Trainers' House's Financial Statements Bulletin for 1 January-31 December 2008 Trainers' House achieved the operating profit targeted for 2008. Net sales increased by 47.5%, and operating profit (before depreciation resulting from the allocation of the purchase price of Trainers' House Oy) increased by 244.8% in comparison with the previous year. The Board of Directors proposes that a dividend of EUR 0.05 per share, totalling EUR 3.4 million be paid for 2008. January-December: Net sales increased by 47.5% from the previous year, amounting to EUR 44.2 million (EUR 30.0 million). Operating profit grew by 244.8%, totalling EUR 7.3 million or 16.5% of net sales (EUR 2.1 million, 7.1% of net sales). Cash flow from operating activities nearly doubled to EUR 4.1 million (EUR 2.1 million). October-December: Net sales for the quarter were up 43.3% year on year, amounting to EUR 11.7 million (EUR 8.2 million). The last quarter of the year had the best profitability in 2008. Operating profit grew by 226.3%, totalling EUR 2.4 million or 20.2% of net sales (EUR 0.7 million, 8.9% of net sales). Cash flow from operating activities amounted to EUR 1.4 million (EUR 1.1 million). Balance sheet ratios: Liquid assets totalled EUR 7.7 million (17.1 million). Interest-bearing liabilities amounted to EUR 21.8 million (34.3 million) and interest-bearing net debts totalled EUR 14.2 million (17.2 million). During the period under review, long-term interest-bearing debt was paid off in the amount of EUR 12.3 million. Net gearing was 22.9% (27.6%). The equity ratio was 65.1% (56.0%). Earnings per share were EUR 0.02 (EUR 0.12). Targets for 2008: The company achieved the financial forecast presented in the financial statements for 2007 and in previous interim reports for 2008, according to which the like-for-like operating profit for 2008 is expected to exceed that of the previous year. SaaS services: SaaS (Software as a Service) services developed by Trainers' House were sold to over 1,300 users. SaaS services are software products sold to customers as continuous services that enable them to leverage and maintain the power of business-critical growth management systems - training and marketing. These services play a key role in the growth strategy of Trainers' House. In the period under review, over EUR 2 million were invested in the development of SaaS services. These investments were recognized as expenses in full. Dividend distribution: The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.05 per share be paid for 2008, totalling EUR 3.4 million. The Board of directors has decided to specify the long term financial objectives of the company stating that the company will aim to pay stable dividend also in the future. OUTLOOK FOR THE FUTURE Due to a general uncertainty in the markets and a challenging business environment, the company will not give net sales or profitability forecast. CEO JARI SARASVUO The company improved its trot while the economic cycle worsened. Our personnel toughened up the change and the wisest customers realized that the news of the end of the world is just hyperventilation of hysterics. In spite of the troublesome developments around us, we were often enough able to rise up to the challenge for our customers in their moments of truth. I want to express my gratitude for those who believed in us and worked hard in order to win this battle. We are in the middle of a turmoil that will last for years. Although the journey will be difficult, at the end of the day we hope to benefit from this turmoil. All the same, we will stay in the trade register, we will repay our loans, distribute dividends and we will make our strategy come true. How many Mt Everests we still have to climb before getting to Shangri La is at the end of the day secondary to our management, principal shareholders and key players. The result of our training operations, 8.3 million euro, is nice enough. In due course we must be able to fit also the other dynamics of our growth concepts to the needs and goals of our customers at an equivalent level. For more information, please contact: Jari Sarasvuo, CEO, tel. 0500 665 666 Mirkka Vikström, CFO, tel. 050 376 1115 Press conference: Trainers' House will hold a press and analyst conference regarding the financial statements bulletin on 13 February, at noon-1 pm, at the company's