LASSILA & TIKANOJA PLC INTERIM REPORT 5 May 2009 8.00 am
LASSILA & TIKANOJA PLC INTERIM REPORT 1 JANUARY - 31 MARCH 2009
- Net sales EUR 146.4 million (EUR 147.3 million)
- Operating profit EUR 10.0 million (EUR 22.8 million)
- Operating profit excluding non-recurring and imputed items EUR 11.2 million
(EUR 8.8 million)
- Earnings per share EUR 0.16 (EUR 0.51)
- Full-year net sales and operating profit excluding non-recurring and imputed
items are expected to reach the previous year's level.
GROUP NET SALES AND FINANCIAL PERFORMANCE
Lassila & Tikanoja's net sales for the first quarter totalled EUR 146.4 million
(EUR 147.3 million). Operating profit amounted to EUR 10.0 million (EUR 22.8
million), representing 6.8% (15.5%) of net sales. Operating profit excluding
non-recurring and imputed items was EUR 11.2 million (EUR 8.8 million). Earnings
per share were EUR 0.16 (EUR 0.51). The capital gain of EUR 14.3 million from
the sale of Ekokem shares boosted the operating profit and earnings in the
comparison period.
Net sales and operating profit improved in Property and Office Support Services
and in Industrial Services while net sales and profitability of Environmental
Services declined from the comparison period. The sustained low prices of
secondary raw materials and low demand continued to erode the financial
performance of recycling services, and L&T Biowatti's performance was burdened
by the lower operating rates in the forest industry and weaker demand for
wood-based biofuels.
A non-recurring restructuring expense of EUR 1.2 million arising from production
efficiency enhancement measures to adapt operation and costs to the current
market situation, was recorded for the first quarter.
FINANCIAL SUMMARY
--------------------------------------------------------------------------------
| | 1-3/2009 | 1-3/2008 | Change % | 1-12/2008 |
--------------------------------------------------------------------------------
| Net sales, EUR million | 146.4 | 147.3 | -0.6 | 606.0 |
--------------------------------------------------------------------------------
| Operating profit excluding | 11.2 | 8.8 | 27.3 | 45.0 |
| non-recurring and imputed | | | | |
| items, EUR million * | | | | |
--------------------------------------------------------------------------------
| Operating profit, EUR | 10.0 | 22.8 | -56.3 | 55.5 |
| million | | | | |
--------------------------------------------------------------------------------
| Operating margin, % | 6.8 | 15.5 | | 9.2 |
--------------------------------------------------------------------------------
| Profit before tax, EUR | 8.3 | 21.7 | -61.8 | 50.7 |
| million | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.16 | 0.51 | -68.6 | 1.03 |
--------------------------------------------------------------------------------
| EVA, EUR million | 2.0 | 15.7 | -87.3 | 25.0 |
--------------------------------------------------------------------------------
* Breakdown of operating profit excluding non-recurring and imputed items is
presented at the end of the explanatory statement
NET SALES AND FINANCIAL PERFORMANCE BY DIVISION
Environmental Services
The net sales of Environmental Services (waste management, recycling services,
L&T Biowatti, environmental products) in the first quarter amounted to EUR 72.3
million (EUR 75.5 million), a decline of 4.2%. The operating profit was EUR 6.8
million (EUR 8.4 million). Operating profit excluding non-recurring and imputed
items was EUR 7.7 million (EUR 8.4 million).
Net sales and profitability of waste management remained at the same level as
last year.
The net sales and profitability of recycling services declined, primarily due to
shrinking volumes of recyclable waste materials. Demand for recovered fuels and
recycled wood chips picked up in the first quarter but low market prices and
weak demand for secondary raw materials (plastics, fibres, metals) persisted.
Construction of added capacity at the Kerava recycling plant continued. The new
recycled timber unit will be completed in the second quarter. The investment
programme for further construction has been changed: the next stage will be a
combined plant comprising a combined recycling plant for construction and trade
and industry waste, which will be completed in 2010. Consequently, the
investment will be smaller than originally estimated.
L&T Biowatti failed to reach its targets due to lower operating rates in the
forest industry and lower harvesting volumes. Demand for biofuels was lower than
expected in the first quarter. This decline in demand can be attributed to low
electricity production volumes and the low price of emission rights, combined
with the falling prices of coal and oil. The forestry service organisation set
up to boost energy wood procurement became fully operative in January.
