PRELIMINARY IFRS QUARTERLY COMPARATIVE DATA FOR 2004
SysOpen Digia Plc STOCK EXCHANGE RELEASE 31 March 2005 at 12.30 pm
PRELIMINARY IFRS QUARTERLY COMPARATIVE DATA FOR 2004
In this stock exchange bulletin, SysOpen Digia Plc presents its preliminary IFRS
(International Financial Reporting Standards) comparative data for the first,
second and third quarter of the financial year 2004. In its stock exchange
bulleting of 11 February 2005, the company presented its opening IFRS balance
sheets for 1 January 2004 and 31 December 2004, comparative data for 2004 and the
key effects of the shift from the Finnish Accounting Standards (FAS) to IFRS.
SysOpen Plc will apply IFRS to its interim reports and financial statements for
2005. Segment data according to IAS 14 will be presented from the first quarter
of 2005.
This bulletin will show preliminary, quarterly comparative data for 2004 and the
final reconciliation statements required by IFRS 1 (First-Time Adoption).
The IFRS 1 First-Time Adoption standard and its allowances concerning mergers,
employee benefits and cumulative translation differences have been applied in the
adoption of IFRS. The company prepared the comparative data in compliance with
the most recent IFRS standards. The reference column below refers to additional
information presented in this bulletin after the tables, and ends with a summary
of the key IFRS-compliant accounting principles affecting SysOpen Digia Plc.
FAS-compliant income statement and balance sheet figures have been re-classified
to correspond to IFRS.
The data are based on unaudited figures.
Preliminary summary of IFRS effects on shareholders' equity on 1 January, EUR
1,000
1.1. 31.3. 30.6. 31.9. 31.12.
2004 2004 2004 2004 2004
Shareholders' equity held 11.279,6 9.315,3 9.722,9 9.902,8 10.531,1
by parent company
shareholders, FAS
IAS 12 Deferred tax -20,2 -6,2 -1,0 -5,4 -80,5
assets and liabilities
IAS 17 Lease liabilities - 12,2 5,7 10,9 16,3 -9,4
IAS 19 Employee benefits -214,0 -229,8 245,5 -261,3 0
IAS 38 Intangible assets 285,9 336,7 401,6 548,2 645,5
IAS 39 Financial 0 7,4 36,4 -5,4 229,8
instruments
Other IFRS effects 8,2 -7,1 -3,4 -28,8 -12,1
Shareholders' equity held 11.327,3 9.422,1 9.921,9 10.166,5 11.304,5
by parent company
shareholders, IFRS
Minority interest 153,3 112,6 105,7 110,6 121,7
Total shareholders' 11.480,6 9.534,7 10.027,6 10.277,1 11.426,2
equity
Preliminary IFRS 2004 quarterly comparative data
KEY FIGURES AND RATIOS, Q1/2004
FAS IFRS
Earnings per share, EUR 0,03 0,03
Earnings per share (diluted), EUR 0,03 0,03
Equity/share, EUR 1,01 1,02
Return on equity (ROE), % 10 11
Return on investment (ROI), % 13 13
Equity ratio, % 61 58
INCOME STATEMENT, Q1/2004
EUR 1,000
Refere FAS Change Preliminar
nce Q1/2004 y IFRS
Q1/2004
Turnover 6.459,7 0,0 6.459,7
Other operating income 24,7 0,0 24,7
Materials and services -250,3 0,0 -250,3
Depreciation and impairment a -203,5 -75,1 -278,6
Other operating expenses f,g,h -5.678,2 115,8 -5.562,4
