2007-05-03 07:30:00 CEST
2007-05-03 07:30:00 CEST
REGULATED INFORMATION
Affecto Oyj - Quarterly report
AFFECTO PLC'S INTERIM REPORT 1-3/2007
AFFECTO PLC STOCK EXCHANGE RELEASE 3 MAY 2007 at 08:30
AFFECTO PLC'S INTERIM REPORT 1-3/2007
GROUP KEY FIGURES
MEUR 1-3/2007 1-3/2006 2006
Net sales 17.6 10.4 50.2
Operating result before IFRS3 items 2.4 -0.2 4.1
% of net sales 13.5 -1.7 8.1
Operating result 2.0 -0.2 3.6
% of net sales 11.4 -2.2 7.3
Result before taxes 1.9 -0.3 3.5
Result for the period 1.4 -0.3 2.6
Equity ratio, % 50.1 57.6 52.0
Net gearing, % 29.9 9.9 35.2
Earnings per share, eur 0.08 -0.02 0.16
Earnings per share (diluted), eur
0.08 -0.02 0.16
Equity per share, eur 2.26 2.16 2.30
CEO Pekka Eloholma comments the first quarter 2007:
"I am very satisfied with the developments in first quarter. Our net sales
grew by 68%. The quarter was the best in two years regarding both net sales
and operating profit."
"Our net sales grew to 17.6 MEUR (10.4 MEUR). The growth was especially strong
in Baltic (108%), but it was also good in Finland (18%). The acquisitions done
in late 2006 (ZenPark & Intellibis) created a good foundation for growth, but
also the organic growth was significant (approx. 24%). The quarter had good
profitability and EBIT was 2.0 MEUR i.e. 11% of net sales. Profitability
improved especially in the Baltic. The order backlog remained at a strong
level."
"The demand for our solutions has remained good in Finland. The Baltic
business has grown significantly and during the quarter we increased our
Baltic delivery capacity by hiring approx. 20 new employees. The Swedish
business has also developed positively and the demand for Business
Intelligence solutions is expected to remain strong also during the remaining
part of the year."
"Positive development is expected to continue during year 2007. Based on the
recent acquisitions and good order backlog the company seeks to reach net
sales of approx. 70 MEUR in 2007. The profitability is also expected to
improve from year 2006. The second quarter is estimated to be clearly better
than Q2/2006."
Additional information:
CEO Pekka Eloholma, +358 205 777 737
CFO Satu Kankare, +358 205 777 202
SVP, M&A, Hannu Nyman, +358 205 777 761
This interim report has been prepared in accordance with the IFRS recognition
and measurement principles and applying the same accounting policies as in the
2006 annual consolidated financial statements. This interim report does not
comply with all of the requirements of IAS 34 Interim Financial Reporting.
The group has adopted the following standards and interpretations from the
beginning of 2007: IFRS 7, Financial instruments: Disclosures and Amendment to
IAS 1 - Capital disclosures. The adoption of IFRS 7 and the amendment to IAS 1
will expand disclosures presented in the annual financial statements.
This report is unaudited. The amounts in this report have been rounded from
exact numbers.
INTERIM REPORT 1-3/2007
Affecto builds versatile IT solutions for companies and organizations in
Finland, Sweden and the Baltic States to improve their efficiency in business
and to support the related decision-making. The company's IT solutions are
always customised to meet the specific needs of each customer. Affecto offers
business intelligence (BI) solutions that enable an efficient way of utilizing
and refining the data from ERP systems. The company develops also geographic
information systems (GIS) solutions and enterprise content management (ECM)
solutions that help companies to collect, organise and analyse digital
information in support of their business processes.
Affecto is headquartered in Helsinki, with other offices in Finland located in
Joensuu, Jyväskylä, Rauma, Tampere and Turku. The company has subsidiaries in
Estonia, Lithuania, Latvia and Sweden.
