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Honkarakenne Oyj (HONBS.HE)

Helsinki - Helsinki Real-time price. Currency in EUR
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6.98-0.04 (-0.57%)
At close: 6:29PM EEST
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Previous close7.02
Open6.96
Bid6.98 x 0
Ask7.02 x 0
Day's range6.68 - 7.02
52-week range2.97 - 8.48
Volume20,288
Avg. volume28,048
Market cap40.917M
Beta (5Y monthly)1.34
PE ratio (TTM)14.54
EPS (TTM)0.48
Earnings date20 Aug 2020
Forward dividend & yield0.18 (2.56%)
Ex-dividend date19 Apr 2021
1y target est3.60
  • Globe Newswire

    HONKARAKENNE OYJ – MANAGERS’ TRANSACTIONS – SAARELAINEN, MARKO

    HONKARAKENNE OYJ Stock Exchange Release 19 March 2021 at 6:30 p.m. HONKARAKENNE OYJ – MANAGERS’ TRANSACTIONS – SAARELAINEN, MARKO Honkarakenne Oyj - Managers' Transactions ____________________________________________ Person subject to the notification requirement Name: Saarelainen, Marko Position: Chief Executive Officer Issuer: Honkarakenne Oyj LEI: 7437007POZXRBIWNJ629 Notification type: INITIAL NOTIFICATION Reference number: 7437007POZXRBIWNJ629_20210318161822_3 ____________________________________________ Transaction date: 2021-03-15 Venue: NASDAQ HELSINKI LTD (XHEL) Instrument type: SHARE ISIN: FI0009900104 Nature of the transaction: DISPOSAL Transaction details (1): Volume: 4 Unit price: 7.10 EUR (2): Volume: 12 Unit price: 7.10 EUR (3): Volume: 10 Unit price: 7.10 EUR (4): Volume: 13 Unit price: 7.10 EUR (5): Volume: 144 Unit price: 7.10 EUR (6): Volume: 13 Unit price: 7.10 EUR (7): Volume: 12 Unit price: 7.10 EUR (8): Volume: 4 Unit price: 7.10 EUR (9): Volume: 5 Unit price: 7.10 EUR (10): Volume: 150 Unit price: 7.10 EUR (11): Volume: 120 Unit price: 7.10 EUR (12): Volume: 119 Unit price: 7.10 EUR (13): Volume: 42 Unit price: 7.24 EUR (14): Volume: 562 Unit price: 7.24 EUR (15): Volume: 142 Unit price: 7.24 EUR (16): Volume: 83 Unit price: 7.24 EUR (17): Volume: 558 Unit price: 7.24 EUR (18): Volume: 48 Unit price: 7.26 EUR (19): Volume: 11 Unit price: 7.26 EUR (20): Volume: 147 Unit price: 7.26 EUR (21): Volume: 95 Unit price: 7.24 EUR (22): Volume: 74 Unit price: 7.24 EUR (23): Volume: 102 Unit price: 7.24 EUR (24): Volume: 693 Unit price: 7.24 EUR (25): Volume: 25 Unit price: 7.24 EUR (26): Volume: 156 Unit price: 7.24 EUR (27): Volume: 27 Unit price: 7.24 EUR (28): Volume: 32 Unit price: 7.24 EUR (29): Volume: 110 Unit price: 7.24 EUR (30): Volume: 519 Unit price: 7.24 EUR (31): Volume: 51 Unit price: 7.24 EUR (32): Volume: 43 Unit price: 7.24 EUR (33): Volume: 145 Unit price: 7.24 EUR (34): Volume: 214 Unit price: 7.24 EUR (35): Volume: 30 Unit price: 7.24 EUR Aggregated transactions (35): Volume: 4,515 Volume weighted average price: 7.22212 EUR ________________________________________ Transaction date: 2021-03-16 Venue: NASDAQ HELSINKI LTD (XHEL) Instrument type: SHARE ISIN: FI0009900104 Nature of the transaction: DISPOSAL Transaction details (1): Volume: 90 Unit price: 7.06 EUR (2): Volume: 122 Unit price: 7.06 EUR (3): Volume: 4,000 Unit price: 7.04 EUR (4): Volume: 20 Unit price: 7.06 EUR (5): Volume: 236 Unit price: 6.96 EUR (6): Volume: 50 Unit price: 6.94 EUR (7): Volume: 60 Unit price: 6.94 EUR (8): Volume: 940 Unit price: 6.94 EUR (9): Volume: 990 Unit price: 6.94 EUR (10): Volume: 10 Unit price: 6.94 EUR (11): Volume: 1 Unit price: 6.94 EUR (12): Volume: 257 Unit price: 6.94 EUR (13): Volume: 140 Unit price: 6.94 EUR (14): Volume: 117 Unit price: 6.94 EUR (15): Volume: 383 Unit price: 6.94 EUR (16): Volume: 115 Unit price: 6.94 EUR (17): Volume: 142 Unit price: 6.94 EUR (18): Volume: 149 Unit price: 6.94 EUR (19): Volume: 257 Unit price: 6.94 EUR (20): Volume: 20 Unit price: 6.94 EUR (21): Volume: 255 Unit price: 6.94 EUR (22): Volume: 629 Unit price: 6.94 EUR (23): Volume: 5 Unit price: 6.94 EUR (24): Volume: 10 Unit price: 6.94 EUR (25): Volume: 334 Unit price: 6.94 EUR (26): Volume: 109 Unit price: 6.94 EUR (27): Volume: 200 Unit price: 6.94 EUR (28): Volume: 7 Unit price: 6.94 EUR (29): Volume: 18 Unit price: 6.94 EUR (30): Volume: 462 Unit price: 6.94 EUR (31): Volume: 334 Unit price: 6.94 EUR (32): Volume: 352 Unit price: 7.00 EUR (33): Volume: 131 Unit price: 7.00 EUR (34): Volume: 2 Unit price: 7.00 EUR (35): Volume: 268 Unit price: 7.00 EUR (36): Volume: 135 Unit price: 7.00 EUR (37): Volume: 213 Unit price: 7.00 EUR (38): Volume: 104 Unit price: 7.00 EUR (39): Volume: 431 Unit price: 7.00 EUR (40): Volume: 1 Unit price: 7.00 EUR (41): Volume: 6 Unit price: 7.00 EUR (42): Volume: 60 Unit price: 7.00 EUR (43): Volume: 913 Unit price: 7.00 EUR (44): Volume: 101 Unit price: 7.00 EUR (45): Volume: 110 Unit price: 7.00 EUR (46): Volume: 105 Unit price: 7.00 EUR Aggregated transactions (46): Volume: 13,394 Volume weighted average price: 6.98543 EUR HONKARAKENNE OYJ FURTHER INFORMATION: Marko Saarelainen, President and CEO, tel. +358 40 542 0254, marko.saarelainen@honka.com DISTRIBUTION Nasdaq Helsinki Ltd Key media Financial Supervisory Authority www.honka.com Honkarakenne Ltd supplies high-quality, healthy and ecological log homes, holiday homes and public buildings. Its buildings are made from Finnish solid wood under the Honka® brand. The company has delivered over 85,000 buildings to more than 50 countries. We manufacture our home packages in Finland, at our own factory located in Karstula. In 2020, Honkarakenne Group’s consolidated net sales totalled EUR 52.9 million, of which exports accounted for 30%. www.honka.com

