2010-02-15 08:00:00 CET
2010-02-15 08:00:04 CET
REGULATED INFORMATION
Proha - Financial Statement Release
PROHA FINANCIAL STATEMENTS (IFRS) JANUARY 1 - DECEMBER 31, 2009
Proha Plc Financial Statements February 15, 2010 at 09.00 a.m.
PROHA FINANCIAL STATEMENTS (IFRS) JANUARY 1 - DECEMBER 31, 2009
Proha's net result negative, operative result positive
SUMMARY (last year's corresponding period in parentheses, unless otherwise
stated)
October - December, 2009
Net sales EUR 15.3 (15.9) million - decrease 3.8%
Dovre's net sales EUR 14.3 (15.0) million - decrease 4.2%
Camako's net sales EUR 0.9 (0.9) million - growth 5.2%
Net result EUR 0.2 (0.4) million - decrease 36,8%
Non-recurring items of the operating result EUR -0.4 (0.0) million
Result for the period EUR -0.3 (0.6) million
Earnings per share EUR -0.00 (0.01)
Financial year January 1 - December 31, 2009
Net sales EUR 60.7 (62.4) million - decrease 2.7%
Dovre's net sales EUR 57.5 (59.3) million - decrease 3.1%
Camako's net sales EUR 3.3 (3.0) million - growth 7.8%
Net result EUR 0.3 (0.4) million - decrease 26.9%
Non-recurring items of the operating result EUR -0.8 million
Result for the financial year EUR -0.7 (-0.1) million
Earnings per share EUR -0.01 (0.00)
KEY RATIOS OCTOBER - DECEMBER, 2009
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | Change, |
| (EUR million) | 2009 | 2008 | % |
--------------------------------------------------------------------------------
| Net sales | 15,3 | 15,9 | -3,8 % |
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| Operating result | 0,2 | 0,4 | -36,8 % |
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| % of net sales | 1,5 % | 2,6 % | |
--------------------------------------------------------------------------------
| Result before taxes | 0,2 | 0,8 | -77,3 % |
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| Result for the period | -0,3 | 0,6 | -148,7 % |
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| Return on equity, % | -8,1 % | 17,6 % | |
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| Return on investment, % | 15,4 % | 28,9 % | |
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| Cash and cash equivalents | 3,8 | 3,1 | 20,5 % |
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| Cash flow from operations | 0,1 | 2,0 | -92,6 % |
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| Debt-equity ratio, % | -2,0 % | -11,2 % | |
--------------------------------------------------------------------------------
| Equity-ratio, % | 46,5 % | 49,0 % | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | | | |
--------------------------------------------------------------------------------
| Basic | -0,00 | 0,01 | -148,7 % |
--------------------------------------------------------------------------------
| Diluted | -0,00 | 0,01 | -148,7 % |
--------------------------------------------------------------------------------
| Equity per share, EUR | 0,22 | 0,21 | 4,8 % |
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KEY RATIOS JANUARY - DECEMBER, 2009
--------------------------------------------------------------------------------
| | 1-12 | 1-12 | Change, |
| (EUR million) | 2009 | 2008 | % |
--------------------------------------------------------------------------------
| Net sales | 60,7 | 62,4 | -2,7 % |
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| Operating result | 0,3 | 0,4 | -26,9 % |
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| % of net sales | 0,4 % | 0,6 % | |
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| Result before taxes | -0,1 | 0,6 | -114,3 % |
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| Result for the period | -0,9 | -0,2 | -299,2 % |
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| Return on equity, % | -5,6 % | -0,8 % | |
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| Return on investment, % | 6,7 % | 7,7 % | |
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| Cash and cash equivalents | 3,8 | 3,1 | 20,5 % |
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| Cash flow from operations | -1,3 | 1,2 | -204,1 % |
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| Debt-equity ratio, % | -2,0 % | -11,2 % | |
--------------------------------------------------------------------------------
| Equity-ratio, % | 46,5 % | 49,0 % | |
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| Earnings per share, EUR | | | |
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| Basic | -0,01 | 0,00 | -298,5 % |
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| Diluted | -0,01 | 0,00 | -298,5 % |
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| Equity per share, EUR | 0,22 | 0,21 | 4,8 % |
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ILKKA TOIVOLA, CEO
The Proha Group's operating result for the fourth quarter was slightly positive
EUR 0.2 million after the non-recurring items. Without the non-recurring items
Proha's operating result was positive EUR 0.6 million.
Our market demand developed well in Q4 and especially Dovre North-America and
international operations were growing. The markets for Dovre's services in
Norway were challenging, and we had to adjust to the market conditions. This
lead to net sales and result decline in Norway. In 2009, Safran was part of the
Dovre division.
Camako's operative result was positive in Q4 totaling EUR 0.1 million. After
one-off product development impairments the net result was EUR 0.0 million.
Datamar Oy and Camako Finland Oy were merged to one company, Camako Oy.
The efficiency measures executed during 2009 have proven to be correct and the
net result is turned around. All units of Proha were operatively positive in Q4.
The Group has, however, had significant one-off expenses from the cost saving
actions in Q4 and the whole year that weakened the result.
New strategies for the Dovre and Camako divisions have been approved. The key
issues are focusing on our core competence and seeking profitable growth. We
have taken the first steps in accordance to our growth strategy by establishing
new companies in Brisbane, Australia and Yoshnoz on Sakhalin Island, Russia.
FUTURE OUTLOOK
The global market conditions have started to stabilize at the end of 2009. The
key countries of the Proha businesses, such as Canada, Norway, Finland, Sweden
and Australia, have a growth expectation for national GNP in 2010. Also the IT
market that is valid for Camako and Safran is expected to grow slightly in most
northern European countries.
The demand in the industry for Dovre's services has been steady all over the
world. Major oil and gas companies have taken a more long-term view on capital
investments and have not cut back as much as many other industries. For some
time now, the oil price has been holding between 70 and 80 USD per barrel, and
that provides a good foundation for continuing investments. However, there are
significant variations between customers and different market areas, so single
markets and single customers still provide a risk for Dovre's business in 2010.
New growing sector for investments has been focusing on Liquid Natural Gas (LNG)
projects, where natural gas is liquefied in low temperatures and put into
tankers in liquid form. This enables gas to be exported to large markets, like
China and Japan, without building major gas pipelines. Dovre has been involved
in these LNG projects and will continue to provide the customers with
world-class expertise on this new technology area.
Based on the market forecasts, we expect Dovre's service business to grow in
2010.
The IT sector in Finland, Sweden, and Norway is returning to a more normal level
of investments. In these key markets for Camako and Safran, software and related
services are expected to experience a modest growth. Camako and Safran are,
therefore, expected to deliver a slight increase in revenue and a positive
operating profit as well.
Proha expects a better operating result and a positive net result for 2010.
The estimate of future outlook is based on the forecasts the Proha Board has
accepted.
NET SALES
October - December, 2009
The Group's net sales in Q4 declined by 3.8% totaling EUR 15.3 (15.9) million.
Dovre division accounted for 93.8% (94.2%) and Camako division for 6.2% (5.6%).
