2016-05-09 12:25:02 CEST
2016-05-09 12:25:02 CEST
REGULATED INFORMATION
Affecto Oyj - Interim report (Q1 and Q3)
Affecto Plc's Interim Report 1-3/2016
AFFECTO PLC – INTERIM REPORT – 9 MAY 2016 at 13:25
Affecto Plc's Interim Report 1-3/2016
Q1 Highlights (January-March 2016)
-- Order intake increased by 19% and was 24.8 MEUR (20.9 MEUR).
-- Order backlog increased by 16% and was 48.2 MEUR (41.5 MEUR).
-- Revenue declined by 6% and was 27.3 MEUR (29.1 MEUR).
-- Operating profit declined to 1.0 MEUR (2.1 MEUR) and was 3.7% (7.2%) of
revenue.
-- Cash flow from operating activities was -1.3 MEUR (0.4 MEUR).
-- The 2016 outlook remains unchanged.
Key Figures
MEUR 1-3/16 1-3/15 2015 last 12m
Revenue 27.3 29.1 116.0 114.3
Operational segment result 1.0 2.1 7.5 6.4
% of revenue 3.7 7.2 6.4 5.6
Operating profit 1.0 2.1 7.5 6.4
% of revenue 3.7 7.2 6.4 5.6
Profit before taxes 0.9 2.0 7.5 6.4
Profit for the period 0.7 1.4 5.9 5.1
Equity ratio, % 61.8 59.2 58.5 -
Net gearing, % -4.0 0.9 -6.2 -
Earnings per share, EUR 0.03 0.07 0.27 0.24
Earnings per share (diluted), EUR 0.03 0.07 0.27 0.24
Equity per share, EUR 2.93 2.90 2.88 -
CEO Juko Hakala comments:
In the first quarter of 2016, we closed several multiyear deals, with
especially our teams in Finland and Norway contributing to the order intake
growth of 19%. Our order backlog also grew compared to Q1 2015.
Despite the strength in order intake, our revenue and profitability weakened.
On revenue, Denmark and Sweden developed favorably following good H2 2015 sales
and high utilization in Q1 2016. We had growth in Norway driven by software and
appliance license sales. On the other hand, revenue in Baltic declined year
over year driven by the successful completion of key insurance sector projects
in 2015 and the same reason impacted Baltic profitability. Consultancy based
revenue declined in Finland while continued development actions in Sweden and
recovery execution in Denmark supported profit growth in the respective
segments. Finland and Norway had weak profitability.
We also continued the focus on our key business development actions. We
strengthened unique capabilities in analytics, custom development, managed
services, design, cloud, security and sensors. In the Industrial growth
program, we delivered more projects and prototypes in bridging the physical and
the digital. In the B2C growth program, projects with Affecto Video Analytics
solution with real-time cloud analytics and reporting capabilities progressed.
We also continued to strive towards nimble economies of scale, building an
integrated grid of 18 offices across Northern Europe.
We will organize a Capital Markets Day 20th of May, 2016 to present further
information of Affecto and our direction.
2016 Outlook
Affecto expects its revenue to stay at the same level or grow slightly and its
operating profit to grow in 2016.
The company does not provide an exact quarterly guidance for revenue or
operating profit development, as single projects and timing of license sales
may have large impact on quarterly sales and profit.
Analyst and Press Conference
The Company will arrange a briefing for analysts and media 9 May 2016 at 15:00
at Glo Hotel Kluuvi, Kluuvikatu 4, FI-00100 Helsinki.
Additional information:
CEO Juko Hakala, + 358 205 777 450
CFO Martti Nurminen, +358 40 751 7194
This release is unaudited.
AFFECTO FINANCIALS
Order Intake
In 1-3/2016, Affecto’s order intake increased by 19% and was 24.8 MEUR (20.9
MEUR). Order intake increased significantly in Finland and Norway and increased
in Sweden. Order intake decreased in Denmark and decreased significantly in
Baltic.
Order Backlog
In 1-3/2016, the order backlog increased by 16% and was 48.2 MEUR (41.5 MEUR)
at the end of the reporting period. Order backlog increased significantly in
Norway and increased in Finland, Sweden and Denmark. Order backlog decreased in
Baltic.
