2007
• Revenues amounted to SEK 4,305 m (3,610)
• Operating income rose to SEK 1,307 m (1,211)
• Income after financial items rose to SEK 1,235 m (1,151)
• Income after tax rose to SEK 986 m (911)
• Earnings per share rose to SEK 8.12 (7.64)
• The Board does not propose any dividend
• Record-high levels of activity on the Nordic Exchange
• Improved profitability in the Market Technology business area
• Merger with Nasdaq expected to be completed in the first quarter.
Fourth quarter 2007
• Revenues rose to SEK 1,113 m (1,025)
• Operating income was SEK 255 m (355)
• Income after financial items was SEK 242 m (339)
• Income after tax was SEK 201 m (296)
• Earnings per share was SEK 1.66 (2.47)
• *Adjusted operating income rose by 23 percent to SEK 335 m (272)
• OMX budget for 2008 disclosed (see page 5)
*Adjusted for extra VAT expense of SEK 83 m in the fourth quarter of 2007 and
revenue of SEK 83 million in the fourth quarter of 2006 from the sale of shares
in VPC AB.
”2007 was a turbulent year for OMX. Naturally, most people will recall the
turns of events surrounding the merger with NASDAQ and all of the records that
were set on our markets during the year. However, above all else,this was the
year in which OMX delivered its best earnings ever, with operating income of
more than SEK 1.3 billion.” says Magnus Böcker, President and CEO, OMX.
Enclosed you will find OMX's Financial Statement for year-end 2007. The report
is also available at www.omxgroup.com.
A press and analyst briefing will be held today at 11.00 CET at OMX's head
office at Tullvaktsvägen 15, Stockholm. The press and analysts briefing will be
broadcast live at www.omxgroup.com. The OMX website will also include
presentation material for downloading. If you are unable to attend in person,
it is also possible to participate in the presentation via teleconference on
the following numbers: +46 (0) 8 505 202 70 (Sweden), +44 (0) 208 817 9301
(UK), +1 718 354 1226 (USA).
The report will be presented by President and CEO Magnus Böcker and CFO
Kristina Schauman
For further information, please contact:
Jakob Håkanson, Investor Relations +46 (0)8- 405 60 42
Jonas Rodny, Media Relations +46 (0)8- 405 72 67
About OMX | OMX is a leading expert in the exchange industry. The OMX Nordic
Exchange comprises over 800 companies including its alternative market First
North. OMX provides technology to over 60 exchanges, clearing organizations and
central securities depositories in over 50 countries. The Nordic Exchange is
not a legal entity but describes the common offering from OMX exchanges in
Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. OMX is a
Nordic Large Cap company in the Financials sector on the OMX Nordic Exchange.
For more information, please visit, please visit www.omxgroup.com.
This information is disclosed according to applicable law and exchange rules.
Cautionary Note Regarding Forward-Looking Statements:
Information set forth herein contains forward-looking statements, which involve
a number of risks and uncertainties. OMX cautions readers that any
forward-looking information is not a guarantee of future performance and that
actual results could differ materially from those contained in the
forward-looking information. Such forward-looking statements include, but are
not limited to, statements about the benefits of the Offer, the proposed
business combination transaction involving NASDAQ and OMX, the combined group's
plans, strategies, objectives, opportunities, expectations and intentions, and
other statements that are not historical facts. Additional risks and factors
are identified in NASDAQ's filings with the U.S. Securities Exchange Commission
(the “SEC”), including its Report on Form 10-K for the fiscal year ending
December 31, 2006 which is available on NASDAQ's website at
http://www.NASDAQ.com and the SEC's website at http://www.sec.gov, and in OMX's
filings with the Swedish Financial Supervisory Authority (Sw.
Finansinspektionen) (the “SFSA”) including its annual report for 2006, which is
available on OMX's website at http://www.omxgroup.com. Additional factors may
be identified in the offer document published by Borse Dubai which is available
on Borse Dubai's website at http://www.borsedubai.com. OMX undertakes no
obligation to publicly update any forward-looking statement, whether as a
result of new information, future events or otherwise.
