LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE AUGUST 1, 2007 at 1.00 p.m.
LÄNNEN TEHTAAT STRENGTHENS ITS RESOURCES IN DOMESTIC FISH BUSINESS
The Fish Business is one of Lännen Tehtaat's strategic focus areas. In recent
years the Group has strengthened its Fish Business through corporate
acquisitions in Finland, Norway and Sweden, the aim being the creation of a
strong position in the northern Baltic region. In Finland the purpose is to turn
Apetit Kala into the leading and most profitable industrial player in the
sector. Apetit Kala's core processes will undergo further strong development,
the goal being superiority in raw material procurement, deliverability, delivery
reliability and productivity. In order to achieve this, Lännen Tehtaat is
strengthening Apetit Kala's resources.
Ari Laarne, 40, M.Sc.(Eng.), has been appointed managing director of the company
as of August 1, 2007 and Heljä Mantere, 43, Master of Food Sciences, as its
production director.
Ari Laarne will focus on the development of the company's core processes and
control of operations. He has carried out similar duties at companies such as
Nokian Tyres plc and Pilkington Automotive Finland Oy. Previous to becoming
managing director, Laarne was the IT director for the Lännen Tehtaat Group.
Heljä Mantere will be responsible for the company's production and quality, and
the development of productivity. She has previously been director in charge of
production, product development and quality control at companies such as
Liha-Saarioinen Oy and Atria Lithells AB in Sweden.
Apetit Kala Oy, a subsidiary of Lännen Tehtaat plc, produces, markets and sells
fresh fish products under the Apetit brand and retailers' own brands and sells
fish, fish products and other fresh products in its Kalatori outlets.
Net sales for Apetit Kala Oy totalled EUR 58.9 million in 2006 and the profit
after financial items was EUR 0.6 million. At the end of 2006 the company
employed some 280 people.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details:
Matti Karppinen, CEO, Lännen Tehtaat plc, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE July 17, 2007 at 12;00
SECOND QUARTER RESULT OF CONTINUING OPERATIONS LOWER THAN FORECAST
In early May, Lännen Tehtaat estimated that the operating performance of the
Group's continuing operations, adjusted for non-recurring items, would show a
result for the second quarter comparable with the same period last year.
However, because of the poor performance of the Fish Business, the operating
performance of the Group's continuing operations will fall short of the estimate
and below that of the same period last year. On the other hand, the combined
result for the second quarter for continuing and discontinued operations will be
considerably higher than in the previous year due to the profit realized from
the sale of the majority holding in Suomen Rehu Oy.
In the Fish Business, in the second quarter Apetit Kala was plagued by problems
caused by repeated breakdowns at the Kuopio plant, which hampered deliveries and
caused sales losses as well as extra costs in production and logistics. The
start of operations transferred from Kustavi to Kuopio was also delayed.
Additional extra costs were incurred by preparing for the threat of a food
industry strike at the beginning of the quarter. The operating performance of
the Maritim Food AS group was as expected. Because of the disruptions in
domestic production, the operating performance of the Fish Business will be
poorer than estimated in the second quarter and showing a loss. The performance
of the Vegetable Oil Business will be lower than last year, as anticipated,
while Grain Trading performed better than last year. The Frozen Foods Business
and Other Operations developed as anticipated during the second quarter.
Grain Trading, consisting of the Avena Nordic Grain group, is reported as a
separate segment together with the continuing operations. The operating
performance of continuing operations for the entire year, adjusted for
non-recurring items, is expected to be at the level of the comparative year.
The Lännen Tehtaat interim report for January-June 2007 will be published on
August 9, 2007 at 8;30 a.m.
LÄNNEN TEHTAAT PLC
Martti Karppinen
CEO
Further information is available from:
Martti Karppinen, CEO, Lännen Tehtaat plc, tel + 358 10 402 00
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE June 5, 2007 at 12;00
APETIT KALA TO TRANSFER PRODUCTION AND PACKAGING FROM KERAVA TO KUOPIO
Apetit Kala Oy has concluded codetermination negotiations with personnel
concerning the transfer of its packaging and production from Kerava to Kuopio.
The company has decided to carry out the transfer by autumn 2007. Closing down
production in Kerava is a natural continuation of the strategic plan to
concentrate production in Kuopio.
By transferring production from Kerava to Kuopio, Apetit Kala seeks annual cost
savings of some EUR 0.5 million through better productivity and cost efficiency.
The savings will be implemented in full as of 2008. The investments worth some
EUR 0.5 million required for the transfer will be carried out in summer 2007.
A total of 26 people are currently working in production and packaging in
Kerava, including hired personnel. The concentration of operations will reduce
personnel by 12.
Apetit Kala Oy, which is fully owned by Lännen Tehtaat plc, produces, markets
and sells fresh fish products under the Apetit brand and various supermarket
brands and sells fish, fish products and other fresh products in its Kalatori
outlets.
Net sales for Apetit Kala Oy totalled EUR 58.9 million in 2006 and profit after
financial items was EUR 0.6 million. At the end of 2006 the company employed
some 380 people: some 110 in fish production and some 270 in the Kalatori
business.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details:
Matti Karppinen, CEO, Lännen Tehtaat plc, tel. +358 10 402 4001
Samuli Eskola, Managing Director, Apetit Kala Oy, tel. +358 10 402 4501
Distribution:
Helsinki Stock Exchange
Main media
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LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE June 5, 2007 at 9;45 a.m.
COMPETITION AUTHORITIES APPROVE SALE OF MAJORITY SHAREHOLDING IN SUOMEN REHU LTD
The Finnish Competition Authority has announced today that it will approve the
sale of the majority shareholding in Suomen Rehu Ltd by Lännen Tehtaat plc to
Hankkija-Maatalous Oy. The date of closing of the deal agreed on by the parties
is June 6, 2007. On that date Suomen Rehu Ltd with its subsidiaries will be
transferred to Hankkija-Maatalous Group.
The deal comprises 51% of all Suomen Rehu shares. When the deal is closed,
Suomen Rehu Ltd will become an associate company of Lännen Tehtaat plc with
Lännen Tehtaat holding 49% of the shares.
After the closing of the majority holding deal, Lännen Tehtaat will have the
right to sell the remaining 49% of the shares in Suomen Rehu to
Hankkija-Maatalous, if it wishes. Hankkija-Maatalous will have a purchasing
option for the remaining shares, which it will be able to put into effect at the
earliest 15 months after the closing of the majority holding deal, i.e. in
September 2008 at the earliest.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details: Matti Karppinen, CEO, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE May 28, 2007
CHANGE IN STRUCTURE OF THE MAJORITY SHAREHOLDING SALE OF SUOMEN REHU LTD AND
AVENA NORDIC GRAIN OY
On January 19, 2007 Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy
signed a share-transaction agreement whereby 51% of the shares in Suomen Rehu
Ltd and Avena Nordic Grain Oy would be transferred to the ownership of
Hankkija-Maatalous Oy. The final closing of the transaction required approval by
the competition authorities.
At the beginning of March the competition authorities decided that the further
investigation of the merger notification lodged by Hankkija-Maatalous was
necessary. The merger of the grain trading operations of Avena Nordic Grain Oy
with the grain trading by Hankkija-Maatalous Oy is believed to create a strong
market position from the perspective of competition, so the parties to the sale
have decided that Avena will not be included in the sale. The competition
authorities are continuing their investigation.
Lännen Tehtaat plc and Hankkija-Maatalous Oy have agreed today that the majority
shareholding sale of Suomen Rehu Ltd will go ahead. The enterprise value of the
business operations of Suomen Rehu has been agreed at EUR 71 million. The price
for the 51 per cent of the shareholding in the company to be sold is about EUR
24 million. The purchaser will also assume responsibility for the net debts of
Suomen Rehu at the moment when the closing takes place. The exact price for the
shares will be determined on the basis of the assets and liabilities of the
companies to be sold by the end of May. The sale of the majority shareholding in
Suomen Rehu is expected to generate a profit of about EUR 6 million.
