Annual Report Norske Skog

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Annual Report Norske Skog 09 ANNUAL REPORT NORSKE SKOG BOD report Sustainability 22 and accounts 96 report KEY FINANCIAL FIGURES DEFINITIONS 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 Income statement (NOK million) Operating revenue 20 362 26 468 27 118 28 812 25 726 25 302 24 068 23 471 30 354 26 635 Gross operating earnings 1 2 185 2 723 3 932 4 704 3 957 4 353 4 686 5 198 8 419 6 599 Operating earnings (1 325) (1 407) 677 (2 527) 630 757 1 536 1 306 5 096 4 211 Earnings before financial expenses 2 (1 209) (1 242) 785 (2 275) (51) 868 1 383 1 833 5 581 4 575 Profit/loss before income taxes (1 019) (2 779) 235 (3 480) (1 004) 210 770 806 3 894 3 021 Net profit/loss for the year (1 400) (2 765) (683) (3 017) (848) 629 406 1 168 2 660 2 184 Balance sheet (NOK million) Non-current assets 23 546 26 980 29 307 37 577 43 740 36 861 39 219 38 197 45 417 43 717 Current assets 9 609 18 211 13 953 7 653 8 293 7 238 7 119 6 769 10 855 17 510 Total assets 33 155 45 191 43 260 45 230 52 033 44 099 46 338 44 966 56 272 61 227 Total equity 12 015 13 632 15 957 18 550 22 679 18 894 19 416 17 921 19 526 22 351 Non-current liabilities 17 316 23 277 21 533 18 802 21 700 20 052 21 402 18 814 30 858 31 906 Current liabilities 3 824 8 282 5 770 7 878 7 654 5 153 5 520 6 210 5 888 6 970 Total equity and liabilities 33 155 45 191 43 260 45 230 52 033 44 099 46 338 42 945 56 272 61 227 Net interest-bearing debt 9 595 14 047 16 408 17 320 19 063 16 871 17 759 18 204 22 820 20 535 Profitability Gross operating margin % 3 10.73 10.30 14.50 16.30 15.40 17.20 19.50 22.10 27.70 24.80 Net operating margin % 4 (6.51) (5.30) 2.50 (8.80) 2.40 3.00 6.30 5.60 16.80 15.80 Net profit margin % 5 (6.88) (10.40) (2.30) (9.70) (3.30) 2.60 1.70 5.00 8.20 7.40 Return on assets % 6 (3.09) (2.80) 1.80 (4.70) (0.10) 1.90 3.00 3.60 9.50 10.60 Return on equity % 7 (10.92) (18.70) (4.00) (14.60) (4.10) 3.30 2.20 6.30 12.70 12.80 Equity ratio % 8 36.24 30.20 36.90 41.50 43.60 42.80 41.90 39.90 34.70 36.50 Gearing 9 0.80 1.05 1.05 0.96 0.84 0.89 0.91 1.02 1.17 0.92 Net earnings per share (NOK) 10 (6.36) (14.33) (3.26) (14.84) (5.98) 4.95 3.04 8.79 20.68 19.17 Net earnings per share fully diluted (NOK) 10 (6.36) (14.33) (3.26) (14.84) (5.98) 4.95 3.04 8.79 20.68 19.17 Cash flow per share (NOK) 11 8.95 10.43 11.43 14.60 21.42 22.04 22.45 27.89 58.47 48.18 Cash flow per share fully diluted (NOK) 11 8.95 10.43 11.43 14.60 21.42 22.04 22.45 27.89 23.29 48.18 Liquidity Liquid assets (NOK) 12 4 241 6 195 1 886 485 902 889 930 868 4 158 8 629 Cash flow (NOK) 13 1 697 1 977 2 166 2 763 3 061 2 948 2 973 3 687 7 052 4 922 Current ratio 14 2.51 2.20 2.42 0.97 1.08 1.40 1.29 1.09 1.84 2.51 Definitions main financial figures: 1. Gross operating earnings = Operating earnings + Ordinary depreciation + Restructuring expenses + Other gains and losses + Impairments 2. Earnings before financial expenses = Operating earnings + Interest income + Share of profit in affiliated companies 3. Gross operating margin = Gross operating earnings : Operating revenue 4. Net operating margin = Operating earnings : Operating revenue 5. Net profit margin = Net profit/loss for the year : Operating revenue 6. Return on assets = Earnings before financial expenses : Total assets (average) 7. Return on equity = Net profit/loss for the year : Equity (average) 8. Equity ratio = Equity : Total assets 9. Gearing = Net interest-bearing debt : Equity 10. Net earnings per share = Net profit/loss for the year : Average number of shares 11. Cash flow per share after tax = Cash flow : Average number of shares 12. Liquid assets = Cash and bank deposits + Short term investments 13. Cash flow = Net cash flow from operating activities (from statement of cash flow) 14. Current ratio = Current assets : Current liabilities 2 // Norske Skog // Annual Report 2009 INTRODUCTION THE WORLD OF NORSKE SKOG 1 3 2 7 6 4 5 8 12 13 10 9 11 PRODUCTION capaciTY PER BUSINESS UNIT 31.12.2009 SC LWC MFC Newsprint (magazine (magazine (magazine Directory (including improved