AI assistant
Raute Oyj Earnings Release 2020
3335_er_2021-02-12_2e6ca1d7-1ad0-4cbf-9fd5-d560ff46036f.pdf
Earnings Release
Open in viewerOpens in your device viewer
Financial Statement Release
20 20
RAUTE CORPORATION – FINANCIAL STATEMENTS RELEASE JANUARY 1–DECEMBER 31, 2020
- The Group's net sales amounted to EUR 115.0 million (MEUR 151.3), down 24% on the comparison period. Order intake was EUR 119 million (MEUR 148). The order book at the end of the year, EUR 94 million (MEUR 88), was strong, however.
- Operating result amounted to EUR –1.9 million (MEUR 8.5), down 121%. The result before taxes was EUR –1.5 million (MEUR 9.3) and result for the financial year was EUR –0.9 million (MEUR 7.7).
- Undiluted earnings per share were EUR –0.21 (EUR 1.80) and diluted earnings per share were EUR –0.21 (EUR 1.79).
- Fourth-quarter net sales amounted to EUR 38.9 million and the operating result was EUR +0.8 million. Order intake was EUR 70 million.
- The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.80 (EUR 1.45) per share be paid for the financial year 2020.
TAPANI KIISKI, PRESIDENT AND CEO: IMPROVEMENTS SEEN TOWARDS THE END OF THE YEAR AS THE PANDEMIC CONTINUED
Our fourth-quarter net sales were the highest during the year under review. The result fell short of our target, however, and was not enough to make up for the losses of the first half of the year and bring the full year into positive territory. Our net sales were lower than our targets, due largely to the more difficult delivery of installation supervision and commissioning and maintenance services caused by the travel restrictions, which are still in effect. In our North American locations, we were forced to continue our adaptation measures for several weeks. In this respect, the situation in our locations in Finland and China was better.
Since spring, the uncertainty caused by the coronavirus pandemic continued to have a strong impact on our customers' investment decisions and thus on our order intake. Q1's relatively good order intake included orders that had, for the most part, been negotiated almost fully before the start of the coronavirus crisis. In Q2 and Q3, many of our customers put off their plans and orders, based on the uncertainty of their market situations. The number of actual cancellations was low, however, so when the situation settles, I anticipate that the postponed projects may restart, perhaps even at short notice.
In early October, we successfully concluded long and, due to the circumstances, exceptional negotiations and confirmed an order worth almost EUR 55 million to Russia. As a result, our outlook for 2021 became much clearer and our order book is still strong. In Russia, demand and project planning is even more active. China was the only market area in which activity has returned to a somewhat normal level. Our mill in China was operating normally and our customers' projects continued to move forward. Project preparation is also active in Europe and North America, but decision-making is exceptionally uncertain.
As we have consolidated in our main locations the kind of expertise that is often required for special maintenance, project installation supervision and commissioning, the travel restrictions inconvenienced us and our customers globally. In spite of this, we successfully carried out a variety of these services with the help of remote work arrangements. I expect that these restrictions will unfortunately persist, which is why we will increase our local resources. We will furthermore increase our focus on providing these services remotely, and this applies to both tools and expertise. The overall impact of the coronavirus pandemic on our net sales and especially our operating profit can still be described as substantial.
Due to the pandemic, our markets have developed more and more in a direction that we have anticipated. This underscores the importance of our strategic goals – growing the emerging market share, developing the technology service business and investing in digitalization. We will thus continue to focus on these areas. Our strong balance sheet, market position and long-standing customer accounts are important competitive advantages and enablers of this type of long-term work. We will succeed in this together with our personnel, customers and other partners, and we will come out of this crisis even stronger as the leading company in our industry.
I would like to express my sincerest thanks for the past year to Raute's customers for their invaluable cooperation and trust, to our personnel for their good work and strong commitment in extraordinary circumstances, to our shareholders for their continued confidence in us, and to all our other partners for their contribution to helping Raute adapt to a rapidly changing operating environment.
FOURTH QUARTER OF 2020
Order intake and order book
The order intake in the fourth quarter was EUR 70 million (MEUR 17), which included a mill delivery to Russia valued at EUR 55 million.
Technology services accounted for EUR 12 million (MEUR 13) of the order intake.
The order book increased during the last quarter by EUR 31 million, amounting to a strong EUR 94 million at the end of the period (MEUR 88).
Net sales
Fourth-quarter net sales were at a good level, amounting to EUR 38.9 million (MEUR 39.3). Technology services accounted for EUR 10.3 million (MEUR 15.2) and 26 percent (39%) of the quarter's net sales. Technology services' exceptionally low net sales were due to the lack of some larger modernization projects during the period.
Result and profitability
Operating profit in the fourth quarter was EUR 0.8 million positive (MEUR 1.8 positive) and accounted for 2.2 percent (4.6%) of net sales. The result was weakened by larger-than-expected inventory write-downs in our Chinese and Russian locations, as well as the postponement of final approvals on a few projects due to the travel restrictions.
The result was EUR 1.4 million positive (MEUR 2.3). Undiluted earnings per share were EUR 0.33 (EUR 0.53) and diluted earnings per share were EUR 0.33 (EUR 0.53).
RAUTE CORPORATION – FINANCIAL STATEMENTS RELEASE JANUARY 1 – DECEMBER 31, 2020
BUSINESS ENVIRONMENT Market situation in customer industries
Raute's customers in the veneer, plywood and LVL (Laminated Veneer Lumber) industries are engaged in the manufacture of wood products used in investment projects and are thus highly affected by fluctuations in construction, housing-related consumption, international trade, and transportation. We expect that the trend-like growth in wood construction will create demand for our customers and indirectly for Raute, strengthening our long-term growth opportunities.
In the fourth quarter, the situation and outlook in the global economy and the financial markets remained weak. Before the start of the pandemic, we had estimated that the market situation had improved slightly. Soon after the pandemic broke out, the situation took a clear turn for the worse and, so far, has not taken a new turn for the better. We do not expect the situation to improve significantly before the pandemic is under control. The start of vaccinations has created positive expectations, but it is still difficult to assess the realization of those expectations.
Demand for wood products technology and technology services
Many of Raute's established and traditional customers have invested heavily in recent years. During the past year, this traditional customer base has mostly returned to lower investment volumes. The measures to contain the coronavirus crisis have further slowed down the implementation and decision-making involved in the investments of this traditional customer base in particular. As a result, demand for our technology continued to shift towards new customers, although a major transaction that took place in the Russian market also indicated a pick-up in investments by our more traditional customer base.
Overall, investment activity among Raute's customers weakened from what it has been in recent years, and the weakening was intensified by the spread of the coronavirus pandemic and its countermeasures. Despite the market conditions, we are not satisfied with the volume of new orders received during the review period.
In Russia, demand remained active. However, forecasting the realization and timing of projects is more difficult than before. The coronavirus pandemic had a particularly strong impact on the emerging markets of Asia and South America, and the markets practically came to a halt. China was the only exception. Following the break caused by the pandemic countermeasures, demand in China has recovered rapidly and planned projects have been picked up again. Project planning was active in Europe and North America, but decision-making was slow and uncertain.
Demand for maintenance and spare parts services remained good, which is an indication of the generally good capacity utilization rates of Raute's customers' production plants. In Finland, the industrial actions at our customers' plants caused a temporary lull in demand for spare parts and maintenance services at the start of the year. After this, the travel restrictions resulting from the pandemic have prevented us from carrying out the majority of our maintenance services as planned.
ORDER INTAKE AND ORDER BOOK
Raute serves the wood products industry with a full-service concept that is based on technology solutions covering the customer's entire production process and services throughout their life cycle. Raute's business consists of project deliveries and technology services. Project deliveries encompass projects from individual machine or production line deliveries to deliveries of all the machines and equipment belonging to a mill's production process. Additionally, Raute's full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations, as well as consulting, training, reconditioned machinery and digital services.
The uncertainty and weakening of the market situation are reflected in the volume of new orders Raute has received. The order intake for 2020 was only EUR 119 million (MEUR 148). One of our biggest successes in 2020 was the booking of a contract with the Russian company Plitwood for the production machinery for their plywood mill in the making. The value of the order was some EUR 55 million, making it one of the biggest single orders in Raute's history. In the emerging markets, we closed a deal with Guoxu-Springwood Wood Panel Company on the first modern technology delivery for China's plywood industry.
Of new orders, 62 percent came from Russia (60%), 19 percent from Europe (14%), 10 percent from North America (12%), 5 percent from Asia-Pacific (6%) and 4 percent from South America (8%). Sometimes even strong fluctuations in the distribution of new orders between the various market areas are typical for project-focused business. The fourth quarter accounted for EUR 70 million of the order intake.
Order intake in technology services amounted to EUR 38 million (MEUR 50), down 24 percent from the comparison period, due to the low number of large modernization orders.
At the end of 2020, the order book, EUR 94 million (MEUR 88), remained strong. The majority of the order book has already been scheduled for 2021 and a small portion for 2022.
COMPETITIVE POSITION
Raute's competitive position has remained unchanged and is strong. Raute's solutions help customers in securing their delivery and service capabilities throughout the life cycle of the production process or a part thereof. In such investments, the supplier's overall expertise and extensive and diverse technology offering play a key role. The competitive edge provided by Raute plays a major role when customers select their cooperation partners. Raute's strong financial position and long-term dedication to serving selected customer industries also enhance its credibility and improve its competitive position as a company that carries out long-term investment projects.
NET SALES
The Group's net sales in 2020 amounted to EUR 115.0 million (MEUR 151.3). Net sales declined by 24 percent in 2019. The dramatic decline in net sales was expected and caused by a low order intake, the planned timing of the order book and the impacts of the pandemic.
Net sales were generated by project deliveries related to the wood products technology business and by technology services.
Net sales for project deliveries totaled EUR 75 million (MEUR 86), down 13 percent from the previous year. Project deliveries accounted for 65 percent (57%) of total net sales. The plywood industry's share of the net sales of project deliveries was 99.7 percent (85%), while the LVL industry's share was 0.3 percent (15%).
