2011-05-09 07:40:00 CEST
2011-05-09 07:40:48 CEST
REGULATED INFORMATION
Tekla - Interim report (Q1 and Q3)
Tekla Corporation's Interim Report January 1 - March 31, 2011: Good first quarter - full-year outlook increased
Tekla Corporation Interim report May
9, 2011 at 8:40 a.m.
Tekla Corporation's Interim Report January 1 - March 31, 2011: Good first
quarter - full-year outlook increased
Net sales of Tekla Group for January-March 2011 totaled 15.79 (12.84) million
euros, increasing by 23.0%. The operating result was 3.00 (1.48) million euros,
19.0% (11.5%) of net sales. Earnings per share were 0.09 (0.07) euros.
Ari Kohonen, President and CEO, comments on the reporting period:
- Both net sales and operating result developed favorably during the first
quarter. The full-year outlook is positive, and we expect the favorable
development to continue. Our market position has strengthened, for example, due
to the expanded product offering.
- Net sales of the Building & Construction business area increased by 30.7%
compared to the same quarter the previous year. The operating result was also
considerably higher than the previous year, and profitability was at a good
level. License sales increased by more than 40%. Large customers that have
recovered the fastest from the recession have begun to obtain new licenses in
addition to existing ones. We launched Tekla BIMsight to promote information
modeling in the construction industry in mid-February.
- In terms of the market areas, the growth in license sales was good in Western
Europe, India and South America. Sales in the Middle East fell short of the
corresponding quarter the previous year, but we expect positive full-year
development in there as well. Signs of recovery were seen in U.S. sales.
- Infra & Energy's first quarter was as expected. It is typical of this business
area that net sales and result are accumulated more towards the end of the year.
- The number of personnel did not change during the first quarter. However, the
personnel trend is a rising one.
The Board of Directors is increasing its full-year net sales and result outlook.
Net sales are estimated to increase by at least 15%, with the operating result
exceeding 20% of net sales.
- - -
Tekla will organize an information meeting for analysts and media at WTC
Helsinki (address Aleksanterinkatu 17, meeting room 2) on May 9, 2011 starting
at 12.30 p.m.
The event will take place in English. You can listen to the meeting live at
http://www.goodmood.fi/tekla/index.php?videoId=30846441. The recording of the
meeting will be available on Tekla's web site at www.tekla.com > Investors later
on.
NB! The previously announced conference call in English at 3:30 will be hereby
canceled.
- - -
Tekla Corporation
Tekla Corporation drives the evolution of digital information models with its
software, providing a growing competitive advantage to customers in the
construction, infrastructure and energy industries. Tekla's net sales for 2010
were nearly 58 million euros and operating result nearly 10 million euros.
International operations accounted for approximately 80% of net sales. Tekla has
customers in almost 100 countries, offices in 15 countries and a worldwide
partner network. Tekla Group currently employs approximately 500 persons, of
whom about 200 work outside of the headquarters in Finland. Tekla was
established in 1966, and is one of the longest-operating Finnish software
companies. www.tekla.com
- - -
NET SALES AND PROFITABILITY
* Net sales of Tekla Group for January-March 2011 were 15.79 million euros
(12.84 million euros in January-March 2010).
* Net sales increased by 23.0%.
* Operating result was 3.00 (1.48) million euros.
* Operating result percentage was 19.0 (11.5).
* Earnings per share were 0.09 (0.07) euros.
* Return on investment was 31.0 (25.1) percent.
* Return on equity was 24.4 (19.6) percent.
FINANCIAL POSITION
* Cash flow from operating activities totaled 10.04 (8.85) million euros.
* Liquid assets amounted to 38.49 (35.26) million euros on March 31. The assets
have been invested in money market instruments with very low risk.
* Equity ratio was 59.7 (58.8) percent.
* Interest-bearing debts were 0.11 (0.13) million euros.
* Changes in exchange rates had no effect on net sales or operating result.
OTHER KEY FIGURES
* International operations accounted for 80.7% (78.4%) of net sales.
* Personnel averaged 478 (451) for January-March.
* At the end of March, the number of personnel including part-time staff was
490 (454).
* At year's end, the number of personnel including part-time staff was 490
(466).
* Gross investments were 1.14 (0.29) million euros. R&D expenses accounted for
0.39 million euros of the investments. There were no corresponding
capitalizations in the corresponding quarter of 2010.
