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Raute Oyj Interim / Quarterly Report 2021
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Interim / Quarterly Report
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Half-Year Report
January 1–June 30, 2021
RAUTE
RAUTE CORPORATION – HALF-YEAR REPORT JANUARY 1–JUNE 30, 2021
- The Group's net sales, EUR 60.2 million (MEUR 48.2), increased 25 percent on the comparison period. Order intake was EUR 95 million (MEUR 38).
- Operating profit amounted to EUR -3.5 million (MEUR -4.0), up 13% on the comparison period. The result before taxes was EUR -3.1 million (MEUR -3.6).
- Earnings per share were EUR -0.64 (EUR -0.73) and diluted earnings per share were EUR -0.64 (EUR -0.73).
- Net sales in the second quarter were EUR 35.5 million and operating profit was EUR -1.0 million. Order intake in the second quarter was EUR 65 million. The order book at the end of the reporting period stood at EUR 129 million (MEUR 80).
- Raute's net sales are expected to grow in 2021 and operating profit to improve from 2020.
TAPANI KIISKI, PRESIDENT AND CEO: HEADING INTO THE SECOND HALF OF 2021 WITH A STRONG ORDER BOOK
Demand for Raute's technology and services remained brisk also in the second quarter. We managed to receive new orders totaling EUR 65 million. Even without the EUR 30 million order for an LVL mill's production process, the order intake was at a good level. I am particularly pleased with this good level of mid-sized production line and modernization orders. Our order book thus almost reached a record of EUR 129 million. Our outlook for the near future is good.
Despite the continuing pandemic, the market situation was good, especially in the traditional, industrialized and developed markets of Europe, North America and Russia. Travel restrictions continue to hamper work carried out at our customers' sites, however. Furthermore, in the emerging markets, except for China, the pandemic is still considerably limiting the progress of our customers' projects. The travel restrictions are hampering the progress of many of our development projects also in China.
Our net sales in the first half of this year were EUR 12 million higher than in the same period last year. Most of the growth in net sales took place in the second quarter. As predicted, however, the growth was not enough to turn our result into a profit due to the exceptionally low payroll costs and the planned marketing and digitalization efforts. Even major fluctuations in net sales, and the accompanying operating profit, are typical for the project business, which accounted for roughly two thirds of our net sales in the second quarter.
The travel restrictions imposed due to the coronavirus pandemic continue to hinder the implementation of installation supervision and commissioning and maintenance services, and, of course, our sales efforts. However, the removal of these restrictions bit by bit as vaccinations progress is creating optimism that business activities will gradually begin to normalize this year. Very recently, the spread of new virus variants has led to increasing uncertainty about the easing of the pandemic, however. I am pleased with the abilities demonstrated by our customers and our personnel to continue working using remote connections. The lessons learned and experience gained will improve both our ability to serve our customers and our flexibility also in the future.
The order intake for technology services was also at a good level. This is yet another reason to conclude that the capacity utilization rate of our customers' production is at a good level. If the travel restrictions were not hampering maintenance work, there would be even more demand for these services.
Because of the exceptional market changes caused by the pandemic and the stimulus measures aimed at recovering from it, many raw material, component and freight costs have risen, even to a great extent, and delivery times have increased; there have even been challenges in availability. So far, Raute has managed to operate amid these changes without major problems. Our operational organization is actively addressing these challenges together with our partners. We estimate that in the second half of the year, we may encounter delays and possible cost issues.
Because of the pandemic, in the near future the focus of our market will be more on developed markets than we estimated before the pandemic. In the longer term, however, we believe that the focus of growth will again shift to the emerging markets. Accordingly, we will continue to invest in our stated strategic priorities, the emerging markets and the development of our technology services business and digitalization. Besides the opportunities offered by the current market situation, our strong financial position and market position, as well as our long-standing customer relationships are important competitive advantages and enablers of this type of long-term work.
Our outlook for 2021 remains unchanged, and we expect our net sales to grow and our operating result to improve from last year.
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
SECOND QUARTER OF 2021
Order intake and order book
The total order intake in the second quarter, EUR 65 million (MEUR 13), was at a very good level. Of the order intake, the largest was an LVL production line order worth roughly EUR 30 million going to Lithuania. The volume of other orders was also very good, at EUR 35 million. Orders that were delayed due to the market disruption caused by the global pandemic are now starting up.
Technology services accounted for EUR 18 million (MEUR 17) of the order intake. Modernization orders in particular grew on the comparison period.
The order book increased during the last quarter by EUR 31 million, amounting to a strong EUR 129 million at the end of the period (MEUR 80).
Net sales
Second-quarter net sales amounted to EUR 35.5 million (MEUR 24.4). Technology services' share of net sales, EUR 16 (MEUR 10), was very good as modernization projects started up again. Technology services accounted for 46 percent (43%) of net sales.
Result and profitability
Operating profit for the second quarter was EUR 1.0 million negative (MEUR 1.0 negative) and accounted for -2.9 percent (-4.2%) of net sales. The result before taxes was EUR 0.7 million negative (MEUR 0.7 negative), and earnings per share were EUR -0.06 (EUR -0.20).
RAUTE CORPORATION -- HALF-YEAR REPORT JANUARY 1--JUNE 30, 2021
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 second quarter, the situation and outlook in the global economy and financial markets continued to pick up. Vaccinations and the easing of the Covid-19 pandemic in many market areas created positive expectations. Demand remained strong and the prices of our customers' products were exceptionally high. Currently, new variants of the virus are causing increased uncertainty, but for now, it has not affected demand among Raute's customers. We expect the market situation of our customer industries to remain favorable and for things to get better this year, including in areas that have not yet experienced an upturn.
Demand for wood products technology and technology services
As a result of the exceptional volatility in the market situation caused by the pandemic, many of our customers, particularly in traditional, developed markets, initially put the brakes on their investments, whereas this year they have accelerated them and cleared their investment backlog. In contrast, emerging markets have not yet begun to make a similar recovery from the pandemic. Demand for Raute's products and services has thus remained at the same level in these markets, and in some it has even slowed. Demand overall has been at a good level in the first half of the year. Mill-scale projects also moved forward during the first six months of the year, alongside smaller projects and modernizations.
Investment activity among Raute's customers strengthened in the first six months of the year compared to last year. We consider our order intake during the reporting period to be very good. Even without the reported single large mill project, the order intake was at a good level.
In Russia, demand remained active, although decisions were few and far between. Forecasting the realization and timing of projects remains difficult. At the start of this year's Q3, we announced a rather large order destined for Russia. The pandemic continued to have a major impact on the emerging markets of Asia and South America, which were very quiet. We nevertheless managed to gain a few orders. The only exception to this was China, where the planning of projects remained active. In Q2, however, we did not receive significant orders to China. Demand resumed in Europe and North America, and the order intake was at a good level.
