SYSOPEN DIGIA PLC'S INTERIM REPORT FOR 1 JANUARY-30 JUNE 2006 (IFRS)
SysOpen Digia Plc STOCK EXCHANGE RELEASE 3 August 2006 at 9:30 hrs
SYSOPEN DIGIA PLC'S INTERIM REPORT FOR 1 JANUARY-30 JUNE 2006 (IFRS)
STRONG GROWTH STRATEGY LIFTS SYSOPEN DIGIA'S TURNOVER AND OPERATING PROFIT
Key figures
- SysOpen Digia's aggressive growth strategy has been implemented according to
plan, and the Group structure is to be streamlined into clear focus areas
- Turnover of the smartphone business grew by 37 per cent in the review period
- Reported turnover of the Integration Division grew by 33 per cent
- The company's reported operating profit and pro-forma operating profit
essentially improved year on year despite strong growth
- The company's turnover in the third quarter is estimated to significantly
exceed the previous year's corresponding turnover
- In respect of 2006, the company trusts that turnover and profitability will
significantly exceed the 2005 level
- The Group profitability is estimated to surpass that of the first half
- The total growth in turnover is estimated to be more than 32 per cent, up to
EUR 80-85 million, and operative profitability is estimated to be 8-10 per cent.
January-June 2006
- Turnover EUR 36.7 million (EUR 27.2 million 1-6/2005)
- EBIT EUR 2.6 million (EUR 0.6 million 1-6/2005)
- Profitability (EBIT percentage): 7.2 per cent (2.3 per cent 1-6/2005)
- Earnings per share: EUR 0.09 (EUR 0.02 1-6/2005)
April-June 2006
- Turnover EUR 19.8 million (EUR 18.9 million Q2 2005)
- EBIT EUR 1.0 million (EUR -0.3 million Q2 2005)
- Profitability (EBIT percentage): 5.1 per cent (-1.4 per cent Q2 2005)
- Earnings per share: EUR 0.03 (EUR -0.02 Q2 2005)
CORPORATE COMMUNICATIONS
A briefing for analysts and the media on the interim financial report will be
held on Thursday, 3 August 2006, at 11.00 am in the Paviljonki Room at Scandic
Hotel Simonkenttä, address Simonkatu 9, Helsinki. All are welcome.
CEO'S REVIEW
During the first half of 2006, the Group's turnover increased strongly, with a
growth of 34.7 per cent year on year. In the review period, the turnover of the
smartphone business grew by 37 per cent, and that of the integration business by
33 per cent year on year. The Group's turnover improved by 315 per cent year on
year. Operative profit is expected to improve during the rest of the year 2006.
Net gearing was 77 per cent and equity ratio 41 per cent. Diluted earnings per
share stood at EUR 0.09.
SysOpen Digia sees a clear demand in the market for a modern, efficient, agile
and comprehensive ICT partner. SysOpen Digia's primary goal is to continue
increasing the company's business operations in a profitable way. Growth is
pursued organically and through business acquisitions. In addition to growth,
efforts are made to keep profitability at a good level.
Significant growth, which has been set as a target, will be achieved through the
development of new services and products, an active business acquisition
strategy, and active participation in the outsourcing market of ICT systems and
product development. The company aspires to gain a powerful position among large
international and Nordic specialised ICT companies, being a modern and agile
participant in this field.
International growth is based on a strong position in the domestic market.
Sufficient size and steady business operations enable a strong international
growth so that the risks of individual projects remain at a manageable level.
In accordance with its strong growth strategy, SysOpen Digia implemented two
corporate transactions in the second quarter. The acquisitions of Sentera Plc and
Samstock Oy will provide extremely significant new customers in finance,
commerce, services and industry, and augment a strong, profitable range of
products and related continuous services. The acquisition of Samstock will
substantially increase the number of SysOpen Digia's financial customers and
provide a good growth path for Nordic projects and partnerships. In addition to a
strong position in the commercial and industrial value chain, the acquisition of
Sentera will provide significantly more expertise in wireless solutions in
enterprise systems and mobile integration, to be utilised throughout the Group.
With the acquired business operations, SysOpen Digia will considerably strengthen
its position in these target markets in Finland and nearby areas. In addition,
the company also has several ongoing projects in Finland and throughout the
world, activated through its business partnerships. The acquisitions also
increased the company's turnover and number of employees in accordance with the
growth targets for 2006.
SysOpen Digia will streamline its corporate structure to correspond with the
market segments in line with the strategy, with the objective of profitably
increasing organic growth in Finland and nearby areas. SysOpen Digia will
concentrate especially on three strong market segments for the Group: 1)
Telecommunications (550 employees), 2) Finance and Services (300 employees), and
3) Trade and Industry (250 employees). SysOpen Digia's internationally renowned
expertise in wireless solutions, including smartphone integration, mobile
integration for enterprise systems, multi-channel systems, and consulting and
architecture services, will be built into a strategic resource for all vertical
business operations. The task of each business area is to develop its operations,
to ensure the positive development of its profitability, and to growth
organically. With respect to financial reporting, the above segment division will
be adopted in connection with third-quarter reporting.
In the second quarter, the company's business operations developed as expected.
The turnover of the smartphone business weakened, as predicted in the first-
quarter report. In connection with the reorganisation, the smartphone business
will be integrated with the operator business to form a telecommunications
business in order to combine a comprehensive solution offering with the synergies
gained through integration in accordance with the value chain of the market
segment in question. The turnover and profitability of the integration business
improved significantly year on year on the second-quarter. In connection with the
reorganisation, the integration business will be divided into Finance and
Services, and Trade and Industry business operations.
In late 2006, SysOpen Digia will seek organic growth by concentrating especially
on telecommunications, finance and services, and trade and industry. The key
factors in common with their offering will be wireless solutions and the mobile
integration of enterprise systems. During the third quarter, the integration of
the acquired business operations will be completed according to plan alongside
the streamlined Group structure. The objective of the reorganisation is to boost
the Group's organic growth in all business operations, to achieve the desired
level of profitability, to increase preparedness in the launch of international
operations, and to continue growth strategy implementation in the next few years.
The company's turnover in the third quarter is estimated to exceed significantly
the previous year's corresponding turnover. The company expects its full-year
turnover and profitability to improve markedly from 2005 levels and the Group
profitability is estimated to surpass that of the first half. Total growth in
turnover is estimated to be more than 32 per cent, up to EUR 80-85 million, and
operative profitability for the same period is estimated to be 8-10 per cent.
