2009-05-06 08:00:00 CEST
2009-05-06 08:02:50 CEST
REGULATED INFORMATION
Tekla - Interim report (Q1 and Q3)
Tekla Corporation's Interim Report January 1 - March 31, 2009: Tekla's first quarter satisfactory considering the circumstances
Tekla Corporation Interim report 6.5.2009 at 9:00 a.m.
Tekla Corporation's Interim Report January 1 - March 31, 2009:
Tekla's first quarter satisfactory considering the circumstances
Net sales of Tekla Group for January-March 2009 totaled 12.19 (14.86)
million euros, decreasing by approximately 18%. The operating result
was 1.24 (3.93) million euros, 10.2% (26.5%) of net sales. Earnings
per share were 0.05 (0.13) euros.
Ari Kohonen, President and CEO, comments on the reporting period:
- Net sales for the first quarter of 2009 fell considerably short of
the corresponding quarter the previous year, which, on the other
hand, was an outstanding quarter. The operating result also decreased
clearly. The operating result accounted for only 10% of net sales,
which can be considered satisfactory under these market conditions.
- Net sales decreased particularly in license sales in our main
business area, Building & Construction, nearly halving compared to
the corresponding quarter the previous year. However, a growth in
maintenance sales was a positive thing. This indicates that customers
are willing to pay for their key tools.
- License sales were not at a good level in any market area. The best
results were achieved in the Middle East. With regard to individual
countries, the trends were favorable in Germany and Saudi Arabia. The
greatest absolute drop was seen in North America, where no signs of a
revival of demand have been seen so far.
- The Infra & Energy business area performed well during the first
quarter, and its net sales increased by approximately 25%. Successful
maintenance sales and product projects contributed to this, for
instance.
- The growth in the number of personnel (seven persons) was moderate
during the first quarter. The additions were made in the customer
interface. In the first quarter total costs were at the previous
year's level.
- All in all, we are not satisfied with our financial performance
during the quarter, but Tekla has the resources to survive the
recession. The company will be in good shape when the economy begins
to recover in time.
As regards the year as a whole, the Board estimates that net sales
will be approximately 50 million euros. The operating result will be
clearly lower in 2009 than in 2008. Costs and measures to ensure
profitability are being continuously monitored.
- - -
Tekla will organize an information meeting (in Finnish) for analysts
and media at WTC Helsinki (meeting room 1), on May 6, 2009, starting
at noon.
- - -
Tekla is an international software product company whose model-based
software solutions make customers' core processes more effective in
building and construction, energy distribution, infrastructure
management and water supply. Tekla has customers in approximately 90
countries. Tekla Group's net sales for 2008 were nearly 60 million
euros and operating result approximately 14 million euros.
International operations account for approximately 80% of net sales.
Tekla Group currently employs 470 persons, of whom 40 percent work
outside Finland. Tekla was established in 1966, making it one of the
longest operating software companies in Finland. www.tekla.com
TEKLA CORPORATION'S INTERIM REPORT JANUARY 1 - MARCH 31, 2009
NET SALES AND PROFITABILITY
* Net sales of Tekla Group for January-March 2009 were 12.19 million
euros (14.86 million euros in January-March 2008).
* Net sales decreased by 18.0%.
* Operating result was 1.24 (3.93) million euros.
* Operating result percentage was 10.2 (26.5).
* Earnings per share were 0.05 (0.13) euros.
* Return on investment was 22.1 (58.6) percent.
* Return on equity was 14.9 (42.5) percent.
FINANCIAL POSITION
* Cash flow from operating activities totaled 8.12 (5.79) million
euros.
* Liquid assets amounted to 28.42 (35.60; including dividend of 11.26
million euros) million euros on March 31, 2009. The assets have been
invested in money market instruments with very low risk. On December
31, 2008, liquid assets amounted to 26.30 million euros.
* Equity ratio was 54.7 (42.7) percent.
* Interest-bearing debts were 0.12 (0.12) million euros.
* Net effects of changes in exchange rates on net sales and operating
result were small.
OTHER KEY FIGURES
* International operations accounted for 79.4% (84.7%) of net sales.
* Personnel averaged 459 (404) for January - March.
* At the end of March, the number of personnel including part-time
staff was 471 (422).
* At year's end, the number of personnel including part-time staff
was 464 (400).
* Gross investments in property, plant and equipment were 0.67 (0.27)
million euros.
* Equity per share was 1.15 (1.02) euros.
* On the last trading day of March, trading closed at 3.79 (9.71)
euros.
