Asiakastieto Group Oyj - Half Year financial report

Asiakastieto Group's Half Year Financial Report 1.1. - 30.6.2017: Strong service development in the first half of the year

Asiakastieto Group Plc, stock exchange release 3 AUGUST AT 11.00 EEST

Asiakastieto Group's Half Year Financial Report 1.1. - 30.6.2017: Strong service
development in the first half of the year

SUMMARY

The figures presented in this Half Year Financial Report are unaudited.

April - June 2017 in short:

-  Net sales amounted to EUR 14,4 million (EUR 12,9 million), an increase of
12,2 %.
-  Adjusted EBIT excluding non-recurring and other adjusted items was EUR 5,9
million (EUR 4,9 million), an increase of 18,5 %.
-  Operating profit (EBIT) was EUR 5,8 million (EUR 6,0 million). Operating
profit included non-recurring expenses and other adjusted items of EUR 0,1
million (EUR 0,0 million). Operating profit in the comparative period included
(EUR 1,1 million) non-recurring, adjusted profit on sale of office premises.
-  The share of new products and services of net sales was 10,4 % (8,3 %).
-  The share of value-added services of net sales was 70,6 % (65,4 %).
-  Free cash flow amounted to EUR 5,5 million (EUR 3,5 million). The impact of
non-recurring and other adjusted items on free cash flow was EUR -0,1 million
(EUR -0,0 million).
-  Earnings per share were EUR 0,29 (EUR 0,32).
January - June 2017 in short:

-  Net sales amounted to EUR 28,3 million (EUR 24,8 million), an increase of
13,8 %.
-  Adjusted EBIT excluding non-recurring and other adjusted items was EUR 11,4
million (EUR 10,0 million), an increase of 13,8 %.
-  Operating profit (EBIT) was EUR 11,2 million (EUR 11,1 million). Operating
profit included non-recurring expenses and other adjusted items of EUR 0,1
million (EUR 0,0 million). Operating profit in the comparative period included
(EUR 1,1 million) non-recurring, adjusted profit on sale of office premises.
-  The share of new products and services of net sales was 9,2 % (9,2 %).
-  The share of value-added services of net sales was 70,0 % (64,9 %).
-  Free cash flow amounted to EUR 9,0 million (EUR 7,4 million). The impact of
non-recurring and other adjusted items on free cash flow was EUR -0,1 million
(EUR -0,1 million).
-  Earnings per share were EUR 0,57 (EUR 0,57).
Future outlook 2017

Asiakastieto Group expects its net sales growth rate to be around the higher end
of long term target 5-10%. Adjusted euro-nominated net operating profit is
expected to grow from last year but at a slower pace than net sales.

KEY FIGURES

                                 1.4.-     1.4.-     1.1.-     1.1.-      1.1.-

 EUR million                 30.6.2017 30.6.2016 30.6.2017 30.6.2016 31.12.2016
-------------------------------------------------------------------------------
 Net sales                        14,4      12,9      28,3      24,8       49,2

 Net sales growth, %              12,2      13,4      13,8      13,5       12,5

 Adjusted EBITDA(1)                6,6       5,6      12,8      11,2       21,7

 Adjusted EBITDA margin,
 %(1)                             45,5      43,4      45,2      45,1       44,1

 Adjusted operating profit
 (EBIT)(1)                         5,9       4,9      11,4      10,0       19,2

 Adjusted EBIT margin, %(1)       40,6      38,4      40,2      40,2       39,1

 New products and services
 share of net sales, %            10,4       8,3       9,2       9,2        7,4

 Free cash flow(2)                 5,5       3,5       9,0       7,4       17,2

 Net debt to adjusted
 EBITDA, x                         2,0       2,4       2,1       2,4        2,2



(___________________________________________________________________)
(1) Adjusted key figures are adjusted by following items: M&A related fees for
legal and other advisory services, redundancy payments and compensations paid.
The above listed adjusted items were EUR -0,1 million for the second quarter 1
April - 30 June 2017, EUR -0,0 million for the comparative period 1 April - 30
June 2016, EUR -0,1 for interim period 1 January - 30 June 2017, EUR -0,0
million for the comparative period 1 January - 30 June 2016 and EUR -0,3 million
for the financial year 2016. Adjusted key figures for the financial year 2016
are also adjusted by the non-recurring profit on the sale of shares of office
premises EUR 1,1 million.

