
--------------------------------------------------------------------------------
| profit or loss | | 0 | 2 144 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | 21 109 | 9 140 |
--------------------------------------------------------------------------------
| Total | | 45 689 | 40 537 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 2 | 60 180 | 54 800 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | |
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity | | | |
--------------------------------------------------------------------------------
| holders of the Parent Company | | | |
--------------------------------------------------------------------------------
| Share capital | | 8 010 | 8 010 |
--------------------------------------------------------------------------------
| Share premium | | 6 498 | 6 498 |
--------------------------------------------------------------------------------
| Other funds | 9 | 287 | 125 |
--------------------------------------------------------------------------------
| Exchange rate differences | | 283 | 36 |
--------------------------------------------------------------------------------
| Retained earnings | | 14 520 | 11 924 |
--------------------------------------------------------------------------------
| Profit for period | | 4 723 | 6 601 |
--------------------------------------------------------------------------------
| Share of shareholders' | | | |
--------------------------------------------------------------------------------
| equity that belongs | | | |
--------------------------------------------------------------------------------
| to owners of the | | | |
--------------------------------------------------------------------------------
| Parent company | | 34 321 | 33 194 |
--------------------------------------------------------------------------------
| Total | | 34 321 | 33 194 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term liabilities | | | |
--------------------------------------------------------------------------------
| Provisions | | 289 | 286 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | | 599 | 676 |
--------------------------------------------------------------------------------
| Long-term interest-bearing | | 8 232 | 277 |
--------------------------------------------------------------------------------
| liabilities | | | |
--------------------------------------------------------------------------------
| Total | | 9 120 | 1 239 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Provisions | | 2 251 | 971 |
--------------------------------------------------------------------------------
| Pension obligations | | 173 | 260 |
--------------------------------------------------------------------------------
| Short-term interest-bearing | | | |
--------------------------------------------------------------------------------
| liabilities | | 2 225 | 213 |
--------------------------------------------------------------------------------
| Advance payments received | 4 | 3 475 | 7 590 |
--------------------------------------------------------------------------------
| Current tax liabilities | | 79 | 851 |
--------------------------------------------------------------------------------
| Trade and other payables | | 8 536 | 10 481 |
--------------------------------------------------------------------------------
| Total | | 16 739 | 20 367 |
--------------------------------------------------------------------------------
| Total liabilities | | 25 859 | 21 605 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| AND LIABILITIES | | 60 180 | 54 800 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | 1.1.-31.12. | 1.1.-31.12. |
--------------------------------------------------------------------------------
| | 2008 | 2007 |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING | | |
--------------------------------------------------------------------------------
| ACTIVITIES | | |
--------------------------------------------------------------------------------
| Proceeds from sales | 100 611 | 96 117 |
--------------------------------------------------------------------------------
| Proceeds from other | | |
--------------------------------------------------------------------------------
| operating income | 65 | 114 |
--------------------------------------------------------------------------------
| Payments of operating expenses | -90 988 | -104 963 |
--------------------------------------------------------------------------------
| Cash flow before financial | | |
--------------------------------------------------------------------------------
| items and taxes | 9 688 | -8 732 |
--------------------------------------------------------------------------------
| Interests and other operating | | |
--------------------------------------------------------------------------------
| financial expenses paid | -224 | -394 |
--------------------------------------------------------------------------------
| Interests and other income | | |
--------------------------------------------------------------------------------
| received | 828 | 639 |
--------------------------------------------------------------------------------
| Dividends received | 133 | 115 |
--------------------------------------------------------------------------------
| Income taxes paid | -3 522 | -1 843 |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM OPERATING | | |
--------------------------------------------------------------------------------
| ACTIVITIES (A) | 6 903 | -10 214 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTING | | |
--------------------------------------------------------------------------------
| ACTIVITIES | | |
--------------------------------------------------------------------------------
| Capital expenditure in | | |
--------------------------------------------------------------------------------
| tangible and intangible | | |
--------------------------------------------------------------------------------
| assets | -3 201 | -1 964 |
--------------------------------------------------------------------------------
| Purchases of available-for-sale | | |
--------------------------------------------------------------------------------
| as investments | -50 | -74 |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible | | |
--------------------------------------------------------------------------------
| and intangible assets | 171 | 1 310 |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM INVESTING | | |
--------------------------------------------------------------------------------
| ACTIVITIES (B) | -3 080 | -728 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | | |
--------------------------------------------------------------------------------
| ACTIVITIES | | |
--------------------------------------------------------------------------------
| Repayments of long-term and | | |
--------------------------------------------------------------------------------
| short-term loan receivables | 0 | 1 000 |
--------------------------------------------------------------------------------
| Increase of short-term | | |
--------------------------------------------------------------------------------
| liabilities | 0 | 63 |
--------------------------------------------------------------------------------
| Repayments of short-term | | |
--------------------------------------------------------------------------------
| liabilities | -63 | 0 |
--------------------------------------------------------------------------------
| Increase of long-term | | |
--------------------------------------------------------------------------------
| liabilities | 10 069 | 0 |
--------------------------------------------------------------------------------
| Repayment of long-term | | |
--------------------------------------------------------------------------------
| liabilities | 0 | -40 |
--------------------------------------------------------------------------------
| Dividends paid | -4 005 | -2 803 |
--------------------------------------------------------------------------------
| NET CASH FROM FINANCING | | |
--------------------------------------------------------------------------------
| ACTIVITIES (C) | 6 001 | -1 780 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET CHANGE IN CASH | | |
--------------------------------------------------------------------------------
| AND CASH EQUIVALENTS (A+B+C) | | |
--------------------------------------------------------------------------------
| increase (+)/decrease (-) | 9 824 | -12 723 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS | | |
--------------------------------------------------------------------------------
| AT THE BEGINNING OF THE PERIOD* | 11 284 | 24 006 |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS | | |
--------------------------------------------------------------------------------
| AT THE END OF THE PERIOD* | 21 109 | 11 284 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS | | |
--------------------------------------------------------------------------------
| IN THE BALANCE SHEET | | |
--------------------------------------------------------------------------------
| AT THE END OF THE PERIOD | | |
--------------------------------------------------------------------------------
| Financial assets at fair | | |
--------------------------------------------------------------------------------
| value through profit or loss | 0 | 2 144 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 21 109 | 9 140 |
--------------------------------------------------------------------------------
| TOTAL | 21 109 | 11 284 |
--------------------------------------------------------------------------------
* Cash and cash equivalents comprise trading assets as well as cash and bank
receivables, which will be due within the following three months' period.