  • Demand for log cabins is rapidly growing: their cosy atmosphere has appeal – nostalgic hideaways have made a comeback
    Globe Newswire

    Demand for log cabins is rapidly growing: their cosy atmosphere has appeal – nostalgic hideaways have made a comeback

    Press release Honkarakenne Ltd. 18 February 2021 Demand for log cabins is rapidly growing: their cosy atmosphere has appeal – nostalgic hideaways have made a comeback Finns are longing to spend more time in their cabins: interest in holiday homes and cabin construction has grown strongly due to the coronavirus pandemic. According to fresh financial figures released by Honkarakenne, Finland's best-known log house manufacturer, revenue in Finland grew by 18% last year. Many familiar values have returned: peaceful getaways and closeness to nature are the priorities for holiday-homeowners. In response to this outbreak of ‘cabin fever’, Honkarakenne has revamped three nostalgic favourites and returned them to its villa collection. Traditional round logs have been replaced with a fresh look, and large windows connect the interiors with nature. The warm feel and efficient layout of the log cabins have been preserved. “Leisure-time builders are primarily seeking a connection with nature,” says Anne Mäkinen, Chief Architect of Honkarakenne. “Interiors open up to nature through large windows and the rooms offer views of the landscape’s fascinating, tiny details. Terraces are designed to include features such as summer kitchens, hot tubs and swimming pools. The focus is now on connecting spaces and functions at the boundary between indoors and out. Leisure housing supports wellbeing.” The roots of Honka's new villas lie in the popular Tähti models of recent years. Saimi, Aarni and Naava were designed according to builders’ wishes, bringing together Finns’ leisure-residence preferences. Well-sized, roofed terraces are now valued in addition to a spacious living room/kitchen and functional sleeping spaces. Terraces overlook the breathtaking scenery around the cabin. The models are ‘nest-like’ and cosy – these modern hideaways bring back childhood memories of family cabins. Interior designer Laura Seppänen favours timelessness: her interior design ideas for ecological log homes emphasise sustainability A nest-like architectural design can also be seen in modern log villas. Honkarakenne's new Halla follows the internationally popular ‘shell-structure’ model. A streamlined exterior and sloping roof provide shelter for walkways and terraces. “The Halla model combines the best aspects of clearly defined architecture and an ecological log home. A low, shell-like structure built on a single level provides an outstandingly elegant framework for interior design,” says Laura Seppänen, who has created a timeless interior design moodboard for Halla. The surface and furniture materials — their feel, colours and patterns — bring peace and balance inside, leaving the starring role to the landscape framed by the windows. The designer has paired wood with lively stone surfaces and warm earth tones. “As part of my design philosophy, I emphasise ecology, favour domestic know-how, and value materials that last both technically and visually. Timelessness is about the whole. It involves a harmonious interplay between the building, its surroundings and all rooms,” says Laura Seppänen. Halla is also the beginning of longer collaboration between the interior designer and Honka. “Honka and I share the same vision: to create beautiful and practical homes that favour natural materials,” she says. Laura Seppänen is also known for her recent initiative to develop transparency and cooperation between construction industry players, which has become a social media phenomenon. Launched in January, Halla's moodboard and the Honka Lux villa collection offer builders more holistic perspectives, as well as inspiration and support for interior design. Three interior design concepts have been created for the Honka Lux collection so that interior spaces, the building and nature form an integrated whole. Read the press release about Honka Lux here. Logs are increasingly popular as a building material The dream of villas or log houses built using Finnish wood was reflected in Honkarakenne's profit last year: The publicly listed family company’s total revenue increased by 11 percent. Interest in logs as a building material has continued to grow. At the end of the year, Finland's order backlog was 44% higher than a year earlier. About two-thirds of the revenue of this global expert in log-house building come from Finland. During its history of over 60 years, Honkarakenne has already delivered 85,000 log buildings to Finland and around the world. A stock exchange release on last year’s results can be found here. Images: https://drive.google.com/drive/folders/1sRVIas5w7jppQaL251yFWMpEFm6Hth3m?usp=sharing Honkarakenne Ltd supplies high-quality, healthy and ecological log homes, holiday homes and public buildings. Its buildings are made from Finnish solid wood under the Honka® brand. The company has delivered over 85,000 buildings to more than 50 countries. We manufacture our home packages in Finland, at our own factory located in Karstula. In 2020, Honkarakenne Group’s consolidated net sales totalled EUR 52,9 million, of which exports accounted for 30%. www.honka.com Additional information and interview requests Sanna Huovinen, Marketing Director, Honkarakenne Ltd, +358 (0)40 1978 797, sanna.huovinen@honka.com

