LASSILA & TIKANOJA PLC INTERIM REPORT 29 July 2008 8.00 am
INTERIM REPORT 1 JANUARY - 30 JUNE 2008
- Net sales for the second quarter EUR 154.4 million (EUR 138.8 million);
operating profit EUR 10.2 million (EUR 12.0 million); operating profit excluding
non-recurring and imputed items EUR 11.3 million (EUR 13.8 million); earnings
per share EUR 0.17 (EUR 0.20)
- Net sales for January-June EUR 301.7 million (EUR 267.9 million); operating
profit EUR 33.0 million (EUR 21.2 million); operating profit excluding
non-recurring and imputed items EUR 20.1 million (EUR 24.1 million); earnings
per share EUR 0.68 (EUR 0.35)
- Full-year net sales are expected to increase by approximately 10 per cent. The
operating profit excluding non-recurring and imputed items is expected to be
somewhat lower than in the previous year. The capital gain from Ekokem shares
will improve earnings.
GROUP NET SALES AND FINANCIAL PERFORMANCE
Second quarter
Net sales for the second quarter stood at EUR 154.4 million (EUR 138.8 million).
This represented an increase of 11.2%, 1.5 percentage points of which came from
corporate acquisitions. The operating profit was EUR 10.2 million (EUR 12.0
million), which is 6.6% (8.7%) of net sales. The operating profit excluding
non-recurring and imputed items was EUR 11.3 million (EUR 13.8 million).
Earnings per share were EUR 0.17 (EUR 0.20).
Organic growth continued. The quarter's performance was burdened by a larger
rise than expected in the general cost level, particularly in the prices of
transport fuels that can only be transferred into sales prices with a delay. The
operating profit was also burdened by changes in the fair values of oil
derivatives amounting to EUR 1.1 million (EUR 0.5 million).
January-June
Net sales for January-June stood at EUR 301.7 million (EUR 267.9 million). This
represented an increase of 12.6%, 3.8 percentage points of which came from
corporate acquisitions. The operating profit was EUR 33.0 million (EUR 21.2
million), which is 10.9% (7.9%) of net sales. The operating profit excluding
non-recurring and imputed items was EUR 20.1 million (EUR 24.1 million).
Earnings per share were EUR 0.68 (EUR 0.35).
Organic growth outperformed market growth, and new service products were
introduced to the market. The operating profit was improved by a capital gain of
EUR 14.3 million from the sale of Ekokem shares in January. The operating profit
excluding non-recurring and imputed items was burdened by a rapid increase in
production costs and a decline in the demand for recycled fuels and biofuels due
to the mild winter. The operating profit was burdened by changes in the fair
values of oil derivatives amounting to EUR 1.4 million (EUR 1.6 million).
Financial summary
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| | 4-6/ | 4-6/ | Change | 1-6/ | 1-6/ | Change | 1-12/ |
| | 2008 | 2007 | % | 2008 | 2007 | % | 2007 |
| | | | | | | | |
--------------------------------------------------------------------------------
| Net sales, EUR | 154.4 | 138.8 | 11.2 | 301.7 | 267.9 | 12.6 | 554.6 |
| million | | | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 11.3 | 13.8 | -18.1 | 20.1 | 24.1 | -16.6 | 54.3 |
| excluding | | | | | | | |
| non-recurring | | | | | | | |
| and imputed | | | | | | | |
| items, EUR | | | | | | | |
| million* | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 10.2 | 12.0 | -15.3 | 33.0 | 21.2 | 55.8 | 48.8 |
| profit, EUR | | | | | | | |
| million | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 6.6 | 8.7 | | 10.9 | 7.9 | | 8.8 |
| margin, % | | | | | | | |
--------------------------------------------------------------------------------
| Profit before | 9.2 | 11.1 | -17.2 | 30.9 | 19.4 | 59.3 | 44.5 |
| tax, EUR million | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.17 | 0.20 | -15.0 | 0.68 | 0.35 | 94.3 | 0.83 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
| EVA, EUR million | 2.8 | 6.0 | -53.3 | 18.6 | 9.6 | 93.8 | 23.0 |
--------------------------------------------------------------------------------
* 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
Second quarter
The net sales of Environmental Services (waste management, recycling services,
L&T Biowatti, environmental products) in the second quarter amounted to EUR 76.6
million (EUR 71.7 million), an increase of 6.8%. The operating profit was EUR
8.2 million (EUR 8.1 million).
