HONKARAKENNE OYJ INTERIM REPORT 8 August 2013 at 4:30 p.m.
HONKARAKENNE OYJ’S INTERIM REPORT, 1 JANUARY – 30 JUNE 2013
SUMMARY
Second-quarter net sales and earnings fell short of the previous year. Net sales for the January-June period saw a year-on-year decrease, but the result before taxes improved.
The order book was substantially higher than in the corresponding period of the previous year.
April - June 2013
- Honkarakenne Group’s consolidated net sales for the second quarter of the year amounted to MEUR 11.5 (MEUR 13.0 in 2012). Net sales were lower than in the previous year, decrease of 11 %.
- Operating result was MEUR -0.5 (MEUR 0.5). Operating result before non-recurring items was MEUR -0.5 (MEUR 0.5).
- Result before taxes was MEUR -0.5 (MEUR 0.1).
- Earnings per share amounted to EUR -0.07 (EUR 0.03).
January - June 2013
- Honkarakenne Group’s consolidated net sales for January-June amounted to MEUR 18.8 (MEUR 20.0), representing a reduction over the same period the previous year of 6 %.
- Operating result was MEUR -2.0 (MEUR -1.8). Operating result before non-recurring items was MEUR -2.0 (MEUR -1.8).
- Result before taxes was MEUR -1.7 (MEUR -2.0).
- Earnings per share amounted to EUR -0.28 (EUR -0.28).
The Group’s order book stood at MEUR 23.3 (MEUR 17.7), up 32 % on the corresponding period of the previous year.
Honkarakenne reiterates its previous outlook: in year 2013 Honkarakenne expects its net sales to be at same level than in previous year and the result before non-recurring items and taxes to be close to zero.
| KEY FIGURES |
4-6/ 2013 |
4-6/ 2012 |
1-6/ 2013 |
1-6/ 2012 |
Change % |
1-12/ 2012 |
||
| Net sales, MEUR | 11.5 | 13.0 | 18.8 | 20.0 | -6 | 46.2 | ||
| Operating profit/loss, MEUR | -0.5 | 0.5 | -2.0 | -1.8 | -4.3 | |||
| Operating profit/loss before non-recurring items, MEUR | -0.5 | 0.5 | -2.0 | -1.8 | -0.8 | |||
| Profit/loss before taxes, MEUR | -0.5 | 0.1 | -1.7 | -2.0 | -4.4 | |||
| Average number of personnel | 231 | 258 | 238 | 259 | 257 | |||
| Personnel in person-years, average | 191 | 207 | 183 | 191 | 198 | |||
| Earnings/share (EPS), EUR | -0.07 | 0.03 | -0.28 | -0.28 | -0.90 | |||
| Equity ratio, % | 41 | 48 | 47 | |||||
| Return on equity, % | -11 | -8 | -28 | |||||
| Shareholders' equity/share, EUR | 2.28 | 3.36 | 2.69 | |||||
| Gearing, % | 49 | 35 | 11 |
Mikko Kilpeläinen, President and CEO of Honkarakenne Oyj, in connection with the interim report:
“The trend in net sales was not at a satisfactory level. The most significant shortfall in performance was seen in Russia & CIS. However, in our view, the main reason behind this is that customers have delayed their orders. We believe that Russia & CIS will post better performance in the latter half of the year. The trend in our order book has been extremely favourable. At the end of the second quarter, the order book was 32 % greater than in the corresponding period of the previous year.
In Finland & Baltics, we focused on the detached house market. We made good inroads into the detached house market in the Greater Helsinki Area and prepared for the Housing Fair in Hyvinkää, which began in July. At the fair, Honkarakenne is showcasing a detached house whose architecture makes it an excellent fit for urban locations.
In Russia & CIS, we deepened our cooperation with our dealer network in order to identify synergy benefits.
We have started to consolidate operations in Karstula and have placed our first machinery orders to boost production efficiency. The major challenge currently facing us in our consolidation process is to ensure that we can fulfil autumn’s good order book while simultaneously transitioning to a one-factory model.
