2010-07-30 07:45:00 CEST
2010-07-30 07:45:03 CEST
REGULATED INFORMATION
Proha - Interim report (Q1 and Q3)
PROHA INTERIM REPORT (IFRS) JANUARY 1 - JUNE 30, 2010
Proha Plc Interim Report July 30, 2010 at 8.45 a.m.
PROHA INTERIM REPORT (IFRS) JANUARY 1 - JUNE 30, 2010
Proha had a strong Q2 2010
(last year's corresponding period in parentheses, unless otherwise stated)
SUMMARY
April - June, 2010
• Net sales EUR 18.6 (15.0) million - increase 23.8%
• Oil & Gas Services: net sales EUR 16.7 (13.5) million - increase 24.3%
• Software Solutions: net sales EUR 1.9 (1.5) million - increase 25.9%
• Net result EUR 0.9 (-0.2) million - change EUR 1.1 million
• Result for the period EUR 0.5 (-0.5) million
• Earnings per share EUR 0.01 (-0.01)
January - June, 2010
• Net sales EUR 34.8 (30.2) million - increase 15.5%
• Oil & Gas Services: net sales EUR 31.4 (27.3) million - increase 15.2%
• Software Solutions: net sales EUR 3.6 (2.9) million - increase 21.9%
• Net result EUR 1.4 (-0.4) million - change EUR 1.8 million
• Result for the period EUR 1.0 (-0.5) million
• Earnings per share EUR 0.02 (-0.01)
• Segment reporting was changed by combining software operations of Safran and
Camako to the Software Solutions division as of January 1, 2010
• Dovre division was renamed the Oil & Gas Services division as of
January 1, 2010
Proha increases and further defines its earlier result estimation for the full
year 2010.
The interim report is unaudited.
KEY RATIOS
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 |
| (EUR million) | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales | 18.6 | 15.0 | 34.8 | 30.2 | 60.7 |
--------------------------------------------------------------------------------
| Operating result | 0.9 | -0.2 | 1.4 | -0.4 | 0.3 |
--------------------------------------------------------------------------------
| % of Net sales | 4.8 % | -1.3 % | 4.0 % | -1.3 % | 0.4 % |
--------------------------------------------------------------------------------
| Result before taxes | 1.0 | -0.4 | 1.7 | -0.4 | -0.1 |
--------------------------------------------------------------------------------
| Result for the period | 0.5 | -0.5 | 1.0 | -0.5 | -0.7 |
--------------------------------------------------------------------------------
| Return on equity, % | 14.5 % | -14.1 % | 13.8 % | -7.9 % | -5.6 % |
--------------------------------------------------------------------------------
| Return on investment, % | 23.4 % | -5.2 % | 15.7 % | 11.1 % | 6.7 % |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 5.3 | 3.1 | 5.3 | 3.1 | 3.8 |
--------------------------------------------------------------------------------
| Cash flow from operations | 1.1 | 0.1 | 2.2 | -1.6 | -1.3 |
--------------------------------------------------------------------------------
| Debt-equity ratio, % | -11.4 | 1.5 % | -11.4 % | 1.5 % | -2.0 % |
| | % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 45.8 % | 45.1 % | 45.8 % | 45.1 % | 46.5 % |
--------------------------------------------------------------------------------
| Earnings per share, EUR | | | | | |
--------------------------------------------------------------------------------
| Basic | 0.01 | -0.01 | 0.02 | -0.01 | -0.01 |
--------------------------------------------------------------------------------
| Diluted | 0.01 | -0.01 | 0.02 | -0.01 | -0.01 |
--------------------------------------------------------------------------------
| Equity per share. EUR | 0.24 | 0.21 | 0.24 | 0.21 | 0.22 |
--------------------------------------------------------------------------------
ILKKA TOIVOLA, CEO
We are pleased with our second quarter results, and the progress we have made.
In the second quarter of 2010, the operating result for the Proha Group was
positive by about EUR 0.9 million, and the net sales grew by 24% compared to Q2
in 2009.
In the first half of the year, Proha also performed well reaching the operating
result of EUR 1.4 million. The net sales were EUR 34.8 million increasing by 16%
compared to H1 in 2009. The Group's cash and cash equivalents also grew by about
EUR 1.6 million from the beginning of the year.
Proha's business consists of two main business divisions: Oil & Gas Services and
Software Solutions. Oil & Gas Services, comprising of the Dovre businesses,
focuses globally on the large investment projects of major oil and gas
companies. Software Solutions, which includes Safran and Camako, supplies
consultancy, software and resources for Nordic based companies to help manage
their projects and investments. In the second quarter of 2010, the operating
result of both divisions improved significantly.
Overall Oil & Gas Services' sales grew by 24% compared to Q2 in 2009. The market
demand for the Oil & Gas Services division developed over our expectations in
the International operations, and especially well in Canada. The market for
Dovre's services in Norway was more stable in Q2 than last year, so our
profitability improved in Norway. In Q2, the net sales of the Software Solutions
division grew by 26% from last year, and it made a positive result.
The renewed strategy decided in Q4 of 2009 is being executed step by step, and
implementations of the business units' detailed strategies are on track.
According to our strategy we are focusing on our core competencies and seeking
profitable growth. Regarding the growth areas of Oil & Gas Services, the
Australian and Russian operations were on track with sales, and made a positive
contribution. Software Solutions' growth was based on current products and
services in the markets within the Nordic Countries. Safran and Camako aim to
increase sales in the Nordic Countries as well as to develop new growth
opportunities in Northern Europe.
FUTURE OUTLOOK
Global market is stabilizing and there are indicators of growing activity in
many industries. The economic recovery has, however, still been modest, and
forecasts for GDP growth have been taken down in many countries. Yet the key
geographies of Proha's business, like Canada, the United States, the Nordic
Countries, Russia and Australia, all have a growth expectation for national GDP
in 2010.
Based on market forecasts, we expect the Oil & Gas Services' business to grow in
2010. For some time now, oil price has been holding between USD 70 to 90 per
barrel, and that provides a good foundation for continuing investments.
The oil spill accident in the United States is likely to cause delay in some of
the US projects and especially projects in the Gulf of Mexico. However, Proha
expects the global consumption of oil to continue to grow driven by strong
demand in China and India. It is expected, therefore, that more investments will
be made in other oil fields to make up for the possible shortage in the US
production, for example there may be more investments in Canada.
The IT sector that is significant for Proha's Software Solutions division is
expected to experience a slight growth in the most North European countries, and
the investments are expected to return to their normal level in 2010. Both
Safran and Camako are expecting a modest growth in 2010, as the need for
software and related services is projected to grow.
The 2009 started measures for streamlining the organization and improving its
efficiency have continued in 2010 and will improve the Group's performance in
the future.
