RAUTE CORPORATION INTERIM REPORT 29 APRIL 2009 AT 9:00 A.M.
RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2009
- The Group's net sales fell considerably to EUR 11.4 million (MEUR 23.9).
- Operating profit, MEUR -2.2 (MEUR 1.2), and result before tax, MEUR -2.1
(MEUR 1.3), were negative.
- Earnings per share were EUR -0.47 (EUR 0.24).
- The order intake was very low, MEUR 4 (MEUR 33), and the order book at the end
of the reporting period was MEUR 17 (MEUR 65).
- Net sales will decline significantly in 2009, and operating profit will be
negative, despite adaptation measures taken.
MR. TAPANI KIISKI, PRESIDENT AND CEO:
DIFFICULT MARKET LED TO CONSIDERABLY WEAKENED PROFITABILITY
The capacity utilization rates of our customers' mills decreased considerably
during the final part of 2008 due to the difficult market situation. This was
reflected both in our customers' investment decisions and in the demand for
technology services dependent on the utilization rates. As the market leader,
Raute was not able to compensate such a considerable reduction in demand by
increasing its market share. The order intake remained very low.
The good order book in early 2008 and the new orders received since then have
now been delivered for the most part. The low order book has reached a level
that requires adaptation measures also in future. The measures have mainly
already been agreed upon. We have made the best possible use of the flexibility
provided by our operational structure developed in recent years and adapted our
operations to correspond to the low workload. Nevertheless, the fall in net
sales was so steep that we made a loss.
As part of our adaptation measures to the current market situation, our product
development work has since last fall been focusing on products that provide our
customers with an opportunity to increase their competitiveness and
profitability also in the short term, instead of increasing their capacity, for
example. I believe that these products and applications will bring us new sales
this year and strengthen our customer relationships in the future.
The cornerstones of our chosen strategy are the ability to serve customers
worldwide, an extensive range of technologies and the full service concept as
well as long-term development of our operations. We will stick to these even
during these difficult times. We want to retain our ability to react to the
opportunities offered by the markets as soon as the economy starts to recover.
For this reason, the share of resources causing fixed costs in our operations is
high. Some of our customers have a similar strategy, and I believe that our
customers will make investment decisions during the course of this year to
ensure their competitiveness when the market recovers. The preparation of these
projects with the customers will provide both parties with a quick start from
pole position in the race for victory during the next market uptrend. However,
the cost of winning this pole position will be a negative operating profit this
year.
RAUTE CORPORATION - INTERIM REPORT JANUARY 1 - MARCH 31, 2009
MARKET SITUATION
Market situation in customer industries
The weak situation in the construction and transport industries continues to
keep the demand for plywood and LVL (Laminated Veneer Lumber) at a low level in
all market areas. Almost all plywood and LVL mills have had to adapt their
production levels to correspond with the lowered demand.
Demand for wood products technology and technology services
The difficult market situation has postponed investment decisions in the plywood
and LVL industries even further and kept the demand for wood products technology
and modernizations at a low level. The closing of mills and low capacity
utilization rates also kept the demand for maintenance and spare parts services
at a low level. Some mill-scale investment projects are still in the planning
phase in various markets. The start-up of these projects is being postponed not
only due to the difficult market situation but also due to uncertainty in the
financial markets.
ORDER INTAKE AND COMPETITIVE POSITION
Net sales are generated exclusively by project deliveries and technology
services related to the wood products technology business. Project deliveries
encompass complete mills, production lines, and individual machines and
equipment units. Technology services include maintenance, spare part services,
modernizations, consulting, training, and sales of reconditioned machinery.
The first-quarter order intake, EUR 4 million (MEUR 33), was exceptionally low.
The order intake for technology services amounted to EUR 2 million (MEUR 6) for
the reporting period.
The low volume of order intake was attributable to the difficult market
situation of Raute's customer industries, the low utilization rates of mills and
the further postponement of investment decisions relating to large, mill-scale
projects.
There have been no essential changes in Raute's competitive position, and thus
Raute will be competitive when demand recovers. 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.
Due to its strong financial position, Raute's ability to survive the recession
is good. Thanks to its strong market position and the development efforts made,
Raute's ability to respond to growing demand as soon as the markets recover will
be excellent.
NET SALES AND ORDER BOOK
Net sales for the reporting period totaled EUR 11.4 million (MEUR 23.9), down
52 percent on the comparison period. The decline in net sales was due to the
difficult market situation.
Technology services accounted for 30 percent (22%) of net sales for the
reporting period. Europe's share of net sales was 58 percent (50%), Russia's
19 percent (31%), North America's 6 percent (13%) and the share of other market
areas 17 percent (6%).
The order book weakened during the reporting period by EUR 7 million due to
lower order intake, and stood at EUR 17 million (MEUR 65) at the end of the
period.
RESULT AND PROFITABILITY
Operating profit was EUR 2.2 million negative (MEUR 1.2 positive) and accounted
for -19 percent (5.0%) of net sales. The weak profitability for the reporting
period was caused by the very low level of net sales.
The Group has implemented some structural changes in recent years to increase
its ability to adapt to the normal fluctuations in demand typical of the project
business. In order to adapt to the exceptionally weak market situation, measures
have also been taken to adapt operations and personnel. Due to its strategic
choices to operate worldwide and to supply comprehensive mill-scale projects, a
significant share of the Group's costs consist of fixed costs. This weakens
Raute's ability to adapt costs in a situation of such rapidly and quickly
lowering demand and thus decreases the operating profit in the present
exceptional market situation.
Result before tax for the reporting period was EUR 2.1 million negative
(MEUR 1.3 positive) and the result EUR 1.9 million negative (MEUR 1.0 positive).
Earnings per share (undiluted) were EUR -0.47 (EUR 0.24).
FINANCING
The Group's financial position is good. At the end of the reporting period,
gearing was -35.5 percent (-76.0%) and the equity ratio 60.2 percent (65.7%).
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 the project business.
Raute's liquid assets stood at EUR 21.8 million (MEUR 27.0) at the end of the
reporting period. Operating cash flow was EUR 1.0 million positive (MEUR 16.5).
Cash flow from investment activities totaled EUR -0.2 million (MEUR -0.9). Cash
flow from financing activities was EUR -0.1 million (MEUR -0.0).
Interest-bearing liabilities amounted to EUR 10.3 million (MEUR 0.5) at the end
of the reporting period, with a TyEL loan accounting for EUR 10.0 million (MEUR
0.0) Unused long-term credit limits amounted to EUR 14 million (MEUR 15). The
company also has a EUR 10 million (MEUR 10) commercial paper program.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE
Research and development costs totaled EUR 0.8 million (MEUR 1.0) in the
reporting period, representing 6.6 percent (4.0%) of net sales.
Investments totaled EUR 0.2 million (MEUR 0.9) and included EUR 0.1 million
(MEUR 0.2) capitalized development costs.
PERSONNEL
The Group's headcount at the end of the reporting period was 547 (578). Group
companies outside Finland accounted for 23 percent (24%) of employees. Converted
to full-time employees, the average number of personnel was 465 (568).
