IXONOS PLC STOCK EXCHANGE RELEASE 1 AUGUST
IXONOS PLC INTERIM REPORT 1 JANUARY - 30 JUNE 2007
IXONOS TURNOVER CONTINUED STRONG GROWTH
- Turnover for the review period was EUR 27.3 million (2006: EUR 18.2 million),
turnover growth was 50.4 percent. Organic turnover growth was 37.4 percent.
- Operating profit was EUR 2.3 million (2006: EUR 1.7 million), 8.5 percent of
turnover, operating profit growth was 39.3 percent.
- Operating profit without one-off expenses was EUR 2.9 million (2006: EUR 1.8
million), 10.5 percent of turnover, operating profit growth without one-off
expenses was 57.0 percent.
- Net profit was EUR 1.6 million (2006: EUR 1.2 million), 5.9 per cent of
turnover, net profit growth was 33.6 percent.
- Net profit without one-off expenses was EUR 2.0 million (2006: EUR 1.4
million), 7.4 percent of turnover, net profit growth without one-off expenses
was 52.1 percent.
- Earnings per share were EUR 0.20 (2006: EUR 0.17).
- Earnings per share without one-off expenses were EUR 0.27 (2006: EUR 0.19).
- Diluted earnings per share were EUR 0.20 (2006: EUR 0.16).
- Diluted earnings per share without one-off expenses were EUR 0.27 (2006: EUR
0.19).
- Turnover of the Systems Services Business Unit for the review period was EUR
10.5 million (2006: EUR 6.4 million), turnover increase was 63.8 percent.
Operating profit of the Business Unit was EUR 1.2 million (2006: EUR 0.8
million), 11.1 percent of turnover, operating profit growth was 53.2 percent.
- Turnover of the Telecommunications Business Unit for the review period was EUR
17.1 million (2006: EUR 11.9 million), an increase of 43.2 percent. Operating
profit of the Business Unit was EUR 2.7 million (2006: EUR 1.6 million), 15.9
percent of turnover, operating profit growth was 71.7 percent.
- The turnover for the third quarter is expected to be significantly higher than
in the previous year, and the company's twelve-month turnover is estimated to
exceed EUR 55 million.
- Due to the holiday season and upfront recruitment, the Group's operating
profit percentage in the third quarter is expected to fall slightly below that
of the first half of the year. The operating profit percentage for the fiscal
year (without the one-off expenses of the first quarter) is expected to be on
the same level as in 2006, and the operating profit is expected to clearly
exceed that of fiscal 2006.
President and CEO, Kari Happonen:
The company's turnover continued strong growth throughout the review period and
exceeded, as expected, the turnover of the first 6 months of the previous year
by 50 percent. In addition to successful corporate acquisitions, the Group's
turnover for the period was boosted by strong pro forma organic growth, over 37
percent compared to 2006.
Like in the first quarter, both Business Units grew significantly faster than
market in second quarter. Thus, we have continued to win market share from our
competitors.
Due to the EUR 0.55 million one-off expenses in the first quarter, related to
the change of the company name and the revamping of the corporate image, our
operating profit percentage fell slightly short of the level of the same period
in 2006. However, without the one-off expenses our relative profitability was on
the same level as in the previous year and operating profit grew strongly, 57
percent.
We believe that both of our Business Units will continue to grow strongly in the
latter half of the year. Despite fast growth, the expected wage increases in
autumn and fierce price competition, we expect that we can keep our business
operations on a very good profitability level.
To support our new strategy, we acquired Mermit Business Applications Oy in May.
Founded in 1999, Mermit is a widely valued specialist company producing business
critical information system solutions and services. The acquisition
significantly strengthens our capability to deliver systems services projects
and enhances our delivery capacity of demanding specification, design,
architecture and integration services.
The personnel of Mermit Business Applications Oy comprises 65 highly educated
specialists in Espoo, Tampere and Turku. All employees moved to the Ixonos Group
with existing status and benefits. The services of Mermit cover systems and
technology consulting, architecture consulting as well as systems design and
specification.
Our annual customer satisfaction survey, which was published in June, once again
gave very positive feedback on our operations and the development work we have
done. Our customers value Ixonos' reliability and capability to take on agreed
responsibilities, business segment competence, as well as customer-specific
flexibility. The overall satisfaction with the services we offer is on a high
level and exceeds the maximum value of the reference data of Market-Visio, the
research company that carried out the survey. Our customers also expressed
stronger interest in more extensive cooperation with Ixonos. Since the free
replies indicated that our customers are especially pleased with the skills,
responsible attitude and service mindedness of the Ixonos professionals, I want
to congratulate our entire personnel for an excellent performance.
According to the survey, the customers have welcomed the change of the company
name, which was carried out in February. Feedback that we have received from
other sources shows that also other interest groups have appreciated the change.
And now we see that the company's new name and new identity have had a positive
impact on the corporate image, enhanced recruitment and strengthened the
commitment of the personnel, which can be seen, for example, as a decrease of
personnel turnover.
FUTURE PROSPECTS
Market analysts estimate that the growth of the Finnish ICT service market will
be 4-6 per cent in 2007. If private companies and public administration
organizations increase, even moderately, their investments to upgrade and
develop their information systems and software, Ixonos Systems Services unit has
potential to boost its business. Accelerated by the new large-scale services
with extensive responsibility as well as the project management services, the
Unit's turnover is expected to continue to grow in the third quarter and
throughout the financial period. The profitability of the Unit in the latter
half of the year is forecasted to slightly improve compared to the first half of
the year.
The growth expectations for the Telecommunications Unit are based one the
increasing demand for comprehensive-responsibility software development,
integration and testing services across a wider customer base, as well as the
growing smartphone markets. The third quarter business volume of the
Telecommunications Unit is predicted to be on the same level as in the second
quarter, considering the holiday season, and increase in the last quarter. The
profitability of the Unit is expected to stay on a good level throughout the
fiscal year.
Judging from the Business Units' order backlogs and tender prospects, the
turnover of Ixonos Group in the third quarter is expected to significantly
exceed the turnover of the same period in 2006, and the 12-month turnover is
expected to exceed EUR 55 million.
