2012-04-27 08:30:03 CEST
2012-04-27 08:30:17 CEST
REGLAMENTUOJAMA INFORMACIJA
Ixonos - Interim report (Q1 and Q3)
Interim report for the period 1 January – 31 March 2012
Helsinki, Finland, 2012-04-27 08:30 CEST (GLOBE NEWSWIRE) -- Ixonos Plc
Interim report 27 April 2012 at 9.30
Interim report for the period 1 January - 31 March 2012
IXONOS' TURNOVER AND OPERATING RESULT BEFORE NONRECURRING ITEMS DECLINED AS
PREDICTED. GOODWILL IMPAIRED BY
EUR 9.2 MILLION.
The review period in brief
- Turnover for the review period was EUR 17.7 million (2011: EUR 21.1 million),
a change of −16.4 per cent.
- The operating result before nonrecurring items was EUR −1.3 million (2011:
EUR 0.4 million), −7.2 per cent of turnover.
- Goodwill was impaired by EUR −9.2 million.
- The operating result was EUR −10.5 million (2011: EUR 0.4 million).
- The net result was EUR −10.2 million (2011: EUR 0.2 million).
- Earnings per share were EUR −0.68 (2011: EUR 0.01).
- Net cash flow from operating activities was EUR 0.4 million (2011: EUR 0.4
million).
Future prospects in brief
- Prospects stay intact: Turnover for 2012 is expected to decrease clearly from
2011 but exceed EUR 60 million. Operating profit before nonrecurring items is
forecast to be positive.
Kari Happonen, President and CEO:
Last year saw significant changes in our operating environment, and this shift
gained momentum in the first quarter of this year. Demand for our R&D and
software development services for Symbian and MeeGo smartphones will wane
during the first half-year of the current financial period. At the beginning of
the year, we also experienced a sudden decline in the business volume of our
Finnish public sector accounts.
Early in the year, the weakened demand in our key business areas caused
turnover to decline from the previous year: turnover for the first quarter was
EUR 17.7 million, 16.4 per cent less than the corresponding turnover in 2011.
This decline also weakened profitability: the operating result before
nonrecurring items came at EUR −1.3 million.
To safeguard the competitiveness of the company and maintain the best possible
profitability, we held cooperation negotiations with our personnel in Finland
at the beginning of the year. As a result of the negotiations, a maximum of 136
employees will need to be dismissed or temporarily laid off from the company's
operations in Finland and from its administrative and support functions by the
end of June 2012. In addition, we have had to dismiss 20 employees from our
subsidiaries abroad. We have also taken other economy measures to adjust the
company's cost structure to the changes.
The weakened outlook, particularly concerning the accounts in the Finnish
public sector, caused a EUR 9.2 million impairment of the goodwill in the
company's balance sheet. This nonrecurring item does not affect cash flow, but
it pushed the first-quarter operating profit EUR 10.5 million into the
negative.
Despite the ongoing changes, we have succeeded in gaining new Finnish and
international customers as well as in delaying the decline in business volume.
In accordance with our strategy, our acquisition of new customers is
spearheaded by new technologies as well as by the new products into which we
have made significant development investments during the last two years.
In R&D solutions for mobile devices, we invest strongly in Linux-based
operating systems, such as Android. With regard to multi-channel online
services, we focus on Linux-based open source technologies. Already last year,
we launched the Ixonos Elastic Cloud platform, the Ixonos App Agency service
for development of mobile apps and the Ixonos Experience Store platform,
designed for app stores. All published products are already in use in numerous
projects of our new customers.
In the beginning of this year, at Mobile World Congress, we unveiled the Ixonos
Smartphone Platform and its first reference phone, which is based on Qualcomm
technology and the Android operating system. At the same time, we also launched
the Ixonos IVI Connect product, which connects in-car infotainment systems with
the user's mobile devices and cloud-based Internet services. At Intel Developer
Forum in Beijing, we released the Ixonos 3D Engine for creation of
three-dimensional user interfaces, and at Mobile Show Middle East, Dubai, we
undraped Ixonos Super App, an application platform for development of
next-generation mobile apps.
Our clientele, which grew significantly last year, will continue to expand in
2012. Research institutes predict that the global market for wireless devices
and for the multi-channel online services those devices use will shoot up in
the next few years. We believe that our high-quality productised solutions,
which offer outstanding user experiences, make a solid foundation for boosting
our new accounts and creating new growth in the coming years.
