Ixonos Plc Financial statement release 11 February 2010 at 10:30 am
Financial statement release for the period 1 January - 31 December 2009
YEAR-END UPSURGE IN IXONOS' TURNOVER AND OPERATING PROFIT
The review period in brief
- Turnover for the review period was EUR 67.1 million (2008: EUR 75.1 million),
a change of -10.7 per cent.
- Operating profit before goodwill impairment was EUR 3.2 million (2008: EUR
6.1 million), 4.8 per cent of turnover; operating profit decreased -47.6 per
cent.
- Operating profit was EUR -4.0 million (2008: EUR 6.1 million), -6.0 per cent
of turnover.
- Net profit was EUR -6.0 million (2008: EUR 3.5 million), -8.9 per cent of
turnover.
- Earnings per share were EUR -0.64 (2008: EUR 0.39).
- Diluted earnings per share were EUR -0.64 (2008: EUR 0.39).
- Net cash flow from operative activities was EUR 3.1 million (2008: EUR 6.2
million).
- One-off events: In September, the company wrote off EUR 7.2 million in
goodwill allocated to the Business Solutions unit. The impairment loss has no
cash impact.
Q4/2009 in brief
- Turnover for the fourth quarter was EUR 19.5 million (2008: EUR 20.5
million), a
change of -4.9 per cent.
- Operating profit was EUR 1.7 million (2008: EUR 2.6 million), 8.8 per cent of
turnover.
- Net profit was EUR 0.7 million (2008: EUR 1.5 million), 3.7 per cent of
turnover.
- Earnings per share were EUR 0.08 (2008: EUR 0.17).
- Diluted earnings per share were EUR 0.08 (2008: EUR 0.17).
Future prospects in brief
- Turnover for the first quarter of the current year is forecast to be higher
than in the previous year. Operating profit is predicted to be positive.
- Turnover and operating profit for the entire year are estimated clearly to
surpass those of the previous year.
Kari Happonen, President and CEO:
As predicted, Ixonos' turnover for 2009 was lower than in the previous year.
This was due to the general economic recession and the weakened demand for ICT
services. Profitability was also clearly weaker than normal. Still, the
business operations of the entire Group developed favourably during the second
half-year of the review period; as forecast, turnover for the fourth quarter
was the highest of the year.
We estimate that the Mobile Terminals & Software business unit, which provides
R&D services for mobile terminal devices and their software, managed to gain
market share despite the difficult market situation. The unit also clearly
increased its turnover for the review period as well as its operating profit
compared to the previous year. We anticipate that the unit will continue its
profitable growth during 2010.
In September 2009, we established a product creation centre for the design of
next-generation mobile phones in connection with our site in Jyväskylä, Finland.
The centre expands the Mobile Terminals & Software unit's smartphone R&D
services to cover mechanical engineering and electronics design in addition to
software development. The unit will be in a key position as we, together with
our international device manufacturer customers and operator customers, create
devices that inspire consumers with both practical use and pleasure as they tap
into the ever-increasing supply of services on the wireless Internet.
The Media & Communities business unit develops device-independent Internet
services related to the delivery of digital media and to social network
communication. In the second half-year, the unit recovered from a downturn in
its turnover and profitability. This hiccup, which occurred during the first
half-year, was caused by certain long-term customer projects ending. In the
third quarter, the unit's turnover and operating profit returned to the growth
track, a trend that continued during the fourth quarter. We look forward to
excellent performance from the unit during 2010 as well.
The most violent drop in turnover and profitability during the review period
affected our Business Solutions unit, which is responsible for customer
relationships in Finland's manufacturing, service and ICT industries as well as
in the Finnish public sector. The unit very successfully competed for public
sector information system projects. However, the unit's customers in the private
sector cut down strongly on their ICT investments during the year, and they
postponed the launch of new software and systems projects. These circumstances
reduced turnover, which is why the unit showed a loss in the beginning of the
year.
To restore profitability, we launched a rationalization program as early as in
the first quarter. This program sought to achieve some EUR 3 million in yearly
savings. Our adaptation and rationalization measures improved billing ratios and
operative efficiency already during the same financial period. Costs for
personnel and subcontracting in 2009 were EUR 5.1 million lower than in the
previous year.
According to market forecasts by research institutes, Finland's ICT market will
only see a slight upswing in 2010. In September 2009, as the situation on the
Finnish market remained weak, we downgraded the forecasts for the Business
Solutions unit's short-term turnover and operating profit considerably. Although
we believe that the unit's turnover and profitability will grow significantly in
the long term, we wrote off EUR 7.2 million of the EUR 18.3-million goodwill
allocated to the unit in September 2009. This one-off impairment loss has no
cash impact, but it caused the review period's operating profit for the unit as
well as for the entire Group to be clearly negative. However, the operational
result of the entire Group was clearly positive as well as satisfactory
considering the market situation.
After the turn of the year, we continued to rationalize our operations in the
Business Solutions segment to adapt to the changed operating environment on the
Finnish market. The new rationalization program aims to focus the unit's fields
of technology expertise, improving their alignment with business needs; to adapt
operations to the reduced demand in certain fields; and to improve the
profitability of operations in Finland. The rationalization is forecast to
achieve more than EUR 1 million in yearly savings from the second quarter of
2010.
We continued to develop our international operations during the financial
period; we opened a site in Boston, USA, established a second Chinese service
centre in Chengdu and expanded our operations in Germany, Denmark and Great
Britain. The costs relating to the expansion of our international network
diluted the operating profit for 2009 by some EUR 1.0 million.
Due to the favourable demand situation of the Mobile Terminals & Software unit
and the Media & Communities unit, we believe that the Group's turnover will
increase significantly during the current year. We also expect that the billing
ratio of the company's specialist staff as well as the efficiency of our
administration and support functions will continue to improve and that the
Group's operating profit thus will increase clearly during the present financial
period.
Once again, I want to thank our customers for their confidence and collaboration
as well as everyone at Ixonos for their excellent work in a difficult market
situation.
BUSINESS OPERATIONS
Ixonos is an ICT service company producing innovative solutions for mobile
communications, social media and digital services. Together with its customers,
the company develops products and services that inspire the digital experience
regardless of place and time. The company's corporate customers capitalize on
new business opportunities and new productivity.
By offering services that range from concept design, consulting and project
management to software production and maintenance, Ixonos aims to be a strategic
partner to leading innovators.
