2011-10-25 12:00:00 CEST
2011-10-25 12:00:12 CEST
REGULATED INFORMATION
Ixonos - Interim report (Q1 and Q3)
Interim report for the period 1 January - 30 September 2011
Helsinki, Finland, 2011-10-25 12:00 CEST (GLOBE NEWSWIRE) -- Ixonos Plc
Interim report 25 October 2011 at 13.00
Interim report for the period 1 January - 30 September 2011
IXONOS' TURNOVER AT THE PREVIOUS YEAR'S LEVEL, OPERATING PROFIT REDUCED
The review period in brief
-- Turnover for the review period was EUR 61.9 million (2010: EUR 61.8
million), a change of +0.1 per cent.
-- Operating profit was EUR 1.9 million (2010: EUR 3.5 million), 3.1 per cent
of turnover.
-- Net profit was EUR 1.1 million (2010: EUR 2.0 million), 1.7 per cent of
turnover.
-- Earnings per share were EUR 0.07 (2010: EUR 0.16).
-- Net cash flow from operating activities was EUR 1.8 million (2010: EUR 0.8
million).
Q3/2011 in brief
-- Turnover for the third quarter was EUR 18.9 million (2010: EUR 19.4
million), a change of -2.3 per cent.
-- Operating profit was EUR 0.8 million (2010: EUR 1.7 million), 4.4 per cent
of turnover.
-- Net profit was EUR 0.4 million (2010: EUR 1.1 million), 2.2 per cent of
turnover.
-- Earnings per share were EUR 0.03 (2010: EUR 0.08).
Future prospects in brief
-- The company's turnover for 2011 is expected to be slightly lower than in
the previous year
but to exceed EUR 80 million.
-- Operating profit is expected to be approximately EUR 2 million.
Kari Happonen, President and CEO:
In February, Nokia Corporation - one of Ixonos' key customers - announced a new
smartphone strategy. The changes this event touched off in the operating
environment have marked the entire year. The previous year's strong growth
abated in the first quarter. Although we strongly intensified our securing of
new customers during the review period, turnover remained at last year's level.
Amid the changes, we have nonetheless successfully defended our market share in
the Nokia account while gaining new Finnish and international customers.
The decreased growth led to reduced profitability, and in the second quarter,
we reacted to this by commencing co-operation negotiations with our personnel
in Finland so as to align our operations with the altered needs and volume of
our business. Reorganisation measures were taken concurrently at our Danish and
U.S. offices as well. These actions have particularly improved the efficiency
of our administrative and support functions. On the other hand, the changes in
the market situation have required us to invest in solution and service
development as well as in sales, and these investments have clearly reduced our
profitability.
Ixonos provides software and R&D services to globally operating companies that
utilise wireless technologies in supplying new mobile devices and compatible
online services to consumers and corporate users. In the third quarter of this
year, we clarified our global service offering as well as our operational
organisation. In our view, many industries - such as the automotive and
entertainment-electronics sectors, not just the conventional mobile and
smartphone industries - will in the future take advantage of mobile
technologies including wireless connectivity to new, ubiquitous, multi-channel
online services. The market developments and our new service offering - our
Connected Devices software and hardware development solutions, our Online
Solutions multi-channel, cloud-based services for e-business, e-government and
content delivery and our comprehensive User Experience Design services for
applications, services and devices - provide us with an excellent opportunity
to create new growth in the coming years.
Our activities to secure new customers globally are spearheaded by device
creation services for smartphones and other mobile devices based on the Android
platform and on chipsets from leading technology suppliers as well as by user
experience design services, mobile-application production services and delivery
solutions for mobile content and applications. On the Finnish market, we also
offer multi-channel development solutions for e-commerce and e-government.
Our clientele will continue to expand in the final quarter. At the same time,
demand for development services related to Nokia's MeeGo and Symbian platforms
will decrease clearly. Although we estimate that new customer projects will
provide employment for a significant share of those Ixonos specialists
withdrawing from the Nokia account, the turnover from those projects will not
make up for the decrease in MeeGo and Symbian revenue. We thus anticipate that
turnover in the final quarter of this year will decrease substantially and that
turnover for the entire year will fall short of the previous year. Our
profitability for the final quarter and for the entire financial period will
also be lower than in the previous year.
We expect the MeeGo and Symbian turnover to decrease significantly in the next
year. We continue securing new customers as well as to prepare for adjusting
our cost structure to achieve the best possible cash flow and profitability.
