ITELLA CORPORATION STOCK EXCHANGE RELEASE JULY 28, 2010, AT 10:00 AM
Itella Interim Report for January-June 2010
January-June 2010
* The Itella Group's net sales in the first half of 2010 totaled EUR 904.6
million (EUR 916.2 million in January-June 2009). International operations
accounted for 31% (30%) of net sales. Itella Information and Itella Logistics
increased their net sales, while Itella Mail Communication saw its net sales
decline.
* Operating profit was EUR 12.1 million (EUR 27.7 million), representing 1.3%
(3.0%) of net sales. Financial performance was taxed by restructuring costs of
EUR 13.8 million (EUR 6.1 million). Profitability weakened considerably in
Itella Mail Communication and slightly in Itella Information. Itella Logistics
was able to decrease its loss.
* Mail delivery volumes followed the trend seen in other industrialized
countries. The volume of addressed mail decreased by 1% year-on-year. The
delivery volumes of newspapers and magazines fell by 2% and 8%, respectively.
Parcel delivery volumes dropped by 4%.
* The average personnel reduction compared with the corresponding period in
2009 was 1,050 in Finland and 650 in other countries.
April-June 2010
* The Itella Group recorded net sales of EUR 450.6 million in April-June (EUR
438.6 million).
* Operating profit was EUR -6.3 million (EUR 7.8 million), including EUR 14.5
million (EUR 4.4 million) of restructuring costs.
--------------------------------------------------------------------------------
| Key figures of Itella Group | 1-6 / 2010 | 1-6 / 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales, MEUR | 904.6 | 916.2 | 1,819.7 |
--------------------------------------------------------------------------------
| Operating profit (EBIT), MEUR | 12.1 | 27.7 | 46.7 |
--------------------------------------------------------------------------------
| EBIT margin, % | 1.3 | 3.0 | 2.6 |
--------------------------------------------------------------------------------
| Operating profit (EBIT), MEUR *) | 25.9 | 33.8 | 86.3 |
--------------------------------------------------------------------------------
| EBIT margin, % *) | 2.9 | 3.7 | 4.7 |
--------------------------------------------------------------------------------
| Profit before tax, MEUR | 11.5 | 3.1 | 19.6 |
--------------------------------------------------------------------------------
| Return on equity (12 months), % | -0.2 | -2.2 | -0.7 |
--------------------------------------------------------------------------------
| Return on investment (12 months), | 4.7 | 9.4 | 5.8 |
| % | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 50.3 | 50.9 | 48.5 |
--------------------------------------------------------------------------------
| Gearing, % | 21.8 | 19.7 | 19.7 |
--------------------------------------------------------------------------------
| Gross capital expenditure, MEUR | 43.4 | 64.8 | 144.9 |
--------------------------------------------------------------------------------
| Personnel on average | 28,982 | 30,683 | 30,217 |
--------------------------------------------------------------------------------
| * Excl. non-recurring items | | | |
--------------------------------------------------------------------------------
Jukka Alho, President and CEO:
"Itella's net sales do not yet suggest any clear changes in the economic
conditions. Logistics are the most sensitive barometer in this respect; the
result for the period indicates that the economic outlook is slowly improving.
Recently the market has picked up in international freight and Russian
warehouse logistics, for instance.
In Finland we are reaching a situation where the financial recession is leading
to accelerated digitization of postal mail. Thus, we will have to adapt to
decreasing delivery volumes in the next few years. This naturally involves a
need for personnel reductions over a longer period of time.
The profitability of Finnish postal services has been continually declining and
is no longer satisfactory. Despite this, regulatory supervision in Finland is
further hampering the profitability of postal services. In other countries and
other fields of business that face similar problems efforts are being made to
improve the operating conditions. This is particularly the case when citizens'
core services are at stake. A more challenging operating environment will
increase the pressure to reduce personnel, and it will be especially difficult
to provide postal services for
sparsely populated areas."
APPENDICES
Itella's full Interim Report
FURTHER INFORMATION
Tuija Soanjärvi, CFO, tel. +358 20 45 20907,
tuija.soanjarvi@itella.com
DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
www.itella.com/financials
FINANCIAL CALENDER 2010
Interim Report for January-September on Wednesday, October 27
PHOTOGRAPS AND LOGOS
www.itella.com/media
Itella Group provides solutions for managing information and product flows.
Itella operates in mail communication, information logistics and logistics in
northern and central Europe, and in Russia. Net sales in 2009 amounted to EUR
1,820 million. Corporate services are delivered under the Itella brand, while
the Posti brand is used for services targeted at consumers in Finland. More
information is available online at www.itella.com/group.
Itella Corporation
Interim Report for January-June 2010
Market situation and business environment
Expectations regarding economic developments have become more optimistic during
the reporting period. Among the business segments, Itella Logistics is the most
susceptible to economic trends. Thus, the revival of international trade began
to be seen in the demand for logistics services in Itella's operating areas. In
Itella Information and Itella Mail Communication, demand varies depending on
the product line and country.
