2010-07-21 07:00:00 CEST
2010-07-21 07:01:07 CEST
REGULATED INFORMATION
Tieto Oyj - Interim report (Q1 and Q3)
TIETO's interim report 2/2010 (January-June): Sales still slightly down - strong order intake in the second quarter
Tieto Corporation INTERIM REPORT 21 July 2010, 8.00 am EET 1 (27)
To download the PDF file, please use this link:
http://hugin.info/3114/R/1432917/378902.pdf
Highlights: April-June
* Net sales totalled EUR 431.5 (444.8) million, down 3%.
* Order intake was EUR 590 (483) million.
* Operating profit (EBIT) amounted to EUR 19.5 (10.4) million,
representing an operating margin of 4.5% (2.3).
* Operating profit excluding one-off items was EUR 21.3 (24.6) million,
representing an operating margin of 4.9% (5.6).
* Lower net sales coupled with additional spending of EUR 7 million for
development programmes impacted profitability.
* Profit after taxes was EUR 11.7 (10.0) million.
* Net cash flow from operations amounted to EUR 27.5 (-12.1) million.
* The company's outlook remains unchanged.
January-June highlights
* Net sales totalled EUR 854.4 (882.8) million, down 3%.
* Order intake was EUR 962 (881) million.
* Operating profit (EBIT) amounted to EUR 38.3 (15.3) million,
representing an operating margin of 4.5% (1.7).
* Operating profit, excluding one-off items, amounted to EUR 47.9 (39.4)
million, 5.6% (4.5) of net sales.
* Profit after taxes was EUR 23.7 (11.0) million.
* Net cash flow from operations amounted to EUR 55.4 (29.9) million.
+----------------------------------------------+-------+-------+-------+-------+
| |Q2/2010|Q2/2009|H1/2010|H1/2009|
+----------------------------------------------+-------+-------+-------+-------+
|Net sales, EUR million | 431.5| 444.8| 854.4| 882.8|
+----------------------------------------------+-------+-------+-------+-------+
|Change in net sales, % | -3| -7| -3| -7|
+----------------------------------------------+-------+-------+-------+-------+
|Operating profit (EBIT), EUR million | 19.5| 10.4| 38.3| 15.3|
+----------------------------------------------+-------+-------+-------+-------+
|Operating margin, % | 4.5| 2.3| 4.5| 1.7|
+----------------------------------------------+-------+-------+-------+-------+
|Operating profit excl. one-off items, EUR | 21.3| 24.6| 47.9| 39.4|
|million | | | | |
+----------------------------------------------+-------+-------+-------+-------+
|Operating margin excl. one-off items, % | 4.9| 5.6| 5.6| 4.5|
+----------------------------------------------+-------+-------+-------+-------+
|Profit after taxes, EUR million | 11.7| 10.0| 23.7| 11.0|
+----------------------------------------------+-------+-------+-------+-------+
|Net cash flow from operations, EUR million | 27.5| -12.1| 55.4| 29.9|
+----------------------------------------------+-------+-------+-------+-------+
|EPS, EUR | 0.17| 0.14| 0.33| 0.15|
+----------------------------------------------+-------+-------+-------+-------+
Hannu Syrjälä, President and CEO:"The Nordic IT services market has stabilized and started to recover. During the
second quarter, we signed many significant longer term contracts such as the
ones with the City of Stockholm, Skåne Regional Council and If P&C Insurance.
We have continued to invest in our global delivery model with excellent results
- today 34% of our people are working in offshore countries, an increase of more
than 1 300 employees from the second quarter of 2009. Lower sales together with
spending for development programmes and growth strained our profitability in the
second quarter.
Cloud services are expected to stand for a significant part of new growth in IT
spending in the coming years. We continue to invest in this area to become one
of the leading cloud integrators by 2013 in our main markets. Our new
energy-efficient data centres in Finland, Sweden and Russia provide an excellent
platform for secure, full-scale production of environmentally friendly IT
services.
The pick-up of demand in the IT market and our strengthened sales activities are
expected to benefit our topline in the coming quarters. The demand for IT
outsourcing continues on a good level especially in Sweden and Finland. Our
operations outside Finland and Sweden have also improved, but slower than
planned. We have strengthened the management and re-focused investments in order
to accelerate performance improvement. Profitable growth is on top of our agenda
for the rest of the year for the whole company."
MARKET DEVELOPMENT
The IT services market in the Nordic countries has stabilized during the first
half of 2010. Activity in the market has picked up, and companies' efforts to
achieve cost savings and improve productivity continue to be the key drivers for
investments. In 2010, IT spending in Europe is driven by replacement investments
in hardware and purchases of new software licenses as well as growing spending
on cloud services, such as Software as a Service. Transition from traditional IT
services to cloud services is accelerating.
The Nordic IT services market is expected to start growing in the second half of
2010. Growth estimates for the full year provided by market analysts vary from
0% to 2%. The market development in the telecom sector is twofold; volumes are
going up but at the same time, offshoring continues to lower market prices. The
outsourcing market and the demand for new service models are expected to remain
robust, whereas the project services market has shown little signs of recovery.
Some price pressure still persists in the market. The changing delivery mix -
which makes greater use of offshore resources - is leading to lower average unit
prices.
In the telecom sector, the transformation towards offshore-based operations has
accelerated. It is expected that transfers will curb market growth in euros,
although volumes in terms of manhours are on the rise. The network equipment
manufacturers segment has continued to be challenging. Both the operator segment
and the mobile device manufacturers segment have picked up, boosted by new
technologies.
In the finance sector, the market has stabilized, but competition is fierce.
Outsourcing is the main source of growth, especially in Sweden. In the Finnish
finance sector, the pension insurance segment has slowed down after a long
investment cycle, whereas larger banks are expected to start investing in new
applications and are seeking to transfer more services to the internet. In the
UK, the finance sector has remained challenging.
Market development by country
In Finland, the outsourcing market continues to grow, but project business is
expected to remain at a modest level. Demand for IT services is expected to
continue at a good level in the energy, healthcare and welfare sectors. In the
public sector, IT budgets have been cut and the plan is to re-allocate parts of
the budget from ministries to centralized IT procurement units in 2010. This
affected the IT market already in the second quarter.
In Sweden, the IT market has picked up. New outsourcing-related opportunities
have opened up with a focus on achieving operational efficiency, especially in
the finance and public sectors. In the manufacturing industry, there are no
signs of recovery yet. Price competition remains hard in agreement renewals.
Outside Finland and Sweden, the development of the IT markets varies country by
country.
In Germany, it is expected that market recovery will be delayed until 2011. The
markets for local automotive and telecom R&D have remained weak, but demand in
the healthcare sector has remained brisk. In 2010, outsourcing remains the
growth area, as the economic situation is forcing companies to improve the
efficiency of their operations.
In Norway, demand is gradually picking up. Interest in restarting IT projects
has increased in the oil & gas segment. The utilities segment is stable,
automatic meter reading being one of the future drivers. The finance market in
Norway follows the common industry trends, capital market solutions being the
strongest area.
BUSINESS TRANSACTIONS AND MAJOR AGREEMENTS IN JANUARY-JUNE
In January, the Legal, Financial and Administrative Services Agency in Sweden,
Kammarkollegiet, chose Tieto as one of its ten IT-suppliers. The framework
agreements with the chosen suppliers cover IT management services in the public
sector and will affect all government agencies, 232 municipalities as well as
19 county councils and regions.
In March, Tieto acquired T&T Telecom, an IT and consultancy company specializing
in services for telecom operators. The company employs approximately 70 people
and has offices in St. Petersburg and Moscow.
In March, Tieto divested the shares of TietoEnator Majiq, previously responsible
for the company's pulp and paper operations in North America. The company
employed close to 60 people. In the forest sector, Tieto now focuses on Europe
and the growth markets in China and Russia.
In March, Tieto and Yleisradio (YLE) agreed that Tieto will acquire 20% of Tieto
Broadcasting IT Oy's share capital. Tieto Broadcasting IT was previously owned
by Tieto (80%) and YLE (20%). In 2009, Tieto Broadcasting IT's net sales
amounted to EUR 22.7 million. The transaction was completed at the beginning of
June.
In April, Tieto agreed to sell its French subsidiary to the French IT company
Devoteam. In 2009, net sales from the sold entity were EUR 28.5 million.
Altogether Tieto has booked EUR 7.3 million in impairment losses and EUR 0.4
million in restructuring costs related to the divestment.
In June, Tieto and the City of Stockholm decided to continue cooperation in IT
and telephony services and concluded an agreement that runs from August 2012
until July 2014. The order value during the extension period is more than SEK
600 million (approximately EUR 60 million), of which Tieto's proportion is about
SEK 300 million (approximately EUR 30 million). The delivery will be made in
cooperation with SiriusIT, Aditro, Agresso and TeliaSonera.
In June, Skåne Regional Council chose Tieto as its outsourcing partner. The deal
is valued at SEK 516 million (approximately EUR 50 million) during five years.
In June, Tieto and the Finnish State Treasury concluded an agreement on
operating services. Tieto delivers IT operating services to the Finnish State
Treasury and the related Government IT Shared Service Centre until 2016. The
delivery also includes an extensive operating service development plan for the
whole contract period. The value of the contract is approximately EUR 20
million.
In June, If P&C Insurance concluded a new five-year IT services agreement with
Tieto as a one-stop supplier. The contract includes operations management
services for If's IT systems in the Nordic countries. The total value of the
contract is approximately EUR 160 million.
In June, Tieto acquired the business of the Finnish healthcare IT solutions
provider Intensium Oy to strengthen its position in the healthcare market. The
business was transferred to Tieto on 1 July 2010. Intensium's 17 employees
joined Tieto under their existing terms of employment on the same day.
ORDER BACKLOG
The order backlog, which only comprises services ordered with binding contracts,
amounted to EUR 1 366 (1 122) million at the end of the period. In total, 43%
(49) of the backlog is expected to be invoiced during the current year. Order
intake in the second quarter saw the strongest growth in Sweden and in Financial
Services.
FINANCIAL PERFORMANCE IN APRIL-JUNE
Second-quarter net sales declined by 3% and amounted to EUR 431.5 (444.8)
million. In most industries, outsourcing of IT operations was brisk. However,
the highly competitive operating environment as well as business transfers to
offshore countries strained net sales. In the telecom sector, when eliminating
the impact of the divestment of the French subsidiary and currency effects,
Tieto saw modest growth.
The decline in net sales was reinforced by divestments and the one-off income of
EUR 5.5 million included in the second-quarter net sales in 2009. The
divestments of the pulp and paper operations in North America and Tieto's French
subsidiary in 2010 and TietoSaab Systems in 2009 had a negative EUR 11.2 million
impact on net sales in the second quarter. On the other hand, the stronger
currencies, especially the Swedish krona, had a positive EUR 16 million impact
on net sales. Changes in currencies and the impacts of divestments and one-off
items offset each other, resulting in a decline of 3% in the net sales of the
underlying business.