OPERATIONS
Ixonos develops wireless technologies, software, mobile devices and services.
Together with our corporate customers, we create products and services that
allow consumers to enjoy inspiring digital experiences regardless of time and
place.
We improve the competitiveness of our client organisations by enabling superior
user experiences for their devices and services and by shortening the time to
market. We aim to position ourselves as a strategic partner to the industry's
leading innovators and pioneers. We provide solutions and services for R&D of
mobile software and complete wireless devices, for the design, operation and
maintenance of mobile applications and mobile web services and for user
experience design that encompasses devices as well as services.
Our Finnish subsidiary Ixonos Business Solutions Ltd. provides development
solutions and services for e-business and e-government.
Ixonos has offices in Finland, China, Denmark, Estonia, Germany, Great Britain,
Slovakia, South Korea and the U.S.
SEGMENTS
Since the beginning of 2011, Ixonos reports its business operations as two
segments: Mobile Solutions and Business Solutions.
Mobile Solutions
The Mobile Solutions business area comprises development solutions and services
for wireless technologies, devices and services. The area's clientele includes
wireless technology suppliers, mobile device manufacturers, telecommunications
companies and entertainment electronics manufacturers operating on the
international market as well as other companies taking advantage of the new
business opportunities that wireless communication enables.
Ixonos' Device Creation Centre provides development solutions for mobile
devices. In addition to software development, these solutions also cover
mechanical engineering and electronics design. The centre provides
comprehensive R&D services for next-generation wireless devices and seeks
customers among international device manufacturers and telecommunications
companies. The unit develops smartphones and other wireless devices based on
new, powerful chipsets from the world's leading technology suppliers and on
several different operating systems.
The User Experience Design Centre is Ixonos' unit for design and consulting
services related to the user experience. The unit focuses on creating
attractive user experiences and helps Ixonos provide productised services and
customised solutions for the company's international clientele. The unit offers
services ranging from user experience design strategy and concept development
to concrete design work and solution creation.
Ixonos' Managed Services Centre provides solutions and services that span the
entire life cycle of business-critical web services, from requirements analysis
to design, development, maintenance and further development. The unit develops
and maintains e.g. solutions for media and content services, for information
management and for mobile advertising and e-commerce, as well as social network
services. In addition to flexible development and deployment of web and mobile
services, the unit offers a maintenance package that includes application
support as well as maintenance and data centre services.
During the review period, the turnover of the Mobile Solutions business area
increased by 0.6 per cent to EUR 52.8 million (2010: EUR 52.4 million).
Operating profit decreased by 24.1 per cent to EUR 4.6 million (2010: EUR 6.1
million), 8.7 per cent of turnover.
The operating environment of the Mobile Solutions business area became more
volatile in the beginning of the year, after Nokia Corporation, a key customer,
announced its new smartphone strategy. Due to the changes in the Nokia account,
the segment fell clearly short of its growth targets. Demand for R&D services
based on Nokia's MeeGo and Symbian platforms is estimated to decrease in the
final quarter of this year as well as in 2012. Consequently, the volume and
profitability of the segment's business operations are expected to decline.
In accordance with strategy, Ixonos continues to expand the clientele of its
Mobile Solutions business area by boosting sales of services and solutions
based on mobile Linux platforms such as Android and the new Tizen. The target
group consists of mobile technology suppliers, mobile device manufacturers,
entertainment electronics manufacturers and other customers in Finland as well
as internationally. At the same time, the segment strives to maintain the best
possible profitability, adapting, if necessary, the volume of its operations to
customer demand.
Business Solutions
Business Solutions provides innovative e-business solutions to meet the
challenges of tomorrow's service operations. The Business Solutions area
provides development solutions and services for e-business and e-government.
The segment's clientele consists of Finnish telecommunication and finance
companies and public administration organisations.
The area's e-business and e-government services are focused on business process
development, architecture services, portal solutions, content and case
management solutions and business intelligence solutions. The unit also
provides R&D services that help client organisations use agile development
methods to create innovative new web services. With these services, Business
Solutions aims to improve the internal and external customer service of its
clients.
The solutions developed by the unit utilise product platforms of chosen
technology partners as well as open source solutions. By collaborating with
Ixonos' other units, Business Solutions offers comprehensive solutions to meet
the e-business and e-government needs of the company's customers.
