NORDIC ALUMINIUM PLC FINANCIAL STATEMENTS RELEASE 2011
Nordic Aluminium’s net sales increased, but operating profit decreased compared to the previous year. Nordic Aluminium’s consolidated net sales in 2011 were EUR 69.66 million (EUR 68.26 million). Consolidated operating profit in 2011 was EUR 14.63 million (EUR 15.86 million). Net profit was EUR 11.07 million (EUR 11.92 million). Return on investment was 27.39 per cent (32.3 per cent) and return on equity 20.6 per cent (23.7 per cent). The Board proposes the payment of a dividend of 2011 2.20 EUR per share for a total payment of EUR 10.64 million (EUR 10.16 million).
Group structure
Nordic Aluminium Plc's parent company is Oy Lival Ab. The Nordic Aluminium Group is made up of the parent company Nordic Aluminium Plc, operating at Kirkkonummi and Nivala, and its subsidiaries Nordic Aluminium Inc. in the United States and Nordic Aluprofiler AB in Sweden.
Net sales and profits
Nordic Aluminium’s consolidated net sales were EUR 69,99 million (EUR 68.26 million). The operating profit of Nordic Aluminium in 2011 amounted to EUR 14.63 million (EUR 15.86 million). Earnings per share for the period were EUR 2.29 (EUR 2.46). Consolidated operating profit was 21.0 per cent from net sales (23.2 per cent).
The share of exports and international operations were 48.0 per cent of net sales as compared with 48.8 per cent the year before. The major export markets in 2011 were Europe, Far-East, and North America.
Last quarter in a nutshell
During the last quarter net sales of Nordic Aluminium, EUR 15.24 million, increased from the equivalent period in the previous year (EUR 15.14 million). The operating profit for the period was EUR 2.56 million (EUR 3.57 million). Earnings per share were EUR 0.43 (EUR 0.56).
Order backlog
Nordic Aluminium's order book at the end of 2011 stood at EUR 3.67 million (EUR 7.22 million). Increase in order backlog in the end of 2010, was mainly due to price increases, which came into effect in the beginning of 2011.
Purchase behaviour in the market tightened even more from last year. Customers are not able to give reliable estimates and order only for actual needs with short delivery times.
Research and development expenses
Nordic Aluminium's research and development expenses in 2011 were EUR 0.11 million (EUR 0.15 million), 0.2 per cent of net sales (0.2 per cent).
Investments
Gross investments in 2011 were EUR 4.16 million (EUR 1.85 million).
Profitability
Return on investment (ROI) in Nordic Aluminium in 2011 was 27.9 per cent (32.3 per cent) and return on equity (ROE) was 20.6 per cent (23.7 per cent). Diluted earnings per share were EUR 2.29 (EUR 2.46). Equity per share was EUR 11.19 (EUR 10.99).
Balance sheet and financing
The consolidated balance sheet total at the end of the 2011 fiscal year was EUR 62.70 million (EUR 61.56 million). Equity ratio was 86.3 per cent (86.4 per cent). Cash flow from operations before interests and taxes was EUR 18.10 million (EUR 17.20 million).
Authorisations
The Board has no current authorisations for the increase of the company's share capital or the procurement of own shares.
Share capital
The total number of Nordic Aluminium Plc´s shares at the end of the fiscal year 2011 was EUR 4,836,882. The registered share capital is EUR 6,191,208.96. All shares have the same voting and dividend rights. Nordic Aluminium Plc’s shares have been listed on NASDAQ OMX Helsinki Ltd. since 1997.
Share trading
The shares of Nordic Aluminium Plc are traded at the Helsinki Stock Exchange. The trading identifier is NOA1V and the ISIN code is FI0009006415. A total of 252,128 (390,524) Nordic Aluminium Plc shares were traded on the stock market in 2011 with total value of EUR 7.27 million. The share quotation ranged between EUR 19.00 and EUR 37.25 (EUR 14.94-30.90). The number of shares was 4,836,882 which remained unchanged during the reporting period. The market value of the company’s shares stood at EUR 121.9 million (EUR 137.9 million) at the end of December.