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |
--------------------------------------------------------------------------------
| (EUR 1 000) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Share | Share | Other | Exchange | Retained |
--------------------------------------------------------------------------------
| | capital | premium | funds | rate | earnings |
--------------------------------------------------------------------------------
| | | | | diff. | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2008 | 8 010 | 6 498 | 125 | 36 | 18 524 |
--------------------------------------------------------------------------------
| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | | | 22 | | |
--------------------------------------------------------------------------------
| Exchange rate | | | | | |
--------------------------------------------------------------------------------
| differences | | | | 247 | |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | 0 | 0 | 22 | 247 | 0 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the financial | | | | | 4 723 |
| year | | | | | |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 0 | 0 | 22 | 247 | 4 723 |
--------------------------------------------------------------------------------
| Dividend | | | | | -4 005 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | | | 139 | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| December 31, 2008 | 8 010 | 6 498 | 287 | 283 | 19 242 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) |
--------------------------------------------------------------------------------
| | To owners | | Minority | | EQUITY |
--------------------------------------------------------------------------------
| | of the | | interest | | TOTAL |
--------------------------------------------------------------------------------
| | Parent | | | | |
--------------------------------------------------------------------------------
| | company | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2008 | 33 194 | | 0 | | 33 194 |
--------------------------------------------------------------------------------
| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | 22 | | | | 22 |
--------------------------------------------------------------------------------
| Exchange rate | | | | | |
--------------------------------------------------------------------------------
| differences | 247 | | | | 247 |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | 269 | | 0 | | 269 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the financial | 4 723 | | | | 4 723 |
| year | | | | | |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 4 992 | | 0 | | 4 992 |
--------------------------------------------------------------------------------
| Dividend | -4 005 | | | | -4 005 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | 139 | | | | 139 |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| December 31, 2008 | 34 321 | | 0 | | 34 321 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |
--------------------------------------------------------------------------------
| (EUR 1 000) | | | | | |
--------------------------------------------------------------------------------
| | Share | Share | Other | Exchange | Retained |
--------------------------------------------------------------------------------
| | capital | premium | funds | rate | earnings |
--------------------------------------------------------------------------------
| | | | | diff. | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2007 | 8 010 | 6 498 | -201 | 274 | 14 726 |
--------------------------------------------------------------------------------
| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | | | 264 | | |
--------------------------------------------------------------------------------
| Taxes related to items | | | | |
--------------------------------------------------------------------------------
| recognized in | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| or transferred | | | | | |
--------------------------------------------------------------------------------
| from equity | | | 12 | | |
--------------------------------------------------------------------------------
| Exchange rate | | | | | |
--------------------------------------------------------------------------------
| differences | | | | -238 | |
--------------------------------------------------------------------------------
| Other increase/ | | | | | |
--------------------------------------------------------------------------------
| decrease | | | -48 | | |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | 0 | 0 | 228 | -238 | 0 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the financial | | | | | 6 601 |
| year | | | | | |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 0 | 0 | 228 | -238 | 6 601 |
--------------------------------------------------------------------------------
| Dividend | | | | | -2 803 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | | | 98 | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| December 31, 2007 | 8 010 | 6 498 | 125 | 36 | 18 524 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (continue) |
--------------------------------------------------------------------------------
| | To owners | | Minority | | EQUITY |
--------------------------------------------------------------------------------
| | of the | | interest | | TOTAL |
--------------------------------------------------------------------------------
| | Parent | | | | |
--------------------------------------------------------------------------------
| | company | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2007 | 29 309 | | 0 | | 29 309 |
--------------------------------------------------------------------------------
| Exchange | | | | | |
--------------------------------------------------------------------------------
| differences | | | | | |
--------------------------------------------------------------------------------
| from net | | | | | |
--------------------------------------------------------------------------------
| investments | 264 | | | | 264 |
--------------------------------------------------------------------------------
| Taxes related to items | | | | |
--------------------------------------------------------------------------------
| recognized in | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| or transferred | | | | | |
--------------------------------------------------------------------------------
| from equity | 12 | | | | 12 |
--------------------------------------------------------------------------------
| Exchange rate | | | | | |
--------------------------------------------------------------------------------
| differences | -238 | | | | -238 |
--------------------------------------------------------------------------------
| Other increase/ | | | | | |
--------------------------------------------------------------------------------
| decrease | -48 | | | | -48 |
--------------------------------------------------------------------------------
| Net income | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| directly in | | | | | |
--------------------------------------------------------------------------------
| equity | -10 | | 0 | | -10 |
--------------------------------------------------------------------------------
| Profit for | | | | | |
--------------------------------------------------------------------------------
| the financial | 6 601 | | | | 6 601 |
| year | | | | | |
--------------------------------------------------------------------------------
| Total income and | | | | | |
--------------------------------------------------------------------------------
| expenses | | | | | |
--------------------------------------------------------------------------------
| recognized | | | | | |
--------------------------------------------------------------------------------
| in the period | 6 591 | | 0 | | 6 591 |
--------------------------------------------------------------------------------
| Dividend | -2 803 | | | | -2 803 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | 98 | | | | 98 |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| December 31, 2007 | 33 194 | | 0 | | 33 194 |
--------------------------------------------------------------------------------
NOTES
General information
Raute Group (‘Group') is a globally operating technology corporation, whose core
business consists of the production processes of veneer-based wood products.
