Annual Review 2019 Raisio Plc on a Path to Growth
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Annual Review 2019 Raisio plc On a path to growth Good healthy food has already been at Growth and profitability of Raisio’s heart for 80 years. We make genuine Raisio’s core business food for a smooth everyday life. Our goal is Business profitability shifted to a growth trend in all market areas. growth: the growth of the company, expertise New consumers were gained for Benecol products. and well-being. We want to become an Continued sales growth for Elovena products. increasingly international company focusing New market areas were achieved for Raisioaqua. on healthy food. Key Figures 2019 236.3 27.3 19.5 13.9% meur meur meur ROIC 2019 Net sales 2019 EBIT 2019 Investments 2019 2018 228.2 25.6 5.6 8.1% meur meur meur ROIC 2018 Net sales 2018 EBIT 2018 Investments 2018 Net sales distribution by market area: 2018 2019 Finland 37.7 % Finland 36.9 % Great Britain 26.9 % Great Britain 23.4 % Russia 10.1 % Russia 14.2 % Other Europe 23.3 % Other Europe 23.4 % Rest of the world 2.0 % Rest of the world 2.2 % Raisio’s years of growth 2019 2020 2021 Secure the growth Oat-based value-added pro- Expansion into and profitability ducts to be the other pillar for new marrkets of the core business Raisio’s international business. Forerunner in responsibility · Acquisitions and partnerships An attractive employer · Operational agility HEALTH AS BALANCE CLIMATE CHANGE AND Aiming for holistic RESOURCE SCARCITY well-being with Focus on environmen- naturally healthy and tally friendly packages, functional food, “free carbon neutrality and from” products natural raw materials. SMALLER WORLD AND CHANGING FOOD Mega- TRENDS Increasing interest in trends plant-based food and supporting innovative products Raisio’s growth CONSCIOUS CONSUMERS Growing demand for transparent food chain and sustainable brands Our values COURAGE FAIRNESS DRIVE Together, we are building the new Raisio: our values – courage, fairness and drive – guide us towards our target culture. 4 FINANCIAL STATEMENTS 2019 Board of Directors’ Report and Financial Statements 2019 Contents Board of Directors’ report for 2019 ......................................5 5.4 Financial risk management .............................................................................. 58 Shares and shareholders ............................................................................................. 14 5.4.1 Currency risk ............................................................................................. 58 Key figures and reconciliations ................................................................................. 20 5.4.2 Liquidity and solvency risk .................................................................. 61 Consolidated financial statements .................................... 25 5.4.3 Interest rate risk ...................................................................................... 62 Consolidated income statement (IFRS) ................................................................. 25 5.4.4 Credit and counterparty risk .............................................................. 63 Consolidated comprehensive income statement (IFRS) ................................ 25 6 Current taxes and deferred tax ................................................................64 Consolidated balance sheet....................................................................................... 26 6.1 Income taxes ........................................................................................................... 64 Calculation of changes in consolidated equity .................................................. 27 6.2 Deferred tax ............................................................................................................ 65 Consolidated cash flow statement ......................................................................... 28 6.3 Taxes related to the items of other comprehensive income ............... 66 Notes to the consolidated financial statements ........30 7 Equity .......................................................................................................................67 1 Accounting policies for the consolidated 7.1 Equity and equity funds ..................................................................................... 67 financial statements ........................................................................................30 7.2 Dividends .................................................................................................................. 68 1.1 Raisio Group ............................................................................................................ 30 7.3 Earnings per share ................................................................................................ 68 1.2 Accounting policies for the financial statements.................................... 30 8 Personnel and related parties ...................................................................69 1.3 Consolidation principles..................................................................................... 31 8.1 Employee benefits ................................................................................................ 69 1.4 Accounting policies calling for management’s judgement 8.2 Share-based payments ....................................................................................... 69 and main uncertainties related to the assessments ............................. 32 8.3 Related parties........................................................................................................ 71 1.5 Foreign currency transactions and translations ...................................... 33 8.3.1 Related party transactions .................................................................. 71 1.6 New and amended standards during the last financial period......... 33 8.3.2 Management’s employee benefits.................................................. 71 1.7 New and revised standards and interpretations applicable to 8.3.3 Pension and other benefits ................................................................ 71 future financial periods ...................................................................................... 34 9 Other notes ............................................................................................................ 72 2 Income and segment information ..........................................................35 9.1 Other notes .............................................................................................................. 72 2.1 Information by segment .................................................................................... 35 9.1.1 Other operating income and expenses ......................................... 72 2.2 Revenue ..................................................................................................................... 38 9.1.2 Provisions ................................................................................................... 72 2.2.1 Net sales ..................................................................................................... 38 10 Parent company financial statement (FAS) .......... 73 3 Group structure .................................................................................................40 3.1 Business acquisitions and divestments ....................................................... 40 Board’s proposal for the disposal of profit 3.2 Shares in associates ............................................................................................. 42 and signatures ................................................................................83 3.3 Subsidiaries and the non-controlling interest .......................................... 42 Auditor’s Report ...........................................................................84 4 Invested capital ...................................................................................................43 Statement of the Supervisory Board ............................... 87 4.1 Intangible assets ................................................................................................... 43 4.2 Research and development costs ................................................................... 44 4.3 Goodwill .................................................................................................................... 45 4.4 Impairment testing of goodwill and intangible assets with indefinite useful life .................................................................................. 45 4.5 Tangible assets ....................................................................................................... 46 4.5.1 Tangible assets......................................................................................... 48 4.5.2 Depreciation and impairment........................................................... 50 4.6 Impairment of intangible and tangible assets other than goodwill and assets with indefinite useful lives ...................................... 51 4.7 Equity investments ............................................................................................... 51 4.8 Inventories ............................................................................................................... 51 5 Financial items and risk management .................................................53 5.1 Financial income and expenses ...................................................................... 53 5.2 Financial assets