2012-04-27 08:00:03 CEST
2012-04-27 08:00:17 CEST
REGULATED INFORMATION
Digia Oyj - Interim report (Q1 and Q3)
DIGIA PLC Q1 2012: FINNISH BUSINESS MET EXPECTATIONS, INVESTMENTS IN INTERNATIONAL PRODUCT BUSINESS WEAKENED PROFITABILITY
Helsinki, 2012-04-27 08:00 CEST (GLOBE NEWSWIRE) -- DIGIA PLC INTERIM REPORT 27
April 2012, 09:00 A.M.
DIGIA PLC Q1 2012: FINNISH BUSINESS MET EXPECTATIONS, INVESTMENTS IN
INTERNATIONAL PRODUCT BUSINESS WEAKENED PROFITABILITY
SUMMARY
January-March
- Consolidated net sales: EUR 26.1 (33.4) million, down 21.9 per cent
- Consolidated operating profit: EUR 1.4 (2.3) million, down 37.2 per cent
- Profitability (EBIT %): 5.4 (6.8) per cent
- Product business accounted for 27.0 (14.5) per cent
- International business accounted for 19.9 (7.5) per cent
- Earnings per share: EUR 0.04 (0.07)
As a consequence of a major reduction in demand for mobile contract engineering
services, the company's revenue and operating profit were significantly
diminished from the same period last year. The Finnish business progressed
according to plan during the period under review, with profitability close to
good level. Finances in the period were negatively affected by investments in
the international product business.
The Qt business advanced according to plan in the review period. Thanks to this
unit, the proportion of the company's product business and international
business grew significantly compared to the same period in the previous year.
They now form a significant portion of the company's entire business.
The company expects demand for Qt business to remain good and therefore the
income from the business to continue developing positively for the rest of the
year. The company's new organisation took effect at the beginning of the review
period. The changeover went smoothly. The company expects its operational
efficiency and income from international operations to improve and
profitability to return to good level during the rest of the year.
GROUP KEY FIGURES AND RATIOS
1-3/2012 1-3/2011 Change, %
--------------------------------------------------------------------------
Net sales 26,064 33,357 -21.9%
--------------------------------------------------------------------------
Operating profit before extraordinary items 1,419 2,259 -37.2%
--------------------------------------------------------------------------
- % of net sales 5.4% 6.8%
--------------------------------------------------------------------------
Operating profit 1,419 2,259 -37.2%
--------------------------------------------------------------------------
- % of net sales 5.4% 6.8%
--------------------------------------------------------------------------
Net profit 798 1,448 -44.9%
--------------------------------------------------------------------------
- % of net sales 3.1% 4.3%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Return on equity, % 8.1% 8.8%
--------------------------------------------------------------------------
Return on capital invested, % 9.5% 10.3%
--------------------------------------------------------------------------
Interest-bearing liabilities 20,619 22,951 -10.2%
--------------------------------------------------------------------------
Cash and cash equivalents 6,151 4,677 31.5%
--------------------------------------------------------------------------
Net gearing, % 37.4% 28.8%
--------------------------------------------------------------------------
Equity ratio, % 48.8% 56.3%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Earnings per share, EUR, undiluted 0.04 0.07 -45.1%
--------------------------------------------------------------------------
Earnings per share, EUR, diluted 0.04 0.07 -45.1%
--------------------------------------------------------------------------
MARKETS AND DIGIA'S BUSINESS
Economic growth has slowed down in many countries, which has put a damper on
Finnish exports and overall production. Customer companies, which see
information technology as an element that can facilitate greater operational
efficiency and growth, are continuing with their projects and initiating new
ones, however. In some cases, economic uncertainty has lengthened
decision-making processes and project schedules have been stretched or delayed.
In terms of human resources, the situation is split. On the one hand, a large
number of experts were released onto the job market from various contract
engineering projects; on the other, there is a shortage of experienced
architecture and business experts, which is causing lengthened recruitment
processes and pressure for salary increases.