Proha increases and further defines its earlier result estimation for the full
year 2010. It is expected that the net sales in 2010 will be more than in 2009.
The operating result for 2010 will be between 3-5 % of the net sales. The result
for the full year will be between 1.5 - 3.5 % of the net sales. The annual
seasonality cycles resulting from the amount of billable days will affect
Proha's financial performance in Q3, and therefore, the result for Q3 is
expected to be lower than in Q4.
The estimate of the first quarter of 2010 was as follows: “Proha keeps to its
earlier result estimation, and expects a better operating result than in 2009.
The result for the financial year 2010 is expected to be positive.”
The estimate for future outlook is based on the forecasts that the Proha Board
has accepted.
IFRS REPORTING
The reporting structure of the Group was changed as of January 1, 2010. The
Group's software business operations were combined to a new Software Solutions
division. This division includes Safran and Camako. Earlier, Safran Software
Solutions AS was part of the Dovre division and Camako formed its own
division.
As of January 1, 2010, the Dovre division was renamed to the Oil & Gas Services
division. The division consists of many companies, such as Fabcon Canada Limited
in Canada, Dovre Group Inc. in the USA and Dovre Group AS in Norway.
Oil & Gas Services, Software Solutions, and other operations are separately
reported business segments. Other operations consist mainly of the Proha Group
administration. The information for the first and second quarters as well as the
financial period of January 1 - June 30, 2010 is presented according to the
above mentioned segment division.
NET SALES
April - June, 2010
The Group's net sales in Q2 increased by 23.8% totaling EUR 18.6 (15.0) million.
The Oil & Gas Services division accounted for 90% (90%) and the Software
Solutions division for 10% (10%). Net sales for Oil & Gas Services increased by
24.3% totaling EUR 16.7 (13.5) million. Net sales for Software Solutions grew by
25.9% totaling EUR 1.9 (1.5) million. Approximately half of the growth of the
net sales incurred from the positive variations in exchange rates, especially
the Canadian dollar and the Norwegian crown strengthened in comparison with
euro.
January - June, 2010
The Group's net sales in H1 increased by 15.5% totaling EUR 34.8 (30.2) million.
The Oil & Gas Services division accounted for 90% (90%) and the Software
Solutions division for 10% (10%). Net sales for Oil & Gas Services increased by
15.2% totaling EUR 31.4 (27.3) million. Net sales for Software Solutions grew by
21.9% totaling EUR 3.6 (2.9) million. Approximately half of the growth of the
net sales incurred from the positive variations in exchange rates, especially
the Canadian dollar and the Norwegian crown strengthened in comparison with
euro.
Distribution of net sales by business segments
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change | 1-12 |
| (EUR million) | 2010 | 2009 | % | 2010 | 2009 | % | 2009 |
--------------------------------------------------------------------------------
| Oil & Gas | 16.7 | 13.5 | 24.3 | 31.4 | 27.3 | 15.2 | 54.9 |
| Services | | | | | | | |
--------------------------------------------------------------------------------
| Software | 1.9 | 1.5 | 25.9 | 3.6 | 2.9 | 21.9 | 5.9 |
| Solutions | | | | | | | |
--------------------------------------------------------------------------------
| Other operations | 0.0 | 0.1 | -22.8 | 0.1 | 0.1 | -35.2 | 0.1 |
--------------------------------------------------------------------------------
| Net sales | -0.1 | -0.1 | -148.4 | -0.2 | -0.2 | -44.8 | -0.2 |
| between segments | | | | | | | |
--------------------------------------------------------------------------------
| Group total | 18.6 | 15.0 | 23.8 | 34.8 | 30.2 | 15.5 | 60.7 |
--------------------------------------------------------------------------------
Distribution of net sales by geographical segments
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 |
| (EUR million) | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| EMEA | 8.7 | 8.6 | 17.4 | 17.7 | 34.8 |
--------------------------------------------------------------------------------
| AMERICAS | 9.2 | 6.6 | 16.5 | 12.8 | 26.5 |
--------------------------------------------------------------------------------
| APAC | 0.8 | 0.2 | 1.3 | 0.4 | 0.7 |
--------------------------------------------------------------------------------
| Net sales between | -0.1 | -0.4 | -0.3 | -0.7 | -1.3 |
| segments | | | | | |
--------------------------------------------------------------------------------
| Group total | 18.6 | 15.0 | 34.8 | 30.2 | 60.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 |
| (% of net sales) | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| EMEA | 46.9 % | 57.5 % | 50.0 % | 58.5 % | 57.3 % |
--------------------------------------------------------------------------------
| AMERICAS | 49.4 % | 43.9 % | 47.2 % | 42.6 % | 43.6 % |
--------------------------------------------------------------------------------
| APAC | 4.5 % | 1.2 % | 3.7 % | 1.3 % | 1.2 % |
--------------------------------------------------------------------------------
| Net sales between | -0.8 % | -2.6 % | -0.8 % | -2.4 % | -2.1 % |
| segments | | | | | |
--------------------------------------------------------------------------------
| Group total | 100.0 % | 100.0 % | 100.0 % | 100.0 % | 100.0 % |
--------------------------------------------------------------------------------
PROFITABILITY
Operating result April - June, 2010
The operating result was EUR 0.9 (-0.2) million. Oil & Gas Services' operating
result was EUR 1.0 (0.0) million. Software Solutions' operating result was EUR
0.2 (-0.1) million. Operating result for other operations was EUR -0.3 (-0.1)
million.
Operating result January - June, 2010
The operating result was EUR 1.4 (-0.4) million. Oil & Gas Services' operating
result was EUR 1.7 (0.2) million. Software Solutions' operating result was EUR
0.3 (-0.3) million. Operating result for other operations was EUR -0.5 (-0.3)
million.
Distribution of operating result by segment
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change | 1-12 |
| (EUR million) | 2010 | 2009 | % | 2010 | 2009 | % | 2009 |
--------------------------------------------------------------------------------
| Oil & Gas Services | 1.0 | 0.0 | 4 017.7| 1.7 | 0.2 | 705.0 | 1.6 |
| | | | | | | | |
--------------------------------------------------------------------------------
| Software Solutions | 0.2 | -0.1 | 332.8 | 0.3 | -0.3 | 192.4 | -0.3 |
--------------------------------------------------------------------------------
| Other operations | -0.3 | -0.1 | -168.9 | -0.5 | -0.3 | -97.7 | -0.8 |
--------------------------------------------------------------------------------
| Operating result | 0.0 | 0.0 | 6.7 | -0.1 | -0.1 | -2.8 | -0.2 |
| between segments | | | | | | | |
--------------------------------------------------------------------------------
| Group total | 0.9 | -0.2 | 448.0 | 1.4 | -0.4 | 415.5 | 0.3 |
--------------------------------------------------------------------------------
Result April - June, 2010
The Group's result before taxes was EUR 1.0 (-0.4) million and after taxes EUR
0.5 (-0.5) million.
