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Huhtamäki Oyj STOCK EXCHANGE RELEASE HUHTAMÄKI OYJ 18.7.2008 AT 9:00
- Group net sales declined due to adverse currency impact - Market demand stable in Americas, soft in Oceania and slowing down in Europe - Improved earnings excluding restructuring charges in the second quarter - Raw material, energy and distribution costs remained high - Cash flow improved due to lower working capital and capital expenditure
* H1 2008 and Q2 2008 includes restructuring charges EUR 6.8 million.
Overview The demand for consumer packaging in the majority of the markets remained stable to healthy. However, market softness persisted in Oceania and signs of slowing demand were experienced in Europe. The decline in the Group net sales in the reporting period was due to adverse currency translation impact while modest growth was achieved in constant currencies.
Earnings improved in the seasonally important second quarter after a slow start to the year. Excluding the restructuring charges in the UK and in Sweden, profitability in the second quarter came close to the level reached in the previous year, corresponding to an EBIT margin of 5.7% (5.9% in the same period in 2007). Main contributors to this positive development were Rigid Europe and improving performance in Films.
The raw material costs remained on a high level throughout the reporting period and increases in energy and distribution costs became more pronounced in the second quarter. The current cost level together with anticipated cost increases led to the revised full-year outlook on June 18, 2008.
Business review by segment The sales distribution in the reporting period was the following: Flexibles and Films Global 32% (31%), Rigid Europe 28% (27%), Molded Fiber Europe 6% (6%), Rigid and Molded Fiber Americas 25% (26%) as well as Rigid and Molded Fiber Asia-Oceania-Africa 9% (10%).
Flexibles and Films Global Flexibles and Films are organized as a global segment. Flexibles are used for food and pet food packaging as well as non-food consumer packaging. Films are mainly used for technical applications in the label, adhesive tape, hygiene and health care industries as well as building and construction, automotive, packaging and graphic arts industries.
Sales within the segment declined during the reporting period but modest growth was recorded in the second quarter. Sales development was weak due to adverse currency impact as well as low sales in Flexibles Europe, North America and Oceania. This was partially offset by robust growth in Flexibles Asia. In Films, strong growth in the second quarter contributed to a minor increase in sales for the reporting period.
Profitability in the period reflects volume shortfall and margin pressure due to higher raw material costs. Films posted recovering profitability in the second quarter after a weak start to the year. In Flexibles Europe, the implementation of the enterprise resource planning (ERP) platform took place in May 2008. The small facility in Nagpur, India, was closed in the second quarter 2008. Production at the new flexible packaging facility in Bangkok, Thailand, will commence in the third quarter 2008. The reconstructed facility in Thane, India, is scheduled to be operational by year-end 2008.
Rigid Europe Rigid paper and plastic packaging serves foodservice and consumer goods markets in Europe with fresh food, dairy, ice cream, beverage and personal care packaging as well as disposable tableware. Rigid packaging is supplied to foodservice operators, fast food restaurants and food manufacturers.
* H1 2008 and Q2 2008 includes restructuring charges EUR 6.8 million.
Foodservice experienced a good, broad based growth within the segment in the reporting period, although the pace slowed in the second quarter. Sales in Consumer Goods were soft throughout the period in Germany and in the UK. In both divisions, growth in Eastern Europe was robust.
Excluding restructuring charges in the UK and in Sweden, profitability in the reporting period reflects favorable price and mix development as well as an improving trend in operational efficiency. Benefits from earlier pricing efforts became more visible in the second quarter.
In the UK, a consultation process in Portadown and in Gosport is ongoing until the end of July 2008. The Consumer Goods rigid plastic production is expected to cease in Portadown at the end of July 2008 and in Gosport at the end of September 2008. In Karlholmsbruk, Sweden, union negotiations ended in the second quarter and the rigid packaging site will be closed by year-end 2008.
Molded Fiber Europe Molded fiber is used to make fresh product packaging, such as egg and fruit packaging.
Sales and earnings within the segment remained stable in the reporting period. The development in Eastern Europe and in the waste paper trading business was favorable, offset by sales decline in the UK due to a tougher competitive environment and adverse currency translation impact.