In late 2011, the company carried out an organisational reform that took effect
at the beginning of the period. The changeover has gone smoothly.
Demand for ERP systems, other operational systems and integration services was
reasonable during the review period. Targets were not quite met for ERP
systems, however, as certain customers delayed their purchase decisions.
The focus of the development of Digia's Russian unit is on ERP system
deliveries to local customers. This unit also offers near shore resource
services to Finnish business units. The unit's operations expanded during the
review period, and new local customers were found, especially within the
Business Intelligence solutions field.
Digia's Chinese unit generates product development and maintenance services,
which enable the company to serve customers at various points of their product
development cycle. The unit's capacity is utilised both in projects within
China and for global customer relationships.
The Qt business increased its net sales, with operations progressing according
to plan during the period.
NET SALES
During the reporting period, Digia's consolidated net sales totalled EUR 26.1
(33.4) million, down 21.9 per cent from the same period in 2011.
The decrease was due to a sharp fall in demand for mobile contract engineering
services after the end of the comparison period. On the other hand, the net
sales figure was positively affected by the Qt business, acquired in March
2011, which generated net sales of EUR 3.4 million during the period.
During the reporting period, the product business accounted for EUR 7.0 (4.8)
million or 27.0 (14.5) per cent of consolidated net sales.
International operations accounted for EUR 5.2 (2.5) million, or 19.9 (7.5) per
cent of consolidated net sales.
PROFIT PERFORMANCE AND PROFITABILITY
During the reporting period, Digia's consolidated operating profit totalled EUR
1.4 (2.3) million, down 37.2 per cent from the same period in 2011.
Profitability (EBIT %) was 5.4 (6.8) per cent.
The reduction in operating profit was mainly due to the decrease in net sales.
Additionally, the company's operating costs and profitability were affected
during the period by investments in the international product business, a
relative increase in the proportion of fixed operating costs, and the
additional cost of higher personnel turnover.
Consolidated earnings before tax for the period totalled EUR 1.1 (1.9) million,
and net profit was EUR 0.8 (1.4) million.
Consolidated earnings per share were EUR 0.04 (0.07).
The Group's net financial expenses were EUR 0.3 (0.3) million.
FINANCIAL POSITION AND EXPENDITURE
At the end of the reporting period, Digia Group's consolidated balance sheet
total stood at EUR 84.2 million (12/2011: EUR 87.8 million), and the equity
ratio was 48.8 (12/2011: 47.8) per cent. Net gearing was 37.4 (12/2011: 34.5)
per cent. Period-end cash and cash equivalents totalled EUR 6.2 (12/2011: 8.2)
million.
Interest-bearing liabilities amounted to EUR 20.6 (12/2011: 21.9) million.
These consisted of EUR 19.0 million in loans from financial institutions and
EUR 1.6 million in financial leasing liabilities.
The Group's cash flow from operations for the period was positive by EUR 2.0
(1.8) million, cash flow from investments was negative by EUR 0.9 (0.9)
million, and cash flow from financing was negative by EUR 3.1 (5.9) million.
Cash flow from financing was negatively affected by the repayment of loans for
a total sum of EUR 1.0 million, as well as the payment of EUR 2.1 million in
dividends.
The Group's investments in fixed assets during the review period totalled EUR
0.9 (0.8) million. Acquisitions of tangible fixed assets totalled EUR 0.0 (0.7)
million.
Return on investment (ROI) for the period was 9.5 (10.3) per cent, and return
on equity (ROE) was 8.1 (8.8) per cent.
