ITELLA CORPORATION STOCK EXCHANGE RELEASE OCTOBER 27, 2010, AT 10:00 A.M.
Itella Interim Report for January-September 2010
January-September 2010
- The Itella Group recorded net sales of EUR 1,332.7 million in
January-September (EUR 1,328.7 million in January-September 2009).
International operations accounted for 32% (29%) 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 16.5 million (EUR 22.1 million), representing 1.2%
(1.7%) of net sales. Financial performance was taxed by the non-recurring items
of EUR 15.5 million (EUR 24.8 million). Operating profit decreased in Itella
Mail Communication and Itella Information, while Itella Logistics was able to
decrease its operating loss considerably.
- Despite the economic upswing, letter volumes failed to return to normal.
Meanwhile parcel volumes are showing marked growth after the summer season.
- The Group's personnel costs decreased by EUR 5.5 million during the period,
down by 0.8% year-on-year. Excluding the cost provision for restructuring
arrangements, personnel expenses fell by EUR 6.8 million, or 1.1%.
- Itella Mail Communication acquired the Estonian SmartPOST company's
self-service parcel business. Itella Corporation acquired a non-controlling
interest in Itella Information AS from Norway Post.
- Preparations to renew the legal structure of Finnish operations proceeded as
planned: Postal services will transfer to the new subsidiary, Itella Posti Oy,
on January 1, 2011. Similarly, all real estate owned by Itella in Finland will
be transferred to a single company, Itella Real Estate Oy, at the turn of the
year.
July-September 2010
- The Itella Group recorded net sales of EUR 428.1 million in July-September
(EUR 412.5 million in July-September 2009).
- Towards the end of the quarter, logistics volumes both in Finland and
internationally showed marked growth. Parcel services offered for distance
selling also strengthened.
- Operating profit totaled EUR 4.4 million (EUR -5.6 million), representing
1.0% (-1.4%) of net sales.
- In August, Itella was forced to reduce its postage rates.
--------------------------------------------------------------------------------
| Key figures of Itella Group | 1-9/ 2010 | 1-9/ 2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Net sales, MEUR | 1,332.7 | 1,328.7 | 1,819.7 |
--------------------------------------------------------------------------------
| Operating profit (EBIT), MEUR | 16.5 | 22.1 | 46.7 |
--------------------------------------------------------------------------------
| EBIT margin, % | 1.2 | 1.7 | 2.6 |
--------------------------------------------------------------------------------
| Operating profit (EBIT), MEUR *) | 31.9 | 46.8 | 86.3 |
--------------------------------------------------------------------------------
| EBIT margin, % *) | 2.4 | 3.5 | 4.7 |
--------------------------------------------------------------------------------
| Profit before tax, MEUR | 14.0 | -2.6 | 19.6 |
--------------------------------------------------------------------------------
| Return on equity (12 months), % | 1.2 | -5.9 | -0.7 |
--------------------------------------------------------------------------------
| Return on investment (12 months), | 5.1 | 3.0 | 5.8 |
| % | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 49.7 | 49.6 | 48.5 |
--------------------------------------------------------------------------------
| Gearing, % | 26.0 | 26.7 | 19.7 |
--------------------------------------------------------------------------------
| Gross capital expenditure, MEUR | 64.0 | 94.7 | 144.9 |
--------------------------------------------------------------------------------
| Personnel on average | 29,009 | 30,447 | 30,217 |
--------------------------------------------------------------------------------
| * Excl. non-recurring items | | | |
--------------------------------------------------------------------------------
Jukka Alho, President and CEO:
"The economic upswing affected the demand for Itella's services relatively late,
but there was a very noticeable change in the third quarter. We have seen growth
especially in domestic parcel services and in logistics volumes across the
board. Our business in Russia is also experiencing similar positive development.
Itella Information has continued to perform consistently.
In Itella Mail Communication, the demand for postal services and profitability
continue to face tremendous pressure. Our price level has not followed the
general cost trend, partly due to regulatory supervision. We have taken steps to
improve profitability, for instance by adjusting the number of personnel, but
these measures have proven inadequate.
The healthy near-term development of postal operations will be determined in the
labor market negotiations currently under way, and in the legislative work
concerning postal services."
