DIGIA PLC's FINANCIAL STATEMENT RELEASE 3 FEBRUARY 2009 12:40
Digia Plc's fourth quarter and 2008 financial statement (IFRS)
Summary
Financial statement 2008
- Consolidated net sales: EUR 123.2 million, up 16.4 per cent year on year
- Organic growth: 11.3 per cent
- Consolidated operating profit: EUR 13.4 million, up 21.3 per cent year on
year
- Profitability (EBIT-%) 10.9 per cent (10.5 per cent 1-12/2007)
- Product business accounted for 14.4 per cent of net sales (17.3 per cent
1-12/2007)
- Earning per share EUR 0.36, up 24.1 per cent
October-December
- Consolidated turnover EUR 32.8 million, up 5.6 per cent year on year
- Organic growth 3.4 per cent
- Consolidated operating profit EUR 2.9 million, down 30,8 per cent year on
year
- Default credit increase of EUR 1.1 million, after which the profitability
(EBIT-%) was 8.9 per cent (13.6 per cent 10-12/2007)
- Product business accounted for 14.1 per cent (15.9 per cent 10-2007)
- Earnings per share EUR 0.07, down 46.2 per cent
- For 2009, the main goal for Digia is to maintain strong cash flow, good
profitability and to decrease loan
- Digia will tighten its dividend payment policy in the coming years.
PROPOSAL FOR DIVIDEND DISTRIBUTION
At the end of fiscal year 2008, the distributable shareholders' equity of the
parent company was EUR 37,926,719.11. Digia Plc's Board of Directors will
propose at the Annual General Meeting that the Board of Directors would be
authorised to allocate dividend and the maximum amount of dividend would be EUR
0.05 per share, and the authorisation would be valid until the beginning of next
annual general meeting. (Dividend in 2007: EUR 0.10).
KEY FIGURES AND RATIOS
--------------------------------------------------------------------------------
| | 10-12/20 | 10-12/20 | Change | 2008 | 2007 | Change |
| | 08 | 07 | % | | | % |
--------------------------------------------------------------------------------
| Net sales | 32 762 | 31 012 | 6% | 123 | 105 839 | 16% |
| | | | | 203 | | |
--------------------------------------------------------------------------------
| Operating profit | 2 916 | 4 212 | -31% | 13 437 | 11 080 | 21% |
--------------------------------------------------------------------------------
| -% of net sales | 9% | 14% | | 11% | 10% | |
--------------------------------------------------------------------------------
| Profit for the | 1 349 | 2 655 | -49% | 7 409 | 5 871 | 26% |
| period | | | | | | |
--------------------------------------------------------------------------------
| -% of net sales | 4% | 9% | | 6% | 6% | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Return on | 8% | 16% | | 11% | 9% | |
| equity,% | | | | | | |
--------------------------------------------------------------------------------
| Return on | 10% | 14% | | 11% | 9% | |
| investment,% | | | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 56 950 | 56 413 | 1% | 56 950 | 56 413 | 1% |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 18 879 | 11 739 | 61% | 18 879 | 11 739 | 61% |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
| Gearing,% (Net | 53% | 65% | | 53% | 65% | |
| Gearing) | | | | | | |
--------------------------------------------------------------------------------
| Equity ratio,% | 47% | 47% | | 47% | 47% | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.07 | 0.13 | -46% | 0.36 | 0.29 | 24% |
| share, EUR, | | | | | | |
| undiluted | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.07 | 0.13 | -46% | 0.36 | 0.29 | 24% |
| share, EUR, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
MARKETS AND DIGIA'S BUSINESS
The outcome for the 2008 fiscal year was excellent as a whole, and the company
reached its most important goals: the strengthening of organic growth and the
increase of profitability. Operating profit and earnings per share improved
substantially in comparison to the previous fiscal period, and the fourth
quarter was also successful although includes increase of default credit with
EUR 1.1 million.
The financial crisis which began in the third quarter became more serious during
the fourth quarter which resulted in the following: Digia's clients have
postponed or cancelled projects. In spite of the turbulence in the markets,
Digia has succeeded in increasing its level of activity and clientele.
Digia has during the period followed a moderate and deliberate
internationalisation strategy. The development of the unit in China has
progressed according to expectations. The business activities in Sweden and
Russia also went according to expectations.
The company completed the preparation of the organisation change whereby the
company's sales, products and services and competences were unified as of
January 1st, 2009. The purpose of the organisation change is to further increase
the resource utilisation, raise the billability rate and to increase the
profitability.
TELECOMMUNICATIONS
The growth and profitability of the telecommunication business was excellent for
this fiscal period. The profitability for the fourth quarter was weakened by
increase of the default credit with EUR 1.1 million, but the consolidated
operating profit continued to be good. The level of demand for the fourth
quarter was at a good level, but the global financial crisis has increased the
level of risk.
The division has continued to bolster its delivery capacity by continuing the
active recruiting policy initiated during the first half of the year.
Recruitment is mainly focused on countries with lower cost levels. The unit that
was opened in Chengdu, China in April has grown favourably and the initiated
customer projects have progressed in line with plans. The project load has grown
according to expectations.
FINANCE AND SERVICES
The net sales of Finance and Services for the fiscal period grew but
profitability was significantly weakened compared to the previous fiscal period.
The fourth quarter net sales and operating profit were lower than the
corresponding period of the previous year. The reasons for this include projects
being pushed back and cancellation of ongoing projects because of customer
reasons based on financial crisis.
The market situation continues to be challenging in both the finance and service
sectors.
INDUSTRY AND TRADE
The increase in business during 2008 for Industry and Trade was at a sufficient
level and the operating profit showed excellent growth. The growth in operating
profit during the fourth quarter was especially strong.
Also in the Industry and Trade sector, the general economic situation has caused
decisions being delayed by clients, even though the company has signed
agreements for delivery of service with regard to Microsoft Dynamics AX and
Digia Enterprise and Logistics software. In general, however, the level of
demand for the Industry and Trade sector is good.