Rapidly increasing production costs, particularly an increase in the prices of
transport fuels, burdened the division's operating performance. The cost
increase had its greatest effect in waste management, which fell short of its
targets. The profitability of recycling services was weakened by a continuing
increase in the purchase prices of certain waste materials and a downturn in the
availability of recycled materials from the forest industry. The heating values
of biofuels supplied by L&T Biowatti were higher than in the comparison period,
and its performance improved.
Operations outside Finland within Environmental Services expanded, and
performance developed favourably. Net sales from Environmental Products
continued to increase.
All units within waste management and recycling services received certificates
for quality, environmental, occupational health and safety management. The
objective of certification is to improve service and reinforce shared operating
procedures.
January-June
Environmental Services' net sales for January-June amounted to EUR 152.1 million
(EUR 137.1 million), an increase of 10.9%. The operating profit was EUR 16.6
million (EUR 16.9 million).
It was not possible to transfer the major increase in transport fuel prices
completely into sales prices. Prices will be increased with a delay, and
production efficiency measures were initiated in order to adapt to increased
production costs.
Construction of substantial added capacity was initiated at the Kerava recycling
park. The capacity of the Kerava plant will be doubled to almost 400,000 tonnes
by 2010, and the recovery rate will increase substantially. Due to the reduced
capacity of the landfill at the Kerava plant for technical reasons, the costs of
disposal of plant reject will increase. The industrial waste landfill under
construction in Kotka is expected to be completed within the next few months.
The demand for L&T Biowatti's biofuels was substantially lower than expected,
which was due to the exceptionally mild winter. Warm weather also hampered the
collection of forest processed chips, and subcontracting costs increased. L&T
Biowatti will invest in its own collecting, processing and transport equipment
for forest processed chips and start the production of wood pellets during the
current year.
The business in Russia and Latvia developed as planned. Resources were increased
to further expand international operations.
Property and Office Support Services
Second quarter
The net sales of Property and Office Support Services (property maintenance and
cleaning services) in the second quarter totalled EUR 57.1 million (EUR 48.7
million), an increase of 17.4%. The operating profit was EUR 1.2 million (EUR
1.7 million).
Growth in net sales continued thanks to acquisitions made in the previous year.
Organic growth was strong particularly in property maintenance. The division's
performance weakened due to increased production costs that could not be
transferred fully to prices.
Operations in Sweden remained in the red, and an extensive action programme to
improve profitability is underway.
January-June
The January-June net sales of Property and Office Support Services totalled EUR
112.7 million (EUR 97.4 million), an increase of 15.7%. The operating profit was
EUR 2.8 million (EUR 2.8 million).
Contract revenue increased, and the sales of additional services were
successful. Price competition remained intense, and operations are being adapted
to increased production costs.
New service products were again introduced to the market. New products in
cleaning services included the L&T® EcoCleaning concept, which received the
Nordic Ecolabel, also known as the Swan Label, as the first product of the
industry in Finland. The concept provides customers the opportunity to carry out
concrete environment-friendly actions.
The holding in Blue Service Partners was sold to the joint venture partner in
the beginning of February.
The operations in Russia and Latvia developed as planned. The focus in Sweden is
still on organic growth and improving profitability. The loss from international
operations declined.
Industrial Services
Second quarter
The net sales of Industrial Services (hazardous waste management, industrial
solutions, damage repair services, wastewater services) in the second quarter
amounted to EUR 22.1 million (EUR 19.6 million), an increase of 12.7%. The
operating profit was EUR 1.2 million (EUR 2.6 million).
