OLVI PLC                INTERIM REPORT 2 MAY 2019 at 9:00 am

OLVI GROUP’S INTERIM REPORT, 1 JANUARY TO 31 MARCH 2019 (3 MONTHS)

INTERIM REPORT IN BRIEF

Olvi Group’s business development was good in the first part of the year in terms of sales volume and net sales. Operating profit was almost on a par with the previous year, exceeding expectations. Sales outlook for the peak season is good.

Near-term outlook

Olvi retains the earnings outlook for 2019 presented in connection with the disclosure of the financial statements for 2018, and estimates that the Group’s net profit for 2019 will remain on the previous year’s good level.

CONSOLIDATED KEY RATIOS

  1-3/2019 1-3/2018 Change % / pp 1-12/2018
Sales volume, Mltr 137.4 133.7 2.8 701.3
Net sales, MEUR 77.0 70.6 9.1 384.3
Gross margin, MEUR 11.7 11.2 4.5 70.8
% of net sales 15.2 15.9   18.4
Operating profit, MEUR 6.0 6.4 -5.7 50.1
% of net sales 7.8 9.1   13.0
Net profit for the period, MEUR 5.1 5.6 -10.1 41.1
% of net sales 6.6 8.0   10.7
Earnings per share, EUR 0.25 0.27 -7.4 1.97
Gross capital expenditure, MEUR 6.8 6.3 7.7 34.2
Equity per share, EUR 11.69 10.64 9.9 11.31
Equity to total assets, % 66.4 66.2 0.2 64.9
Gearing, % -2.4 -3.3 -0.9 -6.0

BUSINESS DEVELOPMENT
LASSE AHO, MANAGING DIRECTOR:

Olvi Group’s year 2019 in whole has started well. Even though the year’s first sales peak, Easter, is only in April this year, the sales volume, net sales and gross margin have increased from the previous year. Excise tax hikes continued at the beginning of 2019 in Finland, Latvia and Lithuania. As previously expected, net sales were not quite on a par with the previous year. This was due to the fact that increases in the prices of raw materials, packaging and other costs were realised immediately at the beginning of the year, and that depreciation and impairment increased. Increases in sales prices will become effective gradually during the first half of the year. We have also put effort as planned to new product launches. Even though the Group’s operating profit in the review period is slightly lower than in the previous year, it exceeds expectations.

In Finland, net sales and operating profit improved on the previous year. Olvi in particular has succeeded in making its off-season sales in the first part of the year more balanced. The fact that the Easter season is in April this year caused a drop in sales in comparison with the
previous year, as Easter is the first sales peak of the year; consumers purchase larger volumes and shift to more expensive beverages. Compared to the corresponding period last year, the Finnish segment now includes the operations of Servaali and Helsinki Distilling Company.

In the Baltic states, the beginning of the year was good particularly in terms of net sales, even though changes in alcohol legislation and taxes bring challenges to the markets. In order to secure business growth, effort has been put into exports. Olvi Group exports its products to more than 30 countries. Exports and their significance for Olvi Group have constantly increased. Furthermore, we have reacted to the changing operating environment in the Baltic states through cost efficiency measures, increasing the relative share of non-alcoholic product categories among our overall business and by developing novel products to many categories such as sparkling wines. 

In Estonia, comparability with the previous year is hampered by advance sales in 2018 due to excise tax hikes, as well as weaker demand particularly in harbour and on-board sales between Finland and Estonia but also in the domestic market. So, even though Estonia fell short of the previous year, earnings were better than expected.    

Business in Latvia remained on the previous year’s level. There was an excise tax hike at the beginning of the year, which will weaken domestic demand. We were able to get sales price increases through during the first quarter, which made it easier to compensate for cost increases at the earnings level.  

