2007-04-26 08:17:52 CEST
2007-04-26 08:17:52 CEST
REGULATED INFORMATION
SYSOPENDIGIA Oyj - Quarterly report
SYSOPENDIGIA PLC'S INTERIM REPORT FOR 1 JANUARY-31 MARCH 2007 (IFRS)
SYSOPENDIGIA PLC'S INTERIM REPORT FOR 1 JANUARY-31 MARCH 2007 (IFRS)
Key figures in summary
- Consolidated net sales: EUR 26.3 million, up 55 per cent year on year
- Pro forma growth in reported net sales: 4 per cent
- Consolidated operating profit: EUR 2.9 million, up 76 per cent year on year
- Pro forma growth in reported operating profit: 16 per cent
- Product business net sales accounted for 18 per cent, up 233 per cent
- Net cash flow from operating activities: EUR 5.8 million (Q1/2006: EUR 0.8
million)
- Earnings per share: EUR 0.07 (Q1/2006: EUR 0.06)
BRIEFING FOR MEDIA AND ANALYSTS
SYSOPENDIGIA will hold a briefing for analysts and the media at the Scandic
Grand Marina Marina hotel, Katajanokanlaituri 7, FI-00160 Helsinki, on 26 April
2007, starting at 11:00 a.m, which will be broadcast live on the internet. A
link to the live broadcast will be available on SYSOPENDIGIA Plc's website at
www.sysopendigia.fi.
CEO'S REVIEW
The reporting period saw organic growth in our business, as planned. Progress
made in strategic customer relationships and the phased integration of the
company's extensive knowledge capital into comprehensive solutions have
strengthened our market position while improving our capability to increase
market share further. The successful integration of the companies acquired last
year improved our operational efficiency as planned and our pro forma
profitability showed a marked increase.
Year on year, consolidated net sales for the period rose by 55 per cent and, as
a result of high operational efficiency, consolidated operating profit improved
by 76 per cent, or 11 per cent of net sales. Gearing fell to 66 per cent and
equity ratio stood at 44 per cent. We showed strong cash flow from operating
activities, EUR 5.8 million. Diluted earnings per share were EUR 0.07.
Thanks to the favourable market situation and progress made in customer
relationships, the Telecommunications division reported a three per cent
increase in net sales and a 37 per cent improvement in operating profit. The
Finance and Services division posted a 70 per cent improvement in net sales but
showed weak profitability, due to higher-than-usual employee turnover in 2006
and lower-than-planned capacity utilisation rates in early 2007. Owing to its
strong market position and reorganisation carried out in the second quarter of
2006, the Industry and Trade division showed a whopping 449 increase in net
sales and profitability improved markedly year on year. During the reporting
period, the product business increased its share of consolidated net sales to
17.8 per cent, up by 233 per cent year on year (the product business includes
licence and recurring fees).
Reported pro forma growth in consolidated net sales was 3.8 per cent. Industry
and Trade showed the greatest pro forma growth rate of 8.3 per cent while
Telecommunications recorded pro forma growth of 2.7 per cent. Finance and
Services' pro forma growth rate was 1.0 per cent.
During the reporting period, the Group continued to focus on the development of
its customer-driven product and service offerings. Early 2007 saw the launch of
a large-scale project for shared processes and operating policies, aimed
primarily at improving customer relationship management, the management of the
Group's shared range of solutions, resources and competencies, technology
partnerships as well as a standardised management system, and their phased
implementation throughout the Group during 2007.
In line with our updated 2007 growth strategy, we aim to be the number-one
partner for our strategic customers in the delivery of information systems
controlling their core processes. During the current strategy period, the Group
has the goal of bolstering its offerings in the field of corporate mobile and
real-time information systems. In February, it introduced Mobility Business
Suite, a product family for mobile working as well as smartphone productivity
and marketing, at the 3GSM World Congress 2007 in Barcelona.
SYSOPENDIGIA PLC'S INTERIM REPORT FOR 1 JANUARY-31 MARCH 2007 (IFRS)
GROUP KEY FIGURES AND RATIOS
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| | Q1/2007 | Q1/2006 | Change, % | 2006 |
--------------------------------------------------------------------------------
| Net sales | 26,279 | 16,926 | 55% | 84,968 |
--------------------------------------------------------------------------------
| Operating profit | 2,876 | 1,634 | 76% | 8,354 |
--------------------------------------------------------------------------------
| - % of net sales | 11% | 10% | | 10% |
--------------------------------------------------------------------------------
| Net profit | 1,402 | 1,162 | 21% | 4,867 |
--------------------------------------------------------------------------------
| - % of net sales | 5% | 7% | | 6% |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Return on equity | 9% | 9% | | 8% |
--------------------------------------------------------------------------------
| Return on investment | 10% | 9% | | 9% |
--------------------------------------------------------------------------------
| Interest-bearing | 56,317 | 24,828 | 127% | 56,664 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 15,025 | 11,624 | 29% | 11,506 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| Gearing, % | 66% | 25% | | 72% |
--------------------------------------------------------------------------------
| Equity ratio | 44% | 57% | | 44% |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.07 | 0.06 | 10% | 0.25 |
| EUR, basic | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.07 | 0.06 | 11% | 0.25 |
| EUR, diluted | | | | |
--------------------------------------------------------------------------------
OVERVIEW OF BUSINESS SEGMENTS
Telecommunications
SYSOPENDIGIA holds a strong position in smartphone product development and
operator ICT solutions. The Group offers extensive product and service packages
that help its customers - mobile handset manufacturers, semiconductor suppliers,
and operators - to develop their own products and offerings.
As one of the world's leading software integrators in the smartphone market,
SYSOPENDIGIA is an expert in the overall development and integration of
smartphones and their software platforms. Our customers can utilise
SYSOPENDIGIA's contract engineering services and products throughout the various
smartphone development stages and the product lifecycle.
SYSOPENDIGIA also offers a comprehensive solution package, enabling operators
and service providers to extend their service offerings and shift smoothly to
IP-based services. In addition, the Group provides high-standard, cost-effective
outsourcing services.
Telecommunications reported growth of 2.7 per cent year on year. Both existing
and new customer relationships developed favourably while profitability remained
at a sound level. Operating profit improved by 36.9 per cent over the previous
year. The business division enjoyed a good project status during the first
quarter.
Market conditions were good for both the operator and smartphone business.
Operator customers' improved profitability and smartphone customers' investments
in new projects have provided the Group with new opportunities. The markets are
expected to remain active.
The improved situation of our operator customers is enabling us to develop new
services. At the same time, customers' focus on their core business provides
SYSOPENDIGIA with outsourcing opportunities. Our range of more versatile
terminals will increase thanks to more advanced productisation. As a result of
greater smartphone market penetration rates, operator customers have ability to
offer more advanced value added services. SYSOPENDIGIA is in a good market
position to offer these services. Device customisation for operators will remain
strong in 2007. With respect to usability services, we expect growth in the
smartphone and other markets in 2007.