During the second quarter, we bolstered our Executive Group with a new Vice President, Design in order to enhance the management of creative architecture to execute our strategy.
In June, the company’s Board of Directors decided on a long-term incentive plan for key employees. The new incentive plan seeks to combine the objectives of the shareholders and the key employees in order to increase the value of the company and to commit key employees.”
NET SALES
Honkarakenne Group’s net sales for the second quarter of 2013 decreased by 11 per cent to MEUR 11.5 (MEUR 13.0).
Geographical distribution of net sales:
| DEVELOPMENT OF SALES | ||||||
|
Distribution of net sales, % |
1-6/2013 | 1-6/2012 | ||||
| Finland & Baltics | 51 % | 47 % | ||||
| Russia & CIS | 22 % | 27 % | ||||
| Global Markets | 27 % | 26 % | ||||
| Total | 100 % | 100 % | ||||
| Net sales, MEUR | 4-6/2013 | 4-6/2012 | Change % | 1-6/2013 | 1-6/2012 | Change % |
| Finland & Baltics | 5.8 | 6.0 | -3 % | 9.7 | 9.5 | 2 % |
| Russia & CIS | 2.5 | 3.6 | -30 % | 4.4 | 4.5 | -3 % |
| Global Markets | 3.2 | 3.4 | -7 % | 4.7 | 5.9 | -21 % |
| Total | 11.5 | 13.0 | -11 % | 18.8 | 20.0 | -6 % |
Finland & Baltics includes the following countries: Finland, Latvia, Lithuania and Estonia. It also includes process waste sales for recycling.
Russia & CIS includes the following countries: Russia, Azerbaijan, Kazakhstan, Ukraine and other CIS countries.
Global Markets includes countries other than the abovementioned.
The Group’s order book stood at MEUR 23.3 at the end of June. In the corresponding period of the previous year, it was MEUR 17.7.
DEVELOPMENT OF PROFIT AND PROFITABILITY
Operating loss in January - June was MEUR -2.0 (MEUR -1.8) and loss before taxes was MEUR -1.7 (MEUR -2.0).
FINANCING AND INVESTMENTS
The Group’s financial position was satisfactory at the end of report period. The equity ratio stood at 41 % (48 %) and net financial liabilities at MEUR 5.4 (MEUR 5.6). MEUR 2.6 (MEUR 2.7) of the financial liabilities carry a 30 % equity ratio covenant term. Group liquid assets totalled MEUR 2.2 (MEUR 2.1). The Group also has a MEUR 8.0 (MEUR 8.0) bank overdraft facility, MEUR 2.7 of which had been drawn on at the end of the report period (MEUR 0.4). Gearing stood at 49 % (35 %).
The Group’s capital expenditure totalled MEUR 1.2 (MEUR 0.7). The consolidation of operations in Karstula has begun and the Group placed its first machinery orders to boost production efficiency. Capital expenditure mainly comprised prepayments for this machinery. The major challenge currently facing us in our consolidation process is to ensure that we can fulfil autumn’s good order book while simultaneously transitioning to a one-factory model.
MARKET DEVELOPMENT
According to a report commissioned by RTS Oy, Finnish log house production is expected to contract by 4 % this year. The figure includes production for Finland and for overseas export.
PRODUCTS AND MARKETING
In Finland & Baltics, our operations focused on the detached house market and, in the holiday home market, on cabin extensions. The Mainio collection, which was launched for the S Group in March, was well-received, and the first orders came in at the beginning of the second quarter. We prepared for the Housing Fair in Hyvinkää, which began in July, and participated in the OmaKoti Fair, Finland’s largest construction fair. We completed an Orthodox log church in Estonia and started the construction of a similar church in Tahko, Kuopio.
In Russia & CIS, we launched a new house collection for area development. Our Russian dealer won an award for its area development projects in an architectural competition. Net sales in Russia & CIS fell short of our targets in the second quarter, but we believe that the trend in net sales will be better in the latter part of the year.
In Global Markets, we focused on large projects and developed the cost structure of our European operations.
A change that applies to all market areas is that we developed our range of logs with a view to increasing production efficiency.