Paid dividends for the year 2010 were EUR 2.10 per share for a total payment of EUR 10,157,452.20.
Shares and ownership
There were no major changes in the ownership of Nordic Aluminium Plc during the year. At the end of the fiscal year 2011 Nordic Aluminium Plc’s ownership was as follows:
The biggest shareholders Dec 31, 2011 Number of Share of capital
Owner shares and votes
%
Oy Lival Ab 3,087,945 63.84
Varma Mutual Pension Employment
Insurance Company 250,000 5.17
Aktia Capital Unit Trust 217,000 4.49
Evli-Select Mutual Fund 173,840 3.59
Veritas Mutual Pension Insurance Company 139,000 2.87
Lival-Lindström, Stig 129,050 2.67
Fondita Micro Cap Mutual Trust 90,000 1.86
Mandatum Life Insurance Company 56,504 1.17
Rausanne 56,086 1.16
Mutual Fund Evli Nordic Dividend 35,111 0.73
Others 602,346 12.42
Total 4,836,882 100.00
The number of nominee-registered shares at the end of 2011 was 14,060 which equals 0.29 per cent of the company's shares and votes. The total number of shareholders at the end of the year was 1,783.
Shareholders by sector Dec 31, 2011 Number of Share
shares
%
Companies 3,232,013 66.82
Financial and insurance institutions 562,639 11.63
Associations 401,000 8.29
Non-profit associations 31,338 0.65
Households 605,400 12.51
Owners outside Finland 4,762 0.10
Total 4,836,882 100.00
Shareholders by size of holdings Dec 31, 2011
Number of shares Number of % Number of %
owners shares
1 – 200 1234 69.21 104,852 2.17
201 – 2,000 496 27.82 276,296 5.72
2,001 – 20,000 42 2.36 201,134 4.16
20,001 – 200,000 8 0.45 699,655 14.47
200,001 – 2,000,000 2 0.11 467,000 9.65
2,000,001 – 9,999,999 1 0.06 3,087,945 63.84
Total 1,738 100.00 4,836,882 100.00
Insider issues
Nordic Aluminium Plc adheres to the guidelines for insiders issued by NASDAQ OMX Helsinki Ltd. Nordic Aluminium Plc's permanent insiders are: Members of the Board of Directors, Managing Director & CEO, Secretary of the Board and the Members of the Management Group as well as named individuals within the Company's financial administration, sales and marketing and production. The appointed insider issue responsible is the Company's CFO. Up-to-date insider data is maintained in the Central Securities Depository at Euroclear Finland Ltd’s premises.
The Company recommends that the permanent insiders' investments in the Company's are to be long-term investments. According to NASDAQ OMX Helsinki Ltd. guidelines for insiders and the Company's own Insider Guidelines trading in the Company's securities should be done at the times when the market has as exact information as possible of the issues and matters influencing the value of the security.
Annual General Meeting
The Annual General Meeting of Nordic Aluminium Plc on March 31, 2011 adopted the financial statements and discharged the members of the Board and the Managing Director from liability. The Meeting also decided to approve the proposal of the Board for a dividend of 2010 EUR 2.10 per share (EUR 1.30) or a total of EUR 10.16 million.
The Annual General Meeting elected Stig Lival-Lindström, Viveka Iisaho, Nina Ehrnrooth and Hans Jonasson regular members of the Board of Directors. The board elected Stig Lival-Lindström Chairman on the same date.
The Annual General Meeting elected Authorised Public Accountant Ernst & Young Oy as Auditor of Nordic Aluminium Plc with Tomi Englund, Authorized Public Accountant, as responsible Auditor.
Personnel
In 2011 the Nordic Aluminium Group had an average number of 128 employees. The corresponding number for the year before was 156. At the end of 2011 the Group had 105 employees.
Outlook
The new company culture is now solid part of the company. In order to improve productivity and profitability Nordic Aluminium will continue to take actions and make fine adjustments in every part of the organization.
