Annual Report 2015

Itella Russia

Measured in local currency, Itella Russia’s net sales decreased by 7.7%. The decrease in net sales was due to the weak economic climate, the significant decline in Russia’s GDP, and weaker international trade. The current expectation is that volumes will remain low in 2016.

By December 31, 2015, the closing rate of the Russian ruble had declined by 12%. The ruble exchange rate was highly volatile during the year. Euro-denominated net sales decreased by 30.9% to EUR 118.9 (172.0) million.

The business group’s operating result before non-recurring items was EUR -5.1 (2.5) million. The weaker operating result was attributable to lower volumes as well as the development of the ruble exchange rate and currency-linked lease expenses.

The average warehouse fill rate during the year was 84% in Moscow and 86% in other areas. The operating result also decreased, and totaled EUR -25.0 (2.4) million. The operating result includes EUR 7.6 million in impairment losses, the majority of which were allocated to customer relationships capitalized in conjunction with the acquisition of Itella Russia in 2008. The result includes a provision of EUR 11.7 million for loss-making agreements related to the loss of a customer and currency depreciation.

Itella Russia’s investments amounted to EUR 2.9 (2.6) million.