Net sales for technology services totaled EUR 40 million (MEUR 66), a decrease of 39 percent from the previous year. Technology services' share of the total net sales fell to 35 percent (43%) due to the low number of larger modernization projects and the pandemic-related delivery challenges.
Of the total net sales for 2020, Russia accounted for 55 percent (31%), Europe for 22 percent (34%), North America for 11 percent (18%), South America for 7 percent (9%), and Asia-Pacific for 5 percent (8%).
RESULT AND PROFITABILITY
In 2020, the Group's operating profit was EUR 1.9 million negative (MEUR 8.5 positive) and -1.6 percent of net sales (5.6%). Operating profit fell 121 percent largely due to a decline in net sales. The restrictions that were introduced on travel and our Chinese and North American plants' operations due to the Covid-19 pandemic also caused our result to fall more than expected as the pandemic persisted. In addition, previously reported investments in product development, marketing and digitalization also lowered our result.
The Group's financial income and expenses totaled EUR +0.3 million (MEUR +0.8). The result before taxes was EUR 1.5 million negative (MEUR 9.3) and the result for the reporting period was EUR 0.9 million negative (MEUR 7.7). The Group's comprehensive income was EUR 2.7 million negative (MEUR 9.3).
Undiluted earnings per share were EUR -0.21 (EUR 1.80) and diluted earnings per share were EUR -0.21 (EUR 1.79). The return on investment was -2.5 percent (18.1%) and return on equity -2.0 percent (16.0%).
CASH FLOW AND BALANCE SHEET
The Group's financial position remained good throughout the year. At the end of the financial year, the Group's cash and cash equivalents exceeded interest-bearing liabilities by EUR 3.9 million (MEUR 12.3). At the end of the financial year, gearing was -10 percent (-28%). At the end of the financial year, the equity ratio was 59 percent (63%).
The Group's cash and cash equivalents amounted to EUR 11.6 million (MEUR 22.4) at the end of 2020. The change in cash and cash equivalents in the financial year was EUR 10 million negative. Operating cash flow was EUR 2.0 million positive (MEUR 18.6 positive). Cash flow from investment activities was EUR 4.8 million negative (MEUR 3.2 negative). Cash flow from financing activities was EUR 7.3 million negative (MEUR 6.5 negative), including dividend payments of EUR 6.2 million.
The Group's balance sheet total stood at EUR 86.3 million (MEUR 90.7) at the end of 2020. Fluctuations in balance sheet working capital items and the key figures based on them are due to differences in the timing of customer payments and the cost accumulation from project deliveries, which is typical of the project business.
Interest-bearing liabilities amounted to EUR 7.7 million (MEUR 8.4) at the end of 2020. This sum consists mainly of liabilities for right-of-use assets.
The parent company Raute Corporation has a EUR 10 million commercial paper program, which allows the company to issue commercial papers maturing in less than one year.
The parent company Raute Corporation is prepared for future working capital needs and has long-term credit facility agreements with four Nordic banks totaling EUR 23.0 million. The main covenants of the credit facilities are an equity ratio of >30% and gearing of <100%. Of the credit facilities, EUR 23.0 million remained unused at the end of the financial year.
LOANS TO RELATED PARTIES AND OTHER LIABILITIES
Liabilities are presented in the figures section of this report.
EVENTS DURING THE REPORTING PERIOD
Raute Corporation published stock exchange releases on the following events in 2020:
February 12, 2020 New plan for Raute's senior management long-term incentive plan, LTI 2020–2022, commences April 24, 2020 Raute's profit outlook for 2020 weakened June 15, 2020 Raute to initiate cooperation negotiations June 16, 2020 Raute Corporation strengthens its knowhow in digitalization by acquiring majority holding in Hiottu Oy June 23, 2020 Cooperation negotiations concluded at Raute October 16, 2020 Raute received orders worth approximately EUR 55 million to Russia.
In June, a solar power plant was started up at Raute's main production plant in Lahti. Its electricity output is expected to supply 30% of a typical workday's electricity consumption at the Lahti plant.
RESEARCH AND DEVELOPMENT
Raute is a leading technology supplier for the plywood and LVL industries and focuses strongly on the development of increasingly efficient, productive, safe and environmentally friendly manufacturing technology and supporting measurement and machine vision applications. Opportunities provided by digitalization are also an essential part of R&D activities.
In 2020, the Group's research and development costs totaled EUR 4.6 million (MEUR 4.4), representing 4.0 percent of net sales (2.9%).
INVESTMENTS
The Group's investments in 2020 totaled EUR 5.2 million (MEUR 3.0). The investments include EUR 0.4 million in capitalized development costs (MEUR 0.2). The most important investments in 2020 were targeted to our digitalization efforts, in line with our strategy. We acquired a majority share of Hiottu Oy in June, and we launched an IT project covering the renewal of nearly all of our operative systems.
DEVELOPMENT OF OPERATIONS
Our management model that was revamped in 2019 was successfully launched during the year under review. The main objective of the renewal is to respond to our customers' new expectations, while enhancing the implementation of our strategy and helping us to achieve our growth targets. After the renewal, our business was divided into four areas based on different customer needs: Power market, Growth market, Basic services and Metrix. The contents of these business areas are presented in more detail on our website www.raute.com. The implemented organizational change and the designation of business areas do not impact Raute's segment reporting. Raute's entire business still consists of a single segment serving the wood products industry.
Our goal is to become the preferred supplier for a growing number of customers in more and more market areas, as well as in the emerging markets, and to maintain our strong position in the developed markets.
Raute is the leading technology supplier in the wood products sector, and digital solutions play a crucial role in our strategy. We continuously develop new digital solutions such as machine vision and other analyzers, as well as systems to enable remote monitoring and control in order to add value to our customers' processes and to enable them to thrive. By digitalizing our own processes, we can increase the efficiency of our operations and improve quality.
HUMAN RESOURCES
The Group's headcount at the end of 2020 was 751 (778). Finnish Group companies accounted for 66 percent (67%) of employees, North American companies for 16 percent (17%), Chinese companies for 11 percent (10%), and other sales and maintenance companies for 7 percent (6%).
Converted to full-time employees ("effective headcount"), the average number of employees was 743 (761) during the financial year. Salaries and remunerations paid by the Group totaled EUR 34.0 million (MEUR 38.4). This figure does not include expenses resulting from the share incentive plans.
In 2020, Raute Group received direct financial aid in the amount of EUR 1.3 million aimed at mitigating the impacts of the Covid-19 pandemic; EUR 0.8 million of the support was granted by Canada, and EUR 0.5 by Finland. Thanks to this financial support, we were able to avoid extensive adjustment measures, retain our skilled employees and continue with our planned development projects in order to secure our future competitiveness.
The Group continued to develop the competence of its personnel and increase their commitment to the company. Three percent (3%) of the payroll was invested in personnel training. In 2020, our key focal areas in HR development were the improvement of leadership and the organization-wide strengthening of our highly responsible operating culture that strives for first-class quality. Competence-development activities were implemented through, among other things, a systematic mentor program and training organized based on identified needs. Use of the RauteACADEMY online learning environment was expanded further.
REMUNERATION
The Annual General Meeting approved, on March 31, 2020, the Remuneration Policy for Governing Bodies proposed by the Board of Directors.
The Group has remuneration systems in place that cover the entire personnel.
SHARE-BASED INCENTIVE PLANS
The impact of the share-based incentive plans on the result for the financial year was EUR 118 thousand positive (EUR 211 thousand negative). During the financial year, the estimate of earned shares changed, and the conditions of two of the programs were not met. The amount entered in previous financial periods as a cost has been adjusted in the income statement for the current financial period. EUR 85 thousand (EUR 331 thousand) was allocated to the equity item "Other reserves" from the share-based incentive plans in force at the end of the financial year.
Share-based incentive plan 2017–2022
In February 2017, the Board of Directors of Raute Corporation resolved to implement a new performance-based, share-valuebased, long-term incentive plan for the Group's senior management. The purpose of the plan is to align the objectives of the owners and management in order to develop the company's value, and to commit management to achieving the company's strategic goals by offering a competitive long-term incentive plan.
The Performance Share Plan is made up of three three-year plans that begin every year. A single plan may consist of either a three-year earnings period or a one-year earnings period and the subsequent two-year vesting period. The possible bonus earned by virtue of a single plan shall be paid at the end of the three-year plan in question. The earnings opportunity is limited such that the value of the bonus, at the time of payment, to be paid to a participant based on a single three-year plan can be no more than double the value of the maximum earnings opportunity allocated to him/her when the plan commenced.
The company's Board of Directors decides separately on when each plan commences, the length of its earnings period, the performance targets, the persons entitled to participate in the plan and the earnings opportunity.
LTI Plan 2018–2020 commenced at the start of 2018. The plan is made up of two parts. The first part consists of a three-year earnings period. Its weight is 80 per cent of the whole plan and the performance target is Total Shareholder Return (TSR) proportionate to the selected peer group. The second part consists of a one-year earnings period and the subsequent two-year vesting period. Its weight is 20 per cent of the whole plan and the performance target is Earnings Per Share (EPS). Any rewards based on both parts will be paid in the spring of 2021 if the performance targets set by the Board of Directors are achieved. Eight persons belonging to Raute Group's senior management, including the members of the Executive Board, were entitled to participate in the LTI 2018–2020 plan.
LTI Plan 2019–2021 commenced at the start of 2019. The plan consists of two parts. The first part consists of a three-year earnings period. Its weight is 50 per cent of the whole plan and the performance target is Total Shareholder Return (TSR) proportionate to the selected peer group. The second part consists of a one-year earnings period and the subsequent twoyear vesting period. Its weight is 50 per cent of the whole plan and the performance target is Earnings Per Share (EPS). Any rewards based on both parts will be paid in the spring of 2022 if the performance targets set by the Board of Directors are achieved. Ten persons belonging to Raute Group's senior management, including the members of the Executive Board, are entitled to participate in the LTI 2019–2021 plan.
