2009-05-05 08:30:00 CEST
2009-05-05 08:30:06 CEST
REGULATED INFORMATION
Affecto Oyj - Interim report (Q1 and Q3)
AFFECTO PLC'S INTERIM REPORT 1-3/2009
AFFECTO PLC INTERIM REPORT 5 MAY 2009 at 9.30
AFFECTO PLC'S INTERIM REPORT 1-3/2009
GROUP KEY FIGURES
MEUR 1-3/09 1-3/08 2008
Net sales 27.5 33.6 131.6
Operational segment -0.2 3.6 14.5
result *)
% of net sales -0.7 10.8 11.0
Operating profit -6.9 2.9 11.8
% of net sales -25.2 8.7 9.0
Result before taxes -8.6 2.0 10.5
Result for the period -8.0 1.5 8.5
Equity ratio, % 41.3 42.1 43.0
Net gearing, % 42.6 60.1 34.7
Earnings per share, eur -0.37 0.07 0.40
Earnings per share -0.37 0.07 0.40
(diluted), eur
Equity per share, eur 2.45 2.82 2.73
*) Includes 1.7 MEUR provision for Baltic restructuring.
CEO Pekka Eloholma comments:"The first quarter 2009 was twofold for Affecto. The business of the Nordic
units developed rather steadily, although the weakness in the general economy
has made its impact to some extent. On the other hand, the Baltic economies
continued their rapid decline, which has led into sizeable cost saving actions
by the public sector in the Baltic countries.""Net sales decreased by 18% to 27.5 MEUR (33.6 MEUR). The main reasons were
the Contempus divestment in 2008, strong devaluation of the Norwegian and
Swedish currencies (NOK, SEK) and the weak development in Baltic. Organic
decrease in net sales was approx. -11% and would have been -7% with fixed
currency rates.""The first quarter operating profit was approx 1.0 MEUR without the costs
related to the streamlining actions and goodwill writedown in Baltic. However,
the reported operating profit includes a reserve for estimated Baltic
restructuring costs 1.7 MEUR and the goodwill writedown of 6.2 MEUR, which
push the operating profit to -6.9 MEUR (2.9 MEUR). Profitability was good
especially in Finland, Norway and Denmark. The quarter was characterized by
the weakening general economy, which affected especially the Baltic area, but
also the other areas.""The order backlog was approx. 42 MEUR at the end of the period, which is a
bit lower than the year-end figure of 44 MEUR.""The weakened economic environment makes reliable forecasting more difficult.
Due to the Contempus divestment and the weakened general economy, the net
sales in year 2009 will remain below the level in 2008. The profitability
(EBIT margin) of the whole year 2009 will be clearly below the profitability
in 2008."
Additional information:
CEO Pekka Eloholma, +358 205 777 737
CFO Satu Kankare, +358 205 777 202
SVP, M&A, Hannu Nyman, +358 205 777 761
This report is unaudited. The amounts in this report have been rounded from
exact numbers.
INTERIM REPORT 1-3/2009
Affecto builds versatile IT solutions for companies and organisations to
improve their efficiency in business and to support the related decision-
making. With Affecto's Business Intelligence solutions organisations are able
to integrate strategic targets with their business management. Business
Intelligence solutions enable the further processing and utilisation of
information generated by ERP and other IT systems. The company also delivers
operational solutions, such as Enterprise Content Management (ECM), for
improving and simplifying processes at customer organisations. Affecto offers
Business Intelligence solutions in its operating areas in the Nordic and
Baltic countries. In Operational solutions, the company has a presence in
Finland and in the Baltic region.
Affecto is headquartered in Helsinki, Finland. The company has subsidiaries in
Finland, Sweden, Norway, Denmark, Estonia, Lithuania, Latvia and Poland.
NET SALES
Affecto's net sales in 1-3/2009 were 27.5 MEUR (1-3/2008: 33.6 MEUR). Net
sales in Finland were 11.8 MEUR (11.8 MEUR), in Norway 5.3 MEUR (7.8 MEUR), in
Sweden 4.1 MEUR (6.2 MEUR), in Denmark 3.2 MEUR (2.5 MEUR) and 3.8 MEUR (5.7
MEUR) in Baltic. Net sales decreased by 18% especially due to weak development
in Baltic, the currency rates and also the divestment of Contempus. The
organic change in sales was approx. -11%, but only -7% when assessed using
fixed currency rates. In local currencies, the BI business grew 26% in Denmark
and 13% in Norway, but decreased 22% in Sweden.
