FIM Group Corporation STOCK EXCHANGE RELEASE July 31, 2007
FIM GROUP'S JANUARY-JUNE 2007 INTERIM REPORT
FIM GROUP CORPORATION'S PROFITABILITY IMPROVED CLEARLY IN Q2
Key figures for April-June 2007 (2006)
Net sales: EUR 28.2 million (21.8)
Growth in net sales: 29%
Operating profit: EUR 9.2 million (5.6)
Operating profit margin: 32% (26%)
Earnings per share: EUR 0.17 (0.10)
Key figures for January-June 2007 (2006)
Net sales: EUR 51.3 million (43.1)
Growth in net sales: 19% (63%)
Operating profit: EUR 12.7 million (11.8)
Operating profit margin: 25% (27%)
Net profit: EUR 10.8 million (8.3)
Earnings per share: EUR 0.25 (0.21)
OPERATING ENVIRONMENT
Share prices showed strong momentum in the second quarter. The world equity
index rose by 6.7 percent in euro terms in January-June 2007. In the first
quarter the increase was only 1.4 percent whereas in the second quarter the
growth accelerated to 5.2 percent. The rise in share prices was even stronger
than this in the emerging markets in the second quarter. The emerging market's
equities index rose in the second quarter by 12.5 percent against a rise of
only 0.6 percent in the first quarter. The world's emerging markets index rose
altogether by 13.2 percent in January-June. The strong share price trend on the
OMX Helsinki Stock Exchange has held up well. From the beginning of the year to
the end of June, the OMX Helsinki Cap Index rose by 18.0% in euro terms.
In the Eurozone, economic growth was strong in the first half of the year.
Unemployment has been falling steadily, and economic forecasts have been
revised upward. In the equity markets, the positive outlook has translated into
a strong rise in share prices. In the fixed income market, there was a
continuation of the upward trend in long bonds that got under way in the first
part of the year. The corporate bond market was robust all the way up to just
before the summer. Strong economic growth in the Eurozone bolstered the euro's
exchange rate against the United States dollar.
Trade volume continued to rise strongly on the OMX Helsinki Stock Exchange. In
the H1, trade volume grew by 28 percent compared with the same period of 2006
and was approximately EUR 196 billion (153). The average intra-day volume was
about EUR 1.6 billion.
Demand in the structured products market has remained very strong.
INCOME AND FINANCIAL PERFORMANCE IN JANUARY-JUNE 2007
(comparison figures are for January-June 2006)
FIM Group's total income from investment services in January-June grew by 19
percent to EUR 51.3 million (EUR 43.1 million in 2006).
FIM has changed its financial reporting from the beginning of 2007. Segment
reporting covers the business areas FIM Asset Management and FIM Brokerage. FIM
Investment Banking is reported as part of the group Others. The sales of
structured products were moved from investment banking division to FIM Asset
Management in the beginning of the year. Comparison figures have been adjusted
to the new reporting structure.
FIM Asset Management's total income in January-June grew by 22 percent to EUR
37.2 million (30.5). FIM Brokerage's total income in the report period grew by
17 percent to EUR 16.1 million (13.8).
The Group's operating profit in the report period was EUR 12.7 million and the
operating profit margin 25 per cent. Due to the Glitnir transaction, the option
costs of EUR 2.2 million for FIM's both option series that were originally
scheduled for 4 years, were booked in the first quarter of 2007. Before this
non-recurring booking the operating profit for the review period would have
been EUR 14.9 million and operating profit margin 29 %.
The Group's H1 expenses, excluding fee and interest expenses, came to EUR 31.8
million (26.3). Expenses increased by 21 percent compared with the same period
of 2006. The greatest single factor behind the growth in expenses was the
effect of the Glitnir acquisition - announced in February - on the recognition
of stock option expenses.
The Group's taxes in the January-June period amounted to EUR 1.9 million (3.6).
Profit in January-June was EUR 10.8 million (8.3).
Earnings per share for the review period were EUR 0.25 (0.21).
BALANCE SHEET
Total assets as of June 30, 2007 stood at EUR 170.5 million (130.3). Total
assets as of December 31, 2006 stood at EUR 142.4 million.
The Group's shareholders' equity at the end of the fiscal period was EUR 107.3
million (65.7), or EUR 2.52 per share (1.69). The annualized return on equity
was 20.8 percent (33.7).