One of Ixonos' strategic objectives has been to expand the company's solutions
and services to cover the entire life cycle of mobile Internet services, from
concept development to maintenance. Ixonos' solutions also encompass all sectors
of the user experience, from terminal devices and user interfaces to back-end
systems for mobile Internet services. A significant expansion in this field took
place in autumn 2009, when Ixonos established a next-generation smartphone
design unit providing R&D services, including mechanical engineering and
electronics design, for mobile devices.
The company's clientele comprises globally leading mobile and smartphone
manufacturers, network suppliers and telecom carriers as well as Finnish
finance, industrial and service companies and public administration
organizations.
Ixonos' sites are located in Helsinki and six other Finnish localities as well
as in Great Britain, China, Denmark, Estonia, Germany, Slovakia and the United
States.
SEGMENTS
Since the beginning of 2009, Ixonos' business operations are organized into
three segments: Mobile Terminals & Software; Media & Communities; and Business
Solutions. The Mobile Terminals & Software segment consists of R&D services for
mobile terminal devices and software. The Media & Communities segment comprises
device-independent Internet services related to delivery of digital content and
to social network communication. The Business Solutions segment encompasses
development services for corporate business software and systems and for
e-government facilities.
Mobile Terminals & Software
The Mobile Terminals & Software business unit provides its customers with R&D
services for mobile terminal devices and software.
The Jyväskylä smartphone product development centre that we established in
September expanded the Group's mobile terminal R&D services to cover mechanical
engineering and electronics design in addition to software development. The
centre enables the provision of increasingly comprehensive R&D services for
next-generation smartphones, to present international device manufacturer
customers and operator customers as well as new ones. The new centre will
develop smartphones based on new, powerful chipsets from the world's leading
technology suppliers and on the Android and Symbian operating systems.
Despite the difficult market situation, the Mobile Terminals & Software unit
managed to gain market share and to increase its turnover and operating profit
for the review period as compared to the previous year. Turnover increased by
10.3 per cent to EUR 37.3 million (2008: EUR 33.8 million). Operating profit
increased by 18.7 per cent to EUR 5.7 million (2008: EUR 4.8 million), 15.2 per
cent of turnover.
The unit's business operations are expected to develop favourably during 2010.
Both turnover and operating profit are anticipated to grow from the previous
year.
In addition to actively utilizing the offering of the Group's international
sites in Tallinn, Košice and Beijing, the Mobile Terminals & Software segment
also made strong efforts in the development of international sales.
Media & Communities
The Media & Communities business unit provides its customers with
device-independent Internet services related to the delivery of digital media,
entertainment and information as well as to social network communication.
As the global financial crisis subsides, investments in Internet distribution
and sales of digital media as well as in Internet-based social media services
are expected to grow notably faster than traditional ICT investments. Ixonos
offers its customers a uniquely comprehensive service package that enables agile
and cost-efficient creation of new Internet services; implementation of a smooth
user experience in services and mobile terminals; and flexible further
development and maintenance - including business critical hosting - of services.
During the review period, the segment's turnover fell by 17.3 per cent to EUR
10.5 million (2008: EUR 12.7 million). Operating profit decreased by 33.7 per
cent to EUR 1.1 million (2008: EUR 1.6 million), 10.1 per cent of turnover. The
reduction in turnover was caused by certain individual, large customer projects
ending in early 2009 as well as by new project launches being delayed in the
volatile market situation. In the third quarter, the unit's turnover again began
to climb. The decreased profitability of the unit was a combined consequence of
a decline in business volume, a temporarily diminished billing ratio and a
strong investment in the development of the unit's operations in the United
States.
The unit's turnover and profitability are expected to continue the profitable
growth that began in late 2009. The Media & Communities unit actively utilized
the offering of the Group's site in Košice.
Business Solutions
The Business Solutions unit provides development services for corporate business
software and systems as well as for e-government facilities.
The unit focuses on acceleration of business processes, on document and event
management, on e-commerce and e-government solutions and on specialist services
in project management. As all the Group's units do, Business Solutions
vigorously utilizes open source solutions and, in chosen solution areas, product
platforms of technology partners. The unit aims to diversify its solution
delivery according to the SaaS (software as a service) business model by
utilizing the Group's advanced business-critical hosting services. The Business
Solutions unit also aspires to improve its operative efficiency by concentrating
maintenance and further development of certain product platforms so that such
work is performed at the Group's site in Košice. Public sector customers have
received the unit's e-government solutions well.
Due to the economic recession and the attenuated general demand for ICT
services, demand for the segment's services diminished significantly during the
review period. The segment's turnover decreased by 32.7 per cent to EUR 19.3
million (2008: EUR 28.6 million), and operating profit turned negative.
According to market forecasts by research institutes such as Market-Visio,
Finland's ICT market shrank during 2009, but will see moderate growth in 2010.
The short-term turnover and operating profit forecasts for the Business
Solutions unit have been downgraded substantially due to the continuously weak
market situation in Finland. In the long term, the segment's turnover and
operating profit are expected to grow significantly, but in September, EUR 7.2
million were written off the EUR 18.3-million goodwill allocated to the unit.
This one-off impairment loss has no cash impact.
During the review period, the Business Solutions unit's operating loss before
goodwill impairment increased to EUR 1.5 million (2008: operating profit EUR 1.2
million), 7.9 per cent of turnover. Operating loss including goodwill impairment
was EUR -8.7 million (2008: operating profit EUR 1.2 million), -45.3 per cent of
turnover.
The unit's turnover grew somewhat during the final quarter of 2009. This growth
is expected to continue and increase during the present financial period. The
unit is forecast to reach a positive result during the first quarter because of
the new rationalization program that was launched in January. The result is also
anticipated to improve further towards the end of the year.
TURNOVER
Consolidated turnover was EUR 67.1 million (2008: EUR 75.1 million), which is
10.7 per cent less than in the previous year. The Mobile Terminals & Software
segment accrued 55.6 per cent (2008: 45.0 per cent) of turnover, the Business
Solutions segment accrued 28.7 per cent (2008: 38.1 per cent) and the Media &
Communities segment accrued 15.6 per cent (2008: 16.9 per cent).
Turnover for the fourth quarter was EUR 19.5 million (2008: EUR 20.5 million),
which is 4.9 per cent less than in the previous year.