Project deliveries include complete mills, production lines, and single
machines. Full-service technology services include spare part, maintenance, and
modernization services, as well as services related to developing customers'
businesses.
The Group's Parent company, Raute Corporation, is a Finnish public limited
liability company established in accordance with Finnish law (Business ID
FI01490726). Its series A shares are quoted on NASDAQ OMX Helsinki Ltd., under
Industrials. Raute Corporation is domiciled in Lahti, Finland. The address of
its registered office is Rautetie 2, FI-15550 Nastola, Finland, and its postal
address is P.O. Box 69, FI-15551 Nastola, Finland.
A copy of the consolidated financial statements is available online at
www.raute.com or at the head office of the Parent company, Rautetie 2, FI-15550
Nastola, Finland.
Raute Corporation's Board of Directors has on 11 February 2009 reviewed the
Group's Financial statements for January 1 - December 31, 2008, and decided to
publish Raute Corporation's Financial statement bulletin for January 1 -
December 31, 2008, in compliance with this release.
1. Accounting principles
Raute Corporation's financial statement bulletin has been prepared in accordance
with the recognition and measurement policies set out in International Financial
Reporting Standards but not all requirements of the IAS 34 standard have been
followed in accounting. Financial Statements 2008 with full notes will be
published week 12 in March 2009.
The figures presented in the financial statement bulletin have not been audited.
Figures in parentheses refer to the corresponding figures in the comparison
year. All the monetary figures presented in this bulletin are in thousands
euros, unless otherwise stated. Due to the roundings of the figures in the
financial statement tables, the sums of figures may deviate from the sum total
presented in the table.
The preparation of financial statements according to IFRS requires management to
use estimates and assumptions that affect the assets and liabilities on the
balance sheet date, as well as the income and expenses for the financial period.
Because the forward-looking estimates and assumptions are based on management's
best knowledge at the balance sheet date, they comprise risks and uncertainties.
The actual results may differ from these estimates.
The following standards have taken effect during the financial year, but
according to the management's view, they do not affect the performance, the
financial condition or the notes of the Group:
- IFRIC 11, IFRS 2: Group and Treasury Share Transactions
- IFRIC 14, IAS 19: The Limit and Defined Benefit Assets, Minimum Funding
Requirements and their Interaction
- IFRIC 16, Hedges of a Net Investment in a Foreign Operation
- IAS 39, Financial Instruments: recognition and measurement and IFRS 7,
Financial Instruments: Presentation of financial
statements standard amendment.
The following standards have taken effect during the financial year, but
according to the management's view, they are not relevant for Group's
operations:
- IFRIC 12, Service Concession Arrangements
- IFRIC 13, Customer Loyalty Programmes
- IFRIC 15, Agreements for the Construction of Real Estate.
In other respects, the Group has followed the accounting principles described in
the Financial statements for 2007.
2. Segment information
Primary reporting segment
Raute's primary reporting segment is the business segment. Continuing operations
belong to the wood products technology segment.
Secondary reporting segment
Raute's secondary reporting segment is geographical. The geographical segment
consists of market areas accounting for over 10 percent of the Group's net
sales.