Revenue
Revenue, MEUR 1-3/16 1-3/15 2015 last 12m
Finland 11.2 12.1 49.5 48.6
Norway 5.6 5.4 21.1 21.2
Sweden 4.6 4.6 18.2 18.3
Denmark 3.2 2.9 11.3 11.6
Baltic 4.2 5.1 20.1 19.2
Other -1.5 -1.1 -4.2 -4.6
----------------------------------------------
----------------------------------------------
Group total 27.3 29.1 116.0 114.3
In 1-3/2016, Affecto’s revenue declined by 6 % to 27.3 MEUR (29.1 MEUR). While
revenue increased in Denmark, Norway and Sweden, the overall group revenue
development year over year was impacted by the decline of consultancy revenue
in Finland and the successful completion of key insurance sector projects in
Baltic in 2015.
Profitability
Operational segment result by reportable segments:
Operational segment 1-3/16 1-3/15 2015 last 12m
result, MEUR
Finland 0.1 0.6 3.5 3.0
Norway 0.3 0.6 1.5 1.2
Sweden 0.3 0.1 0.7 0.9
Denmark 0.3 0.1 0.4 0.6
Baltic 0.4 1.3 3.9 3.0
Other -0.3 -0.6 -2.5 -2.2
----------------------------------------------------------
----------------------------------------------------------
Operational segment result 1.0 2.1 7.5 6.4
----------------------------------------------------------
Operating profit 1.0 2.1 7.5 6.4
In 1-3/2016, Affecto's operating profit declined to 3.7% and was 1.0 MEUR (2.1
MEUR). The improved profitability in Sweden and Denmark was offset by weak
profitability development year over year in Norway, Finland and Baltic.
Taxes corresponding to the profit of the period have been entered as tax
expense. Net profit for the period was 0.7 MEUR, while it was 1.4 MEUR last
year.
Business Performance by Segment
The group's business is managed through five reportable segments: Finland,
Norway, Sweden, Denmark and Baltic.
Finland
In 1-3/2016 revenue decreased by 8% to 11.2 MEUR (12.1 MEUR). Operational
segment result was 0.1 MEUR (0.6 MEUR) or 1% (5%) of revenue. The order intake
increased significantly and the order backlog is above last year's level. The
sales actions succeeded well. The Company secured large orders from e.g. Yle
and Keva that positively affected the order intake. The performance of the
consultancy business and increased subcontracting costs affected the
profitability negatively.
In 1-3/2016 revenue of Karttakeskus geographical information system (“GIS”)
business, reported as part of Finland, decreased by 16% to 2.4 MEUR (2.9 MEUR).
Karttakeskus lost large contracts in 2015 which negatively affected the revenue
during the quarter.
The demand for traditional IT solutions is expected to remain active. In this
area, the demand for managed services is strong. Affecto experienced an
increased market demand related to business technology and analytics solutions,
both from existing and new customers. These solutions are typically closely
related to real processes and real world phenomena with systematic and
analytical approach to the collected data. In the area where Karttakeskus GIS
business operates in, the customer demand for printed products has been
declining consistently. Traditional maps are in transformation to digital
content and solutions, an area where we have actively developed new
capabilities and offerings.
Norway
In 1-3/2016 revenue increased by 3% to 5.6 MEUR (5.4 MEUR). Operational segment
result was 0.3 MEUR (0.6 MEUR) or 5% (11%) of revenue. The order intake
increased significantly and order backlog is above last year's level. These
improvements are driven by a combination of traditional Business Intelligence
(“BI”) and master data management initiatives as well as a growing interest in
new business technologies and analytics. However, both order intake and revenue
were at the same time negatively impacted by the weakening NOK, revenue
increased 12% year over year at constant currency. License revenue increased
compared to last year. Finally, profitability was negatively affected by low
utilization and delayed project deliveries, an issue that the Company is
currently addressing.