Rapid fluctuation in the demand for industrial cleaning services continued, and
production could not be adapted to the fluctuation quickly enough. Net sales
from all product lines increased but it was not yet possible to transfer the
entire increase in the cost level into prices. The operating profit was also
burdened by changes in the fair values of oil derivatives amounting to EUR 1.1
million (EUR 0.5 million), as well as the costs of raw material storage for the
L&T Recoil re-refinery for used lubricating oil that is currently under
construction.
New partner agreements were made in damage repair services, and the service
network was expanded.
Demand for the division's services improved towards the end of the period.
January-June
The January-June net sales of Industrial Services amounted to EUR 39.4 million
(EUR 35.7 million), an increase of 10.4%. The operating profit was EUR 0.3
million (EUR 2.5 million).
Most of the growth came from operations transferred from Environmental Services.
The demand for Industrial Services is usually weakest early in the year;
however, demand in the comparison period was exceptionally strong. Production
could not be adapted quickly enough to the rapid fluctuation in the demand for
services. In the first quarter the earnings were also burdened by difficulties
in delivering recycled fuels.
The earnings were also burdened by changes in the fair values of oil derivatives
amounting to EUR 1.4 million (EUR 1.6 million).
Pricing will be adjusted, and all product lines will focus on improving
profitability. The L&T Recoil re-refinery is expected to be completed towards
the end of the year.
FINANCING
At the end of the period, interest-bearing liabilities amounted to EUR 2.1
million more than a year earlier. Net interest-bearing liabilities, totalling
EUR 111.8 million, increased by EUR 6.9 million from the comparison period and
by EUR 25.4 million from the beginning of the year. Net finance costs increased
by EUR 0.1 million in the second quarter and by EUR 0.3 million in January-June.
Interest expenses increased by EUR 0.1 million in the second quarter and by EUR
0.4 million in January-June.
An expense of EUR 0.1 million arising from changes in the fair values of
interest rate swaps was recognised in the finance costs while there were none of
them in the comparison period. Net finance costs were 0.7% (0.7%) of net sales
and 6.3% (8.4%) of operating profit.
In January-June, a total of EUR 0.4 million arising from the change in the fair
value of interest rate swaps to which hedge accounting under IAS 39 is applied,
was recognised as an increase in equity.
The equity ratio was 44.5% (42.2%) and the gearing rate 57.7 (61.2). Cash flows
from operating activities in January-June amounted to EUR 25.9 million (EUR 24.7
million), and EUR 2.3 million were tied up in the working capital (EUR 5.8
million).
DIVIDEND
The Annual General Meeting held on 1 April 2008 resolved on a dividend of EUR
0.55 per share. The dividend, totalling EUR 21.3 million, was paid to the
shareholders on 11 April 2008.
CAPITAL EXPENDITURE
Capital expenditure totalled EUR 31.4 million (EUR 64.7 million). Production
plants were built and machinery and equipment were purchased and information
systems were replaced.
On 1 April 2008, the property maintenance services business of Rantakylän
Talonhuolto Oy was acquired into Property and Office Support Services (annual
net sales EUR 0.2 million).
In the first quarter the cleaning services business of Siivouspalvelu Siivoset
Oy and the cleaning services business of Siivousliike Lainio Oy were acquired
into Property and Office Support Services. The business of Obawater Oy was
acquired into waste water services within Industrial Services. The combined
annual net sales of the acquired businesses totalled EUR 0.7 million.
PERSONNEL
In January-June, the average number of employees converted into full-time
equivalents was 7.972 (7.398). At the end of the period, the total number of
full-time and part-time employees was 10.087 (9.486). Of them 7.694 (7.212)
people worked in Finland and 2.393 (2.274) people in other countries.
SHARE AND SHARE CAPITAL
Traded volume and price
The volume of trading in Lassila & Tikanoja plc shares on OMX Nordic Exchange
Helsinki from January through June was 12,459,495, which is 32.1% (24.6%) of the
average number of shares. The value of trading was EUR 217.9 million. The
trading price varied between EUR 14.60 and EUR 23.00. The closing price was EUR
15.57. The market capitalisation was EUR 604.1 million (EUR 971.8 million) at
the end of the period.
