INTERIM REPORT May 6, 2011 at 9:00 A.M.
WULFF GROUP PLC’S INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2011
- Net sales increased by 16.9 percentages and totalled EUR 25.2 million (EUR 21.6 million) in the first quarter. The markets’ turn-up in the late 2010 has continued in the first quarter of 2011 and additionally the Group has won new customers in all its operational countries.
- EBITDA in the first quarter increased to EUR 0.28 million from EUR 0.06 million in the comparable period.
- In the first quarter, the operating profit was EUR 0.01 million whereas in the comparable period the result was a loss of EUR 0.16 million.
- The result after financial items and taxes remained negative at EUR -0.16 million (EUR -0.09 million). Loss per share for the quarter (EUR -0.03) was smaller than in the comparable period (EUR -0.04).
GROUP’S NET SALES AND PERFORMANCE
Net sales increased by 16.9 percentages and totalled EUR 25.2 million (EUR 21.6 million) in the first quarter. Focusing on sales and new customer hunting affected the sales growth and the result. The majority of the sales growth was gained in Scandinavia.
Wulff Group’s CEO Heikki Vienola: “Our sales improved positively in the first quarter. Our customers ask their partners for even broader services in the field of office supplies, and thus one of our focus in 2011 is to develop our services both locally and in pan-Nordic direction. With the good combination of our concepts, the contract sales and the direct sales, we can provide our customers with the industry’s most innovative and broadest services. The constant development initiatives ensure our services to be the best in the industry.”
To strengthen its competitive edge and increase its visibility, Wulff launched a brand redesign in March. Instead of previous independent brands, the common Wulff brand and visuality show the customers and stakeholders that the Group companies make together one, greater player in the industry. The redesign improves also marketing cost effectiveness as all brands support each other. The Group’s brand strategy aims to make Wulff the most well-known brand in office supplies in the Nordic countries by year 2015.
Wulff Group’s CEO Heikki Vienola: “Wulff Group’s brand redesign launched in March supports well our operations and strategy. The Group companies will be recognised by their identical visual look and black-and-white colours. We have received good feedback of the redesign from our customers and partners because now our customers recognize us, the reliable high-quality supplier, already in the first glance.”
The general market improvement fuelled the positive sales growth in the beginning of 2011. The markets’ turn-up in the late 2010 has continued in the first quarter of 2011 and additionally the Group has won new customers in all its operational countries. However, the markets have not yet recovered back to their previous years’ level and the Group management believe the market improvement to continue in 2011.
EBITDA in the first quarter increased to EUR 0.28 million from EUR 0.06 million in the comparable period. EBITDA was 1.1 percentage (0.3 %) of the quarter’s net sales. The Group, focusing on gross margin increase and continuing review of its cost structure and performance efficiency, aims to improving all its businesses’ profitability.
In the first quarter, the operating profit was EUR 0.01 million whereas in the comparable period the result was a loss of EUR 0.16 million. The operating result was +0.0 percentages (-0.7 %) of net sales.
In the first quarter, the financial income and expenses totalled (net) EUR -0.10 million (EUR +0.12 million) including dividend income of EUR 0.02 million (EUR 0.10 million), interest expenses of EUR 0.08 million (EUR 0.06 million) and other financial items (net) of EUR -0.05 million (EUR +0.07 million).
The first-quarter result before taxes was EUR -0.09 million (EUR -0.04 million). The net result after financial items and taxes totalled a loss of EUR 0.16 million (EUR -0.09 million).
In the first quarter, the net result attributable to the equity holders of the parent company amounted to EUR -0.18 million (EUR -0.24 million). Loss per share for the quarter (EUR -0.03) was smaller than in the comparable period (EUR -0.04).
Return on investment (ROI) was -0.06 percentage (+0.04 %) and return on equity (ROE) was -0.97 percentage (-0.49 %) for the first quarter.
