2009-08-06 08:00:00 CEST
2009-08-06 08:00:08 CEST
REGULATED INFORMATION
Digia Oyj - Interim report (Q1 and Q3)
DIGIA PLC'S SECOND QUARTER 2009 (IFRS)
DIGIA PLC INTERIM REPORT 6 AUGUST 2009 at 9:00 a.m. DIGIA PLC'S SECOND QUARTER 2009 (IFRS) Summary January-June - Consolidated net sales: EUR 61.9 million, down 4.5 per cent - Consolidated operating profit: EUR 8.1 million, up 1.8 per cent - Profitability (EBIT-%): 13.1 per cent (1-6/2008: 12.3 per cent) - Product business accounted for 16.5 per cent of net sales (1-6/2008: 14.0 per cent) - Earnings per share: EUR 0.25, up 8.7 per cent April-June - Consolidated net sales: EUR 31.0 million, down 6.4 per cent - Consolidated operating profit: EUR 4.4 million, up 18.7 per cent - Profitability (EBIT-%): 14.3 per cent (4-6/2008: 11.3 per cent) - Product business accounted for 18.9 per cent of net sales (4-6/2008: 14.9 per cent) - Earnings per share: EUR 0.14, up 27.3 per cent In the first half of the year, the company had excellent success in achieving its objectives in maintaining both good profitability and strong positive cash flow as well as lowering its gearing ratio. Profitability was even better in the second quarter than in the first. A total of EUR 15 million in interest-bearing liabilities were repaid during the reporting period. The company forecasts that general economic uncertainty will continue in the market during the rest of the year and that overall demand will weaken compared with last year. In preparation, the company will continue to carry out and step up measures to improve cost-effectiveness in all subareas of its operations. The company will also further increase its outlays on sales and business development with a view to creating long-term growth. With these actions, the company believes that it will maintain its profitability at a good level during the second half of the year as well. GROUP'S KEY FIGURES -------------------------------------------------------------------------------- | | 4-6/20 | 4-6/20 | Change | 1-6/20 | 1-6/20 | Change | 2008 | | | 09 | 08 | ,% | 09 | 08 | ,% | | -------------------------------------------------------------------------------- | Net sales | 31,018 | 33,133 | -6% | 61,864 | 64,812 | -5% | 123,203 | -------------------------------------------------------------------------------- | Operating | 4,438 | 3,739 | 19% | 8,111 | 7,966 | 2% | 13,437 | | profit | | | | | | | | -------------------------------------------------------------------------------- | - % of net | 14% | 11% | | 13% | 12% | | 11% | | sales | | | | | | | | -------------------------------------------------------------------------------- | Net profit | 2,860 | 2,286 | 25% | 5,045 | 4,757 | 6% | 7,409 | -------------------------------------------------------------------------------- | - % of net | 9% | 7% | | 8% | 7% | | 6% | | sales | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Return on | 15% | 13% | | 14% | 14% | | 11% | | equity, % | | | | | | | | -------------------------------------------------------------------------------- | Return on | 15% | 12% | | 13% | 13% | | 11% | | investment, | | | | | | | | | % | | | | | | | | -------------------------------------------------------------------------------- | Interest-bea | 41,715 | 56,623 | -26% | 41,715 | 56,623 | -26% | 56,950 | | ring | | | | | | | | | liabilities | | | | | | | | -------------------------------------------------------------------------------- | Cash and | 12,710 | 15,942 | -20% | 12,710 | 15,942 | -20% | 18,879 | | cash | | | | | | | | | equivalents | | | | | | | | -------------------------------------------------------------------------------- | Net gearing, | 38% | 58% | | 38% | 58% | | 53% | | % | | | | | | | | -------------------------------------------------------------------------------- | Equity | 53% | 45% | | 53% | 45% | | 47% | | ratio, % | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.14 | 0.11 | 27% | 0.25 | 0.23 | 9% | 0.36 | | share, EUR, | | | | | | | | | undiluted | | | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.14 | 0.11 | 27% | 0.25 | 0.23 | 9% | 0.36 | | share, EUR, | | | | | | | | | diluted | | | | | | | | -------------------------------------------------------------------------------- MARKETS AND DIGIA'S BUSINESS Uncertainty in the markets remained strong during the reporting period and also impacted on demand for the company's services in all its main business areas, as evident from the year-on-year decline in net sales. Second-quarter net sales grew slightly compared with the first quarter. In spite of the challenging market, the company had excellent success in maintaining both good profitability in its operations and strong positive cash flow during the entire reporting period. Second-quarter operating profit and earnings per share grew compared with both the first quarter and the corresponding period of the previous year. Both were at a very good level, considering the current market conditions. Thanks to its robust cash flow, the company was able to substantially reduce its gearing ratio during the reporting period. The company repaid EUR 15 million in long-term loans, after which interest-bearing liabilities stood at a total of EUR 41.7 million. During the reporting period, the company's international operations focused on China. The operations of the Chengdu unit, which was opened last year, developed in line with plans during the reporting period. In addition, the company opened a new location in Beijing during the second quarter. These measures are geared towards honing the cost-effectiveness and competitiveness of the company's operations and expanding its current clientele. Enterprise Solutions: The company's Enterprise Solutions business maintained excellent profitability during the entire reporting period and posted substantial year-on-year growth thanks to the operational efficiency ushered in by the new organisation. Requests for tenders from the public administration sector showed indications of a slight recovery, particularly in the second quarter, but the market situation in other business areas remains highly challenging. That said, in light of the current conditions, the business operations of Enterprise Solutions are on a solid footing overall, and the company expects the profitability of operations to remain good in the second half of the year as well. Mobile Solutions: The net sales and earnings of the Mobile Solutions business declined compared with the corresponding period of the previous year. The main reason for this decline was the bankruptcy of a Swedish software company UIQ, which led to the loss of net sales, which in the 2008 comparison period amounted to EUR 4.5 million. In addition, customers pushed back projects, which was reflected in the net sales and profitability of the Mobile Solutions business during the reporting period. However, the earnings of the Mobile Solutions business remained satisfactory in spite of the challenging market. A positive development seen in the second quarter was the increase in new requests for tenders for open architecture solutions (LINUX). Business in China grew in Chengdu and on the heels of the opening of the new location in Beijing. RISKS