RISKS AND UNCERTANTIES
Digia'a short-term uncertainties are related to any major changes occurring in
the company's core markets and the impact of the unpredictable economic
situation on Digia customers' investment decisions and their liquidity. In
particular, the global financial crisis, which started in the third quarter, may
have a significant negative impact on Digia's business in case the continuing
crisis significantly weakens customers' financial positions, which could lead to
credit loss and default on assets. Even with the market situation strongly
weakened and signs of the financial situation impacting investment decisions and
customer liquidity has been perceivable in some sectors, the general demand of
the company has nevertheless remained at a good level.
Furthermore, the growth in customer project size and scope increases the risks
related to projects and their profitability. A more detailed description of
Digia's risk management is provided in its annual report and on the company
website.
CREDIT FACILITY 2009-2011
Digia has on January 29, 2009 decreased the loan from its earlier EUR 55 million
to EUR 50 million. In addition, on February 3 2009, the company agreed on three
years credit facility, which arrangement will pay off the loan stock in its
entirety.
The new credit facility will be financed by Pohjola and Nordea Banks as well as
Varma. It includes a three-year, bank-financed package of EUR 42 million. In
addition, it includes the re-borrowing of the employees' pensions, totalling a
maximum of EUR 8 million. As part of the finance package, the company has agreed
on the covenants regarding the company's solvency and liquidity. The Board of
Directors has agreed with the banks to tighten its dividend policy during the
years to come as part of the finance package; the company will, at the most,
distribute 15 per cent of the profit of the period in dividends. Previously the
policy had been to distribute 30 per cent of the profit in dividends. Also, the
share buy back program was terminated with Board's decision on February 3, 2009.
One of the key elements of the financial package is the repayment of the loan,
which amounts to about EUR 6 million per year during the loan repayment period.
PROSPECTS FOR THE FUTURE
Concerning 2009, the main goal for Digia is to maintain strong cash flow, good
profitability and to decrease loan. The company will continue the conservative
internationalization of its businesses and to increase the business volume in
countries with favourable cost level.
In light of the global financial crisis, it is estimated that investments in
information systems by customers may somewhat decrease, but the company is
attempting to maintain good profitability, development of its services and the
satisfaction of its personnel. The company intends to increase its operational
efficiency while pursuing a strict cost policy.
The long-term focus for Digia is to firstly strengthen its organic growth and
the upkeep of strong cash flow. Digia is now focused on developing its
competences and organic business activity by developing current competencies and
products with a view to improve profitability, earnings per share and the
balance sheet figures.
NEW ORGANIZATION AND REPORTING SEGMENTS, 2009
Since the beginning of 2009, the new organization has been in force, merging the
company's sales, product, services and competences. The business activities of
the company are divided into two main areas: Mobile Solutions and Enterprise
Solutions.
The business activity areas for Mobile Solutions include Contract Engineering
Services and User Experience Services. The business activity areas for
Enterprise Solutions include ERP and Financial administration, Digital services
and Integration Solutions.
The restructured company will begin reporting from the first quarter in 2009.
NET SALES
Digia's consolidated net sales for the 2008 period was EUR 123.2 million with a
growth of 16.4 per cent (1-12/2007 EUR 105.8 million). This includes EUR 2.2
million of net sales of Sunrise Resources Ltd, a subsidiary acquired on 14
January 2008.
Net sales posted by Telecommunications for the period were EUR 60.9 million, up
27.1 per cent (1-12/2007: EUR 48.0 million). Net sales of Finance and Services
totalled EUR 32.3 million for the period, up 10.4 per cent (1-12/2007: EUR 29.3
million). Industry and Trade recorded net sales of EUR 29.9 million for the
period, up 4.7 per cent (1-12/2007: EUR 28.6 million).
During the reporting period, the product business accounted for EUR 17.7 million
(1-12/2007: EUR 18.3 million) of consolidated net sales, or 14.4 per cent
(1-12/2007: 17.3 per cent).
International operations accounted for EUR 14.2 million (1-12/2007: EUR 9.4
million) of consolidated net sales during the reporting period, representing
11.6 per cent (1-12/2007: 8.9 per cent).
Digia's fourth quarter consolidated net sales amounted to EUR 32.8 million, up
5.6 per cent (10-12/2007: EUR 31.0 million). This includes EUR 0.6 million of
net sales of Sunrise Resources Ltd, a subsidiary acquired on 14 January 2008.
Net sales by Telecommunications for the fourth quarter were EUR 16.1 million, up
15.1 per cent (10-12/2007: EUR 14.0 million). Finance and Services posted net
sales of EUR 8.4 million, down 9.8 per cent (10-12/2007: EUR 9.3 million).
Industry and Trade reported net sales of EUR 8.3 million, an increase of 7.3 per
cent (10-12/2007: EUR 7.7 million).
During the fourth quarter, the product business accounted for EUR 4.6 million
(10-12/2007: EUR 4.9 million) of consolidated net sales, or 14.1 per cent
(10-12/2007: 15.9 per cent).
International operations accounted for EUR 3.7 million (10-12/2007: EUR 3.5
million) of consolidated net sales in the fourth quarter, or 11.3 per cent
(10-12/2007: 11.1 per cent).
PROFIT PERFORMANCE AND PROFITABILITY
Digia's consolidated operating profit (EBIT) for the 2008 reporting period
amounted to EUR 13.4 million, up 21.3 per cent on a year earlier (2007: EUR 11.1
million). This includes EUR 0.3 million of operating profit of Sunrise Resources
Ltd. Profitability (EBIT-%) was 10.9 per cent (2007: 10.5 per cent). The
operating profit of the Group includes a EUR 2.1 million default credit which
weakened profitability (EBIT-%) by 1,7 percentage points.
Telecommunications posted an operating profit of EUR 7.7 million for the period,
representing a year-on-year increase of 35.3 per cent (2007: EUR 5.7 million),
and profitability (EBIT-%) was 12.6 per cent (2007: 11.8 per cent). Finance and
Services recorded an operating profit of EUR 1.6 million, down 38.2 per cent
(2007: EUR 2.6 million), and profitability was 5.0 per cent (2007: 8.9 per
cent). Industry and Trade posted an operating profit of EUR 4.1 million,
representing a year-on-year increase of 18.1 per cent (2007: EUR 3.5 million),
and profitability was 13.9 per cent (2007: 12.3 per cent).