CONTRACT CUSTOMERS DIVISION
The Contract Customers Division is a comprehensive partner for customers in the field of office supplies, business and promotional gifts as well as fair and event marketing services. In the first quarter, the segment’s net sales increased by EUR 3.4 million i.e. 19 percentages up to EUR 21.0 million (EUR 17.6 million).
The majority of the division’s sales growth was made by Wulff Supplies with its operations in Scandinavia as it has managed to both increase its market share and win new customers constantly. The new efficient logistics centre opened in Ljungby, Southern Sweden, last year, enables better customer service and future growth. In March 2011, Wulff Group’s Executive Board was strengthened with Wulff Supplies AB’s Managing Director Trond Fikseaunet’s strong knowledge of the Scandinavian office supply industry. The integration of Wulff Supplies with Wulff Group has continued successfully and the Group has good possibilities to serve even more Nordic customers in the future.
Also Wulff Oy, with its operations in Finland, and its subsidiary Torkkelin Paperi Oy operating in Lahti area, have increased their sales in the first quarter of 2011. During the past 120 years, Wulff Oy is known for being the pioneer in its branch in Finland. Wulff has invested remarkably in the development of its e-services. For instance, the webstore Wulffinkulma.fi is marketed innovatively by the Group’s qualified direct sales persons. Personal sales activities are targeted to reach also those customers who have not yet made active purchases in the web. The webstore serves its customers with a range of nearly 4,000 products.
The Contract Customers Division increased its operating profit up to EUR 0.12 million (EUR 0.04 million) in the first quarter. The improvement of the general economic situation can be seen in the grown demand for business and promotional gifts and in the increase of the Group’s gift companies’ order backlog. The division’s result is affected by the cycles of the business gift market: the majority of the products are delivered and the majority of the annual profit is generated during the second and last quarters of the year.
DIRECT SALES DIVISION
The Direct Sales Division aims to improve its customers’ daily operations with innovative products and the industry’s most professional personal, local service. In the first quarter, the division’s net sales increased by 6 percentages (EUR 0.25 million) from the comparable period’s EUR 4.0 million up to EUR 4.3 million. The sales grew and profitability improved especially in Sweden and Norway. In the first quarter, the Direct Sales Division’s operating profit totalled EUR 0.07 million (EUR 0.12 million).
In order to achieve a good profitability level and financial result, the cost efficiency improvement initiatives will continue in all direct sales companies. Additionally, the focus is in improving the sales and supporting it with new methods, e.g. with e-marketing. The Group’s new partnering strategy aims to gain synergies in product purchases. Group-level price competitions and co-operation have already gained good results in purchases.
For a sales company, the most important asset is its personnel. Capable persons make the growth possible and one of the most significant goals for the Direct Sales division is to be able to recruit talented sales professionals. The Group invests in visibility and recruitment marketing in different media and aims to recruit several new direct sales employees in the Nordic countries. The recruiting cooperation with the governmental employment agency is developed constantly. Wulff Academy, the Group’s own training program for its new sales personnel, guarantees the best possible start for the persons who are changing jobs or entering the industry for the first time. Wulff Academy trainees build their career path based on their own talents and development. Wulff Academy operations have been developed strongly and the new ideas have gained good feedback also in the form of increased sales.
FINANCING, INVESTMENTS AND FINANCIAL POSITION
The cash flow from operating activities totalled EUR -2.01 million (EUR 0.00 million) in the first quarter because the working capital increased along the sales growth. In addition to the profitability improvement initiatives, the Group aims to improve the working capital management.
In the first quarter of 2011, a net total of EUR 0.55 million was used in investing activities including investments in intangible and tangible assets (EUR 0.43 million), payment of the last additional acquisition price related to subsidiary Ibero Liikelahjat Oy (EUR 0.18 million) and payment for the subsidiary Torkkelin Paperi Oy’s minority shares acquired in December 2010 (EUR 0.39 million). Proceeds of EUR 0.37 million were received from the disposal of fixed assets and loan receivable repayments of EUR 0.07 million were received. During the year, investments were made e.g. in IT development projects in Finland. In the first quarter of 2010, the net investments amounted to EUR 0.13 million.