The Proha Group's earnings per share was EUR 0.01 (-0.01).
The Proha Group's return on investment (ROI) was 23.4% (-5.2%).
Result January - June, 2010
The Group's result before taxes was EUR 1.7 (-0.4) million and after taxes EUR
1.0 (-0.5) million.
The Proha Group's earnings per share was EUR 0.02 (-0.01).
The Proha Group's return on investment (ROI) was 15.7% (11.1%).
CASH FLOW, FINANCING AND INVESTMENTS
On June 30, 2010, the Proha Group balance sheet total was EUR 34.2 (29.2)
million.
The cash and cash equivalents for the Proha Group totaled EUR 5.3 (3.1) million
at the end of Q2. In addition, the parent company and the subsidiaries have
unused credit limits.
The cash flow from operating activities was EUR 2.2 (-1.6) million. The cash
flow from operating activities was increased by a change in working capital of
EUR 1.1 (-1.0) million. EUR 0.5 million were paid in taxes.
The cash flow from investing activities was EUR -0.3 (0.1) million.
The gross investments totaled EUR 0.4 (0.1) million.
The cash flow from financing activities was EUR -0.3 (1.5) million. New loans
worth of EUR 0.3 million were drawn, and EUR 0.6 million paid back.
The balance sheet goodwill totaled EUR 7.5 (6.2) million on June 30, 2010. On
December 31, 2009, the balance sheet goodwill totaled EUR 7.0 million. The
change in January - June, 2010, is caused by translation differences. The
Group's goodwill is not amortized, but tested for impairment under IAS 36. No
indications of impairment of assets exist.
The equity ratio was 45.8% (45.1%). Gearing was -11.4% (1.5%). On June 30, 2010,
the interest-bearing liabilities amounted to EUR 3.6 (3.3) million, accounting
for 10.5% (11.3%) of the Group's shareholders' equity and liabilities total. Of
the interest-bearing liabilities, EUR 0.7 (1.1) million were non-current and EUR
2.9 (2.2) million current. The Group's quick ratio was 1.5 (1.5).
RESEARCH AND DEVELOPMENT
In January - June, 2010, the Group's research and development costs were EUR
0.4 (0.3) million, representing 1% (1%) of the Group net sales. A total of EUR
0.1 (0.4) million of capitalized research and development costs were in the
balance sheet at the end of the period.
The Group's R&D costs consist of the R&D of Safran and Camako in the Software
Solutions division. Safran has progressed well with the development of the
version 3.7 of Safran Project, which is expected to be released at the end of
the third quarter. Also Safran Web Access for Project is expected to be released
in Q3. Safran Web Access for Planner was released in June, 2010.
CHANGES IN THE PROHA GROUP
Heidi Karlsson was nominated Senior Vice President, Corporate Functions as of
June 1, 2010. She is responsible for developing Proha's and its Oil and Gas
Services division's international administration. Heidi is based in Finland. The
former CFO for Dovre Group AS, Are Njåstein, will leave the company as of July
30, 2010.
In the Oil & Gas Services division, the new Vice President of Operations, Robert
Terrell, was appointed to lead Dovre Group Inc. in the United States as of June
1, 2010. His predecessor, Gunnar Nordahl, transferred to another position
outside of the company.
In the Software Solutions division, Juha Pennanen was nominated as Managing
Director for Safran Software Solutions AS as of June 1, 2010. Juha is based in
both Stavanger, Norway and Espoo, Finland. The former Managing Director of
Safran Software Solutions, Svein Blomsø, left the company as of June 30, 2010.
PERSONNEL
The Group's personnel expenses were EUR 30.9 (28.1) million in January - June,
2010.
The personnel expenses of the Oil & Gas Services division were EUR 28.1 (25.5)
million. The personnel expenses of the Software Solutions division were 2.5
(2.4) million. The personnel expenses of the other operations were EUR 0.2 (0.3)
million.
In January - June, 2010, the number of personnel averaged 406 (398).
Distribution of personnel by segment (average)
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change |
| | 2010 | 2009 | % | 2010 | 2009 | % |
--------------------------------------------------------------------------------
| Oil & Gas | 352 | 333 | 5.7 | 345 | 329 | 4.8 |
--------------------------------------------------------------------------------
| Software | 57 | 63 | -8.5 | 58 | 63 | -8.4 |
| Solutions | | | | | | |
--------------------------------------------------------------------------------
| Other operations | 4 | 5 | -31.1 | 3 | 5 | -35.6 |
--------------------------------------------------------------------------------
| Total | 413 | 401 | 3.0 | 406 | 398 | 2.1 |
--------------------------------------------------------------------------------
On June 30, 2010, Proha employed 422 (400) people worldwide, out of which 362
(335) were employed by the Oil & Gas Services division, 56 (60) by the Software
Solutions division and 4 (5) by the Group administration.
BUSINESS PERFORMANCE
The demand for the services of the Oil & Gas Services division has been steady
all over the world. Especially in Canada and other international markets
business has been active, and this has generated new assignments for Dovre.
Dovre's operations in Canada have grown well, and customers are investing in
both Alberta oil sands projects and new oil rig projects in Newfoundland, like
ExxonMobil's Hebron and Kearl projects. In addition, Dovre has signed agreements
with two new customers in Canada. The US operations have not performed according
to the expectation. Corrective measures were already executed during the second
quarter.
The catastrophic event of the oil spill in the Gulf of Mexico happened in April,
2010. Proha and Dovre have not been involved in the project, and therefore,
there are no liability issues arising from it.
In international markets, Dovre has acted in line with the demands of its major
customers, and the projects of the new business entities have produced positive
results already during the first half of the year. Especially in Australia and
South-East Asia, there is a strong demand for professional project management
services. In addition, gas projects in Papua New Guinea are being started from
Brisbane, Australia, and oil and gas projects are also ongoing on Sakhalin
Island, Russia.
As announced earlier in Q2, Dovre Norway has signed three global frame
agreements for three years with Statoil instead of the two existing ones. New
agreements cover services for Project Management, Supply Chain Management and
Project Control. This provides us with a firm basis to continue growing the
business in Norway. Dovre Norway will concentrate to increase profitability by
focusing on sales efforts.
The net sales of Software Solutions division grew in Q2. Especially Safran had a
strong quarter with 40% growth in net sales compared to the same period of last
year. The customer satisfaction of Safran customers is excellent. To get an
international break thru and increase sales outside Norway, a new managing
director was hired. Camako had a satisfactory Q2 and made a positive result.
Major progress was made on sales of Camako EPM software that gives further
functionality for the existing Microsoft Project Server customers. The global
project management process and software implementation project for KONE
Industrial has brought the client operational benefits, and has resulted in
additional projects with KONE.
