2013-08-13 08:00:02 CEST
2013-08-13 08:00:07 CEST
REGULATED INFORMATION
Digia Oyj - Interim report (Q1 and Q3)
DIGIA'S SECOND QUARTER 2013: A SIGNIFICANT RISE IN NET SALES AND OPERATING PROFIT
Helsinki, 2013-08-13 08:00 CEST (GLOBE NEWSWIRE) -- DIGIA PLC INTERIM REPORT 13
August 2013, 09:00 A.M.
DIGIA'S SECOND QUARTER 2013: A SIGNIFICANT RISE IN NET SALES AND OPERATING
PROFIT
SUMMARY
January-June
- Consolidated net sales: EUR 51.5 (50.6) million, up 1.9 per cent
- Consolidated operating profit: EUR 1.5 million (1-6/2012: EUR 2.7 before
extraordinary items and EUR 2.1 million after extraordinary items)
- Profitability (EBIT%): 2.8 per cent (1-6/2012: 5.3 per cent before
extraordinary items and 4.1 per cent after extraordinary items)
- Product business accounted for 42.6 (29.9) per cent
- Earnings per share: EUR 0.02 (1-6/2012: EUR 0.08 before extraordinary items
and EUR 0.05 after extraordinary items)
April-June
- Consolidated net sales: EUR 28.0 (24.5) million, up 14.4 per cent
- Consolidated operating profit: EUR 1.9 million (Q2/2012: EUR 1.3 before
extraordinary items and EUR 0.7 million after extraordinary items)
- Profitability (EBIT%): 6.9 per cent (Q2/2012: 5.1 per cent before
extraordinary items and 2.8 per cent after extraordinary items)
- Product business accounted for 46.9 (33.1) per cent
- Earnings per share: EUR 0.04 (Q2/2012: EUR 0.04 before extraordinary items
and EUR 0.01 after extraordinary items)
The company's net sales grew slightly during the review period, and showed
major year-on-year improvement in the second quarter. Positive net sales
development was primarily attributed to the increased net sales in Qt business
and the EUR 2.4 million low-margin maintenance deal concluded in the second
quarter for a third-party software product. However, the previous year's
comparison figures included EUR 3.4 million worth of net sales from the mobile
contract engineering operations, which the company no longer has as the
business was discontinued at the end of 2012.
Investments in international business strained the business cost structure,
especially at the beginning of the review period, explaining the decrease in
operating profit from the same period a year earlier. Nevertheless, performance
improved towards the year-end and both operating profit and profitability
showed a clear improvement in the second quarter compared with last year.
The Qt business performed well during the period, with net sales showing marked
growth from the same period a year earlier. Demand and bid volumes were at a
healthy level. Positive development continued in the large global customer
base, which offered new business opportunities.
The company expects net sales from the Qt business to continue growing, thereby
maintaining healthy operational profitability. However, net sales growth in the
second half of 2013 is expected to be more moderate than in the same period
last year. This is because Digia concluded a business transaction with Nokia in
the third quarter last year, which contributed to exceptionally active licence
sales and had a tremendous impact - EUR 3.8 million - on the quarter's net
sales.
Digia expects its overall net sales in 2013 to remain at the previous year's
level or to grow slightly. Profitability is expected to show a positive
development towards the end of the financial period.
GROUP KEY FIGURES AND RATIOS
4-6/20 4-6/20 Change 1-6/20 1-6/20 Change 2012
13 12 , % 13 12 , %
--------------------------------------------------------------------------------
Net sales 28,011 24,493 14.4% 51,523 50,558 1.9% 100,448
--------------------------------------------------------------------------------
Operating profit before 1,931 1,256 53.8% 1,458 2,674 -45.5% 8,196
extraordinary items
--------------------------------------------------------------------------------
- % of net sales 6.9% 5.1% 2.8% 5.3% 8.2%
--------------------------------------------------------------------------------
EBIT 1,931 676 185.5% 1,458 2,095 -30.4% 6,884
--------------------------------------------------------------------------------
- % of net sales 6.9% 2.8% 2.8% 4.1% 6.9%
--------------------------------------------------------------------------------
Net profit 1,347 280 381.4% 875 1,077 -18.8% 4,024
--------------------------------------------------------------------------------
- % of net sales 4.8% 1.1% 1.7% 2.1% 4.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Return on equity,% 16.0% 2.9% 2.9% 5.5% 9.8%
--------------------------------------------------------------------------------
Return on capital 14.7% 5.1% 5.8% 7.4% 11.3%
invested, %
--------------------------------------------------------------------------------
Interest-bearing 19,383 18,407 5.3% 19,383 18,407 5.3% 19,849
liabilities
--------------------------------------------------------------------------------
Cash and cash 6,948 8,375 -17.0% 6,948 8,375 -17.0% 8,283 equivalents
--------------------------------------------------------------------------------
Net gearing 30.3% 25.5% 30.3% 25.5% 27.5%
--------------------------------------------------------------------------------
Equity ratio, % 49.9% 50.9% 49.9% 50.9% 52.6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, 0.04 0.01 0.02 0.05 0.19
EUR, undiluted
--------------------------------------------------------------------------------
Earnings per share, 0.04 0.01 0.02 0.05 0.19
EUR, diluted
--------------------------------------------------------------------------------
MARKETS AND DIGIA'S BUSINESS OPERATIONS
Caution arising from the global economic situation occasionally lengthened
customers' decision-making processes and delayed the start of new projects.
