Lemminkäinen Group

3 May 2012:
Source: Lemminkäinen´s Interim Report 1-3/2012

The balance sheet total stood at EUR 1,293.5 million (1,098.5) on 31 March 2012. The balance sheet grew due to Lemminkäinen's strategic investments in residential development and increased liquid funds.

At the end of the review period, Lemminkäinen issued a EUR 70 million domestic hybrid bond. Although this hybrid bond is presented under the Group's shareholders' equity, the bond bearer does not possess any of the rights of a shareholder, and the bond does not dilute shareholders' holdings in the company. It is an unsecured debt with a lower priority than the company's other debt obligations. The bond has no maturity but the company may exercise an early redemption option after four years. The bond's annual interest rate is 10%. The hybrid bond issue strengthened Lemminkäinen's capital structure and financial position, giving the company more latitude to implement its strategy.

Lemminkäinen's rolling 12-month return on investment was 9.5% (8.6). The equity ratio was 34.2% (32.6) and gearing 76.1% (117.2). The aforementioned financing arrangements improved both the equity ratio and gearing. Lemminkäinen seeks to achieve an 18 per cent return on investment and an equity ratio of 35 per cent by the end of the 2010–2013 strategy period.

Working capital rose by 10.5% to EUR 831.9 million (752.9). Net working capital totalled EUR 381.3 million (389.1).

At the end of the period, interest-bearing debt stood at EUR 404.4 million (394.6), of which long-term interest-bearing debt accounted for EUR 183.7 million (141.4) and short-term interest-bearing debt for EUR 220.7 million (253.2). Interest-bearing net debt totalled EUR 305.8 million (369.9). Of all interest-bearing debt, 38% were with a fixed interest rate, and on 31 March 2012, the financing expenses of all interest-bearing debt amounted to, on average, 3.45%.

Of the company’s interest-bearing debt, 17% (18) comprise loans from financial institutions, 23% (23) commercial papers, 16% (9) project loans related to residential and commercial development, 15% (21) pension loans, 14% (14) finance leasing liabilities and 15% (15) bonds. At the end of the period, the company also had binding, unused credit limits to the amount of EUR 140.3 million (160.0).

Net financial expenses rose slightly during the review period and amounted to EUR 2.7 million (2.0), representing 0.8% (0.6) of net sales.

Liquid funds at the end of the review period stood at EUR 98.6 million (24.7). The hybrid bond issued at the end of the period increased the company's liquid funds.

According to the cash flow statement, cash flow from operating activities in the first quarter totalled EUR 35.7 million (–38.3).

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9 February 2012
Source: Lemminkäinen´s Financial Statements bulletin 2011

The balance sheet total stood at EUR 1,242.8 million (1,062.0) on 31 December 2011. The balance sheet grew due to growth in Lemminkäinen's business operations and the increased emphasis on own residential development.

The Group’s return on investment improved to 10.8% (7.0). The equity ratio of 30.8% was down on the previous year (35). The equity ratio declined due to the growth of the balance sheet. Gearing was 114.5% (105.7). Working capital grew by 20%, amounting to EUR 861.4 million (720.6). Net working capital was EUR 435.7 million (388.6). Lemminkäinen seeks to achieve an 18 per cent return on investment and an equity ratio of 35 per cent by the end of the 2010–2013 strategy period. The company also seeks to reduce its net working capital by approximately EUR 100 million.

At the end of the review period, interest-bearing debt was EUR 431.6 million (375.5), of which long-term interest-bearing debt accounted for EUR 194.6 million (214.1) and short-term interest-bearing debt for EUR 237.0 million (161.4). Interest-bearing net debt was EUR 401.2 million (349.2). Of all interest-bearing debt, 38% were with a fixed interest rate, and on 31 December 2011, the financing expenses of all interest-bearing debt was, on average, 3.4%.

Of the Company’s interest-bearing debt, 17% (17) comprise loans from financial institutions, 28% (20) commercial papers, 12% (8) project loans related to own production of residential and business premises, 15% (24) pension loans, 14% (15) finance leasing liabilities and 14% (16) bonds. Moreover, the company had binding, unused credit limits in the amount of EUR 140,7 million (160,0) at the end of the review period.

Some of the Group’s loan arrangements include two financial covenants that are reviewed quarterly: equity ratio and ratio of net debt to EBITDA.

Net financing expenses during the review period amounted to EUR 18.9 million (22.0), representing 0.8% (1.2) of net sales. The Group’s financing expenses were reduced by the financial arrangements carried out in late 2010.

During the third quarter of the year, Lemminkäinen prepared for the uncertainty of the financial market by strengthening its cash reserve. At the end of the review period, the company’s cash reserve was reduced so that its liquid assets amounted to EUR 30.4 million (26.3) on 31 December 2011.

According to the cash flow statement, the cash flow from operating activities in 2011 was EUR -7.1 million (-37.2). Growth of the sales inventory for own residential development had a major impact on the cash flow from operating activities.