Mail deliveries were not affected by the economic upturn; it is possible that
the recession has accelerated digitization of communication. The new Postal
Services Act will enter into force in 2011. This will probably affect the
competitive arena and customers' decision-making in the near future.
Profit performance and net sales in April-June 2010
The Itella Group recorded net sales of EUR 450.6 million in April-June (EUR
438.6 million). Operating profit before non-recurring items amounted to EUR 8.3
million (EUR 12.2 million), representing 1.8% (2.8%) of net sales. The Group's
operating profit including non-recurring items was EUR -6.3 million (EUR 7.8
million), or -1.4% (1.8%) of net sales. Operating profit was taxed by
restructuring costs of EUR 14.5 million (EUR 4.4 million). Profit before taxes
was EUR -5.6 million (EUR 11.2 million).
Profit performance and net sales in January-June 2010
The Itella Group's net sales in the first half of 2010 totaled EUR 904.6
million (EUR 916.2 million in January-June 2009), down by 1.3%. In local
currencies, the decline in net sales was 2.9%. Acquisitions had no impact on
net sales performance. Itella Information and Itella Logistics increased their
net sales, while Itella Mail Communication saw its net sales decline. In
Finland, net sales were down by 3.1%. In other countries of operation, total
net sales increased, mainly because of exchange rate effects. International
operations accounted for 31% (30%) of net sales.
In January-June, consolidated operating profit before non-recurring items
decreased by 23.6% to EUR 25.9 million (EUR 33.8 million), representing 2.9%
(3.7%) of net sales. Operating profit including non-recurring items fell by
56.5% to EUR 12.1 million (EUR 27.7 million), representing 1.3% (3.0%) of net
sales. Operating profit decreased considerably in Itella Mail Communication and
slightly in Itella Information. Itella Logistics was able to clearly decrease
its operating loss from the previous year. In other operations, operating
profit decreased, because expenses common to the businesses are now allocated
more evenly across the calendar year than in 2009. Financial performance was
taxed by restructuring costs of EUR 13.8 million (EUR 6.1 million).
The Group's net financing costs were EUR 0.6 million (EUR 24.6 million). In
2009, net financing costs were increased by hedging costs of ruble receivables,
as well as the considerable exchange rate losses generated by the weakening of
the Russian ruble. Consolidated profit after financial items was EUR 11.5
million (EUR 3.1 million). Income tax totaled EUR 10.7 million (EUR 5.9
million). The Group's effective tax rate, which was affected by losses from
international operations, was 97.0% (190.3%). The Group recorded a net profit
of EUR 0.8 million for the period (net loss of EUR 2.8 million).
Return on equity (rolling 12 months) was -0.2% (-2.2%).
Itella Mail Communication
Itella Mail Communication recorded net sales of EUR 565.9 million in
January-June (EUR 587.0 million), showing a decrease of 3.6%.
In January-June, business volumes developed as follows compared with the
corresponding period in 2009:
* Deliveries of both first- and second-class letters fell slightly. Addressed
direct marketing volumes decreased by 2%. In total, addressed letter deliveries
fell by 1 percent.
* Newspaper delivery volumes dropped by 2% and magazine delivery volumes by 8%.
* Non-addressed direct marketing volumes continued to grow.
* Parcel delivery volumes fell by 4%.
Itella Mail Communication posted an operating profit of EUR 22.0 million (EUR
42.6 million), representing 3.9% (7.3%) of net sales. The result included EUR
13.6 million (EUR 4.0 million) of restructuring costs. Moreover, profitability
weakened because of the decreased net sales, particularly in important key
products. The positive productivity development could not fully compensate for
the fall.
The mail sorting and delivery modernization moved ahead as planned with about
90% of investments completed. All real estate investments have been completed,
and nearly all sorting systems and other equipment have been implemented; the
elements to improve automation and, consequently, productivity in service
production are in place. Continuing decrease of delivery volumes will require
further efficiency enhancement measures, which will reduce the need for
personnel.
Itella Information
Itella Information's net sales rose to EUR 131.7 million (EUR 126.6 million),
up by 4.0%. Net sales increased in all product lines and countries of
operation, except Germany, Estonia and Lithuania.
The business group posted an operating profit of EUR 7.4 million (EUR 8.4
million), representing 5.6% of net sales (6.6%). The efficiency of product
lines and companies has been enhanced using various measures to compensate for
the effects of price erosion and volume reductions on profitability. Further
measures to improve efficiency will still be necessary, particularly outside
the Nordic countries.
Itella Logistics
In the first half of 2010, Itella Logistics recorded net sales of EUR 322.8
million (EUR 319.3 million). Net sales increased by 1.1%. As regards product
lines, net sales in international road freight fell but increased in
international sea & air freight and service warehousing. In the countries of
operation, net sales improved in Russia, the Baltic countries, and Norway and
declined in Finland and Denmark. In Sweden, net sales remained stable.
Itella Logistics recorded a loss of EUR 8.6 million (EUR -17.9 million),
representing -2.7% (-5.6%) of net sales. Thanks to the many measures to enhance
efficiency, operating profit improved in all product lines and countries except
Sweden.