Good development has continued in Lithuania. Sales volume and net sales improved on the corresponding period last year. The growth was made possible particularly by good development of exports. Operating profit was hampered by the costs of designing and launching novel products before the peak season, the most important being the new Uniqa brand of waters. We will start our own water business in Lithuania during the second quarter. Volfas Engelman will be the sales and marketing company for spring water, with its 100-percent subsidiary Lamate responsible for production.

Sales volume in Belarus increased in comparison with the previous year, thanks to increased exports. First-quarter earnings were hampered by increased costs of manufacturing and logistics, as well as additional sales and marketing effort particularly for exports. Sales prices will be increased gradually according to plan during the first half of the year.

Investments in the beginning of the year have been initiated according to plan. In Finland, we will improve our production capacity for the latter part of the year. Olvi Group’s first own spring water plant in Lithuania will be ready for production in April. 

SEASONAL NATURE OF THE OPERATIONS

The Group’s business operations are characterised by seasonal variation. The net sales and operating profit from the reported geographical segments do not accumulate evenly but vary according to the time of the year and the characteristics of each season.

SALES DEVELOPMENT 
 
Olvi Group’s sales volume increased by 2.8 percent to 137.4 (133.7) million litres.

Sales volume, million litres 1-3/2019 1-3/2018 Change %
Finland 44.4 42.4 4.8
Estonia 21.7 22.6 -4.0
Latvia 13.6 14.4 -5.7
Lithuania 20.2 19.0 6.5
Belarus 41.6 39.7 4.7
Eliminations -4.1 -4.4  
Total 137.4 133.7 2.8

 The Group’s net sales from January to March amounted to 77.0 (70.6) million euro, an increase of 9.1 percent. The increase originated particularly in Finland, from the operations of Servaali and Helsinki Distilling Company, as well as Lithuania. The commensurate net sales growth in Finland is 1.3 percent, in spite of Easter sales shifting to the second quarter.

Net sales, million euro 1-3/2019 1-3/2018 Change %
Finland 33.9 28.4 19.3
Estonia 13.8 14.3 -3.7
Latvia 7.4 7.4 0.5
Lithuania 9.1 8.1 12.3
Belarus 15.0 14.4 4.1
Eliminations -2.2 -2.1  
Total 77.0 70.6 9.1

EARNINGS DEVELOPMENT

The Group’s operating profit for January-March declined by 5.7 percent and amounted to 6.0 (6.4) million euro, or 7.8 (9.1) percent of net sales. Operating profit in Finland was boosted by the parent company Olvi, where fixed costs in particular were lower than in the previous year.

Operating profit, million euro 1-3/2019 1-3/2018 Change %
Finland 2.6 1.8 45.9
Estonia 2.1 2.3 -8.3
Latvia 0.6 0.6 0.9
Lithuania 0.3 0.4 -16.3
Belarus 0.7 1.3 -47.5
Eliminations -0.3 0.1  
Total 6.0 6.4 -5.7

The Group’s January-March profit after taxes amounted to 5.1 (5.6) million euro.

Earnings per share calculated from the profit belonging to parent company shareholders in January-March stood at 0.25 (0.27) euro per share.

BALANCE SHEET, FINANCING AND INVESTMENTS

Olvi Group’s balance sheet total at the end of March 2019 was 369.6 (335.0) million euro. Equity per share at the end of March 2019 stood at 11.69 (10.64) euro. The equity ratio was 66.4 (66.2) percent and the gearing ratio was -2.4 (-3.3) percent. The current ratio, which represents the Group’s liquidity, remained unchanged at 1.2 (1.2).

The amount of interest-bearing liabilities at the end of March was 6.8 (10.7) million euro, including current liabilities of 4.9 (8.1) million euro.

Olvi Group’s capital expenditure on extensions and replacements in January-March amounted to 6.8 (6.3) million euro. The parent company Olvi accounted for 2.5 million euro, the Baltic subsidiaries for 3.5 million euro and Lidskoe Pivo in Belarus for 0.8 million euro of the total.