OPERATIONS
Ixonos is a creative mobile solutions company. We deliver products and services
for the development of wireless devices, multi-channel cloud services and
mobile apps. Together with our corporate customers, we design products and
services that let consumers enjoy inspiring mobile experiences regardless of
time and place.
We enhance the competitiveness of our customer companies by enabling
cost-efficient development, a fast time-to-market as well as superior user
experiences for their devices and services. We aim to position ourselves as a
strategic partner to the leading innovators in the mobile industry.
We have offices in Finland, China, Denmark, Estonia, Germany, Great Britain,
Slovakia, South Korea and the United States.
The Connected Devices service area comprises products and services for R&D of
mobile devices:
-- Ixonos Smartphone Platform™: A smartphone platform designed for powerful
chipsets, high-
quality components and 3D user interfaces.
-- Ixonos Smartphone Reference Design: A design implemented on Ixonos'
smartphone
platform and featuring the Qualcomm Snapdragon chipset as well as the
Android Ice Cream Sandwich operating system.
-- Ixonos IVI Connect™: This software product integrates in-car infotainment
systems with the
user's mobile devices and cloud services, supporting the MirrorLink
standard as well as iOS and Android devices.
-- Device Creation Services: Comprehensive device creation services from
concept
development to manufacturing and maintenance comprising hardware design,
electronics design, mechanical engineering, software development,
production and testing.
-- Professional services in mobile software development and system
integration.
The clientele of the Connected Devices service area comprises wireless
technology suppliers, mobile device manufacturers, telecommunications
companies, automotive industry companies and entertainment electronics
manufacturers operating on the international market. Customers include for
example Bang & Olufsen, Cassidian, Huawei, Intel, Nokia, Polycom, Samsung and
Vodafone.
The Online Solutions service area encompasses global products and services for
development of cloud services and mobile apps:
-- Ixonos Elastic Cloud™: A Red Hat certified, scalable and secure enterprise
cloud solution,
developed especially as a platform for R&D and for online services.
-- Ixonos App Agency™: Provides services ranging from mobile business
consulting to
app production, deployment, maintenance and analysis, on all mobile
platforms.
-- Ixonos Experience Store™: This boutique app store platform and digital
marketing and
distribution channel enables companies to improve brand awareness, deepen
customer loyalty and monetise mobile apps.
-- System integration and professional services for online services.
In Finland, the Online Solutions offering is supplemented by solutions for
e-commerce, e-government and service operations:
-- Ixonos City Online™: A cloud service that enables municipalities to develop
and deploy e-
government services in a rapid, standardised and cost-efficient manner.
-- System integration and professional services for e-commerce, e-government
and service
operations.
The clientele of the Online Solutions area consists of companies in the
publishing, communications, telecommunications and service sectors as well as
Finnish public administration organisations. International customers comprise,
among others, the BBC, eBay India, Evri, eZ Systems, Groupon, Hotels.com,
Nokia, Nokia Siemens Networks, Procter & Gamble and Time Out. Finnish customers
include Elisa, Fonecta, Kuntien Tiera, the Ministry of Finance, OP-Pohjola, the
cities of Oulu and Tampere, TeliaSonera and SanomaPro
The User Experience Design service area comprises of brand-supporting,
comprehensive user experience design and implementation services, as well as
user interface products and design services for wireless devices, multi-channel
online services and mobile apps:
-- Ixonos 3D Engine™: A user interface platform that enables customised 3D
user interfaces to
be developed for devices of all shapes and sizes, regardless of the
platform and chipset.
-- Ixonos Super App™: This next-generation app platform consolidates
seamlessly and user
friendly online content and functionality from multiple online services and
integrates them with social media.
-- Professional services in Service Design, user experience design, user
interface design and
implementation.
The clients in the service area include for example the BBC, ESPN, Intel,
Nokia, ScanLife, Turner Broadcasting and Vodafone.
Changes in segment reporting
Ixonos reports its operations as one segment as of 1 January 2012. The changes
in segment reporting were informed on 25 April 2012. The reported segment
consists of the three, above-mentioned service areas: Connected Devices, Online
Solutions and User Experience Design. The product and service offering of the
service areas creates the core business of the company, which is focused on the
development of wireless devices, online services as well as mobile apps.
TURNOVER
Consolidated turnover in the first quarter was EUR 17.7 million (2011: EUR 21.1
million), which is 16.4 per cent less than in the previous year.
FINANCIAL RESULT
The consolidated operating result before goodwill impairment was EUR −1.3
million (2011: EUR 0.4 million). The consolidated operating result was EUR
−10.5 million, and the result before taxes was EUR −10.6 million (2011: EUR 0.3
million). The result for the review period was negative, EUR −10.2 million
(2011: EUR 0.2 million). Earnings per share were EUR −0.68 (2011: EUR 0.01).
