Tekla Corporation Stock Exchange Release 9.2.2007 at 9:00 a.m.
TEKLA CORPORATIONS FINANCIAL STATEMENTS BULLETIN JANUARY 1-
DECEMBER 31, 2006:
Tekla experienced excellent growth in net sales and profit
Net sales of Tekla Group for January-December 2006 totaled 49.78
(37.95) million euros. Growth in net sales was approximately 31
percent. The operating profit for the reporting period was 13.62
(6.39) million euros. The operating result increased to 27.4% of
net sales (16.8% for the previous year).
Net sales for the fourth quarter were 15.49 (11.60) million euros,
increasing by 33.5% compared to the same period in 2005. The
operating result for the quarter was 4.79 (2.98) million euros.
Ari Kohonen, President and CEO of Tekla Corporation, comments the
financial statements for 2006:
- The net sales and operating result for 2006 and the operating
result for the fourth quarter were better than ever before. In the
software product business, it is possible to react swiftly to
increased demand, and the profitability of additional sales is
good. The market situation was good in most of Teklas market
areas, and we had a strong market position. The growth in our key
business area, Building & Construction, continued, and its
financial results were outstanding. Our other business areas saw
favorable development as well, reaching a positive operating
result.
- We have increased our personnel during 2006 both in and outside
Finland. New employees have been recruited to all functions, with
a particular focus on product development. The personnel
recruitment aims to ensure the prerequisites for long-term growth.
- At Tekla we will focus further on product-oriented business in
the future. We have recently signed a letter of intent to sell our
project-oriented Defence business to the Finnish company Patria.
The deal was published in a separate stock exchange release
on 9.2.2007. As a part of focusing our strategy, we also merged
our energy (Energy & Utilities) and municipal (Public Infra)
business areas into a new business area Infra & Energy. Our
objective there is a more extensive software portfolio for our
customers as well as making operations more effective in product
development and maintenance functions.
- Tekla has experienced forceful growth during the last two years.
This has been primarily due to growth in license sales which was
more than 50% in 2006. The forecasts concerning the development of
our business made in the beginning of 2006 turned out to be too
conservative. As for 2007, Teklas Board of Directors estimates
net sales to increase by some 15 percent. The number of personnel
is expected to continue increasing. We estimate the operating
result of the continuing businesses to improve from 2006. Major
part of net sales and profit will be generated in the Building &
Construction business area in the future as well.
- The year 2006 was a special year for Tekla: our 40th
anniversary. The Board proposes to the Annual General Meeting a
dividend of 20 cents plus an extra dividend of 20 cents due to the
anniversary, in total 40 cents per share be distributed.
- - -
Tekla is the industry-leading international software company whose
innovative software solutions make customers core business more
effective in building and construction, energy distribution and in
municipalities. The companys model-based software products and
related services are used in more than 80 countries. Tekla Groups
net sales for 2006 were approximately 50 million euros and
operating result 13.6 million euros. International operations
accounted for 75% of net sales. Tekla Group employs more than 350
persons, of whom a third work outside Finland. Tekla was
established in 1966, making it one of the oldest software
companies in Finland. For additional information on Tekla, please
visit www.tekla.com
TEKLA CORPORATIONS FINANCIAL STATEMENTS JANUARY 1-DECEMBER 31,
2006
NET SALES AND PROFITABILITY
* Net sales of Tekla Group were 49.78 million euros
(37.95 million euros in 2005).
* Growth in net sales was 31.2%.
* Operating result was 13.62 (6.39) million euros.
* Operating profit percentage was 27.4 (16.8).
* Earnings per share were 0.45 (0.26) euros.
* Return on investment was 63.1 (32.7) percent.
* Return on equity was 48.5 (28.3) percent.
FINANCIAL POSITION
* Cash flow from operating activities totaled 13.01 (6.67) million
euros.
* Liquid assets amounted to 24.24 (15.31) million euros on
December 31, 2006.
* Equity ratio was 63.4 (61.1) percent.
* Interest-bearing debts were 0.69 (1.34) million euros.
OTHER KEY FIGURES
* International operations accounted for 75% (72%) of net sales.
