Raute Oyj — Earnings Release 2024

Feb 13, 2025

Raute Corporation - Financial Statements Release January 1-December 31, 2024: Strong net sales growth and profitability development

Raute Corporation - Financial Statements Release January 1-December 31, 2024: Strong net sales growth and profitability development

RAUTE CORPORATION, FINANCIAL STATEMENTS RELEASE, FEBRUARY 13, 2025, AT 8:45 A.M.
EET

Raute Corporation - Financial Statements Release January 1-December 31, 2024:
Strong net sales growth and profitability development

This is a summary of Raute's Financial statements release January 1 - December
31, 2024. The full report is a PDF file attachment to this stock exchange
release and is also available on the company's website at www.raute.com.

October−December 2024

· Order intake was EUR 50 million (118)
· Order book was EUR 184 million (266) at the end of the reporting period
· Net sales were EUR 56.5 million (45.2)
· Comparable EBITDA was EUR 5.1 million (2.7), representing 9.1% (5.9) of net
sales
· Operating profit was EUR 3.5 million (0.7)
· Earnings per share were EUR 0.54 (0.09)
· Equity ratio was 55.2% (50.2)

January−December 2024

· Order intake was EUR 121 million (315)
· Net sales were EUR 204.6 million (145.4)
· Comparable EBITDA was EUR 19.8 million (9.3), representing 9.7% (6.4) of net
sales
· Operating profit was EUR 13.7 million (1.9)
· Earnings per share were EUR 1.96 (0.22)
· The Board of Directors' dividend proposal is EUR 0.55 per share

Guidance statement for 2025

Raute's 2025 net sales are expected to be between EUR 190-220 million and
comparable EBITDA between EUR 17-24 million.

The Board's dividend proposal

The Board of Directors of Raute Corporation proposes to the Annual General
Meeting that EUR 0.55 per share be paid dividend.

KEY FIGURES 1.10.-31.12. 1.10.-31.12. 1.1.-31.12. 1.1.-31.12.

                2024          2023          2024         2023

Net sales, MEUR 56.5 45.2 204.6 145.4
Change in net 24.9 -1.1 40.7 -8.2
sales, %
Exported portion 75.8 91.2 84.3 91.0
of net sales, %
Comparable EBITDA 5.1 2.7 19.8 9.3
M€
Comparable EBITDA 9.1 5.9 9.7 6.4
%
Operating profit, 3.5 0.7 13.7 1.9
MEUR
Operating profit, 6.2 1.5 6.7 1.3
% of net sales
Profit before 3.8 0.5 15.1 1.8
taxes, MEUR
Profit before 6.7 1.2 7.4 1.2
taxes, % of net
sales
Profit for the 3.0 0.7 12.1 1.4
period, MEUR
Profit for the 5.2 1.5 5.9 0.9
period, % of net
sales

Gross capital 1.3 1.1 2.8 4.5
expenditure, MEUR
% of net sales 2.3 2.4 1.4 3.1

Research and 1.3 1.4 5.3 5.2
development costs,
MEUR
% of net sales 2.4 3.1 2.6 3.6

Order book, MEUR 184 266 184 266
Order intake, MEUR 50 118 121 315

Personnel, at the 783 754
end of the period
Personnel, 740 749
effective, on
average
Personnel, on 782 754
average

Mika Saariaho, President and CEO: Firm operational execution continued, healthy
order intake in the fourth quarter

2024 was a year of solid project execution for Raute, with elevated
profitability and operational performance. The year clearly demonstrated that we
are making good progress towards our strategic targets.

In 2024, Raute achieved a solid profitability level as comparable EBITDA reached
EUR 19.8 million, representing a margin of 9.7%, and net sales exceeded EUR 200
million. This was driven by the continued firm operational execution in Wood
Processing and strong performance in Services. In Analyzers, the progress was a
bit softer as the business was particularly affected by challenging market
environment.

Our order intake turned more positive in the fourth quarter after a few slower
quarters. This is a good achievement, as the order intake did not include any
mill-sized projects. However, given the prolonged market uncertainty and the
recent concerns on global free trade, sustained market recovery is still to be
confirmed.

In the fourth quarter, Raute's net sales increased by 24.9% to EUR 56.5 million
and comparable EBITDA reached EUR 5.1 million, representing a margin of 9.1%.
The result mirrors our full-year performance after a seasonally strong third
quarter, and it was achieved through improved operational efficiency and
continued solid progress in project deliveries.

We have done plenty of development work and throughout the year made strides in
enhancing our capabilities in commercial operations as well as in deliveries and
operational efficiency. Our performance in 2024 demonstrated our strong
capabilities to deliver large projects successfully and to utilize
digitalization in creating new opportunities in engineered wood products
segments. Analyzers continued to be a forerunner in introducing new innovations
to our customers. For example, towards the end of the year we introduced a new
AI-based defect detection solution as part of our digitalization push.

In addition to augmenting our operational and commercial capabilities,
sustainability was another focus area. Towards the end of the year, we set the
main KPIs and related metrics for our sustainability reporting. In regard to
safety, in 2024, we launched a comprehensive program focusing on employee health
and safety, targeting zero accidents. The program has started to improve the way
we approach safety, and, for example, the number of safety observations
increased during the year.

Looking ahead to 2025, we have the building blocks in place for another good
year. We have a solid order book that offers a buffer against the current
business environment. And we have strong and long-term relationships with our
customers, helping us to capture new business opportunities when the market
recovery takes place.

BUSINESS ENVIRONMENT

The global demand for the end-user products of Raute's customers remained low
due to the downturn in the construction markets. This has especially impacted
the demand for softwood plywood. Declining interest rates have not yet had a
positive impact on the housing market.

