SAUNALAHTI GROUP OYJ'S PRELIMINARY INFORMATION FOR YEAR 2005
ELISA CORPORATION STOCK EXCHANGE RELEASE JANUARY 23, 2006 AT 1.10pm
SAUNALAHTI GROUP OYJ'S PRELIMINARY INFORMATION FOR YEAR 2005
Elisa Corporation's subsidiary Saunalahti Group Oyj has today reported the
following preliminary information for the year 2005:
Saunalahti has reported its financial information for 2005 to its parent company
Elisa. Thus, corresponding information is published as preliminary information.
Financial year 2005
- In the 2005 financial year, the Group's turnover amounted to EUR 224.6 million
(2004: 160.9), thus increasing by 39.6% as estimated compared to the previous
financial year
- Group's operating result for the financial year 2005 amounted to EUR -22.6
million. The operating result for 2004 was EUR 12.2 million. The result comprises
EUR -18.0 million of non-recurring items (2004: 13.4). The operating result
without non-recurring items amounted to EUR -4.5 million (2004: -1.2)
October - December 2005
- During October - December, the Group's turnover amounted to EUR 62.7 million
(2004: 45.8), which exceeds the guidance given in conjunction with Q3. The
turnover increased by 36.9% compared to the corresponding period in 2004
- Group's operating result for October - December amounted to EUR -0.9 million.
The operating result for the corresponding period in 2004 was EUR 1.9 million.
The result comprises EUR -1.9 million of non-recurring items (2004: 1.7). The
operating result without non-recurring items amounted to EUR 1.1 million (2004:
0.2)
- Mobile operation's turnover amounted to EUR 53.6 million (2004: 36.5), thus
increasing by 46.7% compared to the corresponding period in 2004. Mobile
operations' result without non-recurring items was positive
- Fixed network operation's turnover amounted to EUR 9.1 million (2004: 9.3),
thus increasing by 1.7% compared to the corresponding period in 2004. Fixed
network operations' result was negative
Saunalahti and Elisa
- On 7 July 2005, Elisa Corporation published its intention to make a public
share exchange offer for all shares issued by Saunalahti Group Oyj. Elisa offered
1 Elisa share for each 5.6 Saunalahti shares. The share exchange offer ended on 4
November 2005
- Shareholders, who represented in total approximately 97.4 per cent of the
shares issued by Saunalahti and the aggregate votes of the shares, have accepted
the tender offer for 134,830,683 Saunalahti shares. The holders of share options
for the 2003 share option programme have accepted the tender offer for 342,782
Saunalahti share options in total. The ownership of Saunalahti shares was
transferred to Elisa on 14 November 2005, when Saunalahti became Elisa's
subsidiary
- On 9 December 2005, Elisa made a redemption offer pursuant to the Securities
Market Act for all remaining Saunalahti shares and share options. Based on the
final result of the redemption offer published on 18 January 2006, Elisa's
ownership in Saunalahti increased by 775,912 shares and 109,700 share options
- In addition, Elisa started redemption proceedings relating to the remaining
Saunalahti shares on 9 December 2005. The redemption price offered by Elisa is
EUR 2.29 per share
- The right to subscribe for shares with the share options of the I/2003 option
plan will terminate on 16 February 2006, after which the share options will
expire. The last trading day in Helsinki Stock Exchange of the Series A share
options of the share option programme I/2003 is 9 February 2006
- The delisting of Saunalahti shares from the Main List of the Helsinki Stock
Exchange is estimated to take place in March 2006
- The financial information of Saunalahti Group Oyj for 2005 will be published as
part of the IFRS financial statements of Elisa Corporation
- Saunalahti Group's preliminary financial information of the 2005 financial
statements has been drawn up in accordance with the booking and accounting
principles of the International Financial Reporting Standards (IFRS) in the same
manner as the interim reports published in 2005.
- The content of this release is closely equivalent to the content of the
financial statement bulletin. The information has also been reported to the
parent company Elisa in a similar format
KEY FINANCIAL INDICATORS OF THE GROUP
(EUR million)
10-12/05 10-12/04 1-12/05 1-12/04
Turnover 62.7 45.8 224.6 160.9
Operating profit/loss -0.9 1.9 -22.6 12.2
% of turnover -1.4% 4.1% -10.0% 7.6%
Operating profit/loss
before non-recurring items 1.1 0.2 -4.5 -1.2
Profit/loss before taxes -1.0 1.9 -22.8 11.9
% of turnover -1.7% 4.1% -10.1% 7.4%
Net profit/loss for the period 5.3 1.8 -16.2 9.5
% of turnover 8.4% 3.8% -7.2% 5.9%
Return on equity, % 113.5% 25.3% -58.0% 32.9%
Return on investment, % -12.5% 21.5% -63.4% 32.1%
Cash and cash equivalents 0.9 11.8 0.9 11.8
Net gearing, % 32.1% -13.1% 32.1% -13.1%
Equity ratio, % 23.3% 47.4% 23.3% 47.4%
Gross investments in fixed assets 2.1 3.5 10.0 12.0
% of turnover 3.4% 7.6% 4.5% 7.5%
Earnings/share (undiluted), e 0.04 0.01 -0.12 0.07
Earnings/share (diluted), e 0.04 0.01 -0.12 0.07
Equity/share, e 0.14 0.27 0.14 0.27
Average personnel
during the period 264 253 273 264
Personnel at the end of
the period 257 263 257 263
CEO MATTI VIKKULA'S COMMENTS
"Year 2005 was a time of significant changes in operations and ownership for
Saunalahti. The changes presented significant challenges for the operations that
our active organisation handled well. Due to the changes, the non-recurring
expenses were on an exceptionally high level."
