NORDIC ALUMINIUM PLC FINANCIAL STATEMENTS RELEASE 2010
Nordic Aluminium’s net sales and operating profit increased compared to the previous year. Nordic Aluminium’s consolidated net sales in 2010 were EUR 68.26 million (EUR 62.24 million). Consolidated operating profit in 2010 was EUR 15.86 million (EUR 4.14 million). Net profit was EUR 11.92 million (EUR 3.05 million). Return on investment was 32.3 per cent (9.1 per cent) and return on equity 23.7 per cent (6.5 per cent). The Board proposes the payment of a dividend of 2010 2.10 EUR per share for a total payment of EUR 10.16 million (EUR 6.29 million).
Group structure
Nordic Aluminium Plc's parent company is Oy Lival Ab. The Nordic Aluminium Group is made up of the parent company Nordic Aluminium Plc, operating at Kirkkonummi and Nivala, and its subsidiaries Nordic Aluminium Inc. in the United States and Nordic Aluprofiler AB in Sweden.
Net sales and profits
Nordic Aluminium’s consolidated net sales were EUR 68.26 million (EUR 62.24 million). The operating profit of Nordic Aluminium in 2010 amounted to EUR 15.86 million (EUR 4.14 million). Earnings per share for the period were EUR 2.46 (EUR 0.63). The Company’s profitability increased. Consolidated operating profit was 23.2 per cent from net sales (11.9 per cent).
The share of exports and international operations were 48.8 per cent of net sales as compared with 45.2 per cent the year before. The major export markets in 2010 were Southern Europe, Eastern Europe, Far East, Western Europe, the Nordic countries, and North America.
Net sales per employee was EUR 0.44 million (EUR 0.30 million).
Last quarter in a nutshell
During the last quarter net sales of Nordic Aluminium, EUR 15.14 million, increased by 10 per cent from the equivalent period in the previous year (EUR 13.76 million). The operating profit for the period was EUR 3.57 million (EUR -0.93 million). Earnings per share were EUR 0.56 (EUR -0.15).
Order backlog
Nordic Aluminium's order book at the end of 2010 stood at EUR 7.22 million (EUR 4.02 million).
Purchase behaviour in the market did not change compared to the previous year. Customers are not able to give reliable estimates and order only for actual needs with short delivery times.
Research and development expenses
Nordic Aluminium's research and development expenses in 2010 were EUR 0.15 million (EUR 0.22 million), 0.2 per cent of net sales (0.4 per cent).
Investments
Gross investments in 2010 were EUR 1.85 million (EUR 6.84 million).
Profitability
Return on investment (ROI) in Nordic Aluminium in 2010 was 32.3 per cent (9.1 per cent) and return on equity (ROE) was 23.7 per cent (6.5 per cent). Diluted earnings per share were EUR 2.46 (EUR 0.63). Equity per share was EUR 10.99 (EUR 9.80).
Balance sheet and financing
The consolidated balance sheet total at the end of the 2010 fiscal year was EUR 61.56 million (EUR 56.17 million). Equity ratio was 86.4 per cent (84.4 per cent). Cash flow from operations before interests and taxes was EUR 17.20 million (EUR 11.33 million).
Authorisations
The Board has no current authorisations for the increase of the company's share capital or the procurement of own shares.
Share capital
The total number of Nordic Aluminium Plc´s shares at the end of the fiscal year 2010 was EUR 4,836,882. The registered share capital is EUR 6,191,208.96. All shares have the same voting and dividend rights. Nordic Aluminium Plc’s shares have been listed on NASDAQ OMX Helsinki Ltd. since 1997.
Share trading
The shares of Nordic Aluminium Plc are traded at the Helsinki Stock Exchange. The trading identifier is NOA1V and the ISIN code is FI0009006415. A total of 390,524 (275,510) Nordic Aluminium Plc shares were traded on the stock market in 2010 with total value of EUR 8.26 million. The share quotation ranged between EUR 14.94 and EUR 30.90 (EUR 9.84-17.50). The number of shares was 4,836,882 which remained unchanged during the reporting period. The market value of the company’s shares stood at EUR 137.9 million (EUR 71.4 million) at the end of December.