Operating profit/loss 352,4 40,8 393,2
Financial income (net) c,e,f -25,0 -8,3 -33,3
Pre-tax profit 327,3 6,8 334,1
Direct tax b -55,4 15,6 -39,8
Minority interest -13,1 13,1 0,0
Net profit/loss 258,8 35,5 294,3
Allocation:
Parent company shareholders 245,7 35,5 281,2
Minority shareholders 13,1 0,0 13,1
Earnings per share, EUR 0,03 0,0 0,03
Earnings per share (diluted), 0,03 0,0 0,03
EUR
BALANCE SHEET, Q1/2004
EUR 1,000
Referen FAS IFRS Preliminar
ce 31.3.2004 change y IFRS
31.3.2004
Assets
Fixed and other non-current
assets
Intangible assets a 669,6 336,8 1.006,4
Tangible assets a,f 1.164,9 739,7 1.904,6
Financial assets a 916,0 -347,1 568,9
Deferred tax assets b 116,1 61,0 177,1
Total fixed and other 2.866,6 790,4 3.657,0
non-current assets
Current assets
Current receivables 5.935,0 0,0 5.935,0
Prepayments 239,8 0,0 239,8
Financial assets c 2.035,1 30,7 2.065,8
Cash and cash equivalents 6.142,3 0,0 6.142,3
Total current assets 14.352,2 30,7 14.382,9
Total assets 17.218,9 821,0 18.039,9
Shareholders' equity and
liabilities
Share capital 936,3 0,0 936,3
Issue premium fund 7.092,2 0,0 7.092,2
Treasury shares d 0,0 -606,2 -606,2
Fair value reserve b,c 0,0 -205,4 -205,4
Translation difference -1,1 -39,6 -40,7
Retained earnings/loss d,h 995,1 935,6 1.930,7
Net profit/loss a,b,c, 258,8 22,4 281,2
e,f,g
Translation difference 34,0 0,0 34,0
Shareholders' equity held by 9.315,3 106,8 9.422,1
parent company shareholders
Minority interest 112,6 0,0 112,6
Total shareholders' equity 9.427,9 106,8 9.534,7
Liabilities
Long-term, interest-bearing f 0,0 329,2 329,2
liabilities
Deferred tax liabilities b 0,0 80,6 80,6
Total long-term liabilities 0,0 409,8 409,8
Short-term liabilities f 7.791,0 304,4 8.095,4
Total short-term liabilities 7.791,0 304,4 8.095,4
Total liabilities 7.791,0 714,2 8.505,2
Shareholders' equity and 17.218,9 821,0 18.039,9
liabilities
KEY FIGURES AND RATIOS, Q1-Q2/2004
FAS IFRS
Earnings per share, EUR 0,07 0,08
Earnings per share (diluted), EUR 0,07 0,08
Equity/share, EUR 1,05 1,07
Return on equity (ROE), % 13 14
Return on investment (ROI), % 13 14
Equity ratio, % 73 70
INCOME STATEMENT, Q1-Q2/2004
EUR 1,000
Refe FAS Change Prelimin FAS Change Prelimin
renc Q2/2004 ary IFRS Q1-Q2/2004 ary IFRS
e Q2/2004 Q1-Q2/20
04
Turnover 6.551,5 0,0 6.551,5 13.011,2 0,0 13.011,2
Other a 53,2 0,0 53,2 77,9 0,0 77,9
operating
income
Materials and -262,9 0,0 -262,9 -513,2 0,0 -513,2
services
Depreciation a -246,0 -45,8 -291,8 -449,6 -120,8 -570,4
and
impairment
Other f,g, -5.738,0 85,0 -5.653,0 -11.416,2 200,8 -11.215,
operating h 4
expenses
Operating 357,7 39,2 396,9 710,1 80,0 790.2
profit/loss
Financial c,e, 23,4 -27,2 22,0 -1,7 -35,3 -37,0
income (net) f
Pre-tax 381,1 37,9 419,0 708,4 44,7 753,1
profit
Direct tax b 29,6 4,3 33,9 -25,9 20,0 -5,9
Minority -0,7 0,7 0,0 -13,8 13,8 0,0
interest
Net 410,0 42,9 452,9 668,7 78,5 747,2
profit/loss
Allocation:
Parent 410,0 42,2 452,2 668,7 64,7 733,4
company
shareholders
Minority 0,7 0,0 0,7 13,8 0,0 13,8
shareholders