LTI Plan 2020–2022 commenced at the start of 2020. The plan consists of two parts. The first part consists of a threeyear earnings period. Its weight is 50 per cent of the whole plan and the performance target is Total Shareholder Return (TSR) proportionate to the selected peer group. The second part consists of a one-year earnings period and the subsequent two-year vesting period. Its weight is 50 per cent of the whole plan and the performance target is Earnings Per Share (EPS). Any rewards based on both parts will be paid in the spring of 2023 if the performance targets set by the Board of Directors are achieved. Eleven persons belonging to Raute Group's senior management, including the members of the Executive Board, are entitled to participate in the LTI 2020–2022 plan.
SOCIETY AND THE ENVIRONMENT
Responsibility is one of the values that guide Raute's operations. Raute aims to systematically develop its products and services to be environmentally sound while also reducing the environmental impacts of its own operations. The Group abides by the principles of good corporate citizenship, taking into consideration nature and its protection, and how society as a whole operates, while respecting local cultures and valuing diversity. Raute's Board of Directors has presented to the company the Code of Conduct which guides the personnel to act responsibly in accordance with Raute's values.
We want to help our customers create value in forest assets through our resource-efficient technology and supporting services. Most of the products manufactured using our machinery are recyclable and the carbon stored in wood products has positive climate impacts. Increasing the use of sustainably produced wood in construction, for example, is among the most important means of achieving global climate targets.
Continuously improving work safety is one of the key points in our corporate responsibility agenda. In 2020, Raute's LTIF indicator (Lost Time Injury Frequency, i.e. lost-time injuries per million hours worked) developed positively, and we reached a figure of 7.9 (13.6).
SEASONAL FLUCTUATIONS IN BUSINESS
The Group's net sales and working capital fluctuate every quarter due to different types of project deliveries and their schedules. Business operations do not involve regular seasonal changes.
RISKS AND RISK MANAGEMENT
The Group's identified key risk areas relate to the nature of the business, the business environment, financing, damage or loss and information security. The fluctuations in demand resulting from economic cycles and delivery and technology risks have been identified as the Group's most significant business risks.
Risks in the near term continue to be driven by the uncertainty relating to the global economic situation and the development of the financial markets, as well as by international political instability. The most significant risks for Raute in the near term are related to the development of the market situation.
Restrictions resulting from the pandemic caused by the coronavirus will have a negative impact on Raute's outlook also in the future, but the extent and duration of the impact are still impossible to assess.
The Group has no ongoing legal proceedings or other disputes in progress that might materially affect the continuity of business operations, nor is the Board of Directors aware of any other legal risks related to the Group's operations that might have such an effect.
Business risks
Impact of economic cycles on business operations
Raute's business operations are characterized by the sensitivity of investment demand to fluctuations in the global economy and the financing markets, and the cyclical nature of investment commodities' project business. The impact of changes in demand on the Group's result is reduced by increasing the share of technology services, increasing operations in market areas with a small current market share, developing products for customer segments in which the Group has a weaker market position, and developing the partner network.
Deliveries and technology
The bulk of Raute's business operations consists of project deliveries, which expose the company to risks caused by customer-specific customized solutions related to each customer's end product, production methods or raw materials. At the quotation and negotiation phase, the company has to take risks relating to the promised performance figures and make estimates of implementation costs.
Raute invests heavily in product development. The developmental phase for new technologies involves the risk that the project will not lead to a technologically or commercially acceptable solution. The functionality and capacity of new solutions produced as a result of development work cannot be fully verified until the solutions can be tested under production conditions in conjunction with the first customer deliveries.
Contract, product liability, implementation, cost and capacity risks are managed using project management procedures that comply with the company's ISO-certified quality system. Technology risks are reduced by the conditions of delivery contracts and by restricting the number of simultaneous first deliveries.
Emerging markets
Raute's objective is to increase its local business, for example, in China and Russia, where, besides opportunities, companies face risks typical to emerging markets.
The company's reputation
Raute is at risk of being part of a business chain that involves corruption, bribery or money laundering without its knowledge, even though it regularly inspects its business partners with respect to, for example, international sanction lists and export restrictions. The realization of these risks may result in legal consequences, and the company's reputation and financial position may suffer.
It is possible that players who do not respect Raute's principles related to human rights or the basic rights of employees operate in the international supply chain. Such cases may damage the company's reputation and interrupt the supply chain if the infraction is severe enough to warrant an end to the co-operation.
Payment fraud
Raute is repeatedly exposed to the risk of payment fraud. The company faces the risk of a fraud attempt bypassing the payment transaction control points and damaging the company financially.
Information security
Information security risks are managed according to a defined information security policy.
Human resources
Competence retention and development and ensuring the sufficiency of human resources are particularly important in cyclical business. Continuity is ensured by monitoring the development of the age structure, implementing systematic human resources management and investing in well-being at work.
Financing risks
The most significant financing risks in the Group's international business operations are default risks and currency risks related to counterparties. The Group is also exposed to liquidity, refinancing, interest rate and price risks.
The default risk relating to customers' solvency is managed through payment terms and by covering the unpaid sum with bank guarantees, letters of credit or other suitable securities. The Group's liquid assets are mainly held in banks in the Nordic countries. The credit losses recognized during the 2020 financial year amounted to EUR 13 thousand (EUR 0 thousand).
The Group's main currency is the euro. The most significant currency risks result from the following currencies: Chinese yuan (CNY), Russian ruble (RUB), Canadian dollar (CAD) and US dollar (USD). The main hedging instruments used are foreign currency forward contracts. Currency clauses are included in quotations to hedge against currency risks during the quotation period. Depending on the case, currency risks related to preliminary sales contracts are hedged with currency option contracts.
The Group has prepared for fluctuating working capital requirements and possible disturbances in the availability of money through long-term credit facility agreements with four Nordic banks.
Risks of damage or loss
Other risks of damage or loss include occupational safety risks, which are managed by means of active risk-prevention measures, such as continuous personnel training and investigation of all near-miss situations. Occupational safety and ergonomics are under continuous development.
Raute's most significant single risks concerning material damage and business interruption loss are a fire, a serious machine breakdown and an IT system breakdown or malfunction at the main production unit in Lahti, where the production, planning, financial, and ERP systems serving the Group's key technologies are centrally located. Precautions against such risks have been taken by means of back-up systems and insurance policies, but, despite precautions, the serious realization of such a risk would cause significant damage to Raute's operations.
Raute's production operations do not have significant direct environmental impacts. The main production unit in Lahti is situated in a groundwater zone. A chemical or fuel leak in a groundwater zone could cause environmental damage, financial costs and disturbances in production. The main unit in Lahti has an ISO-certified environmental system in place, and special attention has been paid to chemical safety. Other units also aim to adhere to the principles of the environmental system.
The Group hedges against risks of damage or loss by assessing its facilities and processes in terms of risk management and by maintaining emergency plans.
Global and local insurance programs are checked regularly as part of overall risk management. The objective is to use insurance policies to sufficiently hedge against all risks that are reasonable to handle through insurance due to economical or other reasons.
Organization of risk management
Raute's risk management policy is approved by the Board of Directors. The Board is responsible for organizing internal control and risk management, and for monitoring their efficiency.
The Executive Board defines the Group's general risk management principles and operating policies and defines the boundaries of the organization's powers. The President and CEO and the CFO regularly report significant risks to the Board.
The Group's President and CEO controls the implementation of the risk management principles within the entire Group, while the Managing Directors of the Group companies are responsible for risk management in their respective companies. The members of the Group's Executive Board are responsible for their own areas of responsibility across company boundaries.
Raute has no separate internal auditing organization. The Controller function oversees the annual internal control plan, develops internal control and risk management procedures together with the operative leadership, and monitors compliance with risk management principles, operational policies and powers.
SHAREHOLDERS
The number of shareholders totaled 5,614 at the beginning of the year and 6,134 at the end of the reporting period. Series K shares were held by 54 private individuals (54) at the end of the financial year. Nominee-registered shares accounted for 2.2 percent (3.5%) of shares. The company did not receive any flagging notifications in 2020.
The Board of Directors, the President and CEO as well as the Executive Board held altogether 256,059 company shares, equaling 6.0 percent (6.1%) of all the company shares and 11.6 percent (11.6%) of the votes on December 31, 2020.
AUDITORS
At Raute Corporation's Annual General Meeting on March 31, 2020, the authorized public accounting company PricewaterhouseCoopers was chosen as auditor, with Authorized Public Accountant Markku Launis as the principal auditor.
CORPORATE GOVERNANCE
Raute Corporation's Corporate Governance Statement and remuneration report will be published at the same time as the financial statements.
CORPORATE GOVERNANCE STATEMENT
Raute Corporation's Board of Directors has reviewed Raute Corporation's Corporate Governance Statement for 2020 drawn up in accordance with chapter 7, section 7 of the Finnish Securities Markets Act and the Finnish Corporate Governance Code 2020 for listed companies issued by the Securities Market Association on September 19, 2019. The statement has been drawn up separately from the Report of the Board of Directors.
NON-FINANCIAL STATEMENT
Raute Corporation's Board of Directors has addressed Raute Corporation's non-financial statement for 2020 (in accordance with Directive 2014/95/EU of the European Parliament and Council) as a statement separate from the Report of the Board of Directors.
REMUNERATION REPORT FOR GOVERNING BODIES
Raute Corporation's Board of Directors has addressed Raute Corporation's 2020 remuneration report for governing bodies, drawn up in accordance with chapter 7, section 7 of the Finnish Securities Markets Act and the Finnish Corporate Governance Code 2020 for listed companies issued by the Finnish Securities Market Association on September 19, 2019. The remuneration report is published in connection with the financial statements.
BOARD OF DIRECTORS AND PRESIDENT AND CEO
The Annual General Meeting elects the Chairman and Vice-Chairman for the Board of Directors, and 3–5 Board members.