  • Globe Newswire

    HONKARAKENNE OYJ'S FINANCIAL STATEMENTS BULLETIN 1 JANUARY - 31 DECEMBER 2020

    HONKARAKENNE OYJ FINANCIAL STATEMENTS BULLETIN 202018 February 2021 at 9:00 a.m. HONKARAKENNE OYJ'S FINANCIAL STATEMENTS BULLETIN 1 JANUARY - 31 DECEMBER 2020 Revenue (net sales) increased, and adjusted profit before taxes was at the previous year's level — the order book grew significantly in the second half of the year. SUMMARY Honkarakenne's revenue (net sales) increased by EUR 5.3 million and were 11 per cent higher than in the previous year. Adjusted operating profit and adjusted profit before taxes were at the same level as the year before. At the end of 2020 the order book was EUR 39.8 million, i.e. 44 per cent higher than at the end of the previous year. January - December 2020 The Honkarakenne Group's revenue (net sales) for January-December amounted to EUR 52.9 million (EUR 47.5 million in 2019). Revenue (net sales) increased by 11% compared to the previous year.The operating result was EUR 3.1 million (3.4) and the adjusted operating result was EUR 3.4 million (3.4). Profit before taxes was EUR 2.9 million (3.2) and the adjusted profit before taxes was EUR 3.2 million (3.2).Earnings per share were EUR 0.48 (0.40). July - December 2020 Honkarakenne Group's revenue (net sales) for July-December amounted EUR 30.3 million (EUR 25.8 million in 2019). Revenue (net sales) increased by 17% compared to the previous year.Operating profit was EUR 2.1 million (2.6). Adjusted operating profit was EUR 2.4 million (2.6).Profit before taxes was EUR 1.9 million (2.4). Adjusted profit before taxes was EUR 2.3 million (2.4).Earnings per share were EUR 0.37 (0.31). The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the financial year ended 31 December 2020. In addition, the Board of Directors proposes that a repayment of capital of EUR 0.18 per share be distributed from the invested unrestricted equity fund. Honkarakenne’s outlook is that revenue (net sales) will increase in 2021 and profit before taxes will be higher than in the previous year. At the end of December, the Group's order book stood at EUR 39.8 million, which is 44% higher than the order book of EUR 27.6 million in the corresponding period of the previous year. The order book includes orders whose delivery date falls within the next 24 months. Some orders may involve terms and conditions relating to financing or building permits. KEY FIGURES 7–12/ 2020 7–12/ 2019 1-12/ 2020 1-12/ 2019 Revenue (net sales), MEUR 30.3 25.8 52.9 47.5 Operating profit / loss, MEUR 2.1 2.6 3.1 3.4 Adjusted operating profit / loss, MEUR 2.4 2.6 3.4 3.4 Profit / loss before taxes, MEUR 1.9 2.4 2.9 3.2 Adjusted profit / loss before taxes, MEUR 2.3 2.4 3.2 3.2 Average number of employees 171 156 168 155 Average number of employees in person-years 161 142 153 139 Earnings per share, EUR 0.37 0.31 0.48 0.40 Equity ratio,% 56 56 Return on equity,% 21 20 Equity / share, EUR 2.49 2.14 Gearing ratio,% -23 -15 Honkarakenne Oyj's CEO Marko Saarelainen commented on the financial statements bulletin as follows: “Honkarakenne's sales have developed well despite the global pandemic, and this is particularly evident in the high volume of orders. We invested in digital marketing in our main market areas, and successfully replaced traditional customer interaction in sales with communication via digital channels and remote connections. The order book at the end of 2020 was almost EUR 40 million, i.e. 44 per cent higher than a year before. Revenue (net sales) from Finland increased. Both our consumer business and project business grew. Interest is continuously growing in logs as a building material and their use has clearly increased at project and area-plan construction sites. We also invested in developing our collections and launched new, impressive flagship models. Revenue (net sales) in terms of exports remained at the same level as in the previous year. The pandemic had a negative effect on export markets during most of the year. Activity at project sites repeatedly ground to a halt due to the consequent closures and restrictions. The negative effects were most pronounced in Asia, particularly China and Japan. Positive performance on the Russian market was gratifying. Revenue (net sales) in Russia were higher than in the previous year. In research and development, we focused on developing fire safety solutions and models for public buildings and integrating a smart building system with an HVAC system for log houses. Production development at the Karstula plant continued throughout the year and a new production line was introduced in December despite delays caused by the pandemic.” REVENUE (NET SALES) In 2020, the Honkarakenne Group's revenue (net sales) increased by 11 per cent to EUR 52.9 million (47.5). The Group's revenue (net sales) in the second half of 2020 increased by 17 per cent to EUR 30.3 million (25.8). Geographical breakdown of revenue (net sales): DEVELOPMENT IN REVENUE (NET SALES) Breakdown of revenue (net sales), % 1-12 /2020 1-12 /2019 Finland 70% 66% Export 30% 34% Total 100% 100% Revenue (net sales), MEUR 7-12 /2020 7-12 /2019 % change 1-12 /2020 1-12 /2019 % change Finland 20.8 16.8 24% 36.9 31.3 18% Export 9.5 9.1 5% 16.0 16.3 -2% Total 30.3 25.8 17% 52.9 47.5 11% Finland also includes billet sales and the sale of process byproducts for recycling. Exports include all other countries except Finland. At the end of December, the Group's order book