Measures to enhance production efficiency continued in the international
operations of Environmental Services, and profitability remained good.
Property and Office Support Services
The net sales of Property and Office Support Services (property maintenance and
cleaning services) grew by 3.2% to EUR 61.1 million (EUR 59.3 million) in the
first quarter. The operating profit was EUR 3.4 million (EUR 1.6 million), and
operating profit excluding non-recurring and imputed items was EUR 3.6 million
(EUR 1.6 million).
In Finland, net sales grew, particularly in property maintenance, and additional
services sold well regardless of the economic turbulence. In the damage repair
services business, which was transferred from the Industrial Services division,
sizeable projects arose in this quarter. The division's performance in Finland
improved, thanks to production efficiency improvement measures and fixed cost
cuts.
Net sales from Sweden and Russia declined primarily as a result of the weakening
of the Swedish krona and the Russian rouble, while net sales from Latvia grew.
The Russian and Latvian operations posted a positive result. Although the result
from the Swedish operations improved, operations continued to make a loss. In
Sweden, the reorganisation programme designed to improve profitability will
continue. The Russian cleaning services were awarded a certificate for
compliance with the ISO 9001 quality standards at the end of the quarter.
Industrial Services
The net sales of Industrial Services (hazardous waste management, industrial
solutions, wastewater services, L&T Recoil) were up by 8.5% to EUR 14.9 million
in the first quarter (EUR 13.7 million). Operating profit was EUR 0.3 million
(EUR -0.9 million), and operating profit excluding non-recurring and imputed
items was EUR 0.4 million (EUR -0.6 million).
The division's net sales grew and profitability improved thanks to major
project-type assignments in the first quarter. Moreover, hazardous waste volumes
dropped sharply during the first quarter. Operating rate fluctuations in the
industry presented a major challenge to production adjustment efforts.
Demand for wastewater services in the first quarter was weaker than anticipated
but returned to normal towards the end of the period. New industrial
partnerships were launched in industrial solutions.
Costs associated with the storage of raw materials for the L&T Recoil
re-refinery and the start-up of operations burdened the financial performance.
The ramp-up of the production will begin in May.
FINANCING
At the end of the period, interest-bearing liabilities amounted to EUR 70.9
million more than a year earlier. Net interest-bearing liabilities, totalling
EUR 116.2 million, increased by EUR 28.7 million from the comparison period and
decreased by EUR 4.3 million from the beginning of the year.
Net finance costs amounted to EUR 1.7 million (EUR 1.1 million). They increased
as a result of the growth in the interest-bearing liabilities. An expense of EUR
0.1 million (EUR 0.1 million) arising from changes in the fair values of
interest rate swaps was recognised in the finance costs. Net finance costs were
1.2% (0.7%) of net sales and 16.9% (4.8%) of operating profit.
A total of EUR 0.4 million arising from the interest rate swaps to which hedge
accounting under IAS 39 is applied, was recognised as a decrease in equity.
The equity ratio was 37.1% (48.8%) and the gearing rate 61.4 (42.1). In order to
strengthen liquidity, the company increased its liquid assets by drawing new
loans towards the end of the year 2008 and in the beginning of 2009. At the end
of the period the amount of liquid assets exceeded that of the comparison period
by EUR 42.2 million. This year's Annual General Meeting was held already in
March. At the end of the period dividends, totalling EUR 21.3 million, were
therefore included in non-interest-bearing liabilities this year while they were
included in equity in the comparison period. In the first quarter two long-term
loans were drawn, a pension institution loan of EUR 14 million and a loan of EUR
10 million granted by the Nordic Investment Bank for the extension of the Kerava
recycling plant.
Cash flows from operating activities amounted to EUR 15.7 million (EUR 11.6
million), and EUR 2.6 million were tied up in the working capital (EUR 1.6
million).
DIVIDEND
The Annual General Meeting held on 24 March 2009 resolved on a dividend of EUR
0.55 per share. The dividend, totalling EUR 21.3 million, was paid to the
shareholders on 3 April 2009.
CAPITAL EXPENDITURE
Capital expenditure totalled EUR 12.3 million (EUR 14.1 million). The largest
construction projects were L&T Recoil re-refinery and the extension of the
Kerava recycling plant.
