STOCKMANN’S FINANCIAL STATEMENT BULLETIN
STOCKMANN plc STOCK EXCHANGE RELEASE FEBRUARY 12, 2004, 12.00 noon
STOCKMANN’S FINANCIAL STATEMENT BULLETIN 2003
The Stockmann Group’s sales grew by 7.4% to EUR 1 698.6 million. Profit
before extraordinary items grew by 7.9% and was EUR 74.0 million. The
operating profit figures posted by the Department Store Division and
Seppälä Division were at the previous year’s good level. The Vehicle
Division reported its best-ever earnings. The Hobby Hall Division’s result
was down on the previous year and in the red. Stockmann’s earnings per
share improved to EUR 1.01 (EUR 0.97). The Board of Directors is proposing
the payment of an ordinary dividend of EUR 0.90 for the 2003 financial
year and a bonus dividend of EUR 0.45, or a total of EUR 1.35 per share.
Sales up 7.4 per cent
The Stockmann Group’s sales grew by 7.4 per cent, or EUR 116.3 million, to
EUR 1 698.6 million. Net turnover increased by EUR 97.4 million, or 7.4
per cent, to EUR 1 412.7 million. The net turnover figures by division are
shown in the accompanying table.
The gross margin on the Group’s operations was EUR 457.5 million, an
increase of EUR 18.6 million on the previous year (EUR 438.9 million), and
32.4 per cent of net turnover (33.4 per cent). The relative gross margin
on operations weakened by 1.0 percentage point owing to the strong growth
in the Vehicle Division’s sales and the weakening in the Hobby Hall
Division’s relative gross margin. Operating expenses grew by EUR 21.4
million and depreciation diminished by EUR 0.1 million.
Operating profit was up EUR 3.9 million to EUR 65.7 million. Operating
profit was 4.7 per cent of net turnover, or on a par with the previous
Other operating income consisted mainly of capital gains on the sale of
real estate and the goodwill compensation obtained from the disposal of
the agency sales of magazine and newspaper subscriptions. Other operating
income amounted to EUR 15.4 million, compared with EUR 8.8 million a year
Net financial income grew by EUR 1.6 million from the previous year and
was EUR 8.3 million.
Profit before extraordinary items grew by EUR 5.4 million and was EUR 74.0
million. Because there were no extraordinary items, pre-tax profit was the
same in amount.
Direct taxes increased by EUR 3.4 million and were EUR 22.3 million.
Net profit for the financial year was EUR 51.7 million, compared with EUR
49.7 million a year earlier.
Earnings per share increased by EUR 0.04 and were EUR 1.01. The figure a
year ago was EUR 0.97. Earnings per share, diluted for the effect of
share options, were EUR 1.00 (EUR 0.97).
Capital employed grew and was EUR 611.9 million (EUR 577.5 million).
Capital employed was increased, notably, by the share subscriptions made
with the 1997 options at the end of the year. The return on capital
employed rose to 13.2 per cent, as against 12.6 per cent a year ago. The
return on equity was 9.6 per cent, as it was a year earlier. Equity per
share was EUR 10.36, compared with EUR 10.17 a year earlier.
The company’s market capitalization grew by 34.6 per cent, or by EUR 245.5
million from the previous year and was EUR 955.6 million.
Sales and profitability trend of the divisions
The Department Store Division’s sales grew by 5 per cent to EUR 851.3
million. Sales by the functions in Finland increased by 4 per cent. The
Oulu department store reported a particularly strong increase in sales.
Sales by International Operations grew by 10 per cent and its share of the
division’s sales rose to 15.8 per cent (15.1 per cent). The Department
Store Division posted operating profit of EUR 39.7 million, the same
figure as a year ago. Earnings were burdened by the pre-opening costs of
the Riga department store, which was opened in mid-October, as well as by
the pre-opening costs for the new Stockmann Beauty and Zara stores. In
addition, the result of International Operations was burdened by the fall
in the exchange rate of the US dollar, particularly in the last quarter.
The return on capital employed was 21.1 per cent, on a par with the figure
a year earlier (21.0 per cent).
