ANNUAL REPORT 2003 INEX PARTNERS OY

ANNUAL REPORT 2003 

INEX PARTNERS OY

CONTENTS 

Key fi gures 2 

Managing Director´s Review 3 

Purpose and organisation of the Inex Group 4 

Inex Group 5 

Inex Partners Oy 6 

Meira Nova Oy 7 

Finnfrost Oy 8 

Retailer brands 9 

Inex and its staff 10 

Inex and the environment 11 

Financial statements 

Board of Director´s Review 12 

Inex Group 15 

Inex Partners Oy 18 

Notes to the Financial Statements 21 

Board Of Directors’ proposal 

to the Annual General Meeting 34 

Auditor´s Report 34 

Board of Director´s of Inex Partners Oy 35 

Auditors 35 

Contact information 36 

1

KEY FIGURES 

INEX GROUP 1999 – 2003 

EUR million 1999 2000 2001 2002 2003 

Net turnover 1,424 1,490 1,606 1,696 1,784 

Increase in net turnover, % 6 5 8 6 5 

Profi t before extraordinary items 5 4 8 5 5 

Profi t for the fi nancial year 3 3 5 22 3 

Return on investment, % 13.1 11.8 18.1 11.8 9.7 

Equity ratio, % (1) 17.1 17.5 16.2 21.9 20.5 

Gearing, % –104.7 –103.5 –183.0 –155.4 –185.5 

Gross investments 12 7 5 7 3 

Personnel, average 1,920 2,026 2,100 2,216 2,242 

INEX PARTNERS OY 1999–2003 

EUR million 1999 2000 2001 2002 2003 

Net turnover 1,259 1,333 1,448 1,531 1,597 

Increase in net turnover, % 6 6 9 6 4 

Profi t before extraordinary items 4 4 9 13 4 

Profi t for the fi nancial year 4 3 0 24 4 

Return on investment, % 9.6 9.8 19.4 25.6 8.5 

Equity ratio, % (1) 19.6 19.7 16.0 22.6 21.4 

Gearing, % –86.5 –93.4 –194.1 –124.3 –187.0 

Gross investments 9 6 2 6 3 

Personnel, average 1,528 1,630 1,730 1,869 2,015 

(1) This ratio includes the equity portion of appropriations. 

2

MANAGING DIRECTOR’S REPORT 

A SUCCESFUL PLAYER 

IMPLEMENTS REFORMS 

– PROACTIVELY 

Inex Group’s business operations saw 

positive developments in 2003 and 

operating results remained solid. However, 

overall growth in the Finnish grocery 

trade slackened, primarily due to 

increased competition and a fall in prices 

caused by a battle for market share. 

Quantifi ed in kilos, sales volumes have 

increased; however, when measured 

in euros sales are not increasing at the 

same rate; in fact, sales are falling. 

This trend is expected to continue 

over the next few years. 

Viewed against this background, the 

Inex Group companies performed well 

in 2003, their sales growth outperforming 

the general market trend. Effi ciency, 

reliability and quality improved, and 

results were profi table and better than 

planned. Inex continued the strong development 

of its operations in line with 

its competitive strategy. The added 

value we create directly strengthens the 

competitiveness of our customer chains 

in the retail sector. 

The network formed by the S Group, 

Tradeka and ourselves has indisputably 

been the most successful player and a 

forerunner in the Finnish grocery trade 

since Finland joined the European 

Union in 1995. As for Inex, our success 

has been, and will be, based on customer 

orientation, skilled personnel, effi 

ciency, networking, continuous reform 

and a fruitful co-operation with our partners. 

We have implemented new operational 

models more rapidly than our 

competitors and continuously provided 

our customers with competitive benefi ts 

via our active development functions. 

The ongoing internationalisation of 

trade and industry and related struc- 

tural changes, EU enlargement and 

changes in the competitive situation of 

the Finnish grocery trade require a continuous 

and fundamental reform of operations. 

In order to create competitive 

advantages for the future, strategic redirectioning 

projects must be implemented 

briskly throughout the whole partner 

network. The most successive players 

will be those who implement the necessary 

reforms proactively. 

First, we must respond to the most topical 

challenge, price competition, by further 

increasing our effi ciency. We will 

achieve this by renewing our operational 

models, intensifying co-operation, attending 

to cost factors in all of our processes 

and throughout the value chain, 

and focusing on retailer brands. 

Second, we will continue to develop our 

logistics services on a retailer-driven basis, 

and expand into new fi elds with the 

aim of enhancing competitiveness. 

The third fi eld of reform is retailers’ 

product ranges and international purchasing 

co-operation. In particular, the 

number of retailer brands is increasing 

at a rapid pace in all product areas. 

This trend is orchestrated by international 

chains as well as the price competition 

between, and the profi ling needs, 

of Finnish retail chains. In response, we 

must accelerate our development work 

in this fi eld in co-operation with our suppliers 

and international partners. It is 

important that we achieve a suitable mix 

of retailer brands and other brands in 

our product ranges in line with customer 

needs. 

The fourth factor affecting our reform 

needs is EU enlargement on 1 May 

3 

2004. The level of costs is markedly 

lower in the new EU countries than in 

the current member countries, and we 

must take full advantage of this to further 

develop our purchasing channels 

and logistics. 

The fi fth fi eld of reform comprises networking, 

value chains and processes. 

This means the unbiased development 

of the entire value chain involving ourselves, 

our customer chains and other 

partners. Correspondingly, we must 

transfer from unit-based activities to 

network-based activities guided by customer-based 

consumer information. 

The purpose of all this is to utilise joint 

buying power and purchasing and logistics 

opportunities. We must also continue 

to develop and implement new 

operating models more rapidly than 

our competitors. In this work, information 

management and management by 

knowledge will be the central competitive 

tools and development targets. 

2003 was a successful year for Inex. 

I wish to express my warm thanks to our 

loyal customers, skilled personnel and 

supportive partners and shareholders 

for these excellent achievements. Our 

skill-oriented foundation provides a fi rm 

footing for future growth. 

On the threshold of my retirement, 

I also wish to thank everybody for nearly 

40 years of fruitful co-operation and 

wish you all the best of success in the 

future. 

March 2004 

Martti Haaman

INEX GROUP 

PURPOSE 

The purpose of the Inex Croup is to supply such goods and services to its clients, 

competitively, cost effectively and profi tably, that will provide them with a competitive edge. 

STRUCTURE AND ORGANISATION 31.12.2003 

OWNERS 

BOARD OF DIRECTORS 


PARENT COMPANY 

INEX PARTNERS OY 

Managing Director 

Martti Haaman 

FINANCE 

Director Finance 

Juhani Siltanen 

ADMINISTRATION 

Director Administration 

Veikko Kesti 

DEVELOPMENT 

Director Devlopment 

Jyrki Räsänen 

Inex Partners Oy is fi fty-fi fty owned by SOK and the Cooperative Tradeka Corporation. 

4 

INEX BUSINESS OPERATIONS 

Retail trade purchasing 

and logistics 

Deputy Managing Director 

Risto Pyykönen 

MEIRA NOVA OY 

HoReCa trade purchasing 

and logistics 


Jouni Nurmi 

FINNFROST OY 

Associated Company 

Frozen food purchasing 

and logistics 


Seppo Reunanen


The Inex Group focuses on developing 

product ranges and providing 

purchasing services for the grocery 

trade, and logistics services for the 

grocery and speciality products trade. 

Inex Partners Oy, the parent company, 

is in charge of the Group’s business 

operations serving retail chains and 

is responsible for Group management 

and Intra-Group services. 

Meira Nova Oy, a subsidiary of Inex 

Partners Oy, serves the hotel, restaurant 

and catering (HoReCa) businesses. 

Purchasing and logistics 

related to frozen food are handled 

in co-operation with the associated 

company, Finnfrost Oy. 

Last year, growth in the grocery retail 

trade and the HoReCa sector diminished 

substantially compared to 

2002. The retail trade was characterised 

by a battle for market share 

and a related fall in prices. 

Major international retailers have 

plans to expand their networks into 

new market areas in Europe. This 

also affects the competitive situation 

and business environment in 

Finland. 

Finnish retail groups will continue 

to tighten up the co-ordination of 

their grocery retail chains, streamline 

their processes, substantially 

upgrade their logistics and invest in 

retailer brands. 

The most signifi cant structural 

change in the Finnish retail trade 

was the merger of two trading cooperatives, 

Elanto Cooperative and 

the Helsinki Cooperative Society 

HOK, to form the new Helsinki 

Cooperative Society Elanto (HOK- 

Elanto) at the turn of 2003/2004. 

The Inex Group further improved 

the operational model of its partner 

network, which has already proved 

effi cient in the grocery retail trade 

and the HoReCa sector. All parties 

in the value chain, including 

Inex and its customer chains and 

partners, participated in this work, 

which signifi cantly improved the 

Group’s operational effi ciency, reliability, 

quality and profi ts. 

The Inex Group’s customer chains 

consolidated their position on the 

retail market in 2003. This favourable 

trend is expected to continue. 

The Group continued to maintain 

and improve the physical and mental 

health of its staff in line with 

the former Vire project. Focusing on 

employee well-being, these activities 

are now managed by supervisors 

as part of their everyday work. 

The purpose of Inex’s logistics network 

is to meet the changing needs 

of its customer chains in an effi - 

cient and fl exible manner. In line 

with this strategy, the Group continued 

to improve the equipment and 

functionality of its logistics centres. 

The most signifi cant investments 

were implemented at the Kilo logistics 

centre. In the summer of 2003, 

the Hakkila logistics centre adopted 

a new conveyor sorter, and Inex 

and Meira Nova Oy upgraded their 

SAP R/3 information systems. Inex 

Group’s investments totalled 

EUR 3.2 million. 

5 

The Inex Group saw the continuation 

of positive trends in 2003. 

Net turnover grew by 5 per cent, to 

EUR 1,784 million, and the average 

number of staff was 2,242, an 

increase of 174. 