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 our estimation, without the travel restrictions related to the pandemic, sales of maintenance services would have been even stronger than they were.
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 improvement in the market situation was reflected in the volume of new orders Raute received. The order intake during the reporting period was at an extremely good level and amounted to EUR 95 million (MEUR 38). The order intake consisted of one mill-scale, new-capacity project and a number of medium-sized and small single production line project deliveries and modernizations.
Of new orders, 53 percent came from Europe (28%), 20 percent from North America (13%), 14 percent from Russia (40%), 8 percent from Asia--Pacific (13%) and 5 percent from South America (6%). Sometimes even strong fluctuations in the distribution of new orders between the various market areas are typical for project-focused business.
The order intake for technology services amounted to EUR 37 million (MEUR 17), growing strongly from the comparison period.
The order book increased during the second quarter by EUR 31 million. The order book at the end of the reporting period amounted to a strong EUR 129 million (MEUR 80). A large part of the order book has already been scheduled for 2022.
COMPETITIVE POSITION
Raute's competitive position has remained unchanged and is strong. Raute's solutions help customers secure 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
Net sales for the reporting period totaled EUR 60.2 million (MEUR 48.2), up 25 percent from the comparison period. The low level of net sales, despite the growth, was predicted and was largely due to the planned timing of the order book, but also partly to the impacts of the pandemic-related restrictions on field operations.
Of the net sales for the period, Russia accounted for 53 percent (46%), Europe for 21 percent (24%), North America for 14 percent (13%), South America for 6 percent (10%), and Asia-Pacific for 6 percent (7%).
RESULT AND PROFITABILITY
Operating profit during the reporting period was EUR 3.5 million negative (MEUR 4.0 negative) and accounted for -5.8 percent (-8.4%) of net sales. Operating profit grew 13 percent, mainly due to the growth in net sales. We continued with our previously announced investments in product development, marketing and digitalization.
The result before taxes for the reporting period was EUR 3.1 million negative (MEUR 3.6 negative). The result for the reporting period was EUR 2.7 million negative (MEUR 3.1 negative). Undiluted earnings per share were EUR -0.64 (EUR -0.73).
CASH FLOW AND BALANCE SHEET
The Group's financial position remained strong. At the end of the reporting period, gearing was -27 percent (-46%), and the equity ratio was 46 percent (59%).
The Group's cash and cash equivalents amounted to EUR 18.1 million (MEUR 26.3) at the end of the reporting period. Operating cash flow was EUR 13.2 million positive (MEUR 12.7 positive). Cash flow from investment activities was EUR 2.5 million negative (MEUR 1.5 negative). Cash flow from financing activities was EUR 4.2 million negative (MEUR 6.5 negative), including dividend payments of EUR 3.4 million.
Interest-bearing liabilities amounted to EUR 9.0 million (MEUR 8.1) at the end of the reporting period. This sum consists entirely of liabilities for right-of-use assets. The increase in liabilities during the reporting period is due to fixed asset liabilities for a new mill in China.
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 reporting period.
EVENTS DURING THE REPORTING PERIOD
Raute Corporation published stock exchange releases on the following events in 2021:
February 12, 2021: New long-term incentive plan based on performance, share value and growth established for Raute's senior management and selected key persons
May 12, 2021: Raute received orders worth approximately EUR 30 million to Lithuania
On June 4, 2021, Raute announced that it is moving its operations to a new location in Changzhou, China. The facility is expected to employ around 100 people and to start production in the first quarter of 2022.
On June 15, 2021, Raute joined the UN Global Compact Initiative and committed to complying with its global sustainability criteria.
RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURE
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.
Research and development costs in the reporting period amounted to EUR 2.5 million (MEUR 2.2), representing 4.2 percent of net sales (4.5%).
The Group's capital expenditure during the period came to EUR 2.6 million (MEUR 2.1) and accounted for 4.3 percent (4.3%) of net sales. Our most important investment was the continuation of our extensive IT system renewal project, which we launched last year.
PERSONNEL
At the end of the reporting period, the Group's personnel numbered 817 (784). Group companies outside Finland accounted for 31 percent (32%) of employees.
Converted to full-time employees ("effective headcount"), the average number of employees was 774 (750) during the reporting period.
The Group continued to develop the competence of its personnel and increase their commitment to the company. Approximately 1 percent (3%) of the payroll was invested in personnel training. There was less training in the first half of this year compared to the same period last year due to the pandemic-related challenges in arranging the training. Our key focal areas in HR development were training to meet the needs of the new IT system project, 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 continued.
Occupational safety was weaker during the reporting period compared to 2020. The number of accidents leading to an absence from work amounted to seven. The LTIF figure was 10.4. In April, we reported that there was an unfortunate fatal accident at our project installation site in China.
SHARES
The number of Raute Corporation's shares at the end of the reporting period 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.
The company's market capitalization at the end of the reporting period was EUR 95.1 million (MEUR 81.4), with series K shares valued at the closing price of series A shares for the reporting period, i.e. EUR 22.30 (EUR 19.10).
REMUNERATION
The Annual General Meeting approved, on March 31, 2021, the Remuneration Report for Governing Bodies proposed by the Board of Directors. The resolution is advisory.
The Group has remuneration systems in place that cover the entire personnel.
Share-based incentive plans
The Group has valid long-term share-based incentive plans based on performance.
The company decided to launch a new long-term incentive plan based on performance, share value and growth (LTI Plan 2021-2023) on February 12, 2021.
The terms and conditions of and more detailed and up-to-date information on the incentive plans are available on the company's website.
SHAREHOLDERS
The number of shareholders totaled 6,134 at the beginning of the year and 6,101 at the end of the reporting period. Series K shares were held by 54 private individuals (54) at the end of the reporting period. Nominee-registered shares accounted for 2.2 percent (2.7%) of shares. The company did not receive any flagging notifications during the reporting period.
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 the company shares and 11.6 percent (11.6%) of the votes at the end of the reporting period.
CORPORATE GOVERNANCE
Raute Corporation complies with the Finnish Corporate Governance Code 2020 for listed companies issued by the Securities Market Association on September 19, 2019, except for the deviation from Recommendation 15 concerning the appointment of members to the Appointments Committee.
EXECUTIVE BOARD
Raute Group's Executive Board and the members' areas of responsibility:
- 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
ANNUAL GENERAL MEETING 2021
Raute Corporation's Annual General Meeting was held on March 31, 2021, as planned. More detailed information on the decisions of the Annual General Meeting can be found in the stock exchange release issued on March 31, 2021.
