Panostaja Oyj Stock Exchange bulletin 10 September 2009 10:00 a.m.
PANOSTAJA GROUP INTERIM REPORT 1 November 2008 - 31 July 2009
Net turnover stood at EUR 86.6 million (EUR 85.3 million), equivalent to 2%
growth.
Operating profit stood at EUR 1.0 million (EUR 3.3 million).
Earnings per share (basic) were - 2.4 cents (24.8 cents).
Equity per share was EUR 0.76 (EUR 0.90).
The equity ratio was 36.9% (36.4%).
The speedy downturn in the general economy in the period under review weakened
the Group's profitability further, despite the corrective measures taken.
The Group's net turnover for the financial year is expected to surpass that for
the previous financial year, but the operating profit for the financial year is
expected to be down on the previous year.
This Interim Report was prepared in compliance with the recognition and
measurement principles of the International Financial Reporting Standards (IFRS)
and in accordance with the same accounting policies as the financial statements
for 2008. However, it does not comply with all of the requirements of IAS 34 -
Interim Financial Reporting standard.
GROUP
FINANCIAL PERFORMANCE
Panostaja Group's net turnover for the period under review just ended was EUR
86.6 million (EUR 85.3 million). Growth in net turnover resulted from
acquisitions made during the previous financial year, accounting for EUR 14.4
million of the turnover for the reporting period. Turnover for the Group's
largest segment in terms of turnover (Wholesale Trade) during the period under
review fell by EUR 4.4 million, as that segment's corporate customers adjusted
their inventories to the poorer levels of demand at the start of the calendar
year. They have furthermore continued to make adjustments this spring and
summer. The fall in turnover for the Joinery Industry segment (EUR -2.2 million)
was partly the result of the slowdown in (private) house building. Turnover for
the Industrial Services segment fell by EUR 3.0 million, owing to the decline in
demand on the part of customers in the mechanical engineering sector.
The Group's operating profit stood at EUR 1.0 million (EUR 3.3 million), while
profit before taxes was EUR -0.9 million (EUR 1.6 million). The operating margin
was 1.1% (3.9%). The speedy downturn in the general economy weakened the Group's
profitability, despite the corrective measures taken. Profitability was mainly
down in the Wholesale Trade segment (EUR -0.8 million), Industrial Services (EUR
-0.8 million), Takoma (EUR -0.7) and Other Business (EUR -0.9 million). On the
other hand, operating profit for the Digital Printing Services segment was up by
EUR 1.2 million. Profitability for the Wholesale Trade, Industrial Services and
Takoma services fell because of reduced turnover. Profitability for the Other
Business segment fell due to the fewer number of environmental business projects
and purchases of equipment, both as a result of the global economic crisis.
We were able to prevent the delay in the introduction of the enterprise resource
planning system for Lukkoexpert Security Oy reported during the first quarter
and the company showed a profit for the reporting period.
The Group's net financial expenditure was around EUR -1.9 million (EUR - 1.7
million). The Group's financial expenditure has increased as a result of the
fall in income caused by lower interest rates. The Group employed an average of
767 (730) staff during the reporting period.
Taxes due for the reporting period include EUR 0.2 million from the previous
financial year. Furthermore, no tax demand has been recorded for the parent
company's expenditure because the dividends from subsidiaries the company
receives are free of tax.
On 22 May 2009, Panostaja Oyj's subsidiary, Takoma Oyj, announced that its
turnover for the financial year 2009 would fall and that operating profit would
be significantly down on 2008. Because Takoma's operating profit for the
financial year will have a significant impact on that for the Panostaja Group as
a whole, the Panostaja Oy Board decided to revise the Group's year-end outlook
and also to announce expectations of poorer profit levels on 22 May 2009.
The Panostaja Group's net turnover for the financial year is expected to surpass
that for the previous financial year, but the operating profit for the financial
year is expected to be down on the previous year. The company's previous view
was that the Group's operating profit would surpass that for the previous
financial year, despite the profits for the first quarter, which were down on
the reference period.
INVESTMENTS AND FINANCING
The Group's gross capital expenditure during the period under review was EUR
10.1 million (EUR 20.5 million). The most important investments during the
reporting period were the Bewator Oy and Puztec Oy acquisitions.
Taxes paid (EUR 5.5 million) were the largest item in the Group's cash flow
during the period under review, amounting to EUR -4.7 million. In February 2009
Panostaja Oyj paid taxes for the previous financial year. These included tax on
Arne Oy's profit from sales.