* Equity per share was 1.61 (1.40) euros.
* On the last trading day of March, trading closed at 10.50 (7.73) euros.
BUSINESS AREAS
NET SALES
Million euros Q1/2011 Q1/2010 Change Q1-4/2010
-----------------------------------------------------------
Building & Construction 12.31 9.42 2.89 43.08
Infra & Energy 3.49 3.43 0.06 14.81
Net sales between segments -0.01 -0.01 0.00 -0.06
-----------------------------------------------------------
Total 15.79 12.84 2.95 57.83
OPERATING RESULT
Million euros Q1/2011 Q1/2010 Change Q1-4/2010
--------------------------------------------------------
Building & Construction 2.98 1.14 1.84 8.23
Infra & Energy 0.02 0.34 -0.32 1.92
Others 0.00 0.00 0.00 -0.09
--------------------------------------------------------
Total 3.00 1.48 1.52 10.06
Building & Construction
Tekla's Building & Construction business area (B&C) develops and markets the
Tekla Structures software product. Designed for Building Information Modeling
(BIM), Tekla Structures is a 3D tool that offers open integration with other
programs and models imported from them, supporting all the phases of the
construction process. The software is a comprehensive solution for structural
engineering, design and production of steel structures and precast units,
reinforced concrete detailing as well as site and construction management.
Tekla's position as a supplier of 3D modeling software is strong and the number
of users is increasing further. Customers in the building industry are seeking
tools like Tekla's products that make their operations more efficient.
Information modeling is gaining a stronger foothold in structural design and
other stages of the building process. The benefits of information modeling are
seen more clearly in site management in particular.
Tekla launched the free Tekla BIMsight application in February 2011 in order to
promote BIM-based cooperation and project management in the construction
industry. With the new application, the different parties involved in the
project can easily combine their models created using different software and
understand each other's designs. The application can be used for checking for
clashes in the structures, commenting on the models and marking the required
changes in them. The entire project can be reviewed with the help of a single
illustrative 3D combination model. User feedback has been positive. In the first
phase, the application was released in English only.
In our license-based sales, demand can fluctuate quite strongly, which is
reflected in the solid growth in license sales during the review period. The
full-year outlook is also positive, and we expect the favorable development to
continue. Our market position has strengthened, for example, due to the expanded
product offering.
The net sales of B&C amounted to 12.31 (9.42) million euros for January-March
2011. The growth in net sales was 30.7% compared to the corresponding period the
previous year. B&C's operating result was 2.98 (1.14) million euros and
operating result percentage was 24.2% (12.1%). International operations
accounted for 94% (95%) of B&C's net sales in January-March 2011. The growth in
license sales was more than 40%, and growth in maintenance sales exceeded 10%.
Large customers that have recovered the fastest from the recession have begun to
obtain new licenses in addition to existing ones.
In terms of the market areas, the growth with regard to license sales was good
in Western Europe, India and South America. Sales in the Middle East fell short
of the previous year, but we expect positive full-year development in there as
well. Signs of recovery were seen in U.S. sales. Of the other traditional large
markets, development was also favorable in France, Germany, and Finland. Brazil
can be mentioned as a newer market where the development was particularly
favorable.
It is very favorable for Tekla that the building industry's move to information-
model-based 3D processes from traditional 2D ways of working continues. Because
of this, the business area's long-term outlook continues to be promising.
Building Information Modeling (BIM) is globally consolidating its position in
the building industry. BIM means that the information of the product model is
transferred and shared between the parties of the construction process. This
expands the cooperation between the parties of the construction process. In
order to facilitate cooperation, the interoperability of software is increased
further and data exchange between software systems is improved, so that
customers are able to choose the product that is suited the best for a specific
task.
Measures against software piracy continued both by own efforts and in
cooperation with other parties, such as BSA. The efforts are increasingly
bearing fruit.
Tekla Structure 17, the main version launched in February, features improved
clash checking, organizing, viewing, snapping, commenting and project managing
functions.
Infra & Energy
The Infra & Energy business area develops and markets Tekla Solutions to
customers in the infrastructure and energy industries. The software solutions
contain high-end process support tools for customers' core processes, from
planning to construction, operation and maintenance and for customer service
needs. I&E's customers operate in energy distribution, public administration,
and civil engineering. The renewed Tekla Solutions offering promotes Tekla's
aim to sell its software to new customers and new types of customer segments in
Finland and abroad.