DISTRIBUTION OF PROFIT FOR THE 2020 FINANCIAL YEAR
The Annual General Meeting held on March 31, 2021, decided to pay a dividend of EUR 0.80 per share for the financial year 2020. The total amount of dividends is EUR 3.4 million, with series A shares accounting for EUR 2,617,626.40 and series K shares for EUR 792,928.80. The dividend payment date was April 13, 2021.
BOARD OF DIRECTORS AND BOARD COMMITTEES
At the Annual General Meeting held on March 31, 2021, Ms. Laura Raitio was elected Chair of the Board, 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' term of office will continue until the 2022 Annual General Meeting.
Based on the evaluation of independence by the Board of Directors, Chair of the Board Ms. Laura Raitio and members Mr. Joni Bask, Mr. Ari Harmaala, and Mr. Patrick von Essen are independent of the company. Vice Chair of the Board of Directors Mr. Mika Mustakallio and Board member Pekka Suominen are not estimated to be independent of the company, as they have served on the Board of Directors for more than ten years. Chair of the Board Laura Raitio and two Board members, Mr. Ari Harmaala and Mr. Patrick von Essen, are independent of major shareholders.
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
Raute Corporation's Board of Directors has an Appointments Committee. The Appointments Committee is chaired by Ms. Laura Raitio, and its members are Mr. Pekka Suominen and Mr. Ari Piik. Due to the company's ownership structure, it has been considered, in deviation from the corporate governance recommendations, justified that a representative of a large shareholder group who is not a member of the Board of Directors is on the Appointments Committee.
The Audit Committee's tasks are handled by the Board of Directors.
EVENTS AFTER THE REPORTING PERIOD
On July 7, 2021, Raute reported having received an order worth approximately EUR 16 million from Segezha Group to Russia.
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 delivering and managing the costs of the orders.
The restrictions imposed due to the coronavirus pandemic will also negatively affect Raute's future outlook, but the negative impacts are expected to decrease going forward. The extent and duration of the impacts are, however, still impossible to assess.
The recent developments in the global economy leading to higher raw material, component and freight costs, as well as availability issues, increase the risks faced by Raute in terms of both delivery capabilities and cost control. We have taken action to minimize these challenges.
OUTLOOK FOR 2021
Due to the strong order book, active demand and presumed alleviated impacts of the coronavirus pandemic, we expect Raute's net sales to increase in 2021 compared to the level of the previous year. We expect the operating result to improve on the previous year mostly due to growth in net sales.
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
CONSOLIDATED STATEMENT OF INCOME
Raute Corporation's Board of Directors has approved this Half-year Report for January 1–June 30, 2021 to be published.
The figures for the financial year 2020 presented in the figures section of the Half-year Report have been audited. The presented interim financial report figures have not been audited.
CONSOLIDATED STATEMENT OF INCOME
| EUR 1,000 | 1.4.–30.6.2021 | 1.4.–30.6.2020 | 1.1.–30.6.2021 | 1.1.–30.6.2020 | 1.1.–31.12.2020 |
|---|---|---|---|---|---|
| NET SALES | 35 453 | 24 377 | 60 212 | 48 156 | 114 994 |
| Change in inventories of finished goods and work in progress | 904 | -318 | 1 897 | -940 | 3 128 |
| Other operating income | 11 | -19 | 179 | 66 | 201 |
| Materials and services | -19 649 | -11 938 | -32 271 | -22 225 | -64 102 |
| Employee benefits expense | -12 172 | -9 441 | -23 405 | -20 890 | -39 089 |
| Depreciation, amortization and impairments | -1 110 | -937 | -2 083 | -1 899 | -4 039 |
| Other operating expenses | -4 455 | -2 747 | -8 044 | -6 298 | -12 945 |
| Total operating expenses | -37 385 | -25 064 | -65 803 | -51 311 | -120 175 |
| OPERATING PROFIT | -1 018 | -1 024 | -3 514 | -4 030 | -1 852 |
| % of net sales | -2,9 | -4,2 | -5,8 | -8,4 | -1,6 |
| Financial income | 541 | 465 | 748 | 636 | 736 |
| Financial expenses | -175 | -133 | -342 | -187 | -421 |
| Financial expenses, net | 366 | 332 | 406 | 448 | 315 |
| PROFIT BEFORE TAX | -651 | -692 | -3 109 | -3 581 | -1 537 |
| % of net sales | -1,8 | -2,8 | -5,2 | -7,4 | -1,3 |
| Income taxes | 391 | -165 | 360 | 488 | 636 |
| PROFIT FOR THE PERIOD | -260 | -857 | -2 749 | -3 093 | -901 |
| % of net sales | -0,7 | -3,5 | -4,6 | -6,4 | -0,8 |
| Profit for the period attributable to Equity holders of the Parent company | -260 | -857 | -2 749 | -3 093 | -901 |
| Earnings per share for profit attributable to Equity holders of the Parent company, EUR Undiluted earnings per share | -0,06 | -0,20 | -0,64 | -0,73 | -0,21 |
| Diluted earnings per share | -0,06 | -0,20 | -0,64 | -0,73 | -0,21 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR 1,000 | 1.4.–30.6.2021 | 1.4.–30.6.2020 | 1.1.–30.6.2021 | 1.1.–30.6.2020 | 1.1.–31.12.2020 |
|---|---|---|---|---|---|
| PROFIT FOR THE PERIOD | -260 | -857 | -2 749 | -3 093 | -901 |
| 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 |
| Hedging reserve, hedge accounting | 0 | 13 | -27 | -2 | -117 |
| Exchange differences on translating foreign operations | -38 | -439 | 347 | -910 | -596 |
| Income taxes related to these items | 0 | -4 | 0 | 0 | 272 |
| Comprehensive income items for the period, net of tax | -38 | -431 | 320 | -912 | -1 796 |
| COMPREHENSIVE PROFIT FOR THE PERIOD | -299 | -1 289 | -2 429 | -4 005 | -2 696 |
| Comprehensive profit for the period attributable to Equity holders of the Parent company | -299 | -1 289 | -2 429 | -4 005 | -2 696 |
| Shares, 1 000 pcs | |||||
| Adjusted average number of shares | 4 263 | 4 263 | 4 263 | 4 263 | 4 263 |
| Adjusted average number of shares, diluted | 4 263 | 4 283 | 4 263 | 4 283 | 4 267 |
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 1 714 | 1 714 | 1 714 |
| Other intangible assets | 6 013 | 2 788 | 4 213 |
| Property, plant and equipment | 11 360 | 10 052 | 10 903 |
| Right of use assets | 7 102 | 6 211 | 5 917 |