During the reporting period, the Group concluded negotiations in accordance with
the Act on Co-operation within Undertakings on adjustment measures concerning
the salaried and senior salaried employees of the Finnish units, and the hourly
workers of the Jyväskylä unit. The negotiation results were disclosed as a stock
exchange release issued on March 16, 2009. Other personnel of Raute Corporation
in Finland is covered by the negotiation result reached on 18 November 2008.
SHARES
The number of Raute Corporation's shares at the end of the reporting period
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 euro.
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, 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. 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 period was
EUR 28.3 million (MEUR 60.0), with series K shares valued at the closing price
of series A shares on March 31, 2009, that is EUR 7.06 (EUR 14.97).
REPURCHASE AND DISPOSAL OF OWN SHARES
Raute Corporation's Board of Directors has exercised the authorization given by
the Annual General Meeting on April 2, 2008 to repurchase and dispose of Raute
Corporation's series A shares.
The company repurchased a total of 18,900 of the company's series A shares
during the period February 19-March 17, 2009 to be used in the remuneration
systems of the company's key employees.
On March 27, 2009, the company transferred the acquired shares to the 17 key
employees covered by the Group's share-based incentive plan as the share portion
of the remuneration paid for the period 2006-2008.
The company did not possess company shares at the end of the reporting period or
hold them as security.
Other share-related information is presented in the figures section of this
report.
SHAREHOLDERS
The number of shareholders totaled 1,528 at the beginning of the year and 1,667
at the end of the reporting period. Series K shares are held by 46 private
individuals (46). Management held 5.0 percent (4.7%) of the company shares and
9.1 percent (9.1%) of the votes. Nominee-registered shares accounted for
1.6 percent (2.0%) of shares.
No flagging notifications were given to the company in the reporting period.
CORPORATE GOVERNANCE
As of January 1, 2009, Raute Corporation complies with the Finnish Corporate
Governance Code for listed companies issued by the Securities Market Association
on October 20, 2008. An outline of Raute Corporation's corporate governance
principles is presented on the company's website at www.raute.com.
EVENTS AFTER THE REPORTING PERIOD
Annual General Meeting 2009
Raute Corporation's Annual General Meeting was held on April 2, 2009. It adopted
the financial statements for 2008, granted discharge from liability to those
accountable and decided to distribute a dividend of 0.70 euro per share.
The Annual General Meeting elected the company's Board of Directors for a term
that expires at the end of the Annual General Meeting of 2010. Mr. Erkki
Pehu-Lehtonen was elected Chairman of the Board, Ms. Sinikka Mustakallio
Vice-Chairman and Mr. Risto Hautamäki, Mr. Ilpo Helander, Mr. Mika Mustakallio
and Mr. Panu Mustakallio as Board members.
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 Annual General Meeting decided that the remuneration paid to the Chairman of
the Board will be EUR 40,000 and to the Vice-Chairman of the Board and Board
members EUR 20,000 for the term of office and that the Board Members' traveling
expenses will be compensated in accordance with the company's travel policy. The
compensation to the auditors will be paid on the basis of reasonable invoicing.
The Annual General Meeting decided to amend the Articles of Association, mainly
due to the new Limited Liability Companies Act, which came into force on
September 1, 2006. The Annual General Meeting authorized the Board of Directors
to decide on the repurchase of Raute Corporation's series A shares with the
company's distributable assets and to decide on a directed issue of a maximum of
400,000 of the company's series A shares.
More detailed information on the decisions of the Annual General Meeting can be
found in the stock exchange release issued on April 2, 2009.
Dividend for the financial year 2008
The Annual General Meeting held on April 2, 2009 decided to distribute a
dividend of EUR 0.70 per share for 2008. The total amount of dividends is
EUR 2.8 million, series A shares accounting for EUR 2,109,517.90
(EUR 3,013,597.00) and series K shares for EUR 693,812.70 (EUR 991,161.00). The
dividend payment date was April 16, 2009.
BUSINESS RISKS
The continuing financial crisis and the uncertainty in the development of the
global economy sustain near-future risks, and the predictability is essentially
weaker than in the normal situation. Raute's most significant near-future risks
are related to the further weakening order book, and the development of net
sales and profitability. During the reporting period, there have been no
essential changes in the other business risks described in the Board of
Directors' report and financial statements for 2008.
OUTLOOK FOR 2009
Due to the global economic uncertainty and the financial crisis, the market
situation in Raute's customer industries is expected to remain difficult
throughout 2009. Investments and demand for services in the wood products
industry are expected to remain low in all market areas, with the exception of
individual mill-scale projects, several of which are in the planning phase in
various market areas, as customers are already making preparations for the
period following the present recession.
Thanks to its strong financial position, market position and development efforts
made in operations and products Raute's ability to overcome the economic
recession and to respond to the growing demand is excellent when the markets
recover.
Due to the low order book, weak demand and the postponements of investment
decisions relating to mill-scale projects, Raute's net sales will decline
significantly in 2009. Operating profit will be negative, despite the adaptation
measures taken.
TABLES OF CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
The figures presented in the Interim financial report have not been audited
except the figures for the comparison period and financial statements for 2008.