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
NEXT FINANCIAL DISCLOSURE
A financial statements release for 2010 will be published on Wednesday, February
16, 2011
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. Itella employs approximately 28,000 personnel. 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-September 2010
Profit performance and net sales in July-September 2010
The Itella Group recorded net sales of EUR 428.1 million in July-September (EUR
412.5 million in July-September 2009). Operating profit before non-recurring
items amounted to EUR 6.0 million (EUR 13.0 million), representing 1.4% (3.1%)
of net sales. The Group's operating profit including non-recurring items was EUR
4.4 million (EUR -5.6 million), or 1.0% (-1.4%) of net sales. Operating profit
was
taxed by restructuring costs of EUR 1.6 million (EUR 8.1 million) and in the
comparison year, by a goodwill impairment of EUR 10.6 million. Profit before
taxes was EUR 2.5 million (EUR -5.7 million).
Profit performance and net sales in January-September 2010
The Itella Group recorded net sales of EUR 1,332.7 million in January-September
(EUR 1,328.7 million in January-September 2009), showing an increase of 0.3%. In
local currencies, the decline in net sales was 1.4%. 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. The
Group's net sales in Finland were down by 3.1%. International operations
accounted for 32% (29%) of net sales. In international operations, Russia
accounted for the most significant relative growth calculated using comparable
exchange rates.
Consolidated operating profit before non-recurring items decreased by 31.8% to
EUR 31.9 million (EUR 46.8 million), representing 2.4% (3.5%) of net sales.
Operating profit including non-recurring items fell by 25.4% to EUR 16.5 million
(EUR 22.1 million), representing 1.2% (1.7%) of net sales.
Operating profit decreased in Itella Mail Communication and Itella Information,
while Itella Logistics was able to decrease its operating loss considerably.
Financial performance was taxed by restructuring costs of EUR 15.5 million
(restructuring costs EUR 14.2 million and write-down of goodwill EUR 10.6
million).
The Group's net financing costs were EUR 2.5 million (EUR 24.7 million). The EUR
4.1 million unrealized value change associated with an interest rate swap
decreased the net financing costs. 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 14.0 million (EUR -2.6 million). Income tax
totalled EUR 12.1 million (EUR 8.4 million). The Group's effective tax rate,
which was affected by losses from international operations, was 87.9% (---). The
Group recorded a net profit of EUR 1.8 million for the period (net loss of EUR
11.0 million).
Itella Mail Communication
Itella Mail Communication recorded net sales of EUR 821.2 million in
January-September (EUR 846.8 million), showing a decrease of 3.0%.
In January-September, business volumes developed as follows compared with the
corresponding period in 2009:
- The volume of first and second class letters did not take an upward turn
despite the fast growth of the national economy.
- Addressed direct marketing volumes fell by 1% while non-addressed direct
marketing volumes grew by 7%. Newspaper volumes dropped by 4% and magazine
volumes by 7%. Parcel delivery volumes fell by 1%.
Itella Mail Communication posted an operating profit of EUR 30.5 million (EUR
48.8 million), representing 3.7% (5.8%) of net sales. The result included EUR
15.3 million (EUR 8.0 million) of restructuring costs. Profitability also
weakened as a result of demand shifting towards lower-priced delivery products,
and the reduction of universal service product prices implemented in the third
quarter at the Finnish Communications Regulatory Authority's demand.
Itella's new sorting technology was phased in. By the end of 2010, four sorting
centers will be up and running as a single integrated unit. The almost four-year
investment project worth EUR 160 million will ensure that cost-efficient and
continuously developed postal services will be available everywhere in Finland
in the future, too. Itella has the capacity to upgrade its service production
automation and thereby to improve productivity. A continuing decrease in
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 192.5 million (EUR 183.1 million) in
January-September, up by 5.1%. Net sales grew in all product lines and countries
of operation, except in Estonia and Germany. The economic recovery boosted the
volumes of existing customers in other countries except the Baltic countries.
The business group posted an operating profit of EUR 10.5 million (EUR 12.4
million), representing 5.4% (6.8%) of net sales. The efficiency of product lines
and companies has been enhanced using a wide range of measures. Further measures
to improve efficiency will still be necessary, particularly outside the Nordic
countries.
Itella Logistics
In January-September, Itella Logistics recorded net sales of EUR 492.0 million
(EUR 469.3 million), showing an increase of 4.8%. The second quarter saw a
slight growth in volumes, and this trend continued in the third quarter.
Particularly in September, all countries and product lines achieved significant
net sales growth compared to the modest figures last year.
The business group recorded a loss of EUR 11.6 million (EUR -30.0 million),
representing -2.4% (-6.4%) of net sales.
Financial position and capital expenditure
Consolidated net cash flow from operating activities before investment
activities totaled EUR 14.9 million (EUR 15.6 million).
Capital expenditure amounted to EUR 64.0 million (EUR 94.7 million). No
acquisitions were made in January-September (EUR 0.2 million). The acquisition
of the non-controlling interest in Itella Information AS in Norway involved a
cost of EUR 2.7 million. Capital expenditure primarily involved mail sorting
machinery and mail processing systems and facilities in Finland.