Turnover by segment
--------------------------------------------------------------------------------
| EUR 1,000 | 1-12 2009 | 1-12 2008 |
--------------------------------------------------------------------------------
| Mobile Terminals & Software | 37,310 | 33,830 |
--------------------------------------------------------------------------------
| Media & Communities | 10,488 | 12,679 |
--------------------------------------------------------------------------------
| Business Solutions | 19,261 | 28,606 |
--------------------------------------------------------------------------------
| Group total | 67,059 | 75,115 |
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FINANCIAL RESULT
Consolidated operating profit before the goodwill impairment in the Business
Solutions unit was EUR 3.2 million (2008: EUR 6.1 million). Consolidated
operating profit was EUR -4.0 million (2008: EUR 6.1 million). Profit before tax
was EUR -5.5 million (2008: EUR 4.7 million). Profit for the review period was
EUR -6.0 million (2008: EUR 3.5 million). Diluted earnings per share were EUR
-0.64 (2008: EUR 0.39). Diluted cash flow from operating activities was EUR 0.33
(2008: EUR 0.69) per share. The main reasons for the reduced operating profit
were the decreased billing ratio of the company's specialist staff at the
beginning of the review period and the goodwill depreciation in the Business
Solutions unit. The rationalization program that was launched in the first
quarter enabled the company to achieve savings during the review period,
particularly in terms of personnel and subcontracting expenses. These costs were
some EUR 5.1 million lower than in the previous year, despite an average staff
increase of 55 employees in comparison to the reference period. The construction
of the company's international operations network had a cost effect of some EUR
1.0 million during the review period.
In the fourth quarter, operating profit was EUR 1.7 million (2008: EUR 2.6
million). Profit before taxes was EUR 1.1 million (2008: EUR 2.0 million).
Profit for the fourth quarter was EUR 0.7 million (2008: EUR 1.5 million).
Fourth-quarter diluted earnings per share were EUR 0.08 (2008: EUR 0.17).
Diluted cash flow from operating activities in the fourth quarter was EUR 0.13
(2008: EUR 0.52) per share.
Operating profit by segment
--------------------------------------------------------------------------------
| EUR 1,000 | 1-12 2009 | 1-12 2008 |
--------------------------------------------------------------------------------
| Mobile Terminals & Software | 5,667 | 4,775 |
--------------------------------------------------------------------------------
| Media & Communities | 1,061 | 1,601 |
--------------------------------------------------------------------------------
| Business Solutions | - 8,731 | 1,240 |
--------------------------------------------------------------------------------
| Administration | -1,990 | -1,493 |
--------------------------------------------------------------------------------
| Group total | -3,993 | 6,123 |
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RATIONALIZATION PROGRAM
On 12 February 2009, Ixonos commenced co-operation negotiations with its
personnel in order to rationalize operations and improve profitability. The
negotiations were carried out on an accelerated schedule, and they were
completed on 10 March 2009. The negotiations concerned the Ixonos Group's
administration and support functions as well as the Group's sites in Finland. As
a result of the negotiations, the bonus program for the entire personnel was
abandoned for 2009 and the additional holiday pay for the 2008-2009 season was
reduced to a third of its normal amount. Additionally, the company's top
management waived one month's salary. As an outcome of the negotiations, 25
employees were dismissed from the Ixonos Group. The dismissals focused on
employees providing services for which the company does not expect sufficient
future demand and that are under increasing international price pressure. The
realized savings amount to some EUR 3 million per year from the second quarter
of this year.
The negotiations also resulted in an agreement that a maximum of 50 employees
could be laid off in April, May or June for not more than five months should
demand for the company's services fall because of the market situation. By the
end of June, the company issued notices of temporary lay-offs to 48 employees.
The lay-offs came into force during August. Laid-off employees were offered
personal protection against dismissal for six months beginning on the first day
of their lay-off.
RETURN ON CAPITAL
Consolidated return on equity (ROE) was -27.0 per cent (2008: 15.1 per cent).
Return on investment (ROI) was -9.4 per cent (2008: 15.9 per cent). The reduced
rates of return were mainly caused by the decreased result due to the goodwill
depreciation in the Business Solutions unit.
BALANCE SHEET AND FINANCING
The balance sheet total was EUR 52.1 million (2008: EUR 62.7 million). Equity
was EUR 19.2 million (2008: EUR 25.1 million). The equity ratio was 36.8 per
cent (2008: 40.1 per cent). The Group's liquid assets at the end of the review
period amounted to EUR 2.3 million (2008: EUR 2.9 million).
During the review period, the company increased its non-equity funding by EUR 8
million in connection with the payment of the additional acquisition price for
Cidercone Life-Cycle Solutions Oy (later Ixonos Outsourcing Services Ltd). Of
the increase in non-equity funding, EUR 4 million are non-current liabilities
and EUR 4 million are current liabilities. At the end of the review period, the
company had interest-bearing bank loans of EUR 15.3 million. These loans have
covenants attached to them; the covenants are based on the company's equity
ratio and on the proportion of interest-bearing bank loans (partly
interest-bearing net liabilities) to the 12-month rolling operating profit.
GOODWILL
On 31 December 2009, the consolidated balance sheet included EUR 22.8 million in
goodwill. This is EUR 9.4 million less than at the beginning of the year (31
December 2008: EUR 32.2 million). The goodwill has been decreased by the
third-quarter depreciation of goodwill allocated to the Business Solutions unit
as well as by the change in the additional acquisition price for Cidercone
Life-Cycle Solutions Oy (later Ixonos Outsourcing Services Ltd), a company
Ixonos acquired in 2007.
At the end of September and at the end of the financial period, the company
performed impairment testing on the goodwill distributed among the Group's
business segments. The difficult market situation had caused a heavy decrease in
the Business Solutions unit's turnover and operating profit for 2009. In
addition, the forecasts regarding the unit's turnover and operating profit in
the short term had weakened significantly. When goodwill was tested for
impairment at the end of September, those issues had a significant impact on the
Business Solutions unit's value, which is determined through cash flow analysis.
Although the company believes that in the long term, the unit will grow strongly
and its profitability will be restored, the decision was made to write EUR 7.2
million off the EUR 18.3-million goodwill associated with the unit. The
impairment loss has no cash impact. The goodwill impairment test at the end of
the financial period did not indicate any need for goodwill impairment.
On 31 December 2008, the interest-bearing current liabilities in the company's
balance sheet included a total of EUR 9.7 million in additional acquisition
costs for Cidercone Life-Cycle Solutions Oy. On 19 April 2009, the company paid
an additional acquisition price of EUR 7.8 million, which was based on Ixonos
Plc's view of the correct additional acquisition price.