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
--------------------------------------------------------------------------------
| (EUR 1 000) | Note | 1.1.- | 1.1.- | 1.1.- |
--------------------------------------------------------------------------------
| | | 31.3. | 31.3. | 31.12. |
--------------------------------------------------------------------------------
| | | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Continuing operations | | | | |
--------------------------------------------------------------------------------
| NET SALES | 2,3,4 | 11 366 | 23 910 | 98 466 |
--------------------------------------------------------------------------------
| Other operating | | | | |
--------------------------------------------------------------------------------
| income | | 32 | 27 | 95 |
--------------------------------------------------------------------------------
| Increase (+) or | | | | |
--------------------------------------------------------------------------------
| decrease (-) in | | | | |
--------------------------------------------------------------------------------
| inventories of | | | | |
--------------------------------------------------------------------------------
| finished goods and | | | | |
--------------------------------------------------------------------------------
| work in progress | | 252 | 196 | 404 |
--------------------------------------------------------------------------------
| Materials and | | | | |
--------------------------------------------------------------------------------
| services | | 5 171 | 11 661 | 50 906 |
--------------------------------------------------------------------------------
| Expenses from | | | | |
--------------------------------------------------------------------------------
| employee benefits | 9 | 6 132 | 7 131 | 28 592 |
--------------------------------------------------------------------------------
| Depreciation, | | | | |
--------------------------------------------------------------------------------
| amortization and | | | | |
--------------------------------------------------------------------------------
| impairment charges | | 674 | 641 | 2 751 |
--------------------------------------------------------------------------------
| Other operating | | | | |
--------------------------------------------------------------------------------
| expenses | | 1 851 | 3 497 | 10 375 |
--------------------------------------------------------------------------------
| Total operating | | | | |
--------------------------------------------------------------------------------
| expenses | 7 | 13 828 | 22 931 | 92 624 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | | -2 179 | 1 202 | 6 341 |
--------------------------------------------------------------------------------
| % of net sales | | -19 | 5 | 6 |
--------------------------------------------------------------------------------
| Financial income | | 250 | 453 | 1 268 |
--------------------------------------------------------------------------------
| Financial expenses | | -204 | -330 | -729 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAX | | -2 132 | 1 325 | 6 880 |
--------------------------------------------------------------------------------
| % of net sales | | -19 | 6 | 7 |
--------------------------------------------------------------------------------
| Income taxes | 6 | 236 | -373 | -2 157 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | | -1 895 | 952 | 4 723 |
--------------------------------------------------------------------------------
| % of net sales | | -17 | 4 | 5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income items: | | | |
--------------------------------------------------------------------------------
| Exchange differences on | | | | |
--------------------------------------------------------------------------------
| translating foreign | | | | |
--------------------------------------------------------------------------------
| operations | | 10 | 631 | 247 |
--------------------------------------------------------------------------------
| Income tax related to | | | | |
--------------------------------------------------------------------------------
| exchange differences | | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Other comprehensive | | | | |
--------------------------------------------------------------------------------
| income items for | | | | |
--------------------------------------------------------------------------------
| the period, net of tax | | 10 | 631 | 247 |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE PROFIT | | | | |
--------------------------------------------------------------------------------
| FOR THE PERIOD | | -1 885 | 1 583 | 4 970 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | | | | |
--------------------------------------------------------------------------------
| attributable to | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | | | | |
--------------------------------------------------------------------------------
| Parent company | | -1 895 | 952 | 4 723 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive profit | | | | |
--------------------------------------------------------------------------------
| for the period attributable to | | | |
--------------------------------------------------------------------------------
| Equity holders of the | | | | |
--------------------------------------------------------------------------------
| Parent company | | -1 885 | 1 583 | 4 970 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share for profit | | | |
--------------------------------------------------------------------------------
| attributable to the equity | | | | |
--------------------------------------------------------------------------------
| holders of the Parent | | | | |
--------------------------------------------------------------------------------
| company, EUR | | | | |
--------------------------------------------------------------------------------
| Undiluted earnings per | | | | |
--------------------------------------------------------------------------------
| share, continuing operations | -0.47 | 0.24 | 1.18 |
--------------------------------------------------------------------------------
| Diluted earnings per share, | | -0.47 | 0.24 | 1.18 |
--------------------------------------------------------------------------------
| continuing operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares, 1 000 pcs | | | | |
--------------------------------------------------------------------------------
| Adjusted average | | | | |
--------------------------------------------------------------------------------
| number of shares | | 3 998 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
| Adjusted average | | | | |
--------------------------------------------------------------------------------
| number of shares | | | | |
--------------------------------------------------------------------------------
| diluted | | 3 998 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | Note | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Intangible assets | | 2 385 | 3 046 | 2 482 |
--------------------------------------------------------------------------------
| Tangible assets | | 11 097 | 10 979 | 11 175 |
--------------------------------------------------------------------------------
| Other financial assets | | 499 | 449 | 499 |
--------------------------------------------------------------------------------
| Deferred tax assets | | 120 | 570 | 334 |
--------------------------------------------------------------------------------
| Total | | 14 101 | 15 044 | 14 491 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | | 4 211 | 5 207 | 4 310 |
--------------------------------------------------------------------------------
| Accounts receivables and | | | | |
--------------------------------------------------------------------------------
| other receivables | 4 | 16 810 | 28 430 | 20 270 |
--------------------------------------------------------------------------------
| Financial assets at | | | | |
--------------------------------------------------------------------------------
| fair value through | | | | |
--------------------------------------------------------------------------------
| profit or loss | | 0 | 2 099 | 0 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | 21 817 | 24 853 | 21 109 |
--------------------------------------------------------------------------------
| Total | | 42 838 | 60 590 | 45 689 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 2 | 56 939 | 75 634 | 60 180 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | | |
--------------------------------------------------------------------------------
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Equity attributable to | | | | |
| equity | | | | |
--------------------------------------------------------------------------------
| holders of the Parent | | | | |
| Company | | | | |
--------------------------------------------------------------------------------
| Share capital | | 8 010 | 8 010 | 8 010 |
--------------------------------------------------------------------------------
| Share premium | | 6 498 | 6 498 | 6 498 |
--------------------------------------------------------------------------------
| Other funds | 9 | 294 | -340 | 287 |
--------------------------------------------------------------------------------
| Exchange differences | | 158 | 1 154 | 283 |
--------------------------------------------------------------------------------
| Retained earnings | | 19 275 | 18 524 | 14 520 |
--------------------------------------------------------------------------------
| Net profit for period | | -1 895 | 952 | 4 723 |
--------------------------------------------------------------------------------
| Share of shareholders' | | | | |
--------------------------------------------------------------------------------
| equity that belongs | | | | |
--------------------------------------------------------------------------------
| to the owners of | | | | |
--------------------------------------------------------------------------------
| the Parent company | | 32 340 | 34 798 | 34 321 |
--------------------------------------------------------------------------------
| Total shareholders' equity | | 32 340 | 34 798 | 34 321 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long-term liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions | | 142 | 392 | 289 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | | 652 | 662 | 599 |
--------------------------------------------------------------------------------
| Long-term interest-bearing | | 8 231 | 277 | 8 232 |
--------------------------------------------------------------------------------
| liabilities | | 9 025 | 1 331 | 9 120 |
--------------------------------------------------------------------------------
| Total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions | | 2 100 | 1 825 | 2 251 |
--------------------------------------------------------------------------------
| Pension obligations | | 166 | 240 | 173 |
--------------------------------------------------------------------------------
| Short-term interest-bearing | | | | |
--------------------------------------------------------------------------------
| liabilities | | 2 100 | 214 | 2 225 |
--------------------------------------------------------------------------------
| Advance payments received | 4 | 3 234 | 22 631 | 3 475 |
--------------------------------------------------------------------------------
| Current tax liabilities | | 0 | 1 179 | 79 |
--------------------------------------------------------------------------------
| Trade and other payables | | 7 975 | 13 416 | 8 536 |