Geographical reporting segment information:
--------------------------------------------------------------------------------
| Net sales to external | 1.1.- | | 1.1.- | |
--------------------------------------------------------------------------------
| clients by | 31.12. | | 31.12. | |
--------------------------------------------------------------------------------
| clients' geographical | 2008 | % | 2007 | % |
--------------------------------------------------------------------------------
| location | | | | |
--------------------------------------------------------------------------------
| Europe | 47 709 | 48 | 34 117 | 31 |
--------------------------------------------------------------------------------
| Russia | 34 359 | 35 | 38 314 | 35 |
--------------------------------------------------------------------------------
| North America | 9 832 | 10 | 24 047 | 22 |
--------------------------------------------------------------------------------
| South America | 4 311 | 4 | 11 485 | 10 |
--------------------------------------------------------------------------------
| Others | 2 255 | 3 | 2 836 | 3 |
--------------------------------------------------------------------------------
| TOTAL | 98 466 | 100 | 110 799 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets by geographical | | | | |
--------------------------------------------------------------------------------
| location | | | | |
--------------------------------------------------------------------------------
| Europe | 55 616 | 92 | 48 822 | 89 |
--------------------------------------------------------------------------------
| Russia | 782 | 1 | 1 048 | 2 |
--------------------------------------------------------------------------------
| North America | 2 730 | 5 | 3 275 | 6 |
--------------------------------------------------------------------------------
| South America | 36 | 0 | 34 | 0 |
--------------------------------------------------------------------------------
| Others | 1 016 | 3 | 1 621 | 3 |
--------------------------------------------------------------------------------
| TOTAL | 60 180 | 100 | 54 800 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure by | | | | |
--------------------------------------------------------------------------------
| geographical location | | | | |
--------------------------------------------------------------------------------
| Europe | 2 775 | 86 | 1 411 | 75 |
--------------------------------------------------------------------------------
| Russia | 2 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| North America | 75 | 2 | 74 | 4 |
--------------------------------------------------------------------------------
| South America | 19 | 1 | 4 | 0 |
--------------------------------------------------------------------------------
| Others | 371 | 11 | 380 | 20 |
--------------------------------------------------------------------------------
| TOTAL | 3 242 | 100 | 1 869 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Proceeds from sales | | | | |
--------------------------------------------------------------------------------
| | 1.1.- | | 1.1.- | |
--------------------------------------------------------------------------------
| Net sales | 31.12. | | 31.12. | |
--------------------------------------------------------------------------------
| by market area | 2008 | % | 2007 | % |
--------------------------------------------------------------------------------
| Russia | 34 359 | 35 | 38 314 | 35 |
--------------------------------------------------------------------------------
| Rest of Europe | 31 909 | 32 | 20 077 | 18 |
--------------------------------------------------------------------------------
| Finland | 15 800 | 16 | 14 040 | 13 |
--------------------------------------------------------------------------------
| North America | 9 832 | 10 | 24 047 | 22 |
--------------------------------------------------------------------------------
| South America | 4 311 | 4 | 11 485 | 10 |
--------------------------------------------------------------------------------
| Asia | 1 241 | 1 | 915 | 1 |
--------------------------------------------------------------------------------
| Oceania | 701 | 1 | 979 | 1 |
--------------------------------------------------------------------------------
| Others | 313 | 1 | 942 | 1 |
--------------------------------------------------------------------------------
| TOTAL | 98 466 | 100 | 110 799 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Long-term projects | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Net sales | | |
--------------------------------------------------------------------------------
| Net sales by percentage | | |
--------------------------------------------------------------------------------
| of completion | 80 749 | 94 905 |
--------------------------------------------------------------------------------
| Other net sales | 17 717 | 15 894 |
--------------------------------------------------------------------------------
| TOTAL | 98 466 | 110 799 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Project revenues entered | | |
--------------------------------------------------------------------------------
| as income from currently | | |
--------------------------------------------------------------------------------
| undelivered long-term | | |
--------------------------------------------------------------------------------
| projects recognized | | |
--------------------------------------------------------------------------------
| by percentage of completion | 85 487 | 120 722 |
--------------------------------------------------------------------------------
| Amount of long-term project | | |
--------------------------------------------------------------------------------
| revenues not yet | | |
--------------------------------------------------------------------------------
| entered as income | 22 817 | 53 474 |
--------------------------------------------------------------------------------
| Specification of combined | | |
--------------------------------------------------------------------------------
| asset and liability items: | | |
--------------------------------------------------------------------------------
| Accrued income | | |
--------------------------------------------------------------------------------
| corresponding to revenues | | |
--------------------------------------------------------------------------------
| by percentage of completion | 85 328 | 120 942 |
--------------------------------------------------------------------------------
| Advances received from | | |
--------------------------------------------------------------------------------
| project customers | -73 509 | -102 601 |
--------------------------------------------------------------------------------
| Project receivables included | | |
--------------------------------------------------------------------------------
| in current assets | 11 819 | 18 341 |
--------------------------------------------------------------------------------
| Advance payments received | | |
--------------------------------------------------------------------------------
| in the Balance Sheet | 3 475 | 7 590 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Number of personnel, persons | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| - effective, on average | 538 | 566 |
--------------------------------------------------------------------------------
| - in books, on average | 585 | 575 |
--------------------------------------------------------------------------------
| - in books, at the end of period, | 573 | 570 |
--------------------------------------------------------------------------------
| - of which personnel working | | |
--------------------------------------------------------------------------------
| abroad | 136 | 140 |
--------------------------------------------------------------------------------
6. Income taxes
The taxes in the income statement include the taxes corresponding to the Group
companies' taxable profit for the financial year as well as tax adjustments for
the previous years and the change in deferred taxes. Current tax based on the
taxable income is calculated on taxable income using the tax rate in force in
each country. The effective tax rate of the reporting period is 31.1 percent
(26.5 %).