PERSONNEL
In January-March, the average number of employees converted into full-time
equivalents was 8,069 (7,936). At the end of the period, the total number of
full-time and part-time employees was 9,112 (9,532). Of them 7,001 (7,077)
people worked in Finland and 2,111 (2,455) people in other countries.
SHARE AND SHARE CAPITAL
Traded volume and price
The volume of trading in Lassila & Tikanoja plc shares on NASDAQ OMX Helsinki
from January through March was 1,424,322, which is 3.7% (12.1%) of the average
number of shares. The value of trading was EUR 15.3 million (EUR 88.9 million).
The trading price varied between EUR 9.40 and EUR 12.09. The closing price was
EUR 9.42. The market capitalisation was EUR 365.5 (EUR 698.3 million) at the end
of the period.
Share capital
The company's registered share capital amounts to EUR 19,399,437, and the number
of the shares to 38,798,874 shares.
Share option scheme 2005
In 2005, 600,000 share option rights were issued, each entitling its holder to
subscribe for one share of Lassila & Tikanoja plc. In the beginning of the
exercise period, 25 key persons held 162,000 2005A options and 32 key persons
held 176,000 2005B options. 38 key persons hold 203,000 2005C options. L&T
Advance Oy, a wholly-owned subsidiary of Lassila & Tikanoja plc, holds 8,000
2005A options, 24,000 2005B options and 27,000 2005C options and these options
will not be exercised.
The exercise price for the 2005A options is EUR 14.22, for 2005B options EUR
16.98 and for 2005C options EUR 26.87. The exercise period for 2005A options is
2 November 2007 to 29 May 2009, for 2005B options 3 November 2008 to 31 May
2010, and for 2005C options 2 November 2009 to 31 May 2011.
The outstanding options issued under the share option plan 2005 entitle their
holders to subscribe for a maximum of 1.4% of the current number of shares. The
2005A options have been listed on NASDAQ OMX Helsinki since 2 November 2007 and
2005B options since 2 January 2009.
Share option scheme 2008
In 2008, 230,000 share option rights were issued, each entitling its holder to
subscribe for one share of Lassila & Tikanoja plc. 39 key persons hold 202,000
options and L&T Advance Oy 28,000 options.
The exercise price for the 2008 options is EUR 16.27. The exercise price of the
share options shall, as per the dividend record date, be reduced by the amount
of dividend which exceeds 70% of the profit per share for the financial period
to which the dividend applies. However, only such dividends whose distribution
has been agreed upon after the option pricing period and which have been
distributed prior to the share subscription are deducted from the subscription
price. The exercise price shall, however, always amount to at least EUR 0.01.
The exercise period will be from 1 November 2010 to 31 May 2012.
As a result of
the exercise of the outstanding 2008 share options, the number of shares may
increase by a maximum of 202,000 new shares, which is 0.5% of the current number
of shares.
Share-based incentive programme
Lassila & Tikanoja plc's Board of Directors decided at a meeting held on 24
March 2009 on a share-based incentive programme. The programme includes three
earnings periods one year each, of which the first one began on 1 January 2009
and the last one ends on 31 December 2011. The basis for the determination of
the reward is decided annually. Potential rewards to be paid for the year 2009
will be based on the EVA result of Lassila & Tikanoja group. Potential rewards
will be paid during the year following each earnings period partly as shares and
partly in cash. The proportion paid in cash will cover taxes arising from the
reward. In the starting phase the programme covers 28 persons.
A maximum total of 180,000 Lassila & Tikanoja plc shares may be paid out on the
basis of the programme. The shares will be obtained in public trading, and
therefore the incentive programme will have no diluting effect on the share
value.
Shareholders
At the end of the financial period, the company had 6,476 (5,263) shareholders.
Nominee-registered holdings accounted for 8.7% (11.3%) of the total number of
shares.
Notifications on major holdings
On 30 April 2009, Ilmarinen Mutual Pension Insurance Company announced that its
holding of the shares and votes in Lassila & Tikanoja plc had fallen to 7.6%.
Authorisation for the Board of Directors
The Annual General Meeting held on 24 March 2009 authorised Lassila & Tikanoja
plc's Board of Directors to make decisions on the repurchase of the company's
own shares using the company's unrestricted equity and on the issuance of these
shares. Shares will be repurchased otherwise than in proportion to the existing
shareholdings of the company's shareholders in public trading on the NASDAQ OMX
Helsinki Ltd at the market price quoted at the time of the repurchase.