--------------------------------------------------------------------------------
| Total | | 15 574 | 39 504 | 16 739 |
--------------------------------------------------------------------------------
| Total liabilities | | 24 600 | 40 835 | 25 859 |
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| TOTAL SHAREHOLDERS' EQUITY | | | | |
--------------------------------------------------------------------------------
| AND LIABILITIES | | 56 939 | 75 633 | 60 180 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | 1.1.-31.3. | 1.1.-31.3. | 1.1.-31.12 |
--------------------------------------------------------------------------------
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING | | | |
--------------------------------------------------------------------------------
| ACTIVITIES | | | |
--------------------------------------------------------------------------------
| Proceeds from sales | 15 203 | 37 619 | 100 611 |
--------------------------------------------------------------------------------
| Proceeds from other | | | |
--------------------------------------------------------------------------------
| operating income | 29 | 24 | 65 |
--------------------------------------------------------------------------------
| Payments of operating expenses | -13 758 | -20 890 | -90 988 |
--------------------------------------------------------------------------------
| Cash flow before financial | | | |
--------------------------------------------------------------------------------
| items and taxes | 1 474 | 16 753 | 9 688 |
--------------------------------------------------------------------------------
| Interests and other operating | | | |
--------------------------------------------------------------------------------
| financial expenses paid | -102 | -340 | -224 |
--------------------------------------------------------------------------------
| Interests and other income | | | |
--------------------------------------------------------------------------------
| received | 171 | 464 | 828 |
--------------------------------------------------------------------------------
| Dividends received | 75 | 18 | 133 |
--------------------------------------------------------------------------------
| Income taxes paid | -614 | -372 | -3 522 |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM OPERATING | | | |
--------------------------------------------------------------------------------
| ACTIVITIES (A) | 1 005 | 16 522 | 6 903 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTING | | | |
--------------------------------------------------------------------------------
| ACTIVITIES | | | |
--------------------------------------------------------------------------------
| Capital expenditure in | | | |
--------------------------------------------------------------------------------
| tangible and intangible | | | |
--------------------------------------------------------------------------------
| assets | -175 | -852 | -3 201 |
--------------------------------------------------------------------------------
| Purchases of available-for-sale | | | |
--------------------------------------------------------------------------------
| as investments | 0 | 0 | -50 |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible | | | |
--------------------------------------------------------------------------------
| and intangible assets | 4 | 0 | 171 |
--------------------------------------------------------------------------------
| NET CASH FLOW FROM INVESTING | | | |
--------------------------------------------------------------------------------
| ACTIVITIES (B) | -171 | -852 | -3 080 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | | | |
--------------------------------------------------------------------------------
| ACTIVITIES | | | |
--------------------------------------------------------------------------------
| Repayments of long-term and | | | |
--------------------------------------------------------------------------------
| short-term loan receivables | 0 | -2 | 0 |
--------------------------------------------------------------------------------
| Increase of short-term | | | |
--------------------------------------------------------------------------------
| liabilities | 0 | 1 | 0 |
--------------------------------------------------------------------------------
| Repayments of short-term | | | |
--------------------------------------------------------------------------------
| liabilities | -125 | 0 | -63 |
--------------------------------------------------------------------------------
| Increase of long-term | | | |
--------------------------------------------------------------------------------
| liabilities | 0 | 0 | 10 069 |
--------------------------------------------------------------------------------
| Dividends paid | 0 | 0 | -4 005 |
--------------------------------------------------------------------------------
| NET CASH FROM FINANCING | | | |
--------------------------------------------------------------------------------
| ACTIVITIES (C) | -125 | -1 | 6 001 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET CHANGE IN CASH | | | |
--------------------------------------------------------------------------------
| AND CASH EQUIVALENTS (A+B+C) | | | |
--------------------------------------------------------------------------------
| increase (+)/decrease (-) | 709 | 15 669 | 9 824 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS | | | |
--------------------------------------------------------------------------------
| AT THE BEGINNING OF THE PERIOD* | 21 109 | 11 284 | 11 284 |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS | | | |
--------------------------------------------------------------------------------
| AT THE END OF THE PERIOD* | 21 817 | 26 953 | 21 109 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS | | | |
--------------------------------------------------------------------------------
| IN THE BALANCE SHEET | | | |
--------------------------------------------------------------------------------
| AT THE END OF THE PERIOD | | | |
--------------------------------------------------------------------------------
| Financial assets at fair | | | |
--------------------------------------------------------------------------------
| value through profit or loss | 0 | 2 099 | 0 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 21 817 | 24 853 | 21 109 |
--------------------------------------------------------------------------------
| TOTAL | 21 817 | 26 953 | 21 109 |
--------------------------------------------------------------------------------
*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, 2009 | 8 010 | 6 498 | 287 | 283 | 19 242 |
--------------------------------------------------------------------------------
| Purchase of own | | | | | |
--------------------------------------------------------------------------------
| shares | | | | | -138 |
--------------------------------------------------------------------------------
| Repurchase of own | | | | | |
--------------------------------------------------------------------------------
| shares, tax | | | | | 36 |
| effect | | | | | |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | | | 7 | | |
--------------------------------------------------------------------------------
| Total | | | | | |
| comprehensive | | | | | |
--------------------------------------------------------------------------------
| profit for the | | | | 10 | -1 895 |
| period | | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| March 31, 2009 | 8 010 | 6 498 | 294 | 293 | 17 244 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |
| (continue) | |
--------------------------------------------------------------------------------
| | To the | | Minority | | EQUITY |
| | owners | | | | |
--------------------------------------------------------------------------------
| | of the | | interest | | TOTAL |
--------------------------------------------------------------------------------
| | Parent | | | | |
--------------------------------------------------------------------------------
| | company | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2009 | 34 321 | | 0 | | 34 321 |
--------------------------------------------------------------------------------
| Purchase of own | | | | | |
--------------------------------------------------------------------------------
| shares | -138 | | | | -138 |
--------------------------------------------------------------------------------
| Repurchase of own | | | | | |
--------------------------------------------------------------------------------
| shares, tax | 36 | | | | 36 |
| effect | | | | | |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | 7 | | | | 7 |
--------------------------------------------------------------------------------
| Total | | | | | |
| comprehensive | | | | | |
--------------------------------------------------------------------------------
| profit for the | -1 885 | | | | -1 885 |
| period | | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| March 31, 2009 | 32 339 | | 0 | | 32 339 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | | | 22 | | |
--------------------------------------------------------------------------------
| Total | | | | | |
| comprehensive | | | | | |
--------------------------------------------------------------------------------
| profit for the | | | -487 | 1 118 | 952 |
| period | | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| March 31, 2008 | 8 010 | 6 498 | -340 | 1 154 | 19 476 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | |
| (continue) | |
--------------------------------------------------------------------------------
| | To the | | Minority | | EQUITY |
| | owners | | | | |
--------------------------------------------------------------------------------
| | of the | | interest | | TOTAL |
--------------------------------------------------------------------------------
| | Parent | | | | |
--------------------------------------------------------------------------------
| | company | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Jan. 1, 2008 | 33 194 | | 0 | | 33 194 |
--------------------------------------------------------------------------------
| Equity-settled | | | | | |
--------------------------------------------------------------------------------
| share-based | | | | | |
--------------------------------------------------------------------------------
| transactions | 22 | | | | 22 |
--------------------------------------------------------------------------------
| Total | | | | | |
| comprehensive | | | | | |
--------------------------------------------------------------------------------
| profit for the | 1 583 | | | | 1 583 |
| period | | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| March 31, 2008 | 34 799 | | 0 | | 34 799 |
--------------------------------------------------------------------------------
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 29 April 2009 reviewed the Group's
Interim financial report for January 1 - March 31, 2009, and decided to publish
Raute Corporation's Interim financial report for January 1 - March 31, 2009, in
compliance with this release.
1. Accounting principles
Raute Corporation's Interim financial report 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.
Raute Group's Interim financial statements for January 1 - March 31, 2009,
included in the Interim financial report do not contain full notes and other
information presented in the financial statements. Therefore, the Interim
financial report should be read in conjunction with the Financial statements
published for 2008.
The figures presented in the Interim financial report have not been audited
except the figures for the comparison period and financial statements for 2008.