AND UNCERTAINTIES The key risks and uncertainties of the company's business have remained unchanged. Short-term uncertainties are related to any major changes occurring in the company's core markets and the impacts of the prevailing economic recession on Digia customers' investment decisions and their liquidity, and thus also on the company's net sales and earnings. The lengthening of the recession might weaken the financial positions of customers and lead to payment difficulties, which could mean credit losses or the impairment of assets. Indications already exist that the financial situation has impacted on investment decisions, liquidity and the pushing back of planned projects. Furthermore, the growth in customer project size increases the risks related to projects and their profitability. PROSPECTS FOR THE FUTURE Digia's main goals for 2009 are to maintain strong positive cash flow and good profitability and to bolster its balance sheet by decreasing indebtedness. The company will continue to pursue the conservative internationalisation of its business operations, making a concerted effort to seek opportunities for enlarging and developing its product business. The company will continue to step up its operations in countries with favourable cost levels, especially China. The company expects that the general economic uncertainty will continue and impact on customers' IT investments during the entire latter half of the year. The company estimates that the IT market as a whole will decline somewhat during 2009 compared with 2008, impacting on the trend in Digia's net sales. Despite the general decline in demand, the company believes that it will be able to maintain its profitability at a good level during the second half of 2009, accounting for the fact that personnel holidays typically weaken net sales and earnings in the third quarter. Digia's long-term focus is first and foremost to strengthen its organic growth and maintain good cash flow. The company will continue to develop its sales and make outlays on actions to improve the cost-effectiveness of operations. NET SALES Digia's consolidated net sales during the reporting period amounted to EUR 61.9 million, down 4.5 per cent (1-6/2008: EUR 64.8 million). The Enterprise Solutions segment posted net sales of EUR 36.5 million during the reporting period, up 1.6 per cent (1-6/2008: EUR 35.9 million). The net sales of the Mobile Solutions segment were EUR 25.4 million, down 12.2 per cent (1-6/2008: EUR 28.9 million). During the reporting period, the product business accounted for EUR 10.2 million (1-6/2008: EUR 9.1 million) of consolidated net sales, or 16.5 per cent (1-6/2008: 14.0 per cent). International operations accounted for EUR 5.2 million (1-6/2008: EUR 8.6 million) of consolidated net sales during the review period, or 8.4 per cent (1-6/2008: 13.2 per cent). The 2008 comparison period includes EUR 4.5 million in net sales from a Swedish software company UIQ. Digia's consolidated second-quarter net sales amounted to EUR 31.0 million, down 6.4 per cent (4-6/2008: EUR 33.1 million). The second-quarter net sales of the Enterprise Solutions segment posted EUR 18.9 million, up 2.1 per cent (4-6/2008: EUR 18.5 million). Net sales of the Mobile Solutions segment were EUR 12.1 million, a decrease of 17.2 per cent (4-6/2008: EUR 14.6 million). During the second quarter, the product business accounted for EUR 5.9 million (4-6/2008: EUR 4.9 million) of consolidated net sales, or 18.9 per cent (4-6/2008: 14.9 per cent). International operations accounted for EUR 2.5 million (4-6/2008: EUR 4.0 million) of consolidated second-quarter net sales, or 8.1 per cent (4-6/2008: 11.9 per cent). PROFIT PERFORMANCE AND PROFITABILITY Digia's consolidated operating profit (EBIT) for the review period amounted to EUR 8.1 million, a 1.8 per cent year-on-year increase (1-6/2008: EUR 8.0 million). Profitability (EBIT-%) was 13.1 per cent (1-6/2008: 12.3 per cent). The Enterprise Solutions segment recorded an operating profit of EUR 6.0 million for the review period, up 70.0 per cent (1-6/2008: EUR 3.5 million). The Mobile Solutions segment posted an operating profit of EUR 2.1 million, down 52.1 per cent (1-6/2008: EUR 4.4 million). Digia's consolidated operating profit (EBIT) for the second quarter was EUR 4.4 million, an 18.7 per cent year-on-year increase (4-6/2008: EUR 3.7 million). Profitability (EBIT-%) was 14.3 per cent (4-6/2008: 11.3 per cent). The Enterprise Solutions segment recorded an operating profit of EUR 3.7 million for the second quarter, up 103.3 per cent (4-6/2008: EUR 1.8 million). The Mobile Solutions segment posted an operating profit of EUR 0.7 million, down 62.7 per cent (4-6/2008: EUR 1.9 million). The Group's reported earnings before tax for the review period were EUR 6.9 million, an increase of 7.6 per cent (1-6/2008: EUR 6.4 million) and net profit was EUR 5.0 million, up 6.0 per cent (1-6/2008: EUR 4.8 million). The Group's reported earnings before tax for the second quarter were EUR 3.9 million, rising by 29.8 per cent (4-6/2008: EUR 3.0 million), and net profit amounted to EUR 2.9 million, up 25.1 per cent (4-6/2008: EUR 2.3 million). Earnings per share for the review period were EUR 0.25, representing growth of 8.7 per cent (1-6/2008: EUR 0.23). Second-quarter earnings per share amounted to EUR 0.14, up 27.3 per cent (4-6/2008: EUR 0.11). The Group's net financial expenses were EUR 1.2 million for the reporting period (1-6/2008: EUR 1.5 million) and EUR 0.5 million for the second quarter (4-6/2008: EUR 0.7 million). FINANCIAL POSITION AND CAPITAL EXPENDITURE At the end of the reporting period, the Digia Group's consolidated balance sheet total stood at EUR 145.1 million (2008: EUR 153.4 million) and the equity ratio was 53.0 per cent (2008: 47.1 per cent). Net gearing was 37.9 per cent (2008: 52.8 per cent). Liquid assets at the end of the period totalled EUR 12.7 million (2008: EUR 18.9 million), and interest-bearing liabilities amounted to EUR 41.7 million (2008: EUR 56.9 million). Interest-bearing liabilities comprise EUR 40.0 million in loans from financial institutions, EUR 1.4 million in financial leasing liabilities and EUR 0.3 million in product development loans. In the current conditions, impairment tests in accordance with the IAS 36 standard are applied each quarter to goodwill and intangible assets with an unlimited useful life. As from 1 January 2009, the allocation of goodwill was changed in line with the new segment structure. Goodwill is now allocated to Enterprise Solutions and to Mobile Solutions. The table below shows goodwill and values subject to testing, by business segment, at the end of the reporting period: -------------------------------------------------------------------------------- | EUR 1,000 | Specified | Depreciatio | Goodwill | Other | Total value | | | intangibl | n during | | items | subject to | | | e assets | the | | | testing | | | | reporting | | | | | | | period | | | | -------------------------------------------------------------------------------- | Enterprise | 4,614 | 458 | 43,244 | 4,254 | 52,112 | | Solutions | | | | | | -------------------------------------------------------------------------------- | Mobile | 6,691 | 583 | 46,138 | 4,257 | 57,086 | | Solutions | | | | | | -------------------------------------------------------------------------------- | Digia | 11,306 | 1,042 | 89,381 | 8,511 | 109,198 | | Group, | | | | | | | total | | | | | | -------------------------------------------------------------------------------- Present values are determined on the basis of actual operating profit and five-year forecasts by the CGU, with growth being three per cent and the operating margin between 8 and 11 per cent. As regards the current year both growth and profitability are, however, updated in the calculations to correspond with the company management's view on the current market development. Cash flows following the forecast period are estimated by extrapolating the cash flows, using a steady net sales growth forecast of three per cent, with operating profit estimated at 8-10 per cent of net sales. Discount rates have been determined in view of the industry's general risk level, corresponding to an annual interest rate of 11 per cent. Net sales growth is reckoned to constitute the most critical factor in calculating the present values of cash flows. The amount of goodwill for Enterprise Solutions requires average annual growth of two per cent for business operations and six per cent profitability before amortisation of intangible assets. The amount of goodwill for Mobile Solutions requires average annual long-term growth of around two per cent for business operations and 10 per cent profitability before amortisation of intangible assets. Based on a reasonable estimate, any change in key variables used in calculations during the reporting period would not lead to a situation in which the segment's carrying amount would exceed its value in use. Consequently, in the management's view, there is no need to recognise impairment losses. That said, from now on particular attention will be paid to the trend in the business operations of Mobile Solutions. The Group's cash flow from operations for the reporting period was positive by EUR 9.5 million (1-6/2008: positive cash flow of EUR 11.1 million), cash flow from investments was negative by EUR 0.5 million (1-6/2008: negative EUR 4.1 million) and cash flow from financing was negative by EUR 15.2 million (1-6/2008: negative EUR 2.9 million). Cash flow from financing was affected negatively by the repayment of short-term loans in connection with the restructuring of loans, with a negative impact of EUR 5.0 million, as well as the repayment of EUR 10.0 million in loans in the second quarter. The company paid the additional purchase price for Sunrise Resources Oy - EUR 0.6 million - with its own shares during the second quarter. The Group's total investments in fixed assets during the reporting period amounted to EUR 0.5 million (1-6/2008: EUR 1.3 million). The Group's investments in tangible fixed assets were EUR 0.5 million (1-6/2008: EUR 1.0 million). Return on investment (ROI) for the period was 13.4 per cent (12/2008: 11.3 per cent) and return on equity (ROE) was 13.6 per cent (12/2008: 10.5 per cent). HUMAN RESOURCES, MANAGEMENT AND ADMINISTRATION At the end of the period, the number of Digia Group personnel totalled 1,367, representing an increase of 30 employees, or 2.2 per cent, since the end of fiscal 2008 (2008: 1,337). During the reporting period, the number of employees averaged 1,342, an increase of 28 employees, or 2.1 per cent compared to 2008 (2008: 1,314). Employees by function at the end of the period: -------------------------------------------------------------------------------- | Enterprise Solutions | 45% | -------------------------------------------------------------------------------- | Mobile Solutions | 51% | -------------------------------------------------------------------------------- | Administration and management | 4% | -------------------------------------------------------------------------------- As of the end of the period, a total of 160 employees were working abroad (2008: 123). Digia Plc's Annual General Meeting of 10 March 2009 re-elected Pekka Sivonen, Pertti Kyttälä, Kari Karvinen and Martti Mehtälä as members of the Board and elected Heikki Mäkijärvi and Jari Pasanen as new members. At the organisation meeting of the Board, Pekka Sivonen was elected as its full-time Chairman and Pertti Kyttälä as the Vice Chairman. Juha Varelius has been Digia Plc's President and CEO since 1 January 2008. Ernst & Young Oy, a firm of authorised public accountants, is the Group's auditor, with Heikki Ilkka, Authorised Public Accountant, as chief auditor. RELATED PARTY TRANSACTIONS The Digia Group's related parties include the CEO and the members of the Board of Directors and the Group Management Team. The Digia Group had no significant transactions with related parties during the review period. GROUP STRUCTURE AND ORGANISATION At the end of the period, the Digia Group consisted of parent company Digia Plc and its active subsidiaries: Digia Finland Ltd (parent company holding 100%), Digia Sweden AB (100%), Digia Estonia Oü (100%), Digia Hong Kong Ltd (100%) and Sunrise Resources Oy (100%). Digia Finland Ltd also has the wholly-owned active subsidiaries Digia Service Ltd (100%) and Digia Financial Software Ltd (100%). The company intends to merge Digia Service Ltd into Digia Finland Ltd during 2009. Digia Hong Kong Ltd has a wholly-owned company, Digia Software (Chengdu) Co. Ltd (100%), operating in China, which registered a branch in Beijing during the reporting period (18 June 2009). Sunrise Resources Oy has a subsidiary OOO Sunrise-r Spb (100%) operating in Russia. SHAREHOLDERS' MEETINGS Annual General Meeting on 10 March 2009 Convening on 10 March 2009, Digia Plc's Annual General Meeting (AGM) adopted the financial statements for 2008, released the Board members and the CEO from liability, determined Board emoluments, resolved to raise the number of Board members to six (6), and elected the company's Board of Directors for a new term. The AGM granted the following authorisations to the Board: Authorising the Board of Directors to decide on the payment of dividends The AGM authorised the Board of Directors to decide at its discretion, and when the financial situation of the company favours it, on the payment of dividend for 2008 such that: The dividend shall amount to no more than EUR 0.05 per share; The Board of Directors shall decide on the record date for the dividend and its payment date, which can at the earliest be the fifth banking day from the record date; and The authorisation shall be valid until the beginning of the next AGM. Authorising the Board of Directors to decide on a share issue and granting of special rights The AGM authorised the Board of Directors to decide on a rights issue or a capitalisation issue and on granting option rights and other special rights as set forth in Section 1, Chapter 10 of the Companies Act, subject to the following conditions: On the basis of the authorisation, the Board of Directors can decide on the conveyance in one or more instalments of a maximum total of 4,000,000 new or own shares held by the company; The Board of Directors