FORTUM CORPORATION INTERIM REPORT 1 JANUARY - 30 JUNE 2000
Six months in brief
- Net sales increased by 35% in the second quarter and the result was good. Operating profit for April - June more than doubled from the previous year. Operating profit for January - June increased to EUR 422 million (EUR 344 million).
- The acquisition of Stora Enso’s power assets, together with the related financing arrangements, was finalised.
- Fortum announced that it would focus its key business operations on Northern Europe and as a consequence divest its power assets in the UK and Ireland. After the review period we announced that we would also divest the power assets in Hungary.
- Mikael Lilius was appointed as President and CEO as of 1 September 2000.
Results for January - June
At EUR 5,105 million, Fortum Group’s net sales for January - June were 34% higher than in the same period in 1999 (EUR 3,811 million). Taking into account the effect of discontinued operations, net sales of the continuing business operations increased by EUR 1,894 million.
Operating profit for April - June was more than double that of the previous year, at EUR 225 million (EUR 104 million). This was mainly attributable to the oil refining margin and crude oil prices being significantly higher than in the previous year. The results for the second quarter were also improved by the EUR 25 million gains from the sale of the shares of Gulsele Kraft AB.
In January - June, the results from business operations improved significantly on the previous year as a result of the strong second quarter. Operating profit totalled EUR 422 million (EUR 344 million). The price of crude oil, which was higher than in the reference period, and an increase in the refining margin in the second quarter contributed to the good results. The average price of electricity sold by Fortum in the Nordic countries was the same as in the reference period. The results of Birka Energi were adversely affected, mainly by a lower demand for heat, as a result of the mild winter, and a reduction in the price of electricity. Operating profit includes a total of EUR 40 million (EUR 62 million) of gains on the sales of fixed assets.
The result before extraordinary items was EUR 270 million (EUR 244 million). Net financing expenses during the review period were EUR 152 million (EUR 100 million). The growth was mostly attributable to the financing fees of the Stora Enso acquisition.
Earnings per share were EUR 0.26 (EUR 0.22). Shareholders’ equity per share was EUR 6.12 (EUR 6.00 at the end of 1999). Return on capital employed increased to 8.4% (7.5%), and return on shareholders’ equity was 6.9% (7.1%).
Investments and financing
The Group’s investments in January - June totalled EUR 2,711 million (EUR 609 million). Net cash flow from operating activities amounted to EUR 204 million (EUR 254 million) and cash flow before financing activities EUR -965 million (EUR 7 million). At the end of June, interest-bearing net debt totalled EUR 4,921 million (EUR 3,818 million at the end of 1999). Gearing at the end of June amounted to 80% (79% at the end of 1999).
The largest investments were the acquisition of the German energy company Elektrizitätswerk Wesertal GmbH, in January, and the power assets of Stora Enso for EUR 1.7 billion, at the turn of May - June.
In June, Fortum implemented a significant financing arrangement in connection with the acquisition of Stora Enso power assets. Under the arrangement, Fortum Capital Ltd issued preferred shares worth EUR 1.2 billion, carrying a fixed dividend of 6.7% per annum. On the basis of interest-rate swap arrangements made simultaneously, the effective cost for Fortum is one percentage point below the fixed rate dividend in today’s interest rate environment. In the consolidated financial statements, the arrangement will be accounted for as a minority interest in the income statement and balance sheet.
Fortum sold four hydropower plants to Kemijoki Oy for EUR 126 million. Fortum acquired these power plants, located in Finland, from Stora Enso earlier this year.
During the spring, Fortum decided to divest its power generation assets in the UK, Ireland and, after the review period, in Hungary. Including power plants in operation or under construction and shares of power plants, Fortum’s share of electricity generation capacity totals 860 MW. The decision to divest is based on Fortum’s strategy of focusing on the North European markets.
In February, a decision on the merger of Länsivoima Oyj into Fortum Corporation was made by the Boards of Directors of the companies. In April, the Merger Plan was accepted in the Annual General Meetings of Fortum and Länsivoima. As a merger consideration, the shareholders of Länsivoima will receive a maximum of about 70 million Fortum shares, corresponding to about 8% of Fortum shares after the merger. Of these, about 15 million shares will be given to minority shareholders outside the Group. The merger is planned to become effective on 30 September 2000.