Ms. Laura Raitio was elected Chair of Raute Corporation's Board at the Annual General Meeting held on March 31, 2020, while Mr. Mika Mustakallio was elected Vice-Chair, and Mr. Joni Bask, Mr. Ari Harmaala, Mr. Pekka Suominen, and Mr. Patrick von Essen were elected as Board members.
The Board of Directors appoints the President and CEO and confirms the terms of his or her employment, including fringe benefits.
Mr. Tapani Kiiski, Licentiate in Technology, continued as Raute Corporation's President and CEO. He was appointed as Raute Corporation's President and CEO on March 16, 2004. As agreed in the executive contract, the term of notice is six months, and the severance pay equals twelve months' salary.
Raute Corporation's Articles of Association do not grant any unusual authorizations to the Board of Directors, or to the President and CEO.
Any decisions on changes to the Articles of Association or an increase in share capital are made in compliance with the regulations of the effective Companies Act.
EXECUTIVE BOARD
Raute Group's Executive Board and the members' areas of responsibility are:
Tapani Kiiski, President and CEO, Chairman – Sales
Kurt Bossuyt, Executive Vice President, Basic Services – Basic Services market
Marko Hjelt, Executive Vice President, CHRO – People excellence, safety
Mika Hyysti, Executive Vice President, CTO – Innovations, products and services, and R&D
Tarja Järvinen, Executive Vice President, CFO – Finance, ICT and other business support, sustainability
Timo Kangas, Executive Vice President, Power – Power market Jani Roivainen, Executive Vice President, Metrix – Metrix market Jukka Siiriäinen, Executive Vice President, Grow – Grow market Petri Strengell, Executive Vice President, COO – Supply chain and quality
SHARES
The number of Raute Corporation's shares at the end of 2020 totaled 4,263,194 (4,263,194), of which 991,161 (991,161) were series K shares (ordinary share, 20 votes/share) and 3,272,033 (3,272,033) were series A shares (1 vote/share). Series K and A shares confer equal rights to dividends and company assets.
Series K shares can be converted to series A shares under the terms set out in Article 3 of the Articles of Association. If an ordinary share is transferred to a new owner who has not previously held series K shares, the new owner must notify the Board of Directors of this in writing and without delay. In this kind of situation other holders of series K shares have the right to redeem the series K share under the terms specified in Article 4 of the Articles of Association.
Raute Corporation's series A shares are listed on Nasdaq Helsinki Ltd. The trading code is RAUTE. In 2020, the number of shares traded was 680,073 (503,305), worth altogether EUR 14.0 million (MEUR 12.4). The number of shares traded represents 21 percent (15%) of all listed series A shares. The average price of a series A share was EUR 20.57 (EUR 24.71). The highest closing price of the year was EUR 27.40 and the lowest was EUR 17.40.
The company's market capitalization at the end of 2020 totaled EUR 96.8 million (MEUR 106.6), with series K shares valued at the closing price of series A shares, EUR 22.70 (EUR 25.00), on December 31, 2020.
Other share-related information is presented in the figures section of this report.
RAUTE'S DIVIDEND POLICY
Raute exercises an active dividend policy. Its aim is to ensure competitive returns for its investors. Dividend payment takes into account future investment needs and the goal of maintaining a solid equity ratio. Due to the nature of the project business, the dividend is not directly tied to the annual result.
DISTRIBUTION OF PROFIT FOR THE 2019 FINANCIAL YEAR
The Annual General Meeting held on March 31, 2020 decided to pay a dividend of EUR 1.45 per share for the financial year 2019. The total amount of dividends is EUR 6.2 million, with series A shares accounting for EUR 4,744,447.85 and series K shares for EUR 1,437,183.45. The dividend payment date was April 9, 2020.
AUTHORIZATION OF REPURCHASE AND DISPOSAL OF OWN SHARES
The Annual General Meeting held on March 31, 2020 authorized the company's Board of Directors to decide on the repurchase of Raute Corporation series A shares with assets from the company's non-restricted equity and to decide on a directed issue of a maximum of 400,000 shares. The Board of Directors did not exercise the authorization in 2020.
The company did not possess company shares at the end of the financial period or hold them as security.
EVENTS AFTER THE FINANCIAL YEAR
Raute Corporation published stock exchange releases on the following events in 2021:
January 21, 2021 Profit warning: Raute Corporation's 2020 net sales will decrease clearly compared to 2019.
PUBLICATION OF THE FINANCIAL STATEMENTS AND ANNUAL REPORT 2020
Raute Corporation's consolidated financial statements 2020 will be published on February 12, 2021. Raute Corporation's Annual Report 2020 will be published the week of March 1st.
ANNUAL GENERAL MEETING 2021
Raute Corporation's Annual General Meeting will be held at Lahti's Sibelius Hall on Wednesday March 31, 2021, at 6:00 p.m. A shareholder who wishes to include an issue in the agenda of Raute Corporation's Annual General Meeting shall notify the company thereof in writing no later than February 19, 2021.
BOARD OF DIRECTORS' PROPOSAL CONCERNING PROFIT DISTRIBUTION, DIVIDEND EUR 0.80 PER SHARE
On December 31, 2020, the Parent Company Raute Corporation's distributable assets total EUR 33,169 thousand, of which EUR 2,674 thousand stands for the loss for the financial year of January 1 – December 31, 2020.
The Board of Directors will propose to Raute Corporation's Annual General Meeting, to be held on March 31, 2021, that a dividend of EUR 0.80 per share be paid to holders of series A and K shares for the financial year 2020, and that the remainder of distributable assets be transferred to equity.
On the date of the profit distribution proposal, the number of shares entitling to a dividend is 4,263,194 shares, which would amount to total dividends of EUR 3,411 thousand. Shareholders who are registered in the shareholders' register maintained by Euroclear Finland Ltd on the record date for dividend distribution, April 6, 2021, are entitled to dividends. The dividend payment date would be April 13, 2021.
No essential changes have taken place in the company's financial position since the end of the financial year. The company has good liquidity, and in the Board of Directors' view, the proposed dividend does not pose a risk to solvency.
OUTLOOK FOR 2021
Due to the strong order book and presumed alleviated impacts of the Covid-19 pandemic, we expect that Raute's net sales will increase in 2021 compared to the level of the previous year. We expect the operating result to improve from the previous year due to growth in net sales.
Raute Corporation's Board of Directors has on February 12, 2021 reviewed the financial statements release for January 1–December 31, 2020, and approved it to be published. According to the Finnish Companies Act, shareholders may approve or reject the financial statements at the Annual General Meeting arranged after the statements have been issued. The Annual General Meeting also has the opportunity to make changes to the financial statements.
The figures for the financial year 2020 and 2019 presented in the tables section of the financial statements release have been audited. The presented interim report figures have not been audited.
CONSOLIDATED STATEMENT OF INCOME
| 1.10.- | 1.10.– | 1.1.– | 1.1.– | |
|---|---|---|---|---|
| EUR 1,000 | 31.12.2020 | 31.12.2019 | 31.12.2020 | 31.12.2019 |
| NET SALES | 38 934 | 39 258 | 114 994 | 151 297 |
| Change in inventories of finished | ||||
| goods and work in progress | 3 992 | 208 | 3 128 | -2 030 |
| Other operating income | 85 | 170 | 201 | 343 |
| Materials and services | -27 244 | -20 852 | -64 102 | -76 081 |
| Employee benefits expense | -9 866 | -12 172 | -39 089 | -45 793 |
| Depreciation and amortization | -999 | -889 | -4 039 | -3 854 |
| Other operating expenses | -4 053 | -3 915 | -12 945 | -15 428 |
| Total operating expenses | -42 162 | -37 829 | -120 175 | -141 156 |
| OPERATING RESULT | 849 | 1 807 | -1 852 | 8 454 |
| % of net sales | 2,2 | 4,6 | -1,6 | 5,6 |
| Financial income | 96 | 777 | 736 | 1 099 |
| Financial expenses | -163 | -59 | -421 | -300 |
| Financial expenses, net | -67 | 719 | 315 | 799 |
| RESULT BEFORE TAX | 782 | 2 526 | -1 537 | 9 253 |
| % of net sales | 2,0 | 6,4 | -1,3 | 6,1 |
| Income taxes | 631 | -266 | 636 | -1 565 |
| RESULT FOR THE PERIOD | 1 412 | 2 260 | -901 | 7 687 |
| % of net sales | 3,6 | 5,8 | -0,8 | 5,1 |
| Profit for the period attributable to | ||||
| Equity holders of the Parent company | 1 412 | 2 260 | -901 | 7 687 |
| Earnings per share for profit attributable to Equity holders of |
||||
| the Parent company, EUR | ||||
| Undiluted earnings per share | 0,33 | 0,53 | -0,21 | 1,80 |
| Diluted earnings per share | 0,33 | 0,53 | -0,21 | 1,79 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| 1.10.– | 1.10.– | 1.1.– | 1.1.– | |
|---|---|---|---|---|
| EUR 1,000 | 31.12.2020 | 31.12.2019 | 31.12.2020 | 31.12.2019 |
| RESULT FOR THE PERIOD | 1 412 | 2 260 | -901 | 7 687 |
| Other comprehensive income items | ||||
| Items that may be subsequently reclassified to profit or loss |
||||
| Changes in the fair value of financial assets att fair value through other |
||||
| comprehensive income | -1 355 | - | -1 355 | 1 565 |
| Items that may be subsequently reclassified to profit or loss |
||||
| Hedging reserve, hedge accounting | 5 | -64 | -117 | 283 |
| Exchange differences on translating foreign operations |
-92 | -74 | -596 | -66 |
| Income taxes related to these items | 248 | 0 | 272 | -178 |
| Comprehensive income items for the period, net of tax |
-1 194 | -137 | -1 796 | 1 604 |
| COMPREHENSIVE RESULT FOR THE PERIOD |
218 | 2 122 | -2 696 | 9 291 |
| Comprehensive result for the period attributable to |