is also entitled to decide on the sale of own shares in public trading. By virtue of the authorisation, the Board of Directors has the right to decide on share issues and the granting of special rights, waiving the pre-emptive subscription rights of the shareholders (directed issue); The Board of Directors is otherwise authorised to decide on all terms relating to the share issue, including the subscription price, its payment and its recognition in the company's balance sheet; and The authorisation replaces the authorisation granted by the Shareholders' Meeting on 11 March 2008 and shall be valid for 18 months from the issue date of the authorisation, i.e. until 10 September 2010. Authorising the Board of Directors to decide on the buyback of own shares The AGM authorised the Board of Directors to decide on the buyback of the company's own shares subject to the following conditions: A maximum total of 2,000,000 shares may be bought back in one or more instalments; The Board shall decide on how the shares are acquired. Own shares can be bought back in disproportion to the holdings of the shareholders. The authorisation also includes the acquisition of shares through public trading organised by NASDAQ OMX Helsinki Oy in accordance with its rules and instructions or through offers made to shareholders; The shares shall be acquired at the going price in public trading. The minimum price of the shares to be acquired shall be the lowest quotation in public trading while the authorisation is in force and correspondingly the maximum price shall be the highest quotation in public trading while the authorisation is in force; Own shares can be bought back only with non-restricted equity. Share buyback thus reduces the company's distributable funds; The Board of Directors is otherwise authorised to decide on all terms relating to share buyback; and The authorisation replaces the authorisation granted by the Shareholders' Meeting on 11 March 2008 and shall be valid for 18 months from the issue date of the authorisation, i.e. until 10 September 2010. On the basis of the authorisations granted by the AGM, the Board of Directors decided: At its meeting on 10 March 2009 to convey own shares as the additional purchase price agreed for Sunrise Resources Oy. The additional purchase price was EUR 576,413, which was paid by conveying 198,080 of the company's shares; and At its meeting on 12 June 2009 to pay a dividend of EUR 0.05 per share on shares not owned by the company to a maximum of EUR 1,024,289.55. The Board of Directors decided to set 26 June 2009 as the record date for the dividend and 3 July 2009 as its payment date. SHARE CAPITAL AND SHARES As of the end of the period, the number of Digia Plc shares totalled 20,853,645. According to Finnish Central Securities Depository Ltd, Digia had 3,690 shareholders on 30 June 2009. The ten major shareholders were: -------------------------------------------------------------------------------- | Shareholder | Percentage of shares and votes | -------------------------------------------------------------------------------- | Pekka Sivonen | 24.4% | -------------------------------------------------------------------------------- | Jyrki Hallikainen | 10.2% | -------------------------------------------------------------------------------- | Kari Karvinen | 7.6% | -------------------------------------------------------------------------------- | Matti Savolainen | 6.3% | -------------------------------------------------------------------------------- | Varma Mutual Pension Insurance Company | 3.6% | -------------------------------------------------------------------------------- | Veikko Laine Oy | 2.8% | -------------------------------------------------------------------------------- | Irish Life International | 1.3% | -------------------------------------------------------------------------------- | Evli Alexander Management Oy | 1.1% | -------------------------------------------------------------------------------- | Etra Trading Oy | 1.0% | -------------------------------------------------------------------------------- | Umo Capital Oy | 1.0% | -------------------------------------------------------------------------------- Distribution of holdings by number of shares held on 30 June 2009 -------------------------------------------------------------------------------- | Number of shares | Holding (%) | Shares and votes | -------------------------------------------------------------------------------- | 1 - 100 | 19.8% | 0.3% | -------------------------------------------------------------------------------- | 101 - 1,000 | 52.7% | 4.6% | -------------------------------------------------------------------------------- | 1,001 - 10,000 | 24.3% | 12.1% | -------------------------------------------------------------------------------- | 10,001 - 100,000 | 2.6% | 13.4% | -------------------------------------------------------------------------------- | 100,001 - 1,000,000 | 0.6% | 21.2% | -------------------------------------------------------------------------------- | 1,000,001 - 3,000,000 | 0.1% | 48.6% | -------------------------------------------------------------------------------- Shareholding by sector on 30 June 2009 -------------------------------------------------------------------------------- | | Holding (%) | Shares (%) | -------------------------------------------------------------------------------- | Companies | 5.8% | 10.0% | -------------------------------------------------------------------------------- | Financial institutions and | 0.4% | 4.0% | | insurance companies | | | -------------------------------------------------------------------------------- | Non-corporate public sector | 0.1% | 3.8% | -------------------------------------------------------------------------------- | Non-profit organisations | 0.4% | 0.4% | -------------------------------------------------------------------------------- | Households | 92.9% | 80.4% | -------------------------------------------------------------------------------- | Foreign ownership | 0.5% | 1.4% | -------------------------------------------------------------------------------- REPORTED SHARE PERFORMANCE ON THE HELSINKI STOCK EXCHANGE During the review period, Digia Plc shares were listed on the Nordic Exchange under Information Technology IT Services. The company's short name is DIG1V. The lowest reported share quotation was EUR 1.39 and the highest was EUR 2.23, with the share closing at EUR 2.10 on the final trading day. The trading-weighted average was EUR 1.83. The Group's market capitalisation totalled EUR 43,792,655 at the end of the period. The company received the following flagging notifications during the reporting period: - Jyrki Hallikainen announced on 6 March 2009 that his holding in the company had exceeded the 5% flagging threshold and amounted to 9.12% of the company's shares and votes. - Jyrki Hallikainen announced on 27 March 2009 that his holding in the company had exceeded the 10% flagging threshold and amounted to 10.24%. STOCK OPTION SCHEMES Digia Plc's current option schemes include the stock option scheme 2005A-C, on the basis of which a maximum number of 900,000 