RESEARCH AND DEVELOPMENT
R&D continued to focus on boosting the efficiency of log production. Outlays were made on the development of construction processes and products that improve their efficiency.
In the January - June period, the Group’s R&D expenditure totalled MEUR 0.2 (MEUR 0.2), representing 0.9 % of net sales (0.9 %). The Group did not capitalise any development expenditure during the report period.
PERSONNEL
During the second quarter, the Group employed a total of 191 (207) people on average in terms of person-years.
The Group had an average of 231 (258) employees during the second quarter, a year-on-year decrease of 27.
In January, the company concluded negotiations under the act on co-operation. As a result, a decision was taken to consolidate production in Karstula and to make 68 employees redundant. It was also agreed that the company’s personnel in Finland can be temporarily laid off for a maximum of 90 days until the end of September 2013.
Petr Morinov, Bachelor of Science, was appointed as the company’s Vice President Sales for Business Area Russia & CIS and a member of the Executive Group on 30 January 2013.
Master of Science (Architecture) SAFA and Master of Laws, Tanja Rytkönen-Romppanen, was appointed Vice President, Design and a member of the Executive Group on 29 April 2013. Her responsibilities include steering design, Group marketing and R&D. She started in her position on 1 June 2013.
LONG-TERM INCENTIVE PLAN
In the second quarter of 2013, the Board of Directors decided on a long-term share-based incentive plan for members of the Executive Group. The performance period of the new plan began on 1 January 2013 and will end on 31 December 2016. The potential reward for the performance period is based on the cumulative earnings per share (EPS) for 2013 - 2016 and on the average return on capital employed (ROCE) for 2013-2016. Any rewards for the performance period 2013 - 2016 will be paid partly as B shares and partly in cash in 2017. The rewards to be paid on the basis of the performance period will correspond to a total maximum of about 340,000 B shares, including the amount to be paid in cash.
HONKARAKENNE OYJ’S 2013 ANNUAL GENERAL MEETING, BOARD OF DIRECTORS, AND AUDITORS
The Annual General Meeting (AGM) of Honkarakenne Oyj was held at the company’s headquarters in Tuusula on 5 April 2013. The AGM confirmed the financial statements of the parent company and Group, and discharged from liability the board members and CEO for 2012. The AGM decided that no dividends be paid for the 2012 financial year. The AGM decided that a repayment of capital totalling EUR 0.08 per share be paid from the Fund for invested unrestricted equity.
Anders Adlercreutz, Lasse Kurkilahti, Mauri Saarelainen, Marko Saarelainen and Teijo Pankko were re-elected to the Board of Directors. The Board’s constituent meeting appointed Lasse Kurkilahti the Chairman of the Board. Mauri Saarelainen will serve as the Deputy Chairman. Board of Directors decided not to set up any committees.
PricewaterhouseCoopers Oy, member of the Finnish Institute of Authorised Public Accountants, was appointed as auditor of the company, with Maria Grönroos, APA, as chief auditor.
HONKARAKENNE OYJ’S OWN SHARES AND AUTHORISATIONS OF THE BOARD OF DIRECTORS
Honkarakenne has not acquired its own shares during the report period. At the end of the report period, the Group held 364,385 of its Honkarakenne B shares with a total purchase price of EUR 1,381,750.23. These shares represent 7.05 % of the company's capital stock and 3.35 % of all votes. The purchase cost has been deducted from shareholders' equity in the consolidated financial statements.
On 5 April 2013, the AGM decided that the Board of Directors will be authorised to acquire a maximum of 400,000 of the company’s own B shares with assets included in the company’s unrestricted equity. In addition, the AGM authorised the Board to decide on a rights issue or bonus issue and on granting special rights to shares referred to in Section 1 of Chapter 10 of the Limited Liability Companies Act in one or more instalments. By virtue of the authorisation, the Board may issue a maximum total of 400,000 new shares and/or relinquish old B shares held by the company, including those shares that can be issued by virtue of special rights. Both authorisations will be valid until 25 March 2014.
