SYSOPEN DIGIA PLC'S INTERIM REPORT FOR 1 JANUARY-30 SEPTEMBER 2006 (IFRS)
SysOpen Digia Plc STOCK EXCHANGE RELEASE 26 October 2006 at 9:15 hrs
SYSOPEN DIGIA PLC'S INTERIM REPORT FOR 1 JANUARY-30 SEPTEMBER 2006 (IFRS)
Key figures
- Reported turnover: EUR 58.3 million, up 37 per cent
- Reported EBIT: EUR 5.4 million, up 127 per cent
- Turnover for the third quarter: EUR 21.7 million, up 41 per cent
- Profitability for the third quarter: 12.6 per cent, up 57 per cent
- Expected turnover for 2006 EUR 83-85 million
- Operating profit for 2006 is expected to be 9-10 per cent
- All business divisions' customer bases growing and developing profitably
- Integration of the new Group structure completed
- Business profitability and potential for organic growth are at a good level
January-September 2006
- Turnover EUR 58.3 million (EUR 42.6 million Q3 2005)
- EBIT EUR 5.4 million (EUR 2.4 million Q3 2005)
- Profitability (EBIT percentage): 9.2 per cent (5.6 per cent Q3 2005)
- Earnings per share: EUR 0.17 (EUR 0.07 Q3 2005)
July-September 2006
- Turnover EUR 21.7 million (EUR 15.4 million Q3 2005)
- EBIT EUR 2.7 million (EUR 1.7 million Q3 2005)
- Profitability (EBIT percentage): 12.6 per cent (11.3 per cent Q3 2005)
- Earnings per share: EUR 0.08 (EUR 0.05 Q3 2005)
CORPORATE COMMUNICATIONS
A briefing for analysts and the media on the interim financial report will be
held on Thursday, 26 October 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 report period, the Group's turnover increased strongly, with a growth
rate of 37 per cent year on year. The Group's EBIT improved by 127 per cent year
on year. Operating profit is expected to remain at a good level during the rest
of 2006. Net gearing was 78 per cent and equity ratio 42 per cent. Diluted
earnings per share stood at EUR 0.17.
During the third quarter of 2006, the company's business operations developed
favourably, considerably exceeding the company's corresponding figures year on
year. The Group's overall profitability for the third quarter was burdened by the
July holiday period, but all business areas registered an excellent result in
August-September. Turnover for the Telecommunications business division grew by
20 per cent year on year, and its monthly profitability returned to the previous
year's good level in August-September as a result of goal-driven measures, which
are also expected to have a positive impact on the last quarter. The Finance and
Services business division grew by 31 per cent and its profitability increased
significantly, while the Industry and Trade business division grew by 168 per
cent and, correspondingly, its level of profitability was excellent. All of the
business divisions are expected to show a favourable development in future.
The integration of new business divisions has progressed according to plan.
During the review period, the company's business operations were divided into
three business divisions in connection with the integration project. This
corporate structure corresponds with the related market segments in line with the
strategy, with the objective of profitably increasing organic growth in Finland
and its neighbouring regions. The integration project has been completed and the
company has resumed the normal development of its operations.
SysOpen Digia has a strong and developing industry-specific range of products and
solutions, which has grown through strategic measures, as well as an organisation
based on focused expertise in accordance with market segments. In addition, the
company has grown significantly. Its adoption of total responsibility for the
services it provides, and its delivery capability, both of which have been
developed through these measures, are expected to reinforce SysOpen Digia's
ability to compete for larger customer projects in selected market areas and
through targeted customer relationships. Profitability is expected to remain at a
healthy level.
The company is investing strongly in the development of the Group's customer
relationships, its range of solutions and shared operating policies. Its new
business divisions and their know-how complement each other outstandingly, and
create the opportunity to implement a uniform company strategy. The company
aspires to gain a clear position among large international and Nordic specialised
ICT companies, being a modern and agile player in its field.
Based on the positive market situation, the Group aims to speed up organic growth
in all business operations, to gain a larger market share, achieve the desired
level of profitability, increase its preparedness with respect to the launch of
international operations, and continue its growth strategy implementation over
the next few years. Total growth in turnover for 2006 is estimated at more than
37 per cent, up to EUR 83-85 million, and operative profitability for the same
period at 9-10 per cent.
The company is currently carrying out a strategy reformulation project based on
the corporate strategy published in 2005. The results of the strategy
reformulation project will be published in early November.