The 2009 started work of streamlining the Group structure is proceeding
according to plan. The reorganization of the Group's legal structure has begun.
The Group's financing and financial management will be developed towards a
global Group structure instead of separate companies. Additionally, an
initiative has been started within the Group to harmonize the financial
reporting processes and systems. In all business units, the cost structure is
being further improved.
SHARES, SHARE CAPITAL, AND AUTHORIZATION TO ISSUE SHARES
Shares and share capital
Proha Plc has one class of shares. Each share entitles the shareholder to one
vote. The Proha Plc shares are listed in the NASDAQ OMX Helsinki Ltd.
On June 30, 2010, the subscribed capital of Proha Plc was EUR 15,916,854,20. On
June 30, 2010, the total number of Proha Plc shares was 61,961,751.
Option rights
No shares were subscribed for with Proha Plc's option during the period under
review.
On January 1, 2010, a total of 2.697.000 options were outstanding of the option
plans of 2006 and 2007, entitling to subscription of 2.697.000 shares. Each
option right entitles to subscription of one share.
The option plan of 2006 expired on May 25, 2010.
Of the option plan of 2007 a total of 1.977.000 options were outstanding on
January 1, 2010, entitling to subscription of 1.977.000 shares. The company has
in reserve 33.000 option rights. During the period under review, 351.000 options
were redeemed to the company. During the period under review, Ilkka Toivola,
Proha Plc's CEO, was granted 100.000 option rights and Mike Critch was granted
100.000 option rights under the option plan of 2007 C series at the subscription
price of EUR 0.37 per option.
On June 30, 2010, a total of 1.977.000 option rights of the 2007 option plan
were outstanding, and of these the company had in reserve 184.000 options.
Stock option plan 2010
The Board of Directors meeting of the Proha Plc held on May 27, 2010, approved a
new option plan 2010 based on the authorization given by the annual general
meeting of April 18, 2007. Under this plan, a total of 2.450.000 stock options
are offered for subscription to the key persons in the Proha Group companies.
The dilution effect of the stock option plan is less than 4% of the total number
of Proha shares. Each stock option entitles the holder to subscribe for one
share in Proha.
The option plan is divided into three series. The number of stock options and
the subscription periods and subscription prices, which are based on the final
daily ratings in the public trading of the shares of Proha Plc, are as follows:
- A-series: a maximum of 900.000 stock options can be given, the subscription
price is the average rating in 2010 Q1 and the subscription period 1.3.2012 -
28.2.2015
- B-series: a maximum of 775.000 stock options can be given, the subscription
price is the average rating in 2011 Q1 and the subscription period 1.3.2013 -
28.2.2016
- C-series: a maximum of 775.000 stock options can be given, the subscription
price is the average rating in 2012 Q 1 and the subscription period 1.3.2014 -
28.2.2017
The Authorization of the Board of Directors
The Annual General Meeting (AGM) on April 18, 2007 authorized the Board of
Directors to resolve to issue shares through issuance of shares or special
rights entitling to shares. In accordance with the authorization, the Board can
resolve to issue a maximum of 12.243.734 shares through issuance of shares or
special rights entitling to shares (including option rights) under Chapter 10,
Section 1 of the Companies Act, in one or more issues. The authorization
includes both the issuance of new shares as well as shares held by the Group,
and corresponded to 20 percent of the Group's total number of shares at the date
of the AGM. The authorization is effective until April 17, 2012.
During the period, no new shares were issued based on this authorization. A
total of 11.500.653 shares were remaining of the authorization on June 30, 2010.
TRADING AND MARKET CAPITALIZATION
In January - June, 2010, approximately 22.3 million Proha shares were traded on
the NASDAQ OMX Helsinki Ltd., corresponding to a turnover of approximately EUR
7.9 million.
From January 1 to June 30, 2010, the lowest quotation was EUR 0.29 and the
highest quotation was EUR 0.41. On June 30, 2010, the closing quotation was EUR
0.34.
The period-end market capitalization was approximately EUR 21.1 million.
The number of registered shareholders of Proha Plc totaled 3.210 on June 30,
2010.
CORPORATE GOVERNANCE
Decisions made at the Proha Plc's Annual General Meeting
The Annual General Meeting of Proha Plc on March 17, 2010, decided that the
number of Board members is four. The following four members were elected to
continue as the members of the Board: Ilari Koskelo, Antti Manninen, Leena
Mäkelä and Hannu Vaajoensuu. Ernst & Young Oy, Authorized Public Accountants,
continued as the Group's auditor.
A separate stock exchange bulletin has been issued on the resolutions of the
Annual General Meeting on March 17, 2010.
Decisions of the organizational meeting of Proha Plc's Board of Directors
The organizational meeting of Proha Plc's Board of Directors on March 17, 2010,
elected Hannu Vaajoensuu as the chairman and Antti Manninen as the vice chairman
of the Board.
Corporate Governance
Proha complies with the Finnish Corporate Governance Code, but makes the
following exception to the code:
Recommendation 14: The majority of the Board is not independent of the company.
Of the four Board members, independent of the company and its significant
shareholders are the chairman Hannu Vaajoensuu and the vice chairman Antti
Manninen.
The Corporate Governance Statement from 2009 has been composed in accordance
with Recommendation 51 of the new Corporate Governance Code. The Corporate
Governance Statement was issued separately in the Review by Proha Plc Board of
Directors.
Proha's corporate governance principles are available on the company's website
at www.proha.com.
SHORT-TERM RISKS AND UNCERTAINTIES
The success of the Oil & Gas Services division is influenced by the energy
sector markets and investment levels in the oil and gas industry. Oil & Gas
Services expands its business to new markets. Growth in new markets demands
investments and also includes operational risks.
In Oil & Gas Services' business operations, a few major clients constitute a
significant share of net sales. With these major clients Dovre has extensive
global delivery agreements. Therefore, Dovre is highly dependent on key
customers and the long-term frame agreements signed with them.
As mentioned already in the Outlook and the Business Performance sections, Proha
and Dovre have not been involved in the BP project in the Gulf of Mexico, and
therefore, there are no liability issues from the project. This oil spill
accident is likely to cause delay in some of the US projects and especially
projects in the Gulf of Mexico. However, Proha expects the global consumption of
oil to continue to grow driven by strong demand in China and India. It is
expected, therefore, that more investments will be made in other oil fields to
make up for the possible shortage in the US production.
In general, there are risks involved in the oil and gas industry, and single
projects may have delays and accidents. These type of situations may affect net
sales of the Oil & Gas Services division.
For Software Solutions, the IT market forecasts indicate that investment level
is steady and it may slightly grow. The financial situation of single customers
varies. However, the customers consider project management development as a
very important competitive advantage.
In the first half of 2010, Proha did not use any currency hedging. The most
important currencies for the Proha Group are euro, Norwegian crown, US dollar,
and Canadian dollar. Currency fluctuations can affect the company's net sales.