The Group's liquidity, despite negative cash flow and the investments made, was
good. Attention has been paid at every level in the Group to totals for working
capital. Logistical development work is under way in the Wholesale Trade
segment. It aims at optimising the value of inventories in Panostaja's business
segments (subgroups). The Group's cash and cash equivalents of EUR 25.1 million
(EUR 46.2 million) enabled the realisation of the growth strategy.
The Group's equity ratio was 36.9% (36.4%) and interest-bearing net liabilities
stood at EUR 37.0 million (EUR 17.7 million). Panostaja Oyj's convertible
subordinated loan accounted for EUR 17.2 million (EUR 17.2 million) of the net
liabilities.
The Annual General Meeting on 26 January 2009 adopted a proposal by the Board on
a distribution of dividends. Dividends were distributed at EUR 0.12 per share.
The record date for dividend distribution was 29 January 2009 and the payment
date was from 5 February 2009. A total of EUR 5.6 million was paid in dividends
to the parent's shareholders.
CHANGES TO THE GROUP STRUCTURE
During the reporting period Panostaja bought the entire share capital of
Puztec Oy, which supplies tube conveyor systems. A total of 64% of the share
capital became owned by Panostaja on 2 January 2009, with the rest transferring
on 30 April 2009. With the acquisition, Panostaja expanded its business segment
that specialises in environmental technology. Puztec Oy designs, manufactures
and markets community and bio-waste tube conveyor systems and disposal shafts.
The company's turnover in the financial year 2008 was around EUR 2 million. Its
head office is in Kivenlahti, in Espoo.
On 30 April 2009 Panostaja bought the entire share capital of Bewator Oy, a
company that delivers access control products and solutions, from Siemens. On
completion Bewator changed its name to Flexim Security Oy. The company's
customers are mainly large companies and the public sector. Its head office is
in Helsinki and there are regional offices in Turku and Tampere.
Bewator Oy's turnover was EUR 11.6 million and its operating profit was EUR 1.5
million in the financial year 1 October 2007 - 30 September 2008.
The price paid for the company was around EUR 8.0 million. A total of EUR 6.9
million of the purchase price was paid at the time of the conclusion of the
sale. The remaining EUR 1.1 million is to be paid in three separate instalments,
based on certain conditions, over the next three years.
LukkoExpert Security Oy is an expert in locks, door automation and security
technology and services and belongs to Panostaja's locks and security business
area. The deal is expected to have a positive effect on the Panostaja Group's
profits for the current financial year and its share capital and yield. Once the
deal's financing has been finalised, it is assumed it will result in roughly a
1% fall in the Group's equity ratio.
The Group structure was simplified during the period under review, as a result
of certain internal mergers.
Panostaja Oyj's Environment Business group comprises EcoSir Oy, Puztec Oy and
Kospa Oy. On 1 June 2009 these merged to form a new company called Ecosir Group
Oy, a company that will deliver built environment solutions. Mauri Leponen,
Master of Science (Technology), aged 46, was invited to be the new company's CEO
and a shareholder. Leponen was formerly a director at Glaston Oyj.
In the period under review, 2009, Panostaja Oyj reported that Digital Printing
Services was a new segment. It is formed from the Kopijyvä Group. Kopijyvä Oy is
one of Finland's biggest companies providing digital printing services. In the
financial year 2008 the Kopijyvä Group was reported as part of the Other
Business segment. Following the change, Panostaja's six business segments are
now: Industrial Services, the Joinery Industry, Wholesale Trade, Takoma, Digital
Printing Services, and Other Business.
As part of its chosen strategy for growth and focus on core activities,
Panostaja Oyj on 23 October 2008 announced that it was exploring the possible
cash realisation of the properties owned by the Group, although the Group's
current cash flows are adequate for creating growth. The exploratory work was
meant to end in December 2008, but because of the situation in the financial
markets, it still continues.
EVENTS SUBSEQUENT TO THE REPORTING PERIOD
In August Panostaja Oyj purchased the entire share capital of Sokonet Oy, a
company that provides digital printing services. The deal means that Panostaja
will expand its business area that specialises in digital printing services.
Sokonet is a family-owned digital printing firm founded in 1982. The company's
services include copying, printing (print-outs), CAD modelling, digital
printing, scanning, and the SokoPro project bank and courier services. The
company is located in Olari, Espoo. Its turnover in 2008 was EUR 5.3 million and
it employs around 50 staff.
