2008-02-14 07:45:09 CET
2008-02-14 07:45:59 CET
REGULATED INFORMATION
Proha - Financial Statement Release
PROHA PLC FINANCIAL STATEMENTS (IFRS) JANUARY 1, - DECEMBER 31, 2007
Period January - December 2007, continuing operations of Proha:
- Proha comparative net sales grew by 24% and were EUR 51.0 million (41.0
million in January - December 2006).
- The net sales for Dovre Consulting and Services division grew by 23% and were
EUR 46.9 (38.1) million.
- The net sales for Safran Systems division grew by 44% and were EUR 4.3 (3.0)
million.
- The comparative operating result of Proha was EUR -0.2 (0.1) million.
- The operating result for Dovre Consulting and Services division was EUR 2.1
(2.2) million. The operating result for Safran Systems division was EUR -0.9
(-0.6) million. The operating result for other operations was EUR -1.4 (-2.0)
million.
Period January - December 2007, Proha Group:
- The net sales decreased by 12.4% due to the divestment on June 30, 2006 and
were EUR 51.0 million (EUR 58.2 million in January - December 2006). However,
the strong increase of net sales of both Dovre Consulting and Services and
Safran Systems divisions partly compensated for the decrease.
- The operating result improved clearly and was EUR -0.2 million (The operating
result before non-recurring items EUR -2.9 million in January - December 2006).
Period October - December 2007, Proha Group:
- The net sales increased by 27.6% and were EUR 15.5 million (EUR 12.2 million
in October - December 2006).
- The net sales of Dovre Consulting and Services division grew by 28% and were
EUR 14.2 (11.1) million.
- The net sales of Safran Systems division grew by 25% and were EUR 1.4 (1.1)
million.
- The operating result of Proha was EUR 0.3 (0.2) million.
- The operating result for Dovre Consulting and Services division was EUR 0.6
(0.6) million. The operating result for Safran Systems division was 0.1 (-0.1)
million. The operating result for other operations was -0.4 (-0.2) million.
PROHA CEO PEKKA PERE
In 2007 Proha has successfully focused on the international expansion of both
Dovre Consulting and Services division and Safran Systems division. Despite of
the attempts, the goal of improving profitability was not reached
satisfactorily. Both Dovre and Safran divisions missed their profitability
targets. Within Dovre the main reasons were related to high employment costs,
also attempts to integrate software with services for improved margins were not
yet successful. Within Safran Systems division the negative deviation was mainly
caused by delayed introduction of the SafranOne product family and thus delayed
return on investments.
The net sales of Dovre Consulting and Services division continued to grow in the
fourth quarter of 2007. However, there exists plenty of potential for even
stronger international growth in the markets. Special attention has to be paid
to improvement of profit margins and resourcing and to opportunities
particularly in North America. The acquisition of Project Resource Solutions
Inc. in November expanded Dovre Consulting and Services division's operations in
the Canadian oil sands projects.
Safran Systems division has invested in product development. In spring 2007 the
introduction of new SafranOne products was delayed by ca. 6 months. However, now
several new product versions and functionalities have been launched with both
SafranOne and Safran Project families of products. The first product launch
within the SafranOne family of products was made in June as Proha introduced the
new Safran Portal for Knowledge Projects at the International Project Management
Association World Congress in Cracow, Poland. During fall 2007 new SafranOne
versions and SafranOne Mini Portals were introduced. Now the new products have a
solid sales pipeline and first sales have been closed.
The development of international sales channels has also continued. In addition
to partnership discussions, a new affiliated company Safran North America LLC
was founded together with its CEO Nick Pisano to sell Safran Products in North
America. In October Proha acquired Camako Data AB in Sweden. Both actions
strengthen the basis for our international growth. Together with Camako Safran
Systems division became the leading Microsoft Project Management partner in
Finland, Sweden and Norway.
In the fourth quarter of 2007 the expansion of international business, improving
sales and utilization of synergies between the divisions have been the central
themes in our operations. This enabled us to improve profitability in the fourth
quarter, and profitability will remain as one of the key focus areas also in
2008.
KEY RATIOS FOR THE CONTINUING OPERATIONS
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | | 1-12 | 1-12 | |
--------------------------------------------------------------------------------
| (EUR | 2007 | 2006 | Change % | 2007 | 2006 | Change % |
| million) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 15,5 | 12,2 | 27,6 % | 51,0 | 41,0 | 24,3 % |
--------------------------------------------------------------------------------
| Operating | 0,3 | 0,2 | 35,8 % | -0,2 | -0,3 | 52,0 % |
| result | | | | | | |
--------------------------------------------------------------------------------
| % of net | 1,9 % | 1,8 % | | -0,3 % | -0,8 % | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Result | 0,0 | 0,0 | -42,0 % | -0,6 | -0,6 | 5,7 % |
| before | | | | | | |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| Result for | -0,3 | 0,0 | -12851,9 | -1,2 | -1,1 | -10,2 % |
| the period | | | % | | | |
--------------------------------------------------------------------------------
| Return on | -8,5 % | 0,1 % | | -7,9 % | -7,1 % | |
| equity % | | | | | | |
--------------------------------------------------------------------------------
| Return on | 10,5 % | 6,8 % | | 1,6 % | -0,5 % | |
| investment | | | | | | |
| % | | | | | | |
--------------------------------------------------------------------------------
| Cash and | 5,3 | 12,0 | -55,5 % | 5,3 | 12,0 | -55,5 % |
| cash | | | | | | |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
| Debt-equity | -7,3 % | -38,7 % | | -7,3 % | -38,7 % | |
| ratio % | | | | | | |
--------------------------------------------------------------------------------
| Equity | 45,5 % | 47,0 % | | 45,5 % | 47,0 % | |
| ratio % | | | | | | |
--------------------------------------------------------------------------------
| Basic | -0,005 | 0,000 | -4113,1 | -0,019 | -0,018 | -11,0 % |
| earnings | | | % | | | |
| per share, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Diluted | -0,005 | 0,000 | -4113,1 | -0,019 | -0,018 | -11,0 % |
| earnings | | | % | | | |
| per share, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 0,23 | 0,25 | -8,0 % | 0,23 | 0,25 | -8,0 % |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
KEY RATIOS OF THE PROHA GROUP
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | | 1-12 | 1-12 | |
--------------------------------------------------------------------------------
| (EUR | 2007 | 2006 | Change % | 2007 | 2006 | Change % |
| million) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 15,5 | 12,2 | 27,6 % | 51,0 | 58,2 | -12,4 % |
--------------------------------------------------------------------------------
| Operating | 0,3 | 0,2 | 35,8 % | -0,2 | 11,6 | -101,3 % |
| result | | | | | | |
--------------------------------------------------------------------------------
| % of net | 1,9 % | 1,8 % | | -0,3 % | 20,0 % | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| Result | 0,0 | 0,0 | -42,0 % | -0,6 | 12,0 | -105,1 % |
| before | | | | | | |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| Result for | -0,3 | 0,0 | -12851,9 | -1,2 | 11,0 | -111,0 % |
| the period | | | % | | | |
--------------------------------------------------------------------------------
| Return on | -8,4 % | 0,1 % | | -7,9 % | 111,2 % | |
| equity % | | | | | | |
--------------------------------------------------------------------------------
| Return on | 10,5 % | 6,7 % | | 1,6 % | 72,8 % | |
| investment | | | | | | |
| % | | | | | | |
--------------------------------------------------------------------------------
| Cash and | 5,3 | 12,0 | -55,5 % | 5,3 | 12,0 | -55,5 % |
| cash | | | | | | |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
| Debt-equity | -7,3 % | -38,2 % | | -7,3 % | -38,2 % | |
| ratio % | | | | | | |
--------------------------------------------------------------------------------
| Equity-rati | 45,5 % | 47,3 % | | 45,5 % | 47,3 % | |
| o % | | | | | | |
--------------------------------------------------------------------------------
| Basic | -0,005 | 0,000 | 4113,1 % | -0,019 | 0,179 | -110,9 % |
| earnings | | | | | | |
| per share, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Diluted | -0,005 | 0,000 | 4113,1 % | -0,019 | 0,179 | -110,9 % |
| earnings | | | | | | |
| per share, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 0,23 | 0,25 | -8,0 % | 0,23 | 0,25 | -8,0 % |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
ACQUISITIONS IN 2007
Proha Acquired Swedish Camako Data AB
In October 2007 Proha acquired full ownership of the Swedish project management
IT consultancy company Camako Data AB (Camako). Established in 1996 Camako is a
project and resource management IT consultancy company concentrating especially
in Microsoft products. On December 31, 2007, Camako employed 11 consultants and
has a strong position in the Swedish markets. Camako became part of the Proha's
Safran Systems division. Camako is consolidated in Proha's group financial
statements beginning November 1, 2007.
Proha Acquired Canadian Project Resource Solutions Inc
Proha's Canadian subsidiary Fabcon Canada Limited acquired full ownership of
Project Resource Solutions Inc (PRS)in November 2007. PRS is a project
management resource company focusing on services to Canadian Oil Sand Projects,
a market that Fabcon entered in 2006. Established in 2005, PRS is located in
Calgary. On December 31, 2007, PRS engaged 34 consultants within project
management in various projects in the province of Alberta. PRS became a
subsidiary to Fabcon Canada Limited and thus a part of Proha's Dovre Consulting
and Services division. PRS is consolidated in Proha's group financial statements
beginning November 20, 2007.
EVENTS AFTER THE PERIOD
In its meeting on February 4, 2008 the Proha Board of Directors decided to
invite Proha shareholders to the Extraordinary General Meeting to be held on
Tuesday, February 26, 2008 at 14.00 p.m. in Hotel Scandic Continental,
Mannerheimintie 46, Helsinki.
The meeting is convened to decide on the following issues:
1. Number of members of the Board of Directors
Some of the company's largest shareholders representing together over 10% of all
shares and votes have informed the company that they will propose to the
Extraordinary General Meeting that six members will be elected to the Board of
Directors.
2. Election of members of the Board of Directors
Some of the company's largest shareholders representing together over 10% of all
shares and votes have informed the company that they will propose to the
Extraordinary General Meeting that from the current members of Board of
Directors Olof Ödman, Ernest Jilderda and Birger Flaa will continue in their
positions and that Svein Stavelin, David Cairns and Ilari Koskelo be elected as
new members to the Board of Directors. Gjalt de Vries has informed the company
that he will withdraw from the Board.
BUSINESS PERFORMANCE
The net sales of Proha mainly consist of project management software and
services. The largest international companies within the oil and gas sector are
the most significant customer group. Dovre Consulting and Services Division
accounted for approximately 92% (93%) and Safran Systems Division 8% (7%) of the
net sales of the Group in 2007.
Dovre Consulting and Services Division
Dovre Consulting and Services division consists of Norwegian Dovre International
AS together with its international subsidiaries. The division delivers project
management consulting and services globally.
In 2007, the majority of Dovre Consulting and Services division business came
from the oil and gas sector. Long term frame agreements with some of the world's
largest oil and gas companies cover most of the business. Outside the oil and
gas sector e.g. the Norwegian Ministry of Finance, Jernbaneverket and City of
Oslo are examples of important customers. In 2007 Dovre also gained several new
customers, common for them being the need for professional management of
investments and projects.