office located at Porkkalankatu 11, Helsinki. Those wishing to participate should contact Vladimira Belik, tel. 050 376 1431 or e-mail vladimira.belik@trainershouse.fi. TRAINERS' HOUSE'S FINANCIAL STATEMENTS BULLETIN FOR 1 JANUARY - 31 DECEMBER 2008 REVIEW OF OPERATIONS Business operations Trainers' House provides business-critical growth management services. We are happier to service the customer's business than the customer's organization. The company's growth management services are based on SaaS (Software as a Service) services, which deliver quantifiable results on productivity growth in marketing, sales and the management of corporate culture and strategy. SaaS services enable our customers to reduce the cost of each extra euro of cash flow, improve the likelihood of success and increase strategic agility. The company's areas of expertise, the gathering and processing of market information, marketing, and training and systems know-how together form an integrated Growth System. The idea of the Growth System is to improve overall productivity of the customers by influencing the chances of success in marketing, sales and the management of customer-oriented work. Trainers' House has offices in Ruoholahti and Hernesaari, Helsinki, and in Tampere and Turku. The company's international operations are based in Düsseldorf, Stockholm and St. Petersburg. Changes in business operations and corporate structure Trainers' House Plc is a business growth company formed when Satama Interactive Plc acquired the entire share capital of Trainers' House Oy in 2007 and the companies merged on 31 December 2007. In connection with the merger, the combined company adopted the name Trainers' House Plc. Trainers' House Plc's wholly owned subsidiaries Satama MST Oy, Fimentor Oy and Seiren Solutions Oy, as well as Trainers' House Growth System Corporation's wholly owned subsidiary The Uncles Oy will be merged into Trainers' House Growth System Corporation on 31 December 2008. Trainers' House Growth System Corporation is a wholly owned subsidiary of Trainers' House Plc. In addition to Trainers' House Growth System Corporation, other operating subsidiaries owned by Trainers' House Plc include Ignis Oy, as well as subsidiaries in Sweden, Germany and Russia. SaaS services SaaS services (Software as a Service) are software products sold to customers as continuous services as part of the Growth System. The development of SaaS services plays a key role in the company's strategy. By the end of 2008, the company had sold in excess of 1,300 SaaS service licences. More than 300 of these licences are for the BLARP (Business Live Action Role Play) service. The company's first SaaS service, the BLARP growth management system, has so far been sold to 13 customers. The customers are companies of various sizes. The number of people using each service sold varies from around 10 to 70 users. Product development continues under close customer guidance. During the third quarter, the company launched into production use two new SaaS services under the names Polku (Path) and Pulssi (Pulse). Pulssi, a product designed to support training and to facilitate the monitoring of target achievement, has been an instant success. The service has already been sold to hundreds of users. Polku, a service designed to support personal growth, is usually offered as a part of the training provided by Trainers' House. The service has more than 100 users. Both services, Pulssi and Polku, are designed to be used typically for a limited period. In March 2009, the company will launch into production use a new service designed to support the management of knowledge work. The working title for this service is Sherpa. The new service will improve the productivity of companies by focusing the value and human process and time management on strategically important issues. Sherpa makes redeeming promises, innovation and objectives a shared responsibility in the whole company, and gives managers tools for real-time monitoring. In the short term, investments in SaaS service development will weaken profitability, because the services have little impact on net sales. However, in the long term we expect the share of SaaS services in our net sales to increase rapidly. In 2009, the company will continue to invest strongly in SaaS service development. During 2008, over