Due to the holiday season and upfront recruitment, the Group's operating profit
percentage in the third quarter is expected to fall slightly below that of the
first half of the year. The operating profit percentage for the fiscal year
(without the one-off expenses of the first quarter) is expected to be on the
same level as in 2006, and the operating profit is expected to clearly exceed
that of fiscal 2006.
BUSINESS OPERATIONS
Ixonos operates in the ICT service markets, offering its customers flexible
technology consulting, software development, maintenance and project management
solutions that support their competitiveness and risk management. Ixonos'
services cover consulting and expert services related to project management, as
well as software project deliveries and maintenance services with comprehensive
responsibility.
Ixonos' operational business is organized into two Business Units, Systems
Services and Telecommunications. The Systems Services Unit develops and
maintains software that is part of the customer companies' information systems,
and it also produces project management services. The Unit's most significant
customers operate in the telecommunications, finance and public administration
sectors.
The Telecommunications Unit produces software development, integration and
testing services for the telecommunications sector. The Unit's clientele
comprises leading mobile and smartphone manufacturers operating on the
international markets, as well as mobile network suppliers and telecom carriers.
The Ixonos Group comprises Ixonos Project Management Services, a company
producing project management expert services, Mermit Business Applications Oy, a
company producing technology consulting services, and Ixonos Slovakia s.r.o.
that supports both Business Units. Ixonos Testhouse Oy is a Slovakia-based
subsidiary producing smartphone software testing and quality assurance services
in Kosice. The company has a subsidiary on Tallinn, Estonia, Ixonos Testhouse
Estonia OÜ.
Systems Services
During the period under review, the turnover of the Ixonos Systems Services Unit
turnover grew by 63.8 percent, amounting to EUR 10.5 million (2006: EUR 6.4
million). During the review period the Unit's turnover was boosted by the launch
of new customer projects, the strong growth of Service 4 Mobile Oy (now Ixonos
Project Management Services Ltd.), a company acquired in June 2006 producing
project management services, as well as the turnover of Mermit Business
Applications Oy, which was merged with Unit's turnover from 1 June.
Upfront recruitment, which is a prerequisite for strong organic growth, was
continued in the second quarter. Despite this the Unit managed to improve
relative profitability, and the operating profit for the review period grew 53.2
percent to EUR 1.2 million (2006: EUR 0.8 million. The Unit's profitability is
forecasted to continue to improve in the latter half of the year.
During the review period, strong efforts were made in the Unit to develop
project delivery capabilities, open architecture solutions, data security
services for Open Source applications, as well as streamlined delivery methods.
The acquisition of Mermit Business Applications Oy further strengthens the
Unit's skills and delivery capabilities, especially in data system
specification, design and architecture services, which sharpens Ixonos'
competitive edge in e.g. future projects to renew public administration
information systems.
The integration of the software production capacity of the Slovakian subsidiary
into the Unit's software production services with comprehensive responsibility,
which was launched in the first quarter, was continued in the second quarter.
The resources of the Slovakian subsidiary were utilized also in the Unit's
internal software and methods development.
Competition remained fierce on the markets of the Systems Services Unit
throughout the review period.
Telecommunications
During the period under review, the turnover of the Ixonos Telecommunications
Unit grew by 43.2 percent, amounting to EUR 17.1 million (2006: EUR 11.9
million). The Unit managed to maintain, and in some cases to increase, its
market share with its key customers. The Unit continued the design work of
several extensive customer projects as deliveries with comprehensive
responsibility, and it launched a new big project with comprehensive
responsibility where an entire wireless telecommunication device is designed for
a key customer.
During the review period, relative profitability of the Telecommunications Unit
improved compared to the previous year, and operating profit grew 71.7 percent
to EUR 2.7 million (2006: EUR 1.6 million).
The Unit's strong smartphone competence as well as the lower-cost services in
Estonia and Slovakia support the Unit's competitiveness when competing for
large-scale customer projects with comprehensive responsibility and when
aspiring to expand to new customerships on the international smartphone markets.
During the review period, Ixonos Testhouse Ltd, the subsidiary producing
smartphone software testing services, and its Tallinn-based subsidiary Ixonos
Testhouse Estonia OÜ grew into an entity employing more than 50 people.
The operations of the Telecommunications Unit's subsidiary in Kosice were
launched according to plan during the review period. The unit in Kosice
produces software development services for all stages of software project
production, and it implements part-projects in software ventures for the
Telecommunications Unit's key customers. At the end of the review period, the
staff of the unit in Kosice comprised approximately 30 telecommunications
software experts.
During the review period, the Telecommunications Unit launched a large internal
development project aiming to expand and deepen the Unit's Linux skills, as well
as to develop software and components for Linux-based mobile communication.
The global competition for the software ventures of the leading international
mobile and smartphone manufacturers remained fierce.
NEAR-FUTURE UNCERTAINTY FACTORS
The aim of Ixonos Plc's risk management is to ensure undisturbed and continuous
business operations and development, and to support the implementation of the
company's operational targets and to increase the company's value. The risk
management organization, process and recognized risks are explained on the
company's website.
Presently the biggest uncertainty factors relate to the wage increases expected
in the autumn, growing international competition, as well as the reorganization
of a significant customer. The potential wage increases may have a negative
effect on the company's profitability, because the wage increases cannot be
transferred as such to customer contracts presently in force. In the company's
forecast for the latter half of the year, the wage increases have been estimated
to amount to 4 percent on average. Proliferating international competition,
especially Indian, may tighten the price competition of the business and thus
cut the profit margins of Finnish companies. Ixonos has prepared itself for the
tightening price competition by establishing offices in lower-price areas. The
reorganization of a significant customer may temporarily postpone the launch of
new projects at the turn of the year and move some of the forecasted turnover
for 2007 over to 2008.
TURNOVER
Consolidated turnover was EUR 27.3 million (2006: EUR 18.2 million), up 50.4
percent from the previous year. Of turnover total, 62 percent was accrued by the
Telecommunications Unit and percent 38 percent by the Systems Services Unit.