Sweden
In 1-3/2016 revenue increased by 1% and was 4.6 MEUR (4.6 MEUR). Operational
segment result was 0.3 MEUR (0.1 MEUR) or 7% (2%) of revenue. The order intake
increased and order backlog is above last year's level. Continued development
actions have been executed during the quarter. Utilization was high due to
increased demand for traditional BI solutions combined with an increase in
demand for new business technologies, most notably within the collaboration
area. Consequently, revenue and operational segment result developed favorably.
Further, the Company’s focus is on recruitment and leverage of nearshoring to
equip growth path.
Denmark
In 1-3/2016 revenue increased by 12% and was 3.2 MEUR (2.9 MEUR). Operational
segment result was 0.3 MEUR (0.1 MEUR) or 8% (2%) of revenue. Order intake
decreased and order backlog is above last year's level. Business recovery
actions continued to progress and revenue and operational segment result
developed favorably. During the quarter the Company also increased its
engagement with customers in exploring new business technology and analytics
solutions while at the same time increasing capacity to address the traditional
BI and master data management market to increase short term sales.
In 1-3/2016, across the Scandinavian markets the Company experienced a growing
demand for traditional BI solutions and Master Data Management in the form of
managed services and modernization of BI solutions. There is also growing
interest related to new business technologies and analytics, mainly in the form
of demand for self-service analytics tools and customer or product master data
management, driven by customer’s digitalization initiatives. More organizations
are also starting to show interest in analytics, big data and Internet of
Things technologies.
Baltic
In 1-3/2016 the Baltic (Lithuania, Latvia, Estonia, Poland, South Africa)
revenue declined 18% and was 4.2 MEUR (5.1 MEUR). Operational segment result
was 0.4 MEUR (1.3 MEUR) or 8% (26%) of revenue. Order intake decreased
significantly and order backlog is below last year’s level. The weakened
performance is mainly attributable to the major insurance business projects
that positively affected 2015 but ended by the end of the year. The Company
continued to focus on local business development in Baltic, on nearshoring
boost for all Affecto countries and on strong co-operation with TIA
Technologies within the insurance sector.
In 1-3/2016, the Company saw in Estonia that the public sector is investing
into improvement of their processes and digital services for citizens and
customers are interested in predictive analytics. In the Lithuanian market the
Company saw only modest demand by the public sector to invest into new IT
initiatives. Across the segment, the private sector is interested in investing
into core IT systems implementation, renewal projects and solutions. The
insurance sector where the Company is focused on in South Africa and Latvia is
investing into core systems while demand for new solutions is modest.
Business Development Actions
Affecto continued to focus on the key business development actions. The Company
strengthened unique capabilities in analytics, custom development, managed
services, design, cloud, security and sensors. In the Industrial growth
program, the Company delivered more projects and prototypes in bridging the
physical and the digital. In the B2C growth program, projects with Affecto
Video Analytics solution with real-time cloud analytics and reporting
capabilities progressed. The Company also continued to strive towards nimble
economies of scale, building an integrated grid of 18 offices across Northern
Europe.
Financial Position and Cash Flow
At the end of the reporting period Affecto's balance sheet totaled 114.9 MEUR
(12/2015: 120.3 MEUR). Equity ratio was 61.8% (12/2015: 58.5%) and net gearing
was -4.0% (12/2015: -6.2%).
The financial loans were 18.5 MEUR (12/2015: 18.5 MEUR) at the end of reporting
period. The Company's cash and liquid assets were 21.0 MEUR (12/2015: 22.4
MEUR). The interest-bearing net debt was -2.6 MEUR (12/2015: -3.9 MEUR). The
existing loan will be re-financed by the end of Q2/16.
Cash flow from operating activities for the reported period was -1.3 MEUR (0.4
MEUR) and cash flow from investing activities was -0.2 MEUR (-0.2 MEUR).
Investments in tangible and intangible assets were 0.2 MEUR (0.2 MEUR). The
cash flow from operating activities was affected by a negative change in
working capital driven by the Swedish and Norwegian segments.