Earnings per 0,04 0,1 0,5 0,07 0,1 0,08
share, EUR
Earnings per 0,04 0,1 0,5 0,07 0,1 0,08
share
(diluted),
EUR
BALANCE SHEET, Q2/2004
EUR 1,000
Referen FAS 30 IFRS Preliminar
ce June 2004 change y IFRS 30
June 2004
Assets
Fixed and other non-current
assets
Intangible assets a 1.400,4 393,0 1.793,4
Tangible assets a,f 1.110,5 689,2 1.799,7
Financial assets a 966,3 -347,1 619,2
Deferred tax assets b 108,2 31,6 139,8
Total fixed and other 3.585,3 766,8 4.352,1
non-current assets
Current assets
Current receivables 7.061,5 0,0 7.061,5
Prepayments 261,4 0,0 261,4
Financial assets c 2.032,2 1.692,6 3.724,8
Cash and cash equivalents 3.209,5 -1.600,0 1.609,5
Total current assets 12.564,6 92,6 12.657,2
Total assets 16.150,0 859,3 17.009,3
Shareholders' equity and
liabilities
Share capital 926,3 0,0 926,3
Issue premium fund 7.102,2 0,0 7.102,2
Treasury shares d 0,0 0,0 0,0
Fair value reserve b,c 0,0 -170,4 -170,4
Translation difference -1,1 -39,6 -40,7
Retained earnings/loss d,h 995,1 344,4 1.339,5
Net profit/loss a,b,c, 668,7 64,6 733,3
e,f,g
Translation difference 31,7 0,0 31,7
Shareholders' equity held by 9.722,9 199,0 9.921,9
parent company shareholders
Minority interest 105,7 0,0 105,7
Total shareholders' equity 9.828,6 199,0 10.027,6
Liabilities
Long-term, interest-bearing f 0,0 316,3 316,3
liabilities
Deferred tax liabilities b 0,0 83,2 83,2
Total long-term liabilities 0,0 399,5 399,5
Short-term liabilities f 6.321,4 260,8 6.582,2
Total short-term liabilities 6.321,4 260,8 6.582,2
Total liabilities 6.321,4 660,3 6.981,7
Shareholders' equity and 16.150,0 859,3 17.009,3
liabilities
KEY FIGURES AND RATIOS, Q1-Q3/2004
FAS IFRS
Earnings per share, EUR 0,10 0,11
Earnings per share (diluted), EUR 0,10 0,10
Equity/share, EUR 1,07 1,10
Return on equity (ROE), % 11 13
Return on investment (ROI), % 12 13
Equity ratio, % 74 71
INCOME STATEMENT, Q1-Q3/2004
EUR 1,000
Refere FAS Change Prelimin FAS Change Preliminar
nce Q3/2004 ary IFRS Q1-Q3/2004 y IFRS
Q3/2004 Q1-Q3/2004
Turnover 5.415,4 0,0 5.415,4 18.426,5 0,0 18.426,5
Other a 40,3 -22,8 17,5 118,2 -22,8 95,4
operating
income
Materials -221,6 0,0 -221,6 -734,8 0,0 -734,8
and
services
Depreciatio a -235,5 -70,9 -306,4 -685,1 -191,7 -876,8
n and
impairment
Other f,g,h -5.004,4 139,6 -4.864,8 -16.420,7 340,5 -16.080,2
operating
expenses
Operating -5,9 45,9 40,0 704,2 126,0 830,2
profit/loss
Financial c,e,f 285,3 -9,8 275,5 283,6 -45,1 238,5
income
(net)
Extraordina -46,4 46,4 0,0 -46,4 46,4 0,0
ry items
Pre-tax 233,0 82,6 315,6 941,4 80,8 1.068,6
profit
Direct tax b -48,1 -7,9 -56,0 -74,0 12,0 -62,0
Minority -4,9 4,9 0,0 -18,7 46,4 0,0
interest
Net 180,0 79,6 259,5 848,7 139,3 1.006,7
profit/loss
Allocation:
Parent 180,0 88,5 254,6 867,4 120,6 988,0
company
shareholder
s
Minority 4,9 0,0 4,9 18,7 0,0 18,7
shareholder
s
Earnings 0,02 0,1 0,3 0,09 0,2 0,11
per share,
EUR
Earnings 0,02 0,0 0,2 0,09 0,1 0,10
per share
(diluted),
EUR
*Extraordinary expenses are included in other operating expenses.