Furthermore, continuing cost pressures reflected on procurement decisions and
demand, particularly in the Solutions and Services business.
The Integration and Site Optimization business developed favourably and even
exceeded expectations thanks to new customer relationships and existing key
accounts.
Demand for ERP systems and operational systems was healthy during the period,
although there were marked differences between different sectors. At the same
time, however, customers continued to exercise caution in their purchasing
behaviour, and sales cycles were still long. Order and bid volumes remained at
a healthy level.
The Qt business performed well during the period, with net sales showing marked
growth from the same period a year earlier. Demand and bid volumes were at a
healthy level. Positive development continued in the large global customer
base, which offered new business opportunities. Several long-term licence
agreements were signed during the period, with the five-year agreement worth
EUR 3.0 million signed in the second quarter providing a particular growth
driver. The agreement increased net sales in the review period and in the
second quarter by EUR 1.3 million. Business development has been positive in
all main markets, particularly in the United States and China.
The low profitability of the Qt business, especially at the beginning of the
period, could be expected as the acquisition made in Q3 2012 strained the cost
structure of the business. However, profitability improved as expected during
the course of the review period, and was excellent in the second quarter.
Business has been strongly focused on licence sales, which explains why product
business was able to exceed its 75% target level in net sales. Product business
grew faster than the consulting services business. The renewal rate for
expiring maintenance agreements was also very high.
During the period, Digia proceeded with previously reported plans related to Qt
product development and operational focus areas. The Qt 5.1 product version
released during the period will enable application development for the popular
Android and iOS operating systems. New Qt releases have been well received in
the market. Business development was another major focus area. In response to
active demand, the sales organisations in the United States, Germany and China
have been reorganised and strengthened. In June, Digia organised a major event
for software developers in Beijing. The event was very popular, reflecting
favourable market conditions, and received plenty of media coverage in the
local technology magazines. Digia has also opened a Qt sales office in
Shanghai.
In Digia's Russian unit, business operations focused on providing analytics
solutions for local customers within the retail value chain. The unit failed to
reach its net sales and profitability targets for the period. Besides offering
services locally, the Russian unit also supports Qt sales and Finnish
operations by providing near shore services, particularly within ERP system
solutions.
NET SALES
Digia's consolidated net sales for the period were EUR 51.5 (50.6) million,
showing an increase of 1.9 per cent on the same period a year earlier.
The positive net sales development can be attributed particularly to the net
sales growth generated by the Qt business. In addition, the EUR 2.4 million
low-margin maintenance deal for a third-party software product concluded in the
second quarter boosted net sales. However, the previous year's comparison
figures include EUR 3.4 million worth of net sales from the mobile contract
engineering operations, which the company no longer has as the business was
discontinued at the end of 2012.
During the reporting period, the product business accounted for EUR 21.9 (15.1)
million or 42.6 (29.9) per cent of consolidated net sales.
International operations accounted for EUR 10.8 (10.6) million or 20.9 (21.0)
per cent of consolidated net sales. During the reporting period, the Qt
business accounted for EUR 9.7 (7.0) million of consolidated net sales.
Digia's consolidated net sales for the second quarter were EUR 28.0 (24.5)
million, up 14.4 per cent on the same period last year.
In the second quarter, product business accounted for EUR 13.1 (8.1) million of
consolidated net sales, or 46.9 (33.1) per cent.
International operations accounted for EUR 6.4 (5.4) million of consolidated
net sales in the second quarter, or 22.8 (22.2) per cent. The Qt business
accounted for EUR 5.9 (3.7) million of consolidated net sales in the second
quarter.
PROFIT PERFORMANCE AND PROFITABILITY
Digia's consolidated operating profit in the period was EUR 1.5 million
(1-6/2012 EUR 2.7 million before extraordinary items), representing a
year-on-year decrease of 45.5 per cent. Profitability (EBIT %) was 2.8 (5.3)
per cent. A year earlier, operating profit after extraordinary items was EUR
2.1 million and profitability (EBIT%) was 4.1 per cent.