Rigid and Molded Fiber Americas Rigid paper and plastic packaging, which serves ice-cream and other consumer goods as well as foodservice markets, is complemented with Molded Fiber Chinet® disposable tableware products. Similar market channels are a common denominator.
Sales growth in constant currencies was solid with good growth throughout the reporting period in Retail and in South America. In Frozen desserts, sales growth accelerated towards the end of the period. Market softness persisted in Foodservice.
Profitability in the reporting period was stable on a comparable basis; excluding the EUR 6 million one time gain in the first quarter of 2007 as well as adverse currency translation impact. The price increases implemented during the reporting period managed to a large extent to compensate for the higher raw material, energy and distribution costs.
Rigid and Molded Fiber Asia-Oceania-Africa Rigid paper and plastic packaging serves foodservice and consumer goods markets. The segment also includes the Molded Fiber business which makes fresh product packaging.
Sales development was modest in Asia, with slowing growth towards the end of the reporting period due to phasing issues with new business in China. Furthermore, as a result of continued general market softness sales declined in Oceania and in South Africa.
Profitability in the reporting period reflects low sales, the start-up costs in new capacity in Asia as well as adverse currency translation impact.
The relocation from the site in Hong Kong to the new facility in Guangzhou, China, was completed in May 2008. Production in Hong Kong ceased at the end of the second quarter.
Financial review The Group EBIT in the reporting period was EUR 47 million (EUR 73 million), corresponding to an EBIT margin of 4.1% (6.3%). In the second quarter, the Group EBIT was EUR 27 million (EUR 36 million), corresponding to an EBIT margin of 4.6% (5.9%). However, excluding the restructuring charges of EUR 7 million in the UK and in Sweden, the Group EBIT of EUR 34 million (EUR 36 million) came in the second quarter close to the level reached in the previous year, corresponding to an EBIT margin of 5.7% (5.9%).
At EUR 20 million, the net financial items in the period were unchanged from the previous year. Net financial items for the second quarter amounted to EUR 11 million (unchanged). The income tax expense was EUR 5 million (EUR 10 million) with the second quarter accounting for EUR 3 million (EUR 5 million).
The result for the period was EUR 23 million (EUR 44 million) and the earnings per share (EPS) were EUR 0.21 (EUR 0.43). Correspondingly, in the second quarter the result was EUR 13 million (EUR 19 million) and EPS were EUR 0.13 (EUR 0.19). The average number of outstanding shares used in the EPS calculations was 100,426,461 (unchanged) excluding 5,061,089 (unchanged) Company's own shares.
Balance sheet and cash flow Free cash flow in the reporting period was EUR 73 million (EUR -43 million), with a strong second quarter amounting to EUR 85 million (EUR -6 million). The improvement was due to phasing of working capital and capital expenditure. Capital expenditure for the period was EUR 31 million (EUR 57 million), with the second quarter spending at EUR 18 million (EUR 32 million). Net debt was EUR 710 million (EUR 797 million) at the end of June 2008. This corresponds to a gearing ratio of 0.94 (0.92).
In the short-term, cash generation and net debt reduction continue as key focus areas within the Group.
Personnel The Group had 15,373 (15,129) employees at the end of June 2008.
Changes in Group management Mr. Jukka Moisio was appointed by the Board of Directors as Huhtamäki Oyj's CEO effective from April 1, 2008. Mr. Juha Salonen was appointed as Senior Vice President, Administration and General Counsel and member of the Group Executive Team starting on April 22, 2008. Mr. Maurice Petitjean, Executive Vice President, Flexibles and Films Global, and member of the Group Executive Team resigned effective from May 22, 2008.
Short-term risks and uncertainties Volatile raw material and energy prices as well as movements in currency translations are considered to be relevant short-term business risks and uncertainties in the Group's operations.
Outlook for 2008 In 2008, the Group EBIT is expected to be below the 2007 underlying Group EBIT of EUR 136 million*. Capital expenditure in 2008 is expected to be below EUR 100 million.
*Excluding restructuring, goodwill impairment and tangible asset impairment charges, total amount EUR 108 million.