EUR 2 million were invested in the development of SaaS services. These investments were recognized as expenses. The SaaS service development organization unit currently employs more than 20 people. Fighting recession As the general market situation continued to weaken in autumn 2008, Trainers' House decided to fight back. Under the slogan “Lamaa pataan” (Fighting recession), the company launched two new, innovative products. The first product to reach markets was New Deal, a EUR 3 million cash injection product aimed at advancing aspiring businesses. In the New Deal programme, Trainers' House builds a growth system for companies seeking growth, and provides a profit-sharing loan to support the growth. Loans have been allocated to the programme in the amount of EUR 3 million. Another product launched in the “Lamaa pataan” product family is Fight Club. “Fight Club - Training school for working day warriors” is a programme that offers participants both mental and physical strengthening. Fight Club is a process combining physical, social and mental training. Its real secret lies in the combination of these elements. The first Fight Club group was sold out in 48 hours. New groups are being launched in Helsinki, Tampere and Pori. Divestments in 2008 In the first quarter, Trainers' House sold its mobile technology unit to Nice-business Solutions Finland Oy. In connection with the divestment, 19 employees were transferred to Nice-business Solutions. The divestment has not had any significant impact on the company's net sales or result in the period under review. FINANCIAL PERFORMANCE Corporate structure and comparative figures The comparative figures presented are Satama Interactive Group's actual figures for 2007. The comparative figures used for reporting operating profit include the reported operating profit as well as operating profit before depreciation of allocated acquisition cost related to the acquisition of Trainers' House Oy. According to the company's management, these figures provide a more accurate view of the company's productivity. The company uses the adjusted operating profit as comparative data in presenting forecasts on future development. After the merger, the volume and profitability of operations have improved significantly year on year. Net sales increased by 47.5% from the previous year, amounting to EUR 44.2 million (30.0 million). Operating profit before depreciation resulting from the allocation of acquisition cost amounted to EUR 7.3 million, or 16.5%of net sales (EUR 2.1 million, or 7.1% of net sales). A total of EUR 10.2 million of the purchase price of Trainers' House Oy was allocated in intangible assets with a limited useful life. This item is depreciated over a period of five years. Depreciation resulting from the allocation totalled EUR 3.0 million in 2008. Operating profit after this depreciation was EUR 4.3 million, or 9.7% of net sales. The following table itemizes the Group's key figures (in thousands of euros): 2008 2007 Net sales 44,237 29,989 Expenses Personnel-related expenses -22,042 -18,663 Other expenses -13,837 -8,493 EBITDA 8,359 2,833 Depreciation of non-current assets -1,050 -713 Operating profit before depreciation of allocation of acquisition cost 7,308 % of net sales 16.5 Depreciation of allocation of acquisition cost -3,011 EBIT 4,298 2,119 % of net sales 9.7 7.1 Financial income and expenses -1,690 -259 Share of profit/loss in associated company -103 Profit/loss before tax 2,607 1,758 Tax -1,252*) 3,082*) Profit for the period from continuing operations 1,355 4,839 Divested operations 3,822**) Net profit for 2008 1,355 8,661 % of net sales 3.1 28.9 *) The tax included in the income statement is deferred. A positive net change in amount of EUR 3.6 million in deferred tax receivables and liabilities was recognized in the company's result for 2007. On 31 December 2008, deferred tax assets on the balance sheet totalled EUR 7.1 (9.1) million. Recognized taxes for 2008 have no impact on cash flow, because the company's balance sheet contains deferred tax assets from losses carried forward. **) Financial result of the company's Dutch operations and capital gain recognized as income resulting from the divestment of said operations in December 2007. Net sales for the fourth quarter amounted to EUR 11.7 million (EUR 8.2 million). Operating profit