The quarter was impacted by the weakening general economy, which affected
especially Baltic area. In addition, the strong devaluation of the Norwegian
and Swedish currencies (NOK, SEK) at the end of 2008 and regarding Sweden also
in 2009, clearly lowered the figures in euros compared to the same period last
year.
Economic situation has weakened rapidly in the Baltic countries, which has
negatively affected Affecto's business. The strong weakening of the Baltic
economies combined with public sector cost saving programs has decreased the
demand for IT services.
Sales by reportable segments
Net sales, MEUR 1-3/09 1-3/08 2008
Finland 11.8 11.8 46.4
Norway 5.3 7.8 29.6
Sweden 4.1 6.2 22.6
Denmark 3.2 2.5 10.6
Baltic 3.8 5.7 24.3
Group management 0.6 0.3 1.1
Eliminations -1.2 -0.7 -2.9
Group total 27.5 33.6 131.6
Net sales of BI business in 1-3/2009 were 17.8 MEUR (19.8 MEUR), Operational
Solutions 8.0 MEUR (11.4 MEUR) and Geographic Information Services 2.3 MEUR
(3.0 MEUR). The BI business has experienced organic growth (measured in local
currency) in all Nordic markets except Sweden.
Operational solutions business grew in Finland especially regarding ECM
solutions, but decreased significantly in Baltic. The Contempus divestment in
September 2008 also contributed to the decrease in net sales, as after the
divestment Affecto has Operational solutions only in Finland and Baltic.
PROFIT
Affecto's EBIT in 1-3/2009 was -6.9 MEUR (2.9 MEUR). Operational segment
result was in Finland 1.7 MEUR (2.0 MEUR), in Norway 0.8 MEUR (0.5 MEUR), in
Sweden 0.3 MEUR (0.7 MEUR), in Denmark 0.3 MEUR (0.2 MEUR) and in Baltic -2.7
MEUR (0.7 MEUR). The result in Baltic includes a provision of 1.7 MEUR for
restructuring costs.
Operating result by reportable segments
Operational segment 1-3/09 1-3/08 2008
result, MEUR
Finland 1.7 2.0 6.9
Norway 0.8 0.5 2.9
Sweden 0.3 0.7 2.9
Denmark 0.3 0.2 1.2
Baltic -2.7 0.7 3.2
Group management -0.5 -0.6 -2.5
Operational segment result -0.2 3.6 14.5
IFRS3 Amortization -0.5 -0.7 -2.7
Impairment of Goodwill -6.2 - -
Operating profit -6.9 2.9 11.8
The restructuring costs 1.7 MEUR in Baltic are included in the operational
segment result of the Baltic segment. The goodwill impairment of 6.2 MEUR is
shown separately.
According to IFRS3 requirements, 1-3/2009 EBIT includes 0.5 MEUR (0.7 MEUR) of
amortization of intangible assets related to acquisitions. A significant part
of the amortization is related to Sweden, Norway and Denmark segments. In year
2009 the IFRS3 amortization is estimated to total 2.1 MEUR and in 2010 approx.
1.9 MEUR based on currency exchange rates on the end of reporting period.
The profitability in Finland and Norway was at a good level. Profit grew in
Denmark. In Sweden the profitability weakened. The Baltic segment was clearly
loss-making.
R&D costs totaled 0.1 MEUR (0.6 MEUR), i.e. 0.3% of net sales (1.7%). The
expenditure has been recognized as cost in income statement.
The fluctuation in financial costs between quarters is explained to a large
extent by changes in the fair value of the interest swap taken, which changes
have no effect on actual cash flow. As the interest rates decreased in Q1, the
change had a 0.3 MEUR cost impact in Q1. In addition, due to intra-group loans
the first quarter result includes a foreign exchange loss of 0.9 MEUR, as the
Norwegian krone (NOK) strengthened from the year-end's bottom level.
Taxes for the period have been booked as taxes. Net profit for the period was
-8.0 MEUR, while it was 1.5 MEUR last year.
Order backlog totaled 41.6 MEUR at the end of period. The order backlog
decreased compared both to the previous quarter (44.5 MEUR) and to the same
quarter in previous year (51.2 MEUR including backlog of Contempus). Affecto
has a well diversified customer base. The ten largest customers generated
approx. 20% of group revenue in 2008 and the largest customer corresponded to
4% of net sales.
FINANCE AND INVESTMENTS
At the end of the reporting period, Affecto's balance sheet totaled 136.9 MEUR
(12/2008: 146.6 MEUR). Equity ratio was 41.3% (12/2008: 43.0%) and net gearing
was 42.6% (12/2008: 34.7%). Translation differences have increased the
consolidated equity by 2.0 MEUR during 1-3/2009 mainly due to the
strengthening of the Norwegian krone (NOK).