--------------------------------------------------------------------------------
| 7. Research and development costs | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Research and development costs | | |
--------------------------------------------------------------------------------
| for the period | 4 375 | 3 969 |
--------------------------------------------------------------------------------
| Depreciation of capitalized | | |
--------------------------------------------------------------------------------
| development costs | 549 | 367 |
--------------------------------------------------------------------------------
| Recognized as assets | | |
--------------------------------------------------------------------------------
| in balance sheet | -667 | -233 |
--------------------------------------------------------------------------------
| Research and development | | |
--------------------------------------------------------------------------------
| costs entered as expenses | | |
--------------------------------------------------------------------------------
| for the period | 4 257 | 4 103 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8. Changes in Property, plant and | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| equipment | | |
--------------------------------------------------------------------------------
| Carrying amount at the | | |
--------------------------------------------------------------------------------
| beginning of the period | 40 008 | 40 411 |
--------------------------------------------------------------------------------
| Exchange rate differences | -1 484 | 4 |
--------------------------------------------------------------------------------
| Additions | 2 175 | 1 263 |
--------------------------------------------------------------------------------
| Disposals | -90 | -1 558 |
--------------------------------------------------------------------------------
| Other reclassifications between | | |
--------------------------------------------------------------------------------
| items | -157 | -112 |
--------------------------------------------------------------------------------
| Carrying amount at the end | | |
--------------------------------------------------------------------------------
| of the period | 40 453 | 40 008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | | |
--------------------------------------------------------------------------------
| amortization at the beginning | | |
--------------------------------------------------------------------------------
| of the period | -29 014 | -27 868 |
--------------------------------------------------------------------------------
| Exchange rate differences | 1 281 | 2 |
--------------------------------------------------------------------------------
| Accumulated depreciations on | | |
--------------------------------------------------------------------------------
| disposals and transfers | 0 | -50 |
--------------------------------------------------------------------------------
| Depreciation for the | | |
--------------------------------------------------------------------------------
| financial period | -1 544 | -1 574 |
--------------------------------------------------------------------------------
| Impairments | 0 | 477 |
--------------------------------------------------------------------------------
| Accumulated depreciation and | | |
--------------------------------------------------------------------------------
| amortization at the end | | |
--------------------------------------------------------------------------------
| of the period | -29 277 | -29 014 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at the beginnig | | |
--------------------------------------------------------------------------------
| of the period | 10 993 | 12 542 |
--------------------------------------------------------------------------------
| Book value at the end | | |
--------------------------------------------------------------------------------
| of the period | 11 175 | 10 993 |
--------------------------------------------------------------------------------
9. Share-based payments
The effect of the share-based remunerations to the profit of Raute Group was EUR
115.8 thousand. At the end of the financial year the current value of the cash
portion was EUR 6.40 per share. The fair value of granted share-based
remunerations was EUR 0.4 million in total.
--------------------------------------------------------------------------------
| 10. Other leases and operating | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| lease liabilities | | |
--------------------------------------------------------------------------------
| Group as lessee | | |
--------------------------------------------------------------------------------
| Minimum rents paid on the basis of | | |
--------------------------------------------------------------------------------
| other non-cancellable leases: | | |
--------------------------------------------------------------------------------
| - Within one year | 273 | 127 |
--------------------------------------------------------------------------------
| - After the period of more than 1 | | |
--------------------------------------------------------------------------------
| and less than 5 years | 464 | 370 |
--------------------------------------------------------------------------------
| TOTAL | 737 | 497 |
--------------------------------------------------------------------------------
The Group has rented in a part of its
office premises. The rental agreements
are made for the time being or for the
fixed-term. The agreements made for a
fixed-term include an option to extend
the rental period after the date of
initial expiration.
--------------------------------------------------------------------------------
| Minimum direct leasing rents | | |
--------------------------------------------------------------------------------
| paid on the basis of | | |
--------------------------------------------------------------------------------
| non-cancellable direct leasing | | |
--------------------------------------------------------------------------------
| contracts: | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - Within one year | 12 | 60 |
--------------------------------------------------------------------------------
| - 1-5 years | 2 | 60 |
--------------------------------------------------------------------------------
| TOTAL | 14 | 120 |
--------------------------------------------------------------------------------
11. Pledged assets and contingent liabilities
Pledged assets
Debts secured by mortgages
Raute Group has long-term bilateral credit facilities worth EUR 17 million (MEUR
15), of which EUR 14 million (MEUR 15) were unused on December 31, 2008.
Raute Corporation has a EUR 10 million (MEUR 10) domestic commercial paper
program, which is arranged by Nordea Bank Finland Plc. Within the limits of the
program, the company can issue commercial papers maturing in less than one year.
--------------------------------------------------------------------------------
| Contingent liabilities and | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| other liabilities | | |
--------------------------------------------------------------------------------
| For own debt | | |
--------------------------------------------------------------------------------
| - Mortgages on real property | 134 | 134 |
--------------------------------------------------------------------------------
| - Business mortgages | 10 000 | 10 000 |
--------------------------------------------------------------------------------
| Security for Group's liabilities | | |
--------------------------------------------------------------------------------
| - Bank guarantees | 8 928 | 17 584 |
--------------------------------------------------------------------------------
| Other own liabilities | | |
--------------------------------------------------------------------------------
| Leasing and rent liabilities | | |
--------------------------------------------------------------------------------
| - For the current accounting | | |
--------------------------------------------------------------------------------
| period | 285 | 187 |
--------------------------------------------------------------------------------
| - For subsequent accounting | | |
--------------------------------------------------------------------------------
| periods | 466 | 430 |
--------------------------------------------------------------------------------
No loans or pledges have been given or other commitments made on behalf of the
company's management or shareholders.