* Personnel averaged 324 (299) during 2006.
* At the end of 2006, the number of personnel including part-time
staff was 365 (324).
* Gross investments in property, plant and equipment were 1.33
(1.30) million euros.
* Equity per share was 1.10 (0.76) euros.
* On the last trading day of the year, trading closed at 7.88
(3.42) euros.
NET SALES AND OPERATING RESULT BY BUSINESS AREA (PRIMARY SEGMENT)
Million euros
Net sales Operating profit (loss)
1-12/06 1-12/05 change 1-12/06 1-12/05 change
Building &
Construction 35.88 25.19 10.69 12.77 6.54 6.23
Energy &
Utilities 7.39 6.29 1.10 0.52 -0.48 1.00
Public Infra 4.28 4.23 0.05 0.44 0.28 0.16
Defence 2.23 2.24 -0.01 0.32 0.14 0.18
Others 0.00 0.00 0.00 -0.43 -0.09 -0.34
Total 49.78 37.95 11.83 13.62 6.39 7.23
NET SALES AND RESULT BY QUARTER IN 2006 AND 2005
Million euros 10-12/06 7-9/06 4-6/06 1-3/06 10-12/05
Net sales 15.49 11.71 12.05 10.53 11.60
Operating profit (loss) 4.79 3.88 3.10 1.85 2.98
Profit(loss) before taxes 4.71 4.08 3.03 1.95 2.83
Profit(loss) for the period 3.51 2.90 2.32 1.43 1.89
BUSINESS AREAS
Building & Construction
Teklas Building & Construction business area (B&C) develops and
markets the Tekla Structures software product for model-based
design of steel and concrete structures as well as the management
of fabrication and construction.
The trends in the building industry have remained favorable in
nearly all key market areas. Demand for modeling systems is still
on the rise, and product modeling is strengthening its foothold in
structural design and other phases of the building process. The
strengthening of Teklas market position continued during 2006.
The net sales of B&C amounted to 35.88 (25.19) million euros for
2006. Net sales increased by approximately 42% compared to the
previous year. Operating profit nearly doubled, reaching 12.77
(6.54) million euros.
The business areas product offering (Tekla Structures) comprises
several standardized modules. In the software product business,
costs are relatively fixed and costs from additional sales quite
low. B&Cs operating profit percentage for the reporting period
was 35.6% (26.0%).
International operations accounted for 94% (94%) of B&Cs net
sales. Tekla Structures users could be found in more than 80
countries. North America, the United Kingdom and France were still
the largest markets. With regard to B&Cs key market areas, the
highest proportional growth in net sales was seen in the Middle
East, India, the Far East and the Nordic countries.
By far the most of B&Cs net sales were still due to the product
offering for structural steel engineering. Several customers using
the new precast concrete product were also won during the year.
The number of Tekla Structures licenses sold exceeded the 10,000
mark in October 2006.
Consolis, the leading manufacturer of structural precast concrete
elements in Europe, signed a framework agreement on the purchase
of Tekla Structures licenses late in the summer. The agreement was
a strategic choice for the Consolis Group, as Consolis announced
its decision to take the software into use as a central design
tool.
Mammut Group, a group of building and construction companies
operating in the Middle East, announced in June that it will
invest heavily in Tekla Structures. After the software is fully in
use at Mammut in 2007, the Group will be the largest Tekla
Structures user worldwide in terms of number of licenses.
At the beginning of 2006, the US-based, globally operating
construction company Bechtel acquired a significant number of new
Tekla Structures licenses to supplement its previous licenses.
The trends in the building industry were favorable throughout the
reporting period, and they are expected to continue that way in
2007 as well. The profitability of the business area is estimated
to remain at a good level. In order to facilitate long-term
growth, B&Cs personnel resources will be further increased.
Energy & Utilities
The Energy & Utilities (E&U) business areas software products
(Tekla Xpower, Tekla Xpipe) offer energy distribution companies
and water utilities solutions that improve their business and
operative efficiency and competitiveness. E&Us business comprises
mostly sales of additional licenses and services to the existing
customer base.