The financial loans were 43.9 MEUR (12/2008: 43.9 MEUR) as at 31 March 2009.
The company's cash and liquid assets were 21.5 MEUR (12/2008: 23.6 MEUR). The
interest-bearing net debt was 22.4 MEUR (12/2008: 20.4 MEUR).
Cash flow from operating activities for the reported period was -2.0 MEUR (2.0
MEUR) and cash flow from investments was -0.4 MEUR (-4.4 MEUR). Investments in
non-current assets excluding acquisitions were 0.4 MEUR (0.8 MEUR) during the
period.
After the review period, based on decision by the Annual General Meeting held
on 3 April 2009, Affecto has distributed dividends of 3.0 MEUR (previous year
3.4 MEUR) from the profit of the year 2008. Dividend was paid on 21 April
2009.
EMPLOYEES
The number of employees was 1063 persons at the end of the reporting period
(1136). Approx. 380 employees were based in Finland, 120 in Sweden, 100 in
Norway, 60 in Denmark, and 400 in the Baltic countries. The average number of
employees during the period was 1057 (1129).
BUSINESS REVIEW BY AREAS
The business in Nordic countries has mainly developed rather steadily,
although the general economic outlook has continued to weaken during the
period. The Baltic area has weakened the most of the group's operating areas.
The group's business is managed through five country units. Finland, Norway,
Sweden, Denmark and Baltic are also the reportable IFRS segments.
Finland
In 1-3/2009 net sales in Finland were 11.8 MEUR (11.8 MEUR). Operational
segment result was 1.7 MEUR (2.0 MEUR). The business developed rather steadily
during the period and the demand for various services was reasonably good.
Both BI and Operational solutions business grew, but the Geographic
information services business contracted.
The growth of IT services market in Finland is forecast to be rather moderate
in 2009: only 1% by the newest estimates. The growth of Affecto's focus
segments like BI are expected to exceed the average market growth rate. The
customers' activity has so far continued to be relatively good despite rapidly
slowing economy. However, the decision making has slowed down and the price
pressure has grown. New orders were received from, among others, STUK, Nokia
and Metso.
Norway
The net sales in 1-3/2009 were 5.3 MEUR (7.8 MEUR) and operational segment
result was 0.8 MEUR (0.5 MEUR). The decrease in net sales in euros was caused
by the divestment of Contempus and the devaluation of the Norwegian krone
(NOK) at end of 2008. The BI business in Norway grew by 13% if measured in
local currency.
The business developed positively and the growth in project services
continued. The efforts to widen the service offering scope have continued,
especially regarding Microsoft and SAP technologies. The impact of the
weakening economy has some impact on sales and profit.
Sweden
In 1-3/2009 the net sales in Sweden were 4.1 MEUR (6.2 MEUR) and operational
segment result 0.3 MEUR (0.7 MEUR). The strong devaluation of the Swedish
krona (SEK) has had a major impact on euro-denominated figures.
There have been no major changes in the business during the period. The
customers' activity has remained reasonable, with the exception of continuing
weakness in the finance sector. Slower investment decisions and smaller IT
budgets have led to growing price pressure from customers. Regarding the
general environment, Sweden seems to be the weakest of Affecto's Nordic
countries.
During the period new orders were received from e.g. Boxer, Länsförsäkringar
and SKF.
Denmark
The net sales in 1-3/2009 were 3.2 MEUR (2.5 MEUR) and operational segment
result was 0.3 MEUR (0.2 MEUR).
Net sales grew clearly compared to last year and the profit also improved. The
business has developed along the general economy: the customers' decision
making is slowing down and price pressure is growing.
Baltic (Lithuania, Latvia, Estonia, Poland)
The Baltic business mostly consists of projects related to large customer-
specific systems. Projects may be larger and tender processes longer than in
Finland or the other Nordic countries. The business is mostly classified as
Operational solutions, but also includes BI solutions. Public sector entities
in the Baltic countries and insurance companies also outside Baltic area are
significant customer segments.
In 1-3/2009 the Baltic net sales were 3.8 MEUR (5.7 MEUR). Operational segment
result (including the estimated restructuring costs 1.7 MEUR) was -2.7 MEUR
(0.7 MEUR). Without the provision for restructuring costs, the result would
have been -1.0 MEUR. In addition, the group's operational profit includes a
goodwill writedown of 6.2 MEUR related to the Baltic segment.
The Baltic economies have developed extremely weakly during the economic
crisis. The IT investments from the public sector are expected to decrease due
to government cost saving programs and already decided projects have been
selectively postponed.