SysOpen Digia Plc's second-quarter interim financial report 2006 (IFRS)
CONSOLIDATED KEY FIGURES
4-6/20 4-6/ Change 1-6/20 1-6/ Change 2005
06 2005 % 06 2005 %
Turnover 19,760 18,901 5% 36,686 27,241 35% 60,526
EBIT before 1,015 1,614 -37% 2,648 2,516 5% 6,024
structuring costs
- relative to turnover 5% 9% 7% 9% 10%
Profit for the period 1,015 -264 2,648 638 315% 4,229
- relative to turnover 5% -1% 7% 2% 7%
Profit for the period 485 -414 1,647 296 456% 2,355
- relative to turnover 2% -2% 4% 1% 4%
Return on equity, % 3% -3% 6% 2% 5%
Return on investment, 5% -1% 6% 2% 6%
%
Interest-bearing 62,291 41,183 51% 62,291 41,183 51% 26,055
liabilities
Cash and cash 16,334 25,554 -36% 16,334 25,554 -36% 12,326
equivalents
Net gearing, % 77% 32% 77% 32% 26%
Equity ratio, % 41% 44% 41% 44% 56%
Earnings per share 0.03 -0.02 0.09 0.02 350% 0.14
(EUR), undiluted
Earnings per share 0.02 -0.02 0.08 0.02 350% 0.14
(EUR), diluted
Reporting
At the beginning of 2005, SysOpen Digia Plc replaced the Finnish Accounting
Standards (FAS) with the International Financial Reporting Standards (IFRS) in
the Group's financial reporting.
SysOpen Digia Plc's consolidated financial statements have included SysOpen Digia
Financial Software Oy (formerly Samstock Oy) as of 1 May 2006 and Sentera Plc as
of 1 June 2006.
SUMMARY OF BUSINESS DIVISIONS
Smartphone business
SysOpen Digia Plc's smartphone division is one of the world's largest independent
suppliers of smartphone software integration services and solutions based on open
operating systems. The smartphone business covers the design of software and
technologies for mobile phones and their versatile use, as well as the related
training services, product business and usability service. Contract engineering
services account for the lion's share of turnover. In the smartphone business,
the technology focus is on Symbian, Linux and Java-based software development.
The turnover of the smartphone business during the period grew by 37 per cent
year on year. In the reporting period, the smartphone business's operative
profitability fell behind the long-term target level due to shorter second
quarter in terms of invoicing days, delays in the start of large customer
projects and increased project volatility. Correspondingly, the market at the end
of the period was more active than predicted, and new projects and customer
relationships were secured and launched.
During the second quarter of 2006, the smartphone business developed smartphone
variants for two international operators, and their implementation continues. The
company also further develops its total offering with selected semiconductor and
ODM partners in order to reinforce its position as one of the market leaders in
contract engineering services.
In the second quarter, the company announced that it has entered into a global
alliance agreement with the Japan-based Kanrikogaku Kenkyusho (K3) to strengthen
collaboration in the mobile software business. As a result of this agreement,
SysOpen Digia and Kanrikogaku Kenkyusho will complement each other's offering in
contract engineering services, carry and support each other's products, and
together organise training courses for the Japanese and global markets.
Integration business
Services provided by the integration business cover the entire life-span of
companies' and organisations' information system projects. Turnover is primarily
generated by application and integration services, and solution provider
services, as well as maintenance and support services. These are supported by
architecture services, method services, application outsourcing and ICT
consulting for management.
Reported turnover of the integration business grew by 33 per cent year on year.
During the second quarter of 2006, the integration business's turnover was higher
than expected, its profitability increasing markedly compared with the second
quarter of 2005. The offering of customer-specific information system services
was developed, especially with the acquisition of Samstock Oy and Sentera Plc.
In line with its strategy, the company's goal is to be a strong solutions
provider based on new-technology products and ready-made software packages, as
well as a pioneer in innovative business solutions in the main market segments:
finance and services, and commerce and industry. Deliveries of services are based
on software products and finished solutions provided by ourselves and a third
party. As part of SysOpen Digia's partnership programme, SysOpen Digia and
Microsoft deepened their co-operation when SysOpen Digia reached the Gold
Certified Partner level in Microsoft's partnership programme. SysOpen Digia is
one of Finland's largest application development partners based on Microsoft's
architecture. In addition, the integration business and Profit Software Oy signed
a co-operation agreement on the finance and insurance sector. With the agreement,
SysOpen Digia will act as an integrator and partner in customer projects related
to Profit Software's products. With the co-operation agreement, SysOpen Digia
will strengthen its business operations in the financing segment in Finland and
the Nordic countries in accordance with its growth strategy.
The advanced delivery capability due to the strong range of products and
services, the reorganisation with segment-based expertise, and its considerably
increased size are strengthening our ability to compete for larger customer
projects in selected market areas and targeted customer relationships already in
2006.
THE MARKET
Demand for ICT solutions varies depending on the market and customer segment.
Changes in the structure of the industry, consolidation in line with current
trends and cost pressures arising from customers' competitive situations are
maintaining strong price competition. Customer relationships in the ICT service
market demand increasingly fast returns on their investments, and aim for
comprehensive solutions that provide immediate business benefits. The contract
engineering market is believed to be under increasing price and efficiency
pressures, resulting from the profitability targets of the leading mobile phone
manufacturers and the increasing speed with which new products are being
introduced onto the market.
EITO estimates that the value of the West European ICT market is some EUR 616
billion and forecasts 3.7 per cent market growth in 2006 to EUR 639 billion. IDC
estimates that the West European ICT market will grow by around 5-6 per cent
annually. Meanwhile, Market-Visio's estimate of the value of the Finnish ICT
market is EUR 5.1 billion and its growth forecast is 3.2 per cent in 2006,
reaching EUR 5.2 billion.
In 2006, mobile phone sales are estimated to grow by around 15 per cent, with
unit sales rising to over EUR 900 million. According to Gartner's forecasts,
updated in June 2006, more than 100 million smartphones will be sold in 2006.
Yankee Group estimates that the accumulated volume of smartphones will exceed 300
million units in 2007, while Nokia forecasts that over 200 million smartphones
will be sold in 2008. IDC estimates that more than 130 million smartphones will
be sold in 2008.
Symbian will continue its predominant role in the smartphone market. According to
a report published by the Canalys research institute in April, Symbian had a
market share of 52.4 per cent in Japan and 94.7 per cent in Europe in the first
quarter of 2006. Symbian's global market share in smart mobile devices increased
to 69 per cent in the same period.