CASH FLOW
During the review period, consolidated cash flow from operating activities was
EUR 3.1 million (2008: EUR 6.2 million). The change in cash flow from operating
activities was mainly due to the Group's reduced operating profit and to an
increase in tax paid.
PERSONNEL
The number of personnel averaged 985 (2008: 930) during the review period and
was 1 063 (2008: 957) at the end of the period. The rationalization action in
the Group's Finnish companies diminished the number of employees, but the
growing number of staff employed by companies in other countries, particularly
in China, nevertheless resulted in an overall increase. At the end of the review
period, companies in Finland had 748 employees, while Group companies in other
countries employed 315.
SHARES AND SHARE CAPITAL
Share turnover and price
During the review period, the highest price of the company's share was EUR 3.50
(2008: EUR 6.15) and the lowest EUR 1.70 (2008: EUR 2.00). The closing price on
31 December 2009 was EUR 2.72 (2008: EUR 2.23). The average price over the
review period was EUR 2.15 (2008: EUR 4.08). The number of shares traded during
the review period was 3,842,270 (2008: 3,985,490), which corresponds to 41.3 per
cent (2008: 43.0 per cent) of the total number of shares at the end of the
period. According to the closing price on 31 December 2009, the market value of
the company's shares was EUR 25,331,602 (2008: EUR 20,634,388).
Share capital
At the beginning of 2009, the company's registered share capital was EUR
370,123.56 and the number of shares was 9,253,089. During December 2008, a total
of 60,000 shares were subscribed for based on the 2002 stock option plan II. The
increase in share capital was entered into Finland's Trade Register on 6 March
2009. At the end of the review period, Ixonos' share capital was EUR 372,523.56,
and the total number of shares was 9,313,089.
Option plan 2006
Under the 2006 stock option plan, 140,000 options have been granted under AI;
140,000 options under AII; 60,000 options under BI and 60,000 options under BII.
Of the series A options, 15,000 AI options and 15,000 AII options have been
returned to the company based on the terms of the options. These options have
been converted to series B options in accordance with the option terms, and they
have been redistributed. The maximum number of shares that can be subscribed for
with outstanding options under options plan 2006 is 391,500, which is equivalent
to 4.2 per cent of the company's total shares. The subscription period for the
2006 AI options began on 1 October 2007, the subscription period for AII and BI
options began on 1 October 2008 and the subscription period for BII options
began on 1 October 2009. The subscription price is EUR 4.13 with AI and AII
options and EUR 4.92 with BI and BII options. The subscription period for the
2006 options ends on 31 December 2011.
Shareholders
The company had 3,059 shareholders on 31 December 2009 (2008: 2,853). Private
persons owned 57 per cent (2008: 59 per cent) and institutions 43 per cent
(2008: 41 per cent) of the shares. Foreign ownership was 8 per cent (2008: 2 per
cent) of the total number of shares.
Board authorizations
At the end of the review period, the Board of Directors had no valid
authorizations pertaining to the company's shares.
SUMMARY OF OTHER EVENTS IN 2009
Incorporation of the Business Solutions unit
In December 2009, Ixonos Plc informed that its Business Solutions unit will be
incorporated from 1 January 2010. The incorporation aims to simplify the Group's
legal structure, develop and rationalize operations and organize the company's
operations in Finland for better compatibility with requirements arising from
the nature of the operations and from customer relationships.
Formation of the Nomination Committee
The formation of Ixonos' Nomination Committee was announced on 2 December 2009.
Paul Ehrnrooth (representing Turret Oy Ab, which is Ixonos Plc's largest
shareholder) and Matti Jokinen (the natural person holding the most shares)
were elected to the Committee. The Board of Directors appointed Tero Laaksonen
(Chairman of the Board) and Esko Siik (Board member) as expert members of the
Nomination Committee.
Expansion of smartphone R&D services
On 18 September 2009, Ixonos Plc announced that it would diversify its
smartphone R&D services and set up a new next-generation smartphone design
centre in connection with its site in Jyväskylä. The centre extends the
company's services to cover smartphone mechanical engineering and electronics
design in addition to software development. In the new centre, Ixonos will
design smartphones, based on new, powerful chipsets from leading technology
suppliers and on the Android and Symbian operating systems, for international
device manufacturer customers and operator customers. When establishing the
centre, Ixonos also purchased the hardware of Nokia Corporation's mobile-phone
R&D laboratory in Jyväskylä.
Clarification of the organization structure
Changes in Ixonos' organization were announced on 13 August 2009. As
part of the rationalization program launched in spring, Ixonos' organizational
structure was firmed up from 1 September 2009. The Group's administrative and
support functions were unbundled from the Service Production organization into a
separate Administration unit. The Service Production unit consists of three
functions: Line Management, Service Lines and the Project Management Office.
These functions are responsible for providing the Group's specialist services.
Site network expansion
In April 2009, the company opened sites in Boston, USA and Copenhagen, Denmark.
The new sites are connected to the company's strategy of operating close to its
major customers. In June, Ixonos established a second Chinese service centre in
Chengdu. The launching of this site pertains to the company's strategy of
increased capacity in lower-cost countries. International operations were
expanded also in Germany and Great Britain.
Payment of the additional price related to the acquisition of Cidercone
Life-Cycle Solutions Oy
On 19 April 2009, Ixonos Plc paid EUR 7.8 million as additional acquisition
price in accordance with the share purchase agreement, signed on 4 September
2007, for Cidercone Life-Cycle Solutions Oy (later Ixonos Outsourcing Services
Ltd). Ixonos funded the payment of the additional acquisition price by
undertaking EUR 4 million in non-current liabilities and EUR 4 million in
current liabilities. The borrowings used for the funding do not add to the
interest-bearing liabilities in the balance sheet, as the entire additional
acquisition price had already been included under interest-bearing current
liabilities in accordance with IFRS provisions.
The amount paid is based on Ixonos Plc's view of the correct additional
acquisition price. Negotiations with the party that sold Cidercone Life-Cycle
Solutions Oy have not led to consensus on the amount of the additional
acquisition price. To solve the disagreement, arbitration has been initiated at
the Arbitration Institute of the Central Chamber of Commerce of Finland. In the
sellers' request for arbitration, they claim an additional acquisition price of
some EUR 8 million on top of the additional acquisition price already paid. The
company considers the supplementary demand unfounded.