In connection with the sale of the majority shareholding an option scheme has
also been agreed under which Lännen Tehtaat will, if it wishes, have the right
to sell the remaining 49% of the shares in Suomen Rehu Ltd to
Hankkija-Maatalous. The latter, for its part, has a purchasing option for the
remaining shares, which it will be able to put into effect at the earliest 15
months after the purchase of the majority holding.
Lännen Tehtaat's consolidated net sales in 2006 amounted to EUR 409 million and
the operating profit to EUR 14.5 million. The Lännen Tehtaat Group employed 981
people during 2006. The net sales of the feed operations to be sold was about
EUR 190 million and the operating profit under IFRS standards was EUR 9.2
million. There were an average of 319 people working for Suomen Rehu.
Avena Nordic Grain will continue its grain trading operations as usual as part
of the Lännen Tehtaat Group. The net sales of Avena Nordic Grain amounted to EUR
96 million in 2006 and the operating profit to EUR 2.0 million. There were an
average of 29 people working for Grain trading operations.
Lännen Tehtaat's vision is to be one of the leading Finnish food companies, and
the company will continue to single-mindedly implement its vision. The sale of
the feed operations will strengthen Lännen Tehtaat's financial room for
manoeuvre and improve the company's potential for developing the food sector
through corporate acquisitions and other corporate restructuring.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details: Matti Karppinen, CEO, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE May 8, 2007
INTERIM REPORT JANUARY 1 - MARCH 31, 2007
Consolidated net sales increased by 15.9% and came to EUR 112.4 (2006: 97.0)
million.
The profit for the period after taxes was EUR 1.9 (0.4) million and the earnings
per share was EUR 0.31 (0.03).
The net sales of the continuing operations increased by 9.8% and came to EUR
39.8 (36.3) million.
The operating performance by the continuing operations improved, the operating
loss was EUR -0.3 (-1.6) million, the effect of non-recurring items on the
operating loss was EUR +0.1 (-0.7) million.
A share transaction agreement for the sale of a majority shareholding in Suomen
Rehu Ltd and Avena Nordic Grain Oy was signed in January; completion of the
transaction awaits approval from the Finnish Competition Authority. The
operations are shown in the report under discontinued operations.
Maritim Food became part of the Group at the end of February.
The segment format was revised as a result of restructuring.
This interim report has been prepared in accordance with IFRS (International
Financial Reporting Standards) using IFRS recognition and measurement
principles. This interim report does not comply with all of the requirements of
IAS 34 (Interim Financial Reporting).
The information in the report is unaudited.
KEY INDICATORS, EUR million
1-3/2007 1-3/2006
Group total
Net sales 112.4 97.0
Operating profit/loss 3.2 -0.5
Profit for period 1.9 0.4
Earnings per share 0.31 0.03
Continuing operations
Net sales 39.8 36.3
Operating loss -0.3 -1.6
Discontinued operations
Net sales 72.6 60.7
Operating profit 3.5 1.1
CHANGES IN GROUP STRUCTURE AND CORPORATE TRANSACTIONS
In order to clarify the business structure, the Aptetit Frozen Foods and Jams
business unit, which had been operating as part of Lännen Tehtaat plc, was
incorporated at the beginning of 2007 under the name Apetit Pakaste Oy. In
addition, the operations that produce services for the Group companies, the
commercial department, IT, HR and environmental services and part of the
financial administration were incorporated under the name Apetit Suomi Oy.
Lännnen Tehtaat's vision is to be one of the leading Finnish food companies. In
order to be able to focus on food in line with its vision, Lännen Tehtaat aims
to strenghten its food sector through corporate acquisitions or via other
restructuring in the northern Baltic region. As a part of this vision Lännen
Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy signed on January 19, 2007
a share-purchase agreement whereby 51% of the shares in Suomen Rehu Ltd and
Avena Nordic Grain Oy will be transferred to the ownership of Hankkija-Maatalous
Oy. The transaction will be closed once the competition authorities have given
their approval, which is expected at the beginning of June.
Lännen Tehtaat strengthened its food business operations in line with its
strategy, and acquired on February 28, 2007 the total shareholding of Martim
Food AS, a Norwegian fish product manufacturer. The transaction included Maritim
Food AS and its wholly-owned Swedish subsidiaries Maritim Food Sweden AB and
Maritim Food Sweden Egendom AB, as well as its 47.5% minority interest in the
Norwegian Sandanger AS. In addition, the deal includes a call option which will
enable Maritim Food AS to increase its holding in Sandanger AS to 51% in the
future.
REPORTING SEGMENTS
Because of changes that have taken place in the Group structure of Lännen
Tehtaat, the Group's segment reporting was revised to respond better to the new
business operations structure. The new primary reporting segments are: the
Frozen Foods Business, the Fish Business, the Vegetable Oil Business and Other
Operations.
The Frozen Foods Business includes Apetit Pakaste Oy. Fish Business includes
Apetit Kala Oy and Maritim Food AS. The Vegetable Oil Business comprises Mildola
Oy. The Other Operations segment consists of Apetit Suomi Oy, the Group
Administration and items unallocated to the segments. The cost effect of
services produced by Apetit Suomi Oy is an encumbrance on the financial
performance of the business operations in proportion to the use of the services.
The personnel of Apetit Suomi Oy have been allocated to the Frozen Foods
Business and Fish Products Business in proportion to the sale of services. From
the beginning of 2007 the Frozen Foods Business, Fish Products Business,
Vegetable Oil Business and Other Operations will form the continuing operations
in the IFRS reporting.
The geographical segment format was also revised at the beginning of the year
2007. The new geographical segments are: Finland, Scandinavia, the Baltic States
and Russia, and Other Countries.
REPORTING DISCONTINUED OPERATIONS
The discontinued operations comprise the Suomen Rehu Group and Avena Nordic
Grain Group, which are available for sale. The discontinued operations' profit
for the period has been shown in the consolidated income statement as one line
after the continuing operations' income statement. Comparative information has
been adjusted correspondingly. In accordance with IFRS regulations no
depreciation according to plan has been made for the discontinued operations
after January 19, 2007. The assets and liabilities of operations available for
sale have been shown separately in the balance sheet from other assets and
liabilities under Non-current assets available for sale and Liabilities relating
to non-current asset items available for sale. No corresponding classification
has been made in the balance sheet for the comparative period.
NET SALES AND PROFIT
The net sales of Lännen Tehtaat's continuing operations totalled EUR 39.8 (36.3)
million in January-March, an increase of 9.8%.
The financial performance improved and the operating loss without non-recurring
items was EUR -0.4 (-0.9) million, and the operating loss including
non-recurring items was EUR -0.3 (-1.6) million. The financial performance of
the Frozen Foods Business and Other Operations improved, while that of the Fish
Products Business and Vegetable Oil Business weakened compared with the
comparative period.
The net financial income was EUR 0.1 (2.4) million. The comparative period
includes non-recurring sales profits of EUR 2.4 million. Associated companies
contributed EUR -0.4 (-0.5) million to the financial performance. The loss
before taxes was EUR -0.5 (0.3) million and the loss for the period was EUR -0.4
(-0.1) million.
The operating profit of the discontinued operations was EUR 3.5 (1.1, without
non-recurring items 1.6) million and the profit after taxes was EUR 2.3 (0.5)
million. No depreciation according to plan has been made for the discontinued
operations since January 19, 2007, which reduced depreciation by EUR 0.7 (0.0)
million.
The combined profit for the period of both the continuing and discontinued
operations was EUR 1.9 (0.4) million and the earnings per share figure was EUR
0.31 (0.03).
FINANCING AND CASH FLOW
The Group's financial position and liquidity continued to be good. The cash flow
from operations after interest and taxes stood at EUR 5.5 (4.7) million. The net
cash flow from investments was EUR -10.2 (2.7) million.