In 2007 Dovre Consulting and Services division had operations in 11 countries
and the activity level remains high in all markets. For example, in 2007 the US
operations developed favorably with new projects in countries like Singapore,
Spain and Dubai. The growth of North American operations proved the strategic
importance of Fabcon acquisition in 2006.
The business operations in Canada have developed as planned. Acquisition of
Canadian project management resource company PRS strengthens the division's
Canadian operations in particular with the oil sands projects in Alberta.
The general outlook for business development is expected to be positive based on
the current forecasted investment levels in new oil & gas projects for the next
3-5 years.
Safran Systems division
Safran Systems business is operated by the parent company, Datamar Oy and
Norwegian Safran Software Solutions AS and Swedish Camako Data AB.
Safran Software Solutions AS develops and sells project management software
specifically for the needs of oil and gas industry, construction and ship
building industry. New product version of Safran Project was launched in 2007.
Safran Software Solutions AS products are now in compliance with ANSI-748
standard in Earned Value reporting. In 2007 Safran has also gained new customers
Shell and Conoco-Phillips and the sales with existing customers have developed
favorably.
On the second quarter of 2007 Safran established a new associated company Safran
North America, LLC with market focus on federal, airspace and defense, energy
and oil & gas industries. Safran North America has also started operations and
has gained its first customer.
The Group parent company and Datamar Oy develop and sell products in the
SafranOne family of products, mobile solutions based on intelligent SMS
technology (iSMS) and RescuePlanner applications directed to safety and rescue
operations.
In 2007 a new version of RescuePlanner was launched. The solution is now in use
at three regional rescue departments in Finland. Also new iSMS query solution
was developed and is in production use in e.g. logistics, call centers and order
processes.
In 2007 the focus areas of Safran Systems division have been Microsoft project
management and collaboration tools together with our SafranOne products built on
Microsoft SharePoint.
In 2007 Proha intensified the cooperation with Microsoft. Proha is now both
Microsoft Gold Certified Partner and has gained Microsoft EPM Specialization.
In 2007 building of international delivery and partnership networks continued.
The acquisition of Camako Data AB in Sweden strengthens the basis for the
international expansion in accordance with Proha's strategy. Safran Systems
division operates globally and is a Microsoft Project Management partner in
Finland, Sweden Norway and Australia.
NET SALES
Group, January - December 2007:
Net sales for Proha Group decreased by 12.4% due to divestment on June 30, 2006
and were EUR 51.0 million (EUR 58.2 million in January - December 2006).
However, the decrease was partially offset by the growth in net sales of Dovre
Consulting and Services and Safran Systems divisions.
Continuing operations, January - December 2007:
Net sales for Proha continuing operations grew by 24% and were EUR 51.0 (41.0)
million. The net sales of Dovre Consulting and Services division grew by 23% and
were EUR 46.9 (38.1) million. The net sales of Safran Systems division grew by
44% and were EUR 4.3 (3.0) million.
Proha Group and continuing operations, October - December 2007:
The net sales for Proha Group grew by 27.6% and were EUR 15.5 (12.2) million.
The net sales for Dovre Consulting and Services division grew by 28% and were
14.2 (11.1) million. The net sales for Safran systems division grew by 25% and
were EUR 1.4 (1.1) million.
Distribution of net sales for the continuing operations by revenue type (EUR
million and % of net sales):
--------------------------------------------------------------------------------
| | 10-12 | % | 10-12 | % | 1-12 | % | 1-12 | % |
--------------------------------------------------------------------------------
| | 2007 | | 2006 | | 2007 | | 2006 | |
--------------------------------------------------------------------------------
| Services | 15,0 | 96,8 | 11,8 | 96,9 | 49,6 | 97,3 | 40,1 | 97,7 |
--------------------------------------------------------------------------------
| One time | | | | | | | | |
--------------------------------------------------------------------------------
| license | | | | | | | | |
--------------------------------------------------------------------------------
| revenue | 0,3 | 1,9 | 0,1 | 0,9 | 0,6 | 1,2 | 0,3 | 0,6 |
--------------------------------------------------------------------------------
| Recurring | | | | | | | | |
--------------------------------------------------------------------------------
| license | | | | | | | | |
--------------------------------------------------------------------------------
| revenue | 0,2 | 1,2 | 0,3 | 2,1 | 0,8 | 1,5 | 0,7 | 1,7 |
--------------------------------------------------------------------------------
| Total | 15,5 | 100,0 | 12,2 | 100,0 | 51,0 | 100,0 | 41,0 | 100,0 |
--------------------------------------------------------------------------------
In 2007, the service revenue was EUR 49.6 (40.1) million or 97% (98%) of the net
sales. In 2007 the license sales amounted to EUR 1.4 (1.0) million, accounting
for 3% (2%) of the net sales.
In the period October 1, - December 31, 2007, the service revenue was EUR 15.0
(11.8) million or 97% (97%) of the net sales. In the period October 1, -
December 31, 2007 the license sales amounted to EUR 0.5 (0.4) million,
accounting for 3% (3%) of the net sales.
Distribution of net sales by segment (EUR million):
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | Change | 1-12 | 1-12 | Change |
--------------------------------------------------------------------------------
| | 2007 | 2006 | % | 2007 | 2006 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dovre | 14,2 | 11,1 | 27,8 | 46,9 | 38,1 | 23,0 |
--------------------------------------------------------------------------------
| Safran | 1,4 | 1,1 | 24.8 | 4,3 | 3,0 | 43,7 |
--------------------------------------------------------------------------------
| Others | 0,1 | 0,2 | -40,4 | 0,4 | 0,5 | -23,8 |
--------------------------------------------------------------------------------
| Discontinued | | | | | | |
--------------------------------------------------------------------------------
| operations | 0,0 | 0,0 | 100,0 | 0,0 | 17,2 | -100,0 |
--------------------------------------------------------------------------------
| Inter-segment | | | | | | |
--------------------------------------------------------------------------------
| net sales | -0,1 | -0,2 | | -0,6 | -0,6 | |
--------------------------------------------------------------------------------
| Group total | 15,5 | 12,2 | 27,6 | 51,0 | 58,2 | -12,4 |
--------------------------------------------------------------------------------
Distribution of net sales by geographical segments (EUR million):
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | 1-12 | 1-12 |
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EMEA | 10,0 | 7,2 | 35,6 | 43,1 |
--------------------------------------------------------------------------------
| AMERICAS | 5,4 | 5,8 | 15,8 | 12,9 |
--------------------------------------------------------------------------------
| APAC | 0,4 | 0,9 | 1,7 | 5,4 |
--------------------------------------------------------------------------------
| Net sales | | | | |
--------------------------------------------------------------------------------
| between segments | -0,2 | -1,7 | -2,1 | -3,2 |
--------------------------------------------------------------------------------
| Group total | 15,5 | 12,2 | 51,0 | 58,2 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | 1-12 | 1-12 |
--------------------------------------------------------------------------------
| (% of net sales) | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EMEA | 64,1 % | 58,9 % | 69,7 % | 74,0 % |
--------------------------------------------------------------------------------
| AMERICAS | 34,9 % | 47,9 % | 31,0 % | 22,2 % |
--------------------------------------------------------------------------------
| APAC | 2,4 % | 7,0 % | 3,4 % | 9,3 % |
--------------------------------------------------------------------------------
| Net sales | | | | |
--------------------------------------------------------------------------------
| between segments | -1,4 % | -13,8 % | -4,1 % | -5,5 % |
--------------------------------------------------------------------------------
| Group total | 100,0 % | 100,0 % | 100,0 % | 100,0 % |
--------------------------------------------------------------------------------
PROFITABILITY
Proha continuing operations, January - December 2007:
The operating result of Proha continuing operations was EUR -0.2 million
(operating result before non-recurring items EUR 0.1 million and after
non-recurring items EUR -0.3 million in corresponding period of 2006). The
operating result of Dovre Consulting and Services Division was EUR 2.1 (2.2)
million. The operating result of Safran Systems Division was EUR -0.9 (-0.6)
million. The operating result for other operations was EUR -1.4 million
(operating result before non-recurring items EUR 1.5 million and after
non-recurring items
EUR -2.0 million in corresponding period of 2006).
Proha Group, January - December 2007:
The operating result of the Group improved materially to EUR -0.1 million
(operating result before non-recurring items EUR -2.9 million and after
non-recurring items EUR 11.6 million in corresponding period of 2006)
Proha Group and continuing operations, October - December 2007:
The operating result of Proha was EUR 0.3 (0.2) million. The operating result of
Dovre Consulting and Services Division was EUR 0.6 (0.6) million. The operating
result of Safran Systems Division was EUR 0.1 (-0.1) million. The operating
result for other operations was EUR -0.4 (-0.2) million.
Distribution of operating result by segment:
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | | 1-12 | 1-12 | |
--------------------------------------------------------------------------------
| (EUR million) | 2007 | 2006 | Change % | 2007 | 2006 | Change % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dovre | 0,6 | 0,6 | 6,0 | 2,1 | 2,2 | -5,0 |
--------------------------------------------------------------------------------
| Safran | 0,1 | -0,1 | 179,5 | -0,9 | -0,6 | -55,1 |
--------------------------------------------------------------------------------
| Others | -0,4 | -0,2 | -95,2 | -1,4 | -2,0 | 29,6 |
--------------------------------------------------------------------------------
| Continuing | | | | | | |
--------------------------------------------------------------------------------
| operations | 0,3 | 0,2 | 35,8 | -0,2 | -0,3 | 52,0 |
--------------------------------------------------------------------------------
| Discontinued | | | | | | |
--------------------------------------------------------------------------------
| operations | 0,0 | 0,0 | | 0,0 | 12,0 | -100,0 |
--------------------------------------------------------------------------------
| Group total | 0,3 | 0,2 | 35,8 | -0,2 | 11,6 | -101,3 |
--------------------------------------------------------------------------------
Result for January 1, - December 31, 2007:
In 2007, the result before tax for Proha Group was EUR -0.6 (12.0) million and
after tax EUR -1.2 (11.0) million. For the continuing operations the result
before taxes was EUR -0.6 (-0.6) million and result after tax was EUR -1.2
(-1.1) million.
Earnings per share:
Group earnings per share was EUR -0.019 (0.179). For the continuing operations
the earnings per share were EUR -0.019 (-0.018).
Group return on investment (ROI) was 1.6% (72.8%). The return on investment
(ROI) for the continuing operations was 1.6% (-0.5%).
CASH FLOW, FINANCING AND INVESTMENTS
On December 31, 2007, the Group balance sheet total was EUR 32.0 (32.7) million.
On December 31, 2007, the cash and cash equivalents for the Group totaled EUR
5.3 (12.0) million.
In 2007, cash flow from operating activities was EUR -1.5 (-0.6) million. The
cash flow from operating activities was decreased by the increase of EUR -1.1
(-0.8) million in net working capital.
In 2007, the cash flow of investments was EUR -3.5 (4.5) million. The gross
investments totaled EUR 3.0 (2.2) million. The gross investments include
acquisitions of subsidiaries EUR 2.2 (1.9) million and capitalized software
development expenses of EUR 0.4 (0.0) million.