Annual General Meeting on 19 March 2009
Ixonos Plc held its Annual General Meeting on 19 March 2009. The meeting
adopted the company's financial statements, including the consolidated
financial statements, for the financial period 1 January - 31 December 2008.
The meeting also resolved that no dividend would be paid for the financial
period. The meeting re-elected Board members Matti Järvinen, Tero Laaksonen,
Matti Makkonen, Esko Siik and Markku Toivanen,
and elected Peter Eriksson and Pertti Ervi as new Board members. At its own
meeting following the Annual General Meeting, the Board of Directors re-elected
Tero Laaksonen Chairman of the Board and elected Pertti Ervi Deputy Chairman.
Sharpened strategy
On 11 March 2009, Ixonos announced that it would sharpen
its strategy and focus its business operations on developing software for
products and services that utilize the potential of new mobile and Internet
technologies. Innovations, solution capability, quality, cost efficiency and
continuous development of a customer-oriented service attitude were designated
as the company's major development areas. In accordance with the sharpened
strategy, the company's business operations were organized into three segments:
Mobile Terminals & Software; Media & Communities; and Business Solutions.
Co-operation negotiations and rationalization action
On 12 February 2009, Ixonos commenced co-operation negotiations with its
personnel. The completion of the negotiations was announced on 10 March 2009.
The negotiations sought to rationalize the Group's administration and support
functions, boost the billing ratio of specialist staff and increase the
contribution of the international sites in proportion to the service output of
the entire Group. The co-operation negotiations applied to the Ixonos Group's
administration and support functions as well as to the Group's sites in
Finland. The negotiations resulted in economy and rationalization measures
including dismissal of 25 employees from the Ixonos Group.
New business unit: Media & Communities
On 29 January 2009, Ixonos announced a new business unit, Media & Communities,
which develops device-independent, Internet-based solutions for media,
entertainment and information delivery as well as for social network
communication. The unit's clientele consists of companies operating on the
international market and seeking new business opportunities and competitive
advantage through Internet services for consumers and partners. Timo Kaisla was
appointed Director of the Media & Communities unit and Vice President of Ixonos
Plc. He is based in Boston, USA.
EVENTS AFTER THE FINANCIAL PERIOD
The streamlining of Finnish operations continues
To better meet the challenges of the changed operating environment on
the Finnish market, Ixonos continues to streamline the operations of its
Business Solutions unit. On 12 January 2010, Ixonos commenced co-operation
negotiations in Ixonos Finland IS Ltd (nowadays Ixonos Business Solutions Ltd),
a company in the Ixonos Group. The rationalization aims to focus the company's
fields of technology, improving their alignment with business needs; to adapt
the company's operations to reduced demand in certain fields; and to improve the
profitability of the company's operations in Finland.
RISK MANAGEMENT AND NEAR-FUTURE UNCERTAINTY FACTORS
Ixonos Plc's risk management aims to ensure undisturbed continuity and
development of the company's operations, to back up the implementation of the
commercial targets set by the company and to support increasing the company's
value. Details on the risk management organization and process as well as on
recognized risks are presented on the company's website, at
www.ixonos.com/en/investors/risk_management.
Presently, the major uncertainty factors are related to the global financial
crisis and its potential ramifications. The general financial insecurity and
tightened credit conditions also influence corporate investments and propensity
to invest. In addition, the prevailing economic uncertainty affects the
information systems development investments of Ixonos' customers; such
investments may be put on hold, or decisions regarding them may be postponed.
Ixonos' acquisitions, its rapid growth in 2006-2008 and the upswing in its
project operations have increased the company's need for working capital. The
company manages this necessity by creating, together with financiers, adequate
buffers to ensure sufficient funds as well as by facilitating the circulation of
working capital. The company's balance sheet also includes a significant amount
of goodwill. Despite September's depreciation of goodwill allocated to the
Business Solutions unit, the company's goodwill may be impaired further should
either internal or external factors reduce the profit expectations of the
company or any of its cash-generating units. Goodwill will be tested during the
final quarter of the present year and, if necessary, at other times.
The company's financial agreements have covenants attached to them. A covenant
violation may increase the company's financing costs or result in a call for
swift partial or full repayment of non-equity loans. The biggest risks related
to covenant violations are associated with operating profit fluctuation due to
the market situation and with a potential need to increase the company's working
capital through non-equity funding. The company manages this risk by negotiating
with financiers and by maintaining readiness for various financing methods.
Ixonos has access to the cash funds its normal operations require.
Ixonos Plc has recognized EUR 7.8 million as an additional acquisition price in
accordance with the share purchase agreement, signed on 4 September 2007, for
Cidercone Life-Cycle Solutions Oy (later Ixonos Outsourcing Services Ltd). This
amount is based on Ixonos Plc's view of the additional acquisition price.
Negotiations with the selling party have not led to consensus on the amount of
the additional acquisition price. To solve the disagreement, arbitration has
been initiated at the Arbitration Institute of the Central Chamber of Commerce
of Finland. In the sellers' request for arbitration, they claim an additional
acquisition price of some EUR 8 million on top of the additional acquisition
price already paid. The arbitrator's decision is expected in spring 2010 at the
latest.
FUTURE PROSPECTS
The effects of the global financial crisis also strongly influence the ICT
service industry. Because of the economic uncertainty, the predictability of the
IT market remains very low. Gartner research indicates that the total trade
volume of the industry has decreased globally in 2009 and begun to increase
slightly in 2010. According to Market-Visio, Finland's IT market shrunk in 2009,
but is slowly beginning to grow in 2010.
Because of the general economic uncertainty, Ixonos' corporate customers are
still more cautious than normally in their software and information systems
investments as well as in commencing new projects. Services are also affected by
price pressure, particularly concerning international customer relationships.
Turnover for the first quarter of the current year is forecast to be higher than
in the previous year and operating profit for the first quarter is envisaged to
be positive. Turnover for the entire year is predicted to be higher than in the
previous year and clearly positive.
This year, the company aims to continue rationalizing its operations, developing
its services, expanding its service production in lower-cost countries and
maintaining the cash flow and profitability of its operations.
THE BOARD'S DIVIDEND PROPOSAL TO THE ANNUAL GENERAL MEETING
The parent company's loss for the financial period was EUR 4.489.157,11. The
total distributable assets on 31 December 2009 were EUR 15.218.625,47.