||||
| Equity holders of the Parent company | 218 | 2 122 | -2 696 | 9 291 |
| Shares, 1 000 pcs | ||||
| Adjusted average number of shares Adjusted average number of shares, |
4 263 | 4 263 | 4 263 | 4 263 |
| diluted | 4 267 | 4 287 | 4 267 | 4 287 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET
| EUR 1,000 | 31.12.2020 | 31.12.2019 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Goodwill | 1 714 | 1 035 |
| Other intangible assets | 4 213 | 2 655 |
| Property, plant and equipment | 10 903 | 10 854 |
| Right of use assets | 5 917 | 6 936 |
| Other financial assets | 1 435 | 2 741 |
| Accounts receivables | 640 | - |
| Deferred tax assets | 1 242 | 13 |
| Total non-current assets | 26 064 | 24 235 |
| Current assets | ||
| Inventories | 15 041 | 12 360 |
| Accounts receivables and other receivables | 33 635 | 30 981 |
| Income tax receivable | 6 | 715 |
| Cash and cash equivalents | 11 601 | 22 360 |
| Total current assets | 60 282 | 66 417 |
| TOTAL ASSETS | 86 346 | 90 651 |
CONSOLIDATED BALANCE SHEET
| EUR 1,000 | 31.12.2020 | 31.12.2019 |
|---|---|---|
| EQUITY AND LIABILITIES | ||
| Equity attributable to Equity holders of the Parent company |
||
| Share capital | 8 256 | 8 256 |
| Fair value reserve and other reserves | 7 188 | 8 505 |
| Exchange differences | 353 | 949 |
| Retained earnings | 25 613 | 24 106 |
| Result for the financial year | -901 | 7 687 |
| Total equity | 40 506 | 49 502 |
| Non-current liabilities | ||
| Lease liability | 4 496 | 5 495 |
| Deferred tax liability | - | 77 |
| Provisions | 363 | 543 |
| Total non-current liabilities | 4 859 | 6 115 |
| Current liabilities | ||
| Provisions | 3 244 | 1 502 |
| Current interest-bearing liabilities | 1 857 | 1 441 |
| Lease liability | 1 385 | 12 005 |
| Current advance payments received | 18 144 | 903 |
| Income tax liability | 412 | 16 597 |
| Trade payables and other liabilities | 15 940 | 2 587 |
| Total current liabilities | 40 982 | 35 034 |
| Total liabilities | 45 840 | 41 149 |
| TOTAL EQUITY AND LIABILITIES | 86 346 | 90 651 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR 1,000 | 1.1.–31.12.2020 | 1.1.–31.12.2019 |
|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | ||
| Proceeds from customers | 117 538 | 167 313 |
| Payments to suppliers and employees | -116 217 | -146 690 |
| Cash flow before financial items and taxes | 1 320 | 20 872 |
| Interest paid from operating activities | -98 | -67 |
| Dividends received from operating activities | 640 | 814 |
| Interest received from operating activities | 22 | 22 |
| Other financing items from operating activities | -274 | -194 |
| Income taxes paid from operating activities | 434 | -2 846 |
| NET CASH FLOW FROM OPERATING ACTIVITIES (A) | 2 044 | 18 602 |
| CASH FLOW FROM INVESTING ACTIVITIES | ||
| Purchase of property, plant and equipment and intangible assets | -4 520 | -3 319 |
| Proceeds from sale of property, plant and equipment and intangible assets | 193 | - |
| Payment for acquisition of subsidiary, net of cash acquired | -512 | 68 |
| Proceeds from sale of investments | - | 88 |
| NET CASH FLOW FROM INVESTING ACTIVITIES (B) | -4 838 | -3 162 |
| CASH FLOW FROM FINANCING ACTIVITIES | ||
| Proceeds from current borrowings | 1 857 | 1 506 |
| Repayment of current borrowings | -1 502 | -931 |
| Repayments of lease liability | -1 411 | - |
| Dividends paid | -6 182 | -5 968 |
| NET CASH FLOW FROM FINANCING ACTIVITIES (C) | -7 238 | -6 480 |
| Net change in cash and cash equivalents (A+B+C) | -10 032 | 8 960 |
| increase (+)/decrease (-) | ||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE | ||
| FINANCIAL YEAR | 22 361 | 13 375 |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | -10 032 | 8 960 |
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH | -728 | 26 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR | 11 601 | 22 360 |
| CASH AND CASH EQUIVALENTS IN THE BALANCE SHEET AT THE END OF THE FINANCIAL YEAR* |
||
| Cash and cash equivalents | 11 601 | 22 360 |
| TOTAL | 11 601 | 22 360 |
*Cash and cash equivalents comprise cash and bank receivables, which will be due within the following three months' period.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
| Invested non |
To the equity | ||||||
|---|---|---|---|---|---|---|---|
| restricted | holders of the | ||||||
| EUR 1,000 | Share capital |
equity reserve |
Other reserves |
Exchange differences |
Retained earnings |
Parent company |
TOTAL EQUITY |
| EQUITY at Jan. 1, 2020 | 8 256 | 5 711 | 2 794 | 949 | 31 794 | 49 502 | 49 502 |
| Comprehensive result for the financial year | |||||||
| Result for the financial year Other comprehensive income items: |
- | - | - | - | -901 | -901 | -901 |
| Changes in the fair value of financial assets at fair | |||||||
| value through other comprehensive income | - | - | -1 355 | - | - | -1 355 | -1 355 |
| Hedging reserve | - | - | -117 | - | - | -117 | -117 |
| Exchange differences on translating foreign operations | - | - | - | -596 | - | -596 | -596 |
| Income taxes related to these items | - | - | 272 | - | - | 272 | 272 |
| Total comprehensive result for the financial year | - | - | -1 200 | -596 | -901 | -2 696 | -2 696 |
| Transactions with owners | |||||||
| Equity-settled share-based transactions | - | - | -118 | - | - | -118 | -118 |
| Dividends paid | - | - | - | - | -6 182 | -6 182 | -6 182 |
| Total transactions with owners | - | - | -118 | - | -6 182 | -6 299 | -6 299 |
| EQUITY at Dec. 31, 2020 | 8 256 | 5 711 | 1 477 | 353 | 24 712 | 40 506 | 40 506 |
COMPARISON YEAR
| EUR 1,000 | Share capital |
Invested non restricted equity reserve |
Other reserves |
Exchange differences |
Retained earnings |
To the equity holders of the Parent company |
TOTAL EQUITY |
|---|---|---|---|---|---|---|---|
| EQUITY at Jan. 1, 2019 | 8 256 | 5 711 | 1 453 | 1 015 | 30 075 | 46 509 | 46 509 |
| Comprehensive result for the financial year | |||||||
| Result for the financial year Other comprehensive income items: |
- | - | - | - | 7 687 | 7 687 | 7687 |
| Changes in the fair value of financial assets at fair | |||||||
| value through other comprehensive income | - | - | 1 565 | - | - | 1 565 | 1 565 |
| Hedging reserve | - | - | 283 | - | 283 | 283 | |
| Exchange differences on translating foreign operations | - | - | - | -66 | - | -66 | -66 |
| Income taxes related to these items | - | - | -178 | - | - | -178 | -178 |
| Total comprehensive result for the financial year | - | - | 1 669 | -66 | 7 687 | 9 290 | 9 290 |
| Transactions with owners | |||||||
| Equity-settled share-based transactions | - | - | -329 | - | - | -329 | -329 |
| Dividends paid | - | - | - | - | -5 968 | -5 968 | -5 968 |
| Total transactions with owners | - | - | -329 | 0 | -5 968 | -6 298 | -6 298 |
| EQUITY at Dec. 31, 2019 | 8 256 | 5 711 | 2 794 | 949 | 31 794 | 49 502 | 49 502 |
NOTES
NOTES TO THE FINANCIAL STATEMENTS RELEASE
General information
Raute Group is a globally operating technology and service company serving the wood products industry, with core competence in selected wood products manufacturing processes. Raute's customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL and sawn timber.
Raute's full-service concept is based on product life-cycle management and includes project deliveries and technology services. Raute's technology offering covers machinery and equipment for the customer's entire production process. In addition to a broad range of machines and equipment, Raute's solutions cover technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations as well as consulting, training, reconditioned machinery and digital services.
Raute Group's Parent company, Raute Corporation, is a Finnish public limited liability company established in accordance with Finnish law (Business ID FI01490726). Its series A shares are quoted on Nasdaq Helsinki Ltd, under Industrials. Raute Corporation is domiciled in Lahti. The address of its registered office is Rautetie 2, FI-15550 Nastola, and its postal address is P.O. Box 69, FI-15551 Nastola.
All of the figures presented in the Financial statements release are in thousand euro, unless otherwise stated. Due to the rounding of the figures in the financial statement tables, the sums of figures may deviate from the sum total presented in the table. Figures in parentheses refer to the corresponding figures in the comparison period.
Basis of preparation
Raute Corporation's Financial statements release for January 1 – December 31, 2020 has been prepared in accordance with standard IAS 34 Interim Financial Reporting.
The Financial statements release does not contain full notes and other information presented in the financial statements. Raute Corporation's financial statements with full notes will be published on February 12, 2021.
Raute Corporation's Financial statements release for January 1 – December 31, 2020 has been prepared in accordance with the International Financial Reporting Standards (IFRS) and the interpretations released accepted for application in the European Union. The Financial statements release has been drawn up according to the same accounting principles as in the Consolidated financial statements for 2019, except for the adoption of revised standards and interpretations that became effective during the financial year. Published IFRS standards and their amendments applicable during the year 2020 have not had a significant impact on Raute Group's result for the financial year, financial position or financial statements.
When preparing the Financial statements release in compliance with International Financial Reporting Standards, the company management has made estimates and assumptions. In addition, the management has exercised its judgment in selecting and applying the accounting policies. The forward-looking estimates and assumptions have been based on management's best knowledge at the reporting date, and they comprise risks and uncertainties, therefore actual results may differ from these estimates.
