Press release: Tornator celebrates 10th anniversary with record results
Established in 2002, the forestry company Tornator celebrates its 10th anniversary in happy circumstances: to top off a successful decade, the company made it big in the financial year 2011.Tornator’s net sales increased by some 10 percent from the previous year, being EUR 77.7 (70.8) million. Operating profit without the effect of forest growth was EUR 65.2 (52.5) million, or 83.9 (74.2) percent of net sales. Tornator’s net profit increased significantly from the previous year, amounting to EUR 35.7 (27.3) million. Profit for the period was 45.9 (38.6) percent of net sales.
Timber delivery targets were exceeded, partly due to the harvesting of the previous year’s storm wood, and partly due to favourable winter harvesting conditions. Naturally, the most important thing was that the demand for timber improved, especially in the summer. Despite the generally difficult economic situation, plot sales remained at the level of previous years. The record-high net profit was secured by the compensation for the conservation programmes agreed with the state, paid out in early 2011.
“Our good results are partly due to timely silvicultural work. A forest will grow when the silvicultural work is done on time. According to an assessment made by the Finnish Forest Research Institute, Tornator’s forests are in good growth, producing wood in a sustainable way today and in the years to come,” says CEO Arto Huurinainen. “During our ten years of operation, we have endeavoured to bring a new kind of effectiveness into forest management. In fact, the low expenses relative to revenues are an indication that we have succeeded in this,” he adds.
Financing also plays an important role in the company’s strategy, and with the financial markets in turmoil, Tornator’s relatively low financing costs and long-term financing agreements have proved to be a key success factor. Return on capital employed, excluding the effects of fair valuation, stood at 7.4% (6.2%) and return on equity at 8.6% (6.8%). The equity ratio was 41.9% (41.8%).
In 2011 Tornator increased its land holdings mainly in Estonia, where it already owns some 15,000 hectares of forestland. In Romania, the company has some 12,000 hectares of forest.
For further information, please contact:
Arto J. Huurinainen, Chief Executive Officer, tel. +358 400 674 902
Henrik Nieminen, Chief Financial Officer, tel. +358 40 869 7613
Annual Report 2011 and Financial Statement 2011
Tornator is, with about 600,000 hectares of forestlands, the third largest forest owner in Finland. The Group’s net sales in 2011 were EUR 77.7 million. Tornator’s main business is wood production and the sale of cutting rights. It also develops and provides high-quality forest management services and sells plots for holiday homes. In addition, Tornator actively buys forestland close to its core operating area. Tornator employs about 200 people, mainly in south-eastern and eastern Finland. The largest shareholders are Stora Enso, Varma, OP Life Assurance Company, Ilmarinen and Etera.
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Tornator prepares for celebration
Tornator Oy will celebrate its 10th year in business in 2012.To celebrate, a new logo has been specifically designed for use in 2012. For one year, it will replace the Tornator's current logo:
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Press release: Tornator performs well despite a stormy year
Apart from the effects of the summer storms in Finland the year 2010 went well and as planned for Finland's third largest forest owner. The net profit, EUR 27,3 million, was of the same order as in two preceding years. "We have set the target of good and steady returns, so the figures prove that Tornator has been successful" says CEO Arto Huurinainen. Targets were met in timber sales, silvicultural work as well as in land sales. The Group's net sales in 2010 amounted to EUR 70.8 million (68.8) and operating profit without the changes in fair valuations was EUR 52.5 (54.0) million. Return on capital employed, excluding the effects from fair valuation, stood at 6.2 (6.5) percent and return on restricted equity at 34.2 (34.3) percent. The equity ratio was 41.8 (38.2) percent.The forest industry emerged from the previous year's recession in the wake of other sectors, and wood demand picked up clearly. This, combined with the summer's storms in Finland, resulted in a significant increase in Tornator's roundwood deliveries. The volume of trees knocked down by the storms corresponds to a fifth of company's annual timber sales. The storm disaster caused quality losses in places but, thanks to the fast reaction of Tornator's employees, the damage remained smaller than was feared. However, the large proportion of lower-priced storm wood brought down the average price of delivered timber, so the volume boost did not increase net sales in a normal ratio.
