2012-04-26 11:30:00 CEST
2012-04-26 11:30:08 CEST
REGULATED INFORMATION
Affecto Oyj - Interim report (Q1 and Q3)
Affecto Plc's Interim Report 1-3/2012
Helsinki, 2012-04-26 11:30 CEST (GLOBE NEWSWIRE) -- AFFECTO PLC -- INTERIM
REPORT -- 26 APRIL 2012 at 12.30
Affecto Plc's Interim Report 1-3/2012
Group key figures
MEUR 1-3/12 1-3/11 2011
Net sales 33.5 30.1 127.3
Operational segment result 2.5 2.1 10.2
% of net sales 7.6 7.1 8.0
Operating profit 2.0 1.6 8.2
% of net sales 6.1 5.4 6.4
Profit before taxes 1.9 1.5 7.1
Profit for the period 1.5 1.2 5.3
Equity ratio, % 49.7 45.5 46.1
Net gearing, % 30.8 37.1 27.1
Earnings per share, eur 0.07 0.06 0.26
Earnings per share (diluted), eur 0.07 0.06 0.25
Equity per share, eur 3.00 2.69 2.91
CEO Pekka Eloholma comments:
Affecto's net sales grew by 11% in the first quarter and reached 33.5 MEUR
(30.1 MEUR). Highest growth was achieved in Sweden and Finland. Also Baltic and
Denmark grew somewhat. Net sales decreased in Norway mainly due to suboptimal
resource usage caused by starting new projects.
Operating profit grew to 2.0 MEUR (1.6 MEUR) being 6% of the net sales. Best
results were achieved in Finland, but also Norway, Baltic and Denmark made a
reasonable result. The business in Sweden was still somewhat loss-making, but
the result has improved from last year.
Affecto's order backlog is 51.3 MEUR, slightly above the order backlog last
year (51.2 MEUR). The market has been somewhat soft in Denmark, but elsewhere
the demand for our solutions has been good.
In 2012 the main focus continues to be on profitability improvement.
Profitability (EBIT-%) is estimated to improve and net sales are estimated to
grow in 2012.
Additional information:
CEO Pekka Eloholma, +358 205 777 737
CFO Satu Kankare, +358 205 777 202
SVP, M&A, IR, Hannu Nyman, +358 205 777 761
This release is unaudited. The amounts in this report have been rounded from
exact numbers.
INTERIM REPORT 1-3/2012
Affecto is the forerunner in the field of Enterprise Information Management in
the Northern Europe. Our solutions for information management and business
analytics help organisations to improve productivity and competitiveness with
superior use of information in decision making and execution. We also deliver
operational solutions for improving and simplifying processes at customer
organizations and offer geographic information services.
Affecto's head office is in Finland. The company has subsidiaries in Finland,
Sweden, Norway, Denmark, Estonia, Lithuania, Latvia, Poland and South Africa.
NET SALES
Affecto's net sales in 1-3/2012 were 33.5 MEUR (1-3/2011: 30.1 MEUR). Net sales
in Finland were 13.5 MEUR (11.5 MEUR), in Norway 6.6 MEUR (7.1 MEUR), in Sweden
6.6 MEUR (4.9 MEUR), in Denmark 3.7 MEUR (3.7 MEUR) and 3.8 MEUR (3.5 MEUR) in
Baltic.
Net sales grew by 11% in the first quarter mainly in Sweden (35%) and Finland
(17%). Baltic grew by 6% and Denmark by 1%. Denmark failed to reach its sales
targets and the order backlog decreased somewhat. Market situation is rather
good in Norway, but net sales decreased by 7% mostly due to non-optimal
resource usage caused by starting new projects. The increased economic
uncertainty in late 2011 may have slightly slowed customers' investment
decisions, which has also contributed to the development especially in Denmark
and Baltic.