SysOpen Digia Plc's third-quarter interim financial report 2006 (IFRS)
CONSOLIDATED KEY FIGURES
7-9/20 7-9/200 Change 1-9/20 1-9/20 Change 2005
06 5 % 06 05 %
Turnover 21,661 15,357 41% 58,347 42,598 37% 60,526
EBIT before 2,720 1,731 57% 5,369 4,246 26% 6,024
restructuring costs
- relative to turnover 13% 11% 9% 10% 10%
EBIT 2,720 1,731 57% 5,369 2,368 127% 4,229
- relative to turnover 13% 11% 9% 6% 7%
Profit for the period 1,595 836 91% 3,242 1,147 183% 2,355
- relative to turnover 7% 5% 6% 3% 4%
Return on equity, % 11% 7% 8% 4% 5%
Return on investment, 9% 9% 8% 5% 6%
%
Interest-bearing 61,724 41,355 49% 61,724 41,355 49% 26,055
liabilities
Cash and cash 13,778 24,419 -44% 13,778 24,419 -44% 12,326
equivalents
Net gearing, % 78% 33% 78% 33% 26%
Equity ratio, % 42% 46% 42% 46% 56%
Earnings per share 0.08 0.05 60% 0.17 0.07 143% 0.14
(EUR), undiluted
Earnings per share 0.08 0.05 60% 0.17 0.07 143% 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 Financial
Software Oy (formerly Samstock Oy) as of 1 May 2006 and Sentera Plc as of 1 June
2006.
SUMMARY OF BUSINESS DIVISIONS
Telecommunications
The Telecommunications business division was formed by integrating the operations
of SysOpen Digia's telecommunications and smartphone sector. The division offers
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
dominates the development and integration of smartphone and software environments
in a comprehensive way. It offers solutions, products and services that help our
operator and service provider customers to develop their business processes,
focus their operations and grow their service 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 the related
Group-level offering. The Service Centre unit operates as part of the
Telecommunications business division, providing maintenance and hosting services
for the customers of all business divisions.
The turnover of the Telecommunications division during the period grew by 20 per
cent year on year, while the operating profitability of the Telecommunications
business division fell short of the long-term target level due to the
postponement of extensive customer projects and increased project volatility.
During the third quarter, the Telecommunications division secured significant
projects and customers and restored its monthly profitability to good level as
the result of determined efforts and market activation.
Finance and Services
The Finance and Services business division was formed by integrating SysOpen
Digia's, Samstock's and Sentera's business operations responsible for the
corresponding customer segments, including the public sector, associations and
consulting services. Finance and Services provides its designated customers with
comprehensive service, product and integration solutions that utilise the
expertise and resources of both integrating parties and their delivery capability
in line with the new size. An ICT and architectural consulting unit acts as part
of the Finance and Services division, with the task of offering its services to
the customers of all business divisions.
Reported turnover of the Finance and Services division grew by 31 per cent year
on year. During the third quarter of 2006, the Finance and Services division's
turnover was higher than predicted, its operative profitability increasing
markedly compared with the third quarter of 2005.
During the review period, the Finance and Services business division developed
more favourably than predicted. The development of turnover and results reinforce
the entire Group's forecast also for the next quarter. Customer synergies
provided by the new division structure will strengthen the development of the
firm's offering.
With respect to the Investment and Asset Management business, the volume of
orders is good, based on new investments by customers and the expansion of
existing systems solutions. In the Banking and Services business, the company
signed a partnership agreement with Cognos Oy to reinforce its ability to deliver
Business Intelligence solutions. Furthermore, the company signed a significant
customer agreement related to the mobile integration business. The other units of
the Finance and Services business division also showed favourable development
during the reporting period.
Industry and Trade
The Industry and Trade business division was formed by integrating SysOpen
Digia's and Sentera's existing business operations responsible for the
corresponding customer segments. These should provide increasingly comprehensive
solutions for the entire retail value chain and the individual needs of industry.
Industry and Trade consists of industry and the retail value chain, including the
food manufacturing industry, transport and logistics, and retail business. The
grouping will further strengthen SysOpen Digia's position as a supplier of
comprehensive solutions for industry and the retail 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 Industry and Trade 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 will ensure that these comprehensive solutions function
according to industry-specific requirements.
In the period under review, the Industry and Trade business division grew by 168
per cent year on year, which was attributable to the significant reorganisation
of the division as well as the considerable increase in the number of customers.
Year on year, the operative profitability of Industry and Trade was at a good
level.
During the reporting period, SysOpen Digia's business operations in the industry
and trade value chain continued their strong development. The company gained new
customers, for example, in wholesale, with ERP business operations in particular
continuing to grow considerably. Extensive further development projects were also
carried out with current customers, and the utilisation of new technologies
showed strongly in the demand. There was also clear growth in the deliveries of,
and demand for, ECM (enterprise content management) solutions.