The balance sheet goodwill totaled EUR 6.7 (4.8) million on December 31, 2007.
The Group's goodwill is not amortized but tested for impairment under IAS 36. No
indications of impairment of assets exist.
In 2007, the cash flow of financing activities was EUR -2.0 (1.0) million. Total
of EUR 1.4 (2.2) million new loans were drawn mainly for financing of
acquisitions. In 2007 the convertible loan of EUR 2.8 million and other loans
for a total of EUR 0.7 (1.2) million were repaid.
Group equity ratio was 45.5% (47.3%) and debt to equity ratio was -7.3%
(-38.2%). On December 31, 2007, the interest-bearing liabilities amounted to EUR
4.3 (6.2) million, accounting for 13.4 % (18.9%) of the Group's shareholders'
equity and liabilities total. Of the interest-bearing liabilities, EUR 2.0 (2.0)
million were non-current liabilities and EUR 2.3 (4.2) million current
liabilities. The Group's Quick Ratio was 1.5 (1.7).
RESEARCH AND DEVELOPMENT
In 2007 the research and development expenses for the Group continuing
operations were EUR 1.7 (1.0) million accounting for 3% (2%) of the net sales of
the continuing operations. In 2006, the research and development expenses EUR
4.0 million consisted of EUR 1.0 million of the research and development
expenses for the continuing operations and EUR 3.0 million of the research and
development expenses for the discontinued operations. In 2007, EUR 0.4 (0.0)
million of research and development costs were capitalized. The Group research
and development costs are almost totally associated with the corresponding costs
of Safran Systems division. Research and development costs made up 40% (33%) of
the net sales of Safran Systems division in 2007.
During the period under review, a new version of SafranOne technical platform
was released. SafranOne is used as the platform for the separate Safran portal
solutions.
In May, 2007 the international central organization of project management
associations IPMA (International Project Management Association) chose SafranOne
solution developed by Proha as its medium for member communication and Internet
platform. Also IPMA's intranet and extranet functions such as documents
distribution and common calendar are managed by SafranOne.
In June 2007, Proha launched its new project management portal solution at the
International Project Management Association World Congress in Cracow. After the
summer, also new SafranOne versions and Safran Mini Portal products have been
introduced.
The further development of Proha's Safran Project and Safran for Microsoft
Project continued as planned.
The implementation project at Oulu-Koillismaa rescue department is proceeding
according to plan for RescuePlanner developed by Proha for resource management
at rescue departments. The application of Proha's mobile solution is extended at
Helsinki Rescue department also for urgent communication between various
authorities.
PERSONNEL
In 2007, the staff costs for the Group and continuing operations amounted to EUR
46.9 million, and EUR 14.0 million in October 1, - December 31, 2007. For the
continuing operations the staff costs constituted 92% (92%) of the net sales in
2007, and 90% (92%) for the period October 1, - December 31, 2007. In 2006, the
Group staff costs EUR 50.1 million constituted of EUR 37.9 million of the staff
costs of the continuing operations and EUR 12.2 million of the staff costs of
the discontinued operations.
Distribution of personnel by segment (average):
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | | 1-12 | 1-12 | |
--------------------------------------------------------------------------------
| Personnel | 2007 | 2006 | Change % | 2007 | 2006 | Change % |
--------------------------------------------------------------------------------
| Dovre | 292 | 265 | 10,5 | 274 | 237 | 15,3 % |
--------------------------------------------------------------------------------
| Safran | 57 | 53 | 6,9 | 53 | 46 | 15,3 % |
--------------------------------------------------------------------------------
| Other | 6 | 7 | -14,3 | 6 | 18 | -66,2 % |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Discon-tinue | 0 | | | 0 | 168 | -100,0 % |
| d operations | | | | | | |
--------------------------------------------------------------------------------
| Total | 355 | 325 | 9,3 | 333 | 469 | -29,1 % |
--------------------------------------------------------------------------------
On December 31, 2007, the Proha Group employed 381 (325) people worldwide, with
315 (264) being employed by Dovre Consulting and Services division, 60 (54) by
Safran Systems division and 6 (7) by other operations.
The average number of Group personnel was 333 (469) in 2007.
DECISIONS OF PROHA ANNUAL GENERAL MEETING OF SHAREHOLDERS
On April 18, 2007 the Annual General Meeting of Proha Plc made the following
decisions:
1. The issues inherent to the Annual General Meeting under section 11 of the
Articles of Association
The Annual General Meeting confirmed the 2006 Financial Statements and
discharged the Board of Directors and CEO from liability. The Annual General
Meeting approved the Board of Directors' proposal that the net result for the
financial period be transferred to profit/loss brought forward account and no
dividend is paid.
The Annual General Meeting decided to alter the number of Board members to four.
Proha CEO Pekka Pere and Pekka Mäkelä resigned from the Board. Mr. Gjalt de
Vries was elected as a new member to the Board. Mr. de Vries is a citizen of the
Netherlands. Olof Ödman, Birger Flaa and Ernest Jilderda continue as members of
the Proha Board.
The Annual General Meeting decided that, following the present practice, the
Chairman of the Board be paid EUR 18,000 and each Board member, at the moment of
election not employed by the Proha Group or by such company which owns more than
five percents of Proha's share capital and who does not exercise dominant
influence over such company, to be paid EUR 10,000 per year as remuneration for
board work. Additionally, it was decided that the auditors will be paid in
accordance with a reasonable invoice.
Ernst & Young Oy was elected to continue as the Company's auditor, with Ulla
Nykky, APA, as the auditor in charge.
2. Amendment of the Articles of Association
The Annual General Meeting decided to amend the Articles of Association due to
the new Companies Act, effective as of September 1, 2006 as proposed by the
Board as follows:
- Article 4 containing provisions on minimum and maximum share capital as well
as the number of shares was removed.
- The provisions on record date from Article 5 were removed.
- The provisions in Article 8 on the right to represent the Company were amended
to align with the terminology of the new law.
- The list of agenda items of the Annual General Meeting in Article 11 was
amended to correspond to the new law.
- The provisions in Article 13 on the notice period of the Annual General
Meeting were amended to the effect that the notice must be published no earlier
than three (3) months prior to the latest date of registration. Also the method
of notice is amended so that as an alternative to publishing the notice in a
nationally published newspaper, the notice can be sent in writing. Previously,
the alternative method of notice has been a registered letter.
In addition, the Company's field of business (Article 3) was expanded to include
consulting in business management and engineering. The new articles of
association were presented in the appendix of stock exchange bulletin on March
28, 2007.
3. Recording the subscription prices for shares issued based on stock options in
the fund for invested non-restricted equity
The Annual General Meeting decided to complete the terms and conditions of Proha
Stock Option Plans 2005 and 2006 to the effect that the total amount of the
subscription prices paid for new shares issued after the date of the General
Meeting, based on stock options under Plans 2005 and 2006, be recorded in the
fund for invested non-restricted equity.
4. Option rights to key personnel and Board of Directors
The Annual General Meeting approved without changes the Board proposition to
issue a maximum of 2,110,000 option rights that are offered deviating from the
shareholders' pre-emptive subscription right to the Board of Directors and to
the key personnel of the Group companies.
The subscription of the option rights began immediately and will end on April
17, 2008. The proposed share subscription price will be the weighted average
price of Proha share within the period of 30 days before the General Meeting,
from March 19 through April 17, 2007, i.e. EUR 0.37. The exercise period of the
option rights for share subscription will commence in steps between years 2008
and 2010 and will end on May 31, 2011. If only newly issued shares are used for
share subscriptions, the shares subscribed under the Stock Option Plan 2007
constitute a maximum of 3.33 percent of the total number of Proha shares after
the subscription. The complete terms and conditions are presented in the
appendix of stock exchange bulletin on March 28, 2007.
5. Board of Directors' proposal to authorize the Board of Directors to resolve
on the issuance of shares and special rights entitling to shares
The Annual General Meeting authorized the Board of Directors to resolve to issue
a maximum of 12,243,734 shares through issuance of shares or special rights
entitling to shares (including stock options) under Chapter 10, Section 1 of the
Companies Act, in one or more issues. The authorization includes both the
issuance of new shares as well as shares held by the Company, and corresponded
to 20 percent of the Company's total number of shares at the date of the Annual
General Meeting.
The authorization may be used to finance or execute acquisitions or other
arrangements, to carry out equity-based incentive plans, or to other purposes
resolved by the Board. The authorization includes the right for the Board to
decide on all the terms and conditions of the issuance of shares or special
rights under Chapter 10, Section 1 of the Companies Act, including to whom
shares or special rights may be issued as well as the consideration to be paid.
The authorization thereby includes the right for issuance in deviation from the
shareholders' pre-emptive rights within the limits set by law.
As payment of the second installment of Camako acquisition, 500,000 shares of
the authorization were used after the period under review.
The authorization is effective until April 17, 2012.
CORPORATE GOVERNANCE
Proha Plc follows the recommendations of the Helsinki Stock Exchange, the
Central Chamber of Commerce and the Confederation of Finnish Industries and
Employers regarding the corporate governance of publicly held companies. Proha
makes two exceptions from the recommendation: 1) Proha Board of Directors
comprises of four members and 2) A share-based bonus system may also be applied
to those members of the Board, who do not have an employment relationship with
the company. Proha's corporate governance principles can be found on the
company's website at www.proha.com.
SHARE CAPITAL AND AUTHORIZATIONS TO ISSUE SHARES
Proha Plc has one class of shares. The book value of the shares is EUR 0.26 per
share. Each share entitles the shareholder to one vote. Proha Plc shares are
traded on the Nordic Exchange of OMX Group.
On January 1, 2007, the subscribed capital of Proha Plc was EUR 15,916,854.20
and the number of shares is 61,218,670. No changes were made on the share
capital during the period under review. After the period under review, a total
of 500,000 new shares were issued at the payment of the second installment of
Camako acquisition.
No shares were subscribed for with Proha Plc's option during the period under
review.
The option plans 2002 and 2003 ended on April 1, 2007. A total of 500 shares
were subscribed for under the plan 2002 and no shares were subscribed for under
the plan 2003.
The Annual General Meeting authorized the Board of Directors to resolve to issue
a maximum of 12,243,734 shares through issuance of shares or special rights
entitling to shares (including stock options) under Chapter 10, Section 1 of the
Companies Act, in one or more issues. The authorization includes both the
issuance of new shares as well as shares held by the Company, and corresponded
to 20 percent of the Company's total number of shares at the date of the Annual
General Meeting. The authorization is effective until April 17, 2012.
The Annual General Meeting approved without changes the Board proposition to
issue a maximum of 2,110,000 option rights that are offered deviating from the
shareholders' pre-emptive subscription right to the Board of Directors and to
the key personnel of the Group companies.
In its meeting on June 28, 2007, Proha Board of Directors approved subscriptions
of the option issue. A total of 1,707,000 Proha Plc stock options were
subscribed, entitling to the subscription of 1,707,000 shares.
The subscription of the option rights began on April 18, 2007 and will end on
April 17, 2008. The share subscription price is EUR 0.37 i.e. the weighted
average price of Proha share within the period of 30 days before the General
Meeting, from March 19 through April 17, 2007. The exercise period of the option
rights for share subscription will commence in steps between years 2008 and 2010
and will end on May 31, 2011. The complete terms and conditions are presented in
the appendix of stock exchange bulletin on March 28, 2007.
