|
|||
2008-04-24 08:00:57 CEST 2008-04-24 08:04:11 CEST REGULATED INFORMATION Tekla - Quarterly reportTekla Corporation's Interim Report January 1 - March 31, 2008: Tekla's first quarter as expectedTekla Corporation Stock Exchange Release 24.4.2008 at 9:00 a.m. Tekla Corporation's Interim Report January 1 - March 31, 2008: Tekla's first quarter as expected Net sales of Tekla Group for January-March 2008 totaled 14.86 (comparable net sales for the same period in 2007: 13.11) million euros. Growth in net sales was approximately 13%. The operating result was 3.93 (3.76) million euros, 26.5% (28.7%) of net sales. The Defence business, which was divested in April 2007, has been excluded from the 2007 figures, making them comparable. Ari Kohonen, President and CEO, comments on the first quarter of 2008: - Sales figures for the first quarter of the year were at least satisfactory. Operating result was slightly better than during the corresponding period the previous year. Despite the weakening of the US dollar, growth in net sales and profitability remained at a good level. - The results of our key business area, Building & Construction, were good. The geographical diversification of sales and expansion of the sales network seem to have been successful. Sales boomed in developing markets. Among these, India must be mentioned first and foremost; similarly, good results were achieved in the Middle East and the Far East. Sales increased in the United States as well. - There are signs of weakening trends in the construction industry in Western Europe and North America, although mainly in residential construction. Negative news from the financial sector also contributes to customers' cautiousness in making investment decisions. Tekla's market position remained strong. We consider our long-term outlook to be bright because Tekla has been expanding its product offering. In the future, the construction industry will be seeking ways of working that increase productivity. We believe this will add demand for Tekla's 3D products. - We proceeded according to plans in the Infra & Energy business area, experiencing stable development. The first quarter is typically slower than the other quarters, and sales mainly take place towards the end of the year. - The number of Tekla employees has increased by 22 during the first quarter. We have strengthened our product development team, and future increases will mainly be allocated to the personnel working in the sales and customer interface. The increase in the number of personnel corresponded to an annual increase of 50 employees. The Board is not changing its outlook for 2008. Growth in net sales is expected to be approximately 15% on the previous year and the operating result to exceed that of the previous year. Growth in the Building & Construction business area is expected to outpace Infra & Energy, while both business areas are expected to improve their results on the previous year. - - - Tekla will organize an information conference for analysts and media at Scandic Hotel Simonkenttä, Helsinki (Mansku cabinet) on April 24, 2008 1:00 p.m. - - - Tekla is an international software product company whose model-based software solutions make customers' core processes more effective in building and construction, energy distribution, infrastructure management and water supply. Tekla has customers in more than 80 countries. Tekla Group's net sales for 2007 were nearly 60 million euros and operating result approximately 20 million euros. International operations account for more than 80% of net sales. Tekla Group currently employs more than 400 people, of whom approximately 170 work outside Finland. Tekla was established in 1966, making it one of the oldest software companies in Finland. www.tekla.com TEKLA CORPORATION'S INTERIM REPORT JANUARY 1 - MARCH 31, 2008 The figures below are presented in a comparable manner. The Defence business, which was divested in April 2007, has been excluded from the 2007 figures, making them comparable. Defence's net sales for January-March 2007 were 0.49 million euros, operating result 0.02 million euros. Defence's figures are presented in more detail in the