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 at
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 the value of the West European ICT market to be 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 its study published in June 2006, Gartner Dataquest
forecast that the annual growth of the West European ICT service market would be
4.8 per cent until 2010.
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. It is thought that the role of Linux and Microsoft will strengthen
gradually.
Formation of the wireless integration market began 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 expects moderate growth to continue in the ICT service and
telecommunications market. In making use of information technology, the trend is
towards seeking more opportunities to support or create the customer's core
processes and business operations, 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 strategic partner
which can deliver demanding solutions and take responsibility for services
throughout the lifecycle of the customer's applications. Market consolidation,
the networking of value chains and the development of partnerships to support
customer relationships are key drivers in business operations.
SysOpen Digia has a strong and developing industry-specific range of products and
solutions, which has grown through strategic measures, as well as an organisation
based on concentrated expertise in accordance with its market segments. In
addition, the company has grown significantly. The total responsibility for the
services it provides as well as its delivery capability, developed through these
measures, are expected to reinforce SysOpen Digia's ability to compete for larger
customer projects in selected market areas and targeted customer relationships.
Profitability is expected to remain at a healthy level.
The company is investing strongly in the development of the Group's customer
relationships, its range of solutions and shared operating policies. It aspires
to gaining a clear position among large international and Nordic specialised ICT
companies, being a modern and agile participant in this field. The company's new
business divisions and their know-how complement each other outstandingly and
provide the opportunity to implement a uniform company strategy.
Based on the positive market situation, the Group aims to accelerate organic
growth in all business operations, gain a bigger market share, achieve the
desired level of profitability, increase its preparedness for the launch of
international operations and continue its growth strategy implementation over the
next few years. Total growth in turnover for 2006 is estimated at more than 37
per cent, up to EUR 83-85 million, and operative profitability for the same
period at 9-10 per cent.
TURNOVER
SysOpen Digia's turnover during the period was EUR 58.3 million, representing an
increase of 37 per cent compared with the corresponding period in the previous
year (1-9/2005: EUR 42.6 million). Turnover includes a total of EUR 11.4 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 Financial Software Oy (formerly Samstock Oy) as of 1 May
2006 and Sentera Plc as of 1 June 2006.
The turnover of Telecommunications business division was EUR 31.7 million,
representing an increase of 20 per cent compared with the corresponding period in
the previous year (1-9/2005: EUR 26.3 million). The turnover of Finance and
Services totalled EUR 16.2 million, showing an increase of 31 per cent (1-9/2005:
EUR 12.4 million). The turnover of Industry and Trade totalled EUR 10.4 million,
showing an increase of 168 per cent (1-9/2005: EUR 3.9 million).
Turnover for the third quarter was EUR 21.7 million, representing an increase of
41 per cent compared with the corresponding period in the previous year (7-
9/2005: EUR 15.4 million). Turnover for the Telecommunications business division
decreased by 14 per cent, to EUR 9.2 million (7-9/2005: EUR 10.7 million).
Turnover for the Finance and Services business division increased by 79 per cent
in the third quarter, to EUR 6.6 million (7-9/2005: EUR 3.7 million), while
turnover for the Industry and Trade business division increased by 491 per cent
in the third quarter, to EUR 5.9 million (7-9/2005: EUR 1.0 million).
The pro-forma turnover for the period amounted to EUR 72.2 million, with a
decrease of 1.1 per cent compared with the previous year. International
operations accounted for 6.5 per cent of consolidated turnover (1-9/2005: 7.2 per
cent).
DEVELOPMENT OF EARNINGS AND PROFITABILITY
SysOpen Digia's EBIT during the reporting period was EUR 5.4 million,
representing an increase of 127 per cent compared with the previous year (1-
9/2005: EUR 2.4 million). EBIT for the Telecommunications business division
amounted to EUR 2.5 million, representing a fall of 10 per cent year on year (1-
9/2005: EUR 2.7 million). The allocated goodwill amortisation generated in
connection with the merger of SysOpen Plc and Digia Inc. burdened the
profitability of the Telecommunications business division by a total of EUR 1.0
million (1-9/2005: EUR 0.8 million). EBIT for the Finance and Services business
division grew by 4 per cent, to EUR 1.8 million, compared with the previous year
(1-9/2005: EUR 1.8 million). The EBIT for Industry and Trade totalled EUR 1.1
million while in the corresponding period in 2005 EBIT showed a loss (1-9/2005:
EUR -0.3 million).
EBIT for the third quarter amounted to EUR 2.7 million (7-9/2005: EUR 1.7
million). EBIT for the Telecommunications business division fell by 53 per cent,
to EUR 0.7 million, compared with the previous year (7-9/2005: EUR 1.5 million).