Financial reporting in 2008 Huhtamaki will publish the interim report for January 1 - September 30, 2008 on October 22.
Espoo, July 17, 2008 Huhtamäki Oyj Board of Directors
For further information, please contact: Mr. Jukka Moisio, CEO, tel. +358-10-686 7801 Mr. Timo Salonen, CFO, tel. +358-10-686 7880 Ms. Kia Aejmelaeus, Head of Investor Relations, tel. +358-10-686 7819 or mobile +358-40-765 4616 Ms. Minna Staffans, Head of Group Communications, tel. +358-10-686 7863 or mobile +358-50-527 6696
A news conference for analysts and media will be held at 11:00 Finnish time at the head office, address Keilaranta 10, Espoo. CEO Jukka Moisio and CFO Timo Salonen will present the results. A conference call for analysts and investors will start at 14:00 Finnish / 12:00 UK / 07:00 New York time with a management presentation, followed by a question and answer session. To participate, please dial one of the following numbers 5-10 minutes prior to the call start:
- Number for participants from Finland: 0923 114 173 - Number for participants outside of Finland: +44 (0) 1452 555 566 - Conference ID: 54351082
All results materials will be available on our website at www.huhtamaki.com. The results presentation slides will be online approximately at 11:00 Finnish time. A replay of the conference call in the form of an audio webcast will be available during the same evening.
Group Income statement (IFRS) Unaudited H1 H1 Q2 Q2 Q1-Q4 EUR million 2008 2007 2008 2007 2007
Net sales 1,139.1 1,170.8 590.5 606.1 2,311.0 Cost of goods sold -983.2 -989.8 -508.3 -510.7 -2,028.0 Gross profit 155.9 181.0 82.2 95.4 283.0
Other operating income 7.3 13.4 3.6 3.4 31.9 Sales and marketing -42.1 -41.4 -22.3 -21.4 -83.6 Research and development -8.5 -9.6 -4.2 -4.8 -17.8 Administration costs -58.8 -61.6 -29.6 -31.5 -122.6 Other operating expenses -6.8 -8.4 -2.7 -5.4 -62.8 -108.9 -107.6 -55.2 -59.7 -254.9
Earnings before interest and taxes 47.0 73.4 27.0 35.7 28.1
Financial income 7.1 4.9 3.1 3.2 9.2 Financial expenses -27.1 -25.1 -14.5 -14.3 -51.7 Income of associated companies 0.3 0.2 0.2 0.1 0.4 Result before taxes 27.3 53.4 15.8 24.7 -14.0
Income tax expense -4.8 -9.6 -2.7 -5.3 -6.2
Result for the period 22.5 43.8 13.1 19.4 -20.2
Attributable to: Equity holders of the parent company 21.4 42.8 12.7 19.0 -22.5 Minority interest 1.1 1.0 0.4 0.4 2.3
Basic earnings per share (EUR) for the shareholders of parent company 0.21 0.43 0.13 0.19 -0.22 Diluted earnings per share (EUR) for the shareholders of parent company 0.21 0.42 0.13 0.18 -0.22
Group balance sheet (IFRS) Unaudited Jun 30 Dec 31 Jun 30 EUR million 2008 2007 2007
ASSETS Non-current assets Goodwill 466.7 471.9 523.4 Other intangible assets 40.2 41.4 35.6 Tangible assets 763.1 799.3 853.1 Investments in associated companies 1.6 1.5 1.7 Available for sale investments 1.9 1.9 1.7 Interest bearing receivables 1.9 0.9 3.0 Deferred tax assets 13.5 13.7 17.5 Employee benefit assets 55.0 59.2 63.4 Other non-current assets 3.8 4.8 5.1 1,347.7 1,394.6 1,504.5 Current assets Inventory 354.8 348.5 374.9 Interest bearing receivables 25.4 4.6 8.4 Current tax assets 12.9 17.9 11.3 Trade and other current receivables 423.3 394.8 443.3 Cash and cash equivalents 42.8 30.8 25.9 859.2 796.6 863.8