The Board of Directors expect the net sales to increase during 2012. Competitive production machinery, increased inputs on sales and product development support this expectation. In addition, exporting to Far-East and North America will be increased through internal and external channels.
The Board of Directors expect the turnover and operating profit to increase during the year.
Risk management
The objective of Nordic Aluminium Plc's risk management is to secure business continuity in all possible situations. The CEO and the Board of Directors are responsible for the risk management.
As part of the risk management the Company’s insurance policies are re-evaluated annually. The factories and commercial activities are full value insured.
Main business risks are related to the uncertainty in the development of the world economy and its influence on market demand and on raw material prices.
The Board’s proposal on the allocation of profits
Net profit of the parent company for the year is EUR 11,212,626.49 and its distributable earnings EUR 32,539,655.82.
The Board proposes that a dividend of EUR 2.20 per share, or a total of EUR 10,641,140.40, will be declared and that the remaining balance of EUR 21,898,515.42 will be retained in profit and loss account.
Disclaimer
This release contains certain forward-looking statements that reflect the current views of the Company’s Board of Directors. Due to the nature of these statements, they contain risks and uncertainties and are subject to changes in the general economic situation and in the company’s business sector.
Corporate Governance
Nordic Aluminium complies with The Finnish Corporate Governance Code approved by Securities Market Association. Possible deviations have been stated with reasons at appropriate recommendations. The Corporate Governance statement of Nordic Aluminium is in full view at the Internet site of Nordic Aluminium (www.nordicaluminium.fi/Financial info).
Nordic Aluminium’s Corporate Governance Statement from fiscal year 2011 will be published March 2, 2012 as a separate statement, simultaneously with the Financial Statements Release 2011, at the Company’s home pages.
Accounting policies
These presented annual financial statements have been prepared in accordance with IAS34 Interim Financial Reporting. Nordic Aluminium applies the same accounting policies as are applied in 2010 annual financial statements.
The financial information is prepared in accordance with international financial reporting standards IFRS.
While the group has only one primary business segment, "Aluminium products", which is equal to the official consolidated income statement and profit and loss account, the annual financial statements do not include separate information over the group's primary business segment.
The key figures in these annual financial statements are calculated with same accounting principles than in year 2010 annual financial statements. The calculation rules of key figures are presented in the financial statements.
The figures presented in the tables below have been rounded to two decimals, which should be taken into account when reading the sum figures.
The financial statements bulletin has been subject to audit.
CONSOLIDATED INCOME STATEMENT
EUR million
10-12/11 % 10-12/10 % 1-12/11 % 1-12/10 % Net sales 15.24 15.14 69.66 68.26
Other operating income 0.14 0.01 0.46 0.08
Increase(+) or decrease(-)
finished goods and
work in progress -0.12 0.80 0.41 0.33