The Group’s result after fi nancial 

items was profi table, exceeding the 

planned level, and its fi nancial position 

was stable, proving even better 

than expected. 

The changes in the operating environment 

cause uncertainties in the 

general economic development in 

2004. This is also refl ected in the 

expectations of the trade and commerce 

sector, making the outlook 

for the grocery trade more challenging 

than in 2003. 

The continuous and systematic development 

work of the Inex Group 

companies is creating the foundations 

for positive development, expected 

to continue into 2004.


The core task of Inex Partners Oy 

is to provide effi cient, competitive 

and profi table purchasing and logistics 

services for the retail trade. Its 

nationwide logistics network comprises 

its groceries logistics centre at 

Kilo, Espoo; four regional terminals 

in Kouvola, Lempäälä, Kuopio and 

Oulu; and a speciality products logistics 

centre at Hakkila, Vantaa. 

The implementation and development 

of the product range management 

process and the related system 

continued in close co-operation 

with customer chains and suppliers. 

Based on its customer chains’ needs 

and business ideas, Inex expanded 

its range of fresh and processed food 

products and non-food groceries by 

10 per cent. 

Inex continued to increase the 

number of its own-brand products as 

planned. Such products, which numbered 

over 850 by the year-end, are 

provided under three brands: Rainbow, 

Daily and X-tra. 

Inex intensifi ed its co-operation with 

the pan-Nordic Coop Norden, especially 

in the purchase of joint retailer 

brands. 

An image and data bank on Inex’s retailer 

brands was published on Inex’s 

website in March 2003. This service, 

intended for industry experts and 

consumers, contains an image as well 

as basic product information on each 

of the retailer brand products. 

Inex participates in the development 

of a national grocery data bank, and 

has been involved in this work since 

the project was launched. This database 

will be rolled out in the autumn 

of 2004. 

Quality management was further improved 

and enhanced throughout the 

purchasing and supply chain. 

A customer survey carried out last autumn 

indicated that customer satisfaction 

with Inex’s operations has improved 

since the previous survey. 

The volumes handled by Inex’s grocery 

logistics continued to grow rapidly, 

most signifi cantly in terminal 

deliveries. The company upgraded 

the operational model of its terminal 

network in order to further improve its 

customer chains’ competitive edge. 

The availability of staff for logistics 

centres was ensured by creating an 

effi cient and effective recruitment 

process. 

The renovation project launched in 

the mid-1990s at Kilo logistics centre 

is now reaching completion. Operations 

have continued in the centre at 

full capacity throughout the project, 

and the modern facilities have further 

improved the quality and effi ciency of 

operations. 

6 

The Hakkila logistics centre adopted 

a conveyor sorter in the summer of 

2003. The new operating model, 

which generates benefi ts for customers 

and suppliers, has increased the 

volume of terminal deliveries and 

improved the effi ciency of speciality 

products logistics. 

Inex Partners Oy continued to maintain 

and improve the physical and 

mental well-being of its staff in line 

with the former Vire project. These 

activities are now managed by supervisors 

as part of their everyday work. 

In 2003, Inex Partners Oy successfully 

grew its business activities, grocery 

product volumes and sales continuing 

to outperform market growth 

rates. The company’s operations ran 

smoothly throughout the year. 

Inex Partners Oy’s net turnover 

amounted to EUR 1,597 million, 

showing a growth of 4 per cent. Processed 

food sales increased by 3 per 

cent to EUR 839 million and sales of 

fresh food increased by 6 per cent to 

EUR 457 million. Non-food grocery 

sales came to EUR 263 million. 

The average number of personnel was 

2,015, showing an increase of 146, 

attributable to the growth in volumes. 

Inex Partners Oy performed well and 

its profi t after fi nancial items exceeded 

profi t targets. 

The value of the Finnish grocery trade 

is not expected to grow. In the present 

competitive situation, the importance 

of price as a competitive tool is emphasised, 

requiring Inex and the other 

trade operators to constantly upgrade 

their operations. Inex’s prospects for 

profi table business in 2004 are challenging.

MEIRA NOVA OY 

Meira Nova Oy specialises in the 

purchasing of groceries for the hotel, 

restaurant and catering businesses as 

well as related logistics services. Its nationwide 

service network comprises its 

logistics centre at Vantaa and its fi ve 

sales offi ces with terminals at Vantaa, 

Turku, Tampere, Jyväskylä and Oulu, 

respectively. 

The HoReCa sector declined in 2003. 

Catering service providers’ food sales 

remained unchanged but licensed sales 

of alcohol shrank for a fourth successive 

year. Although the HoReCa sector’s 

seat numbers increased, raw material purchases 

remained unchanged and keen 

competition continued in the market. 

Meira Nova strengthened its position in 

full-service grocery deliveries to HoRe- 

Ca customers, holding approximately 

30 per cent of the market. The sale of 

products which Meira Nova purchases 

on behalf of its customers increased 

by 20 per cent year on year. This was 

attributable to large customer chains 

further concentrating their purchases 

with Meira Nova as well as new customer 

units. Sales to staff restaurants 

increased considerably. With respect 

to the company’s various product 

groups, the largest growth was seen in 

milk, meat and frozen food products. 

Meira Nova’s position as a forerunner 

in customer-orientated logistics in the 

HoReCa area was strengthened, and 

the company’s Internet-based electronic 

commerce grew substantially. The 

number of customers using this system 

is growing steadily: today, more than 

50 per cent of all orders are made via 

the Internet. 

The Hygiene Profi ciency Decree came 

into force at the beginning of 2003. 

Consequently, all persons handling fruit 

and vegetables at Meira Nova acquired 

training required by the new legislation, 

and, having passed the related examination, 

were awarded a Hygiene Profi 

ciency Card granted by the National 

Food Agency. 

Meira Nova’s business unit structure 

remained unchanged in 2003. Cold 

stores were renovated in Turku and 

Tampere to ensure an uninterrupted 

cold chain, and the terminal yard and 

facilities were extended in Vantaa. 

The extent of Meira Nova’s product 

range remained unchanged, the company 

holding approximately 3,500 

own-stock items. 

Product selections and the entire logistics 

process were developed in conjunction 

with customers and suppliers. 

The company’s service package was 

fi ne-tuned and a new cost-refl ective 

pricing system was piloted with chain 

customers. 

7 

Meira Nova increased the capacity of 

its SAP R/3 information system and 

further modifi ed the software to better 

meet its business needs. 

Quality and environmental systems 

were developed further. 

Co-operation with our customers developed 

well, as did sales. Meira Nova 

continued to improve and expand its 

Optimi brand range and its range of 

alcoholic beverages. The company delivered 

six products to Alko Inc.’s retail 

selection. 

Maintaining the working capacity and 

general well-being of personnel continued 

through the Vire fi tness project and 

the staff development programmes. 

Meira Nova’s net turnover, EUR 194 

million, was markedly larger than in 

2002, and its number of employees totalled 

230 at the end of the year, representing 

an increase of 30. 

Meira Nova’s profi t clearly outperformed 

the budgeted and 2002 levels. This was 

attributable to the growth in sales volumes 

resulting from the increased concentration 

of customers’ purchases on 

Meira Nova and success in cost control. 

EU enlargement, deregulation of imports 

and the tax relief related to alcoholic 

beverages may have a negative 

impact on sales in the HoReCa sector. 

No signifi cant increase is expected 

in basic sales volumes in this area in 

2004 – it is only through the further 

concentration of HoReCa outlets’ purchases 

on Meira Nova that their overall 

purchases can grow. Better effi ciency is 

being sought by increasing co-operation 

between suppliers, customers and other 

partners at all levels. 

Meira Nova’s outlook is bright and the 

company possesses the preconditions 

to fulfi l its targets for 2004.

FINNFROST OY 

Finnfrost Oy provides purchasing and 

logistics services related to frozen 

food for the retail trade and for the 

hotel, restaurant and catering sector. 

Ownership of the company is split 

50–50 between Inex Partners Oy 

and Tuko Logistics Oy. 

Frozen food consumption increased 

in Finland, but the growth rate and 

the overall development of the frozen 

food market remained under the 

EU average. Ice-cream consumption, 

which rose sharply in 2002, took a 

downward trend in 2003 both in Finland 

and the rest of Europe. 

As a result of the good performances 

of our clientele within the grocery 

market, growth in Finnfrost’s frozen 

food and ice-cream sales outperformed 

the industry average. 

Finnfrost’s product range was further 

diversifi ed and expanded, the 

number of products increasing by 7 

per cent. The company purchases 

frozen food products from a larger 

number of suppliers than before, and 

the number of suppliers on the market 

also continued to grow. Moreover, 

several new foreign partners 

joined Finnfrost’s network. With respect 

to the company’s various product 

groups, meat and poultry and 

food products saw the most vigorous 

growth while the largest product 

group was frozen bakery products. 

In the Finnfrost logistics centre situated 

in Jussla, Tuusula, operations 

became established and effi ciency 

improved in all sectors. We had also 

a major role in improving our customers’ 

competitiveness in frozen food 

and ice-cream sales. 

Marked growth in Finnfrost’s product 

range made it necessary to extend the 

Jussla logistics centre, which will be 

completed in May 2004. The extension 

will increase Finnfrost’s competitive 

superiority, enabling the company 

to realise product range solutions 

defi ned in its clientele’s competitive 

strategies. It also enables the company 

to take full advantage of the 

increasing supply following from EU 

enlargement. 

Finnfrost’s quality management system 

has been awarded the Lloyd’s 

Register Quality Assurance ISO 9001: 

2000 certifi cate. The application area 

of this system is the purchasing and 

logistics related to frozen food and 

ice-cream. 

Information systems were improved 

by acquiring a new production control 

system for the warehouse. Other 

investments were replacement investments 

linked to fi xed assets. 