The Group carries out quarterly impairment testing of goodwill and intangible
assets with an indefinite useful life. The table below shows the distribution
of goodwill and values subject to testing at the end of the reporting period:
EUR Specified Amortisations during Goodwi Other Total value
1,000 intangible the reporting period ll items subject to
assets testing
--------------------------------------------------------------------------------
Group 3,172 247 44,543 8,341 56,055
total
--------------------------------------------------------------------------------
Present values were calculated for the forecast period based on the following
assumptions: Net sales and operating profit for the first quarter of the
forecast period according to the confirmed figures for the latest quarter, and
for the following three quarters according to budget; after this, annual growth
in net sales of 3 per cent and in operating profit of 10 per cent, and a
discount rate of 8.9 per cent. Cash flows after the forecast period were
estimated by means of cash-flow extrapolation, applying the assumptions given
above.
According to a completed sensitivity analysis, the estimated goodwill requires
net sales to remain at the current level, with profitability of 4.4 per cent.
The management sees no risk of goodwill impairment.
HUMAN RESOURCES, MANAGEMENT, AND ADMINISTRATION
At the end of the period, the total number of Group personnel was 1,047,
representing a decrease of 128 employees, or 10.9 per cent, since the end of
2011 (1,175). During the reporting period the number of employees averaged
1,078, a decrease of 375 employees or 25.8 per cent from the 2011 average
(1,453).
Employees by function at the end of the period:
Business units 96%
----------------------------------
Administration and management 4%
----------------------------------
As of the end of the period, 163 employees were working abroad (12/2011: 161).
The Digia Plc Annual General Meeting of 13 March 2012 re-elected Robert Ingman,
Kari Karvinen, Pertti Kyttälä and Tommi Uhari as members of the Board. Päivi
Hokkanen, Seppo Ruotsalainen and Leena Saarinen were elected as new members. At
the organisation meeting of the Board, Pertti Kyttälä was elected Chairman of
the Board and Robert Ingman Vice Chairman.
Juha Varelius has been Digia Plc's President and CEO since 1 January 2008.
Ernst & Young Oy, authorised public accountants, are the Group's auditors, with
Authorised Public Accountant Heikki Ilkka as the principal auditor.
RISKS AND UNCERTAINTIES
Short-term uncertainties are related to any major changes occurring in the
company's core business areas.
In addition, the Eurozone debt crisis and the risk of economic recession may
affect customers' investment decisions and liquidity, and thereby the company's
sales and profits. There have been signs of the effect of increased uncertainty
on customers' investment decisions. Some planned projects have been delayed,
but so far these have been individual cases rather than a generalised
phenomenon.
As the size of customer projects grows and the availability of experienced
professionals decreases, risks related to the completion and profitability
management of projects increase.
Risks and their management are described on the company's website at
www.digia.com.
FUTURE PROSPECTS
The main objective for 2012 is to grow the share of the scalable product
business within the overall product selection. This will mainly be achieved
organically, but carefully planned strategic acquisitions are also possible.
The main cornerstone of the company's operations remains the maintenance of
high profitability and a positive cash flow.
The company expects the IT market to remain at roughly the previous year's
level in 2012. However, risks associated with the Eurozone debt crisis and
general inflation may affect demand for IT services and the development of
business profitability. Slightly greater uncertainty is therefore related to
the economic prospects for 2012.
With regard to its own operations, the company expects demand for its ERP
systems, operational systems and integration services to grow during the rest
of the year.
The company will continue to seek expansion in the growing Russian market,
especially through its Business Intelligence solutions, ERP systems and
complementary products and services within the trade and logistics customer
segments.
The company plans to align its Chinese operations to correspond even better to
local sales and international delivery contracts. As part of this realignment,
the Beijing sales unit will also support Qt business sales.
The company predicts that demand for Qt business will remain good and income
from the business will therefore continue developing positively for the rest of
the year.
The company expects its operational efficiency and the income from
international operations to improve and profitability to return to good level
during the rest of the year.
OTHER EVENTS DURING THE REVIEW PERIOD
Convening on 13 March 2012, the Digia Plc Annual General Meeting (AGM) approved
the financial statements for 2011, released the Board members and the CEO from
liability, determined Board emoluments, resolved to keep the number of Board
members at seven, and elected the Board of Directors for the new term.