The Group's interest-bearing liabilities came to a total of EUR 59.2 (41.9)
million and the liquid assets to EUR 6.0 (14.7) million at the end of the period
under review. Net interest-bearing liabilities amounted to EUR 53.2 (27.2)
million. The consolidated balance sheet total stood at EUR 235.8 (211.6)
million. The equity ratio was 49.1 (52.4)%. Commercial papers issued for the
Group's short-term financing stood at EUR 28.0 (17.0) million at the end of the
period under review. Liquidity is secured with committed credit facilities. No
credit facilities were used at the end of the period under review.
BUSINESS SEGMENTS
The net sales of the Frozen Foods Business totalled EUR 13.3 (12.8) million, an
increase of 4%. Net sales of the frozen retail products went up by a good 1.5%
over the comparative period. The growth was biggest in the frozen potato and
frozen pizza product groups. Sales of frozen ready meals and frozen vegetables
sold under the Apetit brand also went up. Sales of products sold under the
Apetit brand performed particularly well at the beginning of the period. Sales
of retail jams and marmalades rose slightly over the year before. Growth in the
hotel, restaurant and catering sector and industrial sector was strong as a
result of the improvement in the competitiveness of domestic vegetables compared
with imported vegetables. Exports and sales to the bakery sector fell slightly
short of the previous year.
The comparable operating profit/loss of the Frozen Foods Business was EUR 0.5
(-0.7) million. The financial performance improved because of an improvement in
productivity and cost-effectiveness put into effect and as a result of changes
in the product mix.
Net sales by the Fish Products Business increased by 22.2% to EUR 16.4 (13.4)
million. Maritim Food contributed EUR 2.7 million to the growth in net sales.
The focal point for the growth in Apetit Kala's net sales lay in
consumer-packaged fish products. Sales at the Kalatori outlets went down
slightly.
The financial performance of the Fish Products Business was EUR -2.0 (0.4)
million and weakened as a result of a fall in the sales margin that was caused
by high raw-material prices and also as a result of a rise in overhead costs.
Maritim Food made a slight positive contribution to the Fish Products Business's
financial performance.
Net sales of EUR 10.0 (10.1) million by the Vegetable Oil Business were close to
last year's level. The operating profit was EUR 0.4 (0.7) million. The rise in
raw-material prices was stronger than the rise in product prices, which lowered
the profit. The sales restructuring compared with the equivalent period in the
previous year reduced both the net sales and profit somewhat.
The operating loss of the Other Operations segment without non-recurring items
was EUR -1.1 (-1.3) million and after non-recurring items EUR -1.0 (-1.9)
million. The non-recurring items comprised profit from assignment of EUR 0.1
(loss 0.6) million.
In the discontinued operations the Feeds segment's net sales went up to EUR 47.3
(45.8) million and the net sales of Grain Trading to EUR 32.1 (21.5) million.
The increase in the Feed Segment's net sales was the result of a rise in sales
prices caused by higher raw-material prices. Grain Trading's net sales were
increased by a growth in volumes of exports and trade to third countries and a
rise in grain market prices.
The comparable operating profit of the discontinued operations was EUR 2.8 (1.6)
million and the reported operating profit was EUR 3.5 (1.1) million. The
comparable financial performance of the discontinued operations excluding
non-recurring items improved as a result of cost-effectiveness and productivity
measures.
INVESTMENT
Gross investment in non-current assets in the period under review amounted to
EUR 1.1 (1.2) million. Investment by the Frozen Foods Business was EUR 0.2 (0.1)
million, by the Fish Products Business EUR 0.5 (0.1) million, by the Vegetable
Oil Business EUR 0.1 (0.1) million and by the Feeds segment EUR 0.3 (0.9)
million. The most significant investment was related to the replacement of
freezers in the Frozen Foods Business and to extending and increasing the
capacity of the Apetit Kala factory in Kuopio. The investment by Mildola and the
Feeds segment mainly concerned productivity and replacements.
There was one investment in shares during the period under review i.e. a sum of
EUR 10.5 (0.0) million paid for acquiring shares in the Norwegian fish products
company Maritim Food AS.
IMPORTANT EVENTS AFTER THE PERIOD UNDER REVIEW
On April 12, 2007 Apetit Kala Oy intitiated co-determination negotiations with
the personnel concerning the planned transfer of production and packaging
operations from Kerava to Kuopio. The company has been cutting costs by making
processes more efficient and improving the division of labour among the
factories. If, however, constant competitiveness is to be guaranteed and
profitability improved, further steps will need to be taken by the Fish Products
Business. In order to improve productivity and increase cost-effectiveness
Apetit Kala Oy has made plans to transfer the fish production and packaging
operations at Kerava to Kuopio. By focusing production operations on Kuopio the
company is aiming for annual savings of some EUR 0.5 million. Transferring the
production will require investment of about EUR 0.5 million at Kuopio. The plan
is to carry this out by the autumn. Terminating production at Kerava is a
continuation of the company's plan to focus production operations on Kuopio. The
company has already decided to halt production at Kustavi and transfer the
operations there to Kuopio by the summer. The co-determination negotiations do
not apply to the storage and collection operations at Kerava.
DECISIONS OF ANNUAL GENERAL MEETING
The Annual General Meeting of Lännen Tehtaat held on March 29, 2007 approved the
parent company's financial statements and the consolidated financial statements,
and discharged the members of the Board of Directors, the members of the
Supervisory Board and the CEO from liability for the financial year 2006.
The Annual General Meeting approved the distribution of a dividend of EUR 0.84
(0.73) per share in accordance with the proposal by the Board of Directors. The
total dividend amount of EUR 5.3 million was transferred from retained earnings
and recorded in current non-interest bearing liabilities in the balance sheet at
the end of March. The dividend was paid on April 12, 2007
AUTHORIZATIONS GIVEN BY ANNUAL GENERAL MEETING
The Annual General Meeting authorized the Board of Directors to decide on
issuing new shares in the form of an issue against payment and on surrendering
company shares held by the company in one or more tranches. A maximum total of
631,757 new shares may be issued, and a maximum of 65,000 shares held by the
company may be surrendered. The subscription price for the new shares is, at a
minimum, their nominal value, i.e. EUR 2.00. The surrender price for the company
shares held by the company is, at a minimum, their current value at the time of
surrender determined on the basis of the price in public trading on the Helsinki
Stock Exchange. The Board of Directors was authorized to diverge from the
shareholders' pre-emptive subscription right on condition that the company has a
pressing financial reason to do so. The authorization also covers the right to
offer shares not only against money payment but also against capital
consideration in kind or on some other specified conditions or by using the
right of set-off, and to decide on the subscription price and other terms and
conditions related to share issues.
The authorization is valid until the next Annual General Meeting. The
authorization repeals the previous share issue authorization given on March 29,
2006 and the authorization given on the same date to surrender the company's own
shares.
So far the Board of Directors has not exercised the share issue authorization
given by the Annual General Meeting.
SHARES
In the period under review 322,015 (658,741) company shares were traded on the
Stock Exchange i.e. 5.1% (10.4%) of the total stock. The highest share price was
EUR 24.50 (23.42) and the lowest EUR 22.20 (17.90). The share turnover totalled
EUR 7.7 (13.3) million. The market capitalization at the end of the period was
EUR 145.2 (144.8) million.
MEMBERS OF THE BOARD OF DIRECTORS
At a meeting held on April 11, 2007 the Supervisory Board of Lännen Tehtaat Plc
elected the following to the Board of Directors: Harri Eela, Aappo Kontu, Matti
Lappalainen, Hannu Simula, Soili Suonoja and Tom v. Weymarn. Tom v. Weymarn was
elected Chairman of the Board and Hannu Simula Vice Chairman.
PERSONNEL
The average number of personnel during the period under review was 938 (968).
