2015-10-30 07:00:00 CET
2015-10-30 07:00:09 CET
REGULATED INFORMATION
Digia Oyj - Interim report (Q1 and Q3)
DIGIA'S THIRD QUARTER 2015: STRONG GROWTH (13.0%) WITH HEALTHY PROFITABILITY (10.2%)
Helsinki, 2015-10-30 07:00 CET (GLOBE NEWSWIRE) -- DIGIA PLC INTERIM REPORT 30
October 2015, 08:00 a.m.
DIGIA'S THIRD QUARTER 2015: STRONG GROWTH (13.0%) WITH HEALTHY PROFITABILITY
(10.2%)
SUMMARY:
January-September
- Consolidated net sales EUR 77.3 (70.2) million, up 10.2 per cent
- Operating profit before extraordinary items EUR 6.2 (2.0) million
- Extraordinary items include EUR 0.7 million in restructuring costs
- Operating profit after extraordinary items EUR 5.5 (2.0) million
- Profitability (EBIT%) before extraordinary items 8.0 (2.9) per cent and after
extraordinary items 7.1 (2.9) per cent
- Product business accounted for 43.1 (41.4) per cent of net sales
- Earnings per share before extraordinary items EUR 0.21 (0.06) and after
extraordinary items EUR 0.18 (0.06)
July-September
- Consolidated net sales EUR 24.6 (21.7) million, up 13.0 per cent
- Operating profit before extraordinary items EUR 2.5 (0.9) million
- Operating profit after extraordinary items EUR 2.5 (0.9) million
- Profitability (EBIT%) 10.2 (3.9) per cent
- Product business accounted for 46.9 (42.4) per cent of net sales
- Earnings per share before extraordinary items EUR 0.09 (0.02) and after
extraordinary items EUR 0.09 (0.02)
The Digia Group recorded a solid performance during the review period, with net
sales growing and operating profit improving in both segments. Year-on-year
consolidated net sales growth was 10.2 per cent in the review period and 13.0
per cent in the third quarter.
With a net sales increase of 34.3 per cent during the review period and 34.9
per cent during the third quarter, the Qt segment showed particularly strong
growth. Qt's growth was considerably fuelled by the strengthening of the US
dollar against the euro. Excluding the impact of foreign exchange rate changes,
Qt's net sales growth amounted to 24.4 per cent in the review period.
Similarly, in the domestic segment net sales developed favourably towards the
end of the period. Net sales grew by 3.8 per cent in the review period and 6.5
per cent in the third quarter from the comparison period last year.
Consolidated operating profit showed a marked improvement in the wake of net
sales growth. Operating profit improved, particularly in the Qt segment which
began to turn a profit during the review period and continued to do so
throughout the period. The domestic segment was also able to improve its
operating profit from last year's comparison figures. The profitability of the
domestic business rose to a healthy level in the third quarter, reaching 10.4
per cent.
Digia expects overall demand to remain moderate in the domestic segment and
anticipates continued growth towards the year-end. Profitability in the
domestic segment is expected to remain at a healthy level, or close, throughout
the second half of 2015.
Digia anticipates continued growth in the Qt business throughout 2015, with
profitability on a positive curve compared to the previous year's figures.
Overall, Digia expects a clear full-year improvement in both net sales and
operating profit from the previous year's level.
GROUP KEY INDICATORS AND RATIOS
7-9/20 7-9/20 Change, 1-9/20 1-9/20 Change,
15 14 % 15 14 %
--------------------------------------------------------------------------------
Net sales 24,553 21,732 13.0% 77,313 70,187 10.2%
--------------------------------------------------------------------------------
Operating profit before 2,515 857 193.5% 6,170 2,001 208.3%
extraordinary items
--------------------------------------------------------------------------------
- % of net sales 10.2% 3.9% 8.0% 2.9%
--------------------------------------------------------------------------------
Operating profit 2,515 857 193.5% 5,513 2,001 175.5%
--------------------------------------------------------------------------------
- % of net sales 10.2% 3.9% 7.1% 2.9%
--------------------------------------------------------------------------------
Net profit 1,851 472 292.3% 3,781 1,170 223.2%
--------------------------------------------------------------------------------
- % of net sales 7.5% 2.2% 4.9% 1.7%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Return on equity,% 19.2% 5.4% 13.3% 4.4%
--------------------------------------------------------------------------------
Return on capital invested, % 20.5% 6.4% 15.0% 5.6%
--------------------------------------------------------------------------------
Interest-bearing liabilities 15,153 18,873 -19.7% 15,153 18,873 -19.7%
--------------------------------------------------------------------------------
Cash and cash equivalents 3,397 2,902 17.0% 3,397 2,902 17.0%
--------------------------------------------------------------------------------
Net gearing 29.9% 45.3% 29.9% 45.3%
--------------------------------------------------------------------------------
Equity ratio, % 53.8% 50.7% 53.8% 50.7%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR, 0.09 0.02 0.18 0.06
undiluted
--------------------------------------------------------------------------------
Earnings per share, EUR, 0.09 0.02 0.18 0.06
diluted
--------------------------------------------------------------------------------
MARKETS AND DIGIA'S BUSINESS OPERATIONS
DOMESTIC SEGMENT:
Demand remained strong for integration and analytics services during the review
period. Investments to enhance delivery and service capacity continued, and are
expected to bolster net sales development in the future. The availability of
skilled workforce is affecting the growth opportunities of the service business
in the medium term, which is why Digia will make further investments in
personnel training and recruitment. Meanwhile, continued investments in the
development of product and business models for site optimisation taxed the
segment's overall profitability.