The Board of Directors is authorised to repurchase and transfer a maximum of
500,000 company shares, which is 1.3% of the total number of shares. The
repurchase authorisation will be effective for 18 months and the share issue
authorisation for four years. The Board has not exercised these authorisations
during the review period.
The Board of Directors is not authorised to launch a convertible bond or share
option rights.
RESOLUTIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting of Lassila & Tikanoja plc, which was held on 24 March
2009, adopted the financial statements for the financial year 2008 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 21.3 million, as
proposed by the Board of Directors, be paid for the financial year 2008. The
dividend payment date was resolved to be 3 April 2009.
The Annual General Meeting confirmed the number of the members of the Board of
Directors six. The following Board members were re-elected to the Board until
the end of the following AGM: Heikki Bergholm, Eero Hautaniemi, Matti Kavetvuo,
Juhani Lassila and Juhani Maijala. Hille Korhonen 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's proposals to amend article 11 of
the Articles of Association and to authorise the Board of Directors to
repurchase the company's own shares and to issue shares.
The resolutions of the Annual General Meeting were announced in more detail in a
stock exchange release on 25 March 2009.
BOARD OF DIRECTORS
The members of the Board of Directors are Heikki Bergholm, Eero Hautaniemi,
Matti Kavetvuo, Hille Korhonen, Juhani Lassila and Juhani Maijala. In its
constitutive meeting the Board re-elected Juhani Maijala as Chairman of the
Board and Juhani Lassila as Vice Chairman. The Board decided to establish an
audit committee. From among its members, the Board elected Juhani Lassila as
chairman and Eero Hautaniemi and Hille Korhonen as members of the audit
committee.
SUMMARY OF STOCK EXCHANGE RELEASES PURSUANT TO ARTICLE 7, CHAPTER 2 OF THE
SECURITIES MARKETS ACT
In a release published on 25 March 2009, the company announced that Lassila &
Tikanoja plc's Board of Directors decided at a meeting held on 24 March 2009 on
a share-based incentive programme. The programme includes three earnings periods
one year each, of which the first one began on 1 January 2009 and the last one
ends on 31 December 2011. The basis for the determination of the reward is
decided annually. Potential rewards to be paid for the year 2009 will be based
on the EVA result of Lassila & Tikanoja group. Potential rewards will be paid
during the year following each earnings period partly as shares and partly in
cash. The proportion paid in cash will cover taxes arising from the reward. In
the starting phase the programme covers 28 persons.
A maximum total of 180,000 Lassila & Tikanoja plc shares may be paid out on the
basis of the programme. The shares will be obtained in public trading, and
therefore the incentive programme will have no diluting effect on the share
value.
NEAR-TERM UNCERTAINTIES
A deeper and prolonged economic recession may reduce transport and recycling
volumes and the number of commissioned assignments. Indeed, the slowdown in the
construction business has already translated into lower construction waste
volumes. If the market price instability of secondary raw materials persists and
demand remains low, this will have a negative effect on the profitability of
recycling services. Rapid fluctuations in demand for services purchased by the
industry may hamper the planning and implementation of work.
Delays in the ramp-up of L&T Recoil plant may affect the Industrial Services
division's operating profit. Operating profit will also decline if the price of
crude oil stays at the current low level, because the price of base oil follows
crude oil price developments with a delay.
If the operating rate in the forest industry continues to be low, this may
hamper L&T Biowatti's procurement of by-products for raw material. The
availability of raw material required for pellet production has deteriorated and
prices are high. At the moment, imported pellets are considerably cheaper than
pellets produced in Finland.
The uncertain outlook of the Latvian economy and more intense competition may
prove detrimental to the profitability of Riga's waste management business.
PROSPECTS FOR THE REST OF THE YEAR
Although the markets in which L&T primarily operates are low-cyclical, the
economic recession is impacting on demand for L&T's services.
Waste material transport and recycling volumes are expected to decline further
towards the year-end. Meanwhile, secondary raw materials are expected to be
affected by weak demand and low market prices over the next few months.
Operating rates in the forest industry continue to be low, which will affect L&T
Biowatti's raw material procurement. At the same time, low fossil fuel prices
will restrict wood-based biofuel demand and pricing.