The number of people working in the Frozen Foods Business was 243 (252), in the
Fish Products Business 320 (295), in the Vegetable Oil Business 36 (35) and in
Other Operations 11 (27). The combined number of people working in the Feeds
segment and Grain Trading was 328 (359). The number of personel at Apetit Suomi
Oy has been divided in relation to the services charged to the Frozen Foods
Business and Fish Products Business. Personnel in Other Operations in the
comparative period includes those working at Harviala Oy.
SEASONAL NATURE OF OPERATIONS
The transition to IFRS reporting has had a noticeable impact on the accrual of
Lännen Tehtaat's profits over the financial year. Because of the production that
focuses on seasonal crops and the valuation of inventories in accordance with
IAS 2, most of the Group's annual profit accrues during the final quarter of the
year. Because of production that focuses on seasonal crops, the seasonality of
the operations is at its strongest in the Frozen Foods Business and in the
operations of the associated company Sucros.
Apetit Kala's sales depend largely on seasonal holidays. A major proportion of
the entire year's profit depends on the success of Christmas sales.
There is some seasonal fluctuation in the Feed segment, too. The net sales of
Grain Trading vary annually and quarterly depending on supply and demand and on
prices in Finland and on other markets.
RISKS IN THE NEAR FUTURE AND UNCERTAINTY FACTORS
The most significant risks for the Lännen Tehtaat Group are associated with
controlling changes in the raw-material prices, succeeding with planned
operations to transfer production and succeeding with the takeover of a foreign
corporate acquisition. The sale of the majority of the agricultural business
operations is still in the hands of the Finnish Competition Authority.
In the Fish Products Business and Vegetable Oil Business and in the Feed segment
and Grain Trading Operations that are available for sale, the prices of the most
important raw materials are determined by world markets. Because of the fierce
competition prevailing on domestic markets not all the increases in raw-material
prices can necessarily be absorbed fully in sales prices, which has a negative
effect on sales margins and profit.
PROSPECTS FOR THE ENTIRE YEAR
Continuing operations
The net sales for the Frozen Foods Business for the entire year are expected to
be about the same as for 2006. Product sales are expected to grow by about 5%.
With the transfer of contract farming of sugar beet to the care of Sucros, sales
of farm supplies will be reduced by almost EUR 3 million. Sales under the Apetit
brand are expected to grow because of a volume increase and changes in the
product mix. Hotel, restaurant and catering sales and industrial sales are
expected to make good progress. Sales under retailers' own brands and exports
are expected to fall. The financial performance for the entire year for the
Frozen Foods Business is forecast to be better than in the comparative year.
In the Fish Products Business, sales by Apetit Kala are expected to continue to
grow with further processing of products and as the proportion of industrially
packaged fish in relation to all the retailed fish grows. The merger of the
Maritim Food AS Group with Lännen Tehtaat's Fish Products Business in March will
increase the Fish Products Business's net sales this year by an estimated EUR 20
million or more. The Fish Products Business is expected to be able to improve
profitability this year following productivity measures and the financial
performance for the entire year is expected to improve also as a result of the
merger with the Maritim Food Group.
The Vegetable Oil Business's net sales are forecast to show a slight increase
over 2006 because of a small volume increase and small rise in product prices.
As raw-material prices have risen much more than product prices, the refining
margin and operating profit are expected to fall short of the exceptionally good
levels in 2005 and 2006.
The net sales of the Group's continuing operations are expected to increase over
2006 because of growth by the Fish Products Business and Vegetable Oil Business.
The operating profit of the continuing operations excluding non-recurring items
is expected to be better than the equivalent figure for 2006.
Discontinued operations
The sale of a majority shareholding in Suomen Rehu Ltd and Avena Nordic Grain Oy
is expected to be completed in May-June, bringing with it an estimated profit of
EUR 7-8 million before the effect on the profit and equity of discontinued
planned depreciation on the basis of IFRS regulations. In the first quarter this
effect, which will reduce the profit, was about EUR 0.6 million. After the sale
of the majority shareholdings Suomen Rehu Ltd and Nordic Grain Oy will be
converted into associated companies of Lännen Tehtaat Plc.
The net sales for the entire year for the Feeds segment are predicted to stand
at 2006 level. The operating profit is expected to increase because of
productivity measures and a reduction in fixed costs.
In Grain Trading net sales for the entire year are expected to go up because a
growth in volumes. It is thought that Avena Nordic Grain Oy's financial
performance will improve slightly over 2006 because of an increase in the sales
margin.
FORECAST FOR THE SECOND QUARTER
As a result of the growth in the Fish Products Business' net sales, the net
sales of the continuing operations are forecast to increase to some extent in
the second quarter of the year compared with 2006. The operating profit
excluding non-recurring items is expected to be at the level of the comparative
period in the second quarter.
CONSOLIDATED INCOME STATEMENT
EUR million
1-3/ 1-3/ 1-12/
2007 2006 2006
3 mths 3 mths 12 mths
Continuing operations
Net sales 39.8 36.3 149.6
Other operating income 0.3 0.3 1.9
Operating expenses -39.3 -37.0 -143.4
Depreciation -1.1 -1.2 -4.6
Impairment - - -0.2
Operating profit/loss -0.3 -1.6 3.3
Financial income and expenses 0.1 2.4 3.5
Share of profit of associated
companies -0.4 -0.5 1.5
Profit/loss before taxes -0.5 0.3 8.4
Income taxes 0.1 -0.4 -2.2
Profit for the period,
continuing operations -0.4 -0.1 6.2
Discontinued operations
Profit for the period,
discontinued operations 2.3 0.5 6.9
Profit for the period 1.9 0.4 13.1
Attributable to:
Equity holders of the parent 1.9 0.2 13.1
Minority interest - 0.2 -
Earnings per share, calculated of
the profit attributable to the
shareholders of the parent company
Basic and diluted earnings per
share, EUR, continuing operations -0.06 -0.05 1.00
Basic and diluted earnings per
share, EUR, discontinued operations -0.37 -0.08 1.10
Current assets
Inventories 24.3 45.0 65.3
Receivables 11.0 31.9 49.0
Cash and cash equivalents 4.6 14.7 7.5
39.9 91.6 121.9
Non-current assets
classified as held for sale 119.0 - -
Total assets 235.8 211.6 237.5
EQUITY AND LIABILITIES
Equity attributable to the
equity holders of the parent
company 115.6 106.8 119.2
Minority interest - 3.9 -
Total equity 115.6 110.7 119.2
Non-current liabilities
Long term financial liabilities 3.2 14.0 7.0
Deferred tax liabilities 4.5 6.9 7.0
Long-term provisions 0.2 0.9 -
Non-current liabilities total 7.9 21.8 14.0
Current liabilities
Trade payables and other
liabilities 23.9 50.2 55.2
Short-term financial liabilities 13.2 27.9 49.1
Short-term provisions - 0.9 -
Current liabilities total 37.1 79.0 104.3
Liabilities directly associated
with non-current assets
classified as held for sale 75.3
Cash flow from operating
activities 5.5 4.7 -6.4
Cash flow from investing
activities -10.2 2.7 -2.7
Cash flow from financing
activities
Change in net debt 3.2 -4.0 10.1
Dividends paid - - -4.6
Net increase/decrease in cash
and cash equivalents -1.5 3.5 -3.7
Cash and cash equivalents
at beginning of the period 7.5 11.2 11.2
Cash and cash equivalents
at end of the period 6.0 14.7 7.5
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR million
A = Share capital
B = Share premium account
C = Net unrealised gains
D = Other reserves
E = Own shares
F = Translation differences
G = Retained earnings
H = Equity attributable to equity holders of the parent company
I = Minority interest
J = Shareholders' equity total
A B C D E F G H I J
Shareholders'
equity at
Jan. 1, 2006 2.6 23.4 1.8 7.3 -0.8 -0.2 68.3 112.4 3.7 116.1
Available-for-sale
financial assets:
transferred to
income statement - -2.1 - - - - -2.1 - -2.1
Cash flow hedges:
gains recorded
in equity - 0.7 - - - - 0.7 - 0.7
Taxes related to
items entered into
equity and removed
from equity - 0.4 - - - - 0.4 - 0.4
Translation
differences - - - - 0.0 - 0.0 - 0.0
Dividend
distribution - - - - - -4.6 -4.6 - -4.6
Profit for period - - - - - 0.2 0.2 0.2 0.4
Shareholders'
aquity at
March 31,2006 12.6 23.4 0.8 7.3 -0.8 -0.2 63.9 106.8 3.9 110.7
Cash flow hedges:
gains recorded
in equity - -0.1 - - - - -0.1 - -0.1
Taxes related to
items entered into
equity and removed
from equity - - - - - - - - -
Translation
differences - -0.1 -0.1 -0.1
Other changes -0.1 -0.1 -0.1
Dividend
distribution - - - - -5.3 -5.3 - -5.3
Profit for period - - - - 2.0 2.0 0.0 2.0
Shareholders'
equity at
March 31, 2007 12.6 23.4 0.3 7.3 -0.8 -0.3 73.2 115.7 0.0 115.6
Discontinued operations included translation differences EUR -0.2 million.