Logistics volumes remained low in all eight countries, despite a more promising
economic outlook. In the second quarter, however, positive signs could be seen,
and Itella's logistics volumes began to grow, particularly in sea and air
freight. In contract logistics, Itella signed customer agreements that will
affect the result in the second half of the year. Once economic growth picks up
in the countries of operation, increased demand by corporate customers and
consumers will be crucial for Itella Logistics' performance.
Financial position and capital expenditure
Consolidated net cash flow from operating activities before investment
activities totaled EUR 19.8 million (EUR 39.9 million). Net cash flow declined
by EUR 22.1 million from the previous year, because the personnel in Finland
received their vacation pay in June, which is a month earlier than 2009.
Capital expenditure amounted to EUR 43.4 million (EUR 64.8 million). No
acquisitions were made in the first half of the year.
At the end of June, liquid assets stood at EUR 144.0 million (EUR 94.5
million), and undrawn committed credit facilities totaled EUR 200.0 million
(EUR 175.0 million). Commercial papers issued amounted to EUR 38.0 million. The
Group's interest-bearing liabilities were EUR 300.3 million (EUR 227.2
million). The equity ratio stood at 50.3% (50.9%) and gearing was 21.8%
(19.7%).
Personnel
In January-June, the Itella Group employed an average of 28,982 (30,683)
people. At the end of the period, the number of personnel was 30,585 (31,627)
with 23,911 (24,607) employees based in Finland. The average personnel
reduction compared with the corresponding period in 2009 was 1,050 in Finland
and 650 in other countries.
At the end of the period, the Group employed personnel by segment as follows:
Itella Mail Communication 20,671, Itella Information 1,926, Itella Logistics
7,946 and other Group functions 42.
The Group's personnel costs decreased by EUR 2.4 million during the period,
down by 0.5% year-on-year. Excluding the cost provision for restructuring
arrangements, personnel expenses fell by EUR 10.1 million, equaling to 2.3%.
Changes in corporate structure
Itella's legal structure did not change during the period.
Preparations to renew the legal structure of Finnish operations continued as
planned. The operational structure was already renewed at the beginning of the
second quarter. This involved transferring parcel services from Itella
Logistics and domestic sales operations, postal outlets and customer service
from Group functions to Itella Mail Communication. The change affected the
content of reported segments. In this interim report, the realized and
reference figures have been converted to correspond to the new structure.
Short-term business risks and uncertainties
Itella's risk management policy and business-related risks are described in
more detail in the Annual Report and Financial Statements for 2009 and on
Itella's website (www.itella.fi/corporategovernance). These risks have not
changed substantially this year.
The general economic climate in Itella's operating area further increases
business risks and uncertainties. Country- and sector-specific differences in
economic recovery can be seen in the demand for Itella's services and,
consequently, the predictability of net sales. This complicates decision-making
concerning the size of Itella's own production resources. In order to ensure
profitability, adjustment of costs and management of working capital items are
still emphasized.
The economic conditions have contributed to the difficulties in estimating the
effects of increased electronic communication on mail delivery volumes. Because
of the universal service obligation, costs of the postal network decrease more
slowly than delivery volumes. Lower volumes reduce the need for personnel,
which may cause significant restructuring costs that will burden the result and
cash flow.
From Itella's point of view, regulatory supervision of postal services involves
risk-augmenting features, because the regulatory supervision of cost accounting
and product profitability is not swift enough in responding to changes in
business.
The effects of the new Postal Services Act on the competitive situation may be
seen in the decisions of Itella's customers in the latter half of the year.
Seasonal fluctuation
Seasonal fluctuation is characteristic of the Group's business operations. Net
sales and operating profit in the business segments are not accrued evenly over
the year. The first and fourth quarters are typically strong, while the second
and third quarters are weaker.
Events after the reporting period
Itella Corporation acquired the parcel business of SmartPOST OÜ, based in
Estonia. It is now part of Itella Mail Communication. The acquisition will not
have a material impact on Itella's financial figures.
In July, Itella Corporation signed a EUR 120 million syndicated credit facility
with a bank group consisting of four Nordic banks. The credit facility is
intended for general financing purposes. Its duration is five years and it
replaces a former credit facility signed in 2006.
Outlook for the rest of the year
It is predicted that economic conditions will improve. Revival of economic
growth is particularly critical for Itella Logistics' net sales and
profitability. In Itella Mail Communication, a change in the economic climate
may not have a similar effect on mail delivery services, as electronic
substitution may be accelerating as a result of the recession. On the other
hand, efficiency-improvement demands may support customers' interest in
Itella's outsourcing solutions. Changes in the competitive environment are
expected after the introduction of the new postal legislation.
The dissimilar views of Itella and the Finnish Communications Regulatory Agency
concerning the definition of universal postal service products and the
allocation of costs of the shared delivery network to product prices has some
impact on the development of Itella's net sales and profitability.
Enhancement of productivity and efficiency will continue in order to ensure
profitability while mail volumes are declining. Fixed personnel expenses
constitute a major item in Itella's business. As the volumes are declining,
personnel reductions can sometimes considerably burden the result and cash
flow.