The turnover of the Business Solutions segment decreased by 11.1 per cent to
EUR 10.5 million (2010: EUR 11.8 million) during the review period. The volume
of the segment's business operations ceased to decline in late 2010 and has
increased since early 2011. Operating profit for the first nine months remained
negative, EUR -0.5 million, although the losses were somewhat lower than in the
corresponding period of the previous year (2010: EUR -0.7 million). The
profitability of the segment is improving alongside its increasing turnover.
Changes in Ixonos' service offering
In the third quarter of this year, we streamlined our global service offering
as well as our operational organisation. In the new organisation, the Mobile
Solutions business area includes the Connected Devices software development
solutions, the Device Creation solutions and the comprehensive User Experience
Design services for applications, services and devices. We strengthened the
services of the Business Solutions area by adding to its offering the company's
international Managed Services Centre services, which include solutions and
services that span the entire life cycle of web services. These services and
the Business Solutions segment's current services combine to form our
multi-channel, cloud-based Online Solutions services for e-business,
e-government and content delivery.
The aforementioned changes in the service offering do not affect the company's
business reporting segments.
TURNOVER
Consolidated turnover for the review period was EUR 61.9 million (2010: EUR
61.8 million), which is 0.1 per cent more than in the corresponding period of
the previous year. Of the total turnover of all segments, before elimination of
inter-segment revenue, the Mobile Solutions segment accrued 83.4 per cent
(2010: 81.6 per cent) and the Business Solutions segment accrued 16.6 per cent
(2010: 18.4 per cent).
Turnover in the third quarter was EUR 18.9 million (2010: EUR 19.4 million),
which is 2.3 per cent less than in the previous year.
Turnover by segment:
EUR 1,000 1-9 2011 1-9 2010 1-12 2010
-------------------------------------------------
Mobile Solutions 52,765 52,448 72,579
-------------------------------------------------
Business Solutions 10,511 11,818 15,475
-------------------------------------------------
Eliminations -1,406 -2,479 -3,110
-------------------------------------------------
Group total 61,871 61,787 84,944
-------------------------------------------------
FINANCIAL RESULT
Consolidated operating profit was EUR 1.9 million (2010: EUR 3.5 million).
Profit before taxes was EUR 1.6 million (2010: EUR 2.8 million). Profit for the
review period was EUR 1.1 million (2010: EUR 2.0 million). Earnings per share
were EUR 0.07 (2010: EUR 0.16). Diluted cash flow from operating activities was
EUR 0.12 per share (2010: EUR 0.07). The company incurred one-off expenses of
some EUR 0.4 million because of its operational restructuring and the closedown
of international offices. These expenses affect the result for the review
period.
Operating profit for the third quarter was EUR 0.8 million (2010: EUR 1.7
million). Profit before taxes was EUR 0.7 million (2010: EUR 1.6 million).
Profit for the third quarter was EUR 0.4 million (2010: EUR 1.1 million).
Diluted third-quarter earnings per share were EUR 0.03 (2010: EUR 0.08).
Diluted cash flow from operating activities in the third quarter was EUR 0.10
per share (2010: EUR -0.06).
Operating profit by segment:
EUR 1,000 1-9 2011 1-9 2010 1-12 2010
------------------------------------------------------------
Mobile Solutions 4,597 6,054 8,891
------------------------------------------------------------
Business Solutions -526 -655 -838
------------------------------------------------------------
Group administration expenses -2,137 -1,937 -2,722
------------------------------------------------------------
Group total 1,934 3,462 5,331
------------------------------------------------------------
RETURN ON CAPITAL
Consolidated return on equity (ROE) was 4.9 per cent (2010: 11.8 per cent).
Return on investment (ROI) was 6.8 per cent (2010: 11.9 per cent).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 55.8 million (2010: EUR 58.0 million).
Shareholders' equity was EUR 29.6 million (2010: EUR 27.0 million). The equity
ratio was 53.2 per cent (2010: 46.5 per cent). The group's liquid assets at the
end of the review period amounted to EUR 0.8 million (2010: EUR 1.3 million).
At the end of the review period, the company's balance sheet showed EUR 11.1
million (2010: EUR 12.0 million) in bank loans. This amount includes overdraft
in use. The bank loans have covenants attached to them. The covenants are based
on the company's equity ratio and on the proportion of interest-bearing bank
loans (partly interest-bearing net liabilities) to the twelve-month rolling
operating profit.
