Interim Report T2/

Transcription

1 Interim Report T2/ Board of Directors, 13 February 2015

2 1 VAPO OY INTERIM REPORT 1 MAY 31 DECEMBER 2014 September December Group turnover in the September December period was EUR million (EUR million in the same period in 2013). Operating margin (EBITDA) was EUR 25.7 million, or 16.1% of turnover (EUR 28.3 million, 13.7%). The operating result (EBITA) was EUR 14.1 million, or 8.9% of turnover (EUR 11.3 million, 5.5%). The operating result includes one-off items of EUR 3.0 million (EUR 3.3 million). Free cash flow before taxes was EUR -4.5 million (EUR -7.7 million). Gross investments were EUR 19.3 million (EUR 21.9 million). Net investments were EUR 10.8 million (EUR 4.3 million). 3.7 TWh of energy peat was delivered (3.7 TWh). May December Group turnover in the May December period was EUR million (EUR million in the same period in 2013). Operating margin (EBITDA) was EUR 39.2 million, or 13.4% of turnover (EUR 42.3 million, 11.6%). The operating result (EBITA) was EUR 10.9 million, or 3.7% of turnover (EUR 7.4 million, 2.0%). The operating result includes one-off items of EUR 3.0 million. The pre-tax return on invested capital (ROIC) was 4.3% (0.3%). Free cash flow before taxes was EUR million (EUR million). Gross investments were EUR 54.9 million, ratio to depreciation 2.0 (EUR 38.7 million, 2.2). Net investments were EUR 36.0 million, ratio to depreciation 1.3 (EUR 21.1 million, 1.2). The equity ratio on 31 December 2014 was 35.9% (37.1%). Interest-bearing net debt on 31 December 2014 was EUR million (EUR million). The ratio of interest-bearing net debt to operating margin (net debt / EBITDA) on 31 December 2014 was 5.6 (4.8). 5.7 TWh of energy peat was delivered (5.5 TWh). On 1 May 2014, the company adopted thrice-yearly reporting instead of the previous quarterly reporting. The comparison figures for the period 1 May 31 December 2013 are presented where available. CEO Tomi Yli-Kyyny on the second third of the year: Vapo fulfilled its promises regarding environmental investments and focused on improving the security of supply According to a customer survey conducted in the autumn, nearly 80 per cent of Vapo s customers are satisfied with the company. Vapo received praise regarding areas including the reliability of supply, quality, and responsibility. The aspect that Vapo s customers value most is that deliveries are made on time, as agreed. Vapo has increased its fuel reserves to ensure fuel deliveries to all of its customers in the upcoming heating season and the one following it.

3 2 Fuel tax on energy peat was reduced at the beginning of 2015 from EUR 4.9/MWh to EUR 3.4/MWh. The subsidy for electricity production from wood chips was increased correspondingly. At the same time, taxes on imported fuels increased. The overall impact of the changes in taxes and subsidies on the markets and the company s result will become more evident in the next heating season. Vapo expects the Finnish Government to stick to its stated plan of lowering the tax on energy peat in 2016 to the same level as in 2012, or EUR 1.9/MWh. Vapo revised its strategy in The company s goal is to be the world leader in the local energy value chain. This means even closer cooperation with customers to develop products and services according to customer needs. Vapo will seek growth particularly in heating production, in areas close to its own fuel reserves. During the period under review, Vapo acquired the district heating businesses of Åstorps Bioenergi AB and Sysmä municipality. Vapo also restructured its organisation at the beginning of 2015 to match its new strategy. The commitments made for 2014 as part of Vapo s environmental programme have been fulfilled, with the total investment in the programme now exceeding EUR 30 million. In the next production season, all production areas will be covered by the best available technology. Vapo has also further enhanced environmental inspections in peat production. Going forward, Vapo will continue to focus on transparency in operations and communications on the overall impact of the use of peat. Only 0.7% of Finnish peatlands are used for peat production, but the public perception is that this figure is much higher. However, the popularity of peat has increased among growing concerns about self-sufficiency in energy and the security of supply, and because peat production preserves and creates jobs. Vapo has contributed to improving the security of supply by consciously increasing its fuel reserves. At the end of the reporting period, Vapo had nearly 19TWh of energy peat in its reserves, which is equal to nearly two years worth of demand. Financial development The Group s turnover in the second third of the revised financial year was EUR million (EUR million), down 23 per cent from the comparison period. The turnover for the comparison period includes the Hankasalmi sawmill, sold in January 2014, and the Swedish pellet operations that were merged in a business transfer with the corresponding business operations of Lantmännen Agroenergi to form a joint venture in June The combined turnover of these operations in the comparison period amounted to approximately EUR 39 million. Operating margin (EBITDA) in the second third of the financial year was EUR 25.7 million, or 16% of turnover (EUR 28.3 million, 14%). Consolidated operating profit in September December amounted to EUR 14.1 million (EUR 11.3 million). One-off items increased operating profit by EUR 3.0 million. The Group s cumulative turnover in the May December period was EUR million (EUR million). Operating profit in May December was EUR 10.9 million (EUR 7.4 million). The operating margin in May December was EUR 39.2 million, or 13% of turnover (EUR 42.3 million, 12%). The pre-tax return on invested capital (pre-tax ROIC, previous 12 months) was 4.3 per cent (0.3%).