Second-quarter operating profit (EBIT) amounted to EUR 19.5 (10.4) million,
representing a margin of 4.5% (2.3). Operating profit includes an additional
impairment loss of EUR 1.0 million (net) related to the divestments of Tieto's
French and US subsidiaries and a net amount of EUR 0.8 million (negative) in
other one-off items. Operating profit excluding one-off items amounted to EUR
21.3 (24.6) million, or 4.9% (5.6) of net sales.
Both the decline in net sales and ongoing spending for development programmes
explain the weakening profitability. The company continued to invest in global
delivery capacity, growth initiatives in Russia and offerings, such as cloud
services. The costs derived from the development programmes related to global
delivery model and offerings increased by around EUR 4 million compared to the
second quarter of 2009 and were booked as Group costs. Additionally, Tieto
booked development costs of around to EUR 3 million related to building of the
Russian operations.
The company continues to drive its structural improvements and transfer of
operations to offshore countries. In 2010, these actions are expected to result
in one-off costs amounting to EUR 10-15 million. In the second quarter, Tieto
booked EUR 0.8 million in restructuring costs and in January-June EUR 2.5
million.
Net financial expenses stood at EUR 1.1 (1.6) million in the second quarter. Net
interest expenses were EUR 1.1 (1.7) million and net gains from foreign exchange
transactions EUR 0.3 (0.8) million. Other financial income and expenses amounted
to EUR 0.3 (0.7) million.
Second-quarter earnings per share (EPS) totalled EUR 0.17 (0.14).
The 12-month rolling return on capital employed (ROCE) was 21.1% and the return
on shareholders' equity (ROE) 13.8%.
Financial performance by country
+-----------------+------------+-----------+---------+------------+------------+
| | | | | Operating| Operating|
| |Net sales in| Net sales| | margin| margin|
| | Q2/2010,|in Q2/2009,| | in Q2/2010,| in Q2/2009,|
| | EUR million|EUR million|Change, %| %| %|
+-----------------+------------+-----------+---------+------------+------------+
|Finland | 228| 230| -1| 11.4| 11.1|
+-----------------+------------+-----------+---------+------------+------------+
|Sweden | 126| 116| 9| 6.1| -5.3|
+-----------------+------------+-----------+---------+------------+------------+
|International | 136| 143| -5| 0.2| -4.3|
+-----------------+------------+-----------+---------+------------+------------+
|Group elimination| -58| -45| | | |
+-----------------+------------+-----------+---------+------------+------------+
|Total | 431| 445| -3| 4.5| 2.3|
+-----------------+------------+-----------+---------+------------+------------+
In Finland, net sales were down by 1%, or flat when eliminating the negative
impact of the divestment of TietoSaab Systems. Net sales in the telecom sector
were flat, while in the forest and manufacturing sectors, net sales turned to
growth. Customers in the public sector have scaled back their purchases,
resulting in lower second-quarter net sales in this sector. In the Finnish
finance sector, net sales continued to slide. Second-quarter operating profit
amounted to EUR 25.9 (25.6) million, or EUR 26.8 (28.0) million excluding
one-off items. Operating margin was 11.4% (11.1), or 11.8% (12.2) excluding
one-off items. Profitability of the underlying business was somewhat weaker
partly due to lower prices. Additionally, salary increases are diluting the
benefits derived from personnel reductions executed in 2009.
In Sweden, net sales grew by 9%, with the finance sector being the strongest
performer. In local currency, net sales declined by 2%. The decline was mainly
attributable to the weak IT market in the manufacturing sector and a slight
decline in the telecom sector. The Swedish market has clearly picked up but at
the same time, price levels are down. Thanks to tight cost control, operating
profit improved to EUR 7.7 (-6.2) million, or EUR 7.3 (1.3) million excluding
one-off items. Operating margin was 6.1% (-5.3), or 5.8% (1.1) excluding one-off
items.
In International, net sales declined by 5%. The decline was reinforced by
divestments and one-off income of EUR 5.5 million in the second quarter of
2009. The divestments of operations in North America and France had a negative
EUR 10.2 million impact on net sales. On the other hand, the stronger currencies
had a positive impact. When eliminating divestments, one-off items and changes
in currencies, net sales grew by 4%. Growth is mainly attributable to growing
offshore operations.
Second-quarter operating profit of Tieto International amounted to EUR 0.3
(-6.2) million and included EUR 1.0 million in impairment losses and a net
amount of EUR 0.1 million (negative) in other one-off items. Operating profit
excluding one-off items rose to EUR 1.4 (-1.9) million. Operating margin was
0.2% (-4.3), or 1.0% (-1.4) excluding one-off items. Despite cost savings and
good performance in delivery countries, operating profit was unsatisfactory
partly due to high business development costs in Russia.
Net sales by customer sector
+----------------+---------------------+---------------------+---------+
| |Net sales in Q2/2010,|Net sales in Q2/2009,| |
| | EUR million| EUR million|Change, %|
+----------------+---------------------+---------------------+---------+
|Telecom | 146| 149| -2|
+----------------+---------------------+---------------------+---------+
|Finance | 90| 94| -4|
+----------------+---------------------+---------------------+---------+
|Industry sectors| 194| 201| -3|
+----------------+---------------------+---------------------+---------+
|Total | 431| 445| -3|
+----------------+---------------------+---------------------+---------+
In the telecom sector, Tieto's net sales fell by 2%. Excluding the positive
currency effect and the divestment of the French subsidiary, Telecom saw modest
growth in the second quarter. Profitability improved due to lower costs and
improved efficiency.
In the finance sector, net sales fell by 4%. Excluding the positive currency
effect, net sales declined by around 8% mainly due to the drop in Finland. In
Finland, net sales in the pension insurance segment shrunk after a relatively
long and strong investment cycle. Despite weakened sales in Finland,
profitability improved somewhat due to cost savings and the downsizing of
underperforming businesses.
In the industry sectors, net sales declined by 3%. Excluding currency effects,
the divestments of the pulp and paper operations in North America in 2010 and
TietoSaab Systems in 2009 and the one-off income recognized in 2009, net sales
declined by around 2%. Profitability remained at a healthy level. In Tieto's
reporting, the industry sectors cover customers in healthcare and welfare,
forest, energy, manufacturing, automotive, public, retail and logistics.
FINANCIAL PERFORMANCE IN JANUARY-JUNE
Net sales declined by 3% and amounted to EUR 854.4 (882.8) million. In local
currencies, net sales declined by 7%.
Six-month operating profit (EBIT) amounted to EUR 38.3 (15.3) million,
representing a margin of 4.5% (1.7). Operating profit includes a net amount of
EUR 2.5 million (negative) in one-off costs related to the streamlining actions,
impairment losses of EUR 7.6 million related to the divestments, and a capital
gain of EUR 0.5 million. Operating profit excluding one-off items amounted to
EUR 47.9 (39.4) million, or 5.6% (4.5) of net sales.
Financial performance by country
+-----------------+------------+-----------+---------+------------+------------+
| | | | | Operating| Operating|
| |Net sales in| Net sales| | margin| margin|
| | H1/2010,|in H1/2009,| | in H1/2010,| in H1/2009,|
| | EUR million|EUR million|Change, %| %| %|
+-----------------+------------+-----------+---------+------------+------------+
|Finland | 449| 457| -2| 10.8| 10.6|
+-----------------+------------+-----------+---------+------------+------------+
|Sweden | 245| 235| 4| 5.5| -6.4|
+-----------------+------------+-----------+---------+------------+------------+
|International | 271| 284| -5| -0.4| -3.5|
+-----------------+------------+-----------+---------+------------+------------+
|Group elimination| -111| -93| | | |
+-----------------+------------+-----------+---------+------------+------------+
|Total | 854| 883| -3| 4.5| 1.7|
+-----------------+------------+-----------+---------+------------+------------+
Net sales by customer sector
+----------------+---------------------+---------------------+---------+
| |Net sales in H1/2010,|Net sales in H1/2009,| |
| | EUR million| EUR million|Change, %|
+----------------+---------------------+---------------------+---------+
|Telecom | 289| 302| -4|
+----------------+---------------------+---------------------+---------+
|Finance | 178| 183| -2|
+----------------+---------------------+---------------------+---------+
|Industry sectors| 387| 398| -3|
+----------------+---------------------+---------------------+---------+
|Total | 854| 883| -3|
+----------------+---------------------+---------------------+---------+
Net financial expenses stood at EUR 2.2 (4.4) million in the first half. Net
interest expenses were EUR 2.8 (3.5) million and net gains from foreign exchange
transactions EUR 1.0 (negative 0.5) million. Other financial income and expenses
amounted to EUR 0.4 (0.4) million.
Six-month earnings per share (EPS) totalled EUR 0.33 (0.15).
CASH FLOW AND FINANCING
Second-quarter net cash flow from operations, including the increase of EUR 9.2
(25.8) million in net working capital, amounted to EUR 27.5 million (negative
12.1).
Six-month net cash flow from operations increased to EUR 55.4 (29.9) million.
Net cash flow from operations includes the increase of EUR 19.1 (decrease 2.3)
million in net working capital.
Tax payments amounted to EUR 7.6 (16.6) million in the six-month period.
Payments for acquisitions totalled EUR 1.6 (2.3) million in the first half.
Divestments amounted to EUR 2.9 (5.7) million.
The equity ratio was 48.0% (40.7). Gearing decreased to 17.1% (30.1). Net debt
totalled EUR 89.6 (139.2) million, including EUR 150.6 million in
interest-bearing debt, EUR 6.8 million in finance lease liabilities, EUR 8.9
million in finance lease receivables and EUR 58.9 million in cash and cash
equivalents.
The interest-bearing long-term debt consists of EUR 150 million in bonds, of
which EUR 100 million will mature in December 2013 and EUR 50 million (private
placement) in July 2012. The EUR 250 million syndicated revolving credit
facility maturing in November 2011 was not in use and there were no commercial
papers issued under the EUR 250 million Commercial Paper Programme at the end of
June. Other short-term credit lines were utilized for EUR 0.6 million.
INVESTMENTS
Investments totalled EUR 48.5 (30.5) million for the six-month period. This
comprises EUR 46.6 (29.3) million in capital expenditure including financial
leasing, and EUR 1.9 (1.2) million in investments in shares. Capital expenditure
in Sweden rose by EUR 8 million and in International by EUR 4 million. The
increase is attributable to the construction of the data centres in Sweden and
Russia.
PERSONNEL
The number of full-time employees rose to 16 885 (16 195) at the end of June.
The rise has resulted from twofold development. To boost its offshore ratio,
Tieto has actively been ramping up its capacity in global delivery centres. At
the end of June, the number of full-time employees in the global delivery
centres totalled 5 745 (4 389), or 34% (27) of personnel. In onshore locations,
the number of personnel has decreased by around 800 employees.
During the first half, Tieto accelerated competence transformation with a view
to better meeting needs in growing specialist areas. The company has also
invested in building more effective tools for project staffing.
Based on the national salary raises agreed in collective labour agreements in
Finland and Sweden, wages will increase by around 2% in 2010.
The 12-month rolling employee turnover stood at 7.7% at the end of June. The
average number of full-time employees was 16 817 (16 650) in the six-month
period.