Affecto published in April a goal to reduce the personnel in Baltic countries
by some 130 employees. The business in Latvia and Poland will be cut
significantly, and to some extent also in Lithuania. The actions are estimated
to cause approx. 1.7 MEUR costs. The final costs will become clear during the
process. In addition, the book-value of the Baltic operations will be subject
to a write-down of approx. 6.2 MEUR. The estimated costs have been recognized
in the first quarter results. The actions are estimated to generate savings of
approx. 3.8 MEUR annually in personnel cost.
Review by business lines 1-3/2009
Business intelligence (BI) net sales decreased by 10% to 17.8 MEUR (19.8
MEUR). The weakened general economy has not yet affected the BI business very
significantly, except in Sweden. Slower investment decisions and smaller IT
budgets have led to growing price pressure from customers.
Customers see BI solutions as tools for improving their own efficiency and
controllability, which may maintain the interest to invest in BI solution also
during periods of weaker economic growth. However, the weakness in general
economy may also slow the growth in BI investments. The most recent growth
estimates for general IT services in Nordic countries in 2009 are about 1-3%.
Gartner estimated in January 2009 the BI solutions to be one of the key
investment areas and annual global BI license market average growth to exceed
7% until year 2012.
Net sales of Operational Solutions decreased by 30% to 8.0 MEUR (11.4 MEUR).
The Norwegian Contempus subsidiary was divested in September 2008, which has
contributed to the decrease. In Finland, the business grew by 15% and
especially the demand for ECM solutions was good and the utilization rate of
project resources was moderately good. The net sales in Baltic decreased
significantly, as demand decreased both for the local market services and for
insurance sector export projects.
Net sales of the Geographic Information Services business were 2.3 MEUR (3.0
MEUR). The development of the digital geographic content and outsourcing
services businesses was good. During the period a new outsourcing contract was
signed with Destia. The development of map and other publishing business was
weaker.
ANNUAL GENERAL MEETING AND GOVERNANCE (AFTER THE REVIEW PERIOD)
The Annual General Meeting of Affecto Plc, which was held on 3 April 2009,
adopted the financial statements for 1.1.-31.12.2008 and discharged the
members of the Board of Directors and the CEO from liability. Approximately 27
percent of Affecto's shares and votes were represented in the Meeting. The
Annual General Meeting decided that a dividend of EUR 0.14 per share be
distributed for the year 2008.
Aaro Cantell, Pyry Lautsuo, Heikki Lehmusto, Esko Rytkönen and Haakon Skaarer
were re-elected as members of the Board of Directors. Immediately after the
Annual General Meeting the organization meeting of the Board of Directors was
held and Aaro Cantell was re-elected Chairman of the Board. The APA firm KPMG
Oy was elected auditor of the company with Reino Tikkanen, APA, as auditor in
charge.
According to the Articles of Association, the General Meeting of Shareholders
annually elects the Board of Directors by a majority decision. The term of
office of the board members expires at the end of the next Annual General
Meeting of Shareholders following their election. The Board appoints the CEO.
The Articles of Association do not contain any special rules for changing the
Articles of Association or for issuing new shares.
THE AUTHORIZATIONS GIVEN TO THE BOARD OF DIRECTORS
The Board did not use the authorizations given by the previous Annual General
Meeting. Those authorizations ended on 3 April 2009.
The complete contents of the new authorizations given by the Annual General
Meeting held on 3 April 2009 have been published in the stock exchange release
regarding the Meetings' decisions.
The Annual General Meeting decided to authorize the Board of Directors to
decide to issue new shares and to convey the company's own shares held by the
company in one or more tranches. The share issue may be carried out as a share
issue against payment or without consideration on terms to be determined by
the Board of Directors and in relation to a share issue against payment at a
price to be determined by the Board of Directors. A maximum of 4 200 000 new
shares may be issued. A maximum of 2 100 000 own shares held by the company
may be conveyed. In addition, the authorization includes the right to decide
on a share issue without consideration to the company itself so that the
amount of own shares held by the company after the share issue is a maximum of
one-tenth (1/10) of all shares in the company. The authorization shall be in
force until the next Annual General Meeting.
The Annual General Meeting decided to authorize the Board of Directors to
decide to acquire the company's own shares with distributable funds. A maximum
of 2 100 000 shares may be acquired. The authorization shall be in force until
the next Annual General Meeting.
SHARES AND TRADING
The company has only one share series, and all shares have similar rights. As
at 31 March 2009, Affecto Plc's share capital consisted of 21 516 468 shares.
The company owns 36 738 treasury shares, which corresponds to 0.2% of all
shares.