Net sales by reportable segments
Net sales, MEUR 1-3/12 1-3/11 2011
Finland 13.5 11.5 50.3
Norway 6.6 7.1 27.8
Sweden 6.6 4.9 21.5
Denmark 3.7 3.7 14.1
Baltic 3.8 3.5 16.2
Other -0.6 -0.6 -2.6
--------------------------------------
--------------------------------------
Group total 33.5 30.1 127.3
Net sales of Information Management Solutions business in 1-3/2012 were 31.0
MEUR (27.5 MEUR) and net sales of Geographic Information Services were 2.9 MEUR
(2.8 MEUR).
The order backlog was 51.3 MEUR, slightly above the order backlog last year
(51.2 MEUR). Affecto has a well-diversified customer base. The ten largest
customers generated approx. 20% of the group's net sales in 2011 and the
largest customer accounted for 3% of net sales.
PROFIT
Affecto's operating profit in 1-3/2012 was 2.0 MEUR (1.6 MEUR) and the
operational segment result was 2.5 MEUR (2.1 MEUR). Operational segment result
was in Finland 1.8 MEUR (1.2 MEUR), in Norway 0.7 MEUR (0.8 MEUR), in Sweden
-0.2 MEUR (-0.5 MEUR), in Denmark 0.3 MEUR (0.4 MEUR) and in Baltic 0.4 MEUR
(0.6 MEUR).
Compared to last year, profit and profitability increased clearly in Finland,
but decreased in Norway, Denmark and Baltic. Sweden improved from the previous
year, but was still loss-making.
Operational segment result by reportable segments
Operational segment 1-3/12 1-3/11 2011
result, MEUR
Finland 1.8 1.2 6.8
Norway 0.7 0.8 3.1
Sweden -0.2 -0.5 -2.1
Denmark 0.3 0.4 1.6
Baltic 0.4 0.6 2.1
Other -0.4 -0.4 -1.3
------------------------------------------------
------------------------------------------------
Operational segment result 2.5 2.1 10.2
IFRS3 Amortization -0.5 -0.5 -2.0
------------------------------------------------
Operating profit 2.0 1.6 8.2
According to the IFRS3 requirements, operating profit includes 0.5 MEUR (0.5
MEUR) of amortization on intangible assets related to acquisitions. The IFRS3
amortization is estimated to be approx. 2.0 MEUR per year until 2014, as the
other intangible assets impacting in the IFRS3 amortization totaled 5.3 MEUR at
the end of the reporting period.
R&D costs totaled 0.0 MEUR (0.3 MEUR), i.e. 0.1% of net sales (1.0%). These
costs have been recognized as an expense in the income statement.
The fluctuation in financial costs is explained to a large extent by changes in
the fair value of the interest swap taken, which changes have no effect on
actual cash flow. The interest rate changes have caused 0.1 MEUR income in
1-3/2012 (0.2 MEUR).
Taxes corresponding to the profit of the period have been entered as tax
expense. Net profit for the period was 1.5 MEUR, while it was 1.2 MEUR last
year.
FINANCE AND INVESTMENTS
At the end of the reporting period, Affecto's balance sheet totaled 138.0 MEUR
(12/2011: 145.1 MEUR). Equity ratio was 49.7% (12/2011: 46.1%) and net gearing
was 30.8% (12/2011: 27.1%).
The financial loans were 34.5 MEUR (12/2011: 34.5 MEUR) at the end of reporting
period. The company's cash and liquid assets were 15.1 MEUR (12/2011: 18.0
MEUR). The interest-bearing net debt was 19.3 MEUR (12/2011: 16.4 MEUR).
Cash flow from operating activities for the reported period was -2.6 MEUR (2.4
MEUR) and cash flow from investing activities was -0.4 MEUR (-0.5 MEUR).
Investments in non-current assets were 0.4 MEUR (0.5 MEUR).
EMPLOYEES
The number of employees was 1079 persons at the end of the reporting period
(984). 409 employees were based in Finland, 132 in Norway, 150 in Sweden, 75 in
Denmark and 313 in the Baltic countries. The average number of employees during
the period was 1076 (974).