On the whole, the ERP and MES business showed favourable development during the
review period, despite the seasonal fluctuations which are typical in this
business area. Strong growth of the Microsoft technologies based solutions
business continued in the third quarter, with a high profitability level.
Similarly, the Microsoft technology based ERP business, which took an upward
turn in the second quarter, showed continued growth in the third quarter. Net
sales from ERP business based on Digia's own software fell at the end of the
period, bringing the full-period net sales on a par with the previous year's
level.
Demand for solutions for the financial sector remained healthy, and the
development of new services for the sector in the Finnish and Swedish markets
has progressed according to plan.
In the service business, demand and profitability showed a positive performance
trend towards the end of the period.
QT SEGMENT:
Qt business showed very strong growth throughout the period. Operating profit
also improved on the back of net sales growth, and the business was profitable.
During the review period, the new Qt 5.5 version was launched. The www.qt.io
website launched for the Qt segment has been well received. This website plays
an extremely important role in managing the Qt ecosystem, and Digia will
continue to make substantial developments in this channel.
Measures to enhance sales were taken during the review period, particularly in
Asia. A new office was opened in Korea. Business development efforts were
particularly focused on consumer electronics and automotive segments.
NET SALES
Digia's consolidated net sales for the period totalled EUR 77.3 (70.2) million,
representing an increase of 10.2 per cent year-on-year.
Net sales in the domestic segment rose by 3.8 per cent to EUR 57.8 (55.6)
million. Net sales in the Qt segment totalled EUR 19.6 (14.6) million,
representing an increase of 34.3 per cent.
The increase in the Group's net sales could be largely attributed to the Qt
segment's strong growth. This growth in the Qt segment stemmed from good sales
combined with major contracts in automotive products and DTV receivers in
particular. Favourable trends in net sales were also supported by the US dollar
strengthening against the euro. The impact of exchange rate fluctuations on
Qt's net sales growth amounted to a total of EUR 1.4 million during the review
period.
During the reporting period, the product business accounted for EUR 33.3
million (1-9/2014: EUR 29.1 million), or 43.1 (41.4) per cent of consolidated
net sales.
International operations accounted for EUR 20.2 million (1-9/2014: EUR 14.5
million), or 26.1 (20.6) per cent of consolidated net sales.
Digia's consolidated net sales for the third quarter were EUR 24.6 (21.7)
million, up 13.0 per cent on the same period last year.
Net sales from the domestic segment increased by 6.5 per cent to EUR 17.9
(16.8) million, while net sales from the Qt business increased by 34.9 per cent
to EUR 6.7 (4.9) million.
During the quarter, the product business accounted for EUR 11.5 (9.2) million,
or 46.9 (42.4) per cent of consolidated net sales.
International operations accounted for EUR 6.8 (5.0) million, or 27.9 (23.0)
per cent, of consolidated net sales in Q3.
PROFIT PERFORMANCE AND PROFITABILITY
Digia's consolidated operating profit before extraordinary items was EUR 6.2
(2.0) million. Profitability (EBIT%) before extraordinary items was 8.0 (2.9)
per cent.
Consolidated operating profit before extraordinary items in the third quarter
was EUR 2.5 (0.9) million, up 193.5 per cent year-on-year.
Consolidated operating profit after extraordinary items was EUR 5.5 (2.0)
million for the review period. Profitability (EBIT%) stood at 7.1 (2.9) per
cent.
Operating profit after extraordinary items amounted to EUR 2.5 (0.9) million in
the third quarter, with profitability (EBIT%) at 10.2 (3.9) per cent.
In the domestic segment, operating profit before extraordinary items totalled
EUR 4.4 (3.6) million, up 22.7 per cent, with profitability (EBIT%) at 7.7
(6.5) per cent. Operating profit after extraordinary items was EUR 3.8 (3.6)
million and profitability (EBIT%) 6.6 (6.5) per cent.
Operating profit from domestic operations in the third quarter grew by 55.8 per
cent to EUR 1.9 (1.2) million, and profitability (EBIT%) was 10.4 (7.1) per
cent.