With regard to profit distribution for 2011, the AGM approved the Board's
proposal to make a repayment of capital of EUR 0.10 per share to all
shareholders listed on the shareholder list maintained by Euroclear Finland Ltd
on the reconciliation date of 16 March 2012. The date for the repayment of
capital was set to be 23 March 2012.
The AGM granted the following authorisations to the Board:
Authorisation of the Board of Directors to decide on buying back own shares
and/or accepting them as collateral
The AGM authorised the Board to decide on the buyback and/or acceptance as
collateral of not more than 2,000,000 shares in the company. This buyback can
only be executed by means of the company's unrestricted equity. The Board shall
decide on how these shares are to be bought. Own shares may be bought back in
disproportion to the holdings of the shareholders. The authorisation also
includes acquisition of shares through public trading organised by NASDAQ OMX
Helsinki Oy in accordance with the rules and instructions of NASDAQ OMX
Helsinki and Euroclear Finland Ltd, or through offers made to shareholders.
Shares may be acquired in order to improve the company's capital structure, to
fund acquisitions or other business transactions, for offering share-based
incentive schemes, to sell on, or to be annulled. The shares must be acquired
at the market price in public trading. This authorisation supersedes that
granted by the Shareholders' Meeting on 16 March 2011 and is valid for 18
months - i.e. until 13 September 2013.
Authorising the Board of Directors to decide on a share issue and granting of
special rights
The AGM authorised the Board to decide on an ordinary or bonus issue of shares
and the granting of special rights (as defined in Section 1, Chapter 10 of the
Limited Liability Companies Act) in one or more instalments, as follows: The
issue may total, at a maximum, 4,000,000 shares. The authorisation applies both
to new shares and to treasury shares held by the company. By virtue of the
authorisation, the Board has the right to decide on share issues and the
granting of special rights, in deviation from the pre-emptive subscription
rights of the shareholders (a directed issue). The authorisation may be used to
fund or complete acquisitions or other business transactions, for offering
share-based incentive schemes, to develop the company's capital structure, or
for other purposes. The Board was authorised to decide on all terms related to
the share issue or special rights, including the subscription price, its
payment in cash or (partly or wholly) in capital contributed in kind or its
being written off against the subscriber's receivables, and its recognition in
the company's balance sheet. This authorisation supersedes that granted by the
AGM of 16 March 2011 and is valid for 18 months - i.e. until 13 September 2013.
SHARE CAPITAL AND SHARES
On 31 March 2012, the number of Digia Plc shares totalled 20,875,645.
At the end of the period, according to Finnish Central Securities Depository
Ltd, Digia had 6,115 shareholders.
The 10 biggest shareholders were:
Shareholder Shares and votes
--------------------------------------------------------------
Ingman Group Oy Ab 16.3%
--------------------------------------------------------------
Jyrki Hallikainen 10.2%
--------------------------------------------------------------
Pekka Sivonen 8.8%
--------------------------------------------------------------
Kari Karvinen 6.5%
--------------------------------------------------------------
Matti Savolainen 6.1%
--------------------------------------------------------------
Ilmarinen Mutual Pension Insurance Company 4.8%
--------------------------------------------------------------
Varma Mutual Pension Insurance Company 3.6%
--------------------------------------------------------------
Nordea Bank Finland Plc (nominee-registered) 1.4%
--------------------------------------------------------------
Etola Oy 1.0%
--------------------------------------------------------------
Olli Ahonen 0.9%
--------------------------------------------------------------
Distribution of holdings by number of shares on 31 March 2012
Number of shares Shareholders Shares and votes
-----------------------------------------------------
1 - 100 22.2% 0.5%
-----------------------------------------------------
101 - 1,000 59.3% 7.9%
-----------------------------------------------------
1,001 - 10,000 17.1% 13.4%
-----------------------------------------------------
10,001 - 100,000 1.1% 9.6%
-----------------------------------------------------
100,001 - 1,000,000 0.3% 20.7%
-----------------------------------------------------
1,000,001 - 3,000,000 0.1% 47.9%
-----------------------------------------------------
Distribution of shareholding by sector on 31 March 2012
Shareholders Shares
--------------------------------------------------------------------
Non-financial corporations 4.5% 21.2%
--------------------------------------------------------------------
Financial and insurance corporations 0.3% 4.1%
--------------------------------------------------------------------
General government 0.1% 8.4%
--------------------------------------------------------------------
Not-for-profit institutions serving households 0.2% 0.5%
--------------------------------------------------------------------
Households 94.5% 64.6%
--------------------------------------------------------------------
Rest of the world 0.4% 1.1%
--------------------------------------------------------------------
The weighted average number of shares during the reporting period, adjusted for
share issues, came to 20,736,183. The number of outstanding shares came to
20,772,523 in total at the end of the review period.