Fourth quarter consolidated operating profit (EBIT) amounted to EUR 2.9 million,
representing a year-on-year decrease of 30.8 per cent (10-12/2007: EUR 4.2
million). This includes EUR 0.1 million of operating profit of Sunrise Resources
Ltd. Profitability (EBIT-%) was 8.9 per cent (10-12/2007: 13.6 per cent). A
default credit of EUR 1.1 million was added during the fourth quarter which
weakened the profitability for the quarter (EBIT-%) by 3.3 percentage points.
Telecommunications reported an operating profit of EUR 0.8 million for the
fourth quarter, representing a year-on-year decrease of 57.5 per cent
(10-12/2007: EUR 1.8 million), and profitability (EBIT-%) was 4.7 per cent
(10-12/2007: 12.7 per cent). Finance and Services posted an operating profit of
EUR 0.7 million, down 52.9 per cent (10-12/2007: EUR 1.4 million), and
profitability was 7.9 per cent (10-12/2007: 15.1 per cent). Industry and Trade
recorded operating profit of EUR 1.5 million, representing a year-on-year
increase of 45.3 per cent (10-12/2007: EUR 1.0 million), and profitability was
18.1 per cent (10-12/2007: 13.4 per cent).
The Group's reported earnings before tax stood at EUR 10.4 million for the
period, representing growth of 31.8 per cent (1-12/2007: EUR 7.9 million), and
net profit totalled EUR 7.4 million, up 26.2 per cent (1-12/2007: EUR 5.9
million).
Earnings per share for the period were EUR 0.36, up 24.1 per cent (1-12/2007:
EUR 0.29). Fourth quarter earnings per share were EUR 0.07, a decrease of 46.2
per cent (10-12/2007: EUR 0.13).
The Group's net financial expenses for the reporting period were EUR 3.0 million
(1-12/2007: EUR 3.2 million).
FINANCIAL POSITION AND CAPITAL EXPENDITURE
At the end of the reporting period, the Digia Group's consolidated balance sheet
total stood at EUR 153.4 million (2007: EUR 149.6 million) and the equity ratio
was 47.1 per cent (2007: 46.5 per cent). Net gearing stood at 52.8 per cent
(2007: 65.1 per cent). The period-end cash and cash equivalents totalled EUR
18.9 million (2007: EUR 11.7 million), and interest-bearing liabilities amounted
to EUR 56.9 million (2007: EUR 56.4 million).
The Group carries out annual impairment tests for goodwill and intangible assets
with an indefinite useful life, in accordance with the IAS 36 standard.
The table below shows, by business segment, goodwill and values subject to
testing, at the end of the reporting period:
--------------------------------------------------------------------------------
| EUR 1,000 | Specified | Depreciation | Goodwill | Other | Total |
| | intangible | during the | | items | value |
| | assets | reporting | | | subject |
| | | period | | | to |
| | | | | | testing |
--------------------------------------------------------------------------------
| Telecommunicati | 7 586 | 1 201 | 49 546 | 5 343 | 62 475 |
| ons | | | | | |
--------------------------------------------------------------------------------
| Finance and | 1 860 | 313 | 13 692 | 2 619 | 18 172 |
| Services | | | | | |
--------------------------------------------------------------------------------
| Industry and | 2 901 | 585 | 26,410 | 2 372 | 31 684 |
| Trade | | | | | |
--------------------------------------------------------------------------------
| Group total | 12 347 | 2 098 | 89 649 | 10 335 | 112 331 |
--------------------------------------------------------------------------------
Present values are determined on the basis of actual operating profit and
five-year forecasts by the CGU, with growth being three per cent and the
operating margin between 8 and 11 per cent.
Cash flows following the forecast period are estimated by extrapolating the cash
flows, using a steady net sales growth forecast of three per cent, with
operating profit estimated at 8-10 per cent of net sales. Discount rates have
been determined in view of the industry's general risk level, corresponding to
an annual interest rate of 11 per cent.
Net sales growth is reckoned to constitute the most critical factor in
calculating the present values of cash flows. The amount of goodwill for
Telecommunications requires average annual long-term growth of around two per
cent for business operations and 9 per cent profitability before amortisation of
intangible assets. The amount of goodwill for Finance and Services requires
average annual growth of two per cent for business operations and five per cent
profitability before amortisation of intangible assets. The amount of goodwill
for Industry and Trade requires average annual long-term growth of two per cent
for business operations and ten per cent profitability before amortisation of
intangible assets.
Based on a reasonable estimate, any change in key variables used in calculations
during the reporting period would not lead to a situation in which the segment's
carrying amount would exceed its recoverable amount. Consequently, in the
management's view, there is no need to recognise impairment losses.
The division of goodwill will change according to the new segments beginning 1
January 2009, focusing on the business activities of Mobile Solutions and
Enterprise Solutions.
The Group's cash flow from business operations for the period was positive by
EUR 15.5 million (1-12/2007: positive cash flow of EUR 6.2 million), cash flow
from investments was negative by EUR 5.3 million (1-12/2007: negative EUR 4.3
million) and cash flow from finance was negative by EUR 3.0 million (1-9/2007:
negative EUR 1.6 million). Cash flow from investments was negatively influenced
by the acquisition of Sunrise Resources Ltd, with a negative impact of EUR 2.8
million. Cash flow from finance was negatively affected by the acquisition of
own shares, with a negative effect of EUR 1.0 million, and payment of dividends,
with a negative impact of EUR 2.0 million.
Gross capital expenditure during the period totalled EUR 2.5 million (1-12/2007:
EUR 1.8 million). Acquisitions of tangible fixed assets totalled EUR 2.0 million
(1-12/2007: EUR 1.4 million).
Return on investment (ROI) for the period stood at 11.3 per cent (12/2007: 9.4
per cent) and return on equity (ROE) was 10.5 per cent (12/2007: 8.9 per cent).