--------------------------------------------------------------------------------
| 12. Currency derivatives | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Currency derivatives are used for hedging purposes. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of forward | | |
--------------------------------------------------------------------------------
| contracts in foreign currency | | |
--------------------------------------------------------------------------------
| Economic hedging | | |
--------------------------------------------------------------------------------
| - Related to financing | 3 186 | 3 277 |
--------------------------------------------------------------------------------
| - Related to hedging of net sales | 532 | 2 481 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values of forward contracts | | |
--------------------------------------------------------------------------------
| in foreign currency | | |
--------------------------------------------------------------------------------
| Economic hedging | | |
--------------------------------------------------------------------------------
| - Related to financing | 170 | -30 |
--------------------------------------------------------------------------------
| - Related to the hedging | | |
--------------------------------------------------------------------------------
| of net sales | -8 | 360 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP KEY RATIOS | 1.1.-31.12. | 1.1.-31.12. |
--------------------------------------------------------------------------------
| | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment (ROI), % | 19,4 | 29,2 |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | 14,0 | 21,1 |
--------------------------------------------------------------------------------
| Gearing, % | -31,0 | -32,5 |
--------------------------------------------------------------------------------
| Equity ratio, % | 60,5 | 70,3 |
--------------------------------------------------------------------------------
| Order book, MEUR | 24 | 56 |
--------------------------------------------------------------------------------
| Order intake, MEUR | 67 | 90 |
--------------------------------------------------------------------------------
| Exported portion of net sales, % | 84,0 | 87,3 |
--------------------------------------------------------------------------------
| Change in net sales, % | -11,1 | 4,3 |
--------------------------------------------------------------------------------
| Gross capital expenditure, MEUR | 3,2 | 1,9 |
--------------------------------------------------------------------------------
| % of net sales | 3,3 | 1,7 |
--------------------------------------------------------------------------------
| Research and development, MEUR | 4,9 | 4,3 |
--------------------------------------------------------------------------------
| % of net sales | 5,0 | 3,9 |
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | | |
--------------------------------------------------------------------------------
| - undiluted | 1,18 | 1,65 |
--------------------------------------------------------------------------------
| - diluted | 1,18 | 1,65 |
--------------------------------------------------------------------------------
| Equity to share, EUR | 8,57 | 8,29 |
--------------------------------------------------------------------------------
| Dividend per share | | |
--------------------------------------------------------------------------------
| series K shares, EUR | 0,70* | 1,00 |
--------------------------------------------------------------------------------
| Dividend per share | | |
--------------------------------------------------------------------------------
| series A shares, EUR | 0,70* | 1,00 |
--------------------------------------------------------------------------------
| Dividend per profit, % | 59,4 | 60,7 |
--------------------------------------------------------------------------------
| Effective dividend return, % | 10,9 | 7,0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share price at the end of | | |
--------------------------------------------------------------------------------
| the period, EUR | 6,40 | 14,35 |
--------------------------------------------------------------------------------
| Number of shares | | |
--------------------------------------------------------------------------------
| - weighted average, 1 000 pcs | 4 005 | 4 005 |
--------------------------------------------------------------------------------
| - diluted, 1 000 pcs | 4 005 | 4 005 |
--------------------------------------------------------------------------------
* The Board of Directors' proposal to the Annual General Meeting.
CALCULATION OF KEY RATIOS
Return on investment (ROI), % =
Profit before tax + financial expenses
----------------------------------------------------------- x 100
Shareholders' equity + interest-bearing financial liabilities
(average of the financial year)
Return on equity (ROE), % =
Profit/loss for the period
----------------------------------------------------------- x 100
Shareholders' equity (average of the financial year)
Interest-bearing net liabilities =
Interest-bearing liabilities ./. (cash and cash equivalents + financial assets
at fair value through profit or loss)
Equity ratio, % =
Shareholders' equity
----------------------------------------------------------- x 100
Balance Sheet total ./. advances received
Earnings per share, undiluted, euros =
Profit for the financial year
-----------------------------------------------------------
Equity issue-adjusted average number of shares during the
financial year
Earnings per share, diluted, euros =
Diluted profit for the financial year
-----------------------------------------------------------
Diluted equity issue-adjusted average number of shares
Equity to share, euros =
Share of shareholders' equity belonging to the owners of
the Parent company
-----------------------------------------------------------
Undiluted number of shares at the day of the financial
statements
Dividend per share, euros =
Distributed dividend for the financial year
-----------------------------------------------------------
Undiluted number of shares at the day of the financial
statements
Dividend per profit, % =
Dividend per share
----------------------------------------------------------- x 100
Earnings per share
Effective dividend return, % =
Dividend per share
----------------------------------------------------------- x 100
Closing share price at Dec. 31
Price/earnings ratio (P/E ratio) =
Closing share price at Dec. 31
-----------------------------------------------------------
Earnings per share
Trend in share turnover, in volume and percentage figures (series A shares)
The trend in turnover of shares is given as the number of shares traded during
the financial year and as the percentage of the average undiluted number of
traded shares relative to issued share stock during the year.