Finance and Services
The Finance and Services segment provides its customers with comprehensive
service, product and integration solutions, utilising the entire Group's
expertise and resources. These solutions are based on SYSOPENDIGIA's own
duplicable software products as well as duplicable project delivery models and
its partners' products.
Finance and Services comprises the following four business units: Investment and
Asset Management, Financing and Services, Public Sector and Associations, and
Executive and ICT Architecture Consulting.
During the reporting period, Finance and Services posted 70 per cent
year-on-year growth in net sales while showing markedly weaker profitability.
High employee turnover towards the end of 2006 and in early 2007 eroded the
division's performance. The Group initiated legal proceedings against its former
partner due to breach of a contract, and the case is pending.
Within the Investment and Asset Management business unit, order books remained
long. The largest system implementations in progress focus on complete upgrades
of systems supporting the customers' main investment-business process. The unit
will increasingly focus on custody and clearing solutions for back office
systems used in securities trading, as well as solutions for the investment fund
and asset management business.
Within Financing and Services, several major projects are at the tendering
stage, based on Group-wide offerings as well as partnerships. As these projects
move forward, the unit's business is expected to develop favourably.
The Public Sector and Associations unit agreed on system deliveries to one of
the largest trade unions in Finland, which will strengthen our position further
as the leading supplier in this sector.
The focus in the demand for Executive Consulting services extended from
architecture and technology development to cover business and IT management
development. The timing of the Senior Advisers service launch within Executive
Consulting was a success and the first customer projects are already in
progress.
Industry and Trade
SysOpen Digia holds a strong position in the information system market for
industry and trade value chains. The company's in-depth industry expertise
provides the optimum foundation for co-operation, creating a user-friendly and
technically accomplished solution that supports the customer's processes.
SYSOPENDIGIA's solutions streamline business processes, bring transparency to
the order/supply chain and automate routine tasks.
Industry and Trade grew by 449 per cent over the same period a year ago, due not
only to the division's major restructuring measures but also to brisk growth in
customer numbers. The division's operating profit was at a good level compared
with the same period a year ago.
Industry and Trade acquired several new customers in enterprise resource
planning system sales. Business for other solutions also made good progress, and
the division has extended a number of system development agreements with its
current customers.
Enterprise resource planning systems showed the most vigorous organic growth in
business and we are confident that this upward trend will continue this year,
although we anticipate a minor shift in system sales towards small and
medium-sized companies. Sales of Web and integration solutions also showed
growth, and sales of content management solutions in particular are expected to
increase more vigorously.
MARKETS
According to Gartner, an information and technology research and advisory firm,
the global consulting and system integration market will grow from USD 244.1
billion in 2006 to USD 330.3 billion by 2010, representing combined annual
growth of 6.2 per cent (Gartner, 2 January 2007). According to Gartner
Dataquest's revised forecast for IT services, the market is expected to expand
from USD 628.8 billion in 2005 to USD 855.6 billion by 2010. This stands for
combined annual growth of 6.4 per cent, showing a slight increase from the 5.8
per cent growth rate forecast issued by Gartner in July 2006 (Gartner, 23
October 2006). The EU's ICT market is forecast to grow by 2.9 per cent in 2007.
Accordingly, the 2007 growth rate predicted for the Nordic ICT market (excluding
Norway) stands at 2.3 per cent and the Western European ICT market at 4 per cent
(EITO and IDC, October 2006).
According to IDC Research, a market research consultancy, the first quarter saw
a 10 per cent increase in mobile handset deliveries. According to ABI Research,
a technology research firm, Symbian accounted for 73 per cent of the world's
smartphone operating system market, although it faces strong competition from
Linux and Windows Mobile.
Global industry and standardised ICT solutions as well as applications,
development and integration will play an increasing role in supply chains.
Information technology is playing an active role in industry restructuring,
globalisation and consolidation processes. Business decisions are being governed
by productivity and cost management, and the trend of adopting new technology
will continue. A shift away from technology projects to business-driven
development projects is underway in the system integration market.
The sector will focus on developing existing systems, using supplementary
solutions such as portals, eBusiness solutions, business intelligence and mobile
solutions as well as RFID technology and payment cards. Self-service and
service-chain digitisation and mobilisation will form major driving forces in
business development. Digital convergence and new services will become a reality
as a result of technological changes.
Customers expect support for their ICT solutions throughout their lifecycle.
Increasing functionalities and the growing integration level will complicate
customer deliveries. Enterprise systems will become increasingly mobile and
smartphones will achieve critical mass. The mobile phone industry will polarise
due to competing technologies and software platforms.
PROSPECTS
Customers require a reliable strategic partner capable of supplying
sophisticated solution packages and managing services throughout the lifecycle
of the customer's applications. Market consolidation, the networking of value
chains and the development of partnerships to strengthen customer relationships
will guide business decisions.
ICT market demand is anticipated to focus on outsourcing, contract engineering,
extensive turnkey deliveries and the integration of standard software products.
Key value creators in near-future information system deliveries include business
focus and industry expertise, usability and the user interface, scalability and
the system's lifecycle as well as productivity and quality.
Customers' strategic development projects will involve wireless and mobile
solutions based on the product platform architecture. The higher penetration
rate and maturement of smartphone and wireless technologies will open up new,
interesting business opportunities. The product development market for
smartphones will develop through consolidation, operating models based on a
full-responsibility concept, and alliances. SYSOPENDIGIA leads the way as a
supplier of wireless and mobile solutions integrated as part of information
systems related to its customers' core business.
The company aims to attain a significantly better position by 2010 as a supplier
of information technology systems and an outsourcing partner in Finland, and to
expand its domestic market to cover Northern Europe. SYSOPENDIGIA operates
globally in selected business areas and, during the strategy period, has the
goal of bolstering its offerings in the field of enterprise mobile and real-time
information systems.
The Group adheres to its long-term target for average net sales growth of 25 per
cent. In 2007, the Group aims to continue its organic growth, and maintain
profitability at a healthy level. The Group regards growth as fundamental to
strengthening its market position, developing a sufficient range of products and
services, and providing services throughout the customer lifecycle. Enabled by
organic growth, in 2007 Group aims to post full-year net sales of EUR 100-105
million and an operating margin (EBIT %) of 10-12 per cent. For the first half
of 2007, SYSOPENDIGIA has specified the objective of recording estimated net
sales of EUR 51-54 million and an operating margin of 9-11 per cent.
NET SALES
SYSOPENDIGIA's consolidated net sales for the period rose to EUR 26.3 million,
up by 55 per cent over the same period a year ago (Q1/2006: EUR 16.9 million).
Net sales posted by Telecommunications improved to EUR 11.8 million, up by 3 per
cent over year on year (Q1/2006: EUR 11.5 million), while those by Finance and
Services totalled EUR 6.9 million, up by 70 per cent (Q1/2006: EUR 4.0 million).
Industry and Trade recorded net sales of EUR 7.6 million, up by 449 per cent
(Q1/2006: EUR 1.4 million).