Share capital
At the beginning of the year the company's registered share capital amounted to
EUR 19,392,187. Since the beginning of the year, 12,500 shares have been
subscribed for pursuant to 2005A share options. After these subscriptions the
share capital is EUR 19,398,437, and the number of the shares 38,796,874 shares.
On 28 July 2008, the Board approved the subscriptions of 2,000 new shares made
pursuant to the 2005A share options. As a result of these subscriptions, the
company's registered share capital will increase by EUR 1,000 to EUR 19,399,437
and the number of the shares will increase to 38,798,874 shares after the
increase has been entered in the Trade Register.
Share option schemes 2005 and 2008
In 2005, 600,000 share options 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. 33 key persons hold
178,000 2005B options and 42 key persons hold 226,500 2005C options. L&T Advance
Oy, a wholly-owned subsidiary of Lassila & Tikanoja plc, holds 8,000 2005A
options, 22,000 2005B options and 3,500 2005C options.
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 the OMX Nordic Exchange Helsinki since 2
November 2007.
The Annual General Meeting of the year 2008 resolved to issue 230,000 share
option rights, each entitling its holder to subscribe for one share of Lassila &
Tikanoja plc. 43 key persons hold 226,500 options and L&T Advance Oy 3,500
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 226,500 new shares, which is 0.6%
of the current number of shares.
Shareholders
At the end of the financial period, the company had 6,123 (4,795) shareholders.
Nominee-registered holdings accounted for 9.8% (15.1%) of the total number of
shares.
Notifications on major holdings
On 20 May 2008, Ilmarinen Mutual Pension Insurance Company announced that its
holding of the shares and votes in Lassila & Tikanoja plc had exceeded the
threshold of 10%.
On 26 March 2008, Varma Mutual Pension Insurance Company announced that its
holding of the shares and votes in Lassila & Tikanoja plc had fallen to 4.52%.
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 1 April
2008, adopted the financial statements for the financial year 2007 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 2007. The
dividend payment date was 11 April 2008.
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: Eero Hautaniemi, Lasse Kurkilahti, Juhani Lassila
and Juhani Maijala. Heikki Bergholm and Matti Kavetvuo were elected as new
members 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 proposal to issue 230,000 share
options to key personnel of the Lassila & Tikanoja Group and/or to a
wholly-owned subsidiary of Lassila & Tikanoja plc.
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
On 22 January 2008, Lassila & Tikanoja sold its holding in the shares of Ekokem
Oy Ab to Ilmarinen Mutual Pension Insurance Company. Lassila & Tikanoja had
obtained possession of the shares over a period of several years and they no
longer had any connection to the business operations of the company and were,
consequently, not essential for them. A tax-free capital gain arising from the
sale was recognised in the financial statements for the first quarter of the
year 2008. The positive effect of the sale on the profit for the period will be
EUR 14.2 million.
In a release disclosed on 22 July 2008, the company announced that the full-year
operating profit excluding non-recurring and imputed items is estimated to be
somewhat lower than in the previous year. Previously the company estimated that
the full-year financial performance will remain at the same level as in the
previous year.
NEAR-TERM UNCERTAINTIES
If the prices of crucial production factors such as transport fuels continue to
increase at the same rate as in the first half of the year, the delay in
transferring the cost increase to sales prices may hamper profitability. 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. If the next
winter is mild, this will have a negative impact on L&T Biowatti's earnings
development. A planned amendment to Latvian waste legislation may have adverse
effects on the competition situation for waste management in Riga towards the
end of the year.
PROSPECTS FOR THE REST OF THE YEAR
The demand outlook in Lassila & Tikanoja's markets remain mostly good but the
adaptation of the costs and transferring the cost increases to sales prices will
impose challenges.
Full-year net sales are expected to increase by approximately 10 per cent. The
operating profit excluding non-recurring and imputed items is expected to be
somewhat lower than in the previous year. However, the capital gain from Ekokem
shares will improve earnings.