Market value of capital stock =
Undiluted number of shares at year end (series A + series K shares) x closing
price of the share on the last day of the financial year
Gearing, % =
Interest-bearing net financial liabilities
---------------------------------------------------------- x 100
Shareholders' equity
--------------------------------------------------------------------------------
| THE DEVELOPMENT OF QUARTERLY RESULTS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Q 4 | Q 3 | Q 2 | Q 1 | Rolling | Rolling |
--------------------------------------------------------------------------------
| | 2008 | 2008 | 2008 | 2008 | 1.1.2008 | 1.1.2007 |
--------------------------------------------------------------------------------
| | | | | | - | - |
--------------------------------------------------------------------------------
| | | | | | 31.12.200 | 31.12.200 |
| | | | | | 8 | 7 |
--------------------------------------------------------------------------------
| NET SALES | 18 619 | 25 227 | 30 710 | 23 910 | 98 466 | 110 799 |
--------------------------------------------------------------------------------
| Other operating | | | | | | |
--------------------------------------------------------------------------------
| income | 14 | 29 | 26 | 27 | 95 | 461 |
--------------------------------------------------------------------------------
| Increase (+) or | | | | | | |
--------------------------------------------------------------------------------
| decrease (-) in | | | | | | |
--------------------------------------------------------------------------------
| inventories of | | | | | | |
--------------------------------------------------------------------------------
| finished goods | | | | | | |
--------------------------------------------------------------------------------
| and work | | | | | | |
--------------------------------------------------------------------------------
| in progress | -108 | -65 | 381 | 196 | 404 | 42 |
--------------------------------------------------------------------------------
| Materials and | | | | | | |
--------------------------------------------------------------------------------
| services | 8 218 | 13 735 | 17 293 | 11 661 | 50 906 | 60 999 |
--------------------------------------------------------------------------------
| Expenses | | | | | | |
--------------------------------------------------------------------------------
| from employee | | | | | | |
--------------------------------------------------------------------------------
| benefits | 7 062 | 6 541 | 7 858 | 7 131 | 28 592 | 28 875 |
--------------------------------------------------------------------------------
| Depreciation, | | | | | | |
--------------------------------------------------------------------------------
| amortization | | | | | | |
--------------------------------------------------------------------------------
| and impairment | | | | | | |
--------------------------------------------------------------------------------
| charges | 692 | 699 | 720 | 641 | 2 751 | 2 654 |
--------------------------------------------------------------------------------
| Other operating | | | | | | |
--------------------------------------------------------------------------------
| expenses | 2 347 | 1 988 | 2 543 | 3 497 | 10 375 | 10 166 |
--------------------------------------------------------------------------------
| Total operating | | | | | | |
--------------------------------------------------------------------------------
| expenses | 18 318 | 22 962 | 28 413 | 22 931 | 92 624 | 102 695 |
--------------------------------------------------------------------------------
| OPERATING | 206 | 2 228 | 2 704 | 1 202 | 6 341 | 8 607 |
| PROFIT | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 1 | 9 | 9 | 5 | 6 | 8 |
--------------------------------------------------------------------------------
| Financial | 550 | 75 | 190 | 453 | 1 268 | 660 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Financial | -448 | 26 | 22 | -330 | -729 | -291 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| PROFIT BEFORE | 309 | 2 329 | 2 916 | 1 325 | 6 880 | 8 976 |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2 | 9 | 9 | 6 | 7 | 8 |
--------------------------------------------------------------------------------
| Income taxes | -131 | -733 | -920 | -373 | -2 157 | -2 375 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | | | | | | |
--------------------------------------------------------------------------------
| PERIOD | 177 | 1 597 | 1 996 | 952 | 4 723 | 6 601 |
--------------------------------------------------------------------------------
| % of net sales | 1 | 6 | 6 | 4 | 5 | 6 |
--------------------------------------------------------------------------------
| Attributable to | | | | | | |
--------------------------------------------------------------------------------
| Equity holders | | | | | | |
| of | | | | | | |
--------------------------------------------------------------------------------
| the Parent | 177 | 1 597 | 1 996 | 952 | 4 723 | 6 601 |
| company | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | | | | | | |
--------------------------------------------------------------------------------
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Undiluted | | | | | | |
--------------------------------------------------------------------------------
| earnings | | | | | | |
--------------------------------------------------------------------------------
| per share | 0,04 | 0,40 | 0,50 | 0,24 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted | | | | | | |
| earnings | | | | | | |
--------------------------------------------------------------------------------
| per share | 0,04 | 0,40 | 0,50 | 0,24 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares, | | | | | | |
--------------------------------------------------------------------------------
| 1 000 pcs | | | | | | |
--------------------------------------------------------------------------------
| Adjusted | | | | | | |
--------------------------------------------------------------------------------
| average number | | | | | | |
--------------------------------------------------------------------------------
| of shares | 4 005 | 4 005 | 4 005 | 4 005 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjusted | | | | | | |
--------------------------------------------------------------------------------
| average number | | | | | | |
--------------------------------------------------------------------------------
| of shares, | | | | | | |
--------------------------------------------------------------------------------
| diluted | 4 005 | 4 005 | 4 005 | 4 005 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 20 LARGEST SHAREHOLDERS AT | Number of | Number of | |
--------------------------------------------------------------------------------
| 31 DECEMBER, 2008 | series K | series A | |
--------------------------------------------------------------------------------
| | shares | shares | Total |
--------------------------------------------------------------------------------
| | (20 votes | (1 vote | number |
--------------------------------------------------------------------------------
| | per share) | per share) | of shares |
--------------------------------------------------------------------------------
| 1. Sundholm Göran | | 525 000 | 525 000 |
--------------------------------------------------------------------------------
| 2. Hietala Pekka Tapani | | 181 900 | 181 900 |