Notice to OMX Shareholders:
While the Offer is being made to all holders of OMX shares, this document does
not constitute an offer to purchase, sell or exchange or the solicitation of an
offer to purchase, sell or exchange any securities of OMX in any jurisdiction
in which the making of the Offer or the acceptance of any tender of shares
therein would not be made in compliance with the laws of such jurisdiction. The
Offer has not been and is not being made to persons in those jurisdictions
where their participation requires further offer documents, filings or other
measures in addition to those required by Swedish law, except under applicable
exemptions. In particular, the Offer is not being made, directly or
indirectly, in or into Canada.
Additional Information about this Transaction:
On 19 November 2007, NASDAQ filed a definitive proxy statement on Schedule 14A
with the U.S. Securities and Exchange Commission, relating to NASDAQ's proposed
acquisition of OMX from Borse Dubai upon the completion of the Offer. On 4
January 2008, Borse Dubai published its offer document regarding the Offer. The
offer document sets forth the terms and conditions of the Offer and also
provides certain information about Borse Dubai, OMX and Nasdaq. Investors and
security holders are urged to read the offer document, the proxy statement and
other applicable documents regarding the Offer and the related proposed
business combination transaction because they contain important information.
You are entitled to obtain a free copy of Borse Dubai's offer document from
Borse Dubai. You may obtain a free copy of those documents filed by NASDAQ with
the SEC through the SEC's website at http://www.sec.gov. The proxy statement
and the other NASDAQ documents may also be obtained for free by accessing
NASDAQ's website at http://www.nasdaq.com.
2007
• Revenues amounted to SEK 4,305 m (3,610)
• Operating income rose to SEK 1,307 m (1,211)
• Income after financial items rose to SEK 1,235 m (1,151)
• Income after tax rose to SEK 986 m (911)
• Earnings per share rose to SEK 8.12 (7.64)
• The Board does not propose any dividend
• Record-high levels of activity on the Nordic Exchange
• Improved profitability in the Market Technology business area
• Merger with Nasdaq expected to be completed in the first quarter
FOURTH QUARTER 2007
• Revenues rose to SEK 1,113 m (1,025)
• Operating income was SEK 255 m (355)
• Income after financial items was SEK 242 m (399)
• Income after tax was SEK 201 m (296)
• Earnings per share were SEK 1.66 (2.47)
• Adjusted1) operating income was SEK 335 (272)m
• OMX budget for 2008 disclosed (see page 5)
1) Adjusted for extra VAT expense of SEK 83 m of 2007 and revenue of SEK 83
million in the fourth quarter of 2006 from the sale of shares in VPC AB.
CEO comments the year: 2007 was a turbulent year for OMX. Naturally, most people
will recall the turns of events surrounding the merger with NASDAQ and all of
the records that were set on our markets during the year. However, above all
else, this was the year in which OMX delivered its best earnings ever, with
operating income of more than SEK 1.3 billion.
Activitiy on our exchanges reached record-high levels during the year. The
number of transactions for Nordic Marketplaces rose by 53 percent compared with
the year-earlier period and we welcomed 97 new companies to our exchanges. Just
over a year ago we launched the Nordic Exchange, and during the year we made
further progress in harmonizing the Nordic financial markets, for example, by
coordinating our fees from January 2008. In parallel, we are introducing
significant fee reductions of 20 percent for equities trading. In doing this, we
intend to further stimulate trade and enhance the competitiveness of the Nordic
Exchange by enabling our customers to benefit from the efficiency gains created
from integrating our exchanges.
Another example of the effects on the Nordic Exchange can be seen in the
Information Services & New Markets business area. Information sales rose 28
percent in 2007 much thanks to OMX's Nordic offering for market data and the
increased interest in the region. The business area has a large potential and
the focus during the year was on the creation of new products and services.
One of the most gratifying results of the year was the improved profitability in
our Market Technology business area. The 10-percent operating margin that we had
previously announced as a minimum level for the operations was attained in the
fourth quarter. It is also highly positive that it has been possible to
implement the efficiency measures in parallel with a continued focus on sales.
The business area's order intake grew by 15 percent compared with 2006. This
favorable performance has continued in 2008 and in particular, I would like to
mention the agreement that was signed with the Bombay Stock Exchange in January,
one of the largest orders in OMX's history. The high growth and rapid
developments in the exchange industry mean that demands for technology and
systems operations are continuously increasing. By developing the next
generation of systems - Genium - OMX will retain its position as the leading
supplier of technology for exchanges and marketplaces in the future.