NET SALES AND PROFIT
Affecto's net sales in 1-3/2007 was 17.6 MEUR (1-3/2006 10.4 MEUR). Net sales
in Finland was 9.8 MEUR (1-3/2006 8.3 MEUR), in Baltic area 4.6 MEUR (2.2
MEUR) and 3.3 MEUR in Nordic (0.0 MEUR). Sales growth was 68%. Organic growth
is estimated to have been approx. 24% (calculated by comparing Affecto's
business in Q1/06 to same business in Q1/07). In Finland growth was 18% and in
Baltic it was 108%.
Sales of geographical segments based on location of assets
Total sales, MEUR 1-3/2007 1-3/2006 2006
Finland 9.8 8.3 36.3
Baltic 4.6 2.2 13.1
Nordic 3.3 0.0 0.9
Eliminations 0.0 0.0 0.0
Group total 17.6 10.4 50.2
The sales growth was based on good demand for our services in all our market
areas. Especially the Baltic business developed very positively compared to
last year.
Intellibis in Sweden, acquired in December 2006, forms the Nordic segment.
This was the first full quarter, when the company operated as part of Affecto.
Net sales of BI segment were 7.4 MEUR (2.5 MEUR), Operational solutions 8.3
MEUR (6.0 MEUR) and Cartographic solutions 1.9 MEUR (2.0 MEUR). The
acquisitions done in 2006 had impact mostly on the BI segment.
The sales of third-party licenses, delivered as part of solutions, decreased
from previous year, and their share of group net sales was below 5%.
Affecto's EBIT was 2.0 MEUR (-0.2 MEUR). EBIT in Finland was 0.9 MEUR (0.6
MEUR), Baltic EBIT was 1.0 MEUR (-0.4 MEUR) and Nordic EBIT was 0.4 MEUR. Last
year, Q1/2006 EBIT in Finland included 0.1 MEUR non-recurring income.
Operating result of geographical segments based on location of assets
Operating result, MEUR 1-3/2007 1-3/2006 2006
Finland 0.9 0.6 4.6
Baltic 1.0 -0.4 0.5
Nordic 0.4 0.0 0.0
Group management -0.4 -0.4 -1.5
Group total 2.0 -0.2 3.6
According to IFRS requirements, Q1/2007 EBIT includes 0.4 MEUR (0.1 MEUR) of
depreciation of intangible assets related to acquisitions. A significant part
of the depreciation is related to Nordic segment. In year 2006, such
depreciation totaled 0.4 MEUR. In year 2007, such depreciation is estimated to
amount to 1.2 MEUR.
The profitability developed positively during the first quarter both in
Finland and in the Baltic countries. The profit in Baltic improved
significantly thanks to good resource utilization rate. The profit improved
also in Finland although the redesign of the company's visual identity
burdened profit to some extent.
R&D expenditure in the review period totaled 0.2 MEUR (0.1 MEUR), i.e. 0.9% of
net sales (1.3%). The expenditure has been booked as costs.
Taxes for the period have been booked as taxes. Net profit for the period was
1.4 MEUR, while it was -0.3 MEUR last year.
Order backlog totaled 23.2 MEUR at the end of period (14.8 MEUR in 31 March
2006 and 24.2 MEUR in 31 December 2006).
FINANCE AND INVESTMENTS
At the end of the reporting period, Affecto's balance sheet totaled 80.2 MEUR
(Q1/2006: 61.8 MEUR). Significant part of the growth is due to the acquisition
of Intellibis AB at the end of 2006. Equity ratio was 50.1% (57.6%) and net
gearing was 29.9% (9.9%).
The financial loans were 18.6 MEUR as at 31 March 2007. The interest-bearing
net debt was 11.5 MEUR.
The company's cash and liquid assets were 7.0 MEUR (Q1/2006: 12.7 MEUR), of
which cash and cash equivalents were 6.5 MEUR and available-for-sale financial
assets 0.6 MEUR. Cash flow from operating activities for the reported period
was 2.5 MEUR (0.1 MEUR) and cash flow from investments was -0.5 MEUR (-0.6
MEUR).