In the first quarter, short-term loan of net EUR 0.15 million (net EUR 0.11 million) was raised. Short-term financial investments totalled EUR 0.11 million (EUR 0.19 million) and the acquisition of own shares totalled EUR 0.00 million (EUR 0.01 million). Dividends of EUR 0.00 million (EUR 0.10 million) were received. The minority shareholders of the subsidiaries were paid dividends of EUR 0.05 million (EUR 0.04 million). In the first quarter, the net cash flow used in financing activities totalled EUR -0.01 million (EUR -0.03 million).
In general, the Group’s cash amount decreased by EUR 2.58 million from the beginning value of EUR 4.38 million down to EUR 1.80 million in the first quarter (decrease of EUR 0.16 million in the comparable period).
The equity attributable to the equity holders of the parent company totalled EUR 2.38 per share (December 31, 2011: EUR 2.41) and the equity-to-assets ratio was 37.9 percentage (December 31, 2010: 37.0 %).
DECISIONS OF THE ANNUAL GENERAL MEETING
Wulff Group Plc’s Annual General Meeting held on April 28, 2011 decided to pay a dividend of EUR 0,05 per share and authorised the Board of Directors to decide on the repurchase of the company’s own shares. The Annual General Meeting accepted also the Board’s proposal concerning the authorisation to perform share issues.
The Annual General Meeting adopted the financial statements for the financial year 2010 and discharged the members of the Board of Directors and CEO from liability.
The previous Board members Erkki (Ere) Kariola, Ari Pikkarainen, Pentti Rantanen, Sakari (Saku) Ropponen, Andreas Tallberg and Heikki Vienola were re-elected. Sakari (Saku) Ropponen continues as the Chairman of the Board.
In 2010, the Company’s auditor was Nexia Oy, a company of Authorized Public Accountants, with Authorized Public Accountant Christer Antson as the lead audit partner, together with Juha Lindholm, Certified Auditor. As proposed by the Board of Directors, the Annual General Meeting decided to elect KPMG Oy Ab, a company of Authorized Public Accountants, with Authorized Public Accountant Minna Riihimäki as the lead audit partner, as Wulff Group Plc’s auditor. Based on the Articles of Association, the auditors are appointed until further notice.
SHARES AND SHARE CAPITAL
Based on the authorization of the Annual General Meeting held on April 23, 2010, the acquisition of own shares continued in 2011. In the end of December 2010, the parent company held a total of 99 036 own shares and in the first quarter of 2011, 964 own shares were repurchased and 10 000 own shares were granted to the Group’s key person as a part of the share-based incentive plan launched in 2008. In the end of March 2011, the Group held a total of 90 000 own shares (66 829 as of March 31, 2010) representing 1.4 percentage (1.0 %) of the total number and voting rights of Wulff shares. The average price for the own shares repurchased in January-March was EUR 2.70 (EUR 3.25) per share.
Authorized by the Annual General Meeting held on April 28, 2011, the Board of Directors decided in its organizing meeting to continue buying back a maximum of 300,000 own shares by the next Annual General Meeting. The reacquisition of own shares will start on May 9, 2011 at the earliest.
The shares are acquired through public trading on NASDAQ OMX Helsinki in a proportion other than that of current shareholder holdings. The shares are acquired at the market price quoted at the time of the repurchase in accordance with the rules regarding the acquisition of company’s owns shares. According to the authorisation, the treasury shares can be acquired to carry out acquisitions or other business related arrangements, to improve the company’s capital structure, to support the implementation of the company’s incentive scheme or to be cancelled or disposed of.