Finnfrost Oy’s net turnover for 2003 

amounted to EUR 164 million, outperforming 

that of 2002 as well as 

the 2003 target. The company further 

consolidated its position in the frozen 

food trade. Finnfrost’s profi t also 

outperformed both the budgeted and 

2002 levels. 

Growth in the volume of frozen food 

sales is expected to exceed the grocery 

trade average and Finnfrost’s 

customers are expected to strengthen 

their market positions. With respect 

to ice-cream consumption, signifi cant 

growth is anticipated. The company 

has bright prospects for growth in 

2004. 

8

RETAILER BRANDS 

Grocery retail chains are globally increasing 

the share of retailer brands 

in their product range. Since most of 

these products are positioned at the 

inexpensive end of the market, retailer 

brands’ increasing share of total 

sales is retarding the growth in 

the value of sales. Retailer brand profi 

les are therefore being positioned in 

various ways aimed at distinguishing 

them from the general product mass 

and competitors’ products. 

International store chains are attempting 

to fortify their competitiveness 

through retailer brands which 

provide purchasing benefi ts to the 

chains and a wide product range at 

reasonable prices to customers. The 

chain’s enhanced attractiveness creates 

add-on sales and increases its 

profi tability. Retailer brands are reliable, 

facilitate consumers’ purchase 

decisions and, at the same time, increase 

consumers’ confi dence with 

the retailer. 

Inex participates in product co-operation, 

with an increasing share of its 

retailer brand purchases being made 

within the framework of the pan-Nordic 

Coop Norden. 

Inex provides three brands for its retail 

customer chains: Rainbow, Daily 

and X-tra, the number of products in 

these ranges exceeding 850 at the 

end of 2003. 

The food product brand, Rainbow, 

provides a wide selection of goods, including 

tinned and frozen food, jam, 

grain-based products, biscuits, pasta, 

sweets, juice and other beverages, 

margarine and cooking oils. 

The Daily products, from toothbrushes 

and hairspray to soft toilet paper 

and candles, as well as goods for 

household cleaning, washing-up and 

textile care, are common household 

products intended for daily, domestic 

use. Rainbow and Daily products offer 

the same quality as a manufacturer 

brand, but at a lower price. 

The pan-Nordic X-tra brand includes 

both foodstuffs and non-food products. 

These reliable, utility-grade 

products are available at reasonable 

prices. 

An image and data bank intended for 

industry experts and consumers was 

published on the Inex website in the 

spring of 2003. It contains information 

on approximately 850 products 

provided by Inex under the retailer 

brands Rainbow, Daily, Hyvä Ostos 

(Good Buy), X-tra and Pouta. From 

9 

this information source, industry experts 

will fi nd product family logos as 

well as high- and low-resolution images. 

This service provides basic information 

on products, including their 

EAN codes, ingredients, nutritional information, 

the country of manufacture 

and, usually, advice on how to use the 

products. New products are presented 

under a separate section. A search 

function makes product details and 

images easy to fi nd. 

Meira Nova’s Optimi brand products 

for the hotel, restaurant and catering 

sectors are manufactured using Meira 

Nova’s own recipes, or under contract 

in co-operation with industrial manufacturers 

and Meira Nova’s customers. 

Inex’s development kitchen has a 

key role in processing food under its 

own brands. In this kitchen, product 

candidates are tested and analysed, 

among other things, for their sensory 

quality and applicability to various 

uses, and customer preferences are 

charted. 

As part of the quality management 

chain, Inex’s laboratory authenticates 

product safety, defi nes the quality criteria 

and product specifi cations for 

Inex’s retail brand products and formulates 

package markings. 

Retailer brand products provided by 

Inex and Meira Nova are purchased 

from reliable Finnish and foreign 

manufacturers, taking quality, safety 

and environmental issues into account 

even at the initial product design 

stage. 

Retailer brand products combine high 

quality with reasonable prices.

INEX AND ITS STAFF 

The purpose of the Inex Group’s 

human resources strategy is to provide 

expert, motivated employees 

who constantly renew their skills 

and are committed to our corporate 

goals. In this respect, a key task is 

to turn the Group companies into 

employers of choice, which motivate 

their current employees and 

attract those of the future. 

Our personnel strategy emphasises 

the provision of suffi cient, 

high-quality human resources. To 

achieve this goal, we are continuously 

developing our operational 

processes, and improving management 

skills and the interaction between 

management and other staff. 

Occupational health is promoted 

by maintaining and improving the 

mental, social and physical wellbeing 

of our employees. 

In 2003, the Inex Group employed 

2,242 people on average, 2,015 of 

whom were employed by the parent 

company, Inex Partners Oy. The 

company’s average number of personnel 

increased by 8 per cent and 

Meira Nova’s by 14 per cent. This 

increase was attributable to the 

growth in product volumes. 

The development of incentive 

schemes within Inex Partners Oy 

and Meira Nova Oy continued as 

planned. In the long term, our aim 

is to increase working effi ciency 

and promote incentive-based pay. 

Inex is actively responding to the 

obligations set by the Occupational 

Safety Act which came into force 

at the beginning of 2003. As part 

of a national employment accident 

prevention programme for 2001– 

2005, Inex has set a zero target for 

employment accidents. 

Developing Expertise 

The Inex Group emphasises the 

continuous and goal-oriented development 

of expertise. This development 

work, which is in line with the 

Group’s key goals, is focused on the 

strengthening of the Group’s core 

competencies. 

All Inex employees have the opportunity 

to improve their professional 

skills and develop their competencies 

through three learning paths: 

the Inex path (in-house courses), 

the College path (diploma studies) 

and/or the Learning at Work path. 

The key goal of human resources 

development is that the employee 

is able to apply the newly-acquired 

skills within his or her own work. An 

evaluation model is currently being 

created in order to assess whether 

related goals have been achieved in 

such a manner that the practical effects 

of training can be identifi ed in 

operational performance. 

Multi-modal training provided by 

the employer through various channels 

is supplemented by self-initiated 

learning at work. This enables 

employees to learn new things by 

gaining experience from different 

tasks and working groups and taking 

advantage of the organisation’s 

pool of experience-based expertise. 

Inex’s operational process descriptions 

were updated. In this 

area, the future aim is to further 

strengthen process work skills within 

the organisation. 

The development of supervisory 

and leadership skills is a continuous 

process. As part of this work, 

confi dential performance reviews 

between employees and supervisors 

were extended to cover the entire 

organisation. The purpose of this 

is to upgrade the interactive development 

of the individual and the 

organisation and to increase motivation. 

Well-being at Work 

The Vire project, aimed at maintaining 

and improving the physical, 

mental and social well-being 

of staff, continued in the form of 

everyday, supervisor-led activities. 

As part of this work, more than 80 

Inex employees participated in a 

national weight control programme 

in January–April 2003, designed 

to encourage participants to lose 

10 

weight, obesity being identifi ed as 

harmful to health. 

Kilo logistics centre’s occupational 

health services, the Social Insurance 

Institution and Orton Rehabilitation 

created a rehabilitation 

programme tailored to the special 

needs of logistics centre employees. 

A pilot group steered by the occupational 

health services focuses on 

the prevention of back problems 

by providing guidance and activating 

participants to take personal responsibility 

for the care of the back. 

A rehabilitation task force dedicated 

to logistics centre employees’ 

well-being at work and its general 

advancement was established at 

the end of 2003, consisting of the 

representatives of various co-operation 

partners. 

Co-operation 

Employee representatives selected 

by the various staff groups participated 

in consultative meetings between 

employees and management, 

and in a number of (skills) development 

projects at Group level. This 

regular co-operation, which has 

been both constructive and fruitful, 

is aimed at the ongoing development 

of the working community and 

the company’s operational preconditions. 

Staff representatives and the 

Group’s management convened 

twice during the year to discuss 

current issues in a participative 

seminar. 

Inex Partners Oy’s Board of Directors 

has two staff representatives. 

Staff have maintained a positive attitude 

and high motivation, despite 

the exceptional workload pressures 

that they have recently experienced.

INEX AND THE ENVIRONMENT 

Environmentally responsible business 

operations form an integral 

part of Inex’s business ethics and 

social interaction. 

Target-based environmental work 

has already been underway for 

several years now within the Inex 

Group. Environmental systems complying 

with the ISO 14001 standards 

are being implemented according 

to plan on the basis of an 

environmental policy approved by 

Inex’s Board. The attainment of the 

policy’s goals is monitored and the 

results are reported systematically. 

Environmental Systems 

Inex Partners Oy’s logistics centres 

in Kilo and Hakkila, and that 

of Meira Nova in Vantaa, apply 

environmental management programmes. 

The programmes and the 

related handbooks of the Kilo and 

Vantaa centres were updated at 

the beginning of the year, and new 

goals, to be achieved by the end of 

2004, were set. Hakkila logistics 

centre’s environmental management 

programmes will be updated 

in the spring of 2004. 

Meira Nova conducted its fi rst environmental 

audit and Inex continued 

its internal audits on the basis of a 

two-year plan. The audit programme 

includes audits of all operations 

falling within the scope of an environmental 

system. In-house environmental 

auditors receive the necessary 

training for their tasks. 

The Group organised employee 

training on the updated environmental 

goals, supported by related 

material tailored according to staff 

group. The aim is to provide each 

Inex employee with the necessary 

information on environmental issues 

relevant to his or her own 

work. 

Kilo logistics centre employees focused 

on the environmental effects 

of their operations during an extensive 

series of training events which 

were attended by 63 per cent of 

these employees. The aim of this 

ongoing training is to provide as 

many staff as possible with environmental 

information during 2004. 

At the Hakkila logistics centre, approximately 

70 per cent of the employees 

participated in training on 

the impact of their work on the environment. 

Achieving Our Environmental Targets 

In 2003, the environmental work of 

the logistics centres of Inex in Kilo 

and Meira Nova in Vantaa focused 

on the implementation of the new 

environmental management programmes. 

Inex will further increase the use of 

recyclable transportation units, rolltainers, 

plastic boxes and pallets, 

in order to save packaging material 

and reduce related waste. 