In 1-3/2009, the highest share price was 2.67 euro, lowest price 1.82 euro,
average price 2.22 euro and closing price 2.22 euro. Trading volume was 1.6
million shares, corresponding to 30% (annualized) of the number of shares at
the end of period. The market value of shares was 47.7 MEUR at the end of the
period.
OPTIONS
During the review period, 306 132 options 2006C have been given to key
personnel.
SHAREHOLDERS
The company had a total of 1308 owners on 31 March 2009 and the foreign
ownership was 30%. The list of the largest owners can be viewed in the
company's web site. Information about ownership structure and option program
is included as a separate section in the financial statements. The ownership
of board members, CEO and their controlled corporations totaled approx. 6.0%
(5.7% shares and 0.3% options).
ASSESSMENT OF RISKS AND UNCERTAINTIES
Affecto operates in markets that are directly affected by changes in the
general economic conditions and the operating environments of its customers.
The competition in the market tightens continuously. This could have a
negative effect on the business, operating results and financial condition of
Affecto.
The general economic downturn may lead to a decrease in overall customer
demand for services, increase price pressure from customers and lengthen offer
processes at customers. Also the competitors' eagerness to complain about
public procurement decisions may increase, which may cause delays in project
starts or interrupt the project delivery work. The economic downturn may
weaken customers' liquidity, also in the public sector.
Affecto's success depends also on good customer relationships. Affecto has a
well diversified customer base. Although none of the customers is critically
large for the whole group, there are large customers in various countries who
are significant for local business in the country.
Affecto's order backlog has traditionally been only for a few months, which
decreases the reliability of longer-term forecasts. Slower investment decision
making, postponing or cancellation of customers' IT investments may have
negative impact on Affecto's profitability.
Approx a half of Affecto's business is in Sweden, Norway and Denmark, thus the
development of the currencies of these countries (SEK, NOK and DKK) may have
impact on Affecto's profitability.
Affecto's continued success is very much dependent on its management team and
personnel. The loss of the services of any member of its senior management or
other key employee could have a negative impact on Affecto's business and the
ability of the company to implement its strategy. In addition, Affecto's
success depends on its ability to hire, develop, train, motivate and retain
skilled professionals on its staff.
Acquisition of Component Software in 2007 has increased the amount of (third
party) licenses sold and their relative share of Affecto's net sales. This
will increase the fluctuation in sales between quarters and will increase the
difficulty of accurately forecasting the quarters. Affecto had license sales
of approx. 12 MEUR in 2008. The license sales have most impact on the last
month of each quarter and especially in the fourth quarter.
The damage risks of Affecto are normally related to personnel, property,
processes and data processing. The realization of these risks might lead to
injuries of personnel, property damages or interruption of business. In the
operations the target of Affecto is to prevent these risks to realize by
quality operations and anticipatory risk management actions. The realization
of such risks is mainly prevented by guidelines for occupational health, work
safety and information security as well as emergency plan. The damage risks,
which cannot be prevented by own actions, are covered with adequate
insurances.
Currently, corporate tax rates in Latvia and Lithuania are below those of
several other member states of the European Union, and therefore Latvia and
Lithuania provide a favorable environment for commercial enterprises.
Furthermore, the income tax regulation of Latvia and Lithuania allow for local
businesses to structure their operations in a cost-efficient way. For example,
certain software development activities are treated as so-called creative
activities, which is cost beneficial for the enterprises. When joining the
European Union on 1 May 2004, Latvia and Lithuania committed to the ongoing
harmonization of the laws and regulations of the member states. At present,
the European Union leaves regulation relating to taxation to the discretion of
its member states. However, there can be no assurances that the European Union
will not impose requirements on its member states to harmonize their taxation
system which, in the case of Latvia and Lithuania, could result in an increase
in corporate tax rates and restrictions on the opportunities of local business
to structure their operations to the extent currently possible. Furthermore,
there can be no assurances that Latvia and Lithuania will not independently
decide to implement tax reforms or that the interpretation of current tax laws
by courts or fiscal authorities will not be changed retroactively with similar
effects. Harmonization imposed by the European Union or domestic tax reforms
or changes in the interpretation of current tax laws by courts or fiscal
authorities in Latvia and Lithuania could have a material adverse effect on
the business, operating results and financial condition of Affecto.
In seeking future growth, the strategy of Affecto is partially based on
expansion through acquisitions of other operators in the IT services market.
The inability to find new target companies or the lower than expected
profitability of acquisitions made, could have a material adverse effect on
the business, operating results and financial condition of Affecto.