Receivables and payables in foreign currencies can also realize in translation
profits or losses.
EVENTS AFTER THE PERIOD
There were no events after the period.
Espoo, July 30, 2010
Proha Plc
Board of Directors
For additional information, please contact:
PROHA PLC
CEO Ilkka Toivola. tel. +358 (0)20 436 2000
ilkka.toivola@proha.com
Distribution:
NASDAQ OMX Helsinki
Major media
SUMMARY FINANCIAL STATEMENT AND NOTES
The interim report is prepared in line with the International IFRS Standards and
the same accounting principles have been applied as in the 2009 financial
statements. Key indicator calculations remain unchanged and have been presented
in the 2009 financial statements.
Reporting structure
As of January 1, 2010, the reporting structure has been changed so that Oil &
Gas Services, Software Solutions and other operations constitute separate
reportable divisions. The information for the first and second quarter as well
as the financial period of January 1 - June 30, 2010 is presented according to
the above mentioned segment division.
Income statement presentation
Deviating from the earlier practice, share of results in associates was in the
financial statements of 2009 presented as a part of operating result. The
information for January 1 - June 30, 2010 and the comparative data have been
restated to correspond to this presentation.
GROUP COMPREHENSIVE INCOME STATEMENT
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | Change | 1-6 | 1-6 | Change | 1-12 |
| (EUR thousand) | 2010 | 2009 | % | 2010 | 2009 | % | 2009 |
--------------------------------------------------------------------------------
| NET SALES |18 554 | 14 986 | 23.8 | 34 849 | 30 169 | 15.5 | 60 738 |
| | | | | | | | |
--------------------------------------------------------------------------------
| Other | 36 | 46 | -21.4 | 50 | 92 | -46.1 | 208 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Share of | | -49 | 100.0 | | -100 | 100.0 | -100 |
| results in | | | | | | | |
| associates | | | | | | | |
--------------------------------------------------------------------------------
| Material and | -11 | 0 |-5 616.6| -52 | -58 | -10.3 | -156 |
| services | | | | | | | |
--------------------------------------------------------------------------------
| Employee |-16 321|-14 019 | 16.4 |-30 947 |-28 145 | 10.0 |-55 735 |
| benefits | | | | | | | |
| expense | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -136 | -181 | -24.9 | -261 | -327 | -20.3 | -650 |
| and | | | | | | | |
| amortization | | | | | | | |
--------------------------------------------------------------------------------
| Impairment | | | | | | | -118 |
--------------------------------------------------------------------------------
| Other | -1 255| -1 032 | 21.6 | -2 246 | -2 072 | 8.4 | -3 924 |
| operating | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | 867 | -249 | 448.0 | 1 393 | -442 | 415.5 | 263 |
| RESULT | | | | | | | |
--------------------------------------------------------------------------------
| Financing | 220 | 51 | 334.9 | 453 | 416 | 8.9 | 887 |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Financing | -102 | -195 | -47.8 | -140 | -390 | -64.1 | -1 240 |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| RESULT BEFORE | 985 | -394 | 350.2 | 1 706 | -415 | 510.8 | -90 |
| TAX | | | | | | | |
--------------------------------------------------------------------------------
| Tax on income | -437 | -71 | 519.1 | -703 | -91 | 670.5 | -659 |
| from | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR THE | 548 | -464 | 217.9 | 1 003 | -507 | 298.1 | -749 |
| PERIOD | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | |
| comprehensive | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| Exchange | -110 | 199 | | 604 | 849 | | 1 593 |
| differences on | | | | | | | |
| translating | | | | | | | |
| foreign | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Other | -110 | 199 | | 604 | 849 | | 1 593 |
| comprehensive | | | | | | | |
| income for the | | | | | | | |
| period. net of | | | | | | | |
| tax | | | | | | | |
--------------------------------------------------------------------------------
| TOTAL | 438 | -266 | | 1 607 | 343 | | 844 |
| COMPREHENSIVE | | | | | | | |
| INCOME FOR THE | | | | | | | |
| PERIOD | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ALLOCATION OF | | | | | | | |
| RESULT | | | | | | | |
| FOR THE PERIOD | | | | | | | |
--------------------------------------------------------------------------------
| Result | 558 | -473 | 217.9 | 1010 | -526 | 292.1 | -871 |
| attributable | | | | | | | |
| to equity | | | | | | | |
| holders of the | | | | | | | |
| parent | | | | | | | |
--------------------------------------------------------------------------------
| Result | -10 | 9 | -217.8 | -7 | 19 | -133.8 | 121 |
| attributable | | | | | | | |
| to minority | | | | | | | |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| Total | 548 | -464 | 217.9 | 1003 | -507 | 298.1 | -749 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ALLOCATION OF | | | | | | | |
| COMPREHENSIVE | | | | | | | |
| RESULT FOR THE | | | | | | | |
| PERIOD | | | | | | | |
--------------------------------------------------------------------------------
| Result | 431 | -292 | -247.3 | 1 593 | 317 | 402.4 | 721 |
| attributable | | | | | | | |
| to equity | | | | | | | |
| holders of the | | | | | | | |
| parent | | | | | | | |
--------------------------------------------------------------------------------
| Result | 7 | 27 | 72.9 | 14 | 26 | 45.8 | 123 |
| attributable | | | | | | | |
| to minority | | | | | | | |
| interest | | | | | | | |
--------------------------------------------------------------------------------
| Total | 438 | -266 | 264.8 | 1607 | 343 | 368.7 | 844 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/share | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Undiluted | 0.01 | -0.01 | 217.9 | 0.02 | -0.01 | 292.1 | -0.01 |
--------------------------------------------------------------------------------
| Diluted | 0.01 | -0.01 | 217.9 | 0.02 | -0.01 | 292.0 | -0.01 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehensive | | | | | | | |
| earnings/share | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Undiluted | 0.01 | 0.00 | -247.3 | 0.03 | 0.01 | 402.4 | 0.01 |
--------------------------------------------------------------------------------
| Diluted | 0.01 | 0.00 | -247.3 | 0.03 | 0.01 | 401.9 | 0.01 |
--------------------------------------------------------------------------------
AVERAGE NUMBER OF SHARES
--------------------------------------------------------------------------------
| Average number of shares: |
| | 1-6 | 1-6 | 1-12 | |
| | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
| Undiluted | 61 961 751 | 61 961 751 | 61 961 751 | |
--------------------------------------------------------------------------------
| Diluted | 61 971 223 | 61 961 751 | 61 961 751 | |
--------------------------------------------------------------------------------
| Number of shares at the end of the period: |
--------------------------------------------------------------------------------
| | 30.6.2010 | 30.6.2009 | 31.12.2009 | |
--------------------------------------------------------------------------------
| Undiluted | 61 961 751 | 61 961 751 | 61 961 751 | |
--------------------------------------------------------------------------------
| Diluted | 62 018 581 | 61 961 751 | 61 961 751 | |
--------------------------------------------------------------------------------
GROUP BALANCE SHEET
--------------------------------------------------------------------------------
| | 30.6. | 30.6. | | 31.12. |
| (EUR thousand) | 2010 | 2009 | Change % | 2009 |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 1 631 | 2 022 | -19.4 | 1 696 |
--------------------------------------------------------------------------------
| Goodwill | 7 455 | 6 216 | 19.9 | 7 022 |
--------------------------------------------------------------------------------
| Tangible assets | 177 | 260 | -32.0 | 198 |
--------------------------------------------------------------------------------
| Investments in associates | 933 | 933 | 0.0 | 933 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 148 | 129 | 14.9 | 211 |