REVIEW OF MARKET DEVELOPMENTS
The demand for Enterprise Information Management (EIM) solutions, including
Business Intelligence (BI) and Enterprise Content Management (ECM), is
estimated to continue growing more rapidly than the general IT services. The
average annual global growth of BI and analytics software license markets is
estimated to be approx. 8% in the next few years. The Nordic EIM services
markets are estimated to grow annually by 6-8%. The scope of EIM solutions
continues to evolve, and the new offerings like Master Data Management (MDM),
Data Quality and Collaborative Decision Making will increase their role in the
solution offering.
The grown uncertainty about the general economic developments during the last
months of 2011 hasn't so far materially impacted Affecto's business. During
2012 the decision-making pace has been slightly slower than normal in most
countries, but in general there has been no significant negative change in the
market situation. EIM solutions are seen as tools for improving operational
efficiency, so investments to them are expected to continue.
BUSINESS REVIEW BY AREAS
The group's business is managed through five country units. Finland, Norway,
Sweden, Denmark and Baltic are also the reportable segments.
In 1-3/2012 the net sales in Finland were 13.5 MEUR (11.5 MEUR). Operational
segment result was 1.8 MEUR (1.2 MEUR). The business developed steadily and
profitability was good. Net sales grew by 17%, mostly in the EIM business area.
Customers' activity has remained good, especially regarding EIM solutions. An
agreement regarding the maintenance and development of Yleisradio's (The
Finnish Broadcasting Company) web services systems was signed in January.
Net sales of Karttakeskus GIS business, reported as part of Finland, grew in
1-3/2012 to 2.9 MEUR (2.8 MEUR) and the unit's profitability was good.
In 1-3/2012 the net sales in Norway were 6.6 MEUR (7.1 MEUR) and operational
segment result was 0.7 MEUR (0.8 MEUR). Market situation is rather good in
Norway, but net sales decreased by 7% mostly due to non-optimal resource usage
caused by starting new projects.
In 1-3/2012 the net sales in Sweden were 6.6 MEUR (4.9 MEUR) and operational
segment result -0.2 MEUR (-0.5 MEUR). Sweden improved its result from the
previous year, but was still loss-making. Net sales grew by 35%, mainly due to
the increased delivery capacity and order backlog. Agreement on cooperation in
developing Toyota Material Handling Europe AB's (TMHE) Corporate Performance
Management (CPM) solution was signed in February.
In 1-3/2012 the net sales in Denmark were 3.7 MEUR (3.7 MEUR) and operational
segment result was 0.3 MEUR (0.4 MEUR). Denmark failed to reach its sales
targets and the order backlog decreased somewhat. Resource utilization rate was
below normal.
In 1-3/2012 the net sales in Baltic (Lithuania, Latvia, Estonia, Poland, South
Africa) were 3.8 MEUR (3.5 MEUR). Operational segment result was 0.4 MEUR (0.6
MEUR). Net sales grew by 6%, but profitability weakened due to slower than
planned finalisation of certain ongoing projects. The national economies in the
Baltic countries have already returned to growth path, but customers'
cautiousness increased again in the last months of the year, slowing down the
decision-making. The local IT markets have not yet fully recovered from the
effects of the financial crisis: price competition continues to be tight, and
the EU continues to have great importance in financing both public and also
private investments. A new project agreement with Statistics Lithuania was
signed in February. New projects were received during the period, e.g. from
Interpolska and Estonian e-health organisation.
ANNUAL GENERAL MEETING AND GOVERNANCE
The Annual General Meeting of Affecto Plc, which was held after the review
period on 19 April 2012, adopted the financial statements for 1.1.-31.12.2011
and discharged the members of the Board of Directors and the CEO from
liability. Approximately 36 percent of Affecto's shares and votes were
represented at the Meeting. The Annual General Meeting decided on a dividend
distribution of EUR 0.11 per share for the year 2011. The dividend will be paid
in May.
Aaro Cantell, Heikki Lehmusto, Jukka Ruuska, Haakon Skaarer, Tuija Soanjärvi
and Lars Wahlström were re-elected as members of the Board of Directors. The
organization meeting of the Board of Directors was held immediately after the
Annual General Meeting and Aaro Cantell was re-elected Chairman of the Board
and Jukka Ruuska as Vice-Chairman. KPMG Oy Ab was elected as the auditor of the
company.