The company held a total of 103,122 treasury shares at the end of the reporting
period. The accounting counter value of these treasury shares is EUR 0.10 per
share. The treasury shares accounted for about 0.5 per cent of the capital
stock at the period-end. In relation to the company's performance-based
incentive system, Digia has financed the acquisition of 300,000 own shares. At
the end of the review period, 12,424 of these shares remained undistributed and
were under the management of Evli Alexander Management Ltd.
REPORTED SHARE PERFORMANCE ON THE HELSINKI STOCK EXCHANGE
Digia Plc shares are listed on the Nordic Exchange under ‘Information
Technology IT Services'. The company's short name is DIG1V. The lowest reported
share quotation was EUR 2.45 and the highest was EUR 3.30. The share officially
closed at EUR 3.02 on the last trading day. The trade-weighted average was EUR
3.04. The Group's market capitalisation totalled EUR 63,044,448 at the end of
the period.
The company received no flagging notifications during the reporting period.
STOCK OPTION SCHEMES
Digia Plc had no outstanding options.
Helsinki, 27 April 2012
Digia Plc
Board of Directors
BRIEFING FOR ANALYSTS
Digia will hold a briefing on its financial statement for analysts on Friday 27
April 2012, at 11 am, at WTC Sodexo, in the Marski cabinet of the World Trade
Center, Aleksanterinkatu 17, 00100 Helsinki, Finland. All are welcome.
SOURCES OF FURTHER INFORMATION
President and CEO Juha Varelius, mobile +358 400 855 849, email
juha.varelius@digia.com
The Interim Report and presentation thereof will be available at company's
website www.digia.com, in the ‘Investors' section, from 11 am.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
ABBREVIATED FINANCIAL STATEMENTS AND 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 the IAS 34
standard.
This interim report is based on unaudited figures.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
1-3/201 1-3/201 Change, 2011
2 1 %
--------------------------------------------------------------------------------
NET SALES 26,064. 33,356. -21.9% 121,939. 4 7 9
--------------------------------------------------------------------------------
Other operating income 202.2 24.2 735.6% 360.7
--------------------------------------------------------------------------------
Materials and services -2,544. -2,483. 2.4% -10,721.
3 6 0
--------------------------------------------------------------------------------
Depreciation, amortisation and impairment -648.0 -926.8 -30.1% -29,267.
9
--------------------------------------------------------------------------------
Other operating expenses -21,655 -27,711 -21.9% -104,479
.8 .1 .7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 1,418.5 2,259.5 -37.2% -22,168.
0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial expenses (net) -347.7 -342.7 1.5% -963.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings before tax 1,070.8 1,916.8 -44.1% -23,131. 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -273.1 -468.9 -41.8% 679.5
--------------------------------------------------------------------------------
NET PROFIT 797.7 1,447.9 -44.9% -22,451.
