Basware fourth quarter and full year 2009
SUMMARY (last year's corresponding period in parentheses, unless otherwise
stated)
Financial year 2009
* Net sales EUR 92 654 thousand (EUR 86 098 thousand) - growth 7.6 percent
* Operating profit EUR 11 824 thousand (EUR 8 679 thousand) - growth 36.2
percent
* Operating profit 12.8 percent of net sales (10.1%)
* International operations accounted for 54.2 percent of net sales (51.8%) -
growth 12.6 percent
* Cash flows from operating activities were EUR 14 732 thousand (EUR 8 331
thousand)
* Earnings per share EUR 0.80 (0.56) - growth 41.3 percent
* Dividendproposal for 2009: EUR 0.36 per share (2008: EUR 0.23)
October-December Q4
* Net sales EUR 26 600 thousand (EUR 26 294 thousand) - growth 1.2 percent
* Operating profit EUR 4 058 thousand (EUR 4 122 thousand) - decrease 1.6
percent
* Operating profit 15.3 percent of net sales (15.7%)
* International operations accounted for 53.9 percent of net sales (51.4%) -
growth 6.0 percent
* Earnings per share EUR 0.35 (0.28) - growth 24.0 percent
Basware expects its net sales in 2010 to develop positively on the level of
2009. Operating profit (EBIT) for 2010 is expected to be from 10 to 15 percent
of net sales.
The Financial Statements have been prepared according to International Financial
Reporting Standards (IFRS).
GROUP KEY FIGURES
+--------------------------------+------+-------+-------+------+------+-------++
|EUR thousand |10-12/|10-12/ |Change,| 1-12/|1-12/ |Change,||
| | 2009| 2008| %| 2009| 2008| %||
+--------------------------------+------+-------+-------+------+------+-------++
+--------------------------------+------+-------+-------+------+------+-------++
|Net sales |26 600| 26 294| 1.2%|92 654|86 098| 7.6%||
+--------------------------------+------+-------+-------+------+------+-------++
|EBITDA | 5 337| 5 111| 4.4%|16 280|11 722| 38.9%||
+--------------------------------+------+-------+-------+------+------+-------++
|Operating profit before | | | | | | ||
+--------------------------------+------+-------+-------+------+------+-------++
|IFRS-3 amortization | 4 600| 4 583| 0.4%|13 788| 9 730| 41.7%||
+--------------------------------+------+-------+-------+------+------+-------++
|Operating profit | 4 058| 4 122| -1.6%|11 824| 8 679| 36.2%||
+--------------------------------+------+-------+-------+------+------+-------++
|% of net sales | 15.3%| 15.7%| | 12.8%| 10.1%| ||
+--------------------------------+------+-------+-------+------+------+-------++
|Profit before tax | 4 038| 3 862| 4.6%|11 590| 8 410| 37.8%||
+--------------------------------+------+-------+-------+------+------+-------++
|Profit for the period | 4 007| 3 294| 21.6%| 9 074| 6 585| 37.8%||
+--------------------------------+------+-------+-------+------+------+-------++
+--------------------------------+------+-------+-------+------+------+-------++
|Return on equity, % | 29.4%| 27.2%| | 17.2%| 13.7%| ||
+--------------------------------+------+-------+-------+------+------+-------++
|Return on investment, % | 25.3%| 31.0%| | 18.8%| 16.6%| ||
+--------------------------------+------+-------+-------+------+------+-------++
|Liquid assets* |12 210| 8 777| 39.1%|12 210| 8 777| 39.1%||
+--------------------------------+------+-------+-------+------+------+-------++
|Gearing, % | -5.3%| 9.3%| | -5.3%| 9.3%| ||
+--------------------------------+------+-------+-------+------+------+-------++
|Equity ratio, % | 64.8%| 59.5%| | 64.8%| 59.5%| ||
+--------------------------------+------+-------+-------+------+------+-------++
+--------------------------------+------+-------+-------+------+------+-------++
|Earnings per share, EUR | 0.35| 0.28| 24.0%| 0.80| 0.56| 41.3%||
+--------------------------------+------+-------+-------+------+------+-------++
|Earnings per share (diluted), | 0.35| 0.28| 24.0%| 0.80| 0.56| 41.3%||
|EUR | | | | | | ||
+--------------------------------+------+-------+-------+------+------+-------++
|Equity per share, EUR | 4.93| 4.23| 16.7%| 4.93| 4.23| 16.7%||
+--------------------------------+------+-------+-------+------+------+-------++
*) Includes cash, cash equivalents and financial assets at fair value through
profit or loss
Basware's business operations consist of Product Sales, Maintenance,
Professional Services and Automation Services. The core of Basware's product
sales consists of the Basware Enterprise Purchase to Pay product suite and the
Basware Financial Management (FIMA) suite. The Group's reported market areas are
Finland, Scandinavia, Europe and other areas.
Record-high results in challenging market situation
Basware's CEO Ilkka Sihvo: "Operating profit for the full year was record-high
and grew by 36.2 percent, which is an extraordinary performance in recession.
Our operating profit was 11.8 million euros and accounted for 12.8 percent of
our net sales. Net sales grew by 7.6 percent. Automation Services was most
successful and grew as much as 72.0 percent. Automation Services have improved
our competitiveness and we have made agreements with large international
companies on different continents. During 2009 the order backlog of Automation
Services has clearly grown.
The last quarter of the year succeeded according to the plan. Operating profit
remained at the level of the previous year and was over 15 percent of net sales.
During the last quarter Automation Services accelerated its growth to 162.3
percent being an excellent recession performance. We also succeeded in closing
large deals during the last quarter in North America."
REPORTING
As of January 1, 2009, the Group has applied the following new and revised
standards: IFRS 8 Operating Segments and IAS 1 Presentation of Financial
Statements. IFRS 8 has an effect on the segment information in the notes and IAS
1 has an effect on the presentation of the income statement.
Basware's reporting segment is based upon geography as follows: Finland,
Scandinavia, Europe and Other. Following the TAG Services acquisition on July
1, 2009, Basware has assets in Australia. Taking into account the nature and
extent of the business operations in North America and Australia, these areas
will be merged into the Other segment as of Q3/2009. The Finland segment
includes the Finnish, Russian, Asia-Pacific (excluding Australia) and Financial
Management business operations.
In addition, the company reports revenue from products and services as follows:
License Sales, Professional Services, Maintenance, and Automation Services.
Automation Services include SaaS revenue and Connectivity Services, which
include digitalization of paper invoices and exchange of e-invoices and purchase
transactions.
The company also reports the backlog of Automation Services agreements not
recognized as income. Automation Services agreements typically span several
years.
FOURTH QUARTER OCTOBER 1 - DECEMBER 31, 2009
NET SALES OCTOBER-DECEMBER 2009
The geographical division of net sales by the location of assets:
+----------------------+------+------+--------+------+------+--------++
|Net sales |10-12/| 10-12|Change, |1-12/ |1-12/ |Change, ||
|(EUR thousand) | 2009| 2008| %| 2009| 2008| %||
+----------------------+------+------+--------+------+------+--------++
|Finland |15 271|15 329| -0.4|50 486|49 517| 2.0||
+----------------------+------+------+--------+------+------+--------++
|Scandinavia | 6 135| 6 627| -7.4|22 236|18 805| 18.2||
+----------------------+------+------+--------+------+------+--------++
|Europe | 5 629| 5 264| 6.9|18 717|19 454| -3.8||
+----------------------+------+------+--------+------+------+--------++
|Other | 2 897| 1 311| 120.9| 9 201| 5 004| 83.9||
+----------------------+------+------+--------+------+------+--------++
|Sales between segments|-3 333|-2 238| -49.0|-7 985|-6 682| -19.7||
+----------------------+------+------+--------+------+------+--------++
|Group total |26 600|26 294| 1.2|92 654|86 098| 7.6||
+----------------------+------+------+--------+------+------+--------++
The geographical division of net sales by the location of customers:
+--------------+------+------+-------+------+------+--------++
|Net sales |10-12/|10-12/|Change,| 1-12/| 1-12/|Change, ||
|(EUR thousand)| 2009| 2008| %| 2009| 2008| %||
+--------------+------+------+-------+------+------+--------++
|Finland |12 267|12 769| -3.9|42 449|41 514| 2.3||
+--------------+------+------+-------+------+------+--------++
|Scandinavia | 6 003| 6 411| -6.4|21 719|18 309| 18.6||
+--------------+------+------+-------+------+------+--------++
|Europe | 5 071| 5 143| -1.4|18 065|19 191| -5.9||
+--------------+------+------+-------+------+------+--------++
|Other | 3 258| 1 971| 65.3 |10 421| 7 083| 47.1 ||
+--------------+------+------+-------+------+------+--------++
|Group total |26 600|26 294| 1.2|92 654|86 098| 7.6||
+--------------+------+------+-------+------+------+--------++
Basware Group's net sales increased by 1.2 percent in October-December and were
EUR 26 600 thousand (EUR 26 294 thousand).
In the fourth quarter, 29.3 percent (30.9%) of net sales consisted of own
product sales and the product sales declined by 4.1 percent. Maintenance revenue
accounted for 29.7 percent (26.6%) of net sales and grew by 13.3 percent.
Consulting and services revenue represented 31.5 percent (38.9%) of net sales
and decreased by 18.0 percent.
During the period, Automation Services (SaaS, e-invoicing, Scan and Capture)
grew by 162.3 percent and accounted for 9.5 percent (3.6%) of net sales.
Value added resellers provided a net share of 11.1 percent (14.9%) or EUR 869
thousand of product sales in October-December, corresponding to 6.1 percent
(8.9%) of international operations' total net sales.
The international share of Basware's net sales was 53.9 percent (51.4%) in
October-December. International operations grew by 6.0 percent.
FINANCIAL PERFORMANCE OCTOBER-DECEMBER 2009
Basware Group's operating profit decreased by 1.6 percent in October-December
and was EUR 4 058 thousand (EUR 4 122 thousand). Operating profit amounted to
15.3 percent of net sales.
The geographical division of operating profit by the location of assets:
+-------------------------------+------+-------+--------+------+-----+--------++
|Operating profit |10-12/|10-12/ | Change,|1-12/ |1-12/| Change,||
|(EUR thousand) | 2009| 2008| %| 2009| 2008| %||
+-------------------------------+------+-------+--------+------+-----+--------++
|Finland | 3 024| 4 385| -31.0| 7 714|7 898| -2.3||
+-------------------------------+------+-------+--------+------+-----+--------++
|Scandinavia | 1 041| -21|5 068.2 | 3 169|1 017| 211.4||
+-------------------------------+------+-------+--------+------+-----+--------++
|Europe | 902| -48|1 974.6 | 1 566| -74|2 224.8 ||
+-------------------------------+------+-------+--------+------+-----+--------++
|Other | -517| 118| -537.7| 741| 289| 155.9||
+-------------------------------+------+-------+--------+------+-----+--------++
|Operating profit between | -393| -312| -26.0|-1 365| -452| -201.8 ||
|segments | | | | | | ||
+-------------------------------+------+-------+--------+------+-----+--------++
|Group total | 4 058| 4 122| -1.6|11 824|8 679| 36.2||
+-------------------------------+------+-------+--------+------+-----+--------++
The company's fixed costs were EUR 19 660 thousand (EUR 19 911 thousand) in the
quarter, and have decreased 1.3 percent on the corresponding period the previous
year. Personnel costs made up 75.5 percent (75.8%) or EUR 14 841 thousand (EUR
15 093 thousand) of the fixed costs.