On 24 August 2009 Panostaja's subsidiary, Takoma Oyj, announced that operating
profit for the financial year 2009 was slightly down. Takoma's profitability is
being weakened by a continued fall in demand for Takoma Subcon and fiercer price
competition. In addition, delays in Takoma Hydraulics' delivery dates have
weakened profit expectations. Takoma Oyj had previously predicted that turnover
in the financial year 2009 would fall and operating profit would be
significantly down on 2008.
In August the Tax Rectification Board issued a decision on the taxation of the
profit from sales of Panostaja Oyj's fixed assets.
In the preliminary ruling on the Equity Rebate in respect of Takoma Oy shares of
spring 2008, the Tax Office for Major Corporations decided on the basis of an
overall assessment that Panostaja was a capital investor (venture capital
company) within the meaning of section 6 of the Finnish Business Tax Act,
meaning that the profit (capital gain) from any sales of Takoma shares in fixed
assets is taxable income for the capital investor.
The Tax Office for Major Corporations in its regular dealings in 2007 and 2008
regarded Panostaja Oy as a capital investor, as mentioned, and taxed the company
on certain capital gains on its shares in fixed assets. Panostaja Oyj submitted
a claim for rectification to the relevant Taxation Verification Committee in
respect of taxation for the year 2007, claiming that the gain from shares in
fixed assets sold should be free of tax.
The Taxation Verification Committee rejected Panostaja's claim and stated that
it considered Panostaja to be a capital investor. Panostaja Oyj will appeal the
Committee's ruling in the Helsinki Administrative Court.
ADMINISTRATION AND ANNUAL GENERAL MEETING
At an extraordinary general meeting on 10 November 2008 it was decided to
combine the A and B share series into one. At the same time, Panostaja Oyj
organised a bonus share issue for A series shareholders, in which one new
Panostaja share would be issued free for every 13 A shares held. After the
series were combined and after the share issue, an A series shareholder would
thus own 14 Panostaja shares for each 13 A shares previously held, instead of
the A shares. Each share would now carry one vote and the same shareholder
rights. The new shares were entered in the Trade Register on 14 November 2008
and trading in the combined shares began the same day.
At the extraordinary general meeting on 10 November 2008 it was decided to amend
the Articles of Association. The new Articles of Association were recorded in
the Trade register on 14 November 2008.
Panostaja Oyj's Annual General Meeting was held on 26 January 2009. Mr. Matti
Koskenkorva, Mr. Jukka Ala-Mello, Mr. Hannu Tarkkonen, Mr. Hannu Martikainen and
Mr. Hannu Ketola were re-elected to Panostaja Oyj's Board of Directors. As soon
as the Annual General Meeting was concluded, the Board of Directors convened for
their organisational meeting and appointed Mr. Matti Koskenkorva Chairman of the
Board and Jukka Ala-Mello Vice-chairman. As auditors the AGM elected Mr. Eero
Suomala, APA, and PricewaterhouseCoopers Oy, APA, with Mr. Janne Rajalahti, APA,
as the responsible auditor.
The AGM approved the financial statements presented for the financial year 1
November 2007 - 31 October 2008 and the Board's proposal to transfer the profit
for the period to retained earnings and to distribute EUR 0.12 per share in
dividends. The record date for dividend distribution was 29 January 2009 and the
payment date was as from 5 February 2009. In addition, the AGM granted discharge
in respect of the members of the Board of Directors and the Chief Executive
Officer.
In addition, the Annual General Meeting revoked the authorisation regarding the
acquisition of its own shares given at its General Meeting on 18 December 2007
and authorised the Board of Directors to decide on the acquisition of its own
shares, with the maximum number to be acquired set at 4,740,311 or less, which,
together with the other shares held by or pledged to the company or its
subsidiaries, would be a maximum of one tenth of all the company shares, i.e.
4,740,311.
The shares are to be acquired at the going market price in public trading
organised by NASDAQ OMX Helsinki Oy not in proportion to shareholders' holdings.
The acquisition of shares will be consistent with NASDAQ OMX Helsinki Oy and
Euroclear Finland Oy rules.
The authorisation will be in effect for 18 months from the date it was
announced.
The Board exercised the authority it was given at the General Meeting of 18
December 2007 and acquired 222,109 of the company's own shares during the
reporting period. It also received 37,160 of the company's own shares in the
bonus share issue organised when the share series were combined.
In addition, the Board exercised the authority it was given at the General
Meeting of 26 January 2009 to start a purchase programme for the company's own
shares. The number of shares being acquired is a maximum of 3,500,000. The
purchase programme began on 18 May 2009 and will end by 31 October 2009.
In addition, the Board has exercised the authority it was given at the General
Meeting of 26 January 2009 to acquire its own shares, and acquired 159,947 of
the company's own shares in the period under review.