Tornator increased its forest holdings mainly in Estonia where the company owns now some 10.000 hectares of land. In Romania company has some 12.000 hectares of forest assets.
In the summer 2010 Tornator established a voluntary METSO conservation area of 74 hectares in the storm-damaged Viitalampi area in Ruokolahti. "It is important for Tornator to combine wood production and forest nature" reminds CEO Huurinainen. "I believe that our decision was also a key factor to our achieving a negotiation solution concerning compensation for conservation areas for old-growth forests".
The company believes that wood market will pick up again by summer when the wood-processing industry's raw material inventories are low. From the perspective of forest management, Tornator's solid financial status enables it to cover the extra costs incurred due to the storm
damage from the cash reserves.
Annual Report and Financial Statement 2010
For further information, please contact:
Arto J. Huurinainen, Chief Executive Officer, gsm +358 400 674 902
Henrik Nieminen, Chief Financial Officer, gsm +358 40 869 7613
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Tornator is, with about 600,000 hectares of forestlands, the third largest forest owner in Finland. The Group's net sales in 2010 were EUR 70.8 million. Tornator's main business is wood production and sale of cutting rights. It also develops and provides high-quality forest management services and sells plots for holiday homes. In addition, Tornator purchases actively forestland close to its core operating area. Tornator employs about 200 people, mainly in south-eastern and eastern Finland. The largest shareholders are Stora Enso, Varma, OP Life Assurance Company, Ilmarinen and Etera.
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Tornator changes name in Estonia
The new name of the company in Estonia is Tornator Eesti Oü. The name both matches with the names of the parent company and the Romanian subsidiary and emphasises our local approach. The change has been confirmed by the Commercial Registry on 15 November and it has no effect on our activities.Back
Tornator conserved storm damage area through METSO programme in Ruokolahti
Tornator conserved storm damage area through METSO programme in Ruokolahti. Read more: Forest.fiBack
Storms rage in Tornator forests
The storms Asta and Veera which raged in Finland at the turn of July and August also caused damage in Tornator’s forests. They passed through the company’s core area of operation, from South Karelia to Northern Savo.A survey of the affected areas and harvesting the trees are in full swing. The work will last several weeks. In the worst-hit areas, there are sites measuring many hectares where the trees have been uprooted or snapped in half. Both old and young stands have been affected. Younger, recently thinned pine stands are less damaged. The current estimate of the total amount of wood in the fallen and broken trees is in excess of 200,000 cubic metres.
So far it is impossible to estimate the final amount of damage. This will not be revealed until all sites are located and the harvesting work is completed. Naturally, the company attempts to minimise economic losses by acting fast and protecting its forest property against further damage. The fallen and broken trees are subject to a risk of insect damage, unless they can be hauled away from the forest. In conservation areas and sites protected by the Forest Act, however, the damaged trees are left unharvested to secure biological diversity.
The Finnish Forest Industries Federation estimates that the storm-felled wood will fit well into the market. Now there is demand for all kinds of wood. However, some of the large-diameter stems mangled by the storm are not suited for sawmilling, but they can be chipped for pulp raw material. Harvesting is hazardous work, which is why all necessary precautions must be taken to prevent accidents.
For further information, please contact:
Arto J. Huurinainen, Chief Executive Officer, tel.+358 400 674 902
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A new Board of Directors has been appointed for Tornator
The Board of Directors chairs Esko Torsti (Ilmarinen), as a Vice Chairman sits Mikko Koivusalo (Varma). Other members are Markus Rauramo (Stora Enso), Erkko Ryynänen (OP Bank Group Pension Fund and Pension Foundation,) and Hannu Tarkkonen (Etera).Deputy members are Risto Autio (Varma), Elina Lehtonen (Etera), Jari Pussinen (Pohjola Insurance), Jorma Tammenaho (Ilmarinen) and Jyrki Tammivuori (Stora Enso).