GOODWILL
On 30 September 2011, the consolidated balance sheet included EUR 23.6 million
in goodwill. At the end of the review period, the company performed impairment
testing of goodwill in all cash generating units and concluded that no goodwill
impairment is required in connection with the units.
CASH FLOW
During the review period, consolidated cash flow from operating activities was
EUR 1.8 million (2010: EUR 0.8 million). The turnaround time of accounts
receivable has become longer from 2010 onwards and this has influenced cash
flow from operating activities. By 30 September 2011, the company had sold a
total of EUR 3.0 million (2010: EUR 1.5 million) in accounts receivable so as
to reduce the turnaround time.
PERSONNEL
The number of personnel averaged 1,135 (2010: 1,115) during the review period
and was 1,110 (2010: 1,134) at the end of the period. The staff increase
occurred mainly in companies outside Finland. At the end of the review period,
the group had 641 employees (2010: 738) in Finnish companies, while group
companies in other countries employed 469 (2010: 396). The company has
compensated for its reduced staff in Finland by increasing subcontracting as
necessary.
SHARES AND SHARE CAPITAL
Share turnover and price
During the review period, the highest price of the company's share was EUR 2.79
(2010: EUR 2.99) and the lowest EUR 0.66 (2010: EUR 1.84). The closing price on
30 September 2011 was EUR 0.87 (2010: EUR 2.24). The average price over the
review period was EUR 1.41 (2010: EUR 2.30). The number of shares traded during
the review period was 5,675,690 (2010: 1,953,877), which corresponds to 37.6
per cent (2010: 13.4 per cent) of the total number of shares at the end of the
review period. Based on the closing price on 30 September 2011, the market
value of the company's shares was EUR 13,139,161 (2010: EUR 32,782,073).
Share capital
At the beginning of the review period, the company's registered share capital
was EUR 585,394.16 and the number of shares was 15,102,484. Following the
directed issue that took place during the review period, the number of shares
is 15,122,974.
Option plan 2006
Under the 2006 stock option plan, 140,000 series AI options, 140,000 series AII
options, 60,000 series BI options and 60,000 series BII options have been
granted. Of the series A options, 15,000 AI options and 25,000 AII options have
been returned to the company pursuant to the terms of the option plan. A total
of 30,000 returned series A options have been converted to series B options, in
accordance with the terms of the option plan, and redistributed. Of the series
B options, 5,000 BI options and 10,000 BII options have been returned to the
company pursuant to the terms of the option plan. The maximum number of shares
that can be subscribed for with outstanding options under the option plan of
2006 is 366,500, which is equivalent to 3.9 per cent of all the company's
shares. The subscription period for series 2006 AI options began on 1 October
2007, for series AII and BI options on 1 October 2008 and for series BII
options on 1 October 2009. At 30 June 2011, the exercise price is EUR 4.13 with
series AI and AII options and EUR 4.92 with series BI and BII options. The
subscription period for the options that were granted in 2006 will end on 31
December 2011.
Because of a rights issue, the company's Board of Directors decided on 1 June
2010 to modify the subscription ratio and exercise price associated with the
option rights. The change is intended to ensure equal treatment of option
holders and shareholders. Under the new subscription ratio, each series 2006A
and 2006B option right entitles its holder to subscribe for 1.57 shares. The
exercise price is based on the market price of the company's share at NASDAQ
OMX Helsinki Ltd from January to March 2006 and 2007. However, the exercise
price per share is at least EUR 3.05 with series 2006A options and at least EUR
3.55 with series 2006B options. On exercise, the total number of shares for
which the option holder subscribes is rounded down to the nearest integer. The
total exercise price is calculated using the rounded number of shares and is
rounded to the nearest cent. After the change, a maximum of 575,405 shares can
be subscribed for with option rights. This equals 3.8 per cent of the shares at
the end of the review period.
Shareholders
The company had 3,223 shareholders on 30 September 2011 (2010: 2,945). Private
persons owned 55.8 per cent (2010: 53.7 per cent) and institutions 44.2 per
cent (2010: 46.3 per cent) of the shares. Foreign ownership was 7.3 per cent
(2010: 7.2 per cent) of all shares.
Board authorisations
On 29 March 2011, Ixonos Plc's Annual General Meeting authorised the Board of
Directors to decide on a rights issue as well as 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), under the
following terms:
The number of shares to be issued under the authorisation may not exceed
1,500,000, which is equivalent to approximately 10 per cent of all company
shares at the time of convening the Annual General Meeting.