Capital expenditure in 2010 will be lower than in previous years. The timing
and volume of new investments will be considered carefully.
APPENDICES
Key figures of Itella Group
Comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Statement of changes in shareholders' equity
Notes:
- Accounting principles
- Segment information
- Net sales by geographical area
- Changes in property, plant and equipment
- The Group's contingent liabilities
- Related party transactions
--------------------------------------------------------------------------------
| Key figures of Itella | | | | | |
| Group | | | | | |
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 |
--------------------------------------------------------------------------------
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales, MEUR | 450.6 | 438.6 | 904.6 | 916.2 | 1,819.7 |
--------------------------------------------------------------------------------
| Operating profit (EBIT), | -6.3 | 7.8 | 12.1 | 27.7 | 46.7 |
| MEUR | | | | | |
--------------------------------------------------------------------------------
| EBIT margin, % | -1.4 | 1.8 | 1.3 | 3.0 | 2.6 |
--------------------------------------------------------------------------------
| Operating profit (EBIT), | 8.3 | 12.2 | 25.9 | 33.8 | 86.3 |
| MEUR *) | | | | | |
--------------------------------------------------------------------------------
| EBIT margin, % *) | 1.8 | 2.8 | 2.9 | 3.7 | 4.7 |
--------------------------------------------------------------------------------
| Profit before tax, MEUR | -5.6 | 11.2 | 11.5 | 3.1 | 19.6 |
--------------------------------------------------------------------------------
| Return on equity (12 | | | -0.2 | -2.2 | -0.7 |
| months), % | | | | | |
--------------------------------------------------------------------------------
| Return on investment (12 months), | | 4.7 | 9.4 | 5.8 |
| % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | | | 50.3 | 50.9 | 48.5 |
--------------------------------------------------------------------------------
| Gearing, % | | | 21.8 | 19.7 | 19.7 |
--------------------------------------------------------------------------------
| Gross capital | 24.6 | 28.9 | 43.4 | 64.8 | 144.9 |
| expenditure, MEUR | | | | | |
--------------------------------------------------------------------------------
| Personnel on average | 29,154 | 30,994 | 28,982 | 30,683 | 30,217 |
--------------------------------------------------------------------------------
| *) Excl. non-recurring items, see | | | | |
| notes 2 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive Consolidated Income Statement | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 |
--------------------------------------------------------------------------------
| EUR million | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net sales | 450.6 | 438. | 904.6 | 916.2 | 1,819.7 |
| | | 6 | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 2.5 | 5.6 | 6.8 | 8.6 | 14.3 |
--------------------------------------------------------------------------------
| Share of associated companies' | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 |
| results | | | | | |
--------------------------------------------------------------------------------
| Materials and services | 120.7 | 117. | 238.8 | 243.1 | 474.9 |
| | | 6 | | | |
--------------------------------------------------------------------------------
| Employee benefits | 229.3 | 218. | 447.7 | 450.1 | 888.0 |
| | | 7 | | | |
--------------------------------------------------------------------------------
| Depreciation and amortisation | 21.6 | 19.2 | 42.6 | 38.1 | 77.8 |
--------------------------------------------------------------------------------
| Impairment losses | | | | | 13.5 |
--------------------------------------------------------------------------------
| Other operating expenses | 87.9 | 80.9 | 170.3 | 165.8 | 333.2 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit (EBIT) | -6.3 | 7.8 | 12.1 | 27.7 | 46.7 |
--------------------------------------------------------------------------------
| % of net sales | -1.4 | 1.8 | 1.3 % | 3.0 % | 2.6 % |
| | % | % | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial income and expenses | 0.6 | 3.4 | -0.6 | -24.6 | -27.1 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit/loss before income tax | -5.6 | 11.2 | 11.5 | 3.1 | 19.6 |
--------------------------------------------------------------------------------
| % of net sales | -1.2 | 2.6 | 1.3 % | 0.3 % | 1.1 % |
| | % | % | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Income tax | -1.9 | -3.2 | -10.7 | -5.9 | -24.2 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for the financial | -7.5 | 8.0 | 0.8 | -2.8 | -4.6 |
| period | | | | | |
--------------------------------------------------------------------------------
| % of net sales | -1.7 | 1.8 | 0.1 % | -0.3 % | -0.3 % |
| | % | % | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Other items of comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Available-for-sale financial | 0.1 | -0.4 | 0.1 | -0.4 | -0.3 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Translation differences | 13.0 | -1.2 | 38.3 | -8.9 | -4.3 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Comprehensive income, total | 5.6 | 6.4 | 39.2 | -12.1 | -9.2 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit for the financial period | | | | |
| attributable to | | | | |
--------------------------------------------------------------------------------
| Parent company shareholders | -7.6 | 7.7 | 0.7 | -2.6 | -4.6 |
--------------------------------------------------------------------------------
| Non-controlling intrest | 0.1 | 0.3 | 0.1 | -0.2 | 0.0 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Comprehensive income | | | | | |
| attributable to | | | | | |
--------------------------------------------------------------------------------
| Parent company shareholders | 5.5 | 6.1 | 39.1 | -11.9 | -9.2 |
--------------------------------------------------------------------------------
| Non-controlling intrest | 0.1 | 0.3 | 0.1 | -0.2 | 0.0 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated Balance Sheet | | | | |
--------------------------------------------------------------------------------
| | 30 June | 30 June | 31 Dec | |
--------------------------------------------------------------------------------