Figures in parentheses refer to the corresponding figures in the comparison
year. All the monetary figures presented in this interim report are in thousands
euros, unless otherwise stated. Due to the rounding 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 the Interim financial report according to the IFRS-standards
requires management to use estimates and assumptions when adopting accounting
principles. Because the forward-looking estimates and assumptions are based on
management's best knowledge at the interim time, they comprise risks and
uncertainties. The actual results may differ from these estimates.
The Group has adopted following new standards and amendments to standards as of
1 January, 2009:
- IFRS 8, Operating segments
- IAS 1, Presentation of financial statement
In other respects, the Group has followed the accounting principles described in
the Financial statements for 2008.
2. Segment information
Operational segment
Continuing operations of Raute Group belong to the wood products technology
segment.
--------------------------------------------------------------------------------
| | 1.1.- | | 1.1.- | | 1.1.- | |
--------------------------------------------------------------------------------
| | 31.3. | | 31.3. | | 31.12. | |
--------------------------------------------------------------------------------
| Wood products technology | 2009 | | 2008 | | 2008 | |
--------------------------------------------------------------------------------
| Net sales | 11 366 | | 23 910 | | 98 466 | |
--------------------------------------------------------------------------------
| Operating profit | -2 179 | | 1 202 | | 6 341 | |
--------------------------------------------------------------------------------
| Assets | 56 939 | | 75 634 | | 60 180 | |
--------------------------------------------------------------------------------
| Liabilities | 24 600 | | 40 835 | | 25 859 | |
--------------------------------------------------------------------------------
| Capital expenditure | 174 | | 852 | | 3 242 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets of the wood | | | | | | |
| products | | | | | | |
--------------------------------------------------------------------------------
| technology segment | | | | | | |
--------------------------------------------------------------------------------
| by geographical location | | % | | % | | % |
--------------------------------------------------------------------------------
| Europe | 53 086 | 93 | 68 914 | 91 | 55 616 | 92 |
--------------------------------------------------------------------------------
| Russia | 425 | 1 | 1 058 | 1 | 782 | 1 |
--------------------------------------------------------------------------------
| North America | 2 452 | 4 | 4 024 | 5 | 2 730 | 5 |
--------------------------------------------------------------------------------
| South America | 43 | 0 | 40 | 0 | 36 | 0 |
--------------------------------------------------------------------------------
| Others | 933 | 2 | 1 598 | 3 | 1 016 | 2 |
--------------------------------------------------------------------------------
| TOTAL | 56 939 | 100 | 75 634 | 100 | 60 180 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure of the | | | | | | |
| wood | | | | | | |
--------------------------------------------------------------------------------
| products technology | | | | | | |
| segment by | | | | | | |
--------------------------------------------------------------------------------
| geographical location | | % | | % | | % |
--------------------------------------------------------------------------------
| Europe | 169 | 97 | 553 | 65 | 2 775 | 86 |
--------------------------------------------------------------------------------
| Russia | 2 | 1 | 1 | 0 | 2 | 0 |
--------------------------------------------------------------------------------
| North America | 3 | 2 | 3 | 0 | 75 | 2 |
--------------------------------------------------------------------------------
| South America | 0 | 0 | 5 | 1 | 19 | 1 |
--------------------------------------------------------------------------------
| Others | 0 | 0 | 290 | 34 | 371 | 11 |
--------------------------------------------------------------------------------
| TOTAL | 174 | 100 | 852 | 100 | 3 242 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Proceeds from sales | | | | | | |
--------------------------------------------------------------------------------
| | 1.1.- | | 1.1.- | | 1.1.- | |
--------------------------------------------------------------------------------
| Net sales | 31.3. | | 31.3. | | 31.12. | |
--------------------------------------------------------------------------------
| by market area | 2009 | % | 2008 | % | 2008 | % |
--------------------------------------------------------------------------------
| Rest of Europe | 3 782 | 33 | 8 741 | 37 | 31 909 | 32 |
--------------------------------------------------------------------------------
| Finland | 2 795 | 25 | 3 145 | 13 | 15 800 | 16 |
--------------------------------------------------------------------------------
| Russia | 2 163 | 19 | 7 429 | 31 | 34 359 | 35 |
--------------------------------------------------------------------------------
| Asia | 858 | 8 | 74 | 0 | 1 241 | 1 |
--------------------------------------------------------------------------------
| South America | 840 | 7 | 1 258 | 5 | 4 311 | 4 |
--------------------------------------------------------------------------------
| North America | 686 | 6 | 3 035 | 13 | 9 832 | 10 |
--------------------------------------------------------------------------------
| Oceania | 226 | 2 | 142 | 1 | 701 | 1 |
--------------------------------------------------------------------------------
| Others | 16 | 0 | 86 | 0 | 313 | 1 |
--------------------------------------------------------------------------------
| TOTAL | 11 366 | 100 | 23 910 | 100 | 98 466 | 100 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Long-term projects | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Net sales | | | |
--------------------------------------------------------------------------------
| Net sales by percentage | | | |
--------------------------------------------------------------------------------
| of completion | 9 088 | 20 315 | 80 749 |
--------------------------------------------------------------------------------
| Other net sales | 2 278 | 3 595 | 17 717 |
--------------------------------------------------------------------------------
| TOTAL | 11 366 | 23 910 | 98 466 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Project revenues entered | | | |
--------------------------------------------------------------------------------
| as income from currently | | | |
--------------------------------------------------------------------------------
| undelivered long-term | | | |
--------------------------------------------------------------------------------
| projects recognized | | | |
--------------------------------------------------------------------------------
| by percentage of completion | 65 247 | 112 011 | 85 487 |
--------------------------------------------------------------------------------
| Amount of long-term project | | | |
--------------------------------------------------------------------------------
| revenues not yet | | | |
--------------------------------------------------------------------------------
| entered as income | 15 200 | 61 297 | 22 817 |
--------------------------------------------------------------------------------
| Specification of combined | | | |
--------------------------------------------------------------------------------
| asset and liability items: | | | |
--------------------------------------------------------------------------------
| Accrued income | | | |
--------------------------------------------------------------------------------
| corresponding to revenues | | | |
--------------------------------------------------------------------------------
| by percentage of completion | 65 673 | 111 356 | 85 328 |
--------------------------------------------------------------------------------
| Advances received from | | | |
--------------------------------------------------------------------------------
| project customers | -56 549 | -95 477 | -73 509 |
--------------------------------------------------------------------------------
| Project receivables included | | | |
--------------------------------------------------------------------------------
| in current assets | 9 124 | 15 879 | 11 819 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Advance payments received | | | |
--------------------------------------------------------------------------------
| in the Balance Sheet | 3 234 | 22 631 | 3 475 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Number of personnel, persons | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| - Effective, on average | 465 | 568 | 538 |
--------------------------------------------------------------------------------
| - In books, on average | 556 | 580 | 585 |
--------------------------------------------------------------------------------
| - In books, at the end of period, | 547 | 578 | 573 |
--------------------------------------------------------------------------------
| - of which personnel working | | | |
--------------------------------------------------------------------------------
| abroad | 128 | 140 | 136 |
--------------------------------------------------------------------------------
6. Income taxes
The taxes in the income statement include the taxes corresponding to the Group
companies' taxable profit for the financial period 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.