BUSINESS AREAS
NET SALES BY BUSINESS AREA
Q1/ Q1/ Change 1-12/
Million euros 2009 2008 2008
Building & Construction 8.88 12.21 -3.33 46.07
Infra & Energy 3.33 2.67 0.66 12.95
Net sales between segments -0.02 -0.02 0.00 -0.12
Total 12.19 14.86 -2.67 58.90
OPERATING RESULT BY BUSINESS AREA
Q1/ Q1/ Change 1-12/
Million euros 2009 2008 2008
Building & Construction 0.92 4.10 -3.18 12.13
Infra & Energy 0.32 -0.05 0.37 1.97
Others 0.00 -0.12 0.12 0.00
Total 1.24 3.93 -2.69 14.10
Building & Construction
Tekla's Building & Construction business area (B&C) develops and
markets the Tekla Structures software product for
information-model-based design of steel and concrete structures as
well as the management of fabrication and construction.
Strong fluctuations in demand are possible in license-based sales.
Particularly from the fall onward, the development of the building
industry has been negative in all of Tekla's key market areas.
Uncertainty of financing has added to the problems, and this is
particularly seen in new larger projects. The general economic
situation affects customers' investments, making their
decision-making times longer and postponing the start-up of projects
into the future. The market has decreased even more than predicted.
It seems that pent-up demand is piling up in the market, but there
have not been any signs of a revival yet.
Despite the building industry's challenging situation, Tekla's market
position remained unchanged. Tekla's position as a supplier of 3D
modeling software is strong in all markets and the numbers of users
are on the increase. Customers in the building industry are seeking
tools that make their operations more efficient, which is what
Tekla's products are. Information modeling is strengthening its
foothold in structural design and other stages of the building
process. The benefits of information modeling are seen more clearly
in site management in particular.
Instead of large one-off sales, software is now purchased in smaller
batches. However, many of these purchases are strategic with
customers preparing for the information-model-based way of working.
It is very favorable for Tekla that the building industry's move to
information-model-based 3D processes from traditional 2D ways of
working continues. Building Information Modeling (BIM) is a trend
that is gaining momentum in the industry. BIM means that the
information of the product model is transferred and shared between
the parties of the construction process.
The net sales of B&C amounted to 8.88 (12.21) million euros for
January-March 2009. Net sales decreased by approximately 27% compared
to the corresponding quarter the previous year. Operating result was
0.92 (4.10) million euros. B&C's operating result percentage for the
reporting period was 10.4% (33.6%). B&C's license sales nearly halved
compared to the corresponding quarter the previous year. However, a
growth in maintenance sales was a positive thing. This indicates that
customers are willing to pay for their key tools.
International operations accounted for 96% (96%) of B&C's net sales
in January-March 2009. License sales were not at a good level in any
market area. The best results were achieved in the Middle East. With
regard to individual countries, the trends were favorable in Germany
and Saudi Arabia. The greatest absolute drop was seen in North
America, where no signs of a revival of demand have been seen so far.
In February, Tekla opened an office in Jakarta, Indonesia, for B&C's
customer support functions.
Tekla and Fisher Engineering signed a frame agreement to replace all
of Fisher's current structural design and detailing software licenses
with Tekla Structures licenses. The plan is to implement the
agreement over a two-year period. UK-based Fisher Engineering is one
of Europe's leading constructional steel fabricators.
Tekla and HGG from the Netherlands signed an agreement on continued
cooperation. The aim is to develop a standardized software solution
for the steel tube industry to automatically produce the required
control data for CNC (Computer Numerical Control) machinery in an
open format. The solution covers all 3D tubular structures from
design and detailing to automatic fabrication. These are widely used
e.g. in the off-shore industry.
The annual main version of Tekla Structures was released at the end
of March. Tekla Structures 15 features improved usability of the
product, support for collaboration between different parties in the
planning process and increased efficiency of the tools required in
planning tasks.
Infra & Energy
The Infra & Energy business area focuses on the development and sales
of model-based software solutions that support customers' core
processes. Its key customer industries (products in parentheses) are
energy distribution (Tekla Xpower), public administration (Tekla
Xcity), as well as civil engineering and water (Tekla Xstreet and
Tekla Xpipe).
In the energy industry, information system acquisitions are strategic
investments for the companies. The economic recession has not had
much effect on these investments. Tekla's market position as a
supplier of network information systems is strong in the Nordic and
Baltic countries.