The Group's equity ratio was 62.9 percent (50.4) and the Tier 1 ratio (BASEL
II) was 32.8 percent.
FIM's derivatives exposure at the end of the reporting period consisted mainly
of equity derivatives held for trading. The value of the underlying assets of
equity derivatives was EUR 54.3 million and they had a fair value of EUR -1.4
million. In addition, receivables denominated in foreign currency were hedged
with forward exchange contracts, the underlying assets of which had a value of
EUR 20.2 million, their fair value being EUR 0.0 million.
INVESTMENTS
The Group's investments in tangible and intangible assets (including goodwill)
during the review period came to EUR 2.0 million (14,3).
PERSONNEL
The number of employees has grown greatly in recent years. In January-June
2007, the Group had an average payroll of 300 employees (247). The number of
employees at the end of June was 323 (271).
At the end of the review period, the personnel were divided by business area as
follows: FIM Asset Management, 156 persons, FIM Brokerage, 106 persons. The
number of employees working in Finland was 288, with 32 employees in Russia and
3 in Sweden. Personnel figures are stated converted to full-time staff.
FIM GROUP ACQUIRED BY GLITNIR BANKI HF
In accordance with an agreement made by Glitnir and FIM Group Corporation's 11
largest shareholders on February 5, 2007, Glitnir banki hf purchased 68.1
percent of FIM Group Corporation's shares in transactions completed on March
16, 2007. The public tender offer Glitnir made for the shares and option
warrants issued by FIM ended on May 16, 2007. Glitnir announced on May 25,
2007, that its holding of FIM's shares and voting rights had exceeded 98
percent. Glitnir has initiated the arbitration procedure under the Companies
Act in order to redeem the remaining FIM shares. The redemption price offered
by Glitnir is EUR 8.00 per share.
FIM APPLIES FOR A DELISTING
On June 1, 2007, the Board of Directors of FIM Group Corporation submitted to
the Helsinki Stock Exchange an application for the cessation of trading in the
FIM share and delisting of the share from the Main List of the Helsinki Stock
Exchange. The delisting of FIM's share will be carried out after Glitnir has
received title to all of FIM's shares and the Helsinki Stock Exchange has
decided to delist the share.
RESOLUTIONS OF FIM GROUP CORPORATION'S ANNUAL GENERAL MEETING
FIM Group Corporation's Annual General Meeting, held on March 15, 2007, adopted
the 2006 financial statements and discharged the members of the Board of
Directors and the President and CEO from liability. The Annual General Meeting
decided on the payment of dividends, the composition of the Board of Directors
and the election of the auditor.
It was resolved that a dividend of EUR 0.14 per share would be paid as proposed
by the Board of Directors, to a total of EUR 5.97 million. The dividend was
paid out on March 27, 2007.
The following persons were re-elected as members of the Board of Directors:
Niklas Geust, Vesa Honkanen, Antti Kivimaa, Risto Perttunen and Jukka Ylitalo.
However, the term of service of these members of the Board of Directors ended
when Glitnir banki hf. acquired 68.11 percent of FIM Group Corporation's shares
and voting rights. Due to this change of ownership, the Annual General Meeting
elected Bjarni Ármannsson, Frank Ove Reite and Sverrir Örn Thorvaldsson to the
Board of Directors as representatives of Glitnir banki hf. as well as re-
elected Niklas Geust and Vesa Honkanen. Their term of service started from the
transfer of ownership on March 21, 2007. At its organization meeting on March
22, 2007, the Board of Directors elected Frank Ove Reite as the Chairman.
After the change in the ownership, the majority of the members of the company's
Board of Directors do not meet the criteria of independence as set forth in the
Corporate Governance recommendation of the Helsinki Stock Exchange, the Central
Chamber of Commerce of Finland and the Confederation of Finnish Industries EK.
The Authorized Public Accountants Kim Karhu and Kaija Leppinen were re-elected
as the company's auditors. PricewaterhouseCoopers Oy, Authorized Public
Accountants, was elected as the deputy auditor, with Authorized Public
Accountant Jarmo Álen as chief auditor.
SHARES AND SHARE CAPITAL
FIM Group Corporation's share capital as of June 30, 2007, was EUR 2,813,505.
The company's issued shares consist of one share class that is divided into a
total of 42,683,690 shares.