The lowering in the car tax at the beginning of the year has led to
soaring vehicle sales, which continued all year long. The Vehicle
Division’s sales grew by 20 per cent to EUR 480.4 million. Unit sales of
new vehicles grew by 26.4 per cent on the previous year, rising from 9 965
to 11 333, and used vehicles were up 16.6 per cent, rising from 7 917 to
9 327. Stockmann’s market share in the motor trade grew further in all the
localities where it operates. The division’s operating profit increased by
EUR 0.2 million to EUR 5.6 million, an all-time high (EUR 5.4 million). At
the beginning of October, the Vehicle Division wound up its last
Mitsubishi dealership. Its territory as an Audi dealer in turn expanded
from the start of October to eastern and western Uusimaa province in
addition to the existing dealership in the Helsinki metropolitan area. The
return on capital employed was 13.2 per cent, against 13.5 per cent a ear
Sales by the Hobby Hall Division declined by 1 per cent to EUR 235.7
million. The volume of packages dispatched grew by 5.6 per cent. Towards
the end of 2002, Hobby Hall launched a streamlining programme aiming at
annual cost savings of EUR 6 million. The programme was carried out
according to plan and had an impact on the trend in costs beginning in the
second quarter. Because the relative gross margin and sales fell clearly
short of targets, Hobby Hall’s profitability was unsatisfactory. In
addition, the costs of winding up stores cut into earnings. The Hobby Hall
Division’s operating result decreased by EUR 3.9 million and was a loss of
EUR 3.4 million. In order to improve its profitability, the Hobby Hall
Division decided in autumn 2003 to concentrate more closely on distance
retailing and to step up its logistics and category management. The
objective of the changes is to achieve an improvement in earnings of about
EUR 7.5-8.5 million annually. The Herttoniemi store was closed in
September, the stores in Espoo and in the centre of Tallinn at the end of
2003 and the Tampere store in February 2004. It was decided to change the
role of the stores remaining in operation – in Helsinki’s Hämeentie
street, in the Tammisto district of Vantaa and at Rocca al Mare in Tallinn
– so that they support distance retailing. During 2003 the Hobby Hall
Division’s staff was reduced by about 100 employees.
The Seppälä Division’s sales declined by 2 per cent on the same period a
year ago and were EUR 130.3 million. Seppälä has been striving to improve
its stock turn rate and gross margin, and results began to show up in the
form of improved operating profit in the latter half of the year compared
with the same period a year earlier. On the other hand, operating with a
clearly lower level of stocks than in the previous year affected the sales
trend to some extent. In addition, Seppälä’s largest store in Estonia,
which is located in Tallinn’s Viru Centre, has been closed since April
2003 because of refurbishing work on the shopping centre that will take
about a year. The number of stores in Finland was reduced by one: four
stores were closed and three new stores were opened. Year-end sales were
nevertheless lifted by the first four stores that were opened in Riga,
Latvia, in the autumn.
Despite unsatisfactory earnings in the second quarter, full-year operating
profit rose to nearly the previous year’s level and was EUR 10.1 million
(EUR 10.4 million). The return on capital employed increased by a hefty
58.5 per cent (52.4 per cent) thanks to a speed-up in capital turnover.
The trend in operating profit and return on capital employed by division
are shown in the accompanying table.
Financing and invested capital
Liquid assets totalled EUR 121.3 million, compared with EUR 70.5 million
at the end of 2002.
Loan repayments during the year amounted to EUR 1.0 million. In Latvia a
9.0 million lat (EUR 13.6 million) loan for the department store
construction project was drawn down. The amount of long-term loans at the
end of December was EUR 48.6 million. Capital expenditures in 2003 came to
EUR 40.9 million. Dividend payouts total EUR 45.8 million. The 1997
options were exercised to subscribe for a total of 1 239 700 shares in the
last quarter, bringing a total increase in shareholders’ equity of EUR
16.4 million. In addition, disposals of fixed assets generated EUR 36.6
The equity ratio declined from 69.7 per cent in the comparison period to
68.3 per cent.