The Qt segment recorded an operating profit of EUR 1.7 (-1.6) million before
extraordinary items with profitability (EBIT%) at 8.9 (-11.1) per cent. Qt's
operating profit after extraordinary items for the review period was EUR 1.7
(-1.6) million and profitability (EBIT%) was 8.7 (-11.1) per cent.
Qt's operating profit for the third quarter was EUR 0.6 (-0.3) million and
profitability (EBIT%) was 9.2 (-6.9) per cent.
The increase in consolidated operating profit during the review period could be
largely attributed to Qt's significant net sales growth and the resulting major
profitability improvement in the Qt segment.
Consolidated earnings before tax for the period totalled EUR 5.0 (1.5) million,
and profit after tax was EUR 3.8 (1.2) million. Consolidated earnings before
tax for the third quarter were EUR 2.5 (0.5) million, and net profit EUR 1.9
(0.5) million.
Consolidated earnings per share for the review period were EUR 0.21 (1-9/2014:
0.06) before extraordinary items and EUR 0.18 (0.06) after extraordinary items.
Consolidated earnings per share for the third quarter were EUR 0.09 (Q3/2014:
0.02) before extraordinary items and EUR 0.09 (0.02) after extraordinary items.
The Group's net financial expenses for the review period were EUR 0.5 (0.5)
million and for the third quarter EUR 0.1 (0.3) million.
FINANCIAL POSITION AND EXPENDITURE
At the end of the review period, the Digia Group's consolidated balance sheet
total stood at EUR 80.9 million (12/2014: EUR 80.4 million) and the equity
ratio stood at 53.8 (12/2014: 51.5) per cent. Net gearing was 29.9 per cent
(12/2014: 30.3 per cent). Cash and cash equivalents totalled EUR 3.4 million at
period end (12/2014: EUR 5.1 million).
Interest-bearing liabilities amounted to EUR 15.1 (12/2014: 16.2) million at
the period end. These consisted of EUR 13.4 million in loans from financial
institutions and EUR 1.7 million in financial leasing liabilities.
Consolidated net cash flow from operating activities for the period was EUR 1.9
million (1-9/2014: EUR -3.6 million). Cash flow from investments for the period
was negative by EUR 1.4 million (1-9/2014: negative by EUR 0.9 million). Cash
flow from finance for the period was negative by EUR 2.3 million (1-9/2014
positive by EUR 1.0 million).
The Group's investments in fixed assets during the period totalled EUR 1.3
(0.8) million.
Return on investment (ROI) for the period was 15.0 (5.6) per cent, and return
on equity (ROE) was 13.3 (4.4) per cent.
PERSONNEL, MANAGEMENT AND ADMINISTRATION
Group personnel totalled 932 at the end of the period, the same as at the end
of the 2014 fiscal year (12/2014: 932 employees). During the review period, the
number of employees averaged 929, a decrease of 6 employees, or -0.6 per cent,
on the 2014 average (2014: 935).
Employees by function at the end of the period:
Domestic segment 76%
----------------------------------
Qt segment 19%
----------------------------------
Administration and management 5%
----------------------------------
At the end of the period, 135 (12/2014: 146) employees were working abroad.
The Digia Plc Annual General Meeting of 12 March 2015 re-elected Päivi
Hokkanen, Robert Ingman, Pertti Kyttälä, Seppo Ruotsalainen, Leena Saarinen and
Tommi Uhari as members of the Board. Kai Öistämö was elected as a new member.
At the Board's organisation meeting, Pertti Kyttälä was elected Chairman of the
Board and Robert Ingman was elected Vice Chairman.
Juha Varelius has been Digia Plc's President and CEO since 1 January 2008.
On 12 March 2015, KMPG Oy Ab, Authorised Public Accountants, was elected as the
Group's new auditor with Authorised Public Accountant Virpi Halonen as the
principal auditor.
RISKS AND UNCERTAINTIES
Digia's short-term business risks and uncertainties have been described in the
2014 Financial Statements and remain unchanged.
Risks and risk management are also described on the company's website:
www.digia.com.
FUTURE PROSPECTS
Digia expects overall demand to remain moderate in the domestic segment and
anticipates continued growth towards the year-end. To fully tap into the growth
potential, Digia will invest in personnel training and recruitment.
Profitability in the domestic segment is expected to remain at a healthy level,
or close, throughout the second half of 2015.
The Qt segment will be placing a strong focus on sales development, thereby
creating the potential for further growth. The company will continue to
introduce changes to open source code licensing in forthcoming versions of its
Qt software. These changes seek to promote licence sales to commercial players.
Considering the time of year and general market situation, demand for the Qt
segment's services is at a moderate level, and the company also expects to see
continued growth in demand in this major customer segment. However, contract
turnaround times in these markets are very long, typically around 6-18 months,
which can cause significant fluctuation in quarterly net sales and in
profitability in particular.