The trade volume of the FIM Group Corporation share on the OMX Helsinki Stock
Exchange in the January-June 2007 period was EUR 460.0 million and 53.7 million
shares. Trade volume includes the block trade carried out on March 16, 2007, in
which 29,071,813 shares were transferred to Glitnir banki hf. During the report
period the share registered a high of EUR 8.30 in February and a low of EUR
5.86 in January. The volume-weighted average share price was EUR 8.00. At the
end of the reporting period on June 30, 2007, the share price was EUR 8.00 and
the company had a market capitalization of EUR 341.5 million. The company had
in its possession a total of 36,000 treasury shares as of June 30, 2007, and
they had a market value of EUR 0.3 million. The share of all shares and votes
was below 0.1 per cent.
RISK MANAGEMENT
Risk management is an essential part of internal control, and its aim is to
reduce the probability of unforeseeable losses or a threat to the reputation of
FIM. Risk management covers all material risks connected with FIM's operations,
such as operational risks, market risks, liquidity and financing risks, credit
risks and strategic risks.
The management of operational risks is part of the FIM Group's overall risk
management, and it generally involves minimizing risks. In addition to
preventive work that is carried on to avert operational risks, the FIM Group
seeks to maintain sufficient insurance coverage for the purpose of
compensating, say, loss or damage resulting from malfeasance, intrusion into
information systems, or other criminal actions. Continuity plans have been put
in place to cope with major disturbances to operations.
Limits and other operational instructions have been set for the taking of
market risks, bearing in mind the sufficiency of equity and capital adequacy
planning within the FIM Group.
To support liquidity management, FIM Securities Ltd has the possibility, in the
form of credit extended by customers (so-called cash account customers), to
improve its liquidity, and, additionally, the company has credit facilities
that have been agreed with banks and can be drawn down as the need arises. In
practice, despite the increase in trading, it has been possible to attend to
liquidity management mainly without having recourse to bank credit facilities.
Across FIM units, the contractual counterparties in accordance with the adopted
definition of credit risk are customers and other trading counterparties as
well as other partners in cooperation. In line with the lending policy approved
by the Board of Directors, FIM carries on only lending activities in which risk-
taking can be limited to a small amount and the risk is manageable. Lending is
primarily to private individuals.
NEAR-TERM OUTLOOK
The trend in FIM's operations during the first months of 2007 has proceeded as
expected and the growth in full-year net sales is expected to reach the long-
term growth target of 20 percent. Full-year operating profit is estimated to
exceed that reported for 2006.
Cyclical sensitivity is typical of investment service operations and FIM's
business operations are also characterized by a marked dependence on the trend
in the global securities markets. In the short term, performance fees in
discretionary asset management are the type of income that is the most
sensitive of all to both positive and negative moves in the market.
FIM submitted a license application for banking operations to the Finnish
Financial Supervision Authority during the review period. The retail banking
operations are scheduled to commence during 2007.
REVIEW OF THE BUSINESS UNITS
FIM Asset Management
The sales of structured products were moved from investment banking division to
FIM Asset Management in the beginning of the year. Comparison figures have been
adjusted to the new reporting structure.
Key figures (million euros except for personnel and client figures)
4- 4- Change 1-6/07 1-6/06 Change 1-
6/07 6/06 12/06
Total income 22,1 16,0 38 % 37,2 30,5 22 % 57,5
Operating profit 9,6 5,8 66 % 12,9 11,3 14 % 19,9
Operating margin, % 44 % 36 % 35 % 37 % 35 %
Personnel, average 147 115 28 % 142 109 30 % 120
Assets under 3 503 2 695 30 % 2 966
management (end of
period)
Assets under 2 309 1 682 37 % 1 865
management, mutual
funds (end of
period)
Assets under 1 397 1 111 26 % 1 297
management, equity
funds (end of
period)
Market share, 3,3 % 3,9 % 3,1 %
mutual funds (end
of period)
Market share, 5,7 % 7,8 % 6,0 %
equity funds (end
of period)
Net subscription, 218 -98 NA 242 2 NA -70
mutual funds
Net subscription, 29 -188 NA -52 -152 NA -170
equity funds
Number of unit 53 783 50 253 7 % 55 113
holders, mutual
funds (end of
period)
Number of clients 2 417 2 443 -1 % 2 444
in discretionary
asset management
and discretionary
fund management
(end of period)
Q2 2007 compared with Q2 2006
FIM Asset Management's total income in the second quarter was EUR 22.1 million
(16.0). The growth in total income compared to the corresponding period in 2006
was 38 percent.