SEGMENT INFORMATION
BUSINESS SEGMENTS
A Frozen Foods
B Fish
C Vegetable Oil
D Other Operations
E Continuing operations total
F Discontinued operations
G Group total
Business segments 1-3/2007
EUR million A B C D E F
G
External sales
Product sales 13.3 16.3 10.0 - 39.6 74.1
113.7
Services sold - 0.1 - 1.0 1.1 1.5
2.6
Total external sales 13.3 16.4 10.0 1.0 40.7 75.6
116.3
Intra group sales 0.0 0.0 0.0 -0.9 -0.9 -3.0
-3.9
Net sales 13.3 16.4 10.0 0.1 39.8 72.6
112.4
Business segments 1-3/2006
EUR million A B C D E F
G
External sales
Product sales 12.8 13.4 10.1 0.0 36.3 62.1
98.4
Services sold 0.0 0.0 - - 0.0 1.5
1.5
Total external sales 12.8 13.4 10.1 0.0 36.3 63.6
99.9
Intra group sales 0.0 0.0 0.0 0.0 0.0 -2.9
-2.9
Net sales 12.8 13.4 10.1 0.0 36.3 60.7
97.0
Business segments 1-12/2006
EUR million A B C D E F
G
External sales
Product sales 50.2 58.8 40.6 0.0 149.6 263.7
413.3
Services sold 0.0 0.1 - - 0.1 6.1
6.2
Total external sales 50.2 58.9 40.6 0.0 149.7 269.8
419.5
Intra group sales -0.1 0.0 0.0 0.0 -0.1 -10.7
-10.8
Net sales 50.1 58.9 40.6 0.0 149.6 259.1
408.7
Unallocated items include tax and financing items together with items common to
the whole group.
GEOGRAPHICAL SEGMENTS
A Finland
B Scandinavia
C Baltic countries and Russia
D Other countries
E Continuing operations total
F Discontinued operations
G Group total
Geographical segments 1-3/2007
EUR million A B C D E F
G
Net sales 33.4 4.7 0.1 1.6 39.8 72.6
112.2
Assets 97.5 19.3 0.0 - 116.8 119.0
235.8
Gross investments in
non-currents assets 0.8 0.0 - - 0.8 0.3
1.1
Corporate acquisitions and
other share purchases - 10.5 - - 10.5 -
10.5
Geographical segments 1-3/2006
EUR million A B C D E F
G
Net sales 32.0 0.9 0.3 3.1 36.3 60.7
97.0
Assets 112.3 - 0.0 - 112.3 99.3
211.6
Gross investments in
non-currents assets 0.3 - - - 0.3 0.9
1.2
Corporate acquisitions and
other share purchases - - - - - -
-
Geographical segments 1-12/2006
EUR million A B C D E F
G
Net sales 134.5 4.4 1.8 8.9 149.6 259.1
408.7
Assets 116.0 - 0.0 - 116.0 121.5
237.5
Gross investments in
non-currents assets 1.9 - - - 1.9 5.7
7.6
Corporate acquisitions and
other share purchases 3.0 - - - 3.0 -
3.0
DISCONTINUED OPERATIONS AND NON CURRENT ASSETS HELD FOR SALE
Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy have 19.1.2007
signed a share-purchase agreement whereby 51% of the shares in Suomen Rehu Ltd
and Avena Nordic Grain Oy will be transferred to the ownership of
Hankkija-Maatalous Oy. The transaction will be finally closed once the
competition authorities have given their approval.
The enterprise value of the business operations of Suomen Rehu and Avena has
been agreed at EUR 81 million. The price for the 51 per cent of the shares in
the companies to be sold will be about EUR 28 million. The purchaser will also
assume responsibility for the net debts of Suomen Rehu and Avena at the moment
when the closing takes place. The exact price for the shares will be determined
on the basis of the assets and liabilities of the companies to be sold at the
moment when the closing takes place.
The transaction will not include the shares of the oil seed processing company
Mildola Oy, which have been transferred to the ownership of Lännen Tehtaat plc.
The sale of the majority shareholding is expected to take place in the second
quarter of 2007.
In connection with the sale of the majority shareholding an option scheme has
also been agreed under which Lännen Tehtaat will, if it wishes, have the right
to sell the remaining 49% of the shares in Suomen Rehu Ltd and Avena Nordic
Grain Oy to Hankkija-Maatalous. The latter, for its part, has a purchasing
option for the remaining shares, which it will be able to put into effect at the
earliest 15 months after the purchase of the majority holding.
The combined net sales of the companies to be sold in 2006 was EUR 259 million
and the operating profit under IFRS standards was EUR 11.2 million. In 2006,
there were in average 348 people working for Suomen Rehu and Avena.
EUR million 1-3/2007 1-3/2006 1-12/2006
Revenue 72.6 60.7 259.1
Expenses -69.5 -60.0 -249.8
Profit before taxes 3.1 0.7 9.3
Taxes -0.8 -0.2 -2.4
Profit after tax on
discontinued operations 2.3 0.5 6.9
EUR million March 31, 2007
Long-term assets 50.7
Short-term assets 68.2
Long-termi liabilities 14.8
Short-term liabiilties 60.5
Assets and liabilities on
discontinued operations 43.6
EUR million 1-3/2007 1-3/2006 1-12/2006
Cash flows from operating activities 7.4 1.4 -7.1
Cash flows from investing activities -0.2 -0.9 1.4
Cash flows from financing activities -6.2 -4.1 2.2
Total cash flows 1.0 -3.5 -3.4
The change in the net working capital has a significant effect on the operating
cash flows.
ACQUISITIONS
Lännen Tehtaat strengthened its Food business in accordance with its operational
strategy and acquired 28.2.2007 the shares of the Norwegian fish product
manufacturer Maritim Food AS. The deal included Maritim Food AS and its
wholly-owned Swedish subsidiaries Maritim Food Sweden AB and Maritim Food Sweden
Egendom AB, as well as its 47.5% minority interest in the Norwegian Sandanger
AS. In addition, the deal includes a call option which will enable Maritim Food
AS to increase its holding in Sandanger AS to 51% in the future.
The purchase price of the shares was EUR 10 million. In addition the cost of
acquisition includes transaction costs amounting approximately to EUR 0.5
million. The final purchase price of the shares will be affected by the 2007
financial results of Maritim Food and Sandanger AS, which has an effect between
EUR 0 - 1.3 million. The purchase price will also be affected by the audited
development of the assets and liabilities between June 30, 2006 and the date of
closing. The acquisition has been recognised on a preliminary basis in the
manner permitted by IFRS 3. Determination of the fair value of the company's
assets and liabilities was still incomplete at the time the interim report was
published. The effects of the additional purchase price elements have not yet
been able to be determined reliably and they are not included in the acquisition
cost. The interim report includes goodwill amounted to 5.6 million and it will
change as the purchase price calculation completes.