6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income:
--------------------------------------------------------------------------------
Exchange differences on translation of 125.1 120.3 4.0% 42.1
foreign operations
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME 922.8 1,568.2 -41.2% -22,409.
5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of net profit:
--------------------------------------------------------------------------------
Parent-company shareholders 797.7 1,447.9 -44.9% -22,451.
6
--------------------------------------------------------------------------------
Minority interest 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribution of total comprehensive income:
--------------------------------------------------------------------------------
Parent-company shareholders 922.8 1,568.2 -41.2% -22,409.
5
--------------------------------------------------------------------------------
Minority interest 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.04 0.07 -45.1% -1.08
--------------------------------------------------------------------------------
Earnings per share (diluted), EUR 0.04 0.07 -45.1% -1.08
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, EUR 1,000
Assets 31.3.2012 31.12.2011 Change, %
---------------------------------------------------------------------
---------------------------------------------------------------------
Non-current assets
---------------------------------------------------------------------
Intangible assets 48,196.1 48,486.7 -0.6%
---------------------------------------------------------------------
Tangible assets 2,820.1 3,156.5 -10.7%
---------------------------------------------------------------------
Financial assets 627.0 627.0 0.0%
---------------------------------------------------------------------
Long-term receivables 60.3 60.3 0.0%
---------------------------------------------------------------------
Deferred tax assets 751.0 789.9 -4.9%
---------------------------------------------------------------------
---------------------------------------------------------------------
Total non-current assets 52,454.4 53,120.3 -1.3%
---------------------------------------------------------------------
---------------------------------------------------------------------
Current assets
---------------------------------------------------------------------
Current receivables 25,631.5 26,523.0 -3.4%
---------------------------------------------------------------------
Available-for-sale financial assets 311.4 303.5 2.6%
---------------------------------------------------------------------
Cash and cash equivalents 5,839.5 7,866.5 -25.8%
---------------------------------------------------------------------
---------------------------------------------------------------------
Total current assets 31,782.4 34,693.0 -8.4%
---------------------------------------------------------------------
---------------------------------------------------------------------
Total assets 84,236.8 87,813.3 -4.1%
---------------------------------------------------------------------
Shareholders' equity and liabilities 31.3.2012 31.12.2011 Change, %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share capital 2,087.6 2,087.6 0.0%
--------------------------------------------------------------------------------
Rights issue 0.0 0.0
--------------------------------------------------------------------------------
Issue premium fund 7,899.5 7,899.5 0.0%
--------------------------------------------------------------------------------
Other reserves 5,203.8 5,203.8 0.0%
--------------------------------------------------------------------------------
Unrestricted invested shareholders' equity 33,447.8 35,525.0 -5.8%
--------------------------------------------------------------------------------
Translation difference 333.5 208.4 60.0%
--------------------------------------------------------------------------------
Retained earnings -11,062.2 11,279.9 -198.1%
--------------------------------------------------------------------------------
Net profit 797.7 -22,451.6
--------------------------------------------------------------------------------
Equity attributable to parent-company 38,707.7 39,752.6 -2.6%
shareholders
--------------------------------------------------------------------------------
Minority interest 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total shareholders' equity 38,707.7 39,752.6 -2.6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities
--------------------------------------------------------------------------------
Long-term interest-bearing liabilities 14,740.0 15,441.7 -4.5%
--------------------------------------------------------------------------------
Other long-term liabilities 265.0 674.0 -60.7%
--------------------------------------------------------------------------------
Deferred tax liabilities 666.6 772.0 -13.7%
--------------------------------------------------------------------------------
Total long-term liabilities 15,671.6 16,887.7 -7.2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-term interest-bearing liabilities 5,878.9 6,430.2 -8.6%
--------------------------------------------------------------------------------
Other short-term liabilities 23,978.7 24,742.8 -3.1%
--------------------------------------------------------------------------------
Total short-term liabilities 29,857.6 31,173.0 -4.2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total liabilities 45,529.1 48,060.7 -5.3%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity and liabilities 84,236.8 87,813.3 -4.1%