The formation of the wireless integration market has started in 2006. According
to Gartner's estimate, approximately 80 per cent of all enterprise solutions will
be accessed through wireless devices in 2010.
FUTURE OUTLOOK
The company estimates that growth in the volume of the smartphone market is
possible only if the product platform strategies of smartphone manufacturers are
implemented in the mass phone market. In the case of many smartphone
manufacturers, a challenge to rapid market growth is expected to arise in the
form of the requirement for variations in platform according to market segment
and operator, while maintaining the integrity, flexibility and high quality of
the product platform. The market positions of leading manufacturers are expected
to continue to polarise due to increasing competition for market share. However,
the contract engineering market, which is difficult to predict due to stiff
market conditions, will see moderate growth.
Growth in demand in the operator market is expected to increase pressure on
handset manufacturers to deliver differentiated smartphones. This is estimated to
increase competition between smartphone manufacturers with the potential to
support the operator market and, on the other hand, to create new business
opportunities in the operator market for a competent third party. Increasingly
fierce competition between semiconductor manufacturers is expected to lead to
alliances that allow them to cater for the needs of mobile handset manufacturers
on a more comprehensive basis, and increase the total value of their products to
customers.
The company expects moderate growth to continue in the ICT service and
telecommunications market. In making use of information technology, the trend is
towards looking for more possibilities to support or create business, and finding
companies that can deliver these solutions. In part, this trend is due to the
combination of IT, telecommunications, consumer electronics and content
production in creating new solutions. Increasingly, customers are looking for a
reliable partner who can deliver demanding comprehensive solutions, and take
responsibility for the customer's applications and supporting services.
The company's turnover in the third quarter is estimated to exceed significantly
the previous year's corresponding turnover. The company expects its full-year
turnover and profitability to improve markedly from 2005 levels and the Group
profitability is estimated to surpass that of the first half. Total growth in
turnover for 2006 is estimated to be more than 32 per cent, up to EUR 80-85
million, and operative profitability for the same period is estimated to be 8-10
per cent.
TURNOVER
SysOpen Digia's turnover during the period was EUR 36.7 million, representing an
increase of 34.7 per cent compared with the corresponding period in the previous
year (1-6/2005: EUR 27.2 million). Turnover includes a total of EUR 3.7 million
of the turnover of the acquired SysOpen Digia Financial Software Oy (formerly
Samstock Oy) and Sentera Plc. SysOpen Digia Plc's consolidated financial
statements have included SysOpen Digia Financial Software Oy (formerly Samstock
Oy) as of 1 May 2006 and Sentera Plc as of 1 June 2006. Turnover within the
smartphone business came to EUR 17.0 million, showing a growth of 37 per cent
year on year. Turnover of the integration business was EUR 19.6 million,
representing an increase of 33 per cent.
Turnover for the second quarter was EUR 19.8 million, representing an increase of
4.5 per cent compared with the corresponding period in the previous year (4-
6/2006: EUR 18.9 million). Turnover for the smartphone business decreased by 15
per cent, to EUR 8.3 million (EUR 9.8 million in Q2 2005). Turnover for the
integration business increased by 26 per cent, to EUR 11.5 million (EUR 9.1
million in Q2 2005).
The pro-forma turnover for the period amounted to EUR 50.6 million, with a
decrease of 0.7 per cent compared with the previous year. International business
represented 6.9 per cent of turnover (1-6/2005: 6.6 per cent).
DEVELOPMENT OF EARNINGS AND PROFITABILITY
SysOpen Digia's EBIT during the reporting period was EUR 2.6 million,
representing an increase of 315 per cent compared with the previous year (1-
6/2005: EUR 0.6 million). EBIT for the smartphone business decreased by 28 per
cent, to EUR 0.9 million, compared with the previous year (1-6/2005: EUR 1.3
million). The allocated goodwill amortisation generated in connection with the
merger of SysOpen and Digia burdened the profitability of the smartphone business
by a total of EUR 0.7 million (1-6/2005: EUR 0.5 million).
EBIT for the integration business grew by 43 per cent, to EUR 1.7 million,
compared with the previous year (1-6/2005: EUR 1.2 million).
EBIT for the second quarter amounted to EUR 1.0 million (EUR -0.3 million Q2
2005). EBIT for the smartphone business decreased by 76 per cent, to EUR 0.2
million, compared with the previous year (EUR 1.0 million Q2 2005).
EBIT for the integration business grew by 33 per cent, to EUR 0.8 million,
compared with the previous year (EUR 1.2 million Q2 2005).
Earnings before taxes stood at EUR 2.3 million (1-6/2005: EUR 0.2 million), and
earnings after taxes came to EUR 1.6 million (1-6/2005: EUR 0.3 million).
Pro-forma EBIT for the period amounted to EUR 3.7 million, showing a considerable
increase compared with the previous year when it was EUR -1.1 million.
The Group's earnings per share were EUR 0.09 (1-6/2005: EUR 0.02).
The Group's net financial expenses were EUR 0.4 million (1-6/2005: EUR 0.5
million).
FINANCING AND INVESTMENTS
SysOpen Digia Group's balance sheet total at the end of the reporting period
amounted to EUR 150.4 million (6/2005: EUR 113.2 million) and its equity ratio
stood at 41 per cent (6/2005: 44 per cent). Net gearing stood at 77 per cent
(6/2005: 32 per cent). The Group's liquid assets at the end of the reporting
period totalled EUR 16.3 million (6/2005: EUR 25.6 million). At the end of the
reporting period, the Group had EUR 62.3 million of interest-bearing liabilities
(6/2005: EUR 41.2 million).
In the reporting period, SysOpen Digia Plc acquired SysOpen Digia Financial
Software Oy (formerly Samstock Oy) for EUR 5.1 million on 26 April 2006. In
connection with the acquisition of SysOpen Digia Financial Software Oy, an
unallocated goodwill of around two million euros was generated. Furthermore, the
company acquired Sentera Plc's majority shares on 31 May 2006, and in this
interim report Sentera Plc has been consolidated in the group financial
statements for EUR 42.6 million. Sentera Plc's acquisition was financed with a
bank loan of EUR 37.8 million and the emission of new SysOpen Digia Plc shares
for sellers. Total goodwill of EUR 29.5 was generated in the acquisition of
Sentera Plc, EUR 4.3 million of which has been allocated for the acquired
customers and the rest remains as unallocated goodwill. On 30 June 2006, SysOpen
Digia Group's unallocated goodwill totalled EUR 77.7 million, and the allocated
share of goodwill came to EUR 14.4 million.