Paid dividends for the year 2009 were EUR 1.30 per share for a total payment of EUR 6,287,946.60.
Shares and ownership
There were no major changes in the ownership of Nordic Aluminium Plc during the year. At the end of the fiscal year 2010 Nordic Aluminium Plc’s ownership was as follows:
The biggest shareholders Dec 31, 2010 Number of Share of capital
Owner shares and votes
%
Oy Lival Ab 3,087,945 63.84
Varma Mutual Pension Employment
Insurance Company 250,000 5.17
Aktia Capital Unit Trust 225,000 4.65
Evli-Select Mutual Fund 173,840 3.59
Veritas Mutual Pension Insurance Company 139,000 2.87
Lival-Lindström, Stig 129,050 2.67
Fondita Micro Cap Mutual Trust 90,000 1.86
Rausanne 58,318 1.21
Mutual Fund Evli Nordic Dividend 35,111 0.73
Mandatum Life Insurance Company 25,318 0.52
Others 623,300 12.89
Total 4,836,882 100.00
The number of nominee-registered shares at the end of 2010 was 15,785 which equals 3.26 per cent of the company's shares and votes. The total number of shareholders at the end of the year was 1,552.
Shareholders by sector Dec 31, 2010 Number of Share
shares
%
Companies 3,233,177 66.84
Financial and insurance institutions 537,199 11.11
Associations 401,000 8.29
Non-profit associations 25,634 0.53
Households 612,708 12.67
Owners outside Finland 27,164 0.56
Total 4,836,882 100.00
Shareholders by size of holdings Dec 31, 2010
Number of shares Number of % Number of %
owners shares
1 – 200 1005 64.76 92,097 1.91
201 – 2,000 490 31.57 277,218 5.73
2,001 – 20,000 45 2.90 208,921 4.32
20,001 – 200,000 9 0.58 695,701 14.38
200,001 – 2,000,000 2 0.13 475,000 9.82
2,000,001 – 9,999,999 1 0.06 3,087,945 63.84
Total 1,552 100.00 4,836,882 100.00
Insider issues
Nordic Aluminium Plc adheres to the guidelines for insiders issued by NASDAQ OMX Helsinki Ltd. Nordic Aluminium Plc's permanent insiders are: Members of the Board of Directors, Managing Director & CEO, Secretary of the Board and the Members of the Management Group as well as named individuals within the Company's financial administration, sales and marketing and production. The appointed insider issue responsible is the Company's CFO. Up-to-date insider data is maintained in the Central Securities Depository at Euroclear Finland Ltd’s premises.
The Company recommends that the permanent insiders' investments in the Company's are to be long-term investments. According to NASDAQ OMX Helsinki Ltd. guidelines for insiders and the Company's own Insider Guidelines trading in the Company's securities should be done at the times when the market has as exact information as possible of the issues and matters influencing the value of the security.
Annual General Meeting
The Annual General Meeting of Nordic Aluminium Plc on March 31, 2010 adopted the financial statements and discharged the members of the Board and the Managing Director from liability. The Meeting also decided to approve the proposal of the Board for a dividend of 2009 EUR 1.30 per share (EUR 0.40) or a total of EUR 6.29 million.
The Annual General Meeting elected Stig Lival-Lindström, Viveka Iisaho, Nina Ehrnrooth and Hans Jonasson regular members of the Board of Directors. The board elected Stig Lival-Lindström Chairman on the same date.
The Annual General Meeting elected Authorised Public Accountant Ernst & Young Oy as Auditor of Nordic Aluminium Plc with Tomi Englund, Authorized Public Accountant, as responsible Auditor.
Personnel
In 2010 the Nordic Aluminium Group had an average number of 156 employees. The corresponding number the year before was 207. At the end of 2010 the Group had 151 employees.
Nordic Aluminium’s Managing Director Peter Högel resigned on October 31, 2010. Joakim Berndtsson was appointed as the new Managing Director on November 1, 2010.
Events after the reporting period
Nordic Aluminium Plc started employee negotiations in compliance with the Act on Cooperation in December. The conclusion of the negotiations was that 11 employment contracts were terminated in January 2011.
Outlook
The new model of activity has been adopted in Nordic Aluminium’s organisation. In order to improve productivity and profitability Nordic Aluminium will continue to take actions and make fine adjustments in every part of the organisation.