In public administration, the economic crunch has decreased income
and funds available for investments. However, information systems
provide additional productivity, efficiency and self-service and
therefore cost-savings. Decreased financial resources have slowed
down the development of the municipal sector, and investments are
subject to increasing scrutiny. Tekla's sales and market position
remained strong in Finland.
The net sales of I&E amounted to 3.33 (2.67) million euros for
January-March 2009. The business area performed well during the
first quarter, and its net sales increased by approximately 25%.
Successful maintenance sales and product projects contributed to
this, for instance. I&E's operating result was 0.32 (-0.05) million
euros. International operations accounted for 36% (33%) of net sales.
I&E's operating result percentage was 9.6% (-1.9%).
An implementation project to adopt Tekla Xpower to production use
throughout the Berlin distribution area was launched with Vattenfall
Europe Berlin in Germany at the beginning of 2009. Vattenfall aims to
put the system to production use at the end of January 2010. The deal
is a significant step for Tekla in the German market. During the
reporting period, Tekla Xcity was implemented throughout the recently
expanded City of Kouvola (Finland).
In product development, development of Tekla Xpower's contractor
support for energy companies' planning and building processes was
continued with Vattenfall Sähköverkko Oy (Finland). The integration
project of Oü Jaotusvörk (Estonia) proceeded to implementation. A new
application was developed for Tekla Xcity to expand municipal
E-services. The project involves several significant Finnish cities.
PERSONNEL
The Group personnel averaged 459 (404) in January-March 2009; on
average 189 (162) worked outside Finland. In these figures, the
number of part-time staff has been converted to correspond to
full-time work contribution. At the beginning of the year, Tekla
personnel totaled 464 (400) including part-time staff, of whom 189
(158) worked outside Finland, and at the end of March 471 (422), of
whom 193 (166) worked outside Finland.
The growth in the number of personnel (seven persons) was moderate
during the first quarter. The additions were made in the customer
interface. The majority of personnel in Finland will change their
2009 holiday pays for time off.
SHARE AND OWNERSHIP STRUCTURE
Shares and share capital
The total number of Tekla Corporation shares at the end of March 2009
was 22,586,200, of which the company owned 169,600. The total book
counter value of those was 5,088 euros, representing 0.75% of the
company's shares and the total number of votes. A total of 898,212.35
euros had been used for acquiring the company's own shares, and their
market value was 642,784 euros on March 31, 2009. The book counter
value of the share is 0.03 euros. At the end of the period, share
capital stood at 677,586 euros.
Share price trends and trading
The highest quotation of the share in January-March 2009 was 4.80
(13.00) euros, the lowest 3.40 (9.30) euros. The average quotation
was 3.82 (10.79) euros. On the last trading day of March, trading
closed at 3.79 (9.71) euros.
A total of 801,503 (3,033,293) Tekla shares changed hands in
January-March 2009 at NASDAQ OMX Helsinki Ltd, amounting to 3.5%
(13.4%) of the entire share capital.
Nominee registered and foreign owners held 25.02% (24.38%) of all
shares at the end of March 2009.
ANNUAL GENERAL MEETING
Tekla Corporation's Annual General Meeting on March 18, 2009 adopted
Tekla Corporation's financial statements and consolidated financial
statements for 2008. The Annual General Meeting also discharged the
CEO and the Board members from liability. The AGM accepted the
Board's proposal whereby a dividend of 0.25 euros per share was
distributed for 2008 (total 5,604,150 euros). The dividend payment
date was March 30, 2009.
Ari Kohonen, Olli-Pekka Laine (Vice Chair), Heikki Marttinen (Chair),
Erkki Pehu-Lehtonen and Reijo Sulonen were re-elected Board members
until the conclusion of the Annual General Meeting in 2010. Timo
Keinänen was re-elected deputy member of the Board. Juha Kajanen will
continue as the Tekla personnel representative on the Board with
Kirsi Hakkila as his personal deputy.
Ernst & Young Oy, Authorized Public Accountants, were elected as the
company's new auditor, with Erkka Talvinko, Authorized Public
Accountant, as the auditor in charge.
The AGM authorized the Board to increase the company's share capital
and acquire or transfer the company's treasury shares. The
above-mentioned authorizations are valid until the next Annual
General Meeting, however not later than April 30, 2010.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
Possible risks and uncertainty factors associated with Tekla's
business are mainly related to the market and competitive situation
and the general economic situation. Trends in the building industry
have weakened in certain markets, and it has had a negative impact on
the demand for Tekla products.