A EUR 120 million syndicated revolving credit facility for Itella Corporation
was renewed. The five-year credit facility is intended for general financing
purposes and it replaces a former credit facility signed in 2006.
At the end of September, liquid assets stood at EUR 126.2 million (EUR 100.2
million), and undrawn committed credit facilities totaled EUR 120.0 million (EUR
150.0 million). Commercial papers issued amounted to EUR 59.0 million at the end
of the period. The Group's interest-bearing liabilities were EUR 305.6 million
(EUR 277.8 million). The equity ratio stood at 49.7% (49.6%) and gearing was
26.0% (26.7%).
Personnel
In January-September, the Itella Group employed an average of 29,009 (30,447)
people. At the end of the period, the number of personnel was 28,253 (29,509)
with 21,526 (22,916) employees based in Finland. The average personnel reduction
compared with the corresponding period in 2009 was 1,390 in Finland and 48 in
other countries.
At the end of the period, the Group employed personnel by segment as follows:
Itella Mail Communication 18,469, Itella Information 2,019, Itella Logistics
7,724 and other Group functions 41.
The Group's personnel costs decreased by EUR 5.5 million during the period, down
by 0.8% year-on-year. Excluding the cost provision for restructuring
arrangements, personnel expenses fell by EUR 6.8 million, or 1.1%.
Changes in corporate structure
Preparations to renew the legal structure of Finnish operations proceeded 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, and the realized and reference figures for segments have been
converted to correspond to the new structure. All real estate owned by Itella in
Finland will be transferred to a single company, Itella Real Estate Oy, at the
turn of the year.
Itella Corporation acquired the parcel business of the Estonia-based SmartPOST
OÜ and made it part of Itella Mail Communication. The acquisition does not have
a material impact on Itella's financial figures.
Itella Corporation acquired a non-controlling interest in Itella Information AS
from Norway Post. On September 1, 2010, Itella Information's Finland-based
companies Itella Tuottotieto Oy and Itella Information Oy merged into one legal
entity that operates under the name Itella Information Oy.
Events after the reporting period
In October, the Employers' Association TIKLI and the Finnish Post and Logistics
Union PAU initiated negotiations on a collective labor agreement. The collective
agreement for the communication and logistics sectors and for the information
logistics sector expired on October 15, 2010.
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.com/corporategovernance). These risks have not changed
substantially this year.
Country- and sector-specific differences in economic recovery affect the demand
for Itella's services and, consequently, the predictability of net sales.
Although volumes appear to be growing in information logistics and logistics,
price revisions will be needed to ensure a healthy profitability level. In order
to ensure profitability, special attention is paid to cost adjustments and
working capital management.
The economic conditions have made it difficult to estimate 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 adversely affect the result and
cash flow.
In terms of Itella's profitability, 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. Itella appealed the Finnish Communications Regulatory
Agency's
decision, and the appeal is still pending in the Administrative Court.
The effects of the new Postal Services Act on the competitive situation may be
seen in Itella's customers' decision-making towards the year-end.
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.
Outlook for the rest of the year
Stronger economic conditions will contribute to higher volumes in Itella's
services, particularly in Itella Logistics and Itella Information. Price levels
are expected to remain challenging. In Itella Mail Communication, the change in
economic conditions does not appear to have similar effect on the volume
development.
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 will, to
some extent, affect the development of Itella's net sales and profitability in
the final quarter.
Productivity and efficiency enhancement measures will continue in order to
ensure profitability as delivery volumes are declining. Fixed personnel expenses
constitute a major item in Itella's business. As the volumes are declining,
personnel reductions may at times considerably burden the result and cash flow.
The level of capital expenditure will fall in the final quarter from the
first-half levels, and the full-year expenditure will be considerably lower than
a year earlier. The timing and volume of new investments will be considered
carefully.
Helsinki, October 26, 2010
Itella Corporation
Board of Directors
The figures in this Interim Report are unaudited.