was 44% higher than a year before. The order book was EUR 39.8 million at the end of the year and EUR 27.6 million in the corresponding period of the previous year. DEVELOPMENT OF PROFIT AND PROFITABILITY The operating result for July-December was EUR 2.1 million (2.6) and the result before taxes was EUR 1.9 million (2.4). The adjusted operating result for July-December was EUR 2.4 million (2.6) and the adjusted result before taxes was EUR 2.3 million (2.4). The operating result for the entire year 2020 was EUR 3.1 million (3.4) and the result before taxes was EUR 2.9 million (3.2). The adjusted operating result for the entire year 2020 was EUR 3.4 million (3.4) and the adjusted result before taxes was EUR 3.2 million (3.2). In 2020, adjustment items amounted to EUR 0.3 million (0.0), consisting of production reorganisation costs. Reorganisation costs consisted of salary and other personnel costs related to the notice period for redundancies. Profit development and profitability were positively affected by growth in net sales, especially in Finland and Russia. The annual result was burdened by higher marketing investments and additions to the salaried employees of organisation. FINANCING AND INVESTMENT At the end of the review period, Honkarakenne's financial position was strong, with the Group's equity ratio being 56% (56%). The gearing ratio was negative and was -23% (-15%). The Group's net financial liabilities were EUR -3.3 (-1.9) million, i.e. the Group's liquid assets exceeded financial liabilities. Liquid assets amounted to EUR 7.0 million (7.1). In addition, the Group has an overdraft facility of EUR 3.0 (4.5) million, which was not in use at the end of this financial year or the previous financial year. In 2020, the company continued with the production line modernisation begun in the previous year, which was reflected in investments. Progress was made with this investment despite delays, due to the pandemic, in the delivery and installation of equipment for the new production line. The renewed production line began operating in late 2020. Some additional investments will be made in the new line in 2021. Investments in production have received support from the European Regional Development Fund (ERDF) and the Sustainable Growth and Jobs 2014-2020 - Finnish Structural Funds programme. The Group's gross investments in 2020 were EUR 4.1 million (3.2), excluding right-of-use assets in accordance with IFRS 16 and received investment grants. The largest investments were made in developing production, and the company developed several systems for streamlining operations. PRODUCTS AND MARKET AREAS Revenue (net sales) developed positively in Finland. Both full-year, and second-half revenue (net sales) in particular, grew significantly compared to the previous year. Both our consumer business and project business grew. Interest has continued to grow in logs as a building material, which can be seen in the increasingly frequent preference for logs on housing cooperative and holiday home construction sites. In addition, tenders for school construction increasingly involve log buildings. There is clear growth in wood construction, which has also been taken into account in zoning. We added impressive flagship models and efficient room layout and residential solutions to our collection. In Finland, marketing focused on influencer marketing, in particular, and digital marketing was developed. Development of both service packages and the dealer network continued. The end-of-year order book in Finland was significantly higher than a year before. In exports, full-year revenue (net sales) decreased by 2 per cent, but revenue (net sales) in the second half of the year were 5 per cent higher than for 2019. All market areas were affected throughout most of the year by the coronavirus epidemic, with some project sites being repeatedly brought to a standstill by the related closures and restrictions. The negative effects were most pronounced in Asia, particularly China and Japan. The Russian market developed better than expected and revenue (net sales) in Russia were higher than in the previous year. In terms of marketing, we developed our digital marketing, and in sales replaced our traditional customer interaction with contacts via digital channels and remote connections. Despite the coronavirus, export order volumes were significantly higher than in the preceding year. SEASONAL NATURE OF OUR BUSINESS Honkarakenne operates in a clearly seasonal industry. In Finland in particular, construction is concentrated in the summer season, with more deliveries in the summer and autumn than in the winter season. The company uses various marketing measures and export activities to balance seasonality. In 2020, Honkarakenne conducted co-operation negotiations in preparation for the seasonal variations typical of the industry. It was agreed that employees would work shorter weeks. RESEARCH AND DEVELOPMENT In research and development, we particularly focused on developing fire safety solutions and models that enable the construction of public buildings from logs, and on solutions that integrate smart building systems with HVAC systems for log houses. The Group's R&D expenditure in January-December totalled 0.4% of revenue (net sales) (0.5%). The Group did not capitalise any research and development costs during the financial year. EMPLOYEES Measured in person-years, the Group had an average of 153 employees (139) during the year. This