CORPORATE GOVERNANCE
Honkarakenne Oyj follows the Limited Liability Companies Act and the Finnish Corporate Governance Code, 1 October 2010, for listed companies issued by the Finnish Securities Market Association. The company's website, www.honka.com, provides more information on the corporate governance systems.
FUTURE OUTLOOK
The market situation remains uncertain. General macroeconomic uncertainty factors, such as the situation in the eurozone, are being reflected in customers’ unwillingness to make decisions on construction projects. Sales figures are still impacted by the longer sales periods and the scarcity of longer-term orders.
At the end of June, the Group’s order book amounted to MEUR 23.3, up 32 % on the corresponding period of the previous year, when it was MEUR 17.7. The order book refers to orders whose delivery date falls within the next 24 months. Some orders may include a financing or building permit condition.
FORTHCOMING RISKS AND UNCERTAINTIES
Although the Group’s order book is better than in the previous year, there is still the risk that the Group will not be able to accelerate its sales in line with its targets.
At this time, sales periods have lengthened, especially in Russia & CIS. There is a risk that deals - particularly those currently being prepared for fulfilment in the last quarter - will be pushed back to 2014.
Some of the orders may also include financing terms. Banks have begun to tighten their lending terms, which might make it more difficult for customers to obtain financing.
The Group has one significant concentration of credit risks in trade receivables, concerning the open trade receivables of one dealer. No provision for doubtful debt has been made for this. A payment plan has been made with this dealer and the amount of the trade receivables has decreased in every quarter. Payments under this plan will continue until 2015.
The valuation of amounts in the balance sheet is based on current assessment by the management. If these assessments are changed, this may result in changes to the Group's result.
REPORTING
This report contains statements that relate to the future, and these statements are based on hypotheses that the company’s management hold currently as well as on the decisions and plans that are currently in place. Although the management believes that the hypotheses relating to the future are well-founded, there is no guarantee that the said hypotheses will prove to be correct.
The interim report has been drafted in accordance with IAS 34. The principles adhered to in preparing the annual financial statements also apply to this interim report. The interim report should be read together with the annual financial statements for 2012. The new revised standards or interpretations effective as of 1 January 2013 have no bearing on the figures presented for the report period. The figures have not been examined by the auditor.
OUTLOOK FOR 2013
Honkarakenne reiterates its previous outlook: in year 2013 Honkarakenne expects its net sales to be at same level than in previous year and the result before non-recurring items and taxes to be close to zero.
HONKARAKENNE OYJ
Board of Directors
Further information:
Mikko Kilpeläinen, President and CEO, tel. +358 50 542 5884, mikko.kilpelainen@honka.com
Mikko Jaskari, CFO, tel. +358 400 535 337, mikko.jaskari@honka.com