The demand for hardwood plywood and LVL (laminated veneer lumber) has remained
more stable, and the demand for special applications in niche market segments
like LNG (liquid natural gas) vessels has strengthened the demand for birch
plywood. The European birch plywood market demand is also supported by the EU
sanctions against the entry of Russian birch plywood into the European market.

The presidential election in the USA postponed certain investment decisions of
Raute's North American customers, and that impact is still visible. Public
statements regarding new tariffs to be imposed by the US administration have
caused additional instability in the market. The war in Ukraine continues to
impact the market sentiment in Europe, and the increased geopolitical tension is
causing turbulence in the Asia-Pacific region and China.

Overall, the recent developments have had a negative impact on the investment
activity of Raute's customers worldwide. Our customers continue to be in a wait
-and-see mode in relation to making firm investment decisions. It now seems that
a wider recovery in Raute's markets is postponed well into 2025.

Order intake and order book

The total order intake was EUR 121 million (315) and included an order worth EUR
20 million from Latvian AmberBirch for the technology delivery of a birch veneer
production plant expansion.

Order intake is composed of 67% (65) from Europe, 19% (15) from North America,
5% (2) from Asia-Pacific and 9% (19) from South America.

Net sales

Net sales amounted to EUR 204.6 million (145.4), showing an increase of 40.7%
from the comparison period. This was driven by the solid progress in project
deliveries in the Wood Processing business and high demand in the Services
business.

Sales increased by 59.3% in Wood Processing and 27.5% in Services, while
decreased by 23.4% in Analyzers.

Europe accounted for 56% (40) of net sales, North America for 22% (30), South
America for 19% (15), Asia-Pacific for 3% (6) and Russia for 0% (9). During the
comparison period, Russia's share of net sales was based on the adjustments from
renegotiations with customers and the limits set by the sanctions.

Result and profitability

Comparable EBITDA was EUR 19.8 million (9.3) and comparable EBITDA margin was
9.1% (6.4). The increase was driven by improved efficiency through higher
volumes [as well as the control of fixed costs].

Comparable EBITDA improved in Wood Processing and Services, while declined in
Analyzers.

EBITDA was EUR 19.1 million (6.8). Items affecting comparability (IACs) in
EBITDA totaled EUR 0.7 million (2.5).

The operating profit was EUR 13.7 million (1.9).

Net financial items were EUR 1.4 million (-0.1), where the increase was
primarily driven by higher interest income.

The result before taxes was EUR 15.1 million (1.8). The result for the reporting
period was EUR 12.1 million (1.4), earnings per share were EUR 1.96 (0.22) and
diluted earnings per share were EUR 1.90 (0.22).

PROPOSAL FOR THE DISTRIBUTION OF PROFITS

On December 31, 2024, the parent company Raute Corporation's distributable funds
amounted to EUR 41,216,201.46.

The Board of Directors proposes to the Annual General Meeting, to be held on
April 15, 2025, that a dividend of EUR 0.55 per share be paid for the financial
year January 1-December 31, 2024.

GUIDANCE STATEMENT FOR 2025

Raute's 2025 net sales are expected to be between EUR 190-220 million and
comparable EBITDA between EUR 17-24 million.

RAUTE CORPORATION
Board of Directors

BRIEFING ON FEBRUARY 13, 2025, AT 2:00 P.M.

A briefing will be organized for analysts, investors and the media on February
13, 2025, at 2:00 p.m. EET at Scandic Simonkenttä Hotel, Simonkatu 9, Helsinki,
Finland. The financial statements release is presented by President and CEO Mika
Saariaho and CFO Ville Halttunen. The presentation language is English. The
event can also be followed online via Teams. We will send a Teams link to those
who have registered by email; registrations at ir@raute.com. The event will be
recorded, and the recording can be viewed on Raute's website at www.raute.com on
February 17, 2025, at the latest.

FINANCIAL CALENDAR IN 2025

Raute will publish financial results in 2025 as follows:

· Business review January-March on Wednesday, May 7, 2025
· Half-year financial report January-June on Tuesday, August 12, 2025
· Business review January-September on Thursday, October 30, 2025.

Raute's Financial statements, Board of Directors' report including
sustainability statement, Corporate governance statement, Remuneration report
and Annual report 2024 will be published as a stock exchange release and on the
company's website www.raute.com during week 12.

The Annual General Meeting is planned to be held in Lahti on Tuesday April 15,
2024, at 10 a.m. Raute's Board of Directors will convene the Meeting at a later
date.

FURTHER INFORMATION:
Mr. Mika Saariaho, President and CEO, tel. +358 40 154 9393
Mr. Ville Halttunen, CFO, tel. +358 50346 0868

DISTRIBUTION:
Nasdaq Helsinki Ltd, main media,www.raute.com

RAUTE IN BRIEF - Making Wood Matter
Raute is the partner to future-proof the wood industry. Our technologies cover
different production processes with supporting digital and analytics solutions
for engineered wood products. Additionally, we offer a full-scale service
concept ranging from spare parts to regular maintenance and modernizations. Our
innovative hardware and software solutions are designed to support our
customers' efficient consumption of natural resources. In mill-scale projects,
Raute is a global market leader both in the plywood and LVL industries. Raute's
head office and main production plant are located in Lahti, Finland. The
company's other production plants are located in Kajaani, Finland, the Vancouver
area of Canada, Changzhou, China, and in Pullman, WA, USA. Raute's net sales in
2024 were EUR 204.6 million. The Group's headcount at the end of 2024 was 783.
More information about the company can be found at www.raute.com.

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