The Meeting approved the Board's proposal for appointing a Nomination Committee
to prepare proposals concerning members of the Board of Directors and their
remunerations for the following Annual General Meeting. The Nomination
Committee will consist of the representatives of the three largest shareholders
and the Chairman of the Board of Directors, acting as an expert member, if
he/she is not appointed representative of a shareholder. The members
representing the shareholders will be appointed by the three shareholders whose
share of ownership of the shares of the company is largest on 31 October
preceding the Annual General Meeting.
According to the Articles of Association, the General Meeting of Shareholders
annually elects the Board of Directors by a majority decision. The term of
office of the board members expires at the end of the next Annual General
Meeting of Shareholders following their election. The Board appoints the CEO.
The Articles of Association do not contain any special rules for changing the
Articles of Association or for issuing new shares.
THE AUTHORIZATIONS GIVEN TO THE BOARD OF DIRECTORS
In 1-3/2012 the Board has not used the authorizations given by the previous
Annual General Meeting. Those authorizations expired on 19 April 2012.
The complete contents of the new authorizations given by the Annual General
Meeting held on 19 April 2012 have been published in the stock exchange release
regarding the Meetings' decisions.
The Annual General Meeting decided to authorize the Board of Directors to
decide to acquire the company's own shares with distributable funds. A maximum
of 2 100 000 shares may be acquired. The authorization shall be in force until
the next Annual General Meeting.
The Annual General Meeting decided to authorize the Board of Directors to
decide to issue new shares and to convey the company's own shares held by the
company in one or more tranches. The share issue may be carried out as a share
issue against consideration or without consideration on terms to be determined
by the Board of Directors and in relation to a share issue against
consideration at a price to be determined by the Board of Directors. A maximum
of 4 200 000 new shares may be issued. A maximum of 2 100 000 own shares held
by the company may be conveyed. In addition, the authorization includes the
right to decide on a share issue without consideration to the company itself so
that the amount of own shares held by the company after the share issue is a
maximum of one-tenth (1/10) of all shares in the company. The authorization
shall be in force until the next Annual General Meeting.
SHARES AND TRADING
The company has only one share series, and all shares have similar rights. As
at 31 March 2012 Affecto Plc's share capital consisted of 21 516 468 shares
including the shares owned by Affecto Management Oy. The company does not own
treasury shares. Affecto Management Oy owns 823 000 shares.
During 1-3/2012, the highest share price was 2.86 euro, the lowest price 2.39
euro, the average price 2.67 euro and the closing price 2.76 euro. The trading
volume was 2.2 million shares, corresponding to 41% (annualized) of the number
of shares at the end of the period. The market value of shares was 59.4 MEUR at
the end of the period including the shares owned by Affecto Management Oy.
SHAREHOLDERS
The company had a total of 2103 owners on 31 March 2012 and the foreign
ownership was 15%. The list of the largest owners can be found in the company's
web site. Information about the ownership structure and option programs is
included as a separate section in the financial statements. The ownership of
the board members, CEO and their controlled corporations totaled approx. 14.8%
(14.6% shares and 0.2% options).
According to the flagging announcement made on 16 January 2012, the ownership
of Evli Group has exceeded 5%. The ownership will later decrease below 5% when
a forward contract made by Evli matures.
ASSESSMENT OF RISKS AND UNCERTAINTIES
The changes in the general economic conditions and the operating environments
of its customers have direct impact in Affecto's markets. Slower investment
decision making, postponing or cancellation of customers' IT investments may
have negative impact on Affecto.
Affecto's balance sheet includes a material amount of goodwill. Goodwill has
been allocated to cash generating units. Cash generating units, to which
goodwill has been allocated, are tested for impairment both annually and
whenever there is an indication that the unit may be impaired. Potential
impairment losses may have material effect on reported profit and value of
assets. The greatest uncertainty is related to Sweden, where Affecto has
invested in reforming the organization and processes, which has weakened
profitability in the short term.