Investments in non-current assets excluding acquisitions were 0.4 MEUR (0.3
MEUR) during the period.
Affecto has distributed dividends of 1.7 MEUR (previous year 1.5 MEUR) from
the profit of the year 2006. Dividend was paid on 11 April 2007 and has been
booked as non-interest bearing debt in this interim report.
EMPLOYEES
The number of employees was 778 persons at the end of the reporting period
(556 persons). The average number during the period was 767 persons (558). 419
employees, i.e. 54% of the employees are located outside of Finland.
The group management team was modified as of 1 February 2007 as a consequence
of the Intellibis acquisition in Sweden. Mr. Ray Byman was appointed as the
Sales Director in Finland and as a member of the group management team as of 7
March 2007.
BUSINESS REVIEW
Finland
Net sales in Finland was 9.8 MEUR (8.3 MEUR) and it increased by 18%. EBIT was
0.9 MEUR (0.6 MEUR). The year has started somewhat better than the previous
year. The business developed steadily during the quarter and the demand for
our services was reasonably good and was increasing especially regarding BI
services. The unit prices of consultant work have remained stable or even
slightly increased. The redesign of the company's visual identity burdened
profit to some extent.
The employees of ZenPark, acquired in September 2006, located in the Helsinki
area moved in January to the Pitäjänmäki office in Helsinki in order to be in
the same premises with other employees. ZenPark will be juridically merged to
Affecto Finland Oy in June 2007.
We have aimed to increase the number of employees during the period, but
recruiting of competent people is rather slow.
The growth of IT services market in Finland is rather slow, but the growth of
our segments (BI, ECM, GIS) is expected to exceed the average market growth.
The customers' activity has continued to be good. We received new orders from,
among others, Nokia, ABB, SOK, VR and various ministries.
Baltic (Lithuania, Latvia, Estonia)
The Baltic business mostly consists of projects related to large customer-
specific systems. Projects are typically larger and tender processes longer
than in Finland. The business is mostly classified to Operational solutions,
but also includes BI solutions.
The Baltic net sales grew 108% and was 4.6 MEUR (2.2 MEUR). Baltic EBIT was
1.0 MEUR (-0.4 MEUR). The business has developed very favorably compared to
last year, and the resource utilization rate and profitability is high in all
three countries. The steady continuing work on large projects has helped to
keep the utilization rate steadily high the whole period. The order backlog
has remained at a good level and offers stable resource utilization for the
next few months. During the period, new orders were received, among others,
from Unibet Software R&D, SOGAZ and Latvian State Revenue Service.
The company is actively recruiting more employees. During the first quarter,
the number of employees in Baltic grew by approx. 20. The Baltic countries
enjoy a high demand for competent workforce, which is predicted to increase
salary levels during the year. On the other hand, the rising salaries will
most likely also lead to increases in local project price levels, which will
help to compensate the rising salaries. EITO forecasts that the IT services
will grow by over 13% p.a. in the next few years in all three Baltic
countries.
Nordic
Affecto has expanded its business to the other Nordic countries by acquiring
Intellibis AB from Sweden in December 2006. Intellibis is the leading
specialised supplier of business intelligence (BI) solutions in Sweden.
During the first quarter the net sales was 3.3 MEUR and EBIT 0.4 MEUR. Year
ago, Affecto did not have business in Sweden. The business has grown by
approx. 15% compared to the net sales of Intellibis in 2006.
The business of Intellibis has developed positively during the early part of
2007. The price development has been positive and the utilization rate has
remained high. New customers like Fortum have been obtained and project
contracts with old customers like Folksam and Apoteket have been prolonged.
The delivery capacity has been increased by recruitments and we aim to
continue increasing number of employees during the year.
Business review by secondary segments
In the beginning of 2007 the secondary segments were modified by separating BI
(Business Intelligence), which previously was included in XBI, to its own
segment. GIS and ECM, which were included in XBI, were combined with
Customized solutions, which was renamed Operational solutions.