Digia shares can be subscribed. On 30 June 2009, the remaining number of warrants issued by Digia totalled 900,000. Shares subscribed for using the warrants represent a maximum of 4.13 per cent of the company's share capital and voting rights after any potential increase in share capital. On 30 June 2009, the number of valid warrants still held by Digia totalled 527,000. The maximum dilution effect of the issued warrants stood at 1.8 per cent on 30 June 2009. Helsinki, 6 August 2009 Digia Plc Board of Directors BRIEFING FOR MEDIA AND ANALYSTS Digia will hold a briefing on its financial statements for analysts and the media on Thursday, 6 August 2009 at 11.00 a.m. at the Pavilion Cabinet of Scandic Hotel Simonkenttä, Simonkatu 9, 00100 Helsinki, Finland. All are welcome. Company will disclose its Interim Report for Q3 2009 on Friday 30 October 2009 at 9.00 a.m. FURTHER INFORMATION Juha Varelius, President and CEO Mobile: +358 400 855849, email: juha.varelius@digia.com Kjell Lindqvist, CFO Mobile: +358 40 8230733, email: kjell.lindqvist@digia.com The interim report and access to the related live briefing for the media and analysts (in Finnish) will be available in the Investors' section at www.digia.com beginning at 11 a.m. DISTRIBUTION NASDAQ OMX Helsinki Key media ATTACHMENTS Consolidated income statement Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in shareholders' equity Notes to the accounts The interim report has been prepared in compliance with IFRS and standard IAS 34. This interim report is based on unaudited figures. CONSOLIDATED INCOME STATEMENT, EUR 1,000 -------------------------------------------------------------------------------- | | 4-6/20 | 4-6/20 | Change | 1-6/200 | 1-6/200 | Change, | 2008 | | | 09 | 08 | , % | 9 | 8 | % | | -------------------------------------------------------------------------------- | NET SALES | 31,017 | 33,133 | -6% | 61,864. | 64,811. | -5% | 123,203 | | | .9 | .1 | | 4 | 6 | | .4 | -------------------------------------------------------------------------------- | Other | 44.1 | 4.0 | 1015% | 47.4 | 9.3 | 412% | 59.6 | | operating | | | | | | | | | income | | | | | | | | -------------------------------------------------------------------------------- | Materials | -2,737 | -3,271 | -16% | -4,458. | -6,093. | -27% | -10,048 | | and | .3 | .2 | | 6 | 7 | | .7 | | services | | | | | | | | -------------------------------------------------------------------------------- | Depreciat | -1,107 | -1,159 | -4% | -2,212. | -2,436. | -9% | -4,762. | | ion and | .3 | .4 | | 2 | 2 | | 6 | | impairmen | | | | | | | | | t | | | | | | | | -------------------------------------------------------------------------------- | Other | -22,77 | -24,96 | -9% | -47,129 | -48,324 | -2% | -95,014 | | operating | 9.4 | 7.9 | | .9 | .8 | | .3 | | expenses | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Operating | 4,438. | 3,738. | 19% | 8,111.0 | 7,966.2 | 2% | 13,437. | | profit | 1 | 6 | | | | | 4 | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Financial | -522.8 | -721.4 | -28% | -1,176. | -1,518. | -23% | -3,031. | | expenses | | | | 0 | 5 | | 3 | | (net) | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Pre-tax | 3,915. | 3,017. | 30% | 6,935.0 | 6,447.7 | 8% | 10,406. | | profit | 3 | 2 | | | | | 1 | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Income | -1,055 | -731.6 | 44% | -1,890. | -1,690. | 12% | -2,997. | | taxes | .3 | | | 0 | 2 | | 1 | -------------------------------------------------------------------------------- | NET | 2,859. | 2,285. | 25% | 5,045.1 | 4,757.5 | 6% | 7,409.0 | | PROFIT | 9 | 6 | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Component | | | | | | | | | s of | | | | | | | | | comprehen | | | | | | | | | sive | | | | | | | | | income | | | | | | | | | statement | | | | | | | | | : | | | | | | | | -------------------------------------------------------------------------------- | Exchange | 20.4 | -7.2 | -384% | 10.8 | 0.3 | 3508% | -242.4 | | differenc | | | | | | | | | es on | | | | | | | | | translati | | | | | | | | | ng | | | | | | | | | foreign | | | | | | | | | operation | | | | | | | | | s | | | | | | | | -------------------------------------------------------------------------------- | TOTAL | 2,880. | 2,278. | 26% | 5,055.9 | 4,757.8 | 6% | 7,166.6 | | COMPREHEN | 4 | 4 | | | | | | | SIVE | | | | | | | | | INCOME | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Distribut | | | | | | | | | ion of | | | | | | | | | net | | | | | | | | | profit: | | | | | | | | -------------------------------------------------------------------------------- | Parent | 2,859. | 2,285. | 25% | 5,045.1 | 4,757.5 | 6% | 7,409.0 | | company | 9 | 6 | | | | | | | sharehold | | | | | | | | | ers | | | | | | | | -------------------------------------------------------------------------------- | Minority | 0.0 | 0.0 | | 0.0 | 0.0 | | 0.0 | | sharehold | | | | | | | | | ers | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Distribut | | | | | | | | | ion of | | | | | | | | | comprehen | | | | | | | | | sive | | | | | | | | | income: | | | | | | | | -------------------------------------------------------------------------------- | Parent | 2,880. | 2,278. | 26% | 5,055.9 | 4,757.8 | 6% | 7,166.6 | | company | 4 | 4 | | | | | | | sharehold | | | | | | | | | ers | | | | | | | | -------------------------------------------------------------------------------- | Minority | 0.0 | 0.0 | | 0.0 | 0.0 | | 0.0 | | sharehold | | | | | | | | | ers | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | -------------------------------------------------------------------------------- | Earnings | 0.14 | 0.11 | 27% | 0.25 | 0.23 | 9% | 0.36 | | per | | | | | | | | | share, | | | | | | | | | EUR | | | | | | | | -------------------------------------------------------------------------------- | Earnings | 0.14 | 0.11 | 27% | 0.25 | 0.23 | 9% | 0.36 | | per | | | | | | | | | share, | | | | | | | | | EUR, | | | | | | | | | diluted | | | | | | | | -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET, EUR 1,000 -------------------------------------------------------------------------------- | Assets | 30 Jun. 2009 | 31 Dec. 2008 | Change, % | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Intangible assets | 101,431.5 | 103,045.2 | -2% | -------------------------------------------------------------------------------- | Tangible assets | 2,783.7 | 3,125.6 | -11% | -------------------------------------------------------------------------------- | Long-term investments | 628.0 | 628.0 | 0% | -------------------------------------------------------------------------------- | Deferred tax assets | 1,298.0 | 1,756.1 | -26% | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Total non-current | 106,141.2 | 108,554.9 | -2% | | assets | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Current receivables | 26,290.9 | 25,957.4 | 1% | -------------------------------------------------------------------------------- | Available-for-sale | 273.2 | 273.2 | 0% | | financial assets | | | | -------------------------------------------------------------------------------- | Cash and cash | 12,436.9 | 18,605.6 | -33% | | equivalents | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Total current assets | 39,001.0 | 44,836.3 | -13% | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Total assets | 145,142.2 | 153,391.2 | -5% | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity | 30 Jun. 2009 | 31 Dec. 2008 | Change, % | | and liabilities | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Share capital | 2,085.4 | 2,085.4 | 0% | -------------------------------------------------------------------------------- | Premium fund | 7,899.5 | 7,899.5 | 0% | -------------------------------------------------------------------------------- | Other reserves | 5,203.8 | 5,203.8 | 0% | -------------------------------------------------------------------------------- | Unrestricted invested | 35,447.8 | 34,938.2 | 1% | | shareholders' equity | | | | -------------------------------------------------------------------------------- | Translation difference | -243.4 | -254.3 | -4% | -------------------------------------------------------------------------------- | Retained earnings | 21,041.8 | 14,801.0 | 42% | -------------------------------------------------------------------------------- | Net profit | 5,045.1 | 7,409.0 | -32% | -------------------------------------------------------------------------------- | Shareholders' equity | 76,479.9 | 72,082.6 | 6% | | attributable to the | | | | | equity holders of the | | | | | parent company | | | | -------------------------------------------------------------------------------- | Minority interest | 0.0 | 0.0 | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Total shareholders' | 76,479.9 | 72,082.6 | 6% | | equity | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Liabilities | | | | -------------------------------------------------------------------------------- | Non-current | 37,828.4 | 935.2 | 3944.8% | | interest-bearing | | | | | liabilities | | | | -------------------------------------------------------------------------------- | Deferred tax | 3,054.3 | 3,137.8 | -3% | | liabilities | | | | -------------------------------------------------------------------------------- | Total non-current | 40,882.7 | 4,073.0 | 904% | | liabilities | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Current | 3,886.1 | 56,014.8 | -93% | | interest-bearing | | | | | liabilities | | | | -------------------------------------------------------------------------------- | Other current | 23,893.4 | 21,220.8 | 13% | | liabilities | | | | -------------------------------------------------------------------------------- | Total current | 27,779.6 | 77,235.6 | -64% | | liabilities | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Total liabilities | 68,662.3 | 81,308.6 | -16% | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Shareholders' equity | 145,142.2 | 153,391.2 | -5% | | and liabilities | | | | -------------------------------------------------------------------------------- CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000 -------------------------------------------------------------------------------- | Cash flow from operations: | 1 Jan. 2009 | 1 Jan. 2008 - | 1 Jan. 2008 - | | | - 30 Jun. | 30 Jun. 2008 | 31 Dec. 2008 | | | 2009 | | | -------------------------------------------------------------------------------- | Net profit | 5,045 | 4,757 | 7,409 | -------------------------------------------------------------------------------- | Adjustments to profit for the | 5,278 | 5,660 | 10,821 | | period | | | | -------------------------------------------------------------------------------- | Change in working capital | 1,345 | 2,684 | 1,321 | -------------------------------------------------------------------------------- | Interest paid | -1,078 | -1,621 | -3,533 | -------------------------------------------------------------------------------- | Interest income | 74 | 180 | 596 | -------------------------------------------------------------------------------- | Taxes paid | -1,128 | -517 | -1,141 | -------------------------------------------------------------------------------- | Cash flow from operations | 9,537 | 11,143 | 15,473 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Cash flow from investments: | | | | -------------------------------------------------------------------------------- | Investments in property, | -524 | -1,280 | -2,512 | | plant, equipment and | | | | | intangible assets | | | | -------------------------------------------------------------------------------- | Proceeds from sale of | - | - | - | | intangible assets and PPE | | | | -------------------------------------------------------------------------------- | Acquisitions of subsidiaries | - | -2,803 | -2,803 | -------------------------------------------------------------------------------- | Proceeds of sale of other | - | - | - | | investments | | | | -------------------------------------------------------------------------------- | Dividends received | - | - | - | -------------------------------------------------------------------------------- | Cash flow from investments | -524 | -4,083 | -5,315 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Cash flow from financing: | | | | -------------------------------------------------------------------------------- | Paid share issue | - | 7 | 7 | -------------------------------------------------------------------------------- | Purchase of own shares | -33 | -790 | -951 | -------------------------------------------------------------------------------- | Equity financing of | - | - | - | | share-based bonus scheme | | | | -------------------------------------------------------------------------------- | Repayment of current loans | -57,149 | -33 | -33 | -------------------------------------------------------------------------------- | Repayment of non-current | -8,000 | - | - | | loans | | | | -------------------------------------------------------------------------------- | Withdrawal of current loans | 5,000 | - | - | -------------------------------------------------------------------------------- | Withdrawal of non-current | 45,000 | - | - | | loans | | | | -------------------------------------------------------------------------------- | Dividends paid and other | - | -2,041 | -2,041 | | profit distribution | | | | -------------------------------------------------------------------------------- | Cash flow from financing | -15,182 | -2,858 | -3,019 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Change in cash and cash | -6,169 | 4,203 | 7,140 | | equivalents | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at | 18,879 | 11,739 | 11,739 | | the beginning of the period | | | | -------------------------------------------------------------------------------- | Change in fair value | - | - | - | -------------------------------------------------------------------------------- | Change in cash and cash | -6,169 | 4,203 | 7,140 | | equivalents | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at | 12,710 | 15,942 | 18,879 | | the end of the period | | | | -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, EUR 1,000 -------------------------------------------------------------------------------- | | a | b | c | d | e | f | g | -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY, | 2,08 | 7,89 | 38,111 | 5,204 | -12 | 15,322 | 68,602 | | 1 Jan. 2008 | 5 | 3 | | | | | | -------------------------------------------------------------------------------- | Net profit | | | | | | 4,757 | 4,757 | -------------------------------------------------------------------------------- | Other comprehensive | | | | | 0 | | 0 | | income | | | | | | | | -------------------------------------------------------------------------------- | Increase in share | | 7 | | | | | 7 | | capital | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | -2,041 | | | | -2,041 | -------------------------------------------------------------------------------- | Own share redemption | | | -1,000 | | | 210 | -790 | | fund | | | | | | | | -------------------------------------------------------------------------------- | Share-based payments | | | | | | -730 | -730 | | recognised against | | | | | | | | | equity | | | | | | | | -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY, | 2,08 | 7,89 | 35,069 | 5,204 | -12 | 19,559 | 69,806 | | 30 June 2008 | 5 | 9 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | a | b | c | d | e | f | g | -------------------------------------------------------------------------------- | Shareholders' | 2,08 | 7,89 | 34,938 | 5,204 | -254 | 22,210 | 72,083 | | equity, 1 Jan. 2009 | 5 | 9 | | | | | | -------------------------------------------------------------------------------- | Net profit | | | | | | 5,045 | 5,045 | -------------------------------------------------------------------------------- | Other comprehensive | | | | | 11 | | 11 | | income | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | -1,024 | -1,024 | -------------------------------------------------------------------------------- | Own share redemption | | | 510 | | | -169 | 340 | | fund | | | | | | | | -------------------------------------------------------------------------------- | Share-based payments | | | | | | 25 | 25 | | recognised against | | | | | | | | | equity | | | | | | | | -------------------------------------------------------------------------------- | SHAREHOLDERS' | 2,08 | 7,89 | 35,448 | 5,204 | -243 | 26,087 | 76,480 | | EQUITY, 30 June 2009 | 5 | 9 | | | | | | -------------------------------------------------------------------------------- a = share capital b = share premium c = unrestricted invested shareholders' equity reserve d = other reserves e = currency translation differences f = retained earnings g = total shareholders' equity NOTES TO THE ACCOUNTS: Accounting principles: The interim report has been drafted in line with IFRS. As from 1 January 2009, the Group has applied the following new and revised standards: IFRS 8 Operating Segments and IAS 1 Presentation of Financial Statements. In other respects, the same accounting principles have been applied as in the 2008 financial statements. The accounting principles and formulas for the calculation of key figures are unchanged and are presented in the 2008 financial statements. Seasonal nature of business: The Group's business is affected by the number of workdays each month as well as by holiday seasons. Dividends paid: No dividends were paid during the review period. On 12 June 2009, the Board of Directors resolved, in accordance with the authorisation granted by the Annual General Meeting held on 10 March 2009, to pay a dividend of EUR 0.05 per share for fiscal 2008 on shares not owned by the company to a maximum of EUR 1,024,289.55. The dividend was paid on 3 July 2009 to those shareholders who were entered in the shareholder register maintained by Euroclear Finland Oy (the former Finnish Central Securities Depository Ltd) on the record date, 26 June 2009. Interest hedge of bank loans: On 30 June 2009, the Group had a total of EUR 32 million in bank loans that are hedged with interest rate cap and floor agreements. The cap agreement covers loan capital of EUR 25 million and the floor agreement covers loan capital of EUR 12.5 million. The threshold interest rate is 5% and agreements that will expire on 9 November 2009 have been valued at fair value. Hedge accounting is not applied to the agreements. Events after the balance sheet date: No major events occurred after the reporting period. Segment information: Since the beginning of 2009, a new organisation has been in force, merging the company's sales, products, services and competencies. Digia's business operations are now divided into two main business segments: Enterprise Solutions and Mobile Solutions. Enterprise Solutions is divided into ERP and Financial Administration, Digital Services and Integration Solutions. The Mobile Solutions segment is divided into Contract Engineering Services and User Experience Services. -------------------------------------------------------------------------------- | NET | 4-6/20 | 4-6/20 | Change, | 1-6/20 | 1-6/20 | Change, | 2008 | | SALES, | 09 | 08 | % | 09 | 08 | % | | | EUR 1,000 | | | | | | | | -------------------------------------------------------------------------------- | Enterpris | 18,937 | 18,541 | 2.1% | 36,478 | 35,899 | 1.6% | 69,795 | | e | | | | | | | | | Solutions | | | | | | | | -------------------------------------------------------------------------------- | Mobile | 12,081 | 14,592 | -17.2% | 25,386 | 28,913 | -12.2% | 53,408 | | Solutions | | | | | | | | -------------------------------------------------------------------------------- | Digia | 31,018 | 33,133 | -6.4% | 61,864 | 64,812 | -4.5% | 123,203 | | Group | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING | 4-6/20 | 4-6/20 | Change | 1-6/20 | 1-6/200 | Change, | 2008 | | PROFIT, EUR | 09 | 08 | , % | 09 | 8 | % | | | 1,000 | | | | | | | | -------------------------------------------------------------------------------- | Enterprise | 3,727 | 1,833 | 103.3% | 5,981 | 3,518 | 70.0% | 8,821 | | Solutions | | | | | | | | -------------------------------------------------------------------------------- | Mobile | 711 | 1,906 | -62.7% | 2,130 | 4,448 | -52.1% | 4,617 | | Solutions | | | | | | | | -------------------------------------------------------------------------------- | Digia Group | 4,438 | 3,739 | 18.7% | 8,111 | 7,966 | 1.8% | 13,437 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS, EUR 1,000 | 30 Jun. 2009 | -------------------------------------------------------------------------------- | Enterprise Solutions | 64,568 | -------------------------------------------------------------------------------- | Mobile Solutions | 65,938 | -------------------------------------------------------------------------------- | Non-allocated | 14,636 | -------------------------------------------------------------------------------- | Digia Group | 145,142 | -------------------------------------------------------------------------------- Consolidated income statement by quarter: -------------------------------------------------------------------------------- | EUR 1,000 | 4-6/2009 | 1-3/2009 | 10-12/200 | 7-9/2008 | 4-6/2008 | | | | | 8 | | | -------------------------------------------------------------------------------- | Net sales | 31,017.9 | 30,846.4 | 32,761.6 | 