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Press release: Forestry company Tornator made a strong result in a challenging year
Despite of a global recession the forestry company Tornator performed strongly in year 2009. The company achieved a full-year net result of 27.0 million euros (24.9), excluding the effect of the change in the fair value of the forests. The problems within the Finnish forest industry were reflected both in the demand and price of the wood raw material. However, Tornator was able to acquire new customers and increase sales volumes especially in the domestic SME sawmills and energy industry, and together with a tight cost control and a decrease in financing costs these were the measures that helped achieve the targets set for costs, cash flow and profitability. The recession reduced company’s turnover to 68.8 million euros (76.8). Out of the turnover some 58.3 million euros (65.2) accumulated from the timber harvesting and some 10.2 million euros (11.0) were generated from the sales of holiday home plots and other non-strategic land areas.According to the IFRS accounting standard the fair value of Tornator’s forest assets was 946 million euros (921). The fair value was improved by a decreased discount rate and on the other hand affected by a slightly decreased long term price trend for timber. Only marginal additional hectares were purchased in Finland and in Estonia in year 2009.
The operating profit, excluding the effect of the change in the fair value of the forests, was approximately 54.0 million euros (56.5). Return on capital employed stood at 6.5% (7.1%) and return on restricted equity at 33.7% (31.1%). The Group’s equity ratio on 31 December 2009 was 38.2% (35.7%).
In Finland the timber sales are picking up this year. The demand for saw logs improved already last year, and pulpwood market may be expected to recover this spring. However, the predictability of the wood market will remain poor as markets follow the generally turbulent economic trends in Finland and around the world. The real estate market in 2010 is not likely to change much compared to 2009. The demand for plots will remain lower than in previous years, focusing more and more on select areas. Tornator intends to carry out the silvicultural work in 2010 according to plan. The results achieved in felling planning, cost cutting and customer acquisition in 2009 support the chosen strategy.
Annual Report 2009 and Financial Statement 2009
For further information, please contact:
Arto J. Huurinainen, Chief Executive Officer, gsm +358 400 674 902
Henrik Nieminen, Chief Financial Officer, gsm +358 40 869 7613
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Webpage of Tornator Timberland Estonia Oü is published
Tornator Oy has published the webpage of its subsidiary in Estonia www.tornator.ee.Back
Dec 1, 2009 Announcement: Our branch office in Vantaa has moved
Our branch office in Vantaa has moved.New address of the office is:
Tornator Oy
(Petrasol Leija Business Center)
Pakkalankuja 7
01510 Vantaa
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March 12, 2009 Press release: Forestry company Tornator had a year of a strong growth
Tornator, the third largest forest owner in Finland, achieved a turnover of 76.8 million euros (63.5) in year 2008, a growth by 21%. Out of the turnover some 65 million euros accumulated from the timber harvesting and some 11 million euros were generated from the sales of holiday home plots. The structure of the harvesting sites sold suited well for the customer needs which contributed to a record high felling volume of approximately 2 million cubic meters (1.7). The set targets were reached in the sales of holiday home plots although some weakening in the demand was visible at the end of the year.According to the IFRS accounting standard the fair value of Tornator forest assets was 921 million euros (890). The fair value was affected by a slightly decreased long term price trend for timber but the total value of the forests increased due to the acquisitions of new forests in Finland (3.000ha), Estonia (3.000ha) and Romania (12.000ha).
The operating profit, excluding the effect of the change in the fair value of the forests, was approximately 57 million euros (50), and the net profit 25 million euros (25). Return on capital employed stood at 7.1% (7.0%) and return on restricted equity at 31.1% (31.5%). The Group’s equity ratio on 31 December 2008 was 35.7% (42.1%).