The company's own shares will be acquired to be used as consideration for
possible business acquisitions or other restructuring measures/mergers or when
purchasing assets as part of business operations for the company or a company in
the same Group, for developing the company's capital structure, for cancelling
shares, or for implementing the incentive scheme for key personnel.
SHARE CAPITAL AND OWN SHARES
At the end of the reporting period, Panostaja Oyj's share capital stood at EUR
5,529,081.60. The number of shares amounted to 47,403,110.
In accordance with the decisions taken at the AGM on 18 December 2007 and by the
Board of Directors, on 19 December 2008 Panostaja Oyj distributed a total of
7,430 shares to the Board members as payment of their attendance allowance. On
13 March 2009 it distributed a total of 8,614 shares and on 12 June 2009 6,327
shares, in accordance with its decisions taken at the AGM on 26 January 2009 and
by the Board.
The number of own shares held by the company at the end of the reporting period
was 1,136,596. The number of own shares was equivalent to 2.4% of the total
number of shares and votes at the end of the reporting period.
SUBORDINATED LOAN
The amount of the 2006 convertible subordinated loan outstanding at the end of
the reporting period was EUR 17,212,500, entitling holders to subscribe for a
total of 10,125,000 new shares. The subordinated loan was not used to subscribe
for any new shares during the reporting period.
SHARE PERFORMANCE AND HOLDINGS
Panostaja Oyj share prices varied during the reporting period between EUR 0.89
and EUR 1.36. The equity turnover for shares was 6,844,092, equivalent to 14.8%
of the share capital. The price at the end of July was EUR 1.32. The market
value of the company's share capital was EUR 62.6 million at the end of July,
when the company had 3,754 (2,247) shareholders.
Panostaja Oyj's holdings altered when the new shares issued in Panostaja's bonus
issue were recorded in the Trade Register. On 14 November 2008 Panostaja Oyj
received the following notifications in connection with the change in share
ownership:
Matti Koskenkorva's holding went under 15% of the votes carried by the shares of
Panostaja Oyj. His holding is 6,124,453 shares, which is 12.9% of Panostaja
Oyj's equity capital and votes. Maija Koskenkorva's holding exceeded 10% of the
votes carried by the shares of Panostaja Oyj. Her holding is 5,071,742 shares,
which is 10.7% of Panostaja Oyj's equity capital and votes. Olli Halmevuo's
holding went under 5% of the votes carried by the shares of Panostaja Oyj. His
holding is 2,013,715 shares, representing 4.2% of Panostaja Oyj's equity capital
and votes.
SHORT-TERM RISKS AND UNCERTAINTIES
Panostaja Group's most significant risks are described in the financial
statements. The dramatic economic downturn has caused customer demand to weaken,
decline in volume and has increased the likelihood of bad debts in some
segments. Short-term risks also relate in particular to the successful
integration of acquired companies.
OUTLOOK FOR THE REST OF THE FINANCIAL YEAR
The Panostaja Group will continue to focus on the business idea in line with its
core business strategy and on the development of existing business areas. The
retirement of the baby-boomers, the ever more dramatic changes in the business
environment and internationalisation will result in a large number of business
purchases over the next few years. Panostaja's operating conditions, available
capital resources and liquid assets are a good basis for intense expansion of
operations. The increasing number of SMEs operating in traditional industries
will enable both further expansion into new business areas and growth in
existing business areas.
Expectations for the current business sectors are closely tied to the economic
outlook for corporate customers. Prospects in recent weeks have improved a bit
generally. The prospects for the different business areas in the Panostaja Group
vary from weakening to cautiously positive. The investments in reporting and
monitoring systems made in the previous financial year will make us more able to
respond and react. The current economic climate is also an opportunity for
acquisitions and the Panostaja Group strategy for growth is intended to be
realised through controlled acquisitions, especially in existing business areas.
The Panostaja Group's net turnover for the financial year is expected to surpass
that for the previous financial year, but the operating profit for the financial
year is expected to be down on the previous year.
Panostaja Oyj
Board of Directors
For further information, please contact Mr. Juha Sarsama, CEO, on (tel.) 040 774
2099.
Panostaja Oyj
Juha Sarsama
CEO
All forecasts and estimates in these financial statements are based on the
current views of the management of the Group and the managers of the business
areas on the economic climate and developments and the actual results may be
significantly different. The data provided in this Interim Report is unaudited.