--------------------------------------------------------------------------------
| 7. Research and development costs | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Research and development costs | | | |
--------------------------------------------------------------------------------
| for the period | 755 | 862 | 4 375 |
--------------------------------------------------------------------------------
| Depreciation of capitalized | | | |
--------------------------------------------------------------------------------
| development costs | 129 | 92 | 549 |
--------------------------------------------------------------------------------
| Recognized as assets | | | |
--------------------------------------------------------------------------------
| in balance sheet | -123 | -226 | -667 |
--------------------------------------------------------------------------------
| Research and development | | | |
--------------------------------------------------------------------------------
| costs entered as expenses | | | |
--------------------------------------------------------------------------------
| for the period | 761 | 728 | 4 257 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 8. Changes in Property, plant and | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| equipment | | | |
--------------------------------------------------------------------------------
| Carrying amount at the | | | |
--------------------------------------------------------------------------------
| beginning of the period | 40 447 | 40 008 | 40 008 |
--------------------------------------------------------------------------------
| Exchange rate differences | 173 | -130 | -1 484 |
--------------------------------------------------------------------------------
| Additions | 16 | 587 | 2 170 |
--------------------------------------------------------------------------------
| Disposals | 0 | 0 | -90 |
--------------------------------------------------------------------------------
| Other reclassifications between | | | |
--------------------------------------------------------------------------------
| items | 0 | 0 | -157 |
--------------------------------------------------------------------------------
| Carrying amount at the end | | | |
--------------------------------------------------------------------------------
| of the period | 40 635 | 40 465 | 40 447 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | | | |
--------------------------------------------------------------------------------
| amortization at the beginning | | | |
--------------------------------------------------------------------------------
| of the period | -29 272 | -29 014 | -29 014 |
--------------------------------------------------------------------------------
| Exchange rate differences | -142 | -71 | 1 375 |
--------------------------------------------------------------------------------
| Depreciation for the | | | |
--------------------------------------------------------------------------------
| financial period | -411 | -401 | -1 632 |
--------------------------------------------------------------------------------
| Accumulated depreciation and | | | |
--------------------------------------------------------------------------------
| amortization at the end | | | |
--------------------------------------------------------------------------------
| of the period | -29 825 | -29 487 | -29 272 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value at the beginning | | | |
--------------------------------------------------------------------------------
| of the period | 11 175 | 10 993 | 10 993 |
--------------------------------------------------------------------------------
| Book value at the end | | | |
--------------------------------------------------------------------------------
| of the period | 10 811 | 10 979 | 11 175 |
--------------------------------------------------------------------------------
9. Share-based payments
During the reporting period, Raute Corporation's Board of Directors conveyed on
March 27, 2009 a total of 18,900 Raute's series A shares held by the Company
gratuitously to 17 key persons of the Company's share-based incentive plan as
reward payment for the earnings period 2006-2008. The effect of the share-based
remunerations to the profit of Raute Group was EUR 110 thousand (49 thousand).
--------------------------------------------------------------------------------
| 10. Other leases and operating | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| lease liabilities | | | |
--------------------------------------------------------------------------------
| Group as lessee | | | |
--------------------------------------------------------------------------------
| Minimum rents paid on the basis of | | | |
--------------------------------------------------------------------------------
| other non-cancellable leases: | | | |
--------------------------------------------------------------------------------
| - Within one year | 274 | 120 | 273 |
--------------------------------------------------------------------------------
| - After the period of more than 1 | | | |
--------------------------------------------------------------------------------
| and less than 5 years | 465 | 343 | 464 |
--------------------------------------------------------------------------------
| TOTAL | 739 | 463 | 737 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The Group has rented in a part of | | | |
| its | | | |
--------------------------------------------------------------------------------
| office and production premises. | | | |
--------------------------------------------------------------------------------
| The rental agreements are made for | | | |
--------------------------------------------------------------------------------
| the time being or for the | | | |
| fixed-term. | | | |
--------------------------------------------------------------------------------
| The agreements made for the | | | |
| 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 | 58 | 12 |
--------------------------------------------------------------------------------
| - After the period of more than 1 | | | |
--------------------------------------------------------------------------------
| and less than 5 years | 2 | 46 | 2 |
--------------------------------------------------------------------------------
| TOTAL | 14 | 104 | 14 |
--------------------------------------------------------------------------------
11. Pledged assets and contingent liabilities
Raute Group has long-term bilateral credit facilities worth EUR 17 million (MEUR
15), of which EUR 14 million (MEUR 15) were unused on March 31, 2009.
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.
--------------------------------------------------------------------------------
| Pledged assets | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts and other contingent | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| have been secured by mortgages | | | |
--------------------------------------------------------------------------------
| - Mortgages on real property | 134 | 134 | 134 |
--------------------------------------------------------------------------------
| (Raute Corporation's Sickness | | | |
| Fund) | | | |
--------------------------------------------------------------------------------
| - Business mortgages (Credit | 10 000 | 10 000 | 10 000 |
--------------------------------------------------------------------------------
| regulation agreements) | | | |
--------------------------------------------------------------------------------
| Contingent liabilities and | | | |
--------------------------------------------------------------------------------
| other liabilities | | | |
--------------------------------------------------------------------------------
| Security for Parent company and | | | |
--------------------------------------------------------------------------------
| subsidiaries | | | |
--------------------------------------------------------------------------------
| - Bank guarantees | 9 688 | 17 685 | 8 928 |
--------------------------------------------------------------------------------
| Other own liabilities | | | |
--------------------------------------------------------------------------------
| Leasing and rent liabilities | | | |
--------------------------------------------------------------------------------
| - For the current accounting | | | |
--------------------------------------------------------------------------------
| period | 286 | 178 | 285 |
--------------------------------------------------------------------------------
| - For subsequent accounting | | | |
--------------------------------------------------------------------------------
| periods | 467 | 389 | 466 |
--------------------------------------------------------------------------------
No pledges have been given or other commitments made on behalf of the company's
management or shareholders. No loans are granted to the company's management and
shareholders.
--------------------------------------------------------------------------------
| 12. Currency derivatives | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Currency derivatives are used for hedging purposes. | |
--------------------------------------------------------------------------------
| Nominal values of forward | | | |
--------------------------------------------------------------------------------
| contracts in foreign currency | | | |
--------------------------------------------------------------------------------
| Economic hedging | | | |
--------------------------------------------------------------------------------
| - Related to financing | 3 425 | 3 245 | 3 186 |
--------------------------------------------------------------------------------
| - Related to hedging of net sales | 111 | 2 598 | 532 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair values of forward contracts | | | |
--------------------------------------------------------------------------------
| in foreign currency | | | |
--------------------------------------------------------------------------------
| Economic hedging | | | |
--------------------------------------------------------------------------------
| - Related to financing | 142 | 330 | 170 |
--------------------------------------------------------------------------------
| - Related to the hedging | | | |
--------------------------------------------------------------------------------
| of net sales | -2 | 65 | -8 |
--------------------------------------------------------------------------------
13. Own shares
The company repurchased a total of 18,900 of the company's own shares under the
authorization given by the Annual General Meeting on April 2, 2008. The
acquisition price of the shares was the stock exchange price at the time of the
acquisition. The acquisition of the shares did not have any significant impact
on the holdings and voting rights in the company. All company shares held by the
company were transferred on March 27, 2009 to the employees covered by the
share-based remuneration system.