--------------------------------------------------------------------------------
| Trade receivables and other | 175 | 431 | -59.4 | 260 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Deferred tax asset | 452 | 287 | 57.4 | 398 |
--------------------------------------------------------------------------------
| Non-current assets | 10 969 | 10 277 | 6.7 | 10 718 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Trade receivables and other | 17 803 | 15 648 | 13.8 | 15 250 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Tax receivable, income tax | 41 | 214 | -80.7 | 185 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 5 340 | 3 104 | 72.0 | 3 758 |
--------------------------------------------------------------------------------
| Current assets | 23 184 | 18 966 | 22.2 | 19 193 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 34 153 | 29 243 | 16.8 | 29 911 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 15 917 | 15 917 | 0.0 | 15 917 |
--------------------------------------------------------------------------------
| Share premium account | 0 | 4 379 | -100.0 | 0 |
--------------------------------------------------------------------------------
| Fair value reserve and other | 5 176 | 418 | 1137.8 | 5 193 |
| reserves | | | | |
--------------------------------------------------------------------------------
| Translation differences | 862 | -855 | -200.8 | -140 |
--------------------------------------------------------------------------------
| Retained earnings | -6 834 | -6 986 | 2.2 | -7 449 |
--------------------------------------------------------------------------------
| Equity attributable to equity | 15 121 | 12 873 | 17.5 | 13 520 |
| holders of the parent | | | | |
--------------------------------------------------------------------------------
| Minority interest | 209 | 98 | 113.8 | 195 |
--------------------------------------------------------------------------------
| Shareholders' equity | 15 330 | 12 970 | 18.2 | 13 714 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 745 | 637 | 17.1 | 669 |
--------------------------------------------------------------------------------
| Long-term liabilities, | 717 | 1 087 | -34.1 | 608 |
| interest-bearing | | | | |
--------------------------------------------------------------------------------
| Long-term liabilities, | 0 | 177 | -99.8 | 153 |
| interest-free | | | | |
--------------------------------------------------------------------------------
| Liabilities from defined | 1 395 | 1 006 | 38.6 | 1 290 |
| benefit plan | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 2 857 | 2 907 | -1.7 | 2 720 |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Short-term interest-bearing | 2 877 | 2 210 | 30.2 | 2 878 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade payables and other | 12 404 | 10 952 | 13.3 | 10 181 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Tax liability, income tax | 649 | 204 | 218.3 | 317 |
--------------------------------------------------------------------------------
| Current provisions | 35 | | | 100 |
--------------------------------------------------------------------------------
| Current liabilities | 15 965 | 13 365 | 19.5 | 13 477 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 34 153 | 29 243 | 16.8 | 29 911 |
--------------------------------------------------------------------------------
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
a) Share capital
b) Share premium account
c) Unrestricted equity fund
d) Fair value reserve and other reserves
e) Translation differences
f) Retained earnings
g) Equity attributable to equity holders of the parent
h) Minority interest
i) Shareholders' equity total
--------------------------------------------------------------------------------
| | a) | b) | c) | d) | e) |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 15 917 | 4 379 | 227 | 196 | -1 154 |
| EQUITY 1.1.2009 | | | | | |
--------------------------------------------------------------------------------
| Comprehensive | 0 | 0 | 18 | 0 | 299 |
| income | | | | | |
--------------------------------------------------------------------------------
| Share based | 0 | 0 | 0 | 0 | 0 |
| payments | | | | | |
--------------------------------------------------------------------------------
| Transfers between | 0 | 0 | -23 | 0 | 0 |
| items | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 15 917 | 4 379 | 223 | 196 | -855 |
| EQUITY 30.6.2009 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | a) | b) | c) | d) | e) |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 15 917 | 0 | 217 | 4 976 | -140 |
| EQUITY 1.1.2010 | | | | | |
--------------------------------------------------------------------------------
| Comprehensive | 0 | 0 | 9 | 0 | 1 003 |
| income | | | | | |
--------------------------------------------------------------------------------
| Share based | 0 | 0 | 0 | 0 | 0 |
| payments | | | | | |
--------------------------------------------------------------------------------
| Transfers between | 0 | 0 | -26 | 0 | 0 |
| items | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 15 917 | 0 | 201 | 4 976 | 862 |
| EQUITY 30.6.2010 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | f) | g) | h) | i) |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | -6 808 | 12 756 | 72 | 12 828 |
| 1.1.2009 | | | | |--------------------------------------------------------------------------------
| Comprehensive income | -229 | 317 | 26 | 343 |
--------------------------------------------------------------------------------
| Share based payments | 28 | 28 | 0 | 28 |
--------------------------------------------------------------------------------
| Transfers between items | 23 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | -6 986 | 12 873 | 98 | 12 970 |
| 30.6.2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | f) | g) | h) | i) |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | -7 449 | 13 520 | 195 | 13 714 |
| 1.1.2010 | | | | |
--------------------------------------------------------------------------------
| Comprehensive income | 581 | 1 593 | 14 | 1 607 |
--------------------------------------------------------------------------------
| Share based payments | 8 | 8 | 0 | 8 |
--------------------------------------------------------------------------------
| Transfers between items | 26 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | -6 834 | 15 121 | 209 | 15 330 |
| 30.6.2010 | | | | |
--------------------------------------------------------------------------------
GROUP CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| | 1-6 | 1-6 | 1-12 |
| (EUR thousand) | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | |
--------------------------------------------------------------------------------
| | Operating result | 1 393 | -442 | 263 |
--------------------------------------------------------------------------------
| | Adjustments, total | 270 | 546 | 1 375 |
--------------------------------------------------------------------------------
| | Change in net working capital, total | 1 113 | -1 040 | -1 531 |
--------------------------------------------------------------------------------
| | Interest paid | -86 | -127 | -281 |
--------------------------------------------------------------------------------
| | Interest received | 20 | 29 | 39 |
--------------------------------------------------------------------------------
| | Other financial expenses paid | -18 | -10 | -267 |
--------------------------------------------------------------------------------
| | Other financial income received | 10 | 1 | 55 |
--------------------------------------------------------------------------------
| | Income taxes paid | -454 | -510 | -975 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | 2 247 | -1 553 | -1 322 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| | Investments in tangible and intangible | -250 | -101 | -147 |
| | assets | | | |
--------------------------------------------------------------------------------
| | Acquisition of subsidiaries net cash | -118 | -6 | -179 |
| | acquired *) | | | |
--------------------------------------------------------------------------------