TRADING ON THE HELSINKI STOCK EXCHANGE
The number of registered shareholders of Proha Plc totaled 3 363 on December 31,
2007. In 2007, the share price was EUR 0.25 at its lowest and EUR 0.45 at its
highest. The closing price on December 31, 2007 was EUR 0.25. Market
capitalization was approximately EUR 15.3 million at the end of the period under
review. The trading volume of the Proha share on the OMX Nordic Exchange was
approximately EUR 13.5 million during the period under review. Proha Plc has
liquidity providing agreement with Remium AB for the Proha share.
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand in oil and gas sector together with the level of investments in the
sector impact the success of Dovre Consulting and Services division. The
companies operating in oil and gas industry are challenged also by the adequacy
of resources and added personnel turnover.
General competitive situation and technological solutions developed by the
competition impact the business of Safran Systems division. The profitable
growth for Safran business calls for success in Microsoft cooperation and
creation of international distribution and partner networks.
The development of Proha's international business includes also possible
acquisitions and shareholdings in companies operating in the field. Such
strategic acquisitions always include risks. They are being managed, among
others, by ensuring that the size of acquisitions is reasonable.
PROSPECTS FOR 2008
In spite of recent turbulences on the financial markets, it is anticipated that
developments will continue positive within oil and gas industry that is
important for Proha. In 2008 the level of investments within the industry is
estimated to stay high and consequently the demand for professional services by
Dovre Consulting and Services division is anticipated to remain strong.
Proha continues to follow the strategy approved in October 2006 and aims at
developing the operations of both divisions by seeking strong international
growth and by improving their profitability. In 2008 a special focus area will
be to integrate software products developed by Safran Systems division with
services by Dovre Consulting and Services division to provide customers with
service entities that bring considerable added value to customers.
In 2008 the most substantial business challenges are related to recruiting
professional personnel for Dover Consulting and Services division as well as to
successful market launch of the before mentioned service concept. The challenges
in recruiting are met by a company training program for professionals together
with other actions.
For Safran Systems division the focus areas are increasing sales in the Nordic
home markets and expansion of the international distribution and partnership
networks. Also the market openings in North America and Sweden in 2007 are
anticipated to show positive results in 2008.
Opportunities for strategic low risk acquisitions are evaluated by both
divisions to support worldwide growth.
In 2008 the growth in Group net sales is anticipated to continue. Also the Group
operating result is anticipated to improve and be positive. Following customary
seasonal fluctuations the operating result is anticipated to improve towards the
end of 2008.
For Dovre Consulting and Services division profitability is anticipated to
remain at least on the same level as in 2007. For Safran Systems division the
forecast is for substantial growth in net sales with improved profitability. The
level of investments in software development within Safran Systems division is
anticipated to remain stable in 2008. Also the Group administrative expenses are
anticipated to remain at the same level as in 2007.
The above prospects are based on forecasts approved by Proha Board.
BOARD OF DIRECTORS' PROPOSAL FOR DISTRIBUTION OF PROFIT
The Proha Board of Directors proposes that result for the financial year be
entered in shareholders' equity, and no dividend be paid.
February 13, 2008
Proha Plc
Board of Directors
The yearend financial statements are audited.
PRESS CONFERENCE
Proha Plc will hold a press conference for the media and financial
analysts on February 14, 2008 at 13.00 a.m., in Kokoustila 1 at
World Trade Center, address Aleksanterinkatu 17, Helsinki.
More information
PROHA PLC
CEO Pekka Pere, tel +358 (0)20 4362 000
pekka.pere@proha.com
www.proha.com
DISTRIBUTION:
Helsinki Stock Exchange
Major Media
GROUP INCOME STATEMENT
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS | | | | |
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | Change | 1-12 | 1-12 | Change |
--------------------------------------------------------------------------------
| (EUR | 2007 | 2006 | % | 2007 | 2006 | % |
| thousand) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 15 540 | 12 183 | 27,6 | 51 004 | 41 021 | 24,3 |
--------------------------------------------------------------------------------
| Other | 40 | 169 | -76,4 | 79 | 392 | -79,8 |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Gain on | | | | | -472 | -100,0 |
| disposal of | | | | | | |
| discontinued | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Material and | -6 | -35 | -83,3 | -89 | -85 | 4,4 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee | -14 007 | -11 204 | 25,0 | -46 858 | -37 887 | 23,7 |
| benefits | | | | | | |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -127 | -94 | 35,0 | -421 | -374 | 12,6 |
| and | | | | | | |
| amortisation | | | | | | |
--------------------------------------------------------------------------------
| Other | -1 139 | -797 | 42,8 | -3 872 | -2 920 | 32,6 |
| operating | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | 301 | 222 | 35,8 | -156 | -326 | 52,0 |
| RESULT | | | | | | |
--------------------------------------------------------------------------------
| Financing | 219 | 151 | 44,7 | 569 | 222 | 155,8 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Financing | -512 | -345 | 48,3 | -934 | -539 | 73,3 |
--------------------------------------------------------------------------------
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Share of | 7 | -2 | 402,5 | -85 | -2 | -3 |
| result in | | | | | | 842,8 |
| associates | | | | | | |
--------------------------------------------------------------------------------
| RESULT | 15 | 26 | -42,0 | -607 | -645 | 5,7 |
| BEFORE TAX | | | | | | |
--------------------------------------------------------------------------------
| Tax on | -329 | -23 | -1317,0 | -566 | -455 | -24,4 |
| income from | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR | -314 | 2 | -12704,0 | -1174 | -1 100 | -6,7 |
| THE PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ALLOCATION | | | | | | |
| OF RESULT | | | | | | |
| FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| Result | -318 | -8 | -4 113,1 | -1 191 | -1108 | -7,5 |
| attributable | | | | | | |
| to equity | | | | | | |
| holders of | | | | | | |
| the parent | | | | | | |
--------------------------------------------------------------------------------
| Result | 4 | 10 | -63,3 | 18 | 8 | 109,1 |
| attributable | | | | | | |
| to minority | | | | | | |
| interest | | | | | | |
--------------------------------------------------------------------------------
| | -314 | 2 | -12704,0 | -1 174 | -1100 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/sha | -0,005 | 0,000 | -4 113,1 | -0,019 | -0,018 | -7,5 |
| re | | | | | | |
| (undiluted), | | | | | | |
| Euro | | | | | | |
--------------------------------------------------------------------------------
| Earnings/sha | -0,005 | 0,000 | -4 113,1 | -0,019 | -0,018 | -7,5 |
| re | | | | | | |
| (diluted), | | | | | | |
| Euro | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS | | | | |
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | Change | 1-12 | 1-12 | Change |
--------------------------------------------------------------------------------
| (EUR thousand) | 2007 | 2006 | % | 2007 | 2006 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | | | | | 17 195 | -100,0 |
--------------------------------------------------------------------------------
| Other operating | | | | | 116 | -100,0 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Gain on | | | | | 15 006 | -100,0 |
| disposal of | | | | | | |
| discontinued | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Material and | | | | | -1 744 | -100,0 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee | | | | | -12 210 | -100,0 |
| benefits | | | | | | |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Other operating | | | | | -6 402 | -100,0 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | | | | | 11 961 | -100,0 |
| RESULT | | | | | | |
--------------------------------------------------------------------------------
| Financing | | | | | 1 004 | -100,0 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Financing | | | | | -369 | -100,0 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Share of result | | | | | | |
| in associates | | | | | | |
--------------------------------------------------------------------------------
| RESULT BEFORE | | | | | 12 596 | -100,0 |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| Tax on income | | | | | -489 | -100,0 |
| from operations | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR THE | | | | | 12 106 | -100,0 |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| ALLOCATION OF | | | | | | |
| RESULT FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| Result | | | | | 12 070 | -100,0 |
| attributable to | | | | | | |
| equity holders | | | | | | |
| of the parent | | | | | | |
--------------------------------------------------------------------------------
| Result | | | | | 36 | -100,0 |
| attributable to | | | | | | |
| minority | | | | | | |
| interest | | | | | | |
--------------------------------------------------------------------------------
| | | | | | 12 106 | -100,0 |
--------------------------------------------------------------------------------
| Earnings/share | | | | 0,197 | |
| (undiluted), Euro | | | | | |
--------------------------------------------------------------------------------
| Earnings/share | | | | 0,197 | |
| (diluted), Euro | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP TOTAL | | | | | | |
--------------------------------------------------------------------------------
| | 10-12 | 10-12 | Change | 1-12 | 1-12 | Change |
--------------------------------------------------------------------------------
| (EUR thousand) | 2007 | 2006 | % | 2007 | 2006 | % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES | 15 540 | 12 183 | 27,6 | 51 004 | 58 215 | -12,4 |
--------------------------------------------------------------------------------
| Other operating | 40 | 169 | -76,4 | 79 | 508 | -84,5 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Gain on | | | | | 14 534 | -100,0 |
| disposal of | | | | | | |
| discontinued | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Material and | -6 | -35 | -83,3 | -89 | -1 829 | -95,1 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee | -14 007 | -11 | 25,0 | -46 858 | -50 097 | -6,5 |
| benefits | | 204 | | | | |
| expense | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | -127 | -94 | 35,0 | -421 | -374 | 12,6 |
| and | | | | | | |
| amortisation | | | | | | |
--------------------------------------------------------------------------------
| Other operating | -1 139 | -797 | 42,8 | -3 872 | -9 322 | -58,5 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| OPERATING | 301 | 222 | 35,8 | -156 | 11 635 | -101,3 |
| RESULT | | | | | | |
--------------------------------------------------------------------------------
| Financing | 219 | 151 | 44,7 | 569 | 1 227 | -53,6 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Financing | -512 | -345 | 48,3 | -934 | -908 | 2,9 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Share of result | 7 | -2 | 402,5 | -85 | -2 | 3842,8 |
| in associates | | | | | | |
--------------------------------------------------------------------------------
| RESULT BEFORE | 15 | 26 | -42,0 | -607 | 11 951 | -105,1 |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| Tax on income | -329 | -23 | -1317,0 | -566 | -944 | -40,0 |
| from operations | | | | | | |
--------------------------------------------------------------------------------
| RESULT FOR THE | -314 | 2 | -12704,0 | -1174 | 11 007 | -110,7 |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| ALLOCATION OF | | | | | | |
| RESULT FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result | -318 | -8 | -4 113,1 | -1191 | 10962 | -110,9 |
| attributable to | | | | | | |
| equity holders | | | | | | |
| of the parent | | | | | | |
--------------------------------------------------------------------------------
| Result | 4 | 10 | -63,3 | 18 | 45 | -60,2 |
| attributable to | | | | | | |
| minority | | | | | | |
| interest | | | | | | |
--------------------------------------------------------------------------------
| | -314 | 2 | -12740,0 | -1174 | 11007 | -110,7 |
--------------------------------------------------------------------------------
| Earnings/share | -0,005 | 0,000 | -4 113,1 | -0,019 | 0,179 | -110,9 |
| (undiluted), | | | | | | |
| Euro | | | | | | |
--------------------------------------------------------------------------------
| Earnings/share | -0,005 | 0,000 | -4 113,1 | -0,019 | 0,179 | -110,9 |
| (diluted), Euro | | | | | | |
--------------------------------------------------------------------------------
GROUP BALANCE SHEET
--------------------------------------------------------------------------------
| | 31.12. | 31.12. | |
--------------------------------------------------------------------------------
| (EUR thousand) | 2007 | 2006 | Change % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 2 676 | 1 999 | 33,9 |