Property and Office Support Services will continue to experience fierce
competition and increased competitive bidding. The economic uncertainty will
hold back new and additional sales, and the number of services will be reduced
when contracts are renewed.
The Industrial Services division's market conditions are expected to remain
challenging throughout the year. However, as in the previous years, demand is
expected to pick up after the first quarter. Lower operating rates in the
industry will reduce hazardous waste volumes and rapid fluctuations in demand
will make the identification of the correct production adjustment measures
difficult.
Full-year net sales and operating profit excluding non-recurring and imputed
items are expected to reach the previous year's level. This requires success in
the adaptation of operations and costs as well as the start-up of the operation
of L&T Recoil according to plan.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING AND IMPUTED ITEMS
--------------------------------------------------------------------------------
| EUR million | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Operating profit | 10.0 | 22.8 | 55.5 |
--------------------------------------------------------------------------------
| Non-recurring items | | | |
--------------------------------------------------------------------------------
| Impairment loss on goodwill of | | | 3.1 |
| business in Sweden | | | |
--------------------------------------------------------------------------------
| Discontinuation of soil washing | | | 2.6 |
| services | | | |
--------------------------------------------------------------------------------
| Loss on sale of business in Norway | | | 1.1 |
--------------------------------------------------------------------------------
| Gain on sale of the shares of Ekokem | | -14.3 | -14.3 |
--------------------------------------------------------------------------------
| Oil derivatives | | 0.3 | -3.0 |
--------------------------------------------------------------------------------
| Restructuring expenses | 1.2 | | |
--------------------------------------------------------------------------------
| Operating profit excluding | 11.2 | 8.8 | 45.0 |
| non-recurring and imputed items | | | |
--------------------------------------------------------------------------------
CONDENSED FINANCIAL STATEMENTS 1 JANUARY-31 MARCH 2009
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 for the year 2008 have been applied. These interim financial
statements have been prepared in accordance with the IFRS standards and
interpretations as adopted by the EU.
The following new standards and amendments to standards that have become
effective in 2009 have had an impact on the financial statements in this interim
financial report:
IFRS 8 Operating Segments
The IFRS 8 Operating Segments standard has replaced the Segment Reporting
standard (IAS 14). IFRS 8 requires that segment information is prepared under
the management approach. Segment information shall be presented on the same
basis as that used for internal reporting provided to the management and using
the accounting policies applied in that reporting. The adoption of IFRS 8 does
not impose any significant changes on L&T's segment reporting as the previous
segment reporting was based on the internal reporting structure. The internal
reporting is consistent with the IFRS-standards. The reportable segments have
remained unchanged, but a change has been made between Property and Office
Support Services and Industrial Services, because damage repair services were
transferred to Property and Office Support Services. To the rest of the segment
information, to the basis of segment division and to the measurement of profit
or loss the same principles have been applied as in the annual financial
statements. As previously, operating profit is used as a measure of a segment's
profit or loss. However, unlike in previous interim reports, the segments' net
sales are divided into external net sales and inter-division net sales and a
reconciliation of operating profit to the consolidated profit before tax is
presented. The adoption of the standard will result in changes in the notes to
the financial statements for the financial year as well.
IAS 1 (Amendment) Presentation of Financial Statements
The revised standard has changed the presentation of the income statement and
the statement of changes in equity. According to the revised standard, only
owner changes in equity are presented in the statement of changes in equity.
Changes in equity during the period resulting from transactions and other events
other than those changes resulting from transactions with owners in their
capacity as owners, are presented in a statement of comprehensive income. The
income statement may be presented in a single statement of comprehensive income
or in two statements. L&T has adopted two separate statements: a separate income
statement displaying components of profit or loss and a second statement
beginning with profit or loss and displaying components of other comprehensive
income. The titles of two statements have changed: the balance sheet is now
referred to as ‘statement of financial position' and the cash flow statement as
‘statement of cash flows'.
Income tax expense is based on the estimated average annual income tax rate.
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.