During the reporting period, the product business accounted for EUR 4.7 million
(Q1/2006: EUR 1.4 million) of consolidated net sales, or 17.8 per cent (Q1/2006:
8.3 per cent).
Comparable consolidated pro forma net sales in Q1/2006 were EUR 25.3 million,
showing year-on-year growth of 3.8 per cent reported for Q1/2007. Pro forma net
sales by Telecommunications in Q1/2006 were EUR 11.5 million, showing
year-on-year growth of 2.7 per cent reported for Q1/2007. Pro forma net sales by
Finance and Services in Q1/2006 came to EUR 6.8 million, showing a year-on-year
improvement of 1.0 per cent reported for Q1/2007. Pro forma net sales by
Industry and Trade in Q1/2006 amounted to EUR 7.0 million, showing year-on-year
growth of 6.3 per cent for Q1/2007.
International operations accounted for 8.9 per cent of consolidated net sales
(Q1/2006: 8.9 per cent).
PROFIT PERFORMANCE AND PROFITABILITY
SYSOPENDIGIA's consolidated operating profit (EBIT) for the reporting period
amounted to EUR 2.9 million, up 76.0 per cent on a year earlier (Q1/2006: EUR
1.6 million). Telecommunications reported an operating profit of EUR 1.4
million, representing a year-on-year increase of 36.9 per cent (Q1/2006: EUR 1.1
million). The business segment's operating profit was burdened by a total of EUR
0.3 million in amortisation on allocated goodwill resulting from the merger of
SysOpen Plc and Digia Inc. (Q1/2006: EUR 0.3 million). Finance and Services
showed an operating profit of EUR 0.1 million, down by 78.2 per cent (Q1/2006:
EUR 0.7 million). Industry and Trade posted an operating profit of EUR 1.3
million, representing a marked increase over the same period a year ago
(Q1/2006: an operating loss of EUR 0.1 million).
Reported earnings before tax were EUR 2.1 million (Q1/2006: EUR 1.6 million) and
net profit totalled EUR 1.4 million (Q1/2006: EUR 1.2 million).
Like-for-like consolidated pro forma operating profit in Q1/2006 was EUR 2.5
million, showing year-on-year growth of 15.6 per cent reported for Q1/2007. Pro
forma operating profit by Telecommunications in Q1/2006 amounted to EUR 1.1
million, showing year-on-year growth of 36.9 per cent for Q1/2007. Pro forma
operating profit by Finance and Services in Q1/2006 came to EUR 0.6 million,
down by 74.6 per cent reported for Q1/2007. Pro forma operating profit by
Industry and Trade in Q1/2006 amounted to EUR 0.9 million, up by 48.5 per cent
reported for Q1/2007.
Earnings per share were EUR 0.07 (Q1/2006: EUR 0.06).
The Group's net financial expenses totalled EUR 0.8 million (Q1/2006: EUR 0.04
million).
FINANCIAL POSITION AND CAPITAL EXPENDITURE
On 31 March 2007, SYSOPENDIGIA's consolidated balance sheet total stood at EUR
146.8 million (31 December/2006: EUR 94.0 million) and equity ratio was 44 per
cent (31 December/2006: 44 per cent). Gearing stood at 66 per cent (31
December/2006: 72 per cent). The period-end cash and cash equivalents totalled
EUR 15.0 million (31 December/2006: EUR 11.5 million) and interest-bearing
liabilities amounted to EUR 56.3 million (31 December/2006: EUR 56.7 million).
The Group annually carries out impairment tests for goodwill and intangible
assets with an indefinite useful life. Goodwill has not been subject to
amortisation since 1 January 2004, and residual value is tested annually.
The table below shows goodwill and values subject to testing by business
segment:
--------------------------------------------------------------------------------
| EUR 1,000 | Allocated | Unallocated | Other | Total value |
| | goodwill | goodwill | items | subject to |
| | | | | testing |
--------------------------------------------------------------------------------
| Telecommunications | 9,009 | 46,829 | 3,952 | 59,789 |
--------------------------------------------------------------------------------
| Finance and | 1,230 | 12,729 | 3,083 | 17,042 |
| Services | | | | |
--------------------------------------------------------------------------------
| Industry and Trade | 4,355 | 26,464 | 3,191 | 34,010 |
--------------------------------------------------------------------------------
| Group total | 14,594 | 86,022 | 10,226 | 110,842 |
--------------------------------------------------------------------------------
Telecommunication's goodwill is mainly associated with the combination of Digia
Inc. and SysOpen Plc, as well as the acquisition of Yomi Software Ltd. Finance
and Services goodwill is mainly associated with the acquisitions of Sentera Plc
and Samstock Ltd. Industry and Trade goodwill is mainly associated with the
acquisition of Sentera Plc and Yomi Software Ltd.
The Group has defined its business segments as cash-generating units (CGU).
Testing goodwill for any impairment loss is based on comparing the present value
of the CGU's recoverable cash flows with the carrying amount. The present values
of cash flows are based on the continuous use of an asset, as well as the
financial plans and estimates of the CGU's future development approved by the
relevant CGU management.
Present values are determined on the basis of actual operating profit and
five-year forecasts by the CGU, with growth varying between three and eight per
cent and the operating margin between 10 and 13 per cent.
Cash flows following the forecast period are estimated by extrapolating the cash
flows using a steady net sales growth forecast of three per cent, with operating
profit estimated at 10 per cent of net sales. Discount rates have been
determined in view of the industry's general risk level, corresponding to an
annual interest rate of 11 per cent in 2006.
Net sales growth is reckoned to constitute the most critical factor in
calculating the present values of cash flows. The amount of goodwill for
Telecommunications requires average annual long-term growth of around two per
cent in its net sales and an operating margin of 10 per cent before amortisation
on allocated goodwill. The amount of goodwill for Finance and Services requires
average annual growth of two per cent in its net sales and an operating margin
of five percent before amortisation on allocated goodwill. The amount of
goodwill for Industry and Trade requires average annual long-term growth of two
per cent in its net sales and an operating margin of nine percent before
amortisation on allocated goodwill.
In the management's opinion, the greatest risk of impairment loss is associated
with Telecommunications. However, any change in key variables used in
calculations during the reporting period, based on a reasonable estimate, would
not lead to a situation in which the segment's carrying amount would exceed its
recoverable amount. Consequently, in the management's view, there is no need to
recognise impairment losses.
Consolidated net cash flow from operating activities totalled EUR 5.8 million
(Q1/2006: EUR 0.8 million)
Net investments came to EUR 0.8 million (Q1/2006: EUR 0.1 million).
Return on investment (ROI) stood at 10 per cent (Q1/2006: 9 per cent) and return
on equity (ROE) at nine per cent (Q1/2006: nine per cent).
RISK ASSESSMENT
Customer, personnel, project, data-security, integration and goodwill risks
number among the key risks subject to monitoring in SYSOPENDIGIA's risk
management.