The demand for Environmental Services is expected to remain good. Increasing the
capacity of recycling plants and landfills will continue, as well as
geographical expansion in Russia. During the rest of the year, L&T Biowatti will
continue to invest in strengthening its procurement organisation and collection
equipment for forest processed chips, as well as start the production of wood
pellets. A potential slowdown in new construction may be reflected in the intake
volumes of recycling plants. Environmental Services' operating profit is
expected to remain at the same level as in the previous year.
The market outlook for Property and Office Support Services remains good even
though the competitive situation is expected to remain challenging and margins
are expected to remain tight. Costs in Finland are increased through pay rises
and increases in social security costs and transport fuel prices. The division's
international operations are expected to improve their performance but still
remain in the red. The operating profit from Property and Office Support
Services is expected to fall somewhat short of the previous year's level.
The market outlook for Industrial Services remains mostly positive; however,
uncertainties in the forest industry will be reflected in services produced by
the division. Rapid fluctuations in demand are expected to continue towards the
end of the year. The L&T Recoil re-refinery is expected to be completed at the
end of the year. The operating profit from Industrial Services is expected to
fall short of the previous year's level.
Investments will be lower than in the previous year. The main emphasis will be
on profitability improvement.
BREAKDOWN OF OPERATING PROFIT EXCLUDING NON-RECURRING AND IMPUTED ITEMS
--------------------------------------------------------------------------------
| EUR million | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 10.2 | 12.0 | 33.0 | 21.2 | 48.8 |
--------------------------------------------------------------------------------
| Non-recurring items: | | | | | |
--------------------------------------------------------------------------------
| Loss on sale of landfill | | 1.3 | | 1.3 | 2.3 |
| operations of Salvor and | | | | | |
| integration of the remaining | | | | | |
| Salvor's operations | | | | | |
--------------------------------------------------------------------------------
| Reorganisation of Property and | | | | | 0.4 |
| office support services | | | | | |
| operations in Russia | | | | | |
--------------------------------------------------------------------------------
| Gain on sale of the shares of | | | -14.3 | | |
| Ekokem | | | | | |
--------------------------------------------------------------------------------
| Oil derivatives | 1.1 | 0.5 | 1.4 | 1.6 | 2.8 |
--------------------------------------------------------------------------------
| Operating profit excluding | 11.3 | 13.8 | 20.1 | 24.1 | 54.3 |
| non-recurring and imputed | | | | | |
| items | | | | | |
--------------------------------------------------------------------------------
CONDENSED FINANCIAL STATEMENTS 1 JANUARY-30 JUNE 2008
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 2007 have been applied. These interim financial
statements have been prepared in accordance with the IFRS standards and
interpretations as adopted by the EU. Forthcoming standards and interpretations
are presented in the accounting policies in Annual Report 2007. 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 | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 154 364 | 138 759 | 301 695 | 267 872 | 554 613 |
--------------------------------------------------------------------------------
| Cost of goods sold | -135 939 | -119 485 | -267 741 | -231 | -478 151 |
| | | | | 927 | |
--------------------------------------------------------------------------------
| GROSS PROFIT | 18 425 | 19 274 | 33 954 | 35 945 | 76 462 |
--------------------------------------------------------------------------------
| Other operating | 946 | 986 | 15 872 | 1 628 | 3 834 |
| income | | | | | |
--------------------------------------------------------------------------------
| Selling and marketing | -4 329 | -3 888 | -8 220 | -7 710 | -14 616 |
| costs | | | | | |
--------------------------------------------------------------------------------
| Administrative | -3 216 | -2 950 | -6 291 | -5 889 | -11 614 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Other operating | -1 628 | -1 382 | -2 282 | -2 773 | -5 291 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 10 198 | 12 040 | 33 033 | 21 201 | 48 775 |
--------------------------------------------------------------------------------
| Finance income | 436 | 464 | 816 | 779 | 1 661 |
--------------------------------------------------------------------------------
| Finance costs | -1 426 | -1 388 | -2 906 | -2 555 | -5 978 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAX | 9 208 | 11 116 | 30 943 | 19 425 | 44 458 |
--------------------------------------------------------------------------------
| Income tax expense | -2 440 | -3 332 | -4 442 | -5 575 | -12 291 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 6 768 | 7 784 | 26 501 | 13 850 | 32 167 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 6 778 | 7 704 | 26 502 | 13 598 | 31 909 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | -10 | 80 | -1 | 252 | 258 |