This and previous releases are available for viewing on the company’s website at www.honka.com. The next 2013 interim report will be published on 31 October 2013.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
|||||
| unaudited | 4-6 /2013 | 4-6 /2012 |
1-6 /2013 |
1-6 /2012 |
1-12 /2012 |
| MEUR | |||||
| Net sales | 11.5 | 13.0 | 18.8 | 20.0 | 46.2 |
| Other operating income | 0.1 | 0.2 | 0.2 | 0.6 | 0.8 |
| Change in inventories of finished and unfinished goods | 0.6 | 0.0 | 1.8 | 0.9 | -0.2 |
| Materials and services | -6.9 | -7.2 | -12.1 | -12.4 | -25.2 |
| Employee benefit expenses | -2.6 | -2.6 | -5.0 | -5.1 | -12.4 |
| Depreciations and amortisation | -0.8 | -0.7 | -1.4 | -1.5 | -3.0 |
| Impairment | -0.0 | -0.0 | -0.0 | -0.0 | -1.8 |
| Other operating expenses | -2.4 | -2.2 | -4.4 | -4.2 | -8.7 |
| Operating profit/loss | -0.5 | 0.5 | -2.0 | -1.8 | -4.3 |
| Financial income | 0.2 | 0.1 | 0.4 | 0.1 | 0.6 |
| Financial expenses | -0.1 | -0.5 | -0.1 | -0.3 | -0.7 |
| Profit/loss before taxes | -0.5 | 0.1 | -1.7 | -2.0 | -4.4 |
| Income taxes | 0.1 | 0.0 | 0.4 | 0.6 | 0.1 |
| Profit/loss for the period | -0.4 | 0.1 | -1.4 | -1.4 | -4.3 |
| Other comprehensive income: | |||||
| Translation differences | -0.1 | 0.1 | -0.2 | 0.0 | -0.2 |
|
Total comprehensive income for the period |
-0.5 | 0.3 | -1.6 | -1.4 | -4.6 |
| Protif for the period attributable to: | |||||
| Equity holders of the parent | -0.4 | 0.1 | -1.4 | -1.4 | -4.3 |
| Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| -0.4 | 0.1 | -1.4 | -1.4 | -4.3 | |
| Comprehensive income attributable to: | |||||
| Equity holders of the parent | -0.5 | 0.3 | -1.6 | -1.4 | -4.6 |
| Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| -0.5 | 0.3 | -1.6 | -1.4 | -4.6 | |
|
Earnings/share (EPS) calculated on the profit attributable to equity holders of the parent, EUR |
|||||
| Basic | -0.07 | 0.03 | -0.28 | -0.28 | -0.90 |
| Diluted | -0.07 | 0.03 | -0.28 | -0.28 | -0.90 |
Honkarakenne Oyj has two series of shares: A shares and B shares, which have different right to dividend. Profit distribution of 0.20 EUR per share will be paid first for B shares, then 0.20 EUR per share for A shares, followed by equal distribution of remaining profit distribution between all shares.
|
CONSOLIDATED BALANCE SHEET unaudited |
30.6.2013 | 30.6.2012 | 31.12.2012 |
| MEUR | |||
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 14.3 | 17.7 | 14.6 |
| Goodwill | 0.1 | 0.1 | 0.1 |
| Other intangible assets | 0.6 | 0.8 | 0.6 |
| Investments in associated companies | 0.3 | 0.3 | 0.3 |
| Available-for-sale financial assets | 0.1 | 0.1 | 0.1 |
| Receivables | 0.3 | 0.4 | 0.3 |
| Deferred tax assets | 1.6 | 1.6 | 1.1 |
| 17.1 | 21.0 | 17.0 | |
| Current assets | |||
| Inventories | 8.1 | 7.6 | 6.5 |
| Trade and other receivables | 6.1 | 9.4 | 5.9 |
| Cash and cash equivalents | 2.2 | 2.1 | 4.8 |
| 16.5 | 19.1 | 17.2 | |
| Total assets | 33.6 | 40.1 | 34.2 |
| Equity and liabilities | 30.6.2013 | 30.6.2012 | 31.12.2012 |
|
Equity attributable to equity holders of the parent company |
|||
| Share capital | 9.9 | 9.9 | 9.9 |
| Share premium account | 0.5 | 0.5 | 0.5 |
| Reserve fund | 0.0 | 5.3 | 0.0 |
| Fund for invested unrestricted equity | 6.4 | 1.5 | 6.8 |
| Own shares | -1.4 | -1.4 | -1.4 |
| Translation differences | 0.0 | 0.5 | 0.2 |
| Retained earnings | -4.5 | -0.2 | -3.2 |