The company manages customer risks by actively developing its customer portfolio
structure and avoiding any potential risk positions. The customer portfolio's
structure and strategic customer relationships are expected to make progress in
2007 when the Group adopts shared customer relationship management processes and
operating models.
The Group assesses and manages personnel risks by carrying our quarterly
performance reviews with key personnel. With a view to enhancing employee
motivation and commitment, SYSOPENDIGIA has taken measures aimed at more
systematised and effective internal communication by staging monthly personnel
events and making the management more visible within the organisation. On the
basis of the results of a job satisfaction survey carried out at the end of the
first quarter of 2007, the Group will develop its internal policies and
practices further, with the aim of improving working conditions and job
satisfaction. In addition, the Group seeks to upgrade a quarterly pulse method
for job satisfaction measurement in all of its businesses, in order to identify
areas in need of immediate improvement.
The Group carries out project audits with a view to enhancing project risk
management and securing the success of project deliveries to customers. In
addition, the Group's certified quality management systems have undergone a
re-evaluation and approval, and the Group has streamlined its project delivery
reporting procedures and plans further investments in order to ensure high
project delivery capacity and error-free projects.
In order to manage data-security risks, the Group carries out data-security
audits and is continuously developing operating models as well as practices and
processes that promote data security. The Management Group is tasked with
managing risks associated with the integration of businesses, shared operating
models and best practices, as well as their integrated development. The
integration of corporate culture is an ongoing process and its successful
implementation requires sustained and determined efforts at all organisational
levels. With respect to IFRS‑compliant accounting policies, the Group actively
monitors goodwill and the related impairment tests as part of prudent and
proactive risk management practices within financial management.
On 31 March 2007, the number of Group employees totalled 1,091, up by 4, or 0.4
per cent, from the staff number on 31 December 2006 (2006: 1,087). During the
reporting period, the number of employees averaged 1,087, showing an increase of
106, or 10.8 per cent (2006: 981)over the same period a year ago.
Reported cumulative employee turnover came to 4.0 per cent (Q1/2006: 1.7 per
cent).
Employees by function on 31 March 2007:
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| Telecommunications | 49% |
--------------------------------------------------------------------------------
| Finance and Services | 24% |
--------------------------------------------------------------------------------
| Industry and Trade | 22% |
--------------------------------------------------------------------------------
| Administration and management | 5% |
--------------------------------------------------------------------------------
On 31 March 2007, one per cent of SYSOPENDIGIA's personnel worked abroad.
The Annual General Meeting (AGM) of 28 February 2007 elected the following Board
members: Pekka Sivonen (Chairman), Pertti Kyttälä (Vice Chairman), Kari
Karvinen, Matti Mujunen, Mikko Terho, Eero Makkonen and Martti Mehtälä. Jari
Mielonen acts as the Group's CEO and Seppo Laaksonen is his deputy. On 21 March
2007, Mikko Terho resigned from SYSOPENDIGIA Plc's Board of Directors for
personal reasons.
The AGM re-elected KPMG Oy Ab, a firm of authorised public accountants, the
Group's auditor, with Ari Ahti, Authorised Public Accountant, as the chief
auditor.
CORPORATE AND BUSINESS ACQUISITIONS
The reporting period saw neither corporate nor business acquisitions.
GROUP STRUCTURE AND ORGANISATION
On 31 March 2007, SYSOPENDIGIA Group consisted of SYSOPENDIGIA Plc, the parent
company, and the following active subsidiaries: SysOpen Digia Integration Ltd
(parent company holding: 100 per cent), SysOpen Digia Smartphone Ltd (100 per
cent), SysOpen Digia Industry and Trade Ltd (100 per cent), SYSOPENDIGIA
Financial Software Ltd (100 per cent) and SysOpen Digia Object Team Ltd (100 per
cent). In addition, SysOpen Digia Integration Ltd has a wholly owned active
subsidiary, SysOpen Digia Service Ltd.
SYSOPENDIGIA has begun to simplify its Group structure. Its active subsidiaries
SysOpen Digia Integration Ltd, SysOpen Digia Smartphone Ltd, SYSOPENDIGIA
Financial Software Ltd and SysOpen Digia Object Team Ltd will merge with SysOpen
Digia Industry and Trade Ltd. With the merger process underway, the companies
should merge by 1 September 2007. In addition, based on voluntary liquidation,
SYSOPENDIGIA has dissolved the following inactive subsidiaries: SysOpen Digia
Design Ltd, SysOpen Digia Tools Ltd and Digivision Ltd. It will also dissolve an
inactive subsidiary, SysOpen Digia Project Ltd, during the spring of 2007.
SYSOPENDIGIA has a common Group administration and the Group's business is
divided into the following three business divisions: Telecommunications, Finance
and Services, and Trade and Industry.
EVENTS AFTER THE BALANCE SHEET DATE
No significant events.
ANNUAL GENERAL MEETING
Annual General Meeting on 28 February 2007
Convened on 28 February 2007, SYSOPENDIGIA Plc's Annual General Meeting (AGM)
adopted the financial statements for 2006, discharged Board members and the CEO
from liability and, as proposed by the Board of Directors, approved the profit
distribution for 2006, determined Board emoluments and elected the company's
Board of Directors for a new term. In addition, the AGM decided to alter the
Articles of Association throughout, which also resulted in a new company name,
SYSOPENDIGIA Plc.
The AGM also decided on the following Board authorisations:
1. The AGM authorised the Board of Directors to decide on a rights issue or a
capitalisation issue on the following terms and conditions:
- The authorisation is valid for 18 months from the issue date of the
authorisation, or until 28 August 2008;
- On the basis of the share issue authorisation and/or the authorisation for an
issue of special rights, as proposed below, the Company may, in one or several
tranches, issue shares or dispose of treasury shares held by the Company, their
combined number not exceeding 4,000,000, which accounts for roughly twenty
percent of the Company's issued and outstanding shares; and
- The Board of Directors is otherwise authorised to decide on all terms and
conditions of the share issue, including the right to decide on a private
placement and to exercise the authorisation for the purpose of motivating and
incentivising Group key employees.
2. The AGM authorised the Board to decide on issuing special rights, entitling
their holders to receive against payment new Company shares or any treasury
shares held by the Company, on the following terms and conditions:
- The authorisation is valid for 18 months from the issue date of the
authorisation, or until 28 August 2008;
- On the basis of this authorisation, the Company may, in one or several
tranches, issue special rights not exceeding the number of shares as stated
above with respect to the share issue authorisation; and
- The Board of Directors is otherwise authorised to decide on other terms and
conditions of the special rights, including the right to decide on issuing said
special rights on a private placement basis and to exercise the authorisation
for the purpose of motivating and incentivising Group key employees.