Net sales for Dovre declined by 4.2% totaling EUR 14.3 (15.0) million. Net sales
for Camako grew by 5.2% totaling EUR 0.9 (0.9) million.
January - December, 2009
The Group's net sales declined by 2.7% totaling EUR 60.7 million (62.4) million.
Dovre division accounted for 94.7% (95.1%) and Camako division for 5.3% (4.8%).
Dovre's net sales declined by 3.1% totaling EUR 57.5 (59.3) million. Camako's
net sales increased by 7.8% totaling EUR 3.3 (3.0) million.
Distribution of net sales by business segments (EUR million)
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| | 10-12 | 10-12 | | 1-12 | 1-12 | |
| (EUR million) | 2009 | 2008 | Change | 2009 | 2008 | Change |
| | | | % | | | % |
--------------------------------------------------------------------------------
| Dovre | 14,3 | 15,0 | -4,2 | 57,5 | 59,3 | -3,1 |
--------------------------------------------------------------------------------
| Camako | 0,9 | 0,9 | 5,2 | 3,3 | 3,0 | 7,8 |
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| Other operations | -0,1 | 0,2 | -153,3 | 0,1 | 0,4 | -80,9 |
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| Net sales between | 0,1 | -0,2 | 165,0 | -0,1 | -0,3 | 72,5 |
| segments | | | | | | |
--------------------------------------------------------------------------------
| Group Total | 15,3 | 15,9 | -3,8 | 60,7 | 62,4 | -2,7 |
--------------------------------------------------------------------------------
Distribution of net sales by geographical segments (EUR million)
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| | 10-12 | 10-12 | 1-12 | 1-12 |
| (EUR million) | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| EMEA | 9,0 | 9,6 | 35,1 | 39,8 |
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| AMERICAS | 6,5 | 6,6 | 26,5 | 23,2 |
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| APAC | 0,1 | 0,1 | 0,4 | 0,8 |
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| Net sales between segments | -0,4 | -0,5 | -1,3 | -1,3 |
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| Group Total | 15,3 | 15,9 | 60,7 | 62,4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | 1-12 | 1-12 |
| (% of net sales) | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| EMEA | 59,2 % | 60,5 % | 57,8 % | 63,8 % |
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| AMERICAS | 42,9 % | 41,5 % | 43,7 % | 37,1 % |
--------------------------------------------------------------------------------
| APAC | 0,4 % | 0,8 % | 0,7 % | 1,2 % |
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| Net sales between segments | -2,5 % | -2,8 % | -2,2 % | -2,1 % |
--------------------------------------------------------------------------------
| Group Total | 100,0 % | 100,0 % | 100,0 % | 100,0 % |
--------------------------------------------------------------------------------
Distribution of net sales by revenue type (EUR million and % of net sales)
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| | 10-12 | % | 10-12 | % | 1-12 | % | 1-12 | % |
| | 2009 | | 2008 | | 2009 | | 2008 | |
--------------------------------------------------------------------------------
| Services | 15,0 | 98,0 | 15,5 | 97,5 | 59,5 | 98,0 | 61 | 97,8 |
--------------------------------------------------------------------------------
| One-time | 0,1 | 0,7 | 0,1 | 0,6 | 0,3 | 0,5 | 0,5 | 0,8 |
| license | | | | | | | | |
--------------------------------------------------------------------------------
| Recurring | 0,2 | 1,3 | 0,3 | 1,9 | 0,9 | 1,5 | 0,9 | 1,4 |
| license | | | | | | | | |
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| Total | 15,3 | 100,0 | 15,9 | 100,0 | 60,7 | 100,0 | 62,4 | 100,0 |
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PROFITABILITY
Operating result October - December, 2009
Operating result before non-recurring items was EUR 0.6 (0.4) million and after
non-recurring items was EUR 0.2 (0.4) million. Dovre's operating result was EUR
0.6 (0.6) million. Camako's operating result was EUR 0.0 (0.0) million.
Operating result for other operations was EUR -0.3 (-0.2) million.
Operating result January - December, 2009
Operating result before non-recurring items was EUR 1.0 (1.6) million and after
non-recurring items EUR 0.3 (0.6) million. Dovre's operating result was EUR 1.4
(2.9) million. Camako's operating result was EUR -0.3 (-0.4) million. Operating
result for other operations was EUR -0.9 (-1.8) million.
Distribution of operating result by segment (excluding non-recurring items, EUR
million)
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| | 10-12 | 10-12 | | 1-12 | 1-12 | |
| (EUR million) | 2009 | 2008 | Change % | 2009 | 2008 | Change % |
--------------------------------------------------------------------------------
| Dovre | 0,7 | 0,6 | 26,7 | 2,0 | 2,7 | -26,7 |
--------------------------------------------------------------------------------
| Camako | 0,1 | 0,0 | 492,2 | -0,2 | -0,4 | 47,6 |
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| Other | -0,2 | -0,2 | -29,2 | -0,8 | -0,9 | 19,4 |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Group Total | 0,6 | 0,4 | 59,2 | 1,0 | 1,4 | -25,8 |
--------------------------------------------------------------------------------
Distribution of operating result by segment (including non-recurring items, EUR
million)
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | | 1-12 | 1-12 | |
| (EUR million) | 2009 | 2008 | Change % | 2009 | 2008 | Change % |
--------------------------------------------------------------------------------
| Dovre | 0,6 | 0,6 | 2,9 | 1,4 | 2,6 | -45,6 |
--------------------------------------------------------------------------------
| Camako | 0,0 | 0,0 | -2,7 | -0,3 | -0,4 | 27,9 |
--------------------------------------------------------------------------------
| Other | -0,3 | -0,2 | -86,6 | -0,9 | -1,8 | 53,5 |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Group Total | 0,2 | 0,4 | -36,8 | 0,3 | 0,4 | -26,9 |
--------------------------------------------------------------------------------
Non-recurring items
The net result includes non-recurring items of approximately EUR 0.8 million.
Dovre's net result includes non-recurring items of about EUR 0.5 million and
Camako's net result includes about EUR 0.1 million. The net result for other
operations includes non-recurring items of approximately EUR 0.1 million. The
non-recurring items were caused by streamlining of operations and terminations
of employment. In 2008, the net result included non-recurring items of approx.
EUR 1,0 million, of which Dovre accounted for EUR 50 thousand, Camako for EUR 60
thousand and other operations for EUR 0.9 million.
The net result for Q4 includes non-recurring items of approx. EUR 0.4 million.
Dovre's net result includes non-recurring items of approx. EUR 0.1 million and
Camako's net result includes approx. EUR 0.1 million. The net result for other
operations includes non-recurring items of approx. EUR 0.1 million. The
corresponding Q4 period in 2008 did not include any non-recurring items.
Result October - December, 2009
In October - December, 2009, the Group's result before taxes was EUR 0.2 (0.8)
million and after taxes EUR -0.3 (0.6) million.
In October - December, 2009, the Proha Group's earnings per share was EUR -0.00
(0.01).