Cash flow from operating activities was EUR 0.03 per share (2011: EUR 0.02).
The result for the review period was affected by a EUR 9.2 million nonrecurring
goodwill impairment in the Online Solutions service area.
RETURN ON CAPITAL
Consolidated return on equity was −168.4 per cent (2011: 3.0 per cent). Return
on investment was −122.2 per cent (2011: 4.4 per cent).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 41.7 million (2011: EUR 56.5 million).
Shareholders' equity was EUR 19.2 million (2011: EUR 28.6 million). The equity
ratio was 46.0 per cent (2011: 50.6 per cent). The group's liquid assets at the
end of the financial period amounted to EUR 0.8 million (2011: EUR 1.0
million).
At the end of the review period, the balance sheet of the company showed EUR
7.5 million (2011: EUR 8.4 million) in bank loans. This amount includes
overdraft in use. The bank loans have covenants attached to them. These
covenants are based on the equity ratio and on the proportion of
interest-bearing bank loans to the 12-month rolling operating profit.
GOODWILL
On 31 March 2012, the consolidated balance sheet included EUR 14.4 million in
goodwill. This is EUR 9.2 million less than at the end of the financial period
2011. Goodwill has been reduced by the goodwill impairment in the Online
Solutions service area.
In February, the company published its financial statement release, in which it
estimated that the risk of goodwill impairment had increased substantially. The
company noted that should its projections regarding this year's developments
and the rationalisation program fail to materialise, goodwill might be
impaired. At the end of March, the company tested for impairment the goodwill
distributed among the group's new cash generating service areas. The refined
estimates of the company's turnover and profit are lower than the ones made at
the turn of the year, particularly concerning the accounts in the Finnish
public sector. Because of this, the company recognised a goodwill impairment of
EUR 9.2 million in the Online Solutions area.
CASH FLOW
During the review period, consolidated cash flow from operating activities was
EUR 0.4 million (2011: EUR 0.4 million). By 31 March 2012, the company had sold
EUR 5.2 million (2011: EUR 3.2 million) in accounts receivable in order to
reduce their turnaround time.
PERSONNEL
The number of employees averaged 1,022 (2011: 1,154) during the review period
and was 1,010 (2011: 1,149) at the end of the period. Staff decreased in the
Finnish units of the company but continued to increase somewhat in companies
abroad. At the end of the review period, the group had 576 employees (2011:
719) in Finnish companies, while group companies in other countries employed
434 (2011: 430).
SHARES AND SHARE CAPITAL
Share turnover and price
During the review period, the highest price of the company's share was EUR 1.20
(2011: EUR 2.79) and the lowest EUR 0.79 (2011: EUR 1.50). The closing price on
31 March 2012 was EUR 0.98 (2011: EUR 1.58). The average price over the review
period was EUR 0.96 (2011: EUR 1.95). The number of shares traded during the
review period was 1,831,953 (2011: 2,497,799), which corresponds to 12.1 per
cent (2011: 16.5 per cent) of the total number of shares at the end of the
review period. Based on the closing price at 31 March 2012, the market value of
the company's shares was EUR 14,800,434 (2011: EUR 23,861,295).
Share capital
At the beginning as well as the end of the review period, the company's
registered share capital was EUR 585,394.16 and the number of shares was
15,102,484.
Option plan 2011
The Board of Directors of Ixonos Plc decided on 30 November 2011 to grant new
options. This decision was based on the authorisation given by the Annual
General Meeting on 29 March 2011.
The options were issued by 31 December 2011, free of charge, to a subsidiary
wholly owned by Ixonos Plc. This subsidiary will distribute the options, as the
Board decides, to employees of Ixonos Plc and other companies in the Ixonos
Group, to increase the commitment and motivation of the recipients. Options
will not be issued to members of the Board of Directors of Ixonos Plc or to the
senior management of the group of companies (Ixonos Management Invest Oy
shareholders).
The options will be marked IV/A, IV/B and IV/C. A total of 600,000 options will
be issued. According to the terms of the options, the Board of Directors
decides how the options will be divided between option series and, if needed,
how undistributed options will be converted from one series to another.
Each option entitles its holder to subscribe for one new or treasury share in
Ixonos Plc. The shares that can be subscribed for with options comprise 3.82
per cent of all Ixonos Plc shares and votes on a fully diluted basis.