Considering the investments necessary for developing and internationalizing the
company's business operations, the Board of Directors proposes that the
distributable assets be carried over in shareholders' equity and that no
dividend for the financial period of 2009 be paid to shareholders.
Annual General Meeting
The Annual General Meeting of Ixonos Plc will be held in Helsinki from 9:00 on
Tuesday, 23 March 2010.
The annual report for 2009 will be published in week 12. Ixonos' printed annual
report for the period 1 January-31 December 2009 can be ordered through a form
on the company's website, by email to vuosikertomus@ixonos.com or by sending
postal mail to Ixonos Plc, Annual report, P.O. Box 284, 00811 Helsinki, Finland.
The annual report will also be available on the company's website, at
www.ixonos.com/en/investors.
NEXT REPORTS
The interim report for the period 1 January - 31 March 2010 will be published on
Wednesday, 28 April 2010. As announced in the bulletin of 21 January 2010,
subsequent interim reports will be published on Wednesday, 4 August 2010 (for
the period 1 January - 30 June 2010) and Wednesday, 27 October 2010 (for the
period 1 January - 30 September 2010).
IXONOS PLC
Board of Directors
For more information, please contact:
Ixonos Plc
Kari Happonen, President and CEO, tel. +358 400 700 761, email
kari.happonen@ixonos.com
Timo Leinonen, CFO, tel. +358 400 793 073, email timo.leinonen@ixonos.com
Distribution
NASDAQ OMX Helsinki
Main media
IXONOS GROUP
ABBREVIATED FINANCIAL STATEMENTS 1 JANUARY - 31 DECEMBER 2009
Accounting policies
This financial statement release has been prepared in accordance with IAS 34
(Interim Financial Reporting) and the accounting principles for the annual
financial statement of 31 December 2008.
Since 1 January 2009, the Group has applied the following new or revised
standards: IFRS 8 (Operating Segments) and IAS 1 (Presentation of Financial
Statements).
Preparing the financial statements in accordance with IFRS requires Ixonos'
management to make estimates and assumptions affecting the amounts of assets and
liabilities on the balance sheet date as well as the amounts of income and
expenses for the financial period. In addition, judgment must be used in
applying the accounting policies. As the estimates and assumptions are based on
views at the time of the financial statement release, they may contain risks and
uncertainty factors. Actual results may differ from estimates and assumptions.
The figures in the income statement and in the balance sheet are consolidated.
All Group companies are included in the consolidated balance sheet. The original
financial statement release is in Finnish; the financial statement release in
English is a translation.
As the figures in the report have been rounded, sums of individual figures may
not equal the sums presented. The financial statement bulletin is unaudited.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| | 1.1.-31. | 1.1.-31 | Change, | 1.10.- | 1.10.- |
| | 12.09 | .12.08 | per cent | 31.12.09 | 31.12.08 |
| | | | | | |
--------------------------------------------------------------------------------
| Turnover | 67,059 | 75,115 | -10.7 | 19,472 | 20,475 |
--------------------------------------------------------------------------------
| Operating costs | -63,853 | -68,992 | -7.4 | -17,758 | -17,922 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 3,207 | 6,123 | -47.6 | 1,715 | 2,553 |
| BEFORE GOODWILL | | | | | |
| IMPAIRMENT | | | | | |
--------------------------------------------------------------------------------
| GOODWILL | -7,200 | 0 | 0 | 0 | 0 |
| IMPAIRMENT | | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | -3,993 | 6,123 | -165.2 | 1,715 | 2,553 |
--------------------------------------------------------------------------------
| Financial income | -1,471 | -1,406 | 4.6 | -654 | -521 |
| and costs | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | -5,464 | 4,717 | -215.8 | 1,061 | 2,032 |
--------------------------------------------------------------------------------
| Income tax | -523 | -1,203 | -56.6 | -347 | -486 |
--------------------------------------------------------------------------------
| PROFIT FOR THE | -5,987 | 3,514 | -270.4 | 714 | 1,546 |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
STATEMENT OF COMPREHENSIVE INCOME, EUR 1,000
--------------------------------------------------------------------------------
| Profit for the | -5,987 | 3,514 | -270.4 | 714 | 1,546 |
| period | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | |
| comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Change in | 5 | -16 | 129.6 | 5 | -18 |
| translation | | | | | |
| difference | | | | | |
--------------------------------------------------------------------------------
| TOTAL | -5,982 | 3,498 | -271.0 | 719 | 1,528 |
| COMPREHENSIVE | | | | | |
| INCOME FOR THE | | | | | |
| PERIOD | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, EUR 1,000
--------------------------------------------------------------------------------
| ASSETS | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Goodwill | 22,826 | 32,195 |
--------------------------------------------------------------------------------
| Intangible assets | 5,061 | 6,632 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 3,942 | 3,147 |
--------------------------------------------------------------------------------
| Deferred tax assets | 233 | 41 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 110 | 110 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 32,172 | 42,125 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 17,691 | 17,681 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2,278 | 2,913 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 19,968 | 20,594 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 52,140 | 62,719 |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | | |
--------------------------------------------------------------------------------
| Share capital | 373 | 370 |
--------------------------------------------------------------------------------
| Share premium reserve | 219 | 121 |
--------------------------------------------------------------------------------
| Share issue | 0 | 100 |
--------------------------------------------------------------------------------
| Invested non-restricted equity fund | 14,808 | 14,808 |
--------------------------------------------------------------------------------
| Retained earnings | 9,764 | 6,221 |
--------------------------------------------------------------------------------
| Profit for the period | -5,987 | 3,514 |
--------------------------------------------------------------------------------
| TOTAL SHAREHOLDERS' EQUITY | 19,177 | 25,135 |
--------------------------------------------------------------------------------
| LIABILITIES | | |
--------------------------------------------------------------------------------
| Non-current liabilities | 10,543 | 10,532 |
--------------------------------------------------------------------------------
| Current liabilities | 22,420 | 27,052 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 32,963 | 37,584 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 52,140 | 62,719 |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY, EUR 1,000
--------------------------------------------------------------------------------
| | Share | Share | Share | Investe | Translat | Retaine | Total |
| | capit | premiu | issue | d | ion | d | |
| | al | m | | non-res | differen | earning | |
| | | reserv | | tricted | ce | s | |
| | | e | | equity | | | |
| | | | | fund | | | |
--------------------------------------------------------------------------------
| Shareholde | 355 | 4,512 | 77 | 8,869 | 0 | 7,734 | 21,548 |
| rs' equity | | | | | | | |
| at | | | | | | | |
| 1 January | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
| Share-base | | | | | | 106 | 106 |
| d | | | | | | | |
| remunerati | | | | | | | |
| on expense | | | | | | | |