Affecto's order backlog has traditionally been only for a few months, which
decreases the reliability of longer-term forecasts. Affecto sells third party
software licenses as part of its solutions. Typically the license sales have
most impact on the last month of each quarter and especially in the fourth
quarter. This increases the fluctuation in net sales between quarters and
increases the difficulty of accurately forecasting the quarters. Affecto had
license sales of approx. 11 MEUR in 2011.
Approximately a half of Affecto's business is in Sweden, Norway and Denmark,
thus the development of the currencies of these countries (SEK, NOK and DKK)
may have impact on Affecto's profitability. The main part of the companies'
income and costs are within the same currency, which decreases the risks.
Affecto's bank loan has covenants, the breach of which may lead to higher
financing costs or even the termination of the loan. The covenants are based on
total net debt to earnings before interest, taxes, depreciation and
amortization and total net debt to total equity.
Affecto's success depends also on good customer relationships. Affecto has a
well-diversified customer base. Although none of the customers is critically
large for the whole group, there are large customers in various countries who
are significant for local business in the country.
Affecto's continued success is very much dependent on its management team and
personnel. The loss of the services of any member of its senior management or
other key employee could have a negative impact on Affecto's business and the
ability of the company to implement its strategy. In addition, Affecto's
success depends on its ability to hire, develop, train, motivate and retain
skilled professionals on its staff.
EVENTS AFTER THE REPORTING PERIOD
The Annual General Meeting was held on 19 April 2012. Matters related to the
Meeting have been explained earlier in this Interim Report.
A 2.3 MEUR project agreement was signed with Santander Consumer Bank in April.
According to the flagging announcement made on 25 April 2012, the ownership of
funds managed by Danske Invest Fund Management Ltd. has exceeded 5%.
FUTURE OUTLOOK
In 2012 the main focus continues to be on profitability improvement.
Profitability (EBIT-%) is estimated to improve and net sales are estimated to
grow in 2012.
The company does not provide exact guidance for net sales or EBIT development,
as single projects and timing of license sales may have large impact on
quarterly sales and profit.
Affecto Plc
Board of Directors
It is possible to order Affecto's stock exchange releases to be delivered
automatically by e-mail. Please visit the Investors section of the company
website: www.affecto.com
A briefing for analysts and media will be arranged at 14.00 at Restaurant
Savoy, Eteläesplanadi 14, Helsinki.
www.affecto.com
-----
Financial information:
1. Consolidated income statement, consolidated comprehensive income statement,
balance sheet, cash flow statement and statement of changes in equity
2. Notes
3. Key figures
1. Consolidated income statement, consolidated comprehensive income statement,
balance sheet, cash flow statement and statement of changes in equity
CONSOLIDATED INCOME STATEMENT
(1 000 EUR) 1-3/2012 1-3/2011 2011
----------------------------
----------------------------
Net sales 33 540 30 121 127 270
Other operating income 6 37 97
Changes in inventories of 43 29 -72
finished goods and work in
progress
Materials and services -6 060 -5 563 -26 777
Personnel expenses -20 244 -17 812 -72 003
Other operating expenses -4 418 -4 336 -16 907
Other depreciation and amortisation -323 -347 -1 405
IFRS3 amortisation -511 -514 -2 020
Operating profit 2 031 1 615 8 182
Net financial expenses -152 -143 -1 096
Profit before income tax 1 879 1 472 7 087
Income tax -422 -299 -1 762
Profit for the period 1 458 1 173 5 324
Profit for the period
attributable to:
Owners of the parent company 1 481 1 186 5 328
Non-controlling interest -23 -13 -3
Earnings per share
(EUR per share):
Basic 0.07 0.06 0.26
Diluted 0.07 0.06 0.25
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
(1 000 EUR) 1-3/2012 1-3/2011 2011
----------------------------
----------------------------
Profit for the period 1 458 1 173 5 324
Other comprehensive income:
Translation difference 508 -10 252
Total Comprehensive income 1 965 1 163 5 576
for the period
Total Comprehensive income
attributable to:
Owners of the parent company 1 988 1 176 5 579
Non-controlling interest -23 -13 -3
CONSOLIDATED BALANCE SHEET
(1 000 EUR) 3/2012 3/2011 12/2011
--------------------------
--------------------------
Non-current assets
Property, plant and equipment 2 078 2 110 2 051
Goodwill 73 530 72 879 73 102
Other intangible assets 5 577 7 519 5 974
Deferred tax assets 1 638 1 535 1 562
Available-for-sale financial assets - 19 -
Trade and other receivables 17 17 17 82 840 84 079 82 706
Current assets
Inventories 442 506 402
Trade and other receivables 38 706 33 776 43 373