CONSOLIDATED INCOME STATEMENT
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| EUR 1000 | 1-3/2009 | 1-3/2008 | Change % | 1-12/2008 |
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| | | | | |
--------------------------------------------------------------------------------
| Net sales | 146 432 | 147 331 | -0.6 | 605 996 |
--------------------------------------------------------------------------------
| Cost of goods sold | -129 230 | -131 802 | -2.0 | -533 681 |
--------------------------------------------------------------------------------
| Gross profit | 17 202 | 15 529 | 10.8 | 72 315 |
--------------------------------------------------------------------------------
| Other operating income | 351 | 14 926 | -97.6 | 21 708 |
--------------------------------------------------------------------------------
| Selling and marketing costs | -4 069 | -3 891 | 4.6 | -16 228 |
--------------------------------------------------------------------------------
| Administrative expenses | -2 681 | -3 075 | -12.8 | -12 105 |
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| Other operating expenses | -818 | -654 | 25.1 | -7 102 |
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| Goodwill impairment | | | | -3 090 |
--------------------------------------------------------------------------------
| Operating profit | 9 985 | 22 835 | -56.3 | 55 498 |
--------------------------------------------------------------------------------
| Finance income | 411 | 394 | 4.3 | 1 931 |
--------------------------------------------------------------------------------
| Finance costs | -2 096 | -1 494 | 40.3 | -6 737 |
--------------------------------------------------------------------------------
| Profit before tax | 8 300 | 21 735 | -61.8 | 50 692 |
--------------------------------------------------------------------------------
| Income tax expense | -2 200 | -2 002 | 9.9 | -10 724 |
--------------------------------------------------------------------------------
| Profit for the period | 6 100 | 19 733 | -69.1 | 39 968 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of the company | 6 104 | 19 724 | | 39 969 |
--------------------------------------------------------------------------------
| Minority interest | -4 | 9 | | -1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share for profit attributable to the equity holders of the |
| company: |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0.16 | 0.51 | | 1.03 |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0.16 | 0.51 | | 1.03 |
| EUR | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
| EUR 1000 | 1-3/2009 | 1-3/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | 6 100 | 19 733 | 39 968 |
--------------------------------------------------------------------------------
| Other comprehensive income, after tax | | | |
--------------------------------------------------------------------------------
| Hedging reserve, change in fair value | -434 | -314 | -972 |
--------------------------------------------------------------------------------
| Current available-for-sale investments | | | |
--------------------------------------------------------------------------------
| Gains in the period | 73 | -1 | 29 |
--------------------------------------------------------------------------------
| Reclassification adjustments | | -14 238 | -14 238 |
--------------------------------------------------------------------------------
| Current available-for-sale investments | 73 | -14 239 | -14 209 |
--------------------------------------------------------------------------------
| Currency translation differences | -309 | -110 | -1 862 |
--------------------------------------------------------------------------------
| Other comprehensive income, after tax | -670 | -14 663 | -17 043 |
--------------------------------------------------------------------------------
| Total comprehensive income, after tax | 5 430 | 5 070 | 22 925 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income attributable to: | | |
--------------------------------------------------------------------------------
| Equity holders of the company | 5 448 | 5 067 | 22 950 |
--------------------------------------------------------------------------------
| Minority interest | -18 | 3 | -25 |
--------------------------------------------------------------------------------
Breakdown of income tax is presented in the notes under ‘Tax effects of
components of other comprehensive income'.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
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| EUR 1000 | 3/2009 | 3/2008 | 12/2008 |
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| | | | |
--------------------------------------------------------------------------------
| ASSETS | | | |
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| | | | |
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| Non-current assets | | | |
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| Intangible assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 115 401 | 120 028 | 115 451 |
--------------------------------------------------------------------------------
| Customer contracts arising from | 6 869 | 7 597 | 7 346 |
| acquisitions | | | |
--------------------------------------------------------------------------------
| Agreements on prohibition of | 12 667 | 14 680 | 13 270 |
| competition | | | |
--------------------------------------------------------------------------------
| Other intangible assets arising from | 4 678 | 6 904 | 5 158 |
| business acquisitions | | | |
--------------------------------------------------------------------------------
| Other intangible assets | 11 794 | 11 944 | 11 402 |
--------------------------------------------------------------------------------
| | 151 409 | 161 153 | 152 627 |
--------------------------------------------------------------------------------
| Property, plant and equipment | | | |
--------------------------------------------------------------------------------
| Land | 3 832 | 3 532 | 3 832 |
--------------------------------------------------------------------------------
| Buildings and constructions | 42 599 | 38 614 | 43 958 |
--------------------------------------------------------------------------------