TURNOVER BY SEGMENT
--------------------------------------------------------------------------------
| K EURO | 1-6 2007 | 1-6 2006 | 1-12 2006 |
--------------------------------------------------------------------------------
| Telecommunications | 17,051 | 11,910 | 24,879 |
--------------------------------------------------------------------------------
| Systems Services | 10,488 | 6,402 | 14,604 |
--------------------------------------------------------------------------------
| Eliminations | -190 | -131 | -299 |
--------------------------------------------------------------------------------
| Group total | 27,349 | 18,181 | 39,184 |
--------------------------------------------------------------------------------
FINANCIAL RESULT
Consolidated operating profit was EUR 2.3 million (2006: EUR 1.7 million), and
profit before taxes was EUR 2,2 million (2006: EUR 1.6 million). Profit for the
review period was EUR 1.6 million (2006: EUR 1.2 million), which is 5.9 per cent
of turnover. Diluted earnings per share were EUR 0.20 (2006: EUR 0.16). Diluted
cash flow from business operations was EUR 0.14 per share (2006: EUR 0.31).
The Group's result was burdened by a EUR 0.55 million one-off expense related to
the change of the company name and the revamping of the corporate image. Without
the above one-off expenses, the Group's operating profit was EUR 2.9 million
(10.5 percent of turnover) and profit before taxes was EUR 2.8 million (10.1
percent of turnover). The profit for the review period excluding one-off items
was EUR 2.0 million (7.4 percent of turnover). Diluted earnings per share,
excluding one-off items, were EUR 0.27 (2006: 0.19), and diluted operating cash
flow per share was EUR 0,20 (2006: 0.33).
OPERATING PROFIT BY SEGMENT
--------------------------------------------------------------------------------
| K EURO | 1-6 2007 | 1-6 2006 | 1-12 2006 |
--------------------------------------------------------------------------------
| Telecommunications | 2,713 | 1,580 | 3,583 |
--------------------------------------------------------------------------------
| Systems Services | 1,161 | 757 | 1,629 |
--------------------------------------------------------------------------------
| Administration* | - 1,555 | - 672 | - 1,271 |
--------------------------------------------------------------------------------
| Group total | 2,319 | 1,665 | 3,941 |
--------------------------------------------------------------------------------
* The administrative costs include one-off expenses of EUR 0.55 million.
RETURN ON CAPITAL INVESTMENT
Consolidated return on equity (ROE) was 25.8 per cent (2006: 27.7) and return on
investment (ROI) was 25,9 per cent (2006: 25,2).
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 30.5 million (2006: EUR 23.3 million).
Shareholders' equity was EUR 14.4 million (2006: EUR 9.0 million). Equity ratio
was 47.1 percent (2006: 38.5 percent). The Group's liquid assets stood at EUR
1.7 million at the end of the review period (2006: EUR 3.7 million). The Group's
liquidity remained good.
CASH FLOW
Consolidated cash flow from business operations was EUR 1.1 million (2006: EUR
2.3 million).
PERSONNEL
The number of personnel averaged 640 (2006: 465) during the period under review
and was 753 (2006: 498) at the end of the period.
SHARES AND SHARE CAPITAL
Exchange and quotations
The highest share price quoted during the first half was EUR 8.08 (2006: EUR
5.07), the lowest EUR 4.55 (2006: EUR 3.75) and the last share price quoted on
30 June 2007 was EUR 7.05 (2006: EUR 4.10). The average quotation during the
review period was EUR 5.64 (2006: EUR 4.45).
The number of shares traded during the review period was 3,914,081 (2006:
2,460,839), which corresponds to 49 percent (2006: 34 percent) of the total
number of shares. The market value of the share capital at the final quotation
on 30 June 2007 was EUR 56,658,242 (2006: EUR 30,027,170).
Share capital
At the beginning of the year 2007 the company's registered share capital was EUR
296,948.00, and the number of shares was 7,423,700. During 2007, 6,000 shares
were subscribed with option rights of the 2003 stock options plan BI, 11,000
shares with option rights of CI, 18,000 shares with option rights of CII, 54,500
with option rights of DI, and 15,500 shares with option rights of DII. With the
authorization granted by the Annual General Meeting on 22 March 2007, the Board
of Directors of Ixonos Plc decided on 7 May 2007 on a share issue where the
ex-owner and present Chief Executive Officer of Ixonos Project Management
Services Ltd was offered, as an additional acquisition price for the share
capital of Ixonos Project Management Services Ltd, 112,300 new Ixonos Plc
shares. With the authorization granted by the Annual General Meeting on 22 March
2007, the Board of Directors of Ixonos Plc decided on 20 June 2007 on a share
issue where the owners of Mermit Business Applications Oy were offered, as
acquisition price for the share capital of Mermit Business Applications Oy,
391,630 new Ixonos Plc shares.
At the end of the review period the share capital of Ixonos' is EUR 321,465.20
and the total number of shares is 8,036,630.
Stock options plans 2003 and 2006
Of the stock options plan of 2003, 10,000 options have been released under AI,
10.000 options under AII, 82,500 options under BI, 22,500 options under BII,
100,000 options under CI, 35,000 options under CII, 127,500 options under DI,
and 112,500 options under DII. Under the 2003 options plan, 45,000 shares have
been subscribed with options BI, 5.000 shares with options BII, 23,500 shares
with options CI, 25,500 shares with options CII, 64,500 shares with options DI,
and 15,500 shares with options DII. The maximum number of shares that can be
subscribed with outstanding options of options plan 2003 is 321,000, which is
equivalent to 4.0 % of the company's shares. The subscription price is EUR 1.88
with AI and AII options, EUR 1.56 with BI and BII options, EUR 3.32 with CI and
CII options, and EUR 3.22 with DI and DII options. The subscription period for
options of 2003 ends on 31 December 2008.
Of the stock options plan of 2005, 140,000 options have been released under AI,
140.000 options have been released under AII, 75,000 options have been released
under BI, and 75.000 options have been released under BII. Of the options of
series A, 15,000 AI options and 15.000 AII options of have been returned to the
company based on the terms of the options. These options have been converted to
options of series B in accordance with the terms of options, and they have been
redistributed. The share subscription period of 2005 options AI starts on 1
October 2007, options AII and BI on 1 October 2008, and options BII on 1 October
2009. The subscription price is EUR 4.13 with options AI and AII , EUR 5.10 with
options BI and BII. The subscription period for options of 2005 ends on 31
December 2008.