The exercise period for the IV/A options will begin on 1 October 2014, for the
IV/B options on 1 October 2015 and for the IV/C options on 1 October 2016. The
exercise periods for all options will end on 31 December 2018. The exercise
price for each option series is a trade volume weighted average price at NASDAQ
OMX Helsinki. The period during which this average price is determined is 1
September - 30 November 2011 for the IV/A options (resulting in an exercise
price of EUR 0.86), 1 June - 31 August 2012 for the IV/B options and 1 June -
31 August 2013 for the IV/C options. The exercise prices will be reduced by the
amount of dividends and can also be adjusted under the other circumstances
specified in the option terms.
A total of 495,000 options have been allocated to series IV/A and granted to
employees of group companies in accordance with the terms of the option plan.
Shareholders
On 31 March 2012, the company had 3,137 shareholders (2011: 3,077). Private
persons owned 56.3 per cent (2011: 51.6 per cent) and institutions 43.7 per
cent (2011: 48.4 per cent) of the shares. Foreign ownership was 7.5 per cent
(2011: 9.1 per cent) of all shares.
Board authorisations
On 4 April 2012, the Annual General Meeting of Ixonos Plc authorised the Board
of Directors to decide on a rights issue and on issuing stock options and other
special rights entitling to shares pursuant to chapter 10, section 1 of the
Limited Liability Companies Act (624/2006) as well as on transferring treasury
shares in one or more lots under the following terms:
The number of shares to be issued under the authorisation may not exceed
1,500,000, which corresponds to approximately 10 per cent of all company shares
at the time of convening the Annual General Meeting.
Within the limits of the authorisation, the Board of Directors may decide on
all terms of the rights issue, of the issue of special rights entitling to
shares and of the treasury share transfers.
The meeting also granted the Board of Directors authority to decide on
crediting the subscription price to the share capital or, in whole or in part,
to the invested non-restricted equity fund.
Shares as well as special rights entitling to shares may also be issued in a
way that deviates from the pre-emptive rights of shareholders, if weighty
financial reason for this exists as laid out in the Limited Liability Companies
Act. In such a case, the authorisation may be used to finance corporate
acquisitions or other investments related to the operations of the company as
well as to maintain and improve the solvency of the group of companies.
The Annual General Meeting also authorised the Board of Directors to decide on
acquiring, or accepting as pledge, a maximum of 1,500,000 own shares, using the
company's non-restricted equity. This amount of shares corresponds to
approximately 10 per cent of all company shares at the time of convening the
meeting. The acquisition may take place in one or more lots. The acquisition
price will not exceed the highest market price in public trading at the time of
the acquisition. In executing the acquisition of own shares, the company may
enter into derivative, share lending and other contracts customary on the
capital market, within the limits set by law and regulations. The authorisation
entitles the Board to decide on a directed acquisition, i.e. on acquiring own
shares in a proportion other than that of the shares held by the shareholders.
The shares may be acquired to execute corporate acquisitions or other business
arrangements related to the company's operations, to improve the capital
structure of the company, to otherwise transfer the shares or to cancel them.
The authorisation includes the right for the Board of Directors to decide on
all other matters related to the acquisition of shares.
The authorisations are effective until the Annual General Meeting 2013.
OTHER EVENTS DURING THE REVIEW PERIOD
Cooperation negotiations
On 3 January 2012, the company commenced cooperation negotiations with its
personnel in Finland. Demand for the MeeGo and Symbian R&D and software
development services Ixonos has provided to Nokia Corporation declined
significantly at the turn of the year, and it is not expected to return to its
previous level. The goal of the negotiations was to find ways to adjust the
cost structure to the new situation, thus safeguarding the competitiveness of
the company.
The negotiations applied to all Ixonos Group employees in Finland. The results
of the negotiations were estimated to affect 150 employees at the most.
The negotiations were completed on 14 February 2012. As a result of the
negotiations, a maximum of 136 employees will be dismissed or temporarily laid
off from Ixonos Plc and its subsidiaries in Finland by the end of June 2012.
The group of companies will also take other economy and rationalisation
measures.
The rationalisation is estimated to achieve some EUR 1.0 million in monthly
savings from June 2012.
Annual General Meeting of Ixonos Plc, 4 April 2012
Ixonos Plc held its Annual General Meeting on 4 April 2012. The meeting adopted
the company's financial statements, including the consolidated financial
statements, for the financial period 1 January - 31 December 2011 and
discharged from liability the members of the Board of Directors as well as the
President and CEO.
The Annual General Meeting decided that no dividend would be paid for the
financial period.