| Other financial assets | 1 548 | 2 939 | 1 435 |
| Accounts receivables | 0 | - | 640 |
| Deferred tax assets | 1 817 | 707 | 1 242 |
| Total non-current assets | 29 555 | 24 411 | 26 064 |
| Current assets | |||
| Inventories | 18 801 | 16 640 | 15 041 |
| Accounts receivables and other receivables | 44 549 | 21 778 | 33 635 |
| Income tax receivable | 415 | 1 435 | 6 |
| Cash and cash equivalents | 18 093 | 26 274 | 11 601 |
| Total current assets | 81 859 | 66 127 | 60 282 |
| TOTAL ASSETS | 111 413 | 90 539 | 86 346 |
CONSOLIDATED BALANCE SHEET
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity attributable to Equity holders of the Parent company | |||
| Share capital | 8 256 | 8 256 | 8 256 |
| Fair value reserve and other reserves | 7 161 | 8 660 | 7 188 |
| Exchange differences | 1 054 | 39 | 353 |
| Retained earnings | 20 696 | 25 612 | 25 613 |
| Profit for the period | -2 749 | -3 093 | -901 |
| Total equity | 34 418 | 39 471 | 40 506 |
| Non-current liabilities | |||
| Lease liability | 5 355 | 4 872 | 4 496 |
| Deferred tax liability | 46 | - | - |
| Provisions | 0 | 468 | 363 |
| Total non-current liabilities | 5 401 | 5 340 | 4 859 |
| Current liabilities | |||
| Current interest-bearing liabilities | 1 670 | 1 881 | 1 857 |
| Lease liability | 1 942 | 1 339 | 1 385 |
| Current advance payments received | 36 539 | 23 906 | 18 144 |
| Income tax liability | 370 | 423 | 412 |
| Trade payables and other liabilities | 27 896 | 14 742 | 15 940 |
| Provisions | 3 177 | 3 437 | 3 244 |
| Total current liabilities | 71 593 | 45 728 | 40 982 |
| Total liabilities | 76 995 | 51 068 | 45 840 |
| TOTAL EQUITY AND LIABILITIES | 111 413 | 90 539 | 86 346 |
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
CONSOLIDATED STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CASH FLOWS
| EUR 1,000 | 1.1.-30.6.2021 | 1.1.-30.6.2020 | 1.1.-31.12.2020 |
|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Proceeds from customers | 71 552 | 68 242 | 117 538 |
| Other operating income | 179 | - | - |
| Payments to suppliers and employees | -58 244 | -55 345 | -116 217 |
| Cash flow before financial items and taxes | 13 488 | 12 897 | 1 320 |
| Interest paid from operating activities | -101 | -80 | -98 |
| Dividends received from operating activities | 711 | 634 | 640 |
| Interest received from operating activities | 14 | 9 | 22 |
| Other financing items from operating activities | -271 | -7 | -274 |
| Income taxes paid from operating activities | -678 | -721 | 434 |
| NET CASH FLOW FROM OPERATING ACTIVITIES (A) | 13 163 | 12 732 | 2 044 |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| Purchase of property, plant and equipment and intangible assets | -2 612 | -1 084 | -4 520 |
| Proceeds from sale of property, plant and equipment and intangible assets | 109 | 68 | 193 |
| Payment for acquisition of subsidiary, net of cash acquired | 0 | -512 | -512 |
| Proceeds from sale of investments | - | - | - |
| NET CASH FLOW FROM INVESTING ACTIVITIES (B) | -2 503 | -1 528 | -4 838 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Proceeds from current borrowings | - | 360 | 1 857 |
| Repayments of current borrowings | - | - | -1 502 |
| Repayments of lease liability | -788 | -725 | -1 411 |
| Dividends paid | -3 411 | -6 182 | -6 182 |
| NET CASH FLOW FROM FINANCING ACTIVITIES (C) | -4 198 | -6 546 | -7 238 |
| NET CHANGE IN CASH AND CASH EQUIVALENTS (A+B+C) | 6 462 | 4 656 | -10 032 |
| increase (+)/decrease (-) | |||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 11 601 | 22 360 | 22 361 |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 6 462 | 4 656 | -10 032 |
| EFFECTS OF EXCHANGE RATE CHANGES ON CASH | 30 | -743 | -728 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 18 093 | 26 273 | 11 601 |
| CASH AND CASH EQUIVALENTS IN THE BALANCE SHEET AT THE END OF THE PERIOD* | |||
| Cash and cash equivalents | 18 093 | 26 273 | 11 601 |
| TOTAL | 18 093 | 26 273 | 11 601 |
*Cash and cash equivalents comprise cash and bank receivables, which will be due within the following three months' period.
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
| 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, 2021 | 8 256 | 5 711 | 1 476 | 353 | 24 709 | 40 506 | 40 506 |
| Comprehensive profit for the period | |||||||
| Profit for the period | - | - | - | - | -2 749 | -2 749 | -2 749 |
| Other comprehensive income items: | 0 | ||||||
| Hedging reserve | - | - | -27 | - | - | -27 | -27 |
| Exchange differences on translating foreign operations | - | - | - | 701 | -603 | 98 | 98 |
| Income taxes related to these items | - | - | - | - | - | 0 | 0 |
| Total comprehensive profit for the period | 0 | 0 | -27 | 701 | -3 351 | -2 677 | -2 677 |
| Transactions with equity holders | |||||||
| Equity-settled share-based transactions | - | - | - | - | - | - | - |
| Dividends paid | - | - | - | - | -3 411 | -3 411 | -3 411 |
| Total transactions with equity holders | 0 | 0 | 0 | 0 | -3 411 | -3 411 | -3 411 |
| EQUITY at June 30, 2021 | 8 256 | 5 711 | 1 450 | 1 054 | 17 947 | 34 418 | 34 418 |
COMPARISON PERIOD
| 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, 2020 | 8 256 | 5 711 | 2 794 | 949 | 31 794 | 49 502 | 49 502 |
| Comprehensive profit for the period | |||||||
| Profit for the period | - | - | - | - | -3 093 | -3 093 | -3 093 |
| Other comprehensive income items: | |||||||
| Hedging reserve | - | - | -2 | - | - | -2 | -2 |
| Exchange differences on translating foreign operations | - | - | - | -910 | - | -910 | -910 |
| Income taxes related to these items | - | - | 0 | - | - | 0 | 0 |
| Total comprehensive profit for the period | - | - | -2 | -910 | -3 093 | -4 005 | -4 005 |
| Transactions with equity holders | |||||||
| Equity-settled share-based transactions | - | - | 157 | - | - | 157 | 157 |
| Dividends paid | - | - | - | - | -6 182 | -6 182 | -6 182 |
| Total transactions with equity holders | - | - | 157 | - | -6 182 | -6 025 | -6 025 |
| EQUITY at June 30, 2020 | 8 256 | 5 711 | 2 949 | 39 | 22 519 | 39 471 | 39 471 |
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
NOTES
NOTES TO THE HALF-YEAR REPORT
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, 15551 Nastola, Finland.