FINANCIAL INFORMATION
CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| | 11/08-7/09 | 11/07-7/08 | 11/07-10/08 |
--------------------------------------------------------------------------------
| (EUR 1,000) | 9 months | 9 months | 12 months |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net turnover | 86,636 | 85,297 | 121,133 |
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| Other operating income | 560 | 464 | 757 |
--------------------------------------------------------------------------------
| Total expenses | 83,539 | 79,870 | 111,881 |
--------------------------------------------------------------------------------
| Depreciation, amortisation and | 2,686 | 2,592 | 3,602 |
| impairment | | | |
--------------------------------------------------------------------------------
| Operating profit/loss | 971 | 3,299 | 6,407 |
--------------------------------------------------------------------------------
| Financial income and expenses | -1,865 | -1,701 | -2,058 |
--------------------------------------------------------------------------------
| Share of profit of associates | 0 | 0 | 45 |
--------------------------------------------------------------------------------
| Profit before taxes | -894 | 1,598 | 4,394 |
--------------------------------------------------------------------------------
| Income taxes | -48 | -430 | -1,635 |
--------------------------------------------------------------------------------
| Profit/loss from continuing | -942 | 1,168 | 2,759 |
| operations | | | |
--------------------------------------------------------------------------------
| Profit/loss from discontinued | 0 | 10,538 | 11,038 |
| operations | | | |
--------------------------------------------------------------------------------
| Profit for the period | -942 | 11,706 | 13,797 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | -1,109 | 11,053 | 12,694 |
| company | | | |
--------------------------------------------------------------------------------
| Minority interest | 167 | 653 | 1,103 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share on | -0.024 | 0.012 | 0.037 |
| continuing operations, EUR - | | | |
| basic | | | |
--------------------------------------------------------------------------------
| Earnings per share on | 0.000 | 0.236 | 0.247 |
| discontinued operations, EUR - | | | |
| basic | | | |
--------------------------------------------------------------------------------
| Earnings per share on | 0.000 | 0.193 | 0.201 |
| discontinued operations, EUR - | | | |
| diluted | | | |
--------------------------------------------------------------------------------
| Earnings per share on | -0.024 | 0.248 | 0.284 |
| continuing and discontinued | | | |
| operations, EUR - basic | | | |
--------------------------------------------------------------------------------
| Earnings per share on | -0.009 | 0.214 | 0.247 |
| continuing and discontinued | | | |
| operations, EUR - diluted | | | |
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CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1,000) | 07/2009 | 07/2008 | 10/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 37,033 | 29,024 | 29,519 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 18,504 | 18,897 | 18,770 |
--------------------------------------------------------------------------------
| Interests in associates | 1,810 | 1,740 | 1,787 |
--------------------------------------------------------------------------------
| Other non-current assets | 5,766 | 5,633 | 4,797 |
--------------------------------------------------------------------------------
| Interest-bearing receivables | 56 | 0 | 65 |
--------------------------------------------------------------------------------
| Total non-current assets | 63,169 | 55,294 | 54,938 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Stocks | 25,835 | 23,143 | 22,991 |
--------------------------------------------------------------------------------
| Trade and other non-interest-bearing | 15,920, | 19,421 | 22,552 |
| receivables | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 25,082 | 46,197 | 46,018 |
--------------------------------------------------------------------------------
| Total current assets | 66,837 | 88,761 | 91,561 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 130,006 | 144,055 | 146,499 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Share capital | 5,529 | 5,529 | 5,529 |
--------------------------------------------------------------------------------
| Other equity | 29,572 | 35,403 | 36,712 |
--------------------------------------------------------------------------------
| Total | 35,101 | 40,932 | 42,241 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 12,848 | 11,128 | 11,562 |
--------------------------------------------------------------------------------
| Total equity | 47,949 | 52,060 | 53,803 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 2,174 | 1,616 | 1,729 |
--------------------------------------------------------------------------------
| Convertible loan | 16,976 | 16,842 | 16,878 |
--------------------------------------------------------------------------------
| Non-current liabilities | 39,592 | 45,068 | 41,119 |
--------------------------------------------------------------------------------
| Current liabilities | 23,315 | 28,469 | 32,970 |
--------------------------------------------------------------------------------
| Total liabilities | 82,057 | 91,995 | 92,696 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and liabilities | 130,006 | 144,055 | 146,499 |
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CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| | 07/2009 | 07/2008 | 10/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities | -4,723 | 1,289 | 3,751 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow used in investing activities | -8,918 | -1,728 | -4,470 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase in creditors | 3,067 | 30,400 | 30,400 |
--------------------------------------------------------------------------------
| Decrease in creditors | -5,174 | -20,096 | -20,574 |
--------------------------------------------------------------------------------
| Share issue to minorities(subsidiaries) | 1,117 | 0 | 0 |