MANAGEMENT
In June, Tieto appointed Willem Hendrickx as Executive Vice President, Telecom &
Media and member of Tieto's Leadership Team as of 9 August 2010. Hendrickx will
also be responsible for country operations in Italy, Spain, the Netherlands and
the UK.
SHARES AND SHARE-BASED INCENTIVES
At the end of June, the total number of shares amounted to 72 023 173 and the
share capital to EUR 75 841 523.
On 30 June 2010, a total of 3 000 Tieto shares were returned free of
consideration to the company as the terms regarding the service conditions of
the holders were not fully met. The transaction was related to the company's
Share Ownership Plan 2006−2008.
At the end of the quarter, the number of shares in the company's possession
totalled 548 900, representing 0.8% of the total number of shares and voting
rights. The number of shares, excluding the shares in the company's possession,
was 71 474 273.
A total of 84 700 Tieto 2006 B Stock Options were cancelled in June. After the
cancellation, the remaining 515 300 stock options 2006 B entitle the holder to
subscribe for 515 300 Tieto shares.
FLAGGING ANNOUNCEMENTS
On 8 April, Goldman Sachs announced that it no longer has a notifiable interest
in Tieto shares. Solidium reported on 8 April that its holding had increased to
5.02%. On 28 May, Solidium announced that its ownership was 10.0%.
NEAR-TERM RISKS AND UNCERTAINTIES
In some specialist areas, the first signs of a lack of resources and rising
attrition can be seen. Therefore, the rise in personnel expenses might be higher
than agreed in the collective labour agreements. In Asia, salaries are on the
rise, in some areas even at a double-digit rate.
Weak demand for IT services might lead to lower utilization of resources and
hence lower profitability if the company is not able to adjust its cost base
fast enough to new negative changes in the market.
The ongoing transformation of the IT sector towards offshore production might
create uncertainty among the company's personnel and poses risks related to the
company's market position, prices and quality of deliveries. On the other hand,
Tieto has steadily increased its offshore resources during the past several
years, and is currently the leading European based company providing substantial
offshore capabilities. The company expects the growing offshore operations to
lead to lower average costs as well, offsetting negative price effects. Special
attention has been placed on ensuring the quality of deliveries.
A comprehensive description of the major long-term risks is available on the
company's website.
OUTLOOK FOR 2010
Tieto anticipates that the IT markets have bottomed out. In 2010, the company
expects its net sales to develop in line with the IT services market relevant to
Tieto and its operating profit to be higher than in 2009.
Financial calendar
Third-quarter interim report on 27 October 2010
Fourth-quarter interim report and financial statements bulletin for 2010 on 10
February 2011
Accounting policies in 2010
The interim report has been prepared in accordance with International Accounting
Standard (IAS) 34, Interim Financial Reporting, as adopted by the EU.
Tieto has started to apply hedge accounting for selected hedging transactions,
such as foreign exchange hedging transactions between EUR and CZK after 1 March
2010. Excluding this change, the accounting policies adopted are consistent with
those used in the annual financial statements for the year ended on 31 December
2009. The accounting policies as well as the effect of changes required by the
adoption of standards, interpretations and amendments taken into use in 2010 are
described in the annual financial statements.
The figures in this report are unaudited.
+----------------------------------------------+----+-----+----+----+-----+----+
|Key figures |2010| 2009|2010|2010| 2009|2009|
+----------------------------------------------+----+-----+----+----+-----+----+
| | 4-6| 4-6| 1-3| 1-6| 1-6|1-12|
+----------------------------------------------+----+-----+----+----+-----+----+
|Earnings per share, EUR | | | | | | |
+----------------------------------------------+----+-----+----+----+-----+----+
|- basic |0.17| 0.14|0.17|0.33| 0.15|0.77|
+----------------------------------------------+----+-----+----+----+-----+----+
|- diluted |0.17| 0.14|0.17|0.33| 0.15|0.77|
+----------------------------------------------+----+-----+----+----+-----+----+
|Equity per share, EUR |7.33| 6.46|7.10|7.33| 6.46|7.25|
+----------------------------------------------+----+-----+----+----+-----+----+
+----------------------------------------------+----+-----+----+----+-----+----+
|Return on equity rolling 12 month, % |13.8| 7.8|13.6|13.8| 7.8|11.0|
+----------------------------------------------+----+-----+----+----+-----+----+
|Return on capital employed rolling 12 month, %|21.1| 18.5|19.6|21.1| 18.5|16.8|
+----------------------------------------------+----+-----+----+----+-----+----+
|Equity ratio % |48.0| 40.7|45.8|48.0| 40.7|46.0|
+----------------------------------------------+----+-----+----+----+-----+----+
|Net interest-bearing liabilities, EUR million |89.6|139.2|51.9|89.6|139.2|66.0|
+----------------------------------------------+----+-----+----+----+-----+----+
|Gearing, % |17.1| 30.1|10.2|17.1| 30.1|12.7|
+----------------------------------------------+----+-----+----+----+-----+----+
|Investments, EUR million |25.2| 14.4|23.3|48.5| 30.5|58.9|
+----------------------------------------------+----+-----+----+----+-----+----+
Number of shares
+-----------------------+----------+----------+----------+----------+----------+
| | 2010| 2010| 2010| 2009| 2009|
+-----------------------+----------+----------+----------+----------+----------+
| | 4-6| 1-3| 1-6| 4-6| 1-12|
+-----------------------+----------+----------+----------+----------+----------+
+-----------------------+----------+----------+----------+----------+----------+
|Outstanding shares, end| | | | | |
|of period | | | | | |
+-----------------------+----------+----------+----------+----------+----------+
|Basic |71 408 913|71 408 913|71 408 913|71 483 173|71 408 913|
+-----------------------+----------+----------+----------+----------+----------+
|Diluted |71 616 474|71 691 433|71 658 176|71 557 433|71 481 673|
+-----------------------+----------+----------+----------+----------+----------+
+-----------------------+----------+----------+----------+----------+----------+
|Outstanding shares, | | | | | |
|average | | | | | |
+-----------------------+----------+----------+----------+----------+----------+
|Basic *) |71 408 913|71 408 913|71 408 913|71 577 023|71 499 888|
+-----------------------+----------+----------+----------+----------+----------+
|Diluted |71 619 441|71 695 784|71 663 323|71 652 226|71 574 507|
+-----------------------+----------+----------+----------+----------+----------+
+-----------------------+----------+----------+----------+----------+----------+
|Company's possession of| | | | | |
|its own shares, | | | | | |
+-----------------------+----------+----------+----------+----------+----------+
|End of period | 548 900| 545 900| 548 900| 540 000| 541 500|
+-----------------------+----------+----------+----------+----------+----------+
|Average | 545 933| 541 549| 543 753| 446 150| 473 315|
+-----------------------+----------+----------+----------+----------+----------+
*) Number of shares included in the calculation of basic Earnings per share.
Shares conveyed in 2009 are excluded as they can be returned until the end of
2010.
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Income statement, EUR million | 2010| 2009| 2010| 2009|Change| 2009|
+---------------------------------------+-----+-----+-----+-----+------+-------+
| | 4-6| 4-6| 1-6| 1-6| %| 1-12|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Net sales |431.5|444.8|854.4|882.8| -3|1 706.3|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Other operating income | 2.5| 7.1| 9.5| 10.0| -5| 17.5|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Employee benefit expenses |255.8|265.8|510.3|532.7| -4| 986.7|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Depreciation, amortization and | 18.2| 19.0| 41.2| 36.3| 13| 70.7|
|impairment charges | | | | | | |
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Other operating expenses |140.5|156.7|274.1|308.5| -11| 591.1|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Operating profit (EBIT) | 19.5| 10.4| 38.3| 15.3| 150| 75.3|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Interest and other financial income | 3.3| 0.8| 7.1| 1.6| 344| 5.8|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Interest and other financial expenses | -4.7| -3.2|-10.3| -5.5| 87| -13.7|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Net exchange losses/gains | 0.3| 0.8| 1.0| -0.5| -| 2.9|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Profit before taxes | 18.4| 8.8| 36.1| 10.9| 231| 70.3|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Income taxes | -6.7| 1.2|-12.4| 0.1| -| -15.2|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Net profit for the period | 11.7| 10.0| 23.7| 11.0| 115| 55.1|
+---------------------------------------+-----+-----+-----+-----+------+-------+
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Net profit for the period attributable | | | | | | |
|to | | | | | | |
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Shareholders of the Parent company | 11.8| 18.4| 23.7| 10.7| 121| 54.8|
+---------------------------------------+-----+-----+-----+-----+------+-------+
|Non-controlling interest | -0.1| 0.3| 0.0| 0.3| -100| 0.3|
+---------------------------------------+-----+-----+-----+-----+------+-------+
| | 11.7| 10.0| 23.7| 11.0| 115| 55.1|
+---------------------------------------+-----+-----+-----+-----+------+-------+
Earnings per share attributable to the shareholders
of the Parent company, EUR
Basic 0.17 0.14 0.33 0.15 120 0.77
Diluted 0.17 0.14 0.33 0.15 120 0.77
Statement of comprehensive income, EUR million
+------------------------------------------+----+----+----+----+-----+----+
|Net profit for the period |11.7|10.0|23.7|11.0| 115|55.1|
+------------------------------------------+----+----+----+----+-----+----+
|Tax impact on share-based payments | -| 0.2| -| 0.2| -| -|
+------------------------------------------+----+----+----+----+-----+----+
|Translation difference from the +----+----+----+----+-----+----+
|net investment in Swedish subsidiaries | | | | | | |
|(net of tax) | 3.0|-8.0|11.0| 0.7|1 471| 8.2|
+------------------------------------------+----+----+----+----+-----+----+
|Translation differences | 1.3| 9.5| 5.0| 3.2| -| 7.2|
+------------------------------------------+----+----+----+----+-----+----+
|Cash flow hedges |-0.1| -|-0.1| -| -| -|
+------------------------------------------+----+----+----+----+-----+----+
|Total comprehensive income |15.9|11.7|39.6|15.1| 1587|70.5|
+------------------------------------------+----+----+----+----+-----+----+
| | | | | | | |
+------------------------------------------+----+----+----+----+-----+----+
|Total comprehensive income attributable to| | | | | | |