The general economic uncertainty will has its effects on Tornator results in 2009.
A special attention will be paid on the cash flows and larger investments will be postponed as necessary. The company believes that the demand for timber will start to recover when the timber stocks of the forest industry start to diminish by the end of the year. Tornator’s long-term bank loans will mature in 2013 at the earliest, so the current crisis in the financial market has no direct impact on company’s loan arrangements. The international operations will be developed and new forests acquired when possible, so that also these investments give the added value to the shareholders when the next economic upturn takes place.
For further information, please contact:
Arto J. Huurinainen, Chief Executive Officer, gsm +358 400 674 902
Henrik Nieminen, Chief Financial Officer, gsm +358 40 869 7613
Financial Statement 2008 and Annual Report 2008
Tornator is, with about 600,000 hectares of forestlands, the third largest forest owner in Finland. The Group’s net sales in 2008 were EUR 76.8 million. Tornator’s main business is wood production and sale of cutting rights. It also develops and provides high-quality forest management services and sells plots for holiday homes. In addition, Tornator purchases actively forestland close to its core operating area. Tornator employs about 200 people, mainly in south-eastern and eastern Finland. The largest shareholders are Stora Enso, Varma, OP Life Assurance Company, Ilmarinen and Etera.
www.tornator.fi
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Feb 2, 2009 Appointment: Riido Rosin to be in charge for managing Tornator Oy's forest property in Estonia
Riido Rosin (43) has been appointed the Country Manager of Tornator Oy for Estonia. In his position, Mr. Rosin is in charge of managing the company's forest property and forestry operations in Estonia.Mr. Rosin arrived to his new position from the organisation of Stora Enso Mets (Estonia).
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Oct 21, 2008 Appointment: Zoltan A. Kosy to be in charge for managing Tornator Oy's forest property in Romania
Zoltan A. Kosy (M.Sc in Forest Economics) has been appointed the Country Manager of Tornator Oy for Romania. In his position, Mr. Kosy is in charge of managing the company's forest property and coordinating the company's forestry operations in Romania.Mr. Kosy arrived to his new position from the organisation of Stora Enso Metsä.
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Oct 21, 2008 Announcement: Subsidiary for Tornator Oy in Romania
Tornator Oy has recently established a subsidiary company in Romania - Tornator S.R.L. The new company is holding the property rights of approximately 11 000 hectares of forests in Central Romania.The aim of the company is to expand further its forest property in Romania and to develop forest management and wood harvesting via sustainable and profitable growth. The harvested wood raw material is planned to be sold mainly on the local market to local forest industries.
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March 17, 2008 Press release: The year 2007 was a time of great changes for Tornator
The year 2007 was a time of great changes for Tornator. The year included a refinancing of the long-term debt, the first forest acquisitions abroad, a launch of forestland purchasing in Finland, and a transition to the International Financial Reporting Standards (IFRS). The most significant development, however, took place in the prices of roundwood. The demand for roundwood in Finland and elsewhere in Europe raised prices to a record-high level. A long term price prognosis for timber, prepared by The Finnish Forest Research Institute, increased the present value of Tornator’s future cash flows, and the change in the fair value of biological assets calculated according to the IFRS was approximately EUR 170 million. The fair value of company’s total forest asset at the year end was approximately EUR 890 million (EUR 718 million in 2006).The increased average price of wood compensated for the drop in felling volumes caused by poor harvesting conditions, and Tornator achieved net sales of some EUR 64 million as planned (65). The cutting level was at 1.7 million cubic meters (1.9) which is clearly below Tornator’s sustainable cutting plan. Operating profit without the effect of changes in biological assets was approximately EUR 50 million (51) and respectively the net result was some EUR 25 million (25). Furthermore, the sales of holiday home plots continued at a record level, which helped maintain a strong cash flow. Return on capital employed, excluding the effect of the change in the fair value of biological assets, stood at 7.0% (8.2%) and return on restricted equity at 31.5% (30.6%). The Group’s equity ratio on 31 December 2007 was 42.1% (33.6%).