Current income tax receivables 967 616 665
Cash and cash equivalents 15 079 15 682 17 964
55 195 50 580 62 405
--------------------------------------------------------------
--------------------------------------------------------------
Total assets 138 035 134 658 145 111
Equity attributable to owners
of the parent Company
Share capital 5 105 5 105 5 105
Reserve of invested non-restricted 46 591 46 591 46 591
equity
Other reserves 629 466 593
Treasury shares -1 996 -1 996 -1 996
Translation differences -269 -1 038 -777
Retained earnings 12 122 6 500 10 642
--------------------------------------------------------------
--------------------------------------------------------------
62 182 55 629 60 159
Non-controlling interest 354 367 376
Total equity 62 536 55 996 60 535
Non-current liabilities
Borrowings 30 363 32 467 30 355
Derivative financial instruments - 579 -
Deferred tax liabilities 1 427 2 153 1 550
31 790 35 199 31 905
Current liabilities
Borrowings 4 000 4 000 4 000
Derivative financial instruments 370 - 475
Trade and other payables 36 277 37 435 45 380
Current income tax liabilities 2 222 1 157 1 994
Provisions 840 872 822
43 709 43 463 52 670
Total liabilities 75 499 78 662 84 576
--------------------------------------------------------------
--------------------------------------------------------------
Equity and liabilities 138 035 134 658 145 111
SUMMARY CONSOLIDATED CASH FLOW STATEMENT
(1 000 EUR) 1-3/2012 1-3/2011 2011
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 1 458 1 173 5 324
Adjustments to profit for the period 1 467 1 280 6 461
2 924 2 453 11 786
Change in working capital -4 542 572 985
Interest and other financial cost paid -322 -363 -1 579
Interest and other financial income received 52 53 202
Income taxes paid -722 -366 -1 685
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Net cash from operating activities -2 610 2 350 9 709
Cash flows from investing activities
Payment of liabilities, Affecto Estonia - - -740
Acquisition of tangible and intangible -410 -490 -1 416
assets
Proceeds from sale of tangible and - 43 42
intangible assets
-----------------------------------------------------------------------------
Net cash used in investing activities -410 -447 -2 114
Cash flows from financing activities
Proceeds from non-current borrowings - - 36 339
Repayments of non-current borrowings - - -38 500
Dividends paid to the owners - - -1 291
of the parent company
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Net cash from financing activities - - -3 452
(Decrease)/increase in cash and cash equivalents -3 020 1 903 4 144
Cash and cash equivalents 17 964 13 818 13 818
at the beginning of the period
Foreign exchange effect on cash 135 -39 3
Cash and cash equivalents 15 079 15 682 17 964
at the end of the period
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to owners of the parent
company
------------------------------------------------------
------------------------------------------------------
(1 000 Share Reserve of Other Treasu Trans Ret. Non-cont Total
EUR) capita invested reserv ry lat. earnin rolling equity
l non-restrict es shares diff. gs interest
ed equity
Equity 5 105 46 591 593 -1 996 -777 10 642 376 60 535
at 1
January
2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit 1 481 -23 1 458
Translat 508 508
ion
differe
nces
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 508 1 481 -23 1 965
compre-
hensive
income
Share-ba 35 35
sed
payment
s
Dividend - -
s paid
--------------------------------------------------------------------------------
Equity 5 105 46 591 629 -1 996 -269 12 122 354 62 536
at 31
March
2012
Equity attributable to owners of the parent
company
------------------------------------------------------
------------------------------------------------------
(1 000 Share Reserve of Other Treasu Trans Ret. Non-cont Total
EUR) capita invested reserv ry lat. earnin rolling equity
l non-restrict es shares diff. gs interest
ed equity
Equity 5 105 46 591 417 -1 996 -1 028 6 605 380 56 074
at 1
January
2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit 1 186 -13 1 173
Translat -10 -10
ion
differe
nces
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total -10 1 186 -13 1 163
compre-
hensive
income
Share-ba 49 49
sed
payment
s
Dividend -1 291 -1 291
s paid
--------------------------------------------------------------------------------
Equity 5 105 46 591 466 -1 996 -1 038 6 500 367 55 996
at 31
March
2011
2. Notes
2.1. Basis of preparation
This condensed interim financial information has been prepared in accordance
with IAS 34, Interim Financial Reporting. The condensed interim financial
report should be read in conjunction with the annual financial statements for
the year ended 31 December 2011. In material respects, the same accounting
policies have been applied as in the 2011 annual consolidated financial
statements. The amendments to and interpretations of IFRS standards that
entered into force on 1 January 2012 had no impact on this interim report.