In February 2011, Wulff Group Plc’s Board of Directors decided on a new share-based incentive and commitment scheme for the Group’s key personnel for three earning periods, calendar years 2011-2013. The purpose of the scheme is to commit and encourage the Group’s key personnel for profitable and growing business along with generating shareholder value in the long run. Based on this scheme, a maximum of 100,000 Company shares can be granted. During a two-year restriction period, it is prohibited to transfer the shares. Currently there is one key person in the scheme and the maximum number is 20 key persons within the scheme.
The Group does not have any option schemes currently in force.
The parent company’s share capital (EUR 2.65 million) consists of 6 607 628 shares with one vote each. There have been no changes in share capital in 2010 and 2011. There have been no disclosed notifications on changes in major holdings during 2010 and 2011.
Wulff Group Plc’ share is listed on NASDAQ OMX Helsinki in the Small Cap segment under the Consumer Discretionary sector. The company’s trading code is WUF1V. In the end of March 2011, the share was valued at EUR 2.54 (EUR 3.35) and the market capitalization of the outstanding shares totalled EUR 16.6 million (EUR 21.9 million).
In the first quarter, the Group’s personnel totalled 372 (366) employees on average. In the end of the period, the Group had 374 (360) employees of which 135 (71) persons were employed in Sweden, Norway, Denmark and Estonia.
The majority, approximately 60 percentages of the Group’s personnel works in sales operations and approximately 40 percentages of the employees work in sales support, logistics and administration. Wulff employees equally both genders: in the end of March 2011, men represented 51 percentages and women 49 percentages of the employees.
In order to increase the organic growth, the Group focuses on recruiting sales personnel. The Group continues the close cooperation with the employment authorities and the educational institutions. Along with the web-based recruitment methods, the Group participates different events and takes personal contact with potential sales talents. The Group aims to increase its sales personnel in all its operational countries in 2011.
RENEWAL OF GROUP EXECUTIVE BOARD
In March 2011, the Group Executive Board renewed. The new Group Executive Board member is Trond Fikseaunet, Wulff Supplies AB’s Norwegian Managing Director. Wulff Supplies AB concentrates on contract customers for office supplies and serves its customers in Norway, Sweden and Denmark. For 13 years, Fikseaunet (47) has been managing Wulff Supplies (previously Strålfors Supplies AB) which was acquired in Wulff Group in 2009. Fikseaunet has a broad experience of more than 25 years in office supplies industry. The Group Executive Board was renewed to match better the current businesses: in 2010, Wulff Group’s net sales were generated in Finland (55 %), Norway (22 %), Sweden (20 %), Denmark (2 %) and Estonia (1 %).
Heikki Vienola, Group CEO, acts as the Chairman of the Group Executive Board and other members, together with Trond Fikseaunet, are Group CFO Kati Näätänen, Wulff Oy’s Managing Director Jani Puroranta, Group Communications Director Tarja Törmänen and Director of the Direct Sales division Veijo Ågerfalk.
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for office supplies is still affected by the organizations’ personnel lay-offs and cost saving initiatives made during the economic downturn. The general uncertainty may still continue which will most likely affect the ordering behaviour of some corporate clients also in 2011. The improvement of the economic situation is expected to affect quickly the demand for office supplies.
The possibly ongoing economic uncertainties impact especially the demand for business and promotional gifts. Although the business gifts are seen increasingly as a part of the corporate communications as a whole and they are utilized also in the off-season, some cost savings may be sought after by decreasing the investments in the brand promotion. During the uncertain economic periods, the corporations also minimize attending fairs and decrease their event marketing activities.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its industry. Wulff’s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. The Nordic markets have been consolidating when – in addition to Wulff itself – also other international players have acquired Nordic office supply companies lately: Staples acquired Oy Lindell Ab in July 2010, Lyreco acquired Officeday Finland Oy from Arion bank in August 2010 and Office Depot acquired Swedish Frans Svanström & Co Ab in January 2011.
In 2011, the Group continues taking actions for enhancing profitability. The Group focuses on the growth and development of its sales operations. In 2011, the Group expects to win new customers and gain growth especially along with Wulff Supplies Ab in Scandinavia and with the webstore Wulffinkulma.fi in Finland.