APPENDICES:
Itella key figures
Comprehensive consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Statement of changes in shareholders' equity
Notes
--------------------------------------------------------------------------------
| Key figures of Itella | | | | | |
| Group | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 7-9 | 7-9 | 1-9 | 1-9 | 1-12 |
--------------------------------------------------------------------------------
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales, MEUR | 428.1 | 412.5 | 1,332.7 | 1328.7 | 1,819.7 |
--------------------------------------------------------------------------------
| Operating profit (EBIT), | 4.4 | -5.6 | 16.5 | 22.1 | 46.7 |
| MEUR | | | | | |
--------------------------------------------------------------------------------
| EBIT margin, % | 1.0 | -1.4 | 1.2 | 1.7 | 2.6 |
--------------------------------------------------------------------------------
| Operating profit (EBIT), | 6.0 | 13.0 | 31.9 | 46.8 | 86.3 |
| MEUR *) | | | | | |
--------------------------------------------------------------------------------
| EBIT margin, % *) | 1.4 | 3.1 | 2.4 | 3.5 | 4.7 |
--------------------------------------------------------------------------------
| Profit before tax, MEUR | 2.5 | -5.7 | 14.0 | -2.6 | 19.6 |
--------------------------------------------------------------------------------
| Return on equity (12 | | | 1.2 | -5.9 | -0.7 |
| months), % | | | | | |
--------------------------------------------------------------------------------
| Return on investment (12 | | | 5.1 | 3.0 | 5.8 |
| months), % | | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | | | 49.7 | 49.6 | 48.5 |
--------------------------------------------------------------------------------
| Gearing, % | | | 26.0 | 26.7 | 19.7 |
--------------------------------------------------------------------------------
| Gross capital | 20.6 | 29.9 | 64.0 | 94.7 | 144.9 |
| expenditure, MEUR | | | | | |
--------------------------------------------------------------------------------
| Personnel on average | 29,064 | 30,139 | 29,009 | 30,447 | 30,217 |
--------------------------------------------------------------------------------
| *) Excl. non-recurring | | | | | |
| items, see notes 2 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated Income | | | | | |
| Statement | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | 7-9 | 7-9 | 1-9 | 1-9 | 1-12 |
--------------------------------------------------------------------------------
| EUR million | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net sales | 428.1 | 412.5 | 1,332.7 | 1,328.7 | 1,819.7 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 3.8 | 2.0 | 10.6 | 10.6 | 14.3 |
--------------------------------------------------------------------------------
| Share of associated | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 |
| companies' results | | | | | |
--------------------------------------------------------------------------------
| Materials and services | 128.7 | 111.6 | 367.6 | 354.7 | 474.9 |
--------------------------------------------------------------------------------
| Employee benefits | 199.2 | 202.2 | 646.8 | 652.3 | 888.0 |
--------------------------------------------------------------------------------
| Depreciation and | 21.8 | 19.9 | 64.4 | 58.0 | 77.8 |
| amortisation | | | | | |
--------------------------------------------------------------------------------
| Impairment losses | | 10.6 | | 10.6 | 13.5 |
--------------------------------------------------------------------------------
| Other operating expenses | 78.0 | 75.9 | 248.3 | 241.7 | 333.2 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit (EBIT) | 4.4 | -5.6 | 16.5 | 22.1 | 46.7 |
--------------------------------------------------------------------------------
| % of net sales | 1.0 % | -1.4 % | 1.2 % | 1.7 % | 2.6 % |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial income and | -2.0 | -0.1 | -2.5 | -24.7 | -27.1 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit/loss before income | 2.5 | -5.7 | 14.0 | -2.6 | 19.6 |
| tax | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 0.6 % | -1.4 % | 1.0 % | -0.2 % | 1.1 % |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Income tax | -1.4 | -2.5 | -12.1 | -8.4 | -24.2 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for the | 1.1 | -8.2 | 1.8 | -11.0 | -4.6 |
| financial period | | | | | |
--------------------------------------------------------------------------------
| % of net sales | 0.3 % | -2.0 % | 0.1 % | -0.8 % | -0.3 % |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit for the financial period | | | | |
| attributable to | | | | |
--------------------------------------------------------------------------------
| Parent company shareholders | 1.1 | -8.2 | 1.8 | -10.8 | -4.6 |
--------------------------------------------------------------------------------
| Non-controlling intrest | -0.1 | 0.0 | 0.0 | -0.2 | 0.0 |
--------------------------------------------------------------------------------
| | 1.0 | -8.2 | 1.8 | -11.0 | -4.6 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Comprehensive Consolidated Income Statement | | | |
--------------------------------------------------------------------------------
| Profit/loss for the | 1.1 | -8.2 | 1.8 | -11.0 | -4.6 |
| financial period | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Other items of | | | | | |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| Available-for-sale | -0.1 | 0.1 | 0.0 | -0.3 | -0.3 |
| financial assets | | | | | |