Personnel
The number of employees was 972 (1014) persons at the end of the reporting
period. 389 (426) employees were based in Finland, 99 (88) in Norway, 101 (120)
in Sweden, 65 (68) in Denmark and 318 (312) in the Baltic countries. The
average number of employees during the period was 984 (1017).
On 14 March 2016, the Company announced that Julius Manni, who served as
Managing Director, Finland & Culture and member of the Leadership Team leaves
the Company and Henri Engström is appointed Leadership Team member and acting
Managing Director, Finland.
Corporate Governance
Affecto’s corporate governance practices comply with Finnish laws and
regulations, Affecto’s Articles of Association, the rules of NASDAQ Helsinki
and the Finnish Corporate Governance Code issued by the Securities Market
Association of Finland in 2015. The code is publicly available at
http://cgfinland.fi/en/. Affecto has published its corporate governance
statement for 2015 in the Financial Statements 2015 and on the Company website
www.affecto.com.
Shares and Shareholders
The Company has one share series and all shares have similar rights. At the end
of the review period Affecto Plc's share capital consisted of 22 450 745 shares
and the Company owned 846 235 treasury shares, approximately 3.8 % of the total
amount of the shares. Additional information with respect to the shares,
shareholding and trading can be found on the Company’s website www.affecto.com.
Risks and Uncertainties
The markets where Affecto operates are going through change. Historically,
Affecto has concentrated on the traditional IT market solutions, demand for
which has moderated. However, at the same time there is growing market in new
business technology & analytics. There is a risk as well as an opportunity with
respect to the speed of which Affecto is able to develop the new emerging areas
in proportion to the traditional areas
Affecto’s success depends also on good customer relationships. Affecto has a
diverse customer base. In 2015, the largest customer generated approximately 2%
and the 10 largest customers together approximately 18% of Affecto’s net sales.
Although none of the customers is critically large for the whole group, there
are large customers in various countries that are significant for local
business in the relevant country. On the other hand, the diverse customer base
may decrease the effectiveness of the sales & delivery efforts and overall
agility of the company.
Affecto also needs to be seen as an interesting employer in order to recruit
and retain skilled employees. It is important for Affecto to be seen as an
employer our employees can be proud of. High people churn may create
inefficiencies in the business and temporarily decrease the utilization rate.
The changes in the general economic conditions and the operating environment of
customers have direct impact on Affecto’s markets. The uncertain economic
outlook may affect Affecto’s customers negatively. Slower IT investment
decision making and uncertainty on new investments with respect to new business
technology solutions may have negative impact on Affecto. Affecto’s order
backlog has traditionally been only a few months long. Slower decision making
of the customers decreases the predictability of the business and may decrease
the utilization rate.
Affecto sells third party software licenses and maintenance as part of its
solutions. Typically, the license sales have the highest impact on the last
month of each quarter and especially in the fourth quarter. This increases the
fluctuation in net sales between quarters and increases the difficulty of
accurately forecasting the quarters. Additionally, the increase of cloud
services and other similar market trends may affect the license sales
negatively. Affecto had license sales of approximately 7 MEUR in 2015.
The Company recognizes that the risks of frauds and cyber security threats have
increased. The Company aims to mitigate the increased risks with internal
controls, IT-security, training, awareness and security minded culture.
The Company recognizes the disintegration of its IT systems and process. Given
the number of separate systems, there is low group wide transparency and risk
of suboptimal management of the respective businesses.
Approximately 35% of Affecto’s net sales are generated in Sweden and Norway,
thus the development of the currencies of these countries (SEK and NOK) may
have an impact on Affecto’s profitability. The main part of the companies’
income and costs are within the same currency, which decreases the risks. In
addition, the Company also has business in South Africa and therefore the
development of the South African Rand (ZAR) may also affect the business
environment in South Africa and thus the Company’s business.
Affecto’s balance sheet includes a material amount of goodwill. Goodwill has
been allocated to cash generating units. Cash generating units, to which
goodwill has been allocated, are tested for impairment both annually and
whenever there is an indication that the unit may be impaired. Potential
impairment losses may have material effect on the reported profit and value of
assets.
