- Net sales for the third quarter EUR 138.6 million (EUR 111.6 million);
operating profit EUR 15.5 million (EUR 19.9 million); earnings per share EUR
0.28 (EUR 0.36)
- Net sales for January-September EUR 406.4 million (EUR 320.6 million);
operating profit EUR 36.7 million (EUR 39.9 million); earnings per share EUR
0.63 (EUR 0.72). The operating profit excluding non-recurring and imputed items
totalled EUR 41.3 million (EUR 38.0 million).
- In the final quarter the level of the result is expected to remain at about
the same level as for the comparative quarter last year. Full-year net sales
will increase by clearly more than 20% but earnings per share will decline.
GROUP NET SALES AND FINANCIAL PERFORMANCE
Third quarter
Lassila & Tikanoja's net sales for the third quarter stood at EUR 138.6 million
(EUR 111.6 million). The net sales increased by 24.1%, 19.7 percentage points of
which came from corporate acquisitions. The operating profit was EUR 15.5
million (EUR 19.9 million), which is 11.2% (17.8%) of net sales. The operating
profit excluding non-recurring and imputed items totalled EUR 17.1 million (EUR
18.0 million).
Organic growth slowed down in Environmental Services and Property and Office
Support Services. Strong growth of Industrial Services continued. The operating
profit was burdened by non-recurring costs amounting to EUR 1.1 million, as well
as imputed changes in the fair value of oil derivatives acquired for hedging the
oil re-refinery business that will be launched in 2008 (EUR -0.5 million). In
the comparison period, non-recurring income was recognised for EUR 1.9 million.
January-September
The nine-month net sales increased by 26.8% and stood at EUR 406.4 million (EUR
320.6 million), 18.4 percentage points of this growth coming from corporate
acquisitions. Earnings per share were EUR 0.63 (EUR 0.72). The operating profit
excluding non-recurring and imputed items totalled EUR 41.3 million (EUR 38.0
million).
Organic growth exceeded market growth, and the company's market position
strengthened. This was primarily attributable to well-functioning product
development, marketing and sales operations, as well as sustained strong
industrial demand. Several new service products were introduced to the market,
and new outsourcing contracts were signed particularly in the forest industry.
The operating profit was burdened by losses in the joint venture Salvor Oy (EUR
1.8 million), as well as imputed changes in the fair values of oil derivatives
(EUR -2.2 million). In the comparison period, non-recurring sales gains were
recognised for EUR 1.9 million.
Financial summary
--------------------------------------------------------------------------------
| | 7-9 | 7-9 | Muutos | 1-9 | 1-9 | Muutos | 1-12 |
| | /2007 | /2006 | % | /2007 | /2006 | % | /2006 |
--------------------------------------------------------------------------------
| Net sales, EUR | 138,6 | 111,6 | 24,1 | 406,4 | 320,6 | 26,8 | 436,0 |
| million | | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 17,1 | 18,0 | -5,0 | 41,3 | 38,0 | 8,7 | 47,3 |
| excl. | | | | | | | |
| non-recurring and | | | | | | | |
| imputed items EUR | | | | | | | |
| million * | | | | | | | |
--------------------------------------------------------------------------------
| Operating profit, | 15,5 | 19,9 | -22,0 | 36,7 | 39,9 | -8,0 | 50,2 |
| EUR million | | | | | | | |
--------------------------------------------------------------------------------
| Operating margin, | 11,2 | 17,8 | | 9,0 | 12,4 | | 11,5 |
| % | | | | | | | |
--------------------------------------------------------------------------------
| Profit before tax, | 14,2 | 19,1 | -25,8 | 33,6 | 38,5 | -12,8 | 48,5 |
| EUR million | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0,28 | 0,36 | -22,2 | 0,63 | 0,72 | -12,5 | 0,90 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
| EVA, EUR million | 8,8 | 14,5 | -39,0 | 18,5 | 24,0 | -23,0 | 28,6 |
--------------------------------------------------------------------------------
* Breakdown of operating profit excluding non-recurring and imputed items in the
condensed financial statements.
NET SALES AND FINANCIAL PERFORMANCE BY DIVISION
Environmental Services
Third quarter
The net sales of Environmental Services (waste management, recycling services,
L&T Biowatti, environmental products) in the third quarter amounted to EUR 68.3
million (EUR 53.0 million), an increase of 29.0%. The operating profit was EUR
9.4 million (EUR 10.0 million)
Organic growth in Finland slowed down due to expired municipal contracts, a
decline in Salvor's net sales and a reduced volume of tyre recycling in relation
to the comparison period. In other respects, new sales continued to be strong. A
substantial contract was signed with regard to producers' liability, expanding
L&T's operations to include recycling of beverage cans and plastic bottles
returned from retailers as of the beginning of 2008. The Bajamaja rental service
expanded and clearly outperformed its financial targets.