| EUR million | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | 167.0 | 172.9 | 165.2 | |
--------------------------------------------------------------------------------
| Other intangible assets | 77.6 | 78.8 | 80.1 | |
--------------------------------------------------------------------------------
| Investment property | 4.2 | 4.5 | 4.4 | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 724.9 | 670.6 | 688.3 | |
--------------------------------------------------------------------------------
| Investments in associated | 0.6 | 1.4 | 0.6 | |
| companies | | | | |
--------------------------------------------------------------------------------
| Other non-current investments | 1.9 | 0.6 | 2.4 | |
--------------------------------------------------------------------------------
| Non-current receivables | 7.5 | 6.3 | 8.4 | |
--------------------------------------------------------------------------------
| Deferred tax assets | 15.4 | 14.9 | 12.7 | |
--------------------------------------------------------------------------------
| Total non-current assets | 999.2 | 950.0 | 962.1 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 6.1 | 6.7 | 6.5 | |
--------------------------------------------------------------------------------
| Trade and other receivables | 284.1 | 262.6 | 271.9 | |
--------------------------------------------------------------------------------
| Current tax assets | 9.5 | 14.1 | 4.0 | |
--------------------------------------------------------------------------------
| Financial assets | 2.5 | 2.5 | 2.4 | |
| available-for-sale | | | | |
--------------------------------------------------------------------------------
| Financial assets at fair value | 62.8 | 45.4 | 78.9 | |
| through profit or loss *) | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents *) | 81.2 | 49.1 | 82.3 | |
--------------------------------------------------------------------------------
| Total current assets | 446.3 | 380.4 | 446.0 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total assets | 1,445.5 | 1,330.4 | 1,408.1 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 70.0 | 70.0 | 70.0 | |
--------------------------------------------------------------------------------
| Contingency reserve | 142.7 | 142.7 | 142.7 | |
--------------------------------------------------------------------------------
| Fair value reserve | 0.1 | -0.1 | 0.0 | |
--------------------------------------------------------------------------------
| Translation differences | 17.6 | -25.3 | -20.7 | |
--------------------------------------------------------------------------------
| Retained earnings | 484.4 | 485.6 | 483.6 | |
--------------------------------------------------------------------------------
| Equity attributable to equity | | | |
| holders of the parent company | 714.7 | 672.9 | 675.6 | |
--------------------------------------------------------------------------------
| Non-controlling intrest | 1.8 | 1.4 | 1.6 | |
--------------------------------------------------------------------------------
| Total equity | 716.6 | 674.3 | 677.2 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 51.3 | 46.7 | 48.3 | |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 229.3 | 113.3 | 246.1 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Other non-current liabilities | 15.7 | 34.9 | 15.1 | |
--------------------------------------------------------------------------------
| Non-current provisions | 15.8 | 0.3 | 9.2 | |
--------------------------------------------------------------------------------
| Defined benefit pension plan | 6.5 | 7.1 | 6.5 | |
| obligations | | | | |
--------------------------------------------------------------------------------
| Total non-current liabilities | 318.5 | 202.3 | 325.2 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | 71.1 | 113.9 | 48.0 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade payables and other | 321.3 | 329.4 | 335.1 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Current tax liabilities | 4.0 | 4.2 | 9.0 | |
--------------------------------------------------------------------------------
| Current provisions | 14.1 | 6.3 | 13.6 | |
--------------------------------------------------------------------------------
| Total current liabilities | 410.4 | 453.8 | 405.7 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 728.9 | 656.1 | 730.9 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total equity and liabilities | 1,445.5 | 1,330.4 | 1,408.1 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 300.3 | 227.2 | 294.1 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| *) Items classified under the Group's cash and cash equivalents have | |
| a maximum maturity of three months from the time of acquisition. | |
| Data for the comparison year have been adjusted to match this | |
| definition. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated Cash Flow Statement | | | |
--------------------------------------------------------------------------------
| | 1-6 | 1-6 | 1-12 |
--------------------------------------------------------------------------------
| EUR million | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Result before tax | 11.5 | 3.1 | 19.6 |
--------------------------------------------------------------------------------
| Total adjustments | 42.7 | 63.4 | 120.2 |
--------------------------------------------------------------------------------
| Change in net working capital | -10.4 | 4.1 | 16.8 |
--------------------------------------------------------------------------------
| Cash flow before financial items and income | 43.8 | 70.6 | 156.6 |
| tax | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Financial items (net) | 0.8 | -15.3 | -29.0 |
--------------------------------------------------------------------------------
| Tax paid | -24.8 | -15.4 | -16.9 |
--------------------------------------------------------------------------------
| Cash flow from operating activities (net) | 19.8 | 39.9 | 110.7 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries less cash and | -0.1 | 0.0 | -22.8 |
| cash equivalents | | | |
--------------------------------------------------------------------------------
| Purchase of intangible assets and property, | -43.4 | -64.6 | -121.7 |
| plant and equipment | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of intangible and | 1.5 | 1.7 | 2.2 |