Result January - December, 2009
In January - December, 2009, the Group's result before taxes was EUR -0.1 (0.6)
million and after taxes EUR -0.7 (-0.1) million.
In January - December, 2009, the Group's result before non-recurring items was
EUR 0.1 (0.8) million and after non-recurring items EUR -0.7 (-0.1) million.
In January - December, 2009, the Proha Group's earnings per share was EUR -0.01
(-0.00).
The Proha Group's return on investment (ROI) was 6.7% (7.7%).
CASH FLOW, FINANCING AND INVESTMENTS
On December 31, 2009, the Proha Group balance sheet total was EUR 29.9 (26.6)
million.
On December 31, 2009, the cash and cash equivalents for the Proha Group totaled
EUR 3.8 (3.1) million. In addition, the parent company and the subsidiaries have
unused credit limits.
The cash flow from operating activities was EUR -1.3 (1.2) million. The cash
flow from operating activities was decreased by the increase of EUR 1.8 million
in current interest-free receivables and increased by the EUR 0.2 million
increase in current interest-free payables. EUR 1.0 million were paid in taxes.
The cash flow from investing activities was EUR -0.2 (-1.6) million. The gross
investments include acquisitions of subsidiaries EUR 0.2 million, investments of
EUR 0.1 million in tangible and intangible assets, and a decrease of EUR 0.2
million in non-current loan receivables.
The gross investments totaled EUR 0.5 (1.6) million.
The cash flow from financing activities was EUR 2.1 (-1.8) million. New loans
worth of EUR 2.5 million were drawn, and EUR 0.3 million paid back.
The balance sheet goodwill totaled EUR 7.0 (5.9) million on December 31, 2009.
The Group's goodwill is not amortized, but tested for impairment under IAS 36.
No indications of impairment of assets exist.
The equity ratio was 46.5% (49.0%). Gearing was -2.0% (-11.2%). On December 31,
2009, the interest-bearing liabilities amounted to EUR 3.5 (1.7) million,
accounting for 11.7% (6.3%) of the Group's shareholders' equity and liabilities
total. Of the interest-bearing liabilities, EUR 0.6 (1.1) million were
non-current and EUR 2.9 (0.6) million current. The Group's quick ratio was 1.5
(1.5).
RESEARCH AND DEVELOPMENT
In January - December, 2009, the Group's research and development costs were EUR
0.8 (1.5) million, representing 1% (2%) of the Group net sales.
A total of EUR 0.1 (0.2) million of research and development costs were
capitalized during the period. Of the capitalized research and development costs
EUR 0.2 million were amortized and EUR 0.1 entered as impairment for the period.
On December 31, 2009, the Group amortized research and development costs of EUR
0.2 million.
The Group's R&D costs consist of the R&D of Safran software products in the
Dovre division and of the R&D in the Camako division.
In Camako EPM version 4.1, released in the beginning of 2009, the installation
and maintenance of the software were streamlined. In the latest version 4.2,
released at the beginning of 2010, the performance and reporting functionalities
have been significantly enhanced. The rescue services' resource planning and
management product, RescuePlanner, has been further developed together with the
customers.
Safran launched a new version 3.6 of Safran Project software in the third
quarter. New versions (v. 4) of Safran Planner and Safran Planner SQL software
were released in Q4. The upgraded software has new potential for planning and
scheduling of small and mid-sized projects.
The ongoing development work focuses on releasing the first version of Safran
Web Access and developing new features for the upcoming version 3.7 of Safran
Project software.
CHANGES IN THE PROHA GROUP MANAGEMENT
The Proha Board of Directors changed the composition of the management team on
April 27, 2009. The members of the management team were Ilari Koskelo, Sirpa
Haavisto and Otto Søberg. In the same meeting, the Board decided that due to the
company's current size, it no longer requires an executive vice president.
Therefore, Janne Rainvuori no longer acted as the executive vice president and
was not a member of the management team.
On September 18, 2009, the Proha Board appointed Ilkka Toivola as the CEO of the
Group. He started in his new position on November 16, 2009. He moved to his
position from Nokia Siemens Networks, where he has held several international
management positions since 2000.
Ilari Koskelo, the former CEO of Proha Plc, continues in the Proha Board as vice
chairman.
The Group administration of Proha Plc and the Dovre division were merged in
November 2009. The CEO of Proha was appointed as the managing director of Dovre
Group AS. In addition, Dovre's external Board was replaced with a Group's
internal Board in November. The CEO of Proha, Ilkka Toivola, also acts as the
CEO of Dovre Group AS.
Otto Søberg's temporary 18-month contract as the hired managing director of
Dovre Group AS ended on October 9, 2009, and he then left his position.
Arve Jensen was appointed as the manager for the Norwegian operations of Dovre
Group. The CFO of Dovre Group, Are Njåstein, continued in his position. Jensen
and Njåstein from Norway and Dovre North America's manager, Mike Critch, report
to CEO Ilkka Toivola. In addition, the CFO of Proha, Sirpa Haavisto, and the
managing directors of the software and service companies, Safran Software
Solutions AS and Camako Oy, report to Ilkka Toivola.
In the Camako division, the managing director of Camako Oy (formerly Camako
Nordic Oy), and a member of the Proha management team, Timo Saros, left to
pursue other options outside of the Proha Group as of June 30, 2009. Ilari
Koskelo acted as the managing director of Camako Oy until Petri Karlsson was
appointed as the managing director on August 17, 2009.
PERSONNEL
The Group's personnel expenses in 2009 were EUR 55.7 (56.9) million. The
personnel expenses include non-recurring items of approximately EUR 0.3 (0.9)
million.
The personnel expenses of the Dovre division were EUR 52.8 (53.0) million. The
personnel expenses of the Camako division were EUR 2.4 (2.5) million. The
personnel expenses of other operations were EUR 0.5 (1.5) million.
In 2009, the number of personnel averaged 404 (395).
Distribution of personnel by segment (average)
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | | 1-12 | 1-12 | |
| | 2009 | 2008 | Change % | 2009 | 2008 | Change % |
--------------------------------------------------------------------------------
| Dovre | 367 | 353 | 4,0 | 361 | 351 | 2,8 |
--------------------------------------------------------------------------------
| Camako | 36 | 37 | -2,7 | 38 | 36 | 5,6 |
--------------------------------------------------------------------------------
| Other | 4 | 5 | -20,0 | 5 | 6 | -16,7 |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Total | 407 | 395 | 3,0 | 404 | 393 | 2,8 |
--------------------------------------------------------------------------------
On December 31, 2009, Proha employed 408 (391) people worldwide, out of which
367 (350) were employed by the Dovre division, 38 (36) by the Camako division
and 3 (5) by the Group administration.
BUSINESS PERFORMANCE
New strategies for the Dovre and Camako divisions have been approved. The key
issues are focusing on our core competence and seeking profitable growth. We
have taken the first steps in accordance to our growth strategy by opening new
subsidiaries in Brisbane, Australia and Yoshnoz on Sakhalin Island, Russia. In
both cases, we have followed the major customers' needs, and the first customer
projects have already started for these Dovre companies. Especially in
Australia, there is a strong demand for professional project management
services. In addition, our client wants to start a gas project in Papua New
Guinea from Brisbane.