The Board of Directors was granted authority to decide, within the limits of
the authorisation, on all terms of the share issue as well as on those of the
issue of special rights entitling to shares.
The Board of Directors was also granted 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 a 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 associated with the company's operations, to
maintain and improve the group's solvency or as part of the company's incentive
plan.
The authorisation is effective until the Annual General Meeting 2012.
OTHER EVENTS DURING THE REVIEW PERIOD
Changes in Ixonos' Management Team
New members were appointed to the Ixonos Group's Management Team from 1 October
2011: Teppo Kuisma, Vice President and Sami Paihonen, Vice President. Teppo
Kuisma, who has been Managing Director of Ixonos Business Solutions Ltd. since
the beginning of 2010, is now responsible for the company's Online Solutions
services. Sami Paihonen, who joined Ixonos in June 2010, is responsible for
User Experience Design services.
The other members of the Management Team are Kari Happonen, President and CEO;
Timo Leinonen, Senior Vice President, Finance; Kari Liuska, Senior Vice
President, who has been responsible for the Connected Devices services since 1
October 2011, and Taina Makkonen, Vice President, Human Resources. Management
Team member Timo Kaisla, Senior Vice President, is on sabbatical leave since 13
June 2011.
RISK MANAGEMENT AND NEAR-FUTURE UNCERTAINTY FACTORS
Ixonos Plc's risk management aims to ensure undisturbed continuity and
development of the company's operations, to support attainment of the
commercial targets set by the company and to 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 relationships may have an adverse effect on 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.
Ixonos' corporate acquisitions in 2006-2008, its rapid growth in 2010 and the
prolonged turnaround time of accounts receivable have increased the company's
need for working capital. The company manages this need 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 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.
The company's financial agreements have covenants attached to them. A covenant
violation may cause an increase in the company's financial expenses or 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.
FUTURE PROSPECTS
According to Gartner research, the global market for R&D services in the area
of mobile phones, smartphones and other mobile devices is expected to continue
its intense growth throughout out 2011. Wireless data transfer is anticipated
to continue its expansion into new areas of consumer electronics. Market-Visio
indicates that the Finnish ICT market keep growing at the rate of some 4 per
cent in 2011. This growth rate is near the long-term average.
In accordance with strategy, Ixonos continues its activities to expand its
clientele by boosting sales of services and solutions to mobile technology
suppliers, mobile device manufacturers, consumer electronics manufacturers,
automotive industry and other customers in Finland as well as internationally
while striving to maintain the best possible profitability. The company's sales
of software development services for R&D projects based on Nokia's MeeGo and
Symbian platforms are estimated to decrease in the second half of this year.
The volume and profitability of Ixonos' Mobile Solutions segment are therefore
expected to decline from last year's level despite intensified sales to other
customers.
The company's turnover for 2011 is expected to be slightly lower than in the
previous year but to exceed EUR 80 million. Operating profit is expected to be
approximately EUR 2.0 million.
The company aims to continue vigorously securing new customers and developing
its services as well as to maintain cash flow and profitability by
rationalising its operations.
NEXT REPORTS
The publication time of the financial statement release for the period 1
January - 31 December 2011 will be announced later.