--------------------------------------------------------------------------------
| Translation differences | -25.6 | -4.7 | 12.8 | -13.6 | -4.3 |
--------------------------------------------------------------------------------
| Comprehensive income for | -24.6 | -12.8 | 14.6 | -24.9 | -9.2 |
| the financial period | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Comprehensive income | | | | | |
| attributable to | | | | | |
--------------------------------------------------------------------------------
| Parent company shareholders | -24.5 | -12.8 | 14.6 | -24.7 | -9.2 |
--------------------------------------------------------------------------------
| Non-controlling intrest | -0.1 | 0.0 | 0.0 | -0.2 | 0.0 |
--------------------------------------------------------------------------------
| | -24.6 | -12.8 | 14.6 | -24.9 | -9.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated Balance Sheet | | | |
--------------------------------------------------------------------------------
| | 30 Sept | 30 Sept | 31 Dec |
--------------------------------------------------------------------------------
| EUR million | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 167.6 | 165.1 | 165.2 |
--------------------------------------------------------------------------------
| Other intangible assets | 72.4 | 76.1 | 80.1 |
--------------------------------------------------------------------------------
| Investment property | 4.2 | 4.4 | 4.4 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 706.8 | 681.2 | 688.3 |
--------------------------------------------------------------------------------
| Investments in associated companies | 0.8 | 1.0 | 0.6 |
--------------------------------------------------------------------------------
| Other non-current investments | 0.6 | 0.8 | 2.4 |
--------------------------------------------------------------------------------
| Non-current receivables | 7.0 | 4.3 | 8.4 |
--------------------------------------------------------------------------------
| Deferred tax assets | 11.3 | 16.1 | 12.7 |
--------------------------------------------------------------------------------
| Total non-current assets | 970.7 | 949.0 | 962.1 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 6.1 | 6.3 | 6.5 |
--------------------------------------------------------------------------------
| Trade and other receivables | 282.0 | 271.6 | 271.9 |
--------------------------------------------------------------------------------
| Current tax assets | 18.7 | 17.2 | 4.0 |
--------------------------------------------------------------------------------
| Financial assets available-for-sale | 2.4 | 2.6 | 2.4 |
--------------------------------------------------------------------------------
| Financial assets at fair value through | 58.6 | 47.8 | 78.9 |
| profit or loss *) | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents *) | 67.6 | 52.4 | 82.3 |
--------------------------------------------------------------------------------
| Total current assets | 435.3 | 398.0 | 446.0 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total assets | 1,406.0 | 1,347.0 | 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 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Translation differences | -7.9 | -30.0 | -20.7 |
--------------------------------------------------------------------------------
| Retained earnings | 484.9 | 477.4 | 483.6 |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | 689.7 | 660.1 | 675.6 |
| of the parent company | | | |
--------------------------------------------------------------------------------
| Non-controlling intrest | 0.0 | 1.5 | 1.6 |
--------------------------------------------------------------------------------
| Total equity | 689.7 | 661.6 | 677.2 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 48.8 | 50.9 | 48.3 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 213.9 | 110.9 | 246.1 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other non-current liabilities | 15.6 | 37.5 | 15.1 |
--------------------------------------------------------------------------------
| Non-current provisions | 15.9 | 5.1 | 9.2 |
--------------------------------------------------------------------------------
| Defined benefit pension plan | 6.5 | 6.9 | 6.5 |
| obligations | | | |
--------------------------------------------------------------------------------
| Total non-current liabilities | 300.7 | 211.3 | 325.2 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Current interest-bearing liabilities | 91.6 | 166.9 | 48.0 |
--------------------------------------------------------------------------------
| Trade payables and other liabilities | 318.0 | 295.3 | 335.1 |
--------------------------------------------------------------------------------
| Current tax liabilities | 5.0 | 6.0 | 9.0 |
--------------------------------------------------------------------------------
| Current provisions | 0.9 | 5.9 | 13.6 |
--------------------------------------------------------------------------------
| Total current liabilities | 415.5 | 474.1 | 405.7 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total liabilities | 716.3 | 685.4 | 730.9 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total equity and liabilities | 1,406.0 | 1,347.0 | 1,408.1 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 305.6 | 277.8 | 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 | | | | |
--------------------------------------------------------------------------------
| | 1-9 | 1-9 | 1-12 | |
--------------------------------------------------------------------------------