Shareholders
There were 2,961 shareholders on 30 June 2007. Private persons owned 58 percent
and institutions 42 per cent of the company's shares. Foreign ownership was 6
per cent.
Board authorizations
The General Meeting authorized the Board to decide on the issue of no more than
1,500,000 shares through a share issue on one or more occasions. The Board may
decide to issue new shares or own shares held by the company. The maximum number
of shares included in the authorization accounts for approximately 20.2 per cent
of the company's registered shares. The authorization can be used to finance or
implement any corporate acquisitions or other arrangements, or for other
purposes decided by the Board. The authorization includes the right of the Board
to decide on all terms and conditions on the share issue, including the
recipients of shares and the compensation to be paid. Thus, the authorization
includes the right to issue shares through private offering, i.e. to deviate
from the shareholders' pre-emptive right as determined by the law. The
authorization is effective until the next Annual General Meeting, expiring on 30
June 2008 at the latest.
The Board of Directors has used the above authorization and decided, by two
different decisions, on a share issue of 503,930 shares to finance corporate
acquisitions.
The Annual General Meeting authorized the Board to decide on the acquisition of
no more than 742.370 of the company's own shares, provided that the company and
its subsidiaries at no time hold more than 10 per cent of the company's
registered shares. Own shares can be acquired to develop the company's capital
structure, to finance acquisition or other corporate structuring or to be
conveyed or cancelled.
The minimum purchasing price of the shares to be acquired is the lowest market
price noted in the public trading during the authorization period, and the
maximum purchasing price is the highest price noted in the public trading during
the authorization period. The Board of Directors will decide on the means of
acquisition and other terms and conditions. The acquisition may deviate from the
shareholders' pre-emptive rights to acquire the Company's shares (directed
acquisition), provided that weighty financial grounds exist. Under this
authorization, own shares may only be acquired using non-tied equity. Thus, the
share acquisition reduces the company's distributable non-tied equity. The
authorization is effective until the next Annual General Meeting, expiring on 30
June 2008 at the latest.
The Board of Directors has not utilized the authorization to acquire own shares.
EXTRAORDINARY GENERAL MEETING
The extraordinary General Meeting of Tieto-X Plc on 25 January 2007 approved the
proposal by the Board of Directors to change the company name and the company's
Articles of Association. The decision to change the company name to Ixonos Plc
was made upon conditions and provided that the Trade Register registers the
change of name. The Trade Register registered the change of name on 9 February
2007.
THE DECISIONS OF THE GENERAL MEETING
The Annual General Meeting of Ixonos Plc held on 22 March 2007 adopted the
company's and Ixonos Group's financial statement for the financial period 1
January-31 December 2006 and granted discharge from liability to the Members of
the Board of Directors and the CEO.
The General Meeting decided to distribute as dividend EUR 0.27 per share. The
dividend was paid on 4 April 2007 to the shares that were registered on the
balance day 27 March 2007 on the company's shareholders list maintained by
Finnish Central Securities Depositary Ltd.
The Annual General Meeting confirmed the number of Board members to be 6. The
Annual General Meeting re-elected Eero Hurme, Seppo Jaatinen, Matti Järvinen,
Tero Laaksonen, Matti Makkonen and Esko Siik as members of the Board.
At its meeting right after the Annual General Meeting, the Board of Directors
elected Tero Laaksonen Chairman of the Board and Eero Hurme Deputy Chairman of
the Board.
The Annual General Meeting elected Peter Ramsey and Jari Kiviluhta as the
shareholders' members of the Nomination Committee.
The General Meeting authorized the Board to decide on the issue of no more than
1,500,000 shares through a share issue on one or more occasions. The Board may
decide to issue new shares or own shares held by the company. The maximum number
of shares included in the authorization accounts for approximately 20.2 per cent
of the company's registered shares. The authorization can be used to finance or
implement any corporate acquisitions or other arrangements, or for other
purposes decided by the Board. The authorization includes the right of the Board
to decide on all terms and conditions on the share issue, including the
recipients of shares and the compensation to be paid. Thus, the authorization
includes the right to issue shares through private offering, i.e. to deviate
from the shareholders' pre-emptive right as determined by the law. The
authorization is effective until the next Annual General Meeting, expiring on 30
June 2008 at the latest.
The Annual General Meeting authorized the Board to decide on the acquisition of
no more than 742.370 of the company's own shares, provided that the company and
its subsidiaries at no time hold more than 10 per cent of the company's
registered shares. Own shares can be acquired to develop the company's capital
structure, to finance acquisition or other corporate structuring or to be
conveyed or cancelled.
The minimum purchasing price of the shares to be acquired is the lowest market
price noted in the public trading during the authorization period, and the
maximum purchasing price is the highest price noted in the public trading during
the authorization period. The Board of Directors will decide on the means of
acquisition and other terms and conditions. The acquisition may deviate from the
shareholders' pre-emptive rights to acquire the Company's shares (directed
acquisition), provided that weighty financial grounds exist.
Under this authorization, own shares may only be acquired using non-tied equity.
Thus, the share acquisition reduces the company's distributable non-tied equity.
The authorization is effective until the next Annual General Meeting, expiring
on 30 June 2008 at the latest.
A SUMMARY OF STOCK EXCHANGE RELEASES UNDER 2:7 OF THE SECURITIES MARKETS ACT
On 6 March 2007 the company published a release stating the company has founded
a subsidiary in Slovakia and opened an office for the new company in Kosice. The
Slovakia-based subsidiary will produce testing services and software development
and maintenance services for customer projects run by the Group's two business
units and for the company's internal software development. With the
establishment of a new office, the group aims at securing the availability of
skilled software development and testing personnel to meet the needs of strong
expansion and ever-larger individual customer projects. At the same time the
idea is to boost the volume of lower-price services in the Group's overall
service offering.
On 12 March 2007 the company published a release stating that the company's
turnover for the first-quarter exceeds the turnover for the same period in 2006
by approximately 40 percent, amounting to approximately EUR 13.5 million.