In the international markets, the demand for services in Dovre's field has been
constant. Especially operations in North America and international markets grew
by 22% in 2009. The result of the Dovre operations in Norway was challenged by
the economic decline, and the revenue decreased in Q4.
Camako's net sales and operating profit developed positively in Q4. Sales grew
by 5% and the operative result was positive EUR 0.1 million. A one-off product
development impairment cost of EUR 0.1 million was entered to amortize
development work of old software versions.
Towards the end of Q4, Camako gained such new customers as Kone Corporation,
Tuko Logistics and the City of Stockholm. In addition, Camako's organization was
revised in line with the strategy and the new management team was announced in
December.
Safran's operative result for Q4 was slightly positive. Customer satisfaction
and feedback on the Safran solutions are very positive and form a solid ground
for profitability and growth expectations in the future. In addition, the first
major customer was obtained through our reseller in North America.
Proha has decided to streamline the company structure in 2010. The company's
internal financing and financial management will be developed towards a global
Group structure instead of separate companies. The financial management has
switched to six-month's planning period instead of the 12-month's used before.
This enables the company to react on market changes quicker than before.
SHARES, SHARE CAPITAL, AND AUTHORIZATION TO ISSUE SHARES
Shares and share capital
Proha Plc has one class of shares. Each share entitles the shareholder to one
vote. The Proha Plc shares are listed in the NASDAQ OMX Helsinki Ltd.
On January 1, 2009 and on December 31, 2009, the subscribed capital of Proha Plc
was EUR 15,916,854.20. On January 1, 2009 and on December 31, 2009, the total
number of Proha Plc shares was 61,961,751.
Option rights
On January 1, 2009, a total of 4,333,520 options were outstanding of the option
plans of 2005, 2006 and 2007, entitling to subscription of 4,333,520 shares.
No shares were subscribed for with Proha Plc's options during January -
December, 2009.
In 2009, a total of 222,000 option rights under 2006 plan and a total of 366,000
option rights under 2007 plan were redeemed.
The 2005 option plan expired on April 1, 2009. The expired option rights totaled
1,048,520.
On December 31, a total of 2,697,000 option rights were outstanding as follows:
1,119,000 option rights under 2006 plan (EUR 0.48) and 1,578,000 option rights
under 2007 plan (EUR 0.37). Of these the company has in reserve 222,000 option
rights under 2006 plan and 399,000 option rights under 2007 plan. Each option
right entitles to subscription of one share.
The Authorization of the Board of Directors
The Annual General Meeting (AGM) on April 18, 2007 authorized the Board of
Directors to resolve to issue shares through issuance of shares or special
rights entitling to shares. In accordance with the authorization, the Board can
resolve to issue a maximum of 12,243,734 shares through issuance of shares or
special rights entitling to shares (including option rights) under Chapter 10,
Section 1 of the Companies Act, in one or more issues. The authorization
includes both the issuance of new shares as well as shares held by the Group,
and corresponded to 20 percent of the Group's total number of shares at the date
of the AGM. The authorization is effective until April 17, 2012.
During the period, no new shares were issued based on this authorization. A
total of 11,500,653 shares were remaining of the authorization on December 31,
2009.
TRADING AND MARKET CAPITALIZATION
In January - December, 2009, approximately 23.4 million Proha shares were traded
on the NASDAQ OMX Helsinki Ltd., corresponding to a turnover of approximately
EUR 6.5 million.
From January 1 to December 30, 2009, the lowest quotation was EUR 0.23 and the
highest quotation was EUR 0.36. On December 31, 2009, the closing quotation was
EUR 0.33.
The period-end market capitalization was approximately EUR 20.4 million.
The number of registered shareholders of Proha Plc totaled 3,227 on December 31,
2009.
CORPORATE GOVERNANCE
Decisions made at the Proha Plc's Annual General Meeting
The Annual General Meeting of Proha Plc on March 31, 2009 decided that the
number of board members is four. The following four members were elected to the
board: Ilari Koskelo, Antti Manninen, Leena Mäkelä and Hannu Vaajoensuu. Ernst &
Young Oy, Authorized Public Accountants, continued as the Group's auditor.
The Annual General Meeting amended the article concerning the notice of the
general meeting so that the notice of the general meeting shall be given at the
latest 21 days before the general meeting. It was also decided that the notice
of the general meeting will no longer be published in a newspaper.
The Annual General Meeting decided to decrease the share premium account by its
total amount of EUR 4,780,244.32 and to transfer the amount to the invested
non-restricted equity fund. On September 8, 2009, the National Board of Patents
and Registration of Finland authorized Proha Plc to decrease the share premium
account as decided in the Annual General Meeting on March 31, 2009. After the
decrease, the amount of the share premium account was zero and the share premium
account was closed.
A separate stock exchange bulletin has been issued on the resolutions of the
Annual General Meeting on March 31, 2009.
Decisions of the organizational meeting of Proha Plc's board of directors
The organizational meeting of Proha Plc's Board of Directors on March 31, 2009
elected Antti Manninen as the chairman and Ilari Koskelo as the vice chairman of
the Board.
Corporate Governance
Proha complies with the Finnish Corporate Governance Code, but makes the
following exception to the code:
Recommendation 14: The majority of the Board is not independent of the company.
Of the four Board members, independent of the company and its significant
shareholders are the chairman Antti Manninen and Hannu Vaajoensuu.
The Corporate Governance Statement from 2009 has been composed in accordance
with Recommendation 51 of the new Corporate Governance Code. The Corporate
Governance Statement is issued separately in the Review by Proha Plc Board of
Directors.
Proha's corporate governance principles can be found on the company's website at
www.proha.com.
SHORT-TERM RISKS AND UNCERTAINTIES
The success of the Dovre division is influenced by energy sector markets and
investment level in oil and gas industry. The market pricing and wages of Dovre
deliveries are still under pressure, even though the toughest adaptation phase
has probably been passed. The customers extend their agreements in shorter terms
than normally, which means months instead of a year. The competitive situation
still favors big providers.
Dovre expands its business to new markets and establishes subsidiaries in new
countries. Expanding the business includes both investment and operational
risks.
In Dovre's business operations, a few major clients constitute a significant
share of net sales. With these major clients Dovre has global delivery
agreements. Therefore, Dovre is highly dependent on these major key customers
and the long-term frame agreements signed with them.
Even though the markets are stabilizing to the level of 2009, companies are
still cautious in their investments. This applies to both Camako and Safran. The
forecasts predict the investment level to be steady and possibly grow slightly,
but the financial situation of single customers' varies and this is a risk to
both Camako and Safran. The customers see project management development as a
very important factor in the competitive situation, but they are very cautious
about starting new projects.
EVENTS AFTER THE PERIOD
The employment of Proha Plc's executive vice president Janne Rainvuori ended on
February 1, 2010.