Total assets 2,206.9 2,191.2 2,368.3
EQUITY AND LIABILITIES Share capital 358.7 358.7 358.7 Premium fund 104.7 104.7 104.7 Treasury shares -46.5 -46.5 -46.5 Translation differencies -138.8 -121.1 -106.7 Fair value and other reserves 1.3 1.4 2.0 Retained earnings 454.5 475.7 533.5 Total equity attributable to equity holders of the parent company 733.9 772.9 845.6
Minority interest 17.8 20.5 20.4 Total equity 751.7 793.4 866.0
Non-current liabilities Interest bearing liabilities 399.0 401.1 370.0 Deferred tax liabilities 41.8 38.8 63.6 Employee benefit liabilities 104.2 108.8 111.7 Provisions 57.9 60.3 50.9 Other non-current liabilities 2.3 4.3 3.9 605.2 613.3 600.1 Current liabilities Interest bearing liabilities - Current portion of long term loans 18.0 17.9 42.7 - Short term loans 362.8 365.7 421.3 Provisions 11.6 8.0 7.4 Current tax liabilities 13.8 21.1 19.4 Trade and other current liabilities 443.8 371.8 411.4 850.0 784.5 902.2
Total liabilities 1,455.2 1,397.8 1,502.3 Total equity and liabilities 2,206.9 2,191.2 2,368.3
Jun 30 Dec 31 Jun 30 2008 2007 2007
Net debt 709.6 748.5 796.7 Net debt to equity (gearing) 0.94 0.94 0.92
Changes in shareholders' equity Unaudited Attributable to equity holders of the parent company Sha Sha Trea Trans Fair Retai Total Mino Total re re sury lation value ned equity rity capi is sha diff. and earn interest tal sue res other ings pre reserves mium
EUR million Balance at Dec 31, 358.7 104.7 -46.5 -106.7 2.1 528.8 841.1 19.3 860.4 2006 Cash flow hedges Hedge result deferred to equity 1.4 1.4 1.4 Hedge result recognized in income statement -1.4 -1.4 -1.4 Translation differences 0.0 0.1 0.1 Deferred tax in equity -0.1 -0.1 -0.1 Other 3.3 3.3 3.3 changes Income and expense recognized directly in equity -0.1 3.3 3.2 0.1 3.3 Result for the period 42.8 42.8 1.0 43.8 Total recognized income and expense for the -0.1 46.2 46.1 1.1 47.1 period Dividend -42.2 -42.2 -42.2 Share-based payments 0.7 0.7 0.7 Balance at Jun 30, 358.7 104.7 -46.5 -106.7 2.0 533.5 845.6 20.4 866.0 2007
Balance at Dec 31, 2007 358.7 104.7 -46.5 -121.1 1.4 475.7 772.9 20.5 793.4 Cash flow hedges Hedge result deferred to equity -0.3 -0.3 -0.3 Hedge result recognized in income statement -3.0 -3.0 -3.0 Hedge result transferred to carrying amount of hedged items 3.2 3.2 3.2 Translation differences -17.7 -17.7 -3.8 -21.5 Deferred tax in equity 0.0 0.0 0.0 Other changes -0.8 -0.8 -0.8 Income and expense recognized directly in equity -17.7 -0.1 -0.8 -18.6 -3.8 -22.4 Result for the period 21.4 21.4 1.1 22.5 Total recognized income and expense for the period -17.7 -0.1 20.6 2.8 -2.7 0.1 Dividend -42.2 -42.2 -42.2 Share-based payments 0.4 0.4 0.4 Balance at Jun 30, 2008 358.7 104.7 -46.5 -138.8 1.3 454.5 733.9 17.8 751.7