The non-controlling interest has been presented separately after net profit for
the period and in total equity.
2.2. Segment information
Affecto's reporting segments are based on geographical locations and are
Finland, Norway, Sweden, Denmark and Baltic.
Segment net sales and result
(1 000 EUR) 1-3/2012 1-3/2011 2011
----------------------------
----------------------------
Total net sales
Finland 13 452 11 502 50 277
Norway 6 647 7 113 27 841
Sweden 6 571 4 874 21 513
Denmark 3 705 3 657 14 072
Baltic 3 773 3 546 16 167
Other -608 -570 -2 600
-------------------------------------------------------------
Group total 33 540 30 121 127 270
Operational segment result
Finland 1 829 1 200 6 804
Norway 663 849 3 109
Sweden -197 -521 -2 141
Denmark 255 395 1 593
Baltic 358 584 2 100
Other -365 -378 -1 263
-------------------------------------------------------------
-------------------------------------------------------------
Total operational segment result 2 542 2 128 10 202
IFRS amortisation -511 -514 -2 020
-------------------------------------------------------------
Operating profit 2 031 1 615 8 182
Net sales by business lines
(1 000 EUR) 1-3/2012 1-3/2011 2011
----------------------------
----------------------------
Information Management Solutions 30 993 27 544 116 812
Geographic Information Services 2 864 2 823 11 533
Other -318 -246 -1 076
-------------------------------------------------------------
-------------------------------------------------------------
Group total 33 540 30 121 127 270
2.3. Changes in intangible and tangible assets
(1 000 EUR) 1-3/2012 1-3/2011 1-12/2011
------------------------------
------------------------------
Carrying amount at the beginning of period 81 127 82 873 82 873
Additions 410 490 1 416
Disposals - -7 -7
Depreciation and amortization for the period -834 -861 - 3 424
Exchange rate differences 483 13 269
---------------------------------------------------------------------------
Carrying amount at the end of period 81 185 82 508 81 127
2.4. Interest-bearing liabilities
(1 000 EUR) 31.3.2012 31.12.2011
Interest-bearing non-current liabilities
Loans from financial institutions, 30 363 30 355
non-current portion
Loans from financial institutions, 4 000 4 000
current portion
---------------------------------------------------------------
---------------------------------------------------------------
34 363 34 355
Affecto's loan facility agreement includes financial covenants, breach of which
might lead to an increase in cost of debt or cancellation of the facility
agreement. The covenants are based on total net debt to earnings before
interest, taxes, depreciation and amortization and total net debt to total
equity. The covenants will be measured quarterly, and these terms and
conditions of covenants were met at the end of the reporting period.
2.5. Contingencies and commitments
The future aggregate minimum lease payments under non-cancelable operating
leases:
(1 000 EUR) 31.3.2012 31.12.2011
Not later than one (1) year 3 464 4 046
Later than one (1) year, 6 733 7 526
but not later than five (5) years
Later than five (5) years 488 614
--------------------------------------------------------
Total 10 685 12 186
Guarantees given:
(1 000 EUR) 31.3.2012 31.12.2011
Liabilities secured by a mortgage
Financial loans 34 500 34 500
The above-mentioned liabilities are secured by bearer bonds with a nominal
value of 52.5 million euro. The bonds are held by Nordea Pankki Suomi Oyj and
secured by a mortgage on company assets of the group companies. In addition,
the shares in Affecto Finland Oy and Affecto Norway AS have been pledged to
secure the financial liabilities above.