+------------------------------------------+----+----+----+----+-----+----+
|Shareholders of the Parent company |16.0|11.6|39.6|14.8| 168|70.2|
+------------------------------------------+----+----+----+----+-----+----+
|Non-controlling interest |-0.1| 0.1| 0.0| 0.3| -100| 0.3|
+------------------------------------------+----+----+----+----+-----+----+
| |15.9|11.7|39.6|15.1| 162|70.5|
+------------------------------------------+----+----+----+----+-----+----+
+---------------------------------------+-------+-------+------+-------+
|Balance sheet, EUR million | | | | |
| | 2010| 2009|Change| 2009|
| | | | | |
+---------------------------------------+-------+-------+------+-------+
| | 30 Jun| 30 Jun| %| 31 Dec|
+---------------------------------------+-------+-------+------+-------+
+---------------------------------------+-------+-------+------+-------+
|Goodwill | 416.2| 392.7| 6| 402.0|
+---------------------------------------+-------+-------+------+-------+
|Other intangible assets | 53.4| 46.1| 16| 42.8|
+---------------------------------------+-------+-------+------+-------+
|Property, plant and equipment | 106.3| 100.8| 5| 100.1|
+---------------------------------------+-------+-------+------+-------+
|Deferred tax assets | 57.8| 74.5| -22| 66.9|
+---------------------------------------+-------+-------+------+-------+
|Loan receivables | 5.0| 5.0| 0| 5.0|
+---------------------------------------+-------+-------+------+-------+
|Other non-current assets | 0.8| 0.8| 0| 0.8|
+---------------------------------------+-------+-------+------+-------+
|Total non-current assets | 639.5| 619.9| 3| 617.6|
+---------------------------------------+-------+-------+------+-------+
|Trade and other receivables | 462.9| 469.5| -1| 444.1|
+---------------------------------------+-------+-------+------+-------+
|Loan receivables | 3.9| 6.6| -41| 3.9|
+---------------------------------------+-------+-------+------+-------+
|Current income tax receivables | 6.6| 14.4| -54| 6.4|
+---------------------------------------+-------+-------+------+-------+
|Cash and cash equivalents | 58.9| 101.7| -42| 123.3|
+---------------------------------------+-------+-------+------+-------+
|Total current assets | 532.3| 592.2| -10| 577.7|
+---------------------------------------+-------+-------+------+-------+
|Assets classified as held for sale | -| -| -| -|
+---------------------------------------+-------+-------+------+-------+
|Total assets |1 171.8|1 212.1| -3|1 195.3|
+---------------------------------------+-------+-------+------+-------+
+---------------------------------------+-------+-------+------+-------+
|Share capital, share issue | | | | |
+---------------------------------------+-------+-------+------+-------+
|premiums and other reserves | 112.7| 109.6| 3| 110.6|
+---------------------------------------+-------+-------+------+-------+
|Retained earnings | 410.8| 350.9| 17| 407.0|
+---------------------------------------+-------+-------+------+-------+
|Parent shareholders' equity | 523.5| 460.5| 14| 517.6|
+---------------------------------------+-------+-------+------+-------+
|Non-controlling interest | 0.1| 1.5| -93| 0.7|
+---------------------------------------+-------+-------+------+-------+
|Total equity | 523.6| 462.0| 13| 518.3|
+---------------------------------------+-------+-------+------+-------+
| | | | | |
+---------------------------------------+-------+-------+------+-------+
|Finance lease liability | 6.8| 11.9| -43| 9.5|
+---------------------------------------+-------+-------+------+-------+
|Loans | 150.0| 150.0| 0| 150.0|
+---------------------------------------+-------+-------+------+-------+
|Deferred tax liabilities | 36.8| 27.6| 33| 33.6|
+---------------------------------------+-------+-------+------+-------+
|Pension obligations | 19.5| 17.8| 10| 18.9|
+---------------------------------------+-------+-------+------+-------+
|Other non-current liabilities | 2.2| 1.5| 47| 1.4|
+---------------------------------------+-------+-------+------+-------+
|Total non-current liabilities | 215.3| 208.8| 3| 213.4|
+---------------------------------------+-------+-------+------+-------+
|Trade and other payables | 395.3| 388.0| 2| 370.1|
+---------------------------------------+-------+-------+------+-------+
|Current income tax liabilities | 9.1| 8.3| 10| 8.2|
+---------------------------------------+-------+-------+------+-------+
|Provisions | 27.9| 54.5| -49| 46.5|
+---------------------------------------+-------+-------+------+-------+
|Loans | 0.6| 90.5| -99| 38.8|
+---------------------------------------+-------+-------+------+-------+
|Total current liabilities | 432.9| 541.3| -20| 463.6|
+---------------------------------------+-------+-------+------+-------+
|Liabilities classified as held for sale| -| -| -| -|
+---------------------------------------+-------+-------+------+-------+
|Total equity and liabilities |1 171.8|1 212.1| -3|1 195.3|
+---------------------------------------+-------+-------+------+-------+
+--------------------------------------------------+------+------+------+------+
|Net working capital in the balance sheet, EUR | | | | |
|million | | | | |
+-------------------------------------------+------+------+------+------+------+
+-------------------------------------------+------+------+------+------+------+
| | 2010| 2009|Change| 2010| 2009|
+-------------------------------------------+------+------+------+------+------+
| |30 Jun|30 Jun| %|31 Mar|31 Dec|
+-------------------------------------------+------+------+------+------+------+
+-------------------------------------------+------+------+------+------+------+
|Accounts receivable | 304.2| 312.1| -3| 296.5| 313.9|
+-------------------------------------------+------+------+------+------+------+
|Other working capital receivables | 152.4| 156.5| -3| 149.7| 129.4|
+-------------------------------------------+------+------+------+------+------+
|Working capital receivables included in | 456.6| 468.6| -3| 446.2| 443.3|
|assets | | | | | |
+-------------------------------------------+------+------+------+------+------+
+-------------------------------------------+------+------+------+------+------+
|Operative accruals | 157.6| 160.0| -2| 154.3| 149.1|
+-------------------------------------------+------+------+------+------+------+
|Other working capital liabilities | 229.5| 222.8| 3| 224.9| 219.6|
+-------------------------------------------+------+------+------+------+------+
|Pension obligations and provisions | 47.4| 72.2| -34| 57.0| 65.4|
+-------------------------------------------+------+------+------+------+------+
|Working capital liabilities included in | | | | | |
|current | 434.5| 455.0| -5| 436.2| 434.1|
|liabilities | | | | | |
+-------------------------------------------+------+------+------+------+------+
+-------------------------------------------+------+------+------+------+------+
|Net working capital in the balance sheet | 22.1| 13.6| 62| 10.0| 9.2|
+-------------------------------------------+------+------+------+------+------+
+--------------------------------------+-----+-----+------+------+------+------+
|Cash flow, EUR million | 2010| 2009| 2010| 2010| 2009| 2009|
+-+-+----------------------------------+-----+-----+------+------+------+------+
| | | | 4-6| 4-6| 1-3| 1-6| 1-6| 1-12|
+-+-+----------------------------------+-----+-----+------+------+------+------+
+-+-+----------------------------------+-----+-----+------+------+------+------+
|Cash flow from operations | | | | | | |
+-+------------------------------------+-----+-----+------+------+------+------+
| |Net profit | 11.7| 10.0| 12.0| 23.7| 11.0| 55.1|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Adjustments | | | | | | |
+-+-+----------------------------------+-----+-----+------+------+------+------+
| | |Depreciation, amortization and | 18.2| 19.0| 23.0| 41.2| 36.3| 70.7|
| | |impairment charges | | | | | | |
+-+-+----------------------------------+-----+-----+------+------+------+------+
| | |Share-based payments | 1.3| 1.1| 1.2| 2.5| 2.1| 3.8|
+-+-+----------------------------------+-----+-----+------+------+------+------+
| | |Profit/loss on sale of fixed | | | | | | |
| | |assets | 0.1| -6.1| -0.5| -0.4| -6.1| -6.1|
| | |and shares | | | | | | |
+-+-+----------------------------------+-----+-----+------+------+------+------+
| | |Other adjustments | -0.6| 0.8| 0.0| -0.6| 0.9| 0.2|
+-+-+----------------------------------+-----+-----+------+------+------+------+
| | |Net financial expenses | 1.1| 1.6| 1.1| 2.2| 4.4| 5.0|
+-+-+----------------------------------+-----+-----+------+------+------+------+
| | |Income taxes | 6.7| -1.2| 5.7| 12.4| -0.1| 15.2|
+-+-+----------------------------------+-----+-----+------+------+------+------+
| |Change in net working capital | -9.2|-25.8| -9.9| -19.1| 2.3| -3.9|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Cash generated from operations | 29.3| -0.6| 32.6| 61.9| 50.8| 140.0|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Net financial expenses paid | -0.8| -1.3| 1.9| 1.1| -4.3| 0.8|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Income taxes paid | -1.0|-10.2| -6.6| -7.6| -16.6| -14.4|
+-+------------------------------------+-----+-----+------+------+------+------+
|Net cash flow from operations | 27.5|-12.1| 27.9| 55.4| 29.9| 126.4|
+-+-+----------------------------------+-----+-----+------+------+------+------+
+-+-+----------------------------------+-----+-----+------+------+------+------+
|Cash flow from investing activities | | | | | | |
+-+------------------------------------+-----+-----+------+------+------+------+
| |Acquisition of Group companies and | | | | | | |
| |business | | | | | | |
+-+------------------------------------+-----+-----+------+------+------+------+
| |operations, net of cash acquired | -1.2| 0.1| -0.4| -1.6| -2.3| -4.6|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Capital expenditures |-24.6|-13.4| -21.4| -46.0| -29.3| -58.0|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Advance payment for acquisition of | -| -1.0| -| 0.0| -1.0| -|
| |shares | | | | | | |
+-+------------------------------------+-----+-----+------+------+------+------+
| |Disposal of business operations | -2.2| 5.7| 5.1| 2.9| 5.7| 5.7|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Sales of fixed assets | -0.1| 1.7| 0.3| 0.2| 1.7| 2.9|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Change in loan receivables | -0.7| -1.9| 0.7| 0.0| -1.8| 0.8|
+-+------------------------------------+-----+-----+------+------+------+------+
|Net cash used in investing activities |-28.8| -8.8| -15.7| -44.5| -27.0| -53.2|
|from operations | | | | | | |
+-+-+----------------------------------+-----+-----+------+------+------+------+
+-+-+----------------------------------+-----+-----+------+------+------+------+
|Cash flow from financing activities | | | | | | |
+-+------------------------------------+-----+-----+------+------+------+------+
| |Dividends paid |-35.7|-36.3| -0.3| -36.0| -36.3| -36.3|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Repurchase of own shares | -| -2.6| -| -| -2.6| -2.6|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Payment of finance lease liabilities| -1.3| -3.9| -1.3| -2.6| -2.6| -5.1|