In the energy industry, information system acquisitions are strategic
investments for the companies. Climate change and the endeavor towards
sustainable development set new requirements for the industry, e.g., with new
energy production methods becoming more common and partial decentralization of
production. New technologies, smart grids and software solutions hold a key role
in achieving these objectives. Tekla's market position as a supplier of energy
distribution information systems is strong in the Nordic and Baltic countries.
Improved and more extensive utilization of information technology is seen to be
a key solution for achieving efficiency, self-services and thereby cost-savings.
Citizens' services are being extensively migrated into the Web, and the
accessibility of the services can also be improved this way. Tekla's sales and
market position remained strong in Finland.
I&E's net sales amounted to 3.49 (3.43) million euros for January-March 2011.
Net sales increased slightly. I&E's operating result was 0.02 (0.34) million
euros, remaining soft mainly due to increasing the resources. It is also typical
of this business area that net sales and result are accumulated more towards the
end of the year. I&E's operating result percentage was 0.6% (9.9%).
International operations accounted for 35% (34%) of net sales.
Expansion and further development of the software solution for the energy
industry was agreed upon with Vattenfall. The measures include support for
network documentation and planning process for the German market, and automated
electricity supply restoration related to distribution management, among others.
Integration of network calculations in Tekla Solution for water utilities was
agreed upon with several of the largest Finnish water utilities.
With regard to product development, the focus was on the expansion of
distribution management system functionalities to support large-scale outage
situations. An Oracle Spatial expansion was implemented to support the
utilization and distribution of geographical information.
PERSONNEL
Tekla Group personnel averaged 478 (451) in January-March 2011; on average 187
(187) 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 490 (466) including part-time
staff, of whom 188 (192) worked outside Finland, and at the end of March 490
(454), of whom 191 (186) worked outside Finland. The number of personnel is
expected to increase during 2011.
SHARE AND OWNERSHIP STRUCTURE
Shares and share capital
The total number of Tekla Corporation shares at the end of March 2011 was
22,586,200, of which the company owned 96,600. The total book counter value of
those was 2,898 euros, representing 0.43% of the company's shares. A total of
652,479.02 euros had been used for acquiring the company's own shares, and their
market value was 1,014,300 euros on March 31, 2011. The book counter 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 2011 was 10.50 (7.87) euros,
the lowest 9.00 (6.30) euros. The average quotation was 9.91 (6.79) euros. On
the last trading day of March, trading closed at 10.50 (7.73) euros.
A total of 1,405,716 (1,712,990) Tekla shares changed hands in January-March
2011 at NASDAQ OMX Helsinki Ltd, amounting to 6.2% (7.6%) of the entire share
capital.
Nominee registered and foreign owners held 16.5% (19.6%) of all shares at the
end of March 2011.
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 vary in different market areas.
A majority of Tekla's 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 with rapidly fluctuating demand, it is challenging to
proportion fixed personnel expenses, which account for the majority of Tekla's
costs. Tekla is, however, able to react swiftly to growing demand, and profits
from additional sales are good.
The sales of Tekla software are geographically distributed. In addition,
individual customers do not account for a significant share of net sales, and
therefore such risks are not essential.
EVENTS AFTER THE REPORTING PERIOD
ANNUAL GENERAL MEETING
Tekla Corporation's Annual General Meeting was held on April 6, 2011. The AGM
adopted Tekla Corporation's financial statements and consolidated financial
statements for 2010. It also discharged the CEO and the Board members from
liability. The AGM approved the Board's proposal to distribute a dividend of
0.25 euros and a repayment of equity of 0.35 euros per share for the financial
period 2010 (for a total payment of 0.60 euros per share, totaling 13,493,760
euros). The dividend and repayment of equity payment date was April 19, 2011.
Ari Kohonen, Olli-Pekka Laine, Erkki Pehu-Lehtonen and Reijo Sulonen were re-
elected Board members and Saku Sipola was elected as a new Board member until
the conclusion of the Annual General Meeting in 2012. Timo Keinänen was re-
elected as deputy member. Juha Kajanen is the Tekla personnel representative on
the Board and Kirsi Hakkila is his personal deputy.