Discluding the approximately EUR 0.55 million one-off costs related to the
change of the company name and the revamping of the corporate image, the first
quarter operating profit percentage was expected to be about 11.5 percent.
Including the one-off costs, the operating profit percentage was forecasted to
be approximately 7.5 percent. The turnover for the fiscal year was expected to
increase by approximately 25 percent compared to 2006 and reach EUR 48-50
million. The operating profit percentage was forecasted to be on the level of
2006, at least.
On 9 May 2007 the company published a release stating that the company has
acquired the entire share capital of Mermit Business Applications Oy, a company
producing business critical information systems solutions and services. The
acquisition significantly strengthens Ixonos' capability to deliver systems
services projects and enhances the company's delivery capacity of demanding
specification, design, architecture and integration services.
NEXT REPORTS
The Interim Report for the period 1 January - 30 September 2007 will be
published on 24 October 2007.
IXONOS PLC
The Board of Directors
ADDITIONAL INFORMATION:
IXONOS PLC
President and CEO, Kari Happonen
Phone: +358 424 2231, MOBILE PHONE +358 400 700 761, kari.happonen@ixonos.com.
DISTRIBUTION:
Helsinki Stock Exchange
Main media
IXONOS GROUP
ABBREVIATED FINCANIAL STATEMENTS 1 JANUARY - 30 JUNE 2007
Accounting principles
This interim report has been prepared in accordance with the Interim Report
standard of IAS 34, following the accounting principles for the financial
reports for 31 December 2006. The interim report has been prepared in accordance
with the IFRS standards and interpretations in force on 30 June 2007. The new
IFRIC interpretations (7-10) that became effective in 2007 have not had any
effect on the consolidated financial statements. IFRS 7 (effective from 1
January 2007) does not have any effect on the data of this interim report,
because this is an abbreviated financial statement. The entered tax is based on
the estimated average income tax rate that is expected to be realized for the
entire financial period.
The consolidated financial statements include the information of Mermit Business
Applications (acquired on 20 June 2007) starting from 1 June 2007.
The preparation of the financial statements in accordance with the IFRS
standards compels that the Ixonos management, when the balance sheet is
prepared, utilizes such estimates and assumptions that influence the amount of
assets and liabilities as well as income and expenses of the financial period.
In addition, when preparing the financial statements, the financial reporting
principles have to be applied with consideration. The actual figures may deviate
from the estimates and assumptions.
The interim report is unaudited.
The figures in the income statement and balance sheet have been consolidated.
All group companies are included in the consolidated balance sheet. The original
Interim Report is in Finnish. The English version is a translation.
CONSOLIDATED PROFIT AND LOSS ACCOUNT, K EURO
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | Change | 1.1.- |
| | 30.6.2007 | 30.6.2006 | | 31.12.2006 |
--------------------------------------------------------------------------------
| Turnover | 27,349 | 18,181 | 50.4 % | 39,184 |
--------------------------------------------------------------------------------
| Operating costs | - 25,030 | - 16,515 | 51.6 % | - 35,243 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 2,319 | 1,665 | 39.3 % | 3,941 |
--------------------------------------------------------------------------------
| Financial income and | - 102 | - 81 | 26.1 % | - 174 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Profit before | 2,217 | 1,584 | 39.9 % | 3,766 |
| extraordinary items | | | | |
--------------------------------------------------------------------------------
| Extraordinary income | 0 | 0 | | 0 |
| and expenses | | | | |
--------------------------------------------------------------------------------
| Profit before | 2,217 | 1,584 | 39.9 % | 3,766 |
| provisions and taxes | | | | |
--------------------------------------------------------------------------------
| Taxes | - 590 | - 367 | 60.9 % | - 855 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE | 1,627 | 1,217 | 33.6 % | 2,911 |
| PERIOD | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, K EURO
--------------------------------------------------------------------------------
| ASSETS | 30.6.2007 | 30.6.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| FIXED ASSETS | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 683 | 336 | 399 |
--------------------------------------------------------------------------------
| Goodwill | 13,906 | 10,674 | 11,190 |
--------------------------------------------------------------------------------
| Intangible assets | 1,009 | 708 | 450 |
--------------------------------------------------------------------------------
| Deferred tax claim | 41 | 28 | 49 |
--------------------------------------------------------------------------------
| Long-term receivables | 4 | 19 | 12 |
--------------------------------------------------------------------------------
| Other financial assets | 19 | 19 | 19 |
--------------------------------------------------------------------------------
| FIXED ASSETS TOTAL | 15,663 | 11,785 | 12,120 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | |
--------------------------------------------------------------------------------
| Accounts receivable and other | 13,161 | 7,813 | 9,945 |
| receivables | | | |
--------------------------------------------------------------------------------
| Financial assets | 149 | 38 | 695 |
--------------------------------------------------------------------------------
| Liquid assets | 1,504 | 3,625 | 2,689 |
--------------------------------------------------------------------------------
| CURRENT ASSETS TOTAL | 14,814 | 11,477 | 13,330 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 30,477 | 23,262 | 25,449 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 30.6.2007 | 30.6.2006 | 31.12.2006 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | | |
--------------------------------------------------------------------------------
| Share capital | 321 | 293 | 297 |
--------------------------------------------------------------------------------
| Premium fund | 4,510 | 3,781 | 4,176 |
--------------------------------------------------------------------------------
| Share issue | 0 | 317 | 0 |
--------------------------------------------------------------------------------
| Fair value and other reserves | 418 | 163 | 315 |
--------------------------------------------------------------------------------
| Reserves of invested untied | 3,392 | 0 | 0 |
| shareholders' equity | | | |
--------------------------------------------------------------------------------
| Retained earnings | 4,086 | 3,180 | 3,180 |
--------------------------------------------------------------------------------
| Net profit for the period | 1,627 | 1,217 | 2,911 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY TOTAL | 14,355 | 8,951 | 10,879 |
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Long-term liabilities | 4,421 | 6,112 | 4,733 |
--------------------------------------------------------------------------------
| Current liabilities | 11,701 | 8,199 | 9,837 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 16,122 | 14,311 | 14,570 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 30,477 | 23,262 | 25,449 |