| EUR million | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Result before tax | 14.0 | -2.6 | 19.6 | |
--------------------------------------------------------------------------------
| Total adjustments | 65.9 | 94.5 | 120.2 | |
--------------------------------------------------------------------------------
| Change in net working capital | -29.2 | -32.1 | 16.8 | |
--------------------------------------------------------------------------------
| Cash flow before financial items and | 50.7 | 59.8 | 156.6 | |
| income tax | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Financial items (net) | -5.5 | -23.1 | -29.0 | |
--------------------------------------------------------------------------------
| Tax paid | -30.3 | -21.1 | -16.9 | |
--------------------------------------------------------------------------------
| Cash flow from operating activities (net) | 14.9 | 15.6 | 110.7 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries less cash and | -0.2 | -0.5 | -22.8 | |
| cash equivalents | | | | |
--------------------------------------------------------------------------------
| Purchase of intangible assets and | -63.8 | -94.5 | -121.7 | |
| property, plant and equipment | | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of intangible and | 3.3 | 1.7 | 2.2 | |
| tangible assets | | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of subsidiaries and | - | 1.4 | 1.4 | |
| businesses | | | | |
--------------------------------------------------------------------------------
| Change in financial assets at fair value | 19.6 | 30.6 | 5.4 | |
| through profit or loss *) | | | | |
--------------------------------------------------------------------------------
| Cash flow from other investments | 1.4 | -0.7 | -2.2 | |
--------------------------------------------------------------------------------
| Cash flow from investing activities (net) | -39.8 | -62.0 | -137.7 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Change in loans (net) | 17.4 | 54.6 | 71.8 | |
--------------------------------------------------------------------------------
| Finance lease principal payments | -6.3 | -7.7 | -9.9 | |
--------------------------------------------------------------------------------
| Acquisition of non-controlling intrest | -2.7 | - | - | |
--------------------------------------------------------------------------------
| Dividends paid | -0.1 | -10.0 | -10.0 | |
--------------------------------------------------------------------------------
| Cash flow from financing activities (net) | 8.3 | 36.9 | 51.9 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -16.6 | -9.5 | 24.9 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at period-start | 82.3 | 49.5 | 49.5 | |
| *) | | | | |
--------------------------------------------------------------------------------
| Effect of changes in exchange rates | 1.8 | 12.5 | 7.9 | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at period-end | 67.6 | 52.4 | 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 | | |
--------------------------------------------------------------------------------
| | Shar | Contin | Fair | Transla | Retai | Tota | Non-con | Tota |
| | e | gency | valu | tion | ned | l | trollin | l |
| | capi | reserv | e | differe | earni | | g | equi |
| | tal | e | rese | nces | ngs | | intrest | ty |
| | | | rve | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity 1 | 70.0 | 142.7 | 0.3 | -16.4 | 498.2 | 694. | 1.5 | 696. |
| Jan 2009 | | | | | | 8 | | 3 |
--------------------------------------------------------------------------------
| Dividends | | | | | -10.0 | -10. | | -10. |
| paid | | | | | | 0 | | 0 |
--------------------------------------------------------------------------------
| Other | | | | | | | 0.2 | 0.2 |
| changes | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | -10.8 | -10. | -0.2 | -11. |
| the | | | | | | 8 | | 0 |
| financial | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | -0.3 | | | -0.3 | | -0.3 |
| fair value | | | | | | | | |
| reserve | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | -13.6 | | -13. | | -13. |
| translation | | | | | 6 | | 6 |
| differences | | | | | | | |
--------------------------------------------------------------------------------
| Equity 30 | 70.0 | 142.7 | 0.0 | -30.0 | 477.4 | 660. | 1.5 | 661. |
| Sept 2009 | | | | | | 1 | | 6 |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity 1 | 70.0 | 142.7 | 0.0 | -20.7 | 483.6 | 675. | 1.6 | 677. |
| Jan 2010 | | | | | | 6 | | 2 |
--------------------------------------------------------------------------------
| Dividends | | | | | - | - | -0.1 | -0.1 |
| paid | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | | | -0.7 | -0.7 | -2.0 | -2.7 |
| non-controlling | | | | | | | |
| intrest | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | 1.8 | 1.8 | 0.5 | 2.4 |
| the | | | | | | | | |
| financial | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | 0.1 | | | 0.1 | | 0.1 |
| fair value | | | | | | | | |
| reserve | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | 12.8 | | 12.8 | | 12.8 |
| translation | | | | | | | |
| differences | | | | | | | |
--------------------------------------------------------------------------------
| Equity 30 | 70.0 | 142.7 | 0.1 | -7.9 | 484.9 | 689. | 0.0 | 689. |
| Sept 2010 | | | | | | 7 | | 7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOTES | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| 1. Accounting principles | | | | | | | | |
--------------------------------------------------------------------------------