The result of recycling services was burdened by the losses of the joint venture
Salvor Oy EUR -0,5 milllion. L&T became the sole owner of Salvor on 1 September
2007. Integration is estimated to generate additional costs approximately EUR
0,7 million during the fourth quarter.
The Joensuu recycling plant was put into production, and the final obstacle for
a substantial extension to the Kerava plant was lifted when the city plan
concerning the plant area became legally valid. Project planning in Kerava has
been initiated. The first stage of capacity expansion is estimated to be in
operation during the latter half of 2009.
L&T Biowatti's net sales and earnings developed favourably during the period.
The delivery capacity was further improved by building more terminals and
increasing stock volumes with the next year in mind.
International business developed as planned in Russia. The profitability of
Latvian operations weakened due to an increased level of costs but a substantial
price increase implemented in the beginning of October will clearly boost
profitability.
Environmental Products' financial performance improved as a result of strong
growth in net sales.
January-September
Environmental Services' net sales for January-September amounted to EUR 206.3
million (EUR 151.8 million), an increase of 35.9%. The operating profit was EUR
26.0 million (EUR 25.1 million)
Organic growth was strong. The profitability of waste management in relation to
the comparison period was weakened by proportional growth in the number of
municipal contracts. The volume of recycling services increased thanks to new
sales and added plant capacity. Losses in the joint venture Salvor Oy increased
substantially due to financial failures in landfill construction and closedown
contracts.
The result of Environmental Products improved clearly on the comparison period.
An extension to capacity was introduced at the Tampere recycling plant. A new
recycling plant at Joensuu was completed in August, followed by extensions to
the Turku and Valkeakoski plants later this year. The recycling plant in Dubna,
Russia is expected to be completed in the beginning of next year. The situation
with environmental permits has developed favourably even though appeals against
environmental permits are slowing down plant and processing area projects to
some extent. The planning of new plants and processing sites will continue in
Finland as well as in Russia.
The acquisition of a majority holding in Biowatti Oy was completed on 1 February
2007. L&T Biowatti is the leading bioenergy company utilising renewable energy
sources in Finland. It engages in the procurement, processing, marketing and
delivery of wood-based fuels for customers. L&T Biowatti's net sales and
earnings developed almost as planned.
Waste management operations in the Moscow region expanded to a new town in May
with the gradual transfer of waste management in the town of Sergiev Posad to
L&T's responsibility. L&T currently has waste management operations at two
locations in Russia, Dubna and Sergiev Posad. The operations are being expanded
into larger cities in a controlled manner.
Property and Office Support Services
Third quarter
The net sales of Property and Office Support Services (property maintenance and
cleaning services) totalled EUR 52.0 million (EUR 41.5 million), an increase of
25.3%. The operating profit was EUR 4.2 million (EUR 4.8 million)
Net sales in Finland increased thanks to acquisitions in the beginning of June
that will be integrated into L&T by the end of the year. Organic growth in
cleaning services slowed down in comparison to the first half of the year,
mainly due to the lack of sales resources. The result of Finnish operations in
both product lines exceeded the targets, and property management also
outperformed the result for the comparison period. Sales of additional services
in the summer season were successful. The profitability of technical systems
operations normalised after a large unprofitable contract, and the order book
grew. During the period, new outsourcing contracts were signed particularly with
the forest industry.
Operations abroad remained unprofitable as expected. Non-recurring items of the
Russian property services re-organisation burdened the earnings for the period
for EUR 0.4 million. The problem with the Russian operations has been high
overheads in proportion to net sales. The situation will change at the turn of
the year when new service contracts signed during the review period will become
effective and net sales will increase.
January-September
The January-September net sales of Property and Office Support Services totalled
EUR 149.3 million (EUR 123.8 million), an increase of 20.6%. The operating
profit was EUR 7.0 million (EUR 7.6 million)
Organic growth continued in Finland, with net sales growing particularly in
property maintenance. Mild weather early in the year did not have much of an
improving effect on performance, because snow ploughing is mostly covered by
fixed-price advance agreements with subcontractors. There were no snow
transports that would have provided for additional invoicing. A large number of
new contracts started in cleaning services, and the costs of initiation hampered
profitability.
Kiinteistöhuolto Jauhiainen Oy and Siivouspalvelu Ta-Bu Oy were acquired in the
beginning of June. Kiinteistöhuolto Jauhiainen Oy is a property maintenance
company operating in the Helsinki region that posted net sales of EUR 6.5
million in 2006. It employs 65 people. Siivouspalvelu Ta-Bu Oy operates in the
Helsinki and Varkaus regions. Its net sales amounted to EUR 5.3 million in 2006,
and it employs around 200 people.