tables of this Interim Report. NET SALES AND PROFITABILITY * Net sales of Tekla Group for January-March 2008 were 14.86 million euros (13.11 million euros in January-March 2007) * Growth in net sales was 13.3%. * Operating result was 3.93 (3.76) million euros. * Operating profit percentage was 26.5 (28.7). * Earnings per share were 0.13 (0.13) euros. * Return on investment was 58.6 (73.1) percent. * Return on equity was 42.5 (54.2) percent. FINANCIAL POSITION * Cash flow from operating activities totaled 5.79 (8.50) million euros. * Liquid assets amounted to 35.60 (23.10) million euros on March 31, 2008 and 30.15 million euros on December 31, 2007. The dividend for 2007, 11.26 million euros, was paid out on April, 3 2008. * Equity ratio was 42.7 (46.5) percent. * Interest-bearing debts were 0.12 (0.37) million euros. OTHER KEY FIGURES * International operations accounted for 85% (83%) of net sales. * Personnel averaged 404 (373) for January-March. * At the end of March, the number of personnel including part-time staff was 422 (393). * Gross investments in property, plant and equipment were 0.27 (0.50) million euros. * Equity per share was 1.02 (0.83) euros. * On the last trading day of March, trading closed at 9.71 (8.80) euros. NET SALES BY BUSINESS AREA (PRIMARY SEGMENT) Q1/ Q1/ Change 1-12/ Million euros 2008 2007 2007 Building & Construction 12.19 10.62 1.57 45.48 Infra & Energy 2.67 2.49 0.18 12.76 Defence *) 0.00 0.49 -0.49 1.00 Others 0.00 0.00 0.00 0.01 Total 14.86 13.60 1.26 59.25 OPERATING RESULT BY BUSINESS AREA (PRIMARY SEGMENT) Q1/ Q1/ Change 1-12/ Million euros 2008 2007 2007 Building & Construction 4.10 3.85 0.25 15.96 Infra & Energy -0.05 -0.17 0.12 1.96 Defence *) 0.00 0.02 -0.02 2.78 Others -0.12 0.08 -0.20 -0.02 Total 3.93 3.78 0.15 20.68 *) The Defence business was divested in April 2007. A more detailed account of Defence's impact on the comparison figures for the review period can be found in the tables of this Interim Report. BUSINESS AREAS Building & Construction Tekla's Building & Construction business area (B&C) develops and markets the Tekla Structures software product for model-based design of steel and concrete structures as well as the management of fabrication and construction. The trends in the building industry have remained favorable in all key market areas, even though there are signs of weakening trends in the construction industry in Western Europe and North America, although mainly in residential construction. Negative news from the financial sector also contributes to customers' cautiousness in making investment decisions. Sales boomed in developing markets. Among these, India must be mentioned first and foremost; similarly, good results were achieved in the Middle East and the Far East. Sales increased in the United States as well. Demand for modeling systems continues to increase, and product modeling is strengthening its foothold in structural design and other stages of the building process. Tekla's market position as a supplier of 3D modeling software remained strong in all markets and the numbers of users were on the increase. It is very favorable for Tekla that the building industry's move from 2D ways of working to model-based 3D processes seems to be gaining momentum. In addition, Building Information Modeling (BIM) is gaining ground around the world. BIM means that the information of the product model is transferred and shared between the parties of the construction process. The net sales of B&C amounted to 12.19 (10.62) million euros for January-March 2008. Net sales increased by approximately 15% compared to the previous year. Its operating result was 4.10 (3.85) million euros. B&C's operating profit percentage for the reporting period was 33.6% (36.3%). Despite the weakening of the US dollar, growth in net sales and profitability remained at a good level. International operations accounted for 96% (95%) of B&C's net sales in January-March 2008. With regard to the key market areas, the highest proportional growth in Q1 net sales was seen in India, the Middle East and the Far East. Sales in Japan have developed particularly favorably. Tekla has prospered in