Business intelligence (BI) net sales grew by 197% and was 7.4 MEUR (2.5 MEUR).
The growth is largely explained by the acquisitions of ZenPark and Intellibis
in late 2006, but the also the organic growth has been good.
Customers' interest is increasingly focusing on larger solutions and
continuous service. Demand for BI services has continuously grown and the
utilization rate of project work improved compared to last year. Also the
public sector entities in Finland and Sweden show growing interest for BI
solutions. The research reports by various research companies speak about the
growing significance of BI as an IT investment target for organizations. For
example, Gartner expects the BI license market to grow by 10% p.a. during the
next few years. Recruiting competent new employees is challenging especially
in Sweden.
Net sales of Operational Solutions grew by 38% and was 8.3 MEUR (6.0 MEUR).
The growth is explained by the strong growth of the Baltic operations, where
large public sector projects continued steadily. The insurance solution
projects in South Africa and Sweden continued. The launched feasibility study
projects in Russia and Poland regarding TIA insurance solutions may later lead
to implementation projects in those countries. In Finland, the demand for
solutions was good and the utilization rate of project resources was good. In
addition, the co-operation with GIS software supplier ESRI was expanded by
founding an ESRI competence centre. The demand for services remained
moderately good in Baltic and in Finland.
Cartographic Solutions businesses net sales was 1.9 MEUR (2.0 MEUR). The
demand for digital geographic content and related services grew. The sales of
maps and other printed products was below last year, but we expect the demand
for consumer products to pick up for summer months along the normal annual
cycle.
CHANGES IN GROUP STRUCTURE
The Annual General Meeting held on 28 March 2007 decided to change the name of
the parent company to Affecto Plc.
In line with the strategy, the company has continued to evaluate M&A
prospects.
ANNUAL GENERAL MEETING AND GOVERNANCE
The Annual General Meeting of AffectoGenimap Plc, which was held on March 28,
2007, adopted the financial statements for 1.1.-31.12.2006 and discharged the
members of the Board of Directors and the CEO from liability.
The Annual General Meeting decided that a dividend of EUR 0.10 per share be
distributed for the year 2006. The record date of the dividend payment was
April 2, 2007 and the dividend was paid on April 11, 2007.
Aaro Cantell, Heikki Lehmusto, Pasi Mäenpää, Jukka Norokorpi ja Esko Rytkönen
were re-elected and Pyry Lautsuo was elected as members of the Board of
Directors. Immediately after the Annual General Meeting the organization
meeting of the Board of Directors was held and Aaro Cantell was re-elected
Chairman of the Board. The APA firm PricewaterhouseCoopers Oy was re-elected
auditor of the company with Merja Lindh, APA, as auditor in charge.
The Annual General Meeting accepted the Board's proposal for changing the
company name and Articles of Association. The name of the company and the
Article 1 of the Articles of Association were changed. The new name of the
company is Affecto Oyj in Finnish, Affecto Abp in Swedish and Affecto Plc in
English. The current Articles of Association were amended so that Article 3,
which concerns the minimum and maximum share capital, Article 4, which
concerns the nominal value of the shares, Article 6, which concerns the
transfer of the shares into the book-entry system, were removed and Article 5
and the last sentence of the second paragraph of Article 12 were amended. The
Article 9 concerning the right to represent the company was amended to reflect
the terminology in the Companies Act and the requirement of a deputy auditor
was abolished and consequently Articles 11 and 13 were amended. In addition,
the numbering of Articles of Association was amended. The changes were
registered at the Finnish trade register on 2 April 2007.
The Annual General Meeting accepted the Board's proposals for the
authorizations given to the Board of Directors.
According to the Articles of Association, the General Meeting of Shareholders
annually elects the Board of Directors by a majority decision. The term of
office of the board members expires at the end of the next Annual General
Meeting of Shareholders following their election. The Board appoints the CEO.