Operating profit in April-June was EUR 9.6 million (5.8). The good market
situation as well as the booking of discretionary asset management's
performance based fees from the H1 in the second quarter had a positive impact
on profitability. Operating profit was up 66 percent on the same period a year
ago. FIM Asset Management's average payroll of 147 employees grew by 28% on the
same period of last year (115).
Q1-Q2 2007 compared with Q1-Q2 2006
FIM Asset Management's total income in January-June was EUR 37.2 million
(30.5). The growth in total income compared to the corresponding period in 2006
was 22 percent.
Operating profit in the review period was EUR 12.9 million (11.3). FIM Asset
Management's average payroll 142 grew by 30 percent on the same period of last
year (109). At the end of the reporting period the payroll was 156.
The amount of assets under management at the end of the review period was EUR
3.5 billion which is 30 percent more than year ago. The amount of assets under
management has risen by EUR 0.5 billion since the end of 2006. Net
subscriptions to mutual funds amounted to EUR 242 million in the report period
(2).
Of FIM's 12 Morningstar-rated balanced and equity funds, 5 funds had five stars
at the end of the year. During the reporting period 64 percent of FIM's mutual
funds outperformed their benchmark index. Within discretionary asset management
and fund management, successful allocation decisions generally led to a return
that exceeded the global equity markets.
Demand for structured products has been very strong. During the first half of
the year FIM sold structured products with mostly at least a five-year maturity
for EUR 189 million (141). Sales of structured products were up 34 percent on
the corresponding period of the previous year.
Preparations for FIM's investment and asset management operations in Russia are
progressing in line with plans and operations of the funds FIM Russian
Equities, FIM Russian Portfolio and FIM Russian Bonds began during the second
quarter of 2007. The funds are marketed primarily in Russia but are also open
to international customers.
Expansion of operations in Sweden has been continued strong. In the reporting
period, the Stockholm branch office concluded several new distribution
agreements and the first major institutional deal. Cooperation with existing
partners was deepened and expanded. Sales development has been positive and the
amount of assets under management has been increasing. The Stockholm branch
office has also started selling FIM funds in Norway during Q2 trough an
established cooperation with Norway's largest insurance company Vital
Forsikring.
Collaboration with Glitir's asset management services has been started during
the report period. Toward the end of the year, this collaboration is expected
to open new sales opportunities to FIM's products on the international markets
as well as synergies in offering asset management services. As part of this
development effort, the mutual fund business is presently preparing the dual-
registration of the majority of FIM's mutual funds in Luxembourg.
FIM Brokerage
Key figures (EUR million except for personnel)
4- 4- Change 1- 1- Change 1-
6/07 6/06 6/07 6/06 12/06
Total income 7,5 6,7 13 % 16,1 13,8 17 % 27,7
Operating profit 1,4 0,3 NA 2,4 1,7 42 % 2,4
Operating margin, % 18 % 4 % 15 % 12 % 9 %
Personnel, average 105 97 8 % 102 93 10 % 96
Market share, 3,2 % 2,8 % 3,6 % 2,9 % 3,0 %
turnover in euros
(OMX Helsinki)
Market share, number 3,0 % 3,3 % 3,2 % 3,4 % 3,4 %
of transactions (OMX
Helsinki)
Q2 2007 compared with Q2 2006
FIM Brokerage's total income in the second quarter came to EUR 7.5 million
(6.7). Total income was up 13 percent on the corresponding period of the
previous year.
FIM Brokerage's operating profit for the April-June period was EUR 1.4 million
(0.3). Operating profit increased due to good market environment. On the other
hand, the Q2 2006 operating profit was burdened by major investments in
personnel resources in the Russian brokerage operations.
FIM Brokerage's average payroll 105 grew by 8 percent on the same period of
last year (97).
Q1-Q2 2007 compared with Q1-Q2 2006
FIM Brokerage's total income in January-June came to EUR 16.1 million (13.8).
Total income was up 17 percent on the corresponding period of the previous
year.
FIM Brokerage's operating profit was EUR 2.4 million (1.7). The average payroll
102 grew by 10 percent on the same period of last year (93). At the end of the
reporting period the payroll was 106.