Group cash flow statement (IFRS) Unaudited H1 H1 Q2 Q2 Q1-Q4 EUR million 2008 2007 2008 2007 2007
Result for the period* 22.5 43.8 13.1 19.4 -20.2 Adjustments* 72.4 74.2 41.5 40.6 243.2 - Depreciation, amortization 46.2 49.1 23.1 24.6 203.3 and impairment* - Gain on equity of -0.3 -0.2 -0.3 -0.1 -0.4 minorities* - Gain/loss from disposal of -0.5 0.3 -0.5 0.1 -8.1 assets* - Financial expense/-income* 20.0 20.3 11.4 11.2 42.5 - Income tax expense* 4.8 9.6 2.8 5.2 6.2 - Other adjustments, 2.2 -4.9 5.0 -0.4 -0.3 operational* Change in inventory* -14.7 -31.0 7.3 3.7 -14.8 Change in non-interest -21.5 -48.5 -13.2 -28.9 -3.7 bearing receivables* Change in non-interest 62.8 1.1 62.9 3.0 -38.5 bearing payables* Dividends received* 0.2 0.3 0.1 0.2 0.9 Interest received* 0.9 0.7 0.1 0.1 1.3 Interest paid* -20.5 -20.6 -10.5 -8.4 -42.7 Other financial expense and 2.7 0.4 0.7 0.6 -1.1 income* Taxes paid* -3.0 -7.6 -1.5 -5.6 -18.6 Net cash flows from 101.8 12.8 100.5 24.7 105.8 operating activities
Capital expenditure* -31.3 -57.1 -17.8 -31.5 -147.9 Proceeds from selling fixed 2.0 1.6 1.8 0.5 14.3 assets* Proceeds from long-term 1.2 0.5 0.2 0.0 7.2 deposits Payment of long-term -2.2 -1.5 -1.8 -1.5 -6.1 deposits Proceeds from short-term 5.0 0.5 0.3 0.0 11.5 deposits Payment of short-term -25.7 -3.9 -22.6 -3.8 -11.0 deposits Net cash flows from -51.0 -59.9 -39.9 -36.3 -132.0 investing
Proceeds from long-term 156.0 240.2 27.3 75.4 520.2 borrowings Repayment of long-term -158.0 -187.3 -14.4 -18.3 -434.4 borrowings Proceeds from short-term 1,450.6 1,568.6 601.5 876.8 2,987.4 borrowings Repayment of short-term -1,443.8 -1,528.7 -630.0 -879.3 -2,995.0 borrowings Dividends paid -42.2 -42.2 -42.2 -42.2 -42.2 Net cash flows from -37.4 50.6 -57.8 12.4 36.0 financing
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. Except for accounting policy changes listed below, the same accounting policies have been applied in the interim financial statements as in annual financial statements for 2007.
Interim report is unaudited.
Changes in accounting principles
The Group has adopted the following IFRS standards and interpretations considered applicable to Huhtamaki, with effect from January 1, 2008:
- IFRS 8 Operating segments. IFRS 8 assumes that segment reporting reflects the Group's management and internal reporting structure. The five new segments are in line with Huhtamaki's internal management structure and will replace the former geographical segments. - IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding requirements and their Interaction. The interpretation provides guidance on assessing the amount of the surplus that can be recognized as defined benefit asset. It also explains how the pension asset or liability may be affected by a statutory or contractual minimum funding requirement.
These newly adopted standards have not had a material impact on the reported results.
Segments Segment information is presented according to the IFRS standards. Items below EBIT - financial items and taxes - are not allocated to the segments.