The Parent company has repurchased own shares during the period as follows:
--------------------------------------------------------------------------------
| Period | From Feb. 19 to | From March 1 to |
--------------------------------------------------------------------------------
| | Feb. 28, 2009 | March 17, 2009 |
--------------------------------------------------------------------------------
| Amount, pieces | 8 800 | 10 100 |
--------------------------------------------------------------------------------
| Nominal value, euros | 2.00 | 2.00 |
--------------------------------------------------------------------------------
| Consideration paid, | | |
--------------------------------------------------------------------------------
| euros (average) | 7.00 | 7.12 |
--------------------------------------------------------------------------------
| Consideration paid, | | |
--------------------------------------------------------------------------------
| euros (range) | 6.90 - 7.15 | 7.00 - 7.20 |
--------------------------------------------------------------------------------
14. Events after the balance sheet date
The Annual General Meeting decided according to the proposal of the Board of
Directors to distribute the dividend EUR 0.70 per share be paid for series A and
series K shares.
--------------------------------------------------------------------------------
| GROUP KEY RATIOS | 1.1.-31.3. | 1.1.-31.3. | 1.1.-31.12. |
--------------------------------------------------------------------------------
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on investment (ROI), % | -17.6 | 19.2 | 19.4 |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | -22.7 | 11.2 | 14.0 |
--------------------------------------------------------------------------------
| Gearing, % | -35.5 | -76.0 | -31.0 |
--------------------------------------------------------------------------------
| Equity ratio, % | 60.2 | 65.7 | 60.5 |
--------------------------------------------------------------------------------
| Order book, MEUR | 17 | 65 | 24 |
--------------------------------------------------------------------------------
| Order intake, MEUR | 4 | 33 | 67 |
--------------------------------------------------------------------------------
| Exported portion of net sales, % | 75.4 | 86.8 | 84.0 |
--------------------------------------------------------------------------------
| Change in net sales, % | -52.5 | -17.2 | -11.1 |
--------------------------------------------------------------------------------
| Gross capital expenditure, MEUR | 0.2 | 0.9 | 3.2 |
--------------------------------------------------------------------------------
| % of net sales | 1.5 | 3.6 | 3.3 |
--------------------------------------------------------------------------------
| Research and development, MEUR | 0.8 | 1.0 | 4.9 |
--------------------------------------------------------------------------------
| % of net sales | 6.6 | 4.0 | 5.0 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | | | |
--------------------------------------------------------------------------------
| - undiluted | -0.47 | 0.24 | 1.18 |
--------------------------------------------------------------------------------
| - diluted | -0.47 | 0.24 | 1.18 |
--------------------------------------------------------------------------------
| Equity to share, EUR | 8.08 | 8.69 | 8.57 |
--------------------------------------------------------------------------------
| Dividend per share | | | |
--------------------------------------------------------------------------------
| series K shares, EUR | | | 0.70 |
--------------------------------------------------------------------------------
| Dividend per share | | | |
--------------------------------------------------------------------------------
| series A shares, EUR | | | 0.70 |
--------------------------------------------------------------------------------
| Dividend per profit, % | | | 59.4 |
--------------------------------------------------------------------------------
| Effective dividend return, % | | | 10.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share price at the end of | | | |
--------------------------------------------------------------------------------
| the period, EUR | 7.06 | 14.97 | 6.40 |
--------------------------------------------------------------------------------
| Number of shares | | | |
--------------------------------------------------------------------------------
| - weighted average, 1 000 pcs | 3 998 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
| - diluted, 1 000 pcs | 3 998 | 4 005 | 4 005 |
--------------------------------------------------------------------------------
CALCULATION OF KEY RATIOS
Return on investment (ROI), % =
Profit before tax + financial expenses
----------------------------------------------------------- x 100
Shareholders' equity + interest-bearing financial liabilities
(average of the period)
Return on equity (ROE), % =
Profit/loss for the period
----------------------------------------------------------- x 100
Shareholders' equity (average of the period)
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 period
-----------------------------------------------------------
Equity issue-adjusted average number of shares during the
period
Earnings per share, diluted, euros =
Diluted profit for the period
-----------------------------------------------------------
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 end of the period
Dividend per share, euros =
Distributed dividend for the period
-----------------------------------------------------------
Undiluted number of shares at the end of the period
Dividend per profit, % =
Dividend per share
----------------------------------------------------------- x 100
Earnings per share
Effective dividend return, % =
Dividend per share
----------------------------------------------------------- x 100
Closing share price at the end of the period
Price/earnings ratio (P/E ratio) =
Closing share price at the end of the period
-----------------------------------------------------------
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 period and as the percentage of the average undiluted number of traded
shares relative to issued share stock during the period.
Market value of capital stock =
Undiluted number of shares at the end of the period(series A + series K shares)
x closing price of the share on the last day of the period
Gearing, % =
Interest-bearing net financial liabilities
---------------------------------------------------------- x 100
Shareholders' equity
--------------------------------------------------------------------------------
| THE DEVELOPMENT OF QUARTERLY RESULTS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Q 1 | Q 4 | Q 3 | Q 2 | Rolling | Rolling |
--------------------------------------------------------------------------------
| | 2009 | 2008 | 2008 | 2008 | 1.4.2008 | 1.4.2007 |
--------------------------------------------------------------------------------
| | | | | | - | - |
--------------------------------------------------------------------------------
| | | | | | 31.3.2009 | 31.3.2008 |
--------------------------------------------------------------------------------
| NET SALES | 11 366 | 18 619 | 25 227 | 30 710 | 85 922 | 105 827 |
--------------------------------------------------------------------------------
| Other operating | | | | | | |
--------------------------------------------------------------------------------
| income | 32 | 14 | 29 | 26 | 101 | 450 |
--------------------------------------------------------------------------------
| Increase (+) or | | | | | | |
--------------------------------------------------------------------------------
| decrease (-) in | | | | | | |
--------------------------------------------------------------------------------
| inventories of | | | | | | |
--------------------------------------------------------------------------------
| finished goods | | | | | | |
--------------------------------------------------------------------------------
| and work | | | | | | |
--------------------------------------------------------------------------------
| in progress | 252 | -108 | -65 | 381 | 460 | -8 |
--------------------------------------------------------------------------------
| Materials and | | | | | | |
--------------------------------------------------------------------------------
| services | 5 171 | 8 218 | 13 735 | 17 293 | 44 416 | 55 663 |
--------------------------------------------------------------------------------
| Expenses | | | | | | |
--------------------------------------------------------------------------------
| from employee | | | | | | |
--------------------------------------------------------------------------------
| benefits | 6 132 | 7 062 | 6 541 | 7 858 | 27 592 | 28 999 |
--------------------------------------------------------------------------------
| Depreciation, | | | | | | |
--------------------------------------------------------------------------------
| amortization | | | | | | |
--------------------------------------------------------------------------------
| and impairment | | | | | | |
--------------------------------------------------------------------------------