| 11.0 | 16.1 | 12.9 | |
| Non-controlling interests | 0.2 | 0.2 | 0.2 |
| Total equity | 11.2 | 16.3 | 13.1 |
| Non-current liabilities | |||
| Deferred tax liabilities | 0.1 | 0.0 | 0.0 |
| Provisions | 0.5 | 0.3 | 0.5 |
| Financial liabilities | 5.2 | 5.6 | 3.9 |
| 5.8 | 5.9 | 4.4 | |
| Current liabilities | |||
| Trade and other payables | 13.9 | 15.6 | 12.6 |
| Current tax liabilities | 0.1 | 0.1 | 0.0 |
| Provisions | 0.2 | 0.0 | 1.6 |
| Current financial liabilities | 2.5 | 2.2 | 2.4 |
| 16.6 | 17.9 | 16.7 | |
| Total liabilities | 22.4 | 23.8 | 21.1 |
| Total equity and liabilities | 33.6 | 40.1 | 34.2 |
|
STATEMENT OF CHANGES IN EQUITY abridged unaudited |
|||||||||||
| 1000 eur | Equity attributable to equity holders of the parent | ||||||||||
| a) | b) | c) | d) | e) | f) | g) | Total | h) | Total equity | ||
| Total equity 1.1.2012 | 9898 | 520 | 5316 | 1896 | 462 | -1382 | 1151 | 17859 | 242 | 18101 | |
| Profit/loss for the period | -1358 | -1358 | -1 | -1359 | |||||||
| Translation difference | 4 | 4 | 4 | ||||||||
| Repayment of capital | -384 | -384 | -384 | ||||||||
| Purchase of non-controlling interests | 0 | -35 | -35 | ||||||||
| Total equity 30.6.2012 | 9898 | 520 | 5316 | 1512 | 466 | -1382 | -207 | 16121 | 206 | 16327 | |
| a) | b) | c) | d) | e) | f) | g) | Total | h) | Total equity | ||
| Total equity 1.1.2013 | 9898 | 520 | 0 | 6828 | 224 | -1382 | -3178 | 12909 | 209 | 13117 | |
| Profit/loss for the period | -1356 | -1356 | 3 | -1353 | |||||||
| Translation difference | -208 | -208 | -208 | ||||||||
| Repayment of capital | -384 | -384 | -384 | ||||||||
| Total equity 30.6.2013 | 9898 | 520 | 0 | 6444 | 16 | -1382 | -4536 | 10960 | 213 | 11174 | |
a) Share capital
b) Share premium account
c) Reserve fund
d) Fund for invested unrestricted equity
e) Translation difference
f) Own shares
g) Retained earnings
h) Non-controlling interests
|
CONSOLIDATED STATEMENT OF CASH FLOWS abridged unaudited |
1.1.- 30.6.2013 |
1.1.- 30.6.2012 |
1.1.- 31.12.2012 |
| MEUR | |||
| Cash flow from operating activities | -2.5 | 1.5 | 5.5 |
| Cash flow from investing activities, net | -1.1 | -0.3 | -0.1 |
| Total cash flows from financing activities: | 1.0 | -1.6 | -3.1 |
| Repayment of capital | -0.4 | -0.4 | -0.4 |
| Proceeds from borrowings | 2.7 | 2.1 | 2.1 |
| Repayment of borrowings | -1.2 | -3.2 | -4.6 |
| Other financial items | -0.1 | -0.1 | -0.2 |
| Change in cash and cash equivalents | -2.6 | -0.5 | 2.2 |
| Cash and cash equivalents at the beginning of period | 4.8 | 2.6 | 2.6 |
| Cash and cash equivalents at the close of period | 2.2 | 2.1 | 4.8 |
NOTES TO THE REPORT
Accounting principles
The interim report has been drafted in accordance with IAS 34. The principles adhered to in preparing the annual financial statements also apply to this interim report. The interim report should be read together with the annual financial statements for 2012. The new revised standards or interpretations effective as of 1 January 2013 have no bearing on the figures presented for the report period. The figures have not been examined by the auditor.
Honka Management Oy, which is owned by the senior management of Honkarakenne Oyj and was established in 2010, is included in the consolidated financial statements due to the terms and conditions of the shareholder agreement concluded between it and Honkarakenne Oyj.