HUMAN RESOURCES, MANAGEMENT AND ADMINISTRATION
At the end of the period, the number of Group personnel totalled 1,337 -
representing an increase of 182 employees, or 15.8 per cent, since 31 December
2007 (2007: 1,155). During the reporting period, the number of employees
averaged 1,314 - an increase of 198 employees, or 17.7 per cent compared to the
same period a year earlier (2007: 1,116).
Employees by function at the end of the period:
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| Telecommunications | 56% |
--------------------------------------------------------------------------------
| Finance and Services | 21% |
--------------------------------------------------------------------------------
| Industry and Trade | 19% |
--------------------------------------------------------------------------------
| Administration and Management | 4% |
--------------------------------------------------------------------------------
As of the end of the period, a total of 123 employees were working abroad (2007:
26).
The Annual General Meeting (AGM) of 11 March 2008 elected the following Board
members: Pekka Sivonen (Full-time Chairman), Pertti Kyttälä (Vice Chairman),
Kari Karvinen, Harri Koponen and Martti Mehtälä. Pekka Sivonen requested leave
of absence regarding his full-time position as Chairman of the Board in spring
2008. On his return, the Board re-appointed him as full-time Chairman of the
Board from 6 October 2008 until the end of the next AGM in accordance with a
separately drawn up employment contract. Sivonen's duties include investigating
potential strategic partnerships and business relationships, analysing markets
in Digia's core business areas, participating in strategy planning, and
developing the company's capital structure. Harri Koponen resigned as a member
of Digia's Board of Directors on 4 August 2008 after he was appointed CEO of
telecom operator Tele2.
Juha Varelius has been Digia's President and CEO since 1 January 2008.
Ernst & Young Oy, a firm of authorised public accountants, is the Group's
auditor, with Heikki Ilkka, Authorised Public Accountant, as chief auditor.
Related party transactions
The Digia Group's related parties include the CEO and the members of the Board
of Directors and the Group Management Team. The Group had no significant
transactions with related parties during the reporting period.
GROUP STRUCTURE AND ORGANISATION
As of the end of the period, the Digia Group consisted of parent company Digia
Plc and its active subsidiaries: Digia Finland Ltd (parent company holding
100%); Digia Sweden AB (100%); Digia Estonia Oü (100%); Sunrise Resources Ltd
(100%), which has an active subsidiary, OOO Sunrise-r Spb (100%), in Russia; and
Digia Hong Kong Ltd (100%), which has a wholly-owned company, Digia Software
(Chengdu) Co. Ltd, operating in China. Digia Finland Ltd also has the
wholly-owned active subsidiaries Digia Service Ltd (100%) and Digia Financial
Software Ltd (100%). The company intends to merge Digia Service Ltd into Digia
Finland Ltd during 2009.
SHAREHOLDERS' MEETINGS
Annual General Meeting on 11 March 2008
Convening on 11 March 2008, Digia Plc's Annual General Meeting (AGM) adopted the
financial statements for 2007, released the Board members and the CEO from
liability, approved the distribution of profit for 2007 as proposed by the Board
of Directors, determined Board emoluments, and elected the company's Board of
Directors for a new term. In addition, the AGM decided to change the company
name to Digia Plc and selected a new auditor for the company.
The AGM granted the Board authorisation to carry out a share issue and buy back
the company's own shares. At a meeting held after the AGM of 11 March 2008, the
Board of Directors decided to continue the buyback of its own shares in
accordance with the terms of the General Meeting's authorisation and the terms
published on 13 February 2008. In addition, the Board continued the buy back
with decision on November 28, 2008.
SHARE CAPITAL AND SHARES
As of the end of the period, the number of Digia shares totalled 20,853,645.
According to Finnish Central Securities Depository Ltd, Digia had 3,281
shareholders on 31 December 2008. The ten major shareholders were:
--------------------------------------------------------------------------------
| Shareholder | Percentage of shares and votes |
--------------------------------------------------------------------------------
| Pekka Sivonen | 24.4 |
--------------------------------------------------------------------------------
| Kari Karvinen | 7.6 |
--------------------------------------------------------------------------------
| Matti Savolainen | 6.3 |
--------------------------------------------------------------------------------
| OP-Suomi Pienyhtiöt mutual fund | 3.6 |
--------------------------------------------------------------------------------
| Varma Mutual Pension Insurance Company | 3.6 |
--------------------------------------------------------------------------------
| Nordea Bank Finland Plc / | 3.5 |
| Nominee-registered | |
--------------------------------------------------------------------------------
| UBVIEW Non-Ucits Fund | 3.4 |
--------------------------------------------------------------------------------
| Veikko Laine Oy | 2.8 |
--------------------------------------------------------------------------------
| Scandinaviska Enskilda Banken | 1.9 |
| /Nominee-registered | |
--------------------------------------------------------------------------------
| Digia Plc | 1.5 |
--------------------------------------------------------------------------------
Distribution of holdings by number of shares held on 31 December 2008
--------------------------------------------------------------------------------
| Number of shares | Holding (%) | Shares and votes (%) |
--------------------------------------------------------------------------------
| 1 - 100 | 22.2 | 0.3 |
--------------------------------------------------------------------------------
| 101 - 1,000 | 50.8 | 3.8 |
--------------------------------------------------------------------------------
| 1,001 - 10,000 | 23.4 | 10.7 |
--------------------------------------------------------------------------------
| 10,001 - 100,000 | 2.8 | 12.8 |
--------------------------------------------------------------------------------
| 100,001 - 1,000,000 | 0.7 | 34.1 |
--------------------------------------------------------------------------------
| 1,000,001 - 3,000,000 | 0.1 | 38.3 |
--------------------------------------------------------------------------------
Shareholding by sector on 31 December 2008
--------------------------------------------------------------------------------
| Holding (%) | Shares (%) |
--------------------------------------------------------------------------------
| Companies | 6.2 | 15.0 |
--------------------------------------------------------------------------------
| Financial institutions and insurance companies | 0.5 | 11.9 |
--------------------------------------------------------------------------------
| Non-corporate public sector | 0.1 | 3.8 |
--------------------------------------------------------------------------------
| Non-profit organisations | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Households | 92.3 | 67.5 |
--------------------------------------------------------------------------------
| Foreign ownership | 0.5 | 1.4 |
--------------------------------------------------------------------------------
REPORTED SHARE PERFORMANCE ON THE HELSINKI STOCK EXCHANGE
Digia Plc shares are listed on the Nordic Exchange under Information Technology
IT Services. The company's short name is DIG1V. The lowest reported share
quotation was EUR 1.73 and the highest was EUR 3.35. The share closed at EUR
1.86 on the period's last trading day. The trade-weighted average amounted to
EUR 2.83. The Group's market capitalisation totalled EUR 38,787,780 at the end
of the period.