Research and development expenses totaled EUR 3 847 thousand (EUR 4 385
thousand), of which EUR 360 thousand (EUR 846 thousand) or 9.4 percent (19.3%)
were capitalized during the period. Amortization of capitalized research and
development costs totaled EUR 429 thousand (EUR 312 thousand).
Profit before tax for the period was EUR 4 038 thousand (EUR 3 862 thousand) and
profit for the period was EUR 4 007 thousand (EUR 3 294 thousand). Undiluted
earnings per share were EUR 0.35 (EUR 0.28).
BUSINESS OPERATIONS OCTOBER-DECEMBER 2009
Finland
The Finland segment includes the business operations in Finland, Russia,
Asia-Pacific (excluding Australia) and the head office functions. Net sales for
the fourth quarter decreased by 0.4 percent to EUR 15 271 thousand (EUR 15 329
thousand).
Net sales of the Finnish and Russian business operations increased by 1.3
percent during the fourth quarter. All the Basware Enterprise Purchase to Pay
and Financial Management products are sold in the region.
There are currently 14 resellers in all in the area and the number of personnel
averaged 460 (426) during the fourth quarter.
Scandinavia
Basware's Nordic organization consists of a centrally directed Scandinavian
(Sweden, Denmark and Norway) unit. All the Basware Enterprise Purchase to Pay
solutions are sold in Scandinavia.
Net sales of the area decreased by 7.4 percent in the fourth quarter to EUR
6 135 thousand (EUR 6 627 thousand). The profitability of operations increased
by 5 068.2 percent and operating profit was EUR 1 041 thousand (EUR -21
thousand).
Business operations are mainly handled by the own organization and there were
130 (146) employees on average in the area.
Europe
Basware's European business operations consist of the units in Germany, France,
the Netherlands and the United Kingdom. Additionally, the reseller network
covers the eastern part of Central Europe. All Enterprise Purchase to Pay
solutions are sold in Europe.
Net sales of the Europe segment increased by 6.9 percent in the fourth quarter
and totaled EUR 5 629 thousand (EUR 5 264 thousand). The profitability of the
operations improved by 1 974.6 percent and operating profit was EUR 902 thousand
(EUR -48 thousand).
During 2009 Basware UK implemented a rationalization program and reorganization
of operations, facilitating profitable growth in the unit. Significant cost
savings have been achieved and the utilization rate of consulting has been
increased with the program, which will improve the unit's profitability.
There are 35 resellers in Europe, and Basware personnel averaged 119 (127)
during the fourth quarter.
Other
Business operations in North America and Australia are reported in this segment.
Net sales of the area increased by 120.9 percent in the fourth quarter to EUR
2 897 thousand (EUR 1 311 thousand). The profitability of the operations
decreased by 537.7 percent and operating profit was EUR -517 thousand (EUR 118
thousand). The business operations in Australia are reported in the Other
segment as of July 1, 2009. Cumulative adjustments related to the transfer
pricing principle followed by the Group companies have been recorded in the
review period.
Basware's North American unit sells the Enterprise Purchase to Pay solutions in
the United States and Canada.
At the end of the period, there were 10 resellers in this segment. The number of
personnel averaged 48 (29) during the fourth quarter.
FINANCIAL PERIOD JANUARY 1 - DECEMBER 31, 2009
NET SALES
Basware Group's net sales increased by 7.6 percent during the period
(January-December) and were EUR 92 654 thousand (EUR 86 098 thousand). Pro forma
net sales for the financial period would have been EUR 93 217 thousand had the
TAG Services Pty Ltd net sales been consolidated for the entire period.
The company's product sales decreased by 8.1 percent during the period to 25.6
percent (30.0%) of net sales.
Maintenance revenue increased by 18.7 percent in the reporting period and
accounted for 32.1 percent (29.1%) of net sales. Professional Services revenue
increased by 2.1 percent and accounted for 33.6 percent (35.5%) of net sales.
During the period, Automation Services (SaaS, e-invoicing, Scan and Capture)
grew by 72.0 percent and accounted for 8.7 percent (5.4%) of net sales. The
backlog of the Automation Services business not recognized as income was EUR
14 630 thousand (EUR 10 519 thousand) at the end of the period.
Value added resellers provided a net share of 9.9 percent (15.7%) or EUR 2 343
thousand of Product Sales' net sales during the reporting period, accounting for
4.7 percent (9.1%) of the net sales from international operations.
The international share of Basware's net sales was 54.2 percent (51.8%) in the
reporting period. International operations grew by 12.6 percent.
The geographical division of net sales by the location of assets:
+----------------------+------+------+--------+------+------+--------++
|Net sales |10-12/|10-12/|Change, | 1-12/|1-12/ |Change, ||
|(EUR thousand) | 2009| 2008| %| 2009| 2008| %||
+----------------------+------+------+--------+------+------+--------++
|Finland |15 271|15 329| -0.4|50 486|49 517| 2.0||
+----------------------+------+------+--------+------+------+--------++
|Scandinavia | 6 135| 6 627| -7.4|22 236|18 805| 18.2||
+----------------------+------+------+--------+------+------+--------++
|Europe | 5 629| 5 264| 6.9|18 717|19 454| -3.8||
+----------------------+------+------+--------+------+------+--------++
|Other | 2 897| 1 311| 120.9| 9 201| 5 004| 83.9||
+----------------------+------+------+--------+------+------+--------++
|Sales between segments|-3 333|-2 238| -49.0|-7 985|-6 682| -19.7||
+----------------------+------+------+--------+------+------+--------++
|Group total |26 600|26 294| 1.2|92 654|86 098| 7.6||
+----------------------+------+------+--------+------+------+--------++
The geographical division of net sales by the location of customers:
+--------------+------+------+-------+------+------+-------++
|Net sales |10-12/|10-12/|Change,| 1-12/| 1-12/|Change,||
|(EUR thousand)| 2009| 2008| %| 2009| 2008| %||
+--------------+------+------+-------+------+------+-------++
|Finland |12 267|12 769| -3.9|42 449|41 514| 2.3||
+--------------+------+------+-------+------+------+-------++
|Scandinavia | 6 003| 6 411| -6.4|21 719|18 309| 18.6||
+--------------+------+------+-------+------+------+-------++
|Europe | 5 071| 5 143| -1.4|18 065|19 191| -5.9||
+--------------+------+------+-------+------+------+-------++
|Other | 3 258| 1 971| 65.3 |10 421| 7 083| 47.1 ||
+--------------+------+------+-------+------+------+-------++
|Group total |26 600|26 294| 1.2|92 654|86 098| 7.6||
+--------------+------+------+-------+------+------+-------++
FINANCIAL PERFORMANCE
Basware's operating profit for the period increased by 36.2 percent to 11 824
EUR thousand (EUR 8 679 thousand). Operating profit represented 12.8 percent
(10.1%) of net sales. Pro forma operating profit for the financial period would
have been EUR 11 806 thousand had the TAG Services Pty Ltd operating profit
sales been consolidated for the entire period.
The geographical division of operating profit by the location of assets:
+-------------------------------+------+------+--------+------+------+--------++
|Operating profit |10-12/|10-12/| Change,| 1-12/|1-12/ | Change,||
|(EUR thousand) | 2009| 2008| %| 2009| 2008| %||
+-------------------------------+------+------+--------+------+------+--------++
|Finland | 3 024| 4 385| -31.0| 7 714| 7 898| -2.3||
+-------------------------------+------+------+--------+------+------+--------++
|Scandinavia | 1 041| -21|5 068.2 | 3 169| 1 017| 211.4||
+-------------------------------+------+------+--------+------+------+--------++
|Europe | 902| -48|1 974.6 | 1 566| -74|2 224.8 ||
+-------------------------------+------+------+--------+------+------+--------++
|Other | -517| 118| -537.7| 741| 289| 155.9||
+-------------------------------+------+------+--------+------+------+--------++
|Operating profit between | -393| -312| -26.0|-1 365| -452| -201.8 ||
|segments | | | | | | ||
+-------------------------------+------+------+--------+------+------+--------++
|Group total | 4 058| 4 122| -1.6|11 824| 8 679| 36.2||
+-------------------------------+------+------+--------+------+------+--------++
The company's fixed costs were EUR 70 343 thousand (EUR 69 900 thousand) in the
period, up 0.6 percent on the corresponding period the previous year. Personnel
costs made up 74.3 percent (72.1%) or EUR 52 294 thousand (EUR 50 399 thousand)
of the fixed costs. Bad debt and movement in bad debt accruals are included in
fixed costs. Bad debt reservations at the end of the fourth quarter amounted to
EUR 666 thousand (EUR 845 thousand).
Research and development expenses totaled EUR 14 781 thousand (EUR 15 518
thousand), of which EUR 1 454 thousand (EUR 2 739 thousand) or 9.8 percent
(17.6%) were capitalized during the period. Amortization of capitalized research
and development costs totaled EUR 1 624 thousand (EUR 1 183 thousand). Research
and development costs equaled 16.0 percent (18.0%) of net sales. The costs
decreased by 4.7 percent (17.8%) during the financial year.
The company's finance income and finance expenses were EUR -234 thousand (EUR
-269 thousand). The company's profit before tax was EUR 11 590 thousand (EUR
8 410 thousand). Taxes for the period totaled EUR 2 517 thousand (EUR 1 825
thousand). Profit for the period was 9.8 percent (7.6%) of net sales, or EUR
9 074 thousand (EUR 6 585 thousand). Undiluted earnings per share were EUR 0.80
(EUR 0.56).
FINANCE AND INVESTMENTS
Basware Group's total assets on the balance sheet at the end of the financial
period were EUR 87 287 thousand (EUR 81 909 thousand). The company's cash and
liquid assets were EUR 12 210 thousand (EUR 8 777 thousand), of which cash and
cash equivalents were EUR 12 176 thousand (EUR 8 745 thousand) and financial
assets at fair value through profit or loss were EUR 34 thousand (EUR 31
thousand).
Cash flow from operating activities was EUR 14 732 thousand (EUR 8 331
thousand). Cash flow from investments was EUR -5 009 thousand (EUR -12 303
thousand).