Total contingent liabilities diminished by EUR 7.6 million from the end of
2002 and were EUR 60.8 million. Lease agreements on business premises
amounted to EUR 471.1 million, compared with EUR 363.0 million a year
earlier. Lease liabilities were increased by the leases on the new
department stores in Moscow and in the Jumbo Shopping Centre in Vantaa as
well as by the sale and leaseback of the Tapiola department store
A dividend of EUR 0.70 per share was paid for the 2002 financial year and
additionally a bonus dividend of EUR 0.20 per share in honour of the
company’s 140-year jubilee, or a total of EUR 45.8 million. In recent
years the company has had a positive earnings trend, a strong balance
sheet and a very high equity ratio, in addition to which the share option
programmes that are maturing over the next few years will increase the
company’s shareholders’ equity further. Accordingly, the Board of
Directors is proposing to the Annual General Meeting the payment of an
ordinary dividend for the 2003 financial year of EUR 0.90 and a bonus
dividend of EUR 0.45, or a total of EUR 1.35 per share. The proposed
dividend is 133.7 per cent of earnings per share.
Property and business transactions
In line with its strategy of freeing up capital, at the end of March
Stockmann sold its department store property in Espoo’s Tapiola district
to a wholly-owned subsidiary of the Dutch real-estate investment company
Wereldhave N.V. for just over EUR 36 million. At the same time, Stockmann
leased the divested property from the new owner for the Tapiola department
store’s use under a long-term leaseback agreement.
Stockmann sold Academic Bookstore’s agency sales of magazine and newspaper
subscriptions to Suomalainen Kirjakauppa Oy. The business was transferred
to the new owner as from June 1, 2003. The arrangement fits in with the
Stockmann Group’s strategy, with its focus on the consumer trade. Academic
Bookstore will continue acting as an agent for magazine and newspaper
subscriptions ordered by Stockmann’s Loyal Customers and will still handle
order-based book sales to customers and public-sector organizations.
Capital expenditures during the financial year totalled EUR 40.9 million
(EUR 25.8 million).
The Department Store Division’s capital expenditures came to EUR 18.2
million. The division’s biggest capital expenditure was the Riga
department store which was opened on October 17. During 2003 the outlay
for the site’s building and fixturings was a total of about EUR 14.7
million. All in all, Stockmann has invested EUR 19.7 million in the site.
Moscow’s first Zara store was opened at the end of February in the Mega
Shopping Centre. In April new Zara stores were opened in Finland in
Helsinki’s Itäkeskus Shopping Centre and in Turku’s Hansa Block. New
stores that are part of the Stockmann Beauty cosmetics chain were opened
during the year in the Forum Shopping Centre in Helsinki and in Tampere’s
Koskikeskus Shopping Centre, as well as in Seinäjoki and Vaasa.
In April Stockmann and IKEA’s Russian subsidiary LLC IKEA MOS entered into
a lease agreement on a Stockmann department store with about 10 000 square
metres of retail space that will be located in the Mega Shopping Centre on
the south side of Moscow. The construction works on the site are
proceeding according to plans and the department store will be opened in
April 2004. Stockmann’s investments in the site will come to about EUR 20
million, of which an outlay of EUR 2.7 million was made during 2003.
Established by IKEA, Mega is a 200 000 square metre shopping centre where,
among other retailers, the first Zara in Russia has been in operation
Refurbishing and enlargement works are in progress in the Stockmann-owned
building in the Suomenoja district of Espoo which is used by the Vehicle
Division. An Audi dealership serving metropolitan Helsinki and its
environs will be opened in the refurbished premises in spring 2004. The
project has a cost estimate of about EUR 3.4 million.
The Hobby Hall Division’s capital expenditures totalled EUR 1.7 million.
They went for developing the information systems and starting up mail
order sales in Lithuania.
Seppälä’s capital expenditures came to EUR 1.2 million. They went
primarily for the new stores in Latvia.
Investments in real-estate properties during the financial year amounted
to EUR 16.8 million, of which EUR 9.6 million was for the Riga department
Other capital expenditures came to EUR 3.0 million.