The company did not receive any new flagging notifications during the reporting
period.
STOCK OPTION SCHEMES
Digia Plc's current option schemes include the stock option scheme 2005A-C, on
the basis of which a maximum number of 900,000 Digia shares can be subscribed.
On 31 December 2008, the remaining number of warrants issued by Digia totalled
900,000. Shares subscribed for using the warrants represent a maximum of 4.13
per cent of the company's share capital and voting rights after any potential
increase in share capital. On 31 December 2008, the number of valid warrants
still held by Digia totalled 527,000. The maximum dilution effect of the issued
warrants stood at 1.8 per cent on 31 December 2008.
Helsinki, 3 February 2008
Digia Plc
Board of Directors
BRIEFING FOR MEDIA AND ANALYSTS
Digia will hold a briefing on its 2008 Financial Statement for analysts and the
media on Tuesday, 3 February 2009 at 3.00 p.m. at the Simonkentän Tapiola
Cabinet of the Scandic Hotel, Simonkatu 9, Helsinki, Finland. All are welcome.
FURTHER INFORMATION
Juha Varelius, President and CEO
Mobile: +358 400 855849, email: juha.varelius@digia.com
The Interim Report and access to the related live briefing for the media and
analysts (in Finnish) will be available in the ‘Investors' section at
www.digia.com beginning at 3 p.m.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
ATTACHMENTS
Consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Notes to the accounts
The Financial Statement has been prepared in compliance with IFRS and standard
IAS 34. This Financial Statement is based on unaudited figures.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| | 10-12/20 | 10-12/20 | Change | 2008 | 2007 | Change, |
| | 08 | 07 | ,% | | | % |
--------------------------------------------------------------------------------
| Net sales | 32,761.6 | 31,012.5 | 6% | 123,203. | 105,839.4 | 16% |
| | | | | 4 | | |
--------------------------------------------------------------------------------
| Other | 32.9 | -5.2 | -735% | 59.6 | 211.6 | -72% |
| operating | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Materials | -1,958.5 | -2,706.7 | -28% | -10,048. | -8,363.5 | 20% |
| and services | | | | 7 | | |
--------------------------------------------------------------------------------
| Depreciation | -1,169.7 | -1,285.6 | -9% | -4,762.6 | -4,893.5 | -3% |
| and | | | | | | |
| impairment | | | | | | |
--------------------------------------------------------------------------------
| Other | -26,750. | -22,803. | 17% | -95,014. | -81,713.9 | 16% |
| operating | 8 | 1 | | 3 | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 2,915.5 | 4,211.9 | -31% | 13,437.4 | 11,080.1 | 21% |
| profit | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial | -820.6 | -858.2 | -4% | -3,031.3 | -3,182.5 | -5% |
| expenses | | | | | | |
| (net) | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Pre-tax | 2,094.9 | 3,353,7 | -38% | 10,406.1 | 7,897.6 | 31.8% |
| profit | | | | | | |
--------------------------------------------------------------------------------
| Direct tax | -745.5 | -699.0 | 7% | -2,997.1 | -2,026,4 | 48% |
--------------------------------------------------------------------------------
| Net profit | 1,349.4 | 2,654.7 | -49% | 7,409.0 | 5,871.2 | 26.2% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Allocation: | | | | | | |
--------------------------------------------------------------------------------
| Parent | 1,349.4 | 2,654.7 | -49% | 7,409.0 | 5,871.2 | 26% |
| company | | | | | | |
| shareholders | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| shareholders | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.07 | 0.13 | -46.2% | 0.36 | 0.29 | 24.1% |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.07 | 0.13 | -46.2% | 0.36 | 0.29 | 24.1% |
| share, EUR, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, EUR 1,000
--------------------------------------------------------------------------------
| Assets | 31 Dec. 2008 | 31 Dec. 2007 | Change,% |
--------------------------------------------------------------------------------
| Fixed and other non-current assets |
--------------------------------------------------------------------------------
| Intangible assets | 103,045.2 | 102,107.6 | 1% |
--------------------------------------------------------------------------------
| Tangible assets | 3,125.6 | 2,935.5 | 6% |
--------------------------------------------------------------------------------
| Financial assets | 628.0 | 660.3 | -5% |
--------------------------------------------------------------------------------
| Deferred tax assets | 1,756.1 | 2,312.0 | -24% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total fixed and other | 108,554.9 | 108,015.4 | 0% |
| non-current assets | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets |
--------------------------------------------------------------------------------
| Current receivables | 25,957.4 | 29,889.0 | -13% |
--------------------------------------------------------------------------------
| Available-for-sale financial | 273.2 | 5,180.4 | -95% |
| assets | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 18,605.6 | 6,558.4 | 184% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total current assets | 44,836.3 | 41,627.8 | 8% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 153,391.2 | 149,643.2 | 3% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and | 31 Dec. 2008 | 31 Dec.2007 | Change,% |
| liabilities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Share capital | 2 085,4 | 2 085,4 | 0% |
--------------------------------------------------------------------------------
| Issue premium fund | 7 899,5 | 7 892,5 | 0% |
--------------------------------------------------------------------------------
| Other reserves | 5 203,8 | 5 203,8 | 0% |
--------------------------------------------------------------------------------
| Unrestricted invested | 34 938,2 | 38 110,6 | -8% |
| shareholders' equity | | | |
--------------------------------------------------------------------------------
| Translation difference | -254,3 | -11,8 | 2051% |
--------------------------------------------------------------------------------
| Retained earnings/loss | 14 801,0 | 9 450,3 | 57% |
--------------------------------------------------------------------------------
| Net profit | 7 409,0 | 5 871,2 | 26% |
--------------------------------------------------------------------------------
| Equity attributable to parent | 72 082,6 | 68 602,0 | 5% |
| company share holders | | | |
--------------------------------------------------------------------------------
| Minority interest | 0,0 | 0,0 | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total shareholders' equity | 72 082,6 | 68 602,0 | 5% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Long-term, interest-bearing | 935,2 | 55 646,7 | -98% |
| liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 3 137,8 | 3 442,4 | -9% |
--------------------------------------------------------------------------------
| Total long-term liabilities | 4 073,0 | 59 089,1 | -93% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | 56 014,8 | 766,3 | 7210% |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other short-term debt | 21 220,8 | 21 185,8 | 0% |
--------------------------------------------------------------------------------
| Total short-term liabilities | 77 235,6 | 21 952,1 | 252% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total liabilities | 81 308,6 | 81 041,2 | 0% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Shareholders' equity and | 153 391,2 | 149 643,2 | 3% |
| liabilities | | | |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| Cash flow from business operations: | 1 Jan. 2008 - 31 | 1 Jan. 2007 - 31 |
| | Dec. 2008 | Dec. 2007 |
--------------------------------------------------------------------------------