Raw materials and
consumables -8.01 -7.95 -35.72 -31.62
Personnel expenses -1.19 -0.89 -6.39 -6.02
Depreciation and
reduction of value -0.96 -0.95 -3.99 -4.54
Other operating expenses -2.53 -2.59 -9.80 -10.63
Operating profit 2.56 16.8% 3.57 23.6% 14.63 21.0% 15.86 23.2
Financial items 0.11 0.07 0.22 0.24
Profit before taxes 2.67 17.5% 3.64 24.0% 14.85 21.3% 16.10 23.6
Income taxes -0.59 -0.89 -3.78 -4.18
Net profit for the period2.08 13,7% 2.75 18.2% 11.07 15.9% 11.92 17.5
Profit attributable to:
Owners of the parent 2.08 13,7% 2.75 18.2 11.07 15.9% 11.92 17.5
Minority interest 0.00 0.00 0.00 0.00
Other comprehensive income:
Conversion difference 0.02 0.03 0.04 0.13
Total comprehensive income
attributable to:
Owners of the parent 2.12 13,8% 2.78 18.4 11.11 15.9% 12.05 17.6
Minority interest 0.00 0.00 0.00 0.00
Basic and diluted
earnings per share, EUR 0.43 0.56 2.29 2.46
CONSOLIDATED BALANCE SHEET
EUR million Dec 31, Dec 31,
2011 2010
Non-current assets
Tangible assets 25.80 25.31
Goodwill 2.25 2.25
Intangible assets 0.71 0.99
Tradable financial assets 0.02 0.02
Deferred tax liabilities 0.09 0.07
Total 28.86 28.64
Current assets
Inventories 7.09 6.77
Accounts receivable and other
current assets 9.70 9.60
Advance payments 0.00 0.04
Financial assets 17.05 16.51
Total 33.84 32.92
Cash in hand and at banks 62.70 61.56
EUR million Dec 31, Dec 31,
2011 2010
Shareholders' equity and liabilities
Equity
Shareholders' equity 6.19 6.19
Share premium account 3.45 3.45
Conversion difference -0.10 -0.14
Retained earnings 44.58 43.66
Shareholders' equity:
Owners of the parent 54.13 53.17
Minority interest 0.00 0.00
Total 54.13 53.17
Long-term liabilities
Deferred tax liabilities 2.89 3.20
Provisions 0.20 0.20
Interest bearing liabilities 0.00 0.01
Total 3.10 3.41
Short-term liabilities
Accounts payable 5.48 4.96
Provisions 0.00 0.00
Short-term interest
bearing liabilities 0,00 0.02
Total 5.48 4.98
Total liabilities 8.58 8.39
Total shareholders' equity and
liabilities 62,70 61.56
CONSOLIDATED CASH FLOW STATEMENTS
EUR million 10-12/11 10-12/10 1-12/11 1-12/10
Cash flow from operations
Net profit (loss) 2.08 2.75 11.07 11.92
Corrections
Depreciation
according to plan 0.96 0.95 3.99 4.54
Financial items -0.12 -0.07 -0.22 -0.24
Taxes 0.56 0.88 3.78 4.18
Cash flow before change
in net working capital 3.48 4.51 18.62 20.40
Change in net working capital:
Short-term receivables,
increase(-)/decrease(+) 3.72 3.84 -0.30 -1.94
Inventories
increase(-)/decrease(+) 0.14 -0.81 -0.31 -0.36
Short-term interest
bearing liabilities
increase(+)/decrease(-) -3.09 -3.75 0.09 -0.77
Total 0.77 -0.72 -0.52 -3.07
Cash flow from operations
before interests and taxes 4.26 3.66 18.10 17.20
Paid interests and payments for
other financial expenses -0.04 -0.04 -0.29 -0.15
Received interests and payments
from other financial income 0.16 0.11 0.51 0.39
Paid income taxes -0.74 0.75 -3.67 -2.53
Cash flow from operations(A)3.64 4.49 14.65 14.92
Cash flow from investing activities
Investments in tangible and
intangible assets -1.63 -0.90 -4.16 -1.85
Income from sales of tangible
and intangible assets 0.18 0.00 0.18 0.03
Repayment of loan receivables0.00 0.00 0.00 0.00
Cash flow from investments(B)-1.45 -0.90 -3.98 -1.82
Cash flow from financial items
Rights issue 0.00 0.00 0.00 0.00
Withdrawals of
short-term loans 0.00 -0.07 0.00 0.00
Amortization of short-
term loans -0.01 -0.01 -0.02 -0.01
Withdrawals of
long-term loans 0.00 0.00 0.00 0.00
Amortization of long-