Acquisition of a subsidiary
Raute Corporation signed on June 16, 2020 an agreement on the acquisition of the majority of the share capital in Oulu-based Hiottu Oy. Hiottu is a company offering software services with special knowhow in various machine vision solutions and other system solutions for demanding industrial environment. Hiottu's services include software consulting and project management, machine vision programming and systems, industrial programming, and web programming. Hiottu's business will be continued as a separate limited company in Oulu and all employees will continue in the company as former employees. Hiottu Oy's financial information will be reported as part of Raute's wood products technology segment.The acquisition is carried out as a share transaction, after which Raute's holds 80 percent of the company shares. Mr. Kari Lapinlampi, one of the founders of the company, holds 20 percent of the company after this transaction and will remain with the company, too. The terms of acquiring the minority holding through an additional agreement after a transition period have been agreed on in the terms and conditions of the agreement. Based on the redemption obligation, the conditional redemption liability of EUR 231 thousand has been recognized at the date of acquisition. The redemption liability has been presented in the balance sheet item Accrued liabilities. The fair values of the balance sheet items recognized in the acquisition are preliminary.
IFRS standards that have been published and will be valid in future financial periods
Standards for future periods will not be expected to have a significant impact on Raute Corporation's Consolidated financial statements.
Net sales
Raute serves the wood products industry with a full-service concept based on service that encompasses the entire life cycle of the delivered equipment. Raute's business consists of project deliveries and technology services. Project deliveries encompass projects from individual machine or production line deliveries to deliveries of all the machines and equipment belonging to a mill's production process.
Additionally, Raute's full-service concept includes comprehensive technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations, as well as consulting, training, reconditioned machinery and digital services. Project deliveries and modernizations related to technology services include both product and service sales, making it impossible to give a reliable presentation of the breakdown of the Group's net sales into purely product and service sales.
Large mill or production line scale delivery projects can temporarily increase the share of an individual customer of the Group's net sales to more than ten percent. At the end of the reporting period, the Group had one customer, whose customized share of the Group's net sales temporarily exceeded ten percent.
| EUR 1,000 | 2020 | % | 2019 | % |
|---|---|---|---|---|
| Net sales by market area | ||||
| CIS (Russia) | 63 411 | 55 | 47 060 | 31 |
| EMEA (Europe and Africa) | 25 495 | 22 | 51 173 | 34 |
| NAM (North America) | 12 339 | 11 | 26 852 | 18 |
| LAM (South America) | 7 625 | 7 | 13 580 | 9 |
| APAC (Asia–Pacific) | 6 125 | 5 | 12 632 | 8 |
| TOTAL | 114 994 | 100 | 151 297 | 100 |
Finland accounted for 6 percent (12%) of net sales.
| EUR 1,000 | 2020 | 2019 |
|---|---|---|
| Specification of net sales | ||
| Performance obligations to be satisfied over time |
81 966 | 108 861 |
| Performance obligations to be satisfied at a | ||
| point in time | 33 028 | 42 436 |
| TOTAL | 114 994 | 151 297 |
| Project revenues entered as income from | ||
| performance obligations to be satisfied over | ||
| time currently undelivered | 118 179 | 127 400 |
| Amount of performance obligations to be | ||
| satisfied over time not yet entered as income | ||
| (order book) | 85 997 | 84 246 |
| Balance sheet items of undelivered | ||
| projects | ||
| Projects in which the value by percentage | ||
| of completion exceeds advance payments | ||
| invoiced | ||
| - aggregate amount of costs incurred and recognized profits less recognized losses |
97 047 | 89 878 |
| - advance payments received | 76 066 | 72 185 |
| Current customer contract assets | 20 981 | 17 694 |
| Projects in which advance payments invoiced | ||
| exceed the value by percentage of completion | ||
| - aggregate amount of costs incurred and | ||
| recognized profits less recognized losses | 25 257 | 38 366 |
| - advance payments received | 39 768 | 43 253 |
| Current customer contract liabilities | 14 511 | 4 887 |
| Advance payments included in current | ||
| liabilities in the balance sheet | ||
| Current customer contract liabilities | 14 511 | 4 887 |
| Other advance payments received | 3 633 | 7 118 |
| Total | 18 144 | 12 005 |
| Advance payments of the customer | ||
| contract included in inventories in the balance sheet |
||
| Advance payments paid | 1 023 | 602 |
Total 1 023 602
| 2020 | 2019 | |
|---|---|---|
| Research and development costs | ||
| Research and development costs for the financial year | -4 627 | -4 419 |
| Development costs recognized as an asset in the balance sheet |
367 | 163 |
| Research and development costs recognized as an expense for the financial year |
-4 260 | -4 256 |
| EUR 1,000 | 2020 | 2019 |
|---|---|---|
| Right-of-use assets | ||
| Book value at the beginning of the financial year | 6 936 | 7 391 |
| Exchange rate difference | -327 | 191 |
| Increases | 666 | 743 |
| Depreciation for the financial year | -1 382 | -1 389 |
| Book value at the end of the financial year | 5 917 | 6 936 |
Right-of-use assets are included in balance sheet item Property, plant and equipment.
| 2020 | 2019 | |
|---|---|---|
| Goowill | ||
| Goodwill at the beginning of the financial year | 1 035 | 1 035 |
| Increases | 679 | - |
| Goodwill at the end of the financial year | 1 714 | 1 035 |
| EUR 1,000 | 2020 | 2019 |
|---|---|---|
| Other intangible assets | ||
| Acquisition cost at the beginning of the financial year | 11 229 | 15 384 |
| Exchange rate differences | 10 | 2 |
| Additions | 2 084 | 85 |
| Reclassification between items | 87 | -4 242 |
| Acquisition cost at the end of the financial year | 13 410 | 11 229 |
| Accumulated depreciation and amortization at the beginning of the financial year |
-8 574 | -12 884 |
| Exchange rate differences | 4 | -1 |
| Reclassification between items | -87 | -477 |
| Depreciation and amortization for the financial year | -540 | 4 787 |
| Accumulated depreciation and amortization | ||
| at the end of the financial year | -9 197 | -8 574 |
| Book value of Other intangible assets, at the begin | ||
| ning of the financial year | 2 655 | 2 500 |
| Book value of Other intangible assets, at the end of | ||
| the financial year | 4 213 | 2 655 |
| Property, plant and equipment Acquisition cost at the beginning of the financial year |
63 509 | 60 781 |
| Exchange rate differences | -950 | 799 |
| Additions | 3 073 | 3 264 |
| Disposals | -1 885 | -779 |
| Reclassification between items | -85 | -556 |
| Acquisition cost at the end of the financial year | 63 635 | 63 509 |
| Accumulated depreciation and amortization at the begin ning of the financial year |
-45 720 | -43 167 |
| Exchange rate differences | 543 | -543 |
| Reclassifications between items | 1 804 | 17 |
| Depreciation and amortization for the financial year | -3 442 | -2 026 |
| Accumulated depreciation and amortization at the end of the financial year |
-46 816 | -45 720 |
| Book value of Property, plant and equipment, | ||
| at the beginning of the financial year | 17 789 | 11 612 |
| Book value of Property, plant and equipment, at the end of the financial year |
16 820 | 17 789 |
Financial assets
At the end of the financial year December 31, 2020, the fair value of the financial assets categorized at fair value hierarchy level 3 was EUR 1,387 thousand. The item includes the investments in unquoted shares which have been classified as financial assets at fair value through other comprehensive income. Derivative contracts have been classified as financial assets and liabilities at fair value through profit or loss. The fair value of these derivative contracts is based on the price available from the market data, but instruments are not traded in an active market. At the end of the financial year, the fair value of the derivative contracts classified as financial assets was EUR 31 thousand and the fair value of the derivative contracts classified as financial liability EUR 2 thousand. The Group's interest-bearing liabilities include a lease liability amount of EUR 5,881 at the balance sheet date.
| EUR 1,000 | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Financial liabilities | ||
| Non-current interest-bearing liabilities | ||
| Lease liability | 4 496 | 5 495 |
| TOTAL | 4 496 | 5 495 |
| Current interest-bearing liabilities | ||
| Partial payments of financial loans | 1 857 | 1 502 |
| Lease liability | 1 385 | 1 441 |
| TOTAL | 3 242 | 2 943 |
| EUR 1,000 | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Derivatives Nominal values of forward contracts in foreign cur rency Hedge accounting |
||
| - Related to the hedging of net sales Derivatives which do not meet the criteria of hedge accounting |
320 | 1 578 |
| - Related to financing - Related to the hedging of net sales |
733 1 805 |
801 6 432 |
| Fair values of forward contracts in foreign currency Hedge accounting - Related to the hedging of net sales Derivatives which do not meet the criteria of hedge accounting |
-2 | 7 |
| - Related to financing - Related to the hedging of net sales |
- 31 |
15 47 |
| EUR 1,000 | 31.12.2020 | 31.12.2019 |
|---|---|---|
| Pledged assets and contingent liabilities | ||
| Mortgage agreements on behalf of subsidiaries | ||
| Financial loans | 1 857 | 1 502 |
| Other obligations | - | 991 |
| Other credit guarantee arrangements | 1 857 | 2 493 |
| Commercial bank guarantees on behalf of the | ||
| Parent company and subsidiaries | 29 752 | 17 767 |
| Off-balance sheet leases | ||
| Rental liabilities maturing within one year | 106 | 95 |
| Rental liabilities maturing in one to five years | 23 | 56 |
Share-based payments
Share-based plans include two long-term performance share-based payment plans effective for the Group's senior management. During the financial year, the estimate of earned shares changed, and the conditions of two of the programs were not met. The amount entered in previous financial periods as a cost has been adjusted in the income statement for the current financial period.