Demand for Nordic Aluminium Plc´s electrotechnical products will gradually improve in 2011, preceded by some difficult cyclical years. Nordic Aluminium Plc operates in late cyclical line of business and that is why the company is dependent on new business premises and trade centres being established as well as on activity in public and industrial investments.
The Board of Directors expect that net sales will grow during this year. The growth expectations of the net sales are supported by rising demand for Nordic Aluminium Plc´s products in its major market, i.e. Europe, and also in Russia and the United States of America. In addition, exports to China will grow through our big customers.
The Board of Directors regard it as challenging to maintain the operating profit margin as high as in the previous year.
Nordic Aluminium Plc´s competitiveness and market share will remain stable despite acceleration of inflation and increasing raw material (aluminium and copper) prices.
Risk management
The objective of Nordic Aluminium Plc's risk management is to secure business continuity in all possible situations. The CEO and the Board of Directors are responsible for the risk management.
As part of the risk management the Company’s insurance policies are re-evaluated annually. The factories and commercial activities are full value insured.
Main business risks are related to the uncertainty in the development of the world economy and its influence on market demand and on raw material prices.
The Board’s proposal on the allocation of profits
Net profit of the parent company for the year is EUR 10,703,397.73 and its distributable earnings EUR 31,484,481.53.
The Board proposes that a dividend of EUR 2.10 per share, or a total of EUR 10,157,452.20, be declared and that the remaining balance of EUR 21,327,029.33 be retained in profit and loss account.
Disclaimer
This release contains certain forward-looking statements that reflect the current views of the Company’s Board of Directors. Due to the nature of these statements, they contain risks and uncertainties and are subject to changes in the general economic situation and in the company’s business sector.
Corporate Governance
Nordic Aluminium complies with The Finnish Corporate Governance Code approved by Securities Market Association. Possible deviations have been stated with reasons at appropriate recommendations. The Corporate Governance statement of Nordic Aluminium is in full view at the Internet site of Nordic Aluminium (www.nordicaluminium.fi/Financial info).
Nordic Aluminium’s Corporate Governance Statement from fiscal year 2010 will be published March 3, 2011 as a separate statement, simultaneously with the Financial Statements Release 2010, at the Company’s home pages.
Accounting policies
These presented annual financial statements have been prepared in accordance with IAS34 Interim Financial Reporting. Nordic Aluminium applies the same accounting policies as are applied in 2010 annual financial statements.
The financial information is prepared in accordance with international financial reporting standards IFRS.
While the group has only one primary business segment, "Aluminium products", which is equal to the official consolidated income statement and profit and loss account, the annual financial statements do not include separate information over the group's primary business segment.
The key figures in these annual financial statements are calculated with same accounting principles than in year 2010 annual financial statements. The calculation rules of key figures are presented in the financial statements.
The figures presented in the tables below have been rounded to two decimals, which should be taken into account when reading the sum figures.
The financial statements bulletin has been subject to audit.