Business development efforts will particularly focus on embedded systems in
automotive, digital TV and DTV receivers. Areas targeted in product development
include value-added features and tools required for building embedded systems.
Sales growth associated with embedded systems will also reflect on the earnings
logic. Licence revenue from these sales accumulates over the long term as
opposed to one-off licence payments.
Digia anticipates continued growth in the Qt business throughout 2015, with
profitability on a positive curve compared to the previous year's figures.
Overall, Digia expects a clear full-year improvement in both net sales and
operating profit from the previous year's level.
OTHER MAJOR EVENTS OF THE REVIEW PERIOD
Digia Plc's Annual General Meeting (AGM) was held on 12 March 2015. The AGM
adopted the financial statements for 2014, released the Board members and the
CEO from liability, determined Board and auditor fees, resolved to keep the
number of Board members at seven (7), elected the company's Board of Directors
for a new term, and elected a new auditor.
With regard to profit distribution for 2014, the AGM approved the Board's
proposal to pay a dividend of EUR 0.05 per share to all shareholders listed in
the shareholder register maintained by Euroclear Finland Ltd on the
reconciliation date of 16 March 2015. The dividend payment date was 23 March
2015.
The AGM granted the following authorisations to the Board:
Authorisation of the Board of Directors to decide on buying back own shares
and/or accepting them as collateral
The AGM authorised the Board to decide on the buyback and/or acceptance as
collateral of no more than 2,000,000 shares in the company. This buyback can
only be executed by means of the company's unrestricted equity. The Board shall
decide on how these shares are to be bought. Own shares may be bought back in
disproportion to the holdings of the shareholders. The authorisation also
includes acquisition of shares through public trading organised by NASDAQ OMX
Helsinki Oy in accordance with the rules and instructions of NASDAQ OMX
Helsinki and Euroclear Finland Ltd, or through offers made to shareholders.
Shares may be acquired in order to improve the company's capital structure, to
fund acquisitions or other business transactions, for offering share-based
incentive schemes, to sell on, or to be annulled. The shares must be acquired
at the market price in public trading. This authorisation supersedes that
granted by the AGM of 11 March 2014 and is valid for 18 months, i.e. until 12
September 2016.
Authorising the Board of Directors to decide on a share issue and granting of
special rights
The AGM authorised the Board to decide on an ordinary or bonus issue of shares
and the granting of special rights (as defined in Section 1, Chapter 10 of the
Limited Liability Companies Act) in one or more instalments, as follows: The
issue may total 4,000,000 shares at a maximum. The authorisation applies both
to new shares and to treasury shares held by the company. By virtue of the
authorisation, the Board has the right to decide on share issues and the
granting of special rights, in deviation from the pre-emptive subscription
rights of the shareholders (a directed issue). The authorisation may be used to
fund or complete acquisitions or other business transactions, for offering
share-based incentive schemes, to develop the company's capital structure, or
for other purposes. The Board was authorised to decide on all terms related to
the share issue or special rights, including the subscription price, its
payment in cash or (partly or wholly) in capital contributed in kind or its
being written off against the subscriber's receivables, and its recognition in
the company's balance sheet. This authorisation supersedes that granted by the
AGM of 11 March 2014 and is valid for 18 months, i.e. until 12 September 2016.
Digia explores possibilities of a spin-off to form two distinct listed companies
On 28 August 2015, Digia Plc announced that its Board of Directors had decided
to explore a possible spin-off that would separate its domestic and Qt
businesses and create two distinct companies, with identical ownership, listed
on NASDAQ OMX Helsinki.
The purpose of the arrangement would be to enable both businesses to focus on
maximising their respective business opportunities in line with their strategy
and creating further added value for shareholders.
The aim is to implement the arrangement during 2016, once the analysis has been
completed. Digia may issue a separate stock exchange release on its progress in
this matter.
SHARE CAPITAL AND SHARES
On 30 September 2015, the number of Digia Plc shares totalled 20,875,645.
According to Finnish Central Securities Depository Ltd, Digia had 4,149
shareholders on 30 September 2015.