+-+------------------------------------+-----+-----+------+------+------+------+
| |Change in interest-bearing | 0.2| 70.4| -38.4| -38.2| 23.8| -27.9|
| |liabilities | | | | | | |
+-+------------------------------------+-----+-----+------+------+------+------+
|Net cash used in financing activities |-36.8| 27.6| -40.0| -76.8| -17.7| -71.9|
|from operations | | | | | | |
+-+-+----------------------------------+-----+-----+------+------+------+------+
+-+-+----------------------------------+-----+-----+------+------+------+------+
|Change in cash and cash equivalents |-38.1| 6.7| -27.8| -65.9| -14.8| 1.3|
+-+-+----------------------------------+-----+-----+------+------+------+------+
| | | | | | | | | |
+-+-+----------------------------------+-----+-----+------+------+------+------+
|Cash and cash equivalents at beginning|-98.4|-94.6|-123.3|-123.3|-120.2|-120.2|
|of period | | | | | | |
+--------------------------------------+-----+-----+------+------+------+------+
|Foreign exchange differences | 1.4| -0.4| -2.9| -1.5| 3.7| -1.8|
+--------------------------------------+-----+-----+------+------+------+------+
|Cash and cash equivalents at end of | 58.9|101.7| 98.4| 58.9| 101.7| 123.3|
|period | | | | | | |
+-+-+----------------------------------+-----+-----+------+------+------+------+
| | | |-38.1| 6.7| -27.8| -65.9| -14.8| 1.3|
+-+-+----------------------------------+-----+-----+------+------+------+------+
+---------------------------------------------+------+------+-----+------+-----+
|Statement of changes in shareholders' equity,| | | | | |
|EUR million | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
| | Parent shareholders' equity | Non-| |
+---------------+-----+--------+------+-------+------+------+-----+ con-|Total|
+---------------+-----+--------+------+-------+------+------+-----+troll-|equi-|
| | | | | | | | | ing| ty|
| | | | | | | | |inter-| |
| | | | | | | | | est| |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
| |Share| Share| Own| Trans-| Cash| Re-|Total| | |
| |capi-| issue|shares| lation| flow|tained| | | |
| | tal| premi-| |differ-|hedges| earn-| | | |
| | | ums and| | encies| | ings| | | |
| | | other| | | | | | | |
| | |reserves| | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Balance at 31 | 75.8| 33.2| -9.0| -76.1| 0.0| 458.1|482.0| 1.6|483.6|
|Dec 2008 | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Comprehensive | | | | | | | | | |
|income | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Net profit for | | | | | | 10.7| 10.7| 0.3| 11.0|
|the period | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Other comprehensive | | | | | | | | |
|income | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Translation | | | | | | | | | |
|difference from| | | | | | | | | |
|the net | | | | | | | | | |
|investment in | | | | | | 0.7| 0.7| | 0.7|
|Swedish | | | | | | | | | |
|subsidiaries | | | | | | | | | |
|(net of tax) | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Translation | | 0.1| | 1.2| | 2.1| 3.4| | 3.4|
|difference | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Total | | | | | | | | | |
|comprehensive | | 0.1| | 1.2| 0.0| 13.5| 14.8| 0.3| 15.1|
|income | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Transactions | | | | | | | | | |
|with owners | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Share-based | | | | | | | | | |
|payments | | | | | | 2.1| 2.1| | 2.1|
|recognized | | | | | | | | | |
|against equity | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Dividend | | | | | | -35.8|-35.8| |-35.8|
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Own shares | | | -2.6| | | | -2.6| | -2.6|
|purchased | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Transfer | | | | | | | | | |
|between | | | | | | | | | |
|restricted | | 0.4| | | | -0.4| 0.0| | 0.0|
|and | | | | | | | | | |
|non-restricted | | | | | | | | | |
|reserves | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Non-controlling| | | | | | | | -0.4| -0.4|
|interest | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Total transactions | | | | | | | | |
|with | 0.4| -2.6| | | -34.1|-36.3| -0.4|-36.7|
|owners | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|At 30 June 2009| 75.8| 33.7| -11.6| -74.9| 0.0| 437.5|460.5| 1.5|462.0|
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-------------------------------------------------+------+-----+
| | Parent shareholders' equity | Non-| |
+---------------+-----+--------+------+-------+------+------+-----+ con-|Total|
+---------------+-----+--------+------+-------+------+------+-----+troll-|equi-|
| | | | | | | | | ing| ty|
| | | | | | | | |inter-| |
| | | | | | | | | est| |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
| |Share| Share| Own| Trans-| Cash| Re-|Total| | |
| |capi-| issue|shares| lation| flow|tained| | | |
| | tal| premi-| |differ-|hedges| earn-| | | |
| | | ums and| | encies| | ings| | | |
| | | other| | | | | | | |
| | |reserves| | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Balance at 31 | 75.8| 34.8| -11.6| -44.8| 0.0| 463.4|517.6| 0.7|518.3|
|Dec 2009 | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Comprehensive | | | | | | | | | |
|income | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Net profit for | | | | | | 23.7| 23.7| 0.0| 23.7|
|the period | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Other comprehensive | | | | | | | | |
|income | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Translation | | | | | | | | | |
|difference from| | | | | | | | | |
|the net | | | | | | | | | |
|investment in | | | | | | 11.0| 11.0| | 11.0|
|Swedish | | | | | | | | | |
|subsidiaries | | | | | | | | | |
|(net of tax) | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Translation | | 2.1| | 34.8| | -31.9| 5.0| | 5.0|
|difference | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Cash flow | | | | | -0.1| | -0.1| | -0.1|
|hedges | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Total | | | | | | | | | |
|comprehensive | | 2.1| | 34.8| -0.1| 2.8| 39.6| 0.0| 39.6|
|income | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Transactions | | | | | | | | | |
|with owners | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Share-based | | | | | | | | | |
|payments | | | | | | 2.5| 2.5| | 2.5|
|recognized | | | | | | | | | |
|against equity | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Dividend | | | | | | -35.7|-35.7| |-35.7|
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Changes due to | | | | | | | | | |
|business | | | | | | -0.5| -0.5| -0.2| -0.7|
|combinations | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Non-controlling| | | | | | | | -0.4| -0.4|
|interest | | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|Total transactions | | | | | | | | |
|with | 0.0| 0.0| | | -33.7|-33.7| -0.6|-34.3|
|owners | | | | | | | | |
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
|At 30 June 2010| 75.8| 36.9| -11.6| -10.0| -0.1| 432.5|523.5| 0.1|523.6|
+---------------+-----+--------+------+-------+------+------+-----+------+-----+
+---------------------------------+----+----+------+----+----+------+-----+
|Net sales by country, EUR million| | | | | | | |
+---------------------------------+----+----+------+----+----+------+-----+
| | | | | | | | |
+---------------------------------+----+----+------+----+----+------+-----+
| |2010|2009|Change|2010|2009|Change| 2009|
+---------------------------------+----+----+------+----+----+------+-----+
| | 4-6| 4-6| %| 1-6| 1-6| %| 1-12|
+---------------------------------+----+----+------+----+----+------+-----+
|Finland | 228| 230| -1| 449| 457| -2| 888|
+---------------------------------+----+----+------+----+----+------+-----+
|Sweden | 126| 116| 9| 245| 235| 4| 462|
+---------------------------------+----+----+------+----+----+------+-----+
|International | 136| 143| -5| 271| 284| -5| 553|
+---------------------------------+----+----+------+----+----+------+-----+
|Group elimination | -58| -45| 30|-111| -93| 19| -197|
+---------------------------------+----+----+------+----+----+------+-----+
|Group total | 431| 445| -3| 854| 883| -3|1 706|
+---------------------------------+----+----+------+----+----+------+-----+
Internal sales by country, EUR million
+-------------+----+----+------+----+----+------+----+
| |2010|2009|Change|2010|2009|Change|2009|
+-------------+----+----+------+----+----+------+----+
| | 4-6| 4-6| %| 1-6| 1-6| %|1-12|
+-------------+----+----+------+----+----+------+----+
|Finland | 18| 17| 5| 35| 35| 1| 73|
+-------------+----+----+------+----+----+------+----+
|Sweden | 7| 4| 58| 13| 14| -11| 27|
+-------------+----+----+------+----+----+------+----+
|International| 34| 24| 43| 63| 44| 43| 96|
+-------------+----+----+------+----+----+------+----+
|Group total | 58| 45| 30| 111| 93| 19| 197|
+-------------+----+----+------+----+----+------+----+
Sales between segments are carried out at arm's length.
+-----------------------------------------------------+-----+----+-----+-----+
|Net sales according to customer location, EUR million| | | | |
+-----------+----+------------------------------------+-----+----+-----+-----+
| | | | | | | |
+-----------+----+------------------------------------+-----+----+-----+-----+
| |2010| Change|Share|2009|Share| 2009|
+-----------+----+------------------------------------+-----+----+-----+-----+
| | 1-6| %| %| 1-6| %| 1-12|
+-----------+----+------------------------------------+-----+----+-----+-----+
|Finland | 404| -3| 47| 417| 47| 806|
+-----------+----+------------------------------------+-----+----+-----+-----+
|Sweden | 229| 6| 27| 217| 25| 431|
+-----------+----+------------------------------------+-----+----+-----+-----+
|Other | 221| -11| 26| 248| 28| 470|
+-----------+----+------------------------------------+-----+----+-----+-----+
|Group total| 854| -3| 100| 883| 100|1 706|
+-----------+----+------------------------------------+-----+----+-----+-----+
+-----------------------------------------+----+------+----+----+------+-----+
|Net sales by customer sector, EUR million| | | | | | |
+----------------+------------------------+----+------+----+----+------+-----+
| | | | | | | | |
+----------------+------------------------+----+------+----+----+------+-----+
| | 2010|2009|Change|2010|2009|Change| 2009|
+----------------+------------------------+----+------+----+----+------+-----+
| | 4-6| 4-6| %| 1-6| 1-6| %| 1-12|
+----------------+------------------------+----+------+----+----+------+-----+
|Telecom | 146| 149| -2| 289| 302| -4| 582|
+----------------+------------------------+----+------+----+----+------+-----+
|Finance | 90| 94| -4| 178| 183| -2| 359|
+----------------+------------------------+----+------+----+----+------+-----+
|Industry sectors| 194| 201| -3| 387| 398| -3| 766|
+----------------+------------------------+----+------+----+----+------+-----+
|Group total | 431| 445| -3| 854| 883| -3|1 706|
+----------------+------------------------+----+------+----+----+------+-----+
Revenues of EUR 114.9 million (EUR 115.6 million in 2009) are derived from a
single external customer. These revenues are attributable to all reportable
segments.