Equity ratio was 64.8 percent (59.5%) and gearing was -5.3 percent (9.3%). The
company's interest-bearing liabilities totaled EUR 9 230 thousand (EUR 13 283
thousand), of which current liabilities accounted for EUR 5 555 thousand (EUR
5 555 thousand). Return on investment was 18.8 percent (16.6%) and return on
equity 17.2 percent (13.7%).
Basware AS purchased the Norwegian invoice automation solution business of
Itella Information AS on January 26, 2009. The purchase price was NOK 6.38
million (approximately EUR 0.72 million) and it was paid in cash on the day the
acquisition was completed, April 1, 2009. In addition, Basware may pay an
additional purchase price of a maximum of NOK 7.0 million (EUR 0.77 million) in
February 2010 at the latest, determined on the basis of the volume of the
purchased operations' service sales in 2009. The estimated additional purchase
is circa NOK 4.4 million (around EUR 0.55 million). EUR 761 thousand associated
with customer relationships has been allocated to intangible assets, taking
deferred tax liabilities into consideration. The purchase price includes EUR
436 thousand of goodwill. The allocation of the acquisition purchase price is
preliminary.
Basware Corporation acquired the entire share capital of TAG Services Pty Ltd in
Australia on July 1, 2009. The acquisition price was 2.1 million Australian
dollars (approximately EUR 1.2 million) and was paid in cash in two parts in
July and August 2009. In addition the deal includes an additional acquisition
price element that is based on the company's net sales of the period from July
1, 2009 to June 30, 2010 and will be paid in August 2010 at the latest. 4.2
million Australian dollars (approximately EUR 2.4 million) associated with
customer relationships has been allocated to intangible assets, taking deferred
tax liabilities into consideration. The allocation of the acquisition purchase
price is preliminary.
The company's capital expenditure, resulting from regular additional and
replacement investments required for growth, was EUR 2 047 thousand (EUR 1 007
thousand) in the period. Gross investments which include, in addition to those
mentioned above, the capitalized research and development costs and acquisitions
(TAG Services Pty Ltd and Itella Information AS's invoice automation solution
business) totaled EUR 7 448 thousand (EUR 12 476 thousand).
Impairment tests indicate no impairments of assets. Amortization of intangible
assets totaled EUR 3 968 thousand (EUR 2 398 thousand), of which amortization
associated with business acquisitions amounted to EUR 2 020 thousand (EUR 993
thousand).
RESEARCH, DEVELOPMENT AND NEW PRODUCTS
Research and development expenses were EUR 14 781 thousand (EUR 15 518 thousand)
in the period, corresponding to 16.0 percent (18.0%) of net sales. Research and
development costs decreased by 4.7 percent (increase by 17.8%) compared with the
same period last year. Of the research and development costs, EUR 1 454 thousand
(EUR 2 739 thousand) or 9.8 percent (17.6%) were capitalized during the period.
Amortization of capitalized research and development costs totaled EUR 1 624
thousand
(EUR 1 183 thousand).
A total of 195 (171) people worked in Software Production at the end of 2009.
The Software Production unit is expanding in India, where there are currently
55 employees.
At the beginning of 2009, Basware launched the Basware Connectivity solution,
which aims at speeding up the migration to electronic exchange of documents.
There has been obvious demand for the solution in the market, and it has been
sold successfully in Europe as well as North America. Basware is now able to
exchange all the documentation related to the Purchase to Pay process in a
single solution, including the exchange of e-invoices and procurement messages,
e-invoice and scanning services and supplier activation.
PERSONNEL
Basware employed 747 (689) people on average and 761 (731) people at the end of
the period. The number of personnel increased by 30 persons and by 4.1 percent
compared with the same period the previous year. The acquisition of TAG Services
Pty Ltd increased the number of personnel by 13 people and the acquisition of
Itella Information AS's invoice automation business by 5 people.
The share of personnel working in foreign units has increased compared with the
previous year. At the end of the period, 47.4 percent (46.1%) of Basware
personnel worked outside of Finland and 52.6 percent (53.9%) in Finland. 16.8
percent of the personnel work in sales and marketing, 48.0 in consulting and
services, 25.6 percent in Software Production, and 9.6 percent in
administration.
The average age of employees is 36.6 (35.9) years. Of the employees, 35.0
percent have a Master's degree and 43.2 percent have a Bachelor's degree. Women
account for 28.1 percent of employees, men for 71.9 percent.
For incentive purposes, the company has a bonus program that covers all
employees.
The Executive Team's remuneration consists of salary in money, fringe benefits,
a possible annual bonus based on performance, warrants and a share-based
incentive scheme. The compensation principles of the Executive Team members are
decided by the Board. A long-term incentive program was in place during
2006-2008. Based on the program, warrants could be granted to the members of the
top management, country managers and key personnel.
The members of the Basware Executive Team have a share-based incentive scheme as
of 2009. The possible reward of the system for the earning period 2009 is based
on Basware Corporation's earnings per share (EPS). Any reward for the earning
period 2009 will be paid in December 2011 partially as shares in the company and
partially in cash.
Geographical distribution of personnel:
+--------------------------------+------+------+--------+-----+------+-------++
|Personnel (employed, on average)|10-12/|10-12/|Change, |1-12/|1-12/ |Change,||
| | 2009| 2008| %| 2009| 2008| %||
+--------------------------------+------+------+--------+-----+------+-------++
|Finland | 460| 426| 8.0| 454| 421| 7.8||
+--------------------------------+------+------+--------+-----+------+-------++
|Scandinavia | 130| 146| -11.4| 135| 112| 20.0||
+--------------------------------+------+------+--------+-----+------+-------++
|Europe | 119| 127| -6.3| 119| 129| -7.3||
+--------------------------------+------+------+--------+-----+------+-------++
|Other | 48| 29| 68.6| 39| 26| 47.0||
+--------------------------------+------+------+--------+-----+------+-------++
|Group total | 758| 729| 4.0| 747| 689| 8.5||
+--------------------------------+------+------+--------+-----+------+-------++
BUSINESS OPERATIONS
Finland
The Finland segment includes operations in Finland, Russia, Asia (excluding
Australia) and the Financial Management business. Net sales for the financial
period increased by 2.0 percent to EUR 50 486 thousand (EUR 49 517 thousand).
Net sales of the Finnish and Russian business operations increased by 9.0
percent during the financial period to EUR 43 250 thousand (EUR 39 671
thousand). All the Basware Enterprise Purchase to Pay and Financial Management
products are sold in the region.
There are currently 14 resellers in all in the area and the number of personnel
averaged 454 (421).
Scandinavia
Basware's Nordic organization consists of a centrally directed Scandinavian
(Sweden, Denmark and Norway) unit. All the Basware Enterprise Purchase to Pay
solutions are sold in the Nordic countries.
Net sales of the Scandinavian business operations increased by 18.2 percent to
EUR 22 236 thousand (EUR 18 805 thousand). The profitability of the operations
increased by 211.4 percent and operating profit was EUR 3 169 thousand (EUR
1 017 thousand).
Business operations are mainly handled by the own organization and there were
135 (112) employees on average in the area.
Europe
Basware's European business operations consist of the units in Germany, France,
the Netherlands and the United Kingdom. Additionally, the reseller network
covers the eastern part of Central Europe. All Enterprise Purchase to Pay
solutions are sold in Europe.
Net sales in the Europe segment decreased by 3.8 percent in the financial period
and totaled EUR 18 717 thousand (EUR 19 454 thousand). The profitability of the
operations improved by 2 224.8 percent and operating profit was EUR 1 566
thousand (EUR -74 thousand).
During 2009 Basware UK implemented a rationalization program and reorganization
of operations. Significant cost savings have been achieved and the utilization
rate of consulting has been increased with the program, which will improve the
unit's profitability.
There are 35 resellers in Europe, and Basware personnel averaged 119 (129)
during the third quarter.
Other
Business operations in North America and Australia are reported in this segment.
Net sales of the area increased by 83.9 percent in the financial period to EUR
9 201 thousand (EUR 5 004 thousand). The profitability of the operations grew by
155.9 percent and operating profit was EUR 741 thousand (EUR 289 thousand). The
business operations in Australia are reported in the Other segment as of July
1, 2009.
At the end of the period, there were 10 resellers in the segment. On average,
there were 39 (29) employees in the area.
OTHER EVENTS OF THE FINANCIAL PERIOD
Basware launched an entirely new successful business concept during 2009:
Basware Automation Services, which is based on making the processing of the
customer organization's paper invoices completely electronic. Basware Automation
Services include Software as a Service (SaaS), e-invoicing and Scan and Capture.
The company has closed several major automation service deals with multinational
companies.
The company made one of its largest deals ever with the State of South Australia
in September 2009.
Jorma Kemppainen was appointed as a member of the Basware Executive Team and
head of the Products unit (SVP, Products) on December 1, 2009.
SHARE AND SHAREHOLDERS
Basware Corporation's share capital totaled EUR 3 440 437.20 at the end of the
period and the number of shares was 11 468 124.
Share price and trade
During the reporting period, the highest price of the share was EUR 14.66 (EUR
10.45), the lowest was EUR 6.60 (EUR 6.00) and the closing price was EUR 14.52
(EUR 6.59). The average price of the share was EUR 10.79 (EUR 7.53) during the
period.
A total of 2 038 565 (2 298 467) shares were traded during the financial period
which is the equivalent of 17.9 percent (20.1%) of the average number of shares.
Market capitalization with the period's closing price on December 31, 2009 was
EUR 165 206 004 (EUR 75 301 011).
Shareholders
Basware had 16 480 (17 120) shareholders on December 31 including
nominee-registered holdings (8). Nominee-registered holdings accounted for 9.6
percent of the total number of shares.
Basware announced three notifications of change in ownership when the total
number of shares held by Nordea Rahastoyhtiö Suomi Oy fell below 5% of Basware
Corporation's share capital on February 23, 2009 and when the total number of
shares held by Antti Pöllänen personally fell below 5% of Basware Corporation's
share capital on September 10, 2009. Shares held by Antti Pöllänen together with
persons under guardianship still exceed 5% of Basware Corporation's share
capital. In addition, Basware announced a notice of change in ownership when the
total number of shares held by Nordea Rahastoyhtiö Suomi Oy was above 5% of
Basware Corporation's share capital on November 27, 2009.
Shareholding of Management and Board
According to the shareholder register managed by Euroclear Finland Oy, on
December 31, 2009 CEO Ilkka Sihvo holds 1 065 800 Basware's shares and Esa
Tihilä 500 shares. Other members of Basware Executive Team do not hold Basware's
shares.
According to the shareholder register managed by Euroclear Finland Oy, on
December 31, 2009 Hannu Vaajoensuu holds 962 100 Basware's shares, Pentti
Heikkinen 1 016, Ilkka Toivola 2 166, Sakari Perttunen 1 045 800 and Matti
Copeland 2 166 shares.
GOVERNANCE
The Annual General Meeting of Shareholders on February 12, 2009, confirmed the
number of Board members as five. The Annual General Meeting resolved to agree on
the proposal and elected Matti Copeland, Pentti Heikkinen, Sakari Perttunen,
Ilkka Toivola and Hannu Vaajoensuu members of the Board of Directors.