represented an increase of 14 employees compared to the corresponding period of the previous year. The Group employed an average of 168 (155) people in 2020. At the end of the year, the Group had 168 (158) employees. In October 2020, the company announced the start of co-operation negotiations related to a planned reorganisation of production. In December, after the end of the negotiations, the company made a decision on the reorganisation, content and scope of production. During the reorganisation, the company dismissed 11 employees and subjected 15 employment contracts to redundancy-based provisional changes. EXECUTIVE GROUP There were several changes in the company's executive group in 2020. In May, the company announced that Vice President, Production Jari Fröberg was leaving the company. In December, it announced that Jari Noppa, Vice President, Consumer Business, Finland and Sweden, would leave Honkarakenne and Marko Saarelainen, President and CEO, would take charge of sales of both domestic and export operations until further notice. At the same time, in December, the company announced that Plant Manager Juha-Matti Hanhikoski (36) had been appointed Honkarakenne's Vice President, Production and a member of the Executive Group. At the end of 2020, Honkarakenne's Executive Group consisted of: Marko Saarelainen, President and CEO; Leena Aalto, Vice President, Finance - CFO; Juha-Matti Hanhikoski, Vice President, Production; and Sanna Huovinen, Vice President, Marketing. In January 2021, Honkarakenne announced that Vice President, Finance - CFO Leena Aalto was taking up a position with another organisation. Leena Aalto will continue as Vice President, Finance - CFO until the end of February 2021. HONKARAKENNE CORPORATION'S 2020 ANNUAL GENERAL MEETING, BOARD OF DIRECTORS AND AUDITORS Honkarakenne Oyj's Annual General Meeting was held at Honkarakenne's Tuusula office on 29 May 2020. The Annual General Meeting approved the financial statements of the parent company and the Group and discharged the members of the Board of Directors and the President and CEO from liability for 2019. The Annual General Meeting decided that no dividend be distributed for the financial year 2019. In addition, the Annual General Meeting decided that a repayment of capital of EUR 0.12 per share be distributed from the invested unrestricted equity fund. Timo Kohtamäki, Arimo Ristola, Helena Ruponen, Kari Saarelainen and Kyösti Saarimäki were re-elected to the company's Board of Directors. At the Board's inaugural meeting, Arimo Ristola was elected Chairman of the Board. At the same meeting, the Board decided not to set up committees. Ernst & Young Oy was re-elected as the auditor, with Elina Laitinen, Authorised Public Accountant, as the principal auditor. AUTHORISATIONS OF THE BOARD OF DIRECTORS On 29 May 2020, the Annual General Meeting decided that the Board of Directors be authorised to buy back a maximum of 400,000 of the company's own B shares with the company's unrestricted equity. In addition, the Annual General Meeting authorised the Board of Directors to decide on a share issue, either against payment or free of charge, and the issuance of special rights, entitling to shares referred to in Chapter 10, Section 1 of the Limited Liability Companies Act, in one or more tranches. Pursuant to the authorisation, the Board of Directors may issue new shares and/or dispose of a maximum of 1,500,000 of the old class B shares held by the company, including those shares that may be issued under special rights. However, both of these authorisations shall be valid until the next Annual General Meeting, but expire on 30 June 2021 at the latest. SHARES, SHARE CAPITAL AND TREASURY SHARES During the review period, Honkarakenne Oyj's total number of shares was 6,211,419 of which 300,096 are Class A shares and 5,911,323 were Class B shares. The company's share capital did not change and was EUR 9,897,936.00. Each Class B share confers one (1) vote and each Class A share confers twenty (20) votes, so the total number of votes conferred by all Honkarakenne shares during the review period was 11,913,243. Honkarakenne's Class B shares are listed on Nasdaq Helsinki Oy's Small Cap list under the trading symbol HONBS. The highest price of the listed B share was EUR 4.43, the lowest EUR 2.32 and the closing price for the review period was EUR 4.28. The trading value of the B share was EUR 10.5 million and the trading volume was 2.9 million shares. Honkarakenne did not acquire any of its own shares during the review period. In June, Honkarakenne transferred 15,000 of the company's Class B shares to the company's President and CEO as part of the President and CEO's 2019 performance bonus. At the end of the review period, the Group held 349,385 of its own Class B shares with an acquisition price of EUR 1,309,260.25. Own shares account for 5.62% of all the company's shares and 2.93% of all votes. The purchase cost has been deducted from shareholders’ equity in the consolidated financial statements. FLAGGING NOTIFICATIONS During the financial year 2020, Honkarakenne received a notification pursuant to Chapter 9, Section 5 of the Securities Markets Act, according to which the number of Honkarakenne Oyj shares owned by Saarelainen Oy had increased to more than 10 percent on 29 May 2020. CORPORATE GOVERNANCE In 2020, Honkarakenne Oyj complied with the Finnish Corporate Governance Code 2020 issued by the Finnish Securities Market Association. More information on