Operations in Russia and Latvia have been reorganised. Sales performance in both
countries has been good and an earnings improvement is expected. Recalculations
and price increases concerning customer sites have also taken place in both
countries.
Three acquisitions have been carried out in Sweden within one year, generating
aggregate net sales of approximately EUR 30 million in 2007. The current focus
in Sweden is on integrating these companies into one and building a sales
organisation.
The division's operations abroad were running at a loss.
Industrial Services
Third quarter
The net sales of Industrial Services (hazardous waste management, industrial
cleaning, damage repair services and wastewater services) amounted to EUR 19.5
million (EUR 18.2 million), an increase of 6.8%. The operating profit was EUR
2.5 million (EUR 3.8 million). The division's operating profit was burdened by
imputed changes in the fair values of oil derivatives amounting to EUR -0.5
million.
Strong demand continued and all product lines increased their net sales, with
the strongest growth in damage repair. The growth was entirely organic. However,
in line with expectations, net sales growth in the division was moderate
compared to the first half of the year because the comparison period last year
was exceptionally strong.
Insufficient resourcing burdened the operational result. The proportion of
in-house staff in relation to demand was too low, which resulted in an
overproportioned increase in the costs of rented labour and presented a
constraint for growth. In-house resources were increased and the use of rental
labour minimised towards the end of the review period. Furthermore, due to a
fire in June, the Tuusula plant for hazardous waste services was out of service
for a longer period than expected, which reduced the degree of hazardous waste
recovery and increased the costs of logistics. The plant was reintroduced into
service in the beginning of October.
The joint venture L&T Recoil has succeeded better than expected with regard to
the procurement of raw material. The company signed a substantial deal with
regard to the procurement of raw material originating in Finland, which means
that a major part of Finnish raw material can be routed to re-refining. The
creation of foreign raw material procurement channels has also progressed faster
than expected. Increasing stocks of raw material will result in increased
storage costs during the construction stage, as well as an increased demand for
working capital, but simultaneously the risks of obtaining raw material and the
price risk will be substantially reduced.
January-September
The January-September net sales of Industrial Services amounted to EUR 54.3
million (EUR 47.9 million), an increase of 13.5%. The operating profit was EUR
5.2 million (EUR 6.9 million). The division's operating profit was burdened by
imputed changes in the fair values of oil derivatives amounting to EUR 2.2
million.
The net sales of all product lines increased, with the strongest growth in
damage repair services and hazardous waste management. Industrial demand did not
even out after the first half of the year but continued to be strong also in the
third quarter. The division's market position has strengthened, which is
reflected in factors such as an increase in the number of major customer
contracts. The earnings improvement in day-to-day operations was affected by
good demand as well as improved productivity. The damage repair service network
expanded to two new locations.
A new alternative liquid fuel (ALF) was introduced to the market to replace
waste oil that is routed to re-refining. Oil derivatives are used to hedge the
profitability of the upcoming re-refinery in situations where the market price
of oil falls substantially. Changes in the fair value of oil derivatives have a
quarterly earnings effect. The re-refinery is estimated to be completed in the
summer 2008.
During the current year, the monthly workload has varied less than previously.
In addition to good demand, this is attributable to the fact that the division
has been successful in establishing extensive client agreements and partnerships
with clients.
FINANCING
At the end of the period, interest-bearing liabilities amounted to EUR 42.6
million more than a year earlier. Net interest-bearing liabilities, totalling
EUR 111.1 million, increased by EUR 40.3 million from the comparison period and
by EUR 58.6 million from the beginning of the year. Net finance costs exceeded
those for the comparison period by EUR 0.6 million in the third quarter, and by
EUR 1.7 million in January-September. In the third quarter, interest expenses
increased by EUR 0.7 million, and in January-September by EUR 1.6 million, as a
result of the growth in interest-bearing liabilities and a rise in the interest
rate level. Due to changes in the fair value of interest rate swaps, EUR 0.1
million was booked in finance costs in July-September, while EUR 0.1 million was
booked as a decrease in finance income in the comparison period. With regard to
changes in the fair value of interest rate swaps in January-September, EUR 0.2
million was booked in finance costs, compared to EUR 0.4 million booked in
finance income for the comparison period. Net finance costs were 0.8% (0.4%) of
net sales and 8.4% (3.3%) of operating profit.
A total of EUR 0.1 million arising from the change in the fair value of an
interest rate swap to which hedge accounting under IAS 39 is applied, was
recognised in equity in January-September.