As for the energy industry, there is continued interest in network
information systems also outside the Nordic countries and the
Baltic states. The high price of energy improves the profitability
of energy companies and increases IT investment opportunities. In
the Nordic countries, there is particular demand for network
information systems that provide operative support during storms
and other failure situations. The aging of electricity networks
and improvement in reliability and quality emphasize the
significance of network systems from the point of view of property
management and maintenance.
The net sales of E&U amounted to 7.39 (6.29) million euros for
2006. Net sales increased by 17.5%. E&Us operating result for the
reporting period was 0.52 (-0.48) million euros. International
operations accounted for 49% (51%) of net sales. E&Us operating
profit percentage for the reporting period was 7.0% (-7.6%).
Several Tekla Xpower system expansions were delivered to Finnish
customers during the year. Tekla Xpower orders were delivered to
new customers in Sweden, as were system expansions to existing
customers. Two system expansion deliveries took place in the
Baltic states at the beginning of the year, and a new district
heating customer was won. The Tekla Xpower expansion project in
Malaysia proceeded and additional licenses were sold. Demand for
Tekla Xpipe picked up towards the end of the year.
Public Infra
The Public Infra (PI) business areas information systems (Tekla
Xcity, Tekla Xstreet) make municipalities operations more
effective in the technical sector and infrastructure management.
Demand for geographic information systems for the public sector is
steady in the European market. Growth is anticipated in the
developing regions of Eastern Europe. In Finland, increasing
regional collaboration and requirements for making municipal
operations more efficient are laying the foundation for the
development of information systems in this sector. Teklas market
position is strong in large and medium-sized Finnish
municipalities.
The net sales of PI amounted to 4.28 (4.23) million euros in 2006.
PIs operating result was 0.44 (0.28) million euros. International
operations accounted for 7% (5%) of net sales. PIs operating
profit percentage for the reporting period was 10.3% (6.6%).
Tekla Xcity system expansions were delivered to several customers
in Finland. Agreements on the use of regional services were signed
with several Finnish customers. The eModel project, connected with
managing the environment, started with a few Finnish cities.
New Infra & Energy business area
At the beginning of 2007, the Energy & Utilities and Public Infra
business areas merged into a new business area, Infra & Energy.
Infra & Energy focuses on development and sales of model-based
software solutions that support customers core processes. Its key
customer industries are energy distribution, infrastructure
management and water supply. With the restructuring, Tekla aims to
ensure a more comprehensive software offering for its customer
industries as well as improve its internal efficiency in product
development and maintenance.
The new business areas offering is expected to meet market demand
in all of its customer industries, with continued brisk sales of
additional and service sales to existing customers. New customers
are expected from among Swedish energy companies as well as
Finnish and Swedish water utilities. Business opportunities in
Eastern Europe are being explored in cooperation with local
partners. The customer base in the infrastructure management
sector is expected to expand with the adoption of regional
services.
Defence
The Defence business area develops reconnaissance, command and
control systems in close cooperation with the Finnish Defence
Forces.
The business areas net sales for 2006 amounted to 2.23 (2.24)
million euros. Its operating result was 0.32 (0.14) million euros.
Profitability was at a good level; the business areas operating
profit percentage was 14.3 (6.3).
The Defence business developed favorably during 2006, and the
volume of orders in hand increased notably towards the end of the
year. The business area has promising prospects.
On 9.2.2007 Tekla announced having signed a letter of intent with
the Finnish company Patria on sale of Tekla Defence.
RESEARCH AND PRODUCT DEVELOPMENT
Research and product development is a significant competence block
in a software house. Around a third of Teklas personnel are
engaged in research and product development.
During the last three years, Tekla has integrated Microsoft .NET
technology into the software platform that forms the basis of
Teklas products. Several products making good use of this
integration have already been released, for example in the fields
of mobile and browser use. The end of June 2006 saw the release of
Tekla Structures 12.0, the first product version using application
programmability with .NET technology. The most significant
innovation in the product version is its open application
programming interface to the different functions and information
in the application. With this interface, users and third parties
may better adapt Tekla Structures for their own specific needs.