Fair value Acquiree's carrying
Feb 28, 2007 amounts
Feb 28, 2007
EUR million
Intangible assets 2.7 0.0
Tangible assets 4.2 3.6
Deferred tax assets 0.0 0.0
Inventories 3.5 3.1
Trade receivables and other receivables 2.6 2.6
Cash and cash equivalents 1.3 1.3
Total assets 14.3 10.7
Net assets 4.8 2.2
Acquisition cost 10.5
Goodwill 5.6
Purchase consideration settled in cash 10.5
Cash and cash equivalents in subsidiary acquired 1.3
Cash outflow on acquisition 9.2
KEY INDICATORS
March 31,2007 March 31,2006 Dec 31, 2006
Shareholders' equity per
share, EUR 18.50 17.71 19.06
Equity ratio, % 49.1 52.4 50.3
Gearing % 46.0 24.6 40.7
Gross investments in non-
current assets, EUR million 1.1 1.2 7.6
Corporate acquisitions and other
share purchases, EUR million 10.5 - 3.0
Average number of personnel 938 968 981
Average number of shares, 1 000 6 253 6 253 6 253
CONTINGENT LIABILITIES
EUR million
March 31,2007 March 31,2006 Dec 31, 2006
Mortgages given for debts:
Real estate mortgages 37.5 40.7 37.5
Corporate mortgages 51.4 51.4 51.4
Share pledged 13.0 3.6 3.6
Leasing liabilities 1.0 1.3 1.1
Non-cancellable other leases,
minimum lease payments 6.5 2.7 2.8
Contingent liabilities for own
commitments:
Repurchasing commitments 0.0 0.1 0.0
Estimated additional share
purchase price 0.0-2.0 - -
Contingent liabilities on behalf
of the associated companies:
Repurchasing commitments - 0.1 -
LÄNNEN TEHTAAT PLC Stock Exchange Release April 27, 2007
QUARTERLY COMPARATIVE INFORMATION FOR 2006 BASED ON THE NEW SEGMENT FORMAT
The segment format of Lännen Tehtaat plc was changed from the beginning of 2007
to respond better to the new Group structure. The primary reporting segments are
Frozen Foods, Fish Products, Vegetable Oil and Other Operations.
The Frozen Foods segment includes Apetit Pakaste Oy. Fish Products includes
Apetit Kala Oy and the Maritim Food AS group. Mildola Oy forms the Vegetable Oil
Operations. The Other Operations segment includes the service company Apetit
Suomi Oy, Group Administration and the joint unallocated operations of the
Group. In the comparative information for 2006, the cost effect of the services
produced by the operations transferred to Apetit Suomi Oy is an encumbrance on
the financial performance of the business operations in relation to the use of
the services. Frozen Foods, Fish Products, Vegetable Oil Operations and Other
Operations will form the continuing operations in the IFRS reporting from the
beginning of 2007.
The Suomen Rehu Group and the Avena Nordic Grain Group will be reported as
discontinued operations.
Lännen Tehtaat has calculated new net sales and operating profits, depreciation
and investments quarterly for 2006 using the new segment format.
NET SALES, EUR million
1-3/2006 4-6/2006 7-9/2006 10-12/2006
Frozen Foods 12.8 14.4 10.5 12.5
Fish Products 13.4 15.6 14.0 15.9
Vegetable Oil Operations 10.1 10.5 10.1 9.9
Other Operations 0.0 0.0 0.0 0.0
Intra-group sales 0.0 -0.1 0.0 0.0
Continuing operations total 36.3 40.4 34.6 38.3
Intra-group sales -2.9 -2.7 -2.4 -2.7
Discontinued operations total 63.6 65.0 59.4 81.8
Group total 97.0 102.8 91.6 117.4
1-6/2006 1-9/2006 1-12/2006
Frozen Foods 27.2 37.7 50.2
Fish Products 29.0 43.0 58.9
Vegetable Oil Operations 20.6 30.7 40.6
Other Operations 0.0 0.0 0.0
Intra-group sales -0.1 -0.1 -0.1
Continuing operations total 76.7 111.3 149.6
Intra-group sales -5.6 -8.0 -10.7
Discontinued operations total 128.6 188.0 269.8
Group total 199.7 291.3 408.7
OPERATING PROFIT, EUR million
1-3/2006 4-6/2006 7-9/2006 10-12/2006
Frozen Foods -0.8 0.2 0.9 1.3
Fish Products 0.4 0.0 0.6 0.7
Vegetable Oil Operations 0.7 1.2 0.5 0.6
Other Operations -1.9 -1.2 -0.9 1.0
Continuing operations total -1.6 0.2 1.1 3.6
Discontinued operations total 1.1 2.3 3.3 4.5
Group total -0.5 2.5 4.5 8.1
1-6/2006 1-9/2006 1-12/2006
Frozen Foods -0.6 0.3 1.6
Fish Products 0.4 1.0 1.7
Vegetable Oil Operations 1.9 2.4 3.0
Other Operations -3.1 -4.0 -3.0
Continuing operations total -1.4 -0.3 3.3
Discontinued operations total 3.4 6.7 11.2
Group total 2.0 6.4 14.5
OPERATING PROFIT, without non-recurring items, EUR million
1-3/2006 4-6/2006 7-9/2006 10-12/2006
Frozen Foods -0.7 0.2 0.9 1.8
Fish Products 0.4 0.0 0.1 0.7
Vegetable Oil Operations 0.7 0.9 0.5 0.7
Other Operations -1.3 -1.2 -0.9 -1.0
Continuing operations total -0.9 -0.1 0.6 2.2
Discontinued operations total 1.6 2.5 3.3 3.7
Group total 0.7 2.4 3.9 5.9
1-6/2006 1-9/2006 1-12/2006
Frozen Foods -0.5 0.4 2.2
Fish Products 0.4 0.5 1.2
Vegetable Oil Operations 1.6 2.1 2.8
Other Operations -2.5 -3.4 -4.4
Continuing operations total -1.0 -0.4 1.8
Discontinued operations total 4.1 7.4 11.1
Group total 3.1 7.0 12.9
DEPRECIATION AND IMPAIRMENTS, EUR million
1-3/2006 4-6/2006 7-9/2006 10-12/2006
Frozen Foods 0.7 0.6 0.7 0.7
Fish Products 0.2 0.2 0.4 0.2
Vegetable Oil Operations 0.2 0.1 0.3 0.0
Other Operations 0.1 0.2 0.1 0.1
Continuing operations total 1.2 1.1 1.5 1.0
Discontinued operations total 0.9 0.9 0.9 0.9
Group total 2.1 2.0 2.4 1.9
1-6/2006 1-9/2006 1-12/2006
Frozen Foods 1.3 2.0 2.7
Fish Products 0.4 0.8 1.0
Vegetable Oil Operations 0.3 0.6 0.6
Other Operations 0.3 0.4 0.5
Continuing operations total 2.3 3.8 4.8
Discontinued operations total 1.8 2.7 3.6
Group total 4.1 6.5 8.4
INVESTMENT IN NON-CURRENT ASSETS, EUR million
1-3/2006 4-6/2006 7-9/2006 10-12/2006
Frozen Foods 0.1 0.4 0.2 0.1
Fish Products 0.1 0.0 0.2 0.3
Vegetable Oil Operations 0.1 0.1 0.2 0.0
Other Operations 0.0 0.1 0.0 0.0
Continuing operations total 0.3 0.6 0.6 0.4
Discontinued operations total 0.9 2.5 1.8 0.5
Group total 1.2 3.1 2.4 0.9
1-6/2006 1-9/2006 1-12/2006
Frozen Foods 0.5 0.7 0.8
Fish Products 0.1 0.3 0.6
Vegetable Oil Operations 0.2 0.4 0.4
Other Operations 0.1 0.1 0.1
Continuing operations total 0.9 1.5 1.9
Discontinued operations total 3.4 5.2 5.7
Group total 4.3 6.7 7.6
LÄNNEN TEHTAAT PLC
Eero Kinnunen
CFO
Further information: Eero Kinnunen, tel. +358 10 402 4025
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE April 12, 2007
APETIT KALA PLANS TRANSFER OF PRODUCTION AND PACKAGING FROM KERAVA TO KUOPIO
Lännen Tehtaat subsidiary Apetit Kala Oy is Finland's leading producer of fresh
fish products with production facilities in Kuopio, Kerava and Kustavi.