The ten major shareholders were:
Shareholder Percentage of shares and votes
--------------------------------------------------------------------------
Ingman Development Oy Ab 20.6%
--------------------------------------------------------------------------
Ilmarinen Mutual Pension Insurance Company 14.6%
--------------------------------------------------------------------------
Jyrki Hallikainen 7.4%
--------------------------------------------------------------------------
Kari Karvinen 5.3%
--------------------------------------------------------------------------
Varma Mutual Pension Insurance Company 4.6%
--------------------------------------------------------------------------
Matti Savolainen 4.3%
--------------------------------------------------------------------------
Investment Fund Säästöpankki Small Cap 1.3%
--------------------------------------------------------------------------
Aktia Nordic Small Cap investment fund 1.3%
--------------------------------------------------------------------------
Fim Fenno Sek 1.2%
--------------------------------------------------------------------------
Nordea Bank Finland Plc 1.2%
--------------------------------------------------------------------------
Distribution of holdings by number of shares held on 30 September 2015
Number of shares Shareholders Percentage of shares and votes
-------------------------------------------------------------------
1 - 100 25.2% 0.3%
-------------------------------------------------------------------
101 - 1,000 56.5% 5.0%
-------------------------------------------------------------------
1,001 - 10,000 16.1% 8.8%
-------------------------------------------------------------------
10,001 - 100,000 1.5% 10.3%
-------------------------------------------------------------------
100,001 - 1,000,000 0.6% 27.7%
-------------------------------------------------------------------
1,000,001 - 4,000,000 0.1% 47.9%
-------------------------------------------------------------------
Shareholding by sector on 30 September 2015
Shareholders Shares
--------------------------------------------------------------------
Non-financial corporations 4.5% 27.5%
--------------------------------------------------------------------
Financial and insurance corporations 0.3% 7.8%
--------------------------------------------------------------------
General government 0.1% 19.2%
--------------------------------------------------------------------
Not-for-profit institutions serving households 0.3% 2.1%
--------------------------------------------------------------------
Households 94.3% 41.2%
--------------------------------------------------------------------
Foreign holding 0.6% 2.2%
--------------------------------------------------------------------
The weighted average number of shares during the reporting period, adjusted for
share issues, came to 20,777,214 in total. The number of outstanding shares at
the end of the review period was 20,741,144.
Digia Plc held a total of 134,501 treasury shares at the end of the review
period. The accounting counter value of these treasury shares is EUR 0.10 per
share. The company held about 0.6 per cent of the capital stock as of 30
September 2015. Digia has financed the acquisition of 121,000 treasury shares
for distribution through incentive schemes for key personnel. During the
period, 43,871 such shares were distributed. At the end of the period, 77,129
of these shares remained undistributed and were under the management of Evli
Alexander Management Ltd.
REPORTED SHARE PERFORMANCE ON THE HELSINKI STOCK EXCHANGE
Digia Plc shares are listed on the NASDAQ OMX Nordic Exchange under IT, IT
Consulting & Other Services. The company's short name is DIG1V. The lowest
reported share quotation was EUR 2.74 and the highest was EUR 5.65. The share
officially closed at EUR 5.53 on the last trading day. The trade-weighted
average was EUR 3.75. The Group's market capitalisation totalled EUR
115,442,317 at the end of the period.
The company received the following flagging notifications during the review
period:
- On 26 February 2015, the Ingman Group announced that, as a result of
internal restructuring, the Ingman Group had divested its entire holding in
Digia Plc to Ingman Development Oy Ab. As a result of the transaction, the
Ingman Group's holding in Digia Plc has fallen under the 5% flagging threshold
and Ingman Development Oy Ab's holding has risen by a corresponding amount over
the 20% flagging threshold, that is, to 20.21 per cent of the company's shares
and voting rights.
STOCK OPTION SCHEMES
Digia Plc had no outstanding options.
Helsinki, 30 October 2015
Digia Plc
Board of Directors
BRIEFING
Digia will hold a briefing on this Interim Report for analysts on Friday 30
October 2015 at 11 am, in the Tapiola cabinet of Hotel Scandic Simonkenttä,
Simonkatu 9, 00100 Helsinki, Finland. Welcome.