During the second half of 2006, product development for the
building sector focused on the next main version of Tekla
Structures, which will address the country-specific
characteristics of structural steel modeling, for instance.
Main versions of the Tekla Xpower and Tekla Xpipe software
products were delivered to customers at the end of the year. In
2006, product development focused particularly in reforming the
user interface and improving usability.
Development of the Tekla Xcity and Tekla Xstreet software products
was conducted in close cooperation with customers. With regard to
Tekla Xcitys product development, a development project of the
WebMap Internet map server was carried out. The data transfer
development project carried out within Tekla Xstreet as a part of
Tekes (National Technology Agency) Infra technology program was
completed in March.
RISK MANAGEMENT
The purpose of Teklas risk management is to detect, analyze and
aim to control possible threats and risks connected with
operations. Group-level policies and guidelines define the
principles and key content of risk management with regard to
certain risks. Risks are monitored, coordinated and managed on the
group level, but each unit is responsible for managing risks of
its own activity.
Tekla takes business risks connected primarily with strategy and
objectives. The company aims to avoid risks that jeopardize or
damage the continuity of operation. The business risks are limited
by the Boards and the Management teams active and interactive
work in developing strategies. Risks are minimized by means of
insurance or transferring them by agreement.
Teklas financial risks comprise of currency, liquidity, credit
and interest rate risks. Currency risks are managed by hedging net
payment flow in the most important foreign currencies. Investing
the liquid assets is done with minimal risk according to
principles decided by the Board. The notes to the financial
statements include a more detailed description of the financial
risks.
ENVIRONMENT
The direct environmental consequences of Teklas business are
minimal. The direct environmental effects arising from the use of
the companys products are not considered to be significant.
PERSONNEL AND ORGANIZATION
Personnel
The Group personnel averaged 324 in 2006 (2005: 299, 2004: 368);
on average 107 (2005: 95, 2004: 98) worked outside Finland. In
these figures, the number of part-time staff has been converted to
correspond to full-time work contribution. At the end of 2006,
Tekla personnel totaled 365 (2005: 324, 2004: 309) including part-
time staff, of whom 123 (2005: 100, 2004: 99) worked outside
Finland. The number of employees increased by 12.7% in 2006. New
employees were recruited for all functions, with a particular
focus on product development.
The average age of Teklas employees was 37.5 (37.9) years. Of the
personnel, 66% (66%) had a higher academic degree or university-
level studies. 27% (27%) of Tekla employees were female, 73% (73%)
male. The turnover of personnel was 8.2% (7.5%).
The company has a compensation and incentive system applied to all
employees, and the Tekla Board of Directors decides on its
principles on an annual basis. They are connected with the
achievement of the previous years operative and financial goals
as well as share price development. Tekla has no valid option
programs.
In 2006 salaries totaled 18.7 (2005: 15.8 and 2004: 17.5) million
euros.
Senior management
Members of the Tekla Management Team in 2006 were Ari Kohonen,
President and CEO, Heikki Multamäki, Executive Vice President
(responsible for Energy & Utilities), Risto Räty, Executive Vice
President (Building & Construction), Petri Raitio, Senior Vice
President (Software Production), Leif Granholm, Senior Vice
President (Country Director of Tekla Sweden), Harald Lundberg,
Vice President (Information Management), Anneli Bergström, Vice
President (Human Resources), and Timo Keinänen, CFO.
Harri Nurmi, Director of the Corporate Planning unit and member of
the Tekla Management Team, resigned from the company on October
31, 2006.
As of the beginning of 2007, Kai Lehtinen, Director responsible
for the new Infra & Energy business area, was appointed as Senior
Vice President and member of the Tekla Management Team. Heikki
Multamäki, former Director of the Energy & Utilities business
area, continues as Teklas Executive Vice President and member of
the Tekla Management Team, and is responsible for Teklas business
development.
Regional offices
With the expansion of the Building & Construction business areas
international business, a liaison office was established in Mumbai
in the spring of 2006.
As a part of B&Cs organizational reform in the Nordic countries,
Tekla opened an office in Denmark.