| Machinery and equipment | 113 775 | 104 736 | 113 851 |
--------------------------------------------------------------------------------
| Other | 79 | 82 | 78 |
--------------------------------------------------------------------------------
| Advance payments and construction in | 39 368 | 9 682 | 35 433 |
| progress | | | |
--------------------------------------------------------------------------------
| | 199 653 | 156 646 | 197 152 |
--------------------------------------------------------------------------------
| Other non-current assets | | | |
--------------------------------------------------------------------------------
| Available-for-sale investments | 502 | 408 | 502 |
--------------------------------------------------------------------------------
| Finance lease receivables | 4 893 | 4 337 | 4 694 |
--------------------------------------------------------------------------------
| Deferred income tax assets | 1 223 | 1 015 | 945 |
--------------------------------------------------------------------------------
| Other receivables | 712 | 621 | 689 |
--------------------------------------------------------------------------------
| | 7 330 | 6 381 | 6 830 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total non-current assets | 358 392 | 324 180 | 356 609 |
--------------------------------------------------------------------------------
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| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 17 729 | 12 330 | 18 827 |
--------------------------------------------------------------------------------
| Trade and other receivables | 80 815 | 78 639 | 74 634 |
--------------------------------------------------------------------------------
| Derivative receivables | 29 | 667 | 112 |
--------------------------------------------------------------------------------
| Advance payments | 4 103 | 3 019 | 986 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 36 958 | 2 991 | 20 368 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 19 391 | 11 160 | 6 149 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total current assets | 159 025 | 108 806 | 121 076 |
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| TOTAL ASSETS | 517 417 | 432 986 | 477 685 |
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| EUR 1000 | 3/2009 | 3/2008 | 12/2008 |
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| | | | |
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| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | | | |
| of the company | | | |
--------------------------------------------------------------------------------
| Share capital | 19 399 | 19 398 | 19 399 |
--------------------------------------------------------------------------------
| Share premium reserve | 50 673 | 50 645 | 50 673 |
--------------------------------------------------------------------------------
| Other reserves | -3 620 | -602 | -2 964 |
--------------------------------------------------------------------------------
| Retained earnings | 116 622 | 118 407 | 97 799 |
--------------------------------------------------------------------------------
| Profit for the period | 6 104 | 19 724 | 39 969 |
--------------------------------------------------------------------------------
| | 189 178 | 207 572 | 204 876 |
--------------------------------------------------------------------------------
| Minority interest | 144 | 190 | 162 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity | 189 322 | 207 762 | 205 038 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred income tax liabilities | 32 539 | 29 606 | 32 898 |
--------------------------------------------------------------------------------
| Pension obligations | 687 | 555 | 674 |
--------------------------------------------------------------------------------
| Long-term provisions | 1 923 | 962 | 1 741 |
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| Long-term borrowings | 121 525 | 80 039 | 102 487 |
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| Other liabilities | 1 177 | 512 | 1 083 |
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| | 157 851 | 111 674 | 138 883 |
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| Current liabilities | | | |
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| Short-term borrowings | 51 040 | 21 597 | 44 569 |
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| Trade and other payables | 117 624 | 90 631 | 88 298 |
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| Derivative liabilities | 1 196 | 1 127 | 610 |
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| Tax liabilities | 45 | 131 | 273 |
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| Short-term provisions | 339 | 64 | 14 |
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| | 170 244 | 113 550 | 133 764 |
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| Total liabilities | 328 095 | 225 224 | 272 647 |
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| TOTAL EQUITY AND LIABILITIES | 517 417 | 432 986 | 477 685 |
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CONSOLIDATED STATEMENT OF CASH FLOWS
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| EUR 1000 | 3/2009 | 3/2008 | 12/2008 |
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| | | | |
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| Cash flows from operating activities | | | |
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| Profit for the period | 6 100 | 19 733 | 39 968 |
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| Adjustments | | | |
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| Income tax expense | 2 200 | 2 002 | 10 724 |
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| Depreciation, amortisation and | 9 952 | 9 239 | 40 985 |
| impairment | | | |
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| Finance income and costs | 1 685 | 1 100 | 4 806 |
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| Oil derivatives | | 263 | -2 221 |
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| Gain on sale of shares | | -14 258 | -14 258 |
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| Discontinued operations | | | 2 616 |