Activities after the review period
Fortum sold its 90% share of Lahden Lämpövoima Oy to Lahti Energia for EUR 85 million.
Fortum announced its intention also of divesting its ownership of the Hungarian power company in accordance with its strategy.
On 7 August, Fortum’s Board of Directors decided to launch the sales process of Transmission Engineering. PwC Corporate Finance will act as financial advisor in the project. Fortum continues to study ownership-related and other development alternatives of Power Plant Engineering and Oil, Gas and Chemicals Engineering.
Annual General Meeting
Fortum Corporation’s Annual General Meeting was held on 17 April 2000. The dividend to be paid for 1999 was decided to be EUR 0.18 per share (EUR 0.13), a total of EUR 141 million (EUR 99 million).
Following a decision of the Annual General Meeting, Fortum’s share capital was converted into Euros and increased to EUR 2,668,260,959.00 through a fund issue. The par value of each share was increased to EUR 3.40. No new shares were issued and the number of shares remained the same. Group organisation and personnel
In June, the Supervisory Board appointed Mikael Lilius as President and CEO as of 1 September 2000.
The Board of Directors appointed Kari Huopalahti as member of the Corporate Executive Committee as of 1 June 2000.
In January - June, Fortum Group employed an average of 16,217 people (18,348).
Ilkka-Christian Björklund has announced after the review period that, as of 1 August 2000, he will resign from Fortum’s Supervisory Board and its Chairmanship.
Prospects for the remainder of the year
The international market prices essentially influencing the profitability of Group operations seem, as a whole, to remain on a better level than in the previous year.
In the next few months, Fortum will carry out the integration of the business acquired from Stora Enso, divest the power plants and power assets in the UK, Ireland and Hungary, and improve the profitability of operations in Wesertal. In addition, the Länsivoima merger will be implemented, the reorganisation of the distribution business will be carried out, and the ownership issues of Engineering will be solved.
We believe that operating profit for 2000 will be significantly and earnings per share slightly higher than in the previous year.
Business review
Oil and Gas Upstream
In the review period, the average price of the North Sea light Brent blend was USD 27 a barrel (USD 13 a barrel).
In the early part of the year, Fortum’s oil and gas production amounted to an average of 33,322 oil-equivalent barrels a day, corresponding to an annual production of about 1.7 million tonnes, about 15% more than in the reference period. Production in April - June, however, decreased compared with the first quarter. The company’s share of production in Oman decreased. As a result of maintenance outages, production in Norway was also reduced. The average price of oil sold by Fortum was about USD 27 a barrel, an almost 80% increase on the reference period.
In April, Fortum was awarded with a 25% share in two new licences in the Norwegian Sea, situated close to the Åsgard field in the Haltenbanken area.
Gas production in the Åsgard field is estimated to start at the end of the year.
Oil Refining and Marketing
In the review period, international refining margin increased significantly in the second quarter, to an average of USD 3.6 a barrel in January - June (USD 0.4). Low stocks of gasoline and shortage of high-quality products affected the price level both in Europe and in the US, which meant that Fortum had a reasonably good refining margin in May - June.
During the second quarter, the market prices of petroleum products were also very high in Finland, where consumption reduced. In January - June, consumption of petroleum products in Finland totalled 4.3 million tonnes, more than 5.5% below that in the reference period. Sales of Fortum’s petroleum products to the Finnish market totalled 3.6 million tonnes in January - June, about 3% less than in the reference period.
In the review period, Fortum refined a total of 6.0 million tonnes (6.3 million tonnes) of crude oil and other feedstock. At the end of March, the Porvoo and Naantali refineries were shut down as a result of a two-week strike in the chemical industry. The shut-down reduced sales in Finland and had an adverse effect on the March - April result.
In June, Fortum signed long-term chartering contracts, on the basis of which it will hire two new ice-strengthened tankers with a carrying capacity of 106,000 dwt. The vessels, construction of which will be completed in summer 2002, will be used to transport crude oil in the Baltic Sea and the North Sea.
In June, Fortum decided to triple the production capacity of the EHVI base oil, used in the production of lubricants, at its Porvoo refinery. The annual output of the unit will be increased to about 150,000 tonnes in autumn 2001. The investment will cost approximately EUR 25 million.