4 3 Consolidated key figures MEUR 9 12/ / / /2013 1/2013 4/2014 Turnover Operating profit (EBITA) % of turnover Operating profit (EBITA) before impairments % of turnover Result for the period Operating margin (EBITDA) /- Change in working capital Net investments Free cash flow before taxes Gross investments Return on invested capital % * Return on invested capital % before impairments * Return on equity % * Balance sheet total Shareholders equity Interest-bearing net debt Equity ratio % Interest-bearing net debt/operating margin Gearing % Average number of employees 977 1,128 1,091 *) Previous 12 months **) In calculating the equity ratio, the capital loan on the balance sheet was calculated as shareholders equity Developments by business segment Turnover by segment MEUR 9 12/ /2013 Change % 5 12/ /2013 Change % 1/2013 4/2014 Peat Products Energy peat Environmental peat Wood Fuels Forest fuels Pellets Heat and Power Kekkilä Group Vapo Timber Others Forest BtL Mustankorkea Group administration & shared by businesses Inter-segment turnover Total

5 4 Operating profit/loss by segment MEUR 9 12/ /2013 Change % 5 12/ /2013 Change % 1/2013 4/2014 Peat Products Energy peat Environmental peat Wood Fuels Forest fuels Pellets Heat and Power Kekkilä Group Vapo Timber Others Forest BtL Mustankorkea Group administration & shared by businesses Eliminations Total Peat Products The turnover of the business area in the September December period was EUR 59.3 million (EUR 61.5 million). The operating result for the period was EUR 12.3 million (EUR 14.4 million). The operating result does not include one-off items (in the reference period: EUR 4.0 million in one-off items). Gross investments in the second third of the financial year totalled EUR 11.2 million (EUR 8.7 million). The investments were focused on improving water treatment systems, upgrading production areas and the preparation and acquisition of new production areas. Turnover from energy peat was EUR 52.6 million (EUR 54.0 million) and the operating result was EUR 10.7 million (EUR 12.6 million). Energy peat deliveries totalled 3.72 TWh (3.72 TWh). Of this, deliveries in Finland were 3.28 TWh, in Sweden 0.37 TWh and in the Baltic countries 0.07 TWh. Turnover from environmental peat was EUR 8.3 million (EUR 8.9 million) and the operating result was EUR 1.6 million (EUR 1.8 million). The business area s turnover in May December was EUR 94.9 million (EUR 97.4 million) and the operating result was EUR 17.5 million (EUR 19.0 million). Energy peat deliveries in May December totalled 5.7 TWh (5.5 TWh). Of this, deliveries in Finland were 5.2 TWh, in Sweden 0.4 TWh and in the Baltic countries 0.1 TWh.