Tornator redefined its strategic approaches in connection with the loan refinancing undertaken early in the year. The financial arrangement was essentially a shift from bond loans to a bank loan. The more flexible loan terms make it easier to increase forest holdings in Finland and abroad. In 2007 Tornator acquired some 900 hectares of forestland in Estonia and some 1000 hectares in Finland. The company intends to continue expanding when possible.
For further information, please contact:
Arto J. Huurinainen, Chief Executive Officer, gsm +358 400 674 902
Henrik Nieminen, Chief Financial Officer, gsm +358 40 869 7613
Financial Statements for 2007
Tornator is, with about 600,000 hectares of forestlands, the third largest forest owner in Finland. The Group’s net sales in 2007 were EUR 63.5 million. Tornator’s main business is wood production and sale of cutting rights. It also develops and provides high-quality forest management services and sells plots for holiday homes. In addition, Tornator purchases actively forestland close to its core operating area. Tornator employs about 200 people, mainly in south-eastern and eastern Finland. The largest shareholders are Stora Enso, Varma, OP Life Assurance Company, Ilmarinen and Etera.
www.tornator.fi
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March 17, 2008 Annual report and Financial Statements 2007
Annual Report 2007Balance Book 2007
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Dec 31, 2007 Tornator Timberland Oy merged with Tornator Oy
In order to rationalize the Group structure it was decided to merge the old parent company Tornator Timberland Oy with the subsidiary Tornator Oy. The new parent company of Tornator Timberland Group is Tornator Oy as per 31 December 2007.
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June 14, 2007 Appointment: M.Sc. (Econ), EMBA Henrik Nieminen has been appointed deputy to the Chief Executive Officer.
M.Sc. (Econ), EMBA Henrik Nieminen (37) has been appointed deputy to the Chief Executive Officer. The appointment is effective from 1st of June 2007. Nieminen continues as the Chief Financial Officer of the company and he is also responsible for the international affairs.Back
Dec 5, 2006 Tornator signed a €400M term loan facility
Tornator Oy (“Tornator”) has signed a secured multi-tranche credit facility (the “Facility”) which will be used for general corporate purposes and to refinance three Eurobonds issued by Tornator Finance p.l.c in 2002.The new Facility comprises three separate tranches as follows:
• EUR 50,000,000 seven (7) year amortising term loan (“Tranche A”);
• EUR 180,000,000 seven (7) year bullet term loan (“Tranche B”); and
• EUR 170,000,000 ten (10) year bullet term loan (“Tranche C”)
Nordea and OKO Bank plc acted as Mandated Lead Arrangers and Joint-Bookrunners for the Facility. Additionally Nordea acted as the Coordinator and Documentation Agent and OKO Bank plc as the Facility and Security Agent.
Syndication of the Facility was targeted to a selected group of financial institutions and the participating banks are:
Mandated Lead Arrangers:
Nordea
OKO Bank plc
Arrangers:
Danske Bank A/S
Ilmarinen Mutual Pension Insurance Company
Total Euro 400,000,000
Tornator is the third largest forest owner in Finland. Tornator manages and nurtures a forest property of approximately 600,000 hectares. Tornator’s business is to produce wood and sell harvesting rights in its forests. In addition Tornator provides high quality forest management services and sell holiday sites and forest lots. Tornator's turnover is approximately 45 million euros and it employs a total of 200 forestry professionals mainly in South Eastern and Eastern Finland.
More information about Tornator is available on www.tornator.fi.