| tangible assets | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of subsidiaries and | - | 0.4 | 1.4 |
| businesses | | | |
--------------------------------------------------------------------------------
| Change in financial assets at fair value | 15.3 | 35.0 | 5.4 |
| through profit or loss *) | | | |
--------------------------------------------------------------------------------
| Cash flow from other investments | 0.0 | 0.2 | -2.2 |
--------------------------------------------------------------------------------
| Cash flow from investing activities (net) | -26.7 | -27.3 | -137.7 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Change in loans (net) | 11.2 | -3.0 | 71.8 |
--------------------------------------------------------------------------------
| Finance lease principal payments | -4.1 | -5.7 | -9.9 |
--------------------------------------------------------------------------------
| Dividends paid | - | -10.0 | -10.0 |
--------------------------------------------------------------------------------
| Cash flow from financing activities (net) | 7.1 | -18.7 | 51.9 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | 0.3 | -6.1 | 24.9 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at period-start *) | 82.3 | 49.5 | 49.5 |
--------------------------------------------------------------------------------
| Effect of changes in exchange rates | -1.3 | 5.7 | 7.9 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at period-end *) | 81.2 | 49.1 | 82.3 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| *) Items classified under the Group's cash and cash equivalents have a |
| maximum maturity |
--------------------------------------------------------------------------------
| of three months from the time of acquisition. Data for the comparison year |
| have been |
--------------------------------------------------------------------------------
| adjusted to match this definition. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Statement of changes in | | | | | | |
| shareholders' equity | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| EUR million | Equity attributable to equity holders | | | |
| | of the parent company | | | |
--------------------------------------------------------------------------------
| | Share | Conti | Fair | Trans | Retai | Tota | Non-c | Total |
| | capit | ngenc | value | latio | ned | l | ontro | equity |
| | al | y | reser | n | earni | | lling | |
| | | reser | ve | diffe | ngs | | intre | |
| | | ve | | rence | | | st | |
| | | | | s | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity 1 Jan | 70.0 | 142.7 | 0.3 | -16.4 | 498.2 | 694. | 1.5 | 696.3 |
| 2009 | | | | | | 8 | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -10.0 | -10. | | -10.0 |
| paid | | | | | | 0 | | |
--------------------------------------------------------------------------------
| Other | | | | | | | 0.1 | 0.1 |
| changes | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | -2.6 | -2.6 | -0.2 | -2.8 |
| the | | | | | | | | |
| financial | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | -0.4 | | | -0.4 | | -0.4 |
| fair value | | | | | | | | |
| reserve | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | -8.9 | | -8.9 | | -8.9 |
| translation | | | | | | | |
| differences | | | | | | | |
--------------------------------------------------------------------------------
| Equity 30 | 70.0 | 142.7 | -0.1 | -25.3 | 485.6 | 672. | 1.4 | 674.3 |
| June 2009 | | | | | | 9 | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity 1 Jan | 70.0 | 142.7 | 0.0 | -20.7 | 483.6 | 675. | 1.6 | 677.2 |
| 2010 | | | | | | 6 | | |
--------------------------------------------------------------------------------
| Dividends | | | | | - | - | | - |
| paid | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | 0.7 | 0.7 | 0.1 | 0.8 |
| the | | | | | | | | |
| financial | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | 0.1 | | | 0.1 | | 0.1 |
| fair value | | | | | | | | |
| reserve | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | 38.3 | | 38.3 | | 38.3 |
| translation | | | | | | | |
| differences | | | | | | | |
--------------------------------------------------------------------------------
| Equity 30 | 70.0 | 142.7 | 0.1 | 17.6 | 484.4 | 714. | 1.8 | 716.6 |
| June 2010 | | | | | | 7 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOTES | | | | | | | | |
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| | | | | | | | | |
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| 1. Accounting principles | | | | | | | | |
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| The interim report was prepared in accordance with IAS 34 'Interim Financial |
| Reporting' and in line with the same accounting principles as those used in |
| Itella's financial statements for 2009. Itella has applied the currently |
| valid IFRS standards and interpretations in the preparation of this interim |
| report. The figures shown have been rounded, which is why the sum total of |
| individual figures may differ from that shown here. |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| New and revised IFRS | | | | | | | | |
| standards | | | | | | | | |
--------------------------------------------------------------------------------
| As of January 1, 2010 the Group applies | | | | | |
| the following revised standards: | | | | | |
--------------------------------------------------------------------------------
| - IFRS 3 Business | | | | | | | | |
| Combinations | | | | | | | | |
--------------------------------------------------------------------------------
| - IAS 27 Consolidated and | | | | | | |
| Separate Financial Statements | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| These new and revised standards have no material impact on the data | |
| disclosed in the financial statements bulletin. | |
--------------------------------------------------------------------------------
| Information in this interim report is | | | | | |
| unaudited. | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| 2. Segment Information | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| The following changes in Itella Group's business operations took effect | |
| on April 1, 2010: Domestic sales operations, mail and customer | |
| service from Other operations and Itella Logistics' parcel services | |