Digia's consolidated second-quarter operating profit was EUR 1.9 million
(Q2/2012 EUR 1.3 million before extraordinary items); an increase of 53.8 per
cent from the same time last year. Profitability (EBIT %) was 6.9 (5.1) per
cent. In Q2 of 2012, operating profit after extraordinary items was EUR 0.7
million and profitability (EBIT%) was 2.8 per cent.
Investments in international business strained the business cost structure,
especially at the beginning of the review period.
Consolidated earnings before tax for the period totalled EUR 1.2 (1.5) million,
and net profit was EUR 0.9 (1.1) million. Consolidated earnings before tax for
the second quarter amounted to EUR 1.9 (0.4) million, and net profit after
taxes totalled EUR 1.3 (0.3) million.
Consolidated earnings per share were EUR 0.02 (1-6/2012: EUR 0.08 before
extraordinary items and EUR 0.05 after extraordinary items). Consolidated
earnings per share in the second quarter were EUR 0.04 (1-6/2012: EUR 0.04
before extraordinary items and EUR 0.01 after extraordinary items).
The Group's net financial expenses for the reporting period were EUR 0.3 (0.6)
million and for the second quarter EUR 0.0 (0.3) million.
FINANCIAL POSITION AND EXPENDITURE
At the end of the reporting period, the Digia Group's consolidated balance
sheet total stood at EUR 95.2 million (12/2012: EUR 92.4 million) and the
equity ratio was 49.9 (12/2012: 52.6) per cent. Net gearing was 30.3 per cent
(12/2012: 27.5 cent). Cash and cash equivalents at the end of the period
totalled EUR 6.9 (12/2012: 8.3) million.
Interest-bearing liabilities amounted to EUR 19.4 (12/2012: 19.8) million at
the period end. These consisted of EUR 18.5 million in loans from financial
institutions and EUR 0.9 million in financial leasing liabilities.
The Group's cash flow from operations for the period was positive by EUR 0.9
(6.5) million, cash flow from investments was negative by EUR 0.1 (1.2)
million, and cash flow from financing was negative by EUR 2.1 (5.1) million.
Cash flow from finance was negatively affected by the payment of dividends
totalling EUR 2.1 million in the reporting period.
The Group has made no material investments in fixed assets during the review
period (1-6/2012: EUR 0.3 million).
Return on investment (ROI) for the period was 5.8 (7.4) per cent, and return on
equity (ROE) was 2.9 (5.5) per cent.
The Group carries out quarterly impairment testing of goodwill and intangible
assets with an indefinite useful life. The table below shows the distribution
of goodwill and values subject to testing at the end of the reporting period:
EUR Specified Amortisations during Goodwi Other Total value
1,000 intangible the reporting period ll items subject to
assets testing
--------------------------------------------------------------------------------
Group 9,075 745 51,105 6,930 67,110
total
--------------------------------------------------------------------------------
Present values were calculated for the forecast period based on the following
assumptions: Net sales and operating profit for the first two quarters of the
forecast period according to the confirmed figures for the latest two quarters,
and for the following two quarters according to budget. After this, annual
growth in net sales of 3.0 per cent and in operating profit of 10.0 per cent,
and a pre-tax discount rate of 9.4 per cent. Cash flows after the forecast
period were estimated by means of cash-flow extrapolation, applying the
assumptions given above.
According to a completed sensitivity analysis, the goodwill requires either net
sales to remain at the current level with profitability of 5.6 per cent, or a
3.0 per cent growth in net sales with profitability of 3.1 per cent. The
management sees no risk of goodwill impairment.
PERSONNEL, MANAGEMENT AND ADMINISTRATION
At the end of the period, the total number of Group personnel was 936,
representing a decrease of 46 employees or 4.7 per cent since the end of 2012
(982). During the reporting period the number of employees averaged 941, a
decrease of 84 employees or 8.2 per cent from the 2012 average (1,025).
Employees by function at the end of the period
Business units 95%
----------------------------------
Administration and management 5%
----------------------------------
As of the end of the period, 177 (12/2012: 195) employees were working abroad.
The Digia Plc Annual General Meeting of 12 March 2013 re-elected Päivi
Hokkanen, Robert Ingman, Kari Karvinen, Pertti Kyttälä, Seppo Ruotsalainen,
Leena Saarinen and Tommi Uhari as members of the Board. At the organisation
meeting of the Board, Pertti Kyttälä was elected Chairman of the Board and
Robert Ingman Vice Chairman.
Juha Varelius has been Digia Plc's President and CEO since 1 January 2008.
Ernst & Young Oy, authorised public accountants, are the Group's auditors, with
Authorised Public Accountant Heikki Ilkka as the principal auditor.