| charges | 674 | 692 | 699 | 720 | 2 785 | 2 642 |
--------------------------------------------------------------------------------
| Other operating | | | | | | |
--------------------------------------------------------------------------------
| expenses | 1 851 | 2 347 | 1 988 | 2 543 | 8 729 | 11 045 |
--------------------------------------------------------------------------------
| Total operating | | | | | | |
--------------------------------------------------------------------------------
| expenses | 13 828 | 18 318 | 22 962 | 28 413 | 83 522 | 98 350 |
--------------------------------------------------------------------------------
| OPERATING | -2 179 | 206 | 2 228 | 2 704 | 2 960 | 7 919 |
| PROFIT | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | -19 | 1 | 9 | 9 | 3 | 7 |
--------------------------------------------------------------------------------
| Financial | 250 | 550 | 75 | 190 | 1 065 | 801 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Financial | -204 | -448 | 26 | 22 | -603 | -570 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| PROFIT BEFORE | -2 132 | 309 | 2 329 | 2 916 | 3 422 | 8 150 |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| % of net sales | -19 | 2 | 9 | 9 | 4 | 8 |
--------------------------------------------------------------------------------
| Income taxes | 236 | -131 | -733 | -920 | -1 547 | -2 231 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | | | | | | |
--------------------------------------------------------------------------------
| PERIOD | -1 895 | 177 | 1 597 | 1 996 | 1 875 | 5 919 |
--------------------------------------------------------------------------------
| % of net sales | -17 | 1 | 6 | 6 | 2 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | | | | |
--------------------------------------------------------------------------------
| Equity holders | | | | | | |
| of | | | | | | |
--------------------------------------------------------------------------------
| the Parent | -1 895 | 177 | 1 597 | 1 996 | 1 875 | 5 919 |
| company | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | | | | | | |
--------------------------------------------------------------------------------
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Undiluted | | | | | | |
--------------------------------------------------------------------------------
| earnings | | | | | | |
--------------------------------------------------------------------------------
| per share | -0.47 | 0.04 | 0.40 | 0.50 | | |
--------------------------------------------------------------------------------
| Diluted | | | | | | |
| earnings | | | | | | |
--------------------------------------------------------------------------------
| per share | -0.47 | 0.04 | 0.40 | 0.50 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares, | | | | | | |
--------------------------------------------------------------------------------
| 1 000 pcs | | | | | | |
--------------------------------------------------------------------------------
| Adjusted | | | | | | |
--------------------------------------------------------------------------------
| average number | | | | | | |
--------------------------------------------------------------------------------
| of shares | 3 998 | 4 005 | 4 005 | 4 005 | | |
--------------------------------------------------------------------------------
| Adjusted | | | | | | |
--------------------------------------------------------------------------------
| average number | | | | | | |
--------------------------------------------------------------------------------
| of shares, | | | | | | |
--------------------------------------------------------------------------------
| diluted | 3 998 | 4 005 | 4 005 | 4 005 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 20 LARGEST SHAREHOLDERS AT | Number of | Number of | |
--------------------------------------------------------------------------------
| 31 MARCH, 2009 | 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. Suominen Pekka Matias | 48 000 | 64 159 | 112 159 |
--------------------------------------------------------------------------------
| 6. Suominen Tiina Sini-Maria | 48 000 | 62 316 | 110 316 |
--------------------------------------------------------------------------------
| 7. Kirmo Kaisa Marketta | 50 280 | 58 362 | 108 642 |
--------------------------------------------------------------------------------
| 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 | 0 | 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 | 1 493 937 | 2 191 267 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of total amount of shares, % | 70.4 | 49.6 | 54.7 |
--------------------------------------------------------------------------------
| Share of total voting rights, % | 70.4 | 49.6 | 67.6 |
--------------------------------------------------------------------------------
| Administrative registered | | 64 647 | 64 647 |
--------------------------------------------------------------------------------
| Other shareholders | 293 831 | 1 455 013 | 1 748 844 |
--------------------------------------------------------------------------------
| TOTAL | 991 161 | 3 013 597 | 4 004 758 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MANAGEMENT'S SHAREHOLDING | 98 990 | 102 738 | 201 728 |
--------------------------------------------------------------------------------
| Share of total amount of shares, % | 10.0 | 3.4 | 5.0 |
--------------------------------------------------------------------------------
| Share of total voting rights, % | 10.0 | 3.4 | 9.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHARE INFORMATION | 31.3.2009 | 31.3.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares | | | |
--------------------------------------------------------------------------------
| - Series K shares, ordinary shares | | | |
--------------------------------------------------------------------------------
| (20 votes/share) | 991 161 | 991 161 | 991 161 |
--------------------------------------------------------------------------------
| - Series A shares | | | |
--------------------------------------------------------------------------------
| (1 vote/share) | 3 013 597 | 3 013 597 | 3 013 597 |
--------------------------------------------------------------------------------
| Total | 4 004 758 | 4 004 758 | 4 004 758 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Development in share price | | | |
--------------------------------------------------------------------------------
| (series A shares) | | | |
--------------------------------------------------------------------------------
| Trading of shares, pcs | 144 473 | 102 557 | 392 693 |
--------------------------------------------------------------------------------
| Trading of shares, MEUR | 1.0 | 1.4 | 4.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share price of series A shares | | | |
--------------------------------------------------------------------------------
| At the end of reporting period, | 7.06 | 14.97 | 6.40 |
| EUR | | | |
--------------------------------------------------------------------------------
| Highest price during | | | |
--------------------------------------------------------------------------------
| the reporting period, EUR | 7.61 | 14.98 | 15.20 |
--------------------------------------------------------------------------------
| Lowest price during | | | |
--------------------------------------------------------------------------------
| the reporting period, EUR | 6.50 | 12.80 | 6.24 |
--------------------------------------------------------------------------------
| Average price during | | | |
--------------------------------------------------------------------------------
| the reporting period, EUR | 6.97 | 14.06 | 12.37 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market value of capital stock | | | |
--------------------------------------------------------------------------------
| - Series K shares, MEUR* | 7.0 | 14.8 | 6.3 |
--------------------------------------------------------------------------------
| - Series A shares, MEUR | 21.3 | 45.1 | 19.3 |
--------------------------------------------------------------------------------
| Total, MEUR | 28.3 | 60.0 | 25.6 |
--------------------------------------------------------------------------------
*Series K shares valued at the value of series A shares at the end of the
reporting period.
RAUTE CORPORATION
Board of Directors
PRESS CONFERENCE ON APRIL 29, 2009 AT 2 P.M.:
A press conference will be organized for analysts and the media on April 29,
2009 at 2 p.m. at Scandic Simonkenttä Hotel, Roba cabinet, address Simonkatu 9,
Helsinki. The interim report will be presented by Mr. Tapani Kiiski, President
and CEO, and Mrs. Arja Hakala, CFO.
NEXT INTERIM REPORT:
Raute Corporation's interim report for the period January 1-June 30, 2009 will
be published on August 4, 2009.
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
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com
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 company's total service concept also includes technology
services, which cover the entire life-cycle of the investment. 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.