several developing markets. Operations will be expanded further in these markets, such as Russia. By far the most of B&C's net sales were due to the product offering for structural steel engineering. Sales of B&C's other products also developed according to plans during the first quarter. The product development team has been strengthened, and future increases will mainly be allocated to the personnel working in the sales and customer interface. In March, Tekla announced closing a considerable license deal in India. Prothius Engineering Services, one of the world's largest engineering offices, acquired more than one hundred new Tekla Structures licenses. Tekla joined the Business Software Alliance in spring 2007. The BSA is a global association that aims to, e.g., reduce software piracy. First raids, in which several illegal Tekla Structures licenses were found, took place in the Philippines, Indonesia and China during the review period. Actions will be proceeded in co-operation with the BSA. B&C's product development focused on the upcoming main version of Tekla Structures, in which increasing openness has been a central target of development. Customers can customize the software themselves or with their own partners for their own use. Infra & Energy The Infra & Energy business area focuses on the development and sales of model-based software solutions that support customers' core processes. Its key customer industries (products in parentheses) are energy distribution (Tekla Xpower), infrastructure management (Tekla Xcity, Tekla Xstreet), as well as water and sewage (Tekla Xpipe). Structural changes in the energy industry and end users' increasing expectations of the reliability of energy distribution and customer service increase the need for developing and renewing network information systems. Tekla has a solid market position in the industry in the Nordic countries and the Baltic states. In Finland, increasing regional collaboration will increase the public sector's GIS development needs. Tekla's market position is strong in large and medium-sized Finnish municipalities. The net sales of I&E amounted to 2.67 (2.49) million euros for January-March 2008. Net sales increased by 7.2%. I&E's operating result was -0.05 (-0.17) million euros. International operations accounted for 33% (31%) of net sales. I&E's operating result percentage was -1.9% (-6.8%). I&E's operations proceeded according to plans during the review period. Sales of all products developed steadily. The first quarter is typically slower than the other quarters, and sales mainly take place towards the end of the year. The majority of net sales consists or additional and service sales to existing customers. New customers are expected from the company's strong markets in the Nordic Countries. Efforts for business growth are underway in Germany and in the new EU countries. The customer base in the infrastructure management sector is expected to broaden with the adoption of regional services in Finland. Product development focused on main versions to be completed in June in all products. Integration of operational support with automatic mater reading is being developed for the Tekla Xpower software. In addition, Tekla Xpower is being developed to support the modeling of gas networks more comprehensively. Productization of Tekla Xpipe for the Swedish market continued. E-service is the primary target of development in Tekla Xcity. In addition to this, street and park management applications are under development. PERSONNEL AND ORGANIZATION Personnel The Group personnel averaged 404 (373) for January-March 2008; on average 162 (132) worked outside Finland. In these figures, the number of part-time staff has been converted to correspond to full-time work contribution. At the beginning of the year, Tekla personnel totaled 400 (365) including part-time staff, and at the end of March 422 (393), of whom 166 (137) worked outside Finland. Product development was reorganized as of the beginning of 2008, and software product development was transferred to the corresponding business areas. This was made to ensure that product development will take place even