corporate governance is available on the company's website at www.honka.fi. SHORT-TERM RISKS AND UNCERTAINTIES Demand for Honkarakenne's products is significantly affected by general economic development, exchange rates and consumer confidence in household finances, as well as competition in the industry. If demand falls sharply, it may have a significant impact on the company's earnings development. The coronavirus pandemic is causing uncertainty in all of the company's market areas. The duration of the uncertainty caused by the coronavirus pandemic, and its combined effects on business, are difficult to assess, but the pandemic may have significant effects on Honkarakenne's business. Valuation of items on the balance sheet is based on the management's current estimates. If these estimates change, this may have an impact on the company's result. REPORTING This release contains forward-looking statements that are based on the assumptions currently known to the company's management and on the management's current decisions and plans. Although the management believes that its forward-looking assumptions are reasonable, there is no assurance that they will prove to be correct. The financial statements bulletin has not been audited and the figures presented are unaudited. Figures in parentheses refer to the corresponding period a year earlier, unless otherwise stated. Honkarakenne reports in accordance with the European Securities and Markets Authority's (ESMA) recommendation on alternative key ratios (APM). An alternative key ratio is a financial ratio that is different from a financial ratio defined or designated in IFRS. The term “adjusted” is therefore used instead of the previous term “excluding non-recurring items”. The company classifies significant transactions regarded as affecting the comparison between reporting periods as adjustment items. These include, but are not limited to, significant restructuring costs, significant impairment losses or reversals, significant gains and losses on disposals of assets, or other significant income or expenses that are different from ordinary activities. This bulletin has been prepared in accordance with IAS 34. The release should be read in conjunction with the 2019 financial statements. The financial statements for 2020 have been prepared in accordance with the same accounting principles as the annual financial statements for 2019, except for the standards and interpretations that came into force on or after 1 January 2020. The revised standards and interpretations that came into force on 1 January 2020 have not had a significant effect on the figures presented during the review period. EVENTS AFTER THE FINANCIAL YEAR In January 2021, Honkarakenne announced that Vice President, Finance - CFO Leena Aalto was taking up a position with another organisation. Leena Aalto will continue as Vice President, Finance - CFO until the end of February 2021. Honkarakenne has no other significant reportable events after the financial year. BOARD OF DIRECTORS’ PROPOSAL FOR THE DISTRIBUTION OF PROFITS The parent company has no distributable earnings, but the parent company's distributable equity is EUR 4.2 million. The parent company's profit for the financial year is EUR 2.8 million. The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the financial year ended 31 December 2020. In addition, the Board of Directors proposes that a repayment of capital of EUR 0.18 per share be distributed from the invested unrestricted equity fund. OUTLOOK FOR 2021 Honkarakenne’s outlook is that revenue (net sales) will increase in 2021 and profit before taxes will be higher than in the previous year. GROUNDS FOR THE OUTLOOK The company's view of developments in 2021 is based on the existing order volume and its view of market development, as well as the development measures taken in the company. GENERAL MEETING Honkarakenne Oyj's Annual General Meeting will be held on Friday, 16 April 2021 at 2 p.m. HONKARAKENNE OYJ Board of Directors For more information: Marko Saarelainen, President and CEO, tel. +358 (0)40 542 0254, marko.saarelainen@honka.com or Leena Aalto, Vice President, Finance - CFO, tel. +358 (0)40 769 4590, leena.aalto@honka.com This and previous releases can be found on the company's website www.honka.com/en/investors/. Honkarakenne will publish the Board of Directors' report and financial statements for 2020 in its entirety and a separate corporate governance statement in week 12 at the latest, on the company's website at www.honka.fi. The half-year report for 2021 will be published on 26 August 2021. DISTRIBUTION Nasdaq Helsinki Oy Main media Financial supervision www.honka.com Honkarakenne Ltd supplies high-quality, healthy and ecological log homes, holiday homes and public buildings. Its buildings are made from Finnish solid wood under the Honka® brand. The company has delivered 85,000 buildings to over 50 countries. We manufacture our home packages in Finland, at our own factory located in Karstula. In 2020, Honkarakenne Group's consolidated net sales totalled EUR 52.9 million, of which exports accounted for 30%. www.honka.com CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited 7-12 /2020 7-12 /2019 1-12 /2020 1-12 /2019 MEUR Revenue (net sales) 30.3 25.8 52.9 47.5 Other operating income 0.3 0.2 0.5 0.4 Change in inventories -0.8 -1.5 0.1 -0.2 Work performed for own purposes and capitalised 0.0 0.0 0.0 0.0 Materials and services -19.8 -14.9 -34.6 -30.0 Employee benefit expenses -4.9 -4.0 -9.3 -8.3 Depreciations and amortisation -0.9 -1.0 -1.8 -1.8 Impairment 0.0 0.0 0.0 0.0 Other operating expenses -2.1 -2.0 -4.7 -4.2 Operating profit/loss 2.1 2.6 3.1 3.4 Financial income 0.1 0.0 0.1 0.1 Financial expenses -0.2 -0.2 -0.3 -0.3 Share of profit/loss in associates 0.0 -0.1 0.0 0.0 Profit/loss before taxes 1.9 2.4 2.9 3.2 Taxes 0.2 -0.6 -0.1 -0.9 Profit/loss for the period 2.1 1.8 2.8 2.3 Other comprehensive income: Translation differences -0.1 0.0 -0.1 0.1 Total comprehensive income for the period 2.1 1.8 2.8 2.4 Result for the period attributable to Equity holders of the parent 2.1 1.8 2.8 2.3 Non-controlling interest 0.0 0.0 0.0 0.0 2.1 1.8 2.8 2.3 Comprehensive income attributable to Equity holders of the parent 2.1 1.8 2.8 2.4 Non-controlling interest 0.0 0.0 0.0 0.0 2.1 1.8 2.8 2.4 Calculated from the result for the period attributable to equity holders of parent Earnings/share (EPS): Basic, EUR 0.37 0.31 0.48 0.40 Diluted, EUR 0.37 0.31 0.48 0.40 Honkarakenne Oyj has two series of shares: A shares and B shares, which have different right to dividend. Profit distribution of 0.20 EUR per share will be paid first for B shares, then 0.20 EUR per share for A shares, followed by equal distribution of remaining profit distribution between all shares. CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited 31.12.2020 31.12.2019 MEUR Assets Non-current assets Property, plant and equipment 13.7 11.6 Goodwill 0.1 0.1 Other intangible assets 0.5 0.3 Investments in associated companies 0.3 0.3 Receivables 0.1 0.1 Deferred tax assets 1.7 1.6 16.3 14.0 Current assets Inventories 4.6 4.4 Trade and other receivables 4.3 2.4 Income tax receivables 0.4 0.0 Cash and cash equivalents 7.0 7.1 16.3 13.9 Total assets 32.6 27.9 Equity and liabilities 31.12.2020 31.12.2019 Equity attributable to owners of the parent Share capital 9.9 9.9 Share premium account 0.5 0.5 Invested unrestricted equity fund 7.3 8.0 Own shares -1.3 -1.4 Translation differences 0.1 0.2 Retained earnings -1.9 -4.7 14.6 12.5 Non-controlling interests 0.0 0.0 Total equity 14.6 12.5 Non-current liabilities Deferred tax liability 0.2 0.1 Provisions 0.3 0.2 Financial liabilities 3.0 4.4 3.4 4.7 Current liabilities Trade and other payables 13.5 9.6 Current tax liabilities 0.0 0.1 Provisions 0.4 0.2 Current financial liabilities 0.8 0.8 14.6 10.7 Total liabilities 18.0 15.4 Total equity and liabilities 32.6 27.9 STATEMENT OF CHANGES IN EQUITY Abridged Unaudited EUR thousand Equity attributable to owners of the parent a) b) c) d) e) f) Total g) Total equity Total equity 1.1.2019 9898 520 8034 102 -1382 -7046 10126 5 10131 Profit/loss for the period 2321 2321 2321 Translation differences 63 63 63 Redemption of minority interest 5 5 -5 0 Share based incentive scheme 24 24 24 Total equity 31.12.2019 9898 520 8034 164 -1382 -4696 12539 0 12539 EUR thousand Equity attributable to owners of the parent a) b) c) d) e) f) Total g) Total equity Total equity 1.1.2020 9898 520 8034 164 -1382 -4696 12539 0 12539 Profit/loss for the period 2814 2814 2814 Translation differences -54 -54 -54 Return of capital -703 -703 -703 Share based incentive scheme 72 -45 28 28 Total equity 31.12.2020 9898 520 7331 111 -1309 -1927 14623 0 14623 a) Share capital b) Share premium account c) Invested unrestricted equity fund d) Translation differences e) Own shares f) Retained earnings g) Non-controlling interests CONSOLIDATED STATEMENT OF CASH FLOWS Abridged Unaudited 1.1.- 31.12.2020 1.1.- 31.12.2019 MEUR Cash flow from operating activities 6.0 5.0 Cash flow from investing activities, net -3.7 -3.1 Total cash flows from financing activities -2.4 1.1 Proceeds from borrowings 0.0 2.0 Repayment of borrowings -1.3 -0.5 Other financial items -0.4 -0.4 Return of capital -0.7 0.0 Change in cash and cash equivalents -0.1 3.0 Effect of exchange rate changes 0.1 -0.0 Cash and cash equivalents at the beginning of the year 7.1 4.1 Cash and cash equivalents at the close of the year 7.0 7.1 NOTES TO THE REPORT Accounting policies This financial statement release has been drafted in accordance with IAS 34. The financial statements release should be read together with the 2019 financial statement. The financial statements have been drafted in accordance with the same accounting principles applied in the 2019 financial statements, with the exception of standards and interpretations that have come into force on 1 January 2020 or thereafter. The effect of new standards and interpretations is described in more detail below under “new standards and interpretations.” This financial statement release has not been audited and the figures have not been examined by the auditor. The figures presented in the release have been rounded, so the sum of individual figures may differ from the amount shown. Unless otherwise stated, figures in parentheses refer to the corresponding period of the previous year. New standards and interpretations New standards and interpretations that have come into force on 1 January 2020 or thereafter have not affected the figures presented during the review period. Alternative Performance Measures Honkarakenne complies with the Guidelines on Alternative Performance Measures (APM) issued by the European Securities and Markets Authority (ESMA). An APM is a financial measure of performance other than a financial measure defined or specified in IFRS. For this reason, the term “adjusted” is used instead of “without non-recurring items”. As adjustment items, the company