| Net profit | 7 409 | 5 871 |
--------------------------------------------------------------------------------
| Adjustments to profit for the period | 10 821 | 10 165 |
--------------------------------------------------------------------------------
| Change in working capital | 1 321 | -4 566 |
--------------------------------------------------------------------------------
| Income tax paid | -3 533 | -3 329 |
--------------------------------------------------------------------------------
| Net cash flow from investments | 596 | 250 |
--------------------------------------------------------------------------------
| Income tax paid | -1 141 | -2 233 |
--------------------------------------------------------------------------------
| Net cash flow from investments | 15 473 | 6 157 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash flow from investments: | | |
--------------------------------------------------------------------------------
| Purchase of property, plant and | -2 512 | -1 979 |
| equipment and intangible assets | | |
--------------------------------------------------------------------------------
| Proceeds from sale of intangible | - | - |
| assets and PPE | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiary, net of | -2 803 | -2 339 |
| cash acquired | | |
--------------------------------------------------------------------------------
| Proceeds of sale of other investments | - | - |
--------------------------------------------------------------------------------
| Dividends received | - | - |
--------------------------------------------------------------------------------
| Cash flow from investments | -5 315 | -4 318 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash flow from financing: | | |
--------------------------------------------------------------------------------
| Proceeds from share issue | 7 | 1 241 |
--------------------------------------------------------------------------------
| Acquisition of own shares | -951 | - |
--------------------------------------------------------------------------------
| Equity financing of share-based bonus | - | -971 |
| scheme | | |
--------------------------------------------------------------------------------
| Repayment of current loans | -33 | - |
--------------------------------------------------------------------------------
| Repayment of non-current loans | - | -252 |
--------------------------------------------------------------------------------
| Withdrawal of current loans | - | - |
--------------------------------------------------------------------------------
| Withdrawal of non-current loans | - | - |
--------------------------------------------------------------------------------
| Dividends paid and other profit | -2 041 | -1 625 |
| distribution | | |
--------------------------------------------------------------------------------
| Cash flow from financing | -3 019 | -1 606 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | 7 140 | 234 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 11 739 | 11 506 |
| beginning of the period | | |
--------------------------------------------------------------------------------
| Change in fair value of cash and cash | - | - |
| equivalents | | |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | 7 140 | 234 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end | 18 879 | 11 739 |
| of the period | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, EUR 1,000
--------------------------------------------------------------------------------
| | a | b | c | d | e | F | g | h |
--------------------------------------------------------------------------------
| Balance | 2 031 | 6 | 44 | -7 | 0 | 9 312 | 114 | 63 119 |
| 1 Jan. | | 729 | 939 | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Available | | | | | | | | 0 |
| for sale | | | | | | | | |
| investment | | | | | | | | |
| s: | | | | | | | | |
--------------------------------------------------------------------------------
| Fair value | | | | | | | | 0 |
| gains/loss | | | | | | | | |
| es | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
--------------------------------------------------------------------------------
| Items | 0 | 0 | 0 | 0 | 0 | | 0 | |
| recognized | | | | | | | | |
| directly | | | | | | | | |
| in equity | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | 5 871 | 0 | 5 871 |
--------------------------------------------------------------------------------
| Total | 0 | 0 | 0 | 0 | 0 | 5 871 | 0 | 5 871 |
| recognized | | | | | | | | |
| income and | | | | | | | | |
| expenses | | | | | | | | |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Increase | 5 | 117 | | | | | | 121 |
| of share | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | - | | | | | -1 625 |
| payment | | | 1625 | | | | | |
--------------------------------------------------------------------------------
| Share-base | | | | | | 112 | | 112 |
| d | | | | | | | | |
| transactio | | | | | | | | |
| ns settled | | | | | | | | |
| in equity | | | | | | | | |
--------------------------------------------------------------------------------
| Used share | 49 | 1070 | | | | | | 1120 |
| options | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | -23 | | -5 | | 26 | -114 | -114 |
--------------------------------------------------------------------------------
| Balance | 2 085 | 7 | 43 | -12 | 0 | 15 321 | 0 | 68 602 |
| 31 Dec. | | 893 | 314 | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | a | b | c | d | e | f | g | H |
--------------------------------------------------------------------------------
| Balance | 2 085 | 7 89 | 43 31 | -12 | 0 | 15 321 | 0 | 68 602 |
| 1 Jan. | | 3 | 4 | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Available- | | | | | | | | 0 |
| for-sale | | | | | | | | |
| investment | | | | | | | | |
| s: | | | | | | | | |
--------------------------------------------------------------------------------
| Fair value | | | | | | | | 0 |
| gains/loss | | | | | | | | |
| es | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
--------------------------------------------------------------------------------
| Items | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| recognized | | | | | | | | |
| directly | | | | | | | | |
| in equity | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | 7 409 | 0 | 7 409 |
--------------------------------------------------------------------------------
| Total | 0 | 0 | 0 | 0 | 0 | 7 409 | 0 | 7 409 |
| recognized | | | | | | | | |
| income and | | | | | | | | |
| expenses | | | | | | | | |
| for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Increase | | 7 | | | | | | 7 |
| of share | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | -2 04 | | | | | -2 041 |
| payment | | | 1 | | | | | |
--------------------------------------------------------------------------------
| Own share | | | -1 13 | | | 169 | | -962 |
| redemption | | | 1 | | | | | |
| reserve | | | | | | | | |
--------------------------------------------------------------------------------
| Share-base | | | | | | -690 | | -690 |
| d | | | | | | | | |
| transactio | | | | | | | | |
| ns settled | | | | | | | | |
| in equity | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | -242 | | | | -242 |
--------------------------------------------------------------------------------
| Balance | 2 085 | 7 | 40 | -254 | 0 | 22 210 | 0 | 72 083 |
| 31 Dec. | | 899 | 142 | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
a = share capital
b = share premium
c = other reserves and invested unrestricted equity
d = currency translation difference
e = fair value reserve
f = retained earnings
g = minority interest
h = total shareholders'equity
NOTES TO THE ACCOUNTS
Accounting principles:
The accounting principles and calculation methods used in the previous year-end
accounts have been applied to this Interim Report.