The Norwegian office, which focused on E&U operations, was closed
down in the fall, and its functions were transferred to the parent
company.
Tekla currently has own offices in 12 countries.
TEKLAS ANNIVERSARY
In 2006, 40 years had passed since the establishment of Tekla. The
anniversary was mainly celebrated by working. A festive seminar
was arranged for Finnish customers and other significant
stakeholders in Espoo at the end of September. This event also saw
the publication of Teklas 40th anniversary history book.
SHARE AND OWNERSHIP STRUCTURE
Shares and Share Capital
The total number of Tekla Corporation shares at the end of
December 2006 was 22,586,200, of which the company owned 69,600.
The total nominal value of those was 2,088 euros, representing
0.3% of the total share capital and the total number of votes. A
total of 220,702.46 euros had been used for acquiring the
companys own shares, and their market value was 548,448 euros on
December 31, 2006. The nominal value of the share is 0.03 euros.
At the end of the period, share capital stood at 677,586 euros.
Share Price Trends and Trading
The highest quotation of the share in 2006 was 7.90 (3.60) euros,
the lowest 3.38 (1.85) euros. The average quotation was 5.24
(2.87) euros. On the last trading day of the year, trading closed
at 7.88 (3.42) euros. The share price increased by some 130%
during the financial period.
A total of 13,741,585 (8,026,165) Tekla shares changed hands
during 2006, amounting to 61% (35.5%) of the entire share capital.
Nominee registered and foreign owners held 17.45% (5.29%) of all
shares at the end of 2006.
Changes in ownership structure (flaggings)
Fidelity International, one of the worlds biggest asset
management companies, and its subsidiaries became Tekla
shareholders in January. According to a flagging announcement,
Fidelitys funds acquired 10% of Tekla Corporation shares on
January 27, 2006. At the end of October, it was announced that
Fidelity Internationals and its subsidiaries holdings had
decreased to 9.78% on October 19, 2006.
According to a flagging announcement, Teklas long-term majority
shareholder Gerako Oy sold shares on January 27, 2006, and its
shareholding in Tekla decreased from more than 50% to some 38
percent.
Tapiola Group issued a notification on May 5, 2006, that the total
holdings of the entity consisting of Tapiola General Mutual
Insurance Company, Tapiola Mutual Life Assurance Company, Tapiola
Corporate Life Insurance Company Ltd. and the investment funds
managed by Tapiola Fund Management Company had decreased to under
5% from 6.86%.
ANNUAL GENERAL MEETING
Tekla Corporations Annual General Meeting on March 16, 2006
adopted the financial statements, consolidated income statement
and balance sheet for 2005. The Annual General Meeting also
discharged the CEO and the Board members from liability. The AGM
accepted the Boards proposal whereby a dividend of 0.12 euros per
share be distributed for 2005.
Ari Kohonen, Esa Korvenmaa, Olli-Pekka Laine (Vice Chair) and
Heikki Marttinen (Chair) were re-elected Board members and Timo
Keinänen as deputy Board member. Erkki Pehu-Lehtonen was elected
as a new member to the Board.
PricewaterhouseCoopers Oy were re-elected as auditors. Markku
Marjomaa, Authorized Public Accountant, acts as the auditor in
charge.
The AGM renewed the Boards authorizations regarding the increase
of the companys share capital, personnel issue and transferring
the companys treasury shares. In addition, the AGM authorized the
Board to Acquire 1,000,000 Tekla shares. The Board did not use its
authorizations in 2006.
Kaija Komulainen-Laakso was the Tekla personnel representative on
the Board until September 15, 2006, and Juha Kajanen as of
September 16, 2006.
EVENTS AFTER THE REPORTING PERIOD
A new business area, Infra & Energy, started operation at the
beginning of 2007 as a result of the merging of the Energy &
Utilities and Public Infra business areas. The merger has been
described in more detail earlier in this bulletin.
According to Tekla's stock exchange release of 9.2.2007, a letter
of intent has been signed with the Finnish company Patria on sale
of Defence business area.