EBIT for the Finance and Services business division grew by 126 per cent, to EUR
1.1 million, compared with the previous year (7-9/2005: EUR 0.5 million). EBIT
for Industry and Trade totalled EUR 0.9 million, while in the corresponding
period in 2005 EBIT showed a loss (7-9/2005: EUR -0.3 million).
Earnings before taxes stood at EUR 4.4 million (1-9/2005: EUR 1.7 million), and
earnings after taxes came to EUR 3.2 million (1-9/2005: EUR 1.1 million).
Pro-forma EBIT for the period amounted to EUR 6.4 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 0.17 (1-9/2005: EUR 0.07).
The Group's net financial expenses were EUR 1.0 million (1-9/2005: EUR 0.7
million).
FINANCING AND INVESTMENTS
SysOpen Digia Group's balance sheet total at the end of the reporting period
amounted to EUR 148.7 million (9/2005: EUR 113.0 million) and its equity ratio
stood at 42 per cent (9/2005: 46 per cent). Net gearing stood at 78 per cent
(9/2005: 33 per cent). At the end of the reporting period, the Group's liquid
assets totalled EUR 13.8 million (9/2005: EUR 24.4 million), and it had EUR 61.7
million of interest-bearing liabilities (9/2005: EUR 41.4 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,
unallocated goodwill of around two million euros was generated. Furthermore, the
company acquired Sentera Plc for EUR 42.6 million on 31 May 2006. The acquisition
of Sentera Plc was financed using a bank loan worth EUR 37.8 million and by
issuing new shares in SysOpen Digia Plc. Total goodwill of EUR 29.5 million was
generated by the acquisition of Sentera Plc, EUR 4.3 million of which has been
allocated for the acquired customers, with the rest remaining as unallocated
goodwill.
On 30 September 2006, SysOpen Digia Group's unallocated goodwill totalled EUR
83.5 million, divided by business division as follows: Telecommunications EUR
47.1 million, Finance and Services EUR 10.5 million, and Industry and Trade EUR
25.9 million. On 30 September 2006, the allocated share of goodwill totalled EUR
15.5 million, divided as follows: Telecommunications EUR 9.6 million, Finance and
Services EUR 1.6 million, and Industry and Trade EUR 4.3 million.
With the adoption of IFRS, regular amortisation of goodwill is no longer carried
out. 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 most significant assumptions of the
impairment calculations are connected to the profitability and growth of business
operations and the interest factor used in the calculations.
The amount of goodwill for the Telecommunications business division requires an
average annual long-term growth of three per cent for the business operations and
ten per cent profitability before allocated goodwill amortisation. The amount of
goodwill for the Finance and Services business division requires that the
turnover remains at the present level and profitability before allocated goodwill
amortisation is at a level of at least five per cent. The amount of goodwill for
the Finance and Services business division requires that the turnover remains at
the present level and profitability before allocated goodwill amortisation is at
a level of at least 12.5 per cent.
The company estimates that, on the basis of current business prospects, there is
no need for write-downs in any of the business divisions.
The Group's cash flow from business operations was positive by EUR 2.5 million (1-
9/2005: positive by EUR 2.0 million).
Group's investments totalled EUR 1.2 million in the review period (1-9/2005: EUR
0.9 million).
Return on investment (ROI) was 8 per cent (1-9/2005: 5 per cent), while return on
equity (ROE) was 8 per cent (1-9/2005: 4 per cent).
RISK ASSESSMENT
The key risks under SysOpen Digia's risk management are customer, personal,
project, data security, integration and goodwill 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 being
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 resulting 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 the
autumn of 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, the Management Group responsible for managing risks being
associated with the integration of business operations. The integration of
corporate cultures is a continuous process, and requires sustained and determined
efforts at all levels. With respect to IFRS-compliant accounting policies,
goodwill and the 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 third quarter, the number of personnel stood at 1,098, showing
an increase of 305 persons or 38.5 per cent from the end of the previous year
(2005: 793 persons). The average number of personnel during the reporting period
was 945, an increase of 214 persons or 29.3 per cent (2005: 731).
Reported employee turnover came to 6.3 per cent (1-9/2005: 6.4 per cent).
Distribution of personnel by function at the end of the reporting period:
Telecommunications 48%
Finance and Services 24%
Industry and Trade 23%
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 as CEO of AffectoGenimap starting from 1 September 2006.
The authorised public accountant firm, KPMG Oy Ab, 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 this acquisition, SysOpen Digia will continue 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 duplicable
software 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
include 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 business division. Samstock Oy was renamed SysOpen Digia
Financial Software Oy. Samstock will remain 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 Oy 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 for 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).