--------------------------------------------------------------------------------
| Dividends paid | -5,874 | -4,439 | -4,263 |
--------------------------------------------------------------------------------
| Other changes in equity | -432 | ,-203 | -99 |
--------------------------------------------------------------------------------
| Total cash flow from financing activities | -7,296 | 5,662 | 5,464 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -20,937 | 5,223 | 4,745 |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
| (EUR 1,000) | Sha | Shar | Inves | Tran | Reta | Minor | Total | |
| | re | e | ted | sla | ined | ity | | |
| | cap | prem | unres | tion | earn | inter | | |
| | ita | ium | trict | diff | ings | est | | |
| | l | acco | ed | ere | | | | |
| | | unt | equit | nces | | | | |
| | | | y | | | | | |
| | | | fund | | | | | |
--------------------------------------------------------------------------------
| Shareholders' |5,424| 4,647| 12,825| 35 |12,339| 4,290 | 39,560 | |
| equity as at 1 | | | | | | | | |
| November 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | 81 | | | | 81 | |
| incentive | | | | | | | | |
| schemes | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | |11,053| 653 | 11,706 | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total income and | | | 81 | |11,053| 653 | 11,787 | |
| expenses | | | | | | | | |
| recorded for the | | | | | | | | |
| financial year | | | | | | | | |
--------------------------------------------------------------------------------
| Increase in | 105 | | 1,383 | | | | 1,488 | |
| share capital | | | | | | | | |
| connected with | | | | | | | | |
| convertible | | | | | | | | |
| subordinated | | | | | | | | |
| loan | | | | | | | | |
--------------------------------------------------------------------------------
| Share of own | | | -148 | | | | -148 | |
| capital in | | | | | | | | |
| convertible | | | | | | | | |
| subordinated | | | | | | | | |
| loan | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | | | | |-3,970| -469 | -4,439 | |
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity Rebate | | | -2,833| | | 2,722 | -111 | |
| | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | -450 | | | | -450 | |
| own shares | | | | | | | | |
--------------------------------------------------------------------------------
| Sale of own | | | 359 | | | | 359 | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Discontinued | | | | | |-2,099 | -2,099 | |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
| Currency | | | | 82 | | | 82 | |
| translation | | | | | | | | |
| differences | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | | | | 6,030 | 6,030 | |
| minority | | | | | | | | |
| interests | | | | | | | | |
--------------------------------------------------------------------------------
| Other changes to | 105 | | -1,689| 82 |-3,970| 6,184 | 712 | |
| shareholder's | | | | | | | | |
| equity - total | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' |5,529|4,647 |11,217 | 117 |19,422|11,127 | 52,059 | |
| equity as at 31 | | | | | | | | |
| July 2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' |5,529 4,647 |12,403 | -6 |19,669| 11,56 | 53,804 | |
| equity as at 1 | | | | | 2 | | |
| November 2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | 71 | | | | 71 | |
| incentive | | | | | | | | |
| schemes | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | |-1,109| 167 | -942 | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total income and | | | 71 | |-1,109| 167 | -871 | |
| expenses | | | | | | | | |
| recorded for the | | | | | | | | |
| financial year | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | | | | |-5,569| -304 | -5,873 | |
| | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | -457 | | | | -457 | |
| own shares | | | | | | | | |
--------------------------------------------------------------------------------
| Sale of own | | | 25 | | | | 25 | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Currency | | | | -99 | | | -99 | |
| translation | | | | | | | | |
| differences | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | | | | 1,423 | 1,423 | |
| minority | | | | | | | | |
| interests | | | | | | | | |
--------------------------------------------------------------------------------
| Other changes to | | | -432 | -99 | -5,5 | 1,119 | -4,983 | |
| shareholder's | | | | | 69 | | | |
| equity - total | | | | | | | | |
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| Shareholders' |5,529| 4,647| 12,040| -105 | 12,991 12,848| 47,949 | |
| equity as at 31 | | | | | | | | |
| July 2009 | | | | | | | | |
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KEY INDICATORS
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| | 07/2009 | 07/2008 | 10/2008 |
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| Equity per share, EUR | 0.76 | 0.90 | 0.93 |
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| Average number of shares during the period | 46,370 | 44,565 | 44,760 |
| (000's) | | | |
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| Number of shares at end of period (000's) | 47,403 | 45,337 | 46,076 |
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| Share issues / convertible during the period | 0 | 0 | 875 |
| (000's) | | | |
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| Average number of shares (000's)- diluted | 56,495 | 54,720 | 54,885 |
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| Return on equity (ROE), % | -2.5 | 34.1 | 29.6 |
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| Return on investment (ROI), % | 2.3 | 19.2 | 18.5 |
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| Gross capital expenditure | | | |
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| on non-current assets (MEUR) | 10.1 | 20.5 | 24.2 |
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| % of net turnover | 11.7 | 24.0 | 19.9 |
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| Interest-bearing liabilities | 62,510 | 64,314 | 64,189 |
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| Equity ratio, % | 36.9 | 36.4 | 36.8 |
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| Average number of employees | 767 | 730 | 646 |
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Key indicators have been calculated eliminating own shares held by the company.