before depreciation resulting from the allocation of acquisition cost amounted to EUR 2.4 million, or 20.2% of net sales (EUR 0.7 million, or 8.9% of net sales). Operating profit after this depreciation was EUR 1.8 million (EUR 0.7 million). The following table itemizes the distribution of net sales for continuing operations and shows the quarterly profits or losses from the beginning of 2007 (in thousands of euros). In the table, the figures for 2007 are adjusted to reflect the company's continuing operations. Q107 Q207 Q307 Q407 2007 Q108 Q208 Q308 Q408 2008 Net sales 8070 7812 5945 8161 29989 12009 12318 8216 11694 44237 Operating profit before depreciation of acquisition cost 403 705 287 724 2119 2259 2192 495 2363 7308 Operating profit 403 705 287 724 2119 1458 1390 -307 1757 4298 Pro forma comparison In the pro forma comparison, the company's actual net sales and operating profit for 2008 are compared with the pro forma figures for the same period in 2007. The pro forma figures describe the net sales and operating profit of the merged company, had the merger of Satama and Trainer's House Oy taken place on 1 January 2007. The pro forma result is theoretical. The pro forma figures are as follows: 2008 2007 Net sales 44,237 46,606 Operating profit before depreciation of allocation of acquisition cost 7,308 7,266 % of net sales 16.5 15.6 Depreciation of allocation of acquisition cost -3,011 -3,090 EBIT 4,298 4,176 % of net sales 9.7 9.0 Average number of personnel 375 416 Pro forma net sales fell from the previous year. This resulted mainly from the transfer of resources from invoiceable work to SaaS product development and from a reduction in the number of personnel. An organization of about 20 people and over EUR 2 million were allocated in the development of SaaS services. These people were transferred from invoiceable work. Nevertheless, profitability improved from the previous year, in both absolute and relative terms. Furthermore, the efficiency of business operations improved considerably in terms of net sales/personnel and operating profit/personnel, despite increasing investments in SaaS product development. LONG-TERM OBJECTIVES Trainers' House Plc's Board of Directors has set the following long-term financial objectives for the company: The company will target 15% annual organic growth and 15% operating profit, and will aim to pay stable dividend also in the future. We expect to achieve these goals once our Growth System concepts have been completed and along with the internationalization of Trainers' House Plc. Results for 2008 in relation to objectives In 2008, the operating profit of Trainers' House was 16.5%. The Board of Directors proposes that a dividend of EUR 0.05 per share, totalling EUR 3.4 million, be paid. The proposed dividend represents 251% of the net profit for the period. FINANCING, INVESTMENTS AND SOLVENCY Cash flow before financial items totalled EUR 5.6 million (EUR 2.4 million) and cash flow after financial items was EUR 4.1 million (EUR 2.1 million). Cash flow from investments totalled EUR 0.9 million (EUR −19.9 million). Cash flow from investments was positive mainly because of the divestment of the mobile technology unit. Cash flow from financing was EUR -14.5 million (EUR 34.4 million). Cash flow from financing was affected most significantly by the repayment of a loan related to the acquisition of Trainers' House Oy totalling EUR 12.3 million. This figure includes extra repayments in the amount of EUR 7.3 million relating to the divestment of the company's Dutch operations and the mobile technology unit. Dividends were paid in the amount of EUR 2.7 million. Cash flow from financing was affected positively in the amount of EUR 0.5 million by subscriptions made under warrant 2003C, for which the subscription period ended on 1 February 2008. On 31 December 2008, the Group's liquid assets totalled EUR 7.7 million (17.1 million). The equity ratio rose to 65.1% (56.0%). Net gearing went down to 22.9% (27.6%). At the end of the period under review, the company had EUR 21.8 million of interest-bearing debt (EUR 34.3 million). Financial risks Currency risks are insignificant, because Trainers' House operates principally in the euro zone. Interest rate risk is managed by covering part of the risk with hedging agreements. A bad debt provision, which is booked on