closer to the customers. The Technology & Architecture unit is responsible for technology and architecture shared by all of the products. SHARE AND OWNERSHIP STRUCTURE Shares and Share Capital The total number of Tekla Corporation shares at the end of March 2008 was 22,586,200, of which the company owned 69,600. The total nominal value of those was 2,088 euros, representing 0.3% of the total share capital and the total number of votes. A total of 220,702.46 euros had been used for acquiring the company's own shares, and their market value was 675,816 euros on 31.03.2008. The nominal value of the share is 0.03 euros. At the end of the period, share capital stood at 677,586 euros. Share Price Trends and Trading The highest quotation of the share in January-March 2008 was 13.00 (9.20) euros, the lowest 9.30 (7.60) euros. The average quotation was 10.79 (8.43) euros. On the last trading day of March, trading closed at 9.71 (8.80) euros. A total of 3,033,293 (3,494,944) Tekla shares changed hands in January-March 2008 at OMX Nordic Exchange Helsinki, amounting to 13.4% (15.5%) of the entire share capital. Changes in ownership structure (flagging notifications) Threadneedle Asset Management Holdings Limited announced that their holdings in Tekla Corporation crossed above the 5% threshold on January 14, 2008. According to the notification, Threadneedle's holdings stood at 5.098%. ANNUAL GENERAL MEETING Tekla Corporation's Annual General Meeting on March 19, 2008 adopted the financial statements, consolidated income statement and balance sheet for 2007. The Annual General Meeting also discharged the CEO and the Board members from liability. The AGM accepted the Board's proposal whereby a dividend of 0.50 euros per share be distributed for 2007. The dividend payment date was April 3, 2008. Ari Kohonen, Olli-Pekka Laine (Vice Chair), Heikki Marttinen (Chair) and Erkki Pehu-Lehtonen were re-elected Board members until the conclusion of the Annual General Meeting in 2009. Reijo Sulonen was elected as a new Board member. Timo Keinänen was re-elected deputy member of the Board. Juha Kajanen is the Tekla personnel representative on the Board and Pirjo Lundén his personal deputy. PricewaterhouseCoopers were re-elected as auditors, with Markku Marjomaa, Authorized Public Accountant, as the auditor in charge. The AGM renewed the Board's authorizations regarding the increase of the company's share capital and acquiring or transferring the company's treasury shares. In addition, the AGM decided to make amendments to the Articles of Association due to the amended Finnish Companies Act, and other mainly technical changes in order to make the Articles of Association clearer and compliant with the terms and provisions of the current Companies Act. SHORT-TERM RISKS AND UNCERTAINTY FACTORS Possible risks and uncertainty factors associated with Tekla's business are mainly related to the market and competition situation and the general economic situation. Trends in the building industry may weaken, at least in certain markets, which might have a negative impact on the demand for Tekla products. In the software product business, it is possible to react swiftly to growing demand, and profits from additional sales are good. The majority of net sales comprises of sales of licenses entitling to use software products. Fluctuation in their demand can be rapid and significant. In the short term and in case of quick changes, it would be challenging to proportion fixed personnel expenses, which account for the majority of Tekla's costs. The sales of Tekla software are geographically distributed. Also individual customers do not account for a significant share of net sales, and therefore risks such as those described above are not significant. OUTLOOK FOR 2008 UNCHANGED The Board of Directors estimates that growth in net sales for 2008 will be approximately 15% on the previous year and that the operating profit will exceed that of the previous year. Growth in the Building& Construction business area is expected to outpace Infra & Energy, while both business areas are expected to improve their results on the previous year. NEXT FINANCIAL REPORT Tekla