(2 )The impact of adjusted items on free cash flow was EUR -0,1 million for the
second quarter 1 April - 30 June 2017, EUR -0,0 million for the comparative
period 1 April - 30 June 2016, EUR - 0,1 for the interim period 1 January - 30
June 2017, EUR -0,1 million for the comparative period 1 January - 30 June 2016
and EUR -0,4 million for the financial year 2016.

JUKKA RUUSKA, CEO

"In the second quarter of the financial year 2017 Asiakastieto Group's net sales
continued its strong growth, being 12,2%. During the first six months, we
launched over twenty new services, of which as much as thirteen in the second
quarter. The good demand for the new services launched by us created a basis for
the continued increase in net sales. The growth is strengthened by positive
economic outlooks and the volume growth brought on by the invigorated business
of our client enterprises. Our clients are also to a greater extent buying
processed services, which better support their processes, the share of these
constituting already more than two thirds of our entire net sales.

Asiakastieto Group's net sales amounted to EUR 14,4 million in the second
quarter (EUR 12,9 million). Growth occurred especially in the product areas of
Customer Management, Real Estate and Collateral Information Services and
Consumer Information Services. The adjusted net operating profit of the group
grew in the second quarter, being EUR 5,9 million, whereas it was EUR 4,9
million in the comparative period 2016. The adjusted EBIT margin increased from
the respective quarter of the previous year, because of the large share of new
products of the sales and generally the large share of value added services.

Knowing the customer and own supply chain even more profoundly than before as
well as complying to the ever more complicated legislation will demand a large
contribution from companies. In the second quarter, we launched a number of new
services, which provide our clients with even better opportunities to meet their
compliance commitments set by legislation in an efficient manner, boosting their
customer experience. Relating to the prevention of money laundering and
financing of terrorism, it must be possible to identify so-called beneficial
owners of companies. The deduction of persons in the background of these
companies manually is a labour intensive and difficult task, but with our
service the work can automated. Our ESG Report service launched in June is based
on entirely new data on the backgrounds of companies. Such data has not been
available on private enterprises before. With Asiakastieto's ESG Report our
clients can automate the exploration and monitoring of companies' ESG
responsibility.

In conformity with our strategy, we want to generate transparency and trust. For
the support of this objective we have launched Purchase Service, with which any
company can tender out any acquisition of goods or services. We verify the
economic reliability of both the buyer and supplier, thus supporting the
competition conditions of correctly acting companies at the same time as we
offer our clients added value for their own processes with our new integrated
and automated services.

The high quality and consistency of customer experience in all channels is a key
success factor now and in the future. For this purpose, we have launched a
development programme, in which personnel from all parts of the organisation
participate and which will have an impact on the activities of every person at
Asiakastieto. This way we believe we can further enhance the satisfaction of our
clients and the company's possibilities for successful competition."

FUTURE OUTLOOK 2017

Asiakastieto Group expects its net sales growth rate to be around the higher end
of the long term target 5-10%. Adjusted euro-nominated net operating profit is
expected to grow from last year but at a slower pace than net sales.

The outlook is subject to risks related to, among other factors, the development
of the Finnish economy and the business operations of the Group. The most
significant risks related to business operations include, for example, risks
related to the success of product and service development activities, launches
of new products and services and risks related to competitive tenders and to
losing significant customer accounts.

Asiakastieto Group's business risks have been described in more detail on the
Company's investor pages at investors.asiakastieto.fi.

Helsinki, on 3 August 2017

ASIAKASTIETO GROUP PLC
Board of Directors

For further information:
Jukka Ruuska, CEO
Asiakastieto Group Plc
tel. +358 10 270 7111

Distribution:
Nasdaq Helsinki Ltd
major media
investors.asiakastieto.fi

Asiakastieto Group is one of the leading Finnish providers of business and
consumer information services. The Group's products and services are primarily
used for risk management, finance and administration, decision-making and sales
and marketing purposes. At the end of 2016, the Group had around 19 000 clients,
of which 11 000 were contractual clients. The Group serves several industries,
the largest ones including finance and banking as well as wholesale and retail
sectors and expert service companies. In 2016, the Group's net sales were EUR
49,2 million and it had 170 employees at the end of 2016. Asiakastieto Group is
listed on Nasdaq Helsinki with the ticker ATG1V. More information about
Asiakastieto Group is available at www.asiakastieto.fi.






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Asiakastieto Group Plc_Half year financial report_2017.pdf