Another important event was the announced acquisition of operations from the
Nord Pool energy exchange. We believe that this purchase will provide us with
major growth opportunities and synergies in new markets.
The EU Markets in Financial Instruments Directive (MiFID) was introduced during
the year, the aim of which is to increase efficiency and transparency in the
financial markets. For OMX this means both new business opportunities and
intensified competition. Active work is being conducted in all business areas
centered on strengthening our position after the introduction of this directive.
An example of a new business opportunity are the services that we have been
delivering to banks and securities brokers since November that enable them to
meet the demands imposed by the directive. Reducing fees for equities trading is
one example of an initiative that strengthens our competitiveness and adds value
for our customers.
It now appears that the merger with Nasdaq will become a reality and may be
completed in the first quarter. This will generate even more opportunities to
position OMX in the global area and, accordingly, is also important for the
development of the Nordic financial market. It has been a highly successful
year,
and we are proud to take the next step in the company's history after reporting
our strongest earnings ever.
Magnus Böcker
President and CEO
GROUP INCOME
SUMMARY EARNINGS, GROUP Current period Change Current period
Change
Okt-Dec 2007/2006 Jan-Dec
2007/2006
--------------------------------------------------------------------------------
| SEK m | 2007 | 2006 | (percent | 2007 | 2006 | (percent |
| | | | ) | | | ) |
--------------------------------------------------------------------------------
| Total revenue | 1,113 | 1,02 | 9 | 4,305 | 3,610 | 19 |
| | | 5 | | | | |
--------------------------------------------------------------------------------
| Adjusted total | 1,110 | 942 | 18 | 4,201 | 3,505 | 20 |
| revenue 1) | | | | | | |
--------------------------------------------------------------------------------
| Expenses | -866 | -674 | 28 | -3,042 | -2,445 | 24 |
--------------------------------------------------------------------------------
| Adjusted expenses | -783 | -674 | 16 | -2,959 | -2,445 | 21 |
| 2) | | | | | | |
--------------------------------------------------------------------------------
| Participations in | 8 | 4 | 100 | 44 | 46 | -4 |
| earnings of | | | | | | |
| associated | | | | | | |
| companies | | | | | | |
--------------------------------------------------------------------------------
| Operating income | 255 | 355 | -28 | 1,307 | 1,211 | 8 |
--------------------------------------------------------------------------------
| Adjusted operating | 335 | 272 | 23 | 1,286 | 1106 | 16 |
| income 1) 2) | | | | | | |
--------------------------------------------------------------------------------
| Financial items | -13 | -16 | -19 | -72 | -60 | 20 |
--------------------------------------------------------------------------------
| Income after | 242 | 339 | -29 | 1,235 | 1,151 | 7 |
| financial items | | | | | | |
--------------------------------------------------------------------------------
| Income after tax | 201 | 296 | -32 | 986 | 911 | 8 |
--------------------------------------------------------------------------------
| Earnings per share, | 1.66 | 2.47 | -33 | 8.12 | 7.64 | 6 |
| SEK | | | | | | |
--------------------------------------------------------------------------------
1) Adjusted for SEK 3 m from the sale of Lawshare for the periods Jan-Dec 2007
and Oct-Dec 2007, SEK 101 m from the sale of shares in Orc Software for the
period Jan-Dec 2007, SEK 22 m from the sale of NOS-shares in the period Jan-Dec
2006 and SEK 83 m from the sale of VPC for the periods Jan-Dec 2006 and Oct- Dec
2006.
2) Adjusted for SEK 83 m concerning a one-off payment of VAT for the periods
Jan-Dec 2007 and Oct-Dec 2007
2007
For OMX, 2007 was characterized by high market activity and a focus on new
products and services.
OMX's total revenues rose by 19 percent to SEK 4,305 m for 2007 (3,610 in 2006).
The increase is due to rising trading revenues, higher information sales and
increased license, support and project revenue from the technology operations.