--------------------------------------------------------------------------------
Earnings per share for profit attributable to the equity holders of the company:
--------------------------------------------------------------------------------
| Earnings per share, | 0.17 | 0.20 | 0.68 | 0.35 | 0.83 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.17 | 0.20 | 0.68 | 0.35 | 0.82 |
| EUR - diluted | | | | | |
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BALANCE SHEET
--------------------------------------------------------------------------------
| EUR 1000 | 6/2008 | 6/2007 | 12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 119 900 | 125 815 | 119 946 |
--------------------------------------------------------------------------------
| Intangible assets arising from business | 27 703 | 32 137 | 30 600 |
| combinations | | | |
--------------------------------------------------------------------------------
| Other intangible assets | 12 011 | 9 138 | 11 571 |
--------------------------------------------------------------------------------
| Total | 159 614 | 167 090 | 162 117 |
--------------------------------------------------------------------------------
| Property, plant and equipment | | | |
--------------------------------------------------------------------------------
| Land | 3 503 | 3 251 | 3 532 |
--------------------------------------------------------------------------------
| Buildings and constructions | 38 039 | 36 478 | 39 594 |
--------------------------------------------------------------------------------
| Machinery and equipment | 106 703 | 93 127 | 103 832 |
--------------------------------------------------------------------------------
| Other | 82 | 288 | 82 |
--------------------------------------------------------------------------------
| Advance payments and construction in | 17 908 | 4 227 | 4 830 |
| progress | | | |
--------------------------------------------------------------------------------
| Total | 166 235 | 137 371 | 151 870 |
--------------------------------------------------------------------------------
| Other non-current assets | | | |
--------------------------------------------------------------------------------
| Investments in associates | | 3 | |
--------------------------------------------------------------------------------
| Available-for-sale investments | 402 | 2 976 | 410 |
--------------------------------------------------------------------------------
| Finance lease receivables | 4 472 | 3 435 | 3 823 |
--------------------------------------------------------------------------------
| Deferred income tax assets | 1 435 | 466 | 924 |
--------------------------------------------------------------------------------
| Other receivables | 634 | 226 | 236 |
--------------------------------------------------------------------------------
| Total | 6 943 | 7 106 | 5 393 |
--------------------------------------------------------------------------------
| Total non-current assets | 332 792 | 311 567 | 319 380 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 14 518 | 8 669 | 14 350 |
--------------------------------------------------------------------------------
| Trade and other receivables | 80 088 | 72 092 | 71 824 |
--------------------------------------------------------------------------------
| Derivative receivables | 1 550 | 431 | 1 189 |
--------------------------------------------------------------------------------
| Advance payments | 2 354 | 2 274 | 774 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 2 995 | 3 295 | 21 287 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 5 535 | 10 014 | 9 521 |
--------------------------------------------------------------------------------
| Total current assets | 107 040 | 96 775 | 118 945 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 439 832 | 408 342 | 438 325 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 6/2008 | 6/2007 | 12/2007 |
--------------------------------------------------------------------------------
| EQUITY | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity holders of | | | |
| the company | | | |
--------------------------------------------------------------------------------
| Share capital | 19 398 | 19 358 | 19 392 |
--------------------------------------------------------------------------------
| Share premium reserve | 50 645 | 49 725 | 50 474 |
--------------------------------------------------------------------------------
| Other reserves | -95 | 163 | 14 055 |
--------------------------------------------------------------------------------
| Retained earnings | 97 252 | 85 942 | 86 327 |
--------------------------------------------------------------------------------
| Profit for the period | 26 502 | 13 598 | 31 909 |
--------------------------------------------------------------------------------
| Total | 193 702 | 168 786 | 202 157 |
--------------------------------------------------------------------------------
| Minority interest | 214 | 2 706 | 187 |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 193 916 | 171 492 | 202 344 |