RISKS AND UNCERTAINTIES
The company's short-term business risks and uncertainties were described in the
2012 Financial Statements. These are unchanged.
Risks and their management are described on the company's website at
www.digia.com.
FUTURE PROSPECTS
The company is focusing heavily on paving the way for growth. Besides organic
growth, the company will actively pursue opportunities to make carefully
considered business acquisitions that support its strategy.
The company expects the IT market in Finland to remain at roughly the previous
year's level in 2013.
Efforts will continue to develop the company's customer understanding and sales
and service portfolio, to ensure that it can offer increasingly competitive
services and solutions for boosting its customers' business efficiency.
The company expects demand for its ERP systems, operational systems and
integration services to remain good, although increased caution on the customer
side and lengthening sales cycles may have an effect on future order intake.
Customers' cost pressures and the resulting prudence are expected to affect the
demand for customer-specific solutions and services, particularly where major
projects are concerned.
Strategy for the Russian business will be specified in more detail in the
second half of 2013. The Chinese unit will focus on Qt licence sales and
supporting service.
Net sales from the Qt business are expected to continue growing, thereby
maintaining healthy operational profitability. However, net sales growth in the
second half of 2013 is expected to be more moderate than in the same period
last year. This is because Digia concluded a business transaction with Nokia in
the third quarter last year, which contributed to exceptionally active licence
sales and had a tremendous impact - EUR 3.8 million - on the quarter's net
sales.
Digia will continue to make determined investments in its Qt business and
technology development in the second half. Efforts will also be made to build
up the company sales network, particularly in Asia. Digia plans to release new
products supporting the Qt business during the second half. Bid volume is good
considering the time and the overall market conditions. Digia expects the
increase in demand seen in the major customer markets to continue. In these
markets, contract turnaround times are very long, typically around 6-18 months,
which can cause significant fluctuation in quarterly net sales and particularly
profitability.
Digia expects its overall net sales in 2013 to remain on the previous year's
level or to grow slightly. Profitability is expected to show a positive
development towards the end of the financial period.
OTHER EVENTS DURING THE REVIEW PERIOD
Digia Plc's Annual General Meeting (AGM) was held on 12 March 2013. The AGM
adopted the financial statements for 2012, released the Board members and the
CEO from liability, determined Board emoluments, resolved to keep the number of
Board members at seven (7), and elected the company's Board of Directors for a
new term.
With regard to profit distribution for 2012, the AGM approved the Board's
proposal to pay a dividend of EUR 0.10 per share to all shareholders listed in
the shareholder register maintained by Euroclear Finland Ltd on the
reconciliation date of 15 March 2013. The dividend payment date was 22 March
2013.
The AGM granted the following authorisations to the Board:
Authorisation of the Board of Directors to decide on buying back own shares
and/or accepting them as collateral
The AGM authorised the Board to decide on the buyback and/or acceptance as
collateral of not more than 2,000,000 shares in the company. This buyback can
only be executed by means of the company's unrestricted equity. The Board shall
decide on how these shares are to be bought. Own shares may be bought back in
disproportion to the holdings of the shareholders. The authorisation also
includes acquisition of shares through public trading organised by NASDAQ OMX
Helsinki Oy in accordance with the rules and instructions of NASDAQ OMX
Helsinki and Euroclear Finland Ltd, or through offers made to shareholders.
Shares may be acquired in order to improve the company's capital structure, to
fund acquisitions or other business transactions, for offering share-based
incentive schemes, to sell on, or to be annulled. The shares must be acquired
at the market price in public trading. This authorisation supersedes that
granted by the AGM of 13 March 2012 and is valid for 18 months, i.e. until 12
September 2014.
Authorising the Board of Directors to decide on a share issue and granting of
special rights
The AGM authorised the Board to decide on an ordinary or bonus issue of shares
and the granting of special rights (as defined in Section 1, Chapter 10 of the
Limited Liability Companies Act) in one or more instalments, as follows: The
issue may total, at a maximum, 4,000,000 shares. The authorisation applies both
to new shares and to treasury shares held by the company. By virtue of the
authorisation, the Board has the right to decide on share issues and the
granting of special rights, in deviation from the pre-emptive subscription
rights of the shareholders (a directed issue). The authorisation may be used to
fund or complete acquisitions or other business transactions, for offering
share-based incentive schemes, to develop the company's capital structure, or
for other purposes. The Board was authorised to decide on all terms related to
the share issue or special rights, including the subscription price, its
payment in cash or (partly or wholly) in capital contributed in kind or its
being written off against the subscriber's receivables, and its recognition in
the company's balance sheet. This authorisation supersedes that granted by the
AGM of 13 March 2012 and is valid for 18 months, i.e. until 12 September 2014.