PRODUCT DEVELOPMENT AND NEW PRODUCTS

Research and development includes projects to design and develop new products, packages, processes and production methods, as well as further development of existing products and packages. The R&D costs have mostly been recognised as expenses. The main objective of Olvi Group’s product development is to create new products for profitable and growing beverage segments.

Several new products were launched during January-March both in Finland and by the subsidiaries. The new products are presented on each company’s Web site.

PERSONNEL

Olvi Group’s average number of personnel in January-March was 1738 (1702). The Group’s average number of personnel increased by 36 people or 2.1 percent.

Olvi Group’s average number of personnel by country:

  1-3/2019 1-3/2018 Change %
Finland 355 319 11.3
Estonia 294 294 0.0
Latvia 186 191 -2.6
Lithuania 222 209 6.2
Belarus 681 689 -1.2
Total 1738 1702 2.1

 BOARD OF DIRECTORS AND MANAGEMENT

There have been no changes in Olvi plc’s Board of Directors or management during the review period.

OTHER EVENTS DURING THE REVIEW PERIOD

Changes in corporate structure

There were no changes in Olvi’s holdings in subsidiaries in January-March 2019.

Share-based payments

Olvi plc initiated a new share-based incentive plan for key personnel, the performance period of which is from 1 February 2019 to 31 January 2021. Detailed information on the incentive plan is provided in Table 5, Section 3 of the tables attached to this interim report.

BUSINESS RISKS AND THEIR MANAGEMENT

Continuous changes in excise taxes and stricter alcohol legislation in Olvi Group’s operating countries bring uncertainty to operations.

In addition to the risks described above, there have been no significant changes in Olvi Group’s business risks. A more detailed description of the risks is provided in the Board of Directors’ report and the notes to the financial statements, as well as in the Investors/Corporate Governance section of the company’s Web site.

EVENTS AFTER THE REVIEW PERIOD

Annual General Meeting

Olvi plc’s Annual General Meeting of 16 April 2019 adopted the financial statements and granted discharge from liability to the members of the Board of Directors and Managing Director for the accounting period that ended on 31 December 2018.

In accordance with the Board’s proposal, the General Meeting decided that a dividend of 0.90 (0.80) euro be paid on each A and K share for the accounting period 2018. The dividend according to the resolution accounts for 45.7 (46.1) percent of Olvi Group’s consolidated earnings per share. The dividends will be paid in two instalments. The first instalment of 0.45 euro per share will be paid on 9 May 2019 to shareholders registered in the register of shareholders held by Euroclear Finland Ltd on the record date 18 April 2019. The second instalment of 0.45 euro per share will be paid on 9 September 2019 to shareholders registered in the register of shareholders held by Euroclear Finland Ltd on the record date 2 September 2019.

The General Meeting decided that the Board of Directors shall have six (6) members. Pentti Hakkarainen, Lasse Heinonen, Nora Hortling, Elisa Markula, Päivi Paltola and Heikki Sirviö were re-elected to the Board of Directors.

The authorised public accounting firm Ernst & Young Oy was elected the company’s auditor, with Elina Laitinen, Authorised Public Accountant, as auditor in charge. Until the General Meeting, the company’s auditor was the authorised public accounting firm PricewaterhouseCoopers Oy, with Juha Toppinen, Authorised Public Accountant, as auditor in charge.

All decisions made at the General Meeting can be found in the bulletin released on 16 April 2019.

Organisation of the Board of Directors

At its organising meeting held on 16 April 2019, the Board elected Pentti Hakkarainen as the Chairman of the Board and Nora Hortling as the Vice Chairperson of the Board.

The Audit Committee consists of Lasse Heinonen, Päivi Paltola and Nora Hortling, and the Remuneration Committee consists of Pentti Hakkarainen, Heikki Sirviö and Elisa Markula.