the basis of ageing and case-specific risk analyses, covers risks to accounts receivable. SHORT-TERM BUSINESS RISKS AND FACTORS OF UNCERTAINTY The financial crisis and the resulting stagnation in economic activity in Finland and abroad will influence the decisions made by the company's customers and thereby affect the financial position of Trainers' House Plc. The key objective of the company's product offering - helping customers move forward and grow - is relevant also in a weak market situation. Furthermore, in the current economic situation, the quantifiability of our operations strengthens our position to some extent. Nevertheless, the length of sales projects is expected to increase, and more projects are expected to be cancelled than before. Price competition is getting harder, too. Customers are having more and more difficulty in keeping faith in the future. Risks in the company's operating environment are increasing, business operations are becoming more challenging, and it is becoming more difficult to estimate future developments. The operations of Trainers' House are hindered by the unequivocal cost cuts made by some customers. About risks Trainers' House is an expert organization. Market and business risks are part of regular business operations, and their extent is difficult to define. Typical risks in this field are associated with, for example, general economic development, distribution of the clientele, technology choices and development of the competitive situation and personnel expenses. Risks are managed through the efficient planning and regular monitoring of sales, human resources and business costs, enabling a quick response to changes in the operating environment. Furthermore, Trainers' House aims to improve its risk tolerance by designing services that are not easily affected by economic fluctuations. Our strategic goal, helping our customers to grow, is crucial to our customers also during a period of weakening economic climate. The success of Trainers' House as an expert organization also depends on its ability to attract and retain skilled employees. Personnel risks are managed with competitive salaries and incentive schemes as well as investments in employee training, career opportunities and general job satisfaction. Risks are discussed in more detail in the annual report and on the company's website at: www.trainershouse.fi > Investors. AUTHORIZATIONS BY THE BOARD OF DIRECTORS The Annual General Meeting authorized the Board of Directors to decide on the repurchase of the company's own shares. Under the authorization, whether on one or on several occasions, a maximum of 6,500,000 shares, which corresponds to approximately 9.62% of the company's shares, may be acquired. The authorization shall remain in force until 30 June 2009. At the same time the AGM countermanded the earlier comparable authorization. The Board of Directors is otherwise authorized to decide on all conditions related to the acquisition of own shares, including the manner of acquisition of shares. The authorization does not exclude the right of the Board of Directors to decide on a directed acquisition of own shares as well, if there is significant financial reason for the company to do so. The authorization had not been exercised on 31 December 2008. The AGM authorized the Board to decide on a share issue including the conveyance of own shares, and the issue of special rights. With these authorizations related to share issue and/or issue of special rights, whether on one or on several occasions, a maximum of 13,000,000 new shares may be issued and/or treasury shares may be transferred, which corresponds to approximately 19.24% of the company's shares. The authorization shall remain in force until 30 June 2009. At the same time the AGM countermanded the earlier comparable authorization. The Board of Directors is otherwise authorized to decide on all terms regarding the share issue and issue of special rights, including the right to also decide on a directed share issue and a directed issue of special rights. Shareholders' pre-emptive subscription rights can be deviated from, provided that there is significant financial reason for the company to do so. The authorizations had not been exercised on 31 December 2008. PERSONNEL At the end of the period under review, the Group employed 340 (400) people, of whom 334 (391) were located in Finland. BOARD OF DIRECTORS Appointed by the previous Annual General Meeting, the Board of Directors of Trainers' House Plc has included the following persons: Aarne Aktan (Chairman), Timo Everi, Tarja Jussila, Kai Seikku, Petteri Terho and Matti Vikkula. The Board of Directors convened 11 times in 2008. The attendance rate was 79.2%. ACTING MANAGEMENT As of 31 December 2007, Jari Sarasvuo has acted as the CEO of Trainers' House Plc. Jarmo Lönnfors and Vesa Honkanen act as Senior Vice Presidents. Mirkka Vikström acts as the company's CFO. SHARES AND SHARE CAPITAL The company's shares have been listed on the NASDAQ OMX Nordic Exchange since 2000. Until 28 December 2007, the company's shares were listed under the name Satama Interactive Plc (SAI1V) and as of 31 December 2007 under the name Trainers' House Plc (TRH1V). At the beginning of the period under review, Trainers' House Plc had issued 74,577,375 shares and the company's registered share capital amounted to EUR 866,941.67. The company's share capital was increased by a total of EUR 13,801.92 during the period under review, as a result of subscriptions made on account of the 2003C warrants issued under the personnel's option programme. The total number of new shares subscribed for was 656,500. A total of 7,217,171 treasury shares acquired by Trainers' House Plc in the merger of Satama Interactive Plc and Trainers' House Oy were invalidated during the period under review. The invalidation did not affect the company's share capital. The change in the number of shares was registered in the trade register on 7 March 2008. At the end of the period under review, the company did not possess any treasury shares. At the end of the period, the share capital of Trainer's House Plc totalled EUR 880,743.59. The number of shares totalled 68,016,704. During the period under review, the average number of shares was 67,979,361 (undiluted) or 68,112,104 (diluted). In accordance with the decision of the Annual General Meeting, Trainers' House paid a dividend of EUR 0.04 per share on 11 April 2008. The dividend paid totalled EUR 2.7 million, or 31.4% of the profit for 2007. SHARE PERFORMANCE AND TRADING During the period under review, a total of 22.9 million shares, or 33.7% of the average number of all company shares (33.0 million shares or 80.0%), were traded on the Helsinki Exchanges for a value of EUR 26.0 million (EUR 40.3 million). The period's highest share quotation was EUR 1.44 (EUR 1.60), the lowest EUR 0.52 (EUR 1.00) and the closing price EUR 0.55 (EUR 1.20). The weighted average price was EUR 1.13 (EUR 1.23). At the closing price on 31 December 2008, the company's market capitalization was EUR 37.4 million (EUR 80.8 million). PERSONNEL OPTION PROGRAMMES Trainers' House Plc has one option programme for its personnel, included in the personnel's commitment and incentive scheme. The Annual General Meeting held on 29 March 2006 decided to commence an employee option programme involving 2,000,000 warrants. Due to the resulting subscriptions, the share capital of Trainers' House Plc may increase by a maximum of EUR 42,046.98 and the number of shares by a maximum of 2,000,000. Half of the warrants are titled 2006A and the other half 2006B. The subscription period for shares converted under the 2006A warrant is to begin on 1 September 2008 and to end on 28 February 2009. The subscription period for the shares converted under the 2006B warrant is to begin on a date determined by the Board of Directors after publication of the interim report for the second quarter of 2009, but not later than on 1 September 2009, and end on 28 February 2010. The dividend-adjusted subscription price after dividend payment is EUR 0.98 for shares converted under the 2006A warrant, and EUR 1.13 for shares converted under the 2006B warrant. CHANGES IN OWNERSHIP During the period under review, the company became aware of eight notices of change in ownership exceeding the disclosure threshold. Information on notices of change in ownership is available on the company's website at www.trainershouse.fi > Investors. The merger of Trainers' House Oy affected the company's shareholder base significantly. More than half of the company's shares are currently owned by its employees. Exemption The company's CEO Jari Sarasvuo and his controlled