| 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. |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| | | | 7-9 | 7-9 | 1-9 | 1-9 | 1-12 | |
--------------------------------------------------------------------------------
| EUR million | | | 2010 | 2009 | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Net sales by business | | | | | | | | |
| segment | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | 255. | 259. | 821.2 | 846.8 | 1,168 | |
| Communication | | | 3 | 8 | | | .1 | |
--------------------------------------------------------------------------------
| inter-segment sales | | | -52. | -51. | -30.9 | -30.0 | 41.4 | |
| | | | 4 | 5 | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | 60.8 | 56.5 | 192.5 | 183.1 | 247.2 | |
--------------------------------------------------------------------------------
| inter-segment sales | | | -13. | -13. | -8.1 | -8.3 | 11.3 | |
| | | | 7 | 8 | | | | |
--------------------------------------------------------------------------------
| Itella Logistics | | | 169. | 150. | 492.0 | 469.3 | 637.3 | |
| | | | 2 | 0 | | | | |
--------------------------------------------------------------------------------
| inter-segment sales | | | -224 | -221 | -134. | -132. | 180.3 | |
| | | | .1 | .9 | 2 | 2 | | |
--------------------------------------------------------------------------------
| Other operations | | | 1.5 | 1.3 | 7.0 | 3.7 | 6.2 | |
--------------------------------------------------------------------------------
| inter-segment sales | | | -11. | -6.2 | -6.8 | -3.7 | 6.2 | |
| | | | 1 | | | | | |
--------------------------------------------------------------------------------
| Eliminations (Interim | | | -58. | -55. | -180. | -174. | -239. | |
| sales) | | | 7 | 2 | 0 | 2 | 1 | |
--------------------------------------------------------------------------------
| Total | | | 428. | 412. | 1,332 | 1,328 | 1,819 | |
| | | | 1 | 5 | .7 | .7 | .7 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| | | | 7-9 | 7-9 | 1-9 | 1-9 | 1-12 | |
--------------------------------------------------------------------------------
| EUR million | | | 2010 | 2009 | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Operating profit/loss | | | | | | | | |
| (EBIT) by business | | | | | | | | |
| segment | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | 8.5 | 8.2 | 30.5 | 48.8 | 82.0 | *) |
| Communication | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | 3.1 | 4.0 | 10.5 | 12.4 | 15.3 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | -3.0 | -14. | -11.6 | -30.0 | -31.2 | *) |
| | | | | 1 | | | | |
--------------------------------------------------------------------------------
| Other operations | | | -4.1 | -3.8 | -12.8 | -9.1 | -19.4 | |
--------------------------------------------------------------------------------
| Total | | | 4.4 | -5.6 | 16.5 | 22.1 | 46.7 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Non-recurring items by | | | | | | | | |
| business segment **) | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | 1.8 | 4.0 | 15.3 | 8.0 | 21.1 | |
| Communication | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | 0.0 | 0.0 | 0.0 | 0.6 | 1.5 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | 0.0 | 14.1 | 0.1 | 15.2 | 16.8 | |
--------------------------------------------------------------------------------
| Other operations | | | -0.1 | 0.6 | 0.0 | 1.0 | 0.2 | |
--------------------------------------------------------------------------------
| Total | | | 1.6 | 18.7 | 15.5 | 24.8 | 39.6 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Operating profit/loss (EBIT) by | | | | | |
| business segment excluding | | | | | |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | 10.2 | 12.2 | 45.8 | 56.8 | 103.1 | |
| Communication | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | 3.1 | 4.0 | 10.5 | 13.0 | 16.8 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | -3.0 | -0.1 | -11.5 | -14.8 | -14.4 | |
--------------------------------------------------------------------------------
| Other operations | | | -4.3 | -3.2 | -12.8 | -8.1 | -19.2 | |
--------------------------------------------------------------------------------
| Total | | | 6.0 | 13.0 | 31.9 | 46.8 | 86.3 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Financial income and | | | -1.9 | -0.1 | -2.5 | -24.7 | -27.1 | |
| expenses | | | | | | | | |
--------------------------------------------------------------------------------
| Result before income | | | 2.5 | -5.7 | 14.0 | -2.6 | 19.6 | |
| tax | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| EUR million | | | | | 30 | | 31 | |
| | | | | | Sept | | Dec | |
| | | | | | 2010 | | 2009 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Assets | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | | | 465.2 | | 450.0 | |
| Communication | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | | | 161.1 | | 157.8 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | | | 617.3 | | 624.4 | |
--------------------------------------------------------------------------------
| Other operations and | | | | | 169.8 | | 183.3 | |
| unallocated | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | | | | | -7.5 | | -7.4 | |
--------------------------------------------------------------------------------
| Total | | | | | 1,406 | | 1,408 | |
| | | | | | .0 | | .1 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Liabilities | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | | | 201.8 | | 227.9 | |