FURTHER INFORMATION
CEO Juha Varelius, exchange +358 (0)10 313 3000
The Interim Report and CEO's presentation will be available on www.digia.com,
in the ‘Investors' section, as of 11 am on 30 October 2015.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
CONDENSED FINANCIAL STATEMENTS AND NOTES
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Shareholders' Equity
NOTES TO THE ACCOUNTS
CONSOLIDATED INCOME STATEMENT, EUR 1,000
EUR 1,000 7-9/2015 7-9/2014 Change 1-9/2015 1-9/2014 Change 2014
, % , %
--------------------------------------------------------------------------------
NET SALES 24,552.5 21,731.9 13.0% 77,313.4 70,187.1 10.2% 97,433.5
--------------------------------------------------------------------------------
Other 771.4 302.7 154.8% 1,619.4 1,026.3 57.8% 1,302.9
operatin
g income
--------------------------------------------------------------------------------
Materials -2,020.0 -1,960.3 3.0% -6,671.0 -6,681.5 -0.2% -9,501.1
and
services
--------------------------------------------------------------------------------
Depreciat -675.9 -580.1 16.5% -1,946.8 -1,890.0 3.0% -2,490.4
ion,
amortisa
tion and
impairme
nt
--------------------------------------------------------------------------------
Other -20,112.8 -18,637.4 7.9% -64,802.4 -60,640.7 6.9% -82,435.0
operatin
g
expenses
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating 2,515.2 856.9 193.5% 5,512.6 2,001.2 175.5% 4,309.8
profit
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial -40.7 -307.1 -86.7% -521.3 -511.0 2.0% -675.6
expenses
(net)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings 2,474.5 549.8 350.1% 4,991.3 1,490.2 234.9% 3,634.2
before
tax
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income -623.7 -78.0 699.1% -1,210.3 -320.5 277.7% -783.8
taxes
--------------------------------------------------------------------------------
NET 1,850.9 471.7 292.3% 3,781.0 1,169.8 223.2% 2,850.4
PROFIT
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other
comprehe
nsive
income:
--------------------------------------------------------------------------------
Items
which
may be
reclassi
fied
subseque
ntly to
profit
or loss:
--------------------------------------------------------------------------------
Exchange -131.7 80.8 45.3 -44.3 -116.6
differen
ces on
translat
ion of
foreign
operatio
ns
--------------------------------------------------------------------------------
TOTAL 1,719.1 552.5 211.2% 3,826.3 1,125.5 240.0% 2,733.8
COMPREHE
NSIVE
INCOME
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribut
ion of
net
profit:
--------------------------------------------------------------------------------
Parent-co 1,850.9 471.7 292.3% 3,781.0 1,169.8 223.2% 2,850.4
mpany
sharehol
ders
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Distribut
ion of
total
comprehe
nsive
income:
--------------------------------------------------------------------------------
Parent-co 1,719.1 552.5 211.2% 3,826.3 1,125.5 240.0% 2,733.8
mpany
sharehol
ders
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, EUR 1,000
Assets 30 Sep 2015 31 Dec 2014 Change, %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Intangible assets 51,329.8 52,309.0 -1.9%
--------------------------------------------------------------------------------
Tangible assets 2,028.1 1,698.6 19.4%
--------------------------------------------------------------------------------
Financial assets 702.0 627.0 12.0%
--------------------------------------------------------------------------------
Long-term receivables 54.1 26.0 108.3%
--------------------------------------------------------------------------------
Deferred tax assets 208.5 201.2 3.6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total non-current assets 54,322.4 54,861.8 -1.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Current receivables 23,208.7 20,399.3 13.8%
--------------------------------------------------------------------------------
Available-for-sale financial assets 330.1 328.7 0.4%
--------------------------------------------------------------------------------
Cash and cash equivalents 3,066.5 4,803.3 -36.2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total current assets 26,605.2 25,531.3 4.2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 80,927.7 80,393.1 0.7%
--------------------------------------------------------------------------------
Shareholders' equity and liabilities 30 Sep 2015 31 Dec 2014 Change, %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share capital 2,087.6 2,087.6 0.0%
--------------------------------------------------------------------------------
Issue premium fund 7,899.5 7,899.5 0.0%
--------------------------------------------------------------------------------
Other reserves 5,203.8 5,203.8 0.0%
--------------------------------------------------------------------------------
Unrestricted shareholders' equity reserve 31,370.3 31,370.3 0.0%
--------------------------------------------------------------------------------
Translation difference 446.3 401.0 11.3%
--------------------------------------------------------------------------------
Retained earnings -11,428.5 -13,093.8 12.7%
--------------------------------------------------------------------------------
Net profit 3,781.0 2,850.4 32.6%
--------------------------------------------------------------------------------
Equity attributable to parent-company 39,360.0 36,718.7 7.2%
shareholders
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total shareholders' equity 39,360.0 36,718.7 7.2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities
--------------------------------------------------------------------------------
Long-term interest-bearing liabilities 8,281.8 9,646.4 -14.1%
--------------------------------------------------------------------------------Received long-term advances 919.7 1,113.5 -17.4%
--------------------------------------------------------------------------------
Deferred tax liabilities 262.5 288.5 -9.0%
--------------------------------------------------------------------------------
Total long-term liabilities 9,463.9 11,048.4 -14.3%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-term interest-bearing liabilities 6,871.6 6,599.0 4.1%