Total revenues also include SEK 101 m in earnings for the sale of shares in Orc
Software that took place during the second quarter and SEK 3 m from the sale of
Lawshare, part of discontinuing operations, in the fourth quarter of 2007. The
first quarter of 2006 includes SEK 22 m, attributable to the sale of shares in
Norsk Oppgørssentral ASA (NOS) and SEK 83 m, attributable to the sale of shares
in VPC AB in the fourth quarter of 2006. The Iceland Stock Exchange is included
from December 1, 2006. The order intake in the technology business rose to SEK
2,001 m (1,735) during the year.
The Group's total expenses were SEK 3,042 m (2,445) during the year. Operating
expenses for the fourth quarter include a cost of SEK 83 m as a nonrecurring
effect of OMX deciding to follow a ruling stipulated by the Swedish Tax Board.
This cost has no impact on cash flow. Excluding the additional tax expense, the
Group's expenses rose by 21 percent and by 17 percent, excluding discontinuing
operations. The rise in expenses is a result of increased market activity,
increased activity in the technology operations and new product and service
drives during the year.
Operating income was SEK 1,307 m (1,211) in 2007. Adjusted operating income
increased with 16 percent to SEK 1,286 (1,106).
Participations in earnings of associated companies amounted to SEK 44 m (46).
This decrease is because VPC AB has not been an associated company since
September 2006.
Financial items amounted to an expense of SEK 72 m (expense: 60). Compared with
2006, financial items were negatively impacted by increased borrowing, rising
market rates and higher costs for financial guarantees associated with increased
volumes in the clearing operations. Income after financial items amounted to SEK
1,235 m (1,151), while income after tax was SEK 986 m (911). Earnings per share
rose 6 percent to SEK 8.12 (7.64).
THE FOURTH QUARTER 2007
During the fourth quarter of the year, OMX's total revenues rose to SEK 1,113 m
(1,025), an increase of 9 percent compared with the year-earlier period. The
fourth quarter of 2007 includes SEK 3 m from the sale of Lawshare, part of
discontinuing operations.
Total revenues for the fourth quarter of 2006 include earnings of SEK 83 m,
attributable to the sale of shares in VPC AB. The primary reasons for the rise
in total revenues were higher trading revenues, increased information sales and
increased revenues in the technology operations. The order intake in the
technology operations rose to SEK 732 m (470) during the quarter.
The Group's total expenses were SEK 866 m (674) during the quarter. Operating
expenses include a cost of SEK 83 m as a nonrecurring effect of OMX deciding to
follow a ruling stipulated by the Swedish Tax Board. This cost has no impact on
cash flow. Excluding this additional tax expense, expenses rose by 16 percent
compared with the year-earlier period and by 15 percent excluding discontinuing
operations. In addition, the increase compared with the year-earlier period is
primarily attributable to increased exchange activity, enhanced new product and
service drives, and increased activity in the technology operations.
The Group's operating income was SEK 255 m (355) during the fourth quarter.
Adjusted operating income rose by 23 percent to 335 (272) compared with the
year-earlier period.
Participations in earnings of associated companies rose to SEK 8 m (4), mainly
due to the improved earnings in Orc Software and EDX London. VPC AB is no longer
included in associated companies since the fourth quarter of 2006.
Financial items amounted to an expense of SEK 13 m (expense: 16), a positive
change that was primarily a result of the nonrecurring effects from NLK, a
former associated company, that arose in the fourth quarter of 2007. Income
after financial items amounted to SEK 242 m (339), while income after tax was
SEK 201 m (296). Earnings per share was SEK 1.66 (2.47).
DEVELOPMENTS IN OMX'S BUSINESS AREAS
SUMMARY REVENUE AND INCOME BY BUSINESS AREA Oct-Dec Jan-Dec
--------------------------------------------------------------------------------
| SEK m | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| Revenue | | | | |
--------------------------------------------------------------------------------
| Nordic Marketplaces | 527 | 474 | 2,111 | 1,778 |
--------------------------------------------------------------------------------
| Information Services & New Markets | 234 | 225 | 854 | 752 |
--------------------------------------------------------------------------------
| Market Technology | 479 | 390 | 1,768 | 1,300 |
--------------------------------------------------------------------------------
| Operating income | | | | |
--------------------------------------------------------------------------------
| Nordic Marketplaces | 161 | 242 | 981 | 940 |
--------------------------------------------------------------------------------
| Information Services & New Markets | 66 | 76 | 261 | 217 |
--------------------------------------------------------------------------------
| Market Technology | 54 | 50 | 213 | 93 |
--------------------------------------------------------------------------------
NORDIC MARKETPLACES
Within this business area, OMX operates the equity and derivatives exchanges in
Stockholm, Helsinki, Copenhagen and Iceland.