| LIABILITIES TOTAL | | | |
--------------------------------------------------------------------------------
CHANGES IN EQUITY, K EURO
--------------------------------------------------------------------------------
| | Share | Premiu | Share | Fair | Investe | Retained | Total |
| | capit | m | issue | value | d | earnings | |
| | al | fund | | and | untie | | |
| | | | | other | d | | |
| | | | | reser | share | | |
| | | | | ves | holders | | |
| | | | | | equity | | |
| | | | | | reser | | |
| | | | | | ve | | |
--------------------------------------------------------------------------------
| Shareholders | 292 | 3,746 | 0 | 108 | 0 | 4,496 | 8,643 |
| ' equity | | | | | | | |
| 1.1.2006 | | | | | | | |
--------------------------------------------------------------------------------
| Transfer to | | | | 55 | | | 55 |
| reserves | | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 1 | 35 | 317 | | | | 352 |
--------------------------------------------------------------------------------
| Dividend | | | | | | - 1,316 | - 1,316 |
--------------------------------------------------------------------------------
| Profit for | | | | | | 1,217 | 1,217 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 293 | 3,781 | 317 | 163 | 0 | 4,397 | 8,951 |
| ' equity | | | | | | | |
| 30.6.2006 | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 297 | 4,176 | 0 | 315 | 0 | 6,091 | 10,879 |
| ' equity | | | | | | | |
| 1.1.2007 | | | | | | | |
--------------------------------------------------------------------------------
| Transfer to | | | | 103 | | | 103 |
| reserves | | | | | | | |
--------------------------------------------------------------------------------
| Share issue | 25 | 334 | | | 3,392 | | 3,751 |
--------------------------------------------------------------------------------
| Dividend | | | | | | - 2,004 | - 2,004 |
--------------------------------------------------------------------------------
| Profit for | | | | | | 1,627 | 1,627 |
| the period | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 321 | 4,510 | 0 | 418 | 3,392 | 5,713 | 14,355 |
| ' equity | | | | | | | |
| 30.6.2007 | | | | | | | |
--------------------------------------------------------------------------------
SOURCES AND APPLICATION OF FUNDS, K EURO
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 30.6.2007 | 30.6.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Business operations | | | |
--------------------------------------------------------------------------------
| Profit before extraordinary | 2,217 | 1,584 | 3,766 |
| items | | | |
--------------------------------------------------------------------------------
| Total adjustments | 333 | 244 | 593 |
--------------------------------------------------------------------------------
| Change in net working | - 1,218 | 517 | - 785 |
| capital | | | |
--------------------------------------------------------------------------------
| Interest yields | - 28 | - 27 | - 61 |
--------------------------------------------------------------------------------
| Interest charges | 125 | 109 | 235 |
--------------------------------------------------------------------------------
| Taxes | - 307 | - 110 | - 1,049 |
--------------------------------------------------------------------------------
| Cash flow from business | 1,122 | 2,316 | 2,700 |
| operations | | | |
--------------------------------------------------------------------------------
| Investments | | | |
--------------------------------------------------------------------------------
| Investments in tangible and | - 378 | - 187 | - 315 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Change in financial assets | 546 | 1,955 | 1,298 |
--------------------------------------------------------------------------------
| Transfer income from fixed | 0 | 11 | 248 |
| assets | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | - 294 | - 4,861 | - 5,186 |
--------------------------------------------------------------------------------
| Total cash flow from | - 125 | - 3,083 | - 3,954 |
| investments | | | |
--------------------------------------------------------------------------------
| Cash flow before financing | 997 | - 767 | - 1,254 |
--------------------------------------------------------------------------------
| Financing | | | |
--------------------------------------------------------------------------------
| Dividend paid | - 2,004 | - 1,316 | - 1,316 |
--------------------------------------------------------------------------------
| Increase of long-term loans | 0 | 3 000 | 3 000 |
--------------------------------------------------------------------------------
| Repayment of long-term loans | - 429 | - 216 | - 658 |
--------------------------------------------------------------------------------
| Share issue | 338 | 35 | 117 |
--------------------------------------------------------------------------------
| Interest yields | 28 | 27 | 61 |
--------------------------------------------------------------------------------
| Interest charges | - 125 | - 109 | - 235 |
--------------------------------------------------------------------------------
| Short-term loan receivables | 10 | 2 | 7 |
| decrease | | | |
--------------------------------------------------------------------------------
| Financing total | - 2,182 | 1,424 | 976 |
--------------------------------------------------------------------------------
| Change in liquid assets | - 1,185 | 657 | - 279 |
--------------------------------------------------------------------------------
| Liquid assets at the | 2,689 | 2,968 | 2,968 |
| beginning of the period | | | |
--------------------------------------------------------------------------------
| Liquid assets at the end of | 1,503 | 3,625 | 2,689 |
| the period | | | |
--------------------------------------------------------------------------------
CONSOLIDATED PROFIT AND LOSS ACCOUNT, QUARTERLY, K EURO
--------------------------------------------------------------------------------
| | Q2/2007 | Q1/2007 | Q4/2006 | Q3/2006 | Q2/2006 |
| | 1.4.07- | 1.1.07- | 1.10.06- | 1.7.06- | 1.4.06- |
| | 30.6.07 | 31.3.07 | 31.12.06 | 30.9.06 | 30.6.06 |
--------------------------------------------------------------------------------
| Turnover | 14,125 | 13,224 | 12,141 | 8,862 | 9,166 |
--------------------------------------------------------------------------------
| Operating costs | - 12,770 | - 12,260 | - 10,964 | - 7,764 | - 8,477 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 1,356 | 963 | 1,178 | 1,098 | 689 |
--------------------------------------------------------------------------------
| Financial income | - 50 | - 52 | 0 | - 94 | - 32 |
| and | | | | | |
| -expenses | | | | | |
--------------------------------------------------------------------------------
| Profit before | 1,305 | 911 | 1,178 | 1,004 | 656 |
| provisions | | | | | |
| and taxes | | | | | |
--------------------------------------------------------------------------------
| Extraordinary | 0 | 0 | 0 | 0 | 0 |
| income | | | | | |
| and expenses | | | | | |
--------------------------------------------------------------------------------
| Profit before | 1,305 | 911 | 1,178 | 1,004 | 656 |
| provisions | | | | | |
| and taxes | | | | | |
--------------------------------------------------------------------------------
| Taxes | -348 | - 242 | - 179 | - 310 | - 144 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | 957 | 669 | 999 | 695 | 513 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