The Articles of Association do not contain any special rules for changing the
Articles of Association.
THE AUTHORIZATIONS GIVEN TO THE BOARD OF DIRECTORS
During 1-3/2007 the Board did not use the authorizations given by the previous
Annual General Meeting. Those authorizations ended on 28 March 2007.
The complete contents of the new authorizations given by the Annual General
Meeting held on 28 March 2007 have been published in the stock exchange
release regarding the Meetings' decisions.
The Annual General Meeting decided to authorize the Board of Directors to
decide to issue new shares and to convey the company's own shares held by the
company in one or more tranches. The share issue may be carried out as a share
issue against payment or without consideration on terms to be determined by
the Board of Directors and in relation to a share issue against payment at a
price to be determined by the Board of Directors. A maximum of 3 400 000 new
shares may be issued. A maximum of 1 700 000 own shares held by the company
may be conveyed. In addition, the authorization includes the right to decide
on a share issue without consideration to the company itself so that the
amount of own shares held by the company after the share issue is a maximum of
one-tenth (1/10) of all shares in the company. The authorisation shall be in
force until the next Annual General Meeting.
The Annual General Meeting decided to authorize the Board of Directors to
decide to acquire the company's own shares with distributable funds. A maximum
of 1 700 000 shares may be acquired. The authorization shall be in force until
the next Annual General Meeting.
SHARES AND TRADING
The company has only one share series, and all shares have similar rights. As
at 31 March 2007, Affecto Plc's share capital consisted of 17 016 521 shares
and the share capital was EUR 5 104 956.30. The company owns 36 738 treasury
shares, which corresponds to 0.2% of all shares.
In 1-3/2007, the highest share price was 3.71 euro, lowest price 2.90 euro,
average price 3.34 euro and closing price 3.40 euro. Trading volume was 3.2
million shares, corresponding to 76 % (annualized) of the number of shares at
the end of period. The market value of shares was 57.7 MEUR at the end of the
period.
SHAREHOLDERS
There have been no flagging announcements during January-March 2007.
The company had total of 1241 owners on 31 March 2007 and the foreign
ownership was 22%. The list of the largest owners can be viewed in the
company's web site.
OPTIONS
After the review period, 268 900 options 2006B have been given to key
personnel. The share subscription price with 2006B options is 3.24 eur per
share after the dividends paid in April 2007.
EVENTS AFTER THE REVIEW PERIOD
The Annual General Meeting held on 28 March 2007 decided to change the
company's name to Affecto Plc, which decision has been registered at the
Finnish trade register on 2 April 2007.
The company has received a flagging announcement that the ownership of Mr.
Mika Laine has exceeded 5% on 5 April 2007.
The company announced on 18 April 2007 that the Finnish Road Administration
has selected Affecto as the operator of the national road and street database,
Digiroad, for the next three years.
STRATEGIC OBJECTIVES
The company has two strong business lines: the strongest growth expectations
are focused on the growing business intelligence market but at the same time
the company wants to further strengthen its position in delivering demanding
and customer specific operational IT solutions.
The company aims to be the leading business intelligence solution provider in
the Nordic, Baltic and CEE regions. Furthermore, the company aims to be the
most competent and quality focused provider of geographic information systems
(GIS), enterprise content management (ECM) and other operational solutions in
selected industries and regions.
The growth target for the company for 2007-2009 is that net sales exceed 100
million euros in 2009. The growth target will be reached through organic
growth supplemented by acquisitions. At the same time the company seeks to be
one of the most profitable IT services company within its market region.
FUTURE OUTLOOK
Positive development is expected to continue during year 2007. Based on the
recent acquisitions and good order backlog the company seeks to reach net
sales of approx. 70 MEUR in 2007. The profitability is also expected to
improve from year 2006. The second quarter is estimated to be clearly better
than Q2/2006.