+----------------------------------------------+------+-----+-----+------+-----+
|Operating profit (EBIT) by country, EUR | | | | | |
|million | | | | | |
+-----------------------+-----+----------------+------+-----+-----+------+-----+
| | | | | | | | |
+-----------------------+-----+----------------+------+-----+-----+------+-----+
| | 2010| 2009|Change| 2010| 2009|Change| 2009|
+-----------------------+-----+----------------+------+-----+-----+------+-----+
| | 4-6| 4-6| %| 1-6| 1-6| %| 1-12|
+-----------------------+-----+----------------+------+-----+-----+------+-----+
|Finland | 25.9| 25.6| 1.3| 48.6| 48.3| 0.5|110.3|
+-----------------------+-----+----------------+------+-----+-----+------+-----+
|Sweden | 7.7| -6.2| Pos| 13.5|-15.0| Pos| -3.1|
+-----------------------+-----+----------------+------+-----+-----+------+-----+
|International | 0.3| -6.2| Pos| -1.1| -9.9| 88.4| -6.7|
+-----------------------+-----+----------------+------+-----+-----+------+-----+
|Group operations |-14.4| -2.8|-418.8|-22.6| -8.1|-178.5|-25.4|
+-----------------------+-----+----------------+------+-----+-----+------+-----+
|Operating profit (EBIT)| 19.5| 10.4| 87.5| 38.3| 15.3| 150.6| 75.3|
+-----------------------+-----+----------------+------+-----+-----+------+-----+
+-------------------------------------+----+------+----+----+------+----+
|Operating margin (EBIT) by country, %| | | | | | |
+-----------------------+-------------+----+------+----+----+------+----+
| | | | | | | | |
+-----------------------+-------------+----+------+----+----+------+----+
| | 2010|2009|Change|2010|2009|Change|2009|
+-----------------------+-------------+----+------+----+----+------+----+
| | 4-6| 4-6| | 1-6| 1-6| |1-12|
+-----------------------+-------------+----+------+----+----+------+----+
|Finland | 11.4|11.1| 0.3|10.8|10.6| 0.2|12.4|
+-----------------------+-------------+----+------+----+----+------+----+
|Sweden | 6.1|-5.3| 11.4| 5.5|-6.4| 11.9|-0.7|
+-----------------------+-------------+----+------+----+----+------+----+
|International | 0.2|-4.3| 4.5|-0.4|-3.5| 3.1|-1.2|
+-----------------------+-------------+----+------+----+----+------+----+
|Operating margin (EBIT)| 4.5| 2.3| 2.2| 4.5| 1.7| 2.8| 4.4|
+-----------------------+-------------+----+------+----+----+------+----+
+--------------------+------+------+-----+------+------+------+------+
|Personnel by country| | | | | | | |
+--------------------+------+------+-----+------+------+------+------+
| | | | | | | | |
+--------------------+------+------+-----+------+------+------+------+
| | End of period | | Average |
+--------------------+------+------+-----+------+------+------+------+
| | 2010|Change|Share| 2009| 2009| 2010| 2009|
+--------------------+------+------+-----+------+------+------+------+
| | 1-6| %| %| 1-6| 1-12| 1-6| 1-6|
+--------------------+------+------+-----+------+------+------+------+
|Finland | 5 766| -2| 34| 5 863| 5 758| 5 774| 6 016|
+--------------------+------+------+-----+------+------+------+------+
|Sweden | 2 893| -7| 17| 3 122| 3 102| 2 957| 3 265|
+--------------------+------+------+-----+------+------+------+------+
|Czech | 1 768| 18| 10| 1 500| 1 656| 1 726| 1 519|
+--------------------+------+------+-----+------+------+------+------+
|India | 1 146| 43| 7| 802| 1 009| 1 103| 784|
+--------------------+------+------+-----+------+------+------+------+
|Germany | 1 026| -2| 6| 1 049| 1 047| 1 032| 1 097|
+--------------------+------+------+-----+------+------+------+------+
|China | 882| 121| 5| 399| 590| 765| 367|
+--------------------+------+------+-----+------+------+------+------+
|Poland | 780| 31| 5| 596| 676| 734| 576|
+--------------------+------+------+-----+------+------+------+------+
|Latvia | 597| -3| 4| 618| 588| 592| 625|
+--------------------+------+------+-----+------+------+------+------+
|Norway | 521| -6| 3| 556| 561| 528| 628|
+--------------------+------+------+-----+------+------+------+------+
|Italy | 270| 4| 2| 260| 266| 271| 261|
+--------------------+------+------+-----+------+------+------+------+
|Great Britain | 220| -23| 1| 285| 274| 248| 307|
+--------------------+------+------+-----+------+------+------+------+
|Denmark | 202| -16| 1| 241| 226| 214| 287|
+--------------------+------+------+-----+------+------+------+------+
|Lithuania | 181| 1| 1| 180| 177| 179| 187|
+--------------------+------+------+-----+------+------+------+------+
|Netherlands | 131| -4| 1| 136| 133| 131| 145|
+--------------------+------+------+-----+------+------+------+------+
|Estonia | 122| 0| 1| 122| 118| 120| 122|
+--------------------+------+------+-----+------+------+------+------+
|France | 0| -100| 0| 131| 134| 65| 140|
+--------------------+------+------+-----+------+------+------+------+
|Other | 380| 14| 2| 335| 349| 377| 324|
+--------------------+------+------+-----+------+------+------+------+
|Group total |16 885| 4| 100|16 195|16 663|16 817|16 650|
+--------------------+------+------+-----+------+------+------+------+
+------------------------------------+-------+------+-------+
|Total assets by country, EUR million| | | |
+-------------------+----------------+-------+------+-------+
| | | | | |
+-------------------+----------------+-------+------+-------+
| | 2010| 2009|Change| 2010|
+-------------------+----------------+-------+------+-------+
| | 30 Jun| 30 Jun| %| 31 Dec|
+-------------------+----------------+-------+------+-------+
|Finland | 461.1| 472.7| -2| 442.1|
+-------------------+----------------+-------+------+-------+
|Sweden | 278.4| 245.6| 13| 261.3|
+-------------------+----------------+-------+------+-------+
|International | 322.0| 346.1| -7| 310.8|
+-------------------+----------------+-------+------+-------+
|Country elimination| -24.6| -20.9| 17| -21.4|
+-------------------+----------------+-------+------+-------+
|Countries total | 1 037.0|1 043.4| -1| 992.7|
+-------------------+----------------+-------+------+-------+
|Group Operations | 134.8| 168.7| -20| 202.5|
+-------------------+----------------+-------+------+-------+
|Total assets | 1 171.8|1 212.1| -3|1 195.3|
+-------------------+----------------+-------+------+-------+
Non-current assets according to asset location, EUR million
+------------------------+------+------+------+------+
| | | | | |
+------------------------+------+------+------+------+
| | 2010| 2009|Change| 2009|
+------------------------+------+------+------+------+
| |30 Jun|30 Jun| %|31 Dec|
+------------------------+------+------+------+------+
|Finland | 258.0| 254.7| 1| 252.0|
+------------------------+------+------+------+------+
|Sweden | 155.6| 132.6| 17| 138.6|
+------------------------+------+------+------+------+
|Other | 162.2| 152.3| 7| 154.4|
+------------------------+------+------+------+------+
|Total non-current assets| 575.9| 539.6| 7| 545.0|
+------------------------+------+------+------+------+
+-------------------------------------------+----+------+----+
|Capital expenditure by country, EUR million| | | |
+----------------+----+----+------+---------+----+------+----+
| | | | | | | | |
+----------------+----+----+------+---------+----+------+----+
| |2010|2009|Change| 2010|2009|Change|2009|
+----------------+----+----+------+---------+----+------+----+
| | 4-6| 4-6| %| 1-6| 1-6| %|1-12|
+----------------+----+----+------+---------+----+------+----+
|Finland |11.4|10.1| 13| 25.0|22.9| 9|41.2|
+----------------+----+----+------+---------+----+------+----+
|Sweden | 7.6| 2.3| 230| 12.6| 4.7| 169| 9.4|
+----------------+----+----+------+---------+----+------+----+
|International | 3.8| 0.7| 443| 5.0| 0.7| 608| 4.2|
+----------------+----+----+------+---------+----+------+----+
|Group Operations| 2.2| 0.3| 633| 4.0| 1.0| 301| 2.8|
+----------------+----+----+------+---------+----+------+----+
|Group total |25.0|13.4| 87| 46.6|29.3| 59|57.5|
+----------------+----+----+------+---------+----+------+----+
Depreciation by country, EUR million
+----------------+----+----+------+----+----+------+----+
| | | | | | | | |
+----------------+----+----+------+----+----+------+----+
| |2010|2009|Change|2010|2009|Change|2009|
+----------------+----+----+------+----+----+------+----+
| | 4-6| 4-6| %| 1-6| 1-6| %|1-12|
+----------------+----+----+------+----+----+------+----+
|Finland |10.9|10.1| 9|21.5|20.5| 5|41.7|
+----------------+----+----+------+----+----+------+----+
|Sweden | 2.4| 2.0| 18| 4.4| 4.1| 8| 8.3|
+----------------+----+----+------+----+----+------+----+
|International | 1.5| 4.1| -64| 3.0| 5.7| -48| 8.8|
+----------------+----+----+------+----+----+------+----+
|Group Operations| 0.4| 0.6| -34| 0.8| 1.4| -40| 2.6|
+----------------+----+----+------+----+----+------+----+
|Group total |15.2|16.8| -9|29.8|31.7| -6|61.4|
+----------------+----+----+------+----+----+------+----+
Amortization on allocated intangible assets from acquisitions, EUR million
+----------------+----+----+------+----+----+------+----+
| | | | | | | | |
+----------------+----+----+------+----+----+------+----+
| |2010|2009|Change|2010|2009|Change|2009|
+----------------+----+----+------+----+----+------+----+
| | 4-6| 4-6| %| 1-6| 1-6| %|1-12|
+----------------+----+----+------+----+----+------+----+
|Finland | 0.1| 0.1| 7| 0.2| 0.3| -8| 0.5|
+----------------+----+----+------+----+----+------+----+
|Sweden | 0.8| 0.7| 12| 1.5| 1.5| 3| 2.9|
+----------------+----+----+------+----+----+------+----+
|International | 1.1| 1.5| -26| 2.0| 2.9| -29| 5.9|
+----------------+----+----+------+----+----+------+----+
|Group Operations| 0.0| 0.0| 0| 0.0| 0.0| 0| 0.0|
+----------------+----+----+------+----+----+------+----+
|Group total | 2.0| 2.3| -13| 3.8| 4.6| -18| 9.3|
+----------------+----+----+------+----+----+------+----+
Impairment losses, EUR million
+----------------+----+----+------+----+----+------+----+
+----------------+----+----+------+----+----+------+----+
| |2010|2009|Change|2010|2009|Change|2009|
+----------------+----+----+------+----+----+------+----+
| | 4-6| 4-6| %| 1-6| 1-6| %|1-12|
+----------------+----+----+------+----+----+------+----+
|Finland | 0.0| 0.0| 0| 0.0| 0.0| 0| 0.0|
+----------------+----+----+------+----+----+------+----+
|Sweden | 0.0| 0.0| 0| 0.0| 0.0| 0| 0.0|
+----------------+----+----+------+----+----+------+----+
|International | 1.0| 0.0| -| 7.6| 0.0| -| 0.0|
+----------------+----+----+------+----+----+------+----+
|Group Operations| 0.0| 0.0| 0| 0.0| 0.0| 0| 0.0|
+----------------+----+----+------+----+----+------+----+
|Group total | 1.0| 0.0| -| 7.6| 0.0| -| 0.0|
+----------------+----+----+------+----+----+------+----+
+------------------------------------------+-----------+-+-----------+--------++
|Commitments and contingencies, EUR million| | | | ||
+------------------------------------------+-----------+-+-----------+--------++
+------------------------------------------+-----------+-+-----------+--------++
| |30 Jun 2010| |31 Dec 2009|Change %||
+------------------------------------------+-----------+-+-----------+--------++
+------------------------------------------+-----------+-+-----------+--------++
|For Tieto obligations | | | | ||
+------------------------------------------+-----------+-+-----------+--------++
|Pledges | 0.0| | 0.0| 0||
+------------------------------------------+-----------+-+-----------+--------++
|On behalf of joint ventures | 0.5| | 0.0| 0||
+------------------------------------------+-----------+-+-----------+--------++
|Other Tieto obligations | | | | ||
+------------------------------------------+-----------+-+-----------+--------++
|Rent commitments due in one year | 43.4| | 52.1| -17||
+------------------------------------------+-----------+-+-----------+--------++
|Rent commitments due in 1-5 years | 94.0| | 86.9| 8||
+------------------------------------------+-----------+-+-----------+--------++
|Rent commitments due after 5 years | 40.5| | 21.4| 89||
+------------------------------------------+-----------+-+-----------+--------++
|Operating lease commitments due in one | 9.7| | 11.3| -14||
|year | | | | ||
+------------------------------------------+-----------+-+-----------+--------++
|Operating lease commitments due in 1-5 | 8.0| | 8.8| -9||
|years | | | | ||
+------------------------------------------+-----------+-+-----------+--------++
|Operating lease commitments due after 5 | 0.0| | 0.0| 0||
|years | | | | ||
+------------------------------------------+-----------+-+-----------+--------++
|Other commitments 1) | 35.4| | 28.2| 26||
+------------------------------------------+-----------+-+-----------+--------++
1) In addition commitments of EUR 9.7 million (EUR 7.6 million at December
2009) related to liabilities in the Group balance sheet.