Corporation's Interim Report for January-June 2008 will be published on August 8, 2008. Espoo, April 23, 2008 TEKLA CORPORATION Board of Directors For additional information, please contact: Ari Kohonen, President and CEO, Tel. +358 30 661 1468, +358 50 641 24, ari.kohonen (at) tekla.com Timo Keinänen, CFO, Tel. +358 30 661 1773, +358 400 813 027, timo.keinanen (at) tekla.com Distribution: OMX Nordic Exchange Helsinki, main media CONSOLIDATED FINANCIAL STATEMENTS (unaudited) CONSOLIDATED INCOME STATEMENT Q1/ Q1/ 1-12/ Million euros 2008 2007 2007 Continuing businesses: Net sales 14.86 13.11 58.24 Other operating income 0.12 0.24 1.02 Change in inventories of finished goods and in work in progress 0.00 0.05 0.03 Raw materials and consumables used -0.61 -0.58 -2.04 Employee compensation and benefit expense -6.64 -6.10 -25.49 Depreciation -0.27 -0.30 -1.14 Other operating expenses -3.53 -2.66 -12.72 Operating result 3.93 3.76 17.90 % of net sales 26.45 28.68 30.73 Financial income 0.80 0.50 1.86 Financial expenses -0.74 -0.26 -1.33 Profit (loss) before taxes 3.99 4.00 18.43 % of net sales 26.85 30.51 31.64 Income taxes -1.10 -1.08 -4.92 Result for the period from continuing businesses 2.89 2.92 13.51 Discontinued operations: Result for the period from discontinued operations 0.00 0.01 2.06 Result for the period 2.89 2.93 15.57 Attributable to the equity holders of the Company Earnings per share for profit attributable to the equity holders of the Company: Earning per share (EUR) 0.13 0.13 0.69 Earnings are not diluted. Earnings per share from continuing businesses attributable to the equity holders of the Company: Earning per share (EUR) 0.13 0.13 0.60 Earnings are not diluted. Earnings per share from discontinued operations attributable to the equity holders of the Company: Earning per share (EUR) 0.00 0.00 0.09 Earnings are not diluted. CONDENSED BALANCE SHEET Million euros 3/2008 3/2007 12/2007 Assets Non-current assets Property, plant and equipment 1.77 1.64 1.79 Goodwill 0.10 0.10 0.10 Intangible assets 0.76 0.75 0.74 Other financial assets 0.30 0.30 0.30 Receivables 0.34 0.53 0.49 Deferred tax assets 0.14 0.24 0.11 Non-current assets, total 3.41 3.56 3.53 Current assets Inventories 0.07 0.08 0.07 Trade and other receivables 14.59 12.89 12.96 Other financial assets 26.18 14.08 25.22 Cash and cash equivalents 9.46 9.07 4.97 Current assets, total 50.30 36.12 43.22 Assets related to discontinued operations 0.25 0.76 0.25 Assets total 53.96 40.44 47.00 Equity and liabilities Equity Share capital 0.68 0.68 0.68 Share premium account 8.89 8.89 8.89 Other own capital 1.19 1.13 1.17 Retained earnings 12.11 7.89 20.71 Equity total 22.87 18.59 31.45 Non-current liabilities Deferred tax liabilities 0.10 0.13 Provisions 0.00 0.68 Interest-bearing liabilities 0.07 0.11 0.07 Non-current liabilities total 0.17 0.79 0.20 Current liabilities Trade and other payables 28.96 19.35 13.35 Tax liabilities 1.19 1.07 1.01 Current interest-bearing liabilities 0.05 0.27 0.27 Current liabilities total 30.20 20.69 14.63 Liabilities total 30.37 21.48 14.83 Liabilities related to discontinued operations 0.72 0.37 0.72 Equity and liabilities total 53.96 40.44 47.00 CALCULATION OF RECONCILIATION OF EQUITY Equity attributable to the holders of the Company Share Share Fair Acc. Ret. Cap. prem. Res. value Transl. earn. acct. fund res. diff. Total Equity January 1, 2007 0.68 8.89 1.33 0.10 -0.21 13.93 24.72 Transl. differences -0.05 0.04 -0.01 Changes in available-for-sale investments -0.04 -0.04 Items recognized directly in equity 0.00 0.00 0.00 -0.04 -0.05 0.04 -0.05 Net profit for the period 2.93 2.93 Total income and expenses recognized in the period 0.00 0.00 0.00 -0.04 -0.05 2.97 2.88 Payment of dividend -9.01 -9.01 Equity March 31, 2007 0.68 8.89 1.33 0.06 -0.26 7.89 18.59 Equity attributable to the holders of the Company Share Share Fair Acc. Ret. Cap. prem. Res. value transl. earn. acct. fund res. diff. Total Equity January 1, 2008 0.68 8.89 1.33 0.30 -0.46 20.71 31.45 Transl. differences 0.14 -0.23 -0.09 Changes in available-for-sale investments -0.12 -0.12 Items recognized directly in equity 0.00 0.00 0.00 -0.12 0.14 -0.23 -0.21 