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 - 30 SEPTEMBER 2011
Accounting policies
This interim report has been prepared in accordance with IAS 34 (Interim
Financial Reporting), the accounting policies for the financial statements of
31 December 2010 and the new and revised standards that came into effect on 1
January 2011 and that are described in the annual 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 at the time of 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.-30.9.2 1.1.-30.9.2 Change, per 1.1.-31.12.2
011 010 cent 010
--------------------------------------------------------------------------------
Turnover 61,871 61,787 0.1 84,944
--------------------------------------------------------------------------------
Operating expenses -59,937 -58,325 2.8 -79,613
--------------------------------------------------------------------------------
OPERATING PROFIT 1,934 3,462 -44.1 5,331
--------------------------------------------------------------------------------
Financial income and -376 -628 -40.1 -781
expenses
--------------------------------------------------------------------------------
Profit before tax 1,558 2,834 -45.0 4,550
--------------------------------------------------------------------------------
Income tax -499 -794 -37.1 -1,292
--------------------------------------------------------------------------------
PROFIT FOR THE REVIEW 1,059 2,040 -48.1 3,258
PERIOD
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Equity holders of the 1,077 2,040 -47.2 3,262
parent company
--------------------------------------------------------------------------------
Non-controlling interests -18 0 -4
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, EUR 1,000
Profit for the review period 1,059 2,040 -48.1 3,258
---------------------------------------------------------------------
Other comprehensive income
---------------------------------------------------------------------
Change in translation difference 24 11 128.0 40
---------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,083 2,050 -46.3 3,298
---------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, EUR 1,000
ASSETS 30.9.2011 30.9.2010 31.12.2010
--------------------------------------------------------------------------------
NON-CURRENT ASSETS
--------------------------------------------------------------------------------
Goodwill 23,647 23,647 23,647
--------------------------------------------------------------------------------
Other intangible assets 5,266 5,188 5,580
--------------------------------------------------------------------------------
Property, plant and equipment 3,595 4,423 4,210
--------------------------------------------------------------------------------
Deferred tax assets 33 87 108
--------------------------------------------------------------------------------
Available-for-sale investments 110 110 110
--------------------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 32,652 33,455 33,655
--------------------------------------------------------------------------------
CURRENT ASSETS
--------------------------------------------------------------------------------
Trade and other receivables 22,291 23,200 21,811
--------------------------------------------------------------------------------
Cash and cash equivalents 822 1,317 1,226
--------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 23,112 24,517 23,037
--------------------------------------------------------------------------------
TOTAL ASSETS 55,764 57,972 56,693
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES 30.9.2011 30.9.2010 31.12.2010
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
Share capital 585 585 585
--------------------------------------------------------------------------------
Share premium reserve 219 219 219
--------------------------------------------------------------------------------
Invested non-restricted equity fund 20,343 20,346 20,343
--------------------------------------------------------------------------------
Retained earnings 7,131 3,788 3,824
--------------------------------------------------------------------------------
Profit for the period 1,077 2,040 3,262
--------------------------------------------------------------------------------
Equity attributable to equity holders of the 29,355 26,978 28,234
parent
--------------------------------------------------------------------------------
Non-controlling interests 216 0 224
--------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 29,571 26,978 28,457
--------------------------------------------------------------------------------
LIABILITIES
--------------------------------------------------------------------------------
Non-current liabilities 5,399 8,981 7,934
--------------------------------------------------------------------------------
Current liabilities 20,794 22,012 20,301
--------------------------------------------------------------------------------
TOTAL LIABILITIES 26,193 30,994 28,235
--------------------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 55,764 57,972 56,693
--------------------------------------------------------------------------------
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: Treasury shares
F: Translation difference
G: Retained earnings
H: Total equity attributable to equity holders of the parent
I: Non-controlling interests
J: Total equity
Equity attributable to equity holders of the parent
-----------------------------------------------------------------------------
A B C D E F G H I J
-----------------------------------------------------------------------------
Shareholders' 373 219 0 14,808 0 -11 3,789 19,177 19,177
equity at 1
January 2010
-----------------------------------------------------------------------------
Profit for 2,040 2,040 2,040
the period
-----------------------------------------------------------------------------
Other
comprehensive
income:
-----------------------------------------------------------------------------
Change in 11 11 11
translation
difference
-----------------------------------------------------------------------------
Transactions with
shareholders
-----------------------------------------------------------------------------
Rights issue 213 5,538 5,751 5,751
-----------------------------------------------------------------------------
Shareholders' 585 219 20,346 0 5,829 26,978 26,978
equity at 30
September 2010