OUTLOOK FOR 2007
As for 2007, Teklas Board of Directors estimates net sales to
increase by some 15 percent. The number of personnel is expected
to continue growing. The operating result of the continuing
businesses is estimated to improve from 2006. Major part of net
sales and profit will be generated in the Building & Construction
business area in the future as well.
BOARDS PROPOSAL FOR THE DISTRIBUTION OF PROFIT
Tekla Corporations Board will propose to the Annual General
Meeting, to be held March 15, 2007, that a dividend of 0.20 euros
plus an extra dividend of 0.20 euros due to the anniversary be
distributed for the financial period 2006. It makes a dividend of
0.40 euros per share and a total dividend payment of 9,006,640
euros. No dividend shall be paid on the 69,600 shares held by the
company.
NEXT FINANCIAL REPORT
Tekla Corporations Interim report for January-March 2007 will be
published on April 27, 2007.
Espoo, February 8, 2007
TEKLA CORPORATION
Board of Directors
For additional information, please contact:
Ari Kohonen, President and CEO, Tel. +358 30 661 1468, +358 50 641
24,
ari.kohonen @ tekla.com
Timo Keinänen, CFO, Tel. +358 30 661 1773, +358 400 813 027,
timo.keinanen @ tekla.com
Distribution: Helsinki Exchanges
Main Media
Enclosures: Consolidated income statement, balance sheet and
cash flow statement
Calculation of reconciliation of equity
Financial indicators, other information
Collaterals, contingent liabilities and other
commitments
CONSOLIDATED INCOME
STATEMENT
Million euros Q1-Q4/ Q1-Q4/ Change Q4 Q4 Change
2006 2005 % 2006 2005 %
Net sales 49.78 37.95 31.2 15.49 11.60 33.5
Other operating 1.02 0.49 0.33 0.22
income
Change in inventories 0.03 -0.21 -0.10 -0.20
of finished goods and
in work in progress
Raw materials and -2.01 -1.63 -0.87 -0.54
consumables used
Employee compensation -22.90 -19.81 -6.51 -5.53
and benefit expense
Depreciation -1.19 -1.09 -0.30 -0.29
Other operating -11.11 -9.31 -3.25 -2.28
expenses
Operating profit 13.62 6.39 113.1 4.79 2.98 60.7
(loss)
% of net sales 27.36 16.84 30.92 25.69
Finance costs (net) 0.15 0.69 -0.08 -0.15
Profit (loss) before 13.77 7.08 94.5 4.71 2.83 66.4
taxes
% of net sales 27.66 18.66 30.41 24.40
Income taxes -3.61 -1.28 -1.20 -0.94
Profit (loss) for the 10.16 5.80 75.2 3.51 1.89 85.7
period
The taxes are based on the result for the period.
CONSOLIDATED BALANCE
SHEET
Million euros 12/2006 12/2005 Change,%
Assets
Non-current assets
Property, plant and 1.82 1.86
equipment
Goodwill 0.10 0.10
Intangible assets 0.51 0.45
Other financial 0.30 0.30
assets
Receivables 0.56 0.00
Deferred tax assets 0.36 0.68
Non-current assets, 3.65 3.39 7.7
total
Current assets
Inventories 0.06 0.03
Trade and other 11.75 9.80
current receivables
Tax receivables 0.00 0.00
Other financial 18.60 11.71
assets
Cash and cash 5.69 3.66
equivalents
Current assets total 36.10 25.20 43.3
Assets total 39.75 28.59 39.0
Equity and liabilities
Equity
Share capital 0.68 0.68
Share premium account 8.89 8.89
Other own capital 1.22 1.32
Retained earnings 13.93 6.32
Equity total 24.72 17.21 43.6
Non-current liabilities
Pension benefit 0.00 0.00
liabilities
Provisions 0.83 0.68
Interest-bearing 0.27 0.69
liabilities
Non-current liabilities 1.10 1.37 -19.7
total
Current liabilities
Trade and other 12.64 9.36
payables
Tax liabilities 0.86 0.00
Current interest- 0.43 0.65
bearing liabilities
Current liabilities 13.93 10.01 39.2
total
Liabilities total 15.03 11.38 32.1
Equity and liabilities 39.75 28.59 39.0
total
CALCULATION OF RECONCILIATION OF EQUITY
Share Share Res. Fair Acc. Ret. Total
cap. prem. fund value transl earn.
acct res. diff.