All of the figures presented in the Half-year Report are in thousand euro, unless otherwise stated. Due to the rounding of the figures in the 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 Half-year Report for January 1–June 30, 2021 has been prepared in accordance with standard IAS 34 Interim Financial Reporting.
The Half-year Report does not contain full notes and other information presented in the financial statements, and therefore the Half-year Report should be read in conjunction with the Financial statements published for 2020.
Raute Corporation's Half-year Report for January 1–June 30, 2021 has been prepared in accordance with the International Financial Reporting Standards, IFRS, accepted for application in the European Union, including related interpretations. The Half-year Report has been drawn up according to the same accounting principles as in the consolidated financial statements for 2020.
When preparing the Half-year Report 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.
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
HALF-YEAR REPORT JANUARY 1–JUNE 30, 2021 | JULY 23, 2021
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 10 percent. At the end of the reporting period, the Group had two customers (2), whose customized share of the Group's net sales temporarily exceeded ten percent.
| EUR 1,000 | 1.1.–30.6.2021 | % | 1.1.–30.6.2020 | % | 1.1.–31.12.2020 | % |
|---|---|---|---|---|---|---|
| Net sales by market area | ||||||
| CIS (Russia) | 31 647 | 53 | 22 170 | 46 | 63 411 55 | |
| EMEA (Europe and Africa) | 12 860 | 21 | 11 625 | 24 | 25 495 22 | |
| NAM (North America) | 8 535 | 14 | 6 506 | 13 | 12 339 11 | |
| LAM (South America) | 3 756 | 6 | 4 620 | 10 | 7 625 7 | |
| APAC (Asia-Pacific area) | 3 414 | 6 | 3 236 | 7 | 6 125 5 | |
| TOTAL | 60 212 | 100 | 48 156 | 100 | 114 994 100 |
Finland accounted for 9 percent (6%) of net sales.
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
|---|---|---|---|
| Specification of net sales | |||
| Performance obligations to be satisfied over time | 43 385 | 33 655 | 81 966 |
| Performance obligations to be satisfied at a point in time | 16 827 | 14 501 | 33 028 |
| TOTAL | 60 212 | 48 156 | 114 994 |
| Project revenues entered as income from performance obligations to be satisfied over time currently undelivered | 109 551 | 113 457 | 118 179 |
| Amount of performance obligations to be satisfied over time not yet entered as income (order book) | 119 099 | 72 176 | 85 997 |
| 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 | 82 200 | 87 063 | 97 047 |
| - advance payments received | 61 422 | 74 676 | 76 066 |
| Current customer contract assets | 20 778 | 12 387 | 20 981 |
| Projects in which advance payments invoiced exceed the value be percentage of completion | |||
| - aggregate amount of costs incurred and recognized profits less recognized losses | 30 793 | 28 474 | 25 257 |
| - advance payments received | 62 225 | 50 548 | 39 768 |
| Current customer contract liabilities | 31 463 | 22 074 | 14 511 |
| Advance payments included in current liabilities in the balance sheet | |||
| Current customer contract assets | 31 463 | 22 074 | 14 511 |
| Current customer contract liabilities | 5 076 | 1 831 | 3 633 |
| Total | 36 539 | 23 906 | 18 144 |
| Advance payments of the customer contracts included in inventories in the balance sheet | |||
| Advance payments paid | 2 878 | 2 018 | 1 023 |
| Total | 2 878 | 2 018 | 1 023 |
12 HALF-YEAR REPORT JANUARY 1–JUNE 30, 2021 | JULY 23, 2021
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
|---|---|---|---|
| Research and development costs | |||
| Research and development costs for the period | -2 351 | -2 168 | -4 627 |
| Development costs recognized as an asset in the balance sheet | -187 | 165 | 367 |
| Research and development costs recognized as an expense for the period | -2 538 | -2 004 | -4 260 |
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
| --- | --- | --- | --- |
| Right-of-use assets | |||
| Book value, at the beginning of the period | 6 496 | 6 936 | 6 936 |
| Exchange rate differences | -11 | -125 | -327 |
| Increases | 1 405 | - | 666 |
| Depreciation for the period | -788 | -600 | -1 382 |
| Book value, at the end of the period | 7 102 | 6 211 | 5 917 |
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
| --- | --- | --- | --- |
| Goowill | |||
| Goodwill at the beginning of the period | 1 714 | 1 035 | 1 035 |
| Increases | - | 679 | 679 |
| Goodwill at the end of the period | 1 714 | 1 714 | 1 714 |
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
| --- | --- | --- | --- |
| Other intangible assets | |||
| Acquisition cost at the beginning of the period | 13 410 | 11 229 | 11 229 |
| Exchange rate differences | 7 | -13 | 10 |
| Additions | 1 221 | 454 | 2 084 |
| Reclassification between items | 865 | 23 | 87 |
| Acquisition cost at the end of the period | 15 503 | 11 694 | 13 410 |
| Accumulated depreciation and amortization at the beginning of the period | -9 197 | -8 574 | -8 574 |
| Exchange rate differences | -7 | 11 | 4 |
| Reclassification between items | - | -319 | -87 |
| Depreciation and amortization for the period | -286 | -23 | -540 |
| Accumulated depreciation and amortization at the end of the period | -9 490 | -8 906 | -9 197 |
| Book value of Other intangible assets, at the beginning of the period | 4 213 | 2 655 | 2 655 |
| Book value of Other intangible assets, at the end of the period | 6 013 | 2 788 | 4 213 |
| Property, plant and equipment | |||
| Acquisition cost at the beginning of the period | 54 990 | 55 188 | 63 509 |
| Exchange rate differences | 508 | -393 | -950 |
| Additions | 1 391 | 809 | 3 073 |
| Disposals | -124 | -43 | -1 885 |
| Reclassification between items | -813 | 4 | -85 |
| Acquisition cost at the end of the period | 55 952 | 55 564 | 63 635 |
| Accumulated depreciation and amortization at the beginning of the period | -44 088 | -44 334 | -45 720 |
| Exchange rate differences | -452 | -284 | 543 |
| Reclassification between items | - | - | 1 804 |
| Depreciation and amortization for the period | -1 019 | -894 | -3 442 |
| Accumulated depreciation and amortization at the end of the period | -45 559 | -45 512 | -46 816 |
| Book value of Property, plant and equipment, at the beginning of the period | 10 902 | 10 854 | 17 789 |
| Book value of Property, plant and equipment, at the end of the period | 10 393 | 10 052 | 16 820 |
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
Financial assets and liabilities
At the end of the reporting period June 30, 2021, 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 period, the fair value of the derivative contracts classified as financial assets was EUR 64 thousand and the fair value of the derivative contracts classified as financial liability EUR 67 thousand. The Group's interest-bearing liabilities include a lease liability amount of EUR 7,034 due to the adoption of the standard IFRS 16 Leases, at the end of the reporting period.