The Annual General Meeting further resolved to elect Ernst & Young Oy,
Authorized Public Accountants as the auditor, with APA Heikki Ilkka in charge
and APA Terhi Mäkinen as the deputy auditor.
A separate stock exchange release has been issued on the Board authorizations
and other resolutions of the Annual General Meeting of Shareholders on February
12, 2009.
This Corporate Governance Statement has been composed in accordance with
Recommendation 51 of the new Corporate Governance Code and Chapter 2, Section 6
of the Finnish Securities Market Act. The Corporate Governance Statement is
issued separately from the company's annual report.
Basware's Corporate Governance principles are available in full on the company's
website at
http://www.basware.com/Investors/corporate_governance/Pages/default.aspx
Share repurchase
Basware Corporation's share repurchases program that was resolved by the Board
of Directors on October 14, 2008 ended on March 31, 2009. The program was based
on the authorization granted by the Annual General Meeting on February
14, 2008. The purchases started on October 23, 2008 and ended according to the
terms of the share repurchase program on March 31, 2009. By March 31, 2009, the
company had acquired 90 300 shares and the total number of shares held by the
company amounted to 90 300, representing approximately 0.79 % of all Basware
shares. The average price of the shares acquired during the repurchases program
was 6.9475 euro.
The AGM on February 12, 2009 authorized the Board to resolve on the acquisition
of a maximum of 1 146 812 own shares, pursuant to the Chapter 15, section 5 of
the Companies Act. The new shares are acquired with invested non-restricted
equity on the market price at the NASDAQ OMX Helsinki Ltd at the time of the
acquisition. The shares can either be held by the Company, nullified or conveyed
further. The authorization for acquisition is valid until March 31, 2010.
SHORT-TERM RISKS AND RISK MANAGEMENT
In accordance with Basware's risk management policy, risks are divided into six
categories: risks related to business operations, products, personnel as well as
legal, financial and data security risks. Basware takes risks that are a natural
part of its strategy and objectives. These risks are managed and decreased in
various ways. Short-term risks are considered to be risks in the current
reporting year.
The global economic uncertainty continues, which might decrease companies'
willingness in the future as well. This might have an unfavorable impact on the
development of the company's net sales and profitability. However, the entire IT
market is expected to grow by 6.6 percent in the United States and by 4.0
percent in Western and Central Europe in 2010.
In previous economic downturns, the demand for the company's products and
services has remained more positive than the general economic market as a whole
as the company's software solutions generate cost savings.
The depression has generally increased companies' delinquency entries and the
number of bankruptcies. Typically, companies may also prolong the times of
payments in order to free up working capital. Basware has intensified its
management of sales receivables, and business management regularly monitors the
payment of sales receivables as part of the management of customer accounts.
The Group's main currency is Euro, accounting for approximately 61 percent of
net sales in 2009 (approximately 67% in 2008). The significance of exchange rate
fluctuations between the euro and other currencies will increase hand in hand
with the share of international operations. In addition to the euro area,
Basware operates in various areas, the most significant of them in 2009 being
Norway, the United Kingdom, the United States and Sweden. The company is exposed
to exchange rate risks in these countries through intra-company trade, exports
and imports as well as through the equity and funding of foreign subsidiaries.
The company did not realize hedging for exchange rate fluctuations during the
financial year as the foreign-currency-denominated cash flow in the subsidiaries
did not exceed the foreign-currency-specific limit for hedging measures in
accordance with the company's hedging policy.
Goodwill has been tested during the last quarter of 2009. In accordance with the
testing for impairment of assets, no depreciation of goodwill was made. During
2009 Basware UK implemented a rationalization program and reorganization of
operations, facilitating profitable growth in the unit. Significant cost savings
have been achieved and the utilization rate of consulting has been increased
with the program, which will improve the unit's profitability. If the unit's
profitability does not improve as planned in the medium term despite the
streamlining program, it is likely that the goodwill allocated to the unit will
need to be impaired.
Basware's objective is to become the world's leading company in e-invoicing.
E-invoicing and the supporting Connectivity also target suppliers and buyers
outside Basware's existing customer base, which increases the customer
potential. The company's long-term objective is annual growth of more than 50
percent in SaaS, Basware Connectivity and e-invoicing business. SaaS, Basware
Connectivity and e-invoicing are scalable business models with a high business
potential. The realization of this growth potential requires a new operating
model as well as active and continuous development of competencies because of
the strong growth of the number of customers and transaction volumes. These
include sales and commissioning as well as customer support and product
development.
In other respects, no significant changes have taken place in Basware's
short-term risks and uncertainties during the financial period.
ACQUISITIONS AND CHANGES IN GROUP STRUCTURE
The company has branch offices in Singapore, Russia and India.
Basware AS purchased the Norwegian invoice automation solution business of
Itella Information AS on January 26, 2009. The purchase price was NOK 6.38
million (approximately EUR 0.72 million) and it was paid in cash on the day the
acquisition was completed, April 1, 2009. In addition, Basware may pay an
additional purchase price of a maximum of NOK 7.0 million (EUR 0.77 million) in
February 2010 at the latest, determined on the basis of the volume of the
purchased operations' service sales in 2009. The estimated additional purchase
is circa NOK 4.4 million (around EUR 0.55 million). The acquisition increased
the net sales of Basware Automation Services for 2009 by approximately EUR 0.9
million instead of the previously estimated EUR 1.2 million due to the
lower-than-expected volume of service sales.
Basware Corporation acquired the entire share capital of its Australian reseller
TAG Services Pty Ltd. The acquisition price was based on the company's net sales
for its fiscal year 2008-2009 ended June 30, 2009 and the company's net asset
value on June 30, 2009. The acquisition price was 2.1 million Australian dollars
(approximately EUR 1.2 million, using exchange rate of EUR/AUD 1.7359 on June
30, 2009). The company's net asset value at June 30 was 0.42 million Australian
dollars (approximately EUR 0.24 million). The acquisition price was paid in cash
in two parts in July and August 2009. In addition the deal includes an
additional acquisition price element that is based on the growth of the
company's net sales during the period from July 1, 2009 to June 30, 2010 and
will be paid in August 2010 at the latest.
Basware increased its shareholding in Basware Einvoices Oy to 100 percent on
January 30, 2009, by acquiring 12.55% of the company's shares and control from
the company's management. The purchase price paid on the date of the transaction
was approximately EUR 720 thousand and the additional purchase price to be paid
based on the business volume for 2009 in February 2010 at the latest is expected
to be approximately EUR 250 thousand. Basware increased its shareholding in
Basware FIMA Oy to 100 percent on August 21, 2009, by acquiring 4.04% of the
company's shares and control from the company's management. A situation such as
the one presented above is currently not regulated by IFRS, so the company's
management has compiled an accounting principle for the case in compliance with
IAS 8. The change of ownership is recognized under shareholders' equity, and it
will not have any effect on profit or goodwill.
Basware Einvoices Oy merged with Basware Corporation in accordance with the
previously registered merger plan on July 13, 2009. Basware Einvoices Oy's
business operations will continue in Basware Corporation as a part of Basware's
Automation Services business. The merger did not result in any changes to
Basware Corporation's organization structure.
In Norway, Contempus AS merged into Basware AS on June 30, 2009, in accordance
with the previously registered merger plan. The business operations of Contempus
AS will resume in Basware AS as a part of its normal business. The merger did
not result in changes to the organization structure of Basware AS.
In Sweden, Contempus AB merged into Basware AB on December 30, 2009, in
accordance with the previously registered merger plan. The business operations
of Contempus AB will resume in Basware AB as a part of its normal business. The
merger did not result in changes to the organization structure of Basware AB.
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY
Basware's corporate responsibility is driven by strong business ethics,
corporate values, and legislation. The company is committed to economic, social
and environmental responsibility in all operations.
Basware's software products reduce paper consumption in thousands of offices
around the world, leading the customer companies toward the paperless office,
which saves both the environment and money. Profitability and financial
stability are an integral part of Basware's responsibility. Stability and
trustworthiness yield added value to all stakeholders.
Basware has cooperated with the Plan Finland charity foundation since 2002, and
the company has 15 sponsored children around the world.
Basware's head office in Espoo has held a Green Office certificate issued by the
World Wildlife Fund since 2003. The prerequisites for being issued the
certificate include a standing environmental program, waste sorting and
recycling, reduction of carbon dioxide emissions and endeavors to constantly
improve environmental issues.
STRATEGY
Basware has updated its strategy for 2010-2012. The Basware Responsive Strategy
framework allows the company to act with agility and sensitivity based on the
company's situation, market trends and other changes. The Responsive Strategy
framework includes follow-up and analysis of internal and external trends as
well as the company's vision, mission and operating principles. Basware's
operating principles comprise of the company's values, corporate governance and
responsibility.
The implementation of Basware's strategy was guided by separately named strategy
projects (Must-Win Battles). In line with the revised strategy, the previous
strategy projects will be replaced with growth projects, strategy projects and
other changing corporate-level projects. The Responsive Strategy framework also
includes follow-up and analysis of internal and external trends as well as the
company's vision, mission and operating principles. The operating principles are
comprised of the company values, Corporate Governance and responsibility.
The company aims at maintaining its position as a leading global supplier of
invoice automation and procurement solutions. Invoice automation growth is
strongly supported by a new mid-market SaaS (Software as a Service) "pay as you
go" offering to selected high potential markets.
Basware aims also to become a leading company in e-invoicing worldwide.
E-invoicing and supporting Connectivity Services are now targeted to connect
suppliers and buyers also outside of Basware's existing software customer base
leading into a higher potential.
The company's long-term target is to grow annually more than 50% in SaaS,
Connectivity Services and e-invoicing. SaaS, Connectivity Services and
e-invoicing are scalable models and offer an increasing profit potential in the
long run. The company's long-term target is to grow annually more than 10% in
License Sales, Maintenance and Professional Services. The target for operating
profit margin is between 10% - 20%.
MANAGEMENT AND AUDITORS
In 2009, Ilkka Sihvo acted as the CEO of the company. The CEO is in charge of
the day-to-day management of the company in accordance with the instructions and
orders given by the Board. The Annual General Meeting of Shareholders on
February 12, 2009, confirmed the number of Board members as five. Matti
Copeland, Pentti Heikkinen, Sakari Perttunen, Ilkka Toivola and Hannu Vaajoensuu
were elected to the Board. In its first meeting, the Board elected Hannu
Vaajoensuu as Chairman of the Board and Sakari Perttunen as Vice Chairman.
As of 2009 the duties of Hannu Vaajoensuu , the Chairman of the Board, were
redefined. In addition to the chairman's standard duties, Hannu Vaajoensuu will
continue as a member of the M&A Team and have an advisory role in major M&A
projects. He will also carry out networking and industry influencer activities.