--------------------------------------------------------------------------------
| 3. Suominen Jussi Matias | 48 000 | 74 759 | 122 759 |
--------------------------------------------------------------------------------
| 4. Mustakallio Kari Pauli | 60 480 | 60 009 | 120 489 |
--------------------------------------------------------------------------------
| 5. Kirmo Kaisa Marketta | 50 280 | 64 052 | 114 332 |
--------------------------------------------------------------------------------
| 6. Suominen Pekka Matias | 48 000 | 64 159 | 112 159 |
--------------------------------------------------------------------------------
| 7. Suominen Tiina Sini-Maria | 48 000 | 62 316 | 110 316 |
--------------------------------------------------------------------------------
| 8. Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 |
--------------------------------------------------------------------------------
| 9. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 |
--------------------------------------------------------------------------------
| 10. Särkijärvi Riitta | 60 480 | 22 009 | 82 489 |
--------------------------------------------------------------------------------
| 11. Mustakallio Mika | 39 750 | 42 670 | 82 420 |
--------------------------------------------------------------------------------
| 12. Mustakallio Risto | 42 240 | 35 862 | 78 102 |
--------------------------------------------------------------------------------
| 13. Mustakallio Ulla Sinikka | 47 240 | 30 862 | 78 102 |
--------------------------------------------------------------------------------
| 14. Sr Arvo Finland Value | | 63 042 | 63 042 |
--------------------------------------------------------------------------------
| 15. Mustakallio Marja Helena | 42 240 | 20 662 | 62 902 |
--------------------------------------------------------------------------------
| 16. Kirmo Lasse Antti | 30 000 | 26 200 | 56 200 |
--------------------------------------------------------------------------------
| 17. Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 |
--------------------------------------------------------------------------------
| 18. Särkijärvi-Martinez Anu Riitta | 12 000 | 43 256 | 55 256 |
--------------------------------------------------------------------------------
| 19. Mustakallio Kai Henrik | 47 420 | 6 994 | 54 414 |
--------------------------------------------------------------------------------
| 20. Suominen Jukka Matias | 24 960 | 27 964 | 52 924 |
--------------------------------------------------------------------------------
| TOTAL | 697 330 | 1 499 627 | 2 196 957 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of total amount of shares, % | 70,4 | 49,8 | 54,9 |
--------------------------------------------------------------------------------
| Share of total voting rights, % | 70,4 | 49,8 | 67,6 |
--------------------------------------------------------------------------------
| Administrative registered | | 97 969 | 97 969 |
--------------------------------------------------------------------------------
| Other shareholders | 293 831 | 1 416 001 | 1 709 832 |
--------------------------------------------------------------------------------
| TOTAL | 991 161 | 3 013 597 | 4 004 758 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MANAGEMENT'S SHAREHOLDING | 98 990 | 90 838 | 189 828 |
--------------------------------------------------------------------------------
| Share of total amount of shares, % | 10,0 | 3,0 | 4,7 |
--------------------------------------------------------------------------------
| Share of total voting rights, % | 10,0 | 3,0 | 9,1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHARE INFORMATION | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares | | |
--------------------------------------------------------------------------------
| - Series K shares, ordinary shares | | |
--------------------------------------------------------------------------------
| (20 votes/share) | 991 161 | 991 161 |
--------------------------------------------------------------------------------
| - Series A shares | | |
--------------------------------------------------------------------------------
| (1 vote/share) | 3 013 597 | 3 013 597 |
--------------------------------------------------------------------------------
| Total | 4 004 758 | 4 004 758 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Trading of series A shares | | |
--------------------------------------------------------------------------------
| Trading of shares, pcs | 392 693 | 981 095 |
--------------------------------------------------------------------------------
| Trading of shares, MEUR | 4,9 | 13,7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share price of series A shares | | |
--------------------------------------------------------------------------------
| At the end of reporting period, EUR | 6,40 | 14,35 |
--------------------------------------------------------------------------------
| Highest price during | | |
--------------------------------------------------------------------------------
| the reporting period, EUR | 15,20 | 15,45 |
--------------------------------------------------------------------------------
| Lowest price during | | |
--------------------------------------------------------------------------------
| the reporting period, EUR | 6,24 | 12,40 |
--------------------------------------------------------------------------------
| Average price during | | |
--------------------------------------------------------------------------------
| the reporting period, EUR | 12,37 | 13,85 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market value of capital stock | | |
--------------------------------------------------------------------------------
| Series K shares valued at the | | |
--------------------------------------------------------------------------------
| value of series A shares | | |
--------------------------------------------------------------------------------
| at the end of reporting period. | | |
--------------------------------------------------------------------------------
| - Series K shares, MEUR | 6,3 | 14,2 |
--------------------------------------------------------------------------------
| - Series A shares, MEUR | 19,3 | 43,2 |
--------------------------------------------------------------------------------
| Total, MEUR | 25,6 | 57,5 |
--------------------------------------------------------------------------------
RAUTE CORPORATION
Board of Directors
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, tel. +358 3 829 3560,
mobile +358 400 814 148
Ms. Arja Hakala, CFO, Raute Corporation, tel. +358 3 829 3293,
mobile +358 400 710 387
RAUTE IN BRIEF:
Raute is a technology company serving the wood products industry worldwide. Its
most important customers are the plywood and LVL industries. The company is one
of the world's leading suppliers of mill-scale projects to these customer
industries. The total service concept also includes technology services, with
which Raute supports its customers throughout the entire life cycle of their
investments. Raute's head office and main production plant are in Nastola,
Finland. Its other production plants are in the Vancouver area of Canada, in the
Shanghai area of China, and in Jyväskylä and Kajaani, Finland. Net sales in 2008
were EUR 98.5 million and the number of personnel 573. More information on the
company can be found at www.raute.com.
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com