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
|---|---|---|---|
| Financial liabilities | |||
| Non-current interest-bearing liabilities | |||
| Lease liabilities | 5 355 | 4 872 | 4 496 |
| TOTAL | 5 355 | 4 872 | 4 496 |
| Current interest-bearing liabilities | |||
| Partial payments of financial loans | 1 904 | 1 881 | 1 857 |
| Lease liabilities | 1 708 | 1 339 | 1 385 |
| TOTAL | 3 612 | 3 220 | 3 242 |
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
| --- | --- | --- | --- |
| Derivatives | |||
| Nominal values of forward contracts in foreign currency | |||
| Hedge accounting | |||
| - Related to the hedging of net sales | 3 559 | 822 | 320 |
| Derivatives which do not meet the criteria of hedge accounting | |||
| - Related to financing | 757 | 804 | 733 |
| - Related to the hedging of net sales | 4 214 | 4 410 | 1 805 |
| Fair values of forward contracts in foreign currency | |||
| Hedge accounting | |||
| - Related to the hedging of net sales | -18 | -24 | -2 |
| Derivatives which do not meet the criteria of hedge accounting | |||
| - Related to financing | -5 | 15 | - |
| - Related to the hedging of net sales | 20 | -44 | 31 |
| EUR 1,000 | 30.6.2021 | 30.6.2020 | 31.12.2020 |
| --- | --- | --- | --- |
| Pledged assets and contingent liabilities | |||
| Mortgage agreements on behalf of subsidiaries | |||
| Financial loans | 1 942 | 1 881 | 1 857 |
| Other obligations | - | - | - |
| Other credit guarantee arrangements | 1 942 | 1 881 | 1 857 |
| Commercial bank guarantees on behalf of the Parent company and subsidiaries | 12 347 | 30 945 | 29 752 |
| Off-balance sheet leases | |||
| Rental liabilities maturing within one year | 78 | 94 | 106 |
| Rental liabilities maturing in one to five years | 16 | 36 | 23 |
| Total | 94 | 130 | 129 |
Share-based payments
The company decided to launch a new performance-based, share-value-based, long-term incentive plan, LTI Plan 2021-2023, on February 12, 2021.
Distribution of the profit for the financial year 2020
Raute Corporation's Annual General Meeting was held on March 31, 2021. The Annual General Meeting decided, according to the Board of Directors' proposal, to distribute a dividend of EUR 0.80 per share to be paid for series A and K shares, a total of EUR 3,411 thousand. The dividend payment date was April 13, 2021.
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
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 | 30.6.2021 | 30.6.2020 | 31.12.2020 | |||
|---|---|---|---|---|---|---|
| Wood products technology | ||||||
| Net sales | 60 212 | 48 156 | 114 994 | |||
| Operating profit | -2 749 | -4 030 | -1 852 | |||
| Assets | 111 413 | 90 539 | 86 346 | |||
| Liabilities | 76 995 | 51 068 | 45 840 | |||
| Capital expenditure | 2 612 | 2 124 | 4 481 | |||
| EUR 1,000 | 30.6.2021 | % | 30.6.2020 | % | 31.12.2020 | % |
| Assets of the wood products technology segment by geographical location | ||||||
| Finland | 96 729 | 87 | 74 334 | 82 | 70 158 | 84 |
| North America | 8 656 | 8 | 8 212 | 9 | 8 939 | 10 |
| China | 3 735 | 3 | 5 990 | 7 | 5 382 | 4 |
| Russia | 1 743 | 2 | 1 598 | 2 | 1 312 | 2 |
| South America | 260 | 0 | 146 | 0 | 260 | 0 |
| Other | 290 | 0 | 259 | 0 | 296 | 0 |
| Total | 111 413 | 100 | 90 539 | 100 | 86 346 | 100 |
| EUR 1,000 | 30.6.2021 | % | 30.6.2020 | % | 31.12.2020 | % |
| Capital expenditure of the wood products technology segment by geographical location | ||||||
| Finland | 2 477 | 95 | 2 087 | 98 | 4 377 | 98 |
| North America | 70 | 3 | 30 | 2 | 41 | 1 |
| China | 0 | 0 | - | - | 52 | 1 |
| Russia | 13 | 0 | - | - | 4 | 0 |
| South America | 6 | 0 | 6 | 0 | 6 | 0 |
| Other | 46 | 2 | 1 | 0 | 1 | 0 |
| Total | 2 612 | 100 | 2 124 | 100 | 4 481 | 100 |
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
16
HALF-YEAR REPORT JANUARY 1–JUNE 30, 2021 | JULY 23, 2021
| 30.6.2021 | 30.6.2020 | 31.12.2020 | |
|---|---|---|---|
| Number of personnel | |||
| Effective, on average, persons | 774 | 750 | 743 |
| On average, persons | 783 | 768 | 760 |
| In books at the end of the period, persons | 817 | 784 | 751 |
| Personnel working abroad at the end of the period | 252 | 249 | 250 |
| Personnel working abroad, % | 30,8 | 31,8 | 33,3 |
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
| Income statement, euros | 1.1.–30.6.2021 | 1.1.–30.6.2020 | 1.1.–31.12.2020 |
|---|---|---|---|
| CNY (Chinese juan) | 7,7992 | 7,7481 | 7,8708 |
| RUB (Russian rouble) | 89,6125 | 76,6825 | 82,6454 |
| CAD (Canadian dollar) | 1,5041 | 1,5031 | 1,5294 |
| USD (US dollar) | 1,2057 | 1,1015 | 1,1413 |
| SGD (Singapore dollar) | 1,6061 | 1,5409 | 1,5736 |
| CLP (Chilean peso) | 868,17 | 895,0233 | 902,5383 |
| Balance sheet, euros | 30.6.2021 | 30.6.2020 | 31.12.2020 |
| --- | --- | --- | --- |
| CNY (Chinese juan) | 7,6742 | 7,9219 | 8,0225 |
| RUB (Russian rouble) | 86,7725 | 79,6300 | 91,4671 |
| CAD (Canadian dollar) | 1,4722 | 1,5324 | 1,5633 |
| USD (US dollar) | 1,1884 | 1,1198 | 1,2271 |
| SGD (Singapore dollar) | 1,5976 | 1,5648 | 1,6218 |
| CLP (Chilean peso) | 875,23 | 916,3300 | 870,6600 |
FINANCIAL DEVELOPMENT
| FINANCIAL DEVELOPMENT | 30.6.2021 | 30.6.2020 | 31.12.2020 |
|---|---|---|---|
| Change in net sales, % | 25,0 | -38,5 | -24,0 |
| Exported portion of net sales, % | 90,5 | 94,4 | 94,2 |
| Operating result, % of net sales | -5,8 | -8,4 | -1,6 |
| Return on investment, (ROI), % | -12,0 | -13,0 | -2,5 |
| Return on equity, (ROE), % | -14,7 | -13,9 | -2,0 |
| Interest-bearing net liabilities, EUR million | -9,1 | -18,2 | -3,9 |
| Gearing, % | -26,5 | -46,1 | -9,6 |
| Equity ratio, % | 46,0 | 59,3 | 59,3 |
| Gross capital expenditure, EUR million | 2,6 | 2,1 | 5,2 |
| % of net sales | 4,3 | 4,3 | 4,5 |
| Research and development costs, EUR million | 2,5 | 2,2 | 4,6 |
| % of net sales | 4,2 | 4,5 | 4,0 |
| Order book, EUR million | 129 | 80 | 94 |
| Order intake, EUR million | 95 | 38 | 119 |
In addition to IFRS Key ratios, Raute Group publishes some commonly used financial key ratios (alternative performance measures). Calculation of key ratios has been presented in the annual financial statements.