Power and Heat Generation and Sales
In January - June, the average system price of electricity in the Nordic electricity exchange was EUR 12.3 per MWh (EUR 12.5). In the second quarter, the system price was EUR 10.9 per MWh, and the area prices, in both Finland and Sweden, were EUR 2.4 per MWh higher than the system price. Electricity consumption in the Nordic countries increased by 0.4%. District heat consumption in Finland decreased by more than 5% as a result of the warm winter.
Fortum’s electricity sales totalled 24.2 TWh (22.4 TWh). Electricity sales increased especially in Germany, as a result of the acquisition of Wesertal. Heat sales totalled 9.2 TWh (8.5 TWh). Net sales of electricity totalled EUR 586 million (EUR 530 million) and net sales of heat EUR 226 million (EUR 191 million).
In January, Fortum finalised the acquisition of the German Elektrizitätswerk Wesertal GmbH, which is now wholly owned by Fortum. The improvement of Wesertal operations continues by, for example, developing electricity procurement, electricity trading and co- operation with local electricity companies.
In April, Fortum and the Swedish company, Graningeverkens AB (publ), exchanged shares equalling to annual production rate of 0.22 TWh and hydropower capacity of 44.4 MW. Fortum exchanged part of the production of the Swedish Gulsele Kraft AB for a share of the production of the Finnish Kemijoki Oy.
At the turn of May - June, Fortum acquired Stora Enso’s power plant capacity corresponding to a total of 1,511 MW and 6.7 TWh of annual production. Most of the capacity is in Sweden. At the same time, Fortum agreed on electricity deliveries to Stora Enso mills in Sweden. The agreed annual volume is more than 2 TWh over the next three years. In addition, Fortum and Stora Enso agreed on electricity procurement and trading services to Stora Enso’s mills in Finland. In June, Fortum sold to Kemijoki Oy some of the hydropower plants in Finland, a total of 68 MW, that it had acquired from Stora Enso.
In June, Fortum purchased 49% of Ishavskraft AS, an electricity sales company in northern Norway. The company has 30,000 customers and, in 1999, electricity sales of 0.8 TWh with net sales of some EUR 20 million. Electricity Distribution
In the review period, the distribution of electricity amounted to a total of 7.9 TWh (6.1 TWh). The increase was mainly attributable to the acquisition of Wesertal. Fortum’s share in the electricity distribution of Birka Energi AB was 4.3 TWh.
The number of Fortum’s electricity distribution customers, including the 50% of Birka Energi AB, was 923,000 (704,000).
Fortum is in the process of merging Koillispohjan Sähkö Oy, Tuusulanjärvi Energy Ltd and the electricity distribution of Länsivoima Oyj into one electricity distribution performance unit.
Distribution prices of electricity were stable.
Energy House
Fortum Energy House’s operations cover the sales and marketing of electricity and direct sales of petroleum products in Finland. Electricity sales of Länsivoima were transferred to Fortum Energy House from the beginning of May. This led to a reorganisation of the operations. The workforce of Fortum Energy House will be reduced by about 50 over the remainder of the year.
Service and Engineering
The availability of power plants operated by Fortum Service continued to be excellent. Orders outside the Group showed a favourable trend.
At the end of the review period, the volume of outstanding orders of Fortum Engineering totalled EUR 672 million (EUR 675 million at the end of 1999). The value of new orders totalled EUR 285 million in the review period.
Interim financial statements are unaudited.
APPENDICES
Consolidated income statement, net sales and operating profit by segments, consolidated balance sheet, key ratios, contingent liabilities, and quarterly net sales and operating profit. Deliveries of petroleum products refined by Fortum by product group and area, electricity and heat sales by area, electricity distribution by area, and the number of electricity distribution customers by area.
Espoo 7 August 2000 Fortum Corporation Board of Directors
APPENDICES
Deliveries of petroleum products refined by Fortum by product group (thousand tonnes)
4-6/00 1-6/00 4-6/99 1-6/99
Gasoline 1,031 1,955 1,046 2,021 Diesel 754 1,396 615 1,190 Aviation gasoline 213 398 291 531 Light fuel oil 327 819 355 932 Heavy fuel oil 255 519 213 476 Other 573 934 473 1,019
Total 3,153 6,021 2,993 6,169
Deliveries of petroleum products refined by Fortum by area (thousand tonnes)
4-6/00 1-6/00 4-6/99 1-6/99
Finland 1,782 3,634 1,822 3,758 Sweden 426 793 533 1,089 Baltic countries and Russia 18 69 84 179 USA and Canada 288 521 239 550 Other countries 639 1,004 315 593
Total 3,153 6,021 2,993 6,169
Electricity sales by area (TWh)
4-6/00 1-6/00 4-6/99 1-6/99
Nordic countries total 9.7 21.4 9.2 21.3 Sweden* 3.2 6.7 2.7 6.3 Finland 6.5 14.7 6.5 15.0 Germany 0.8 1.7 0.1 0.1 UK 0.5 1.0 0.5 1.0 Estonia 0.0 0.1 0.0 0.0
Total 11.0 24.2 9.8 22.4
* Includes 50% of Birka Energi AB’s electricity sales.