The arbitral tribunal appointed by the Redemption Committee of the Central
Chamber of Commerce confirmed on 26 September 2006 that SysOpen Digia Plc's right
to redeem the shares of Sentera Plc ("Sentera") held by other shareholders than
SysOpen Digia is not in dispute and that SysOpen Digia has the right to obtain
title to the shares of Sentera that are to be redeemed by depositing a collateral
for the payment of the redemption price approved by the arbitral tribunal. On the
same day, SysOpen Digia deposited a collateral referred to in Chapter 14 Section
21 of the Finnish Companies Act (29.9.1978/734) and approved by the arbitral
tribunal. Thus, SysOpen Digia has, in accordance with Chapter 14 Section 21 of
the Finnish Companies Act (29.9.1978/734), obtained title to all the shares of
Sentera that are to be redeemed.
SysOpen Digia owns, excluding Sentera's own shares, all Sentera shares. Sentera's
share was delisted from the NM list of the Helsinki Stock Exchange on the same
day. The share subscription period based on all Sentera's stock option rights
terminated on 19 September 2006 and the trading of the stock option rights
terminated on 12 September 2006.
Through acquiring Sentera, SysOpen Digia is striving to enlarge and strengthen
SysOpen Digia's integrated business solutions. This acquisition will provide
SysOpen Digia with a seasoned product business and strengthen its 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 will strengthen SysOpen Digia's business domain know-how,
especially in industry, trade and logistics verticals. This will give it a unique
position in the integrated retail value chain by strengthening its full-scale
product and service offering.
Sentera's business operations have been integrated as part of SysOpen Digia
Group's Industry and Trade and Finance and Services business divisions. 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 the 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 (100 per cent), SysOpen Digia
Financial Software Ltd (formerly Samstock Oy) (100 per cent), 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. The company also has
inactive subsidiaries, and it has started their voluntary dissolution in order to
simplify the Group structure. In the same connection, Sentera Plc has been
renamed to conform to the SysOpen Digia brand.
SysOpen Digia has a common Group administration and during the third quarter the
company's business operations were divided into three business divisions:
Telecommunications, Finance and Services, and Industry and Trade. During October,
joint discussions with employees were carried out in the Group administration,
due to overlapping operations arising from corporate restructuring. As a result
of the negotiations, the number of stuff in Group administration was reduced by
four.
KEY EVENTS AFTER THE END OF THE REPORTING PERIOD
On 6 October 2006, the company published a stock exchange announcement stating
that the Finnish Financial Supervision Authority had granted Sentera Plc
("Sentera") an exemption from the obligation to publish an interim report for the
period 1 January - 30 September 2006 in accordance with Chapter 2 Section 11 of
the Finnish Securities Markets Act.In its decision, the Finnish Financial
Supervision Authority took into account the fact that the amount of the
redemption price that is to be determined in the redemption procedure has, in
general and according to legal practice concerning the claim for redemption
referred to in the Finnish Companies Act, been determined on the basis of the
moment when the claim for redemption was presented. SysOpen Digia presented its
claim for redemption on 19 June 2006 and Sentera published an interim report for
the period 1 January - 30 June 2006.As the claim for redemption was presented
within the aforementioned time period, the position of the investors cannot be
considered to be endangered.
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. The Registration Authority has given its permission for the
implementation of this decision.
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 with regard to the
authorisation as a 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, ensure 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 third
quarter of 2006, the number of shares was 20,204,566.
On 30 September 2006 SysOpen Digia had a total of 3,472 shareholders. The ten
largest shareholders were:
Shareholder Shares and votes
Pekka Sivonen 14.5%
Kari Karvinen 7,9%
Evli Bank Plc 7.8%
Matti Savolainen 6.5%
Jorma Kylätie's estate 4.7%
Varma Mutual Pension Insurance Company 3.7%
Nordea Bank Finland Plc 2.7%
OP-Suomi pienyhtiöt -sijoitusrahasto 2.2%
OMXBS/Skandinaviska Enskilda Banken Ab 2.2%
UMO Capital Oy 2.1%
Holding by the number of shares held, as of 30 September 2006
Number of shares Percentage of Shares and votes
holdings
1 - 100 24.4% 0.3%
101 - 1,000 52.9% 4.4%
1,001 - 10,000 19.6% 9.9%
10,001 - 100,000 2.3% 12.9%
100,001 - 1,000,000 0.7% 35.9%
1,000,001 - 3,000,000 0.1% 36.6%
Total number of shares 20,204,566
Holding by sector, as of 30 September 2006
Percentage of Percentage of
holdings shares
Businesses 6.3% 13.0%
Financing and insurance 0.5% 18.0%
Public corporations 0.1% 3.9%
Non-profit organisations 0.4% 1.9%
Households 92.2% 63.1%
Foreign holding 0.5% 0.1%
TRADING ON THE HELSINKI STOCK EXCHANGE DURING THE REPORTING PERIOD
SysOpen Digia Plc's shares are listed in the Nordic Exchange under Information
Technology IT Services. The company's trading code is SYS1V. The lowest share
price during the reporting period was EUR 3.00 and the highest EUR 4.97. The
official closing price on the last trading day of the third quarter was EUR 3.27.