The group management believes that in 2011 Wulff has good opportunities to reach an operating result better than in 2010 as long as the markets continue improving also in 2011 as has been experienced since the last quarter 2010. Wulff is also prepared to carry out new strategic acquisitions.
FINANCIAL REPORTING IN 2011
Wulff Group Plc will release the following financial reports in 2011:
|Interim Report, January-June 2011||Wednesday August 10, 2011 at 9.00 A.M.|
|Interim Report, January-September 2011||Thursday November 10, 2011 at 9.00 A.M.|
Wulff Group Plc’s financial reports are published in Finnish and in English, and they are available at the Group’s website www.wulff-group.com.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
|Net sales||25 242||21 584||93 107|
|Other operating income||131||166||467|
|Materials and services||-17 077||-13 529||-60 516|
|Employee benefit expenses||-5 046||-4 805||-18 617|
|Other operating expenses||-2 969||-3 355||-12 866|
|Depreciation and amortization||-272||-221||-1 182|
|Profit/Loss before taxes||-93||-43||223|
|Net profit/loss for the period||-161||-89||-415|
|Equity holders of the parent company||-180||-240||-623|
|Earnings per share for profit|
|attributable to the equity holders|
|of the parent company:|
|Earnings per share, EUR||-0,03||-0,04||-0,10|
|(diluted = non-diluted)|
|STATEMENT OF COMPREHENSIVE INCOME||I||I||I-IV|
|Net profit/loss for the period||-161||-89||-415|
|Other comprehensive income, net of tax|
|Change in translation differences||-3||228||134|
|Fair value changes on available-for-sale investments||9||-19||42|
|Total other comprehensive income||6||209||176|
|Total comprehensive income for the period||-155||120||-238|
|Total comprehensive income attributable to:|
|Equity holders of the parent company||-119||-77||-540|
|STATEMENT OF FINANCIAL POSITION||March 31||March 31||Dec 31|
|Goodwill||9 507||10 804||9 501|
|Other intangible assets||1 422||1 220||1 382|
|Property, plant and equipment||2 038||1 912||2 285|
|Non-current financial assets|
|Interest-bearing financial assets||94||567||503|
|Non-interest-bearing financial assets||454||348||442|
|Deferred tax assets||1 164||1 027||1 011|
|Total non-current assets||14 679||15 879||15 124|
|Inventories||11 707||11 349||11 740|
|Non-interest-bearing receivables||16 121||12 437||14 708|
|Financial assets recognised at fair value through profit and loss||109||198||0|
|Cash and cash equivalents||1 804||5 180||4 379|
|Total current assets||29 741||29 248||30 902|
|TOTAL ASSETS||44 420||45 127||46 025|
|EQUITY AND LIABILITIES|
|Equity attributable to the equity holders of the parent company:|
|Share capital||2 650||2 650||2 650|
|Share premium fund||7 662||7 662||7 662|
|Invested unrestricted equity fund||223||223||223|
|Retained earnings||4 999||6 281||5 121|
|Non-controlling interest||1 056||1 273||1 158|
|Total equity||16 590||18 090||16 814|
|Interest-bearing liabilities||7 689||9 214||8 403|
|Deferred tax liabilities||132||179||136|
|Total non-current liabilities||7 820||9 393||8 539|
|Interest-bearing liabilities||2 791||2 115||2 425|
|Non-interest-bearing liabilities||17 218||15 530||18 247|
|Total current liabilities||20 009||17 645||20 673|
|TOTAL EQUITY AND LIABILITIES||44 420||45 127||46 025|
|STATEMENT OF CASH FLOW||I||I||I-IV|
|Cash flow from operating activities:|
|Cash received from sales||23 772||21 824||91 189|
|Cash received from other operating income||51||138||339|
|Cash paid for operating expenses||-25 670||-21 816||-89 433|
|Cash flow from operating activities before financial items and income taxes||-1 847||146||2 095|