The meeting decided that six ordinary members would be elected to the Board of
Directors. Paul Ehrnrooth, Pertti Ervi, Matti Heikkonen, Matti Järvinen, Samu
Konttinen and Kirsi-Marja Kuivalainen were re-elected as Board members.
At its meeting following the Annual General Meeting, the Board of Directors
elected Pertti Ervi as Chairman of the Board and Paul Ehrnrooth as Deputy
Chairman of the Board.
The Board also appointed the members of its committees. Matti Järvinen was
elected as Chairman of the Audit Committee. Paul Ehrnrooth and Matti Heikkonen
were elected as Audit Committee members. The Board decided to merge the
Nomination Committee and the Remuneration Committee. Pertti Ervi was elected as
Chairman of the Nomination and Remuneration Committee. Paul Ehrnrooth, Samu
Konttinen and Kirsi-Marja Kuivalainen were elected as Nomination and
Remuneration Committee members.
The Annual General Meeting decided to keep unchanged the fees of the Board
members: the Chairman of the Board will be paid EUR 40,000 per year and EUR 500
per meeting, the Deputy Chairman of the Board EUR 30,000 per year and EUR 250
per meeting and other Board members EUR 20,000 per year and EUR 250 per
meeting. The meeting also decided to pay a fee of EUR 500 per meeting to the
chairpersons of the Board's committees and EUR 250 per meeting to committee
members.
Authorised Public Accountants PricewaterhouseCoopers Oy continues as auditor.
The principal auditor is Markku Katajisto, Authorised Public Accountant. The
Annual General Meeting decided that a reasonable auditor's fee would be paid in
accordance with the auditor's invoice.
For the Board authorisations, authorised by the Annual General Meeting, please
view “Board authorisations” above.
RISK MANAGEMENT AND NEAR-FUTURE UNCERTAINTY FACTORS
The risk management of Ixonos Plc aims to ensure undisturbed continuity and
development of the company's operations, support attainment of the commercial
targets set by the company and promote increasing company value. Details on the
risk management organisation and process as well as on recognised risks are
presented on the company's website at www.ixonos.com.
Changes in key customer accounts may adversely affect Ixonos' operations,
earning power and financial status. Should a major customer switch its
purchases from Ixonos to its competitors or make forceful changes to its own
operating model, Ixonos would have limited ability to acquire, in the short
term, new customer volume to compensate for such changes.
The reduction and rationalisation of the company's operations causes
nonrecurring expenses, such as redundancy payments in various countries. This
increases the company's need for short-term financing. The company manages the
need for working capital by creating, together with financiers, adequate
buffers to ensure sufficient funds as well as by facilitating the circulation
of working capital. The company's balance sheet also includes a significant
amount of goodwill, which still may be impaired should internal or external
factors reduce the profit expectations of the company or any of its cash
generating units. Goodwill is tested during the final quarter of each year and,
if necessary, at other times. During 2012, the company assesses on a quarterly
basis, as informed earlier, the need for such impairment.
The company's financial agreements have covenants attached to them. A covenant
violation may increase the company's financial expenses or lead to a call for
swift partial or full repayment of non-equity loans. The main risks related to
covenant violations are associated with operating profit fluctuation due to the
market situation and with a potential need to increase the company's working
capital through non-equity funding. The company manages these risks by
negotiating with financiers and by maintaining readiness for various financing
methods. Ixonos has in use the cash funds its normal operations require.
LONG-TERM GOALS AND STRATEGY
Ixonos aims to achieve in long-term an operating profit of at least 10 per
cent. Due to the ongoing change process, the company will expand its prospects
on its goals for long-term growth later this year.
To achieve the long-term goals, Ixonos focuses its strategy on expanding the
company's product, solution and service operations into new accounts and
industries.
Mobile technologies and wireless connectivity will be used not only by the
mobile and smartphone industry and in computers but also by the automotive
industry, in home entertainment electronics and in domestic appliances. These
connected devices will be interlinked with the Internet and each other. The R&D
service market for such devices is expected to grow intensely in the next few
years.
The proliferation of connected devices will generate a growing market for cloud
services and mobile apps, based on high-quality user experiences. The always-on
wireless connectivity of the devices will enable cloud services and apps to be
used regardless of time and place. Services and apps will extend the feature
set of devices as well as create new services and functionality for consumers,
businesses and authorities alike. These services and apps must be designed to
be as user-friendly as possible in multi-channel environments, ensuring that
they work on countless different devices irrespective of technology and
software, user interface and the way the device is used.