6 5 Wood Fuels The business area s turnover in September December amounted to EUR 28.1 million (EUR 48.0 million). The operating result for the period was EUR 1.4 million (EUR 1.3 million). Gross investments were EUR 0.6 million (EUR 0.2 million). The turnover in the May December period was EUR 46.2 million (EUR 71.3 million) and the operating result was EUR -0.8 million (EUR -0.7 million). The difference compared to the turnover in the comparison period is attributable to the Swedish pellet operations that were merged in a business transfer with the corresponding business operations of Lantmännen Agroenergi in June Turnover from forest fuels and sawmill industry by-products was EUR 15.0 million (EUR 18.3 million) in the second third of the financial year, and the operating result was EUR 0.8 million (EUR -0.3 million). The sales of forest fuels totalled 727 GWh (940 GWh). Of this, 615 GWh (818 GWh) were sold in Finland in September December and in the Baltic countries and Sweden a total of 112 GWh (122 GWh). The sales of forest fuels were substantially lower in September December than in the corresponding period a year earlier. This led to regional excess inventory and a contraction of fuel purchases. The turnover of the pellet business in the second third of the financial year amounted to EUR 13.0 million (EUR 29.8 million) and the operating result was EUR 0.7 million (EUR 1.6 million, including one-off items of EUR 1.2 million). Turnover from the pellet business in Finland in the second third of the year was EUR 11.6 million (EUR 10.8 million) and the operating result was EUR 0.4 million (EUR 0.3 million). In September December, a total of 71,000 tonnes (67,000 tonnes) of pellets were delivered from Finland. Of this total, exports and the Group s internal sales accounted for 30,000 tonnes (32,000 tonnes). Heat and Power The turnover of the business area in the September December period was EUR 34.6 million (EUR 35.1 million). The operating result for the period was EUR 3.1 million (EUR 1.8 million). The operating result does not include one-off items (in the reference period: EUR -1.1 million in one-off items). Gross investments totalled EUR 6.0 million (EUR 9.4 million). Deliveries of heat and steam to customers totalled 581 GWh (558 GWh). In Finland, a total of 426 GWh of heat and steam was supplied (405 GWh), in Sweden 146 GWh (145 GWh) and in Estonia 9GWh (8 GWh). Electricity sales, which take place entirely in Finland, amounted to 29 GWh (45 GWh). The factors contributing to electricity sales being lower than in the comparison period included a broken turbine at the Forssa power plant. The power plant has operated normally since late December. The turnover of the business area in the May December period was EUR 53.3 million (EUR 52.9 million). The operating result for the period was EUR -1.1 million (EUR -2.3 million). Deliveries of heat and steam to customers totalled 863 GWh (799 GWh). Electricity sales were 39 GWh (53 GWh).

7 6 In line with its revised strategy, Vapo has grown its heating business by agreeing in December to acquire the district heating business operations of Åstorps Bioenergi AB in Sweden and Sysmä municipality in Finland. Synergies in the energy business have also been achieved by expanding remote operation to heating plants, power plants and pellet manufacturing plants. Of the heat, steam and electricity produced by the Heat and Power business area, 56% (60%) was produced from wood fuels, 39% (33%) from peat and 5% (7%) from fossil fuels. Kekkilä Group The turnover of the Kekkilä Group in the September December period was EUR 19.4 million (EUR 19.5 million). The operating result for the period was EUR -2.9 million (EUR -3.0 million). Gross investments totalled EUR 1.1 million (EUR 1.6 million). The operating result was weighed down by peat production costs in Sweden being higher than in the comparison period, as well as the decline in the sales volume of the consumer business. The result for the comparison period includes a one-off loss of EUR -0.8 million from the divestment of the Gävle composting plant in Sweden. The turnover of the consumer business in September December was EUR 4.4 million (EUR 5.9 million). Turnover declined in all main markets due to advanced sales being weaker than in the comparison period. The turnover of the professional growing business grew by EUR 10 million and amounted to EUR 8.3 million (EUR 7.3 million). The turnover of the landscaping business remained unchanged from the previous year at EUR 4.4 million (EUR 4.4 million). The turnover of the environmental management business was EUR 1.6 million (EUR 1.9 million). The turnover of the Kekkilä Group in the May December period was EUR 52.1 million (EUR 60.0 million). The turnover of the consumer business was EUR 20.7 million (EUR 28.1 million), the turnover of the professional growing business was EUR 16.1 million (EUR 15.7 million), the turnover of the landscaping business was EUR 10.8 million (EUR 12.1 million) and the turnover of the environmental management business was EUR 3.2 million (EUR 3.8 million). The Kekkilä Group s operating result for the period was EUR -2.2 million (EUR -0.8 million). The turnover for the financial year is decreased by the fact that the bulk of the spring season landed on the previous financial year. The economic recession is reflected in a decline in consumer demand and landscaping investments. During the second third of the financial year, the operations of the Kekkilä Group were focused on its core businesses by discontinuing the local professional growing business in Sweden. Hasselfors Garden AB sold its unpackaged professional growing product business to Weibuls Horto AB. Hasselfors Garden will continue to manufacture the products as a contract manufacturer, in addition to which Weibuls Horto will transfer manufacturing operations for its own packaged professional growing products to Hasselfors. The companies will also engage in sales cooperation by acting as resellers for each other s products. In Finland, Kekkilä Oy sold its Mikkeli composting plant to Metsäsairila Oy but continues to operate the plant.