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
1.1.2012-31.03 1.1.2011-31.03 1.1.2011-31.12
.2012 .2011 .2011
--------------------------------------------------------------------------------
Cash flow from operations:
--------------------------------------------------------------------------------
Net profit 798 1,448 -22,452
--------------------------------------------------------------------------------
Adjustments to net profit 1,680 1,738 34,780
--------------------------------------------------------------------------------
Change in working capital 797 -322 2,791
--------------------------------------------------------------------------------
Interest paid -233 -235 -781
--------------------------------------------------------------------------------
Interest income 2 11 35
--------------------------------------------------------------------------------
Taxes paid -1,006 -848 -5,532
--------------------------------------------------------------------------------
Net cash flow from operations 2,038 1,791 8,842
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from investments:
--------------------------------------------------------------------------------
Purchases of tangible and -934 -901 -2,733
intangible assets
--------------------------------------------------------------------------------
Cash flow from investments -934 -901 -2,733
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow from financing:
--------------------------------------------------------------------------------
Proceeds from share issue 0 0 0
--------------------------------------------------------------------------------
Acquisition of own shares 0 0 0
--------------------------------------------------------------------------------
Repayment of current loans -1,044 -1,044 -19,044
--------------------------------------------------------------------------------
Repayments of non-current loans 0 0 0
--------------------------------------------------------------------------------
Withdrawals of current loans 0 0 3,500
--------------------------------------------------------------------------------
Withdrawals of non-current loans 0 0 13,500
--------------------------------------------------------------------------------
Dividends paid and other profit -2,078 -4,851 -5,577
distribution
--------------------------------------------------------------------------------
Cash flow from financing -3,123 -5,895 -7,621
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in liquid assets -2,019 -5,005 -1,512
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liquid assets at beginning of 8,170 9,682 9,682
period
--------------------------------------------------------------------------------
Change in fair value
--------------------------------------------------------------------------------
Change in liquid assets -2,019 -5,005 -1,512
--------------------------------------------------------------------------------
Liquid assets at end of period 6,151 4,677 8,170
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, EUR 1,000
2011 a) b) c) d) e) f) g) h)
--------------------------------------------------------------------------------
Shareholders' equity, 1 2,086 40 7,899 35,486 5,204 166 16,529 67,411
January 2011
--------------------------------------------------------------------------------
Net profit 1,448 1,448
--------------------------------------------------------------------------------
Other comprehensive 120 120
income
--------------------------------------------------------------------------------
Dividends -5,577 -5,577
--------------------------------------------------------------------------------
Share-based payments 0 -40 39 126 126
recognised against
equity
--------------------------------------------------------------------------------
Shareholders' equity, 31 2,088 0 7,899 35,525 5,204 287 12,526 63,528
March 2011
--------------------------------------------------------------------------------
2012 a) b) c) d) e) f) g) h)
--------------------------------------------------------------------------------
Shareholders' equity, 1 2,088 0 7,899 35,525 5,204 208 -11,17 39,753
January 2012 2
--------------------------------------------------------------------------------
Net profit 798 798
--------------------------------------------------------------------------------
Other comprehensive income 125 125
--------------------------------------------------------------------------------
Repayment of capital -2,077 -2,077
--------------------------------------------------------------------------------
Share-based payments 110 110
recognised against equity
--------------------------------------------------------------------------------
Shareholders' equity, 31 2,088 0 7,899 33,448 5,204 333 -10,26 38,708
March 2012 4
--------------------------------------------------------------------------------
a = share capital
b = rights issue
c = share premium
d = unrestricted invested shareholders' equity
e = other reserves
f = currency translation differences
g = retained earnings
h = total shareholders' equity
NOTES TO THE ACCOUNTS
Accounting principles:
The interim report has been drafted in line with IFRS, applying the same
accounting principles as in the 2011 financial statements. The accounting
principles and formulae for the calculation of key figures and ratios are
unchanged and are presented in the 2011 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:
Dividends paid during the reporting period totalled EUR 2,078,494.70.