Ixonos positions itself as a globally significant enabler of the connected
life. We create wireless technologies and connected devices as well as
multi-channel cloud services and mobile apps. We aim to improve the
competitiveness of our client organisations by enabling top-class usability,
cost-efficient development and a short time-to-market for their devices.
Ixonos' customer promise and competitive edge are founded on user experience
innovations that support the customer's brand as well as on product-based,
customisable technology solutions. Productised device and software platforms
and the utilisation of open source technologies enable customer devices,
services and apps to be developed in a cost-effective manner and rolled out
rapidly.
In the connected-device market, we work with smartphone manufacturers as well
as with technology suppliers, telecommunications companies, consumer
electronics manufacturers, the automotive industry, the domestic appliance
industry and defence & security industry players.
In the market for cloud services and apps, we collaborate with media companies,
telecommunications companies, the service sector, public administration and
global consumer brands.
Ixonos' key strengths are:
-- user experience and user interface design encompassing devices and
services;
-- technology platform and operating system independent creation of wireless
technologies and mobile software;
-- electronics design and mechanical engineering for mobile devices;
-- a top-class mobile laboratory and extensive testing services;
-- open source based systems development and cloud services;
-- a global network of service centres and sales offices.
FUTURE PROSPECTS
According to Gartner research, the global market in R&D services for mobile
phones, smartphones and other mobile devices is expected to continue its
intense growth, and wireless connectivity is anticipated to extend into new
fields. The expansion of wireless connectivity is expected to increase demand
for the services of design houses such as Ixonos.
In accordance with its strategy, Ixonos continues to expand its clientele by
boosting sales of products, solutions and services to technology suppliers,
mobile device manufacturers, consumer electronics manufacturers, the automotive
industry and other customers in Finland as well as internationally. By
rationalising its operations, the company aims to maintain a positive cash flow
and the best possible profitability.
Even though the company has intensified its acquisition of new customers as
well as its sales, business volume is expected to decline significantly this
year. The company's turnover for 2012 is anticipated to be clearly lower than
in the previous year but to exceed EUR 60 million. Operating profit before
nonrecurring items is forecast to be positive.
NEXT REPORTS
The interim report for the period 1 January - 30 June 2012 will be published on
7 August 2012. The interim report for the period 1 January - 30 September 2012
will be published on 25 October 2012.
IXONOS PLC
Board of Directors
For more information, please contact:
Ixonos Plc
Kari Happonen, President and CEO, tel. +358 400 700 761,
kari.happonen@ixonos.com
Timo Leinonen, CFO, tel. +358 400 793 073, timo.leinonen@ixonos.com
Distribution
NASDAQ OMX Helsinki
Main media
THE IXONOS GROUP
ABBREVIATED FINANCIAL STATEMENTS 1 January - 31 March 2012
Accounting policies
This interim report has been prepared in accordance with IAS 34 (Interim
Financial Reporting) and with the accounting principles for the financial
statements of 31 December 2011. The IFRS amendments and interpretations that
took effect on 1 January 2012 have not affected the consolidated financial
statements.
Preparing the financial statements in accordance with IFRS requires Ixonos'
management to make estimates and assumptions that affect the amounts of assets
and liabilities on the balance sheet date as well as the amounts of income and
expenses for the financial period. In addition, judgment must be used in
applying the accounting policies. As the estimates and assumptions are based on
views prevailing at the time of releasing the interim report, they involve
risks and uncertainty factors. Actual results may differ from estimates and
assumptions.
The figures in the income statement and balance sheet are consolidated. The
consolidated balance sheet includes all group companies as well as Ixonos
Management Invest Oy, a company owned by members of Ixonos' management. The
original interim report is in Finnish. The interim report in English is a
translation of the original report.
As the figures in the report have been rounded, sums of individual figures may
differ from the sums presented. The interim report is unaudited.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
1.1.-31.3. 1.1.-31.3. Change, per 1.1.-31.12.