BALANCE SHEET, Q3/2004
EUR 1,000
Referen FAS 30 IFRS Preliminar
ce Sept. 2004 change y IFRS 30
Sept. 2004
Assets
Fixed and other non-current
assets
Intangible assets a 1.717,4 526,3 2.243,7
Tangible assets a,f 1.056,4 748,6 1.805,0
Financial assets a 934,7 -347,1 587,6
Deferred tax assets b 87,9 59,3 147,2
Total fixed and other 3.796,5 987,0 4.783,5
non-current assets
Current assets
Current receivables 7.472,5 0,0 7.472,5
Prepayments 386,9 0,0 386,9
Financial assets c 2.319,8 44,6 2.364,4
Cash and cash equivalents 2.353,2 0,0 2.353,2
Total current assets 12.532,5 44,6 12.577,0
Total assets 16.328,9 1.031,6 17.360,5
Shareholders' equity and
liabilities
Share capital 926,3 0,0 926,3
Issue premium fund 7.102,2 0,0 7.102,2
Treasury shares d 0,0 0,0 0,0
Fair value reserve b,c 0,0 -202,4 -202,4
Translation difference -1,1 -39,6 -40,7
Retained earnings/loss d,h 995,1 366,4 1.361,5
Net profit/loss a,b,c, 848,6 139,4 988,0
e,f,g
Translation difference 31,7 0,0 31,7
Shareholders' equity held by 9.902,8 263,7 10.166,5
parent company shareholders
Minority interest 110,6 0,0 110,6
Total shareholders' equity 10.013,4 263,7 10.277,1
Liabilities
Long-term, interest-bearing f 0,0 402,2 402,2
liabilities
Deferred tax liabilities b 0,0 95,2 95,2
Total long-term liabilities 0,0 497,4 497,4
Short-term liabilities f 6.315,5 270,5 6.586,0
Total short-term liabilities 6.315,5 270,5 6.586,0
Total liabilities 6.315,5 767,9 7.083.4
Shareholders' equity and 16.328,9 1.031.6,0 17.360,5
liabilities
KEY FIGURES AND RATIOS, 31 DECEMBER 2004
FAS IFRS
Earnings per share, EUR 0,23 0,25
Earnings per share (diluted), EUR 0,23 0,25
Equity/share, EUR 1,14 1,23
Return on equity (ROE), % 20 21
Return on investment (ROI), % 23 24
Equity ratio, % 70 70
INCOME STATEMENT
EUR 1,000
Refere FAS 2004 Change Preliminar
nce y IFRS
2004
Turnover 26.173,7 0,0 26.173,7
Other operating income a 210,2 -22,7 187,5
Materials and services -934,2 0,0 -934,2
Depreciation and impairment a -933,7 -252,1 -1.185,8
* Other operating expenses f,g,h -22.694,3 810,8 -21.883,5
Operating profit/loss 1.821,7 536,0 2.357,7
Financial income (net) c,e,f 595,2 -175,7 419,5
Pre-tax profit 2.416,9 360,3 2.777,2
Direct tax b -346,9 -60,3 -407,2
Minority interest -29,8 29,8 0,0
Net profit/loss 2.040,2 329,9 2.370,1
Allocation:
Parent company shareholders 2.040,2 300,1 2.340,3
Minority shareholders 29,8 0,0 29,8
Earnings per share, EUR 0,23 0,02 0,25
Earnings per share (diluted), 0,23 0,02 0,25
EUR
*Extraordinary expenses are included in other operating expenses.