21 per cent of the entire delivery 

volume of the Kilo logistics centre 

was transported in reusable plastic 

boxes. The slight decrease compared 

to 2002 was attributable to 

the relatively low price of cardboard 

boxes. The Hakkila logistics centre 

increased the volume of its rolltainer 

transports. 

Waste management is a key development 

area at Inex. Waste-sorting 

effi ciency is monitored through 

scheduled audits, and waste-sorting 

skills are supported by training 

and related guidelines. The Group’s 

average waste-sorting effi ciency fell 

short of the target level. 

The amount of mixed waste in proportion 

to the tonnage of goods 

supplied by the Kilo logistics centre 

was reduced by 13 per cent and the 

total amount of waste by 5 per cent 

compared to 2002. Inex achieved a 

waste recycling rate of 73 per cent 

in Kilo, 92 per cent in Hakkila, and 

68 per cent at Meira Nova’s logistics 

centre in Vantaa 

Environmental audits targeted at 

transportation companies continued. 

Recycling Services for Customers 

Meira Nova’s logistics centre at Piispankylä 

accepted glass from its customers 

through its bottle recycling 

system, and forwarded it for cleaning 

and recycling as raw material. 

11 

Hakkila logistics centre expanded 

its packaging materials handling 

services. The aim is to reduce packaging 

waste produced by retail 

stores and forward it for recycling in 

a centralised manner. 

Communications and Interest Groups 

Environmental articles were published 

on the Group’s information 

network and discussed in internal 

meetings and the Group’s personnel 

and customer magazines. 

In practice, environmental issues 

are managed by lines of business 

whose contact persons interact with 

our key interest groups. 

Goals for 2004 

We will expand our environmental 

work beyond our own organisational 

boundaries. The aim of this co-operation 

is to apply the results of environmental 

management work in our 

own operations and in the supply 

chain consisting of suppliers and 

transport companies. 

Inex will emphasise environmental 

aspects when choosing suppliers 

and launch related environmental 

audits. Whenever possible, the company 

will also underline the importance 

of environmentally friendly 

packages when establishing its 

product ranges. 

Inex attempts to examine the impact 

of domestic transports on the 

environment, encourage its partners 

to report related key fi gures to Inex 

and continue audits on its transport 

companies. 

The Group will continue to invest in 

environmental know-how development 

and related communications.

BOARD OF DIRECTORS´ REPORT FOR 2003 

The Inex Group’s main businesses are the purchase 

of groceries and supply of logistics services for retail 

chains and the supply of logistics services for the speciality 

products trade. The Group also provides grocery 

purchasing and logistics services for the hotel, restaurant 

and catering (HoReCa) sector. The Group’s main 

business units are organised into limited companies. 

The purpose of our business operations is to provide our 

customer chains with a strategic and commercial competitive 

edge and fi nancial benefi ts. Moreover, we aim 

to create new competitive benefi ts through our ongoing 

and innovative development functions. While remaining 

focused on our business goals, we will aim to keep our 

own activities profi table, as well as maintaining a stable 

fi nancial position. 

Our businesses’ competitiveness is based on cost-effi - 

cient processes which cross organisational boundaries 

and which we develop continuously in co-operation with 

our customer chains, suppliers and other partners. 

During 2003, no major changes were made to the structure 

of our purchasing and logistics businesses, or the 

organisation of the activities of the Inex Group. 

In response to the tighter market situation and, in particular, 

to the intensifying price competition, the Inex Group 

will concentrate on company brands, international purchasing 

co-operation, information management and personnel 

as its key development targets. To further improve 

cost effi ciency, the Group has focused on the defi nition of 

value chains and upgrading of business processes. 

Inex Group companies’ main customers include the retail 

and HoReCa chains of the S Group and the Co-operative 

Tradeka Corporation. 

Ownership of the parent company, Inex Partners Oy, is 

split 50–50 between SOK Corporation and Co-operative 

Tradeka Corporation. 

Organisation of Business and Other Activities 

The parent company of Inex Group is Inex Partners Oy. 

The parent company’s resources are used to provide 

services in support of the fi nances, management and development 

of the subsidiaries’ business operations. 

The business activities of Inex Group companies are as 

follows: 

Inex Partners Oy 

• Purchase of groceries and supply of logistics services 

for the retail sector 

• Logistics services for the speciality products trade 

Meira Nova Oy 

• Grocery purchasing, marketing and logistics services 

for the hotel, restaurant and catering (HoReCa) sector 

The Canelokiinteistöt Oy real estate and investment 

company leases the lots and premises it owns. Finnfrost 

Oy, an associated company, specialises in the purchase 

12 

of frozen products, and in logistics services for retail and 

HoReCa units – Inex Partners Oy owns 50 per cent of 

this company. 

Tucano Oy (formerly Meira Oy) was merged into the parent 

company on 28 November 2003. On the same day, 

the Group fi nalised a voluntary dissolution of its wholyowned, 

inactive subsidiaries Elintarvikemestarit Oy, Makumauste 

Oy, Nautintopapu Oy and Leijona Vaatetus 

Oy. Furthermore, Inex sold its holding in the Oulu-based 

company Ps-Logistiikkakylä Oy at the end of 2003. 

The Business Environment and the Group’s Activities 

The general uncertainty concerning the future development 

of the international economy was the predominant 

trend during the fi nancial year. Financial and stock market 

volatility and the sudden and successive changes 

in market trends weakened economic stability and predictability. 

This was a global trend attributable not only 

to weak economies in several key countries, but also 

to the uncertain political situation, such as the war in 

Iraq, which had a major effect on market fl uctuations 

throughout the world. 

The substantial strengthening of the euro towards the 

end of the year weakened export opportunities in Finland 

and elsewhere in the EU area. Finland’s economical 

environment and development indicators remained 

stable. Low infl ation and interest rates contributed to 

consumer confi dence which also remained stable. 

In Finland, the growth in the grocery retail market diminished. 

According to the Finnish Food Marketing Association, 

the year-on-year growth was 1.3 per cent. The 

HoReCa sector experienced zero growth. 

International operators and operating models increased 

their infl uence in Finland and its neighbouring countries, 

affecting the markets and competitive situation of 

the grocery trade and industry. In particular, this was refl 

ected in the emphasis placed on price as a competitive 

tool. 

Inex Group’s main customer chains further strengthened 

their position and market share in the grocery retail 

trade. 

Inex Group’s business units clearly outperformed the 

industry average in terms of growth in sales. Both the 

parent company, Inex Partners Oy, and Meira Nova Oy, 

which provides services for the HoReCa sector, consolidated 

their share of sales in their respective sectors, as 

well as their market shares. 

Improved cost effi ciency and reliability in deliveries 

throughout our core processes brought operational and 

economic benefi ts to Inex Group’s customers. Development 

projects covered product ranges, purchasing cooperation, 

information management, personnel and operational 

networks. The Group has also analysed the impact 

of, and opportunities created, by EU enlargement, 

and included these in its action plans for 2004.

Major development projects of the fi nancial year included: 

• Inex Partners Oy: product range and company brands; 

purchasing partnerships, both national and international; 

logistics centres’ equipment; information systems; 

process defi nition and description; and the suffi 

ciency, skills and well-being of employees. 

• Meira Nova Oy: improving profi tability and cost effi 

ciency; product and service packages; further development 

of the electronic ordering system; and the 

service network. 

• Finnfrost Oy: extension and utilisation of the logistics 

centre at Jussla; information systems and product 

range. 

Across the whole Group and all businesses: 

• IT projects enhancing information management; cooperation 

with service suppliers; and the IT controller 

function 

• Security issues 

• The Vire project, which aims at improving the entire 

staff’s well-being at work, and knowledge management. 

Turnover and Market Position 

The diminishing growth (at 1.3 per cent) of the Finnish 

grocery retail trade continued. In general, the HoReCa 

sector experienced zero growth in sales. 

Inex Group’s main customer groups, in particular the 

S Group’s store chains, further increased their market 

share. 

Inex Group’s sales totalled EUR 1,839 million, an increase 

of 5 per cent. This was also attributable to the increased 

concentration of key customers’ purchases on 

Inex, growth in their market shares and the new HoReCa 

sector customers. 

The Group’s total sales were distributed between its 

main customers as follows: S Group, 63 per cent; Tradeka 

Corporation, 21 per cent; Elanto, 6 per cent; other 

customer groups, 10 per cent, of which exports, mainly 

to Estonia, accounted for approximately 0.1 per cent. 

Group sales (excl. VAT), by business activity and company, 

were distributed as follows: 

EUR million Total 2003 Index 2002 

Inex Partners Oy 1,649 104 

Meira Nova Oy 196 115 

Group total 1,839 105 

Inex Group’s net turnover came to EUR 1,784.4 million, 

increasing by 5.2 per cent on the previous year. 

Inex Partners Oy strengthened its position in grocery 

purchasing and logistics. Meira Nova Oy substantially increased 

its market share as a supplier for the HoReCa 

wholesale business, in particular with respect to various 

customer chains. 

13 

Financial Performance 

Inex Group and its companies were profi table. 

The Group and parent company’s results before extraordinary 

items and taxes were profi table and better than 

anticipated. 

With respect to the subsidiaries, Meira Nova Oy was also 

profi table, its results being above the budgeted level and 

improving markedly on the previous year. 

Tucano Oy’s (11-month) results before extraordinary 

items and taxes were positive. This was mainly attributable 

to the interest income generated by the business 

transaction carried out in December 2002. Tucano’s 

11-month results were integrated in Inex Group’s 

consolidated results. 

Bonuses, which increase the customer chain’s competitiveness, 

were higher than in 2002. 

Purchasing terms improved, thanks to strong growth and 

cost control and better cost-effi ciency gained through 

our systematic development functions. Our new business 

models, fi ne-tuned in co-operation with customers, 

suppliers and other partners, as well as the launch and 

progress of process developments implemented beyond 

organisational boundaries, increased the preconditions 

for fi nancial success. 