A high level of activity and a large number of trade records characterized
Nordic Marketplaces in 2007. The number of new listings remained at a
historically high level, although they were slightly fewer than in the
year-earlier period. In October, the Nordic Exchange celebrated its first
anniversary, a year during which First North was expanded to also include
Iceland, Finland and the Baltic States. The Iceland Stock Exchange has been
consolidated in the Group since December 1, 2006. Unlike revenue and earnings,
the statistical information below is presented pro forma and the Iceland Stock
Exchange is therefore included in comparative figures.
The business area's revenue amounted to SEK 2,111 m (1,778) for 2007, up 19
percent compared with the year-earlier period, and in the fourth quarter revenue
rose 11 percent to SEK 527 m (474). This growth is attributable to increased
trading revenue for both the year and the quarter. The business area's expenses
were SEK 1,146 m (851) for the full-year and SEK 368 m (232) for the fourth
quarter. Expenses for the fourth quarter include a nonrecurring effect of SEK 83
m from OMX having decided to follow a ruling stipulated by the Swedish Tax
Board. This cost is reported in its entirety for the business area. The main
reason for the rise in expenses is increased exchange activity, the increase in
capacity requirements that occurred in the first quarter as a consequence of the
strong trading, and the acquisition of the Iceland Stock Exchange. The business
area's operating income rose by 4 percent to SEK 981 m (940) in 2007, and
declined by 33 percent to SEK 161 m (242) during the fourth quarter as a result
of the effect of the additional tax expense.
The Nordic Marketplaces business area has three main sources of income (see page
17): trading revenue, issuers' revenue and other revenue. Trading revenues
amounted to SEK 1,574 m (1,286) for the full-year and SEK 383 m (328) for the
fourth quarter.
In 2007, 69 percent of trading revenues came from trading in cash products,
mainly equities, and 31 percent from trading and clearing in derivatives
products. The corresponding figures for the fourth quarter were 71 percent and
29 percent, respectively. For the full year, the number of equity transactions
increased to an average of 189,458 (123,485) per day, a rise of 53 percent
compared with the year-earlier period. During the quarter, the number of equity
transactions rose to an average of 213,220 (139,019) per day, a rise of 53
percent compared with the year-earlier period. For 2007, the turnover in
equities trading measured in value rose by 25 percent to a daily average of SEK
48,655 m (38,774), and during the fourth quarter the increase was 16 percent to
SEK 46,367 m (40,095). The turnover velocity for equities trading rose to 132
percent (130) for the full-year and to 128 percent (127) for the fourth quarter.
The total number of derivatives contracts traded per day for 2007 averaged
658,314 (601,514), up 9 percent compared with the year-earlier period. For the
fourth quarter, the increase was 13 percent to 654,909 contracts (579,721). Of
the total number of contracts in 2007, Finnish options contracts on Eurex
accounted for 70,648 (66,230) and Nordic derivatives contracts on EDX London for
139,703 (107,555) per day. For the fourth quarter, the number of options
contracts on Eurex was 58,442 (60,563) and the number of Nordic derivatives
contracts on EDX London was 159,396 (106,373) per day. In a bid to strengthen
OMX's customer offering, a 20-percent fee cut on equities trading was
implemented in Stockholm, Helsinki and Copenhagen from January 1, 2008.
Issuers' revenue amounted to SEK 393 m (344) for 2007, an increase of 14 percent
compared with the year-earlier period. Issuers' revenue for the fourth quarter
amounted to SEK 107 m (89), up 20 percent. The rise was mainly attributable to a
larger number of listed companies, higher market capitalization and, in the
fourth quarter, increased activity in fixed-income instruments. At year-end, the
total number of companies was 756 (696), of which 630 (615) on the main market
and 126 (81) on the alternative market, First North. In 2007, 85 (97) new
companies joined the marketplace, of which 55 joined First North. At the same
time, 25 (41) companies left the exchange during the year, of which 6 from First
North. During the fourth quarter, 27 (38) new companies joined the marketplace,
of which 14 joined First North, while 9 (6) companies left the exchange, of
which 3 from First North.