The board of directors and the audit committee is responsible for Affecto's
internal control and risk management. Company's management is responsible for
and performs practically the internal control and risk management.
EVENTS AFTER THE REVIEW PERIOD
The Board decided on 1 April 2009 on streamlining actions regarding the Baltic
unit. The effects of the actions have been explained in connection with the
Baltic unit.
The Annual General meeting of Affecto Plc was held on 3 April 2009, as
explained earlier in this report. The dividend 0.14 eur/share totaling approx.
3.0 MEUR was paid in April.
FUTURE OUTLOOK
The weakened economic environment makes reliable forecasting more difficult.
Due to the Contempus divestment and the weakened general economy, the net
sales in year 2009 will remain below the level in 2008. The profitability
(EBIT margin) of the whole year 2009 will be clearly below the profitability
in 2008.
The company does not provide exact guidance for net sales or EBIT development,
as single projects and timing of license sales may have large impact on
quarterly sales and profit.
Affecto Plc
Board of Directors
It is possible to order Affecto's stock exchange releases to be delivered
automatically by e-mail. Please visit the Investors section of the company
website: www.affecto.com
A briefing for analysts and media will be arranged at 11:00 at Restaurant
Savoy, Eteläesplanadi 14, Helsinki.
www.affecto.com
-----
Financial information:
1. Consolidated comprehensive income statement, balance sheet, cash flow
statement and statement of changes in shareholders' equity
2. Notes
3. Key figures
1. Consolidated comprehensive income statement, balance sheet, cash flow
statement and statement of changes in shareholders' equity
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
(1 000 EUR) 1-3/09 1-3/08 2008
Net sales 27 525 33 599 131 565
Other operating income 6 203 902
Changes in inventories of -9 66 -287
finished goods and work in
progress
Materials and services -4 733 -6 020 -25 317
Personnel expenses -17 642 -18 636 -69 818
Other operating expenses -4 961 -5 171 -20 962
Other depreciation and -385 -414 -1 620
amortisation
IFRS3 amortisation -516 -719 -2 653
Impairment -6 209 - -
Operating profit -6 925 2 907 11 808
Finance costs (net) -1 720 -867 -1 341
Result before income tax -8 644 2 040 10 467
Income tax 631 -530 -1 963
Result for the period -8 013 1 510 8 503
Result for the period
attributable to:
Equity holders of the Company -8 013 1 510 8 503
Minority interest 0 0 0
Earnings per share for result attributable to the
equity holders of the Company (EUR per share)
Basic -0.37 0.07 0.40
Diluted -0.37 0.07 0.40
Other items of Statement of
comprehensive income:
Result for the period -8 013 1 510 8 503
Translation difference 2 014 -543 -9 472
Total Comprehensive income for -5 999 967 -969
the period
Total Comprehensive income for
the period attributable to:
Equity holders of the Company -5 999 967 -969
Minority interest 0 0 0
CONSOLIDATED BALANCE SHEET
(1 000 EUR) 3/2009 3/2008 12/2008
Non-current assets
Property, plant and equipment 2 695 2 255 2 715
Goodwill 67 383 83 629 72 614
Other intangible assets 10 859 17 401 11 093
Deferred tax assets 2 285 2 298 2 031
Available-for-sale financial assets 54 33 54
Derivative financial instruments 6 - 20
Trade and other receivables 166 169 220
83 448 105 785 88 747
Current assets
Inventories 1 114 1 839 1 148
Trade and other receivables 28 181 34 096 32 166
Current income tax receivables 1 138 480 206
Available-for-sale financial assets 294 106 295
Restricted cash and cash equivalents 1 260 645 518
Cash and cash equivalents 21 485 10 530 23 554
53 473 47 697 57 886
Non-current assets held for sale - 679 -
Total assets 136 921 154 161 146 633
Equity attributable to equity holders
of the Company
Share capital 5 105 5 105 5 105
Share premium 25 404 25 404 25 404
Reserve of invested non-restricted 21 188 21 188 21 188
equity
Other reserves 205 140 176
Treasury shares -106 -106 -106
Translation differences -8 229 -1 314 -10 243
Retained earnings 9 088 10 108 17 101
52 655 60 526 58 625
Minority interest - - -
Total shareholders' equity 52 655 60 526 58 625
Non-current liabilities
Borrowings 40 430 43 911 40 424
Derivative financial instruments 972 190 715
Deferred tax liabilities 3 263 4 961 3 388
Trade and other payables 577 612 803
45 241 49 674 45 330