The Annual General Meeting further resolved to elect Ernst & Young Oy,
Authorized Public Accountants as the auditor, with APA Heikki Ilkka in charge
and APA Terhi Mäkinen as the deputy auditor.
EVENTS AFTER THE FINANCIAL PERIOD
As of January 1, 2010, members of the Basware Executive Team are Ilkka Sihvo,
CEO; Mika Harjuaho, CFO; Olli Hyppänen, Strategy and Development; Jorma
Kemppainen, Senior Vice President, Products; Steve Muddiman, Senior Vice
President, Global Marketing; Matti Rusi, Senior Vice President, Europe; Ari
Salonen, General Manager, North America; Esa Tihilä, Senior Vice President,
Global Operations; Odd Roar Trapnes, Senior Vice President Scandinavia; and
Jukka Virkkunen, Senior Vice President NorthEast.
Matti Rusi, Senior Vice President, Europe was employed by Basware as of January
4, 2010.
Basware will centralize its product development units and therefore the
activities of the small Norwegian unit will be moved to the Finnish and Indian
locations during the first half of the year 2010.
The chairman of the Board of Directors, Hannu Vaajoensuu, has been employed by
the company since 1985. In addition to the standard duties of the chairman of
the Board, he has most recently worked as a member of the M&A Team and had an
advisory role in M&A projects. The company and Vaajoensuu have agreed on January
25, 2010 that his employment will be terminated on February 17, 2010. In
connection with the termination of employment, only ordinary and statutory
employment-related compensation will be paid.
FUTURE OUTLOOK
Market forecasts updated towards the end of 2009 expect the software market to
increase by 9.2 percent in 2010 in the United States and by 5.5 percent in
Western and Central Europe.
The entire IT market is expected to grow by 6.6 percent in the United States and
by 4.0 percent in Western and Central Europe in 2010.
Western Europe and the United States combined account for approximately three
quarters of the enterprise software market. In these markets, electronic invoice
processing and procurement solutions are still in their infancy. The procurement
management and electronic invoice processing markets are heterogeneous in terms
of the competitive situation. Growth could attract more competitors to the
market. The industry is consolidating, and this development could go on in the
future as well. Globally speaking, Basware is a medium-sized software company in
terms of net sales as well as number of personnel.
Basware's direct competitors are mainly locally operating and often smaller
companies. In North America in particular, the company has also larger
competitors, especially in the field of procurement management. Developers of
document management, scanning and recycling systems compete with Basware,
particularly with regard to purchase invoice management solutions. Competing
solutions also include customized solutions integrated into ERP (Enterprise
Resource Planning) systems.
The software products still offer a competitive edge, thanks to the integrated
offering consisting of new added value products and the products. Automation
services, a new concept in the portfolio, will have a positive impact on the
competitiveness.
EPP Automation Services will bring more predictability and transparency over
Basware's revenue stream and profitability development. In 2009, revenue from
continuous services (including maintenance) accounted for approximately 40
percent of the total revenue. Basware predicts that EPP Automation Services
revenue will increase significantly in the strategy period.
The company's long-term target is to grow annually more than 50% in SaaS,
Connectivity Services and e-invoicing. SaaS and e-invoicing are scalable models
and offer an increasing profit potential in the long run. A program to invest
in the growth of Basware Automation Services (SaaS, e-invoicing service and Scan
and Capture) has been initiated as of the beginning of 2010, which is expected
to promote the favorable development of operations and order backlog.
The company's international growth is based on efforts of its own sales and
marketing activity as well as the reseller channel. Development of the indirect
distribution channel continues in Europe, Russia and Asia. In North America, the
focus will be on developing the company's own sales channel for the time being.
In Scandinavia, the focus is on profitability, and moderate growth is supported
by the company's expanded product portfolio and the development of the service
business. In Finland, the focus is on profitability, and moderate growth will
primarily be achieved from the fields of procurement management and services.
Basware has complemented its organic growth with acquisitions. The company will
continue to review possible acquisition targets during 2010. The aim of the
acquisitions is to expand the company's Automation Services, distribution
channel and product portfolio in international markets.
The number of the Group's personnel will increase mainly in Automation Services
and R&D activities during the year. The number of personnel will increase the
most in India, which will enable growth with a more moderate increase in costs.
Additional investments required by growth will be moderately realized, provided
that net sales and profitability have realized in accordance with expectations.
Basware expects its net sales to develop positively on the level of 2009.
Operating profit (EBIT) for 2010 is expected to be from 10 to 15 percent of net
sales.
BOARD'S DIVIDEND PROPOSAL
Basware is a growth company that aims at increased market capitalization and
moderate dividend yield. When preparing the dividend proposal, the Board
considers the company's financial position, profitability and prospects in the
near future.
At the end of 2009, the Group parent company's distributable funds are EUR
61 575 776.74.
Basware's Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.36 per share (2008: EUR 0.23) be paid for 2009.
Espoo, Finland, January 25, 2010
BASWARE CORPORATION
Board of Directors
For more information, please contact
CEO Ilkka Sihvo, Basware Corp.,
Tel. +358 9 8791 7251 or +358 40 501 8251
Analyst and Press Briefing
Basware arranges today, January 26, 2009 a briefing on the Interim Report for
the press and analysts at 11:00 a.m. in Hotel Kämp, Pohjoisesplanadi 29,
Helsinki, Finland. During this briefing CEO Ilkka Sihvo will comment the
operations and financial performance of the quarter. Welcome.
FINANCIAL REPORTING IN 2010
Basware's Annual Report 2009, including the audited Financial Statements, will
be published on the company's website during the week starting on February
8, 2010. The company will not publish the Annual Report in print.
Release dates for interim reports:
- Interim Report January-March 2010 (Q1) on Thursday, April 15, 2010
- Interim Report January-June 2010 (Q2) on Monday, July 12, 2010
- Interim Report January-September 2010 (Q3) on Thursday, October 14, 2010
Basware Corporation's Annual General Meeting of Shareholders will be held on
Thursday, February 18, 2010 starting at 2:00 PM at the Diana auditorium
(Erottajankatu 5) in Helsinki, Finland.
Distribution:
NASDAQ OMX Helsinki Ltd
Key media
www.basware.com <http://www.basware.com/>
SUMMARY OF FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS
The financial statements has been prepared in accordance with the International
Financial Reporting Standards (IFRS). As of January 1, 2009, the Group has
applied the following new and revised standards: IFRS 8 Operating Segments and
IAS 1 Presentation of Financial Statements. Otherwise the same Accounting
Principles have been applied as in the 2008 Financial Statements. Key indicator
calculations remain unchanged and have been presented in the 2008 Financial
Statements.
GROUP INCOME STATEMENT
+-----------------------------+-------+-------+-------+-------+-------+------+
| | 1.10.-| 1.10-|Change,| 1.1.-| 1.1.-|Change|
| | 31.12.| 31.12.| | 31.12.| 31.12.| ,|
+-----------------------------+-------+-------+-------+-------+-------+------+
|EUR thousand | 2009| 2008| %| 2009| 2008| %|
+-----------------------------+-------+-------+-------+-------+-------+------+
+-----------------------------+-------+-------+-------+-------+-------+------+
|NET SALES | 26 600| 26 294| 1.2| 92 654| 86 098| 7.6|
+-----------------------------+-------+-------+-------+-------+-------+------+
+-----------------------------+-------+-------+-------+-------+-------+------+
|Other operating income | 34| 62| -45.4| 162| 250| -35.2|
+-----------------------------+-------+-------+-------+-------+-------+------+
| | -1 636| -1 333| 22.8| -6 193| -4 726| 31.0|
|Materials and services | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|Employee benefit | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|expenses |-14 841|-15 093| -1.7|-52 294|-50 399| 3.8|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Depreciation and amortization| -1 280| -990| 29.3| -4 456| -3 043| 46.4|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Other operating expenses | -4 819| -4 818| 0.0|-18 048|-19 500| -7.4|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Operating profit | 4 058| 4 122| -1.6| 11 824| 8 679| 36.2|
+-----------------------------+-------+-------+-------+-------+-------+------+
+-----------------------------+-------+-------+-------+-------+-------+------+
|Finance income | -15| 637| -102.4| 172| 734| -76.6|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Finance expenses | -5| -897| -99.5| -406| -1 003| -59.5|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Profit before tax | 4 038| 3 862| 4.6| 11 590| 8 410| 37.8|
+-----------------------------+-------+-------+-------+-------+-------+------+
+-----------------------------+-------+-------+-------+-------+-------+------+
|Income tax expense | -30| -567| -94.6| -2 517| -1 825| 37.9|
+-----------------------------+-------+-------+-------+-------+-------+------+
|PROFIT FOR THE PERIOD | 4 007| 3 294| 21.6| 9 074| 6 585| 37.8|
+-----------------------------+-------+-------+-------+-------+-------+------+
+-----------------------------+-------+-------+-------+-------+-------+------+
|Other comprehensive | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|income | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|Exchange differences | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|on translating foreign | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|operations | -691| -3 764| -81.6| 1 326| -4 383|-130.6|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Income tax relating | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|to components of | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|other comprehensive income | -594| 0| -100.0| 549| 0|-100.0|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Other comprehensive | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|income, net of tax | -1 285| -3 764| -65.9| 777| -4 383|-117.7|
+-----------------------------+-------+-------+-------+-------+-------+------+
+-----------------------------+-------+-------+-------+-------+-------+------+
|TOTAL COMPREHENSIVE INCOME | 2 722| -470| 679.5| 9 850| 2 201| 347.4|
+-----------------------------+-------+-------+-------+-------+-------+------+
+-----------------------------+-------+-------+-------+-------+-------+------+
|Profit attributable | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|to: | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|Owners of the | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|parent | 4 007| 3 252| 23.2| 9 074| 6 467| 40.3|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Minority interest | 0| 43| -100.0| 0| 118|-100.0|
+-----------------------------+-------+-------+-------+-------+-------+------+
| | 4 007| 3 294| 21.6| 9 074| 6 585| 37.8|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Total comprehensive | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|income attributable to: | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|Owners of the | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|parent | 2 722| -513| 630.9| 9 850| 2 084| 372.8|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Minority interest | 0| 43| -100,0| 0| 118|-100.0|
+-----------------------------+-------+-------+-------+-------+-------+------+
| | 2 722| -470| 679.5| 9 850| 2 201| 347.4|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Earnings per share | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|(undiluted), EUR | 0.35| 0,28| 24.0| 0.80| 0.56| 41.3|
+-----------------------------+-------+-------+-------+-------+-------+------+
|Earnings per share | | | | | | |
+-----------------------------+-------+-------+-------+-------+-------+------+
|(diluted), EUR | 0.35| 0,28| 24.0| 0.80| 0.56| 41.3|
+-----------------------------+-------+-------+-------+-------+-------+------+
GROUP BALANCE SHEET
+----------------------------------------------+----------+----------+---------+
|EUR thousand |31.12.2009|31.12.2008|Change, %|
+----------------------------------------------+----------+----------+---------+
+----------------------------------------------+----------+----------+---------+
|ASSETS | | | |
+----------------------------------------------+----------+----------+---------+
+----------------------------------------------+----------+----------+---------+
|NON-CURRENT ASSETS | | | |
+----------------------------------------------+----------+----------+---------+
|Intangible assets | 20 291| 17 022| 19.2|
+----------------------------------------------+----------+----------+---------+
|Goodwill | 31 119| 29 212| 6.5|
+----------------------------------------------+----------+----------+---------+
|Tangible assets | 823| 991| -17.0|
+----------------------------------------------+----------+----------+---------+