FIM's market share of turnover in euros on the OMX Helsinki Stock Exchange was
3.6 percent, while market share in terms of number of transactions was 3.2
percent. In terms of FIM's and Glitnir's combined turnover in euros, their
securities brokerage units were the second largest broker on the OMX Helsinki
Stock Exchange in H1. Total market share was 6.1 percent.
Others
Of FIM's business areas FIM Investment Banking focuses on advisory services in
equity capital market transactions and in mergers and acquisitions. As from the
beginning of 2007, the business area will no longer be reported on separately.
Instead, it is included in the Others group, which primarily comprises the
Group administration. In the tables annexed to the Interim Report, reporting
has been adjusted to correspond to current practices as from Q1 2006.
In the April-June period, the Others group had net sales of EUR 1.3 million
(3.2) and operating profit of EUR -1.9 million (-0.4). In January-June the net
sales was EUR 14.1 million (9.2) and operating profit EUR 8.4 million (3.4).
Operating profit increased due to dividend payment to the parent company during
the reporting period. The dividends totaled about EUR 11 million. The average
payroll in January-March was 55 (45) and at the end of the period 61.
This report has been prepared in compliance with the requirements of IAS 34
Interim Financial Reporting.
The report has been prepared in accordance with the same accounting policies as
were applied in the financial statements for 2006. However, the Group has
adopted the following standards or changes as of January 1, 2007:
IFRS 7 Financial Instruments: Disclosures. The standard will have an effect
mainly on the notes to the financial statements.
IAS 1 (Amendment) Capital Disclosures. The amendment of the standard does not
have an effect on this interim report.
This interim report is unaudited.
Helsinki, July 31, 2007
FIM Group Corporation
Board of Directors
TABLES
FIM GROUP INCOME 1.4. - 1.4. - 1.1. - 1.1. - 1.1.-
STATEMENT (IFRS) 30.6.07 30.6.06 30.6.07 30.6.06 31.12.06
Thousand euros
Fee and commission income 27 112 20 942 49 253 40 676 77 322
Net gains (losses) from 205 227 538 1 209 2 099
securities trading
Interest income 841 490 1 543 944 2 264
Gains less losses from 2 113 -29 149 147
available-for-sale
financial assets
Other operating income 3 65 13 96 214
TOTAL INCOME FROM 28 163 21 838 51 317 43 075 82 046
INVESTMENT SERVICES
Fee and commission -3 261 -2 312 -6 357 -4 465 -9 514
expenses
Interest expenses -243 -138 -467 -491 -910
General administrative
expenses
Employee benefits
expenses
Wages and salaries -7 268 -6 293 -13 511 -11 835 -22 970
Social security costs
Pension costs -966 -857 -1 987 -1 764 -3 413
Other personnel costs -422 -413 -836 -737 -1 555
Share-based payments 0 0 -2 396 -52 -52
Other administrative -4 699 -4 131 -8 950 -7 768 -15 775
expenses
Depreciation, -763 -608 -1 497 -1 157 -2 508
amortization and
impairment charges
Other operating expenses -1 390 -1 477 -2 652 -2 966 -6 234
Operating profit 9 150 5 610 12 665 11 839 19 114
PROFIT BEFORE TAX 9 150 5 610 12 665 11 839 19 114
Income taxes -1 766 -1 631 -1 880 -3 582 -5 766
PROFIT FOR THE PERIOD 7 384 3 979 10 785 8 257 13 348
Equity holders of the 7 384 3 624 10 785 6 847 11 607
Company
Minority interest* 0 354 0 1 410 1 741
Earnings per share
attributable to equity
holders of the company
Basic and diluted 0,17 0,10 0,25 0,21 0,32
earnings per share, EUR
Weighted average number 42 648 35 299 42 648 32 385 36 763
of shares during the
period, thousands
* after August 15, 2006
no minority interests
FIM Group Corporation Consolidated 30.6.2007 30.6.2006 31.12.2006
Balance Sheet (IFRS)
Thousand euros
ASSETS
Cash and cash equivalents 42 536 36 611 24 089
Due from customers 8 289 20 252 5 254
Repayable on demand 5 904
Shares and participations
Securities trading 32 766 33 213 34 354
Available-for-sale investments 1 207 1 088 1 084