Honkarakenne has three geographical operating segments that have been combined into one segment for reporting purposes. Geographically, sales are divided as follows: Finland & Baltics, Russia & CIS and Global Markets. The internal reporting of the management is in line with IFRS reporting. For this reason, separate reconciliations are not presented.
| PROPERTY, PLANT AND EQUIPMENT | |
| unaudited | |
| MEUR | Property, plant and equipment |
| Cost 1.1.2013 | 63.9 |
| Translation differences (+/-) | -0.0 |
| Increase | 1.1 |
| Disposals | -0.7 |
| Cost 30.6.2013 | 64.3 |
| Accumulated depreciation 1.1.2013 | -49.4 |
| Translation differences (+/-) | 0.0 |
| Accumulated depreciation of disposals and reclassifications | 0.7 |
| Depreciation for the period | -1.3 |
| Accumulated depreciation 30.6.2013 | -50.0 |
| Carrying amount 1.1.2013 | 14.6 |
| Carrying amount 30.6.2013 | 14.3 |
Own shares
Honkarakenne Oyj has not acquired its own shares during the report period. At the end of the report period, the Group held 364,385 of its Honkarakenne B shares with a total purchase price of EUR 1,381,750.23. These shares represent 7.05 % of the company's capital stock and 3.35 % of all votes.
|
Contingent liabilities |
|||
| unaudited | 30.6.2013 | 30.6.2012 | 31.12.2012 |
| MEUR | |||
| For own loans | |||
| - Mortgages | 25.7 | 23.7 | 25.7 |
| - Other quarantees | 2.4 | 1.5 | 3.4 |
| For others | |||
| - Guarantees | 0.0 | 0.2 | 0.0 |
| Leasing liabilities | 0.3 | 0.3 | 0.2 |
| Derivative contracts | 0.4 | 0.4 | 0.3 |
| Nominal values of forward exchange contracts | 1.2 | 1.8 | 2.9 |
Events with related parties
The Group’s related parties consist of subsidiaries, associated companies as well as key management and the companies in which they exercise influence. Key management comprises the Board of Directors, the CEO and the company’s Executive Group. The pricing of goods and services in related party transactions is based on market prices.
During the report period, ordinary business transactions with related parties were made as follows: the sales to the related parties were EUR 162 thousand and the purchases from the related parties were EUR 249 thousand. In 2010 and 2011, Honkarakenne Oyj granted long-term loans totalling MEUR 0.9 to Honka Management Oy, which is owned by the company’s senior management.
| KEY INDICATORS | ||||
| 1-6 | 1-6 | 1-12 | ||
| unaudited | 2013 | 2012 | 2012 | |
| Earnings/share (EPS) | eur | -0.28 | -0.28 | -0.90 |
| Return on equity | % | -11 | -8 | -28 |
| Equity ratio | % | 41 | 48 | 47 |
| Shareholders equity/share | eur | 2.28 | 3.36 | 2.69 |
| Net debt | MEUR | 5.4 | 5.6 | 1.5 |
| Gearing | % | 49 | 35 | 11 |
| Gross investments | MEUR | 1.2 | 0.7 | 0.9 |
| % of net sales | 6 | 3 | 2 | |
| Order book | MEUR | 23.3 | 17.7 | 15.9 |
| Average number of personnel | Staff | 116 | 121 | 123 |
| Workers | 121 | 138 | 134 | |
| Total | 238 | 259 | 257 | |
| Personnel in person-years, average | Staff | 102 | 115 | 117 |
| Workers | 80 | 76 | 81 | |
| Total | 183 | 191 | 198 | |
| Adjusted number of shares (’000) | At year-end | 4805 | 4805 | 4805 |
| Average during period | 4805 | 4805 | 4805 |
|
Calculation of key indicators |
||
| Profit for the period attributable to equity holders of parent | ||
| Earnings/share (EPS) | ------------------------------------------------ | |
| Average number of outstanding shares | ||
| Result before taxes – taxes | ||
| Return on equity % | ------------------------------------------------ | x 100 |
| Total equity, average | ||
| Total equity | ||
| Equity ratio, % | ------------------------------------------------ | x 100 |
| Balance sheet total - advances received | ||
| Net financial liabilities | Financial liabilities – cash and cash equivalents | |
| Financial liabilities – cash and cash equivalents | ||
| Gearing, % | ----------------------------------------------- | x 100 |
| Total equity | ||
| Shareholders’ equity | ||
| Shareholders equity/share | ------------------------------------------------ | |
| Number of shares outstanding at the close of period | ||