|Available-for-sale investments | 38| 38| |
+----------------------------------------------+----------+----------+---------+
|Long-term trade and other receivables | 124| 536| -76.9|
+----------------------------------------------+----------+----------+---------+
|Deferred tax assets | 2 199| 2 208| -0.4|
+----------------------------------------------+----------+----------+---------+
|Non-current assets | 54 593| 50 006| 9.2|
+----------------------------------------------+----------+----------+---------+
+----------------------------------------------+----------+----------+---------+
|CURRENT ASSETS | | | |
+----------------------------------------------+----------+----------+---------+
|Inventories | 33| 48| -31.7|
+----------------------------------------------+----------+----------+---------+
|Trade and other receivables | 19 684| 20 737| -5.1|
+----------------------------------------------+----------+----------+---------+
|Income tax receivables | 767| 2 341| -67.2|
+----------------------------------------------+----------+----------+---------+
|Financial assets at fair value through profit | 34| 31| 8.0|
|or loss | | | |
+----------------------------------------------+----------+----------+---------+
|Cash and cash equivalents | 12 176| 8 745| 39.2|
+----------------------------------------------+----------+----------+---------+
|Current assets | 32 694| 31 902| 2.5|
+----------------------------------------------+----------+----------+---------+
+----------------------------------------------+----------+----------+---------+
|TOTAL ASSETS | 87 287| 81 909| 6.6|
+----------------------------------------------+----------+----------+---------+
+----------------------------------------------+----------+----------+---------+
|EQUITY AND LIABILITIES | | | |
+----------------------------------------------+----------+----------+---------+
+----------------------------------------------+----------+----------+---------+
|Share capital | 3 440| 3 440| |
+----------------------------------------------+----------+----------+---------+
|Issue of shares | 140| 0| 100.0|
+----------------------------------------------+----------+----------+---------+
|Share premium account | 69| 69| |
+----------------------------------------------+----------+----------+---------+
|Own shares | -629| -271| -131.9|
+----------------------------------------------+----------+----------+---------+
|Fair value reserve and other reserves | 33 598| 33 598| |
+----------------------------------------------+----------+----------+---------+
|Translation differences | -3 214| -3 991| 19.5|
+----------------------------------------------+----------+----------+---------+
|Retained earnings | 23 176| 15 648| 48.1|
+----------------------------------------------+----------+----------+---------+
|Minority interest | 0| 224| -100.0|
+----------------------------------------------+----------+----------+---------+
|Shareholders' equity | 56 580| 48 717| 16.1|
+----------------------------------------------+----------+----------+---------+
+----------------------------------------------+----------+----------+---------+
|NON-CURRENT LIABILITIES | | | |
+----------------------------------------------+----------+----------+---------+
|Deferred tax liability | 3 997| 2 307| 73.3|
+----------------------------------------------+----------+----------+---------+
|Interest-bearing liabilities | 3 674| 7 729| -52.5|
+----------------------------------------------+----------+----------+---------+
|Non-interest-bearing liabilities | 110| 0| 100.0|
+----------------------------------------------+----------+----------+---------+
|Non-current liabilities | 7 782| 10 036| -22.5|
+----------------------------------------------+----------+----------+---------+
+----------------------------------------------+----------+----------+---------+
|CURRENT LIABILITIES | | | |
+----------------------------------------------+----------+----------+---------+
|Interest-bearing liabilities | 5 555| 5 555| |
+----------------------------------------------+----------+----------+---------+
|Trade payables and other liabilities | 17 039| 16 683| 2.1|
+----------------------------------------------+----------+----------+---------+
|Tax liability from income tax | 331| 918| -63.9|
+----------------------------------------------+----------+----------+---------+
|Current liabilities | 22 926| 23 156| -1.0|
+----------------------------------------------+----------+----------+---------+
+----------------------------------------------+----------+----------+---------+
|TOTAL EQUITY AND LIABILITIES | 87 287| 81 909| 6,6|
+----------------------------------------------+----------+----------+---------+
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share- Inv. Retain Mino-
holder Share Share Own non- Other Tran ed rity
s' issue premium Shar restr sl. earnin inter- Total
capital account -es equity res. diff gs est
res.
EUR . .
thousand
SHARE-
HOLDERS' 3 440 0 33 127 0 0 540 392 9 765 148 47 413
EQUITY
1.1.08
Compre- -4
hensive 383 6 467 118 2 201
income
Dividend -1 720 -1 720
distribution
Granted 142 142
warrants
Changes
in -33 058 -271 33 058 993 -41 -681
reporting
period
SHARE-
HOLDERS' 3 440 0 69 -271 33 058 540 -3 15 648 224 48717
EQUITY 991
31.12.08
Share- Share Own Inv. Other Mino-
holder Share premium Shar non- Tran Retain rity
s' Issue account es restr. res sl. ed Inter-
Capital diff. est
EUR equity Total
thousand res.
SHARE-
HOLDERS' 3 440 0 69 -271 33 058 540 -3 15 648 224 48 717
EQUITY 991
1.1.09
Compre-
hensive 777 9 074 9 850
income
Dividend -2 623 -2 623
distribution
Granted 515 515
warrants
Changes
in 140 -358 561 -224 119
reporting
period
SHARE-
HOLDERS' 3 440 140 69 -629 33 058 540 -3 23 176 0 56 580
EQUITY 214
31.12.09
GROUP CASH FLOW STATEMENT
+------------------------------------------------------+-----------+----------++
|EUR thousand | 1.1-| 1.1.-||
| |.31.12.2009|31.12.2008||
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
|Net cash from operating activities | | ||
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
|Profit for the period | 9 074| 6 585||
+------------------------------------------------------+-----------+----------++
|Adjustments for profit | 7 832| 5 243||
+------------------------------------------------------+-----------+----------++
|Working capital changes | -136| 125||
+------------------------------------------------------+-----------+----------++
|Interest paid | -192| -291||
+------------------------------------------------------+-----------+----------++
|Interest received | 104| 154||
+------------------------------------------------------+-----------+----------++
|Other financial items in operating activities | -30| -38||
+------------------------------------------------------+-----------+----------++
|Income taxes paid | -1 920| -3 447||
+------------------------------------------------------+-----------+----------++
|Net cash from operating activities | 14 732| 8 331||
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
|Cash flows from investing activities | | ||
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
|Purchase of tangible and intangible assets | -3 135| -3 631||
+------------------------------------------------------+-----------+----------++
|Proceeds from sale of tangible and intangible assets | 1| 47||
+------------------------------------------------------+-----------+----------++
|Acquired subsidiaries | -1 875| -8 728||
+------------------------------------------------------+-----------+----------++
|Repayment of loan receivables | 0| 9||
+------------------------------------------------------+-----------+----------++
|Net cash used in investing activities | -5 009| -12 303||
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
|Cash flows from financing activities | | ||
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
|Minority's capital investment | 140| 0||
+------------------------------------------------------+-----------+----------++
|Proceeds from short-term borrowings | 0| 2 000||
+------------------------------------------------------+-----------+----------++
|Repayments of short-term borrowings | -3 558| -4 000||
+------------------------------------------------------+-----------+----------++
|Proceeds from long-term borrowings | 0| 10 650||
+------------------------------------------------------+-----------+----------++
|Repayments of long-term borrowings | 0| -300||
+------------------------------------------------------+-----------+----------++
|Purchase of own shares | -358| -271||
+------------------------------------------------------+-----------+----------++
|Repayments of financial lease liabilities | 0| -1||
+------------------------------------------------------+-----------+----------++
|Dividends paid | -2 623| -1 720||
+------------------------------------------------------+-----------+----------++
|Net cash used in financing activities | -6 398| 6 358||
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
|Net change in cash and cash equivalents according to | 3 324| 2 386||
|the cash flow statement | | ||
+------------------------------------------------------+-----------+----------++
+------------------------------------------------------+-----------+----------++
|Cash and cash equivalents at beginning of period | 8 777| 7 041||
+------------------------------------------------------+-----------+----------++
|Effects of exchange rate changes on cash and cash | 109| -650||
|equivalents | | ||
+------------------------------------------------------+-----------+----------++
|Cash and cash equivalents at end of period | 12 210| 8 777||
+------------------------------------------------------+-----------+----------++
GROUP QUARTERLY INCOME STATEMENT
+-------------+-------+------+------+------+---------+------+-----------+------+
+-------------+-------+------+------+------+---------+------+-----------+------+
| | 1-3/| 1-3/| 4-6/| 4-6/|7-9/ 2009| 7-9/|10-12/ 2009|10-12/|
|EUR thousand | 2009| 2008| 2009| 2008| | 2008| | 2008|
+-------------+-------+------+------+------+---------+------+-----------+------+
+-------------+-------+------+------+------+---------+------+-----------+------+
|NET SALES | 21 717|18 233|22 729|22 312| 21 609|19 259| 26 600|26 294|
+-------------+-------+------+------+------+---------+------+-----------+------+
+-------------+-------+------+------+------+---------+------+-----------+------+
|Other | | | | | | | | |
|operating | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|income | 30| 69| 52| 62| 47| 58| 34| 62|
+-------------+-------+------+------+------+---------+------+-----------+------+
|Materials and| -1 552|-1 211|-1 611|-1 385| -1 395| -797| -1 636|-1 333|
|services | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|Employee |-12 896| -11| -13| -12| -11 113 | -10| -14 841| -15|
|benefit | | 765| 444| 608| | 933| | 093|
+-------------+-------+------+------+------+---------+------+-----------+------+
|expenses | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|Depreciation | -1 004| -671|-1 067| -693| -1 106| -690| -1 280| -990|
|and | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|amortization | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|Other | | | | | | | | |
|operating | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|expenses | -4 703|-4 910|-4 513|-5 257| -4 014|-4 516| -4 819|-4 818|
+-------------+-------+------+------+------+---------+------+-----------+------+
|Operating | 1 592| -254| 2 146| 2 431| 4 028| 2 381| 4 058| 4 122|
|profit | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|% | 7.3%| -1.4%| 9.4%| 10.9%| 18.6%| 12.4%| 15.3%|-15.7%|
+-------------+-------+------+------+------+---------+------+-----------+------+
+-------------+-------+------+------+------+---------+------+-----------+------+
|Finance | 124| 39| 30| 18| 32| 39| -15| 637|
|income | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|Finance | 232| -35| -54| -21| -115| -50| -5| -897|
|expenses | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|Profit before| 1 484| -250| 2 122| 2 428| 3 946| 2 370| 4 038| 3 862|
|tax | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|% | 6.8%| -1.4%| 9.3%| 10.9%| 18.3%| 12.3%| 15.2%| 14.7%|
+-------------+-------+------+------+------+---------+------+-----------+------+
+-------------+-------+------+------+------+---------+------+-----------+------+
|Income tax | -818| -300| -727| -528| -941| -430| -30| -567|
|expense | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|PROFIT FOR | | | | | | | | |
+-------------+-------+------+------+------+---------+------+-----------+------+
|THE PERIOD | 666| -550| 1 396| 1 899| 3 005| 1 941| 4 007| 3 294|
+-------------+-------+------+------+------+---------+------+-----------+------+
|% | 3.1%| -3.0%| 6.1%| 8.5%| 13.9%| 10.1%| 15.1%| 12.5%|
+-------------+-------+------+------+------+---------+------+-----------+------+
Consolidation of new acquisitions
Basware increased its shareholding in Basware Einvoices Oy to 100 percent on
January 30, 2009, by acquiring 12.55% of the company's shares and control from
the company's management. The purchase price paid on the date of the transaction
was approximately EUR 720 thousand and the additional purchase price to be paid
based on the business volume for 2009 in February 2010 at the latest is expected
to be approximately EUR 250 thousand. Basware increased its shareholding in
Basware FIMA Oy to 100 percent on August 21, 2009, by acquiring 4.04% of the
company's shares and control from the company's management. A situation such as
the one presented above is currently not regulated by IFRS, so the company's
management has compiled an accounting principle for the case in compliance with
IAS 8. The change of ownership is recognized under shareholders' equity, and it
will not have any effect on profit or goodwill.