Press enquiries:
Tornator Nordea OKO Bank plc
Henrik Nieminen Jussi Hyyppä Teijo Rantatupa
+358 1056 30013 +46 8 614 6799 +358 10 252 011
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Tornator results in 2006
PRESS RELEASE 5th of March 2007Tornator's sales increased above EUR 50 million
The forestry company Tornator increased its net sales approximately by 15 percent to EUR 52.5 million in year 2006 (45.7). The Group’s operating profit was EUR 44.9 million (44.4) and profit for the period EUR 10.6 million (15.6). Return on capital employed was 9.5% (9.3%) and return on equity 12.0% (21.2%).
Most of the Group’s net sales came from the sales of harvesting rights. The single most significant factor contributing to the increase in net sales was that Tornator's sustainable long-term harvesting plan allowed a shift in the volume of delivered wood. Forestland and plot sales contributed EUR 11.1 million (11.2) of other operating income. Operating profit was effected by an extraordinary depreciation for loan transaction expenses, totalling EUR 5.3 million. In addition, there was an increase of EUR 3.9 million in the financial expenses due to higher costs from interest rate hedges.
In 2006 roundwood demand increased in the Baltic Sea region which contributed to a significantly improved price level for almost all wood assortments. Higher demand was a result from the revival of sawn timber markets, and also, from the hitches in import from Russia.
"Tornator was able to plan and market the increased volumes with present resources, thanks to improved levels of productivity and competence," says CEO Arto J. Huurinainen. "The extraordinary depreciation of the loan transaction costs weakened our result but it was necessary in order to be able to enjoy smaller loan margins and more flexible loan terms in the coming years," he adds. Tornator refinanced its long-term loans in January 2007.
For 2007, Tornator expects wood demand to remain strong due to the high capacity utilisation of wood-processing mills. Russia has planned a significant increase in the export duties for softwood of which the effects on the Finnish forestry and forest industry are still a big question mark.
For further information, please contact:
Arto J. Huurinainen, Chief Executive Officer, tel. +358 400 674 902
Henrik Nieminen, Chief Financial Officer, tel. +358 40 869 7613
Tornator is, with about 600,000 hectares of forestlands, the third largest forest owner in Finland. The Group’s net sales in 2006 were EUR 52.5 million. Tornator’s main business is wood production and sale of cutting rights. It also develops and provides high-quality forest management services and sells plots for holiday homes and forestland located outside its core operating areas. Tornator employs about 200 people, mainly in south-eastern and eastern Finland. The largest shareholders are Stora Enso, Varma, OP Life Assurance Company, Ilmarinen and Etera.
www.tornator.fi
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March 6, 2006 press release: Tornator performs strong in a challenging year
Tornator performs strong in a challenging yearThe forestry company Tornator met the business challenges of 2005. The Group’s net sales were EUR 45.7 million (48.1) and profit for the period EUR 15.6 million (11.6). Profit for the period was 34.2% of net sales (24.0%). Return on capital employed was 8.6% (8.5%) and return on equity 14.1% (11.8%).
Most of the Group’s net sales came from the sales of cutting rights. Forestland and plot sales contributed EUR 11.2 million (8.4) of other operating income.
In 2005, the wood market was shaken by a number of disturbances. With regard to wood harvesting, the most significant of these were poor soil conditions early in the year, storm damage in the Baltic Sea region and a labour dispute in the forest industry. In addition, during the first half of the year, the approaching end of area-based taxation temporarily increased wood supply from privately owned forests and lowered prices. Despite the market disturbances, the demand for Tornator’s wood was good throughout the year.
”The company reacted flexibly and fast to changing customer needs in the latter half of the year, and suitable reserves were released to meet the demand for felling areas,” says CEO Arto J. Huurinainen. "The good performance was also attributed to successful sales efforts for waterfront plots and forest estates," he adds.
For 2006, Tornator expects wood demand to remain strong due to the high capacity utilisation of wood-processing mills.
During 2005, the company continued the implementation of conservation programmes in co-operation with environmental authorities. Tornator’s environmental management vision is to promote economically, ecologically and socially sustainable forestry and forest management, as well as to secure biodiversity in company forests.