The Group’s profi t before extraordinary items and taxes 

amounted to EUR 4.5 million, and it posted a profi t of 

EUR 3.1 million for the fi nancial year. 

Inex Partners Oy’s profi t before extraordinary items and 

taxes was EUR 3.9 million, the company posting a profi t 

of EUR 4.4 million for the fi nancial year. The group contribution 

provided by Meira Nova Oy, and totalling EUR 

1.5 million, improved the parent company’s results for 

the fi nancial year. 

Financing 

The Group’s liquidity was high and fi nancial position and 

net fi nancing costs sound throughout the year. 

Internal fi nancing and the management of working capital 

according to plan ensured a positive cashfl ow. The 

sales-price items repatriated to Tucano Oy from the divestment 

of Meira Oy’s business increased total cashfl ow 

towards the end of the year. 

Investment levels (at EUR 3.2 million) were markedly 

lower than planned and were fi nanced through cashfl 

ows. 

The Group’s net fi nancing costs were positive (EUR +0.7 

million). Although the amount of income was slightly 

higher than anticipated, currency-hedging costs increased 

fi nancing costs. A total of EUR 1.4 million in 

interest-bearing loans was paid. At the end of the year, 

the company’s loans totalled EUR 3.9 million.

The Group’s equity ratio fell to 20.5 per cent, while return 

on investment came to 9.7 per cent. Dividends paid 

in the spring of 2003 totalled EUR 7.0 million. 

Investments and Development 

In accordance with the Group’s strategic outline, the 

streamlining of the Group companies was divided into 

projects which, on the one hand, enhanced the competitiveness 

of the current business structure and, on the 

other, initiated programmes to develop and support new 

competitive advantages. 

More precisely, we focused on the development of our 

product ranges, in particular company brands and service 

models; purchasing partnerships, both national and 

international; information management, and our staff’s 

skills. 

To create preconditions for, for instance, more cost-effi - 

cient co-operation within the partner network, Inex Partners 

Oy made signifi cant investments in the defi nition 

and development of value chains and core processes. 

Pilot projects related to the development of strategic repositioning 

were launched during the fi nancial year. Various 

portal and extranet projects aimed at improving information 

management were launched towards the end 

of the year and their implementation will continue in 

2004. 

The Inex Group continued the implementation of its environmental 

programmes. A number of projects aimed at 

enhancing corporate security focused on development 

programmes triggered by the updating of data security 

principles throughout the Group. 

The Group spent a total of EUR 3.2 million on investments 

and the acquisition of fi xed assets. The sum was 

divided between the companies as follows: 

EUR million Total 2003 Change from 2002 

Inex Partners Oy 2.5 –3.1 

Meira Nova Oy 0.6 0.4 

Other companies 0.0 –1.2 

Group total 3.2 –3.9 

In addition, our logistics centres (mainly Kilo) invested 

approximately EUR 4.1 million in construction and renovation 

projects which were carried out as joint projects 

and funded by the lessor. 

Major investment projects were: 

• Buildings and production machinery at 

Inex Partners Oy’s logistics centre in Kilo 

• Inex Partners Oy’s SAP R/3 information 

systems and hardware 

• The conveyor sorter at Inex Partners Oy’s logistics 

centre in Hakkila 

• Meira Nova Oy’s SAP R/3 information systems and 

warehouse technology. 

14 

Personnel and Organisation 

On 31 December 2003, the number of personnel employed 

by the Group totalled 2,214 and the average 

number of personnel during the year was 2,242. 

Number of personnel employed by each company: 

Change Change 

from Average from 

31.12.2003 2002 2003 2002 

Inex Partners Oy 1,984 159 2,015 146 

Meira Nova Oy 230 30 227 28 

Other companies 0 0 0 –148 

Group total 2,214 189 2,242 26 

The increase in the number of employees at Inex Partners 

Oy and Meira Nova Oy was caused by the rapid 

growth in business volumes and orders processed. 

The priorities in personnel development were supervisor 

work and performance review models, process and 

project work and incentive schemes. 

Several development projects were implemented to upgrade 

the personnel administration’s information systems. 

The entire organisation continued to invest in the systematic 

implementation of the Vire project activities 

aiming at improvements in the working capacity and 

well-being of employees. 

Outlook for 2004 

Signifi cant changes are expected in the domestic and 

international markets and competitive situation in 2004, 

but their consequences will remain diffi cult to forecast. 

Prospects for growth remain moderate and include not 

only economic but also other uncertainties, both national 

and international. 

EU enlargement in the spring of 2004, and the related 

actions initiated by the Finnish government, among others, 

will create threats but also provide numerous sectors 

with signifi cant opportunities which they must be 

prepared to seize. 

Growth in the Finnish grocery trade is expected to turn 

negative. The anticipated intensifi cation of, and the 

changes in, the competitive situation will be a challenge 

for all market operators. 

Inex Group will continue to invest in its key strengths: 

ongoing reform, cost-effi cient processes, and upgraded 

co-operation within the key partner network.

CONSOLIDATED 

INCOME STATEMENT 

EUR 1,000 1.1. – 31.12.2003 1.1. – 31.12.2002 

NET TURNOVER 1,784,429 1,695,487 

Increase or decrease in fi nished goods stocks 

and work in progress (+/–) 0 527 

Production for own use 0 95 

Share of associated companies’ profi ts 76 104 

Other operating income 2,234 1,716 

Materials and services 1,610,233 1,517,668 

External services 51,353 1,661,586 47,048 1,564,716 

Personnel costs 71,215 70,195 

Depreciation and value adjustments 5,919 8,910 

Other operating expenses 

Rents 16,069 17,429 

Other expenses 28,175 44,244 32,028 49,457 

OPERATING PROFIT 3,775 4,651 

Financial income and expenses (+/–) 720 –97 

PROFIT BEFORE EXTRAORDINARY ITEMS 4,495 4,554 

Extraordinary items (+/–) 0 24,168 

PROFIT BEFORE TAXES 4,495 28,722 

Direct taxes (+/–) –1,368 –6,665 

PROFIT FOR THE FINANCIAL YEAR 3,127 22,057 

15

EUR 1,000 31.12.2003 31.12.2002 

ASSETS 

FIXED AND OTHER NON-CURRENT ASSETS 

Intangible assets 10,646 12,013 

Tangible assets 13,226 14,628 

Shares in associated companies 1,425 1,400 

Other fi nancial assets 1,101 26,398 1,106 29,147 

CURRENT ASSETS 

Stocks 48,930 47,458 

Long-term debtors 0 422 

Short-term debtors 95,767 103,246 

Short-term investments 108,952 95,810 

Cash at bank and in hand 2,459 256,108 5,351 252,287 

Total assets 282,506 281,434 

SHAREHOLDERS’ CAPITAL 

AND LIABILITIES 

CONSOLIDATED 

BALANCE SHEET 


Share capital 13,455 13,455 

Retained earnings 41,213 26,156 

Profi t for the fi nancial year 3,127 57,795 22,057 61,668 

PROVISIONS 162 0 

CREDITORS 

Deferred tax liability 2,716 2,894 

Long-term creditors 2,472 3,918 

Short-term creditors 219,361 224,549 212,954 219,766 

Total liabilities 282,506 281,434 

16

CONSOLIDATED 

CASH FLOW STATEMENT 

EUR 1,000 1.1.–31.12.2003 1.1.–31.12.2002 

BUSINESS OPERATIONS 

Operating profi t 3,700 4,547 

Value adjustments to operating profi t (1) 6,084 8,880 

Change in working capital (2) 16,628 –20,407 

CASH FLOW FROM BUSINESS OPERATIONS 

BEFORE FINANCIAL ITEMS AND TAXES 26,412 –6,980 

Paid interests and other fi nancial expenses –1,742 –2,395 

Received interest payments and other fi nancial income 2,934 1,813 

Received dividends from business operations 51 132 

Paid income taxes –6,238 –3,230 

CASH FLOW BEFORE EXTRAORDINARY ITEMS 21,417 –10,660 

Cash fl ow from extraordinary items in business operations 0 168 

CASH FLOW FROM OPERATIONS 21,417 –10,492 

INVESTMENTS 

Investments in tangible and intangible assets –3,150 –7,118 

Capital gains on tangible and intangible assets 0 37,172 

Subsidiary shares sold 2 12 

Capital gains on other shares 0 2 

Received dividends from investments 25 26 

CASH FLOW FROM INVESTMENTS –3,123 30,094 

FINANCING 

Decrease (–) in non-current loans –1,446 –1,446 

Increase (–)/decrease (+) in receivables 403 28 

Paid dividends –7,000 –4,440 

CASH FLOW FROM FINANCING –8,043 –5,858 

INCREASE (+)/DECREASE (–) IN LIQUID FUNDS 10,251 13,745 

Liquid funds at beginning of year 101,161 87,416 

Liquid funds at end of year 111,412 101,161 

10,251 13,745 

Adjustments to operating profi t (1) 

Capital gains(–)/losses (+) on fi xed assets 3 –26 


Other income and expenses not involving payments 162 0 

6,084 8,880 

Change in working capital (2) 

