RAPALA VMC PLC STOCK EXCHANGE RELEASE (6)

Transcription

1 RAPALA VMC PLC STOCK EXCHANGE RELEASE (6) RAPALA VMC PLC PRELIMINARY OPENING BALANCE SHEET AND COMPARATIVE FINANCIAL INFORMATION 2004 ACCORDING TO IFRS Rapala VMC Group applies IFRS (International Financial Reporting Standards) standards as of 1 January The first interim report according to IFRS will be published on 11 May The Group s date of transition to IFRS accounting standards is 1 January The essential changes to financial information for 2004 arising from the FAS/IFRS transition are presented in this stock exchange release. The effects of IFRS transition are not material. The main adjustments relate to reversal of goodwill amortizations, recording financial leases in the balance sheet, expensing the costs of the Group s stock option program at fair value in the income statement, reversal of capitalized foreign exchange differences on long-term loans. The reconciliation of extraordinary items to operating income and expenses and to taxes have changed the structure of the income statement but not the equity and net profit for the period. The attachment presents comparative IFRS information for For further information, please contact: Mr. Jouni Grönroos, CFO, Rapala VMC Oyj Jorma Kasslin President and CEO Rapala VMC Corporation is the leading manufacturer and distributor of fishing lures and treble hooks in the world. The group distributes lures, hooks and other fishing related products in the largest market in the world in North America, through its own distribution companies. Rapala has also a leading distribution network in Europe for fishing tackle products and other outdoor related products. Its primary manufacturing facilities are located in Finland, France, Ireland, Estonia and China. The Group, with net sales of EUR 174 million, employs approximately 3,000 people in 23 countries.

2 RAPALA VMC PLC STOCK EXCHANGE RELEASE (6) IFRS COMPARISON FIGURES Unaudited GROUP S INCOME STATEMENT, IFRS EUR (1000) IFRS IFRS IFRS IFRS 1-3/04 1-6/04 1-9/ /04 Sales Other operating income and expenses Operating profit Financial income and expenses Profit before taxes Taxes Net profit for the period Attributable to: Equity holders of company Minority interest Earnings per share, basic (EUR) 0,19 0,38 0,35 0,32 Earnings per share, diluted (EUR) 0,19 0,38 0,35 0,32 Return on equity % 12,7 % 25,1 % 23,1 % 21,2 % Return on investment % 6,6 % 13,4 % 13,4 % 13,7 % GROUP S INCOME STATEMENT, FAS EUR (1000) FAS FAS FAS FAS 1-3/04 1-6/04 1-9/ /04 Sales Other operating income and expenses Operating profit Financial income and expenses Profit before extraordinary items Extraordinary expenses Taxes Minority interest Net profit for the period Earnings per share, basic (EUR) 0,17 0,31 0,27 0,27 Earnings per share, diluted (EUR) 0,17 0,31 0,27 0,27 Return on equity % 11,2 % 20,6 % 18,1 % 18,5 % Return on investment % 6,0 % 12,4 % 12,2 % 13,6 %

3 RAPALA VMC PLC STOCK EXCHANGE RELEASE (6) GROUP S BALANCE SHEET, IFRS IFRS IFRS IFRS IFRS EUR (1000) 3/04 6/04 9/04 12/04 Fixed assets Inventories Receivables & other current assets Cash in hand and at banks Total assets Equity Long-term debt Short-term debt Total liabilities Equity per share (EUR) 1,61 1,64 1,64 1,58 Equity ratio % 30,8 % 30,5 % 34,2 % 32,0 % Gearing % 144,3 % 137,8 % 126,2 % 137,2 % GROUP S BALANCE SHEET, FAS FAS FAS FAS FAS EUR (1000) 3/04 6/04 9/04 12/04 Fixed assets Inventories Receivables & other current assets Cash in hand and at banks Total assets Equity Minority interest Long-term debt Short-term debt Total liabilities Equity per share (EUR) 1,62 1,59 1,56 1,49 Equity ratio % 31,3 % 30,2 % 33,6 % 31,1 % Gearing % 140,9 % 139,1 % 129,1 % 142,7 % SEGMENT INFORMATION (11) Sales by geographical area IFRS IFRS IFRS IFRS IFRS 1-3/04 1-6/04 1-9/ /04 North-America Europe Other countries /. Intra group sales Total

4 RAPALA VMC PLC STOCK EXCHANGE RELEASE (6) Operating profit by geographical area IFRS IFRS IFRS IFRS IFRS 1-3/04 1-6/04 1-9/ /04 North-America Europe Other countries /. Eliminations Total RECONCILIATION OF NET PROFIT EUR (1000) Q1 Q1 - Q2 Q1 - Q3 Q1 - Q Net profit for the period before minority interest according to FAS Effects of IFRS Goodwill amortizations (1) Financial instruments (2) Foreign exchange rates (3) Stock options (4) Deferred taxes (5) Other IFRS adjustments (10) Total IFRS adjustments Profit for the period according to IFRS RECONCILIATION OF EQUITY EUR (1000) 12/2003 3/2004 6/2004 9/ /2004 Equity according to FAS Effects of IFRS: Goodwill amortizations (1) Financial instruments (2) Foreign exchange rates (3) Stock options (4) Inventories (6) Leases (7) Employee benefits (8) Deferred taxes (5) Minority interest (9) Total IFRS adjustments Equity according to IFRS

5 RAPALA VMC PLC STOCK EXCHANGE RELEASE (6) EFFECTS OF IFRS ON BALANCE SHEET FAS IFRS- IFRS EUR (1000) 12/2003 effects 1/2004 Fixed assets Inventories Receivables and other current assets Cash in hand and at banks Total assets Equity Minority interest Long-term debt Short-term debt Total liabilities EFFECTS OF IFRS ON BALANCE SHEET FAS IFRS- IFRS EUR (1000) 12/2004 effects 12/2004 Fixed assets Inventories Receivables and other current assets Cash in hand and at banks Total assets Equity Minority interest Long-term debt Short-term debt Total liabilities NOTES 1. According to IFRS goodwill is not amortized but impairment tested. Goodwill has been tested for impairment according to the standard, and no impairment losses were recognized. (IAS 36) 2. All derivates are measured at fair value and changes recorded in the income statement. Derivates related to off-balance sheet items are recorded in financial items. (IAS 32 and IAS 39) 3. Foreign exchange rate differences (capitalized according to FAS) are recorded in the income statement based on the rate at the end of the period. (IAS 21) 4. The fair value of the Group s 2003 and 2004 stock option programs are calculated based on option pricing model and are expensed during the vesting periods.(ifrs 2) 5. Deferred taxes are recognized for all taxable IFRS adjustments. (IAS 12) 6. A portion of fixed general production costs are added to the purchase price of raw materials. (IAS 2)

6 RAPALA VMC PLC STOCK EXCHANGE RELEASE (6) 7. Certain lease agreements have been recorded as financial leases. According to IFRS, financial lease agreements are entered in the balance sheet and amortized during the asset s economic life. (IAS 17) 8. Certain pension arrangements in the Group s international subsidiaries have been classified as defined benefit plans. Finnish TEL pension scheme is handled as defined contribution plan. (IAS 19) 9. Minority interest is included in equity in IFRS balance sheet. (IAS 1) 10. The other IFRS adjustments are mainly due to minor changes to items presented in paragraphs 6, 7 and Segment reporting is based on geographical location of the customers. The Group does not use business segments in its reporting. Opening balance sheet and comparative financial information for 2004 have been prepared in accordance with IFRS standards effective on 31 December 2004.