| were transferred to Itella Mail Communication. This change will improve | |
| the financial transparency of operations in anticipation of the postal | |
| operations legislative reform at the beginning of next year. | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| In addition, following the reorganization of the parent company's legal |
| structure to be implemented on January 1, 2011, the freight service |
| transactions previously handled as internal cost allocation between business |
| operations will now be recorded as net sales charged by one Group company to |
| another. This change will result in an increase in intra-Group net sales and |
| eliminations. |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| The Group's internal reporting has been changed to reflect the changes |
| referred to above, and the segment division in external accounting will be |
| presented in line with the revised structure. |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| In addition to the structural changes described above, a larger proportion |
| of the Group's non-allocated assets and liabilities has been allocated to |
| segments as of May 1, 2010, based on their actual use. |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Group's segment information is presented according to the new |
| structure and the new allocation principles.The reorganization of the legal |
| structure has also been proactively accounted for in the actual and |
| comparison periods. |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| | | | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 | |
--------------------------------------------------------------------------------
| EUR million | | | 2010 | 200 | 2010 | 2009 | 2009 | |
| | | | | 9 | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Net sales by business | | | | | | | | |
| segment | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | 280. | 284 | 565.9 | 587. | 1,168.1 | |
| Communication | | | 8 | .9 | | 0 | | |
--------------------------------------------------------------------------------
| inter-segment sales | | | 10.9 | 11. | 21.5 | 21.5 | 41.4 | |
| | | | | 3 | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | 63.4 | 58. | 131.7 | 126. | 247.2 | |
| | | | | 6 | | 6 | | |
--------------------------------------------------------------------------------
| inter-segment sales | | | 2.8 | 2.7 | 5.5 | 5.5 | 11.3 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | 166. | 153 | 322.8 | 319. | 637.3 | |
| | | | 4 | .9 | | 3 | | |
--------------------------------------------------------------------------------
| inter-segment sales | | | 46.9 | 44. | 89.9 | 89.6 | 180.3 | |
| | | | | 4 | | | | |
--------------------------------------------------------------------------------
| Other operations | | | 3.1 | 0.9 | 5.6 | 2.4 | 6.2 | |
--------------------------------------------------------------------------------
| inter-segment sales | | | 2.4 | 1.3 | 4.3 | 2.4 | 6.2 | |
--------------------------------------------------------------------------------
| Eliminations (Interim | | | -63. | -59 | -121.3 | -119 | -239.1 | |
| sales) | | | 1 | .7 | | .1 | | |
--------------------------------------------------------------------------------
| Total | | | 450. | 438 | 904.6 | 916. | 1,819.7 | |
| | | | 6 | .6 | | 2 | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| | | | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 | |
--------------------------------------------------------------------------------
| EUR million | | | 2010 | 200 | 2010 | 2009 | 2009 | |
| | | | | 9 | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Operating profit/loss | | | | | | | | |
| (EBIT) by business | | | | | | | | |
| segment | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | -1.3 | 12. | 22.0 | 42.6 | 86.0 | |
| Communication | | | | 9 | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | 1.7 | 3.2 | 7.4 | 8.4 | 15.3 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | -2.0 | -9. | -8.6 | -17. | -35.2 | |
| | | | | 9 | | 9 | | |
--------------------------------------------------------------------------------
| Other operations | | | -4.7 | 1.6 | -8.7 | -5.3 | -19.4 | |
--------------------------------------------------------------------------------
| Total | | | -6.3 | 7.8 | 12.1 | 27.7 | 46.7 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items by | | | | | | | | |
| business segment | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | 13.7 | 3.5 | 13.6 | 4.0 | 21.1 | |
| Communication | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | 0.0 | 0.0 | 0.0 | 0.6 | 1.5 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | 0.1 | 0.7 | 0.1 | 1.1 | 16.8 | *) |
--------------------------------------------------------------------------------
| Other operations | | | 0.7 | 0.2 | 0.1 | 0.4 | 0.2 | |
--------------------------------------------------------------------------------
| Total | | | 14.5 | 4.4 | 13.8 | 6.1 | 39.6 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Operating profit/loss (EBIT) by | | | | | |
| business segment excluding | | | | | |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | 12.4 | 16. | 35.5 | 46.6 | 107.1 | |
| Communication | | | | 4 | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | 1.7 | 3.2 | 7.4 | 9.0 | 16.8 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | -1.9 | -9. | -8.5 | -16. | -18.4 | |
| | | | | 2 | | 8 | | |
--------------------------------------------------------------------------------
| Other operations | | | -4.0 | 1.8 | -8.6 | -4.9 | -19.2 | |
--------------------------------------------------------------------------------
| Total | | | 8.3 | 12. | 25.9 | 33.8 | 86.3 | |
| | | | | 2 | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Financial income and | | | 0.6 | 3.4 | -0.6 | -24. | -27.1 | |
| expenses | | | | | | 6 | | |
--------------------------------------------------------------------------------
| Result before income | | | -5.6 | 11. | 11.5 | 3.1 | 19.6 | |
| tax | | | | 2 | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| EUR million | | | | | 30 June| | 31 Dec | |
| | | | | | 2010 | | 2009 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Assets | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | | | 456.4 | | 450.0 | |