In the autumn IKEA decided to build a Mega North Shopping Centre with
about 200 000 square metres of retail space on Moscow’s north side. In
October Stockmann made an agreement with IKEA on opening a department
store with about 10 000 square metres of retail space in rented premises
in the same shopping centre. The construction works got under way at the
end of 2003. Stockmann’s capital expenditure for the site will come to
about EUR 20 million. According to plans, the department store will be
opened at the end of 2004 and it will be Moscow’s third full-sized
Stockmann department store.
The preliminary agreement that was signed with ZAO Znamenskaya concerning
a department store in St Petersburg has lapsed because the owner of the
property failed to arrange the financing required for implementing the
shopping centre by the deadline specified in the agreement. Stockmann is
looking for alternative department store sites in St Petersburg.
Stockmann has made an agreement with VV-Auto Oy, which is owned by Kesko
Corporation, on termination of the lease agreement for the VW-Audi car
dealership in Helsinki’s Herttoniemi district by December 31, 2004 at the
latest. The parties are negotiating on a possible sale of business
operations by the end of August 2004.
In October Stockmann made an agreement on opening a department store with
about 11 000 square metres of retail space in rented premises in the new
section of the Jumbo Shopping Centre in Vantaa. According to plans, the
department store will be completed in 2006 at the latest.
A large-scale project for enlargement and modification works on the
department store in the centre of Helsinki is pending. According to the
plan, the department store’s commercial premises will be expanded by about
10 000 square metres by converting existing premises to commercial use and
by building new retail space. In addition, completely new goods handling
and maintenance areas will be built as well as access passages to the new
customer car-park. After the enlargement the Helsinki department store
will have about 50 000 square metres of retail sales space. The project
has a total cost estimate of about EUR 115 million. The works are
estimated to reach completion during 2008. Implementation of the project
will call for modifying the town plan, a process that has already been
Preparations for IFRS financial statements
The IAS regulation which the European Union issued in 2002 stipulates that
all listed companies prepare consolidated financial statements in
accordance with International Financial Reporting Standards (IFRS) for the
2005 financial year at the latest.
Stockmann undertook preparations for IFRS financial statements in spring
2002, and the work has progressed according to the timetable set.
Stockmann’s IFRS working group has surveyed all the IFRS standards that
affect the Group’s operations and the changes in accounting practice they
will entail. Basic training in the implementation of IFRS and the
standards that are of most relevance to Stockmann has been arranged for
the staff. The decisions required for the selection of the principles of
valuing fixed assets, the classification and treatment of financial
instruments and the format for presenting financial statement information
were taken in autumn 2003. An information system that facilitates the
preparation and documentation of IFRS financial statements was placed in
use in October 2003.
Stockmann will go over to IFRS financial statements by drawing up, on the
basis of the financial statements for 2003, an opening IFRS balance sheet
for 2004 and making the IFRS-required adjustments to the financial
statements for 2003. During 2004, IFRS financial statements will be
prepared quarterly alongside the accounts according to Finnish financial
statement practice in order to obtain comparison figures for the 2005
interim reports. The interim reports and financial statements for 2005
will be published in accordance with IFRS.
Effects on the financial statements of introducing IFRS
According to a preliminary analysis, the changeover to IFRS reporting can
involve changes in Stockmann’s accounting policies particularly in the
following subareas: the method of amortizing revaluations, the treatment
of imputed deferred taxes, segmental reporting, the treatment of treasury
shares, the treatment of entitlement-based employment benefits (the
employment disability part of insurance under the Employees’ Pensions
Act), the classification and valuation of financial assets as well as
hedge accounting for derivative contracts.
In addition, the IFRS financial statements must present more extensive
notes to the accounts than at present, explain the accounting policies in
greater detail and present a new statement of shareholders’ equity.