term loans 0.00 0.03 0.00 -0.06
Dividends paid 0.00 0.00 -10.16 -6.29
Cash flow from financial
items(C) -0.01 -0.06 -10.18 -6.36
Change in cash flow (A+B+C) 2.18 3.67 0.50 6.87
Conversion difference 0.06 0.03 0.04 0.13
Total 2.24 3.70 0.54 7.00
Cash in hand and at banks
in the beginning of period 14.81 12.81 16.51 9.51
Cash in hand and at banks
in the end of period 17.05 16.51 17.05 16.51
Change 2.24 3.70 0.54 7.00
STATEMENT OF CHANGES OF CONSOLIDATED EQUITY
EUR million
Shareholders Share prem. Conversion Retained Total
Equity account difference earnings equity
Equity
1.1.2010 6.19 3.45 -0.27 38.03 47.41
Comprehensive income 0.13 11.92 12.05
Earnings and costs total 12.05
Dividends -6.29 -6.29
Equity
31.12.2010 6.19 3.45 -0.14 43.66 53.17
Equity
1.1.2011 6.19 3.45 -0.14 43.66 53.17
Comprehensive income 0.04 11.07 11.11
Earnings and costs total
Dividends -10.16 -10.16
Equity
31.12.2011 6.19 3.45 -0.10 44.58 54.13
KEY FIGURES:
10-12/11 10-12/10 1-12/11 1-12/10 1-12/09
Diluted earnings per
share, EUR 0.43 0.56 2.29 2.46 0.63
1-12/11 1-12/10 1-12/09
Equity ratio, % 86.30 86.40 84.40
Gearing, % -31.50 -30.90 -19.80
Balance sheet total, EUR million62.70 61.56 56.17
NOTES:
1-12/11 1-12/10 1-12/09
Equity/share, EUR 11.19 10.99 9.80
Number of personnel at 105 151 125
the end of the season
10-12/11 10-12/10 1-12/11 1-12/10 1-12/09
Investments, EUR million 3.03 0.88 4.16 1.85 6.84
Average number of personnel 123 154 128 156 207
Geographical segments:
Net sales
EUR million 10-12/11 10-12/10 1-12/11 1-12/10 1-12/09
Finland 8.21 7.75 36.22 34.95 34.13
Other countries 7.03 7.39 33.44 33.31 28.11
Total 15.24 15.14 69.66 68.26 62.24
Taxes:
EUR million 10-12/11 10-12/10 1-12/11 1-12/10 1-12/09
Current income tax -0.86 -0.55 -4.08 -3.83 0.04
Change in deferred income tax 0.27 -0.34 0.30 -0.35 1.11
Total -0.59 -0.89 -3.78 -4.18 1.15
Inventories:
EUR million Dec 31, Dec 31, Dec 31,
2011 2010 2009
Raw materials and consumables 0.92 1.01 0.97
Work in progress 3.80 2.87 2.96
Finished goods 2.37 2.89 2.49
Total 7.09 6.77 6.42
Interest bearing loans and borrowings:
EUR million Dec 31, Dec 31, Dec 31,
2011 2010 2009
Bank loan 0.00 0.00 0.00
Obligations under finance leases 0.01 0.03 0.05
Total 0.01 0.03 0.05
Contingent liabilities:
EUR million Dec 31, Dec 31, Dec 31,
2011 2010 2009
Consignation liability 0.15 0.26 0.33
Rental and leasing liabilities 4.03 4.89 7.44
Corporate mortgages given 0.00 0.00 0.00
Related party disclosures:
EUR million 10-12/11 10-12/10 1-12/11 1-12/10 1-12/09
Sales 2.04 1.56 10.53 9.49 7.50
Purchases 0.01 0.01 0.02 0.03 0.05
EUR million Dec 31, Dec 31, Dec 31,
2011 2010 2009
Receivables 0.09 0.07 0.02
Accounts payable 0.00 0.04 0.00
Order backlog:
EUR million Dec 31, Dec 31, Dec 31,
2011 2010 2009
3.67 7.22 4.02
The financial statements for the fiscal year 2011 have been audited. The key data have been calculated as instructed by the FSA Standard 5.1.
Nordic Aluminium Plc’s Annual General Meeting will be held on March 30, 2012.
Nordic Aluminium Plc’s next Interim Report for January-March 2012 will be published on April 20, 2012. All releases can be viewed at Nordic Aluminium's homepages www.nordicaluminium.fi.
Kirkkonummi March 2, 2012
NORDIC ALUMINIUM PLC
Board of Directors
Joakim Berndtsson
Managing Director
For further information please contact:
Joakim Berndtsson, Managing Director, Nordic Aluminium,
phone +358 20 7660 206
Distribution:
NASDAQ OMX Helsinki Ltd.
The Main Media
www.nordicaluminium.fi
NOAE0112