CONSOLIDATED INCOME STATEMENT
EUR million
10-12/10 % 10-12/09 % 1-12/10 % 1-12/09 % Net sales 15.14 13.76 68.26 62.24
Other operating income 0.01 0.01 0.08 0.04
Increase(+) or decrease(-)
finished goods and
work in progress 0.80 -0.52 0.33 -1.38
Raw materials and
consumables -7.95 -7.26 -31.62 -30.21
Personnel expenses -0.89 -3.32 -6.02 -12.56
Depreciation and
reduction of value -0.95 -1.16 -4.54 -4.62
Other operating expenses -2.59 -2.43 -10.63 -9.37
Operating profit 3.57 23.6 -0.93 -6.8 15.86 23.2 4.14 6.7
Financial items 0.07 0.05 0.24 0.06
Profit before taxes 3.64 24.0 -0.88 -6.4 16.10 23.6 4.20 6.7
Income taxes -0.89 0.18 -4.18 -1.15
Net profit for the period 2.75 18.2 -0.70 -5.1 11.92 17.5 3.05 4.9
Profit attributable to:
Owners of the parent 2.75 18.2 -0.70 -5.1 11.92 17.5 3.05 4.9
Minority interest 0.00 0.00 0.00 0.00
Other comprehensive income:
Conversion difference 0.03 0.01 0.13 0.01
Total comprehensive income
attributable to:
Owners of the parent 2.78 18.4 -0.69 -5.0 12.05 17.6 3.06 4.9
Minority interest 0.00 0.00 0.00 0.00
Basic and diluted
earnings per share, EUR 0.56 -0.15 2.46 0.63
CONSOLIDATED BALANCE SHEET
EUR million Dec 31, Dec 31,
2010 2009
Non-current assets
Tangible assets 25.31 27.54
Goodwill 2.25 2.25
Intangible assets 0.99 1.48
Tradable financial assets 0.02 0.02
Deferred tax liabilities 0.07 0.09
Total 28.64 31.38
Current assets
Inventories 6.77 6.42
Accounts receivable and other
current assets 9.60 8.81
Advance payments 0.04 0.06
Financial assets 16.51 9.51
Total 32.92 24.79
Cash in hand and at banks 61.56 56.17
EUR million Dec 31, Dec 31,
2010 2009
Shareholders' equity and liabilities
Equity
Shareholders' equity 6.19 6.19
Share premium account 3.45 3.45
Conversion difference -0.14 -0.27
Retained earnings 43.66 38.03
Shareholders' equity:
Owners of the parent 53.17 47.41
Minority interest 0.00 0.00
Total 53.17 47.41
Long-term liabilities
Deferred tax liabilities 3.20 2.86
Provisions 0.20 0.27
Interest bearing liabilities 0.01 0.07
Total 3.41 3.20
Short-term liabilities
Accounts payable 4.96 5.53
Provisions 0.00 0.00
Short-term interest
bearing liabilities 0.02 0.03
Total 4.98 5.56
Total liabilities 8.39 8.76
Total shareholders' equity and
liabilities 61.56 56.17
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 10-12/10 10-12/09 1-12/10 1-12/09
Cash flow from operations
Net profit (loss) 2.75 -0.70 11.92 3.05
Corrections
Depreciation
according to plan 0.95 1.16 4.54 4.62
Financial items -0.07 -0.07 -0.24 -0.06
Taxes 0.88 -0.19 4.18 1.15
Cash flow before change
in net working capital 4.51 0.21 20.40 8.77
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) 3.84 2.53 -1.94 3.03
Inventories
increase(-)/decrease(+) -0.81 0.85 -0.36 1.73
Short-term interest
bearing liabilities
increase(+)/decrease(-) -3.75 -1.30 -0.77 -2.20
Total -0.72 2.07 -3.07 2.56
Cash flow from operations
before interests and taxes 3.66 2.28 17.20 11.33
Paid interests and payments for
other financial expenses -0.04 -0.03 -0.15 -0.16
Received interests and payments
from other financial income 0.11 0.07 0.39 0.22
Paid income taxes 0.75 0.90 -2.53 -0.43
Cash flow from operations(A) 4.49 3.22 14.92 10.95
Cash flow from investing activities
Investments in tangible and
intangible assets -0.90 -0.84 -1.85 -6.84
Income from sales of tangible
and intangible assets 0.00 0.00 0.03 0.00
Repayment of loan receivables 0.00 0.00 0.00 0.00
Cash flow from investments(B) -0.90 -0.84 -1.82 -6.84
Cash flow from financial items
Rights issue 0.00 0.00 0.00 0.00
Withdrawals of
short-term loans -0.07 0.00 0.00 0.00