The trade weighted average amounted to EUR 4.08. At the end of the reporting
period, the company's market capitalisation was EUR 65,664,840.
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.
6. Pekka Päiviö Sivonen notified SysOpen Digia on 21 September 2006 that he had
signed a forward contract, and upon the maturity of this contract his share of
SysOpen Digia Plc's votes and share capital will exceed 20%.
7. Evli Bank Plc notified SysOpen Digia on 21 September 2006 that the share of
SysOpen Digia Plc's votes and share capital held by Evli Bank exceeded 5 per cent
after share trading on that day. Evli Bank also announced that its share of
SysOpen Digia Plc's votes and share capital will fall below 5 per cent as a
result of a forward contract signed on 21 September 2006.
8. Columbia Wanger Asset Management, L.P. notified the company on 28 September
2006 that the total percentage of the votes and share capital of SysOpen Digia it
controlled had fallen below 5 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 September 2006,
SysOpen Partners Oy, SysOpen Digia Plc's wholly owned subsidiary, held a total of
63,242 stock options based on the 2003 stock-option scheme. 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. The company aims to list warrants 2003D
as of 1 November 2006.
Based on the 2003 stock-option scheme, a total of 213,528 new shares were
subscribed by 30 September 2006. The shares were subscribed for using 172,515 of
the now expired warrants 2003A and 41,013 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 2005 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 September 2006, SysOpen Partners Oy, SysOpen Digia Plc's wholly
owned subsidiary, held a total of 5,657 stock options based on the 2005K2 stock-
option scheme.
All warrants 2005K1 (105,408 warrants) have been exercised to subscribe for
shares. By 30 September 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 2007 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 September
2006, SysOpen Digia Plc's wholly owned subsidiary SysOpen Digia Partners Oy held
a total of 722,000 warrants under option scheme 2005.
The number of all stock options issued by SysOpen Digia totalled 1,867,997 on 30
September 2006. Shares subscribed for using the warrants represent a maximum of
8.46 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 790,899 warrants on 30 September 2006. The dilution effect of the
distributed stock options was a maximum of 5.06 per cent on 30 September 2006.
Helsinki, 26 October 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 financial statements and associated slide show will be available at
www.sysopendigia.fi in the 'Investors' section from 11.00 a.m.
DISTRIBUTION
Helsinki Stock Exchange
Key media
ATTACHMENTS
Consolidated income statement by quarter, 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
7-9/2006 7-9/2005 Change 1-9/2006 1-9/2005 Change 2005
% %
Turnover 21,661.0 15,357.0 41% 58,347.3 42,598.3 37% 60,525.5
Other operating 140.5 115.7 21% 200.2 197.2 2% 230.1
income
Materials and -1,170.9 -907.1 29% -2,759.8 -2,331.6 18% -3,320.6
services
Depreciation -1,280.9 -998.3 28% -3,253.1 -2,284.1 42% -3,318.0
and write-downs
Other operating -16,629. -11,836. 40% -47,165. -35,811. 32% -49,887.