OLVI PLC
Board of Directors

Further information: Lasse Aho, Managing Director, Olvi plc, phone +358 290 00 1050 or +358 400 203 600

TABLES:
- Statement of comprehensive income, Table 1
- Balance sheet, Table 2
- Changes in shareholders’ equity, Table 3
- Cash flow statement, Table 4
- Notes to the interim report bulletin, Table 5

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi

OLVI GROUP     TABLE 1
       
STATEMENT OF COMPREHENSIVE INCOME      
EUR 1,000      
  1-3/2019 1-3/2018 1-12/2018
Net sales 77024 70576 384302
Other operating income 487 266 2144
Operating expenses -65773 -59613 -315694
Depreciation and impairment -5713 -4837 -20602
Operating profit 6025 6392 50150
       
Financial income 320 83 432
Financial expenses -130 -380 -1429
Share of profit in associates 0 0 23
       
Earnings before tax 6215 6095 49176
Taxes *) -1141 -453 -8039
NET PROFIT FOR THE PERIOD 5074 5642 41137
       
Other comprehensive income items that 
may be subsequently reclassified
to profit and loss:		    
   
Translation differences related to foreign subsidiaries 2581 -1006  

-2713
Income taxes related to these items -95 0 0
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 7560 4636 38424
       
Distribution of profit:  
- parent company shareholders 5076 5626  

40809
- non-controlling interests -2 16  

328
       
Distribution of comprehensive income:  
 - parent company shareholders 7510 4645  

38169
 - non-controlling interests 50 -9  

255
       
Earnings per share calculated from the profit belonging  
to parent company shareholders, EUR    
-  undiluted 0.25 0.27  

1.97
-  diluted 0.25 0.27 1.97
       

*) Taxes calculated from the profit for the review period.

OLVI GROUP     TABLE 2  
BALANCE SHEET        
EUR 1,000 31 Mar 2019 31 Mar 2018 31 Dec 2018  
ASSETS        
Non-current assets        
Tangible assets 199470 186500 195599  
Goodwill 26289 16205 26134  
Other intangible assets 11202 5249 11481  
Shares in associates 1016 1113 1016  
Investments 543 543 543  
Loans receivable and other non-current receivables 235 257 235  
Deferred tax receivables 328 816 558  
Total non-current assets 239083 210683 235566  
         
Current assets        
Inventories 46292 36684 39882  
Accounts receivable and other receivables 71439 69588 71038  
Income tax receivable 574 0 440  
Liquid assets 12227 18028 18520  
Total current assets 130532 124300 129880  
TOTAL ASSETS 369615 334983 365446  
         
SHAREHOLDERS’ EQUITY AND LIABILITIES        
Shareholders’ equity held by parent company shareholders      
Share capital 20759 20759 20759  
Other reserves 1092 1092 1092  
Treasury shares -503 -228 -956  
Translation differences -44312 -45087 -46746  
Retained earnings 265038 243986 259864  
  242074 220522 234013  
Share belonging to non-controlling interests 3187 1201 3165  
Total shareholders’ equity 245261 221723 237178  
         
Non-current liabilities        
Financial liabilities 1901 2574 1167  
Other liabilities 4774 33 4765  
Deferred tax liabilities 7474 6475 8085  
         
Current liabilities        
Financial liabilities 4909 8141 3554  
Accounts payable and other liabilities 104602 94854 110222  
Income tax liability 694 1183 475  
Total liabilities 124354 113260 128268  
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 369615 334983 365446  
 
 

OLVI GROUP  TABLE 3
               
CHANGES IN SHAREHOLDERS’ EQUITY        
               
  Share
capital		 Other
reserves		 Treasury
shares
account		 Translation
differences		 Retained
earnings		 Share of
non-controlling interests		 Total
EUR 1,000
               
Shareholders’ equity 1 Jan 2018 20759 1092 -228 -44106 238242 1228 216987
Comprehensive income:              
  Net profit for the period       5626 16 5642
  Other comprehensive income items:          
  Translation differences     -981   -25 -1006
Total comprehensive income for the period   -981 5626 -9 4636
Transactions with shareholders:            
  Payment of dividends           -18 -18
  Share-based incentives         118   118
Total transactions with shareholders     118 -18 100
Shareholders’ equity 31 Mar 2018 20759 1092 -228 -45087 243986 1201 221723
   