BOARD OF DIRECTORS' PROPOSAL FOR DISTRIBUTION OF PROFITS
The Proha Board of directors proposes that the result for the financial year is
entered in shareholders' equity and no dividend is paid.
Espoo, February 15, 2010
Proha Plc
Board of Directors
The financial statements are audited.
PRESS CONFERENCE
Proha Plc will hold a press conference for the media and financial analysts on
Monday February 15, 2010. The conference will be held at 11.00 a.m. at the
premises of Proha Plc in the address Maapallonkuja 1 A, Espoo.
For additional information, please contact:
PROHA PLC
CEO Ilkka Toivola, Tel. 020 4362 000
ilkka.toivola@proha.com
CFO Sirpa Haavisto, tel. 020 4362 000
sirpa.haavisto@proha.com
DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
The financial statements have been prepared according to the International
Financial Reporting Standards (IFRS). As of January 1, 2009, the Group has
applied the following new and revised standards: IFRS 8 Operating Segments and
IAS 1 Presentation of financial statements. Otherwise, the same accounting
principles have been applied as in the 2008 financial statements. Key indicator
calculations remain unchanged and have been presented in the 2008 financial
statements.
IFRS 8 has not affected the segment information in the notes. IAS 1 has affected
the presentation of the income statement and statement of changes in
shareholders' equity.
The Group's primary segment reporting is based on business segments. Dovre,
Camako and other operations are separate reporting business segments. Other
operations consist mainly of Group administration.
Changes in presentation of income statement
Deviating from the earlier practice, share of results in associates is presented
as a part of operating result. Comparison data has been adjusted accordingly.
GROUP COMPREHENSIVE INCOME STATEMENT
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | Change | 1-12 | 1-12 | Change |
| (EUR thousand) | 2009 | 2008 | % | 2009 | 2008 | % |
--------------------------------------------------------------------------------
| NET SALES | 15 269 | 15 879 | -3,8 | 60 738 | 62 432 | -2,7 |
--------------------------------------------------------------------------------
| Other operating | 163 | 194 | -15,9 | 208 | 399 | -47,8 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Share of results in | 0 | -47 | 100,0 | -100 | -237 | 57,9 |
| associates | | | | | | |
--------------------------------------------------------------------------------
| Material and | -30 | -115 | -73,5 | -156 | -317 | -50,7 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee benefits |-13 623 | -14 270| -4,5 |-55 735 | -56 915 | -2,1 |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -180 | -154 | 17,0 | -650 | -595 | 9,4 |
| amortization | | | | | | |
--------------------------------------------------------------------------------
| Impairment | -118 | | | -118 | | |
--------------------------------------------------------------------------------
| Other operating | -1 248 | -1 119 | 11,5 | -3 924 | -4 408 | -11,0 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| OPERATING RESULT | 232 | 368 | -36,8 | 263 | 359 | 26,9 |
--------------------------------------------------------------------------------
| Financing income | 411 | 758 | -45,7 | 887 | 1 095 | -19,0 |
--------------------------------------------------------------------------------
| Financing expenses | -459 | -311 | 47,4 | -1 240 | -823 | 50,6 |
--------------------------------------------------------------------------------
| RESULT BEFORE TAX | 185 | 814 | -77,3 | -90 | 631 | 114,3 |
--------------------------------------------------------------------------------
| Tax on income from | -455 | -233 | 94,9 | -659 | -744 | -11,4 |
| operations | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR THE | -270 | 581 | -146,5 | -749 | -113 | -564,7 |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Exchange differences | 376 | -1 178 | | 1 593 | -1 693 | |
| on translating | | | | | | |
| foreign operations | | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 376 | -1 178 | | 1 593 | -1 693 | |
| income for the | | | | | | |
| period, net of tax | | | | | | |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE | 106 | -597 | | 844 | -1 806 | |
| INCOME FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ALLOCATION OF RESULT | | | | | | |
| FOR THE PERIOD | | | | | | |
--------------------------------------------------------------------------------
| Result attributable | -272 | 559 | -148,7 | -871 | -218 | -299,2 |
| to equity holders of | | | | | | |
| the parent | | | | | | |
--------------------------------------------------------------------------------
| Result attributable | 2 | 22 | -90,8 | 121 | 105 | 15,1 |
| to minority interest | | | | | | |
--------------------------------------------------------------------------------
| | -270 | 581 | -146,5 | -749 | -113 | -564,7 |
--------------------------------------------------------------------------------
| ALLOCATION OF | | | | | | |
| COMPREHENSIVE RESULT | | | | | | |
| FOR THE PERIOD | | | | | | |
--------------------------------------------------------------------------------
| Result attributable | 104 | -714 | 114,5 | 721 | -1892 | 138,1 |
| to equity holders of | | | | | | |
| the parent | | | | | | |
--------------------------------------------------------------------------------
| Result attributable | 3 | 117 | -97,8 | 123 | 86 | 42,7 |
| to minority interest | | | | | | |
--------------------------------------------------------------------------------
| | 106 | -597 | 117,8 | 844 | -1806 | 146,7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/share EUR | | | | | | |
--------------------------------------------------------------------------------
| Undiluted | -0,00 | 0,01 | -148,7 | -0,01 | 0,00 | -298,5 |
--------------------------------------------------------------------------------
| Diluted | -0,00 | 0,01 | -148,7 | -0,01 | 0,00 | -298,5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive | | | | | | |
| earnings/share EUR | | | | | | |
--------------------------------------------------------------------------------
| Undiluted | 0,00 | -0,01 | 114,5 | 0,01 | -0,03 | 138,1 |
--------------------------------------------------------------------------------
| Diluted | 0,00 | -0,01 | 114,5 | 0,01 | -0,03 | 138,1 |
--------------------------------------------------------------------------------
AVERAGE NUMBER OF SHARES
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | 1-12 | 1-12 |
| | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Undiluted | 61 961 751 | 61 961 751 | 61 961 751 | 61 819 946 |
--------------------------------------------------------------------------------
| Diluted | 61 961 751 | 61 961 751 | 61 961 751 | 61 819 946 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares at the end of the period: | | |
--------------------------------------------------------------------------------
| | 1-12 | 1-12 | | |
| | 2009 | 2008 | | |
--------------------------------------------------------------------------------
| Shares | 61 961 751 | 61 961 751 | | |
--------------------------------------------------------------------------------
GROUP BALANCE SHEET
--------------------------------------------------------------------------------
| | 31.12. | 31.12. | |
| (EUR thousand) | 2009 | 2008 | Change % |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 1 696 | 2 127 | -20,3 |
--------------------------------------------------------------------------------
| Goodwill | 7 022 | 5 857 | 19,9 |
--------------------------------------------------------------------------------
| Tangible assets | 198 | 303 | -34,8 |
--------------------------------------------------------------------------------
| Investments in associates | 933 | 1 342 | -30,5 |
--------------------------------------------------------------------------------
| Trade and other receivables | 260 | 242 | 7,5 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 211 | 122 | 73,5 |
--------------------------------------------------------------------------------
| Deferred tax asset | 398 | 213 | 86,5 |
--------------------------------------------------------------------------------
| Non-current assets | 10 718 | 10 206 | 5,0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 15 250 | 13 269 | 14,9 |
--------------------------------------------------------------------------------
| Tax receivable, income tax | 185 | 14 | 1225,4 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 3 758 | 3 118 | 20,5 |
--------------------------------------------------------------------------------
| Current assets | 19 193 | 16 401 | 17,0 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 29 911 | 26 607 | 12,4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | | |
--------------------------------------------------------------------------------
| Share capital | 15 917 | 15 917 | 0,0 |
--------------------------------------------------------------------------------
| Share premium account | 0 | 4 379 | -100,0 |
--------------------------------------------------------------------------------
| Fair value reserve and other reserves | 5 193 | 422 | 1129,4 |
--------------------------------------------------------------------------------
| Translation differences | -140 | -1 154 | -87,8 |
--------------------------------------------------------------------------------
| Retained earnings | -7 449 | -6 808 | -9,4 |
--------------------------------------------------------------------------------
| Equity attributable to equity holders | 13 520 | 12 756 | 6,0 |
| of the parent | | | |
--------------------------------------------------------------------------------
| Minority interest | 195 | 72 | 170,4 |
--------------------------------------------------------------------------------
| Shareholders' equity | 13 714 | 12 828 | 6,9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 669 | 570 | 17,3 |
--------------------------------------------------------------------------------
| Long-term liabilities,
interest-bearing | 608 | 1 139 | -46,6 |
--------------------------------------------------------------------------------
| Long-term liabilities, interest-free | 153 | 150 | 2,1 |
--------------------------------------------------------------------------------
| Liabilities from defined benefit plan | 1 290 | 640 | 101,5 |
--------------------------------------------------------------------------------
| Non-current liabilities | 2 720 | 2 499 | 8,8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Short-term interest-bearing
liabilities | 2 878 | 547 | 426,4 |
--------------------------------------------------------------------------------
| Trade payables and other liabilities | 10 181 | 10 307 | -1,2 |
--------------------------------------------------------------------------------
| Tax liability, income tax | 317 | 406 | -21,8 |
--------------------------------------------------------------------------------
| Current provisions | 100 | 21 | |
--------------------------------------------------------------------------------
| Current liabilities | 13 477 | 11 280 | 19,5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 29 911 | 26 607 | 12,4 |
--------------------------------------------------------------------------------
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
a) Share capital
b) Share premium account
c) Unrestricted equity fund
d) Fair value reserve and other reserves
e) Translation differences
f) Retained earnings
g) Equity attributable to equity holders of the parent
h) Minority interest
i) Shareholders' equity total
--------------------------------------------------------------------------------
| | a) | b) | c) | d) | e) |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | 15 917 | 4 379 | 329 | 0 | 187 |
| 1.1.2008 | | | | | |
--------------------------------------------------------------------------------
| Comprehensive income | 0 | 0 | -60 | 0 | -1 341 |
--------------------------------------------------------------------------------
| Share based payments | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Transfers between items | 0 | 0 | -42 | 0 | 0 |
--------------------------------------------------------------------------------
| Acquisitions | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Disposals | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Share issues | 0 | 0 | 0 | 196 | 0 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | 15 917 | 4 379 | 227 | 196 | -1 154 |
| 31.12.2008 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | a) | b) | c) | d) | e) |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | 15 917 | 4 379 | 227 | 196 | -1 154 |
| 1.1.2009 | | | | | |
--------------------------------------------------------------------------------
| Comprehensive income | 0 | 0 | -59 | 0 | 1 014 |
--------------------------------------------------------------------------------
| Share based payments | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Decrease of share premium | 0 | -4 780 | 0 | 4 780 | 0 |
| account | | | | | |
--------------------------------------------------------------------------------
| Transfers between items | 0 | 401 | 49 | 0 | 0 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | 15 917 | 0 | 217 | 4 976 | -140 |
| 31.12.2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | f) | g) | h) | i) |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY 1.1.2008 | -6 470 | 14 342 | 115 | 14 457 |
--------------------------------------------------------------------------------
| Comprehensive income | -490 | -1 892 | 86 | -1 806 |
--------------------------------------------------------------------------------
| Share based payments | 110 | 110 | 0 | 110 |
--------------------------------------------------------------------------------
| Transfers between items | 42 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Acquisitions | 0 | 0 | -37 | -37 |
--------------------------------------------------------------------------------
| Disposals | 0 | 0 | -92 | -92 |
--------------------------------------------------------------------------------
| Share issues | 0 | 196 | 0 | 196 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | -6 808 | 12 756 | 72 | 12 828 |
| 31.12.2008 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | f) | g) | h) | i) |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY 1.1.2009 | -6 808 | 12 756 | 72 | 12 828 |
--------------------------------------------------------------------------------
| Comprehensive income | -234 | 721 | 123 | 844 |
--------------------------------------------------------------------------------
| Share based payments | 42 | 42 | 0 | 42 |
--------------------------------------------------------------------------------
| Decrease of share premium | 0 | 0 | 0 | 0 |
| account | | | | |
--------------------------------------------------------------------------------
| Transfers between items | -450 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | -7 449 | 13 520 | 195 | 13 714 |
| 31.12.2009 | | | | |
--------------------------------------------------------------------------------
GROUP CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| | 1-12 | 1-12 |
| (EUR thousand) | 2009 | 2008 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | |
--------------------------------------------------------------------------------
| | Operating result | 263 | 359 |
--------------------------------------------------------------------------------
| | Adjustments | | |
--------------------------------------------------------------------------------
| | | Depreciation and amortization | 769 | 595 |
--------------------------------------------------------------------------------
| | | Employee benefits expense | 507 | 85 |
--------------------------------------------------------------------------------
| | | Other adjustments | 100 | 213 |
--------------------------------------------------------------------------------
| | Adjustments, total | 1 375 | 893 |
--------------------------------------------------------------------------------
| | Change in net working capital | | |
--------------------------------------------------------------------------------
| | | Increase (-) / decrease (+) in | -1 750 | 1 688 |
| | | current receivables | | |
--------------------------------------------------------------------------------
| | | Increase (+) / decrease (-) in | 219 | -719 |
| | | current liabilities | | |
--------------------------------------------------------------------------------
| | Change in net working capital, total | -1 531 | 969 |
--------------------------------------------------------------------------------
| | Interest paid | -281 | -268 |
--------------------------------------------------------------------------------
| | Interest received | 39 | 231 |
--------------------------------------------------------------------------------
| | Other financial expenses paid | -267 | -47 |
--------------------------------------------------------------------------------
| | Other financial income received | 55 | 25 |
--------------------------------------------------------------------------------
| | Income taxes paid | -975 | -912 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | -1 322 | 1 249 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | |
--------------------------------------------------------------------------------
| | Acquisition of subsidiaries net cash acquired | -179 | -708 |
| | *) | | |
--------------------------------------------------------------------------------