Net sales Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and 176.2 178.4 354.6 167.9 176.3 175.1 185.7 705.0 Films Global - Intersegment 1.7 0.9 2.6 0.8 1.2 1.0 1.2 4.2 net sales Rigid Europe 173.5 149.9 323.4 148.7 161.7 172.1 146.0 628.5 - Intersegment 1.5 1.1 2.6 1.5 1.6 1.2 1.1 5.4 net sales Molded Fiber 34.9 35.4 70.3 36.5 33.5 34.2 34.3 138.5 Europe - Intersegment 0.1 0.0 0.1 0.2 0.0 0.4 0.3 0.9 net sales Rigid and Molded Fiber Americas 154.7 132.5 287.2 143.6 153.5 166.5 142.2 605.8 - Intersegment 1.3 0.8 2.1 0.9 0.9 0.7 0.7 3.2 net sales Rigid and Molded 51.1 52.5 103.6 61.1 57.4 58.2 56.5 233.2 Fiber AOA - Intersegment 0.0 0.0 0.0 -0.2 0.1 0.1 0.1 0.1 net sales Elimination of intersegment net -4.5 -2.9 -7.4 -3.2 -3.8 -3.4 -3.4 -13.8 sales Total 590.5 548.6 1,139.1 557.8 582.4 606.1 564.7 2,311.0
Flexibles and 9.1 6.6 15.7 -0.5 11.8 12.5 14.7 38.5 Films Global (1 Rigid Europe (2 0.7 1.5 2.2 -74.3 3.5 3.3 0.2 -67.3 Molded Fiber 2.5 2.9 5.4 3.5 2.5 2.3 2.4 10.7 Europe Rigid and Molded Fiber Americas (3 15.7 9.2 24.9 -6.2 13.1 19.4 17.2 43.5 Rigid and Molded Fiber AOA (4 -1.0 -0.2 -1.2 -1.3 1.8 2.7 3.3 6.5 Other activities 0.0 0.0 0.0 0.3 0.5 -4.5 -0.1 -3.8 Total (5 27.0 20.0 47.0 -78.5 33.2 35.7 37.7 28.1
1) Q4 2007 includes goodwill impairment charges MEUR 8.3. 2) H1 and Q2 2008 include restructuring charges MEUR 6.8, Q4 2007 includes restructuring charges MEUR 1.4, goodwill impairment charges MEUR 31.6 and tangible asset impairment charges MEUR 46.0. 3) Q4 2007 includes goodwill impairment charges MEUR 5.1 and tangible asset impairment charges MEUR 11.8. 4) Q4 2007 includes restructuring charges MEUR 2.3 and goodwill impairment charges MEUR 1.6. 5) Q4 2007 includes restructuring charges MEUR 3.7, goodwill impairment charges MEUR 46.6 and tangible asset impairment charges MEUR 57.7, total amount MEUR 108.0.
Flexibles and Films Global 6.1 5.9 12.0 6.3 5.7 5.8 5.2 23.0 Rigid Europe 6.9 7.0 13.9 7.7 8.5 7.8 8.2 32.2 Molded Fiber Europe 1.9 1.9 3.8 1.8 1.9 1.9 1.9 7.5 Rigid and Molded Fiber Americas 5.0 5.0 10.0 5.6 5.8 5.9 6.0 23.3 Rigid and Molded Fiber AOA 3.0 3.1 6.1 3.1 3.0 3.0 2.9 12.0 Other activities 0.2 0.2 0.4 0.2 0.2 0.2 0.3 0.9 Total 23.1 23.1 46.2 24.7 25.1 24.6 24.5 98.9
Net assets allocated to the segments (6 Q2 Q1 Q4 Q3 Q2 Q1 EUR million 2008 2008 2007 2007 2007 2007
Flexibles and Films Global 513.9 526.7 542.9 547.7 528.0 513.9 Rigid Europe 378.2 399.9 407.6 494.0 502.9 494.4 Molded Fiber Europe 121.8 121.5 119.1 118.7 116.4 116.1 Rigid and Molded Fiber Americas 403.3 413.1 417.1 456.9 478.6 474.2 Rigid and Molded Fiber AOA 189.5 188.0 201.3 204.5 209.3 197.1
6) Net assets include the following balance sheet items: intangible and tangible assets, other non-current assets, inventories, trade and other current receivables (excluding accrued interest income), other non-current liabilities and trade and other current liabilities (excluding accrued interest expense).