SEGMENT REPORTING
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 30.6.2007 | 30.6.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Turnover by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 17,051 | 11,910 | 24,879 |
--------------------------------------------------------------------------------
| Systems Services | 10,488 | 6,402 | 14,604 |
--------------------------------------------------------------------------------
| Eliminations | - 190 | - 131 | -299 |
--------------------------------------------------------------------------------
| Turnover total | 27,349 | 18,181 | 39,184 |
--------------------------------------------------------------------------------
| Operating profit by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 2,713 | 1,580 | 3,583 |
--------------------------------------------------------------------------------
| Systems Services | 1,161 | 757 | 1,629 |
--------------------------------------------------------------------------------
| Administration | - 1,555 | - 672 | - 1,271 |
--------------------------------------------------------------------------------
| Total operating profit | 2,319 | 1,665 | 3,941 |
--------------------------------------------------------------------------------
| Operating profit of turnover % | 8.5 | 9.2 | 10.1 |
--------------------------------------------------------------------------------
| Interest and financial income | - 102 | - 81 | - 174 |
--------------------------------------------------------------------------------
| Profit before taxes | 2,217 | 1,584 | 3,766 |
--------------------------------------------------------------------------------
| Taxes | - 590 | - 367 | - 855 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 1,627 | 1,217 | 2,911 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 16,296 | 13,292 | 18,094 |
--------------------------------------------------------------------------------
| Systems Services | 11,013 | 5,562 | 6,984 |
--------------------------------------------------------------------------------
| Other | 3,167 | 4,407 | 371 |
--------------------------------------------------------------------------------
| Total assets | 30,477 | 22,262 | 25,449 |
--------------------------------------------------------------------------------
| Liabilities by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 9,177 | 9,061 | 8,592 |
--------------------------------------------------------------------------------
| Systems Services | 5,009 | 3,023 | 3,822 |
--------------------------------------------------------------------------------
| Other | 1,936 | 2,228 | 2,156 |
--------------------------------------------------------------------------------
| Total liabilities | 16,122 | 14,311 | 14,570 |
--------------------------------------------------------------------------------
| Depreciation by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 74 | 145 | 211 |
--------------------------------------------------------------------------------
| Systems Services | 128 | 3 | 97 |
--------------------------------------------------------------------------------
| Other | 59 | 53 | 109 |
--------------------------------------------------------------------------------
| Total depreciation | 261 | 201 | 416 |
--------------------------------------------------------------------------------
| Investments by segment | | | |
--------------------------------------------------------------------------------
| Telecommunications | 143 | 66 | 130 |
--------------------------------------------------------------------------------
| Systems Services | 2,988 | 3,280 | 3,707 |
--------------------------------------------------------------------------------
| Administration | 187 | 115 | 210 |
--------------------------------------------------------------------------------
| Total investments | 3,317 | 3,462 | 4,048 |
--------------------------------------------------------------------------------
CHANGES IN FIXED ASSETS, K EURO
--------------------------------------------------------------------------------
| | Intangi | Good | Real-es | Machine | Other | Total |
| | ble | will | tate | ry and | tangible | |
| | assets | | | equipme | assets | |
| | | | | nt | | |
--------------------------------------------------------------------------------
| Carrying | 473 | 8,621 | 91 | 149 | 5 | 9,339 |
| amount | | | | | | |
| 1.1.2006 | | | | | | |
--------------------------------------------------------------------------------
| Additions | 75 | 2,053 | 0 | 100 | 7 | 2,234 |
--------------------------------------------------------------------------------
| Additions from | 6 | 0 | 0 | 12 | 0 | 18 |
| corporate | | | | | | |
| acquisitions | | | | | | |
--------------------------------------------------------------------------------
| Through | 328 | 0 | 0 | 0 | 0 | 328 |
| corporate | | | | | | |
| acquisitions | | | | | | |
--------------------------------------------------------------------------------
| Disposals | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Depreciation | - 174 | 0 | 0 | - 27 | 0 | - 201 |
| during the | | | | | | |
| financial | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Carrying | 708 | 10,674 | 91 | 234 | 11 | 11,718 |
| amount | | | | | | |
| 30.6.2006 | | | | | | |
--------------------------------------------------------------------------------
| Carrying | 450 | 11,190 | 91 | 297 | 11 | 12,039 |
| amount | | | | | | |
| 1.1.2007 | | | | | | |
--------------------------------------------------------------------------------
| Additions | 134 | 2,717 | 0 | 243 | 0 | 3,095 |
--------------------------------------------------------------------------------
| Additions from | 14 | 0 | 0 | 94 | 0 | 109 |
| corporate | | | | | | |
| acquisitions | | | | | | |
--------------------------------------------------------------------------------
| Through | 617 | 0 | 0 | 0 | 0 | 617 |
| corporate | | | | | | |
| acquisitions | | | | | | |
--------------------------------------------------------------------------------
| Disposals | 0 | 0 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Depreciation | - 207 | 0 | 0 | - 54 | 0 | - 261 |
| during the | | | | | | |
| financial | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Carrying | 1,009 | 13,906 | 91 | 581 | 11 | 15,599 |
| amount | | | | | | |
| 30.6.2007 | | | | | | |
--------------------------------------------------------------------------------
ACQUIRED BUSINESS OPERATIONS
When business operations are merged the tangible assets are valued at their fair
value based on the market price of equivalent assets, taking their age, wear and
other similar factors into account. Tangible assets are depreciated based on the
management's estimation of their economic lifespan, taking the Groups'
depreciation principles into account.
Intangible assets that are acquired through business mergers are recognized
separate from goodwill based on their fair value at the time of acquisition,
provided that the fair value of the assets can be reliably defined. The business
operations that the Groups has acquired primarily comprise customers, customer
contracts, tender prospects and covenants in restraint of competition. The fair
value of customer contracts and the accompanying customerships, tender prospects
and covenants in restraint of competition have been defined using the MEEM model
(Multi-Earning-Excess modell). Other intangible asset items are depreciated
based on the management's evaluation of their economic lifespan.