25,630.2 | 33,133.1 | -------------------------------------------------------------------------------- | Other | 44.1 | 3.3 | 32.9 | 17.5 | 4.0 | | operating | | | | | | | income | | | | | | -------------------------------------------------------------------------------- | Materials and | -2,737.3 | -1,721.4 | -1,958.5 | -1,996.5 | -3,271.2 | | services | | | | | | -------------------------------------------------------------------------------- | Depreciation | -1,107.3 | -1,104.9 | -1,169.7 | -1,156.8 | -1,159.4 | | and impairment | | | | | | -------------------------------------------------------------------------------- | Other | -22,779.4 | -24,350.5 | -26,750.8 | -19,938.7 | -24,967.9 | | operating | | | | | | | expenses | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Operating | 4,438.1 | 3,672.9 | 2,915.5 | 2,555.7 | 3,738.6 | | profit | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Financial | -522.8 | -653.2 | -820.6 | -692.2 | -721.4 | | expenses (net) | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Pre-tax profit | 3,915.3 | 3,019.7 | 2,094.9 | 1,863.4 | 3,017.2 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Income taxes | -1,055.3 | -834.6 | -745.5 | -561.3 | -731.6 | -------------------------------------------------------------------------------- | Net profit | 2,859.9 | 2,185.1 | 1,349.4 | 1,302.1 | 2,285.6 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Distribution: | | | | | | -------------------------------------------------------------------------------- | Parent company | 2,859.9 | 2,185.1 | 1,349.4 | 1,302.1 | 2,285.6 | | shareholders | | | | | | -------------------------------------------------------------------------------- | Minority | 0.0 | 0.0 | 0.0 | 0 | 0.0 | | shareholders | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.14 | 0.11 | 0.07 | 0.06 | 0.11 | | share, EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per | 0.14 | 0.11 | 0.07 | 0.06 | 0.11 | | share, EUR, | | | | | | | diluted | | | | | | -------------------------------------------------------------------------------- Group key figures and ratios: -------------------------------------------------------------------------------- | | 1-6/2009 | 1-6/2008 | 2008 | -------------------------------------------------------------------------------- | Scope of operations | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Net sales | 61,864 | 64,812 | 123,203 | -------------------------------------------------------------------------------- | - change on previous year | -5% | 24% | 16% | -------------------------------------------------------------------------------- | Average capital invested | 123,614 | 125,722 | 127,023 | -------------------------------------------------------------------------------- | Personnel at end of period | 1,367 | 1,335 | 1,337 | -------------------------------------------------------------------------------- | Average number of personnel | 1,342 | 1,284 | 1,314 | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Profitability | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Operating profit | 8,111 | 7,966 | 13,437 | -------------------------------------------------------------------------------- | - % of net sales | 13% | 12% | 11% | -------------------------------------------------------------------------------- | Earnings before taxes | 6,935 | 6,448 | 10,406 | -------------------------------------------------------------------------------- | - % of net sales | 11% | 10% | 8% | -------------------------------------------------------------------------------- | Net profit | 5,045 | 4,757 | 7,409 | -------------------------------------------------------------------------------- | - % of net sales | 8% | 7% | 6% | -------------------------------------------------------------------------------- | Return on equity, % | 14% | 14% | 11% | -------------------------------------------------------------------------------- | Return on investment, % | 13% | 13% | 11% | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Financing and financial | | | | | position | | | | -------------------------------------------------------------------------------- | | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 41,715 | 56,623 | 56,950 | -------------------------------------------------------------------------------- | Short-term investments & cash | 12,710 | 15,942 | 18,879 | | and bank receivables | | | | -------------------------------------------------------------------------------- | Net gearing, % | 38% | 58% | 53% | -------------------------------------------------------------------------------- | Equity ratio, % | 53% | 45% | 47% | -------------------------------------------------------------------------------- | Cash flow from operations | 9,537 | 11,143 | 15,473 | -------------------------------------------------------------------------------- | Earnings per share, EUR, | 0.25 | 0.23 | 0.36 | | undiluted | | | | -------------------------------------------------------------------------------- | Earnings per share, EUR, | 0.25 | 0.23 | 0.36 | | diluted | | | | -------------------------------------------------------------------------------- | Equity per share | 3.67 | 3.35 | 3.46 | -------------------------------------------------------------------------------- | Lowest share price | 1.39 | 2.55 | 1.73 | -------------------------------------------------------------------------------- | Highest share price | 2.23 | 3.30 | 3.35 | -------------------------------------------------------------------------------- | Average share price | 1.83 | 3.04 | 2.83 | -------------------------------------------------------------------------------- | Market capitalisation | 43,793 | 61,727 | 38,788 | -------------------------------------------------------------------------------- The formulae for the key figures and ratios are available in the presentation of the year-end accounts. These formulae remained unchanged during the reporting period. The weighted average number of shares during the reporting period, adjusted for share issues, totalled 20,853,645. The weighted average number of shares during the reporting period, adjusted for dilution, totalled 20,853,645. The number of outstanding shares totalled 20,485,791 at the end of the reporting period. The company held a total of 129,964 treasury shares at the end of the reporting period. The accounting countervalue of own shares is EUR 0.10 per share. The company held about 0.6 per cent of the capital stock as of 30 June 2009. The buyback programme was terminated by the Board at its meeting on 3 February 2009. Relating to the company's performance-based incentive system, Digia has financed the acquisition of 300,000 own shares. In the coming years, these shares are intended for distribution to key personnel as rewards for targets achieved as per the conditions of the performance-based incentive system. In accordance with the Board of Directors' decision, performance-based incentives to key personnel will be paid in company shares. In June and July 2008, 62,110 of said 300,000 shares were distributed to key personnel as performance-based rewards for 2007.
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