|Income taxes paid||-106||-69||-372|
|Cash flow from operating activities||-2 012||2||1 528|
|Cash flow from investing activities:|
|Investments in intangible and tangible assets||-426||-187||-1 509|
|Proceeds from sales of intangible and tangible assets||372||58||187|
|Acquisition of subsidiaries, net of cash||-573||0||-219|
|Repayments of loans receivable||74||0||29|
|Cash flow from investing activities||-554||-130||-1 512|
|Cash flow from financing activities:|
|Acquisition of own shares||-3||-9||-110|
|Cash paid for (received from) short-term investments (net)||-109||-194||-55|
|Withdrawals of long- and short-term loans||1 057||610||914|
|Repayments of long-term loans||-911||-500||-1 388|
|Cash flow from financing activities||-9||-30||-974|
|Change in cash and cash equivalents||-2 576||-157||-958|
|Cash and cash equivalents at the beginning of the period||4 379||5 337||5 337|
|Cash and cash equivalents at the end of the period||1 804||5 180||4 379|
STATEMENT OF CHANGES IN EQUITY
|EUR 1000||Equity attributable to equity holders of the parent company|
|Share capital||Share premium fund||Fund for invested
|Equity on Jan 1, 2010||2 650||7 662||223||-211||6 562||16 886||1 117||18 003|
|Comprehensive income *||-77||-77||196||120|
|Treasury share acquisition||-9||-9||-9|
|Treasury share disposal||16||-16||0||0|
|Equity on March 31, 2010||2 650||7 662||223||-204||6 485||16 816||1 273||18 090|
|Equity on Jan 1, 2010||2 650||7 662||223||-211||6 562||16 886||1 117||18 003|
|Comprehensive income *||-540||-540||302||-238|
|Treasury share acquisition||-110||-110||-110|
|Treasury share disposal||42||-42||0||0|
|Changes in ownership||-294||-294||-103||-398|
|Equity on Dec 31, 2010||2 650||7 662||223||-279||5 400||15 656||1 158||16 814|
|Equity on Jan 1, 2011||2 650||7 662||223||-279||5 400||15 656||1 158||16 814|
|Comprehensive income *||-119||-119||-36||-155|
|Treasury share acquisition||-3||-3||-3|
|Equity on March 31, 2011||2 650||7 662||223||-283||5 282||15 534||1 056||16 590|
* net of tax
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|Net sales by operating segments|
|Contract Customers Division||20 961||17 597||77 301|
|Direct Sales Division||4 292||4 042||16 075|
|Group Services||256||354||1 257|
|Intragroup eliminations between segments||-267||-409||-1 525|
|TOTAL NET SALES||25 242||21 584||93 107|
|Operating profit/loss by operating segments|
|Contract Customers business||120||39||832|
|Contract Customers Division Total||120||39||482|
|Direct Sales business||68||124||324|
|Direct Sales Division Total||68||124||324|
|Group Services and non-allocated items||-177||-323||-764|
|TOTAL OPERATING PROFIT/LOSS||10||-160||43|
|Net sales||25 242||21 584||93 107|
|Increase/Decrease in net sales, %||16,9 %||28,9 %||24,5 %|
|EBITDA margin, %||1,1 %||0,3 %||1,7 %|
|Operating profit/loss margin, %||0,0 %||-0,7 %||0,0 %|
|Profit/Loss before taxes||-93||-43||223|
|Profit/Loss before taxes margin, %||-0,4 %||-0,2 %||0,2 %|
|Net profit/loss for the period attributable to equity holders of the parent company||-180||-240||-623|
|Net profit/loss for the period, %||-0,7 %||-1,1 %||-0,7 %|
|Earnings per share, EUR (diluted = non-diluted)||-0,03||-0,04||-0,10|
|Return on equity (ROE), %||-0,97 %||-0,49 %||-2,38 %|
|Return on investment (ROI), %||-0,06 %||0,04 %||1,75 %|
|Equity-to-assets ratio at the end of period, %||37,9 %||42,0 %||37,0 %|
|Debt-to-equity ratio at the end of period||51,7 %||30,4 %||34,9 %|
|Equity per share at the end of period, EUR *||2,38||2,57||2,41|
|Investments in non-current assets||357||187||1 619|
|Investments in fixed assets, % of net sales||1,4 %||0,9 %||1,7 %|