The equity ratio was 42.6% (50.1%)and the gearing rate 61.7 (41.8). In
January-September, net cash from operating activities amounted to EUR 34.4
million (EUR 42.1 million), and EUR 17.7 million (EUR 11.4 million) were tied up
in the working capital. The high amount of working capital at the end of
September was attributable to increased net sales as well as planned increases
in the inventories of L&T Biowatti, which was acquired in January, and the joint
venture L&T Recoil.
CAPITAL EXPENDITURE
Capital expenditure totalled EUR 77.6 million (EUR 32.1 million) and EUR 47.6
million were spent on company acquisitions. The combined annual net sales of the
acquired companies totalled EUR 90.6 million. In addition, production plants
were built and machinery and equipment were replaced.
In the beginning of June, L&T acquired half of the minority share in L&T
Muoviportti. As a result of this acquisition, a share corresponding to one
hundred percent is booked in the consolidated financial statements. The
operations of Kuljetus Kummunmäki Oy were acquired for waste management on 1
July. Salvor Oy became a Group company in the beginning of September when L&T
acquired the remaining 50 percent of the shares.
The following acquisitions were made in the second quarter:
In early June, Kiinteistöhuolto Jauhiainen Oy and Siivouspalvelu Ta-Bu Oy were
acquired.
Kiinteistöhuolto Jauhiainen Oy specialises in property maintenance services in
the Helsinki region, and its net sales for the year 2006 amounted to EUR 6.5
million. It employs 65 people. Siivouspalvelu Ta-Bu Oy is a cleaning services
company operating both in the Helsinki region and in Varkaus in Central Finland.
Its net sales for the year 2006 amounted to EUR 5.3 million, and it employs some
200 people.
The following acquisitions were made in the first quarter:
In December 2006 an agreement was signed on the acquisition of the majority
(70%) of the shares of Biowatti Oy from the acting management of the company for
Environmental Services. The acquisition became effective on 1 February 2007
after the approval of the competition authority. L&T Biowatti is the leading
Finnish bio energy supplier utilising renewable energy sources, operating in the
procurement, processing, marketing and delivery of wood-based fuels. The main
products are by-products of forest and wood processing industries and logging
chips. The net sales of Biowatti for the year 2006 amounted to EUR 64.2 million.
Bio fuel sales account for two thirds and industrial raw materials sales for one
third of the net sales.
A Swedish cleaning services company Skånsk Allservice AB together with
subsidiaries Hygienutveckling AB and Hygienutvickling A/S operating in Norway
were acquired in January for Property and Office Support Services. The
consolidated net sales of the group totalled EUR 10.8 million in 2006, most of
which came from hygiene services for the food industry. Kiinteistöhuolto Pentti
Nissinen Oy was acquired for property maintenance services.
The remaining portion of the shares of Suomen Keräystuote Oy was purchased for
recycling services within Environmental Services. Lassila & Tikanoja held
already 94.5% of Suomen Keräystuote shares.
PERSONNEL
In January - September, the average number of employees converted into full-time
equivalents was 7,723 (6,863). At the end of the period, the total number of
full-time and part-time employees was 9,226 (8,290). Of them 2,237 (1,610)people
worked outside Finland.
SHARES AND SHARE CAPITAL
Traded volume and price
The volume of trading in Lassila & Tikanoja plc shares on OMX Nordic Exchange in
Helsinki from January through September was 15,076,007, which is 39.0% (23.0%)
of the average number of shares. The value of trading was EUR 362.0 million. The
trading price varied between EUR 20.06 and EUR 27.96. The closing price was EUR
22.63. The market capitalisation was EUR 876.9 million (EUR 602.3 million) at
the end of the period.
Share capital
At the beginning of the year the company's registered share capital amounted to
EUR 19,264,087. Since the beginning of the year, 223,455 shares have been
subscribed for pursuant to 2002C options. After these subscriptions the share
capital is EUR 19,375,814.50, and the number of the shares 38,751,629 shares.
Option plans 2002 and 2005
The subscription periods for 2002A and 2002B share options have ended. 280,000
2002C options have been issued. 274,000 have been granted to key persons of the
company.
Until 20 July 2007, a total of 241,155 shares have been subscribed for pursuant
to the 2002C options. Pursuant to the remaining outstanding 2002C options a
maximum of 32,845 shares can be subscribed for, which is 0.1% of the current
number of shares. The share subscription price is EUR 11.46. The 2002C options
have been listed on the Helsinki Stock Exchange since 2 May 2006. The
subscription period ends on 30 October 2007.