| | Investments in other investments | 0 | 0 | -75 |
--------------------------------------------------------------------------------
| | Increase (-) / decrease (+) in loan | 0 | 178 | 214 |
| | receivables | | | |
--------------------------------------------------------------------------------
| | Dividends received | 23 | 6 | 6 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | -346 | 77 | -180 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| | Proceeds from short-term loans | 300 | 1 787 | 2 467 |
--------------------------------------------------------------------------------
| | Repayments of short-term loans | -619 | -326 | -326 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | -319 | 1 462 | 2 142 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | 1 582 | -14 | 640 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning of the | 3 758 | 3 118 | 3 118 |
| period | | | |
--------------------------------------------------------------------------------
| Foreign exchange rate adjustment | 190 | -118 | 50 |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | 1 392 | 104 | 590 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of the period | 5 340 | 3 104 | 3 758 |
--------------------------------------------------------------------------------
*) Additional purchase price for earlier acquisitions
´
GROUP INCOME STATEMENT QUARTERLY
--------------------------------------------------------------------------------
| | 2010 | 2009 | 2010 | 2009 | 2009 | 2009 |
| (EUR thousand) | 1-3 | 1-3 | 4-6 | 4-6 | 7-9 | 10-12 |
--------------------------------------------------------------------------------
| NET SALES |16 295 | 15 183 | 18 554 | 14 986 | 15 300 | 15 269 |
| | | | | | | |
--------------------------------------------------------------------------------
| Other operating | 13 | 46 | 36 | 46 | -47 | 163 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Share of result in | 0 | -51 | 0 | -49 | 0 | 0 |
| associates | | | | | | |
--------------------------------------------------------------------------------
| Materials and | -41 | -58 | -11 | 0 | -68 | -30 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee benefits |-14 626|-14 126 | -16 321| -14 019| -13 966 | -13 623 |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -125 | -146 | -136 | -181 | -160 | -298 |
| amortization | | | | | | |
--------------------------------------------------------------------------------
| Other operating | -991 | -1 040 | -1 255 | -1 032 | -604 | -1 248 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| OPERATING RESULT | 526 | -192 | 867 | -249 | 455 | 232 |
--------------------------------------------------------------------------------
| % | 3.2 % | -1.3 % | 4.7 % | -1.7 % | 3.0 % | 1.5 % |
--------------------------------------------------------------------------------
| Financing income | 234 | 366 | 220 | 51 | 59 | 411 |
--------------------------------------------------------------------------------
| Financing expenses | -38 | -195 | -102 | -195 | -391 | -459 |
--------------------------------------------------------------------------------
| RESULT BEFORE TAX | 721 | -22 | 985 | -394 | 123 | 185 |
--------------------------------------------------------------------------------
| % | 4.4 % | -0.1 % | 5.3 % | -2.6 % | 0.8 % | 1.2 % |
--------------------------------------------------------------------------------
| Tax on income from | -265 | -21 | -437 | -71 | -108 | -455 |
| operations | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR THE PERIOD | 456 | -42 | 548 | -464 | 15 | -270 |
--------------------------------------------------------------------------------
| % | 2.8 % | -0.3 % | 3.0 % | -3.1 % | 0.1 % | -1.8 % |
--------------------------------------------------------------------------------
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| (EUR thousand) | 30.6. | 30.6. | 31.12. |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| COLLATERAL FOR OWN COMMITMENTS | | | |
--------------------------------------------------------------------------------
| Debts secured by corporate mortgages | | | |
--------------------------------------------------------------------------------
| Loans from financial institutions | 2869 | 2 701 | 2951 |
--------------------------------------------------------------------------------
| Book value of shares of Dovre Group AS | 7664 | 5 575 | 7186 |
| and Dovre Fabcon AS and current assets | | | |
| of Dovre Fabcon AS given as security | | | |
--------------------------------------------------------------------------------
| Debts secured by assets | | | |
--------------------------------------------------------------------------------
| Loans and checking account credit lines | 0 | 222 | 0 |
--------------------------------------------------------------------------------
| Book value of trade receivables and | 1006 | 515 | 650 |
| fixed assets given as security | | | |
--------------------------------------------------------------------------------
| Debts secured by shares | | | |
--------------------------------------------------------------------------------
| Loans and checking account credit lines | 450 | 293 | 515 |
--------------------------------------------------------------------------------
| Book value of pledged shares | 933 | 511 | 933 |
--------------------------------------------------------------------------------
| Future minimum lease payments under | | | |
| non-cancellable operating leases | | | |
--------------------------------------------------------------------------------
| Not later than one year | 233 | 188 | 316 |
--------------------------------------------------------------------------------
| Later than one year and not later than | 1 440 | 691 | 1 096 |
| five years | | | |
--------------------------------------------------------------------------------
| Total | 1 673 | 879 | 1 412 |
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------
| Investments in associates | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Carrying value, opening balance | 933 | 1 342 | 1 342 |
--------------------------------------------------------------------------------
| Additions | 0 | 53 | 0 |
--------------------------------------------------------------------------------
| Disposals | 0 | -439 | -310 |
--------------------------------------------------------------------------------
| Share of profit / loss in associates | 0 | -91 | -100 |
--------------------------------------------------------------------------------
| Translation differences | 0 | 67 | 0 |
--------------------------------------------------------------------------------
| At the end of the financial year | 933 | 933 | 933 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transactions with other related | 1-6/2010 | 1-6/2009 | 1-12/2009 |
| parties | | | |
--------------------------------------------------------------------------------
| Purchases | | | |
--------------------------------------------------------------------------------
| Consulting fees and rents*) | 0 | -15 | 149 |
--------------------------------------------------------------------------------
| Consulting fees and reimbursments**) | 0 | 114 | 335 |
--------------------------------------------------------------------------------
| Consulting fees and reimbursments***)| 0 | 0 | 20 |
--------------------------------------------------------------------------------
| Other | 0 | 117 | 0 |
--------------------------------------------------------------------------------
| Total | 0 | 216 | 504 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Open balances with the related parties | 30.6.2010 | 30.6.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Trade payables | 0 | 0 | 9 |
--------------------------------------------------------------------------------
*) Consulting fees and rents have been paid to the companies
controlled by Birger Flaa, a former member of the board in
Proha Plc (resigned 16.6.2009)
**) Consulting fees and rents have been paid to a company
controlled by Otto Søberg, the former CEO of Dovre Group AS
(resigned 9.10.2009)
***) Consulting fees and rents have been paid to Havacment Oy,
a company controlled by Hannu Vaajoensuu, a member of the board
in Proha Plc.