NP) paper) paper) paper) paper Total 1 Norske Skog Skogn, Norway 600 000 600 000 2 Norske Skog Saugbrugs, Norway 550 000 550 000 3 Norske Skog Follum, Norway 150 000 140 000 290 000 4 Norske Skog Golbey, France 640 000 640 000 5 Norske Skog Bruck, Austria 128 000 275 000 403 000 6 Norske Skog Walsum, Germany 435 000 435 000 7 Norske Skog Parenco, The Netherlands 245 000 245 000 Total Europe 1 763 000 550 000 710 000 140 000 0 3 163 000 8 Norske Skog Singburi, Thailand 130 000 130 000 Total Asia 130 000 0 0 0 0 130 000 9 Norske Skog Tasman, New Zealand 320 000 320 000 10 Norske Skog Albury, Australia 270 000 270 000 11 Norske Skog Boyer, Australia 290 000 290 000 Total Australasia 880 000 0 0 0 0 880 000 12 Norske Skog Pisa, Brazil 185 000 185 000 13 Norske Skog Bio Bio, Chile 60 000 65 000 125 000 Total South America 245 000 0 0 0 65 000 310 000 Total 3 018 000 550 000 710 000 140 000 65 000 4 483 000 Norske Skog // Annual Report 2009 // 3 contents Introduction Key financial figures 2 2 Production capacity per business unit 31.12.2009 3 Events 2009 5 Comments from the CEO 6 Market and costs Market development in 2009 7 7 Norske Skog products 8 Capital market Continued focus on debt reduction 9 9 Norske Skog´s shareholder policy 10 Principal shareholders at 31.12.2009 12 Key figures related to shares 13 Corporate governance Corporate governance in Norske Skog 14 14 The members of the board 18 Corporate management 19 Shares owned by members of corporate bodies 20 Articles of association for Norske Skogindustrier ASA 21 Report of the board of directors and accounts Report of the board of directors 22 22 Accounts group 32 Accounts Norske Skogindustrier ASA 78 Sustainability report Introduction 96 96 Norske Skog´s environmental policy 97 Sustainable raw materials 98 This annual report is printed on Energy consumption 100 65 g/m2 Norset Gloss from Norske Skog greenhouse gas emissions 101 Norske Skog Follum. Continuously improving our production processes 103 The cover is printed on The Norske Skog water profile 104 200 g/m2 Cyclus Print. Transport 105 Emissions, discharges and waste 106 Design & Layout: Environment-related investments 108 Vestfjorden Grafisk AS Boyer conversion project 109 Mill figures 2009 112 Photo: CF-Wesenberg/kolonihaven.no (Front page, page 6, 18, 19, 77, 106 and 119) Other photos: Norske Skog Corporate social responsibility Norske Skog´s corporate social responsibility 114 Print: Ålgård Offset AS 114 Key people figures 117 4 // Norske Skog // Annual Report 2009 INTRODUCTION events//2009 January June october Chairman Kim Wahl announced that he will The biggest shareholder in Norske Skog at Norske Skog ranked as no. 1 in Nordic not stand for re-election. Norske Skog’s CEO that time, Unionen AS, sold all their shares. climate reporting by the Carbon Disclosure Christian Rynning-Tønnesen named CEO Øystein Stray Spetalen withdrew as deputy Project. The Norwegian government of the year in the European pulp and paper chair an member of the board of directors proposed to add auto diesel tax on bio fuel. industry. in Norske Skog. Svein Rennemo was elected new deputy chair Norske Skog launched a number of new noveMber February measures to reduce cost. One paper machine at Norske Skog Parenco in The Netherlands The financial results for the third quarter Norske Skog presented a satisfactory finan- was closed and additional downsizing in par- were announced. The result was slightly cial result for the forth quarter of 2008. ticular at Norske Skog Parenco and Norske better than the second quarter results mainly The result was significantly impacted by a Skog Follum were announced. due to somewhat higher volumes and contin- weakening in the Norwegian kroner (NOK) The group placed a five year bond of NOK ued positive impact from cost cuts. The result through the latter part of 2008. Eivind 750 million. This constituted 580 million was still considered to be too weak. CEO Reiten was nominated as new chair of the on a 15.5 per cent fixed interest rate and 170 Christian Rynning-Tønnesen announced board of directors.
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