3. The AGM authorised the Board to decide on buying back own shares on the
following terms and conditions:
- The authorisation is valid for 18 months from the issue date of the
authorisation, or until 28 August 2008;
- On the basis of the authorisation, the Company may, in one or several
tranches, buy back a maximum of 2,000,000 own shares;
- The shares shall be bought back for the value determined by the Board of
Directors, based on the fair value quoted in public trading on the buyback date;
- Only unrestricted equity may be used to buy back own shares; and
- The Board of Directors is otherwise authorised to decide on other terms and
conditions of the buyback of own shares, including the right to decide on buying
back own shares in a proportion other than that of the shares held by Company
shareholders.
BOARD COMMITTEES
SYSOPENDIGIA'S Board of Directors has established two committees: the
Compensation Committee and the Audit Committee.
Tasked with preparing remuneration schemes and monitoring their effectiveness
in meeting Group targets, safeguarding objective decision-making and securing
transparent and systematic remuneration schemes, the Compensation Committee
comprises Pekka Sivonen (Chairman), Kari Karvinen and Martti Mehtälä. It held
one meeting during the reporting period.
The Audit Committee assists the Board of Directors in ensuring that the
company's financial reporting, accounting methods, financial statements and
other financial information provided by the company are balanced, transparent
and unambiguous. Comprising the non-executive Board members Pertti Kyttälä
(Chairman), Matti Mujunen and Eero Makkonen, the Audit Committee held one
meeting during the reporting period.
SHARE CAPITAL AND SHARES
On 31 March 2007, the number of company shares totalled 20,312,318 and the
number of shareholders 3,451. The ten largest shareholders:
--------------------------------------------------------------------------------
| Shareholder | Shareholding and votes |
--------------------------------------------------------------------------------
| Pekka Sivonen | 13.9% |
--------------------------------------------------------------------------------
| Evli Bank Plc | 8.1% |
--------------------------------------------------------------------------------
| Kari Karvinen | 7.8% |
--------------------------------------------------------------------------------
| Matti Savolainen | 6.5% |
--------------------------------------------------------------------------------
| Nordea Bank Finland Plc | 5.0% |
--------------------------------------------------------------------------------
| Jorma Kylätie's estate | 4.7% |
--------------------------------------------------------------------------------
| OP-Suomi Pienyhtiöt mutual fund | 4.3% |
--------------------------------------------------------------------------------
| Varma Mutual Pension Insurance Company | 3.7% |
--------------------------------------------------------------------------------
| Skandinaviska Enskilda Banken | 2.4% |
--------------------------------------------------------------------------------
| Veikko Laine Oy | 2.1% |
--------------------------------------------------------------------------------
Shareholding by number of shares held on 31 March 2007
--------------------------------------------------------------------------------
| Number of shares | Percentage of | Shareholding and votes |
| | holdings | |
--------------------------------------------------------------------------------
| 1-100 | 23.2% | 0.3% |
--------------------------------------------------------------------------------
| 101-1,000 | 53.2% | 4.3% |
--------------------------------------------------------------------------------
| 1,001-10,000 | 20.7% | 10.4% |
--------------------------------------------------------------------------------
| 10,001-100,000 | 2.2% | 11.7% |
--------------------------------------------------------------------------------
| 100,001-1,000,000 | 0.6% | 32.0% |
--------------------------------------------------------------------------------
| 1,000,001-3,000,000 | 0.1% | 41.3% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total number of shares: | | |
| 20,312,318 | | |
--------------------------------------------------------------------------------
Shareholding by sector on 31 March 2007
--------------------------------------------------------------------------------
| | Percentage of | Percentage of |
| | holdings | shares |
--------------------------------------------------------------------------------
| Non-banking corporate sector | 6.2% | 10.5% |
--------------------------------------------------------------------------------
| Financial institutions and | 0.5% | 23.5% |
| insurance companies | | |
--------------------------------------------------------------------------------
| Public-sector entities | 0.1% | 3.8% |
--------------------------------------------------------------------------------
| Non-profit organisations | 0.4% | 0.6% |
--------------------------------------------------------------------------------
| Households | 92.2% | 60.1% |
--------------------------------------------------------------------------------
| Foreign holding | 0.6% | 1.5% |
--------------------------------------------------------------------------------
REPORTED SHARE PERFORMANCE ON THE HELSINKI STOCK EXCHANGE
SYSOPENDIGIA Plc shares are listed on the Nordic Exchange under Information
Technology IT Services. The company's short name is SYS1V. During the reporting
period, the company's share registered a low of EUR 3.37, a high of EUR 3.99 and
closed at EUR 3.63 on the period's last trading day. The share's trade weighted
average price amounted to EUR 3.66. On 31 March 2007, the company's market
capitalisation totalled EUR 73,733,714.
During the reporting period, no notifications under Section 9, Chapter 2 of the
Securities Market Act were brought to the company's attention.
STOCK OPTION SCHEMES
Stock option scheme 2003
Under the 2003 stock option scheme, the number of warrants originally issued
totals 670,000 as follows: 210,000 warrants under 2003A, 160,000 warrants under
2003B, 150,000 warrants under 2003C and 150,000 warrants under 2003D. All of the
warrants have been exercised for subscription. The share subscription period for
the 2003A warrants was between 2 May 2004 and 31 October 2005 (expired) and for
the 2003B warrants between 1 November 2004 and 31 October 2006 (expired), and
the share subscription period for the 2003C warrants is between 1 November 2005
and 31 October 2007 and for the 2003D warrants between 1 November 2006 and 31
October 2008. The current dividend-adjusted share subscription price for 2003C
is EUR 3.62 per share and for 2003D EUR 4.19 per share. Dividends paid will be
deducted from the subscription prices in accordance with the terms and
conditions of the scheme. On 31 March 2007, SysOpen Digia Partners Oy, a
SYSOPENDIGIA Plc wholly owned subsidiary, held a total of 47,582 stock options
under the 2003 stock option scheme. Warrants within the 2003C scheme have been
listed on the Helsinki Stock Exchange since 1 November 2005 and those within
2003D since 15 November 2006.
By 31 March 2007, 316,429 new shares had been subscribed for under the 2003
stock option scheme. The shares were subscribed for using 172,515 of now already
expired 2003A warrants, 143,114 of the now expired 2003B warrants, and 800 of
the 2003C warrants.
Stock option scheme 2005K
Under the 2005K stock option scheme, the number of warrants originally issued
totals 663,049, 105,408 of which were marked with 2005K1 and 557,641 with
2005K2. All of the warrants have been exercised for subscription. The warrants
entitle their holders to subscribe for a maximum total of 663,049 SYSOPENDIGIA
Plc shares of a nominal value of EUR 0.10.
The share subscription price for 2005K1 warrants was EUR 1.21 and, for 2005K2
warrants, it is EUR 2.28 (dividend‑adjusted). On each dividend record date, the
share subscription price based on the stock options will be deducted by the
amount of dividends decided after 1 June 2005 and before the share subscription.
The share subscription period for the 2005K1 warrants began on 12 August 2005,
when the 2005K warrants were registered in the Trade Register, and will end on
31 December 2007. The share subscription period for the 2005K2 warrants began on
1 January 2006 and will end on 31 December 2007. The 2005K warrants entitle
their holders to use them only for share subscriptions. On 31 March 2007,
SysOpen Digia Partners Ltd, a SYSOPENDIGIA Plc wholly owned subsidiary, held a
total of 5,657 warrants under the 2005K2 stock option scheme.