Since IFRS standards are still partially in the process of finalization,
it has not yet been possible to take account of all the details of the
changes compared with present reporting. According to a preliminary
analysis, the effect of the change in accounting policies on the Group’s
profit and loss account and balance sheet will be minor. The estimate
available at the present time indicates that the change in accounting
policies will reduce the Group’s total assets, thereby causing a slight
decrease in the equity ratio. According to the estimate, the annual
effects on the consolidated profit and loss account will not be material
Share capital and shares
At its meetings held on May 20, 2003, August 12, 2003, and February 12,
2004, Stockmann’s Board of Directors approved shareholders’ requests to
convert a total of 293 000 of the company’s shares from Series A into
Series B shares in accordance with Article 3 of the Articles of
A total of 5 580 Stockmann plc Series B shares with a par value of 2 euros
were subscribed for with Stockmann Loyal Customer share options during the
subscription period from May 2, 2003, to May 31, 2003. As a consequence of
the subscriptions, the share capital was increased by EUR 11 160.
The 1997 share options were exercised to subscribe for a total of
1 239 700 Stockmann plc Series B shares with a par value of 2 euros in the
fourth quarter. As a consequence of the subscriptions, the share capital
was increased by EUR 2 479 400. During January 2004, the 1997 options were
exercised to subscribe for a further 20 300 Series B shares, and
consequently the options were exercised to subscribe for the maximum
amount or 1 260 000 Series B shares. As a consequence of the
subscriptions, the total increase in the share capital was EUR 2 520 000.
The subscription period for the 1997 options ended on January 31, 2004.
At the end of the year, the total number of Series A shares was 24 738 893
and there were 27 890 448 Series B shares. Following the increases the
share capital is EUR 105 258 682.
The company’s market capitalization grew by 34.6 per cent during the year
and was EUR 955.6 million at the end of December.
At the end of 2002, the market capitalization was EUR 710.1 million.
Stockmann’s shares outperformed both the HEX All-Share Index and the HEX
Portfolio Index during the year. At the end of December the stock exchange
price of the Series A share was EUR 18.00, compared with EUR 13.84 at the
end of 2002, and the Series B share was selling at EUR 18.30, as against
EUR 13.80 at the end of 2002. During the year more than 20 per cent of the
company’s shares changed owners.
At the end of December Stockmann held 163 000 of the company’s own Series
A shares and 250 000 of its own Series B shares. The par value of these
shares is a total of EUR 826 000, and they represent 0.8 per cent of all
the shares outstanding as well as 0.7 per cent of the total votes. The
shares were purchased for a total price of EUR 6.2 million.
The company’s Board of Directors does not have valid authorizations to
increase the share capital or to float issues of convertible bonds or
bonds with warrants or to buy back its own shares.
Stockmann’s payroll at the end of December 2003 was 9 542 employees, or
625 employees more than at the end of the previous year.
In 2003 Stockmann employed an average of 8 745 people, or 432 more than in
the previous year, when the average payroll was 8 313 employees. Converted
to full-time staff, the average number of employees rose by 316 and was
7 068. The number of employees grew primarily owing to the effect of the
department store opened in Riga in October and the new Zara stores. In the
parent company, the average number of employees converted to full-time
staff increased by 24 and was 4 280.
At the end of 2003 the number of staff working at units abroad was 1 946
employees, or 20 per cent of the entire personnel. At the end of the
previous year, 1 387 employees, or 16 per cent of the personnel, were
employed at units abroad.
Outlook for 2004
Retail sales excluding the motor trade are estimated to increase by about
2 per cent in Finland in 2004. The volume of new vehicle sales is
estimated to be at the previous year’s level. It is estimated that the
markets in Russia and the Baltic countries will continue to grow faster
than the Finnish market. The growth in the Stockmann Group’s sales is
expected to be at least at the same level as it was in 2003. Sales in 2004
are estimated to top EUR 1.8 billion.
The operating profit generated by the Department Store Division and
Seppälä is estimated to improve on the level reported for 2003 and the
Vehicle Division’s operating profit is set to remain at least at the same
level. Hobby Hall’s result is expected to improve significantly and to
return to the black. Accordingly, profit on ordinary operations is
estimated to improve markedly. Other operating income will depend on the
decisions taken during the year. Stockmann’s target is for the Group to
post higher profit before extraordinary items in 2004 than it did in 2003.