Basware Einvoices Oy merged with Basware Corporation in accordance with the
previously registered merger plan on July 13, 2009. Basware Einvoices Oy's
business operations will continue in Basware Corporation as a part of Basware's
Automation Services business. The merger did not result in any changes to
Basware Corporation's organization structure.
Basware Corporation acquired TAG Services Pty Ltd on July 1, 2009. The
acquisition price was 2.1 million Australian dollars (approximately EUR 1.2
million). 4.2 Australian dollars associated with customer relationships has been
allocated to intangible assets, taking deferred tax liabilities into
consideration. The allocation of the acquisition purchase price is preliminary.
The acquisition of the Norwegian invoice automation solution business of Itella
Information AS was completed on April 1, 2009. The purchase price was NOK 6.38
million (approximately EUR 0.72 million). EUR 1 039 thousand associated with
customer relationships has been allocated to intangible assets, taking deferred
tax liabilities into consideration. The purchase price includes EUR 436 thousand
of goodwill. The allocation of the acquisition purchase price is preliminary.
COMMITMENTS AND CONTINGENT LIABILITIES
+----------------------------------------+----------+----------++
|EUR thousand |31.12.2009|31.12.2008||
+----------------------------------------+----------+----------++
+----------------------------------------+----------+----------++
|OWN GUARANTEES | | ||
+----------------------------------------+----------+----------++
+----------------------------------------+----------+----------++
|Floating charge | 1 200| 1 200||
+----------------------------------------+----------+----------++
+----------------------------------------+----------+----------++
|GUARANTEES ON BEHALF OF SUBSIDIARIES | | ||
+----------------------------------------+----------+----------++
+----------------------------------------+----------+----------++
|Guarantees | 1 075| 1 096||
+----------------------------------------+----------+----------++
+----------------------------------------+----------+----------++
|OTHER OWN GUARANTEES | | ||
+----------------------------------------+----------+----------++
+----------------------------------------+----------+----------++
|Lease liabilities | | ||
+----------------------------------------+----------+----------++
|Current lease liabilities | 970| 868||
+----------------------------------------+----------+----------++
|Lease liabilities maturing in 1-5 years | 895| 838||
+----------------------------------------+----------+----------++
|Total | 1 865| 1 706||
+----------------------------------------+----------+----------++
+----------------------------------------+----------+----------++
|Other rental liabilities | | ||
+----------------------------------------+----------+----------++
|Current rental liabilities | 2 333| 2 385||
+----------------------------------------+----------+----------++
|Rental liabilities maturing in 1-5 years| 2 924| 4 620||
+----------------------------------------+----------+----------++
|Rental liabilities maturing later | 1 071| 1 196||
+----------------------------------------+----------+----------++
|Total | 6 328| 8 201||
+----------------------------------------+----------+----------++
+----------------------------------------+----------+----------++
|Other own contingent liabilities, total | 8 193| 9 907||
+----------------------------------------+----------+----------++
SEGMENT REPORTING
Geographical segments (by the location of assets)
+----------------------+------+------+-------+------+------+-------++
|Net sales | 10-12|10-12/|Change,| 1-12/| 1-12/|Change,||
|(EUR thousand) |/ 2009| 2008| %| 2009| 2008| %||
+----------------------+------+------+-------+------+------+-------++
|Finland |15 271|15 329| -0.4|50 486|49 517| 2.0||
+----------------------+------+------+-------+------+------+-------++
|Scandinavia | 6 135| 6 627| -7.4|22 236|18 805| 18.2||
+----------------------+------+------+-------+------+------+-------++
|Europe | 5 629| 5 264| 6.9|18 717|19 454| -3.8||
+----------------------+------+------+-------+------+------+-------++
|Other | 2 897| 1 311| 120.9| 9 201| 5 004| 83.9||
+----------------------+------+------+-------+------+------+-------++
|Sales between segments|-3 333|-2 238| -49.0|-7 985|-6 682| -19.7||
+----------------------+------+------+-------+------+------+-------++
|Group total |26 600|26 294| 1.2|92 654|86 098| 7.6||
+----------------------+------+------+-------+------+------+-------++
+--------------------------------+------+------+--------+------+-----+--------++
|Operating profit |10-12/|10-12/| Change,|1-12/ |1-12/|Change, ||
|(EUR thousand) | 2009| 2008| %| 2009| 2008| %||
+--------------------------------+------+------+--------+------+-----+--------++
|Finland | 3 024| 4 385| -31.0| 7 714|7 898| -2.3||
+--------------------------------+------+------+--------+------+-----+--------++
|Scandinavia | 1 041| -21|5 068.2 | 3 169|1 017| 211.4||
+--------------------------------+------+------+--------+------+-----+--------++
|Europe | 902| -48|1 974.6 | 1 566| -74|2 224.8 ||
+--------------------------------+------+------+--------+------+-----+--------++
|Other | -517| 118| -537.7| 741| 289| 155.9||
+--------------------------------+------+------+--------+------+-----+--------++
|Operating profit between | -393| -312| -26.0|-1 365| -452| -201.8 ||
|segments | | | | | | ||
+--------------------------------+------+------+--------+------+-----+--------++
|Group total | 4 058| 4 122| -1.6|11 824|8 679| 36.2||
+--------------------------------+------+------+--------+------+-----+--------++
+-------------------------------+------+------+--------+------+------+--------++
|Personnel (employed, on |10-12/|10-12/|Change, |1-12/ |1-12/ |Change, ||
|average) | 2009| 2008| %| 2009| 2008| %||
+-------------------------------+------+------+--------+------+------+--------++
|Finland | 460| 426| 8.0| 454| 421| 7.8||
+-------------------------------+------+------+--------+------+------+--------++
|Scandinavia | 130| 146| -11.4| 135| 112| 20.0||
+-------------------------------+------+------+--------+------+------+--------++
|Europe | 119| 127| -6.3| 119| 129| -7.3||
+-------------------------------+------+------+--------+------+------+--------++
|Other | 48| 29| 68.6| 39| 26| 47.0||
+-------------------------------+------+------+--------+------+------+--------++
|Group total | 758| 729| 4.0| 747| 689| 8.5||
+-------------------------------+------+------+--------+------+------+--------++
Net sales by business
+---------------------+-------+-------+--------+------+----------+-------+
|Net sales |10-12/ |10-12/ |Change, |1-12/ | |Change,|
|(EUR thousand) | 2009| 2008| %| 2009|1-12/ 2008| |
| | | | | | | %|
+---------------------+-------+-------+--------+------+----------+-------+
|License Sales | 460| 426| 8.0| 454| 421| 7.8|
+---------------------+-------+-------+--------+------+----------+-------+
|Maintenance | 130| 146| -11.4| 135| 112| 20.0|
+---------------------+-------+-------+--------+------+----------+-------+
|Professional Services| 119| 127| -6.3| 119| 129| -7.3|
+---------------------+-------+-------+--------+------+----------+-------+
|Automation Services | 48| 29| 68.6| 39| 26| 47.0|
+---------------------+-------+-------+--------+------+----------+-------+
|Group total | 758| 729| 4.0| 747| 689| 8.5|
+---------------------+-------+-------+--------+------+----------+-------+
Geographical division of net sales by the location of customer
+--------------+------+------+-------+------+------+-------++
|Net sales | 10-12|10-12/|Change,| 1-12/| 1-12/|Change,||
|(EUR thousand)| 2009| 2008| %| 2009| 2008| %||
+--------------+------+------+-------+------+------+-------++
|Finland |12 267|12 769| -3.9|42 449|41 514| 2.3||
+--------------+------+------+-------+------+------+-------++
|Scandinavia | 6 003| 6 411| -6.4|21 719|18 309| 18.6||
+--------------+------+------+-------+------+------+-------++
|Europe | 5 071| 5 143| -1.4|18 065|19 191| -5.9||
+--------------+------+------+-------+------+------+-------++
|Other | 3 258| 1 971| 65.3 |10 421| 7 083| 47.1 ||
+--------------+------+------+-------+------+------+-------++
|Group total |26 600|26 294| 1.2|92 654|86 098| 7.6||
+--------------+------+------+-------+------+------+-------++
GROUP KEY INDICATORS
+--------------------------------------+-----------+----------+-----------+
|EUR thousand | 1-12/09| 1-12/08| 1-12/07|
+--------------------------------------+-----------+----------+-----------+
+--------------------------------------+-----------+----------+-----------+
|Net sales | 92 654| 86 098| 73 270|
+--------------------------------------+-----------+----------+-----------+
|Growth of net sales, % | 7.6%| 17.5%| 22.2%|
+--------------------------------------+-----------+----------+-----------+
|EBITDA | 16 280| 11 722| 10 102|
+--------------------------------------+-----------+----------+-----------+
|% of net sales | 17.6%| 13.6%| 13.8%|
+--------------------------------------+-----------+----------+-----------+
|Operating profit before IFRS | | | |
+--------------------------------------+-----------+----------+-----------+
|amortization | 13 788| 9 730| 8 224|
+--------------------------------------+-----------+----------+-----------+
|% of net sales | 14.9%| 11.3%| 11.3%|
+--------------------------------------+-----------+----------+-----------+
|Operating profit | 11 824| 8 679| 7 512|
+--------------------------------------+-----------+----------+-----------+
|Growth of operating profit, % | 36.2%| 15.5%| -7.0%|
+--------------------------------------+-----------+----------+-----------+
|% of net sales | 12.8%| 10.1%| 10.3%|
+--------------------------------------+-----------+----------+-----------+
|Profit before tax | 11 590| 8 410| 7 704|
+--------------------------------------+-----------+----------+-----------+
|% of net sales | 12.5%| 9.8%| 10.5%|
+--------------------------------------+-----------+----------+-----------+
|Profit for the period | 9 074| 6 585| 4 112|
+--------------------------------------+-----------+----------+-----------+
|% of net sales | 9.8%| 7.6%| 5.6%|
+--------------------------------------+-----------+----------+-----------+
+--------------------------------------+-----------+----------+-----------+