The subsidiary acquired in the first quarter, Sunrise Resources Ltd, has been
included in the consolidated financial statement as of 1 January 2008.
Seasonal nature of business:
The Group's business is affected by the number of workdays each month as well as
by holiday seasons.
Dividends paid:
A per-share dividend of EUR 0.10, or a total of EUR 2,041,426.80, was paid based
on the decision of the AGM of 11 March 2008. The dividend payment date was 25
March 2008.
Interest hedge of non-current loans:
The Group had on December 31,2008 a total of EUR 55,000,000.00 in non-current
loans. Of this amount, EUR 25,000,000.00 has been hedged with a cap agreement in
which the cap on the interest on the loan is 5.0 per cent and 12.5 million with
floor agreement. The agreement is valid until 9 November 2009. Hedge accounting
has not been applied to this financial instrument.
Events after the balance sheet date:
The company has reduced its old loan stock of EUR 55 million to EUR to 50
million on January 29 2009. In addition the company has agreed on a EUR 50
million credit facility with which the old loan stock will be paid off in
entirety.
Segment information:
--------------------------------------------------------------------------------
| NET SALES, EUR | 10-12/2 | 10-12/2 | Change% | 2008 | 2007 | Change % |
| 1,000 | 008 | 007 | | | | |
--------------------------------------------------------------------------------
| Telecommunicatio | 16 064 | 13 956 | 15% | 60 945 | 47 963 | 27% |
| ns | | | | | | |
--------------------------------------------------------------------------------
| Finance and | 8 429 | 9 349 | -10% | 32 348 | 29 298 | 10% |
| Services | | | | | | |
--------------------------------------------------------------------------------
| Industry and | 8 268 | 7 708 | 7% | 29 910 | 28 578 | 5% |
| Trade | | | | | | |
--------------------------------------------------------------------------------
| Group total | 32 761 | 31 012 | 6% | 123 203 | 105 | 16% |
| | | | | | 839 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT | 10-12/2 | 10-12/20 | Change% | 2008 | 2007 | Change |
| EUR 1000 | 008 | 07 | | | | % |
--------------------------------------------------------------------------------
| Telecommunicatio | 754 | 1 772 | -57% | 7 673 | 5 671 | 35% |
| ns | | | | | | |
--------------------------------------------------------------------------------
| Finance and | 663 | 1 408 | -53% | 1 617 | 2 617 | -38% |
| Services | | | | | | |
--------------------------------------------------------------------------------
| Industry and | 1 498 | 1 031 | 45% | 4 147 | 3 511 | 18% |
| Trade | | | | | | |
--------------------------------------------------------------------------------
| One-off items | | | | | -719 | |
--------------------------------------------------------------------------------
| Group total | 2 915 | 4 211 | -31% | 13 437 | 11 080 | 21% |
--------------------------------------------------------------------------------
Acquired Business operations:
Digia Plc acquired all the shares in Sunrise Resources Ltd on 14 January 2008.
The acquisition price was EUR 3.6 million paid as a cash consideration, and
Digia financed the transaction through its cash reserves. In addition, the
sellers have a right to receive an additional purchase price which is about EUR
0.6 million that may be paid in cash or Digia's shares and will be paid during
the month of March. The acquisition generated EUR 2.7 million of goodwill, in
addition to which EUR 0.6 million of the acquisition price was allocated for the
acquired customers.