Preliminary IFRS 2004 comparative data
BALANCE SHEET
EUR 1,000
Referen FAS 31 IFRS Preliminar
ce Dec. 2004 change y IFRS 31
Dec. 2004
Assets
Fixed and other non-current
assets
Intangible assets a 1.611,4 633,4 2.244,8
Tangible assets a,f 961,1 736,8 1.697,9
Financial assets a 932,7 -347,1 585,6
Deferred tax assets b 63,4 -60,7 2,7
Total fixed and other 3.568,6 962,4 4.531,0
non-current assets
Current assets
Current receivables 10.149,0 0,0 10.149,0
Financial assets c 2.541,8 358,6 2.900,4
Cash and cash equivalents 3.008,4 0,0 3.008,4
Total current assets 15.699,2 358,6 16.057,8
Total assets 19.267,8 1.321,0 20.588,8
Shareholders' equity and
liabilities
Share capital 926,3 0,0 926,3
Issue premium fund 7.102,2 0,0 7.102,2
Treasury shares d 0,0 0,0 0,0
Fair value reserve b,c 0,0 84,9 84,9
Translation difference -1,0 0,0 -1,0
Retained earnings/loss d,h 439,3 388,4 827,7
Net profit/loss a,b,c, 2.040,2 300,1 2.340,3
e,f,g
Translation difference 24,1 0,0 24,1
Shareholders' equity held by 10.531,1 773,4 11.304,5
parent company shareholders
Minority interest 121,7 0,0 121,7
Total shareholders' equity 10.652,8 773,4 11.426,2
Liabilities
Long-term, interest-bearing f 0,0 133,5 133,5
liabilities
Deferred tax liabilities b 0,0 148,5 148,5
Total long-term liabilities 0,0 282,0 282,0
Short-term liabilities f 8.615,0 265,6 8.880,6
Total short-term liabilities 8.615,0 265,6 8.880,6
Total liabilities 8.615,0 547,6 9.162,6
Shareholders' equity and 19.267,8 1.321,0 20.588,8
liabilities
Preliminary statement on changes in shareholders' equity
EUR 1,000
Share Issue Transl Fair Treas Retained Minori Total
capita premium ation value ury earnings ty sharehol
l fund differ reserv share /loss intere ders'
ences e s st equity
FAS 936,3 7.092,2 32,9 0,0 0,0 3.218,2 153,3 11.432,9
shareholder
s' equity
31 Dec.
2003
IFRS 936,3 7.092,2 -6,7 -242,1 -606, 4.153,8 153,3 11.480,6
shareholder 2
s´ equity 1
Jan. 2004
Share -10,0 10,0 0,0
capital
Dividend -2.223,1 -2.223,1
payment
Cancellatio 606,2 -606,2 0,0
n of
treasury
shares
Financial 36,7 36,7
assets
Other -44,7 -44,7
Net 281,2 13,1 294,3
profit/loss
Income and -10,0 10,0 0,0 36,7 606,2 2.548,2 -31,6 1.936,8
expenses
recognised
for the
period
IFRS 926,3 7.102,2 -6,7 -205,4 0,0 1.605,7 121,7 9.543,8
shareholder
s´ equity
31.3.2004
Dividend 0,0
payment
Cancellatio 0,0
n of
treasury
shares
Financial 35,0 35,0
assets
Other -2,4 15,0 -16,7 -4,1
Net 452,2 0,7 452,9
profit/loss
Income and 0,0 0,0 -2,4 35,0 0,0 467,2 -16,0 483,8
expenses
recognised
for the
period
IFRS 926,3 7.102,2 -9,0 -170,4 0,0 2.072,8 105,7 10.027,6
shareholder
s´ equity
30 June
2004
Dividend
payment
Cancellatio 0,0
n of
treasury
shares
Financial -32,0 -32,0
assets
Other 22,0 22,0
Net 254,6 4,9 259,5
profit/loss
Income and 0,0 0,0 0,0 -32,0 0,0 276,6 4,9 249,5
expenses
recognised
for the
period
IFRS 926,3 7.102,2 -9,0 -202,4 0,0 2.349,4 110,6 10.277,1
shareholder
s´ equity
30 Sept.
2004
Dividend -555,8 -555,8
payment
Cancellatio 0,0
n of
treasury
shares
Financial 287,4 287,4
assets
Other 32,1 22,0 54,1
Net 1.352,3 11,1 1.363,4
profit/loss
Income and 0,0 0,0 32,1 287,4 0,0 818,5 11,1 1.149,1
expenses
recognised
for the
period
IFRS 926,3 7.102,2 23,1 85,0 0,0 3.167,9 121,7 11.426,2
shareholder
s´ equity
31 Dec.
2004
CASH FLOW STATEMENT
Since there seem to be no major differences between IFRS-compliant and FAS-
compliant cash flow statements, cash flow statements are not presented here.