With the adoption of IFRS, the regular amortisation of goodwill is no longer
carried out. Non-allocated goodwill is tested each quarter using impairment
calculations based on future operational cash flows. If these calculations
indicate that future cash flows will be less than the amount called for by
goodwill, goodwill will be written down as required, assuming that the change in
business operations indicates a long-term sustained trend. The amount of the non-
allocated goodwill of the telecom business requires an average annual growth of
three per cent in the operations of the business, as well as 10 per cent
profitability before depreciations of goodwill. The risk level used for the
smartphone business in the first quarter has been applied in the impairment
testing of the telecom sector. According to the company's estimate, there are
currently no indications of impairment of any asset items.
The Group's cash flow from business operations was positive by EUR 1.2 million (1-
6/2005: positive by EUR 3.3 million).
Investments totalled EUR 0.7 million (1-6/2005: EUR 0.6 million).
Return on investment (ROI) was 6 per cent (1-6/2005: 2 per cent). Return on
equity (ROE) was 6 per cent (1-6/2005: 2 per cent).
RISK ASSESSMENT
The key risks under SysOpen Digia's risk management are customer, personal,
project, data security and integration risks. Measures to manage customer risks
include active development of the customer's corporate structure, and management
of potential risk positions. The company expects the customer's corporate
structure to develop positively as the strategy is implemented. Personal risk is
managed by implementing an active performance review and goal-setting process for
key personnel, as well as improving the effectiveness of in-house communication.
In-house communication is improved by increasing interactive communication
channels, including upgrading the Group's intranet in the spring of 2006. A job
satisfaction survey was conducted near the end of 2005. Based on the feedback,
the Group's internal procedures will be developed to improve working conditions
and job satisfaction further. A job satisfaction survey will also be conducted
during autumn 2006.
By auditing the key projects of our businesses we aim to enhance the management
of the Group's project risks, and ensure the successful delivery of projects to
customers. Project delivery reporting practices have also been strengthened. Data
security audits are carried out to manage data security risks. The company is
continually developing its working models, and practices and processes that
promote data security, with the Management Group responsible for managing risks
associated with the integration of business operations. The integration of
corporate cultures is continuous, and requires sustained and determined efforts
at all levels.
With respect of IFRS-compliant accounting policies, goodwill and related
impairment tests have been included in the risks to be monitored as part of
careful and forward-looking risk management practices in financial management.
PERSONNEL, MANAGEMENT AND ADMINISTRATION
At the end of the second quarter, the number of personnel stood at 1,127, showing
an increase of 334 persons or 42.1 per cent from the end of the previous year
(2005: 793 persons). The average number of personnel during the reporting period
was 864, an increase of 133 persons or 18.2 per cent (2005: 731).
Cumulative personnel turnover during the reporting period was 3.2 per cent (1-
6/2005: 3.1 per cent).
Distribution of personnel by function at the end of the reporting period:
Integration Division 54%
Smartphone Division 41%
Administration and management 5%
At the end of the reporting period, one per cent of SysOpen Digia personnel
worked abroad.
The Annual General Meeting on 9 March 2006 elected the following members of the
Board of Directors: Pekka Sivonen (Chairman), Kari Karvinen (Vice Chairman),
Pekka Eloholma, Matti Mujunen, Mikko Terho and Pertti Kyttälä. Jari Mielonen is
the CEO of the company, and Seppo Laaksonen is the deputy CEO. Pekka Eloholma
resigned from the Board of Directors of SysOpen Digia Plc on 25 April 2006 after
being appointed the CEO of AffectoGenimap starting from 1 September 2006.
KPMG Oy Ab authorised public accountant firm was chosen as the Group's auditor,
with Ari Ahti, Authorised Public Accountant, as the principal auditor.
CORPORATE AND BUSINESS ACQUISITIONS
SAMSTOCK OY
SysOpen Digia acquired the entire share capital of Samstock Oy on 26 April 2006.
With the acquisition, SysOpen Digia continues to strengthen its operations in the
financial sector in Finland and the Nordic countries in accordance with its
strategy. The acquisition will significantly enhance SysOpen Digia's product and
solution offering in this market segment.
Samstock is a leading financial software company, which creates applications for
the needs of the investment market. The company's main product areas are asset
management and private banking, securities trading back-office, mutual funds
management and custody operations. The company's customers are banks, brokerages
and investment fund companies, as well as institutional investors in the Nordic
countries.
Samstock's business operations have been integrated as part of the Group's
Finance and Services Division. Samstock Oy was renamed SysOpen Digia Financial
Software Oy. Samstock will remain as the brand name within SysOpen Digia Group.
SENTERA PLC
SysOpen Digia acquired a total of 77.39 per cent of the share capital and votes
of Sentera from the main shareholders of Sentera Plc on 31 May 2006. The purchase
price was EUR 3.20 per share consisting of a share and cash consideration. In
June, SysOpen Digia made an offer on the remaining Sentera shares, pursuant to
the Finnish Securities Market Act, and also presented a redemption claim in
accordance with the Companies Act after SysOpen Digia's ownership exceeded 90% of
all Sentera shares (excluding own shares held by Sentera). Furthermore, SysOpen
Digia also intends to acquire all share options launched by Sentera at the same
time. The offer for the shares was EUR 3.20 per share in cash, and the
redemption claim is based on the same number of considerations. With regard to
the share options, SysOpen Digia has offered the difference between the
subscription price for each share option and the offer price for the shares as
cash consideration.
With the acquisition of Sentera, SysOpen Digia will enlarge and strengthen
SysOpen Digia's integrated business solutions. The acquisition will provide
SysOpen Digia with seasoned product business and strengthens high-value-added
professional services in the following areas:
- Enterprise mobile solutions
- ERP and ERP integration
- Supply chain management
- Multi-channel solutions
- Business intelligence solutions
- Customer-specific solutions
- Application and service outsourcing
The transaction strengthens SysOpen Digia's business domain know-how especially
in industry, trade and logistics verticals. This will create a unique position in
the integrated retail value chain by strengthening the full-scale product and
service offering.
The integration of Sentera with SysOpen Digia will provide good opportunities for
business synergies. Annual synergies are expected to exceed EUR one million
effective in fiscal year 2007.