GROUP'S QUARTERLY PERFORMANCE
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| (EUR | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS | IFRS |
| million) | | | | | | | | |
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| | Q4/07 | Q1/08 | Q2/08 | Q3/08 | Q4/08 | Q1/09 | Q2/09 | Q3/09 |
--------------------------------------------------------------------------------
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| Net turnover | 25.7 | 26.0 | 28.4 | 31.0 | 35.8 | 28.8 | 30.5 | 27.3 |
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| Other | 0.4 | 0.2 | 0.1 | 0.1 | 0.4 | 0.2 | 0.1 | 0.3 |
| operating | | | | | | | | |
| income | | | | | | | | |
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| Total | 24.0 | 24.9 | 26.6 | 28.3 | 31.9 | 28.7 | 28.0 | 26.8 |
| expenses | | | | | | | | |
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| Depreciation | 0.7 | 0.7 | 0.7 | 1.2 | 1.0 | 0.9 | 0.8 | 1.0 |
| and | | | | | | | | |
| amortisation | | | | | | | | |
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| Operating | 1.4 | 0.5 | 1.2 | 1.6 | 3.2 | -0.6 | 1.8 | -0.2 |
| profit | | | | | | | | |
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| Financial | -0.5 | -0.4 | -0.6 | -0.7 | -0.4 | -0.4 | -0.7 | -0.8 |
| items | | | | | | | | |
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| Profit | 0.9 | 0.1 | 0.6 | 0.9 | 2.8 | -1.0 | 1.1 | -1.0 |
| before taxes | | | | | | | | |
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| Taxes | 0.2 | -0.1 | 0.0 | -0.3 | -1.3 | 0.0 | -0.4 | 0.4 |
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| Minority | 0.3 | 0.3 | 0.7 | -0.4 | -0.5 | -0.1 | -0.1 | 0.0 |
| interest | | | | | | | | |
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| Profit from | 0.7 | 0.0 | -0.7 | 1.9 | 1.6 | -0.9 | 0.6 | -0.6 |
| continuing | | | | | | | | |
| operations | | | | | | | | |
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| Profit from | 0.7 | 0.7 | 1.7 | | 0.5 | 0.0 | 0.0 | 0.0 |
| discontinued | | | | 8.1 | | | | |
| operations | | | | | | | | |
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| Profit for | 1.4 | 0.7 | 1.0 | 10.0 | 2.1 | -0.9 | 0.6 | -0.6 |
| the period | | | | | | | | |
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CONTINGENT LIABILITIES
EUR 1,000 07/2009 07/2008 2008
Collateral given on behalf of Group
companies
Mortgages 9,195 4,555 8,621
Floating charges 30,854 26,707 30,905
Pledges given 50,017 48,734 48,734
Other liabilities 168 5,614 93
Amounts payable under lease contracts
Payable within one year 2,770 613 1,716
Payable after one year
but within five years 3,114 3,435 4,505
Total 5,884 4,048 6,221
Liabilities have been measured at the nominal or book value of collateral.
SEGMENT INFORMATION
The Group's primary reporting segment is the business segment. The Group
reported on six business segments for the financial year. The Group does not
have a secondary reporting segment.