Below are the references to the opening IFRS balance sheet reconciliation
statement and the 2004 comparative data:
a) Intangible assets are recognised and measured as required by IAS 38 and IFRS
3. Tangible assets and long-term financial assets are treated as required by IAS
16. The mutual real estate company shares included in long-term financial assets
are measured as required by IAS 31.
b) Deferred taxes, as required by IAS 12 Income Taxes.
c) Financial instruments under current assets are measured at fair value as
required by IAS 39.
d) Treasury shares are deducted from shareholders' equity as required by IAS 32.
e) Foreign currency changes, as required by IAS 21.
f) Finance leases, as required by IAS 17.
g) TEL defined contribution pension, as required by IAS 19.
h) Share-based payment (stock options), as required by IFRS 2.
SUMMARY OF THE KEY IFRS-COMPLIANT PRINCIPLES AFFECTING SYSOPEN PLC
SysOpen will prepare its financial statements for 2005 in compliance with IFRS
(International Financial Reporting Standards) and adjust the FAS-compliant
comparative data for 2004 to correspond to IFRS.
TANGIBLE ASSETS
Tangible assets are stated at historical cost less depreciation. Depreciation is
based on the asset's estimated useful life.
INTANGIBLE ASSETS
Intangible assets include software licences recognised at cost and amortised on a
straight-line basis over five years.
Intangible assets include product-development projects, provided they meet the
criteria set for intangible assets and the amortisation period was still running
on 1 January 2004. Materials and services and wages, including social expenses,
are recognised as expenses as incurred. When an asset is ready for use, it will
be amortised over its useful life. The value of product-development projects came
to EUR 286 thousand on 1 January 2004.
Consolidated goodwill and goodwill are included in intangible assets. Instead of
amortising goodwill amounts, they are subject to an impairment test on the
balance sheet date.
IMPAIRMENT
An impairment test should be performed yearly for tangible and intangible assets
in order to assess whether there is an indication of impairment. Whenever an
indication of impairment exists, the asset's carrying value is compared with its
recoverable amount. An impairment loss is recognised for the amount by which the
carrying amount of the asset exceeds its recoverable amount. Impairment did not
occur for the opening balance sheet nor for the financial year 2004.
FINANCIAL ASSETS
Financial assets are measured at fair value and the appreciation or depreciation
is entered under shareholders' equity.
INCOME RECOGNITION
Work performed for contracts is recognised as income using the percentage-of-
completion method, and maintenance fees over the contract period. Construction
contracts are recognised as income using the percentage-of-completion method.
Percentage of completion is measured on the basis of the costs incurred and the
estimated total costs.
PENSIONS
Pensions are funded through payments to pension insurance companies. Based on the
defined contribution plan, pension contributions are included in personnel
expenses under the income statement and constitute net periodic costs for the
year in which they are due. Under the defined benefit plan, pensions are based on
periodic actuarial calculations.
The value of defined benefit pension plans came to EUR 214 thousand on 1 January
2004.
Based on changes approved by the Finnish authorities in December 2004, the
disability pension portion included in the TEL pension contribution is treated
under the defined contribution plan on the IFRS balance sheet of 31 December
2004, whereas it is treated under the defined benefit plan on the balance sheet
on the IFRS adoption date. The effect of this change on the pre-tax profit for
the period is EUR 214 thousand.
STOCK OPTIONS
SysOpen Plc applies IFRS 2, Share-Based Payment, to its stock options granted
after 7 November 2002 and whose subscription period has not begun before 1
January 2005. Such stock options are measured at fair value on the date of issue
and recognised as expenses during the period they are exercised.
PROVISIONS
SysOpen Plc recognises provisions when the Group has a legal or constructive
obligation as a result of past events, it is probable that an outflow of
resources will be required to settle the obligation, and a reliable estimate of
the amount can be made.
TAXES
Income tax expenses include current tax, adjusted tax for previous years and
deferred tax. Deferred tax assets and liabilities are calculated based on
differences between taxable values and their IFRS-compliant book values, using a
tax rate determined by the balance sheet date. Modification of the tax rate has
been taken into account from June 2004.
FOR FURTHER INFORMATION, PLEASE CONTACT
Kristiina Simola, Finance Director, Tel. +358 424 2020 583,
kristiina.simola@sysopen.fi
DISTRIBUTION
Helsinki Exchanges
Key media