8 7 Vapo Timber The turnover of Vapo Timber in the September December period was EUR 28.5 million (EUR 52.7 million). The operating result for the period was EUR 0.0 million (EUR -0.6 million). Gross investments were EUR 0.2 million (EUR 0.0 million). Cumulative turnover from the start of the financial year amounted to EUR 59.5 million (EUR 99.8 million) and the operating result to EUR 0.7 million (EUR -2.7 million). The comparison figures include the Hankasalmi sawmill, which was sold in January Deliveries of sawn timber from the Lieksa and Nurmes sawmills in September December totalled 120,000 cubic metres (130,000 m 3 ) and deliveries from the start of the financial year totalled 250,000 cubic meters, equal to the corresponding period in the previous year. The utilisation rate of the sawmills was good and, unlike in previous years, production did not need to be constrained until late December. Other activities The impact of other business activities on the operating result in the September December period was EUR -3.9 million (EUR -3.2 million). The impact of group administration and items shared by business areas on the operating result in the second third of the financial year was EUR -4.5 million (EUR -3.6 million). Gross investments shared by the business areas were EUR 0.2 million (EUR 2.0 million). The operating result of other activities for the May December period was EUR -8.0 million (EUR -6.1 million). Group administration and items shared by business areas accounted for EUR -9.2 million (EUR -7.2 million) of this amount. The turnover of Mustankorkea Oy in September December was EUR 4.0 million (EUR 3.7 million) and the operating result was EUR 1.0 million (EUR 0.9 million). The cumulative turnover for May December was EUR 7.8 million (EUR 7.8 million) and the operating result was EUR 1.8 million (EUR 2.0 million). Cash flow, investments and financing As a result of the successful peat production season and inventory left over from the previous year, the amount of capital tied up in inventory was higher than usual. Free cash flow before taxes in September December was EUR -4.5 million (EUR -7.7 million). Cash flow for May December amounted to EUR million (EUR million). Net investments for the second third of the financial year amounted to EUR 10.8 million (EUR 4.3 million) and cumulative net investments from the start of the financial year were EUR 36.0 million (EUR 21.1 million). Vapo s long-term financing was renewed in the second third of the financial year and the maturity profile of loans was extended in line with previously set goals. As part of the financing arrangements, at the beginning of 2015 the company agreed on withdrawing a loan of EUR 50 million for a period of 15 years. Interest-bearing net debt on 31 December 2014 was EUR million (EUR million). The ratio of interest-bearing net debt to operating margin (net debt/ebitda) on 31 December 2014 was 5.6 (4.8). Short-term interest-bearing debt was EUR million (EUR million). Of Vapo s long-term interest-bearing debt, 63 per cent is covered by a covenant related to the company s equity ratio. The terms of the covenant were met at the end of the review period. The equity ratio at the end of December was 35.9