GROUP AND ORGANISATIONAL STRUCTURE
At the end of the reporting period the SysOpen Digia Group consisted of the
parent company, SysOpen Digia Plc, and the following active subsidiaries: SysOpen
Digia Integration Ltd (parent company holding 100 per cent), SysOpen Digia
Smartphone Ltd (100 per cent), Sentera Plc (parent company holding at the end of
the reporting period around 93 per cent), SysOpen Digia Financial Software Ltd
(formerly Samstock Oy) and SysOpen Digia Object Team Ltd (94.2 per cent). In
addition, SysOpen Digia Integration Ltd has a wholly owned active subsidiary,
SysOpen Digia Service Ltd.
SysOpen Digia's Group administration is unified, and during the reporting period
operations were divided into two business divisions, the Integration Division and
the Smartphone Division.
Changes in the organisational structure
SysOpen Digia's Board of Directors has decided to divide SysOpen Digia's
operations into three business areas: 1) Telecommunications, 2) Finance and
Services, and 3) Trade and Industry.
Telecommunications
The Telecommunications business division will be formed by integrating the
operations of SysOpen Digia's telecommunications and smartphone sector. The
division will offer comprehensive software solutions, products and services to
help its customers - mobile phone manufacturers, operators, companies and
semiconductor manufacturers - to develop their own products, services and
offerings. As the leading software integrator in the smartphone market, the
division will dominate the development and integration of smartphone and software
environments in a comprehensive way. The division will offer solutions, products
and services that help our operator and service provider customers to develop
their business processes, to focus their operations, to grow their service
offering and to develop their IP-based offering. The Telecommunications division
also has a strong focus on providing high-standard and cost-effective outsourcing
services for the Group's customers. The incorporation of solid expertise in
terminal equipment and telecommunications enables the utilisation of mobile
integration and the development of related Group-level offering. A Service Centre
unit will operate as part of the Telecommunications business division, providing
maintenance and hosting services for the customers of all business divisions.
Seppo Laaksonen, Senior Vice President, will be head of the division.
Finance and Services
The Finance and Services business division will be formed by integrating SysOpen
Digia's and Sentera's business operations responsible for the corresponding
customer segments, including the public sector, associations and consulting
services. Finance and Services will provide its designated customers with
comprehensive service, product and integration solutions that will utilise the
expertise and resources of both integrating parties and the delivery capability
in line with the new size. An ICT and architectural consulting unit will act as
part of the Finance and Services division, with the task of offering its services
to the customers of all business divisions. Juha Leinonkoski will be head of the
division.
Trade and Industry
The Trade and Industry business division will be formed by integrating SysOpen
Digia's and Sentera's business operations responsible for the corresponding
customer segments. These will provide increasingly comprehensive solutions for
the entire retail value chain and the individual needs of industry. Trade and
Industry will consist of the retail value chain, including the food manufacturing
industry, transport and logistics, retail business, and industry. The grouping
will further strengthen SysOpen Digia's position as a supplier of comprehensive
solutions for the trade and industry value chain, with the objective of offering
integrated services and information system solutions based on solid industry know-
how for both existing and new customers.
The solution portfolio of the Trade and Industry division will consist of
products and industry-specific services. In addition to ERP products and
integration solutions, the product portfolio will include wireless solutions
utilised in both production and distribution. However, the industry-specific
service offering ensures that the comprehensive solutions function according to
industry-specific requirements. Juha Sihvonen, CEO of Sentera Plc, will be head
of the division.
KEY EVENTS AFTER THE END OF THE REPORTING PERIOD
SysOpen Digia announced on 24 July 2006 that according to the final result of the
redemption offer made on the shares of Sentera Plc, SysOpen Digia was offered
808,435 shares in Sentera in the redemption offer, representing 6.1 per cent of
all shares and votes. Sentera's stock options tendered to SysOpen Digia amounted
to 133,928 Sentera 2003 A stock options; 141,801 Sentera 2003 B stock options;
61,843 Sentera 2003 C stock options; and 63,570 Sentera 2003 D stock options.
SysOpen Digia has, after the end of the offer period, increased its direct
holding to 96.5 per cent of all shares and votes in Sentera, excluding the own
shares held by Sentera and the stock options issued by Sentera. Furthermore,
Sentera Plc holds 139,000 Sentera shares. After the end of the offer period,
SysOpen Digia also held 88.1 per cent of all unutilised Sentera 2003 A stock
options, 91.6 per cent of all Sentera 2003 B stock options, 94.6 per cent of all
Sentera 2003 C stock options, and 96.3 of all Sentera 2003 D stock options,
including the stock options held by Sentera.
GENERAL MEETINGS OF SHAREHOLDERS
Annual General Meeting 9 March 2006
The parent company's Annual General Meeting was held on 9 March 2006. At the
meeting, the financial statements for 2005 were approved, the parties accountable
were released from liability, the Board's proposal for the distribution of
profits for 2005 was approved, the Board's remuneration was determined and a new
Board of Directors was appointed.
In addition, the Annual General Meeting decided:
1) To reduce the share premium account so that all of the funds in the share
premium accounts, EUR 39,735,545.65, shall be transferred to a contingency
reserve included in unrestricted shareholders' equity and administered by the
General Meeting. Execution of the decision is subject to approval by the
registration authority, and this process is not complete.
2) To authorise the Board of Directors under certain conditions to make decisions
regarding the issue of one or more convertible bonds or stock options and/or
regarding an increase of share capital through one or more rights issues. The
authorisation shall be effective for one year from the date of the General
Meeting's decision. A total of 1,798,252 shares have been used of the
authorisation as private placement in connection with the Sentera transaction.
COMMITTEES OF THE BOARD OF DIRECTORS
The Board of Directors of SysOpen Digia has established two committees: a
compensation committee and an inspection committee.
The purpose of the compensation committee is to plan remuneration systems and
study how well they work in achieving the company's goals, make sure decision-
making remains objective, and ensure remuneration systems are transparent and in
order. The members of the compensation committee are Pekka Sivonen (Chairman),
Kari Karvinen and Mikko Terho.
The purpose of the inspection committee is to assist the Board of Directors in
ensuring that the company's financial reporting, accounting methods, financial
statements and other financial information provided by the company are balanced,
transparent and clear. The members of the inspection committee are Pertti
Kyttälä (Chairman), Matti Mujunen and Mikko Terho, who are Board members
independent of the company.
SHARE CAPITAL AND SHARES
The nominal value of the company share is EUR 0.1. At the end of the second
quarter of 2006 the number of shares was 20,204,566.