  Share
capital		 Other
reserves		 Treasury
shares
account		 Translation
differences		 Retained
earnings		 Share of
non-controlling interests		 Total
EUR 1,000
               
Shareholders’ equity 1 Jan 2019 20759 1092 -956 -46746 259864 3165 237178
Comprehensive income:              
  Net profit for the period       5076 -2 5074
  Other comprehensive income items:            
  Translation differences       2434   52 2486
Total comprehensive income for the period     2434 5076 50 7560
Transactions with shareholders:            
  Payment of dividends           -28 -28
  Acquisition of treasury shares   -726       -726
  Sales of treasury shares to employees  1179       1179
  Share-based incentives, value of work performed     98   98
Total transactions with shareholders 453   98 -28 523
Shareholders’ equity 31 Mar 2019 20759 1092 -503 -44312 265038 3187 245261

 Other reserves include the share premium account, legal reserve and other reserves.

OLVI GROUP   TABLE 4
 
CASH FLOW STATEMENT      
EUR 1,000      
  1-3/2019 1-3/2018 1-12/2018
       
Net profit for the period 5074 5642 41137
Adjustments to profit for the period 6467 6444 31061
Change in net working capital -12444 -12663 1409
Interest paid -34 -111 -603
Interest received 5 79 440
Dividends received 0 0 123
Taxes paid -876 -1304 -10525
Cash flow from operations (A) -1808 -1913 63042
       
Investments in tangible and intangible  
assets -6203 -7277 -32315
Sales gains from tangible and intangible  
assets 505 260 1796
Shares purchased in subsidiaries 0 0 -16059
Cash flow from investments (B) -5698 -7017 -46578
       
Withdrawals of loans 2409 355 13543
Repayments of loans -1747 -1407 -21641
Acquisition of treasury shares -726 0 -1770
Sales of treasury shares to employees 1179 0 0
Dividends paid 0 0 -16587
Increase (-) / decrease (+) in current interest-  
bearing business receivables 0 0 316
Cash flow from financing (C) 1115 -1052 -26139
       
Increase (+)/decrease (-) in liquid assets (A+B+C) -6391 -9982 -9675
       
Liquid assets 1 January 18520 28625 28625
Effect of exchange rate changes 98 -615 -430
Liquid assets 31 Mar/31 Dec 12227 18028 18520

OLVI GROUP                                                                       TABLE 5

NOTES TO THE INTERIM REPORT

This interim report has been prepared in accordance with IFRS recognition and measurement principles but all of the requirements in IAS 34 have not been observed. The accounting policies have been the same as for the financial statements of 31 December 2018, with the exception of the adoption of IFRS 16 Leases.

The information in the interim report is presented in thousands of euros (EUR 1,000). For the sake of presentation, individual figures and totals have been rounded to full thousands, which causes rounding differences in additions. The ratios are calculated from exact amounts in euros. The information disclosed in the interim report is unaudited.

IFRS 16 Leases

Olvi Group adopted the new standard IFRS 16 Leases as of 1 January 2019. As a consequence, the Group recognised non-cancellable leases on its balance sheet. The Group utilised the relief allowed under the standard, according to which short-term and low-value assets need not be recognised. The Group took a simplified approach to adoption, with no adjustments to the comparison figures for the previous year or shareholders’ equity.

The adoption of the standard has an effect of 941 thousand euro on fixed assets in the consolidated balance sheet. Correspondingly, a lease liability of 941 thousand euro is recognised in non-current and current interest-bearing liabilities. The adoption of the standard does not have any significant effect on consolidated earnings or the cash flow statement.