| Communication | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | | | 163.7 | | 157.8 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | | | 648.7 | | 624.4 | |
--------------------------------------------------------------------------------
| Other operations and | | | | | 184.3 | | 183.3 | |
| unallocated | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | | | | | -7.7 | | -7.4 | |
--------------------------------------------------------------------------------
| Total | | | | | 1,445. | | 1,408.1 | |
| | | | | | 5 | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Liabilities | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | | | 221.7 | | 227.9 | |
| Communication | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | | | 38.1 | | 36.5 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | | | 104.7 | | 106.3 | |
--------------------------------------------------------------------------------
| Other operations and | | | | | 372.3 | | 367.5 | |
| unallocated | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | | | | | -7.9 | | -7.4 | |
--------------------------------------------------------------------------------
| Total | | | | | 728.9 | | 730.9 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at period-end | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | | | 20,671 | | 19,100 | |
| Communication | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | | | 1,926 | | 1,926 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | | | 7,946 | | 8,503 | |
--------------------------------------------------------------------------------
| Other operations | | | | | 42 | | 39 | |
--------------------------------------------------------------------------------
| Total | | | | | 30,585 | | 29,568 | |
--------------------------------------------------------------------------------
| *)The result for Itella Logistics 2009 includes EUR 6.2 million of | |
| restructuring costs and EUR 10.6 million of goodwill impairment. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3 | Net sales by | | | | | |
| . | geographical location | | | | | |
--------------------------------------------------------------------------------
| | | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 |
--------------------------------------------------------------------------------
| | EUR million | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Finland | 310.6 | 309.9 | 623.4 | 643.6 | 1,275.7 |
--------------------------------------------------------------------------------
| | Scandinavia | 64.5 | 62.4 | 128.9 | 122.1 | 263.4 |
--------------------------------------------------------------------------------
| | Baltic countries and | 45.7 | 37.8 | 90.1 | 81.5 | 170.6 |
| | Russia | | | | | |
--------------------------------------------------------------------------------
| | Other countries | 29.9 | 28.5 | 62.2 | 69.0 | 110.0 |
--------------------------------------------------------------------------------
| | Total | 450.6 | 438.6 | 904.6 | 916.2 | 1,819.7 |
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| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| 4 | Changes in property, plant and | | | | |
| . | equipment | | | | |
--------------------------------------------------------------------------------
| | EUR million | | | 30 June | 30 June | 31 Dec |
| | | | | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Carrying amount on 1 | | | 688.4 | 655.3 | 655.3 |
| | Jan | | | | | |
--------------------------------------------------------------------------------
| | Additions | | | 39.9 | 64.8 | 107.7 |
--------------------------------------------------------------------------------
| | Disposals and transfers between | | -1.0 | -7.9 | -2.2 |
| | items | | | | |
--------------------------------------------------------------------------------
| | Amortisation and Impairment for the | -32.0 | -28.3 | -61.4 |
| | financial period | | | |
--------------------------------------------------------------------------------
| | Translation | | | 29.6 | -13.3 | -11.0 |
| | differences | | | | | |
--------------------------------------------------------------------------------
| | Carrying amount at | | | 724.9 | 670.6 | 688.4 |
| | period-end | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| 5 | The Group's contingent | | | | | |
| . | liabilities | | | | | |
--------------------------------------------------------------------------------
| | EUR million | | | 30 June | 30 June | 31 Dec |
| | | | | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Pledges for own behalf | | | 18.1 | 7.6 | 14.6 |
--------------------------------------------------------------------------------
| | Lease commitments | | | 361.4 | 218.1 | 365.7 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Derivative contracts | | | | | |
--------------------------------------------------------------------------------
| | EUR million | | | 30 June | 30 June | 31 Dec |
| | | | | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Currency forward | | | | | |
| | contracts | | | | | |
--------------------------------------------------------------------------------
| | Fair value | | | 3.2 | -1.9 | -0.7 |
--------------------------------------------------------------------------------
| | Nominal value | | | 110.6 | 144.4 | 85.9 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Interest rate swaps | | | | | |
--------------------------------------------------------------------------------
| | Fair value | | | 3.4 | - | 0.2 |
--------------------------------------------------------------------------------
| | Nominal value | | | 70.0 | - | 70.0 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Derivative contracts were used to hedge against currency and interest |
| | rate risks. Currency forward contracts were measured at fair value by |
| | using the market prices on the closing day, |
--------------------------------------------------------------------------------
| | and the fair values of interest rate swaps are the present values of |
| | forecast future cash flows. |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| 6 | Related party | | | | | |
| . | transactions | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Related party transactions were insignificant and there have been no |
| | material changes since the financial year 2009. |
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itella_interim_report_q2_2010.pdf