Total 129 151
The impact of the share-based incentive plans on the result for the financial year was EUR 118 thousand positive (EUR 211 thousand negative). EUR 85 thousand (EUR 331 thousand) was allocated to the equity item Other reserves from the share-based incentive plans in force at the end of the financial year.
The bonus worth 23 832 Raute Corporation's series A shares has been paid during the financial year. The bonus performs the amount which covers the taxes and tax-like payments resulting from the shares.
The company decided to launch a new performance-based, share-value-based, long-term incentive lan, LTI Plan 2020–2022, on February 12, 2020.
. Distribution of the profit for the financial year 2019
Raute Corporation's Annual General Meeting was held on March 31, 2020. The Annual General Meeting decided, according to the Board of Directors' proposal, to distribute a dividend of EUR 1.45 per share to be paid for series A and K shares, a total of EUR 6,182 thousand. The dividend payment date was April 9, 2020.
Segment information
Continuing operations of Raute Group belong to the wood products technology segment. Raute Corporation's Board of Directors is the chief operating decision maker that is responsible for assigning resources to the operating segment and assessing its result.
Due to Raute's business model, operational nature and administrative structure, the operational segment to be reported as wood products technology segment is comprised of the whole Group and the information on the segment is consistent with that of the Group. Segment reporting follows the principles of presentation of the consolidated financial statements.
| EUR 1,000 | 31.12.2020 | 31.12.2019 | |||
|---|---|---|---|---|---|
| Wood products technology | |||||
| Net sales | 114 994 | 151 297 | |||
| Operating profit | -1 852 | 8 454 | |||
| Assets | 86 346 | 90 651 | |||
| Liabilities | 45 840 | 41 149 | |||
| Capital expenditure | 4 481 | 2 956 | |||
| EUR 1,000 | 31.12.2020 | % | 31.12.2019 | % | |
| Assets of the wood products technology | |||||
| segment by geographical location | |||||
| Finland | 70 158 | 84 | 75 882 | 84 | |
| North America | 8 939 | 10 | 8 397 | 9 | |
| China | 5 382 | 4 | 4 378 | 5 | |
| Russia | 1 312 | 2 | 1 662 | 2 | |
| South America | 260 | 0 | 194 | 0 | |
| Other | 296 | 0 | 138 | 0 | |
| Total | 86 346 | 100 | 90 651 | 100 | |
| EUR 1,000 | 31.12.2020 | % | 31.12.2019 | % | |
| Capital expenditure of the wood products technology segment by geographical location |
|||||
| Finland | 4 377 | 98 | 2 751 | 93 | |
| North America | 41 | 1 | 81 | 3 | |
| China | 52 | 1 | 48 | 2 | |
| Russia | 4 | 0 | 26 | 1 | |
| South America | 6 | 0 | 26 | 1 | |
| Other | 1 | 0 | 24 | 1 | |
| Total | 4 481 | 100 | 2 956 | 100 |
| 2020 | 2019 | |
|---|---|---|
| Number of personnel | ||
| Effective, on average, persons | 743 | 761 |
| On average, persons | 760 | 784 |
| In books at the end of the financial year, persons | 751 | 778 |
| Personnel working abroad at the end of the financial year | 250 | 260 |
| Personnel working abroad, % | 33,3 | 33,4 |
Pledges on behalf of the company's management
No loans have been granted to the company's management.
No pledges have been given or other commitments made on behalf of the company's management and shareholders.
Exchange rates used in the consolidation of subsidiaries
| 1.1.– | 1.1.– | |
|---|---|---|
| Income statement, euros | 31.12.2020 | 31.12.2019 |
| CNY (Chinese juan) | 7,8708 | 7,7339 |
| RUB (Russian rouble) | 82,6454 | 72,4593 |
| CAD (Canadian dollar) | 1,5294 | 1,4857 |
| USD (US dollar) | 1,1413 | 1,1196 |
| SGD (Singapore dollar) | 1,5736 | 1,5272 |
| CLP (Chilean peso) | 902,5383 | 786,2516 |
| Balance sheet, euros | 31.12.2020 | 31.12.2019 |
| CNY (Chinese juan) | 8,0225 | 7,8205 |
| RUB (Russian rouble) | 91,4671 | 69,9563 |
| CAD (Canadian dollar) | 1,5633 | 1,4598 |
| USD (US dollar) | 1,2271 | 1,1234 |
| SGD (Singapore dollar) | 1,6218 | 1,5111 |
| CLP (Chilean peso) | 870,6600 | 832,3500 |
The Board of Directors' proposal for dividend distribution and measures concerning the result of 2020
The Board of Directors will propose to Raute Corporation's Annual General Meeting 2021, to be held on March 31, 2021, that a dividend of EUR 0.80 per share be paid for the financial year 2020, and that he remainder of the distributable funds be retained in equity.
At the date of the proposal for profit distribution, there is a total of 4,263,194 shares entitled for the dividend, i.e. the total amount of dividends is EUR 3,411 thousand.
| FINANCIAL DEVELOPMENT | ||
|---|---|---|
| 31.12.2020 | 31.12.2019 | |
| Change in net sales, % | -24,0 | -16,4 |
| Exported portion of net sales, % | 94,2 | 88,3 |
| Operating profit, % of net sales | -1,6 | 5,6 |
| Return on investment, (ROI), % | -2,5 | 18,1 |
| Return on equity, (ROE), % | -2,0 | 16,0 |
| Interest-bearing net liabilities, EUR million* | -3,9 | -13,9 |
| Gearing, %* | -9,6 | -28,1 |
| Equity ratio, %* | 59,3 | 62,9 |
| Gross capital expenditure, EUR million | 5,2 | 3,0 |
| % of net sales | 4,5 | 2,0 |
| Research and development costs, EUR million | 4,6 | 4,4 |
| % of net sales | 4,0 | 2,9 |
| Order book, EUR million | 94 | 88 |
| Order intake, EUR million | 119 | 148 |
Raute Group publishes in addiition to IFRS key ratios commonly used financial key ratios (alternative performance measures). The calculation of the key figures has been presented in the financial statements.
| SHARE-RELATED DATA | ||
|---|---|---|
| 2020 | 2019 | |
| Earnings per share, (EPS), undiluted, EUR | -0,21 | 1,80 |
| Earnings per share, (EPS), diluted, EUR | -0,21 | 1,79 |
| Equity to share, EUR | 9,50 | 11,61 |
| Dividend per series A share, EUR | *0,80 | 1,45 |
| Dividend per series K share, EUR | *0,80 | 1,45 |
| Dividend per profit, % | *-378,5 | 80,4 |
| Effective dividend return, % | *3,5 | 5,8 |
| Price/earnings ratio (P/E ratio) | -108,10 | 13,86 |
| *The Board of Directors' proposal to the Annual General Meeting. | ||
| Development in share price (series A shares) | ||
| Lowest share price for the period, EUR | 17,40 | 20,00 |
| Highest share price for the period, EUR | 27,40 | 28,70 |
| Average share price for the period, EUR | 20,57 | 24,71 |
| Share price at the end of the period, EUR | 22,70 | 25,00 |
| Market value of capital stock | ||
| - Series K shares, EUR million* | 22,4 | 24,8 |
| - Series A shares, EUR million | 74,3 | 81,8 |
| Total, EUR million | 96,8 | 106,6 |
| *Series K shares valued at the value of series A shares. | ||
| Trading of the company's shares (series A shares) | ||
| Trading of shares, pcs | 680 073 | 503 305 |
| Trading of shares, EUR million | 14,0 | 12,4 |
| Number of shares | ||
| - Series K shares, ordinary shares (20 votes/share) | 991 161 | 991 161 |
| - Series A shares (1 vote/share) | 3 272 033 | 3 272 033 |
| Total | 4 263 194 | 4 263 194 |
| Number of shares, weighted average, 1 000 pcs | 4 263 | 4 263 |
| Number of shares, diluted, 1 000 pcs | 4 267 | 4 287 |
| Number of shareholders | 6 134 | 5 614 |
DEVELOPMENT OF QUARTERLY RESULTS
| EUR 1,000 | Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Rolling 1.1.2020– 31.12.2020 |
Rolling 1.1.2019– 31.12.2019 |
|---|---|---|---|---|---|---|
| NET SALES | 23 779 | 24 377 | 27 905 | 38 934 | 114 994 | 151 297 |
| Change in inventories of finished goods and work in progress |
-622 | -318 | 76 | 3 992 | 3 128 | -2 030 |
| Other operating income | 85 | -19 | 50 | 85 | 201 | 343 |
| Materials and services | -10 286 | -11 938 | -14 634 | -27 244 | -64 102 | -76 082 |
| Employee benefits expense | -11 448 | -9 441 | -8 334 | -9 866 | -39 089 | -45 793 |
| Depreciation, amortization and impairments | -962 | -937 | -1 141 | -999 | -4 039 | -3 854 |
| Other operating expenses | -3 550 | -2 747 | -2 594 | -4 053 | -12 945 | -15 429 |
| Total operating expenses | -26 246 | -25 064 | -26 702 | -42 162 | -120 175 | -141 156 |
| OPERATING RESULT | -3 005 | -1 024 | 1 329 | 849 | -1 852 | 8 453 |
| % of net sales | -12,6 | -4,2 | 4,8 | 2,2 | -1,6 | 5,6 |
| Financial income | 170 | 465 | 5 | 96 | 736 | 1 099 |
| Financial expenses | -54 | -133 | -71 | -163 | -421 | -300 |
| Financial expenses, net | 117 | 332 | -66 | -67 | 315 | 799 |