--------------------------------------------------------------------------------
| Goodwill | 6 747 | 4 758 | 41,8 |
--------------------------------------------------------------------------------
| Tangible assets | 356 | 216 | 65,1 |
--------------------------------------------------------------------------------
| Investments in associates | 1 000 | 982 | 1,8 |
--------------------------------------------------------------------------------
| Trade receivables and | 414 | 130 | 218,9 |
| other receivables | | | |
--------------------------------------------------------------------------------
| Available-for-sale | 48 | 36 | 34,7 |
| investments | | | |
--------------------------------------------------------------------------------
| Deferred tax asset | 204 | 208 | -1,8 |
--------------------------------------------------------------------------------
| Non-current assets | 11 444 | 8 328 | 37,4 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Trade receivables and | 15 216 | 12 339 | 23,3 |
| other receivables | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 5 349 | 12 022 | -55,5 |
--------------------------------------------------------------------------------
| Current assets | 20 566 | 24 361 | -15,6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 32 010 | 32 689 | -2,1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | | |
--------------------------------------------------------------------------------
| Share capital | 15 917 | 15 917 | 0,0 |
--------------------------------------------------------------------------------
| Share premium account | 4 379 | 4 379 | 0,0 |
--------------------------------------------------------------------------------
| Fair value reserve | 329 | 368 | -10,4 |
| and other reserves | | | |
--------------------------------------------------------------------------------
| Translation differences | 187 | 38 | 388,0 |
--------------------------------------------------------------------------------
| Retained earnings | -6 470 | -5 497 | 17,7 |
--------------------------------------------------------------------------------
| Equity attributable to | 14 342 | 15 205 | -5,7 |
| equity holders of the parent | | | |
--------------------------------------------------------------------------------
| Minority interest | 115 | 112 | 3,2 |
--------------------------------------------------------------------------------
| Shareholders' equity | 14 457 | 15 316 | -5,6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 653 | 491 | 33,0 |
--------------------------------------------------------------------------------
| Long-term liabilities, | 2 010 | 1 958 | 2,7 |
| interest-bearing | | | |
--------------------------------------------------------------------------------
| Long-term liabilities, | 439 | | |
| interest-free | | | |
--------------------------------------------------------------------------------
| Liabilities from defined | 488 | 379 | 29,0 |
| benefit plan | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 3 590 | 2 828 | 27,0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Short-term interest- | 2 289 | 4 205 | -45,6 |
| bearing liabilities | | | |
--------------------------------------------------------------------------------
| Trade payables and other | 11 041 | 9 783 | 12,9 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Tax liability, income tax | 632 | 556 | 13,7 |
--------------------------------------------------------------------------------
| Current liabilities | 13 962 | 14 545 | -4,0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 32 010 | 32 689 | -2,1 |
--------------------------------------------------------------------------------
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 2007
a) Share capital
b) Share premium account
c) Revaluation reserve
d) Translation difference
e) Retained earnings
f) Equity attributable to equity holders of the parent
g) Minority interest
h) Shareholders' equity total
--------------------------------------------------------------------------------
| | a) | b) | c) | d) | e) | f) | g) | h) |
--------------------------------------------------------------------------------
| SHAREHOLDE | 15 917 | 4 379 | 368 | 38 | -5 497 | 15 205 | 112 | 15 316 |
| RS' EQUITY | | | | | | | | |
| 1.1.2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | 0 | 0 | 13 | 149 | 50 | 211 | -14 | 197 |
| translatio | | | | | | | | |
| n | | | | | | | | |
| difference | | | | | | | | |
--------------------------------------------------------------------------------
| Share | 0 | 0 | 0 | 0 | 117 | 117 | 0 | 117 |
| based | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Transfers | 0 | 0 | -51 | 0 | 51 | 0 | 0 | 0 |
| between | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| NET | | | | | | | | |
| PROFIT/LOS | | | | | | | | |
| S | | | | | | | | |
| RECOGNISED | | | | | | | | |
| DIRECTLY | | | | | | | | |
--------------------------------------------------------------------------------
| IN | 0 | 0 | -38 | 149 | 218 | 329 | -14 | 315 |
| SHAREHOLDE | | | | | | | | |
| RS' EQUITY | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | 0 | 0 | 0 | 0 | -1 191 | -1 191 | 18 | -1 174 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| TOTAL | 0 | 0 | 0 | 0 | -1 191 | -1 191 | 18 | -1 174 |
| PROFIT AND | | | | | | | | |
| LOSS | | | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDE | 15 917 | 4 379 | 329 | 187 | -6 470 | 14 342 | 115 | 14 457 |
| RS' EQUITY | | | | | | | | |
| 31.12.2007 | | | | | | | | |
--------------------------------------------------------------------------------
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 2006
--------------------------------------------------------------------------------
| | a) | b) | c) | d) | e) | f) | g) | h) |
--------------------------------------------------------------------------------
| SHAREHOLDE | 15 917 | 4 808 | 430 | 463 | -17 219 | 4 400 | 73 | 4 473 |
| RS' EQUITY | | | | | | | | |
| 1.1.2006 | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | -13 | -181 | -41 | -235 | 2 | -233 |
| translatio | | | | | | | | |
| n | | | | | | | | |
| difference | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | | | | 77 | 77 | | 77 |
| based | | | | | | | | |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Transfers | | | -50 | | 50 | | | |
| between | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Disposal | | -429 | | -244 | 673 | | -50 | -50 |
| of Artemis | | | | | | | | |
--------------------------------------------------------------------------------
| Fabcon | | | | | | | 57 | 57 |
| acquisitio | | | | | | | | |
| n | | | | | | | | |
--------------------------------------------------------------------------------
| Other | 0 | 0 | | | 0 | 0 | | 0 |
| change | | | | | | | | |
--------------------------------------------------------------------------------
| NET | | | | | | | | |
| PROFIT/LOS | | | | | | | | |
| S | | | | | | | | |
| RECOGNISED | | | | | | | | |
| DIRECTLY | | | | | | | | |
--------------------------------------------------------------------------------
| IN | 0 | -429 | -63 | -425 | 759 | -158 | 9 | -149 |
| SHAREHOLDE | | | | | | | | |
| RS' EQUITY | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | 10 962 | 10 962 | 45 | 11 007 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| TOTAL | | | | | 10 962 | 10 962 | 45 | 11 007 |
| PROFIT AND | | | | | | | | |
| LOSS | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | 0 | | | | | 0 | -15 | -15 |
--------------------------------------------------------------------------------
| SHAREHOLDE | 15 917 | 4 379 | 368 | 38 | -5 497 | 15 205 | 112 | 15 316 |
| RS' EQUITY | | | | | | | | |
| 31.12.2006 | | | | | | | | |
--------------------------------------------------------------------------------
GROUP CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| | | | 1-12 | 1-12 |
--------------------------------------------------------------------------------
| (EUR thousand) | 2007 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities | | |
--------------------------------------------------------------------------------
| | Operating result | -156 | 11 635 |
--------------------------------------------------------------------------------
| | Adjustments | | |
--------------------------------------------------------------------------------
| | | Discontinued operations | | -11 292 |
--------------------------------------------------------------------------------
| | | Other operating income | | -71 |
--------------------------------------------------------------------------------
| | | Employee benefits expense | 194 | 319 |
--------------------------------------------------------------------------------
| | | Depreciation and amortisation | 421 | 374 |
--------------------------------------------------------------------------------
| | | Other adjustments | | -99 |
--------------------------------------------------------------------------------
| | Adjustments, total | 615 | -10 769 |
--------------------------------------------------------------------------------
| | Change in net working capital | | |
--------------------------------------------------------------------------------
| | | Increase (-) / decrease (+) | -2 610 | -3 860 |
| | | in current receivables | | |
--------------------------------------------------------------------------------
| | | Increase (+) / decrease (-) | 1 430 | 3 045 |
| | | in current liabilities | | |
--------------------------------------------------------------------------------
| | | Other adjustments | | |
--------------------------------------------------------------------------------
| | Change in net working capital, total | -1 181 | -815 |
--------------------------------------------------------------------------------
| | Interest paid | -613 | -555 |
--------------------------------------------------------------------------------
| | Interest received | 566 | 267 |
--------------------------------------------------------------------------------
| | Other financial expenses paid | -236 | -355 |
--------------------------------------------------------------------------------
| | Other financial income received | 28 | 373 |
--------------------------------------------------------------------------------
| | Income taxes paid | -486 | -353 |
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| Cash flow from operating activities | -1 463 | -572 |
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--------------------------------------------------------------------------------
| Cash flow from investing activities | | |
--------------------------------------------------------------------------------
| | Investments in tangible and intangible | -577 | -36 |
| | assets | | |
--------------------------------------------------------------------------------
| | Acquisition of subsidiaries net cash | -2 177 | -1 949 |
| | acquired | | |
--------------------------------------------------------------------------------
| | Investments in associates | -95 | -23 |
--------------------------------------------------------------------------------
| | Investments in other investments | -12 | |
--------------------------------------------------------------------------------
| | Proceeds from disposal of subsidiaries | | 6 579 |
| | net cash | | |
| | disposed of | | |
--------------------------------------------------------------------------------
| | Proceeds from other investments | 74 | |
--------------------------------------------------------------------------------
| | Proceeds (-) and repayments (+) of loan | -284 | -118 |
| | receivables | | |
--------------------------------------------------------------------------------
| | Dividends received | 2 | 2 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | -3 068 | 4 455 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | |
--------------------------------------------------------------------------------
| | Proceeds from short-term loans | 1 015 | 579 |
--------------------------------------------------------------------------------
| | Repayments of short-term loans | -702 | -742 |
--------------------------------------------------------------------------------
| | Repayment of convertible loans | -2 810 | |
--------------------------------------------------------------------------------
| | Proceeds from long-term loans | 435 | 1 619 |
--------------------------------------------------------------------------------
| | Repayments of long-term loans | | -463 |
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| | Dividends paid | | -15 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | -2 062 | 978 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -6 592 | 4 861 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning of the | 12 022 | 7 293 |
| period | | |
--------------------------------------------------------------------------------
| Foreign exchange rate adjustment | -80 | -132 |
--------------------------------------------------------------------------------
| Cash and cash equivalents of subsidiaries | 19 | 213 |
| acquired | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents of subsidiaries | | -3 464 |
| divested | | |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents for the | -6 612 | 8 112 |
| continuing operations | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of the period | 5 349 | 12 022 |
--------------------------------------------------------------------------------
NOTES TO THE GROUP FINANCIAL STATEMENTS
BASIS OF PREPARATION
The Group's yearend financial statements bulletin has been prepared according
IAS 34 standard and according to accounting principles for yearend financial
statements for 2007.