Helsinki, February 12, 2004
BOARD OF DIRECTORS
1-12/03 1-12/02 Change Change
EUR mill. EUR mill. % EUR mill.
Department Store Division, 602.2 579.4 3.9 22.8
Department Store Division, 111.0 99.9 11.1 11.1
Department Store Division, 713.2 679.3 5.0 33.9
Vehicle Division 394.5 328.3 20.2 66.2
Hobby Hall Division, 158.5 161.5 -1.9 -3.0
Hobby Hall Division, 38.8 36.6 5.9 2.2
Hobby Hall Division, total 197.3 198.1 -0.4 -0.8
Seppälä Division, Finland 98.8 101.0 -2.2 -2.2
Seppälä Division, 8.5 8.1 4.2 0.3
Seppälä Division, total 107.3 109.2 -1.7 -1.9
Real Estate + others 21.0 24.2 -13.1 -3.2
Eliminations -20.5 -23.7 3.2
Operations in Finland, 1 254.6 1 170.7 7.2 83.8
International operations, 158.2 144.6 9.4 13.6
Group 1 412.7 1 315.3 7.4 97.4
Profit and loss account
EUR mill. EUR mill.
Net turnover 1 412.7 1 315.3
Other operating income 15.4 8.8
Raw materials and services 955.3 876.4
Staff expenses 194.9 184.9
Depreciation and reduction in value 28.8 28.9
Other operating expenses 183.4 172.0
Operating profit 65.7 61.9
Financial income and expenses 8.3 6.7
Profit before extraordinary items 74.0 68.6
Extraordinary items 0.0 0.0
Profit before taxes 74.0 68.6
Income taxes, total 22.3 18.9
Minority interest 0.0 0.0
Profit for the financial year 51.7 49.7
Gross investments 40.9 25.8
Per cent of net turnover 2.9 2.0
Profit and loss account, Group quarterly, EUR mill.
Q1/03 Q2/03 Q3/03 Q4/03
Net turnover 318.7 348.3 327.7 418.1
Other operating income 12.8 2.6 0.0 0.0
Raw materials and services 225.5 237.9 221.1 270.7
Staff expenses 46.0 48.9 44.2 55.9
Depreciation 7.1 7.1 7.0 7.5
Other operating expenses 42.4 44.0 45.2 51.8
Operating profit 10.5 13.1 10.0 32.1
Financial income and expenses, 2.0 2.2 1.6 2.5
Profit before extraordinary items 12.5 15.3 11.6 34.6
Extraordinary items 0.0 0.0 0.0 0.0
Profit before taxes 12.5 15.3 11.6 34.6
Direct taxes (corresponding to 3.6 4.4 3.4 10.9
profit before taxes)
Minority interest 0.0 0.0 0.0 0.0
Profit for the period 8.9 10.8 8.3 23.7
Earnings trend of the divisions
1-12/03 1-12/02 Change ROCE % ROCE %
EUR mill. EUR mill. EUR mill. 2003 2002
Department Store 39.7 39.7 0.0 21.1 21.0
Vehicle Division 5.6 5.4 0.2 13.2 13.5
Hobby Hall Division -3.4 0.5 -3.9 -3.4 0.5
Seppälä Division 10.1 10.4 -0.3 58.5 52.4
Real-estate 14.5 16.4 -1.9 11.4 11.2
Other operating 15.4 8.8 6.6
Eliminations + -16.1 -19.3 3.2
Group 65.7 61.9 3.9 13.2 12.6
The operating profit figures of the commercial units are presented
according to management accounting.