Based on the authorisation received, the Board decided on 12 March 2013 to make
a directed share issue of 33,326 to the company's management, in accordance
with Section 4 of Chapter 9 of the Limited Liability Companies Act, as part of
the payments related to the share-based incentive scheme for 2012.
SHARE CAPITAL AND SHARES
On 30 June 2013, the number of Digia Plc shares totalled 20,875,645.
At the end of the period, according to Finnish Central Securities Depository
Ltd, Digia had 5,377 shareholders.
The 10 biggest shareholders were:
Shareholder Shares and votes
---------------------------------------------------------------
Ingman Group Oy Ab 19.3%
---------------------------------------------------------------
Jyrki Hallikainen 10.2%
---------------------------------------------------------------
Ilmarinen Mutual Pension Insurance Company 9.1%
---------------------------------------------------------------
Kari Karvinen 6.3%
---------------------------------------------------------------
Matti Savolainen 6.1%
---------------------------------------------------------------
NASDAQ OMXBS/Skandinaviska Enskilda Banken AB 3.9%
---------------------------------------------------------------
Varma Mutual Pension Insurance Company 3.6%
---------------------------------------------------------------
Nordea Bank Finland Plc (nominee-registered) 2.3%
---------------------------------------------------------------
Etola Oy 1.0%
---------------------------------------------------------------
Juha Varelius 0.9%
---------------------------------------------------------------
Distribution of holdings by number of shares held on 30 June 2013
Number of shares Shareholders Shares and votes
-----------------------------------------------------
1 - 100 22.4% 0.4%
-----------------------------------------------------
101 - 1,000 59.1% 6.9%
-----------------------------------------------------
1,001 - 10,000 16.9% 11.6%
-----------------------------------------------------
10,001 - 100,000 1.1% 9.2%
-----------------------------------------------------
100,001 - 1,000,000 0.4% 21.0%
-----------------------------------------------------
1,000,001 - 4,000,000 0.1% 51.0%
-----------------------------------------------------
Shareholding by sector on 30 June 2013
Shareholders Shares
--------------------------------------------------------------------
Non-financial corporations 4.2% 23.7%
--------------------------------------------------------------------
Financial and insurance corporations 0.2% 1.8%
--------------------------------------------------------------------
General government 0.1% 12.8%
--------------------------------------------------------------------
Not-for-profit institutions serving households 0.2% 0.4%
--------------------------------------------------------------------
Households 94.8% 53.6%
--------------------------------------------------------------------
Foreign holding 0.5% 7.7%
--------------------------------------------------------------------
The weighted average number of shares during the reporting period, adjusted for
share issues, was 20,779,281. The number of outstanding shares was 20,818,273
in total at the end of the review period.
The company held a total of 57,372 treasury shares at the end of the reporting
period. The accounting counter value of these treasury shares is EUR 0.10 per
share. The company held about 0.3 per cent of the capital stock as of 30 June
2013.
REPORTED SHARE PERFORMANCE ON THE HELSINKI STOCK EXCHANGE
Digia Plc shares are listed on the Nordic Exchange under ‘Information
Technology IT Services'. The company's short name is DIG1V. The lowest reported
share quotation was EUR 2.65 and the highest was EUR 3.40. The share officially
closed at EUR 3.00 on the last trading day. The trade-weighted average was EUR
3.02. The Group's market capitalisation totalled EUR 62,626,935 at the end of
the period.
The company received the following flagging notifications during the reporting
period:
- Ilmarinen Mutual Pension Insurance Company announced on 22 February 2013 that
its holding in the company had risen above the 5% flagging threshold, to 9.12%
of all shares and votes in the company.
- Pekka Päiviö Sivonen announced on 25 February 2013 that his holding in the
company had fallen below the 5% flagging threshold, to 0.85% of the company's
shares and votes.
STOCK OPTION SCHEMES
Digia Plc had no outstanding options.
Helsinki, 13 August 2013
Digia Plc
Board of Directors
COMMUNICATIONS
Digia will hold a briefing on its Interim Report for analysts on Tuesday 13
August 2013 at 11 am, at WTC Sodexo's Marski cabinet, at World Trade Center,
Aleksanterinkatu 17, 00100 Helsinki, Finland. All are welcome.
FURTHER INFORMATION
Juha Varelius, President and CEO, Mobile: +358 400 855,849, E-mail:
juha.varelius@digia.com
The Interim Report and presentation thereof will be available at the company's
website at www.digia.com in the Investors section, from 11 am.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
ABBREVIATED FINANCIAL STATEMENTS AND ATTACHMENTS
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes In Shareholders' Equity
Notes to the Accounts
The interim report has been prepared in compliance with IFRS and the IAS 34
standard.