A majority of Tekla's net sales comprises of sales of licenses
entitling to use software products. Fluctuation in their demand can
be rapid and significant. In the short term and with rapidly
decreasing demand, it is challenging to proportion fixed personnel
expenses, which account for the majority of Tekla's costs. Tekla is,
however, able to react swiftly to growing demand, and profits from
additional sales are good.
The sales of Tekla software are geographically distributed. Also
individual customers do not account for a significant share of net
sales, and therefore these risks are not significant.
EVENTS AFTER THE REPORTING PERIOD
At the beginning of April, Tekla purchased the business operations of
3-Design LLC, a small producer of general engineering software. The
company mainly operates in the UK market.
In April, Tekla and Rautaruukki signed a strategic cooperation
agreement on the use of modeling software. Tekla Structures BIM
(Building Information Modeling) software will be used for structural
steel design in almost all countries in which Rautaruukki's
construction division has a presence.
OUTLOOK FOR 2009
As regards the year as a whole, the Board estimates that net sales
will be approximately 50 million euros. The operating result will be
clearly lower in 2009 than in 2008. Costs and measures to ensure
profitability are being continuously monitored.
NEXT FINANCIAL REPORT
Tekla Corporation's Interim Report for January-June 2009 will be
published on Friday, August 7, 2009.
Espoo, May 5, 2009
TEKLA CORPORATION
Board of Directors
For additional information, please contact:
Ari Kohonen, President and CEO, Tel. +358 50 641 24, ari.kohonen (at)
tekla.com
Timo Keinänen, CFO, Tel. +358 400 813 027, timo.keinanen (at)
tekla.com
Distribution: NASDAQ OMX Helsinki Ltd, main media
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
CONSOLIDATED INCOME STATEMENT
Q1/ Q1/ Q1-Q4/
Million euros 2009 2008 2008
Net sales 12.19 14.86 58.90
Other operating income 0.08 0.12 1.01
Change in inventories of
finished goods and in
work in progress -0.04 -0.04
Raw materials and
consumables used -0.62 -0.61 -2.86
Employee compensation and
benefit expense -7.13 -6.64 -27.84
Depreciation -0.35 -0.27 -1.17
Other operating expenses -2.89 -3.53 -13.90
Operating result 1.24 3.93 14.10
% of net sales 10.17 26.45 23.94
Financial income 0.89 0.80 2.44
Financial expenses -0.61 -0.74 -1.39
Profit (loss) before taxes 1.52 3.99 15.15
% of net sales 12.47 26.85 25.72
Income taxes -0.48 -1.10 -4.20
Result for the period 1.04 2.89 10.95
Attributable to:
Owners of the parent 1.04 2.89 10.95
Earnings per share for profit
attributable to the owners
of the parent (EUR) 0.05 0.13 0.49
Earnings are not diluted.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Q1/ Q1/ Q1-Q4/
Million euros 2009 2008 2008
Result for the period 1.04 2.89 10.95
Other comprehensive income
for the period, net of tax:
Transl. differences 0.09 -0.09 -0.07
Changes in available-for-
sale investments -0.03 -0.12 -0.06
Total 0.06 -0.21 -0.13
Total comprehensive income
for the period 1.10 2.68 10.82
Attributable to:
Owners of the parent 1.10 2.68 10.82
CONDENSED BALANCE SHEET
Million euros 3/2009 3/2008 12/2008
Assets
Non-current assets
Property, plant and
equipment 1.69 1.77 1.70
Goodwill 0.19 0.10 0.19
Intangible assets 1.93 0.76 1.64
Other financial assets 3.80 0.30 0.30
Receivables 0.25 0.34 0.26
Deferred
tax assets 0.20 0.14 0.18
Non-current assets, total 8.06 3.41 4.27
Current assets
Inventories 0.00 0.07 0.03
Trade and other
receivables 14.01 14.84 13.87
Tax receivables 0.58 0.00 0.26
Other financial assets 18.20 26.18 19.99
Cash and cash equivalents 6.77 9.46 6.34
Current assets, total 39.56 50.55 40.49
Assets total 47.62 53.96 44.76
Equity and liabilities
Equity
Share capital 0.68 0.68 0.68
Share premium account 8.89 8.89 8.89
Other own capital 1.52 1.19 1.87
Retained earnings 14.74 12.11 18.89
Equity total 25.83 22.87 30.33
Non-current liabilities
Deferred tax liabilities 0.07 0.10 0.08
Interest-bearing liabilities 0.08 0.07 0.08
Non-current liabilities total 0.15 0.17 0.16
Current liabilities
Trade and other payables 21.59 28.96 14.14
Tax liabilities 0.01 1.91 0.09
Current interest-bearing
liabilities 0.04 0.05 0.04
Current liabilities total 21.64 30.92 14.27
Liabilities total 21.79 31.09 14.43
Equity and liabilities total 47.62 53.96 44.76
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the owners of the parent
Share Share Res. Fair Acc. Ret.