--------------------------------------------------------------------------------
Other short-term liabilities 25,232.1 26,026.9 -3.1%
--------------------------------------------------------------------------------
Total short-term liabilities 32,103.8 32,625.9 -1.6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total liabilities 41,567.7 43,674.4 -4.8%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity and liabilities 80,927.7 80,393.1 0.7%
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
1 Jan 2015- 1 Jan 2014-
30 Sep 2015 30 Sep 2014
----------------------------------------------------------------------Cash flow from operations:
----------------------------------------------------------------------
Net profit 3,781 1,170
----------------------------------------------------------------------
Adjustments to net profit 1,958 403
----------------------------------------------------------------------
Change in working capital -3,232 -4,797
----------------------------------------------------------------------
Interest paid -270 -242
----------------------------------------------------------------------
Interest income 1 0
----------------------------------------------------------------------
Taxes paid -354 -135
----------------------------------------------------------------------
Net cash flow from operations 1,884 -3,601
----------------------------------------------------------------------
----------------------------------------------------------------------
Cash flow from investments:
----------------------------------------------------------------------
Purchases of tangible and intangible assets -1,353 -904
----------------------------------------------------------------------
Cash flow from investments -1,353 -904
----------------------------------------------------------------------
----------------------------------------------------------------------
Cash flow from financing:
----------------------------------------------------------------------
Proceeds from share issue 0 0
----------------------------------------------------------------------
Acquisition of own shares 0 0
----------------------------------------------------------------------
Repayment of current loans -1,500 -2,000
----------------------------------------------------------------------
Repayments of non-current loans 0 0
----------------------------------------------------------------------
Withdrawals of current loans 0 3,000
----------------------------------------------------------------------
Withdrawals of non-current loans 0 1,758
----------------------------------------------------------------------
Dividends paid and other profit distribution -766 -1,804
----------------------------------------------------------------------
Cash flow from financing -2,266 954
----------------------------------------------------------------------
----------------------------------------------------------------------
Change in liquid assets -1,736 -3,551
----------------------------------------------------------------------
----------------------------------------------------------------------
Liquid assets at beginning of period 5,132 6,454
----------------------------------------------------------------------
Change in fair value
----------------------------------------------------------------------
Change in liquid assets -1,736 -3,551
----------------------------------------------------------------------
Liquid assets at end of period 3,396 2,903
----------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, EUR 1,000
a b c d e f g h
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY, 1 2,088 0 7,899 33,448 5,204 518 -13,096 36,061
Jan 2014
--------------------------------------------------------------------------------
Net profit 1,170 1,170
--------------------------------------------------------------------------------
Other comprehensive income -44 -44
--------------------------------------------------------------------------------
Repayment of capital -2,078 -2,078
--------------------------------------------------------------------------------
Share-based payments 110 110
recognised against equity
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY, 30 2,088 0 7,899 31,370 5,204 473 -11,816 35,218
Sep 2014
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
a b c d e f g h
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY, 1 2,088 0 7,899 31,370 5,204 401 -10,243 36,719
Jan 2015
--------------------------------------------------------------------------------
Net profit 3,781 3,781
--------------------------------------------------------------------------------
Other comprehensive income 45 45
--------------------------------------------------------------------------------
Dividends -1,039 -1,039
--------------------------------------------------------------------------------
Share-based payments -146 -146
recognised against equity
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY, 30 2,088 0 7,899 31,370 5,204 446 -7,647 39,360
Sep 2015
--------------------------------------------------------------------------------
a = share capital
b = rights issue
c = share premium
d = unrestricted invested shareholders' equity
e = other reserves
f = currency translation differences
g = retained earnings
h = total shareholders' equity
NOTES TO THE ACCOUNTS
This Interim Report has not been audited.
Accounting principles:
The interim report has been prepared in compliance with IFRS and the IAS 34
standard.
Otherwise, the same accounting principles have been applied as in the 2014
Financial Statements. The amendments to and interpretations of IFRS standards
effective as of 1 January 2015 had no material effect on this Interim Report.
Seasonal nature of business:
The Group's business is affected by the number of workdays each month, as well
as by holiday seasons.
Dividends paid:
Dividends paid during the reporting period totalled EUR 1,038,763.65.
Related-party transactions:
Digia Group's related parties include the CEO and the members of the Board of
Directors and Group Management Team. Digia Group had no significant
transactions with related parties during the review period.
Segment information:
Digia's business operations are divided into two main business segments:
Domestic and Qt.