Equity January 0.68 8.89 1.33 0.04 -0.05 6.32 17.21
1, 2006
Translation -0.16 0.15 -0.01
differences
Available-for- 0.06 0.06
sale financial
assets
Payment of -2.70 -2.70
dividend
Net profit for 10.16 10.16
the period
Equity December 0.68 8.89 1.33 0.10 -0.21 13.93 24.72
31, 2006
Share Share Res. Fair Acc. Ret. Total
cap. prem. fund value transl earn.
acct res. diff.
Equity January 0.68 21.44 1.32 0.06 -0.08 0.37 23.79
1, 2005
Translation 0.03 -0.01 0.02
differences
Available-for- -0.02 -0.02
sale financial
assets
Transfer from -0.17 0.01 0.16 0.00
reserves
Return of -12.38 -12.38
capital
Net profit for 5.80 5.80
the period
Equity December 0.68 8.89 1.33 0.04 -0.05 6.32 17.21
31, 2005
CASH FLOW STATEMENT
Million euros 12/2006 12/2005 Change, %
Cash flows from operating 13.01 6.67
activities
Cash flows from investing
activities:
Investments -1.33 -1.00
Sale of intangible assets 0.13 0.01
and property, plant and
equipment
Purchases of available-for- -48.64 -50.01
sale financial assets
Proceeds from sale of 43.84 56.41
available-for-sale
financial assets
Interests received from 0.40 0.43
available-for-sale
financial assets
Net cash used in/from -5.60 5.84
investing activities
Cash flows from financing
activities:
Return of capital 0.00 -12.38
Payment of dividend -2.70 0.00
Repayments of long-term -0.59 -0.37
debt
Payments of finance lease -0.06 -0.14
liabilities
Net cash used in financing -3.35 -12.89
activities
Net decrease/increase in 4.06 -0.38
cash and cash equivalents
Cash and cash equivalents at 3.72 4.10 -9.3
beginning of the period
Cash and cash equivalents at 7.78 3.72 109.1
end of the period
The cash and cash equivalents in the
cash flow statement include:
Cash and cash equivalents 5.69 3.66
Available-for-sale financial
assets,
Cash equivalents 2.09 0.06
FINANCIAL INDICATORS 12/2006 12/2005
Earnings per share (EPS), 0.45 0.26
EUR
Equity/share, EUR 1.10 0.76
Interest-bearing liabilities 0.69 1.34
Equity ratio, % 63.4 61.1
Net gearing, % -95.2 -81.2
Return on investment, % 63.1 32.7
Return on equity, % 48.5 28.3
Number of shares, end of period
22,516,600 22,516,600
Number of shares, average 22,516,600 22,516,600
OTHER INFORMATION 12/2006 12/2005
Gross investments, MEUR 1.33 1.30
% of net sales 2.67 3.43
Personnel, on average 324 299
COLLATERALS, CONTINGENT LIABILITIES AND OTHER COMMITMENTS
12/2006 12/2005
Collaterals for own
commitments
Business mortgages (as 0.50 0.50
collateral for bank
guarantee limit)
Pledged funds 0.08 0.03
Other contingent liabilities
Guarantees 0.07 0.26
Leasing and rental
agreement commitments
Premises 3.38 4.51
Others 0.87 0.85
Total 4.25 5.36
Derivative contracts
Currency forward
contracts:
Fair value 3.80 2.12
Nominal value of 3.85 2.08
underlying instruments
The Group makes derivative contracts to hedge against the exchange
rate risks of prospective sales agreements. Forward contracts and
currency options are stated at fair value, and related foreign
exchange gains and losses are recognized in the income statement.
The derivative contracts hedge net payment flow in US dollars.
The figures are not audited.
Tekla Corporation's Financial Statements Bulletin January 1 - December 31, 2006: Tekla experienced e
| Source: Tekla