Operating lease commitments are principally three-year lease agreements that do
not include buyout clauses.
+----------------------------------+-----------+-+-----------+
|Derivatives, EUR million | | | |
+----------------------------------+-----------+-+-----------+
+----------------------------------+-----------+-+-----------+
|Notional amounts of derivatives |30 Jun 2010| |31 Dec 2009|
+----------------------------------+-----------+-+-----------+
+----------------------------------+-----------+-+-----------+
|Foreign exchange forward contracts| 242.4| | 196.5|
+----------------------------------+-----------+-+-----------+
|Interest rate swap | 250.0| | 250.0|
+----------------------------------+-----------+-+-----------+
Includes the gross amount of all notional values for contracts that have not yet
been settled or closed. The amount of notional value outstanding is not
necessarily a measure or indication of market risk, as the exposure of certain
contracts may be offset by other contracts.
+----------------------------------------------------+-----------+-+-----------+
|Fair values of derivatives | | | |
+----------------------------------------------------+-----------+-+-----------+
|The net fair values of financial derivative +-----------+-+-----------+
|instruments at the balance sheet date were: |30 Jun 2010| |31 Dec 2009|
+----------------------------------------------------+-----------+-+-----------+
+----------------------------------------------------+-----------+-+-----------+
|Foreign exchange forward contracts | -1.0| | -0.6|
+----------------------------------------------------+-----------+-+-----------+
|Interest rate swaps | -1.9| | -1.4|
+----------------------------------------------------+-----------+-+-----------+
Derivatives are used for economic hedging purposes only.
QUARTERLY FIGURES
+---------------------------------------------+----+----+-----+-----+-----+----+
|Key figures | | | | | | |
+---------------------------------------------+----+----+-----+-----+-----+----+
| | | | | | | |
+---------------------------------------------+----+----+-----+-----+-----+----+
| |2010|2010| 2009| 2009| 2009|2009|
+---------------------------------------------+----+----+-----+-----+-----+----+
| | 4-6| 1-3|10-12| 7-9| 4-6| 1-3|
+---------------------------------------------+----+----+-----+-----+-----+----+
|Earnings per share, EUR | | | | | | |
+---------------------------------------------+----+----+-----+-----+-----+----+
|- basic |0.17|0.17| 0.36| 0.25| 0.14|0.01|
+---------------------------------------------+----+----+-----+-----+-----+----+
|- diluted |0.17|0.17| 0.36| 0.25| 0.14|0.01|
+---------------------------------------------+----+----+-----+-----+-----+----+
|Equity per share, EUR |7.33|7.10| 7.25| 6.82| 6.46|6.31|
+---------------------------------------------+----+----+-----+-----+-----+----+
|Return on equity rolling 12 month, % |13.8|13.6| 11.0| 6.3| 7.8|10.2|
+---------------------------------------------+----+----+-----+-----+-----+----+
|Return on capital employed rolling 12 month, |21.1|19.6| 16.8| 18.6| 18.5|25.3|
|% | | | | | | |
+---------------------------------------------+----+----+-----+-----+-----+----+
|Equity ratio % |48.0|45.8| 46.0| 43.2| 40.7|40.0|
+---------------------------------------------+----+----+-----+-----+-----+----+
|Net interest-bearing liabilities, EUR million|89.6|51.9| 66.0|118.9|139.2|79.2|
+---------------------------------------------+----+----+-----+-----+-----+----+
|Gearing, % |17.1|10.2| 12.7| 24.4| 30.1|17.5|
+---------------------------------------------+----+----+-----+-----+-----+----+
|Investments, EUR million |25.2|23.3| 15.7| 12.7| 14.4|16.1|
+---------------------------------------------+----+----+-----+-----+-----+----+
+------------------------------+-----+-----+-----+-----+-----+-----+
|Income statement, EUR million | | | | | | |
+------------------------------+-----+-----+-----+-----+-----+-----+
+------------------------------+-----+-----+-----+-----+-----+-----+
| | 2010| 2010| 2009| 2009| 2009| 2009|
+------------------------------+-----+-----+-----+-----+-----+-----+
| | 4-6| 1-3|10-12| 7-9| 4-6| 1-3|
+------------------------------+-----+-----+-----+-----+-----+-----+
|Net sales |431.5|422.9|440.6|382.9|444.8|438.0|
+------------------------------+-----+-----+-----+-----+-----+-----+
|Other operating income | 2.5| 7.0| 4.7| 2.8| 7.1| 2.9|
+------------------------------+-----+-----+-----+-----+-----+-----+
|Employee benefit expenses |255.8|254.5|243.3|210.7|265.8|266.9|
+------------------------------+-----+-----+-----+-----+-----+-----+
|Depreciation, amortization and| 18.2| 23.0| 17.5| 16.9| 19.0| 17.3|
|impairment charges | | | | | | |
+------------------------------+-----+-----+-----+-----+-----+-----+
|Other operating expenses |140.5|133.6|150.8|131.8|156.7|151.8|
+------------------------------+-----+-----+-----+-----+-----+-----+
|Operating profit (EBIT) | 19.5| 18.8| 33.7| 26.3| 10.4| 4.9|
+------------------------------+-----+-----+-----+-----+-----+-----+
|Financial income and expenses | -1.1| -1.1| -1.5| 0.9| -1.6| -2.8|
+------------------------------+-----+-----+-----+-----+-----+-----+
|Profit before taxes | 18.4| 17.7| 32.2| 27.2| 8.8| 2.1|
+------------------------------+-----+-----+-----+-----+-----+-----+
|Income taxes | -6.7| -5.7| -6.5| -8.8| 1.2| -1.1|
+------------------------------+-----+-----+-----+-----+-----+-----+
|Net profit for the period | 11.7| 12.0| 25.7| 18.4| 10.0| 1.0|
+------------------------------+-----+-----+-----+-----+-----+-----+
+------------------------------+-------+-------+-------+-------+-------+-------+
|Balance sheet, EUR million | | | | | | |
+------------------------------+-------+-------+-------+-------+-------+-------+
+------------------------------+-------+-------+-------+-------+-------+-------+
| | 2010| 2010| 2009| 2009| 2009| 2009|
+------------------------------+-------+-------+-------+-------+-------+-------+
| | 30 Jun| 31 Mar| 31 Dec| 30 Sep| 30 Jun| 31 Mar|
+------------------------------+-------+-------+-------+-------+-------+-------+
+------------------------------+-------+-------+-------+-------+-------+-------+
|Goodwill | 416.2| 411.5| 402.0| 398.2| 392.7| 391.4|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Other intangible assets | 53.4| 45.0| 42.8| 44.1| 46.1| 49.2|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Property, plant and equipment | 106.3| 104.7| 100.1| 99.0| 100.8| 103.2|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Other non-current assets | 63.6| 66.1| 72.7| 68.7| 75.3| 68.7|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Total non-current assets | 639.5| 627.3| 617.6| 610.0| 614.9| 612.5|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Trade receivables and other | | | | | | |
|current | 473.4| 461.4| 454.4| 495.0| 495.5| 514.1|
|assets | | | | | | |
+------------------------------+-------+-------+-------+-------+-------+-------+
|Cash and cash equivalents | 58.9| 98.4| 123.3| 105.6| 101.7| 94.6|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Total current assets | 532.3| 559.8| 577.7| 600.6| 597.2| 608.7|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Assets classified as held for | -| 4.4| -| -| -| -|
|sale | | | | | | |
+------------------------------+-------+-------+-------+-------+-------+-------+
|Total assets |1 171.8|1 191.5|1 195.3|1 210.6|1 212.1|1 221.2|
+------------------------------+-------+-------+-------+-------+-------+-------+
+------------------------------+-------+-------+-------+-------+-------+-------+
|Total equity | 523.6| 507.2| 518.3| 487.8| 462.0| 452.1|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Non-current loans | 156.8| 158.2| 159.5| 160.6| 161.9| 163.2|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Other non-current liabilities | 58.5| 58.0| 53.9| 48.9| 46.9| 42.5|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Total non-current liabilities | 215.3| 216.2| 213.4| 209.5| 208.8| 205.7|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Trade payables and other | | | | | | |
|current | 404.4| 427.5| 378.3| 390.0| 396.3| 506.1|
|liabilities | | | | | | |
+------------------------------+-------+-------+-------+-------+-------+-------+
|Provisions | 27.9| 36.6| 46.5| 49.3| 54.5| 37.2|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Current loans | 0.6| 0.3| 38.8| 74.0| 90.5| 20.1|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Total current liabilities | 432.9| 464.4| 463.6| 513.3| 541.3| 563.4|
+------------------------------+-------+-------+-------+-------+-------+-------+
|Liabilities classified as held| -| 3.7| -| -| -| -|
|for sale | | | | | | |
+------------------------------+-------+-------+-------+-------+-------+-------+
|Total equity and liabilities |1 171.8|1 191.5|1 195.3|1 210.6|1 212.1|1 221.2|
+------------------------------+-------+-------+-------+-------+-------+-------+
+--------------------------------------+-----+------+------+------+-----+------+
|Cash flow, EUR million | | | | | | |
+--------------------------------------+-----+------+------+------+-----+------+
+--------------------------------------+-----+------+------+------+-----+------+
| | 2010| 2010| 2009| 2009| 2009| 2009|
+--------------------------------------+-----+------+------+------+-----+------+
| | 4-6| 1-3| 10-12| 7-9| 4-6| 1-3|
+--------------------------------------+-----+------+------+------+-----+------+
+--------------------------------------+-----+------+------+------+-----+------+
|Cash flow from operations | | | | | | |
+--------------------------------------+-----+------+------+------+-----+------+
|Net profit | 11.7| 12.0| 25.7| 18.4| 10.0| 1.0|
+--------------------------------------+-----+------+------+------+-----+------+
|Adjustments | 26.8| 30.5| 25.4| 25.9| 15.2| 22.3|
+--------------------------------------+-----+------+------+------+-----+------+
|Change in net working capital | -9.2| -9.9| 24.0| -26.4|-25.8| 28.1|
+--------------------------------------+-----+------+------+------+-----+------+
|Cash generated from operations | 29.3| 32.6| 75.1| 17.9| -0.6| 51.4|
+--------------------------------------+-----+------+------+------+-----+------+
|Net financial expenses paid | -0.8| 1.9| 0.1| 5.0| -1.3| -3.0|