cap. prem. fund value transl. earn.
acct res. diff. Total
Equity January 1, 08 0.68 8.89 1.33 0.30 -0.46 20.71 31.45
Payment of dividend -11.26 -11.26
Total comprehensive
income for the period -0.12 0.14 2.66 2.68
Equity March 31, 08 0.68 8.89 1.33 0.18 -0.32 12.11 22.87
Attributable to the owners of the parent
Share Share Res. Fair Acc. Ret.
cap. prem. fund value transl. earn.
acct res. diff. Total
Equity January 1, 09 0.68 8.89 1.33 0.24 0.30 18.89 30.33
Payment of dividend -5.60 -5.60
Total comprehensive
income for the period -0.03 -0.32 1.45 1.10
Equity March 31, 09 0.68 8.89 1.33 0.21 -0.02 14.74 25.83
CONDENSED CASH FLOW STATEMENT
Q1/ Q1/ Q1-Q4/
Million euros 2009 2008 2008
Net cash flows from operating
activities 8.12 5.79 9.51
Cash flows from investing
activities:
Investments -0.67 -0.27 -2.02
Sale of intangible assets and
property, plant and equipment 0.01 -0.01
Cash outflow on acquisition -0.15
Purchases of available-for-
sale financial assets -11.73 -18.65 -52.84
Proceeds from sale of
available-for-sale financial assets 10.74 14.11 55.20
Interests received from
available-for-sale financial assets 0.31 0.26 1.05
Net cash used in/from investing
activities -1.35 -4.54 1.23
Cash flows from financing
activities:
Payment of dividend -5.60 -11.26
Own shares -0.68
Repayments of long-term debt -0.22 -0.22
Payments of finance lease liabilities -0.01 -0.03
Net cash used in financing
activities -5.61 -0.22 -12.19
Net decrease/increase in cash and
cash equivalents 1.16 1.03 -1.45
Cash and cash equivalents at
beginning of the period 6.98 8.43 8.43
Cash and cash equivalents at end of 8.14 9.46 6.98
the period
The cash and cash equivalents
in the cash flow statement include:
Cash and cash equivalents 6.77 9.46 6.34
Available-for-sale financial
assets, cash equivalents 1.37 0.00 0.64
NOTES TO THE INTERIM REPORT
The notes are presented in millions of euros, unless otherwise
stated.
This interim report has been prepared in accordance with the IAS 34
(Interim Financial Reporting) standard. The same accounting and
valuation
policies and methods of computation have been followed in the interim
financial reports as in the annual financial statements for 2008.
The amendments and interpretations to published standards as well as
new standards, effective January 1, 2009, are presented in detail
in the financial statements for 2008. Tekla Corporation has
applied IFRS 8, Operating Segments, standard as of January 1, 2009.
The segment information has already previously been based on internal
reporting to the management, so the operating segments are the same
as
the business segments according to IAS 14.
Tekla Corporation has also applied the amended standard IAS 1,
Presentation of Financial Statements, as of January 1, 2009, and this
has
resulted in changes in the presentation of the income statement and
the
consolidated statement of changes in equity.
The figures presented in the Interim Report are unaudited.
Use of estimates
When preparing the interim report, the Group's management is
required to make estimates and assumptions influencing the content of
the
interim report, and it must exercise its judgment regarding
the application of accounting policies. Although these estimates
are based on the management's best knowledge, actual results may
ultimately differ from the estimates used in the interim report.
Tax losses carried forward are recognized as deferred
tax assets only to the extent that it is probable that future taxable
profits will be available against which unused tax losses can
be utilized. Actual results could differ from those estimates.