| SHARE-RELATED DATA | 30.6.2021 | 30.6.2020 | 31.12.2020 |
|---|---|---|---|
| Earnings per share, (EPS), undiluted, EUR | -0,64 | -0,73 | -0,21 |
| Earnings per share, (EPS), diluted, EUR | -0,64 | -0,73 | -0,21 |
| Equity to share, EUR | 7,98 | 9,24 | 9,50 |
| Dividend per series A share, EUR | - | - | 0,80 |
| Dividend per series K share, EUR | - | - | 0,80 |
| Dividend per profit, % | - | - | -378,5 |
| Effective dividend return, % | - | - | 3,5 |
| Price/earnings ratio (P/E ratio) | - | - | -108,10 |
| Development in share price (series A shares) | |||
| Lowest share price for the period, EUR | 20,90 | 17,40 | 17,40 |
| Highest share price for the period, EUR | 24,80 | 27,40 | 27,40 |
| Average share price for the period, EUR | 22,82 | 21,84 | 20,57 |
| Share price at the end of the period, EUR | 22,30 | 19,10 | 22,70 |
| Market value of capital stock | |||
| - Series K shares, EUR million* | 22,1 | 18,9 | 22,4 |
| - Series A shares, EUR million | 73,0 | 62,5 | 74,3 |
| Total, EUR million | 95,1 | 81,4 | 96,8 |
| *Series K shares valued at the value of series A shares. | |||
| Trading of the company's shares (series A shares) | |||
| Trading of shares, pcs | 297 660 | 327 870 | 680 073 |
| Trading of shares, EUR million | 6,8 | 7,2 | 14,0 |
| Number of shares | |||
| - Series K shares, ordinary shares (20 votes/share) | 991 161 | 991 161 | 991 161 |
| - Series A shares (1 vote/share) | 3 272 033 | 3 272 033 | 3 272 033 |
| Total | 4 263 194 | 4 263 194 | 4 263 194 |
| Number of shares, weighted average, 1 000 pcs | 4 263 | 4 263 | 4 263 |
| Number of shares, diluted, 1 000 pcs | 4 263 | 4 283 | 4 267 |
| Number of shareholders | 6 101 | 5 908 | 6 134 |
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
DEVELOPMENT OF QUARTERLY RESULTS
DEVELOPMENT OF QUARTERLY RESULTS
| EUR 1,000 | Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Rolling 1.7.2020–30.6.2021 | Rolling 1.7.2019–30.6.2020 |
|---|---|---|---|---|---|---|
| NET SALES | 27 905 | 38 934 | 24 759 | 35 453 | 127 051 | 121 162 |
| Change in inventories of finished goods and work in progress | 76 | 3 992 | 993 | 904 | 5 965 | -2 042 |
| Other operating income | 50 | 85 | 168 | 11 | 314 | 189 |
| Materials and services | -14 634 | -27 244 | -12 622 | -19 649 | -74 149 | -58 243 |
| Employee benefits expense | -8 334 | -9 866 | -11 232 | -12 172 | -41 603 | -43 812 |
| Depreciation, amortization and impairments | -1 141 | -999 | -973 | -1 110 | -4 223 | -3 751 |
| Other operating expenses | -2 594 | -4 053 | -3 584 | -4 455 | -14 686 | -14 037 |
| Total operating expenses | -26 702 | -42 162 | -28 411 | -37 385 | -134 661 | -119 821 |
| OPERATING PROFIT | 1 329 | 849 | -2 490 | -1 018 | -1 331 | -513 |
| % of net sales | 4,8 | 2,2 | -10,1 | -2,9 | -1,0 | -0,4 |
| Financial income | 5 | 96 | 207 | 541 | 848 | 1 419 |
| Financial expenses | -71 | -163 | -167 | -175 | -576 | -293 |
| Financial expenses, net | -66 | -67 | 39 | 366 | 272 | 1 126 |
| PROFIT BEFORE TAX | 1 263 | 782 | -2 451 | -651 | -1 058 | 613 |
| % of net sales | 4,5 | 2,0 | -9,9 | -1,8 | -0,8 | 0,5 |
| Income taxes | -483 | 631 | -37 | 391 | 502 | -41 |
| TOTAL PROFIT FOR THE PERIOD | 780 | 1 412 | -2 488 | -260 | -556 | 572 |
| % of net sales | 2,8 | 3,6 | -10,0 | -0,7 | -0,4 | 0,5 |
| Attributable to | ||||||
| Equity holders of the Parent company | 780 | 1 412 | -2 488 | -260 | -556 | 572 |
| Earnings per share, EUR | ||||||
| Undiluted earnings per share | 0,18 | 0,33 | -0,58 | -0,06 | -0,13 | 0,13 |
| Diluted earnings per share | 0,18 | 0,33 | -0,58 | -0,06 | -0,13 | 0,13 |
| 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 | 4 284 | 4 267 | 4 263 | 4 263 | 4 263 | 4 283 |
| Rolling 1.7.2020–30.6.2021 | Rolling 1.7.2019–30.6.2020 | |||||
| FINANCIAL DEVELOPMENT QUARTERLY | Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | 1.7.2020–30.6.2021 | Rolling 1.7.2019–30.6.2020 |
| Order intake during the period, EUR million | 11 | 70 | 30 | 65 | 176 | 128 |
| Order book at the end of the period, EUR million | 62 | 94 | 98 | 129 | 129 | 80 |
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
SHAREHOLDERS
20 LARGEST SHAREHOLDERS AT JUNE 30, 2021 BY NUMBER OF SHARES
| 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 |
| 2. | Laakkonen Mikko Kalervo | - | 119 919 | 119 919 | 2,8 | 119 919 | 0,5 |
| 3. | Mandatum Henkivakuutus-osakeyhtiö | - | 111 621 | 111 621 | 2,6 | 111 621 | 0,5 |
| 4. | Suominen Pekka | 48 000 | 62 429 | 110 429 | 2,6 | 1 022 429 | 4,4 |