9 8 per cent (37.1%) and the gearing ratio was per cent (127.0%). The consolidated balance sheet total was EUR million (EUR million). The Group s net financing items were EUR -9.9 million (EUR -9.5 million). Net financing items were 3.4 per cent of turnover (2.6%). Changes in the organisation Vapo revised its organisational structure at the beginning of Under its revised strategy, Vapo aims to improve customer service and improve the efficiency of its operations throughout the energy value chain. To this end, the previously separate peat and wood fuels business areas have been combined into a single business area called Fuels, led by Pasi Koivisto. Markus Hassinen continues as the Director of the Heat and Power business area and Jyrki Vainionpää continues as Vapo Oy s Chief Operating Officer responsible for the Finnish and Estonian regional organisations. The aim of the new Vapo Ventures business area is to develop and commercialise innovative business solutions based on the company s strengths. The Vapo Ventures business area is led by Mia Suominen. Changes in Group structure in the second third of the financial year Vapo Oy agreed on the sale of Mustankorkea Oy to the City of Jyväskylä in 2012, and the transaction was completed after the conclusion of appeal processes in December In Sweden, the peat production company Torvförädling i Sverige AB was merged with its parent company Hasselfors Garden AB on 31 December Vapo Timber Oy carried out a business transfer on 31 December 2014 to separate the Northern Karelian sawmill business from the company s other operations. The sawmill business will continue to operate normally from 1 January 2015 under the name Vapo Timber Oy. The original company, which will be tasked with managing certain assets, will remain as a whollyowned subsidiary of Vapo Oy under the name Kuuhanka Timber Oy. The plan is to merge the company with the parent company by the end of the current financial year. The machinery and equipment of Vapo s pellet production plant in Poland have been sold and the sale of the property will be completed by the end of January 2015, after which the operations of the Polish subsidiary will be discontinued by the end of the financial year.

10 9 Natural seasonal fluctuation in activities Vapo s energy business is cyclical due to seasonal variation in the demand for heating. In the first third of the financial year, from May to August, the focus is on fuel production and acquisition, while the second third of the financial year brings with it the start of the heating season, and the volume of fuel deliveries increases. The final third of the financial year is the strongest period for the company s sales of heating, electricity and fuels. The business operations of Kekkilä and Vapo Timber are also subject to seasonal fluctuations, as demand typically peaks in the spring. In addition, the general economic situation is reflected in consumer purchasing behaviour and construction investments, resulting in variation in the result of both Kekkilä and Vapo Timber. Personnel The Group employed an average of 977 persons in the May December period (1,128). Employees by segment, average 5 12/ /2013 FY2014 Peat Products Wood Fuels Heat and Power Kekkilä Group Vapo Timber Others Total 977 1,128 1,091 Employees in Finland and other countries, average 5 12/ /2013 FY2014 Finland Other countries Total 977 1,128 1,091 Near-term risks to businesses Energy policy and the taxation of fuels are, depending on future decisions, significant risks as well as opportunities for the energy use of peat and wood. Changes to the production subsidies for electricity produced from renewable energy sources, which are currently in the preparatory stages, create uncertainty regarding the use of domestic fuels and complicate the longterm development of the industry. The geopolitical situation caused by the Ukrainian crisis can also have unforeseeable effects on the energy sector, creating risks as well as opportunities. In spite of Vapo s water conservation programme, the increasing difficulty of obtaining environmental permits for new peat production areas is a risk from the perspective of the future of

11 10 Vapo s peat business. Continuously changing regulations, such as the future interpretation of the legislative provision on nature value included in the Environmental Protection Act in the decision-making practice of the authorities, may complicate the acquisition of environmental permits for peat production areas and increase uncertainty related to the use of peat. The mild start to the winter significantly reduced Vapo s fuel and heating sales in late If the first months of 2015 are warmer than average, achieving the targets for the financial year will be challenging with regard to Vapo s Fuels business area and the Heat and Power business area. Vapo is not aware of any significant risks related to legal disputes. There have been no other significant changes to Vapo Group s near-term business risks compared to the risks presented in the previous financial statements. Extraordinary General Meeting Vapo Oy held an Extraordinary General Meeting on 24 November 2014 after Pentti Oinonen, Member of Parliament, gave up the Chairmanship of the Supervisory Board at the beginning of November. The General Meeting selected Pirkko Mattila, Member of Parliament, as the new Chairman of the Supervisory Board. Outlookfor the remainder of the financial year, to 30 April 2015 The price competitiveness of peat is expected to improve slightly due to the strong inventory levels and changes in taxation, although the change in peat tax was smaller than what was hoped for. The result for the full financial year will be determined by the current winter season s heating demand, the price of electricity and the price development of competing fuels. In particular, the decline in the world market prices of oil and gas, as well as low coal prices, affect the attractiveness of peat and pellet as a primary fuel. In the long term, the challenge faced by energy companies and Finnish fuel suppliers is short-term energy policy: the uncertainty related to the subsidies for wood fuels, fuel taxation, and the development of emissions trading. There is no shortage of wood fuels expected this financial year, but price levels are estimated to remain unchanged. The European market situation for pellets is likely to remain challenging due to high supply. In Finland, new projects are expected to significantly increase the demand for pellets. The result of the Heat and Power business area is expected to improve from the comparison period particularly as a result of efficiency improvement measures related to energy efficiency. Kekkilä s turnover and operating profit for the financial year is expected to be lower than in the comparison period. The result for the financial year will be particularly affected by the timing of the upcoming spring season. The sawn timber market got off to a slower-than-usual start in 2015, and a significant increase in demand is not expected until later in the spring. Roundwood availability has matched demand, and roundwood prices are expected to either remain unchanged or decrease slightly.