The company does not provide exact guidance for net sales or EBIT development,
as single projects and timing of license sales may have large impact on
quarterly sales and profit.
Affecto Plc
Board of Directors
It is possible to order Affecto's stock exchange releases to be delivered
automatically by e-mail. Please visit the Investor pages of the company
website: http://www.affecto.com
A briefing for analysts and media will be arranged at 11:00 at Restaurant
Savoy, Eteläesplanadi 14, Helsinki.
-----
Financial information:
1. Income statement, balance sheet and cash flow statement
2. Segment information
3. Notes
4. Key figures
1. Income statement, balance sheet and cash flow statement
CONSOLIDATED INCOME STATEMENT
(1 000 EUR) 1-3/07 1-3/06 2006
Net sales 17 576 10 443 50 194
Other operating income 0 85 138
Changes in inventories of 173 141 287
finished goods and work in
progress
Materials and services -2 689 -2 944 -13 177
Personnel expenses -9 518 -5 792 -23 996
IFRS3 depreciation -361 -50 -409
Other depreciation, amortization -275 -219 -963
and impairment charges
Other operating expenses -2 900 -1 895 -8 432
Operating result 2 006 -231 3 642
Finance costs (net) -147 -61 -184
Result before income tax 1 860 -292 3 458
Income tax -422 11 -824
Result for the period 1 438 -281 2 633
Attributable to:
Equity holders of the Company 1 438 -280 2 633
Minority interest 0 -1 0
Earnings per share for result
attributable to the equity
holders of the Company
(expressed in EUR per share)
Basic 0.08 -0.02 0.16
Diluted 0.08 -0.02 0.16
CONSOLIDATED BALANCE SHEET
(1 000 EUR) 3/2007 3/2006 12/2006
Non-current assets
Tangible assets 2 260 1 960 2 110
Goodwill 43 845 30 860 43 579
Other intangible assets 7 009 2 829 7 550
Deferred tax assets 634 542 594
Available-for-sale financial assets 57 73 57
Other non-current receivables 96 52 93
53 900 36 316 53 983
Current assets
Inventories 2 186 2 172 2 095
Trade receivables 9 799 5 832 11 508
Other receivables 5 885 4 048 4 230
Current income tax receivables 1 057 679 1 036
Available-for-sale financial assets 560 0 578
Financial assets at fair value through 56 0 24
profit or loss
Restricted cash 395 5 381
Cash and cash equivalents 6 330 12 715 4 906
26 267 25 451 24 758
Total assets 80 167 61 767 78 741
Equity attributable to equity holders
of the Company
Share capital 5 105 4 619 5 105
Share premium 25 404 22 856 25 404
Reserve of invested non-restricted 1 960 0 1 960
equity
Other reserves 15 55 11
Treasury shares -106 0 -106
Retained earnings 6 025 5 743 6 717
38 402 33 273 39 092
Minority interest 0 19 0
Total shareholders' equity 38 402 33 292 39 092
Non-current liabilities
Borrowings 14 014 8 858 14 014
Deferred tax liabilities 1 901 482 2 007
Other long-term liabilities 2 815 0 2 232
18 730 9 340 18 252
Current liabilities
Borrowings 4 616 3 696 5 032
Trade payables 2 259 1 764 2 627
Other liabilities 14 771 13 622 12 580
Current income tax liabilities 1 390 53 1 158
23 036 19 135 21 397
Total liabilities 41 765 28 475 39 649
Total shareholders' equity and 80 167 61 767 78 741
liabilities
CONSOLIDATED CASH FLOW STATEMENT
(1 000 EUR) 1-3/07 1-3/06 2006
Cash flows from operating activities
Result for the period 1 438 -281 2 633
Adjustments to profit for the period 1 233 270 2 442
2 671 -11 5 076
Change in working capital
Decrease (+) / increase (-) in trade and 99 366 -1 814
other receivables