In 2005, 600,000 share options were issued, each entitling its holder to
subscribe for one share of Lassila & Tikanoja plc. Presently, 25 key persons
hold 162,000 2005A options, 35 key persons hold 193,000 2005B options and 41 key
persons hold 230,000 2005C options. L&T Advance Oy, a wholly-owned subsidiary of
Lassila & Tikanoja plc, holds 8,000 2005A options and 7,000 2005B options.
The share subscription price for 2005A options is EUR 14.22, for 2005B options
EUR 16.98 and for 2005C options EUR 26.87. The options issued under the share
option plan 2005 entitle their holders to subscribe for a maximum of 1.5% of the
current number of shares. L&T's Board of Directors has decided to apply for the
listing of options 2005A as of 2 November 2007.
Shareholders
At the end of the financial period, the company had 5,050 (4,615) shareholders.
Nominee-registered holdings accounted for 13.3% (9.4%) of the total number of
shares.
Authorisation for the Board of Directors
The Board of Directors is not authorised to effect any share issues or to launch
a convertible bond or a bond with warrants. Neither is the Board authorised to
decide on the repurchase nor disposal of the company's own shares.
RESOLUTIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 26 March
2007, adopted the financial statements for the financial year 2006 and released
the members of the Board of Directors and the President and CEO from liability.
The AGM resolved that a dividend of EUR 0.55, a total of EUR 21.2 million, as
proposed by the Board of Directors, be paid for the financial year 2006. The
dividend payment date was 5 April 2007.
The Annual General Meeting confirmed the number of the members of the Board of
Directors five (5). The following Board members were re-elected to the Board
until the end of the following AGM: Lasse Kurkilahti, Juhani Lassila, Juhani
Maijala and Soili Suonoja. Eero Hautaniemi was elected as a new member for the
same term.
PricewaterhouseCoopers Oy, Authorised Public Accountants, were elected auditors
with Heikki Lassila, Authorised Public Accountant, acting as Principal Auditor.
The Annual General Meeting approved the Board of Directors' proposal to amend
the Articles of Association in order to align them with the new Finnish
Companies Act. The provisions on minimum and maximum share capital as well as on
minimum and maximum number of shares were also removed.
At its organising meeting following the Annual General Meeting, the Board of
Directors re-elected Juhani Maijala as Chairman of the Board and Juhani Lassila
as Vice Chairman.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 7, CHAPTER 2 OF THE
SECURITIES MARKETS ACT
In a release disclosed on 23 July 2007, the company announced that the full-year
financial result is estimated to be lower than in the previous year, though the
operative result for the final half of the year is expected to remain on the
same level as in the previous year. Previously the company estimated that the
full-year financial performance will improve. Full-year net sales are still
estimated to increase by clearly more than 20%.
On 14 September 2007, the Board of Directors resolved to apply for listing of
2005A share option rights on the OMX Nordic Exchange in Helsinki starting from 2
November 2007.
NEAR-TERM UNCERTAINTIES
The most substantial near-term uncertainty factor is the possibility that the
performance of foreign units within Property and Office Support Services may not
improve on the planned schedule. Changes in the fair values of oil derivatives
associated with L&T Recoil's business depend on the development of world market
prices for oil, and may have a substantial effect on the operating profit of
Industrial Services. Fluctuations in the price of carbon dioxide emission rights
have a substantial effect on the demand for L&T Biowatti's wood-based fuels. In
principle, a high price for emission rights will increase the demand for L&T
Biowatti's products, and vice versa. A planned amendment to Latvian waste
legislation may have adverse effects on the competition situation for waste
management in Riga next year.
PROSPECTS FOR THE REST OF THE YEAR 2007
The prospects for Lassila & Tikanoja's markets remain mostly good. Organic
growth is estimated to strengthen slightly compared to the third quarter of
2007. Full-year net sales are going to increase by clearly more than 20% but
earnings per share will decline. Result for the final quarter are estimated to
be approximately at the same level as last year.
Last year, the earnings for the final quarter were improved by non-recurring
income of EUR 1.0 million. In July, it was estimated that the result of
operations in the second half of 2007 will remain at the previous year's level.
This estimate has not been changed.
The demand for Environmental Services will remain strong in Finland. Increasing
plant capacity and a versatile service offering will probably improve L&T's
market position. During the current year, L&T Biowatti will strengthen the
procurement of raw materials, increase stocks, improve its delivery capacity and
thus prepare for increased demand in 2008. The final-quarter operating profit of
the division is expected to be on a par with last year's level.
The market outlook for Property and Office Support Services in Finland is
moderate as outsourcing continues. Cleaning operations abroad are unprofitable
but the loss is expected to be smaller than a year earlier. The final-quarter
earnings for the entire division are expected to improve.