Beginning January 1, 2007 the Group has adopted the following new and revised
standards and interpretations:
IFRS 7 standard Financial Instruments: Disclosures. IFRS 7 requires presentation
of information on the impact of financial instruments on the entity's financial
position and result as well as on quality and extend of risks from financial
instruments.
Alteration of IAS 1 standard, IAS 1 Presentation of Financial Statements -
Capital Disclosures. IAS 1 requires presentation of information on the entity's
level of capital and its management during the financial period.
IFRIC 8 Scope of IFRS 2. IFRIC8 is applied to business transactions in which
equity instruments are granted and the received identified consideration is less
than the fair value of the granted instruments. The Group has not had any
transactions referred to in the interpretation in either 2007 or 2006.
IFRIC 10 Interim Financial Reporting and Impairment. According to
interpretation, the impairment loss recognized in interim reports on goodwill,
equity instruments and financial assets carried at cost shall not be revised at
a later reporting date.
It is the Group's estimate that the other than above new and revised standards
and interpretations do not have a material impact on the Group yearend financial
statements. The revisions have mostly increased the number of Notes to the
financial statements.
ACQUISITIONS IN 2007
Camako Data AB
In October 2007 Proha acquired full ownership of the Swedish project management
IT consultancy company Camako Data AB (Camako). Camako is consolidated in
Proha's group financial statements beginning November 1, 2007.
The acquisition cost of Camako is estimated at EUR 1.1 million on December 31,
2007. The acquisition cost of Camako is composed of a fixed portion of
approximately EUR 0.7 million and of a potential additional purchase price that
is based on certain performance objectives. If all performance objectives are
met in full, the additional purchase price will total approximately EUR 0.4
million. The fixed portion approximately EUR 0.7 million was paid in two
installments with approximately EUR 0.4 million paid at closing and
approximately EUR 0.3 million in January 2008. The second installment EUR 0.3
million of the fixed purchase price for Camako Data AB was paid partly in new
Proha and partly in cash. A total of 500,000 new Proha shares were issued for
subscription by the seller. According to the terms of the purchase agreement the
subscription price of the shares is the weighed average price of Proha shares in
Helsinki Stock Exchange between January 22 - 28, 2008, i.e. EUR 0.26 per share,
totaling at EUR 130,000.00. The total amount paid for the shares will be
recorded in the fund for invested non-restricted equity. The remainder of the
second installment, EUR 145,000 is paid in cash. Two thirds (2/3) of the new
shares include a sales restriction, which will expire on October 26, 2008 for
the first third and on October 26, 2009 for the second third.
According to the estimates on December 31, 2007, the possible additional
purchase price would be approximately EUR 0.4 million and will be paid at latest
in 2009 either in cash or in Proha Plc shares.
Of the cost of acquisition EUR 0.3 million was allocated to customer agreements
and customer relations. Consequently approximately EUR 0.1 million was
recognized as deferred tax liability. The fair value of the acquired net assets
was approximately EUR 0.2 million. The goodwill of approximately EUR 0.9 million
was recognized of the acquisition
In 2007 Camako's share of the Group result was EUR 14 thousand. In 2007 Camako's
share of the Group net sales would have been EUR 1.2 million and share of Group
result EUR 40 thousand if Camako had been consolidated in the Group financial
statements beginning January 1, 2007.
The following assets and liabilities were recognized of the acquiree:
--------------------------------------------------------------------------------
| | Fair values upon | Carrying amount |
| | business | before business |
| | combination | combination |
--------------------------------------------------------------------------------
| Acquisition date | 29.10.2007 | 29.10.2007 |
--------------------------------------------------------------------------------
| (EUR 1000) | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| | Intangible assets | 369 | 95 |
--------------------------------------------------------------------------------
| | Tangible Assets | 44 | 44 |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| | Trade receivables and | 220 | 220 |
| | other receivables | | |
--------------------------------------------------------------------------------
| | Cash and bank | 19 | 19 |
--------------------------------------------------------------------------------
| Assets total | 652 | 379 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| | Deferred tax liability | 76 | 0 |
--------------------------------------------------------------------------------
| | Non-current liabilities, | 76 | 76 |
| | interest-bearing | | |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| | Trade Payables and Other | 252 | 252 |
| | Liabilities | | |
--------------------------------------------------------------------------------
| Liabilities total | 404 | 328 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Net assets | 247 | 51 |
--------------------------------------------------------------------------------
| Goodwill on acquisition | 863 | |
--------------------------------------------------------------------------------
| Acquisition cost, total | 1 110 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Amount of acquisition cost paid in | 460 | |
| cash and cash equivalents | | |
--------------------------------------------------------------------------------
| Amount of non-current, | 375 | |
| non-interest bearing liabilities | | |
--------------------------------------------------------------------------------
| Amount of acquisition cost in | 275 | |
| accrued liabilities | | |
--------------------------------------------------------------------------------
| Acquisition cost, total | 1 110 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Amount of acquisition cost paid in | 460 | |
| cash and cash equivalents | | |
--------------------------------------------------------------------------------
| - cash and cash equivalents on | -19 | |
| acquisition date | | |
--------------------------------------------------------------------------------
| Impact on cash flow from investing | 441 | |
| activities, Jan.1, - Dec. 31, 2007 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The figures of the table are based on exchange rate of | |
| the acquisition date. | |
--------------------------------------------------------------------------------
Project Resource Solutions Inc
Proha's Canadian subsidiary Fabcon Canada Limited acquired full ownership of
Project Resource Solutions Inc (PRS)in November 2007. PRS is consolidated in
Proha's group financial statements beginning November 20, 2007.
In November 2007, the fixed part of the purchase price CAD 1.2 million (approx.
EUR 0.9 million)was paid in cash. In addition, the agreement contains an earn
out model that will pay the Sellers 30% of PRS gross profits over the 36 months.
The acquisition cost of PRS is estimated at EUR 1.1 million on December 31,
2007. The acquisition cost of PRS is composed of a fixed portion of CAD 1.2
million (approximately EUR 0.8 million) and immediate acquisition costs of EUR
30 thousand. On the date of acquisition EUR 0.2 were recognized as adjustment to
the acquisition cost.
Of the cost of acquisition EUR 0.2 million was allocated to customer agreements
and customer relations. Consequently approximately EUR 0.1 million was
recognized as deferred tax liability. The fair value of the acquired net assets
was approximately EUR 0.0 million. The goodwill of approximately EUR 1.0 million
was recognized of the acquisition.
In 2007 PRS's share of the Group result was EUR 30 thousand. In 2007 PRS's share
of the Group net sales would have been EUR 5.2 million and share of Group result
EUR 0.1 million if PRS had been consolidated in the Group financial statements
beginning January 1, 2007.
The following assets and liabilities were recognized of the acquiree:
--------------------------------------------------------------------------------
| | Fair values upon | Carrying amount |
| | business | before business |
| | combination | combination |
--------------------------------------------------------------------------------
| Acquisition date | 20.11.2007 | 20.11.2007 |
--------------------------------------------------------------------------------
| (EUR 1000) | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| | Intangible assets | 202 | 0 |
--------------------------------------------------------------------------------
| Assets total | 202 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deferred tax liability | 75 | 0 |
--------------------------------------------------------------------------------
| Liabilities total | 75 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets | | 127 | |
--------------------------------------------------------------------------------
| Goodwill on acquisition | 969 | |
--------------------------------------------------------------------------------
| Acquisition cost, total | 1096 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Amount of acquisition cost paid in | 861 | |
| cash and cash equivalents | | |
--------------------------------------------------------------------------------
| Amount of non-current, non-interest | 18 | |
| bearing liabilities | | |
--------------------------------------------------------------------------------
| Amount of trade and other payables | 217 | |
--------------------------------------------------------------------------------
| Acquisition cost, total | 1096 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Amount of acquisition cost paid in | 861 | |
| cash and cash equivalents | | |
--------------------------------------------------------------------------------
| - cash and cash equivalents on | 0 | |
| acquisition date | | |
--------------------------------------------------------------------------------
| Impact on cash flow from investing | 861 | |
| activities, Jan.1, - Dec. 31, 2007 | | |
--------------------------------------------------------------------------------
The figures of the table are based on exchange rate of the acquisition date.
DISCONTINUED OPERATIONS
Due to the divestment on June 30, 2006, the year 2006 comparative figures
present continuing and discontinued operations separately. The income statement
items of the discontinued operations were consolidated in the Group until the
closing date of June 30, 2006. Thus the Group figures for the period July 1, -
December 31, 2006 included continuing operations only.
SEGMENT REPORTING
In 2006 Proha published its new strategy, according to which two divisions
(Dovre Consulting and Services Division and Safran Systems Division) were
established in the fourth quarter of 2006. The reporting structure for the Group
has been altered to follow the new divisional structure so that Dovre Consulting
and Services, Safran Systems, other operations as well as discontinued
operations each form a separate reporting business segment. Other operations
consist mainly of Proha Group administration. The figures for 2007 and for the
review period October 1, - December 31, 2007 together with their comparative
data are presented according to the new divisional structure.
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| | 31.12. | 31.12. |
--------------------------------------------------------------------------------
| (EUR thousand) | 2007 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COLLARETAL FOR OWN COMMITENTS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by corporate mortgages | | |
--------------------------------------------------------------------------------
| Loans from financing | 3 759 | 3 028 |
| institutions | | |
--------------------------------------------------------------------------------
| Book value of shares of | 7 389 | 5 672 |
| Dovre International AS and | | |
| Dovre Fabcon AS and current | | |
| assets of Dovre Fabcon AS | | |
| given as security | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by assets | | |
--------------------------------------------------------------------------------
| Loans and checking | 251 | 0 |
| account credit lines | | |
--------------------------------------------------------------------------------
| Book value of trade | 674 | 1 106 |
| Receivables and fixed assets | | |
| given as security | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Debts secured by shares | | |
--------------------------------------------------------------------------------
| Loans and checking | 0 | 24 |
| account credit lines | | |
--------------------------------------------------------------------------------
| Book value of pledged shares | 511 | 511 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Future minimum lease payments under | | |
| non-cancellable operating leases | | |
--------------------------------------------------------------------------------
| Not later than one year | 338 | 328 |
--------------------------------------------------------------------------------
| Later than one year and not | 1 008 | 1 204 |
| later than five years | | |
--------------------------------------------------------------------------------
| Total | 1 346 | 1 533 |
--------------------------------------------------------------------------------
Disputes and Court Proceedings
The former CEO of the Company's Norwegian subsidiary Safran Software Solutions
AS, Steinar Dalva has disputed the termination of his employment. The amount of
the claim is not defined. In the Company's opinion Steinar Dalva's employment
has been terminated correctly and consequently the claim is unfounded.