For further information, please contact:
Arto J. Huurinainen, Chief Executive Officer, tel. +358 400 674 902
Henrik Nieminen, Chief Financial Officer, tel. +358 40 869 7613
Tornator is the third largest forest owner in Finland, owning and managing approximately 600,000 hectares of forestlands. The Group’s net sales in 2005 were EUR 45.7 million. Tornator’s main business is wood production and sale of cutting rights. It also develops and provides high-quality forest management services and sells plots for holiday homes and forestland located outside its core operating areas. Tornator employs about 200 people, mainly in south-eastern and eastern Finland. The largest shareholders are Stora Enso, Varma, OP Life Assurance Company, Ilmarinen and Etera.
www.tornator.fi
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Press release on March 7, 2005: Steady growth continued for Tornator in 2004
Tornator's business operations continued as expected in 2004. The consolidated net sales of the Group totalled 48.1 (46.1) million euros in the financial year 2004. Net profit amounted to 11.6 (11.1) million euros. Net profit was 24% of the consolidated net sales (24%). The return on capital employed was 8.5%, which was at last year's level (8.4%). The return on equity was 11.8% (12.9%).Sales of felling rights accounted for 98.5% of the consolidated net sales and stood at 47.4 million euros (45.2). Sales of silviculture services were 0.7 million euros, which was slightly less than last year's 0.9 million euros. Other operating income from the sale of forestry areas and residential sites amounted to 8.4 million euros (8.1).
Wood supply remained positive throughout 2004. The company delivered wood 1.6 million cubic metres and there was a slight increase compared to 2003. Rainy summer and fall had its effect on the price increase in 2004 as well as the positive market scenarios in the industries using wood raw material.
"In 2004 the demand for raw wood was positive in the Baltic area due to the increased utilisation rate of the wood processing industry. The storm damage in Sweden and the Baltic countries may be reflected in the Finnish wood market, however we do believe that demand will meet our wood supply also in 2005", says Tornator's CEO Arto J. Huurinainen.
Tornator invests strongly in operations that are in accordance with sustainable development. Harvesting is planned and executed in the long-term. In 2004 the fellings were approximately 67% of the annual forest growth.
The company aims to preserve valuable areas in the nature and the biological diversity of forests throughout the whole of the company's operation area. Tornator continued to execute national conservation programmes in cooperation with the environmental authorities in 2004.
For further information:
Arto J. Huurinainen, CEO, tel: +358-400-674 902
Henrik Nieminen, CFO, tel. +358-40-869 7613
About Tornator
Tornator is the third largest forest owner in Finland and it owns and manages a forest property of some 610,000 hectars. Tornator's net sales amounted to approximately 48.1 million euros in 2004. The Group's main business is wood production and sale of felling rights. Tornator also develops and provides high-quality forest management services and sells lots and land for leisure use located outside the core operating areas. Tornator employs about 200 people mainly in south-eastern and eastern Finland. Tornator's largest shareholders are Stora Enso, Varma, OP-Henkivakuutus, Ilmarinen and Etera.