The AGM decided to keep the compensation to the Board the same as in 2010. In
addition, the members' travel expenses will be reimbursed. The members of the
Board employed by Tekla Group will not be paid any meeting fees for their board
work.
Ernst & Young Oy, Authorized Public Accountants, was elected as company auditor,
with Erkka Talvinko, Authorized Public Accountant, as the auditor in charge.
The AGM decided on amending Article 7 of the Articles of Association with regard
to invitations to a general meeting of shareholders.
The AGM authorized the Board to decide on the repurchase and transfer of company
shares and share issue. The authorizations will remain valid until the following
Annual General Meeting, however not longer than until April 30, 2012.
Furthermore, the Annual General Meeting authorized the Board to decide on the
distribution of additional dividend and/or distribution of the non-restricted
equity fund for a total of up to 18,000,000 euros. The authorization will remain
valid until the following Annual General Meeting.
The Board of Directors' proposals reviewed by the AGM have been published in the
notice to the Annual General Meeting on March 15, 2011, and the resolutions of
the AGM were published in a stock exchange release on April 6, 2011.
OUTLOOK FOR 2011
The Board of Directors is increasing its full-year net sales and result outlook.
Net sales are estimated to increase by at least 15%, with the operating result
exceeding 20% of net sales. The estimates are based on organic growth in net
sales and the expected continuation of the favorable trend in construction
activity in Tekla's central market areas.
According to the previous outlook published in February, net sales were
estimated to increase by 10% to 15% in 2011. The operating result was estimated
to be better than the previous year, 15% to 20% of net sales.
NEXT FINANCIAL REPORT
Tekla's interim report for January-June 2011 will be published on Friday, August
5, 2011.
Espoo, May 8, 2011
TEKLA CORPORATION
Board of Directors
For additional information, please contact:
Ari Kohonen, CEO, Tel. +358 50 641 24,
Timo Keinänen, CFO, Tel. +358 400 813 027
firstname.lastname@tekla.com
Distribution: NASDAQ OMX Helsinki Ltd, main media
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
CONSOLIDATED INCOME STATEMENT
Q1/ Q1/ Q1-Q4/
Million euros 2011 2010 2010
Net sales 15.79 12.84 57.83
Other operating income 0.11 0.13 0.58
Change in inventories of finished goods
and in work in progress -0.02 0.03 -0.05
Raw materials and consumables used -0.49 -0.44 -2.08
Employee compensation and benefit
expense -8.48 -7.52 -32.06
Depreciation -0.43 -0.42 -1.71
Other operating expenses -3.50 -3.14 -12.54
Share of results in associated
companies 0.02 0.00 0.09
Operating result 3.00 1.48 10.06
% of net sales 19.00 11.53 17.40
Financial income 0.25 0.79 1.81
Financial expenses -0.61 -0.38 -1.11
Profit (loss) before taxes 2.64 1.89 10.76
% of net sales 16.72 14.72 18.61
Income taxes -0.51 -0.39 -2.58
Result for the period 2.13 1.50 8.18
Attributable to:
Owners of the parent 2.13 1.50 8.18
Earnings per share for profit attributable
to the owners of the parent (EUR) 0.09 0.07 0.36
Earnings are not diluted.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Q1/ Q1/ Q1-Q4/
Million euros 2011 2010 2010
Result for the period 2.13 1.50 8.18
Other comprehensive income for the
period, net of tax:
Transl. differences 0.11 -0.06 -0.18
Changes in available-for-sale
investments 0.02 0.01 -0.06
Total 0.13 -0.05 -0.24
Total comprehensive income for the
period 2.26 1.45 7.94
Attributable to:
Owners of the parent 2.26 1.45 7.94
CONDENSED BALANCE SHEET
Million euros 3/2011 3/2010 12/2010
Assets
Non-current assets
Property, plant and equipment 1.76 1.40 1.34
Goodwill 0.14 0.19 0.14
Intangible assets 2.97 1.97 2.69
Investments in associated companies 1.36 1.36
Other financial assets 0.12 1.13 0.12
Receivables 0.33 0.54 0.36
Deferred tax assets 0.80 0.62 0.64
Non-current assets, total 7.48 5.85 6.65
Current assets
Inventories 0.03 0.13 0.06
Trade and other current receivables 15.01 13.35 11.23
Tax receivables 0.05 0.13 0.05
Other financial assets 28.73 26.95 21.34
Cash and cash equivalents 9.79 7.34 8.18
Current assets, total 53.61 47.90 40.86
Assets total 61.09 53.75 47.51
Equity and liabilities
Equity
Share capital 0.68 0.68 0.68
Share premium account 8.89
Invested non-restricted equity fund 9.16 9.16
Other own capital 1.69 1.75 1.56
Retained earnings 24.60 20.03 22.47
Equity total 36.13 31.35 33.87
Non-current liabilities
Deferred tax liabilities 0.07 0.11 0.07
Interest-bearing liabilities 0.04 0.07 0.04
Non-current liabilities total 0.11 0.18 0.11
Current liabilities
Trade and other payables 24.28 22.15 13.04
Tax liabilities 0.50 0.01 0.41
Current interest-bearing liabilities 0.07 0.06 0.08
Current liabilities total 24.85 22.22 13.53
Liabilities total 24.96 22.40 13.64
Equity and liabilities total 61.09 53.75 47.51
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the owners of the parent
Inv.