On 30 June 2006 SysOpen Digia had 3,316 shareholders. The ten largest
shareholders were:
Shareholder Shares and votes
Pekka Sivonen 14.5 %
Nordea Bank Finland Plc, nominee-registered 9.8 %
Kari Karvinen 7.9 %
Matti Savolainen 6.5 %
Jorma Kylätie's estate 4.7 %
Varma Mutual Pension Insurance Company 3.7 %
OP-Suomi Pienyhtiöt investment fund 2.2 %
OMXBS/Skandinaviska Enskilda Banken Ab 2.2 %
Evli Bank Plc 2.2 %
UMO Capital Oy 2.1 %
Distribution of shareholding by number of shares held on 30 June 2006
Number of shares Percentage of Shares and votes
holdings
1-100 25.9 % 0.3 %
101-1,000 52.2 % 4.0 %
1,001-10,000 19.0 % 8.8 %
10,001-100,000 2.1 % 12.2 %
100,001-1,000,000 0.7 % 36.0 %
1,000,001-3,000,000 0.1 % 38.7 %
Total number of shares 20,204,566
Sectoral distribution of shareholding on 30 June 2006
Percentage of Percentage of
holdings shares
Businesses 6.2 % 12.7 %
Financing and insurance 0.5 % 19.8 %
Public corporations 0.1 % 3.9 %
Non-profit organisations 0.4 % 1.9 %
Households 92.1 % 61.5 %
Foreign holding 0.6 % 0.2 %
TRADING ON THE HELSINKI STOCK EXCHANGE DURING THE REPORTING PERIOD
SysOpen Digia Plc's shares are listed in the Main List of the Helsinki Stock
Exchange under Information Technology IT Services. The trading code is SYS1V and
the trading lot is 50 shares. The lowest share price during the reporting period
was EUR 3.38 and the highest EUR 4.97. The official closing price on the last
trading day of the second quarter was EUR 3.55. The average trade-weighted price
was EUR 4.39. At the end of the reporting period the company's market
capitalisation was EUR 71,716,216.
During the reporting period the company received two notifications in accordance
with chapter 2, section 9 of the Securities Market Act:
1. Osuuspankkikeskus Osk (OPK) notified SysOpen Digia on 13 March 2006 that the
total percentage of the votes and share capital of SysOpen Digia controlled by
OPK, its subsidiaries, and investment funds controlled by its subsidiaries,
exceeded 5 per cent.
2. Columbia Wanger Asset Management, L.P. notified the company on 4 March 2006
that the total percentage of the votes and share capital of SysOpen Digia it
controls exceeded 5 per cent.
3. Osuuspankkikeskus Osk (OPK) notified SysOpen Digia on 11 May 2006 that the
total percentage of the votes and share capital of SysOpen Digia controlled by
OPK, its subsidiaries, and investment funds controlled by its subsidiaries, fell
below 5 per cent.
4. Jorma Kylätie's estate notified SysOpen Digia on 5 June 2006 that the total
percentage of its votes and share capital of SysOpen Digia fell below 5 per cent.
5. Pekka Päiviö Sivonen notified SysOpen Digia on 5 June 2006 that the total
percentage of his votes and share capital of SysOpen Digia fell below 15 per
cent.
OPTION SCHEMES
Option scheme 2003
Under the 2003 option scheme, 670,000 warrants were originally issued and they
are distributed as follows: 210.000 warrants 2003A; 160,000 warrants 2003B;
150,000 warrants 2003C; and 150,000 warrants 2003D. All of the warrants have been
subscribed. The share subscription period for warrants 2003A was from 2 May 2004
to 31 October 2005 (and has thus expired), for warrants 2003B it is from 1
November 2004 to 31 October 2006, for warrants 2003C from 1 November 2005 to 31
October 2007 and for warrants 2003D from 1 November 2006 to 31 October 2008. The
current dividend-adjusted share subscription price for warrants 2003B is EUR 2.73
per share, for warrants 2003C EUR 3.70 per share and for warrants 2003D EUR 4.27
per share. Dividends paid will be deducted from the subscription prices in
accordance with the terms and conditions of the scheme. On 30 June 2006 SysOpen
Digia Plc's wholly owned subsidiary SysOpen Digia Partners Oy held a total of
57,473 warrants under the option scheme 2003. Warrants 2003B have been listed on
the Options list of the Helsinki Stock Exchange as of 25 May 2004, and warrants
2003C as of 1 November 2005.
By 30 June 2006, 209,325 new shares have been subscribed for under the option
scheme 2003. Shares were subscribed for using 172,515 of the now expired warrants
2003A and 36,810 of warrants 2003B.
Option scheme 2005K
A total of 663,049 warrants were originally issued under the 2005K option scheme,
105,408 of which were marked 2005K1 and 557,641 will be marked 2005K2. All of the
warrants have been subscribed. The warrants can be used to subscribe for an
aggregate maximum of 663,049 SysOpen Digia Plc shares with a nominal value of EUR
0.10.
The share subscription price for warrants 2005K1 was EUR 1.21 and for warrants
2005K2 it is EUR 2.36 (dividend-adjusted). On the record date for each
distribution of dividends, the share subscription price will be deducted by the
amount of dividends for which the decision to distribute has been made between 1
June 2006 and the date of subscription. However, the minimum subscription price
will always be the nominal value of the share. The share subscription period for
warrants 2005K1 started on the date of recording the warrants 2005K in the Trade
Register, 12 August 2005, and will expire on 31 December 2007, and the
subscription period for warrants 2005K2 started on 1 January 2006 and will expire
on 31 December 2007. Warrants 2005K1 could only be used for the subscription of
shares. On 30 June 2006 SysOpen Digia Plc's wholly owned subsidiary SysOpen Digia
Partners Oy held a total of 5,657 warrants under option scheme 2005K2.
All warrants 2005K1 (105,408 warrants) have been exercised to subscribe for
shares. By 30 June 2006, 8,631 new shares had been subscribed for under option
scheme 2005K2. Warrants 2005K2 have been listed on the Options list of the
Helsinki Stock Exchange as of 2 January 2006.
Option scheme 2005
A total of 900,000 warrants were issued under the 2005 option scheme, 300,000 of
which are marked 2005A, 300,000 are marked 2005B and 300,000 are marked 2005C.
The warrants can be used to subscribe for an aggregate maximum of 900,000 SysOpen
Digia Plc shares with a nominal value of EUR 0.10.