Segment information
Net sales by business area
Q1/ Q1/ Q1-Q4/
Million euros 2009 2008 2008
Building & Construction 8.88 12.21 46.07
Infra & Energy 3.33 2.67 12.95
Net sales between segments -0.02 -0.02 -0.12
Total 12.19 14.86 58.90
Operating result by business area
Q1/ Q1/ Q1-Q4/
Million euros 2009 2008 2008
Building & Construction 0.92 4.10 12.13
Infra & Energy 0.32 -0.05 1.97
Others -0.12
Total 1.24 3.93 14.10
Financial indicators Q1/ Q1/ Q1-Q4/
2009 2008 2008
Earnings per share (EPS),
EUR 0.05 0.13 0.49
Equity/share, EUR 1.15 1.02 1.35
Interest-bearing
liabilities 0.12 0.12 0.12
Equity ratio, % 54.7 42.7 68.4
Net gearing, % -96.1 -155.1 -86.3
Return on investment, % 22.1 58.6 49.0
Return on equity, % 14.9 42.5 35.4
Number of shares
at the end of the period 22,416,600 22,516,600 22,416,600
Number of shares,
on average 22,416,600 22,516,600 22,485,500
Gross investments, MEUR 0.67 0.27 2.02
% of net sales 5.50 1.82 3.43
Personnel, on average 459 404 430
Consolidated income statement by quarter
Q1/ Q4/ Q3/ Q2/ Q1/
Million euros 2009 2008 2008 2008 2008
Net sales 12.19 15.80 13.72 14.52 14.86
Other operating income 0.08 0.32 0.15 0.42 0.12
Change in inventories of
finished goods and in
work in progress -0.04 -0.12 0.08
Raw materials and
consumables used -0.62 -0.98 -0.56 -0.71 -0.61
Employee compensation and
benefit expense -7.13 -7.41 -6.56 -7.23 -6.64
Depreciation -0.35 -0.33 -0.29 -0.28 -0.27
Other operating expenses -2.89 -3.65 -3.04 -3.68 -3.53
Operating result 1.24 3.63 3.50 3.04 3.93
% of net sales 10.17 22.97 25.51 20.94 26.45
Financial income 0.89 0.74 0.49 0.41 0.80
Financial expenses -0.61 -0.31 -0.15 -0.19 -0.74
Profit (loss) before taxes 1.52 4.06 3.84 3.26 3.99
% of net sales 12.47 25.70 27.99 22.45 26.85
Income taxes -0.48 -1.07 -1.09 -0.94 -1.10
Result for the period 1.04 2.99 2.75 2.32 2.89
Income taxes Q1/ Q1/ Q1-Q4/
2009 2008 2008
Taxes for the financial
period and prior periods -0.50 -1.15 -4.37
Deferred taxes 0.02 0.05 0.17
Total -0.48 -1.10 -4.20
Property,
plant and equipment 3/2009 3/2008 12/2008
Cost at the beginning of the
period 7.76 7.20 7.20
Translation differences 0.00 -0.04 -0.10
Additions 0.21 0.17 0.75
Disposals -0.06 -0.03 -0.09
Cost at the end of the
period 7.91 7.30 7.76
Accumulated depreciation at
the beginning of the period 6.06 5.41 5.41
Translation differences 0.00 -0.04 -0.10
Accumulated depreciation on
disposals -0.06 -0.03 -0.06
Depreciation for the
financial period 0.22 0.19 0.81
Accumulated depreciation
at the end of the period 6.22 5.53 6.06
Net book amount at the end
of the period 1.69 1.77 1.70
The investments consisted of normal acquisitions of
hardware, software and equipment.
Provisions
The Group's provisions, loss-making contracts and
provisions for pension obligations have
been eliminated on December 31, 2007.
Collaterals, contingent
liabilities and other commitments
3/2009 3/2008 12/2008
Collaterals for own commitments
Business mortgages
(as collateral for bank
guarantee limit) 0.50 0.50 0.50
Pledged funds 0.06 0.05 0.06
Leasing and rental
agreement commitments
Premises 5.43 4.35 5.58
Others 0.70 0.79 0.71
Total 6.13 5.14 6.29
Derivative contracts
Currency forward contracts:
Fair value -0.10 0.23 -0.14
Nominal value of
underlying instruments 1.77 2.79 2.38
The Group makes derivative contracts to hedge against
the exchange rate risks of prospective sales agreements.
Forward contracts and currency options are stated at fair
value, and related foreign exchange gains and losses are
recognized in the income statement. The derivative
contracts hedge sales in US dollars according to the
Group's policy.
Related party transactions 3/2009 3/2008 12/2008
Gerako Oy
Purchases of services 0.05 0.06 0.21
Reimbursed expenses
Management remuneration
Salaries and post-employment
benefits 0.47 0.67 1.47
Management herein refers to members of the Tekla Management Team.
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