12 11 From the perspective of the company s profitability, the goal is to operate both sawmills at normal capacity while ensuring the capacity to quickly respond to changing market situations. Vapo will continue to invest in water treatment and sustainable peat production to ensure the continuity of operations. Vapo is committed to ensuring that all peat production areas are covered by the best available water treatment technology. In upcoming production seasons, peat will only be produced at areas covered by the best available water treatment technology. Vantaa, 13 February 2015 Vapo Oy Board of Directors For further information, please contact Tomi Yli-Kyyny, CEO tel (0) Suvi Kupiainen, CFO tel

13 12 Interim Report Tables Unlike before, the interim reports for the current financial year are not fully compliant with IAS 34 Interim Financial Reporting. On 1 May 2014, the company adopted thrice-yearly reporting instead of the previous quarterly reporting. As a result, the complete comparison figures required by IAS 34 are not available for the interim reporting periods. Complying with IFRS standards in the preparation of an Interim Report requires Group management to make estimates and assumptions. These estimates and assumptions have a bearing on the value of balance sheet items, the disclosure of contingent assets and liabilities, and the amounts of reported revenues and expenses. Although the estimates are accurate to the best of management s knowledge, actual results may differ from the estimates. The estimates used in this Interim Report are the same as those used in the financial statements for the financial period from 1 January 2013 to 30 April 2014.

14 13 Consolidated statement of comprehensive income MEUR 9 12/ /2014 1/2013 4/ / /2012 TURNOVER Other operating income Share of associated companies results Operating expenses Depreciation Impairments OPERATING PROFIT Financial income Financial expenses PROFIT/LOSS BEFORE TAXES Income taxes PROFIT/LOSS FOR THE PERIOD OTHER COMPREHENSIVE INCOME ITEMS: Translation differences from foreign units Other comprehensive income items for the period after taxes TOTAL COMPREHENSIVE INCOME FOR THE PE- RIOD Distribution of profit for the period: To parent company shareholders To non-controlling shareholders Distribution of comprehensive income for the period: To parent company shareholders To non-controlling shareholders Earnings per share calculated from profits due to parent company shareholders Earnings/share, EUR Average number of shares 30,000 30,000 30,000 30,000 30,000

15 14 Consolidated balance sheet MEUR 31 December April Dec ASSETS LONG-TERM ASSETS Intangible assets Goodwill Land and water areas Buildings and structures Machinery and equipment Other tangible assets Investments in progress Investments Long-term receivables Deferred tax asset LONG-TERM ASSETS CURRENT ASSETS Inventories Sales and other receivables Cash on hand and bank balances CURRENT ASSETS AVAILABLE-FOR-SALE ASSETS ASSETS SHAREHOLDERS EQUITY AND LIABILITIES SHAREHOLDERS EQUITY Parent company shareholders share of shareholders equity Non-controlling shareholders SHAREHOLDERS EQUITY LONG-TERM LIABILITIES Deferred tax liability Long-term interest-bearing liabilities Long-term non-interest-bearing liabilities Long-term provisions LONG-TERM LIABILITIES CURRENT LIABILITIES Current interest-bearing liabilities Current non-interest-bearing liabilities CURRENT LIABILITIES

16 15 AVAILABLE-FOR-SALE INTEREST-BEARING AND NON-IN- TEREST-BEARING DEBT SHAREHOLDERS EQUITY AND LIABILITIES Statement of change in Group shareholders equity MEUR Share capital Fair value fund Others funds Retained earnings Total SHAREHOLDERS EQUITY Changes in shareholders equity Dividend distribution Total comprehensive income Other changes SHAREHOLDERS EQUITY Total MEUR Share capital Fair value fund Others funds Retained earnings Total Translation differences Non-controlling shareholders Translation differences Non-controlling shareholders SHAREHOLDERS EQUITY Changes in shareholders equity Distribution of dividend Joint ventures Increase in subsidiary ownership Total comprehensive income Other changes Imputed taxes Other changes SHAREHOLDERS EQUITY Total