Change in current receivables 4,118 –3,427 

Change in stock –1,471 –5,899 

Change in current non-interest bearing liabilities 13,981 –11,081 

16,628 –20,407 

17


INCOME STATEMENT 

EUR 1,000 1.1. – 31.12.2003 1.1. – 31.12.2002 

NET TURNOVER 1,596,598 1,530,963 

Other operating income 3,845 3,924 

Materials and services 

Materials and supplies 1,441,975 1,386,574 

External services 46 587 1,488,562 43,113 1,429,687 

Personnel costs 63,732 58,380 


Other operating expenses 

Rents 15,083 14,306 

Other expenses 25,826 40,909 25,282 39,588 

OPERATING PROFIT 2,110 2,266 

Financial income and expenses 1,810 10,918 

PROFIT BEFORE EXTRAORDINARY ITEMS 3,920 13,184 

Extraordinary items 1,684 19,784 

PROFIT BEFORE APPROPRIATIONS 5,604 32,968 

AND TAXES 

Appropriations 545 947 

Direct taxes –1,747 –9,854 

PROFIT FOR THE FINANCIAL YEAR 4,402 24,061 

18

EUR 1,000 31.12.2003 31.12.2002 

A S S E T S 

FIXED AND OTHER NON-CURRENT ASSETS 

Intangible assets 9,830 11,167 

Tangible assets 12,108 13,379 

Financial assets 5,144 27,082 13,569 38,115 

CURRENT ASSETS 

Stocks 42,227 40,897 

Long-term debtors 0 422 

Short-term debtors 87,358 107,043 

Short-term investments 108,952 75,210 

Cash at bank and in hand 2,448 240,985 5,339 228,911 

S H A R E H O L D E R S’ C A P I T A L 

A N D L I A B I L I T I E S 


BALANCE SHEET 

19 

268,067 267,026 


Share capital 13,455 13,455 

Retained earnings 32,993 15,932 


Accumulated appropriations 9,332 9,877 

CREDITORS 

Long-term creditors 2,472 3,919 

Short-term creditors 205,413 207,885 199,782 203,701 

268,067 267,026


CASH FLOW STATEMENT 

EUR 1,000 1.1.–31.12.2003 1.1.–31.12.2002 

BUSINESS OPERATIONS 

Operating profi t 2,110 2,267 

Value adjustments to operating profi t (1) 5,134 4,959 

Change in working capital (2) 9,800 –7,772 

CASH FLOW FROM BUSINESS OPERATIONS 

BEFORE FINANCIAL ITEMS AND TAXES 17,044 –546 

Paid interests and other fi nancial expenses –1,713 –2,178 

Received interests and other fi nancial income 2,691 2,045 

Received dividends from business operations 51 132 

Paid income taxes –6,224 49 

CASH FLOW BEFORE EXTRAORDINARY ITEMS 11,849 –498 

Cash fl ow from extraordinary items in business operations 183 184 

CASH FLOW FROM BUSINESS OPERATIONS 12,032 –314 

INVESTMENTS 

Investments in tangible and intangible assets –2,522 –5,584 

Capital gains on tangible and intangible assets 0 12 

Capital gains on shares 8,422 0 

Change in other long-term investments 0 6,727 

Received interest payments from investments 0 446 

Received dividends from investments 875 7,090 

CASH FLOW FROM INVESTMENTS 6,775 8,691 

FINANCING 

Decrease in non-current loans –1,446 –1,446 

Increase (–)/decrease (+) in current liabilities 487 92 

Increase (–)/decrease (+) in current receivables 403 28 

Paid dividends –7,000 –4,440 

Contributions given to/received from subsidiaries 19,600 –9,418 

CASH FLOW FROM FINANCING 12,044 –15,184 

INCREASE (+)/DECREASE (–) IN LIQUID FUNDS 30,851 –6,807 

Liquid funds at beginning of year 80,549 87,356 

Liquid funds at end of year 111,400 80,549 

30,851 –6,807 

Adjustments to operating profi t (1) 

Capital gains (–) and losses (+) on fi xed assets 4 –7 


5,134 4,959 

Change in working capital (2) 

Change in current receivables –1,581 4,878 

Change in stock –1,330 –3,388 

Change in current non-interest bearing liabilities 12,711 –9,262 

9,800 –7,772 

20

ACCOUNTING PRINCIPLES OF THE CONSOLIDATED 

FINANCIAL STATEMENTS 

SCOPE 

NOTES TO THE FINANCIAL STATEMENTS 

The consolidated fi nancial statements include all subsidiaries 

owned by the parent company, Inex Partners 

Oy, and the associated company, Finnfrost Oy. 

The income statement of Tucano Oy, merged into the 

Group’s parent company during the fi nancial year, is incorporated 

in the consolidated income statement up to 

the date of the merger, 28 November 2003. 

The two real-estate companies mentioned in the Notes 

were excluded from the consolidation of associated companies, 

since they did not have a signifi cant effect on 

the Group’s fi nancial result or its distributable capital 

and reserves. 

CHANGES IN GROUP STRUCTURE 

Tucano Oy was merged into the parent company during 

the fi nancial year. The inactive subsidiaries Suomen 

Elintarvikemestarit Oy, Leijona Vaatetus Oy, Makumauste 

Oy and Nautintopapu Oy were dissolved through 

voluntary liquidation. The shares in PS-Logistiikkakylä 

Oy were sold. 

ACCOUNTING PRINCIPLES 

Intra-Group Shareholding 

Intra-Group holdings were eliminated using the acquisition 

cost method. 

Intra-Group Transactions and Margins 

Intra-Group transactions and intra-Group receivables 

and payables were eliminated. 

Associated Companies 

The associated company, Finnfrost Oy, is included in 

the consolidated fi nancial statements, using the equity 

method. The Group’s share of the associated company’s 

profi t for the fi nancial year is shown on the income 

statement after net turnover and before expenses, since 

the activities of this company are closely interwoven 

with the Group’s supplier and customer relationships. 

Dividends received from the associated company were 

eliminated. 

21 

VALUATION OF FIXED ASSETS 

Fixed assets entered in the balance sheet refl ected the 

acquisition cost, comprising variable costs less planned 

depreciation. The method behind planned depreciation 

is explained in the notes to the income statement and 

balance sheet. 

VALUATION OF STOCKS 

Stocks entered in the balance sheet refl ected the acquisition 

cost, consisting of variable costs in keeping with 

the FIFO principle, or the replacement value or probable 

selling price, whichever is lower. 

CURRENCY DENOMINATED ITEMS 

Business transactions in foreign currencies completed 

during the fi nancial year were entered at the exchange 

rate on the transaction date. In the fi nancial statements, 

receivables and liabilities in foreign currencies were converted 

into euros at the ECB rate on the day of closing, 

and conversion differences were charged or credited to 

income. 

PENSION SCHEMES 

Statutory and voluntary pension schemes for the Group 

companies’ personnel are managed by external pension 

insurance companies. Pension costs were entered as expenses 

during the year of accrual. 

IMPUTED TAXES 

Imputed tax liabilities were calculated based on the 

temporary differences between actual taxation and 

amounts shown on fi nancial statements, using the confi 

rmed tax rate for the following years that was valid on 

the day of closing. The balance sheet shows the imputed 

tax liability in its entirety.

NOTES TO THE INCOME STATEMENTS 

Inex Group Inex Partners Oy 

EUR million 2003 2002 2003 2002 

1 Net turnover Grocery wholesale trade 1,568.3 1,505.5 1,568.3 1,505.5 

by line of business Materials management services 28.3 25.5 28.3 25.5 

Food service wholesale trade 194.2 169.5 0 0 

Food industry 0 42.1 0 0 

Intra-Group turnover –6.4 –47.1 0 0 

Total 1,784.4 1,695.5 1,596.6 1,531.0 

EUR 1,000 

2 Other operating Capital gains on fi xed assets 0 25 0 7 

income Rent income 0 0 277 277 

Income from services 2,234 1,691 3,568 3,641 

Total 2,234 1,716 3,845 3,925 

3 Materials, supplies Purchases during the year 1,611,562 1,512,821 1,443,229 1,389,796 

and consumables Change in stocks (+/–) –1,329 4,846 –1,254 –3,222 

Total 1,610,233 1,517,667 1,441,975 1,386,574 

4 Personnel costs Salaries and wages 58,509 57,086 52,554 47,741 

Pension costs 9,047 9,124 7,967 7,404 

Other social expenses 3,659 3,985 3,211 3,235 

Total 71,215 70,195 63,732 58,380 

See 23 for notes to the staff and 

members of the Board. 

5 Depreciation and Planned depreciation 5,919 8,910 5,130 4,966 

value adjustments Total 5,919 8,910 5,130 4,966 

The itemised specifi cations of changes in depreciation and depreciation differences are in 

cluded in fi xed assets and accumulated appropriations in the balance sheet notes. 

Planned depreciation is based on the original acquisition cost of fi xed assets 

and their expected useful lives, which are as follows: 

Years 

Intangible assets 

Goodwill 10 

Consolidated goodwill 10 

Other capitalised expenditure 7–25 

Other intangible assets 3–5 

Tangible assets 

Buildings and structures 20–30 

Building equipment 10 

Factory equipment 5–10 

Warehouse equipment 5–10 

Offi ce machines and equipment 7–10 

Motor vehicles 5 

Computer equipment 5 

Depreciation is calculated from beginning of month the item is brought into use. 