company Isildur Oy currently hold a total of 36.7% of the share capital of Trainers' House Plc. The Finnish Financial Supervision Authority has on 18 December 2008 granted a new exemption until 30 June 2009 to Mr. Sarasvuo and Isildur Oy regarding the obligation to present a mandatory redemption offer concerning the shares of Trainers' House Plc. The combined shareholding of Mr. Sarasvuo and Isildur Oy exceeded 30 percent as the shares, issued in conjunction with the merger of Satama Interactive Plc and Trainers' House Oy, were registered to the Trade Register on 31 December 2007. On 29 August 2007, Trainers' House Plc (then Satama Interactive Plc) published an exemption to Mr. Sarasvuo and Isildur Oy granted by the Finnish Financial Supervision Authority regarding the obligation to present a mandatory redemption offer concerning the company. The terms and conditions of the exemption required that the combined shareholding of Mr. Sarasvuo and Isildur Oy would decline to 30% or under within one (1) year from the date that the new shares were registered to the Trade Register. This exemption became invalid on 31 December 2008. The terms and conditions of the new exemption require that the combined shareholding of Mr. Sarasvuo and Isildur Oy in Trainers' House will decline to 30% or under by 30 June 2009. Furthermore, the terms and conditions state that during the exemption, Mr. Sarasvuo and Isildur Oy shall not acquire or subscribe more shares or otherwise increase their ownership in the company, and that Mr. Sarasvuo and Isildur Oy, together or separately, shall not in general meetings use voting rights exceeding the amount of votes calculated by deducting the shares owned by Mr. Sarasvuo and Isildur Oy from the total amount of shares issued by the company and multiplying the calculated amount by 3/7. Information on the company's ownership structure and major shareholders is available on the company's website at www.trainershouse.fi > Investors. BOARD'S PROPOSAL CONCERNING DISTRIBUTABLE ASSETS At the end of 2008, the parent company's distributable assets amounted to EUR 39.5 million. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.05 per share be paid for 2008, totalling EUR 3.4 million or 251% of the net profit for the period. CONDENSED FINANCIAL STATEMENTS AND NOTES The financial statement was compiled in accordance with the IAS 34 standard. In accordance with the risk management principles described in the company's financial statements, the company has managed part of the interest rate risk of financial liabilities with hedging and has adopted hedge accounting. Amendments to and interpretations of published standards, as well as the new standards effective as of 1 January 2007 are presented in detail in the Financial Statements for 2007. Adoption of the standards did not cause any such impact on the accounting principles applied to the financial statements that would have called for retroactive changes to previous years' figures. The Group will adopt all the new and amended standards and interpretations that entered into force on 1 January 2008. The Group estimates that these new interpretations will not affect the consolidated financial statements. In producing this Financial Statements bulletin, Trainers' House has applied the same accounting principles for key figures as in its Financial Statements for 2007. The calculation of key figures is described on page 45 of the Financial Statements included in the Annual Report 2007. The whole-year figures given in this Financial Statements bulletin are audited. INCOME STATEMENT, IFRS (kEUR) Group Group Group Group 01/10- 01/10- 01/01- 01/01- 31/12/08 31/12/07 31/12/08 31/12/07 CONTINUING OPERATIONS Net sales 11,694 8,161 44,237 29,989 Other income from operations 4 50 214 61 Costs: Materials and services 1,435 957 5,434 3,437 Personnel-related expenses 5,317 4,814 22,042 18,663 Depreciation 858 186 4,061 713 Other operating expenses 2,331 1,530 8,617 5,116 Operating profit 1,757 724 4,298 2,119 Financial income and expenses -332 -268 -1,690 -259 Share from profit/loss of associated companies -103 -103 Profit/loss before tax 1,425 353 2,607 1,758 Tax -654*) 3,593*) -1,252*) 3,082*) Profit for the period Continuing operations 771 3,947 1,355 4,839 Discontinued operations 3,352 3,822 Profit/loss for the period 771 7,299 1,355 8,661 