CHANGES IN TANGIBLE ASSETS
--------------------------------------------------------------------------------
| | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| Opening balance | 216 | 629 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 43 | 21 |
--------------------------------------------------------------------------------
| Additions | 204 | 130 |
--------------------------------------------------------------------------------
| Sale of assets in subsidiaries | | -413 |
--------------------------------------------------------------------------------
| Disposals | | -29 |
--------------------------------------------------------------------------------
| Depreciation and impairment | -103 | -117 |
--------------------------------------------------------------------------------
| Translation differences | -3 | -4 |
--------------------------------------------------------------------------------
| Closing balance | 356 | 216 |
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------
| Investments in associates, changes: | | |
--------------------------------------------------------------------------------
| | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| Opening balance | 982 | 966 |
--------------------------------------------------------------------------------
| Acquisitions of associates | 96 | 23 |
--------------------------------------------------------------------------------
| Disposals of associates | 0 | -5 |
--------------------------------------------------------------------------------
| Share of result | -78 | -2 |
--------------------------------------------------------------------------------
| Translation difference | 0 | 0 |
--------------------------------------------------------------------------------
| Closing balance | 1000 | 982 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transactions with associates: | | |
--------------------------------------------------------------------------------
| | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
| Sales to associates | 6 | 0 |
--------------------------------------------------------------------------------
| Dividend income from associates | 0 | 0 |
--------------------------------------------------------------------------------
| Interest income from associates | 15 | 0 |
--------------------------------------------------------------------------------
| Purchases from associates | 45 | 53 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Open balances with associates: | | |
--------------------------------------------------------------------------------
| | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| Loan receivables | 278 | 0 |
--------------------------------------------------------------------------------
| Trade payables | 7 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other transactions with other | | |
--------------------------------------------------------------------------------
| related party companies: | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | 74 | 40 |
--------------------------------------------------------------------------------
| Purchases | 9 | 73 |
--------------------------------------------------------------------------------
| Interest expense on convertible loan *) | 84 | 84 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Open balances with other related party companies: | |
--------------------------------------------------------------------------------
| | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| Loan receivables | 12 | 0 |
--------------------------------------------------------------------------------
| Trade receivables | 1 | 1 |
--------------------------------------------------------------------------------
| Convertible loan*) | 0 | 1405 |
--------------------------------------------------------------------------------
| Trade payables | 1 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) The convertible loan subscribed for by | | |
| the investment company of the Group CEO | | |
| that matured on December 30, 2007. | | |
--------------------------------------------------------------------------------
The book value of the convertible loan subscribed for by the investment company
of the company CEO was EUR 1 405 thousand on September 30, 2007, on September
30, 2006 and on December 31, 2006. The convertible loan matured in full on
December 30, 2007.
INCOME STATEMENT QUARTERLY
CONTINUING OPERATIONS
(EUR thousand)
--------------------------------------------------------------------------------
| | 1-3 | 1-3 | 4-6 | 4-6 | 7-9 | 7-9 | 10-12 | 10-12 |
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| NET | 11 041 | 7 464 | 11 821 | 10 | 12 601 | 11 058 | 15 540 | 12 183 |
| SALE | | | | 316 | | | | |
| S | | | | | | | | |
--------------------------------------------------------------------------------
| Othe | 24 | 143 | 8 | 34 | 7 | 46 | 40 | 169 |
| r | | | | | | | | |
| oper | | | | | | | | |
| -ati | | | | | | | | |
| ng | | | | | | | | |
| in-c | | | | | | | | |
| ome | | | | | | | | |
--------------------------------------------------------------------------------
| Gain | 0 | 0 | 0 | -472 | 0 | 0 | 0 | 0 |
| on | | | | | | | | |
| dis- | | | | | | | | |
| posa | | | | | | | | |
| l of | | | | | | | | |
| dis- | | | | | | | | |
| con- | | | | | | | | |
| tin- | | | | | | | | |
| ued | | | | | | | | |
| oper | | | | | | | | |
| -ati | | | | | | | | |
| o-ns | | | | | | | | |
--------------------------------------------------------------------------------
| Mate | -28 | -3 | -12 | -123 | -42 | 76 | -6 | -35 |
| rial | | | | | | | | |
| s | | | | | | | | |
| and | | | | | | | | |
| ser- | | | | | | | | |
| vice | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Em-p | -10 | -6 | -11 | -9 | -11 | -10 | -14 007 | -11 204 |
| loy- | 077 | 699 | 043 | 825 | 730 | 159 | | |
| ee | | | | | | | | |
| bene | | | | | | | | |
| -fit | | | | | | | | |
| s | | | | | | | | |
| ex-p | | | | | | | | |
| ense | | | | | | | | |
--------------------------------------------------------------------------------
| Depr | -89 | -86 | -99 | -92 | -105 | -101 | -127 | -94 |
| e-ci | | | | | | | | |
| a-ti | | | | | | | | |
| on | | | | | | | | |
| and | | | | | | | | |
| amor | | | | | | | | |
| -tis | | | | | | | | |
| a-ti | | | | | | | | |
| on | | | | | | | | |
--------------------------------------------------------------------------------
| Othe | -791 | -748 | -1 085 | -753 | -858 | -621 | -1 139 | -797 |
| r | | | | | | | | |
| oper | | | | | | | | |
| atin | | | | | | | | |
| g | | | | | | | | |
| expe | | | | | | | | |
| nses | | | | | | | | |
--------------------------------------------------------------------------------
| OPER | 80 | 70 | -410 | -915 | -127 | 299 | 301 | 222 |
| ATIN | | | | | | | | |
| G | | | | | | | | |
| RES- | | | | | | | | |
| ULT | | | | | | | | |
--------------------------------------------------------------------------------
| % | 0,7 % | 0,9 % | -3,5 % | -8,9 | -1,0 % | 2,7 % | 1,9 % | 1,8 % |
| | | | | % | | | | |
--------------------------------------------------------------------------------
| Fin- | 44 | 7 | 200 | 7 | 106 | 56 | 219 | 151 |
| anc- | | | | | | | | |
| ing | | | | | | | | |
| in-c | | | | | | | | |
| ome | | | | | | | | |
--------------------------------------------------------------------------------
| Fin- | -91 | -63 | -159 | -62 | -172 | -69 | -512 | -345 |
| anc- | | | | | | | | |
| ing | | | | | | | | |
| ex-p | | | | | | | | |
| en-s | | | | | | | | |
| es | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | 5 | | -57 | | -40 | | 7 | -2 |
| e of | | | | | | | | |
| res- | | | | | | | | |
| ult | | | | | | | | |
| in | | | | | | | | |
| asso | | | | | | | | |
| ciat | | | | | | | | |
| es | | | | | | | | |
--------------------------------------------------------------------------------
| RES- | 37 | 15 | -426 | -970 | -233 | 286 | 15 | 26 |
| ULT | | | | | | | | |
| BE-F | | | | | | | | |
| ORE | | | | | | | | |
| TAX | | | | | | | | |
--------------------------------------------------------------------------------
| % | 0,3 % | 0,2 % | -3,6 % | -9,4 | -1,8 % | 2,6 % | 0,1 % | 0,2 % |
| | | | | % | | | | |
--------------------------------------------------------------------------------
| Tax | -121 | -156 | -58 | -103 | -58 | -173 | -329 | -23 |
| on | | | | | | | | |
| in-c | | | | | | | | |
| ome | | | | | | | | |
| from | | | | | | | | |
| oper | | | | | | | | |
| -ati | | | | | | | | |
| o-ns | | | | | | | | |
--------------------------------------------------------------------------------
| RE-S | -85 | -141 | -484 | -1 | -291 | 113 | -314 | 2 |
| ULT | | | | 073 | | | | |
| FOR | | | | | | | | |
| THE | | | | | | | | |
| PER- | | | | | | | | |
| IOD | | | | | | | | |
--------------------------------------------------------------------------------
| % | -0,8 % | -1,9 | -4,1 % | -10,4 | -2,3 % | 1,0 % | -2,0 % | 0,0 % |
| | | % | | % | | | | |
--------------------------------------------------------------------------------
DISCONTINUED OPERATIONS
(EUR thousand)
--------------------------------------------------------------------------------
| | 1-3 | 1-3 | 4-6 | 4-6 | 7-9 | 7-9 | 10-12 | 10-12 |
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| NET | | 8 837 | | 8 357 | | | | |
| SALE | | | | | | | | |
| S | | | | | | | | |
--------------------------------------------------------------------------------
| Othe | | 37 | | 79 | | | | |
| r | | | | | | | | |
| oper | | | | | | | | |
| -ati | | | | | | | | |
| ng | | | | | | | | |
| in-c | | | | | | | | |
| ome | | | | | | | | |
--------------------------------------------------------------------------------
| Gain | | 0 | | 15 | | | | |
| on | | | | 006 | | | | |
| dis- | | | | | | | | |
| posa | | | | | | | | |
| l of | | | | | | | | |
| dis- | | | | | | | | |
| con- | | | | | | | | |
| tin- | | | | | | | | |
| ued | | | | | | | | |
| oper | | | | | | | | |
| -ati | | | | | | | | |
| o-ns | | | | | | | | |
--------------------------------------------------------------------------------
| Mate | | -961 | | -784 | | | | |
| rial | | | | | | | | |
| s | | | | | | | | |
| and | | | | | | | | |
| ser- | | | | | | | | |
| vice | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Em-p | | -6 | | -5 | | | | |
| loy- | | 330 | | 880 | | | | |
| ee | | | | | | | | |
| bene | | | | | | | | |
| -fit | | | | | | | | |
| s | | | | | | | | |
| ex-p | | | | | | | | |
| ense | | | | | | | | |
--------------------------------------------------------------------------------
| Depr | | 0 | | 0 | | | | |
| e-ci | | | | | | | | |
| a-ti | | | | | | | | |
| on | | | | | | | | |
| and | | | | | | | | |
| amor | | | | | | | | |
| -tis | | | | | | | | |
| a-ti | | | | | | | | |
| on | | | | | | | | |
--------------------------------------------------------------------------------
| Othe | | -3 | | -3 | | | | |
| r | | 263 | | 139 | | | | |
| oper | | | | | | | | |
| a-ti | | | | | | | | |
| ng | | | | | | | | |
| expe | | | | | | | | |
| n-se | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| OPER | | -1 | | 13 | | | | |
| A-TI | | 679 | | 640 | | | | |
| NG | | | | | | | | |
| RES- | | | | | | | | |
| ULT | | | | | | | | |
--------------------------------------------------------------------------------
| % | | -19,0 | | 163,2 | | | | |
| | | % | | % | | | | |
--------------------------------------------------------------------------------
| Fin- | | 295 | | 709 | | | | |
| anc- | | | | | | | | |
| ing | | | | | | | | |
| in-c | | | | | | | | |
| ome | | | | | | | | |
--------------------------------------------------------------------------------
| Fina | | -309 | | -60 | | | | |
| n-ci | | | | | | | | |
| ng | | | | | | | | |
| expe | | | | | | | | |
| n-se | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| RES- | | -1 | | 14 | | | | |
| ULT | | 694 | | 289 | | | | |
| BE-F | | | | | | | | |
| ORE | | | | | | | | |
| TAX | | | | | | | | |
--------------------------------------------------------------------------------
| % | | -19,2 | | 171,0 | | | | |
| | | % | | % | | | | |