Heat sales by area (TWh)
4-6/00 1-6/00 4-6/99 1-6/99
Sweden* 0.8 2.4 0.6 2.2 Finland 2.3 6.5 2.5 6.2 Other countries 0.1 0.3 0.0 0.0
Total 3.2 9.2 3.2 8.5
* Includes 50% of Birka Energi AB’s heat sales.
Electricity distribution by area (TWh)
4-6/00 1-6/00 4-6/99 1-6/99
Sweden* 1.8 4.3 1.8 4.0 Finland 1.1 2.2 0.8 2.1 Germany 0.7 1.4 0.0 0.0 Estonia 0.0 0.1 0.0 0.0
Total 3.6 7.9 2.6 6.1 * Includes 50% of Birka Energi AB’s electricity distribution.
Number of electricity distribution customers by area
30 June 2000 30 June 1999
Sweden* 454,000 427,000 Finland 279,000 277,000 Germany 171,000 0 Estonia 19,000 0
Total 923,000 704,000
* Includes 50% of Birka Energi AB’s electricity distribution customers. FORTUM GROUP JANUARY-JUNE 2000 Interim financial statements are unaudited.
CONSOLIDATED INCOME STATEMENT Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec EUR mill. 2000 1999 2000 1999 1999
Net sales 2 580 1 912 5 105 3 811 8 232 Share of profits (losses) of associated companies 4 14 16 30 36 Other operating income 42 29 54 79 187 Depreciation, amortisation and write-downs -138 -130 -275 -257 -523 Other operating expenses -2 263 -1 721 -4 478 -3 319 -7 227
Operating profit 225 104 422 344 705 Financial income and expenses -98 -49 -152 -100 -211
Profit before extraordinary items 127 55 270 244 494 Extraordinary income - 324 - 324 493 Extraordinary expenses -8 0 -8 0 -33
Profit before taxes 119 379 262 568 954
Income taxes 1) -36 -68 -62 -114 -229 Minority interests -1 -5 -4 -17 -22
Net profit for the period 82 306 196 437 703
Earnings per share, EUR 0,11 0,05 0,26 0,22 0,41 Average number of shares, 1,000 shares 784 783 784 783 784 783
1) Accrued taxes for the financial period.
NET SALES BY BUSINESS OPERATIONS (SEGMENTS) Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec EUR mill. 2000 1999 2000 1999 1999
Oil and Gas Upstream 2) 133 51 348 96 366 Oil Refining and Marketing 1 909 1 154 3 578 2 102 5 064 Power and Heat Generation and Sales 384 294 887 733 1 443 Electricity Distribution 106 77 237 176 347 Service 73 65 151 128 290 Engineering 155 111 273 189 479 Other Operations 28 40 53 65 137 Internal invoicing -208 -155 -422 -278 -717
Total 2 580 1 637 5 105 3 211 7 409 Discontinued Operations 3) - 275 - 600 823
Net sales 2 580 1 912 5 105 3 811 8 232
2) Including natural gas trading 3) Includes Gasum, Enermet, Infrarödteknik and Neste Chemicals in 1999.
19.8.2002 FORTUM GROUP JANUARY-JUNE 2000 Interim financial statements are unaudited.
OPERATING PROFIT BY BUSINESS OPERATIONS (SEGMENTS) Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec EUR mill. 2000 1999 2000 1999 1999
Oil and Gas Upstream 4), 5) 40 9 85 10 82 Oil Refining and Marketing 137 40 141 46 182 Power and Heat Generation and Sales 46 19 146 177 236 Electricity Distribution 19 17 68 59 115 Service -2 0 2 312 Engineering -4 -5 -6 -5 12 Other Operations -10 -10 -11 -4 -24 Eliminations -1 3 -3 -7 -17
Total 225 73 422 279 598 Discontinued Operations 6) - 31 - 65 107
Operating profit 225 104 422 344 705
4) Including natural gas trading 5) Treatment of Gasum has been changed from a subsidiary company to an associated company in 1999. 6) Includes the impact of change in Gasum holding, Enermet, Infrarödteknik, Neste Chemicals and Asko in 1999.