Current liabilities
Borrowings 3 500 3 000 3 500
Trade and other payables 31 690 38 856 37 556
Current income tax liabilities 1 900 2 104 1 442
Derivative financial instruments 235 - 179
Provisions 1 700 - -
39 026 43 960 42 677
Total liabilities 84 267 93 635 88 007
Total shareholders' equity and 136 921 154 161 146 633
liabilities
CONSOLIDATED CASH FLOW STATEMENT
(1 000 EUR) 1-3/2009 1-3/2008 2008
Cash flows from operating activities
Result for the period -8 013 1 510 8 503
Adjustments to profit for the period 9 697 2 431 7 077
1 684 3 941 15 581
Change in working capital -2 901 -964 4 198
Interest and other finance cost paid -557 -707 -2 812
Interest and other finance income received 84 99 651
Income taxes paid -340 -324 -2 968
Net cash generated from operating -2 031 2 045 14 651
activities
Cash flows from investing activities
Acquisition of subsidiaries, net of cash - -3 925 -3 925
Purchases of tangible and intangible assets -390 -760 -2 741
Proceeds from sale of tangible and 9 270 1 665
intangible assets
Sale of business/subsidiaries, net of cash - - 8 346
Net cash used in investing activities -380 -4 415 3 345
Cash flow from financing activities
Repayments of borrowings - - -3 000
Dividends paid to the company's - - -3 437
shareholders
Net cash generated in financing activities - - -6 437
(Decrease)/increase in cash and cash -2 411 -2 370 11 559
equivalents
Cash and cash equivalents at the beginning 23 554 12 974 12 974
of the period
Foreign exchange effect on cash 343 -73 -979
Cash and cash equivalents at the end of the 21 485 10 530 23 554
period
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(1 000 EUR) Share Share Reserve Other Trea- Trans- Ret. Total
capitalpremium of reserves sury lat. earn- equity
invested shares diff. ings *
non-
restrict
ed
equity
Shareholders' 5 105 25 404 21 188 176 -106 -10 243 17 101 58 625
equity 1
January 2009
Total 2 014 -8 013 -5 999
comprehensive
income
Share options 29 29
Shareholders' 5 105 25 404 21 188 205 -106 -8 229 9 088 52 655
equity 31 March
2009
(1 000 EUR) Share Share Reserve Other Trea- Trans- Ret. Total
capitalpremium of reserves sury lat. earn- equity
invested shares diff. ings *
non-
restrict
ed
equity
Shareholders' 5 105 25 404 21 188 108 -106 -771 12 035 62 964
equity 1
January 2008
Total -543 1 510 967
comprehensive
income
Share options 32 32
Dividents paid -3 437 -3 437
Shareholders' 5 105 25 404 21 188 140 -106 -1 314 10 108 60 526
equity 31 March
2008
* Affecto has not had a minority share in 2008 or 2009.
2. Notes
2.1. Basis of preparation
This report has been prepared in accordance with the IFRS recognition and
measurement principles. This report does not comply with all of the
requirements of IAS 34 Interim Financial Reporting. The report should be read
in conjunction with the annual financial statements for the year 2008.
The group has adopted the following new and revised standards starting from 1
January 2009: IFRS 8 Operating Segments and IAS 1 Presentation of Financial
Statements. In other respect, the same accounting policies have been applied
as in the 2008 annual consolidated financial statements. Forthcoming standards
and interpretations are presented in the accounting policies in Annual Report
2008.
2.2. Segment information
Affecto has changed its internal reporting. Since the beginning of 2009
Affecto's reporting segments are based on geographical locations and are
Finland, Norway, Sweden, Denmark, Baltic and group management. Corresponding
information for prior periods disclosed in this report has been restated.
Segment sales and result
(1 000 EUR) 1-3/09 1-3/08 2008
Total sales
Finland 11 756 11 771 46 432
Norway 5 256 7 833 29 597
Sweden 4 083 6 196 22 573
Denmark 3 175 2 517 10 564
Baltic 3 836 5 742 24 289
Group management 613 264 1 056
Eliminations -1 193 -726 -2 946
Group total 27 525 33 599 131 565
Operational segment result
Finland 1 682 1 998 6 886
Norway 763 538 2 877
Sweden 313 704 2 890
Denmark 275 204 1 157
Baltic -2 699 748 3 151
Group management -537 -566 -2 500
Total operational segment -203 3 626 14 461
result
IFRS amortisation -516 -719 -2 653
Impairment of Goodwill -6 207 - -
Operating profit -6 925 2 907 11 808
The impairment of Goodwill is allocated to assets of Baltic segment.
The operational segment result in Baltic includes a provision of 1.7 MEUR for
restructuring costs.