--------------------------------------------------------------------------------
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| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred income tax liabilities | 29 726 | 30 221 | 29 842 |
--------------------------------------------------------------------------------
| Pension obligations | 591 | 457 | 542 |
--------------------------------------------------------------------------------
| Provisions | 1 113 | 806 | 953 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 68 558 | 64 360 | 81 411 |
--------------------------------------------------------------------------------
| Other liabilities | 690 | 484 | 500 |
--------------------------------------------------------------------------------
| Total | 100 678 | 96 328 | 113 248 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 51 766 | 53 892 | 35 757 |
--------------------------------------------------------------------------------
| Trade and other payables | 91 102 | 86 155 | 85 183 |
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| Derivative liabilities | 2 192 | | 897 |
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| Tax liabilities | 153 | 304 | 794 |
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| Provisions | 25 | 171 | 102 |
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| Total | 145 238 | 140 522 | 122 733 |
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| TOTAL LIABILITIES | 245 916 | 236 850 | 235 981 |
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| TOTAL EQUITY AND LIABILITIES | 439 832 | 408 342 | 438 325 |
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CASH FLOW STATEMENT
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| EUR 1000 | 6/2008 | 6/2007 | 12/2007 |
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| CASH FLOWS FROM OPERATING ACTIVITIES | | | |
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| Profit for the period | 26 502 | 13 850 | 32 167 |
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| Adjustments | | | |
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| Income tax expense | 4 442 | 5 575 | 12 291 |
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| Depreciation and amortisation and impairment | 18 618 | 15 821 | 33 432 |
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| Finance income and costs | 2 090 | 1 776 | 4 317 |
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| Oil derivatives | 1 361 | 1 183 | 2 947 |
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| Gain on sale of shares | -14 | | |
| | 258 | | |
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| Other | -1 308 | 16 | -859 |
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| Net cash generated from operating activities | 37 447 | 38 221 | 84 295 |
| before change in working capital | | | |
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| Change in working capital | | | |
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| Change in trade and other receivables | -9 407 | -5 645 | -4 903 |
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| Change in inventories | -182 | -1 097 | -6 824 |
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| Change in trade and other payables | 7 310 | 967 | -1 450 |
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| Change in working capital | -2 279 | -5 775 | -13 177 |
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| Interest paid | -2 576 | -1 859 | -5 104 |
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| Interest received | 795 | 636 | 1 460 |
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| Income tax paid | -7 486 | -6 565 | -12 041 |
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| NET CASH FROM OPERATING ACTIVITIES | 25 901 | 24 658 | 55 433 |
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| CASH FLOWS FROM INVESTING ACTIVITIES | | | |
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| Acquisition of subsidiaries and businesses, | -420 | -38 622 | -37 050 |
| net of cash acquired | | | |
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| Proceeds from subsidiaries and businesses, | | | 1 878 |
| net of sold cash | | | |
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| Purchases of property, plant and equipment | -31 | -16 413 | -49 109 |
| and intangible assets | 180 | | |
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| Proceeds from sale of property, plant and | 1 278 | 2 888 | 2 261 |
| equipment and intangible assets | | | |
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| Purchases of available-for-sale investments | | -102 | -147 |
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| Change in other non-current receivables | -1 | 24 | 1 |
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| Proceeds from sale of non-current | 16 807 | 45 | 1 098 |
| available-for sale investments | | | |
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| Dividends received | 3 | | 4 |
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| NET CASH USED IN INVESTMENT ACTIVITIES | -13 51 | -52 180 | -81 064 |
| | 3 | | |
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| CASH FLOWS FROM FINANCING ACTIVITIES | | | |