Events after the Review Period
The Annual General Meeting
Annual General Meeting of Affecto Plc (“AGM”) was held on 8 April 2016. The AGM
adopted the financial statements and discharged the members of the Board of
Directors and the CEO from liability for the financial year 2015. The meeting
approved the Board of Directors’ proposal to pay a dividend of EUR 0.16 per
share and the dividend was paid on 19 April 2016.
Aaro Cantell, Magdalena Persson, Jukka Ruuska, Olof Sand, Tuija Soanjärvi and
Lars Wahlström were re-elected to the Board. The Board of Directors elected
from among its members Aaro Cantell as its Chairman and Olof Sand as
Vice-Chairman and the following members to the Committees:
Audit Committee: Tuija Soanjärvi (chairman), Lars Wahlström and Jukka Ruuska
People, Nomination and Compensation Committee. Magdalena Persson (chairman)
Aaro Cantell and Olof Sand
The AGM approved all proposals made by the Board as described in the invitation
published on 11 March 2016. The resolutions of the AGM were published as a
stock exchange release on 8 April 2016 and can be found on the Company’s
website www.affecto.com.
2016 Outlook
Affecto expects its revenue to stay at the same level or grow slightly and its
operating profit to grow in 2016.
The company does not provide an exact quarterly guidance for revenue or
operating profit development, as single projects and timing of license sales
may have large impact on quarterly sales and profit.
Financial Calendar 2016
Affecto will publish the following interim reports during the course of the
year:
Interim Report 1 January – 30 June: 11 August 2016
Interim Report 1 January – 30 September: 28 October 2016
Affecto Plc
Board of Directors
Financial information:
1. Consolidated income statement, consolidated comprehensive income statement,
balance sheet, cash flow statement and statement of changes in equity
2. Notes
3. Key figures
1. Consolidated income statement, consolidated comprehensive income statement,
balance sheet, cash flow statement and statement of changes in equity
CONSOLIDATED INCOME STATEMENT
(1 000 EUR) 1-3/16 1-3/15 2015 last
12m
-----------------------------------
-----------------------------------
Revenue 27 344 29 062 116 026 114 307
Other operating income - 0 22 22
Changes in inventories of finished 40 41 -195 -195
goods and work in progress
Materials and services -5 800 -4 856 -23 978 -24 922
Personnel expenses -16 518 -17 564 -64 957 -63 912
Other operating expenses -3 806 -4 298 -18 352 -17 860
Other depreciation and amortisation -248 -278 -1 089 -1 060
Operating profit 1 012 2 107 7 475 6 381
Financial income and expenses -124 -120 4 -1
Profit before income tax 888 1 987 7 479 6 380
Income tax -198 -547 -1 585 -1 235
Profit for the period 690 1 440 5 894 5 144
Profit for the period
attributable to:
Owners of the parent company 690 1 440 5 894 5 144
Earnings per share
(EUR per share):
Basic 0.03 0.07 0.27 0.24
Diluted 0.03 0.07 0.27 0.24
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
(1 000 EUR) 1-3/16 1-3/15 2015 last
12m
-----------------------------------
-----------------------------------
Profit for the period 690 1 440 5 894 5 144
Other comprehensive income
Items that may be reclassified subsequently
to the statement of income:
Translation difference 247 696 -649 -1 098
Total Comprehensive income 937 2 136 5 245 4 046
for the period
Total Comprehensive income
attributable to:
Owners of the parent company 937 2 136 5 245 4 046
CONSOLIDATED BALANCE SHEET
(1 000 EUR) 3/2016 3/2015 12/2015
-------------------------------------------------------------
-------------------------------------------------------------
Non-current assets
Property, plant and equipment 1 035 1 456 1 095
Goodwill 62 560 63 391 62 367
Other intangible assets 100 226 132
Deferred tax assets 909 1 188 976
Trade and other receivables 122 - 242
64 726 66 261 64 813
Current assets
Inventories 344 536 300
Trade and other receivables 27 697 28 757 32 067
Current income tax receivables 1 065 731 778
Cash and cash equivalents 21 044 21 914 22 375
50 150 51 938 55 520
-------------------------------------------------------------
-------------------------------------------------------------
Total assets 114 876 118 199 120 333
Equity attributable to owners
of the parent Company
Share capital 5 105 5 105 5 105
Reserve of invested non-restricted 47 731 47 718 47 731
equity
Other reserves 858 852 858