Segment assets
(1 000 EUR) 3/2009 12/2008
Finland 39 488 39 806
Norway 22 506 24 027
Sweden 24 014 23 634
Denmark 14 760 14 785
Baltic 10 764 18 091
Group management 180 185
Total segment assets 111 713 120 528
Unallocated assets 25 208 26 106
Total assets 136 921 146 633
Sales by business lines
(1 000 EUR) 1-3/09 1-3/08 2008
BI 17 809 19 771 77 584
Operational Solutions 7 988 11 408 44 613
Geographic Information 2 314 2 953 11 774
Services
Eliminations -586 -533 -2 406
Group total 27 525 33 599 131 565
2.3. Contingencies and commitments
The future aggregate minimum lease payments under non-cancelable operating
leases:
1 000 EUR 31.3.2009 31.12.2008
Not later than one (1) year 3 249 2 832
Later than one (1) year, but not later than 3 230 3 552
five (5) years
Later than five (5) years - -
Total 6 479 6 384
Guarantees:
1 000 EUR 31.3.2009 31.12.2008
Debt secured by a mortgage
Financial loans 44 000 44 000
The above-mentioned debts are secured by bearer bonds with capital value of
52.5 million euro. The bonds are held by Nordea Pankki Suomi Oyj and secured
by a mortgage on company assets of the group companies. In addition, the
shares in Affecto Finland Oy and Affecto Norway AS have been pledged to secure
the financial loans above.
Other securities given on own behalf: 31.3.2009 31.12.2008
Pledges 274 432
Other guarantees 56 56
Pledges given on own behalf consist of restricted cash of 0.1 MEUR and short-
term receivables 0.2 MEUR.
2.4. Derivative contracts
1 000 EUR 31.3.2009 31.12.2008
Interest rate swaps:
Nominal value 34 000 34 000
Fair value -1 207 -894
Interest rate cap:
Nominal value 8 000 8 000
Fair value 6 20
3. Key figures
1-3/09 1-3/08 2008
Net sales, 1 000 eur 27 525 33 599 131 565
EBITDA, 1 000 eur 186 4 040 16 081
Operational segment result, 1 000 -201 3 626 14 461
eur
Operating result, 1 000 eur -6 925 2 907 11 808
Result before taxes, 1 000 eur -8 644 2 040 10 467
Net income for equity holders of -8 013 1 510 8 503
the parent company, 1 000 eur
EBITDA, % 0.7 % 12.0 % 12.2 %
Operational segment result, % -0.7 % 10.8 % 11.0 %
Operating result, % -25.2 % 8.7 % 9.0 %
Result before taxes, % -31.4 % 6.1 % 8.0 %
Net income for equity holders of -29.1 % 4.5 % 6.5 %
the parent company, %
Equity ratio, % 41.3 % 42.1 % 43.0 %
Net gearing, % 42.6 % 60.1 % 34.7 %
Interest-bearing net debt, 22 445 36 381 20 371
1 000 eur
Gross investment in non-current 390 760 2 741
assets (excl. acquisitions),
1 000 eur
Gross investments, % of sales 1.4 % 2.3 % 2.1 %
Research and development costs, 76 567 1 468
1 000 eur
R&D -costs, % of sales 0.3 % 1.7 % 1.1 %
Order backlog, 1 000 eur 41 633 51 192 44 467
Average number of employees 1 057 1 129 1 136
Earnings per share, eur -0.37 0.07 0.40
Earnings per share (diluted), eur -0.37 0.07 0.40
Equity per share, eur 2.45 2.82 2.73
Average number of shares, 1 000 21 480 21 480 21 480
shares
Number of shares at the end of 21 480 21 480 21 480
period, 1 000 shares
Calculation of key figures
EBITDA = Earnings before interest, taxes,
depreciation and amortization
Operational segment result = Operating profit before amortisations on
fair value adjustments due to business
combinations (IFRS3) and Goodwill
impairments.
Equity ratio, % = Shareholders' equity + minority *100
interest
________________________________
Total assets - advances received
Gearing, % = Interest-bearing liabilities - *100
cash, bank receivables and
securities held as financial asset
__________________________________
Shareholders' equity + minority
interest
Interest-bearing net debt = Interest-bearing liabilities - cash
and bank receivables
Earnings per share (EPS) = Result for the period to equity holders
of the Company
______________________________________
Adjusted average number of shares
during the period
Equity per share = Shareholders' equity
______________________________________
Adjusted number of shares at the end of
the period
Market capitalization = Number of shares at the end of period
(excluding treasury shares) x share
price at closing date
-----
© 2024 Nasdaq, Inc. All Rights Reserved |