22


EUR 1,000 2003 2002 2003 2002 

6 Financial income Dividend income from Group companies 0 0 1,197 9,949 

and expenses Dividend income from 0 0 72 185 

associated companies 

Dividend income from others 26 26 36 37 

Total dividend income from 

investments 26 26 1,305 10,171 

Interest income from other 

investments 

From Group companies 0 0 0 446 

Other interest and fi nancial income 

From Group companies 0 0 125 364 

From others 2,430 2,269 2,087 2,113 

Total interest and other fi nancial 2,456 2,295 3,517 13,094 

income 

Interest and other fi nancial expenses 

To Group companies 0 0 23 16 

To others 1,736 2,392 1,684 2,160 

Total interest and other 1,736 2,392 1,707 2,176 

fi nancial expenses 

Total fi nancial income and expenses 720 –97 1,810 10,918 

7 Extraordinary Extraordinary income 

items Group contributions received 0 0 1,500 19,600 

Other 0 24,168 184 184 

Total 0 24,168 1,684 19,784 

Total extraordinary items 0 24,168 1,684 19,784 

8 Appropriations Increase (–)/decrease (+) 

in depreciation difference 0 0 545 947 

Total 0 0 545 947 

9 Income taxes Direct taxes on ordinary operations 1,546 160 1,312 4,118 

for the year (+/–) 

Direct taxes on ordinary operations 0 0 0 0 

for the previous year (+/–) 

Direct taxes on extraordinary items (+/–) 0 7,009 435 5,737 

Effect of accruals differences 0 0 0 0 

Change in deferred tax liability –178 –503 

Taxes according to taxable income 1,368 6,666 1,747 9,855 

23

NOTES TO THE ASSETS IN THE BALANCE SHEETS 



10 Intangible and Intangible assets 

tangible assets 

Formation expenses 

Acquisition cost at 1.1. 0 74 0 74 

Increase 1.1. – 31.12. 0 0 0 0 

Decrease 1.1. – 31.12. 0 –74 0 –74 

Transfers 1.1. – 31.12. 0 0 0 0 


Accumulated amortisation at 1.1. 0 74 0 74 

Accumulated amortisation on 

decreases and transfers 0 –74 0 –74 

Amortisation for the year 0 0 0 0 


Book value at 31.12. 0 0 0 0 

Intangible rights 

Acquisition cost at 1.1. 14,498 15,110 12,363 11,630 

Increase 1.1. – 31.12. 74 83 41 76 

Decrease 1.1. – 31.12. 0 –1,381 0 –6 

Transfers 1.1. – 31.12. 2,181 686 2,125 663 


Accumulated amortisation at 1.1. 10,067 8,958 8,713 6,817 

Accumulated amortisation 

on decreases and transfers 0 –1,261 0 –6 

Amortisation for the year 2,240 2,370 1,819 1,902 


Book value at 31.12. 4,446 4,431 3,997 3,650 

Goodwill 

Acquisition cost at 1.1. 0 7,280 0 7,280 

Increase 1.1. – 31.12. 0 0 0 0 

Decrease 1.1. – 31.12. 0 –7,280 0 –7,280 

Transfers 1.1. – 31.12. 0 0 0 0 


Accumulated amortisation at 1.1. 0 7,280 0 7,280 

Accumulated amortisation 

on decreases and transfers 0 –7,280 0 –7,280 


Value adjustments 0 0 


Book value at 31.12. 0 0 0 0 

24



10 Intangible and Other long-term assets 

tangible assets Acquisition cost at 1.1. 9,698 10,896 8,662 8,804 

continued Increase 1.1. – 31.12. 129 59 10 55 

Decrease 1.1. – 31.12. 0 –1,257 0 –197 

Transfers 1.1. – 31.12. 250 0 0 0 




decreases and transfers 0 –739 0 –196 


Value adjustments 0 0 0 0 


Book value at 31.12. 6,003 6,137 5,635 6,095 

Advances paid on intangible 

assets 

Acquisition cost at 1.1. 1,443 199 1,422 178 

Increase 1.1. – 31.12. 1,263 1,930 901 2,456 

Decrease 1.1. – 31.12. 0 0 0 –549 

Transfers 1.1. – 31.12. –2,509 –686 –2,125 –663 

Book value at 31.12. 197 1,443 198 1,422 

Total intangible assets 10,646 12,011 9,830 11,167 

Group goodwill 

Acquisition cost at 1.1. 1,655 23,213 0 0 

Increase 1.1. – 31.12. 0 0 0 0 

Decrease 1.1. – 31.12. 0 –21,558 0 0 


Accumulated amortisation at 1.1. 1,655 21,034 


decreases and transfers 0 –21,558 0 0 

Amortisation for the year 0 2,179 0 0 

Accumulated amortisation at 31.12. 1,655 1,655 0 0 

Book value at 31.12. 0 0 

Tangible assets 

Land and water areas 


Increase 1.1. – 31.12. 0 0 0 0 

Decrease 1.1. – 31.12. 0 0 0 0 

Transfers 1.1. – 31.12. 0 0 0 0 


Book value at 31.12. 831 831 314 314 

25



10 Intangible and Buildings 

tangible assets Acquisition cost at 1.1. 5,654 5,654 5,654 5,654 

continued Increase 1.1. – 31.12. 0 0 0 0 

Decrease 1.1. – 31.12. 0 0 0 0 

Transfers 1.1. – 31.12. 0 0 0 0 


Accumulated depreciation at 1.1. 3,977 3,869 3,977 3,869 

Accumulated depreciation on 

decreases and transfers 0 0 0 0 

Depreciation for the year 106 108 106 108 



Book value at 31.12. 1,571 1,677 1,571 1,677 

Machinery and equipment 


Increase 1.1. – 31.12. 839 543 694 260 

Decrease 1.1. – 31.12. –377 –13,325 –64 –825 

Transfers 1.1. – 31.12. 2,408 5,461 2,360 1,752 




decreases and transfers –377 –7,221 –64 –820 

Depreciation for the year 3,058 3,616 2,735 2,479 



Book value at 31.12. 10,746 10,557 10,144 9,825 

Share of machinery and equipment 

of book value at 31.12. 1,544 1,402 1,544 1,402 

Other tangible assets 


Increase 1.1. – 31.12. 4 0 4 0 

Decrease 1.1. – 31.12. 0 –4 0 0 

Transfers 1.1. – 31.12. 0 0 0 0 


Accumulated depreciation at 1.1. 0 0 


decreases and transfers 0 0 0 0 

Depreciation for the year 0 0 0 0 


Accumulated depreciation at 31.12. 0 0 0 0 

Book value at 31.12. 34 30 34 30 

26



10 Intangible and Advances paid and construction 

tangible assets under progress 

continued Acquisition cost at 1.1. 1,533 2,531 1,533 0 

Increase 1.1. – 31.12. 874 4,503 872 3,316 

Decrease 1.1. – 31.12. 0 –40 0 –31 

Transfers 1.1. – 31.12. –2,362 –5,461 –2,360 –1,752 

Book value at 31.12. 45 1,533 45 1,533 

Total tangible assets 13,227 14,628 12,108 13,379 

11 Financial assets Holdings in Group companies 

Acquisition cost at 1.1. 5 5 12,441 12,441 

Increase 1.1. – 31.12. 0 0 0 0 

Decrease 1.1. – 31.12. –5 0 –8,425 0 

Transfers 1.1. – 31.12. 0 0 0 0 

Acquisition cost at 31.12. 0 5 4,016 12,441 

Book value at 31.12. 0 5 4,016 12,441 

Total holdings in Group companies 0 5 4,016 12,441 

Receivables from Group companies 

Amount at 1.1. 0 0 0 6,728 

Increase 1.1. – 31.12. 0 0 0 0 

Decrease 1.1. – 31.12. 0 0 0 –6,728 

Transfers 1.1. – 31.12. 0 0 0 0 

Holdings in associated companies 


Increase 1.1. – 31.12. 25 0 0 0 

Decrease 1.1. – 31.12. 0 –28 0 0 

Transfers 1.1. – 31.12. 0 0 0 0 


Accumulated value adjustments at 1.1. 0 0 0 0 

Accumulated value adjustments on 

depreciation and transfers 0 0 0 0 



Book value at 31.12. 1,425 1,400 202 202 

Total holdings in associated 

companies 1,425 1,400 202 202 

27



11 Financial assets Other shares and holdings 

continued Acquisition cost at 1.1. 1,101 1,102 927 927 

Increase 1.1. – 31.12. 0 0 0 0 

Decrease 1.1. – 31.12. 0 –1 0 0 

Transfers 1.1. – 31.12. 0 0 0 0 



Accumulated value adjustments on 

depreciation and transfers 0 0 0 0 



Value adjustments at 1.1. 0 0 0 0 

Increase 0 0 

Decrease 0 0 

Value adjustments at 31.12. 0 0 0 0 

Book value at 31.12. 1,101 1,101 927 927 

Total fi nancial assets 2,526 2,506 5,145 13,570 

28

12 Holdings in other companies 

Group companies Parent Company shares and interests 

Nominal Book 

Group value value 

Share- Voting Share- No. of EUR EUR 

Domicile holding % rights % holding % shares 1,000 1,000 

*Meira Nova Oy Helsinki 100 100 100 300 2,522 4,013 

Canelokiinteistöt Oy Helsinki 100 100 100 15 3 3 

Total 2,525 4,016 

Associated companies 

Finnfrost Oy Helsinki 50 50 50 3,000 505 168 

As Oy Korson Näätäkuja 2* Vantaa 24.8 24.8 24.8 24,859 33 34 

Luppola Oy * Helsinki 50.0 50.0 

Kiinteistö Oy Vierumäen 

Kiilukka* Heinolan mlk 25.0 25.0 

Total 538 202 

* not consolidated 

Finnfrost Oy consolidated using the equity method 

Other shares and interests of the Parent Company 

Nominal Book 

value value 

Share- No. of EUR EUR 

holding % shares 1,000 1,000 

Mildola Oy 5 60 101 855 

Suomen Palautuspakkaus Oy 12.5 150 25 25 

Transbox Oy 7.9 11 17 17 

As Oy Kuopion Miiluranta 19 19 

Other shares 11 11 

Total 927 

29



13 Stocks Goods 48,551 47,222 41,915 40,661 

Advances paid 379 236 312 236 

Total 48,930 47,458 42,227 40,897 

14 Long-term Other debtors 0 422 0 422 

debtors Accrued income and prepaid expenses 0 0 0 0 

Total long-term debtors 0 422 0 422 

15 Short-term Trade debtors 90,618 93,944 79,679 75,705 

debtors 

Amounts owed by Group companies 

Trade debtors 0 0 478 483 

Loan receivables 0 0 861 2 676 

Other debtors 0 0 1,500 19,600 

Accrued income and prepaid expenses 0 0 0 5 

Total 0 0 2,839 22,764 

Amounts owed by associated companies 

Trade debtors 2,070 2,150 1,867 2,123 

Total 2,070 2,150 1,867 2,123 

Loan receivables 29 10 18 0 

Other debtors 101 188 101 106 

Accrued income and prepaid expenses 2,948 6,953 2,853 6,344 

Total short-term debtors 95,766 103,245 87,357 107,042 

Specifi cation of accrued income 

and prepaid expenses 

Personnel costs 1,384 1,421 1,339 1,051 

Financial items 94 598 94 574 

Company tax compensation 378 3,254 379 3,084 

Other 1,092 1,680 1,041 1,640 

Total accrued income and 

prepaid expenses 2,948 6,953 2,853 6,349 

16 Investments Other shares and holdings 0 0 0 0 

Other investments in Group 

companies 0 0 0 0 

Other investments in others 108,952 95,810 108,952 75,210 

Total 108,952 95,810 108,952 75,210 

30

NOTES TO THE LIABILITIES IN THE BALANCE SHEETS 



17 Shareholders’ Share capital at 1.1. 13,455 13,455 13,455 13,455 

capital Share capital at 31.12. 13,455 13,455 13,455 13,455 

Contingency fund at 1.1. 0 1 0 0 

Decrease 1.1. – 31.12. 0 –1 

Contingency fund at 31.12. 0 0 0 0 

Retained earnings at 1.1. 48,213 30,596 39,994 20,373 

Translation difference 0 0 0 0 

Payment of dividend –7,000 –4,440 –7,000 –4,440 

Retained earnings at 31.12. 41,213 26,156 32,994 15,933 


Total shareholders’ capital 57,795 61,668 50,850 53,449 

Distributable funds at 31.12. 