This interim report is based on unaudited figures.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
EUR 1,000 4-6/2013 4-6/201 Change 1-6/201 1-6/201 Change 2012
2 , % 3 2 , %
--------------------------------------------------------------------------------
NET SALES 28,010.6 24,493. 14.4% 51,523. 50,557. 1.9% 100,448.
4 5 8 2
--------------------------------------------------------------------------------
Other operating 441.0 251.6 75.3% 732.7 453.8 61.5% 1,090.4
income
--------------------------------------------------------------------------------
Materials and -4,772.7 -2,184. 118.4% -7,084. -4,729. 49.8% -9,194.4
services 9 5 2
--------------------------------------------------------------------------------
Depreciation, -775.0 -697.5 11.1% -1,506. -1,345. 12.0% -3,318.6
amortisation 6 5
and impairment
--------------------------------------------------------------------------------
Other operating -20,972.8 -21,186 -1.0% -42,206 -42,842 -1.5% -82,141.
expenses .2 .8 .0 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EBIT 1,931.0 676.4 185.5% 1,458.2 2,094.9 -30.4% 6,884.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial -4.3 -289.1 -98.5% -271.7 -636.8 -57.3% -1,280.9
expenses (net)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings before 1,926.8 387.3 397.5% 1,186.5 1,458.1 -18.6% 5,603.3
tax
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -580.2 -107.6 439.4% -311.6 -380.7 -18.1% -1,579.0
--------------------------------------------------------------------------------
NET PROFIT 1,346.5 279.7 381.4% 874.9 1,077.4 -18.8% 4,024.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other
comprehensive
income:
--------------------------------------------------------------------------------
Items which may
be reclassified
subsequently to
profit or loss:
--------------------------------------------------------------------------------
Exchange -317.7 192.3 -201.3 317.4 345.4
differences on
translation of
foreign
operations
--------------------------------------------------------------------------------
TOTAL 1,028.8 472.0 118.0% 673.5 1,394.8 -51.7% 4,369.7
COMPREHENSIVE
INCOME
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of
net profit:
--------------------------------------------------------------------------------
Parent-company 1,346.5 279.7 381.4% 874.9 1,077.4 -18.8% 4,024.3
shareholders
--------------------------------------------------------------------------------
Minority 0.0 0.0 0.0 0.0 0.0
interest
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of
total
comprehensive
income:
--------------------------------------------------------------------------------
Parent-company 1,028.8 472.0 118.0% 673.5 1,394.8 -51.7% 4,369.7
shareholders
--------------------------------------------------------------------------------
Minority 0.0 0.0 0.0 0.0 0.0
interest
----------------------------------------------------------------------
----------------------------------------------------------------------
Earnings per 0.04 0.01 0.02 0.05 0.19
share, EUR
----------------------------------------------------------------------
Earnings per 0.04 0.01 0.02 0.05 0.19
share
(diluted), EUR
----------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, EUR 1,000
Assets 30 June 31 December Change,
2013 2012 %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Intangible assets 60,475.3 61,265.0 -1.3%
--------------------------------------------------------------------------------
Tangible assets 1,529.8 2,152.3 -28.9%
--------------------------------------------------------------------------------
Financial assets 627.0 627.0 0.0%
--------------------------------------------------------------------------------
Inventories 1.2 25.3 -95.3%
--------------------------------------------------------------------------------
Long-term receivables 69.5 69.5 0.0%
--------------------------------------------------------------------------------
Deferred tax assets 430.1 535.0 -19.6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total non-current assets 63,132.9 64,674.0 -2.4%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Current receivables 25,099.2 19,418.5 29.3%
--------------------------------------------------------------------------------
Available-for-sale financial assets 321.3 318.7 0.8%
--------------------------------------------------------------------------------
Cash and cash equivalents 6,626.4 7,964.5 -16.8%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total current assets 32,046.9 27,701.7 15.7%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 95,179.8 92,375.7 3.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity and liabilities 30 June 31 December Change,
2013 2012 %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share capital 2,087.6 2,087.6 0.0%
--------------------------------------------------------------------------------
Rights issue 0.0 0.0
--------------------------------------------------------------------------------
Issue premium fund 7,899.5 7,899.5 0.0%
--------------------------------------------------------------------------------
Other reserves 5,203.8 5,203.8 0.0%
--------------------------------------------------------------------------------
Unrestricted invested shareholders' 33,447.8 33,447.8 0.0%
equity
--------------------------------------------------------------------------------
Translation difference 352.5 553.8 -36.4%
--------------------------------------------------------------------------------
Retained earnings -8,845.9 -11,153.7 -20.7%
--------------------------------------------------------------------------------
Net profit 874.9 4,024.3 -78.3%
--------------------------------------------------------------------------------
Equity attributable to parent-company 41,020.2 42,063.1 -2.5%
shareholders
--------------------------------------------------------------------------------
Minority interest 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total shareholders' equity 41,020.2 42,063.1 -2.5%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities
--------------------------------------------------------------------------------
Long-term interest-bearing liabilities 9,767.3 13,026.6 -25.0%