Capital expenditure Q2 Q1 H1 Q4 Q3 Q2 Q1 Q1-Q4 EUR million 2008 2008 2008 2007 2007 2007 2007 2007
Flexibles and Films Global 9.6 6.8 16.4 15.3 15.1 12.6 8.6 51.6 Rigid Europe 3.2 2.2 5.4 9.8 8.6 7.9 9.5 35.8 Molded Fiber Europe 0.4 0.6 1.0 7.3 0.8 0.8 0.8 9.7 Rigid and Molded Fiber Americas 2.9 1.3 4.2 15.7 6.0 3.3 1.9 26.9 Rigid and Molded Fiber AOA 1.8 1.8 3.6 6.4 4.8 6.6 4.5 22.3 Other activities 0.0 0.7 0.7 0.9 0.1 0.3 0.3 1.6 Total 17.8 13.5 31.3 55.4 35.4 31.5 25.6 147.9
Flexibles and Films 14.3 7.2 21.5 7.2 -18.9 9.6 -4.0 -6.1 Global Rigid Europe 30.2 1.1 31.3 17.2 16.2 -7.7 -7.7 18.0 Molded Fiber Europe 3.9 1.6 5.5 5.1 1.5 4.0 1.2 11.8 Rigid and Molded Fiber Americas 27.5 -2.5 25.0 25.6 21.9 9.7 -3.2 54.0 Rigid and Molded Fiber AOA 4.7 3.8 8.5 -0.8 0.5 -3.1 -5.8 -9.2
*) In 2007 operating cashflow calculations the FX translation has been changed.
As net sales and EBIT of reportable segments form Groups' total net sales and EBIT, reconciliations to corresponding amounts are not presented.
Other information H1 H1 Q1-Q4 EUR million 2008 2007 2007
Equity per share (EUR) 7.31 8.42 7.70 ROE, % -5.3 9.6 -2.4 ROI, % 0.2 9.1 1.8 Personnel 15,373 15,129 15,092 Result before taxes (12m roll.) -40.1 94.0 -14.0
Depreciation 42.5 46.2 92.9 Amortization of other intangible assets 3.7 2.8 6.0
Share capital and shareholders
At the end of the reporting period, the Company's registered share capital was EUR 358,657,670.00 (unchanged) corresponding to a total number of outstanding shares of 105,487,550 (unchanged) including 5,061,089 (unchanged) Company's own shares. The Company's own shares had the total accountable par of EUR 17,207,702.60, representing 4.8% of the total number of shares and voting rights. The amount of outstanding shares net of Company's own shares was 100,426,461 (unchanged).
There were 22,120 (21,025) registered shareholders at the end of June 2008. Foreign ownership including nominee registered shares accounted for 22.8% (27.3%).
Share developments
The Company's share is quoted on the OMX Nordic Exchange Helsinki on the Nordic Mid Cap list under the Materials sector. At the end of June 2008, the Company's market capitalization was EUR 573.9 million (EUR 1,310.2 million) and EUR 546.3 million (EUR 1,247.3 million) excluding Company's own shares. With a closing price of EUR 5.44 (EUR 12.42) the share price decreased by 33% (0%) from the beginning of the year, while the OMX Helsinki CAP PI Index decreased by 20% (+13%). In January-June 2008, the volume weighted average price for the Company's share was EUR 6.97 (EUR 13.14). The highest price paid was EUR 8.36 on January 2, 2008 and the lowest price paid was EUR 5.20 on June 23, 2008.
During the reporting period the cumulative value of the Company's share turnover was EUR 397.3 million (EUR 703.8 million). The trading volume of 57.0 million (53.6 million) shares equaled an average daily turnover of EUR 3.2 million (EUR 5.7 million) or, correspondingly 455,689 (432,116) shares. In total, turnover of the Company's 2003 A, B and C option rights was EUR 401,818, corresponding to a trading volume of 437,807.
Contingent liabilities Jun 30 Dec 31 Jun 30 2008 2007 2007 EUR million
Earnings per share = Result before taxes - minority interest - taxes / Average number of shares outstanding
Earnings per share (diluted) = Diluted result before taxes - minority interest - taxes / Average fully diluted number of shares outstanding
Net debt to equity (gearing) = Interest bearing net debt / Equity + minority interest (average)
RONA, % = 100 x Earnings before interest and taxes (12 m roll.) / Net assets (12 m roll.)
Operating cash flow = Ebit + depreciation and amortization (including impairment) - capital expenditures + disposals +/- change in inventories, trade receivables and trade payables Shareholders' equity per share = Equity / Issue-adjusted number of shares at period end
Return on equity (ROE) = 100 x (Result for the period) / Equity + minority interest (average)
Return on investment (ROI) = 100 x (Result before taxes + interest expenses + net other financial expenses) / Balance sheet total - Interest-free liabilities (average)