Treasury shares -2 056 -2 111 -2 056
Translation differences -4 671 -3 573 -4 919
Retained earnings 16 289 14 598 15 599
-------------------------------------------------------------
-------------------------------------------------------------
Total equity 63 257 62 590 62 319
Non-current liabilities
Loans and borrowings - 18 460 -
Deferred tax liabilities 176 185 177
176 18 645 177
Current liabilities
Loans and borrowings 18 492 4 000 18 484
Trade and other payables 32 086 31 516 38 476
Current income tax liabilities 465 997 420
Provisions 401 451 456
51 444 36 964 57 836
Total liabilities 51 620 55 609 58 013
-------------------------------------------------------------
-------------------------------------------------------------
Equity and liabilities 114 876 118 199 120 333
SUMMARY CONSOLIDATED CASH FLOW STATEMENT
(1 000 EUR) 1-3/2016 1-3/2015 2015
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash flows from operating activities
Profit for the period 690 1 440 5 894
Adjustments to profit for the period 523 874 2 850
1 213 2 314 8 744
Change in working capital -2 071 -1 024 2 949
Interest and other financial cost paid -58 -78 -305
Interest and other financial income received 18 17 50
Income taxes paid -377 -784 -2 107
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net cash from operating activities -1 275 445 9 332
Cash flows from investing activities
Acquisition of tangible and intangible assets -154 -193 -566
Proceeds from sale of tangible and - - 6
intangible assets
----------------------------------------------------------------------------
Net cash from investing activities -154 -193 -561
Cash flows from financing activities
Repayments of non-current borrowings - - -4 000
Dividends paid to the owners - - -3 453
of the parent company
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net cash from financing activities - - -7 453
(Decrease)/increase in cash and cash equivalents -1 429 252 1 318
Cash and cash equivalents 22 375 21 380 21 380
at the beginning of the period
Foreign exchange effect on cash 98 282 -324
Cash and cash equivalents 21 044 21 914 22 375
at the end of the period
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to owners of the parent
company
-------------------------------------------------------------
-------------------------------------------------------------
(1 000 EUR) Share Reserve of Other Treasur Trans Ret. Total
capita invested reserve y lat. earnin equity
l non-restricted s shares diff. gs
equity
Equity at 1 5 105 47 731 858 -2 056 -4 919 15 599 62 319
January
2016
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit 690 690
Translation 247 247
difference
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 247 690 937
compre-hen
sive income
--------------------------------------------------------------------------------
Equity at 5 105 47 731 858 -2 056 -4 671 16 289 63 257
31 March
2016
Equity attributable to owners of the parent
company
-------------------------------------------------------------
-------------------------------------------------------------
(1 000 EUR) Share Reserve of Other Treasur Trans Ret. Total
capita invested reserve y lat. earnin equity
l non-restricted s shares diff. gs
equity
Equity at 1 5 105 47 718 835 -2 111 -4 269 13 159 60 437
January
2015
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit 1 440 1 440
Translation 696 696
difference
s
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 696 1 440 2 136
compre-hen
sive income
Share-based 17 17
payments
--------------------------------------------------------------------------------
Equity at 5 105 47 718 852 -2 111 -3 573 14 598 62 590
31 March
2015
2. Notes
2.1. Basis of preparation
This financial statement bulletin has been prepared in accordance with the IFRS
recognition and measurement principles and in accordance with IAS 34, Interim
Financial reporting. The interim report should be read in conjunction with the
annual financial statements for the year ended 31 December 2015. In material
respects, the same accounting policies have been applied as in the 2015 annual
consolidated financial statements. The amendments to and interpretations of
IFRS standards that entered into force on 1 January 2016 had no material impact
on this interim report.
2.2. Segment information
Affecto's reporting segments are based on geographical locations and are
Finland, Norway, Sweden, Denmark and Baltic.