+--------------------------------------+-----+------+------+------+-----+------+
|Income taxes paid | -1.0| -6.6| -3.5| 5.7|-10.2| -6.4|
+--------------------------------------+-----+------+------+------+-----+------+
|Net cash flow from operations | 27.5| 27.9| 71.7| 28.6|-12.1| 42.0|
+--------------------------------------+-----+------+------+------+-----+------+
+--------------------------------------+-----+------+------+------+-----+------+
|Net cash used in investing activities |-28.8| -15.7| -17.9| -8.3| -8.8| -18.2|
|from operations | | | | | | |
+--------------------------------------+-----+------+------+------+-----+------+
+--------------------------------------+-----+------+------+------+-----+------+
|Net cash used in financing activities |-36.8| -40.0| -36.4| -17.8| 27.6| -45.3|
|from operations | | | | | | |
+--------------------------------------+-----+------+------+------+-----+------+
|Change in cash and cash equivalents |-38.1| -27.8| 17.4| 2.5| 6.7| -21.5|
+--------------------------------------+-----+------+------+------+-----+------+
| | | | | | | |
+--------------------------------------+-----+------+------+------+-----+------+
|Cash and cash equivalents at beginning|-98.4|-123.3|-105.6|-101.7|-94.6|-120.2|
|of period | | | | | | |
+--------------------------------------+-----+------+------+------+-----+------+
|Foreign exchange differences | 1.4| -2.9| -0.3| -1.4| -0.4| 4.1|
+--------------------------------------+-----+------+------+------+-----+------+
|Cash and cash equivalents at end of | 58.9| 98.4| 123.3| 105.6|101.7| 94.6|
|period | | | | | | |
+--------------------------------------+-----+------+------+------+-----+------+
| |-38.1| -27.8| 17.4| 2.5| 6.7| -21.5|
+--------------------------------------+-----+------+------+------+-----+------+
QUARTERLY FIGURES BY SEGMENTS
+---------------------------------+----+-----+----+----+----+
|Net sales by country, EUR million| | | | | |
+-----------------+---------------+----+-----+----+----+----+
+-----------------+---------------+----+-----+----+----+----+
| | 2010|2010| 2009|2009|2009|2009|
+-----------------+---------------+----+-----+----+----+----+
| | 4-6| 1-3|10-12| 7-9| 4-6| 1-3|
+-----------------+---------------+----+-----+----+----+----+
|Finland | 228| 222| 233| 199| 230| 227|
+-----------------+---------------+----+-----+----+----+----+
|Sweden | 126| 119| 125| 103| 116| 119|
+-----------------+---------------+----+-----+----+----+----+
|International | 136| 135| 139| 130| 143| 141|
+-----------------+---------------+----+-----+----+----+----+
|Group elimination| -58| -52| -56| -48| -45| -48|
+-----------------+---------------+----+-----+----+----+----+
|Group total | 431| 423| 441| 383| 445| 438|
+-----------------+---------------+----+-----+----+----+----+
Net sales by customer sector, EUR million
+----------------+----+----+-----+----+----+----+
+----------------+----+----+-----+----+----+----+
| |2010|2010| 2009|2009|2009|2009|
+----------------+----+----+-----+----+----+----+
| | 4-6| 1-3|10-12| 7-9| 4-6| 1-3|
+----------------+----+----+-----+----+----+----+
|Telecom | 146| 142| 149| 132| 149| 153|
+----------------+----+----+-----+----+----+----+
|Finance | 90| 88| 89| 87| 94| 89|
+----------------+----+----+-----+----+----+----+
|Industry sectors| 194| 193| 203| 165| 201| 197|
+----------------+----+----+-----+----+----+----+
|Group total | 431| 423| 441| 383| 445| 438|
+----------------+----+----+-----+----+----+----+
+-----------------------------------------------+------+-----+-----+-----+
|Operating profit (EBIT) by country, EUR million| | | | |
+-----------------------+------+----------------+------+-----+-----+-----+
+-----------------------+------+----------------+------+-----+-----+-----+
| | 2010| 2010| 2009| 2009| 2009| 2009|
+-----------------------+------+----------------+------+-----+-----+-----+
| | 4-6| 1-3| 10-12| 7-9| 4-6| 1-3|
+-----------------------+------+----------------+------+-----+-----+-----+
|Finland | 25.9| 22.6| 33.9| 28.1| 25.6| 22.7|
+-----------------------+------+----------------+------+-----+-----+-----+
|Sweden | 7.7| 5.8| 7.9| 4.1|- 6.2|- 8.8|
+-----------------------+------+----------------+------+-----+-----+-----+
|International | 0.3| - 1.4| 2.4| 0.9|- 6.2|- 3.7|
+-----------------------+------+----------------+------+-----+-----+-----+
|Group operations |- 14.4| - 8.2|- 10.5|- 6.8|- 2.8|- 5.3|
+-----------------------+------+----------------+------+-----+-----+-----+
|Operating profit (EBIT)| 19.5| 18.8| 33.7| 26.3| 10.4| 4.9|
+-----------------------+------+----------------+------+-----+-----+-----+
+-------------------------------------+----+-----+----+----+----+
|Operating margin (EBIT) by country, %| | | | | |
+-----------------------+-------------+----+-----+----+----+----+
+-----------------------+-------------+----+-----+----+----+----+
| | 2010|2010| 2009|2009|2009|2009|
+-----------------------+-------------+----+-----+----+----+----+
| | 4-6| 1-3|10-12| 7-9| 4-6| 1-3|
+-----------------------+-------------+----+-----+----+----+----+
|Finland | 11.4|10.2| 14.6|14.1|11.1|10.0|
+-----------------------+-------------+----+-----+----+----+----+
|Sweden | 6.1| 4.9| 6.3| 4.0|-5.3|-7.4|
+-----------------------+-------------+----+-----+----+----+----+
|International | 0.2|-1.0| 1.7| 0.7|-4.3|-2.6|
+-----------------------+-------------+----+-----+----+----+----+
|Operating margin (EBIT)| 4.5| 4.5| 7.7| 6.9| 2.3| 1.1|
+-----------------------+-------------+----+-----+----+----+----+
+--+--------------------------------------+-------------+------+
| |Major shareholders 30 June 2010 | | |
+--+--------------------------------------+-------------+------+
| | | Shares| %|
+--+--------------------------------------+-------------+------+
| 1|Solidium Oy | 7 415 418 | 10,3%|
+--+--------------------------------------+-------------+------+
| 2|Swedbank Robur fonder | 3 702 584| 5,1%|
+--+--------------------------------------+-------------+------+
| 3|Ilmarinen Mutual Pension Insurance Co.| 2 564 367| 3,6%|
+--+--------------------------------------+-------------+------+
| 4|OP-Pohjola Group | 2 545 504| 3,5%|
+--+--------------------------------------+-------------+------+
| 5|Svenska Litteratursällskapet i Finland| 1 667 000| 2,3%|
+--+--------------------------------------+-------------+------+
| 6|Tapiola Pension | 1 530 000| 2,1%|
+--+--------------------------------------+-------------+------+
| 7|Varma Mutual Pension Insurance Co. | 1 249 749| 1,7%|
+--+--------------------------------------+-------------+------+
| 8|The State Pension Fund | 1 090 634| 1,5%|
+--+--------------------------------------+-------------+------+
| 9|Danske funds | 850 078| 1,2%|
+--+--------------------------------------+-------------+------+
|10|SEB Investment Management | 771 473| 1,1%|
+--+--------------------------------------+-------------+------+
| | | 23 386 807| 32,4%|
+--+--------------------------------------+-------------+------+
| |Nominee registered | 36 203 528 | 50,3%|
+--+--------------------------------------+-------------+------+
| |Others | 12 432 838 | 17,3%|
+--+--------------------------------------+-------------+------+
| |Total | 72 023 173 |100,0%|
+--+--------------------------------------+-------------+------+
Based on the ownership records of Euroclear Finland Oy and Euroclear Sweden AB.
Based on the latest information Tieto has (15 March 2010), Cevian Capital´s
holding was 4 969 385 shares which represents 6.9% of the shares and voting
rights.
On 8 April 2010, Goldman Sachs announced that its group holding has fallen below
the 5% threshold.
On 28 May 2010, Solidium announced that its holding in Tieto Corporation has
exceeded the 10.0% threshold.
For further information, please contact:
Hannu Syrjälä, President and CEO, tel. +358 207 2010, hannu.syrjala@tieto.com
Seppo Haapalainen, CFO, tel. +358 2072 63500, +358 400 455587,
seppo.haapalainen@tieto.com
Reeta Kaukiainen, VP, Communications and Investor Relations, tel. +358
2072 68711,
+358 50 522 0924, reeta.kaukiainen@tieto.com
Pasi Hiedanpää, Manager, Investor Relations, tel. +358 2072 68088, +358
50 378 2228, pasi.hiedanpaa@tieto.com
Press conference for analysts and media will be held at Tieto's premises in
Helsinki, address: Aku Korhosen tie 2 6, at 10.00 am EET (9.00 am CET, 8.00 am
UK time). The results will be presented in English by Hannu Syrjälä, President
and CEO. Notification of attendance to sirpa.salo@tieto.com, tel. +358
2072 68714.
The conference will be webcasted and published live on Tieto's website
www.tieto.com and there will be a possibility to present questions online. An
on-demand video will be available after the conference.
Conference call hosted by the management starting at 2.00 pm EET (1.00 pm CET,
12.00 am UK time), will also be available as live audio webcast at
www.tieto.com. Callers may access the conference directly at the following
telephone numbers: US callers +1 212 444 0412, non-US callers +44 20 7806 1953,
no code. Lines are to be reserved ten minutes before the start of conference
call.
An on-demand audiocast of the conference will also be published on Tieto's
website later during the day. A replay will be available until 27 July 2010 in
the following numbers: US callers: +1 347 366 9565, non-US callers: +44 20
7111 1244, access code: 7441122#.
Tieto publishes financial information in English, Finnish and Swedish. All
releases are posted in full on Tieto's website as soon as they are published.
TIETO CORPORATION
DISTRIBUTION
NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
Principal Media
Tieto is an IT service company providing IT, R&D and consulting services. With
approximately 17 000 experts, we are among the leading IT service companies in
Northern Europe and the global leader in selected segments. We specialize in
areas where we have the deepest understanding of our customers' businesses and
needs. Our superior customer centricity and expertise in digital services set us
apart from our competitors.
www.tieto.com
Tieto Corporation
Business ID: 0101138-5
Aku Korhosentie 2−6
PO Box 38
FI-00441 HELSINKI, FINLAND
Tel +358 207 2010
Fax +358 2072 68898
Registered office: Helsinki
E-mail: info@tieto.com
www.tieto.com
[HUG#1432917]
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