Related-party transactions:
Digia Group's related parties include the CEO and the members of the Board of
Directors and Group Management Team. Digia Group had no significant
transactions with related parties during the reporting period.
Consolidated income statement by quarter:
EUR 1,000 1-3/2012 10-12/20 7-9/2011 4-6/201 1-3/2011
11 1
--------------------------------------------------------------------------------
Net sales 26,064.4 30,197.3 26,027.5 32,358. 33,356.7
3
--------------------------------------------------------------------------------
Other operating income 202.2 261.0 47.0 28.5 24.2
--------------------------------------------------------------------------------
Materials and services -2,544.3 -2,568.9 -1,761.9 -3,906. -2,483.6
6
--------------------------------------------------------------------------------
Depreciation, amortisation, and -648.0 -1,095.9 -858.1 -26,387 -926.8
impairment .2
--------------------------------------------------------------------------------
Other operating expenses -21,655. -25,407. -21,381. -29,979 -27,711.
8 6 8 .1 1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 1,418.5 1,385.9 2,072.7 -27,886 2,259.5
.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial expenses (net) -347.7 -318.3 -116.6 -185.6 -342.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings before tax 1,070.8 1,067.7 1,956.2 -28,071 1,916.8
.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -273.1 149.8 -810.5 1,809.2 -468.9
--------------------------------------------------------------------------------
Net profit 797.7 1,217.5 1,145.6 -26,262 1,447.9
.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Allocation:
--------------------------------------------------------------------------------
Parent-company shareholders 797.7 1,217.5 1,145.6 -26,262 1,447.9
.6
--------------------------------------------------------------------------------
Minority interest 0.0 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.04 0.06 0.06 -1.27 0.07
--------------------------------------------------------------------------------
Earnings per share (diluted), 0.04 0.06 0.06 -1.27 0.07
EUR
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Group key figures and ratios:
1-3/2012 1-3/2011 2011
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Extent of business:
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Net sales 26,064 33,357 121,940
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- change from previous year -21.9% 1.6% -6.8%
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Average capital invested 60,476 88,603 76,176
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Personnel at period end 1,047 1,586 1,175
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Average number of personnel 1,078 1,580 1,453
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Profitability:
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Operating profit before extraordinary items and 1,419 2,259 -22,168
impairment
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- % of net sales 5.4% 6.8% -18.2%
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Operating profit 1,419 2,259 -22,168
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- % of net sales 5.4% 6.8% -18.2%
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Earnings before tax 1,071 1,917 -23,131
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- % of net sales 4.1% 5.7% -19.0%
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Net profit 798 1,448 -22,452
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% of net sales 3.1% 4.3% -18.4%
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Return on equity, % 8.1% 8.8% -41.9%
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Return on investment, % 9.5% 10.3% -28.7%
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Financing and financial standing:
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Interest-bearing liabilities 20,619 22,951 21,872
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Short-term investments, and cash and bank 6,151 4,677 8,170
receivables
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Net gearing 37.4% 28.8% 34.5%
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Equity ratio 48.8% 56.3% 47.8%
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Net cash flow from operations 2,038 1,791 8,842
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Earnings per share, undiluted (EUR) 0.04 0.07 -1.08
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Earnings per share, diluted (EUR) 0.04 0.07 -1.08
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Equity per share 1.85 3.04 1.90
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Lowest share price 2.45 4.20 2.30
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Highest share price 3.30 5.79 5.79
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Average share price 3.04 4.87 3.88
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Market capitalisation 63,044 87,886 50,519
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Formulae for key figures and ratios are presented in the 2011 financial
statements. These formulae remained unchanged during the reporting period.
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