Segment revenue and result
(1 000 EUR) 1-3/16 1-3/15 2015 last 12m
----------------------------------
----------------------------------
Total revenue
Finland 11 206 12 140 49 539 48 605
Norway 5 579 5 436 21 068 21 210
Sweden 4 636 4 588 18 219 18 268
Denmark 3 197 2 862 11 297 11 633
Baltic 4 192 5 087 20 128 19 233
Other -1 467 -1 051 -4 226 -4 642
-------------------------------------------------------------------
Group total 27 344 29 062 116 026 114 307
Operational segment result
Finland 104 638 3 528 2 993
Norway 296 585 1 451 1 162
Sweden 324 114 718 927
Denmark 267 60 355 563
Baltic 355 1 309 3 930 2 977
Other -334 -600 -2 507 -2 242
-------------------------------------------------------------------
-------------------------------------------------------------------
Total operational segment result 1 012 2 107 7 475 6 381
-------------------------------------------------------------------
Operating profit 1 012 2 107 7 475 6 381
Financial income and expenses -124 -120 4 -1
-------------------------------------------------------------------
-------------------------------------------------------------------
Profit before income tax 888 1 987 7 479 6 380
Revenue by business lines
(1 000 EUR) 1-3/16 1-3/15 2015 last 12m
----------------------------------
----------------------------------
Information Management Solutions 26 112 27 162 107 887 106 837
Karttakeskus GIS business 2 412 2 876 12 201 11 736
Other -1 180 -976 -4 062 -4 266
-------------------------------------------------------------------
-------------------------------------------------------------------
Group total 27 344 29 062 116 026 114 307
2.3. Changes in intangible and tangible assets
(1 000 EUR) 1-3/2016 1-3/2015 1-12/2015
------------------------------
------------------------------
Carrying amount at the beginning of period 63 594 64 573 64 573
Additions 154 193 566
Disposals - - -2
Depreciation and amortization for the period -248 -278 -1 089
Exchange rate differences 195 584 -454
---------------------------------------------------------------------------
Carrying amount at the end of period 63 695 65 073 63 594
2.4. Share capital, reserve of invested non-restricted equity and treasury
shares
(1 000 Number of shares Share Reserve of invested Treasury
EUR) outstanding capital non-restricted equity shares
----------------------------------------------------------------------
----------------------------------------------------------------------
1.1.2015 21 583 526 5 105 47 718 -2 111
31.3.2015 21 583 526 5 105 47 718 -2 111
1.1.2016 21 604 510 5 105 47 731 -2 056
31.3.2016 21 604 510 5 105 47 731 -2 056
Affecto Plc owns 846 235 treasury shares, which correspond to 3.8% of the total
amount of the shares. The amount of registered shares is 22 450 745 shares.
2.5. Interest-bearing liabilities
(1 000 EUR) 31.3.2016 31.12.2015
Interest-bearing non-current liabilities
Loans from financial institutions, - -
non-current portion
Loans from financial institutions, 18 492 18 484
current portion
---------------------------------------------------------------
---------------------------------------------------------------
18 492 18 484
Affecto's loan facility agreement includes financial covenants, breach of which
might lead to an increase in cost of debt or cancellation of the facility
agreement. The covenants are based on total net debt to earnings before
interest, taxes, depreciation and amortization and total net debt to total
equity. The covenants will be measured quarterly, and these terms and
conditions of covenants were met at the end of the reporting period. According
to the current terms, the loan from financial institution will be due in June
2016. The Company is in the process of completing the negotiations regarding
the loan renewal.
2.6. Contingencies and commitments
The future aggregate minimum lease payments under non-cancelable operating
leases:
(1 000 EUR) 31.3.2016 31.12.2015
Not later than one (1) year 3 020 3 167
Later than one (1) year, 1 564 1 911
but not later than five (5) years
Later than five (5) years - -
--------------------------------------------------------
Total 4 585 5 078
Guarantees given:
(1 000 EUR) 31.3.2016 31.12.2015
Liabilities secured by a mortgage
Financial loans 18 500 18 500
The above-mentioned liabilities are secured by bearer bonds with a nominal
value of 52.5 million euro. The bonds are held by Nordea Pankki Suomi Oyj and
secured by a mortgage on company assets of the group companies. In addition,
the shares in Affecto Finland Oy and Affecto Norway AS have been pledged to
secure the financial liabilities above.