2012 2011 cent 2011
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Turnover 17,661 21,138 −16.4 81,408
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Operating expenses −18,928 −20,768 −8.9 −79,472
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OPERATING RESULT BEFORE −1,267 369 −442.9 1,937
GOODWILL IMPAIRMENT
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Goodwill impairment −9,200 0 0
--------------------------------------------------------------------------------
OPERATING PROFIT −10,467 369 −2 933.2 1,937
--------------------------------------------------------------------------------
Financial income and expenses −93 −52 79.9 −528
--------------------------------------------------------------------------------
Profit before tax −10,560 318 −3 422.2 1,409
--------------------------------------------------------------------------------
Income tax 323 −107 −403.1 −478
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PROFIT FOR THE PERIOD −10,236 211 −4 948.3 931
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Attributable to:
--------------------------------------------------------------------------------
Equity holders of the parent −10,228 217 −4 812.8 955
--------------------------------------------------------------------------------
Non-controlling interests −8 −6 39.3 −24
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, EUR 1,000
Profit for the period −10,236 211 4 948.3 931
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Other comprehensive income
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Change in translation difference −36 −54 −34.3 58
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COMPREHENSIVE INCOME FOR THE PERIOD −10,272 157 −6 642.7 988
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION, EUR 1,000
ASSETS 31.3.2012 31.3.2011 31.12.2011
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NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Goodwill 14,447 23,647 23,647
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Other intangible assets 4,974 5,425 5,138
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Property, plant and equipment 3,900 4,192 3,391
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Deferred tax assets 333 221 27
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Available-for-sale investments 110 110 110
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TOTAL NON-CURRENT ASSETS 23,763 33,595 32,314
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Trade and other receivables 17,175 21,900 19,190
--------------------------------------------------------------------------------
Cash and cash equivalents 769 1,040 1,466
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TOTAL CURRENT ASSETS 17,944 22,941 20,657
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TOTAL ASSETS 41,708 56,535 52,970
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EQUITY AND LIABILITIES 31.3.2012 31.3.2011 31.12.2011
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SHAREHOLDERS' EQUITY
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Share capital 585 585 585
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Share premium reserve 219 219 219
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Invested non-restricted equity fund 20,288 20,343 20,313
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Retained earnings 8,119 7,039 7,177
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Profit for the period −10,228 217 955
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Equity attributable to equity holders of the 18,983 28,403 29,248
parent
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Non-controlling interests 192 228 200
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TOTAL SHAREHOLDERS' EQUITY 19,175 28,631 29,448
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LIABILITIES
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Non-current liabilities 4,112 7,414 4,400
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Current liabilities 18,421 20,490 19,122
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TOTAL LIABILITIES 22,533 27,904 23,522
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TOTAL EQUITY AND LIABILITIES 41,708 56,535 52,970
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STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1,000
A: Share capital
B: Share premium reserve
C: Share issue
D: Invested non-restricted equity fund
E: Translation difference
F: Retained earnings
G: Total equity attributable to equity holders of the parent
H: Non-controlling interests
I: Total equity
A B C D E F G H I
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Shareholders' equity at 585 219 0 20,343 29 7,058 28,234 224 28,457
1 January 2011
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Profit for the review 217 217 −6 211
period
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Other comprehensive
income:
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Change in translation −54 −54 −54 difference
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Transactions with
shareholders:
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Rights issue 50 50 50
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Share-based 7 7 7
remuneration
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Management incentive −50 −50 10 −40
plan
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Shareholders' equity at 585 219 0 20,343 −25 7,282 28,403 228 28,631
31 March 2011
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Shareholders' equity at 585 219 0 20,313 86 8,045 29,248 200 29,448
1 January 2012
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Profit for the review −10,22 −10,22 −8 −10,03
period 8 8 6
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Other comprehensive
income:
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Change in translation −36 −36 −36
difference
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Transactions with
shareholders:
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Expenses for equity −25 −25 −25
procurement
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Share-based 23 23 23
remuneration
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Shareholders' equity at 585 219 0 20,288 50 −2,160 18,983 192 19,175
31 March 2012
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CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
1.1.-31.3. 1.1.-31.3. 1.1.-31.12
2012 2011 .2011
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Cash flow from operating activities
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Profit for the period −10,236 211 931
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Adjustments to cash flow from operating
activities
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Tax −323 107 478
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Depreciation and impairment 10,323 976 4,209
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Financial income and expenses 93 52 528
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Other adjustments −2 −46 −36
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Cash flow from operating activities before −146 1,229 6,110
change in working capital
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Change in working capital 785 −615 196
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Interest received 51 1 10
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Interest paid −113 −120 −599
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Tax paid −177 −193 −606