www.tornator.fi
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Tornator's first year succesful
Press release on March 9, 2004 in PDF formatBack
Tornator Oy and Tornator Forest Oy merged on Jan 2, 2004
Jan 2004: A planned merger where a 100% owned subsidiary Tornator Oy merged with its parent Tornator Forest Oy was executed on January 2, 2004. Tornator Forest Oy changed its name to Tornator Oy and the valid Business ID is 0162807-8. The merger will bring efficiencies to the forest management and reduce administrative work. All employees and all the forest assets of Tornator Timberland Group are in the books of Tornator Oy.Back
March 2003: Tornator awarded as Securitisation Deal of the Year by International Financial Law Review
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2nd best in Financial News' Securitisation of the Year contest
March 2003: Tornator issue of €370 million in December 2002 ranked 2nd, only a couple of votes behind the winner Canary Wharf (a commercial mortgage-backed deal) in the competition arranged by Financial News. The deal was recognized and appreciated by the fact that "the Finnish forestry company added novelty to the European market and highlighted the value of securitisation as a funding tool for companies…"Lead Manager: Morgan Stanley
Co-Manager Sampo Bank
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Corporate Securitisation of the Year by Structured Finance International
Feb 2003: Tornator issue of €370 million in December 2002 was voted the Deal of the Year at its class of Corporate Securitisations by Structured Finance International (SFI), a publication of Euromoney. The deal was the first securitisation of forest land in Europe. SFI highlights the fact that even if "Tornator is not the first continental securitisation to use techniques borrowed from UK whole business securitisation, it is the most complete emulation so far, and shows how the technique can be used as a mainstream corporate finance tool…"Lead Manager: Morgan Stanley
Co-Manager Sampo Bank
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TORNATOR GETS DOMESTIC OWNERS
Dec 2002: Stora Enso has sold the share capital of its subsidiaries Tornator Forest Oy and Tornator Oy to a new company established by Finnish institutional investors. The company has financed the purchase with a bond amounting to EUR 370 million. The company has 13 shareholders, the largest ones being Stora Enso (41%), Varma-Sampo Mutual Pension Insurance Company (13.1%), Aurum Life Insurance Company (7.5%) and Ilmarinen Mutual Pension Insurance Company (7.5%). The Chief Executive Officer is Arto J. Huurinainen.Tornator’s estimated sales for 2003 are EUR 50 million and the targeted profit before financing items and taxes is EUR 40 million. Most of the turnover will be generated from the sale of cutting rights, while the sales of forest management services and land will represent some 10%.
Tornator aims to be the leading forest management company in Finland
Tornator aims to be the leading forest management company in Finland. Tornator has experience and expertise in forestry over a number of decades. The present Tornator was formed when Stora Enso Oyj converted its forestry business into a company in July 2002.
Tornator owns and manages a forest property of some 613,000 hectares, located mainly in eastern and south-eastern Finland. Tornator’s young, pine-dominated forests are in a strong growth phase. The average volume of growing stock in the company forests is 90 cubic metres per hectare. The main business of the company is wood production and sale of cutting rights. In addition, it provides and develops high quality forest management services to forest owners. Tornator implements the silvicultural work related to Stora Enso’s forest service agreements.
Tornator intends to concentrate and intensify its operations by selling separate lots and estates located outside the core areas and concentrations of its property. The sale of high quality land for leisure use is also included in Tornator’s business.
Tornator employs about 50 salaried staff and some 150 forest workers. Most of these forestry professionals entered the new company from Stora Enso in connection with the business transfer. Operations are organised in ten forestry teams around the country. The company’s domicile and head office are located in Imatra.
Environmental protection and management are part of Tornator’s operations. The company wants to promote the biological diversity of forests and to further develop its high environmental competence. Tornator also participates in national forest certification. Responsibility and respect for the environment are values on which the company builds its strong expertise in forestry.
Tornator’s aim is to create a new kind of company in a traditional field, combining decades of silvicultural experience with modern teamwork. The result will be a forestry company that is secure, interesting and profitable with regard to its employees, investors and other stakeholders.
For further information, please contact:
* Arto J. Huurinainen, Chief Executive Officer,
tel. +358 (0)2046 31001, +358 (0)400 674 902
* Tapio Suutarla, Deputy Chief Executive Officer,
tel. +358 (0)2046 31005, +358 (0)400 162 790
* Henrik Nieminen, Chief Financial Officer,
tel. +358 (0)2046 21303, +358 (0)40 869 7613
www.tornator.fi
For images, please contact: tornator@tornator.fi
Tornator is the third largest forest owner in Finland, and it has experience and expertise in forestry from a number of decades. The company owns and manages a forest property of some 613,000 hectares, provides forest management services and sells high-quality land for leisure use. Net sales are about EUR 50 million. Tornator employs more than 200 forestry professionals around Finland.
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