All of the 2005K1 warrants (105,408 warrants) have been exercised to subscribe
for shares. By 31 March, 9,279 new shares had been subscribed for under the
2005K2 stock option scheme. Warrants within the 2005K2 stock option scheme have
been quoted on the Helsinki Stock Exchange since 2 January 2006.
Stock option scheme 2005
The number of warrants under the 2005 stock option scheme totals 900,000,
300,000 of which are marked with 2005A, 300,000 with 2005B and 300,000 with
2005C. The warrants entitle their holders to subscribe for a maximum total of
900,000 SYSOPENDIGIA Plc shares of a nominal value of EUR 0.10.
The share subscription price for the 2005A warrants is EUR 4.20
(dividend‑adjusted) and for the 2005B warrants it is EUR 3.90. The share
subscription price for the 2005C warrants is determined by the trade‑weighted
average price of a SYSOPENDIGIA Plc share quoted on the Helsinki Stock Exchange
during the 20 trading days following the release of the Q1/2007 Interim Report.
On each dividend record date, the share subscription price based on the stock
options will be deducted by the amount of dividends for which the decision to
distribute has been made between the beginning of the share price determination
period and the date of share subscription. The share subscription period for the
2005A warrants will be between 1 November 2007 and 30 November 2009, for the
2005B warrants between 1 November 2008 and 30 November 2010 and for the 2005C
warrants between 1 November 2009 and 30 November 2011. As a result of the share
subscriptions based on the 2005A, 2005B and 2005C warrants, SYSOPENDIGIA Plc's
share capital may increase by a maximum of EUR 90,000 and the number of shares
by a maximum of 900,000 new shares. On 31 March 2007, SysOpen Digia Partners
Ltd, a SYSOPENDIGIA Plc wholly owned subsidiary, held a total of 512,000
warrants under the 2005 stock option scheme.
On 31 March 2007, the number of all remaining stock options issued by
SYSOPENDIGIA totalled 1,747,562. Shares to be subscribed using warrants account
for a maximum of 7.92 per cent of company shares and voting rights, as a result
of any possible increase of the company's share capital. On 31 March 2007, the
number of warrants held by SysOpen Digia Partners totalled 565,239 of all valid
warrants. On 31 March 2007, the maximum dilution effect of the issued warrants
was of 5.50 per cent.
Helsinki, 26 April 2007
SYSOPENDIGIA PLC
Board of Directors
FOR FURTHER INFORMATION, PLEASE CONTACT:
Jari Mielonen, President and CEO,
tel. +358 40 703 8383; email: jari.mielonen@sysopendigia.com
The Interim Report will be available, and the related live briefing for the
media and analysts will be held in finnish, in the ‘Investors' section at
www.sysopendigia.fi starting at 11.00 a.m.
DISTRIBUTION
Helsinki Stock Exchange
Major media
APPENDICES
Consolidated income statement, IFRS
Segment information, IFRS
Consolidated balance sheet, IFRS
Consolidated statement of changes in shareholders' equity
Consolidated cash flow statement, IFRS
Consolidated income statement by quarter, IFRS
Group key figures and ratios, IFRS
This Interim Report is based on unaudited figures.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| | Q1/2007 | Q1/2006 | Change, % | 2006 |
--------------------------------------------------------------------------------
| Net sales | 26,278.9 | 16,925.9 | 55% | 84,968.1 |
--------------------------------------------------------------------------------
| Other operating | 123.4 | 35.3 | 249% | 280.2 |
| income | | | | |
--------------------------------------------------------------------------------
| Materials and | -1,922.2 | -556.0 | 246% | -4,699.6 |
| services | | | | |
--------------------------------------------------------------------------------
| Depreciation, | -1,270.1 | -912.6 | 39% | -4,557.3 |
| amortisation and | | | | |
| impairment losses | | | | |
--------------------------------------------------------------------------------
| Other operating | -20,333.8 | -13,858.7 | 47% | -67,637.4 |
| expenses | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit | 2,876.2 | 1,633.9 | 76% | 8,354.1 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Financial expenses | -790.4 | -37.9 | 1,987% | -1,659.3 |
| (net) | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Earnings before tax | 2,085.8 | 1,596.0 | 31% | 6,694.8 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Income tax expense | -684.1 | -434.4 | 57% | -1,827.6 |
--------------------------------------------------------------------------------
| Net profit | 1,401.6 | 1,161.6 | 21% | 4,867.2 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Equity holders of | 1,401.6 | 1,157.9 | 21% | 4,854.1 |
| the parent company | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 3.7 | -100% | 13.1 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Basic earnings per | 0.07 | 0.06 | 10% | 0.25 |
| share (EUR) | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.07 | 0.06 | 11% | 0.25 |
| diluted (EUR) | | | | |
--------------------------------------------------------------------------------
SEGMENT INFORMATION, EUR 1,000
--------------------------------------------------------------------------------
| NET SALES | Q1/2007 | Q1/2006 | Change, % | 2006 |
--------------------------------------------------------------------------------
| Telecommunications | 11,798 | 11,491 | 3% | 43,618 |
--------------------------------------------------------------------------------
| Finance and | 6,861 | 4,046 | 70% | 23,633 |
| Services | | | | |
--------------------------------------------------------------------------------
| Industry and Trade | 7,620 | 1,389 | 449% | 17,717 |
--------------------------------------------------------------------------------
| Group total | 26,279 | 16,926 | 55% | 84,968 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT | Q1/2007 | Q1/2006 | Change, % | 2006 |
--------------------------------------------------------------------------------
| Telecommunications | 1,439 | 1,051 | 37% | 4,018 |
--------------------------------------------------------------------------------
| Finance and | 144 | 662 | -78% | 2,322 |
| Services | | | | |
--------------------------------------------------------------------------------
| Industry and Trade | 1,292 | -80 | | 2,014 |
--------------------------------------------------------------------------------
| Group total | 2,876 | 1,634 | 76% | 8,354 |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, EUR 1,000
--------------------------------------------------------------------------------
| Assets | 31 March | 31 March | Change, % | 31 Dec. 2006 |
| | 2007 | 2006 | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Non-current | | | | |
| assets | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 102,625.0 | 62,893.3 | 63% | 103,210.0 |
--------------------------------------------------------------------------------
| Property, plant | 3,073.8 | 2,967.1 | 4% | 3,251.6 |
| and equipment | | | | |
--------------------------------------------------------------------------------
| Investments | 608.4 | 242.2 | 151% | 608.4 |
--------------------------------------------------------------------------------
| Deferred tax | 3,631.5 | 1,301.0 | 179% | 2,909.9 |
| assets | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total non-current | 109,938.6 | 67,403.6 | 63% | 109,979.9 |
| assets | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Current | 21,861.9 | 14,926.3 | 46% | 24,836.9 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Available-for-sal | 2,805.1 | 1,094.1 | 156% | 2,778.3 |
| e financial | | | | |
| assets | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 12,219.8 | 10,529.9 | 16% | 8,727.3 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total current | 36,886.8 | 26,550.3 | 39% | 36,342.5 |
| assets | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total assets | 146,825.4 | 93,953.9 | 56% | 146,322.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' | 31 March | 31 March | Change, % | 31 Dec. 2006 |