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Shareholders' 585 219 0 20,343 0 29 7,058 28,234 224 28,457
equity at 1
January 2011
-----------------------------------------------------------------------------
Profit for the 1,077 1,077 -18 1,059
review period
-----------------------------------------------------------------------------
Other
comprehensive
income:
-----------------------------------------------------------------------------
Change in 24 24 24
translation
difference
-----------------------------------------------------------------------------
Transactions
with shareholders:
-----------------------------------------------------------------------------
Rights issue 50 50 50
-----------------------------------------------------------------------------
Share-based 20 20 20
remuneration
-----------------------------------------------------------------------------
Management -50 -50 10 -40
incentive plan
-----------------------------------------------------------------------------
Shareholders' 585 219 0 20,343 53 8,155 29,355 216 29,571
equity at 30
September 2011
-----------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
1.1.- 1.1.- 1.1.-
30.9.2011 30.9.20 31.12.20
10 10
--------------------------------------------------------------------------------
Cash flow from operating activities
--------------------------------------------------------------------------------
Profit for the period 1,058 2,040 3,258
--------------------------------------------------------------------------------
Adjustments to cash flow from operating activities
--------------------------------------------------------------------------------
Tax 499 794 1,292
--------------------------------------------------------------------------------
Depreciation and impairment 3,072 2,434 3,407
--------------------------------------------------------------------------------
Financial income and expenses 376 628 781
--------------------------------------------------------------------------------
Other adjustments -74 -45 -14
--------------------------------------------------------------------------------
Cash flow from operating activities before change 4,932 5,851 8,724
in working capital
--------------------------------------------------------------------------------
Change in working capital -1,637 -3,535 -2,077
--------------------------------------------------------------------------------
Interest received 2 6 4
--------------------------------------------------------------------------------
Interest paid -390 -721 -875
--------------------------------------------------------------------------------
Tax paid -1,060 -754 -1,076
--------------------------------------------------------------------------------
Net cash flow from operating activities 1,848 847 4,700
--------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------
Investments in tangible and intangible assets -1,379 -2,331 -2,545
--------------------------------------------------------------------------------
Dividends received 8 4 4
--------------------------------------------------------------------------------
Acquisition of subsidiaries 0 -1,052 -1,052
--------------------------------------------------------------------------------
Net cash flow from investment activities -1,371 -3,379 -3,594
--------------------------------------------------------------------------------
Net cash flow before financing 477 -2,532 1,106
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Increase in long-term borrowings 0 0 0
--------------------------------------------------------------------------------
Repayment of long-term borrowings -1,919 -1,996 -2,872
--------------------------------------------------------------------------------
Increase in short-term borrowings 2,071 2,681 223
--------------------------------------------------------------------------------
Repayment of short-term borrowings -1,043 -4,765 -5,353
--------------------------------------------------------------------------------
Proceeds from share issues 10 5,621 5,845
--------------------------------------------------------------------------------
Net cash flow from financing activities -881 1,571 -2,158
--------------------------------------------------------------------------------
Change in cash and cash equivalents -404 -961 -1,052
--------------------------------------------------------------------------------
Liquid assets at the beginning of the period 1,226 2,278 2,278
--------------------------------------------------------------------------------
Liquid assets at the end of the period 822 1,317 1,226
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT, QUARTERLY, EUR 1,000
Q3/2011 Q2/2011 Q1/2011 Q4/2010 Q3/2010
1.7.-30. 1.4.-30. 1.1.-31. 1.10.-31. 1.7.-30.
9.11 6.11 3.11 12.10 9.10
--------------------------------------------------------------------------------
Turnover 18,916 21,817 21,138 23,157 19,360
--------------------------------------------------------------------------------
Operating expenses -18,088 -21,179 20,768 -21,288 -17,706
--------------------------------------------------------------------------------
OPERATING PROFIT 829 638 369 1,869 1,653
--------------------------------------------------------------------------------
Financial income and expenses -167 -157 -52 -153 -103
--------------------------------------------------------------------------------
Profit before tax 661 481 318 1,716 1,551
--------------------------------------------------------------------------------
Income tax 407 -140 -107 -498 -435
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 414 340 211 1,223 1,115
--------------------------------------------------------------------------------
SEGMENT REPORTING
1.1.- 1.1.-30.9.201 1.1.-31.12.20
30.9.2011 0 10
--------------------------------------------------------------------------------
Turnover by segment
--------------------------------------------------------------------------------
Mobile Solutions 52,765 52,448 71,160
--------------------------------------------------------------------------------
Business Solutions 10,511 11,818 15,475
--------------------------------------------------------------------------------
Eliminations -1,405 -2,479 -1,691
--------------------------------------------------------------------------------
Total turnover 61,871 61,787 84,944
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit by segment