RELATED PARTY TRANSACTIONS    
       
Employee benefits to management
       
Salaries and other short-term employee benefits to the Board of Directors and Managing Director
EUR 1,000      
   1-3/2019  1-3/2018  1-12/2018
       
Managing Director 496 278 823
Chairman of the Board 15 17 71
Other members of the Board 32 37 164
Total 542 332 1058


2. SHARES AND SHARE CAPITAL    
     
  31 Mar 2019 %
     
Number of A shares 16989976 82.0
Number of K shares 3732256 18.0
Total 20722232 100.0
     
Total votes carried by A shares 16989976 18.5
Total votes carried by K shares 74645120 81.5
Total number of votes 91635096 100.0
     
Votes per Series A share 1  
Votes per Series K share 20  

 The registered share capital on 31 March 2019 totalled 20,759 thousand euro.

Olvi plc’s shares will receive a dividend of 0.90 euro per share for 2018 (0.80 euro per share for 2017), totalling 18.6 (16.6) million euro. The dividends will be paid in two instalments on 9 May 2019 and 9 September 2019. The Series K and Series A shares entitle to equal dividend. The Articles of Association include a redemption clause concerning Series K shares.

3. SHARE-BASED PAYMENTS

The aim of Olvi plc’s share-based incentive plan is to combine the objectives of the shareholders and the key employees in order to increase the value of the company, to make the key employees committed to the company, and to offer them a competitive reward plan based on earning the company’s shares.

Olvi plc initiated a new share-based incentive plan for key personnel, the performance period of which is from 1 February 2019 to 31 January 2021. The plan is directed to approximately 60 people. In accordance with the share-based incentive plan, Olvi plc sold a total of 36,450 treasury shares to the target group members for a price of 1,179,330.37 euro. From January to March 2019, costs associated with the plan were recognised for a total of 192.4 thousand euro. Olvi Group does not have any other share-based plans or option plans.

4. TREASURY SHARES

Olvi plc holds a total of 11,549 of its own Series A shares. The total purchase price of treasury shares was 502,956.28 euro. Olvi plc’s share repurchase scheme ended on 21 January 2019. Treasury shares held by the company itself are ineligible for voting.

Series A shares held by Olvi plc as treasury shares represent 0.06 percent of all shares and 0.01 percent of the aggregate number of votes. The treasury shares represent 0.07 percent of all Series A shares and associated votes.

On 16 April 2019, the General Meeting of Shareholders of Olvi plc decided to revoke any unused authorisations to acquire treasury shares and authorise the Board of Directors of Olvi plc to decide on the acquisition of the company’s own shares using distributable funds. The authorisation is valid for one year starting from the General Meeting and covers a maximum of 500,000 Series A shares.

The Annual General Meeting also decided to revoke all existing unused authorisations for the transfer of own shares and authorise the Board of Directors to decide on the issue of a maximum of 1,000,000 new Series A shares and the transfer of a maximum of 500,000 Series A shares held as treasury shares.

5. NUMBER OF SHARES *)  1-3/2019  1-3/2018 1-12/2018  
         
  - average 20700627 20717683 20711397  
  - at end of period 20700627 20717683 20696504  
         
*) Treasury shares deducted.

 

 

During January-March 2019, Olvi has not received any flagging notices in accordance with Chapter 2, Section 10 of the Securities Markets Act.		  
6. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK EXCHANGE    
       
   1-3/2019  1-3/2018   1-12/2018
       
Trading volume of Olvi A shares 447289 293689 1741051
Total trading volume, EUR 1,000 14567 8485 52140
Traded shares in proportion to      
all Series A shares, % 2.6 1.7 10.2
       
Average share price, EUR 32.57 28.88 29.95
Price on the closing date, EUR 32.20 28.10 31.50
Highest quote, EUR 34.90 30.90 34.00
Lowest quote, EUR 31.20 27.30 27.00



7. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 31 MARCH 2019		  
             
  Book entries Votes Shareholders
  qty % qty % qty %
Finnish total 15392489 74.28 86305353 94.18 11671 99.52
Foreign total 304610 1.47 304610 0.33 46 0.40
Nominee-registered (foreign) total 117505 0.57 117505 0.13 4 0.03
Nominee-registered (Finnish) total 4907628 23.68 4907628 5.36 6 0.05
Total 20722232 100.00 91635096 100.00 11727 100.00