| equity and | 2007 | 2006 | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Share capital | 2,031.2 | 1,840.3 | 10% | 2,031.2 |
--------------------------------------------------------------------------------
| Share premium | 6,730.9 | 39,735.5 | -83% | 6,729.5 |
--------------------------------------------------------------------------------
| Other reserves | 5,203.8 | 5,203.8 | 0% | 5,203.8 |
--------------------------------------------------------------------------------
| Unrestricted | 39,735.5 | - | - | 39,735.5 |
| invested | | | | |
| shareholders' | | | | |
| equity | | | | |
--------------------------------------------------------------------------------
| Fair value | - | 191.1 | -100% | - |
| reserve | | | | |
--------------------------------------------------------------------------------
| Translation | 0.8 | 23.1 | -97% | -6.6 |
| difference | | | | |
--------------------------------------------------------------------------------
| Retained earnings | 7,738.4 | 4,275.3 | 81% | 4,458.0 |
--------------------------------------------------------------------------------
| Net profit | 1,401.6 | 1,158.0 | 21% | 4,854.1 |
--------------------------------------------------------------------------------
| Capital and | 62,842.4 | 52,427.1 | 20% | 63,005.6 |
| reserves | | | | |
| attributable to | | | | |
| equity holders of | | | | |
| the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 104.4 | -100% | 113.8 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total | 62,842.4 | 52,531.5 | 20% | 63,119.4 |
| shareholders' | | | | |
| equity | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Liabilities | | | | |
--------------------------------------------------------------------------------
| Non-current | 55,901.8 | 21,132.6 | 165% | 56,081.5 |
| interest-bearing | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 3,861.4 | 3,123.9 | 24% | 3,822.3 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total non-current | 59,763.2 | 24,256.5 | 146% | 59,903.8 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Current | 415.6 | 3,695.4 | -89% | 582.6 |
| interest-bearing | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Other current | 23,804.2 | 13,470.5 | 77% | 22,716.7 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total current | 24,219.8 | 17,165.9 | 41% | 23,299.2 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 83,983.0 | 41,422.4 | 103% | 83,203.0 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 146,825.4 | 93,953.9 | 56% | 146,322.4 |
| equity and | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, EUR 1,000
--------------------------------------------------------------------------------
| | a | b | c | d | e | f | g | h |
--------------------------------------------------------------------------------
| Balance 1 | 1,840 | 39,71 | 5,204 | 23 | 166 | 5,128 | 111 | 52,189 |
| Jan. 2006 | | 8 | | | | | | |
--------------------------------------------------------------------------------
| Available-fo | | | | | | | | 0 |
| r-sale | | | | | | | | |
| investments: | | | | | | | | |
--------------------------------------------------------------------------------
| Fair value | | | | | -166 | | | -166 |
| gains/losses | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | 255 | 0 | 264 |
--------------------------------------------------------------------------------
| Items | 0 | 0 | 0 | 0 | -166 | 255 | 0 | 97 |
| recognised | | | | | | | | |
| directly in | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | 4,854 | 13 | 4,867 |
| | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 0 | 0 | 0 | 0 | 0 | 4,854 | 13 | 4,867 |
| recognised | | | | | | | | |
| income and | | | | | | | | |
| expenses for | | | | | | | | |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Increase of | 180 | 6,723 | | | | | | 6,903 |
| share | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Distribution | | | | | | -920 | -10 | -930 |
| of dividends | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | -39,7 | 39,73 | -23 | | -8 | | -7 |
| | | 12 | 6 | | | | | |
--------------------------------------------------------------------------------
| BALANCE 31 | 2,031 | 6,729 | 44,93 | 0 | 0 | 9,305 | 114 | 63,119 |
| Dec. 2006 | | | 9 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | a | b | c | d | e | f | g | h |
--------------------------------------------------------------------------------
| Balance 1 | 2,031 | 6,729 | 44 | 0 | 0 | 9,305 | 114 | 63,119 |
| Jan. 2007 | | | ,39 | | | | | |
--------------------------------------------------------------------------------
| Available-fo | | | | | | | | 0 |
| r-sale | | | | | | | | |
| investments: | | | | | | | | |
--------------------------------------------------------------------------------
| Fair value | | | | | | | | 0 |
| gains/losses | | | | | | | | |
--------------------------------------------------------------------------------
| Other | 12 | | | | | 51 | | 51 |
--------------------------------------------------------------------------------
| Items | 12 | 0 | 0 | 0 | 0 | 51 | 0 | 51 |
| recognised | | | | | | | | |
| directly in | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | 1,401 | 0 | 1,401 |
--------------------------------------------------------------------------------
| Total | 0 | 0 | 0 | 0 | 0 | 1,452 | 0 | 1,452 |
| recognised | | | | | | | | |
| income and | | | | | | | | |
| expenses for | | | | | | | | |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Increase of | 0 | 1 | | | | | | 1 |
| share | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Distribution | | | | | | - | | -1,625 |
| of dividends | | | | | | 1,625 | | |
--------------------------------------------------------------------------------
| Other | | | | | | 8 | -114 | -106 |
--------------------------------------------------------------------------------
| BALANCE 31 | 2,031 | 6,731 | 44,93 | 0 | 0 | 9,140 | 0 | 62,842 |
| March 2007 | | | 9 | | | | | |
--------------------------------------------------------------------------------
a = Share capital
b = Share premium
c = Other reserves and invested unrestricted equity
d = Currency translation differences
e = Fair value reserve
f = Retained earnings
g = Minority interest
h = Total shareholders' equity
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| Cash flow from operating | 1 Jan.-31 | 1 Jan.-31 | 2006 |
| activities: | March | March 2006 | |
| | 2007 | | |
--------------------------------------------------------------------------------
| Net profit | 1,401 | 1,158 | 4,854 |
--------------------------------------------------------------------------------
| Adjustments to net profit | 2,796 | 1,456 | 8,323 |
--------------------------------------------------------------------------------
| Change in net working capital | 2,776 | -1,566 | -4,093 |
--------------------------------------------------------------------------------
| Interest paid | -711 | -208 | -1,917 |
--------------------------------------------------------------------------------
| Interest received | 35 | 39 | 271 |
--------------------------------------------------------------------------------
| Income tax paid | -480 | -33 | -1,682 |
--------------------------------------------------------------------------------
| Net cash flow from operating | 5,817 | 846 | 5,756 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flows from investing | | | |
| activities: | | | |
--------------------------------------------------------------------------------
| Purchases of intangible assets | -507 | -116 | -1,876 |
| and property, plant and | | | |
| equipment (PPE) | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of intangible | | 376 | 376 |
| assets and PPE | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiary, net | -209 | | -34,229 |
| of cash acquired | | | |
--------------------------------------------------------------------------------
| Proceeds of sale of other | | | -1 |
| investments | | | |
--------------------------------------------------------------------------------
| Dividends received | | | 12 |
--------------------------------------------------------------------------------