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Interim report 1-9/2011
3.11.2011

The balance sheet total stood at EUR 1,679.1 million (1,206.0) on 30 September 2011. The figure changed due to the year-on-year growth in business volume and the capital committed to own housing development. Furthermore, Lemminkäinen prepared itself to face the uncertainty in the financial markets by strengthening its cash reserves. At the end of the review period, the Company had a credit facility of EUR 160 million in use, which increased the amount of liquid funds and long-term interest-bearing debt. Liquid funds at the end of the review period were EUR 251.5 million (52.1).

Rolling 12-month return on investment was 9.2 (7.0). The equity ratio was 23.5% (30.7) and gearing was 103.0% (120.1). The equity ratio declined due to the growth of the balance sheet. Lemminkäinen seeks to achieve return on investment of 18 per cent and an equity ratio of 35 per cent by the end of the 2010-2013 strategy period.

The amount of interest-bearing debt at the end of the review period was EUR 614.5 million (453.1). Long-term interest-bearing net debt amounted to EUR 342.4 million (222.2) and short-term interest-bearing debt to EUR 272.1 million (230.9). The changes in long-term interest-bearing debt are largely due to the credit facilities used by the Company. Short-term interest-bearing debt increased as a result of the growth in business volume. Interest-bearing net debt was EUR 363.0 million (401.0).

Net financial expenses during the review period amounted to EUR 12.7 million (16.9), representing 0.8% (1.3) of net sales. Financial expenses declined due to the Company’s financial arrangements in 2010.

Thanks to the financial arrangements in 2010, Lemminkäinen has a broader financial base. Of the Company’s interest-bearing debt, 36% (16) comprise loans from financial institutions, 27% (27) commercial paper, 7% (7) project loans related to own production of housing and business premises, 11% (21) pension loans, 9% (12) finance leasing liabilities and 10% (13) bonds. At the end of the review period, Lemminkäinen did not have unused binding credit facilities (EUR 150.0 million at the end of the comparison period).

Working capital saw a year-on-year increase of 29% and amounted to EUR 1,075.7 million (836.0) during the review period. One of the primary reasons behind the rise in working capital was the growth in both business volume and capital committed to own housing development. Net working capital was EUR 395.1 million (442.9). In order to improve profitability and solvency, Lemminkäinen has set its sights on decreasing net working capital by about EUR 100 million by the end of the 2010-2013 strategy period.

According to the cash flow statement, cash flow from operations in July-September amounted to EUR 148.7 million (14.7). Cash flow from operations in January-September was EUR 13.7 million (-82.2).

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Interim report 1-6/2011
4.8.2011

The amount of interest-bearing debt at the end of the review period was EUR 521.1 million (448.5), of which EUR 330.1 million (274.1) was short-term and EUR 191.0 million (174.3) long-term. Interest-bearing net debt was EUR 501.7 million (409.5).

Net financial expenses during the review period amounted to EUR 6.5 million (10.5), representing 0.8% (1.4) of net sales. Financial expenses were reduced by the Company’s financial arrangements in 2010 and changes in the fair value of the used interest rate derivatives.

Thanks to the financial arrangements made in 2010, Lemminkäinen has a broader financial base. Of the Company’s interestbearing debt, 23% (33) comprise loans from financial institutions, 33% (21) commercial paper, 7% (7) project loans related to own production of housing and business premises, 15% (23) TyEL loans, 10% (13) finance leasing liabilities and 11% (0) bonds. At the end of the review period, EUR 130 million in committed credit facilities were unused.

Liquid funds at the end of the review period were EUR 19.4 million (39.0).

Working capital saw a year-on-year increase of 24% and amounted to EUR 1,025.1 million (824.7) during the review period. One of the primary reasons behind the growth in working capital was the increase in trade receivables and capital committed to own residential development. Net working capital was EUR 498.2 million (426.0).

According to the cash flow statement, the cash flow from operating activities was EUR -96.7 million (-47.0) in Q2. Cash flow from operating activities in January-June was EUR -135.0 million (-96.9).

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Interim Report 1-3/2011:
(5.5.2011)

The amount of interest-bearing debt at the end of the review period was EUR 394.6 million (387.3). Interest-bearing net debt was EUR 369.9 million (349.0). Net financial expenses during the review period amounted to EUR 2.0 million (5.5), representing 0.6% (1.9) of net sales.

Liquid funds at the end of the review period were EUR 24.7 million (38.3).

Lemminkäinen carried out numerous financial arrangements in 2010. After these arrangements, the Company has a broad financing base and the maturity structure of its debt portfolio is spread out over a longer period. Of the Com-pany’s interest-bearing debt, 18% (35) comprise loans from financial institutions, 23% (11) commercial paper, 9% (9) project loans related to own production of housing and business premises, 21% (27) TyEL loans, 14% (14) finance leasing liabilities and 15% (0) bonds. At the end of the review period, EUR 160 million in committed credit facilities were unused.

According to the cash flow statement, the cash flow from operating activities was EUR -38.3 million (-49.9) in Q1. The cash flow for the review period includes the payment of dividends totalling EUR 0.6 million to the non-controlling shareholders of subsidiaries in 2010.

Working capital saw a year-on-year increase of 13% and amounted to EUR 757.3 million (668.3) during the review period. One of the primary reasons behind the growth in working capital was the increase in trade receivables and capital committed to own residential development. Net working capital was EUR 393.5 million (362.5).

Updated 3 May 2012