The company has been cutting costs by making processes more efficient and
improving the division of labour among the factories. If, however, constant
competitiveness is to be guaranteed and profitability improved, further steps
will need to be taken. In order to improve productivity and increase
cost-effectiveness Apetit Kala Oy is planning to transfer the fish production
and packaging operations at Kerava to Kuopio.
Terminating production at Kerava is a continuation of the company's plan to
focus production operations on Kuopio. The company has already decided to halt
production at Kustavi and transfer the operations there to Kuopio by the summer.
The company has today initiated codetermination negotiations concerning the
issue with the personnel at Kerava, where there are at this moment 26 people
working in production and packaging, including hired personnel. The negotiations
will affect 14 permanent employees at Apetit Kala. It is thought that 14 new
jobs will be created at Kuopio.
By focusing production operations on Kuopio the company is aiming for annual
savings of some EUR 0.5 million, which that would be fully realized from the
beginning of 2008. Transferring the production will require investment of about
EUR 0.5 million at Kuopio. The plan is to carry this out by the autumn.
Apetit Kala's net sales in 2006 amounted to EUR 58.9 million and the profit
after financial items was EUR 0.6 million. At the end of the year the company
employed about 380 people, some 110 of whom were working in the fish factories,
while the rest, approximately 270, were working in the Kalatori business.
LÄNNEN TEHTAAT PLC
Martti Karppinen
CEO
Further information is available from:
Martti Karppinen, CEO, Lännen Tehtaat plc, tel + 358 10 402 4001
Samuli Eskola, Managing Director, Apetit Kala Oy, tel. + 358 10 402 4501
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE April 11, 2007
ORGANIZATION OF THE SUPERVISORY BOARD AND ELECTION OF THE BOARD OF DIRECTORS
The Supervisory Board of Lännen Tehtaat plc on April 11, 2007 elected Juha
Nevavuori as Chairman of the Supervisory Board and Heikki Halkilahti as Vice
Chairman of the Supervisory Board.
Harri Eela, Aappo Kontu, Matti Lappalainen, Hannu Simula, Soili Suonoja and Tom
v. Weymarn were re-elected as members of the Board of Directors. Tom v. Weymarn
was re-elected as Chairman of the Board and Hannu Simula as Vice Chairman of
the Board.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details: Matti Karppinen, tel. +358 10 402 00
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE March 29, 2007 at 4;15 p.m.
DECISIONS BY THE ANNUAL GENERAL MEETING OF LÄNNEN TEHTAAT PLS
The Annual General Meeting on March 29, 2007 approved the financial statements,
discharged those accountable from liability and decided to distribute a dividend
of EUR 0.84 per share. In addition, the Annual General Meeting authorized the
Board of Directors to decide on issuing new shares and on the sale of the shares
entered in the joint book-entry account.
MATTERS DEALT WITH BY THE ANNUAL GENERAL MEETING
FINANCIAL STATEMENTS
The Annual General Meeting approved the parent company's and the Group's income
statements and balance sheets, and discharged the members of the Board of
Directors, the members of the Supervisory Board and the CEO from liability for
the financial year 2006.
The Annual General Meeting decided to distribute as dividend EUR 0.84 per share.
The dividend record date is April 3, 2007, and the dividend will be paid on
April 12, 2007.
ELECTION OF THE MEMBERS OF THE SUPERVISORY BOARD AND THE AUDITORS
Heikki Halkilahti, Jussi Hantula, Börje Helenelund, Samu Pere and Esa Ruohola
were re-elected to the Supervisroy Board. Heikki Aaltonen, Mikko Kurittu and
Risto Korpela were elected as new members.
Hannu Pellinen, Authorized Public Accountant, and PricewaterCoopers Oy
Authorized Public Accountants with Jari Henttula, Authorized Public Accountant
as responsible auditor, were re-elected as auditors.
The Annual General Meeting decided that the monthly fee paid to the Supervisory
Board's chairman is EUR 350, and to the deputy chairman EUR 300. The meeting
allowance paid to the members of the Supervisory Board is EUR 200. In addition,
daily allowances and compensation for travelling expenses are paid in accordance
with the general travel rules of Lännen Tehtaat. The auditors' fees are paid as
per invoice.
RAISING THE SHARE CAPITAL
The Annual General Meeting authorized the Board of Directors to decide on
issuing new shares in the form of an issue against payment and on surrendering
company shares held by the company in one or more tranches. A maximum total of
631,757 new shares may be issued, and a maximum of 65,000 shares held by the
company may be surrendered. The subscription price for the new shares is a
minimum of their nominal value, i.e. EUR 2.00. The surrender price for the
company shares held by the company is a minimum of the current value at the time
of surrender determined on the basis of the price in public trading on the
Helsinki Stock Exchange. The Board of Directors was authorized to diverge from
the shareholders' pre-emptive subscription right on condition that the company
has a pressing financial reason to do so. The authorization also covers the
right to offer shares not only against money payment but also against capital
consideration in kind or on some other specified conditions or by using the
right of set-off and to decide on the subscription price and other terms and
conditions related to share issues.
The authorization is valid until the next Annual General Meeting. The
authorization repeals the previous share issue authorization given on March 29,
2006 and the authorization given on the same date to surrender the company's own
shares.
SALE OF SHARES IN THE JOINT BOOK-ENTRY ACCOUNT
The Annual General Meeting decided on the sale through public trading of shares
which have been entered in the joint book-entry account opened with the Finnish
Central Securities Depository under chapter 3a, section 3a of the Companies Act
(734/1978) and section 8 of the Implementing Act of the new Companies Act
(624/2006) and for which registration of the ownership right in a book-entry
account has not been demanded in spite of the fact that five years have passed
from the date of the registration date. Shareholders must within one year from a
request based on the decision of the Annual General Meeting demand that their
ownership right be registered or they will forfeit their right to the shares and
only keep the right to the funds obtained from the sale of the shares.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
More details: Matti karppinen, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE MARCH 29, 2007 AT 4.15 P.M.
LÄNNEN TEHTAAT TO INTRODUCE NEW SEGMENT FORMAT IN ITS REPORTING
Because of the major changes that have taken place in its Group structure
during this year, Lännen Tehtaat has decided to transfer to a new segment
format in its financial reporting. The change will apply to both the primary
and secondary reporting form.
The primary reporting form is still based on business and the reporting
segments from 2007 are: Frozen Foods, Fish Products, Vegetable Oil and Other
Operations. The Frozen Foods segment includes Apetit Pakaste Oy and the section
allocated to it from Apetit Suomi Oy. Fish Products includes Apetit Kala Oy,
the section allocated to Fish Products from Apetit Suomi Oy and the Norwegian
group Maritim Food AS, which became part of the Group at the beginning of
March. Mildola Oy forms the Vegetable Oil operations. Other Operations include
the Group Administration and the joint unallocated operations of the Group.
The geographical segment format from the beginning of the year is: Finland,
Scandinavia, the Baltic States and Russia, and Other Countries.
Because of the sale of the majority of shares of Suomen Rehu Ltd and Avena
Nordic Grain Oy in January, the Suomen Rehu Group (without Mildola) and the
Avena Nordic Grain Group will be reported as discontinued operations and
available-for-sale assets.