The market outlook for Industrial Services is positive. Strong demand seems to
continue. The risk of obtaining raw material for the upcoming operations of the
joint venture L&T Recoil can be considered to have disappeared. Comparable
operating profit for the division excluding the effect of changes in the value
of oil derivatives is expected to be on a par with last year's level. Last year,
imputed changes in the value of oil derivatives improved earnings by EUR 0.7
million.
An increase in the capacity of the Turku and Valkeakoski plants will be
completed during the final quarter. The planning and construction of new plants
will continue. Due to completed corporate acquisitions and other investment
decisions made, the full-year capital expenditure will exceed the previous
year's level.
CONDENSED FINANCIAL STATEMENTS 1 JANUARY - 30 SEPTEMBER 2007
ACCOUNTING POLICIES
This interim financial report is in compliance with IAS 34, Interim Financial
Reporting Standard. The same accounting policies as in the annual financial
statements of 31 December 2006 have been applied. These interim financial
statements have been prepared in accordance with the IFRS standards and
interpretations that were effective on 31 March 2007. The new IFRIC
interpretations (7-10) valid as of 1 January 2007 did not affect the
consolidated financial statements. IFRS 7 (effective as of 1 January 2007) does
not affect these interim financial statements, because they are condensed.
Income tax expense is based on the estimated average annual income tax rate,
which would be applicable to expected total annual earnings.
The preparation of financial statements in accordance with IFRS require the
management to make such estimates and assumptions that affect the carrying
amounts at the balance sheet date for the assets and liabilities and the amounts
of revenues and expenses. Judgements are also made in applying the accounting
policies. Actual results may differ from the estimates and assumptions.
The interim financial statements have not been audited.
INCOME STATEMENT
--------------------------------------------------------------------------------
| EUR 1000 | 7-9 | 7-9 | 1-9 | 1-9 | 1-12 |
| | /2007 | /2006 | /2007 | /2006 | /2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 138 569 | 111 648 | 406 441 | 320 642 | 436 004 |
--------------------------------------------------------------------------------
| Cost of goods sold | -116 | -88 673 | -348 719 | -267 742 | -367 968 |
| | 792 | | | | |
--------------------------------------------------------------------------------
| GROSS PROFIT | 21 777 | 22 975 | 57 722 | 52 900 | 68 036 |
--------------------------------------------------------------------------------
| Other operating | 1 044 | 2 172 | 2 672 | 3 029 | 4 702 |
| income | | | | | |
--------------------------------------------------------------------------------
| Selling and marketing | -3 156 | -2 900 | -10 866 | -9 105 | -12 844 |
| costs | | | | | |
--------------------------------------------------------------------------------
| Administrative | -2 797 | -2 010 | -8 686 | -6 215 | -8 660 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Other operating | -1 393 | -385 | -4 166 | -736 | -1 049 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 15 475 | 19 852 | 36 676 | 39 873 | 50 185 |
--------------------------------------------------------------------------------
| Finance income | 258 | 69 | 1 037 | 1 056 | 1 509 |
--------------------------------------------------------------------------------
| Finance costs | -1 552 | -809 | -4 107 | -2 389 | -3 208 |
--------------------------------------------------------------------------------
| Share of profit of | | | | | 18 |
| associates | | | | | |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAX | 14 181 | 19 112 | 33 606 | 38 540 | 48 504 |
--------------------------------------------------------------------------------
| Income tax expense | -3 499 | -4 911 | -9 074 | -10 293 | -13 249 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 10 682 | 14 201 | 24 532 | 28 247 | 35 255 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 10 680 | 14 026 | 24 278 | 27 755 | 34 613 |
| parent | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 2 | 175 | 254 | 492 | 642 |
--------------------------------------------------------------------------------
Earnings per share for profit attributable to the equity holders of the parent:
--------------------------------------------------------------------------------
| Earnings per share, | 0,28 | 0,36 | 0,63 | 0,72 | 0,90 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0,27 | 0,36 | 0,63 | 0,72 | 0,90 |
| EUR - diluted | | | | | |
--------------------------------------------------------------------------------
BALANCE SHEET
--------------------------------------------------------------------------------
| EUR 1000 | 9/2007 | 9/2006 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 120 167 | 103 697 | 106 611 |
--------------------------------------------------------------------------------
| Intangible assets arising from business | 32 324 | 9 597 | 9 893 |
| combinations | | | |
--------------------------------------------------------------------------------
| Other intangible assets | 9 425 | 7 807 | 7 903 |
--------------------------------------------------------------------------------
| Total | 161 916 | 121 101 | 124 407 |
--------------------------------------------------------------------------------
| Property, plant and equipment | | | |
--------------------------------------------------------------------------------
| Land | 3 519 | 3 215 | 3 215 |
--------------------------------------------------------------------------------
| Buildings and constructions | 37 950 | 37 965 | 38 239 |
--------------------------------------------------------------------------------
| Machinery and equipment | 98 168 | 94 473 | 90 397 |
--------------------------------------------------------------------------------
| Other | 275 | 44 | 174 |
--------------------------------------------------------------------------------
| Advance payments and construction in | 6 098 | 1 623 | 2 013 |