| | Proceeds from disposal of subsidiaries net | 0 | -4 |
| | cash disposed of**) | | |
--------------------------------------------------------------------------------
| | Investments in tangible and intangible assets | -147 | -380 |
--------------------------------------------------------------------------------
| | Proceeds from associates | 0 | 19 |
--------------------------------------------------------------------------------
| | Investments in other investments | -75 | 0 |
--------------------------------------------------------------------------------
| | Increase (-) / decrease (+) in loan | 214 | -576 |
| | receivables | | |
--------------------------------------------------------------------------------
| | Dividends received | 6 | 3 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | -180 | -1 646 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | |
--------------------------------------------------------------------------------
| | Proceeds from short-term loans | 2 467 | 879 |
--------------------------------------------------------------------------------
| | Repayments of short-term loans | -326 | -2 548 |
--------------------------------------------------------------------------------
| | Proceeds from long-term loans | 0 | 228 |
--------------------------------------------------------------------------------
| | Repayments of long-term loans | 0 | -352 |
--------------------------------------------------------------------------------
| | Paid Dividends | 0 | -41 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | 2 142 | -1 834 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | 640 | -2 231 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning of the period | 3 118 | 5 349 |
--------------------------------------------------------------------------------
| Foreign exchange rate adjustment | 50 | -434 |
--------------------------------------------------------------------------------
| Cash and cash equivalents of subsidiaries acquired | 0 | 131 |
--------------------------------------------------------------------------------
| Cash and cash equivalents of subsidiaries divested | 0 | -49 |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | 590 | -1 880 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of the period | 3 758 | 3 118 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Portion of acquisition cost of subsidiaries | 1-12 | 1-12 |
| less cash at acquisition: | 2009 | 2008 |
--------------------------------------------------------------------------------
| | Camako Data AB | 0 | -145 |
--------------------------------------------------------------------------------
| | Camako Finland Oy (previously Datatron Oy) | -6 | -236 |
--------------------------------------------------------------------------------
| | Datamar Oy | 0 | -30 |
--------------------------------------------------------------------------------
| | Fabcon sub-group | 0 | -57 |
--------------------------------------------------------------------------------
| | Project Resource Solutions Inc. | -172 | -239 |
--------------------------------------------------------------------------------
| | Total | -179 | -708 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| **) Portion of gain on disposal of subsidiaries | 1-12 | 1-12 |
| less cash at disposal | 2009 | 2008 |
--------------------------------------------------------------------------------
| | Futura One Oy | 0 | -4 |
--------------------------------------------------------------------------------
| | Total | | 0 | -4 |
--------------------------------------------------------------------------------
GROUP INCOME STATEMENT QUARTERLY - Financial year January 1 - December 31, 2009
--------------------------------------------------------------------------------
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
| (EUR | 1-3 | 1-3 | 4-6 | 4-6 | 7-9 | 7-9 | 10-12 | 10-12 |
| thousand) | | | | | | | | |
--------------------------------------------------------------------------------
| NET SALES |15 183|15 253 |14 986 | 16 423 |15 300|14 878 |15 269 |15 879 |
--------------------------------------------------------------------------------
| Other | 46 | 32 | 46 | 39 | -47 | 134 | 163 | 194 |
| operating | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Share of | -51 | -105 | -49 | -43 | 0 | -43 | 0 | -47 |
| result in | | | | | | | | |
| associates | | | | | | | | |
--------------------------------------------------------------------------------
| Materials and | -58 | -35 | 0 | -117 | -68 | -50 | -30 | -115 |
| services | | | | | | | | |
--------------------------------------------------------------------------------
| Employee |-14126| -13933|-14019 |-15403 |-13966 |-13308 |-13623 | -14270|
| benefits | | | | | | | | |
| expense | | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -146 | -144 | -181 | -130 | -160 | -166 | -298 | -154 |
| and | | | | | | | | |
| amortization | | | | | | | | |
--------------------------------------------------------------------------------
| Other |-1 040| -1 075| -1 032| -1 293| -604 | -921 |-1 248 |-1 119 |
| operating | | | | | | | | |
| expenses | | | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | -192 | -9 | -249 | -524 | 455 | 524 | 232 | 368 |
| RESULT | | | | | | | | |
--------------------------------------------------------------------------------
| % | -1,3 | -0,1 | -1,7 | -3,2 | 3,0 | 3,5 | 1,5 | 2,3 |
--------------------------------------------------------------------------------
| Financing | 366 | 45 | 51 | 29 | 59 | 263 | 411 | 758 |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Financing | -195 | -249 | -195 | -160 | -391 | -103 | -459 | -311 |
| expenses | | | | | | | | |
--------------------------------------------------------------------------------
| RESULT BEFORE | -22 | -213 | -394 | -655 | 123 | 685 | 185 | 814 |
| TAX | | | | | | | | |
--------------------------------------------------------------------------------
| % | -0,1 | -1,4 | -2,6 | -4,0 | 0,8 | 4,6 | 1,2 | 5,1 |
--------------------------------------------------------------------------------
| Tax on income | -21 | -178 | -71 | -155 | -108 | -178 | -455 | -233 |
| from | | | | | | | | |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR | -42 | -391 | -464 | -810 | 15 | 507 | -270 | 581 |
| THE PERIOD | | | | | | | | |
--------------------------------------------------------------------------------
| % | -0,3 | -2,6 | -3,1 | -4,9 | 0,1 | 3,4 | -1,8 | 3,7 |
--------------------------------------------------------------------------------
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| (EUR thousand) | 31.12. | 31.12. |
| | 2009 | 2008 |
--------------------------------------------------------------------------------
| COLLATERAL FOR OWN COMMITENTS | | |
--------------------------------------------------------------------------------
| Debts secured by corporate mortgages | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | 2951 | 1 170 |
--------------------------------------------------------------------------------
| Book value of shares of Dovre International AS | 7186 | 4 704 |
| and Dovre Fabcon AS and current assets of Dovre | | |
| Fabcon AS given as security | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by assets | | |
--------------------------------------------------------------------------------
| Loans and checking account credit lines | 0 | 269 |
--------------------------------------------------------------------------------
| Book value of trade receivables and fixed assets | 650 | 542 |
| given as security | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by shares | | |
--------------------------------------------------------------------------------
| Loans and checking account credit lines | 515 | 0 |
--------------------------------------------------------------------------------
| Book value of pledged shares | 933 | 511 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Future minimum lease payments under | | |
| non-cancellable operating leases | | |
--------------------------------------------------------------------------------
| Not later than one year | 316 | 218 |
--------------------------------------------------------------------------------
| Later than one year and not later than five years | 1 096 | 557 |
--------------------------------------------------------------------------------
| Total | 1 412 | 776 |
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------
| Investments in associates | 2009 | 2008 |
--------------------------------------------------------------------------------
| Carrying value, opening balance | 1 342 | 1 277 |
--------------------------------------------------------------------------------
| Additions | 0 | 470 |