EUR 1,000 Fair value recognized upon combination Book value before combination
Property, plant and equipment 50 50
Intangible assets 636 4
Financial assets 32 32
Receivables 479 479
Cash and cash equivalents 865 865
Total assets 2 062 1 430
Income tax liabilities 191 27
Other creditors 277 277
Total liabilities 468 304
Net assets 1 594 1 126
Acquisition costs 4 311
Net assets - 1 594
Goodwill 2 717
Total acquisition cost -4 311
Additional purchase price, conditional 630
Cash and cash equivalents of the acquired subsidiary 865
Cash flow effect -2 816
Consolidated income statement by quarter:
--------------------------------------------------------------------------------
| EUR 1,000 | 10-12/20 | 7-9/2008 | 4-6/2008 | 1-3/2008 | 10-12/200 |
| | 08 | | | | 7 |
--------------------------------------------------------------------------------
| Net sales | 32 761,6 | 25 630,2 | 33 133,1 | 31 678,4 | 31 012,5 |
--------------------------------------------------------------------------------
| Other operating | 32,9 | 17,5 | 4,0 | 5,3 | -5,2 |
| income | | | | | |
--------------------------------------------------------------------------------
| Materials and | -1 958,5 | -1 996,5 | -3 271,2 | -2 822,5 | -2 706,7 |
| Services | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -1 169,7 | -1 156,8 | -1 159,4 | -1 276,8 | -1 285,6 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Other operating | -26 | -19 938,7 | -24 967,9 | -23 356,9 | -22 803,1 |
| expenses | 750,8 | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 2 915,5 | 2 555,7 | 3 738,6 | 4 227,6 | 4 211,9 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial | -820,6 | -692,2 | -721,4 | -797,1 | -858,2 |
| expenses (net) | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Pre-tax profit | 2 094,9 | 1 863,4 | 3 017,2 | 3 430,5 | 3 353,7 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Direct tax | -745,5 | -561,3 | -731,6 | -958,6 | -699,0 |
--------------------------------------------------------------------------------
| Net profit | 1 349,4 | 1 302,1 | 2 285,6 | 2 471,9 | 2 654,7 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Allocation | | | | | |
--------------------------------------------------------------------------------
| Parent company | 1 349,4 | 1 302,1 | 2 285,6 | 2 471,9 | 2 654,7 |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| Minority | 0,0 | 0 | 0,0 | 0 | 0,0 |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0,07 | 0,06 | 0,11 | 0,12 | 0,13 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0,07 | 0,06 | 0,11 | 0,12 | 0,13 |
| share, EUR, | | | | | |
| diluted | | | | | |
--------------------------------------------------------------------------------
Group Key figures and ratios:
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2006 |
--------------------------------------------------------------------------------
| Extent of business | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Net sales | 123 203 | 105 840 | 84 968 |
--------------------------------------------------------------------------------
| - change from previous year | 16% | 25% | 40% |
--------------------------------------------------------------------------------
| Average capital invested | 127 023 | 123 994 | 119 783 |
--------------------------------------------------------------------------------
| Personnel at period end | 1 337 | 1 155 | 1 087 |
--------------------------------------------------------------------------------
| Average number of personnel | 1 314 | 1 116 | 981 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Profitability | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Operating profit | 13 437 | 11 080 | 8 354 |
--------------------------------------------------------------------------------
| -% of net sales | 11% | 10% | 10% |
--------------------------------------------------------------------------------
| Earnings before taxes | 10 406 | 7 898 | 6 695 |
--------------------------------------------------------------------------------
| -% of net sales | 8% | 7% | 8% |
--------------------------------------------------------------------------------
| Net profit | 7 409 | 5 871 | 4 867 |
--------------------------------------------------------------------------------
| -% of net sales | 6% | 6% | 6% |
--------------------------------------------------------------------------------
| Return on equity, % | 11% | 9% | 8% |
--------------------------------------------------------------------------------
| Return on investment, % | 11% | 9% | 9% |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Financing and financial position | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 56 950 | 56 413 | 56 664 |
--------------------------------------------------------------------------------
| Short-term investments & cash and | 18 879 | 11 739 | 11 506 |
| bank receivables | | | |
--------------------------------------------------------------------------------
| Net gearing, % | 53% | 65% | 72% |
--------------------------------------------------------------------------------
| Equity ratio, % | 47% | 47% | 44% |
--------------------------------------------------------------------------------
| Net cash flow from operating | 15 473 | 6 157 | 5 756 |
| activities | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | 0,36 | 0,29 | 0,25 |
| undiluted | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR, diluted | 0,36 | 0,29 | 0,25 |
--------------------------------------------------------------------------------
| Equity per share | 3,46 | 3,32 | 3,10 |
--------------------------------------------------------------------------------
| Dividend/share (2008 proposal) | (*) 0,05 | 0,10 | 0,08 |
--------------------------------------------------------------------------------
| Dividend/earnings | (*) 14% | 35% | 32% |
--------------------------------------------------------------------------------
| Effective dividend yield | (*) 3% | 3% | 2% |
--------------------------------------------------------------------------------
| Price/earnings ratio | 5,17 | 10,39 | 13,70 |
--------------------------------------------------------------------------------
| Lowest share price | 1,73 | 2,93 | 3,00 |
--------------------------------------------------------------------------------
| Highest share price | 3,35 | 4,26 | 4,97 |
--------------------------------------------------------------------------------
| Average share price | 2,83 | 3,77 | 3,75 |
--------------------------------------------------------------------------------
| Market capitalization | 38 788 | 61 079 | 69 669 |
--------------------------------------------------------------------------------
(*) According to proposed Board maximum authorisation.
The formulae for the key figures and ratios are available in the presentation of
the previous year-end accounts. These formulae remained unchanged during the
reporting period.
The weighted average number of shares during the reporting period, adjusted for
share issues, totalled 20,853,645. The weighted average number of shares during
the reporting period, adjusted for dilution, totalled 20,853,645. The number of
outstanding shares totalled 20,853,645 at the end of the reporting period.
The company held a total of 316,620 treasury shares at the end of the reporting
period. All shares have been acquired during the reporting period. The book
value of own shares is at EUR 0.10 per share. The company held 1.5 per cent of
the capital stock as of 31 December 2008. In accordance with the decision of the
Board of Directors, the company bought back 300,000 of its own treasury shares;
in addition the Board of Directors decided on a new program to buy back its own
shares until it holds at most 400,000 or has used at most EUR 2,000,000 for the
buyback of 300,000 shares. The buy back program was terminated by the Board at
the February 3 2009 meeting.
Relating to the company's performance-based incentive system, Digia has financed
the acquisition of 300,000 own shares. In the coming years, these shares are
intended for distribution to key personnel as rewards for targets achieved as
per the conditions of the performance-based incentive system. In accordance with
the Board of Directors' decision, performance-based incentives to key personnel
will be paid in company shares. In June and July 2008, 62,110 of said 300,000
shares were distributed to key personnel as performance-based rewards for 2007.