| progress | | | |
--------------------------------------------------------------------------------
| Total | 146 010 | 137 320 | 134 038 |
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| Other non-current assets | | | |
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| Investments in associates | 3 | 3 | 3 |
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| Available-for-sale investments | 2 978 | 2 927 | 2 954 |
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| Finance lease receivables | 3 605 | 3 073 | 3 174 |
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| Deferred income tax assets | 596 | 508 | 425 |
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| Other receivables | 252 | 205 | 229 |
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| Total | 7 434 | 6 716 | 6 785 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total non-current assets | 315 360 | 265 137 | 265 230 |
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| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 14 197 | 4 384 | 4 315 |
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| Trade and other receivables | 87 699 | 62 846 | 58 094 |
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| Advance payments | 2 068 | 1 913 | 155 |
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| Available-for-sale investments | 1 996 | 3 993 | 13 955 |
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| Cash and cash equivalents | 8 495 | 4 256 | 10 835 |
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| Total current assets | 114 455 | 77 392 | 87 354 |
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--------------------------------------------------------------------------------
| TOTAL ASSETS | 429 815 | 342 529 | 352 584 |
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| EQUITY AND LIABILITIES | | | |
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| EQUITY | | | |
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| Equity attributable to equity holders | | | |
| of the parent | | | |
--------------------------------------------------------------------------------
| Share capital | 19 376 | 19 256 | 19 264 |
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| Share premium reserve | 50 115 | 47 556 | 47 666 |
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| Revaluation and other reserves | -3 | 119 | 326 |
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| Retained earnings | 86 166 | 72 190 | 72 291 |
--------------------------------------------------------------------------------
| Profit for the period | 24 278 | 27 755 | 34 613 |
--------------------------------------------------------------------------------
| Total | 179 932 | 166 876 | 174 160 |
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| Minority interest | 186 | 2 658 | 2 709 |
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| TOTAL EQUITY | 180 118 | 169 534 | 176 869 |
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--------------------------------------------------------------------------------
| LIABILITIES | | | |
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| Non-current liabilities | | | |
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| Deferred income tax liabilities | 29 504 | 21 132 | 22 350 |
--------------------------------------------------------------------------------
| Pension obligations | 510 | 312 | 352 |
--------------------------------------------------------------------------------
| Provisions | 928 | 733 | 936 |
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| Interest-bearing liabilities | 65 276 | 58 926 | 59 031 |
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| Other liabilities | 488 | 413 | 431 |
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| Total | 96 706 | 81 516 | 83 100 |
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| Current liabilities | | | |
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| Interest-bearing liabilities | 56 335 | 20 125 | 18 231 |
--------------------------------------------------------------------------------
| Trade and other payables | 95 462 | 69 487 | 73 174 |
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| Tax liabilities | 1 044 | 1 611 | 938 |
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| Provisions | 150 | 256 | 272 |
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| Total | 152 991 | 91 479 | 92 615 |
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| TOTAL LIABILITIES | 249 697 | 172 995 | 175 715 |
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--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 429 815 | 342 529 | 352 584 |
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CASH FLOW STATEMENT
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| EUR 1000 | 9/2007 | 9/2006 | 12/2006 |
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--------------------------------------------------------------------------------
| CASH FLOWS FROM OPERATING ACTIVITIES | | | |
--------------------------------------------------------------------------------
| Profit for the period | 24 532 | 28 247 | 35 255 |
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| Adjustments | | | |
--------------------------------------------------------------------------------
| Income tax expense | 9 074 | 10 293 | 13 249 |
--------------------------------------------------------------------------------
| Depreciation and amortisation and | 24 540 | 20 636 | 28 155 |
| impairment | | | |
--------------------------------------------------------------------------------
| Finance income and costs | 3 070 | 1 333 | 1 699 |
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| Other | 1 632 | -3 580 | -2 447 |
--------------------------------------------------------------------------------
| Net cash generated from operating | 62 848 | 56 929 | 75 911 |
| activities before change in working capital | | | |
--------------------------------------------------------------------------------
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| Change in working capital | | | |