--------------------------------------------------------------------------------
| Disposals | -310 | -72 |
--------------------------------------------------------------------------------
| Share of profit / loss in associates | -100 | -237 |
--------------------------------------------------------------------------------
| Translation differences | 0 | -95 |
--------------------------------------------------------------------------------
| At the end of the financial year | 933 | 1 342 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transactions with other related parties | 2009 | 2008 |
--------------------------------------------------------------------------------
| Sales | 0 | 14 |
--------------------------------------------------------------------------------
| Purchases | | |
--------------------------------------------------------------------------------
| Consulting fees and rents*) | 149 | 432 |
--------------------------------------------------------------------------------
| Consulting fees and reimbursements**) | 335 | 152 |
--------------------------------------------------------------------------------
| Consulting fees and reimbursements***) | 20 | 0 |
--------------------------------------------------------------------------------
| Other | 0 | 3 |
--------------------------------------------------------------------------------
| Total | 504 | 587 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Open balances with the related parties | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Trade payables | 9 | 58 |
--------------------------------------------------------------------------------
| *) Consulting fees and rents have been paid to the companies controlled by |
| Birger Flaa, a member of the board in Proha Plc (resigned June 16, 2009) |
--------------------------------------------------------------------------------
| **) Consulting fees and reimbursements have been paid to a company |
| controlled by Otto Søberg, the CEO of Dovre Group AS (resigned October 9, |
| 2009) |
--------------------------------------------------------------------------------
| ***) Consulting fees and reimbursements regarding reorganization of the |
| Norwegian operations have been paid to Havacment Oy, a company controlled by |
| Hannu Vaajoensuu, and who is also a member of the board in Proha Plc. |
--------------------------------------------------------------------------------
GROUP KEY FINANCIAL PERFORMANCE INDICATORS
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | 1-12 | 1-12 |
| (EUR million) | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| Net sales | 15,3 | 15,9 | 60,7 | 62,4 |
--------------------------------------------------------------------------------
| Operating result | 0,2 | 0,4 | 0,3 | 0,4 |
--------------------------------------------------------------------------------
| % of Net sales | 1,5 % | 2,6 % | 0,4 % | 0,6 % |
--------------------------------------------------------------------------------
| Result before taxes | 0,2 | 0,8 | -0,1 | 0,6 |
--------------------------------------------------------------------------------
| % of Net sales | 1,2 % | 5,1 % | -0,1 % | 1,0 % |
--------------------------------------------------------------------------------
| Result for the period | -0,3 | 0,6 | -0,9 | -0,2 |
--------------------------------------------------------------------------------
| % of Net sales | -1,8 % | 3,5 % | -1,2 % | -0,2 % |
--------------------------------------------------------------------------------
| Return on equity, % | -8,1 % | 17,6 % | -5,6 % | -0,8 % |
--------------------------------------------------------------------------------
| Return on investment, % | 15,4 % | 28,9 % | 6,7 % | 7,7 % |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 3,5 | 1,7 | 3,5 | 1,7 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 3,8 | 3,1 | 3,8 | 3,1 |
--------------------------------------------------------------------------------
| Gearing, % | -2,0 % | -11,2 % | -2,0 % | -11,2 % |
--------------------------------------------------------------------------------
| Equity-ratio, % | 46,5 % | 49,0 % | 46,5 % | 49,0 % |
--------------------------------------------------------------------------------
| Balance sheet total | 29,9 | 26,6 | 29,9 | 26,6 |
--------------------------------------------------------------------------------
| Gross investments | 0,0 | 0,6 | 0,5 | 1,6 |
--------------------------------------------------------------------------------
| % of Net sales | 0,0 % | 4,0 % | 0,9 % | 2,5 % |
--------------------------------------------------------------------------------
| R & D costs | 0,3 | 0,5 | 0,8 | 1,5 |
--------------------------------------------------------------------------------
| % of Net sales | 2,0 % | 3,1 % | 1,3 % | 2,4 % |
--------------------------------------------------------------------------------
| Personnel average for the | 407 | 395 | 404 | 393 |
| period | | | | |
--------------------------------------------------------------------------------
| Personnel average at the end | 408 | 391 | 408 | 391 |
| of the period | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | | | | |
--------------------------------------------------------------------------------
| Basic | -0,00 | 0,01 | -0,01 | 0,00 |
--------------------------------------------------------------------------------
| Diluted | -0,00 | 0,01 | -0,01 | 0,00 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 0,22 | 0,21 | 0,22 | 0,21 |
--------------------------------------------------------------------------------
LARGEST SHAREHOLDERS AS OF DECEMBER 31, 2009
--------------------------------------------------------------------------------
| Name | Number of | % of all shares |
| | shares | and voting |
| | | rights |
--------------------------------------------------------------------------------
| Oy Etra Invest Ab *) | 13 000 000 | 21,0 % |
--------------------------------------------------------------------------------
| Etola Erkki Olavi *) | 3 000 000 | 4,8 % |
--------------------------------------------------------------------------------
| Koskelo Ilari **) | 2 962 590 | 4,8 % |
--------------------------------------------------------------------------------
| Mäkelä Pekka | 1 982 375 | 3,2 % |
--------------------------------------------------------------------------------
| Navdata OY **) | 1 300 000 | 2,1 % |
--------------------------------------------------------------------------------
| Siik Rauni Marjut | 1 050 000 | 1,7 % |
--------------------------------------------------------------------------------
| Thominvest Oy | 1 043 500 | 1,7 % |
--------------------------------------------------------------------------------
| Hinkka Petri Juhani | 889 500 | 1,4 % |
--------------------------------------------------------------------------------
| Virkki Risto Anton | 715 000 | 1,2 % |
--------------------------------------------------------------------------------
| Ruokostenpohja Ismo Eero Voitto | 673 950 | 1,1 % |
--------------------------------------------------------------------------------
| Siik Seppo Sakari | 661 000 | 1,1 % |
--------------------------------------------------------------------------------
| Hinkka Invest Oy | 583 390 | 0,9 % |
--------------------------------------------------------------------------------
| Paasi Kari | 550 000 | 0,9 % |
--------------------------------------------------------------------------------
| Jokinen Reino Väinämö | 530 000 | 0,9 % |
--------------------------------------------------------------------------------
| Svenska Handelsbanken Ab | 513 000 | 0,8 % |
--------------------------------------------------------------------------------
| Pere Pekka | 465 942 | 0,8 % |
--------------------------------------------------------------------------------
| Kefura Ab | 425 000 | 0,7 % |
--------------------------------------------------------------------------------
| Eficor Oyj | 419 350 | 0,7 % |
--------------------------------------------------------------------------------
| Olsson Vesa Ensio | 400 000 | 0,6 % |
--------------------------------------------------------------------------------
| Saikko Risto Olavi | 395 065 | 0,6 % |
--------------------------------------------------------------------------------
*) Oy Etra Invest Ab is a controlling interest company of Erkki Etola.
**) Navdata Oy is a controlling interest company of Ilari Koskelo.
Hannu Vaajoensuu's family members living in the same household with him own
directly and through Havacment Oy, a controlling interest company of Hannu
Vaajoensuu, a total of 710,000 Proha Plc shares. Antti Manninen owns directly
and through Amlax Oy, a controlling interest company of Antti Manninen, a total
of 505,000 Proha Plc shares.
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