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Net cash flow from operating activities 402 373 5,110
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Cash flow from investing activities
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Investments in tangible and intangible −823 −744 −2,207
assets
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Dividends received 0 0 8
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Net cash flow from investment activities −823 −744 −2,199
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Net cash flow before financing −422 −371 2,911
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Cash flow from financing activities
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Repayment of long-term borrowings −506 0 −2,825
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Increase in short-term borrowings 727 −371 1,548
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Repayment of short-term borrowings −456 913 −1,391
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Proceeds from share issues 0 −368 0
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Expenses for equity procurement −25 10 −30
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Net cash flow from financing activities −260 185 −2,699
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Change in cash and cash equivalents −697 −186 240
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Liquid assets at the beginning of the period 1,466 1,226 1,226
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Liquid assets at the end of the period 769 1,040 1,466
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CONSOLIDATED INCOME STATEMENT, QUARTERLY, EUR 1,000
Q1/201 Q4/2011 Q3/201 Q2/201 Q1/201
2 1.10.- 1 1 1
1.1.- 31.12.11 1.7.- 1.4.- 1.1.-
31.3.1 30.9.1 30.6.1 31.3.1
2 1 1 1
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Turnover 17,661 19,537 18,916 21,817 21,138
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Operating expenses −18,92 −19,535 −18,08 −21,17 20,768
8 8 9
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OPERATING PROFIT BEFORE GOODWILL −1,267 3 829 638 369
IMPAIRMENT
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Goodwill impairment −9,200 0 0 0 0
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OPERATING PROFIT −10,46 3 829 638 369
7
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Financial income and expenses −93 −152 −167 −157 −52
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Profit before tax −10,56 −149 661 481 318
0
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Income tax 323 21 407 −140 −107
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PROFIT FOR THE PERIOD −10,23 −128 414 340 211
6
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CHANGES IN FIXED ASSETS, EUR 1,000
Goodwi Intangible Property, plant Available-for-sa Total
ll assets and equipment le investments
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Carrying amount 23,647 5,580 4,210 110 33,547
at 1 January
2011
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Additions 445 387 832
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Changes in −15 −14 −29
exchange rates
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Depreciation for −585 −391 −976
the period
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Carrying amount 23,647 5,425 4,192 110 33,374
at 31 March 2011
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Carrying amount 23,647 5,138 3,391 110 32,286
at 1 January
2012
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Additions 528 959 1,488
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Changes in −4 −7 −11
exchange rates
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Disposals −9 −9
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Impairment −9,200 −9,200
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Depreciation for −689 −434 −1,123
the period
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Carrying amount 14,447 4,974 3,900 110 23,431
at 31 March 2012
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FINANCIAL RATIO
1.1.-31.3.201 1.1.-31.3.201 1.1.-31.12.2
2 1 011
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Earnings per share, diluted, EUR −0.68 0.01 0.06
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Earnings per share, EUR −0.68 0.01 0.06
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Equity per share, EUR 1.26 1.88 1.94
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Operating cash flow per share, 0.03 0.02 0.34
diluted, EUR
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Return on investment, per cent −122.2 4.4 5.4
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Return on equity, per cent −168.4 3.0 3.2
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Operating profit ∕ turnover, per −59.3 1.7 2.4
cent
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Net gearing, per cent 48.0 39.7 27.5
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Equity ratio, per cent 46.0 50.6 55.6
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OTHER INFORMATION
1.1.-31.3.20 1.1.-31.3.20 1.1.-31.12.20
12 11 11
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PERSONNEL 1,022 1,154 1,118
Number of employees, average
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Number of employees, at the end of 1,010 1,149 1,031
the period
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COMMITMENTS, EUR 1,000 31.3.2012 31.3.2011 31.12.2011
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Collateral for own commitments
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Corporate mortgages 19,800 9,900 19,900
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Leasing and other rental commitments
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Falling due within 1 year 5,413 4,744 5,665
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Falling due within 1-5 years 2,393 4,840 3,403
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Falling due after 5 years 0 0 0
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Total 7,807 9,584 9,068
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Nominal value of interest rate swap
agreement
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Falling due within 1 year 1,219 0 1,375
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Falling due within 1-5 years 1,357 4,601 1,493
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Falling due after 5 years 0 0 0
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Total 2,576 4,601 2,868
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Fair value −27 −22 −23
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CALCULATION OF KEY FIGURES
Diluted earnings per share = profit for the period ∕ number of shares, adjusted
for issues and dilution, average
Earnings per share = profit for the period ∕ number of shares, adjusted for
issues, average
Shareholders' equity per share = shareholders' equity ∕ number of shares,
undiluted, on the closing date
Cash flow from operating activities, per share, diluted = net cash flow from
operating activities ∕ number of shares, adjusted for issues and dilution,
average
Return on investment = (profit before taxes + interest expenses + other
financial expenses) ∕ (balance sheet total − non-interest-bearing liabilities,
average) × 100
Return on equity = net profit ∕ shareholders' equity, average × 100
Gearing = (interest-bearing liabilities - liquid assets) ∕ shareholders' equity
× 100
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