Net profit for the period 2.89 2.89 Total income and expenses recognized in the period 0.00 0.00 0.00 -0.12 0.14 2.66 2.68 Payment of dividend -11.26 -11.26 Equity March 31, 2008 0.68 8.89 1.33 0.18 -0.32 12.11 22.87 CONDENSED CASH FLOW STATEMENT Q1/ Q1/ 1-12/ Million euros 2008 2007 2007 Cash flows from operating activities: Continuing businesses 5.79 8.35 12.31 Discontinued operations 0.00 0.15 1.24 Net cash flows from operating Activities 5.79 8.50 13.55 Cash flows from investing activities: Investments -0.27 -0.50 -1.66 Sale of intangible assets and property, plant and equipment 0.01 0.00 0.25 Cash flow from sale of discontinued operations 0.00 2.35 Purchases of available-for- sale financial assets -18.65 -15.35 -55.16 Proceeds from sale of available-for-sale financial assets 14.11 17.74 50.11 Interests received from available-for-sale financial assets 0.26 0.22 0.65 Net cash used in/from investing activities -4.54 2.11 -3.46 Cash flows from financing activities: Payment of dividend 0.00 -9.01 -9.01 Repayments of long-term debt -0.22 -0.31 -0.39 Payments of finance lease liabilities 0.00 0.00 -0.04 Net cash used in financing activities -0.22 -9.32 -9.44 Net decrease/increase in cash and cash equivalents 1.03 1.29 0.65 Cash and cash equivalents at beginning of the period 8.43 7.78 7.78 Cash and cash equivalents at end of the period 9.46 9.07 8.43 The cash and cash equivalents in the cash flow statement include: Cash and cash equivalents 9.46 9.07 4.97 Available-for-sale financial assets, cash equivalents 0.00 0.00 3.46 NOTES TO THE INTERIM REPORT The notes are presented in millions of euros, unless otherwise stated. This interim report has been prepared in accordance with the IAS 34 (Interim Financial Reporting) standard. The same accounting and valuation policies and methods of computation have been followed in the interim financial reports as in the annual financial statements for 2007. The amendments and interpretations to published standards as well as new standards, effective January 1, 2008,are presented in detail in the financial statements for 2007. The adopted standards have not had a significant effect on the result or the data presented in the interim report. The figures presented in the Interim Report are unaudited. Use of estimates When preparing the financial statements, the Group's management is required to make estimates and assumptions influencing the content of the Interim Report, and it must exercise its judgment regarding the application of accounting policies. Although these estimates are based on the management's best knowledge, actual results may ultimately differ from the estimates used in the interim report. Tax losses carried forward are recognized as deferred recognized as deferred tax assets only to the extent that it is probable that future taxable profits will be available against which unused tax losses can be utilized. Actual results could differ from those estimates. Segment information Net sales by business area (primary segment) Q1/ Q1/ 1-12/ Million euros 2008 2007 2007 Building & Construction 12.19 10.62 45.48 Infra & Energy 2.67 2.49 12.76 Defence *) 0.00 0.49 1.00 Others 0.00 0.00 0.01 Total 14.86 13.60 59.25 Operating result by business area (primary segment) Q1/ Q1/ 1-12/ Million euros 2008 2007 2007 Building & Construction 4.10 3.85 15.96 Infra & Energy -0.05 -0.17 1.96 Defence *) 0.00 0.02 2.78 Others -0.12 0.08 -0.02 Total 3.93 3.78 20.68 *) Defence has been processed as discontinued business for the comparison period. Financial indicators 3/2008 3/2007 12/2007 Earnings per share (EPS), EUR 0.13 0.13 0.69 Earnings per share (EPS) from continuing businesses, EUR 0.13 0.13 0.60 Earning per share (EPS) from discontinued operations, EUR 0.00 0.00 0.09 Equity/share, EUR 1.02 0.83 1.40 Interest-bearing liabilities 0.12 0.37 0.34 Equity ratio, % 42.7 46.5 67.5 Net gearing, % -155.1 -122.2 -94.8 Return on investment, % 58.6 73.1 74.5 Return on equity, % 42.5 54.2 55.4 Number of shares at end of period 22,516,600 22,516,600 22,516,600 Number of shares, on average 22,516,600 22,516,600 22,516,600 Gross investments, MEUR 0.27 0.50 1.66 % of net sales 1.82 3.81 2.80 Personnel, on