--------------------------------------------------------------------------------
Received long-term advances 4,312.9 4,192.7 2.9%
--------------------------------------------------------------------------------
Other long-term liabilities 0.0 0.0
--------------------------------------------------------------------------------
Deferred tax liabilities 696.7 639.4 9.0%
--------------------------------------------------------------------------------
Total long-term liabilities 14,776.9 17,858.7 -17.3%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-term interest-bearing liabilities 9,615.4 6,822.5 40.9%
--------------------------------------------------------------------------------
Other short-term liabilities 29,767.3 25,631.4 16.1%
--------------------------------------------------------------------------------
Total short-term liabilities 39,382.7 32,453.9 21.3%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total liabilities 54,159.6 50,312.6 7.6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity and liabilities 95,179.8 92,375.7 3.0%
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
1/1/2013-30/6/ 1/1/2012-30/6/ 1/1/2013-31/12
2013 2012 /2013
--------------------------------------------------------------------------------
Cash flow from operations:
--------------------------------------------------------------------------------
Net profit 875 1,077 4,024
--------------------------------------------------------------------------------
Adjustments to net profit -297 3,830 8,176
--------------------------------------------------------------------------------
Change in working capital 18 1,226 8,072
--------------------------------------------------------------------------------
Interest paid -222 -358 -728
--------------------------------------------------------------------------------
Interest income 0 2 7
--------------------------------------------------------------------------------
Taxes paid 496 713 395
--------------------------------------------------------------------------------
Net cash flow from operations 871 6,490 19,946
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from investments:
--------------------------------------------------------------------------------
Purchases of tangible and -124 -1,163 -16,210
intangible assets
--------------------------------------------------------------------------------
Cash flow from investments -124 -1,163 -16,210
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from financing:
--------------------------------------------------------------------------------
Proceeds from share issue 0 0 0
--------------------------------------------------------------------------------
Acquisition of own shares 0 0 0
--------------------------------------------------------------------------------
Repayment of current loans -3,000 -3,044 -5,544
--------------------------------------------------------------------------------
Repayments of non-current loans 0 0 0
--------------------------------------------------------------------------------
Withdrawals of current loans 3,000 0 500
--------------------------------------------------------------------------------
Withdrawals of non-current loans 0 0 3,500
--------------------------------------------------------------------------------
Dividends paid and other profit -2,082 -2,078 -2,078
distribution
--------------------------------------------------------------------------------
Cash flow from financing -2,082 -5,123 -3,623
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in liquid assets -1,336 205 113
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liquid assets at beginning of 8,283 8,170 8,170
period
--------------------------------------------------------------------------------
Change in fair value
--------------------------------------------------------------------------------
Change in liquid assets -1,336 205 113
--------------------------------------------------------------------------------
Liquid assets at end of period 6,948 8,374 8,283
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, EUR 1,000 a b c d e f g h
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY, 1 2,088 0 7,899 35,525 5,204 208 -11,172 39,753
January 2012
--------------------------------------------------------------------------------
Net profit 1,077 1,077
--------------------------------------------------------------------------------
Other comprehensive 317 317
income
--------------------------------------------------------------------------------
Repayment of capital -2,077 -2,077
--------------------------------------------------------------------------------
Share-based payments 219 219
recognised against
equity
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY, 30 2,088 0 7,899 33,448 5,204 526 -9,875 39,289
June 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
a b c d e f g h
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY, 1 2,088 0 7,899 33,448 5,204 554 -7,129 42,063
January 2013
--------------------------------------------------------------------------------
Net profit 875 875
--------------------------------------------------------------------------------
Other comprehensive -201 -201
income
--------------------------------------------------------------------------------
Distribution of dividends -2,082 -2,082
--------------------------------------------------------------------------------
Share-based payments 365 365
recognised against
equity
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY, 30 2,088 0 7,899 33,448 5,204 353 -7,971 41,020
June 2013
--------------------------------------------------------------------------------
a = share capital
b = rights issue
c = share premium
d = unrestricted invested shareholders' equity
e = other reserves
f = currency translation differences
g = retained earnings
h = total shareholders' equity
NOTES TO THE ACCOUNTS
Accounting principles
The interim report has been drafted in line with IFRS. Otherwise, the the same
accounting principles have been applied as in the 2012 financial statements.
The accounting principles and formulae for the calculation of key figures and
ratios are unchanged and are presented in the 2012 financial statements.