The share subscription price for warrants 2005A is EUR 4.28 (dividend-adjusted),
for warrants 2005B it is EUR 3.98, and for warrants 2005C the trading-weighted
average price of the SysOpen Digia Plc share on the Helsinki Stock Exchange in
the 20 trading days following publication of the Q1 2006 interim report. On the
record date for each distribution of dividends, the share subscription price will
be deducted by the amount of dividends for which the decision to distribute has
been made between the beginning of the price-setting period and the date of
subscription. However, the minimum subscription price will always be the nominal
value of the share. The subscription period for warrants 2005A is from 1 November
2007 to 30 November 2009, for warrants 2005B from 1 November 2008 to 30 November
2010, and for warrants 2005C from 1 November 2009 to 30 November 2011. As a
result of share subscriptions using warrants 2005A, 2005B and 2005C, the share
capital of SysOpen Digia Plc may increase by a maximum of EUR 90,000, and the
number of shares may increase by a maximum of 900,000 new shares. On 30 June 2006
SysOpen Digia Plc's wholly owned subsidiary SysOpen Digia Partners Oy held a
total of 722,000 warrants under option scheme 2005.
On 30 June 2006 a total of 1,872,200 warrants issued by SysOpen Digia remained
outstanding. Shares subscribed for using the warrants represent a maximum of 8.48
per cent of the company's share capital and voting rights after a potential
increase in share capital. Of all valid warrants, SysOpen Digia Partners held a
total of 785,130 warrants on 30 June 2006. The maximum dilution effect of the
issued warrants was 5.1 per cent on 30 June 2006.
Helsinki, 3 August 2006
SYSOPEN DIGIA OYJ
Board of Directors
FOR FURTHER INFORMATION
Jari Mielonen, CEO and President,
Telephone: +358 40 703 8383; email: jari.mielonen@sysopendigia.com
The interim financial report and associated presentation will be available from
the Investors' section of the Group's website www.sysopendigia.com after 11:00
am.
DISTRIBUTION
Helsinki Stock Exchange
Key media
ATTACHMENTS
Consolidated income statement, IFRS
Segment information, IFRS
Consolidated balance sheet, IFRS
Changes in shareholders' equity
Consolidated cash flow statement, IFRS
Consolidated income statement by quarter, IFRS
Consolidated key figures, IFRS
The figures in the interim report are unaudited.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
4-6/2006 4-6/2005 Change 1-6/2006 1-6/2005 Change 2005
% %
Turnover 19,760.4 18,901.0 5% 36,686.3 27,241.3 35% 60,525.5
Other operating 24.3 48.2 -50% 59.7 81.6 -27% 230.1
income
Materials and -1,032.9 -1,230.0 -16% -1,588.9 -1,424.6 12% -3,320.6
services
Depreciation -1,059.6 -870.9 22% -1,972.2 -1,285.8 53% -3,318.0
and write-downs
Other operating -16,677. -17,111. -3% -30,536. -23,974. 27% -49,887.
expenses 7 9 5 9 8
EBIT 1,014.5 -263.5 -485% 2,648.4 637.6 315% 4,229.2
Financial -355.9 -450.4 -21% -393.8 -451.6 -13% -897.1
income (net)
Earnings before 658.6 -713.9 -192% 2,254.6 186.0 1,112% 3,332.1
tax
Income taxes -173.2 304.2 -157% -607.6 119.8 -607% -977.5
Profit for the 485.4 -409.7 -218% 1,647.1 305.8 439% 2,354.6
period
Distribution:
Parent company 479.6 -414.2 -216% 1,637.6 296.2 453% 2,331.7
shareholders
Minority 5.8 4.5 30% 9.5 9.6 -1% 22.9
Earnings per 0.03 -0.02 -250% 0.09 0.02 350% 0.14
share, EUR
Earnings per 0.02 -0.02 -250% 0.08 0.02 350% 0.14
share, diluted,
EUR
SEGMENT INFORMATION, EUR 1,000
TURNOVER 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
2006 2005 % 2006 2005 % 2005
Integration Division 11,479 9,133 26% 19,651 14,819 33% 30,972
Smartphone Division 8,281 9,768 -15% 17,035 12,422 37% 29,553
SysOpen Digia Group 19,760 18,901 5% 36,686 27,241 35% 60,525
EBIT 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
2006 2005 % 2006 2005 % 2005
Integration Division 771 581 33% 1,702 1,194 43% 2,477
Smartphone Division 243 1,033 -76% 946 1,322 -28% 3,546
Structuring costs 0 -1,878 -100% 0 -1,878 -100% -1,795
SysOpen Digia Group 1,014 -264 -484% 2,648 638 315% 4,229
CONSOLIDATED BALANCE SHEET, EUR 1,000
Assets 30.6.2006 30.6.2005 Change % 31.12.200
5
Non-current assets
Intangible assets 104,304.1 65,935.1 58% 63,569.4
Tangible assets 3,863,7 2,880.7 34% 3,116.8
Investments 250.8 595.1 -58% 589.3
Other long-term 210.6
receivables
Deferred tax receivable 3,240.0 1,708.9 90% 1,621.1
Total non-current 111,869.2 71,119.8 57% 68,896.6
assets
Current assets
Inventories 26.4
Current receivables 22,182.0 16,524.0 34% 14,745.8
Financial assets 301.8 17,516.2 -98% 1,720.5
available for sale
Cash and cash 16,031.8 8,038.1 99% 10,605.4
equivalents
Total current assets 38,515.7 42,104.8 -9% 27,071.7
Total assets 150,384.9 113,224.6 33% 95,968.4
Shareholders' equity 30.6.2006 30.6.2005 Change % 31.12.2005
and liabilities
Share capital 2,020.5 1,817.8 11% 1,839.5
Share premium account 46,158.7 39,290.4 17% 39,718.0
Treasury shares 0.0 0.0 0.0
Revaluation reserve 0.0 224.6 -100% 166.2
Translation difference -0.1 23.1 -100% 23.1
Other reserves 5,203.8 5,203.8 0% 5,203.8
Accrued earnings 4,343.9 2,419.3 80% 2,796.6
Profit for the period 1,637.6 296.2 453% 2,331.7
Shareholders' equity 59,364.4 49,275.1 20% 52,078.9
belonging to parent
company shareholders
Minority interest 110.2 97.4 13% 110.7
Total shareholders' 59,474.6 49,372.5 20% 52,189.6
equity
Liabilities
Non-current 20,782.4 41,183.3 -50% 21,296.2
interest-bearing
liabilities
Reserves 704.8 0.0
Deferred tax 4,076.7 3,356.5 21% 3,211.8
liabilities