average 404 373 374 Discontinued operations Defence business Tekla's Defence business was transferred to Patria on May 1, 2007. The calculations below show the effect of the business sale on the result and the cash flow during the reporting period. Result for the Defence business Q1/ Q1/ 1-12/ 2008 2007 2007 Net sales 0.49 1.00 Expenses -0.47 -0.81 Profit (loss) before income taxes 0.00 0.02 0.19 Taxes -0.01 -0.05 Profit (loss) after taxes 0.00 0.01 0.14 Sales profit from the Defence business sale 2.59 Taxes -0.67 Sales profit after taxes 0.00 0.00 1.92 Profit/loss for the period from discontinued operations 0.00 0.01 2.06 Cash flow statement, Defence Cash flows from operating activities 0.15 1.24 Cash flow from investing activities 2.35 Total cash flow 0.00 0.15 3.59 The effect of the sale of the Defence business on the financial position of the Group Assets 0.25 0.76 0.25 Liabilities 0.72 0.37 0.72 Consolidated income statement by quarter Q1/ Q4/ Q3/ Q2/ Q1/ Million euros 2008 2007 2007 2007 2007 Continuing businesses: Net sales 14.86 16.44 14.78 13.92 13.11 Other operating income 0.12 0.39 0.17 0.22 0.24 Change in inventories of finished goods and in work in progress 0.00 -0.05 -0.02 0.05 0.05 Raw materials and consumables used -0.61 -0.67 -0.28 -0.52 -0.58 Employee compensation and benefit expense -6.64 -6.90 -5.72 -6.77 -6.10 Depreciation -0.27 -0.28 -0.28 -0.28 -0.30 Other operating expenses -3.53 -3.94 -2.83 -3.29 -2.66 Operating result 3.93 4.99 5.82 3.33 3.76 % of net sales 26.45 30.35 39.38 23.92 28.68 Financial income 0.80 0.47 0.62 0.27 0.50 Financial expenses -0.74 -0.42 -0.41 -0.24 -0.26 Profit (loss) before taxes 3.99 5.04 6.03 3.36 4.00 % of net sales 26.85 30.66 40.80 24.14 30.51 Income taxes -1.10 -1.24 -1.57 -1.03 -1.08 Result for the period from continuing businesses 2.89 3.80 4.46 2.33 2.92 Discontinued operations: Result for the period from discontinued operations 0.00 0.19 0.00 1.86 0.01 Result for the period 2.89 3.99 4.46 4.19 2.93 Income taxes Q1-Q3/ Q1-Q3/ 1-12/ 2008 2007 2007 Taxes for the financial period and prior periods -1.15 -0.96 -4.54 Deferred taxes 0.05 -0.12 -0.38 Total -1.10 -1.08 -4.92 Estimated effective tax rate for the financial year has been applied to the result of the reporting period. Property, plant and equipment 3/2008 3/2007 12/2007 Cost at the beginning of 7.20 6.82 6.67 the period Translation differences -0.04 -0.03 -0.09 Additions 0.17 0.14 1.16 Disposals -0.03 -0.01 -0.54 Cost at the end of the period 7.30 6.92 7.20 Accumulated depreciation at the beginning of the period 5.41 5.08 4.93 Translation differences -0.04 -0.01 -0.05 Accumulated depreciation on disposals -0.03 -0.01 -0.31 Depreciation for the 0.19 0.22 0.84 financial period Accumulated depreciation at the end of the period 5.53 5.28 5.41 Net book amount at the end of the period 1.77 1.64 1.79 The investments consisted of normal acquisitions of hardware, software and equipment. Provisions The Group's provisions, loss-making contracts and provisions for pension obligations have been eliminated on December 31, 2007. Collaterals, contingent liabilities and other commitments 3/2008 3/2007 12/2007 Collaterals for own commitments Business mortgages (as collateral for bank guarantee limit) 0.50 0.50 0.50 Pledged funds 0.05 0.07 0.07 Other contingent liabilities Guarantees 0.00 0.06 Leasing and rental agreement commitments Premises 4.35 3.09 4.75 Others 0.79 0.78 0.81 Total 5.14 3.87 5.56 Derivative contracts Currency forward contracts: Fair value 0.23 0.08 0.31 Nominal value of underlying instruments 2.79 5.70 3.63 The Group makes derivative contracts to hedge against the exchange rate risks of prospective sales agreements. Forward contracts and currency options are stated at fair value, and related foreign exchange gains and losses are recognized in the income statement. The derivative contracts hedge sales in US dollars. Related party transactions 3/2008 3/2007 12/2007 Gerako Oy Purchases of services 0.06 0.01 0.06 Reimbursed expenses 0.00 0.00 0.01 Management remuneration Salaries and post-employment benefits 0.67 0.57 1.33 Management herein refers to members of the Tekla Management Team. |
|||
|