CONSOLIDATED BALANCE SHEET Jun 30 Jun 30 Dec 31 EUR mill. 2000 1999 1999
ASSETS
Fixed assets and other long-term investments 12 245 9 931 9 724 Current assets Inventories 692 640 661 Receivables 1 617 1 272 1 379 Cash and cash equivalents 428 627 775 Total 2 737 2 539 2 815
Total 14 982 12 470 12 539
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity Share capital 2 668 2 640 2 640 Other equity 2 136 1 770 2 065 Total 4 804 4 410 4 705 Minority interests 1 329 148 126 Provisions for liabilities and charges 85 74 83 Deferred tax liabilities 1 243 1 128 1 128 Long-term liabilities 4 454 4 666 3 644 Short-term liabilities 3 067 2 044 2 853
Total 14 982 12 470 12 539
Equity per share, EUR 6,12 5,62 6,00 Number of shares, 1,000 shares 784 783 784 783 784 783
19.8.2002 FORTUM GROUP JANUARY-JUNE 2000 Interim financial statements are unaudited.
KEY RATIOS Jun 30 Jun 30 Dec 31 2000 1999 1999 Interest-bearing net debt, EUR mill. 4 921 4 277 3 818 Investments, EUR mill. 2 711 609 1 059 Average number of employees 16 217 18 348 17 461 Return on capital employed, % 8,4 7,5 8,4 Return on shareholders' equity, % 6,9 7,1 7,7 Gearing, % 80 94 79 Equity-to-assets ratio, % 41 37 39
CONTINGENT LIABILITIES Jun 30 Jun 30 Dec 31 EUR mill. 2000 1999 1999 Contingent liabilities On own behalf For debt Pledges 292 410 290 Real estate mortgages 316 160 134 Company mortgages 27 47 44 Other mortgages 58 58 54 For other commitments Pledges 67 71 86 Real estate mortgages 36 143 96 Company mortgages - -6 Sale and leaseback 18 16 28 Other contingent liabilities 785 738 748 Total 1 599 1 643 1 486
On behalf of associated companies Pledges - -4 Real estate mortgages - -1 Guarantees 412 273 261 Bill liabilities 1 -- Total 413 273 266
On behalf of persons referred to in § 11:7 of the Companies Act Guarantees - 00
On behalf of others Pledges 1 12 0 Real estate mortgages 5 00 Company mortgages 6 -- Guarantees 178 39 91 Other contingent liabilities 3 37 2 Total 193 88 93
Total 2 205 2 004 1 845
Operating lease liabilities Due within a year 64 46 50 Due after a year 169 156 138 Total 233 202 188
Finance leases have been recognised as assets and liabilities.
Liability for nuclear waste disposal 471 459 471 Share of reserves in the Nuclear Waste Disposal Fund -385 -372 -385 Liabilities in the balance sheet 7) 87 87 87 Excess of security given over obligations 1 -1