8. LARGEST SHAREHOLDERS ON 31 MARCH 2019        
             
  Series K Series A Total % Votes %
1. Olvi Foundation  2363904 890613 3254517 15.71 48168693 52.57
2. The Estate of Hortling Heikki *) 903488 103280 1006768 4.86 18173040 19.83
3. Hortling Timo Einari 212600 49257 261857 1.26 4301257 4.69
4. Hortling-Rinne Marit  149064 14699 163763 0.79 2995979 3.27
5. OP Corporate Bank plc, nominee reg. 2318674 2318674 11.19 2318674 2.53
6. Nordea Bank Abp, nominee register   1745256 1745256 8.42 1745256 1.90
7. Ilmarinen Mutual Pension Insurance Company 851401 851401 4.11 851401 0.93
8. Varma Mutual Pension Insurance Company 828075 828075 4.00 828075 0.90
9. Skandinaviska Enskilda Banken AB (publ)
  Helsinki branch, nominee register		 765282 765282 3.69 765282 0.84
10. Hortling Pia Johanna 23388 23566 46954 0.23 491326 0.54
Others 79812 9399873 9479685 45.74 10996113 12.00
Total 3732256 16989976 20722232 100.00 91635096 100.00
             
*) The figures include the shareholder’s own holdings and shares held by parties in his control.


9. PROPERTY, PLANT AND EQUIPMENT  
EUR 1,000      
   1-3/2019  1-3/2018   1-12/2018
       
Opening balance 195599 188155 188155
Effect of IFRS 16 941 0 0
Additions 6548 6131 32833
Deductions and transfers 52 -2379 -4395
Depreciation -5171 -4548 -18922
Exchange rate differences 1501 -859 -2072
Total 199470 186500 195599



10. CONTINGENT LIABILITIES		      
EUR 1,000      
  31 Mar 2019 31 Mar 2018 31 Dec 2018
       
Pledges and contingent liabilities    
  For own commitments 2114 1886 2114
       
Leasing and rental liabilities:    
  Due within one year 860 1191 1129
  Due within 1 to 5 years 432 793 805
  Due in more than 5 years 1 2 2
Leasing and rental liabilities total 1293 1986 1936
       
Other liabilities 60 2000 57

11. CALCULATION OF FINANCIAL RATIOS

In the summary of financial indicators (page 1), the Group presents figures directly derived from the consolidated income statement: net sales, operating profit and profit for the period, the corresponding percentages in proportion to net sales, as well as the earnings per share ratio. (Earnings per share = Profit belonging to parent company shareholders / Average number of shares during the period, adjusted for share issues.) 

In addition to the consolidated financial statements prepared in accordance with IFRS, Olvi Group presents Alternative Performance Measures that describe the financial development of its business and provide a commensurate overall view of the company’s profitability, financial position and liquidity.

The Group has applied the ESMA (European Securities and Markets Authority) new guidelines on Alternative Performance Measures that entered into force on 3 July 2016 and defined APMs as described below.

As an APM supporting net sales, the Group presents sales volumes in millions of litres. Sales volume is an important indicator of the extent of operations generally used in the industry.

The definition of gross margin is operating profit plus depreciation and impairment.

Gross capital expenditure consists of total expenditure on fixed assets, including the effect of any corporate acquisitions.

Equity per share = Shareholders’ equity held by parent company shareholders / Number of shares at end of period, adjusted for share issues

Equity to total assets, % = 100 * (Shareholders’ equity held by parent company shareholders + non-controlling interests) / (Balance sheet total)

Gearing, % = 100 * (Interest-bearing debt – cash in hand and at bank) / (Shareholders’ equity held by parent company shareholders + non-controlling interests)

Attachment