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| EUR 1,000 | 7/2009 | 7/2008 |
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| NET TURNOVER | | |
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| Industrial services | 13,036 | 16,068 |
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| Joinery industry | 3,673 | 5,846 |
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| Wholesale trade | 28,698 | 33,081 |
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| Takoma | 11,566 | 13,292 |
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| Digital services | 9,254 | 2,682 |
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| Other | 20,965 | 14,669 |
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| Eliminations | -557 | -324 |
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| Total | 86,636 | 85,297 |
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| OPERATING PROFIT/LOSS | | |
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--------------------------------------------------------------------------------
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| Industrial services | 473 | 1,324 |
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| Joinery industry | -39 | 181 |
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| Wholesale trade | 1,188 | 2,049 |
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| Takoma | -140 | 598 |
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| Digital services | 1,386 | 177 |
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| Other | -1,897 | -1,030 |
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| Total | 971 | 3,299 |
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SEGMENT INFORMATION BY QUARTER
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| (EUR million) | Qr/0 | Q1/0 | Q2/0 | Q3/08 | Q4/08 | Q1/09 | Q2/09 | Q3/09 |
| | 7 | 8 | 8 | | | | | |
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| Net turnover | | | | | | | | |
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| Industrial | 5.2 | 4.6 | 5.2 | 6.3 | 6.3 | 4.7 | 4.4 | 3.9 |
| services | | | | | | | | |
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| Joinery | 2.5 | 2.0 | 2.2 | 1.6 | 1.7 | 1.4 | 1.2 | 1.1 |
| industry | | | | | | | | |
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| Wholesale trade | 12.6 | 10.1 | 11.3 | 11.7 | 12.3 | 9.2 | 9.6 | 9.9 |
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| Takoma | 0.0 | 4.6 | 4.6 | 4.1 | 5.1 | 4.6 | 4.6 | 2.4 |
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| Digital | 0.0 | 0.0 | 0.0 | 2.7 | 3.2 | 3.0 | 3.3 | 3.0 |
| printing | | | | | | | | |
| services | | | | | | | | |
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| Other | 5.2 | 4.6 | 5.1 | 4.6 | 7.2 | 5.9 | 7.4 | 7.0 |
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| Total | 25.7 | 26.0 | 28.4 | 31.0 | 35.8 | 28.8 | 30.5 | 27.3 |
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| Operating | | | | | | | | |
| profit/loss | | | | | | | | |
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| Industrial | 0.5 | 0.4 | 0.2 | 0.7 | 1.0 | 0.1 | 0.4 | 0.0 |
| services | | | | | | | | |
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| Joinery | 0.3 | -0.1 | 0.2 | 0.0 | 0.1 | -0.2 | 0.1 | 0.1 |
| industry | | | | | | | | |
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| Wholesale trade | 0.8 | 0.6 | 0.0 | 1.6 | 0.6 | 0.3 | 0.1 | 0.8 |
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| Takoma | 0.0 | 0.0 | 0.4 | 0.2 | 0.5 | 0.0 | 0.3 | -0.4 |
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| Digital | 0.0 | 0.0 | 0.0 | 0.1 | 0.6 | 0.3 | 0.6 | 0.5 |
| printing | | | | | | | | |
| services | | | | | | | | |
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| Other | -0.2 | -0.4 | 0.4 | -1.0 | 0.4 | -1.1 | 0.4 | -1.2 |
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| Total | 1.4 | 0.5 | 1.2 | 1.6 | 3.2 | -0.6 | 1.9 | -0.2 |
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Panostaja Oyj is an investment company. The company invests in Finnish small and
medium-sized enterprises operating in traditional industries. Investments are
mostly carried out through acquisitions. The Panostaja Group invests business
resources and strategic know-how in companies. The objective is to raise the
status of the target company so that it becomes a major player in its field,
according to a pre-determined schedule. Once this schedule has elapsed, the
enterprise continues to operate as an independent growth company.
At present, the company operates in 13 business areas. Oy Alfa-Kem Ab
manufactures and markets industrial chemicals, cleaning agents and institutional
kitchen detergents. Ecosir Oy specialises in solutions for waste management and
property maintenance equipment. The Heatmasters Group delivers metal heat
treatment services in Finland and internationally and manufactures, develops and
markets heat treatment technology. Suomen Helakeskus Oy is a key wholesaler of
construction and furniture fittings in Finland. Fastenings company KiinikeskusOy
serves its retailers nationwide. KL-Varaosat specialises in the import,
wholesale and retail of OEM spare parts and accessories for Mercedes-Benz and
BMW cars. Kopijyvä Oy is one of Finland's biggest companies providing digital
printing services. LukkoExpert Security Oy is an expert in locks, door
automation and security technology and services. Flexim Security Oy delivers
access control products and solutions. Lämpö-Tukku Oy specialises in wholesale
heating, plumbing and ventilation equipment. Suomen Puunjalostus Oy operates in
the joinery industry, solid wood interior doors and wooden staircases being its
main products. Takoma Oyj is a listed mechanical engineering Group based on an
entrepreneur-driven business model. Toimex Oy manufactures and sells heating,
plumbing and ventilation supports. Vallog Oy specialises in Finnish metal
industry manufacturing and logistics services.