Other securities given on own behalf:
(1 000 EUR) 31.3.2016 31.12.2015
Pledges 34 36
Other guarantees 863 1 925
Other guarantees are mostly securities issued for customer projects. These
guarantees include both bank guarantees secured by parent company of the group
and guarantees issued by the parent company and subsidiaries.
2.7. Related party transactions
Key management compensation and remunerations to the board of directors:
(1 000 EUR) 1-3/2016 1-3/2015 1-12/2015
Salaries and other short-term employee benefits 523 700 2 219
Post-employment benefits 61 88 268
Termination benefits - 121 275
Share-based payments - 1 1
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Total 584 909 2 763
Purchases from related party:
(1 000 EUR) 1-3/20 1-3/20 1-12/2
16 15 015
Purchases from the entity that are controlled by key 13 - 289
management personnel of the group
Outstanding balance of purchases from the entity that - - 36
are controlled by key management personnel of the group
3. Key figures
1-3/16 1-3/15 2015 last 12m
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Revenue, 1 000 eur 27 344 29 062 116 026 114 307
EBITDA, 1 000 eur 1 260 2 384 8 565 7 440
Operational segment result, 1 012 2 107 7 475 6 381
1 000 eur
Operating result, 1 000 eur 1 012 2 107 7 475 6 381
Result before taxes, 1 000 eur 888 1 987 7 479 6 380
Profit attributable to the owners 690 1 440 5 894 5 144
of the parent company, 1 000 eur
EBITDA, % 4.6 % 8.2 % 7.4 % 6.5 %
Operational segment result, % 3.7 % 7.2 % 6.4 % 5.6 %
Operating result, % 3.7 % 7.2 % 6.4 % 5.6 %
Result before taxes, % 3.2 % 6.8 % 6.4 % 5.6 %
Net income for equity holders 2.5 % 5.0 % 5.1 % 4.5 %
of the parent company, %
Equity ratio, % 61.8 % 59.2 % 58.5 %
Net gearing, % -4.0 % 0.9 % -6.2 %
Interest-bearing net debt, -2 552 546 -3 891
1 000 eur
Gross investment in non-current 154 193 566
assets (excl. acquisitions),
1 000 eur
Gross investments, % of revenue 0.6 % 0.7 % 0.5 %
Order backlog, 1 000 eur 48 151 41 527 50 672
Average number of employees 984 1 017 1 010
Earnings per share, eur 0.03 0.07 0.27 0.24
Earnings per share (diluted), 0.03 0.07 0.27 0.24
eur
Equity per share, eur 2.93 2.90 2.88
Average number of shares, 21 605 21 584 21 592 21 597
1 000 shares
Number of shares at the end of 21 605 21 584 21 605 21 597
period, 1 000 shares
Affecto has revised the terminology used in its financial reporting. Prior to
this release, the Company used the term ‘net sales’. In this report and going
forward, the term ‘net sales’ is replaced with ‘revenue’, however, the meaning
of the two terms is identical.
Calculation of key figures
EBITDA = Earnings before interest, taxes,
depreciation, amortization and impairment losses
Operational segment result = Operating profit before amortizations on
fair value adjustments due to business
combinations (IFRS3) and goodwill
impairments
Equity ratio, % = Total equity *100
________________________________
Total assets – advance payments
Gearing, % = Interest-bearing liabilities – cash *100
and cash equivalents
__________________________________
Total equity
Interest-bearing net debt = Interest-bearing liabilities – cash and
cash equivalents
Earnings per share (EPS) = Profit attributable to owners of the parent
company
______________________________________
Weighted average number of ordinary shares in
issue during the period
Equity per share = Total equity
______________________________________
Adjusted number of shares at the end of
the period
Market capitalization = Number of shares at the end of period
(excluding company’s own shares held by
the company) x share price at closing date
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