Other non-current 127.7 0.0 0.0
liabilities
Total non-current 24,986.8 45,244.6 -45% 24,508.0
liabilities
Current 41,246.5 2,084.0 1,879% 4,759.2
interest-bearing
liabilities
Other current 24,676.9 16,523.5 14,511.5
liabilities
Total current 65,923.4 18,607.5 254% 19,270.7
liabilities
Total liabilities 90,910.2 63,852.1 42% 43,778.7
Shareholders' equity 150,384.9 113,224.6 33% 95,968.4
and liabilities
Share Share Other Transl Revalua Retained Minority Total
capital premium reserv ations tion earnings interest shareho
es differ reserve lders'
ences equity
Shareholders' 926 7 102 0 23 85 3 168 122 11 426
equity 1 Jan
2005
Available-for
-sale
investments:
Gains/losses - - - - 81 - - 81
from fair
value
measurement
Other - - - - - 649 - 649
Items 0 0 0 0 81 649 730
recorded
directly in
shareholders'
equity
Profit for - - - - - 2 331 24 2 355
the period
Total income 0 0 0 0 0 2 331 24 2 355
and expenses
recorded
during the
period
Increase of 914 32 616 - - - - - 33 530
share capital
Dividend - - - - - -1 019 - -1 019
payment
Other - - 5 204 - - - -35 5 169
Shareholders' 1 840 39 718 5 204 23 166 5 128 111 52 189
equity 31 Dec
2005
Share Share Other Transl Revalua Retained Minority Total
capital premium reserv ations tion earnings interest shareho
es differ reserve lders'
ences equity
Shareholders' 1 840 39 718 5 204 23 166 5 128 111 52 189
equity 1 Jan
2006
Available-for
-sale
investments:
Gains/losses - - - - -166 - - -166
from fair
value
measurement
Other - - - - - 137 0 137
Items 0 0 0 0 -166 137 0 -29
recorded
directly in
shareholders'
equity
Profit for - - - - - 1 638 10 1 647
the period
Total income 0 0 0 0 0 1 638 10 1 647
and expenses
recorded
during the
period
Increase of 181 6441 6 622
share capital
Dividend -920 -10 -930
payment
Other -23 - -2 -
-25
SHAREHOLDERS' 2 021 46 159 5 204 0 0 5 982 110 59 474
EQUITY 30
June 2006
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
Cash flow from operations: 1 Jan 2006 - 1 Jan 2005 - 1 Jan 2005 -
30 June 2006 30 June 2005 30 Dec 2005
Profit for the period 1,638 306 2,355
Adjustments to profit for the period 3,121 1,361 3,734
Change in working capital -2,489 1,675 18
Interest paid -420 2 -264
Interest income 75 2 2
Taxes paid -731 -79 -153
Cash flow from business operations 1,194 3,266 5,691
Cash flow from investments:
Investments in tangible and -709 -627 -2,288
intangible assets
Capital gains on tangible and 376 1 1
intangible assets
Other investments 0 0 -4
Acquisition of subsidiaries -31,701 17,298 18,448
Capital gains on other investments 0 167 214
Dividends received from investments 0 5 5
Interest income from investments 0 145 381
Cash flow from investments -32,033 16,989 16,757
Cash flow from financing:
Rights issue 26 269 719
Amortisation of long-term loans -2,083 0 -40,810
Withdrawal of short-term loans 37,768 0 25,000
Dividends paid and other profit -698 -1,019 -1,020
distribution
Cash flow from financing 35,013 -750 -16,112
Change in liquid assets 4,174 19,505 6,336
Liquid assets at period start 12,326 5,909 5,909
Change in market value -166 140 81
Change in liquid assets 4,174 19,505 6,336
Liquid assets at period end 16,334 25,554 12,326
CONSOLIDATED INCOME STATEMENT BY QUARTER, EUR 1,000
4-6/2006 1-3/2006 10-12/20 7-9/2005 4-6/2005
05
Turnover 19,760.4 16,925.9 17,927.2 15,357.0 18,901.0
Other operating 24.3 35.3 32.8 115.7 48.2
income
Materials and -1,032.9 -556.0 -989.0 -907.1 -1,230.0
services
Depreciation and -1,059.6 -912.6 -1,033.9 -998.3 -870.9
write-downs
Other operating -16,677.7 -13,858.7 -14,076. -11,836. -17,111.
expenses 0 9 9
EBIT 1,014,5 1,633.9 1,861.2 1,730.5 -263.5
Financial income -355.9 -37.9 -203.8 -241.7 -450.4
(net)
Earnings before tax 658.6 1,596.0 1,657.4 1,488.8 -713.9
Income taxes -173.2 -434.4 -449.9 -647.4 304.2
Profit for the period 485.4 1,161.6 1,207.5 841.4 -409.7
Distribution:
Parent company 479.6 1,157.9 1,199.5 836.1 -414.2
shareholders
Minority 5.8 3.7 8.0 5.3 4.5
Earnings per share, 0.03 0.06 0.07 0.05 -0.02
EUR
Earnings per share, 0.02 0.06 0.07 0.05 -0.02
diluted, EUR
CONSOLIDATED KEY FIGURES
1-6/2006 1-6/2005 2005
Scope of operations
Turnover 36,686 27,241 60,526
- change on previous year 35% 109% 131%
Invested capital on average 55,832 36,673 43,713
Number of personnel at end of year 1127 821 793
Average number of personnel 864 655 731
Profitability
EBIT 2,648 638 4,229
- relative to turnover 7% 2% 7%
Earnings before tax 2,255 186 3,332
- relative to turnover 6% 1% 6%
Profit for the period 1,638 296 2,332
- relative to turnover 4% 1% 4%
Return on equity, % 6% 2% 5%
Return on investment, % 6% 2% 6%
Financing and financial standing
Interest-bearing liabilities 62,291 41,183 26,055
Cash and cash equivalents 16,334 25,554 12,326
Net gearing, % 77% 32% 26%
Equity ratio, % 41% 44% 55%
Cash flow from business operations 1,194 3,267 5,691
Earnings per share (EUR), undiluted 0.09 0.02 0.14
Earnings per share (EUR), diluted 0.08 0.02 0.14
Equity per share 2.94 2.71 2.83
Lowest share price 3.38 3.43 3.43
Highest share price 4.97 4.89 4.93
Average share price 4.39 4.32 4.36
Market capitalisation 71,716 79,437 85,170
The weighted average number of shares during the reporting period, adjusted for
share issues, was 18,650,512. The weighted average number of shares during the
reporting period, adjusted for dilution, was 19,306,770. The number of shares
outstanding at the end of the reporting period was 20,204,566.
The company does not hold any of its own shares.
The Group does not have any liabilities arising from derivative contracts.