GROUP KEY FINANCIAL PERFORMANCE INDICATORS
--------------------------------------------------------------------------------
| | 4-6 | 4-6 | 1-6 | 1-6 | 1-12 |
| (EUR million) | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net sales | 18.6 | 15.0 | 34.8 | 30.2 | 60.7 |
--------------------------------------------------------------------------------
| Operating result | 0.9 | -0.2 | 1.4 | -0.4 | 0.3 |
--------------------------------------------------------------------------------
| % of Net sales | 4.7 % | -1.7 % | 4.0 % | -1.5 % | 0.4 % |
--------------------------------------------------------------------------------
| Result before taxes | 1.0 | -0.4 | 1.7 | -0.4 | -0.1 |
--------------------------------------------------------------------------------
| % of Net sales | 5.3 % | -2.6 % | 4.9 % | -1.4 % | -0.1 % |
--------------------------------------------------------------------------------
| Result for the period | 0.5 | -0.5 | 1.0 | -0.5 | -0.9 |
--------------------------------------------------------------------------------
| % of Net sales | 2.9 % | -3.1 % | 2.9 % | -1.7 % | -1.4 % |
--------------------------------------------------------------------------------
| Return on equity, % | 14.5 % | -14.1 % | 13.8 % | -7.9 % | -5.6 % |
--------------------------------------------------------------------------------
| Return on investment, % | 23.4 % | -5.2 % | 15.7 % | 11.1 % | 6.7 % |
--------------------------------------------------------------------------------
| Interest-bearing | 3.6 | 3.3 | 3.6 | 3.3 | 3.5 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 5.3 | 3.1 | 5.3 | 3.1 | 3.8 |
--------------------------------------------------------------------------------
| Gearing, % | -11.4 % | 1.5 % | -11.4 % | 1.5 % | -2.0 % |
--------------------------------------------------------------------------------
| Equity-ratio, % | 45.8 % | 45.1 % | 45.8 % | 45.1 % | 46.5 % |
--------------------------------------------------------------------------------
| Balance sheet total | 34.2 | 29.2 | 34.2 | 29.2 | 29.9 |
--------------------------------------------------------------------------------
| Gross investments | 0.0 | 0.1 | 0.4 | 0.1 | 3.5 |
--------------------------------------------------------------------------------
| % of Net sales | 0.1 % | 0.9 % | 1.3 % | 0.3 % | 5.7 % |
--------------------------------------------------------------------------------
| R & D costs | 0.1 | 0.1 | 0.4 | 0.3 | 0.8 |
--------------------------------------------------------------------------------
| % of Net sales | 0.8 % | 0.9 % | 1.2 % | 1.0 % | 1.3 % |
--------------------------------------------------------------------------------
| Personnel average for the | 413 | 401 | 406 | 397 | 404 |
| period | | | | | |
--------------------------------------------------------------------------------
| Personnel at the end of | 422 | 400 | 422 | 400 | 408 |
| the period | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | | | | | |
--------------------------------------------------------------------------------
| Basic | 0.01 | -0.01 | 0.02 | -0.01 | -0.01 |
--------------------------------------------------------------------------------
| Diluted | 0.01 | -0.01 | 0.02 | -0.01 | -0.01 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 0.24 | 0.21 | 0.24 | 0.21 | 0.22 |
--------------------------------------------------------------------------------
LARGEST SHAREHOLDERS AS OF JUNE 30, 2010
--------------------------------------------------------------------------------
| Name Number of % of all shares |
| shares and voting |
| rights |
--------------------------------------------------------------------------------
| Etra Capital Oy *) | 13 000 000 | 21.0 % |
--------------------------------------------------------------------------------
| Etola Erkki *) | 3 000 000 | 4.8 % |
--------------------------------------------------------------------------------
| Koskelo Ilari **) | 2 962 590 | 4.8 % |
--------------------------------------------------------------------------------
| Mäkelä Pekka | 1 982 375 | 3.2 % |
--------------------------------------------------------------------------------
| Navdata Oy **) | 1 300 000 | 2.1 % |
--------------------------------------------------------------------------------
| Siik Rauni | 1 175 000 | 1.9 % |
--------------------------------------------------------------------------------
| Thominvest | 1 043 500 | 1.7 % |
--------------------------------------------------------------------------------
| Hinkka Petri | 1 000 000 | 1.6 % |
--------------------------------------------------------------------------------
| Fim Pankki Oy | 813 000 | 1.3 % |
--------------------------------------------------------------------------------
| Virkki Risto | 730 000 | 1.2 % |
--------------------------------------------------------------------------------
| Siik Seppo | 700 000 | 1.1 % |
--------------------------------------------------------------------------------
| Ruokostenpohja Ismo Eero | 678 950 | 1.1 % |
--------------------------------------------------------------------------------
| Paasi Kari | 669 300 | 1.1 % |
--------------------------------------------------------------------------------
| FIM Nordic Sijoitusrahasto | 636 974 | 1.0 % |
--------------------------------------------------------------------------------
| Hinkka Invest Oy | 583 390 | 0.9 % |
--------------------------------------------------------------------------------
| Jokinen Reino | 530 000 | 0.9 % |
--------------------------------------------------------------------------------
| Nordea Pankki Suomi Oyj | 423 775 | 0.7 % |
--------------------------------------------------------------------------------
| Olsson Vesa Ensio | 400 000 | 0.7 % |
--------------------------------------------------------------------------------
| Saikko Risto Olavi | 395 065 | 0.6 % |
--------------------------------------------------------------------------------
| Kefura Ab | 370 000 | 0.6 % |
--------------------------------------------------------------------------------
*) Etra Capital Oy is a controlling interest company of Erkki Etola.
**) Navdata Oy is a controlling interest company of Ilari Koskelo, a member of
the Board in Proha Plc.
Hannu Vaajoensuu's, the chairman of the Board in Proha Plc, family members
living in the same household with him own directly and through Havacment Oy, a
controlling interest company of Hannu Vaajoensuu, a total of 710.000 Proha Plc
shares. Antti Manninen owns directly and through Amlax Oy, a controlling
interest company of Antti Manninen, a total of 500.500 Proha Plc shares. In
addition, Amlax Oy, a controlling interest company by Mr. Antti Manninen, has
entered into forward trading contracts, which, once matured, will result in the
company owning a total of 513.000 shares of Proha Plc. According to their terms
and conditions, the forward trading contracts will mature on
December 17, 2010.
© 2024 Nasdaq, Inc. All Rights Reserved |