Derivative financial instruments 1 208 3 772 1 473
Investments in associates 0 0 0
Intangible assets
Goodwill 41 163 11 861 41 163
Other intangible assets 3 079 3 196 3 186
Tangible assets
Shares in property investment companies 0 17 0
Other tangible assets 4 463 3 721 3 914
Other assets 16 132 7 287 9 151
Accrued income and prepayments 17 019 8 581 12 622
Deferred tax receivables 2 657 683 189
TOTAL ASSETS 170 518 130 282 142 384
EQUITY AND LIABILITIES
EQUITY
Equity attributable to equity holders of
the Company
Share capital 2 814 2 388 2 814
Share premium 65 493 31 827 65 493
Treasury shares -35 -35 -35
Translation difference -7 50 3
Fair value reserve 14 2 8
Other reserves 0 2 482 0
Retained earnings 28 216 17 680 20 177
Profit for the period 10 785 6 847 11 607
107 280 61 241 100 066
Minority interest 0 4 462 0
Total equity 107 280 65 702 100 066
LIABILITIES
Due to banks and financial institutions 0 302 0
Due to customers
Repayable on demand 475 13 509 2 593
Derivative financial instruments and 5 234 5 198 11 414
other trading liabilities
Other liabilities 45 369 32 352 17 264
Accrued expenses and deferred income 12 160 13 218 11 048
Deferred tax liabilities 0 0 0
Total liabilities 63 237 64 580 42 319
TOTAL EQUITY AND LIABILITIES 170 518 130 282 142 384
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Other Treasury Translation
capital premium reserves shares difference
1000 eur
Equity at December 2 000 645 2 482 -811 28
31, 2005
Net gains (losses)
from available-for-
sale investments
Currency translation 22
adjustments
Listing expenses, -2 262
net
Profit for the
period
Minority's share of
the profit for the
period
Total recognized 0 -2 262 0 0 22
income for the
period
Dividend for year
Change in minority
interest
Increase in share 388 33 443 776
capital
Transfers in equity
Purchase/sales of
own shares
Taxes on equity
Equity at June 30, 2 388 31 827 2 482 -35 50
2006
Fair Retained Total Minority Total
value earnings equity interest equity
reserve attrib-
utable to
equity
holders of
the
Company
Equity at December 67 22 349 26 760 5 628 32 388
31, 2005
Net gains (losses) -65 -65 -32 -97
from available-for-
sale investments
Currency translation -5 17 17
adjustments
Listing expenses, -2 262 -2 262
net
Profit for the 6 847 6 847 1 410 8 257
period
Minority's share of
the profit for the
period
Total recognized -65 6 842 4 537 1 378 5 914
income for the
period
Dividend for year -5 228 -5 228 -1 505 -6 733
Change in minority 26 26
interest
Increase in share 565 35 172 -1 064 34 107
capital
Transfers in equity
Purchase/sales of
own shares
Taxes on equity
Equity at June 30, 2 24 527 61 240 4 462 65 702
2006
Share Share Other Treasury Translation
capital premium reserves shares difference
1000 eur
Equity at December 2 814 65 493 0 -35 3
31, 2006
Net gains (losses)
from available-for-
sale investments
Currency translation -10
adjustments
Listing expenses,
net
Profit for the
period
Minority's share of
the profit for the
period
Total recognized 0 0 0 0 -10
income for the
period
Dividend for year
Change in minority
interest
Increase in share
capital
Transfers in equity
Equity at June 30, 2 814 65 493 0 -35 -7
2007
Fair Retained Total Minority Total
value earnings equity interest equity
reserve attrib-
utable to
equity
holders of
the
Company
Equity at December 8 31 784 100 066 0 100 066
31, 2006
Net gains (losses) 6 6 6
from available-for-
sale investments
Currency translation 8 -2 -2
adjustments
Listing expenses, 0 0
net
Profit for the 10 785 10 785 10 785
period
Minority's share of 0 0
the profit for the
period
Total recognized 6 10 793 10 789 0 10 789
income for the
period
Dividend for year -5 971 -5 971 -5 971
Change in minority 2 396 2 396 2 396
interest
Increase in share 0 0
capital
Transfers in equity 0 0
Equity at June 30, 14 39 002 107 281 0 107 280
2007
FIM GROUP CORPORATION CONSOLIDATED CASH
FLOW STATEMENT
1000 eur
1.1. - 1.1. -
30.6.2007 30.6.2006
Net cash from operations (A) 26 512 9 291
Net cash used in investing activities (B) -2 096 -1 462