Decrease (+) / increase (-) in inventories -91 -48 30
Decrease (-) / increase (+) in trade and 247 155 475
other payables
Change in working capital 255 473 -1 309
Interest and other finance cost paid -153 -101 -429
Interest and dividend received 16 66 289
Income taxes paid -308 -308 -1 024
Net cash generated by operating activities 2 481 119 2 604
Cash flows from investing activities
Acquisition of subsidiaries, net of cash -107 -369 -13 262
acquired
Purchases of tangible and intangible assets -372 -277 -1 118
Proceeds from sale of tangible assets 0 20 41
Sale of business/subsidiaries 0 0 45
Proceeds from sale of financial assets 0 38 39
Increase of other non-current receivables -3 0 30
Net cash used in investing activities -482 -588 -14 225
Cash flow from financing activities
Proceeds from issue of share capital 0 0 2
Increase of interest-bearing liabilities 0 0 12 447
Repayments of interest-bearing liabilities -417 0 -5 938
Purchase of treasury shares 0 0 -509
Change in other long-term liabilities 8 0 0
Dividends paid to company's shareholders 0 0 -1 540
Net cash generated in financing activities -409 0 4 462
(Decrease)/increase in cash and cash 1 590 -469 -7 159
equivalents
Cash and cash equivalents at the beginning 5 485 13 189 12 639
of the period
Translation adjustment -55 0 -1
Change in fair value of financial assets 0 0 6
Cash and cash equivalents at the end of the 7 020 12 720 5 485
period
2. Segment information
Primary reporting format
Geographical segments based on location of assets
Segment result:
(1 000 EUR) 1-3/07 1-3/06 2006
Total sales
Finland 9 754 8 257 36 267
Baltic 4 570 2 194 13 083
Nordic 3 250 0 881
Eliminations 2 -8 -36
Group total 17 576 10 443 50 194
Segment result (operating
result)
Finland 933 562 4 641
Baltic 1 046 -416 497
Nordic 398 0 -22
Group management -371 -377 -1 474
Group total 2 006 -231 3 642
Secondary reporting format - business segments
Segment revenue:
(1 000 EUR) 1-3/07 1-3/06 2006
Total sales
BI 7 416 2 494 11 863
Operational Solutions 8 276 5 978 28 715
Cartographic Solutions 1 882 1 979 9 652
Other (incl. 2 -8 -36
eliminations)
Group total 17 576 10 443 50 194
The Baltic revenue is classified to both BI and Customised Solutions segments.
Nordic revenue is classified to the BI segment.
The secondary segments were modified for financial year 2007. The following
table shows the 2006 quarters according to the new segments.
Segment revenue:
(1 000 EUR) 1-3/06 4-6/06 7-9/06 10-12/06
Total sales
BI 2 494 2 404 2 228 4 737
Operational Solutions 5 978 6 970 6 405 9 362
Cartographic Solutions 1 979 2 893 2 297 2 483
Other (incl. eliminations) -8 -3 -9 - 16
Group total 10 443 12 264 10 921 16 566
3. Notes
Consolidated statement of changes in shareholders' equity 1-3/2007 and
1-3/2006
(1 000 EUR) Share Share Reserve of Other Trea- Ret. Mino- Total
capital premium invested reserve sury earn- rity equity
non- s shares ings & inte-
restricted trans- rest
equity lat.
diff.
Shareholders' 5 105 25 404 1 960 11 -106 6 717 0 39 092
equity 1
January 2007
Translation -433 -433
differences
Share options 3 3
Result for the 1 438 1 438
period
Dividends -1 698 -1 698
Shareholders' 5 105 25 404 1 960 15 -106 6 025 0 38 402
equity 31 March
2007
(1 000 EUR) Share Share Reserve of Other Trea- Ret. Mino- Total
capital premium invested reserve sury earn- rity equity
non- s shares ings & inte-
restricted trans- rest
equity lat.
diff.