Retained earnings 41,213 26,156 32,994 15,933 


– share of accumlated depreciation –6,648 –7,085 0 0 

allocated to shareholders’ capital 

Total 37,692 41,128 37,395 39,994 

18 Accumulated Depreciation difference 

appropriations Intangible rights 0 0 826 598 

Other capitalised long-term expenses 0 0 4,975 5,320 

Buildings and structures 0 0 368 387 

Machinery and equipment 0 0 3,163 3,572 

Other tangible assets 0 0 

Total 0 0 9,332 9,877 

19 Deferred tax From appropriations 2,716 2,894 2,706 2,864 

liability 

20 Provisions Excise tax provision 162 0 0 0 

21 Long-term Pension loans 2,447 3,894 2,447 3,894 

creditors 

Other long-term creditors 

Accruals and deferred income 25 25 25 25 

Total long-term creditors 2,472 3,919 2,472 3,919 

31



22 Short-term Pension loans 1,446 1,446 1,446 1,446 

creditors Trade creditors 153,300 144,201 141,492 133,238 

NOTES TO THE STAFF AND BOARD MEMBERS 

Amounts owed to Group companies 

Trade creditors 0 0 5 29 

Other short-term creditors 0 0 1,654 1,167 

Accruals and deferred income 0 0 58 45 

Total 0 0 1 717 1 241 

Amounts owed to associated companies 

Trade creditors 7,059 7,716 5,658 6,505 

Total 7,059 7,716 5,658 6,505 

Other short-term creditors 8,049 7,905 6,884 6,692 

Accruals and deferred income 49,507 51,686 48,216 50,660 

Total short-term creditors 219,361 212,954 205,413 199,782 

Specifi cation of accruals and 

deferred income 

Personnel costs 10,359 9,272 9,120 8,279 

Financial items 14 21 15 22 

Customer bonuses 36,674 33,070 36,731 33,114 

Other 2,485 9,347 2,433 9,315 

Total accruals and deferred income 49,532 51,710 48,299 50,730 

23a Personnel, Permanent 1,924 1,915 1,728 1,598 

average Temporary 318 301 287 271 

Total 2,242 2,216 2,015 1,869 

23bSalaries and Managing Director and his deputy 472 569 345 333 

wages Members and deputy members of the 36 36 36 36 

Board of Directors 

Pension liabilities of members of the Board of Directors and the Managing Director 

The following retirement ages have been agreed for the Group’s Managing Directors: 

58-60 years. 

32



SECURED ASSETS AND CONTINGENT LIABILITIES 

24 Contingent Pledges and contingent liabilities 

liabilities 

Loans secured by mortgages 

Pension loans 1,672 2,230 1,672 2,230 

Mortgages 4,457 4,457 4,037 4,037 

Total mortgages given as security 4,457 4,457 4,037 4,037 

Securities given on behalf 

of Group companies 

Guarantees 0 0 336 336 

Total 0 0 336 336 

Securities given on behalf 

of others’ liabilities 

Guarantees 8,639 11,591 8,639 11,591 

Total 8,639 11,591 8,639 11,591 

Other contingent liabilities 

Leasing liabilities 

– Leasing payments falling due 

next year 1,164 887 1,065 779 

– Leasing payments falling due 

after next year 2,464 2,133 2,360 2,027 

Total 3,628 3,020 3,425 2,806 

Rent liabilities 

– Exchange Hire rental agreements 1,025 1,189 1,025 1,189 

Agreement on redemption liability for a computer device 

(Siemens Oy/Meira Nova) 

Payments falling due next year 378 425 – 258 802 € 

Payments falling due after next year 227 909 – 500 € 

33

BOARD OF DIRECTORS’ PROPOSAL 

TO THE ANNUAL GENERAL MEETING 

As of 31 December 2003, the balance sheet showed that the Group’s distributable assets totalled 

EUR 37,691,573.58 and the parent company’s distributable assets EUR 37,395,167.95, of which the profi t for the 

fi nancial period came to EUR 4,401,586.43. The Board of Directors proposes to the Annual General Meeting that the 

profi t be posted to the company’s retained earnings and EUR 10,000,000 be distributed as dividends. 

We have examined the fi nancial statements, accounting 

records and administration of Inex Partners Oy for the 

period 1 January to 31 December 2003. The fi nancial 

statements drawn up by the Board of Directors and the 

Managing Director contain the report of the Board of Directors, 

and the income statements, balance sheets, and 

notes to the accounts for both the Group and the parent 

company. We offer our opinion on the fi nancial statements 

and the administration of the parent company on 

the basis of this audit. 

We have conducted our audit in accordance with the 

Finnish Generally Accepted Auditing Standards. These 

standards require that we examine the accounting 

record and principles adopted in preparing the accounts, 

as well as the contents and presentation of the fi nancial 

statements, to an extent suffi cient to obtaining reasonable 

assurance that the fi nancial statements are free of 

material misstatement or defi ciencies. The purpose of 

Helsinki, 25 February 2004 

Antti Remes (Chairman) Kalle Lähdesmäki (Vice Chairman) 

Juha Laisaari Arto Hiltunen 

Aarno Mäntynen Kari Neilimo 

Olli Suominen Antti Sippola 

Markku Uitto Håkan Smeds 

Martti Haaman 


AUDITORS’ REPORT 

To the Shareholders of Inex Partners Oy 

Helsinki, 9 March 2004 

34 

our audit of the company administration has been to ensure 

that the Board of Directors and Managing Director 

have complied with the rules of the Companies Act. 

In our opinion, the fi nancial statements have been prepared 

in accordance with the Accounting Act and other 

rules and regulations governing the preparation of fi nancial 

statements in Finland. The fi nancial statements give 

a true and fair view, as defi ned in the Accounting Act, of 

the Group’s and parent company’s operational results, as 

well as their fi nancial position. The fi nancial statements, 

including the consolidated fi nancial statement, may be 

approved, and the members of the parent company’s 

Board of Directors, the Managing Director, and the Deputy 

Managing Director discharged from liability for the 

period audited by us. The proposal by the Board of Directors 

on the distribution of profi ts is in compliance 

with the Companies Act. 

Mauri Palvi Tomi Englund 

Chartered Public Accountant Chartered Public Accountant

BOARD OF DIRECTORS OF INEX PARTNERS OY 

The members of the Board of Directors of Inex Partners Oy elected by the company’s Shareholder Meetings were: 

Managing Director Antti Remes (Chairman) 

Director of Field Operations Reijo Lähteenmäki (Vice Chairman until 1 August 2003) 

Director of Field Operations Kalle Lähdesmäki (Vice Chairman as of 1 August 2003) 

Managing Director Arto Hiltunen 

Managing Director Arto Ihto (until 15 April 2003) 

Vice President Juha Laisaari (as of 8 May 2003) 

Managing Director Aarno Mäntynen 

CEO Kari Neilimo (as of 12 February 2004) 

Director of Market Sales Antti Sippola 

Commercial Counsellor Håkan Smeds 

Managing Director Olli Suominen 

Executive Vice President Markku Uitto (as of 12 February 2004) 

Matti Juutilainen and Jouni Niiranen served as staff representatives on the Board of Directors as of 1 January 2003. 

Staff representatives are not regular members of the Board. 

The Managing Director of the company was Industrial Counsellor Martti Haaman. 

AUDITORS APPROVED 

BY THE ANNUAL GENERAL MEETING 

Inex Partners Oy’s auditors for 2003 were Tomi Englund, CPA, and Mauri Palvi, CPA. Their personal deputies were 

appointed by the audit companies, Ernst & Young Oy and KPMG Wideri Oy Ab, respectively. 

35

CONTACT 

INFORMATION 

Inex Group, Inex Partners Oy 

Tukholmankatu 2 

FIN 00250 HELSINKI 

Tel. +358 0204 41 11 

Fax +358 0204 41 3003 

Inex Partners Oy 

Business Operations 

Fleminginkatu 34 

FIN 00510 HELSINKI 

Tel. +358 0204 41 131 

Fax +358 0204 41 3403 

Meira Nova Oy 

Piispankyläntie 4 

FIN 01730 VANTAA 

Tel. +358 0204 41 151 

Fax +358 0204 41 3205 

Finnfrost Oy 

Jusslansuu 2 

FIN 04301 TUUSULA 

Tel. +358 9 8385 61 

Fax +358 9 8385 6220 

www.inex.fi

Inex Group, Inex Partners Oy 

Tukholmankatu 2, FIN 00250 HELSINKI 

tel. +358 0204 41 11, fax +358 02 04 41 3003 

www.inex.fi

ANNUAL REPORT 2003 INEX PARTNERS OY

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