Net cash used in financing activities:
Changes in equity 0 17 734
Dividends paid and other profit -5 970 -7 032
distribution
Net cash used in financing activities (C) -5 970 10 702
Change in liquid assets (A+B+C) 18 446 18 531
increase (+)/decrease (-)
Cash and cash equivalents at the 24 089 18 080
beginning of the period
Cash and cash equivalents at the end of 42 536 36 611
the period
FIM GROUP QUARTERLY 4-6/07 1-3/07 10- 7-9/06 4-6/06
INCOME STATEMENT 12/06
Thousand euros
Fee and commission 27 112 22 142 23 039 13 607 20 942
income
Net gains/losses 205 332 632 258 227
from securities
trading
Interest income 841 702 797 523 490
Gains less losses 2 -31 0 -2 113
from available-for-
sale investments
Other operating 3 10 19 99 65
income
TOTAL INCOME FROM 28 163 23 155 24 486 14 485 21 838
INVESTMENT SERVICES
Fee and commission -3 261 -3 096 -3 289 -1 760 -2 312
expenses
Interest expenses -243 -224 -231 -188 -138
General
administrative
expenses
Employee benefits
expenses
Wages and salaries -7 268 -6 243 -6 804 -4 331 -6 293
Social security
costs
Pension costs -966 -1 020 -864 -785 -857
Other personnel -422 -414 -433 -385 -413
costs
Share-based payments 0 -2 396 0 0 0
Other administrative -4 699 -4 250 -4 530 -3 477 -4 131
expenses
Depreciation, -763 -734 -701 -650 -608
amortization and
impairment charges
Other operating -1 390 -1 262 -1 352 -1 916 -1 477
expenses
Operating profit 9 150 3 516 6 281 994 5 610
PROFIT BEFORE TAX 9 150 3 516 6 281 994 5 610
Income taxes -1 766 -113 -1 898 -286 -1 631
PROFIT FOR THE 7 384 3 402 4 383 708 3 979
PERIOD
Equity holders of 7 384 3 402 4 383 376 3 624
the Company
Minority interest* 0 0 0 332 354
Earnings per share
attributable to
equity holders of
the company
Basic and diluted 0,17 0,08 0,10 0,01 0,10
earnings per share,
EUR
Weighted average 42 648 42 648 42 648 39 489 35 299
number of shares
during the period,
thousands
* after August 15,
2006 no minority
interests
SEGMENT INFORMATION 4-6/07 1-3/07 10- 7-9/06 4-6/06
12/06
Thousand euros
Asset Management
Total income 22 052 15 113 17 511 9 495 15 981
Operating profit 9 632 3 251 6 577 2 089 5 801
Brokerage
Total income 7 515 8 577 8 391 5 534 6 665
Operating profit 1 382 1 039 432 280 270
Others
Total income 1 297 12 788 3 043 1 385 3 153
Operating profit -1 865 10 222 -725 -1 395 -389
Eliminations
Total Income -2 701 -13 324 -4 458 -1 930 -3 961
Operating profit 1 -10 997 -6 21 -71
Total
Total Income 28 163 23 155 24 487 14 484 21 838
Operating profit 9 150 3 515 6 278 995 5 611
FEE AND COMMISSION
INCOME
Fee and commission 4 561 6 402 4 739 3 568 4 433
income from brokerage
Transaction-based fees 7 728 5 120 4 493 1 009 5 693
from asset management
Fixed management fees 8 130 8 548 7 652 7 578 8 020
from mutual funds
Performance based fees 374 202 118 41 93
from mutual funds
Fixed management fees 800 580 765 487 652
from discretionary
asset management
Performance based fees 4 621 43 3 753 -11 588
from discretionary
asset management
Advisory fees 10 100 58 26 52
Custody fees 581 661 605 578 545
Other fee and 61 96 371 170 588
commission income
Fees from foreign 244 390 483 160 280
exchange transaction
executed on behalf of
clients
Total 27 112 22 142 23 038 13 608 20 942
KEY FIGURES DESCRIBING FINANCIAL
DEVELOPMENT
1-6/2007 1-6/2006 1-12/2006
Return on equity, annualised % 30.9 % 33.7 % 20.2 %
Cost/income ratio 0.75 0.73 0.77
Basic and diluted earnings per share, EUR 0.25 0.21 0.32
Book value per share, EUR (end of period) 2.52 1.69 0.63
Equity ratio, % (end of period) 62.9 % 50.4 % 45.4 %
Tier 1 ratio (BASEL II), % (end of period) 32.8 % 81.3 %* 115.7 %*
* In 2006, Tier 1 ratio was calculated on
the basis of the relation between the total
equity and risk-adjusted receivables
according to instruction 203.24 of the
Finnish FSA. Accroidng to this instruction,
the ratio only takes into account the
primary own funds. Thus, the ratios for
2006 are not comparable with the June 30,
2007 ratio.