expenses 4 9 9 8 8
EBIT 2,720.3 1,730.5 57% 5,368.7 2,368.1 127% 4,229.2
Financial -618.9 -241.7 156% -1,012.7 -693.3 46% -897.1
income (net)
Earnings before 2,101.3 1,488.8 41% 4,356.0 1,674.8 160% 3,332.1
tax
Income taxes -506.6 -647.4 -22% -1,114.1 -527.6 111% -977.5
Profit for the 1,594.8 841.4 90% 3,241.8 1,147.2 183% 2,354.6
period
Distribution:
Parent company 1,586.7 836.1 90% 3,224.3 1,132.3 185% 2,331.7
shareholders
Minority 8.0 5.3 51% 17.5 14.9 18% 22.9
Earnings per 0.08 0.05 60% 0.17 0.07 143% 0.14
share, EUR
Earnings per 0.08 0.05 60% 0.17 0.07 143% 0.14
share, diluted,
EUR
SEGMENT INFORMATION, EUR 1,000
TURNOVER 7-9/200 7-9/200 Change 1-9/200 1-9/200 Change 1-12/20
6 5 % 6 5 % 05
Telecommunications 9,190 10,691 -14% 31,686 26,320 20% 38,735
Finance and Services 6,564 3,667 79% 16,248 12,392 31% 16,604
Industry and Trade 5,908 1,000 491% 10,414 3,887 168% 5,185
SysOpen Digia Group 21,661 15,357 41% 58,347 42,598 37% 60,526
EBIT 7-9/200 7-9/200 Change 1-9/200 1-9/200 Change 1-12/20
6 5 % 6 5 % 05
Telecommunications 716 1,525 -53% 2,455 2,719 -10% 4,326
Finance and Services 1,086 481 126% 1,842 1,777 4% 2,090
Industry and Trade 918 -274 1,071 -250 -392
Structuring costs -1,878 -100% -1,795
SysOpen Digia Group 2,720 1,731 57% 5,369 2,368 127% 4,229
CONSOLIDATED BALANCE SHEET, EUR 1,000
Assets 30.9.2006 30.9.2005 Change % 31.12.200
5
Non-current assets
Intangible assets 103,607.0 64,558.7 60% 63,569.4
Tangible assets 3,686.9 3,201.7 15% 3,116.8
Investments 250.8 595.1 -58% 589.3
Other long-term 208.6
receivables
Deferred tax receivable 3,764.4 1,929.7 95% 1,621.1
Total non-current 111,517.7 70,285.2 59% 68,896.6
assets
Current assets
Inventories 13.2
Current receivables 23,430.1 18,303.6 28% 14,745.8
Financial assets 6,333.9 17,722.8 -64% 1,720.5
available for sale
Cash and cash 7,444.6 6,696.1 11% 10,605.4
equivalents
Total current assets 37,208.5 42,735.7 -13% 27,071.7
Total assets 148,726.2 113,020.9 32% 95,968.4
Shareholders' equity 30.9.2006 30.9.2005 Change % 31.12.2005
and liabilities
Share capital 2,020.5 1,829.7 10% 1,839.5
Share premium account 6,447.0 39,445.1 -84% 39,718.0
Revaluation reserve 0.0 317.7 -100% 166.2
Translation difference 0.0 23.1 -100% 23.1
Other reserves 44,939.3 5,203.8 764% 5,203.8
Accrued earnings 4,410.9 2,616.7 69% 2,796.6
Profit for the period 3,224.3 1,132.3 185% 2,331.7
Shareholders' equity 61,042.1 50,568.3 21% 52,078.9
belonging to parent
company shareholders
Minority interest 118.3 102.7 15% 110.7
Total shareholders' 61,160.3 50,670.9 21% 52,189.6
equity
Liabilities
Non-current 19,899.7 41,354.6 -52% 21,296.2
interest-bearing
liabilities
Reserves 0.0 880.8 0.0
Deferred tax 4,064.1 3,082.4 32% 3,211.8
liabilities
Other non-current 0.0 0.0 0.0
liabilities
Total non-current 23,963.8 45,317.9 -47% 24,508.0
liabilities
Current 41,824.6 1,042.0 3,854% 4,759.2
interest-bearing
liabilities
Other current 21,777.4 15,990.1 14,511.5
liabilities
Total current 63,602.1 17,032.1 273% 19,270.7
liabilities
Total liabilities 87,565.9 62,350.0 40% 43,778.7
Shareholders' equity 148,726.2 113,020.9 32% 95,968.4
and liabilities
STATEMENT ON CHANGES IN SHAREHOLDERS' EQUITY, EUR 1,000
a b c d e f g h
SHAREHOLDERS' 926 7 102 0 23 85 3 168 122 11 426
EQUITY, 1
JANUARY 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 in 914 32 616 33 530
share capital
Dividend -1 019 -1 019
payment
Other 5 204 -35 5 169
SHAREHOLDER'S 1 840 39 718 5 204 23 166 5 128 111 52 189
EQUITY 31
DECEMBER 2005
a b c d e f g h
SHAREHOLDERS' 1 840 39 718 5 204 23 166 5 128 111 52 189
EQUITY, 1
JANUARY 2006
Available-for 0
-sale
investments:
Gains/losses -166 -166
from fair
value
measurement
Other 204 0 204
Items 0 0 0 0 -166 204 0 38
recorded
directly in
shareholders'
equity
Profit for 3 224 18 3 242
the period
Total income 0 0 0 0 0 3 224 18 3 242
and expenses
recorded
during the
period
Increase in 181 6 441 6 622