Attributable to equity holders of the parent company 771 7,299 1,355 8,661 Earnings per share as calculated from the profit attributable to shareholders of the parent company: Undiluted earnings/share (EUR), Continuing operations 0.01 0.10 0.02 0.12 Discontinued operations 0.08 0.09 Diluted earnings/share (EUR), Continuing operations 0.01 0.09 0.02 0.12 Discontinued operations 0.08 0.09 *) The tax included in the income statement is deferred. BALANCE SHEET, IFRS (kEUR) Group Group 31/12/08 31/12/07 ASSETS Non-current assets Property, plant and equipment 781 1,706 Goodwill 51,772 52,467 Other intangible assets 17,246 20,162 Other financial assets 3 230 Other receivables 26 24 Deferred tax receivables 7,120 9,149 Total non-current assets 76,947 83,738 Current assets Inventories 14 15 Accounts receivable and other receivables 10,708 11,690 Cash and cash equivalents 7,664 17,120 Total current assets 18,386 28,824 Total assets 95,333 112,562 SHAREHOLDERS' EQUITY AND LIABILITIES Equity attributable to equity holders of the parent company Share capital 881 867 Share issue 256 Premium fund 13,943 13,228 Hedging reserve -171 Distributable non-restricted equity fund 31,872 31,348 Translation differences -11 -2 Retained earnings 15,339 16,551 Total shareholders' equity 61,853 62,247 Long-term liabilities Deferred tax liabilities 4,328 5,739 Other long-term liabilities 16,639 34,012 Accounts payable and other liabilities 12,514 10,563 Total liabilities 33,481 50,314 Total shareholders' equity and liabilities 95,333 112,562 CASH FLOW STATEMENT, IFRS (kEUR) Group Group 01/01- 01/01- 31/12/08 31/12/07 Profit/loss for the period 1,355 8,661 Adjustments to profit for the period 6,616 -5,854 Change in working capital -2,366 -366 Financial items -1,457 -315 Cash flow from operations 4,147 2,127 Acquisition of subsidiaries -26,858 Divestment of subsidiaries 7,857 Investments in tangible and intangible assets -352 -751 Capital gains on tangible and intangible assets 134 Capital gains on other investments 1,199 -187 Change in the additional trade price -99 Cash flow from investments 882 -19,939 Share issue subject to charges 491 391 Dividend distribution -2,721 Increase/decrease in long-term loans -12,254 33,639 Increase/decrease in short-term loans 219 Increase/decrease in long-term receivables -2 136 Cash flow from financing -14,485 34,385 Change in cash and cash equivalents -9,456 16,573 Opening balance of cash and cash equivalents 17,120 547 Closing balance of cash and cash equivalents 7,664 17,120 CHANGE IN SHAREHOLDERS' EQUITY (kEUR) Equity attributable to equity holders of the parent company Dis- tribu- table Trans- Hed- non-re lation ging stric- dif- Share Share Premium re- ted fe- Retained capital issue fund serve equity rence earning Total Equity 01/01/2007 859 13,101 -1 7,704 21,663 Translation differences -1 -1 Stock options used 8 256 127 391 Share-based payments 185 185 Acquisition/merger of Trainers' House 31,348 31,348 Profit/loss for the period 8,661 8,661 Equity 31/12/2007 867 256 13,228 31,348 -2 16,551 62,247 Equity 01/01/2008 867 256 13,228 31,348 -2 16,551 62,247 Translation differences -8 -8 Cashflow hedging -171 -171 Stock options used 14 -256 715 473 Share-based payments 153 153 Taxes related to bookings to shareholders' equity 524 524 Profit/loss for the period 1,355 1,355 Dividend distribution -2,721 -2,721 Equity 31/12/2008 881 13,943 -171 31,872 -11 15,339 61,853 PERSONNEL Group Group 01/01- 01/01- 31/12/08 31/12/07 Average number of personnel 375 369 Personnel at the end of the period 340 400 COMMITMENTS AND CONTINGENT LIABILITIES Group Group 31/12/08 31/12/07 Collaterals and contingent liabilities given for own commitments 3,187 4,144 Interest rate swaps Fair value -255 Nominal value 17,393 OTHER KEY FIGURES Group Group 31/12/08 31/12/07 Equity-to-assets ratio (%) 65.1 56.0 Net gearing (%) 22.9 27.6 Shareholders' equity/share (EUR) 0.91 0.92 Return on equity (%) 2.2 11.5 Return on investment (%) 5.2 3.5 Helsinki, 13 Februay 2009 TRAINERS' HOUSE PLC BOARD OF DIRECTORS Further information: Jari Sarasvuo, CEO, tel. +358 (0)500 665 666 Mirkka Vikström, CFO, tel. +358 (0)50 376 1115 DISTRIBUTION OMX Nordic Exchange, Helsinki Prominent media sources www.trainershouse.fi - Investors
TRAINERS' HOUSE'S FINANCIAL STATEMENTS BULLETIN FOR 1 JANUARY - 31 DECEMBER 2008
| Source: Trainers' House Oyj