--------------------------------------------------------------------------------
Mobile Solutions 4,597 6,054 8,891
--------------------------------------------------------------------------------
Business Solutions -526 -655 -838
--------------------------------------------------------------------------------
Group administration expenses -2,137 -1,937 -2,722
--------------------------------------------------------------------------------
Total operating profit 1,934 3,462 5,331
--------------------------------------------------------------------------------
Operating profit, per cent of 3.1 5.6 6.3
turnover
--------------------------------------------------------------------------------
Financial income and expenses -376 -628 -781
--------------------------------------------------------------------------------
Profit before tax 1,558 2,834 4,550
--------------------------------------------------------------------------------
Tax -499 -794 -1,292
--------------------------------------------------------------------------------
PROFIT FOR THE PERIOD 1,059 2,040 3,258
--------------------------------------------------------------------------------
CHANGES IN FIXED ASSETS, EUR 1,000
Goodwi Intang Property Availab Total
ll ible , plant le-for-
assets and sale
equipme investm
nt ents
--------------------------------------------------------------------------------
Carrying amount at 1 January 2010 22,826 5,061 3,942 110 31,939
--------------------------------------------------------------------------------
Additions 1,561 1,493 3,054
--------------------------------------------------------------------------------
Additions from corporate acquisitions 821 821
--------------------------------------------------------------------------------
Disposals -11 -11
--------------------------------------------------------------------------------
Depreciation for the period -1,434 -1,000 -2,434
--------------------------------------------------------------------------------
Carrying amount at 30 September 2010 23,647 5,188 4,423 110 33,368
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Carrying amount at 1 January 2011 23,647 5,580 4,210 110 33,547
--------------------------------------------------------------------------------
Additions 1,575 568 2,143
--------------------------------------------------------------------------------
Disposals
--------------------------------------------------------------------------------
Depreciation for the period -1,889 -1,183 -3,072
--------------------------------------------------------------------------------
Carrying amount at 30 September 2011 23,647 5,266 3,595 110 32,619
--------------------------------------------------------------------------------
FINANCIAL RATIOS
1.1.-30.9.201 1.1.-30.9.201 1.1.-31.12.2
1 0 010
--------------------------------------------------------------------------------
Earnings per share, diluted, EUR 0.07 0.16 0.25
--------------------------------------------------------------------------------
Earnings per share, EUR 0.07 0.16 0.25
--------------------------------------------------------------------------------
Equity per share, EUR 1.94 1.84 1.87
--------------------------------------------------------------------------------
Operating cash flow per share, 0.12 0.07 0.36
diluted, EUR
--------------------------------------------------------------------------------
Return on investment, per cent 6.8 11.9 14.1
--------------------------------------------------------------------------------
Return on equity, per cent 4.9 11.8 13.7
--------------------------------------------------------------------------------
Operating profit / turnover, per 3.1 5.6 6.3
cent
--------------------------------------------------------------------------------
Net gearing, per cent 34.7 52.6 36.6
--------------------------------------------------------------------------------
Equity ratio, per cent 53.2 46.5 50.2
--------------------------------------------------------------------------------
OTHER INFORMATION
1.1.- 1.1.- 1.1.-
30.9.2011 30.9.2010 31.12.2010
-------------------------------------------------------------------------------
PERSONNEL 1,135 1,115 1,120
Number of employees, average
-------------------------------------------------------------------------------
Number of employees, at the end of the period 1,110 1,134 1,138
-------------------------------------------------------------------------------
COMMITMENTS, EUR 1,000 30.9.2011 30.9.2010 31.12.2010
-------------------------------------------------------------------------------
Collateral for own commitments
-------------------------------------------------------------------------------
Corporate mortgages 9,900 9,900 9,900
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Leasing and other rental commitments
-------------------------------------------------------------------------------
Falling due within 1 year 4,676 4,845 4,620
-------------------------------------------------------------------------------
Falling due within 1-5 years 3,355 6,478 5,690
-------------------------------------------------------------------------------
Falling due after 5 years 0 0 0
-------------------------------------------------------------------------------
Total 8,031 11,323 10,310
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Nominal value of interest rate swap agreement
-------------------------------------------------------------------------------
Falling due within 1 year 0 0 0
-------------------------------------------------------------------------------
Falling due within 1-5 years 4,017 4,893 4,893
-------------------------------------------------------------------------------
Falling due after 5 years 0 0 0
-------------------------------------------------------------------------------
Total 4,017 4,893 4,893
-------------------------------------------------------------------------------
Fair value -58 -125 -54
-------------------------------------------------------------------------------
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 (ROI) = (profit before taxes + interest + other financial
expenses) / (balance sheet total − non-interest-bearing liabilities, average) x
100
Return on equity (ROE) = net profit / shareholders' equity, average x 100
Gearing = (interest-bearing liabilities - liquid assets) / shareholders' equity
x 100
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