A good financial position
Security pledged, contingent liabilities and other commitments
Group Parent company
2003 2002 2003 2002
Liabilities for which
mortgages on real-estate
have been lodged as
Pension loans 31.12 1.0 1.0
Mortgages given 1.8 1.8
Mortgages pledged as 1.8 1.8
Other security pledged for
loans of the company
Mortgages given 1.7 1.7 1.7 1.7
Securities pledged 0.1 0.1 0.1 0.1
Total 1.7 1.8 1.7 1.8
Security pledged on behalf
of Group undertakings
Rent guarantees 16.4
Other guarantees 17.4 1.4
Total 33.8 1.4
Payable during the 2004 2.9 0.6 4.8 1.7
Payable at a later date 0.9 0.8 11.9 8.6
Total 3.8 1.4 16.7 10.3
Other own commitments
Repurchase commitments 55.3 63.5 55.3 63.5
for transferred leasing
and hire purchase
Total 55.3 63.5 55.3 63.5
Mortgages 1.7 3.4 1.7 3.4
Pledges 0.1 0.1 0.1 0.1
Guarantees 33.8 1.4
Other commitments 59.1 64.9 72.0 73.8
Total 60.8 68.4 107.5 78.8
Derivative instruments of the Group
Dec.31, 2003 Dec.31, 2002
EUR mill. EUR mill.
Foreign exchange derivatives 11.7 11.4
Interest rate derivatives 35.0 45.0
Foreign exchange derivatives -0.1 0.0
Interest rate derivatives -0.9 -0.8
Average number of employees, converted to full-time staff
1-12/03 1-12/02 Change
Department Store Division 4 782 4 459 323
Vehicle Division 776 741 35
Hobby Hall Division 704 755 -51
Seppälä Division 709 705 4
Management and administration 97 92 5
Group 7 068 6 752 316
BALANCE SHEET Dec.31,2003 Dec.31,2002
ASSETS EUR mill. EUR mill.
Intangible rights 10.3 9.8
Goodwill arising on consolidation 0.0
Goodwill 0.0 0.1
Other capitalized long-term expenses 24.6 24.8
Advance payments and projects in progress 5.4 1.6
Intangible assets, total 40.4 36.3
Land and water 17.8 20.2
Buildings and constructions 133.0 146.9
Machinery and equipment 59.8 63.1
Other tangible assets 0.1 0.1
Advance payments and construction in progress 9.5 6.1
Tangible assets, total 220.2 236.4
Own shares 6.2 6.2
Other shares and participations 22.4 22.5
Investments, total 28.7 28.7
NON-CURRENT ASSETS, TOTAL 289.2 301.4
Raw materials and consumables 191.3 188.9
Stocks, total 191.3 188.9
Trade debtors 0.2 0.5
Loan receivables 0.1 0.2
Other debtors 0.5
Deferred tax assets 0.8
Non-current debtors, total 1.7 0.7
Trade debtors 177.7 169.1
Other debtors 6.5 11.7
Prepayments and accrued income 13.1 10.3
Current debtors, total 197.3 191.2
Debtors, total 199.0 191.8
Securities held in current assets 101.8 56.6
Cash in hand and at banks 19.5 13.9
CURRENT ASSETS, TOTAL 511.6 451.2
TOTAL 800.8 752.7
BALANCE SHEET Dec.31,2003 Dec.31,2002
LIABILITIES EUR mill. EUR mill.
CAPITAL AND RESERVES
Share capital 105.3 102.8
Premium fund 147.1 133.1
Fund for own shares 6.2 6.2
Reserve fund 0.2 0.1
Other funds 43.7 43.7
Retained earnings 192.9 189.2
Net profit for the financial year 51.7 49.7
CAPITAL AND RESERVES, TOTAL 547.1 524.8
Minority interest 0.0 0.0
Deferred tax liability 26.0 23.3
Loans from credit institutions 48.6 35.0
Pension loans 0.8
Non-current creditors, total 48.6 35.8
Pension loans 0.3
Trade creditors 92.2 81.7
Other creditors 40.5 41.3
Accruals and prepaid income 46.4 45.5
Current creditors, total 179.0 168.7
CREDITORS, TOTAL 253.7 227.8
TOTAL 800.8 752.7
Helsinki, February 12, 2004
A press and analysts conference will be held today, February 12, 2004, at
2.30 p.m. at the World Trade Center, Aleksanterinkatu 17, Helsinki.