"The national structural change of the teleoperator field proceeds as Saunalahti
became part of Elisa Group. Thus, an even stronger Finnish teleoperator was
formed, which offers versatile and high-quality services to both consumer and
corporate customers."
"The price competition in the mobile market alleviated during the last quarter of
2005. I believe that service competition and wider use of 3G services in mobile
communications will dominate year 2006."
REVIEW OF OPERATIONS DURING OCTOBER-DECEMBER
TURNOVER
In October - December, Saunalahti Group's turnover increased by 36.9% and
amounted to EUR 62.7 million. The turnover of the mobile operations was EUR 53.6
million, thus increasing by 46.7% compared to the corresponding period in 2004.
The turnover of the fixed network operations amounted to EUR 9.1 million, thus
correspondingly decreasing by -1.7%.
BREAKDOWN OF TURNOVER PER SEGMENT
(EUR million)
10-12/05 10-12/04 Change,% 1-12/05 1-12/04 Change,%
Mobile operations 53.6 36.5 46.7% 187.2 112.5 66.3%
Fixed network operations 9.1 9.3 -1.7% 37.4 35.2 6.3%
Unallocated 0.0 0.0 0.0% 0.0 0.1 -100.0%
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Total 62.7 45.8 36.9% 224.6 147.8 51.8%
Discontinued operations 0.0 0.0 0.0% 0.0 13.1 -100.0%
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Group, total 62.7 45.8 36.9% 224.6 160.9 39.6%
FINANCIAL PERFORMANCE
During October - December, Saunalahti Group's operating result amounted to EUR
-0.9 million and the operating result without non-recurring items to EUR 1.1
million. The operating result of the mobile operations was EUR 4.0 million and
the operating result without non-recurring items was EUR 2.9 million. The
operating result of the fixed network operations was correspondingly EUR -1.6
million and the operating result without non-recurring items was EUR -0.7
million. The result before taxes for October - December amounted to EUR -1.0
million and the result after taxes to EUR 5.3 million. Of the losses and
temporary differences for 2005, the company recorded the change in tax assets in
the balance sheet. The effect of this on the result is EUR 6.3 million.
BREAKDOWN OF OPERATING RESULT PER SEGMENT
(EUR million)
10-12/05 10-12/04 1-12/05 1-12/04
Mobile operations 4.0 2.4 -11.6 4.5
Fixed network operations -1.6 -0.1 -3.2 1.2
Unallocated -3.2 -0.4 -7.8 6.6
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Group, total -0.9 1.9 -22.6 12.2
During the fourth quarter, the non-recurring items amounted to EUR -1.9 million
in total (MVNO settlement agreement made with Sonera Mobile Networks Oy, success
fees relating to the Elisa ownership arrangement and non-recurring depreciation
due to the standardisation of depreciation periods).
BREAKDOWN OF OPERATING RESULT WITHOUT NON-RECURRING ITEMS PER SEGMENT
(EUR million)
10-12/05 1-12/05
Mobile operations 2.9 1.8
Fixed network operations -0.7 -2.3
Unallocated -1.1 -4.1
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Group, total 1.1 -4.5
FINANCING AND INVESTMENTS
Saunalahti Group settled the majority of its liabilities to external financial
institutions by the end of 2005. On 31 December 2005, its interest-bearing long-
term liabilities amounted to EUR 0.1 million and interest-bearing short-term
liabilities to EUR 7.1 million. On 31 December 2005, the Group's net liabilities
amounted to EUR 6.3 million (-4.7). Correspondingly, net gearing was 32.1% (-
13.1%). In addition, the company has an interest-free loan of EUR 11 million from
Elisa. Elisa and Saunalahti have converted the loan in question into a capital
loan defined in the Finnish Companies Act with an agreement signed on 30 December
2005.
At the end of the review period, the Group's cash and cash equivalents amounted
to EUR 0.9 million. During the last quarter, the company joined Elisa's Group
account arrangement, which enabled the settling of the liabilities to external
financial institutions. On the other hand, this ensures the company's solvency as
well as effective use of capital.
CASH AND CASH EQUIVALENTS
(EUR million)
10-12/05 10-12/04 Change, % 1-12/04
Cash and cash equivalents 0.9 11.8 -92.4% 11.8
The figures in the table are at the end of the period.
During October - December, the investments in fixed assets amounted to EUR 2.1
million (3.5), i.e. 3.4% of turnover. The investments were entirely material
investments.
INVESTMENTS
(EUR million)
10-12/05 10-12/04 1-12/05 1-12/04
Investments 2.1 3.5 10.0 12.0
PERSONNEL
The average number of the Group's personnel during October - December was 264
employees (253). At the end of the review period, the number of employees was 257
(263).
PERSONNEL AT THE AND OF THE QUARTER
10-12/04 1-3/05 4-6/05 7-9/05 10-12/05
Personnel 263 272 278 280 257
DECISION BY THE EXTRAORDINARY GENERAL MEETING OF SAUNALAHTI GROUP OYJ ON 19
DECEMBER 2005
On 19 December 2005, the Extraordinary General Meeting of Saunalahti Group Oyj
decided that the Board of Directors comprises four members. Pekka Vennamo, Juha
Rantasila, Sami Ylikortes and Jyrki Arjanne were elected members of the Board of
Directors. Pekka Vennamo was elected Chairman of the Board of Directors.
This information is unaudited and is not based on signed financial statements.
ELISA CORPORATION
Vesa Sahivirta
Director, IR and Financial Communication
For further information, please contact:
CEO Matti Vikkula, Saunalahti Group Oyj,
tel. +358 45 6700 606, e-mail: matti.vikkula@saunalahtigroup.com
CFO Timo Lehtinen, Saunalahti Group Oyj,
tel. +358 45 6700 626, e-mail: timo.lehtinen@saunalahtigroup.com
DISTRIBUTION:
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