| Net cash used in investing | -716 | 260 | -35,718 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flows from financing | | | |
| activities: | | | |
--------------------------------------------------------------------------------
| Proceeds from share issue | 2 | 18 | 320 |
--------------------------------------------------------------------------------
| Repayment of current loans | | | -41,208 |
--------------------------------------------------------------------------------
| Repayments of non-current loans | -150 | -1,042 | -21,875 |
--------------------------------------------------------------------------------
| Proceeds from current loans | | | 38,000 |
--------------------------------------------------------------------------------
| Proceeds from non-current loans | | | 55,000 |
--------------------------------------------------------------------------------
| Dividends paid and other | -1,433 | -809 | -930 |
| distribution of profit | | | |
--------------------------------------------------------------------------------
| Net cash used in financing | -1,582 | -1,833 | 29,307 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Net change in cash and cash | 3,519 | -727 | -655 |
| equivalents | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 11,505 | 12,326 | 12,326 |
| period-start | | | |
--------------------------------------------------------------------------------
| Change in fair value of cash and | | 25 | -166 |
| cash equivalents | | | |
--------------------------------------------------------------------------------
| Net change in cash and cash | 3,519 | -727 | -655 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 15,025 | 11,624 | 11,505 |
| period-end | | | |
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT BY QUARTER, EUR 1,000
--------------------------------------------------------------------------------
| | Q1/2007 | Q4/2006 | Q3/2006 | Q2/2006 | Q1/2006 |
--------------------------------------------------------------------------------
| Net sales | 26,278.9 | 26,620.8 | 21,661.0 | 19,760.4 | 16,925.9 |
--------------------------------------------------------------------------------
| Other operating | 123.4 | 80.1 | 140.5 | 24.3 | 35.3 |
| income | | | | | |
--------------------------------------------------------------------------------
| Materials and | -1,922.2 | -1,939.8 | -1,170.9 | -1,032.9 | -556.0 |
| services | | | | | |
--------------------------------------------------------------------------------
| Depreciation, | -1,270.1 | -1,304.1 | -1,280.9 | -1,059.6 | -912.6 |
| amortisation and | | | | | |
| impairment losses | | | | | |
--------------------------------------------------------------------------------
| Other operating | -20,333. | -20,471. | -16,629. | -16,677.7 | -13,858.7 |
| expenses | 8 | 5 | 4 | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 2,876.2 | 2,985.4 | 2,720.3 | 1,014.5 | 1,633.9 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial expenses | -790.4 | -646.6 | -618.9 | -355.9 | -37.9 |
| (net) | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Earnings before tax | 2,085.8 | 2,338.8 | 2,101.3 | 658.6 | 1,596.0 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Income tax expense | -684.1 | -713.5 | -506.6 | -173.2 | -434.4 |
--------------------------------------------------------------------------------
| Net profit | 1,401.6 | 1,625.3 | 1,594.8 | 485.4 | 1,161.6 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of | 1,401.6 | 1,629.8 | 1,586.7 | 479.6 | 1,157.9 |
| the parent company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | -4.5 | 8.0 | 5.8 | 3.7 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Basic earnings per | 0.07 | 0.08 | 0.08 | 0.03 | 0.06 |
| share (EUR) | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.07 | 0.08 | 0.08 | 0.02 | 0.06 |
| diluted (EUR) | | | | | |
--------------------------------------------------------------------------------
GROUP KEY FIGURES AND RATIOS
--------------------------------------------------------------------------------
| | Q1/2007 | Q1/2006 | 2006 |
--------------------------------------------------------------------------------
| Extent of operations | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Net sales | 26,279 | 16,926 | 84,968 |
--------------------------------------------------------------------------------
| - year-on-year change | 55% | 103% | 40% |
--------------------------------------------------------------------------------
| Average capital invested | 119,472 | 77,789 | 99,015 |
--------------------------------------------------------------------------------
| Personnel at period-end | 1,091 | 803 | 1,087 |
--------------------------------------------------------------------------------
| Average personnel | 1,087 | 800 | 981 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Profitability | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Operating profit | 2,876 | 1,634 | 8,354 |
--------------------------------------------------------------------------------
| - % of net sales | 11% | 10% | 10% |
--------------------------------------------------------------------------------
| Earnings before tax | 2,086 | 1,596 | 6,695 |
--------------------------------------------------------------------------------
| - % of net sales | 8% | 9% | 8% |
--------------------------------------------------------------------------------
| Net profit | 1,402 | 1,158 | 4,854 |
--------------------------------------------------------------------------------
| - % of net sales | 5% | 7% | 6% |
--------------------------------------------------------------------------------
| Return on equity | 9% | 9% | 8% |
--------------------------------------------------------------------------------
| Return on investment | 10% | 9% | 9% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Financing and financial | | | |
| position | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 56,317 | 24,828 | 56,664 |
--------------------------------------------------------------------------------
| Financial assets + cash and | 15,025 | 11,624 | 11,506 |
| bank receivables | | | |
--------------------------------------------------------------------------------
| Gearing | 66% | 25% | 72% |
--------------------------------------------------------------------------------
| Equity ratio | 44% | 57% | 44% |
--------------------------------------------------------------------------------
| Net cash flow from operating | 5,817 | 846 | 5,756 |
| activities | | | |
--------------------------------------------------------------------------------
| Basic earnings per share (EUR) | 0.07 | 0.06 | 0.25 |
--------------------------------------------------------------------------------
| Earnings per share (EUR), | 0.07 | 0.06 | 0.25 |
| diluted | | | |
--------------------------------------------------------------------------------
| Equity per share | 3.09 | 2.85 | 3.10 |
--------------------------------------------------------------------------------
| Lowest share price | 3.37 | 4.38 | 3.00 |
--------------------------------------------------------------------------------
| Highest share price | 3.99 | 4.97 | 4.97 |
--------------------------------------------------------------------------------
| Average share price | 3.66 | 4.64 | 3.75 |
--------------------------------------------------------------------------------
| Market capitalisation | 73,734 | 85,205 | 69,669 |
--------------------------------------------------------------------------------
The formulae for the key figures and ratios are available in the financial
statements section. These formulae remained unchanged during the reporting
period.
The weighted average number of shares during the reporting period, adjusted for
share issues, totalled 20,312,239. The weighted average number of shares during
the reporting period, adjusted for dilution, totalled 20,511,302. The number of
shares outstanding at the end of the reporting period was 20,312,318.
The company has no treasury shares.
The Group does not have any liabilities arising from derivative contracts.
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