|Treasury shares held by the Group at the end of period||90 000||66 829||99 036|
|Treasury shares, % of total share capital and votes||1,4 %||1,0 %||1,5 %|
|Number of total issued shares at the end of period||6607628||6607628||6607628|
|Personnel on average during the period||372||366||384|
|Personnel at the end of period||374||360||370|
* Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares
|QUARTERLY KEY FIGURES||I||IV||III||II||I|
|Net sales||25 242||27 073||20 435||24 016||21 584|
|Profit/Loss before taxes||-93||794||-327||-200||-43|
|Net profit/loss for the period||-180||308||-557||-134||-240|
|Earnings per share, EUR (diluted = non-diluted)||-0,03||0,05||-0,09||-0,02||-0,04|
|RELATED PARTY TRANSACTIONS||I||I||I-IV|
|Sales to related parties||73||21||93|
|Purchases from related parties||7||1||114|
|Loan receivables from related parties||0||569||566|
|Loan payables to related parties||0||492||492|
|COMMITMENTS||March 31||March 31||Dec 31|
|Mortgages and guarantees on own behalf|
|Business mortgage for the Group’s loan liabilities||7 350||7 350||7 350|
|Real estate pledge for the Group’s loan liabilities||900||900||900|
|Subsidiary shares pledged as security for group companies’ liabilities||3 284||3 634||3 284|
|Other listed shares pledged as security for group companies’ liabilities||301||277||289|
|Current receivables pledged as security for group companies’ liabilities||255||0||255|
|Pledges and guarantees given for the group companies’ off-balance sheet commitments||220||226||221|
|Guarantees given on behalf of third parties||236||280||236|
|Minimum future operating lease payments||6 685||6 744||6 820|
Accounting principles applied in the condensed consolidated financial statements
These condensed consolidated financial statements are unaudited. This report has been prepared in accordance with IAS 34 following the valuation and accounting methods guided by IFRS principles. The accounting principles used in the preparation of this report are consistent with those described in the Annual Report 2010 taking into account also the new, revised and amended standards and interpretations. Income tax is the amount corresponding to the actual effective rate based on year-to-date actual tax calculation. Adopting the amendments in IAS 24, IAS 32, IFRIC 14 and IFRIC 19 did not have a material impact on the information presented in this report.
The IFRS principles require the management to make estimates and assumptions when preparing financial statements. Although these estimates and assumptions are based on the management’s best knowledge of today, the final outcome may differ from the estimated values presented in the financial statements.
The TyEL pension premium loans withdrawn in summer 2009 have a bank guarantee, the margin of which is linked to the covenants regarding the equity ratio and the interest-bearing debt/EBITDA ratio. The equity ratio shall be 35 % at minimum in the end of each year. On December 31, 2010 the equity ratio was 37.0 % (December 31, 2009: 41.7 %). On December 31, 2010, the interest-bearing debt/EBITDA ratio requirement of 3.5 was not reached and accordingly, the Group paid a one-off minor compensation to the bank which then does not have other requirements.
The Group has no knowledge of any significant events after the end of the financial period that would have had a material impact on this report in any other way that has been already discussed in the review by the Board of Directors.
In Vantaa on May 5, 2011
WULFF GROUP PLC
BOARD OF DIRECTORS
CEO Heikki Vienola
tel. +358 9 5259 0050 or mobile: +358 50 65 110
NASDAQ OMX Helsinki Oy