--------------------------------------------------------------------------------
| Transfer | | -4,512 | | 4,512 | | | 0 |
| from the | | | | | | | |
| premium | | | | | | | |
| fund to | | | | | | | |
| the | | | | | | | |
| invested | | | | | | | |
| non-restri | | | | | | | |
| cted | | | | | | | |
| equity | | | | | | | |
| fund | | | | | | | |
--------------------------------------------------------------------------------
| Share | 15 | 121 | 23 | 1,428 | | | 1,587 |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -1,604 | -1,604 |
--------------------------------------------------------------------------------
| Comprehens | | | | | -16 | 3,514 | 3,498 |
| ive income | | | | | | | |
| for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Shareholde | 370 | 121 | 100 | 14,808 | -16 | 9,752 | 25,135 |
| rs' equity | | | | | | | |
| at | | | | | | | |
| 31 Decembe | | | | | | | |
| r 2008 | | | | | | | |
--------------------------------------------------------------------------------
| Shareholde | 370 | 121 | 100 | 14,808 | -16 | 9,752 | 25,135 |
| rs' equity | | | | | | | |
| at | | | | | | | |
| 1 January | | | | | | | |
| 2009 | | | | | | | |
--------------------------------------------------------------------------------
| Share-base | | | | | | 25 | 25 |
| d | | | | | | | |
| remunerati | | | | | | | |
| on expense | | | | | | | |
--------------------------------------------------------------------------------
| Share | 2 | 98 | -100 | | | | 0 |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | | 0 |
--------------------------------------------------------------------------------
| Comprehens | | | | | 5 | -5,987 | -5,982 |
| ive income | | | | | | | |
| for the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Shareholde | 373 | 219 | 0 | 14,808 | -11 | 3,789 | 19,177 |
| rs' equity | | | | | | | |
| at | | | | | | | |
| 31 Decembe | | | | | | | |
| r 2009 | | | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- |
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | |
--------------------------------------------------------------------------------
| Profit for the period | -5,987 | 3,514 |
--------------------------------------------------------------------------------
| Adjustments to cash flow from operating | | |
| activities | | |
--------------------------------------------------------------------------------
| Tax | 523 | 1,203 |
--------------------------------------------------------------------------------
| Depreciation and impairment | 3,157 | 2,464 |
--------------------------------------------------------------------------------
| Change in provisions | 0 | -93 |
--------------------------------------------------------------------------------
| Finance income and costs | 1,471 | 1,406 |
--------------------------------------------------------------------------------
| Goodwill impairment | 7,200 | 0 |
--------------------------------------------------------------------------------
| Other adjustments | 93 | 98 |
--------------------------------------------------------------------------------
| Cash flow from operating activities before | 6,457 | 8,593 |
| change in working capital | | |
--------------------------------------------------------------------------------
| Change in working capital | -314 | -665 |
--------------------------------------------------------------------------------
| Interest received | 25 | 165 |
--------------------------------------------------------------------------------
| Interest paid | -1,360 | -596 |
--------------------------------------------------------------------------------
| Gains from sales of fixed assets | 5 | -21 |
--------------------------------------------------------------------------------
| Tax paid | -1,709 | -1,229 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities | 3,103 | 6,246 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | |
--------------------------------------------------------------------------------
| Investments in tangible and intangible | -1,369 | -4,556 |
| assets | | |
--------------------------------------------------------------------------------
| Dividends received | 2 | 1 |
--------------------------------------------------------------------------------
| Change in financial assets | 0 | 143 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | -7,486 | -3,109 |
--------------------------------------------------------------------------------
| Net cash flow from investment activities | -8,853 | -7,521 |
--------------------------------------------------------------------------------
| Net cash flow before financing | -5,750 | -1,274 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | | |
--------------------------------------------------------------------------------
| Dividends paid | 0 | -1,604 |
--------------------------------------------------------------------------------
| Increase in long-term borrowings | 4,000 | 6,417 |
--------------------------------------------------------------------------------
| Repayment of long-term borrowings | -2,425 | -3,400 |
--------------------------------------------------------------------------------
| Increase in short-term borrowings | 4,563 | 2,787 |
--------------------------------------------------------------------------------
| Repayment of short-term borrowings | -1,024 | -2,490 |
--------------------------------------------------------------------------------
| Share issue | 0 | 146 |
--------------------------------------------------------------------------------
| Net cash flow from financing activities | 5,115 | 1,856 |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -635 | 582 |
--------------------------------------------------------------------------------
| Liquid assets at start of period | 2,913 | 2,331 |
--------------------------------------------------------------------------------
| Liquid assets at end of period | 2,278 | 2,913 |
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT, QUARTERLY, EUR 1,000
--------------------------------------------------------------------------------
| | Q4/2009 | Q3/200 | Q2/2009 | Q1/2009 | Q4/2008 |
| | 1.10.09 | 9 | 1.4.09- | 1.1.09- | 1.10.08- |
| | - | 1.7.09 | 30.6.09 | 31.3.09 | 31.12.08 |
| | 31.12.0 | - | | | |
| | 9 | 30.9.0 | | | |
| | | 9 | | | |
--------------------------------------------------------------------------------
| Turnover | 19,472 | 13,840 | 16,304 | 17,443 | 20,475 |
--------------------------------------------------------------------------------
| Operating costs | -17,758 | -13,38 | -15,257 | -17,456 | -17,922 |
| | | 2 | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT BEFORE | 1,715 | 458 | 1,046 | -13 | 2,553 |
| GOODWILL IMPAIRMENT | | | | | |
--------------------------------------------------------------------------------
| GOODWILL IMPAIRMENT | 0 | -7,200 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 1,715 | -6,742 | 1,046 | -13 | 2,553 |
--------------------------------------------------------------------------------
| Finance income and costs | -654 | -266 | -228 | -323 | -521 |
--------------------------------------------------------------------------------
| Profit before tax | 1,061 | -7,008 | 818 | -336 | 2,032 |
--------------------------------------------------------------------------------
| Income tax | -347 | -50 | -229 | 104 | -486 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 714 | -7,058 | 589 | -232 | 1,546 |
--------------------------------------------------------------------------------
SEGMENT REPORT
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- |
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Turnover by segment | | |
--------------------------------------------------------------------------------
| Mobile Terminals & Software | 37,310 | 33,830 |
--------------------------------------------------------------------------------
| Media & Communities | 10,488 | 12,679 |
--------------------------------------------------------------------------------
| Business Solutions | 19,261 | 28,606 |