| PROFIT BEFORE TAX | -2 888 | -692 | 1 263 | 782 | -1 537 | 9 252 |
| % of net sales | -12,1 | -2,8 | 4,5 | 2,0 | -1,3 | 6,1 |
| Income taxes | 653 | -165 | -483 | 631 | 636 | -1 565 |
| TOTAL PROFIT FOR THE PERIOD | -2 235 | -857 | 780 | 1 412 | -901 | 7 687 |
| % of net sales | -9,4 | -3,5 | 2,8 | 3,6 | -0,8 | 5,1 |
| Attributable to | ||||||
| Equity holders of the Parent company | -2 235 | -857 | 780 | 1 412 | -901 | 7 687 |
| Earnings per share, EUR | ||||||
| Undiluted earnings per share | -0,52 | -0,20 | 0,18 | 0,33 | -0,21 | 1,80 |
| Diluted earnings per share | -0,52 | -0,20 | 0,18 | 0,33 | -0,21 | 1,79 |
| Shares, 1 000 pcs | ||||||
| Adjusted average number of shares | 4 263 | 4 263 | 4 263 | 4 263 | 4 263 | 4 263 |
| Adjusted average number of shares, diluted | 4 281 | 4 283 | 4 284 | 4 267 | 4 267 | 4 287 |
| FINANCIAL DEVELOPMENT QUARTERLY | Q1 2020 |
Q2 2020 |
Q3 2020 |
Q4 2020 |
Rolling 1.1.2020– 31.12.2020 |
Rolling 1.1.2019– 31.12.2019 |
| Order intake during the period, EUR million | 25 | 13 | 11 | 70 | 119 | 148 |
| Order book at the end of the period, EUR million | 92 | 80 | 62 | 94 | 94 | 88 |
22 FINANCIAL STATEMENTS RELEASE 2020 | FEBRUARY 12, 2021
20 LARGEST SHAREHOLDERS AT DECEMBER 31, 2020 BY NUMBER OF SHARES
20 LARGEST SHAREHOLDERS AT DECEMBER 31, 2020 BY NUMBER OF VOTES
| Number of series K shares |
Number of series A shares |
Total number of shares |
% of total shares |
Total number of votes |
% of voting rights |
Number of series K shares |
Number of series A shares |
Total number of shares |
% of total shares |
Total number of votes |
% of voting rights |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. | Sundholm Göran | - | 500 000 | 500 000 | 11,7 | 500 000 | 2,2 | 1. | Mustakallio Mika Tapani | 62 100 | 21 170 | 83 270 | 2,0 | 1 263 170 | 5,5 |
| 2. | Mandatum Henkivakuu tusosakeyhtiö |
- | 138 396 | 138 396 | 3,2 | 138 396 | 0,6 | 2. | Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | 1,9 | 1 231 609 | 5,3 |
| 3. | Laakkonen Mikko Kalervo | - | 119 919 | 119 919 | 2,8 | 119 919 | 0,5 | 3. | Mustakallio Kari Pauli | 60 480 | - | 60 480 | 1,4 | 1 209 600 | 5,2 |
| 4. | Suominen Pekka | 48 000 | 62 429 | 110 429 | 2,6 | 1 022 429 | 4,4 | 4. | Kirmo Kaisa Marketta | 55 680 | 48 341 | 104 021 | 2,4 | 1 161 941 | 5,0 |
| 5. | Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | 2,4 | 1 066 339 | 4,6 | 5. | Siivonen Osku Pekka | 50 640 | 53 539 | 104 179 | 2,4 | 1 066 339 | 4,6 |
| 6. | Kirmo Kaisa Marketta | 55 680 | 48 341 | 104 021 | 2,4 | 1 161 941 | 5,0 | 6. | Suominen Pekka Suominen Tiina Sini-Ma |
48 000 | 62 429 | 110 429 | 2,6 | 1 022 429 | 4,4 |
| Suominen Tiina Sini-Ma | 7. | ria | 48 000 | 52 856 | 100 856 | 2,4 | 1 012 856 | 4,4 | |||||||
| 7. | ria | 48 000 | 52 856 | 100 856 | 2,4 | 1 012 856 | 4,4 | 8. | Mustakallio Ulla Sinikka | 47 740 | 7 240 | 54 980 | 1,3 | 962 040 | 4,2 |
| 8. | Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | 2,0 | 723 116 | 3,1 | 9. | Suominen Jussi | 48 000 | - | 48 000 | 1,1 | 960 000 | 4,2 |
| 9. | Mustakallio Mika Tapani | 62 100 | 21 170 | 83 270 | 2,0 | 1 263 170 | 5,5 | 10. | Mustakallio Marja Helena | 46 740 | 12 547 | 59 287 | 1,4 | 947 347 | 4,1 |
| 10. | Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | 1,9 | 1 231 609 | 5,3 | 11. | Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | 2,0 | 723 116 | 3,1 |
| 11. | Mustakallio Kari Pauli | 60 480 | - | 60 480 | 1,4 | 1 209 600 | 5,2 | 12. | Mustakallio Hanna Leena | 32 975 | 5 565 | 38 540 | 0,9 | 665 065 | 2,9 |
| 12. | Mustakallio Marja Helena | 46 740 | 12 547 | 59 287 | 1,4 | 947 347 | 4,1 | Mustakallio Jukka Jere | |||||||
| 13. | Särkijärvi Anu Riitta | 12 000 | 43 256 | 55 256 | 1,3 | 283 256 | 1,2 | 13. | mias | 32 975 | - | 32 975 | 0,8 | 659 500 | 2,9 |
| 14. | Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 | 1,3 | 283 256 | 1,2 | 14. | Keskiaho Vesa Heikki | 29 680 | - | 29 680 | 0,7 | 593 600 | 2,6 |
| 15. | Mustakallio Ulla Sinikka | 47 740 | 7 240 | 54 980 | 1,3 | 962 040 | 4,2 | 15. | Keskiaho Juha-Pekka | 27 880 | 5 716 | 33 596 | 0,8 | 563 316 | 2,4 |
| 16. | Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | 1,2 | 527 164 | 2,3 | 16. | Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | 1,2 | 527 164 | 2,3 |
| 17. | Keskinäinen työeläkeva | 17. | Keskiaho Ilta Marjaana | 24 780 | 19 094 | 43 874 | 1,0 | 514 694 | 2,2 | ||||||
| kuutusyhtiö Varma | - | 51 950 | 51 950 | 1,2 | 51 950 | 0,2 | 18. | Sundholm Göran | - | 500 000 | 500 000 | 11,7 | 500 000 | 2,2 | |
| 18. | Relander Pär-Gustaf | - | 51 000 | 51 000 | 1,2 | 51 000 | 0,2 | 19. | Kultanen Leea Annikka | 21 595 | 8 031 | 29 626 | 0,7 | 439 931 | 1,9 |
| 19. | Suominen Jussi | 48 000 | - | 48 000 | 1,1 | 960 000 | 4,2 | 20. | Piik Ari Aarne Juhani | 20 855 | 418 | 21 273 | 0,5 | 417 518 | 1,8 |
| 20. | Keskiaho Ilta Marjaana | 24 780 | 19 094 | 43 874 | 1,0 | 514 694 | 2,2 | Total | 777 160 | 898 035 | 1 675 195 | 39,3 | 16 441 235 | 71,2 | |
| Total | 635 200 | 1 326 082 | 1 961 282 | 46,0 | 14 030 082 | 60,7 |
| Number of series K shares |
Number of series A shares |
Total number of shares |
% of total shares |
Total number of votes |
% of voting rights |
|
|---|---|---|---|---|---|---|
| Management's holding at December 31, 2020 |
||||||
| The Board of Directors, The Group's President and CEO and Executive Board* |
127 890 | 128 169 | 256 059 | 6,0 | 2 685 969 | 11,6 |
| TOTAL | 127 890 | 128 169 | 256 059 | 6,0 | 2 685 969 | 11,6 |
|--|
FINANCIAL STATEMENTS RELEASE 2020 | FEBRUARY 12, 2021 23
RAUTE CORPORATION Board of Directors
PRESENTATION OF THE FINANCIAL STATEMENTS RELEASE ONLINE ON FEBRUARY 12, 2021, AT 2:00 PM:
Analysts, investors and the media can watch the presentation of the financial statements release online on February 12, 2021, starting at 2 p.m. in MS Teams. The Teams link will be sent to registered participants by email. Registrations to [email protected].
The financial statements release will be presented by Mr. Tapani Kiiski, President and CEO, and Ms. Tarja Järvinen, CFO. Analysists, investors and the media can send in advance questions related to the financial statements release to the email address [email protected] on February 12, 2021, until 2.30 p.m., after which President and CEO Tapani Kiiski and Group Vice President, CFO Tarja Järvinen will answer the questions in a live Interim Report presentation up until around 3 p.m. There will also be an opportunity to present questions in Teams and through the Teams chat channel.
President and CEO Tapani Kiiski has also reserved time for answering questions over the phone after the financial statements release presentation, starting at 3 p.m. The phone number is +358 400 814 148.
FINANCIAL RELEASES IN 2021:
Raute's half-year report and two interim reports will be published as follows:
- Interim report January–March on Thursday, April 29, 2021
- Half-year report January–June on Friday, July 23, 2021
– Interim report January–September on Friday, October 22, 2021.
Raute Corporation's consolidated financial statements will be published on February 12, 2021. Raute Corporation's Annual Report 2020 will be published the week of March 1st.
Raute Corporation's Annual General Meeting will be held in Lahti, at Sibelius Hall on Wednesday, March 31, 2021 at 6:00 p.m.
FURTHER INFORMATION:
Mr. Tapani Kiiski, President and CEO, Raute Corporation, mobile phone +358 400 814 148 Ms. Tarja Järvinen, Group Vice President, Finance, CFO, Raute Corporation, mobile phone +358 40 658 3562
DISTRIBUTION:
Nasdaq Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute's customers are companies operating in the wood products industry that manufacture veneer, plywood, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute's full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute's head office is located in Lahti, Finland. The company's other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. Raute's net sales in 2020 were EUR 115.0 million. The Group's headcount at the end of 2020 was 751. More information about the company can be found at www.raute.com.
Raute Oyj
Rautetie 2, PL 69 15551 Nastola Puh. 03 829 11
[email protected] [email protected]
Raute Oyj
Rautetie 2, PL 69 15551 Nastola Puh. 03 829 11
[email protected] [email protected]