Shareholders' 4 619 22 856 0 55 0 6 023 20 33 573
equity 1
January 2006
Result for the -280 -1 -281
period
Shareholders' 4 619 22 856 0 55 0 5 743 19 33 292
equity 31 March
2006
Contingencies and commitments
The group has a contingent asset of 87 thousand Latvian lats (EUR 123
thousand) relating to a court case in Latvia. Riga Regional Court published a
judgement, according to which adverse party was sentenced to pay 87 thousand
Latvian lats to a group company of Affecto (Mebius IT). The adverse party has
appealed to the Supreme court of the Republic of Latvia and demanded to change
the decision. The adverse party has demanded a compensation of 51 thousand
Latvian lats (EUR 72 thousand) from Mebius IT.
In respect of the acquisitions of Intellibis AB and ZenPark Oy, additional
consideration of up to 4.7 MEUR may be payable. The additional consideration
of ZenPark Oy (maximum 0.7 MEUR) is payable in 2007 and the additional
consideration of Intellibis AB (maximum 4.0 MEUR) in 2008. At the end of the
reporting period an additional consideration has been estimated to amount to
2.8 MEUR, which has been recorded as liability.
The future aggregate minimum lease payments under non-cancelable operating
leases as of 31 March 2007:
1 000 EUR 31.3.2007 31.12.2006
Not later than one (1) year 2 065 2 346
Later than one (1) year, but not later than 3 665 3 792
five (5) years
Later than five (5) years 0 0
5 730 6 138
Guarantees:
1 000 EUR 31.3.2007 31.12.2006
Debt secured by a mortgage
Financial loans 18 614 19 031
Mortgages 14 367 14 367
Other securities given on own behalf:
Pledges 667 696
Pledges given on own behalf are secured by restricted cash of 0.4 MEUR (0.4
MEUR) and trade receivables at an amount of 0.3 MEUR (0.3 MEUR).
Derivative contracts
1 000 EUR 31.3.2007 31.12.2006
Interest rate swaps:
Nominal value 5 000 5 000
Fair value 56 24
4. Key figures
IFRS 1-3/07 1-3/06 2006
Net sales, 1 000 eur 17 576 10 443 50 194
EBITDA, 1 000 eur 2 642 38 5 014
Operating result before IFRS3 2 367 -181 4 051
depreciation, 1 000 eur
Operating result, 1 000 eur 2 006 -231 3 642
Result before extraordinary 1 860 -292 3 458
items, 1 000 eur
Result before taxes, 1 000 eur 1 860 -292 3 458
Net income for equity holders 1 438 -280 2 633
of the parent company, 1 000
eur
EBITDA, % 15.0 % 0.4 % 10.0 %
Operating profit before IFRS3 13.5 % -1.7 % 8.1 %
depreciation, %
Operating result, % 11.4 % -2.2 % 7.3 %
Result before extraordinary 10.6 % -2.8 % 6.9 %
items, %
Result before taxes, % 10.6 % -2.8 % 6.9 %
Net income for equity holders 8.2 % -2.7 % 5.2 %
of the parent company, %
Equity ratio, % 50.1 % 57.6 % 52.0 %
Net gearing, % 29.9 % 9.9 % 35.2 %
Interest-bearing net debt, 11 480 3 290 13 743
1 000 eur
Gross investment in non-current 372 277 1 118
assets (excl. acquisitions),
1 000 eur
Gross investments, % of sales 2.1 % 2.6 % 2.2 %
Research and development costs, 157 136 476
1 000 eur
R&D -costs, % of sales 0.9 % 1.3 % 0.9 %
Order backlog, 1 000 eur 23 207 14 821 24 167
Average number of employees 767 558 605
Earnings per share, eur 0.08 -0.02 0.16
Earnings per share (diluted), 0.08 -0.02 0.16
eur
Equity per share, eur 2.26 2.16 2.30
Average number of shares, 1 000 16 980 15 396 16 058
shares
Number of shares at the end of 16 980 15 396 16 980
period, 1 000 shares
The calculation of key figures has been presented in the annual report for the
year 2006.
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