--------------------------------------------------------------------------------
| Total turnover | 67,059 | 75,115 |
--------------------------------------------------------------------------------
| Operating profit by segment | | |
--------------------------------------------------------------------------------
| Mobile Terminals & Software | 5,667 | 4,775 |
--------------------------------------------------------------------------------
| Media & Communities | 1,061 | 1,601 |
--------------------------------------------------------------------------------
| Business Solutions | -8,731 | 1,240 |
--------------------------------------------------------------------------------
| Administration | -1,990 | -1,493 |
--------------------------------------------------------------------------------
| Total operating profit | -3,993 | 6,123 |
--------------------------------------------------------------------------------
| Operating profit, per cent of turnover | -6.0 | 8.2 |
--------------------------------------------------------------------------------
| Interest and finance income | -1,471 | -1,406 |
--------------------------------------------------------------------------------
| Profit before tax | -5,464 | 4,717 |
--------------------------------------------------------------------------------
| Tax | -523 | -1,203 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | -5,987 | 3,514 |
--------------------------------------------------------------------------------
| Assets by segment | | |
--------------------------------------------------------------------------------
| Mobile Terminals & Software | 16,898 | 15,942 |
--------------------------------------------------------------------------------
| Media & Communities | 9,313 | 10,232 |
--------------------------------------------------------------------------------
| Business Solutions | 18,335 | 30,296 |
--------------------------------------------------------------------------------
| Others | 7,593 | 6,248 |
--------------------------------------------------------------------------------
| Total assets | 52,140 | 62,719 |
--------------------------------------------------------------------------------
CHANGES IN FIXED ASSETS, EUR 1,000
--------------------------------------------------------------------------------
| | Goodwil | Intangi | Property, | Other | Total |
| | l | ble | plant and | tangibl | |
| | | assets | equipment | e | |
| | | | | assets | |
--------------------------------------------------------------------------------
| Book value at 1 January | 21,067 | 6,282 | 1,332 | 110 | 28,791 |
| 2008 | | | | | |
--------------------------------------------------------------------------------
| Additions | 11,128 | 2,377 | 2,774 | | 16,279 |
--------------------------------------------------------------------------------
| Disposals | | -93 | -429 | | -522 |
--------------------------------------------------------------------------------
| Depreciation and | | -1,934 | -530 | | -2,464 |
| amortization during the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Book value at 31 | 32,195 | 6,632 | 3,147 | 110 | 42,084 |
| December 2008 | | | | | |
--------------------------------------------------------------------------------
| Book value at 1 January | 32,195 | 6,632 | 3,147 | 110 | 42,084 |
| 2009 | | | | | |
--------------------------------------------------------------------------------
| Additions | | 536 | 1,864 | | 2,400 |
--------------------------------------------------------------------------------
| Disposals | -2,169 | | -19 | | -2,188 |
--------------------------------------------------------------------------------
| Impairment | -7,200 | | | | -7,200 |
--------------------------------------------------------------------------------
| Depreciation and | | -2,107 | -1,050 | | -3,158 |
| amortization during the | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Book value at 31 | 22,826 | 5,061 | 3,942 | 110 | 31,939 |
| December 2009 | | | | | |
--------------------------------------------------------------------------------
FINANCIAL RATIOS
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- |
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Earnings per share, diluted, EUR | -0.64 | 0.39 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.64 | 0.39 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 2.06 | 2.72 |
--------------------------------------------------------------------------------
| Operating cash flow per share, diluted, | 0.33 | 0.69 |
| EUR | | |
--------------------------------------------------------------------------------
| Return on investment, per cent | -9.4 | 15.9 |
--------------------------------------------------------------------------------
| Return on equity, per cent | -27.0 | 15.1 |
--------------------------------------------------------------------------------
| Operating profit / turnover, per cent | -6.0 | 8.2 |
--------------------------------------------------------------------------------
| Net gearing | 81.4 | 74.8 |
--------------------------------------------------------------------------------
OTHER INFORMATION
--------------------------------------------------------------------------------
| | 1.1.- | 1.1.- |
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| PERSONNEL | 985 | 930 |
| Average number of personnel | | |
--------------------------------------------------------------------------------
| Personnel at the end of the period | 1,063 | 957 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COMMITMENTS, EUR 1,000 | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Collateral for own commitments | | |
--------------------------------------------------------------------------------
| Corporate mortgages | 9,900 | 9,800 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing and other rental commitments | | |
--------------------------------------------------------------------------------
| Falling due within 1 year | 4,130 | 3,968 |
--------------------------------------------------------------------------------
| Falling due within 1-5 years | 7,515 | 8,365 |
--------------------------------------------------------------------------------
| Falling due after 5 years | 0 | 0 |
--------------------------------------------------------------------------------
| Total | 11,645 | 12,332 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal value of interest rate swap | | |
| agreement | | |
--------------------------------------------------------------------------------
| Falling due within 1 year | 2,579 | 0 |
--------------------------------------------------------------------------------
| Falling due within 1-5 years | 3,321 | 6,443 |
--------------------------------------------------------------------------------
| Falling due after 5 years | | |
--------------------------------------------------------------------------------
| Total | 5,900 | 6,443 |
--------------------------------------------------------------------------------
| Fair value | -172 | -141 |
--------------------------------------------------------------------------------
CALCULATION OF KEY FIGURES
Diluted earnings per share = profit for the period / number of shares, adjusted
for issues and dilution, average
Earnings per share = profit for the period / number of shares, adjusted for
issues, average
Shareholders' equity per share = shareholders' equity / number of shares,
undiluted, on the closing date
Cash flow from operating activities, per share, diluted = net cash flow from
operating activities / number of shares, adjusted for issues and dilution,
average
Return on investment (ROI) = (profit before taxes + interest + other financial
expenses) / balance sheet total - non-interest-bearing liabilities, average x
100
Return on equity (ROE) = net profit / shareholders' equity, average x 100
Gearing = interest-bearing liabilities - liquid assets / shareholders' equity x
100
Financial statement release for the period 1 January - 31 December 2009
| Source: Digitalist Group Oyj
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