Seasonal nature of business
The Group's business is affected by the number of workdays each month, as well
as by holiday seasons.
Dividends paid
Dividends paid during the reporting period totalled EUR 2,081,827.30.
Related-party transactions
Digia Group's related parties include the CEO and the members of the Board of
Directors and Group Management Team. Digia Group had no significant
transactions with related parties during the reporting period.
Consolidated income statement by quarter
EUR 1,000 4-6/2013 1-3/2013 10-12/201 7-9/2012 4-6/2012
2
--------------------------------------------------------------------------------
Net sales 28,010.6 23,512.9 25,451.2 24,439.2 24,493.4
--------------------------------------------------------------------------------
Other operating income 441.0 291.7 380.2 256.4 251.6
--------------------------------------------------------------------------------
Materials and services -4,772.7 -2,311.8 -2,502.1 -1,963.1 -2,184.9
--------------------------------------------------------------------------------
Depreciation, -775.0 -731.5 -886.3 -1,086.8 -697.5
amortisation and
impairment
--------------------------------------------------------------------------------
Other operating expenses -20,972.8 -21,234.0 -22,198.5 -17,100.8 -21,186.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EBIT 1,931.0 -472.8 244.4 4,544.9 676.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial expenses (net) -4.3 -267.5 -265.2 -378.9 -289.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings before tax 1,926.8 -740.2 -20.8 4,166.0 387.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -580.2 268.6 -103.9 -1,094.4 -107.6
--------------------------------------------------------------------------------
Net profit 1,346.5 -471.7 -124.7 3,071.6 279.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Allocation:
--------------------------------------------------------------------------------
Parent-company 1,346.5 -471.7 -124.7 3,071.6 279.7
shareholders
--------------------------------------------------------------------------------
Minority interest 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.04 -0.02 -0.01 0.15 0.01
--------------------------------------------------------------------------------
Earnings per share 0.04 -0.02 -0.01 0.15 0.01
(diluted), EUR
--------------------------------------------------------------------------------
Group key figures and ratios
EUR 1,000 1-6/2013 1-6/2012 2012
--------------------------------------------------------------------------------
Extent of business:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 51,523 50,558 100,448
--------------------------------------------------------------------------------
- change from previous year 1.9% -23.1% -17.6%
--------------------------------------------------------------------------------
Average capital invested 61,158 59,660 61,768
--------------------------------------------------------------------------------
Personnel at period end 936 997 982
--------------------------------------------------------------------------------
Average number of personnel 941 1,045 1,025
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profitability:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit before extraordinary items and 1,458 2,674 8,196
impairment
--------------------------------------------------------------------------------
- % of net sales 2.8% 5.3% 8.2%
--------------------------------------------------------------------------------
EBIT 1,458 2,095 6,884
--------------------------------------------------------------------------------
- % of net sales 2.8% 4.1% 6.9%
--------------------------------------------------------------------------------
Earnings before tax 1,187 1,458 5,603
--------------------------------------------------------------------------------
- % of net sales 2.3% 2.9% 5.6%
--------------------------------------------------------------------------------
Net profit 875 1,077 4,024
--------------------------------------------------------------------------------
% of net sales 1.7% 2.1% 4.0%
--------------------------------------------------------------------------------
Return on equity, % 2.9% 5.5% 9.8%
--------------------------------------------------------------------------------
Return on investment, % 5.8% 7.4% 11.3%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financing and financial standing:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Interest-bearing liabilities 19,383 18,407 19,849
--------------------------------------------------------------------------------
Short-term investments & cash and bank 6,948 8,375 8,283
receivables
--------------------------------------------------------------------------------
Net gearing 30.3% 25.5% 27.5%
--------------------------------------------------------------------------------
Equity ratio 49.9% 50.9% 52.6%
--------------------------------------------------------------------------------
Net cash flow from operations 871 6,490 19,946
--------------------------------------------------------------------------------
Earnings per share, undiluted (EUR) 0.02 0.05 0.19
--------------------------------------------------------------------------------
Earnings per share, diluted (EUR) 0.02 0.05 0.19
--------------------------------------------------------------------------------
Equity/share, EUR 1.96 1.88 2.01
--------------------------------------------------------------------------------
Lowest share trading price, EUR 2.65 2.28 2.28
--------------------------------------------------------------------------------
Highest share trading price, EUR 3.40 3.30 3.30
--------------------------------------------------------------------------------
Average share price, EUR 3.02 2.92 2.82
--------------------------------------------------------------------------------
Market capitalisation 62,627 49,058 54,694
--------------------------------------------------------------------------------
Formulae for key figures and ratios are presented in the 2012 financial
statements. These remained unchanged during the reporting period.
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