| Communication | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Information | | | | | 36.9 | | 36.5 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | | | 106.9 | | 106.3 | |
--------------------------------------------------------------------------------
| Other operations and | | | | | 378.6 | | 367.5 | |
| unallocated | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | | | | | -7.9 | | -7.4 | |
--------------------------------------------------------------------------------
| Total | | | | | 716.3 | | 730.9 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at period-end | | | | | | | | |
--------------------------------------------------------------------------------
| Itella Mail | | | | | 18,46 | | 19,16 | |
| Communication | | | | | 9 | | 8 | |
--------------------------------------------------------------------------------
| Itella Information | | | | | 2,019 | | 1,958 | |
--------------------------------------------------------------------------------
| Itella Logistics | | | | | 7,724 | | 8,403 | |
--------------------------------------------------------------------------------
| Other operations | | | | | 41 | | 39 | |
--------------------------------------------------------------------------------
| Total | | | | | 28,25 | | 29,56 | |
| | | | | | 3 | | 8 | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| *) Comparison data has been adjusted to match the new organizational | |
| structure. The operating profit shown in the Interim Report on June | |
| 30, 2010 has been adjusted from EUR 86.0 million to EUR 82.0 million | |
| (1-12/2009) for the Mail Communication business and similarly from EUR | |
| -35.2 million to EUR -31.2 million for the Logistics business. | |
--------------------------------------------------------------------------------
| **) Non-recurring items include restructuring costs in 2010 and 2009, | |
| and the goodwill impairment on the Logistics business in 2009. | |
--------------------------------------------------------------------------------
| 3. | Net sales by | | | | | |
| | geographical location | | | | | |
--------------------------------------------------------------------------------
| | | 7-9 | 7-9 | 1-9 | 1-9 | 1-12 |
--------------------------------------------------------------------------------
| | EUR million | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Finland | 285.3 | 293.8 | 908.7 | 937.4 | 1,275.7 |
--------------------------------------------------------------------------------
| | Scandinavia | 68.0 | 51.2 | 196.9 | 173.3 | 263.4 |
--------------------------------------------------------------------------------
| | Baltic countries and | 48.7 | 40.5 | 138.8 | 122.0 | 170.6 |
| | Russia | | | | | |
--------------------------------------------------------------------------------
| | Other countries | 26.1 | 27.0 | 88.3 | 96.0 | 110.0 |
--------------------------------------------------------------------------------
| | Total | 428.0 | 412.5 | 1,332.7 | 1,328.7 | 1,819.7 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| 4. | Changes in property, plant | | | | |
| | and equipment | | | | |
--------------------------------------------------------------------------------
| | EUR million | | | 30 Sept | 30 Sept | 31 Dec |
| | | | | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Carrying amount on 1 | | | 688.4 | 655.3 | 655.3 |
| | Jan | | | | | |
--------------------------------------------------------------------------------
| | Additions | | | 57.9 | 88.3 | 107.6 |
--------------------------------------------------------------------------------
| | Disposals and transfers | | -1.8 | -4.7 | -2.2 |
| | between items | | | | |
--------------------------------------------------------------------------------
| | Amortisation and Impairment for the | -48.1 | -43.5 | -61.4 |
| | financial period | | | |
--------------------------------------------------------------------------------
| | Translation | | | 10.5 | -14.2 | -11.0 |
| | differences | | | | | |
--------------------------------------------------------------------------------
| | Carrying amount at | | | 706.8 | 681.2 | 688.3 |
| | period-end | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| 5. | The Group's | | | | | |
| | contingent | | | | | |
| | liabilities | | | | | |
--------------------------------------------------------------------------------
| | EUR million | | | 30 Sept | 30 Sept | 31 Dec |
| | | | | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Pledges for own | | | 17.8 | 6.8 | 14.6 |
| | behalf | | | | | |
--------------------------------------------------------------------------------
| | Lease commitments | | | 332.3 | 211.9 | 365.7 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Derivative contracts | | | | | |
--------------------------------------------------------------------------------
| | EUR million | | | 30 Sept | 30 Sept | 31 Dec |
| | | | | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Currency forward | | | | | |
| | contracts | | | | | |
--------------------------------------------------------------------------------
| | Fair value | | | -1.5 | -2.4 | -0.7 |
--------------------------------------------------------------------------------
| | Nominal value | | | 117.6 | 109.5 | 85.9 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | Interest rate swaps | | | | | |
--------------------------------------------------------------------------------
| | Fair value | | | 4.1 | - | 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. |
--------------------------------------------------------------------------------
itella_interim_report_q3_2010.pdf