Return on equity, annualised %
operating profit/loss - taxes x 100
---------------------------
Total shareholders' equity (including
minority interest)
(average from start and end of period)
Cost/income ratio
Interest expenses + Fee and commission
expenses + administrative expenses +
depreciation + rents + other operating
expenses
---------------------------
Total income from investment services
Basic and diluted earnings per share, EUR
Profit for the period attributable to
equity holders of the Company
---------------------------
Weighted average number of shares
Book value per share, EUR
Total shareholders' equity (excluding
minority interest)
---------------------------
Number of shares at period-end
Equity ratio, %
Total shareholders' equity (including
minority interest) x 100
---------------------------
Balance sheet total
Related party transactions (The CEOs and members of the boards of the parent
company and its subsidiaries)
1-6/2007 1-6/2006 1-12/2006
Management compensation
1 000 eur
Salaries and other current employee 819 1173 2413
benefits
Pension payments 168 186 375
Share-based payments 837(* 0 0
Total 1824 1359 2788
*) Options sold to Glitnir banki hf in
selling price
Changes in Intangible and Tangible assets
1-6/2007 1-6/2006 1-12/2006
Intangible assets
Intangible assets at January 1, 2007 44 349 2 782 2 782
Additions 564 12 886 42 693
Decrease 0 0 0
Adjustments 0 0 0
Amortization -670 -611 -1 127
Intangible assets at June 30, 2007 44 242 15 057 44 349
Tangible assets
Tangible assets at January 1, 2007 3 914 2 908 2 908
Additions 1 381 1 424 2 382
Decrease 0 0 0
Adjustments -7 0 0
Amortization -825 -611 -1 376
Tangible assets at June 30, 2007 4 463 3 721 3 914
Contingencies and 30.6.07 30.6.06 31.12.06
commitments, including off
balance sheet items
Collateral
Trading and derivative
collateral
OMX Oy Cash 8 526 1 094 3 166
INF- BCH Bank Cash 0 0 655
Skandinaviska Enskilda Banken Share and 0 0 2 958
cash
Collaterals for derivatives
and lending of shares
Off balance sheet collateral
Bank Collateral
OMX Oy Share 11 624 10 650 14 646
Nordea Cash 0 0 203
INF- BCH Bank Cash 0 0 1 078
Skandinaviska Enskilda Banken Share and 7 017 471 219
cash
Handelsbanken Share 2 944 1 352 1 242
EUREX Cash 0 623 0
Off balance sheet commitments
Credit limits not in use 1 891 1 035 1 519
Leases and other rental
liabilities
Future minimum lease payments
related to non-cancelable
lease commitments
Operating leases
Not later than one year 327 349 376
Later than one year and not 184 452 297
later than five years
Total 512 801 673
Leasing premises
Not later than one year 1 038 744 1 030
Later than one year and not 1 147 1 090 1 046
later than five years
Total 2 185 1 834 2 076
Other rental liabilities
Rent securities 91 86 68
FIM Group Corporation
Risto Perttunen
CEO
For additional information,
please contact:
Risto Perttunen, CEO, tel. +358 9
6134 6303
Timo T. Laitinen, CFO, tel. +358
9 6134 6525
Distribution:
Helsinki Stock Exchange
The main media
www.fim.com
FIM is a growing investment
services group that offers asset
management, brokerage and
investment banking services for
private individuals and
organizations. Since March 2007
FIM is part of Icelandic
financial group Glitnir
(www.glitnirbank.com). In
addition to the head office in
Helsinki, FIM has regional
offices in Espoo, Jyväskylä,
Kuopio, Lahti, Oulu, Riihimäki,
Tampere, Turku and Vaasa. FIM
also operates in Stockholm and
Moscow. The company had net sales
in 2006 of EUR 82.0 million, and
it posted operating profit of EUR
19.1 million. FIM had a payroll
of 284 employees at the end of
2006. www.fim.com