NET SALES, EUR 7-9/201 7-9/201 Change, 1-9/201 1-9/201 Change, 2014
1,000 5 4 % 5 4 %
--------------------------------------------------------------------------------
Domestic segment 17,874 16,783 6.5% 57,762 55,627 3.8% 77,028
--------------------------------------------------------------------------------
Qt segment 6,678 4,949 34.9% 19,551 14,560 34.3% 20,406
--------------------------------------------------------------------------------
Digia Group 24,552 21,732 13.0% 77,313 70,187 10.2% 97,433
--------------------------------------------------------------------------------
OPERATING PROFIT BEFORE 7-9/20 7-9/20 Change 1-9/20 1-9/20 Change 2014
EXTRAORDINARY ITEMS, 15 14 , % 15 14 , %
EUR 1,000
--------------------------------------------------------------------------------
Domestic segment 1,864 1,197 55.8% 4,437 3,616 22.7% 6,311
--------------------------------------------------------------------------------
Qt segment 616 -340 1,736 -1,614 -1,850
--------------------------------------------------------------------------------
Digia Group 2,515 857 193.5% 6,174 2,001 208.5% 4,461
--------------------------------------------------------------------------------
OPERATING PROFIT, 7-9/201 7-9/201 Change, 1-9/201 1-9/201 Change, 2014
EUR 1,000 5 4 % 5 4 %
--------------------------------------------------------------------------------
Domestic segment 1,864 1,197 55.8% 3,816 3,616 5.5% 6,311
--------------------------------------------------------------------------------
Qt segment 616 -340 1,700 -1,614 -2,001
--------------------------------------------------------------------------------
Digia Group 2,515 857 193.5% 5,513 2,001 175.5% 4,310
--------------------------------------------------------------------------------
ASSETS, EUR 1,000 30 Sep 2015 31 Dec 2014
-------------------------------------------
Domestic segment 51,843 51,076
-------------------------------------------
Qt segment 17,354 17,332
-------------------------------------------
Unallocated 11,731 11,985
-------------------------------------------
Digia Group 80,928 80,393
-------------------------------------------
Consolidated income statement by quarter:
EUR 1,000 7-9/2015 4-6/2015 1-3/2015 10-12/201 7-9/2014
4
--------------------------------------------------------------------------------
Net sales 24,552.5 27,109.2 25,651.7 27,246.4 21,731.9
--------------------------------------------------------------------------------
Other operating income 771.4 424.8 423.1 276.6 302.7
--------------------------------------------------------------------------------
Materials and services -2,020.0 -2,358.3 -2,292.7 -2,819.6 -1,960.3
--------------------------------------------------------------------------------
Depreciation, -675.9 -655.6 -615.3 -600.5 -580.1
amortisation and
impairment
--------------------------------------------------------------------------------
Other operating expenses -20,112.8 -22,212.5 -22,477.0 -21,794.4 -18,637.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 2,515.2 2,307.6 689.8 2,308.5 856.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial expenses (net) -40.7 -176.8 -303.8 -164.6 -307.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings before tax 2,474.5 2,130.8 386.0 2,143.9 549.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -623.7 -472.9 -113.7 -463.3 -78.0
--------------------------------------------------------------------------------
Net profit 1,850.9 1,657.8 272.3 1,680.6 471.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Allocation:
--------------------------------------------------------------------------------
Parent-company 552.5 1,695.7 272.3 1,680.6 471.7
shareholders
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share, EUR 0.09 0.08 0.01 0.08 0.02
--------------------------------------------------------------------------------
Earnings per share 0.09 0.08 0.01 0.08 0.02
(diluted), EUR
--------------------------------------------------------------------------------
Group key indicators and ratios:
EUR 1,000 1-9/2015 1-9/2014
------------------------------------------------------------------------------
Extent of business:
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Net sales 77,313 70,187
------------------------------------------------------------------------------
- change from previous year 10.2% -3.8%
------------------------------------------------------------------------------
Average capital invested 53,758 53,517
------------------------------------------------------------------------------
Personnel at period end 932 933
------------------------------------------------------------------------------
Average number of personnel 929 935
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Profitability:
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Operating profit before extraordinary items and impairment 6,170 2,001
------------------------------------------------------------------------------
- % of net sales 8.0% 2.9%
------------------------------------------------------------------------------
Operating profit 5,513 2,001
------------------------------------------------------------------------------
- % of net sales 7.1% 2.9%
------------------------------------------------------------------------------
Earnings before tax 4,991 1,490
------------------------------------------------------------------------------
- % of net sales 6.5% 2.1%
------------------------------------------------------------------------------
Net profit 3,781 1,170
------------------------------------------------------------------------------
% of net sales 4.9% 1.7%
------------------------------------------------------------------------------
Return on equity, % 13.3% 4.4%
------------------------------------------------------------------------------
Return on investment, % 15.0% 5.6%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Financing and financial standing:
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Interest-bearing liabilities 15,153 18,873
------------------------------------------------------------------------------
Short-term investments & cash and bank receivables 3,397 2,902
------------------------------------------------------------------------------
Net gearing 29.9% 45.3%
------------------------------------------------------------------------------
Equity ratio 53.8% 50.7%
------------------------------------------------------------------------------
Net cash flow from operations 1,884 -3,601
------------------------------------------------------------------------------
Earnings per share, EUR, undiluted 0.18 0.06
------------------------------------------------------------------------------
Earnings per share, EUR, diluted 0.18 0.06
------------------------------------------------------------------------------
Equity per share, EUR 1.89 1.69
------------------------------------------------------------------------------
Lowest share trading price, EUR 2.74 3.10
------------------------------------------------------------------------------
Highest share trading price, EUR 5.65 4.59
------------------------------------------------------------------------------
Average share price, EUR 3.75 3.96
------------------------------------------------------------------------------
Market capitalisation 115,442 64,714
------------------------------------------------------------------------------
Formulae for key figures and ratios are presented in the 2014 financial
statements. These remained unchanged during the reporting period.
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