non-
Share Fair Acc. restr.
Share prem. Other value transl. equity Ret.
capital acct funds res. diff. fund earn. Total
Equity
Jan 1, 2010 0.68 8.89 1.33 0.09 0.38 18.53 29.90
Total
comprehens.
income for
the period 0.01 -0.06 1.50 1.45
Equity March
31, 2010 0.68 8.89 1.33 0.10 0.32 0.00 20.03 31.35
Attributable to the owners of the parent
Inv.
non-
Share Fair Acc. restr.
Share prem. Other value transl. equity Ret.
capital acct funds res. diff. fund earn. Total
Equity
January
1, 2011 0.68 0.00 1.33 0.03 0.20 9.16 22.47 33.87
Total
comprehens.
income for
the period 0.02 0.11 2.13 2.26
Equity March
31, 2011 0.68 0.00 1.33 0.05 0.31 9.16 24.60 36.13
CONDENSED CASH FLOW STATEMENT Q1/ Q1/ Q1-Q4/
Million euros 2011 2010 2010
Net cash flows from operating activities 10.04 8.85 9.74
Cash flows from investing activities:
Investments -1.14 -0.33 -2.33
Sale of intangible assets and property,
plant and equipment 0.02 0.06
Acquisition of associated companies -0.40
Investments in available-for-sale financial
assets -4.13 -8.05 -1.55
Interests received from available-for-sale
financial assets 0.07 0.07 0.38
Net cash used in/from investing activities -5.18 -8.31 -3.84
Cash flows from financing activities:
Payment of dividend -4.48
Payments of finance lease liabilities -0.01 -0.05
Net cash used in financing activities -0.01 0.00 -4.53
Net decrease/increase in cash and cash
equivalents 4.85 0.54 1.37
Cash and cash equivalents at beginning
of the period 8.49 7.12 7.12
Cash and cash equivalents at end of the
period 13.34 7.66 8.49
The cash and cash equivalents in the
cash flow statement include:
Cash and cash equivalents 9.79 7.34 8.18
Available-for-sale financial assets, cash
equivalents 3.55 0.32 0.31
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 report as in the annual
financial statements for 2010. The amendments and interpretations to published
standards as well as new standards, effective January 1, 2011, are presented in
detail in the financial statement for 2010.
The figures presented in the interim report are unaudited.