--------------------------------------------------------------------------------
| Tax | | -252 | | -237 | | | | |
| on | | | | | | | | |
| in-c | | | | | | | | |
| ome | | | | | | | | |
| from | | | | | | | | |
| oper | | | | | | | | |
| -ati | | | | | | | | |
| o-ns | | | | | | | | |
--------------------------------------------------------------------------------
| RE-S | | -1 | | 14 | | | | |
| ULT | | 946 | | 052 | | | | |
| FOR | | | | | | | | |
| THE | | | | | | | | |
| PER- | | | | | | | | |
| IOD | | | | | | | | |
--------------------------------------------------------------------------------
| % | | -22,0 | | 168,1 | | | | |
| | | % | | % | | | | |
--------------------------------------------------------------------------------
GROUP TOTAL
(EUR thousand)
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| | 1-3 | 1-3 | 4-6 | 4-6 | 7-9 | 7-9 | 10-12 | 10-12 |
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| | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
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| NET | 11 041 | 16 301 | 11 821 | 18 673 | 12 601 | 11 058 | 15 540 | 12 183 |
| SA- | | | | | | | | |
| LES | | | | | | | | |
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| Oth | 24 | 180 | 8 | 113 | 7 | 46 | 40 | 169 |
| er | | | | | | | | |
| op- | | | | | | | | |
| er- | | | | | | | | |
| ati | | | | | | | | |
| ng | | | | | | | | |
| in- | | | | | | | | |
| co- | | | | | | | | |
| me | | | | | | | | |
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| Ga- | 0 | 0 | 0 | 14 534 | 0 | 0 | 0 | 0 |
| in | | | | | | | | |
| on | | | | | | | | |
| dis | | | | | | | | |
| pos | | | | | | | | |
| al | | | | | | | | |
| of | | | | | | | | |
| dis | | | | | | | | |
| con | | | | | | | | |
| tin | | | | | | | | |
| ued | | | | | | | | |
| op- | | | | | | | | |
| er- | | | | | | | | |
| at- | | | | | | | | |
| io- | | | | | | | | |
| ns | | | | | | | | |
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| Mat | -28 | -964 | -12 | -907 | -42 | 76 | -6 | -35 |
| eri | | | | | | | | |
| als | | | | | | | | |
| and | | | | | | | | |
| ser | | | | | | | | |
| vic | | | | | | | | |
| es | | | | | | | | |
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| Emp | -10 | -13 | -11 | -15 | -11 | -10 | -14 | -11 204 |
| loy | 077 | 029 | 043 | 705 | 730 | 159 | 007 | |
| ee | | | | | | | | |
| ben | | | | | | | | |
| efi | | | | | | | | |
| ts | | | | | | | | |
| ex- | | | | | | | | |
| pen | | | | | | | | |
| se | | | | | | | | |
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| Dep | -89 | -86 | -99 | -92 | -105 | -101 | -127 | -94 |
| re- | | | | | | | | |
| cia | | | | | | | | |
| tio | | | | | | | | |
| n | | | | | | | | |
| and | | | | | | | | |
| amo | | | | | | | | |
| rti | | | | | | | | |
| sa- | | | | | | | | |
| tio | | | | | | | | |
| n | | | | | | | | |
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| Oth | -791 | -4 011 | -1 085 | -3 892 | -858 | -621 | -1 139 | -797 |
| er | | | | | | | | |
| ope | | | | | | | | |
| ra- | | | | | | | | |
| tin | | | | | | | | |
| g | | | | | | | | |
| exp | | | | | | | | |
| en- | | | | | | | | |
| ses | | | | | | | | |
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| OP- | 80 | -1 610 | -410 | 12 725 | -127 | 299 | 301 | 222 |
| ERA | | | | | | | | |
| TI- | | | | | | | | |
| NG | | | | | | | | |
| RES | | | | | | | | |
| ULT | | | | | | | | |
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| % | 0,7 % | -9,9 % | -3,5 % | 68,1 % | -1,0 % | 2,7 % | 1,9 % | 1,8 % |
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| Fin | 44 | 302 | 200 | 716 | 106 | 56 | 219 | 151 |
| anc | | | | | | | | |
| ing | | | | | | | | |
| in- | | | | | | | | |
| com | | | | | | | | |
| e | | | | | | | | |
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| Fin | -91 | -372 | -159 | -122 | -172 | -69 | -512 | -345 |
| anc | | | | | | | | |
| ing | | | | | | | | |
| exp | | | | | | | | |
| en- | | | | | | | | |
| ses | | | | | | | | |
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| Sha | 5 | | -57 | | -40 | | 7 | -2 |
| re | | | | | | | | |
| of | | | | | | | | |
| res | | | | | | | | |
| ult | | | | | | | | |
| in | | | | | | | | |
| ass | | | | | | | | |
| oci | | | | | | | | |
| ate | | | | | | | | |
| s | | | | | | | | |
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| RES | 37 | -1 679 | -426 | 13 319 | -233 | 286 | 15 | 26 |
| ULT | | | | | | | | |
| BEF | | | | | | | | |
| ORE | | | | | | | | |
| TAX | | | | | | | | |
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| % | 0,3 % | -10,3 | -3,6 % | 71,3 % | -1,8 % | 2,6 % | 0,1 % | 0,2 % |
| | | % | | | | | | |
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| Tax | -121 | -408 | -58 | -340 | -58 | -173 | -329 | -23 |
| on | | | | | | | | |
| inc | | | | | | | | |
| ome | | | | | | | | |
| fr- | | | | | | | | |
| om | | | | | | | | |
| op- | | | | | | | | |
| er- | | | | | | | | |
| ati | | | | | | | | |
| ons | | | | | | | | |
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| RES | -85 | -2 087 | -484 | 12 979 | -291 | 113 | -314 | 2 |
| ULT | | | | | | | | |
| FOR | | | | | | | | |
| THE | | | | | | | | |
| PER | | | | | | | | |
| IOD | | | | | | | | |
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| % | -0,8 % | -12,8% | -4,1 % | 69,5 % | -2,3 % | 1,0 % | -2,2 % | 0,0 % |
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GROUP KEY RATIOS
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| | 10-12 | 10-12 | 1-12 | 1-12 |
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| (EUR million) | 2007 | 2006 | 2007 | 2006 |
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| Net sales, Group | 15,5 | 12,2 | 51,0 | 58,2 |
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| Net sales, | 15,5 | 12,2 | 51,0 | 41,0 |
| Continuing | | | | |
| operations | | | | |
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| Net sales, | 0,0 | 0,0 | 0,0 | 17,2 |
| discontinued | | | | |
| operations | | | | |
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| Operating result, | 0,3 | 0,2 | -0,2 | 11,6 |
| Group | | | | |
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| % of Net sales | 1,9 % | 1,8 % | -0,3 % | 20,0 % |
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| Operating result, | 0,3 | 0,2 | -0,2 | -0,3 |
| Continuing | | | | |
| operations | | | | |
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| Operating result, | 0,0 | 0,0 | 0,0 | 12,0 |
| discontinued | | | | |
| operations | | | | |
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| Result before | 0,0 | 0,0 | -0,6 | 12,0 |
| taxes | | | | |
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| % of Net sales | 0,1 % | 0,2 % | -1,2 % | 20,5 % |
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| Result for the | -0,3 | 0,0 | -1,2 | 11,0 |
| period | | | | |
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| % of net sales | -2,0 % | 0,0 % | -2,3 % | 18,8 % |
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| Return on equity, | -8,4 % | 0,1 % | -7,9 % | 111,2 % |
| % | | | | |
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| Return on | 10,5 % | 6,7 % | 1,6 % | 72,8 % |
| investment, % | | | | |
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| Interest bearing | 4,3 | 6,2 | 4,3 | 6,2 |
| liabilities | | | | |
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| Cash and cash | 5,3 | 12,0 | 5,3 | 12,0 |
| equivalents | | | | |
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| Gearing, % | -7,3 % | -38,2 % | -7,3 % | -38,2 % |
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| Equity-ratio, % | 45,5 % | 47,3 % | 45,5 % | 47,3 % |
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| Balance sheet | 32,0 | 32,7 | 32,0 | 32,7 |
| total | | | | |
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| Gross Investments | 2,6 | 0,1 | 3,1 | 2,2 |
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| % of Net sales | 16,9 % | 0,7 % | 6,1 % | 3,8 % |
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| R & D expenses | 0,3 | 0,4 | 1,7 | 4,0 |
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| % of Net sales | 2,2 % | 3,3 % | 3,4 % | 6,8 % |
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| Personnel average | 355 | 419 | 333 | 469 |
| for the period | | | | |
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| Personnel at the | 381 | 325 | 381 | 325 |
| end of the period | | | | |
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| Undiluted | -0,005 | 0,000 | -0,019 | 0,179 |
| earnings per | | | | |
| share, EUR | | | | |
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| Diluted earnings | -0,005 | 0,000 | -0,019 | 0,179 |
| per share, EUR | | | | |
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| Equity per share, | 0,23 | 0,25 | 0,23 | 0,25 |
| EUR | | | | |
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| Average share | | | | |
| number | | | | |
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| Undiluted | 61 218 670 | 61 218 670 | 61 218 670 | 61 218 670 |
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| Diluted | 61 218 670 | 61 218 670 | 61 219 400 | 61 236 944 |
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| Number of shares | 61 218 670 | 61 218 670 | 61 218 670 | 61 218 670 |
| at the end of the | | | | |
| period | | | | |
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DEFINITIONS OF KEY FIGURES
Return on shareholders' equity (ROE), % =
100 x Shareholders' equity
Shareholders' equity (average during period)
Return on investment (ROI) =
100 x Result before taxes + Interest and other financial expenses
Balance sheet total - Non-interest bearing liabilities (average
during period)
Gearing =
100 x Interest bearing liabilities - Cash and bank balances
Shareholders' equity
Equity ratio, % =
100 x Shareholders' equity
Balance sheet total - Advances received
Equity per share (EPS), EUR =
Shareholders' equity
Adjusted average number of outstanding shares
Quick ratio, % =
100 x Current assets
Current liabilities
LARGEST SHAREHOLDERS ON DECEMBER 31, 2007
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| Name | Number of shares | Percentage of all shares |
| | | and voting rights |
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| Dovregruppen A.S.* | 6 560 646 | 10,7 |
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| Etra-Invest Oy | 6 211 500 | 10,1 |
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| Pekka Mäkelä | 2 882 375 | 4,7 |
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| Pekka Pere** | 2 381 105 | 3,9 |
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| Etola Erkki | 2 000 000 | 3,3 |
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| Eficor Oyj** | 1 860 000 | 3,0 |
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| Thominvest Oy | 1 043 500 | 1,7 |
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| Ilari Koskelo | 1 000 000 | 1,6 |
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| Lars Nyqvist | 849 975 | 1,3 |
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| Navdata Oy | 761 123 | 1,2 |
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| Eero Ruokostenpohja | 703 950 | 1,1 |
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| Rauni Siik | 650 000 | 1,1 |
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| Petri Hinkka | 550 000 | 0,9 |
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| Reino Jokinen | 530 000 | 0,9 |
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| Hinkka Invest Oy | 509 790 | 0,8 |
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| Astea AS | 471 257 | 0,8 |
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| Risto Saikko | 427 490 | 0,7 |
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| Vesa Olsson | 400 000 | 0,6 |
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| Propeli Oy | 345 000 | 0,6 |
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| Timo Saros | 340 000 | 0,6 |
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*) Birger Flaa holds control over Dovregruppen A.S.
**) Pekka Pere holds control over Eficor Oy
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