|Return on equity, % | 17.2%| 13.7%| 8.9%|
+--------------------------------------+-----------+----------+-----------+
|Return on investment, % | 18.8%| 16.6%| 16.2%|
+--------------------------------------+-----------+----------+-----------+
|Interest-bearing liabilities | 9 230| 13 283| 4 334|
+--------------------------------------+-----------+----------+-----------+
|Cash and liquid assets *) | 12 210| 8 777| 7 041|
+--------------------------------------+-----------+----------+-----------+
|Gearing, % | -5.3%| 9.3%| -5.7%|
+--------------------------------------+-----------+----------+-----------+
|Equity ratio, % | 64.8%| 59.5%| 70.0%|
+--------------------------------------+-----------+----------+-----------+
|Total assets | 87 287| 81 909| 67 722|
+--------------------------------------+-----------+----------+-----------+
+--------------------------------------+-----------+----------+-----------+
|Gross investments **) | 7 448| 12 476| 12 220|
+--------------------------------------+-----------+----------+-----------+
|% of net sales | 8.0%| 14.5%| 16.7%|
+--------------------------------------+-----------+----------+-----------+
|Capital expenditure | 2 047| 1 007| 817|
+--------------------------------------+-----------+----------+-----------+
|% of net sales | 2.2%| 1.2%| 1.1%|
+--------------------------------------+-----------+----------+-----------+
|Research and development costs | 14 781| 15 518| 13 172|
+--------------------------------------+-----------+----------+-----------+
|% of net sales | 16.0%| 18.0%| 18.0%|
+--------------------------------------+-----------+----------+-----------+
|R&D personnel at end of period | 195| 171| 152|
+--------------------------------------+-----------+----------+-----------+
|Personnel on average during the period| 747| 689| 580|
+--------------------------------------+-----------+----------+-----------+
|Personnel at end of period | 761| 731| 658|
+--------------------------------------+-----------+----------+-----------+
|Increase in personnel, % | 4.1%| 11.1%| 24.6%|
+--------------------------------------+-----------+----------+-----------+
|Earnings per share, EUR | 0.80| 0.56| 0.36|
+--------------------------------------+-----------+----------+-----------+
|Earnings per share (diluted), EUR | 0.80| 0.56| 0.36|
+--------------------------------------+-----------+----------+-----------+
|Equity per share, EUR | 4.93| 4.23| 4.12|
+--------------------------------------+-----------+----------+-----------+
|Dividend per share, EUR ***) | 0.36| 0.23| 0.15|
+--------------------------------------+-----------+----------+-----------+
|Dividend per profit, % | 45.2%| 40.8%| 42.0%|
+--------------------------------------+-----------+----------+-----------+
|Effective dividends, % | 2.5%| 3.5%| 1.5%|
+--------------------------------------+-----------+----------+-----------+
|P/E ratio (P/E) | 18.21| 11.68| 28.02|
+--------------------------------------+-----------+----------+-----------+
|Share price performance | | | |
+--------------------------------------+-----------+----------+-----------+
|lowest share price | 6.60| 6.00| 9.50|
+--------------------------------------+-----------+----------+-----------+
|highest share price | 14.66| 10.45| 14.00|
+--------------------------------------+-----------+----------+-----------+
|average share price | 10.79| 7.53| 12.03|
+--------------------------------------+-----------+----------+-----------+
|closing share price | 14.52| 6.59| 10.00|
+--------------------------------------+-----------+----------+-----------+
+--------------------------------------+-----------+----------+-----------+
|Market capitalization at end of period|165 206 004|75 301 011|114 681 240|
+--------------------------------------+-----------+----------+-----------+
|Number of traded shares | 2 038 565| 2 298 467| 2 761 995|
+--------------------------------------+-----------+----------+-----------+
|% of average number of shares | 17.9%| 20.1%| 24.1%|
+--------------------------------------+-----------+----------+-----------+
|Average number of shares | | | |
+--------------------------------------+-----------+----------+-----------+
|- during the period | 11 381 905|11 463 307| 11 468 124|
+--------------------------------------+-----------+----------+-----------+
|- during the period, diluted | 11 381 905|11 463 307| 11 468 124|
+--------------------------------------+-----------+----------+-----------+
*) Includes cash, cash equivalents and financial assets at fair value through
profit or loss
**) Includes capitalized R&D costs and acquisitions
***) The figure for 2009 is the Board's proposal to the Annual General Meeting
+--+---------------------------------------------------+----------+-------+
| |Major Shareholders, December 31, 2009 | | |
+--+---------------------------------------------------+----------+-------+
| | | Number of|Votes, |
| | | shares| |
| | | | %|
+--+---------------------------------------------------+----------+-------+
| 1|Sihvo, Ilkka | 1 065 800| 9.3|
+--+---------------------------------------------------+----------+-------+
| 2|Eräkangas, Kirsi | 1 021 800| 8.9|
+--+---------------------------------------------------+----------+-------+
| |Eräkangas, Kirsi | 711 400| 6.2|
+--+---------------------------------------------------+----------+-------+
| |Eräkangas, Lotta | 310 400| 2.7|
+--+---------------------------------------------------+----------+-------+
| 3|Vaajoensuu, Hannu | 962 100| 8.4|
+--+---------------------------------------------------+----------+-------+
| |Vaajoensuu, Hannu | 528 000| 4.6|
+--+---------------------------------------------------+----------+-------+
| |Havacment Oy | 266 500| 2.3|
+--+---------------------------------------------------+----------+-------+
| |Vaajoensuu, Henri | 83 800| 0.7|
+--+---------------------------------------------------+----------+-------+
| |Vaajoensuu, Petra | 83 800| 0.7|
+--+---------------------------------------------------+----------+-------+
| 4|Perttunen, Sakari | 830 400| 7.2|
+--+---------------------------------------------------+----------+-------+
| 5|Nordea Bank Finland PLC | 663 883| 5.8|
+--+---------------------------------------------------+----------+-------+
| 6|Pöllänen, Antti | 617 423| 5.4|
+--+---------------------------------------------------+----------+-------+
| |Pöllänen, Antti | 516 615| 4.5|
+--+---------------------------------------------------+----------+-------+
| |Launimo, Essi | 100 808| 0.9|
+--+---------------------------------------------------+----------+-------+
| 7|Nordea Nordic Small Cap Fund | 565 123| 4.9|
+--+---------------------------------------------------+----------+-------+
| 8|Mandatum Life Insurance Company | 550 000| 4.8|
+--+---------------------------------------------------+----------+-------+
| 9|Ilmarinen Mutual Pension Insurance Company | 440 850| 3.8|
+--+---------------------------------------------------+----------+-------+
|10|Ahonen, Asko | 318 822| 2.8|
+--+---------------------------------------------------+----------+-------+
|11|Fondita Nordic Micro Cap Placeringsfond | 300 000| 2.6|
+--+---------------------------------------------------+----------+-------+
|12|Svenska Handelsbanken AB (Publ), Filialverksamheten| 269 292| 2.3|
| |i Finland | | |
+--+---------------------------------------------------+----------+-------+
|13|Royal Skandia Life Assurance EIB 17527-6 | 250 000| 2.2|
+--+---------------------------------------------------+----------+-------+
|14|Kaleva Mutual Insurance Company | 242 690| 2.1|
+--+---------------------------------------------------+----------+-------+
|15|Veritas Pension Insurance Company | 226 000| 2.0|
+--+---------------------------------------------------+----------+-------+
|16|Perttunen, Meimi | 215 400| 1.9|
+--+---------------------------------------------------+----------+-------+
|17|Aktia Capital | 180 863| 1.6|
+--+---------------------------------------------------+----------+-------+
|18|Skandinavisska Enskilda Banken | 158 416| 1.4|
+--+---------------------------------------------------+----------+-------+
|19|Basware Oyj | 90 300| 0.8|
+--+---------------------------------------------------+----------+-------+
|20|Vaajoensuu, Sara | 83 700| 0.7|
+--+---------------------------------------------------+----------+-------+
| |20 largest sharesholders total | 9 052 862| 78.9|
+--+---------------------------------------------------+----------+-------+
| |Total of nominee-registered | 1 099 341| 9.6|
+--+---------------------------------------------------+----------+-------+
| |Others | 1 315 921| 11.5|
+--+---------------------------------------------------+----------+-------+
| |Total |11 468 124| 100.0|
+--+---------------------------------------------------+----------+-------+
Distribution by sector, December 31, 2009
+------------------------------------+---------+-----------------+
| |Number of| Shares|
| | | ,|
+------------------------------------+---------+-----+-----------+
| | holders| %| Pcs|
+------------------------------------+---------+-----+-----------+
|Private companies | 592| 7,7 | 887 595|
+------------------------------------+---------+-----+-----------+
|Financial and insurance institutions| 23|17,1 | 1 957 097|
+------------------------------------+---------+-----+-----------+
|Public-sector organizations | 6| 6,1 | 697 150|
+------------------------------------+---------+-----+-----------+
|Non-profit organizations | 30| 0,7 | 79 996|
+------------------------------------+---------+-----+-----------+
|Households | 15 777 |56,5 | 6 482 111|
+------------------------------------+---------+-----+-----------+
|Foreign | 44| 2,3| 264 834|
+------------------------------------+---------+-----+-----------+
| | 16 472 | 90,4|10 368 783 |
+------------------------------------+---------+-----+-----------+
|Nominee-registered | 8 | 9,6| 1 099 341 |
+------------------------------------+---------+-----+-----------+
|Total | 16 480|100,0|11 468 124 |
+------------------------------------+---------+-----+-----------+
Distribution of holdings by number of shares, December 31, 2009
Number of shares Number of holders Votes, % Shares, pcs
1-100 13712 2,8 318879
101-1 000 2450 6,6 754232
1 001-10 000 277 6,6 756095
10 001 - 100 000 20 8,1 927656
100 001 + 21 76,0 8711262
Total 16480 100 11468124
[HUG#1377032]