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| Other | 31 | -912 | 444 |
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| Net cash generated from operating | 19 968 | 17 167 | 83 064 |
| activities before change in working | | | |
| capital | | | |
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| Change in working capital | | | |
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| Change in trade and other receivables | -11 473 | -8 498 | 3 502 |
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| Change in inventories | 1 085 | 2 007 | -4 492 |
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| Change in trade and other payables | 7 822 | 4 862 | 3 152 |
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| Change in working capital | -2 566 | -1 629 | 2 162 |
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| Interest paid | -1 459 | -586 | -5 953 |
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| Interest received | 320 | 303 | 1 867 |
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| Income tax paid | -562 | -3 616 | -10 716 |
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| Net cash from operating activities | 15 701 | 11 639 | 70 424 |
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| | | | |
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| Cash flows from investing activities | | | |
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| Acquisition of subsidiaries and | | -247 | -4 298 |
| businesses, net of cash acquired | | | |
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| Proceeds from sale of subsidiaries and | | | 23 |
| businesses, net of sold cash | | | |
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| Purchases of property, plant and | -12 236 | -13 451 | -77 542 |
| equipment and intangible assets | | | |
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| Proceeds from sale of property, plant | 560 | 681 | 789 |
| and equipment and intangible assets | | | |
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| Purchases of available-for-sale | -1 | -1 | -200 |
| investments | | | |
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| Change in other non-current | -18 | 13 | -11 |
| receivables | | | |
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| Proceeds from sale of | -4 | 16 803 | 16 867 |
| available-for-sale investments | | | |
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| Dividends received | | | 4 |
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| Net cash used in investing activities | -11 699 | 3 798 | -64 368 |
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| Cash flows from financing activities | | | |
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| Proceeds from shares issued | | 178 | 206 |
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| Change in short-term borrowings | 3 211 | -3 759 | -4 593 |
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| Proceeds from long-term borrowings | 24 000 | | 47 000 |
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| Repayments of long-term borrowings | -1 387 | -11 691 | -14 546 |
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| Dividends paid | | | -21 315 |
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| Net cash generated from financing | 25 824 | -15 272 | 6 752 |
| activities | | | |
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| Net change in liquid assets | 29 826 | 165 | 12 808 |
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| Liquid assets at beginning of period | 26 517 | 14 008 | 14 008 |
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| Effect of changes in foreign exchange | -93 | -24 | -339 |
| rates | | | |
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| Change in fair value of current | 99 | 2 | 40 |
| available-for-sale investments | | | |
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| Liquid assets at end of period | 56 349 | 14 151 | 26 517 |
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| | | | |
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| Liquid assets | | | |
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| EUR 1000 | 3/2009 | 3/2008 | 12/2008 |
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| | | | |
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| Cash and cash equivalents | 19 391 | 11 160 | 6 149 |
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| Certificates of deposit | 36 958 | 2 991 | 20 368 |
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| Total | 56 349 | 14 151 | 26 517 |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
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| EUR 1000 | Share | Share | Revalu | Retaine | Equity | Minorit | Total |
| | capita | premiu | ation | d | attrib | y | equity |
| | l | m | and | earning | . | interes | |
| | | reserv | other | s | to | t | |
| | | e | reserv | | equity | | |
| | | | es | | holder | | |
| | | | | | s of | | |
| | | | | | the | | |
| | | | | | compan | | |
| | | | | | y | | |
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| Equity at | 19 399 | 50 673 | -2 964 | 137 768 | 204 | 162 | 205 038 |
| 1.1.2009 | | | | | 876 | | |
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| Share | | | | | | | |
| option | | | | | | | |
| remunerati | | | | | | | |
| on | | | | | | | |
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| Remunerati | | | | 193 | 193 | | 193 |
| on expense | | | | | | | |
| of share | | | | | | | |
| options | | | | | | | |
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| Dividends | | | | -21 339 | -21 | | -21 339 |
| paid | | | | | 339 | | |
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| Total | | | -656 | 6 104 | 5 448 | -18 | 5 430 |
| comprehens | | | | | | | |
| ive income | | | | | | | |
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| Equity at | 19 399 | 50 673 | -3 620 | 122 726 | 189 | 144 | 189 322 |
| 31.3.2009 | | | | | 178 | | |
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--------------------------------------------------------------------------------
| Equity at | 19 392 | 50 474 | 14 055 | 118 236 | 202 | 187 | 202 344 |
| 1.1.2008 | | | | | 157 | | |
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| Share | | | | | |