Quarterly comparative information for 2006 based on the new segment format will
be published by the end of April.
Lännen Tehtaat's first quarterly report for 2007 will be published on May 8,
2007.
LÄNNEN TEHTAAT PLC
Matti Karppinen
Chief Executive Officer
Further information: Matti Karppinen, CEO, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC Stock exchange announcement March 19, 2007
LÄNNEN TEHTAAT ANNUAL REPORT 2006 PUBLISHED
Lännen Tehtaat Annual Report for 2006 with financial statements has been
published today in Finnish and English. An annual summary of Stock exchange
releases and announcements is available in the Annual Report and on the company
web pages at www.lannen.fi/en/investor_information.
The Annual Report can also be read at www.lannen.fi/en/investor_information. The
Annual Report will be mailed in week 12 to the shareholders with more than 100
shares. A printed version of the Annual Report can be ordered by telephone +358
10 402 00 or by e-mail .
Lännen Tehtaat plc
Riitta Jaakkola
Financial Manager
tel +358 10 402 4020
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
Lännen Tehtaat plc Stock exchange announcement March 6, 2007
INVITATION TO THE ANNUAL GENERAL MEETING OF LÄNNEN TEHTAAT PLC
Company shareholders are hereby invited to the Annual General Meeting, which
will be held on Thursday, March 29, 2007, starting at 2:00 p.m. in the Lännen
Tehtaat staff restaurant in Iso-Vimma, Säkylä.
The AGM will deal with the following:
1. Items to be dealt with by the AGM under section 11 of the Articles of
Association.
2. A Board of Director's proposal that the Board be authorized to decide to
issue new shares in the form of an issue against payment and to surrender
company shares held by the company in one or more tranches. A maximum total of
631,757 new shares may be issued, and a maximum of 65,000 company shares held
by the company may be surrendered. The subscription price for the new shares is
a minimum of EUR 2.00, i.e. their nominal value. The surrender price for the
company shares held by the company is at a minimum the current value at the
time of surrender determined on the basis of the price in public trading on the
Helsinki Stock Exchange.
The authorization consists of the right
a) to diverge from the shareholders' pre-emptive subscription right to new
shares (targeted issue) on condition that the company has a pressing financial
reason to do so, such as development of the capital structure or financing and
implementing or corporate acquisitions or other arrangements
b) to offer shares not only against money payment but also against capital
consideration in kind or on some other specified conditions or by using the
right of set-off
c) to decide on the subscription price and other terms and aspects related to
share issues.
The authorization is valid until the next Annual General Meeting. The
authorization repeals the previous share issue authorization given on March 29,
2006 and the authorization given on the same date for the surrender the
company's own shares.
3. The Board proposes that the Annual General Meeting decides on the sale
through public trading of shares which have been entered in the joint
book-entry account opened with the Finnish Central Securities Depository under
chapter 3a, section 3a of the Companies Act (734/1978) and section 8 of the
Implementing Act of the Companies Act (624/2006) and for which registration of
the ownership right in a book-entry account has not been demanded in spite of
the fact that five years have passed from the registration date. Shareholders
must within one year from a request based on the decision of the Annual General
Meeting demand that their ownership right be registered or they will forfeit
their right to the shares and only keep the right to the funds obtained from
the sale of the shares.
Distribution of dividend
The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.84 per share be paid for the financial year 2006. The dividend will be
paid to shareholders whose shares are registered by the Finnish Central
Securities Depository Ltd, not later than the record date, April 3, 2007. The
dividend will be paid on April 12, 2007.
Right to attend the Annual General Meeting
A shareholder whose shares have been registered in the register of shareholders
maintained by the Finnish Central Securities Depository Ltd not later than
March 19, 2007 has the right to attend the Annual General Meeting.
A shareholder who was entered in the company's share register prior to 20 May
1995 also has the right to attend the Annual General Meeting. In these
circumstances, the shareholder must at the Annual General Meeting present his
share certificates or some other evidence that the right of ownership to the
shares has not been entered into a book-entry account.
Notification of intended participation at the Annual General Meeting must be
given to the company not later than March 27, 2007 before 4:00 p.m. local time
either by writing to Lännen Tehtaat plc, P.O Box. 100, FI-27801 Säkylä, or by
telefax +358 10 402 4022 or by phoning +358 10 402 4002/Arja Antikainen or by
e-mail . If notice is given by letter, this should
arrive before the above mentioned time. Possible proxies should be forwarded to
the company before the end of the notification period.
The financial statement documents and other documents required under the
Companies Act can be inspected during the week before the shareholders' meeting
at the company's head office, Lännen Tehtaat plc, Maakunnantie 4, 27820 Säkylä.
Copies of documents will be sent to shareholders on request.
Säkylä, February 13, 2007
LÄNNEN TEHTAAT PLC
Board of Directors
Distribution:
Helsinki Stock Exchange
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE March 5, 2007 at 3;00 p.m.
COMPETITION AUTHORITY MAKES AN INTERIM DECISION ON THE SALE OF MAJORITY
SHAREHOLDING IN SUOMEN REHU LTD AND AVENA NORDIC GRAIN OY
On January 19, 2007, Lännen Tehtaat plc and SOK subsidiary Hankkija-Maatalous Oy
signed a share-purchase agreement whereby 51% of the shares in Suomen Rehu Ltd
and Avena Nordic Grain Oy will be transferred to the ownership of
Hankkija-Maatalous Oy.
The Finnish Competition Authority has today made an interim decision on the
related merger notification lodged by Hankkija-Maatalous Oy on February 5, 2007
(diary number 854/81/2006). According to the decision, the Competition Authority
will initiate further investigation into the matter.
LÄNNEN TEHTAAT PLC
Matti Karppinen
Chief Executive Officer
Further information: Matti Karppinen, CEO, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
LÄNNEN TEHTAAT PLC STOCK EXCHANGE RELEASE February 28, 2007 at 1;30 pm
LÄNNEN TEHTAAT'S CORPORATE ACQUISITION IN NORWAY CONFIRMED
Lännen Tehtaat announced in its stock exchange release of February 6, 2007, that
it will strengthen its Food Division and accelerate the growth of its fish
product operations by purchasing the shares of the Norwegian Maritim Food AS
from Brynild Gruppen AS. The deed of purchase was signed on February 6, 2007.
The finalisation of the purchase was subject to the approval of the Norwegian
competition authorities. As the Norwegian authorities have not made a request
for a merger notification within the legally required period of time, the
purchase has been approved. The purchase has been finalised today.
Maritim Food AS and its Swedish subsidiaries Maritim Food Sweden AB and Maritim
Food Sweden Egendom AB, as well as a 47.5% interest in Sandanger AS, an
associated company of Maritim Food AS, will be incorporated into the Lännen
Tehtaat Group as of the beginning of March.
Maritim Food is one of the leading fish product manufacturers in Norway. The
company has clients in the retail and hotel/restaurant/catering sector. The
company sells and markets fish and shellfish products in Norway, Sweden and
Finland. Together Maritim Food AS and Apetit Kala Oy will be one of the leading
Scandinavian fish product manufacturers. In Norway and Finland their products
will be distributed within the nationwide retail sector, and in Sweden
comprehensively throughout the country within the hotel/restaurant/catering
sector. The companies aim to utilise their joint know-how, particularly in the
procurement of raw materials and in the manufacture and selling of products
within the Northern Baltic region.
In accordance with its operational strategy, Lännen Tehtaat is focusing on the
food business and aims to strengthen its position as one of the leading Finnish
food manufacturers. The corporate acquisition is in line with the company's
operational strategy.
LÄNNEN TEHTAAT PLC
Matti Karppinen
CEO
For additional information: Matti Karppinen, CEO, tel. +358 10 402 4001
Distribution:
Helsinki Stock Exchange
Main media
www.lannen.fi