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| Change in trade and other receivables | -17 965 | -16 363 | -8 380 |
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| Change in inventories | -6 135 | 394 | 541 |
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| Change in trade and other payables | 6 385 | 4 609 | 9 585 |
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| Change in working capital | -17 715 | -11 360 | 1 746 |
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| Interest paid | -2 424 | -1 356 | -2 925 |
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| Interest received | 747 | 527 | 938 |
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| Income tax paid | -9 056 | -2 610 | -5 776 |
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| NET CASH FROM OPERATING ACTIVITIES | 34 400 | 42 130 | 69 894 |
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| CASH FLOWS FROM INVESTING ACTIVITIES | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries, net of cash | -39 716 | -7 803 | -10 658 |
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| Purchases of property, plant and equipment | -32 157 | -18 784 | -34 878 |
| and intangible assets | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of property, plant and | 3 777 | 3 547 | 13 727 |
| equipment and intangible assets | | | |
--------------------------------------------------------------------------------
| Purchases of available-for-sale investments | -75 | | |
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| Change in other long-term receivables | 26 | 3 | -7 |
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| Proceeds from sale of available-for sale | 942 | 56 | 353 |
| investments | | | |
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| Dividends received | 1 | 4 | 9 |
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| NET CASH USED IN INVESTMENT ACTIVITIES | -67 202 | -22 977 | -31 454 |
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| CASH FLOWS FROM FINANCING ACTIVITIES | | | |
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| Proceeds from share issue | 2 561 | 1 018 | 1 018 |
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| Change in short-term borrowings | 24 488 | -12 631 | -14 525 |
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| Proceeds from long-term borrowings | 30 000 | 15 000 | 15 000 |
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| Repayments of long-term borrowings | -17 092 | -6 289 | -7 041 |
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| Dividends paid | -21 361 | -15 257 | -15 339 |
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| NET CASH GENERATED FROM FINANCING | 18 596 | -18 159 | -20 887 |
| ACTIVITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET CHANGE IN LIQUID ASSETS | -14 206 | 994 | 17 553 |
--------------------------------------------------------------------------------
| Liquid assets at beginning of period | 24 790 | 7 252 | 7 252 |
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| Effect of changes of foreign exchange rates | -92 | 3 | -15 |
--------------------------------------------------------------------------------
| Change in fair value of current | -1 | | |
| available-for-sale investments | | | |
--------------------------------------------------------------------------------
| LIQUID ASSETS AT END OF PERIOD | 10 491 | 8 249 | 24 790 |
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Liquid assets
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| EUR 1000 | 9/2007 | 9/2006 | 12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash | 8 495 | 4 256 | 10 835 |
--------------------------------------------------------------------------------
| Current available-for-sale investments | 1 996 | 3 993 | 13 955 |
--------------------------------------------------------------------------------
| Total | 10 491 | 8 249 | 24 790 |
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STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR 1000 | Share | Share | Re- | Re- | Equity | Mino- | Total |
| | capita | premiu | valua | tained | attrib | rity | equity |
| | l | m | - | earn- | to | inter- | |
| | | reserv | tion | ings | equity | est | |
| | | e | and | | holders | | |
| | | | other | | of the | | |
| | | | re- | | parent | | |
| | | | serve | | | | |
| | | | s | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AT | 19 264 | 47 666 | 326 | 106 904 | 174 160 | 2 709 | 176 869 |
| 1.1.2007 | | | | | | | |
--------------------------------------------------------------------------------
| Hedging | | | 92 | | 92 | | 92 |
| fund, | | | | | | | |
| change in | | | | | | | |
| fair | | | | | | | |
| value | | | | | | | |
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| Current | | | -9 | | -9 | | -9 |
| available | | | | | | | |
| for sale | | | | | | | |
| investments | | | | | | | |
| , | | | | | | | |
| change in | | | | | | | |
| fair value | | | | | | | |
--------------------------------------------------------------------------------
| Currency | | | -412 | | -412 | 1 | -411 |
| translation | | | | | | | |
| differences | | | | | | | |
--------------------------------------------------------------------------------
| Items | | | -329 | | -329 | 1 | -328 |
| recognised | | | | | | | |
| directly | | | | | | | |
| in equity | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | | | | 24 278 | 24 278 | 255 | 24 533 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | -329 | 24 278 | 23 949 | 256 | 24 205 |
| recognised | | | | | | | |
| income and | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Share | | | | | | | |
| option | | | | | | | |
| remuneratio | | | | | | | |
| n | | | | | | | |
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| Subscriptio | 112 | 2 449 | | | 2 561 | | 2 561 |
| ns | | | | | | | |
| pursuant to | | | | | | | |
| 2002 | | | | | | | |
| options | | | | | | | |
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| Remuneratio | | | | 452 | 452 | | 452 |
| n | | | | | | | |
| expense of | | | | | | | |
| share | | | | | | | |
| options | | | | | | | |
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| Dividends | | | | -21