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| Proceeds from share issue | 178 | 2 153 | 2 936 |
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| Change in short-term borrowings | 14 414 | 20 352 | 23 011 |
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| Proceeds from long-term borrowings | | 30 000 | 50 302 |
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| Repayments of long-term borrowings | -11 | -15 037 | -39 909 |
| | 109 | | |
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| Dividends paid | -21 | -21 360 | -21 360 |
| | 315 | | |
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| NET CASH GENERATED FROM FINANCING ACTIVITIES | -17 83 | 16 108 | 14 980 |
| | 2 | | |
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| NET CHANGE IN LIQUID ASSETS | -5 444 | -11 414 | -10 651 |
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| Liquid assets at beginning of period | 14 008 | 24 790 | 24 790 |
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| Effect of changes in foreign exchange rates | -36 | -66 | -131 |
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| Change in fair value of current | 2 | -1 | |
| available-for-sale investments | | | |
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| LIQUID ASSETS AT END OF PERIOD | 8 530 | 13 309 | 14 008 |
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Liquid assets
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| EUR 1000 | 6/2008 | 6/2007 | 12/2007 |
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| Cash | 5 535 | 10 014 | 9 521 |
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| Certificates of deposit and commercial papers | 2 995 | 3 295 | 4 487 |
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| Total | 8 530 | 13 309 | 14 008 |
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STATEMENT OF CHANGES IN EQUITY
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| EUR 1000 | Share | Share | Re- | Re- | Equity | Mino- | Total |
| | capit | premiu | valua | tained | attrib. | rity | equity |
| | al | m | - | earn- | to | inter- | |
| | | reserv | tion | ings | equity | est | |
| | | e | and | | holders | | |
| | | | other | | of the | | |
| | | | re- | | company | | |
| | | | serve | | | | |
| | | | s | | | | |
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| EQUITY AT | 19 | 50 474 | 14 | 118 | 202 157 | 187 | 202 344 |
| 1.1.2008 | 392 | | 055 | 236 | | | |
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| Hedging | | | 371 | | 371 | | 371 |
| reserve, | | | | | | | |
| change in | | | | | | | |
| fair value | | | | | | | |
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| Current | | | -14 | | -14 237 | | -14 237 |
| available | | | 237 | | | | |
| for sale | | | | | | | |
| investments, | | | | | | | |
| change in | | | | | | | |
| fair value | | | | | | | |
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| Translation | | | -284 | | -284 | 28 | -256 |
| differences | | | | | | | |
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| Items | | | -14 1 | | -14 150 | 28 | -14 122 |
| recognised | | | 50 | | | | |
| directly | | | | | | | |
| in equity | | | | | | | |
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| Profit for | | | | 26 502 | 26 502 | -1 | 26 502 |
| the period | | | | | | | |
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| Total | | | -14 | 26 502 | 12 351 | 27 | 12 378 |
| recognised | | | 150 | | | | |
| income and | | | | | | | |
| expenses | | | | | | | |
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| Share option | | | | | | | |
| remuneration | | | | | | | |
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| Subscription | 6 | 172 | | | 178 | | 178 |
| s | | | | | | | |
| pursuant to | | | | | | | |
| 2005 | | | | | | | |
| options | | | | | | | |
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| Remuneration | | | | 339 | 339 | | 339 |
| expense of | | | | | | | |
| share | | | | | | | |
| options | | | | | | | |
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| Dividends | | | | -21 | -21 323 | | -21 323 |
| paid | | | | 323 | | | |
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| EQUITY AT | 19 | 50 645 | -95 | 123 | 193 702 | 214 | 193 916 |
| 30.6.2008 | 398 | | | 754 | | | |
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--------------------------------------------------------------------------------
| EQUITY AT | 19 | 47 666 | 326 | 106 | 174 160 | 2 709 | 176 869 |
| 1.1.2007 | 264 | | | 904 | | | |
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| Hedging | | | 207 | | 207 | | 207 |
| reserve, | | | | | | | |
| change in | | | | | | | |
| fair | | | | | | | |
| value | | | | | | | |
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| Current | | | -7 | | -7 | | -7 |
| available | | | | | | | |
| for sale | | | | | | | |
| investments, | | | | | | | |
| change in | | | | | | | |
| fair value | | | | | | | |
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| Translation | | | -363 | | -363 | | -363 |
| differences | | | | | | | |
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| Items | | | -163 | | -163 | -1 | -163 |
| recognised | | | | | | | |
| directly | | | | | | | |
| in equity | | | | | | | |
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| Profit for | | | | 1