classifies significant business transactions that are considered to affect comparisons between different reporting periods. Such transactions include significant reorganisation expenses, significant impairment losses or reversals thereof, significant capital gains and losses on assets, and other significant non-customary income or expenses. In Honkarakenne’s view, Alternative Performance Measures provide significant additional information to management, investors, securities analysts and other parties on Honkarakenne’s result of operations, financial position and cash flows, and are frequently used by analysts, investors and other parties. Return on equity, equity ratio, net financial liabilities and gearing are presented as supplementary key figures, as in the company’s view they are useful indicators for assessing Honkarakenne’s ability to acquire financing and pay its debts. In addition, gross investments and R&D expenditure provide additional information on needs related to Honkarakenne’s cash flow from operating activities. Segments From the beginning of 2020, Honkarakenne has two geographical operating segments that will be combined into one reportable segment. Geographically, sales are divided as follows: Finland and Exports. The internal reporting of the management is in line with IFRS reporting. For this reason, separate reconciliations are not presented. Other notes to the report Events with related parties The Group’s related parties consist of subsidiaries and associated companies; the company's management and any companies in which they exert influence; and those involved in the Saarelainen shareholder agreement and any companies controlled by them. The management personnel considered to be related parties comprise the Board of Directors, President & CEO, and the company's Executive Group. The pricing of goods and services in transactions with related parties conforms to market-based pricing. During the financial year, ordinary business transactions with related parties were made as follows: sales of goods and services to related parties amounted to MEUR 0.2 (MEUR 0.2) ) and purchases from related parties to MEUR 0.4 (MEUR 0.5). Financial statements of the Group include MEUR 0.0 (MEUR 0.0) liabilities to related parties and MEUR 0.1 (MEUR 0.0) receivables from related parties. In 2020 or 2019 no bad debts were recognised from related parties. In 2010 and 2011, the parent company Honkarakenne Oyj granted a long-term loan total of MEUR 0.9 to Honka Management Oy. The parent company has made write-offs of MEUR 0.3 in 2018 on this loan, but the write-offs was reversed in 2019. The write-offs or reverse of write-offs had no effect on the consolidated financial statements. Property, plant and equipment Unaudited MEUR 31.12.2020 31.12.2019 Cost 1.1. 47.5 49.1 Increase 3.8 5.4 Disposals -0.3 -6.9 Cost 31.12. 51.0 47.5 Accumulated depreciation 1.1. -35.9 -41.0 Accumulated depreciation of disposals 0.2 6.9 Depreciation for the period -1.6 -1.8 Accumulated depreciation 31.12. -37.3 -35.9 Carrying amount 1.1. 11.6 8.1 Carrying amount 31.12. 13.7 11.6 Own shares Honkarakenne has not acquired its own shares during the report period. In June, Honkarakenne transferred 15,000 of the company's Class B shares to the company's President and CEO as part of the President and CEO's 2019 performance bonus. At the end of the report period, the Group held 349,385 of its Honkarakenne Class B shares with a total purchase price of EUR 1,309,260.25. These shares represent 5.62% of the company's all shares and 2.93% of all votes. The purchase cost has been deducted from shareholders' equity in the consolidated financial statements. Contingent liabilities Unaudited 31.12.2020 31.12.2019 MEUR For own loans - Mortgages 6.0 8.1 - Other quarantees 4.7 2.5 Off-balance sheet lease contracts 0.1 0.0 Key indicators 1-12/ 1-12/ Unaudited 2020 2019 Earnings/share (EPS) euro 0.48 0.40 Return on equity % 21 20 Equity ratio % 56 56 Shareholders equity/share euro 2.49 2.14 Net financial liabilities MEUR -3.3 -1.9 Gearing % -23 -15 Gross investments MEUR 4.1 3.2 % 8 7 Order book MEUR 39.8 27.6 Average number of personnel White-collar 97 87 Blue-collar 71 68 Total 168 155 Personnel in person-years, average White-collar 93 83 Blue-collar 60 57 Total 153 139 Adjusted number of shares (’000) At period-end 5862 5847 Average during period 5856 5847 Gross investments are presented without IFRS 16 right-of-use assets and investment grants received. Own shares held by the Group are excluded from the number of shares. Calculation of key indicators Profit / loss for the period attributable to owners of parent Earnings/share (EPS): ---------------------------------------------------------------------------- Average number of outstanding shares Profit / loss before taxes – taxes Return on equity %: ---------------------------------------------------------------------------- x 100 Total equity, average Owners’ equity Owners equity/share: ---------------------------------------------------------------------------- Number of outstanding shares at the end of period Total equity Equity ratio, %: ---------------------------------------------------------------------------- x 100 Statement of financial position total - advances received Net financial liabilities: Financial liabilities – cash and cash equivalents Financial liabilities – cash and cash equivalents Gearing, %: ---------------------------------------------------------------------------- x 100 Total equity