7) Mortgaged bearer papers as security
19.8.2002 FORTUM GROUP JANUARY-JUNE 2000 Interim financial statements are unaudited.
Derivatives Jun 30 Jun 30 Dec 31 2000 1999 1999 Interest and currency Contract Fair Not Contract Fair Not Contract Fair Not derivatives or value recog- or value recog- or value recog- EUR mill. notional nised notional nised notional nised value as an value as an value as an income income income Forward rate agreements ------Interest rate swaps 3 795 42 51 1 368 -4 5 1 975 0 17 Purchased interest rate options -- -1600200 Written interest rate options -- -264 0 0 - - -
Forward foreign exchange contracts 8),9) 2 443 14 -17 1 777 -10 -17 1 767 -18 -19 Currency swaps 1 899 25 -34 579 13 -25 885 1 -27 Purchased currency options 84 0 0 91 -1 0 54 -1 -1 Written currency options 62 -1 -1 71 -2 -3 54 -1 -1
8) Incl. also closed forward and future positions 9) Incl. contracts used for equity hedging
Oil futures and forward Volume Fair Not Volume Fair Not Volume Fair Not instruments 1000 bbl value recog- 1000 bbl value recog- 1000 bbl value recog- EUR mill. nised EUR mill. nised EUR mill. nised as an as an as an income income income EUR mill. EUR mill. EUR mill. Sales contracts 13 263 -19 -19 22 614 -25 -25 22 154 -26 -4 Purchase contracts 14 083 25 25 15 847 9 9 17 063 7 3 Purchased options 3 206 -1 -1 1 702 -2 -2 1 477 0 0 Written options 1 952 -3 -3 2 975 2 2 1 546 -1 0 Electricity derivatives Volume Fair Not Volume Fair Not Volume Fair Not TWh value recog- TWh value recog- TWh value recog- EUR mill. nised EUR mill. nised EUR mill. nised as an as an as an income income income EUR mill. EUR mill. EUR mill. Sales contracts 30 31 31 21 81 81 21 44 44 Purchase contracts 26 -52 -38 23 -95 -94 21 -61 -43 Purchased options 00 0 1 00000 Written options 31 1 4-1-1200
In addition to other contingent liabilities, a guarantee has been given on behalf of Gasum Oy, which covers 75% of the natural gas commitments arising from the natural gas supply agreement between Gasum and OOO Gazexport. The fair values of derivative contracts subject to public trading are based on market prices as of the balance sheet date. The fair values of other derivatives are based on the present value of cash flows resulting from the contracts, and, in respect of options, on evaluation models. Derivative contracts are mainly used to manage the group's currency, interest rate and price risk
19.8.2002 FORTUM GROUP JANUARY-JUNE 2000 Interim financial statements are unaudited.
QUARTERLY NET SALES BY BUSINESS OPERATIONS (SEGMENTS) EUR mill. I/99 II/99 III/99 IV/99 1999 I/00 II/00
Oil and Gas Upstream 10) 45 51 107 163 366 215 133 Oil Refining and Marketing 948 1 154 1 360 1 602 5 064 1 669 1 909 Power and Heat Generation and Sales 439 294 305 405 1 443 503 384 Electricity Distribution 99 77 73 98 347 131 106 Service 63 65 68 94 290 78 73 Engineering 78 111 105 185 479 118 155 Other Operations 25 40 34 38 137 25 28 Internal invoicing -123 -155 -184 -255 -717 -214 -208 Total 1 574 1 637 1 868 2 330 7 409 2 525 2 580 Discontinued Operations 11) 325 275 209 14 823 -- Net sales 1 899 1 912 2 077 2 344 8 232 2 525 2 580
10) Including natural gas trading 11) Includes Gasum, Enermet, Infrarödteknik and Neste Chemicals in 1999.
QUARTERLY OPERATING PROFIT BY BUSINESS OPERATIONS (SEGMENTS) EUR mill. I/99 II/99 III/99 IV/99 1999 I/00 II/00
Oil and Gas Upstream 12),13) 1 9 32 40 82 45 40 Oil Refining and Marketing 6 40 87 49 182 4 137 Power and Heat Generation and Sales 158 19 -1 60 236 100 46 Electricity Distribution 42 17 18 38 115 49 19 Service 3 0 -1 10 12 4-2 Engineering 0 -5 5 12 12 -2 -4 Other Operations 6 -10 -5 -15 -24 -1 -10 Eliminations -10 3 -4 -6 -17 -2 -1 Total 206 73 131 188 598 197 225 Discontinued Operations 14) 34 31 47 -5 107 -- Operating profit 240 104 178 183 705 197 225
12) Including natural gas trading 13) Treatment of Gasum has been changed from a subsidiary company to an associated company in 1999. 14) Includes the impact of change in Gasum holding, Enermet , Infrarödteknik, Neste Chemicals and Asko in 1999.
As a change to the accounting policy, deferred tax liabilities due to the allocated goodwill are entered in the consolidated balance sheet under fixed assets and deferred tax liabilities. The impact of the change on the operating profit of the review period was EUR -10 million and on the total assets EUR 494 million. This change in the accounting policy has no effect on the net profit for the period. The impacts of these changes have been accounted for in respect of the comparable periods.
1 EUR = 5,94573 FIM
19.8.2002