17 16 Condensed consolidated cash flow statement MEUR 5 12/2014 1/2013 4/ /2013 Cash flow from operating activities Profit/loss for the period Adjustments to the result for the period Change in working capital Cash flow from operating activities before financial items and taxes Net financial expenses Taxes paid on operating activities Cash flow from operating activities Cash flow from investing activities Investments in tangible and intangible assets Proceeds from disposal of tangible and intangible assets Subsidiary shares bought Subsidiary shares sold Subsidiary shares bought Other investments Proceeds from disposal of other investments Changes in loans receivable Dividends received Cash flow from investing activities Cash flow before financing Cash flow from financing activities Change in long-term loans and other financing items Dividends paid Cash flow from financing activities Change in cash and cash equivalents Cash and cash equivalents opening balance Change in cash and cash equivalents Effect of changes in exchange rates Cash and cash equivalents at end of period Cash and cash equivalents related to mergers and acquisitions -0.3

18 17 Notes to the interim report SEGMENT DATA 9 12/2014 MEUR Peat Products Wood Fuels Heat and Power Kekkilä Group Vapo Timber Other Eliminations Group total External turnover Internal turnover Turnover Segment operating profit/loss Financial income and expenses -5.8 Income taxes -1.2 Result for the period 7.1 Segment assets Shares in affiliate companies Unallocated assets -1.3 Assets total Segment debt Unallocated debt Debt total Investments Depreciation *) Calculation method applied to segment assets and debts has been changed from the previous financial statements SEGMENT DATA 5 12/2014 MEUR Peat Products Wood Fuels Heat and Power Kekkilä Group Vapo Timber Other Eliminations Group total External turnover Internal turnover Turnover Segment operating profit/loss Financial income and expenses -9.9 Income taxes -0.8 Result for the period 0.1 Segment assets Shares in affiliate companies Unallocated assets -1.3 Assets total Segment debt Unallocated debt Debt total Investments Depreciation

19 18 *) Calculation method applied to segment assets and debts has been changed from the previous financial statements SEGMENT DATA 1/2013 4/2014 MEUR Peat Products Wood Fuels Heat and Power Kekkilä Group Other Vapo Timber Eliminations Group total External turnover Internal turnover Turnover Segment operating profit / loss 0.0 Financial income and expenses Income taxes Result for the period 22.4 Segment assets Shares in affiliate companies Unallocated assets 20.8 Assets total Segment debt Unallocated debt Debt total Investments Depreciation COLLATERAL, CONTINGENT COMMITMENTS AND OTHER LIABILITIES MEUR Collateral As collateral for own debt 31 December April Dec Mortgages 6,901 7,544 1,979 Liabilities for own commitments Mortgages Guarantees 26,662 24,954 26,980 Pledged collateral Total 33,568 32,503 28,964 Financial leasing and other rental liabilities Financial leasing liabilities Due within the next one-year period Due later 6,903 7,290 8,545 Other rental liabilities 0 Due within the next one-year period 3,694 3,473 3,369 Due later 5,203 7,484 6,522 Total 16,296 18,753 18,983 The Group has leased machinery and equipment, vehicles and computer hardware. Leased production machinery and equipment, with a capital value of EUR 12.3 million on the closing date, comprise the most significant part of the leases. There are no agreements in the acquisition period. The duration of the rental agreements is ten years.

20 19 The agreements include an option, but not an obligation, to continue the agreement after the original ending date. Guarantees given on behalf of others Guarantees Contingent commitments on behalf of associated companies Guarantees 2,500 2,500 2,500 DERIVATIVE CONTRACTS 0 31 December April Dec MEUR Nominal value Nominal value Nominal value Fair value Fair value Fair value Interest rate derivatives 330, , ,697-2,136 1,051 2,553 Currency derivatives 87,821 74,940 74, Commodity derivatives 7,729 7,333 9, Nominal value, total 426, , ,073 Fair value, total -3, ,494