In addition to the skills of the personnel, the goodwill that arised from
mergers of business operations in 2007 comprises other intangible assets that
cannot be identified in accordance with IAS 38. These items include the
potential to acquire new customers, the development prospects of new services,
as well as the strong geographic position of the acquired business operations.
These items do not fulfill the criteria of IAS 38 in any respect: they are not
identifiable, they are not based on a contract or a law, and it is not possible
to reliably define a value for them. All business mergers create synergy
advantages that primarily consist of cross-selling of existing services, as well
as savings in fixed costs.
The goodwill/acquisition cost of the acquired business operations can change
based on the contract terms related to the acquisition price. Part of the
acquisition price is tied to near-future (less than 12 month) events. Changes in
the acquisition price, including solicitor's and consultant's fees related to
the merger, are recognized as goodwill within 12 months of the acquisition. The
business operations acquired in 2006 may be subject to such changes. Apart from
this, the allocation calculations are final
The Group's turnover for 1 January - 30 June 2007 would have been EUR 29.1
million and the profit for the period EUR 1.4 million if Mermit had been
acquired on 1 January 2007. The Group's turnover include the realized turnover
of the acquired company, and the Group's result include the realized loss of the
acquired company based on the company's interim financial statement at the time
of the acquisition. The intangible and tangible asset items of the merger have
been valued at their fair value, and the depreciation of the items for the
period has been deducted from the profit for the review period. The synergy
advantages have not been taken into account.
EFFECT OF ACQUIRED BUSINESS OPERATIONS ON BALANCE SHEET ASSETS AND LIABILITIES,
K EURO
--------------------------------------------------------------------------------
| | Carrying | Change | Fair value |
| | amount | | |
| | before | | |
| | merger | | |
--------------------------------------------------------------------------------
| Intangible fixed assets | 14 | 617 | 631 |
--------------------------------------------------------------------------------
| Tangible assets | 94 | 0 | 94 |
--------------------------------------------------------------------------------
| Receivables | 821 | 0 | 821 |
--------------------------------------------------------------------------------
| Liquid assets | 45 | 0 | 45 |
--------------------------------------------------------------------------------
| Total assets | 974 | 617 | 1,591 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 937 | 0 | 937 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0 | 160 | 160 |
--------------------------------------------------------------------------------
| Total liabilities | 937 | 160 | 1,098 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquired net assets | 37 | 456 | 493 |
--------------------------------------------------------------------------------
| Total payments | | | 3,094 |
--------------------------------------------------------------------------------
| Goodwill | | | 2,600 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect on cash flow: | | | |
--------------------------------------------------------------------------------
| Cash payments | | | - 107 |
--------------------------------------------------------------------------------
| Funds of acquired company | | | 45 |
--------------------------------------------------------------------------------
| Cash flow of acquisitions | | | - 62 |
--------------------------------------------------------------------------------
FINANCIAL RATIOS
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- | 1.1.- |
| | 30.6.2007 | 30.6.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Earnings per share, EUR diluted | 0.20 | 0.16 | 0.38 |
--------------------------------------------------------------------------------
| Equity per share, EUR diluted | 1.75 | 1.21 | 1.43 |
--------------------------------------------------------------------------------
| Operating cash flow per share, | 0.14 | 0.31 | 0.36 |
| EUR Diluted | | | |
| | | | |
--------------------------------------------------------------------------------
| Return on investment, % | 25.9 | 25.2 | 28.2 |
--------------------------------------------------------------------------------
| Return on equity, % | 25.8 | 27.7 | 29.8 |
--------------------------------------------------------------------------------
| Operating profit/turnover, % | 8.5 | 9.2 | 10.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OTHER INFORMATION | 1.1.- | 1.1.- | 1.1.- |
| | 30.6.2007 | 30.6.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Average number of personnel | 640 | 465 | 503 |
--------------------------------------------------------------------------------
| Personnel at the end of the | 753 | 498 | 579 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COMMITMENTS | 30.6.2007 | 30.6.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| Commitments for group | | | |
--------------------------------------------------------------------------------
| Rental security | 253 | 123 | 148 |
--------------------------------------------------------------------------------
| (bank deposits), k Euro | | | |
--------------------------------------------------------------------------------
| Amounts payable for leasing | | | |
| contracts | | | |
--------------------------------------------------------------------------------
| Amounts payable for leasing | 358 | 230 | 573 |
| contracts, K EUR, less than 12 | | | |
| months | | | |
--------------------------------------------------------------------------------
| Amounts payable for leasing | 897 | 396 | 825 |
| contracts, K EUR, 12-60 months | | | |
--------------------------------------------------------------------------------
| Amounts payable for leasing | 1,255 | 626 | 1,398 |
| contracts, k Euro, total | | | |
--------------------------------------------------------------------------------
| Non cancellable | 1,544 | 1,275 | 1,369 |
| leasing commitments, K Euro | | | |
| | | | |
--------------------------------------------------------------------------------
CALCULATION OF FINANCIAL RATIOS
--------------------------------------------------------------------------------
| Return on equity (ROE) = | 100 x Net profit / Shareholders' |
| | equity(average) |
--------------------------------------------------------------------------------
| | |
--------------------------------------------------------------------------------
| Return on investment (ROI) = | 100 x (profit before taxes + interest + |
| | other financial expenses)/ |
--------------------------------------------------------------------------------
| | Balance sheet total - non-interest |
| | bearing liabilities (average) |
--------------------------------------------------------------------------------
| | |
--------------------------------------------------------------------------------
| Diluted result per share = | Net profit / Number of shares with |
| | adjustment for options dilution |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity per share = | Shareholders' equity / Number of shares |
| | with adjustment for options dilution |
--------------------------------------------------------------------------------
| | |
--------------------------------------------------------------------------------
| Dilution = | The number of shares adjusted with |
| | allocated options - |
--------------------------------------------------------------------------------
| | Number of shares to be acquired with |
| | the option subscription price using the |
| | weighted average quotation for the |
| | financial period. |
--------------------------------------------------------------------------------