Use of estimates
When preparing the interim report, 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 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
Q1/ Q1/ Q1-Q4/
Million euros 2011 2010 2010
Building & Construction 12.31 9.42 43.08
Infra & Energy 3.49 3.43 14.81
Net sales between segments -0.01 -0.01 -0.06
Total 15.79 12.84 57.83
Operating result by business area
Q1/ Q1/ Q1-Q4/
Million euros 2011 2010 2010
Building & Construction 2.98 1.14 8.23
Infra & Energy 0.02 0.34 1.92
Others -0.09
Total 3.00 1.48 10.06
Financial indicators
Q1/ Q1/ Q1-Q4/
2011 2010 2010
Earnings per share (EPS),
EUR 0.09 0.07 0.36
Equity/share, EUR 1.61 1.40 1.51
Interest-bearing liabilities 0.11 0.13 0.12
Equity ratio, % 59.7 58.8 72.1
Net gearing, % -106.2 -108.8 -86.7
Return on investment, % 31.0 25.1 34.1
Return on equity, % 24.4 19.6 25.7
Number of shares, at end of 22,489,600 22,416,600 22,489,600
the period
Number of shares, on 22,489,600 22,416,600 22,464,400
average
Gross investments, MEUR 1.14 0.29 3.60
% of net sales 7.22 2.26 6.23
Personnel, on average 478 451 461
Consolidated income statement by quarter
Q1/ Q4/ Q3/ Q2/ Q1/
Million euros 2011 2010 2010 2010 2010
Net sales 15.79 16.89 13.62 14.48 12.84
Other operating income 0.11 0.18 0.15 0.12 0.13
Change in inventories of
finished goods and in work in
progress -0.02 -0.02 -0.01 -0.05 0.03
Raw materials and
consumables used -0.49 -0.76 -0.32 -0.56 -0.44
Employee compensation and
benefit expense -8.48 -9.05 -7.14 -8.35 -7.52
Depreciation -0.43 -0.40 -0.45 -0.44 -0.42
Other operating expenses -3.50 -3.69 -2.58 -3.13 -3.14
Share of results in associated
companies 0.02 0.02 0.04 0.03
Operating result 3.00 3.17 3.31 2.10 1.48
% of net sales 19.00 18.77 24.30 14.50 11.53
Financial income 0.25 0.30 0.04 0.68 0.79
Financial expenses -0.61 0.06 -0.42 -0.37 -0.38
Profit (loss) before taxes 2.64 3.53 2.93 2.41 1.89
% of net sales 16.72 20.90 21.51 16.64 14.72
Income taxes -0.51 -0.83 -0.84 -0.52 -0.39
Result for the period 2.13 2.70 2.09 1.89 1.50
Income taxes
Q1/ Q1/ Q1-Q4/
2011 2010 2010
Taxes for the financial period and prior
periods -0.68 -0.57 -2.79
Deferred taxes 0.17 0.18 0.21
Total -0.51 -0.39 -2.58
Property, plant and equipment
3/2011 3/2010 12/2010
Cost at the beginning of the period 8.57 8.30 8.30
Translation differences -0.06 0.11 0.23
Additions 0.65 0.17 0.86
Disposals -0.02 -0.45 -0.82
Cost at the end of the period 9.14 8.13 8.57
Accumulated depreciation at the
beginning of the period 7.23 6.88 6.88
Translation differences -0.05 0.08 0.17
Accumulated depreciation on disposals -0.02 -0.45 -0.70
Depreciation for the financial period 0.23 0.22 0.88
Accumulated depreciation at the end
of the period 7.39 6.73 7.23
Net book amount at the end of the
period 1.75 1.40 1.34
The investments consisted of normal acquisitions of hardware, software, and
equipment.
In accordance with accounting regulations, 0.39 million euros of R&D expenses
have been capitalized
during the reporting period in connection with longer-term development of new
technology and clearly
novel customer offering.
Provisions
The Group had no provisions in the reporting or comparison period.
Collaterals, contingent liabilities and other commitments
3/2011 3/2010 12/2010
Collaterals for own commitments
Business mortgages (as collateral for
bank guarantee limit) 0.50 0.50 0.50
Pledged funds 0.23 0.08 0.27
Leasing and rental agreement
commitments
Premises 6.64 4.45 6.97
Others 0.36 0.53 0.37
Total 7.00 4.98 7.34
Derivative contracts
Currency forward contracts:
Fair value 0.08 -0.07 0.05
Nominal value of underlying instruments 1.57 1.78 2.38
The Group makes derivative contracts to hedge against the exchange rate risks of
prospective sales agreements. Derivative contracts 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 in accordance with
the Group policy.
Related party transactions
3/2011 3/2010 12/2010
Gerako Oy
Purchases 0.07 0.08 0.27
Construsoft Groep BV
Sales 0.87 3.84
Purchases 0.00 0.15
Receivables 0.46 0.07
Liabilities 1.21 0.12
Management remuneration
Salaries and post-employment benefits 0.42 0.32 1.15
Management herein refers to members of the Tekla Management Team.
[HUG#1513523]
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