share capital
Dividend -920 -10 -930
payment
Other -39 39 736 -23 -1 0
712
SHAREHOLDER'S 2 021 6 447 44 939 0 0 7 635 118 61 160
EQUITY 30
SEPTEMBER
2006
a = share capital
b = share premium account
c = other reserves
d = translation difference
e = revaluation reserve
f = accrued earnings
g = minority interest
h = total shareholders' equity
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
Cash flow from operations: 1.1.2006 - 1.1.2005 - 1.1.2005 -
30.9.2006 30.9.2005 30.12.2005
Profit for the period 3,224 1,132 2,355
Adjustments to profit for the period 5,604 2,561 3,734
Change in working capital -4,522 -1,381 18
Interest paid -1,128 -148 -264
Interest income 135 2 2
Taxes paid -819 -131 -153
Cash flow from business operations 2,494 2,035 5,691
Cash flow from investments:
Investments in tangible and -1,244 -879 -2,288
intangible assets
Capital gains on tangible and 376 1 1
intangible assets
Other investments 0 0 -4
Acquisition of subsidiaries -34,010 17,298 18,448
Capital gains on other investments 0 167 214
Dividends received from investments 0 5 5
Interest income from investments 0 235 381
Cash flow from investments -34,878 16,827 16,757
Cash flow from financing:
Rights issue 57 436 719
Amortisation of long-term loans -3,125 0 -40,810
Withdrawal of short-term loans 37,768 0 25,000
Dividends paid and other profit -698 -1,020 -1,020
distribution
Cash flow from financing 34,002 -584 -16,112
Change in liquid assets 1,618 18,278 6,336
Liquid assets at period start 12,326 5,909 5,909
Change in market value -166 233 81
Change in liquid assets 1,618 18,278 6,336
Liquid assets at period end 13,778 24,419 12,326
CONSOLIDATED INCOME STATEMENT BY QUARTER, EUR 1,000
7-9/2006 4-6/2006 1-3/2006 10-12/20 7-9/2005
05
Turnover 21,661.0 19,760.4 16,925.9 17,927.2 15,357.0
Other operating 140.5 24.3 35.3 32.8 115.7
income
Materials and -1,170.9 -1,032.9 -556.0 -989.0 -907.1
services
Depreciation and -1,280.9 -1,059.6 -912.6 -1,033.9 -998.3
write-downs
Other operating -16,629.4 -16,677.7 -13,858. -14,076. -11,836.
expenses 7 0 9
EBIT 2,720.3 1,014.5 1,633.9 1,861.2 1 730.5
Financial income -618.9 -355.9 -37.9 -203.8 -241.7
(net)
Earnings before tax 2,101.3 658.6 1,596.0 1,657.4 1,488.8
Income taxes -506.6 -173.2 -434.4 -449.9 -647.4
Profit for the period 1,594.8 485.4 1,161.6 1,207.5 841.4
Distribution:
Parent company 1,586.7 479.6 1,157.9 1,199.5 836.1
shareholders
Minority 8.0 5.8 3.7 8.0 5.3
Earnings per share, 0.08 0.03 0.06 0.07 0.05
EUR
Earnings per share, 0.08 0.02 0.06 0.07 0.05
diluted, EUR
CONSOLIDATED KEY FIGURES
1-9/2006 1-9/2005 2005
Scope of operations
Turnover 58,347 42,598 60,526
- change on previous year 37% 131% 131%
Invested capital on average 56,675 41,100 43,713
Number of personnel at end of year 1,098 811 793
Average number of personnel 945 709 731
Profitability
EBIT 5,369 2,368 4,229
- relative to turnover 9% 6% 7%
Earnings before tax 4,356 1,675 3,332
- relative to turnover 7% 4% 6%
Profit for the period 3,224 1,132 2,332
relative to turnover 6% 3% 4%
Return on equity, % 8% 4% 5%
Return on investment, % 8% 5% 6%
Financing and financial standing
Interest-bearing liabilities 61,724 41,355 26,055
Cash and cash equivalents 13,778 24,419 12,326
Net gearing, % 78% 33% 26%
Equity ratio, % 42% 46% 55%
Cash flow from business operations 2,494 2,035 5,691
Earnings per share (EUR), undiluted 0.08 0.07 0.14
Earnings per share (EUR), diluted 0.08 0.07 0.14
Equity per share 3.02 2.76 2.83
Lowest share price 3.00 3.43 3.43
Highest share price 4.97 4.93 4.93
Average share price 4.08 4.32 4.36
Market capitalisation 65,665 76,847 85,170
The weighted average number of shares during the reporting period, adjusted for
share issues, was 19,168,530. The weighted average number of shares during the
reporting period, adjusted for dilution, was 19,454,708. 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.