Other securities given on own behalf:
(1 000 EUR) 31.3.2012 31.12.2011
Pledges 14 30
Other guarantees 1 987 2 073
Other guarantees are mostly securities issued for customer projects. These
guarantees include both bank guarantees secured by parent company of the group
and guarantees issued by the parent company and subsidiaries.
2.6. Derivative contracts
(1 000 EUR) 31.3.2012 31.12.2011
Interest rate swaps:
Nominal value 20 250 20 250
Fair value -370 -475
2.7. Related party transactions
Key management compensation and remunerations to the board of directors:
(1 000 EUR) 1-3/2012 1-3/2011 1-12/2011
Salaries and other short-term employee benefits 594 660 2 203
Post-employment benefits 90 118 384
Share-based payments 5 12 30
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Total 690 791 2 616
Loans to related party:
(1 000 EUR) 3/2012 3/2011 12/2011
Loans to key management of the group 1 647 1 637 1 625
3. Key figures
1-3/2012 1-3/2011 2011
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----------------------------
Net sales, 1 000 eur 33 540 30 121 127 270
EBITDA, 1 000 eur 2 866 2 476 11 608
Operational segment result, 2 542 2 128 10 202
1 000 eur
Operating result, 1 000 eur 2 031 1 615 8 182
Result before taxes, 1 000 eur 1 879 1 472 7 087
Profit attributable to the owners 1 481 1 186 5 328
of the parent company, 1 000 eur
EBITDA, % 8.5 % 8.2 % 9.1 %
Operational segment result, % 7.6 % 7.1 % 8.0 %
Operating result, % 6.1 % 5.4 % 6.4 %
Result before taxes, % 5.6 % 4.9 % 5.6 %
Net income for equity holders 4.4 % 3.9 % 4.2 %
of the parent company, %
Equity ratio, % 49.7 % 45.5 % 46.1 %
Net gearing, % 30.8 % 37.1 % 27.1 %
Interest-bearing net debt, 19 284 20 785 16 391
1 000 eur
Gross investment in non-current 410 490 1 416
assets (excl. acquisitions),
1 000 eur
Gross investments, % of net sales 1.2 % 1.6 % 1.1 %
Research and development costs, 44 303 717
1 000 eur
R&D -costs, % of net sales 0.1 % 1.0 % 0.6 %
Order backlog, 1 000 eur 51 287 51 155 57 110
Average number of employees 1 076 974 1 011
Earnings per share, eur 0.07 0.06 0.26
Earnings per share (diluted), 0.07 0.06 0.25
eur
Equity per share, eur 3.00 2.69 2.91
Average number of shares, 20 693 20 693 20 693
1 000 shares
Number of shares at the end of 20 693 20 693 20 693
period, 1 000 shares
Calculation of key figures
EBITDA = Earnings before interest, taxes,
depreciation, amortization and impairment losses
Operational segment result = Operating profit before amortizations on
fair value adjustments due to business
combinations (IFRS3) and Goodwill
impairments
Equity ratio, % = Total equity *100
________________________________
Total assets - advance payments
Gearing, % = Interest-bearing liabilities - cash *100
and cash equivalents
__________________________________
Total equity
Interest-bearing net debt = Interest-bearing liabilities - cash and
cash equivalents
Earnings per share (EPS) = Profit attributable to owners of the parent
company
______________________________________
Weighted average number of ordinary shares in
issue during the period
Equity per share = Total equity
______________________________________
Adjusted number of shares at the end of
the period
Market capitalization = Number of shares at the end of period
(excluding company's own shares held by
the company) x share price at closing date
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Additional information:
CEO Pekka Eloholma, +358 205 777 737
CFO Satu Kankare, +358 205 777 202
SVP, M&A, IR, Hannu Nyman, +358 205 777 761
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