Amortization of short-
term loans -0.01 -0.02 -0.01 -0.05
Withdrawals of
long-term loans 0.00 0.00 0.00 0.00
Amortization of long-
term loans 0.03 0.00 -0.06 0.01
Dividends paid 0.00 0.00 -6.29 -1.94
Cash flow from financial
items(C) -0.06 -0.02 -6.36 -1.97
Change in cash flow (A+B+C) 3.67 2.37 6.87 2.14
Conversion difference 0.03 0.01 0.13 0.01
Total 3.70 2.38 7.00 2.15
Cash in hand and at banks
in the beginning of period 12.81 7.12 9.51 7.35
Cash in hand and at banks
in the end of period 16.51 9.50 16.51 9.50
Change 3.70 2.38 7.00 2.15
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Share prem. Conversion Retained Total
Equity account difference earnings equity
Equity
1.1.2009 6.19 3.45 -0.28 36.92 46.28
Comprehensive income 0.01 3.05 3.06
Earnings and costs total 3.06
Dividends -1.94 -1.94
Equity
31.12.2009 6.19 3.45 -0.27 38.03 47.41
Equity
1.1.2010 6.19 3.45 -0.27 38.03 47.41
Comprehensive income 0.13 11.92 12.05
Earnings and costs total 12.05
Dividends -6.29 -6.29
Equity
31.12.2010 6.19 3.45 -0.14 43.66 53.17
KEY FIGURES:
10-12/10 10-12/09 1-12/10 1-12/09 1-12/08
Diluted earnings per
share, EUR 0.56 -0.15 2.46 0.63 1.71
1-12/10 1-12/09 1-12/08
Equity ratio, % 86.4 84.4 82.4
Gearing, % -30.9 -19.8 -15.9
Balance sheet total, EUR million 61.56 56.17 56.18
NOTES:
1-12/10 1-12/09 1-12/08
Equity/share, EUR 10.99 9.80 9.56
Number of personnel at 151 125 294
the end of the season
10-12/10 10-12/09 1-12/10 1-12/09 1-12/08
Investments, EUR million 0.88 0.84 1.85 6.84 9.64
Average number of personnel 154 149 156 207 315
Geographical segments:
Net sales
EUR million 10-12/10 10-12/09 1-12/10 1-12/09 1-12/08
Finland 7.75 7.00 34.95 34.13 59.42
Other countries 7.39 11.96 33.31 28.11 40.73
Total 15.14 18.96 68.26 62.24 100.15
Taxes:
EUR million 10-12/10 10-12/09 1-12/10 1-12/09 1-12/08
Current income tax -0.55 -1.29 -3.83 0.04 2.79
Change in deferred income tax-0.34 -0.04 -0.35 1.11 0.16
Total -0.89 1.33 -4.18 1.15 2.95
Inventories:
EUR million Dec 31, Dec 31, Dec 31,
2010 2009 2008
Raw materials and consumables 1.01 0.97 1.26
Work in progress 2.87 2.96 2.58
Finished goods 2.89 2.49 4.30
Total 6.77 6.42 8.15
Interest bearing loans and borrowings:
EUR million Dec 31, Dec 31, Dec 31,
2010 2009 2008
Bank loan 0.00 0.00 0.00
Obligations under finance leases 0.03 0.05 0.14
Total 0.03 0.05 0.14
Contingent liabilities:
EUR million Dec 31, Dec 31, Dec 31,
2010 2009 2008
Consignation liability 0.26 0.33 0.19
Rental and leasing liabilities 4.89 7.44 9.67
Corporate mortgages given 0.00 0.00 0.00
Related party disclosures:
EUR million 10-12/10 10-12/09 1-12/10 1-12/09 1-12/08
Sales 1.56 2.11 9.49 7.50 9.09
Purchases 0.01 0.00 0.03 0.05 0.02
EUR million Dec 31, Dec 31, Dec 31,
2010 2009 2008
Receivables 0.07 0.02 0.01
Accounts payable 0.04 0.00 0.00
Order backlog:
EUR million Dec 31, Dec 31, Dec 31,
2010 2009 2008
7.22 4.02 5.05
The financial statements for the fiscal year 2010 have been audited. The key data have been calculated as instructed by the FSA Standard 5.1.
Nordic Aluminium Plc’s Annual General Meeting will be held on March 31, 2011.
Nordic Aluminium Plc’s next Interim Report for January-March 2011 will be published on April 20, 2011. All releases can be viewed at Nordic Aluminium's homepages www.nordicaluminium.fi.
Kirkkonummi March 3, 2011
NORDIC ALUMINIUM PLC
Board of Directors
Joakim Berndtsson
Managing Director
For further information please contact:
Joakim Berndtsson, Managing Director, Nordic Aluminium,
phone +358 20 7660 206
Distribution:
NASDAQ OMX Helsinki Ltd.
The Main Media
www.nordicaluminium.fi
NOAE0211