| 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 |
| 7. | Suominen Tiina Sini-Maria | 48 000 | 52 686 | 100 686 | 2,4 | 1 012 686 | 4,4 |
| 8. | Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | 2,0 | 723 116 | 3,1 |
| 9. | Mustakallio Mika Tapani | 62 100 | 21 170 | 83 270 | 2,0 | 1 263 170 | 5,5 |
| 10. | Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | 1,9 | 1 231 609 | 5,3 |
| 11. | Mustakallio Kari Pauli | 60 480 | - | 60 480 | 1,4 | 1 209 600 | 5,2 |
| 12. | Mustakallio Marja Helena | 46 740 | 12 547 | 59 287 | 1,4 | 947 347 | 4,1 |
| 13. | Särkijärvi Anu Riitta | 12 000 | 43 256 | 55 256 | 1,3 | 283 256 | 1,2 |
| 14. | Särkijärvi Timo Juha | 12 000 | 43 256 | 55 256 | 1,3 | 283 256 | 1,2 |
| 15. | Mustakallio Ulla Sinikka | 47 740 | 6 958 | 54 698 | 1,3 | 961 758 | 4,2 |
| 16. | Suominen Jukka Matias | 24 960 | 27 964 | 52 924 | 1,2 | 527 164 | 2,3 |
| 17. | Keskinäinen työeläkeva-kuutusyhtiö Varma | - | 51 950 | 51 950 | 1,2 | 51 950 | 0,2 |
| 18. | Relander Pär-Gustaf | - | 51 000 | 51 000 | 1,2 | 51 000 | 0,2 |
| 19. | Suominen Jussi | 48 000 | - | 48 000 | 1,1 | 960 000 | 4,2 |
| 20. | Keskiaho Ilta Marjaana | 24 780 | 19 094 | 43 874 | 1,0 | 514 694 | 2,2 |
| Total | 635 200 | 1 298 855 | 1 934 055 | 45,4 | 14 002 855 | 60,6 |
20 LARGEST SHAREHOLDERS AT JUNE 30, 2021 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 | |
|---|---|---|---|---|---|---|
| 1. Mustakallio Mika Tapani | 62 100 | 21 170 | 83 270 | 2,0 | 1 263 170 | 5,5 |
| 2. Särkijärvi Anna Riitta | 60 480 | 22 009 | 82 489 | 1,9 | 1 231 609 | 5,3 |
| 3. Mustakallio Kari Pauli | 60 480 | - | 60 480 | 1,4 | 1 209 600 | 5,2 |
| 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 |
| 6. Suominen Pekka | 48 000 | 62 429 | 110 429 | 2,6 | 1 022 429 | 4,4 |
| 7. Suominen Tiina Sini-Maria | 48 000 | 52 686 | 100 686 | 2,4 | 1 012 686 | 4,4 |
| 8. Mustakallio Ulla Sinikka | 47 740 | 6 958 | 54 698 | 1,3 | 961 758 | 4,2 |
| 9. Suominen Jussi | 48 000 | - | 48 000 | 1,1 | 960 000 | 4,2 |
| 10. Mustakallio Marja Helena | 46 740 | 12 547 | 59 287 | 1,4 | 947 347 | 4,1 |
| 11. Keskiaho Kaija Leena | 33 600 | 51 116 | 84 716 | 2,0 | 723 116 | 3,1 |
| 12. Mustakallio Hanna Leena | 32 975 | 5 565 | 38 540 | 0,9 | 665 065 | 2,9 |
| 13. Mustakallio Jukka Jere-mias | 32 975 | - | 32 975 | 0,8 | 659 500 | 2,9 |
| 14. Keskiaho Vesa Heikki | 29 680 | - | 29 680 | 0,7 | 593 600 | 2,6 |
| 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 |
| 17. Keskiaho Ilta Marjaana | 24 780 | 19 094 | 43 874 | 1,0 | 514 694 | 2,2 |
| 18. Sundholm Göran | - | 500 000 | 500 000 | 11,7 | 500 000 | 2,2 |
| 19. Kultanen Leea Annikka | 21 595 | 8 031 | 29 626 | 0,7 | 439 931 | 1,9 |
| 20. Piik Ari | 20 855 | 418 | 21 273 | 0,5 | 417 518 | 1,8 |
| Total | 777 160 | 897 583 | 1 674 743 | 39,3 | 16 440 783 |
MANAGEMENT'S SHAREHOLDING AND NOMINEE-REGISTERED SHARES
| 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 June 30, 2021 | ||||||
| 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 |
*The figures include the holdings of their own, minor children and control entities.
Nominee-registered shares at June 30, 2021 - 93 381 93 381 2,2 93 381 0,4
HALF-YEAR REPORT JANUARY 1-JUNE 30, 2021 | JULY 23, 2021
RAUTE CORPORATION
Board of Directors
PRESENTATION OF THE HALF-YEAR REPORT ONLINE ON JULY 23, 2021, AT 2:00 PM:
Analysts, investors and the media can watch the presentation of the Half-year Report online on July 23, 2021, starting at 2 p.m. via MS Teams. The Teams link will be sent to registered participants by email. The event will take place in Finnish. Registrations to [email protected].
The Half-year Report will be presented by Mr. Tapani Kiiski, President and CEO, and Ms. Tarja Järvinen, CFO. Analysts, investors and the media can send questions related to the Half-year Report in advance to the email address [email protected] on July 23, 2021, until 2.30 p.m., after which President and CEO Tapani Kiiski and Group Vice President, CFO Tarja Järvinen will answer the sent questions in a live Half-year 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 Half-year Report presentation, starting at 3 p.m. The phone number is +358 400 814 148.
NEXT INTERIM REPORT:
Raute Corporation's Interim Report for January 1–September 30, 2021 will be published on Friday, October 22, 2021.
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.
HALF-YEAR REPORT JANUARY 1–JUNE 30, 2021 | JULY 23, 2021
RAUTE
Raute Corporation
Rautetie 2, P.O. Box 69
15551 Nastola, Finland
Tel. +358 3 829 11