The total market capitalization of all companies listed on the main market rose
to SEK 8,414 billion (8,308) at the end of the year, corresponding to an
increase of 1 percent.
Other revenue in the business area amounted to SEK 144 m (148) for 2007 and SEK
37 m (57) during the fourth quarter. For 2007, other revenue includes SEK 38 m
from the Icelandic Securities Depository and SEK 10 m for the fourth quarter.
Other revenue for the fourth quarter of 2006 includes SEK 33 m from the sale of
shares in VPC AB. Other revenue for the full year also includes SEK 9 m from the
sale of shares in NOS.
INFORMATION SERVICES & NEW MARKETS
This business area combines all of OMX's information services in the Group's
Nordic exchange offering, OMX's Nordic services offering in securities
administration, and OMX's ownership and operation of exchanges and central
securities depositories in Tallinn, Riga and Vilnius.
The year for Information Services & New Markets was characterized by growing
interest in OMX's information services. The Nordic Exchange's news distribution
service was also launched during the year. The Broker Services operations were
expanded from January 1, 2007 through the addition of the unit that develops
systems for back-office services which was part of discontinuing operations. All
comparative figures have been adjusted with respect to this organizational
change. The business area's revenue rose by 14 percent to SEK 854 m (752) during
2007 and amounted to SEK 234 m (225) for the quarter. Growing revenue from
information services and increased exchange activities were the primary drivers
behind this increase for both the full-year and the fourth quarter. Earnings of
SEK 17 m from the sale of shares in VPC AB are also included in the fourth
quarter of 2006.
The business area's expenses were SEK 595 m (542) for 2007 and SEK 168 m (149)
for the fourth quarter. The increase for both the full-year and the quarter was
mainly due to increased customer activity and the expanded focus on new products
and services. The business area's operating income improved to SEK 261 m (217)
for 2007 and amounted to SEK 66 m (76) for the fourth quarter. Excluding the
sale of shares in VPC, operating income rose by 12 percent compared with the
fourth quarter of 2006.
The Information Services & New Markets business area has four main revenue
sources (see page 17): information revenue, revenue from Baltic Markets, revenue
from Broker Services and other revenue. Information revenue amounted to SEK 563
m (441) for 2007, 28 percent higher than in the year-earlier period. The amount
was SEK 155 m (121) for the fourth quarter, up 28 percent. Information revenue
is mainly based on the number of real-time terminals used and reported by end
users. These terminals receive their information directly from OMX or via
information vendors. At year end, OMX had 116 (92) information vendors.
Revenue from Baltic Markets increased to SEK 77 m (68) during 2007 and SEK 18 m
(23) during the quarter. The rise in revenue for 2007 is primarily due to
increased market activities. The decrease in revenue for the fourth quarter is
mainly attributable to the inclusion of revenue for the privatization that took
place via the stock exchange in Riga in the fourth quarter of 2006. The number
of members amounted to 31 (31). The total equity turnover amounted to SEK 89 m
(91) per day for 2007 and SEK 77 m (233) for the quarter. A major portion of the
difference in turnover is due to one large trade, conducted on the exchange in
Vilnius in December 2006. In 2007, the number of equity transactions was 1,599
(996) per day and amounted to 1,449 (1,423) for the fourth quarter.
Revenue from Broker Services declined slightly to SEK 193 m (205) for 2007 and
to SEK 55 m (58) for the fourth quarter, mainly due to the loss of a major
customer in the first quarter of 2007.
Other revenue amounted to SEK 21 m (38) for 2007 and SEK 6 m (23) for the fourth
quarter. Other revenue for 2006 and the fourth quarter of 2006 included SEK 17 m
from the sale of shares in VPC AB. Other revenue for 2006 also included SEK 4 m
from the sale of shares in NOS.
MARKET TECHNOLOGY
Within this business area, OMX develops and delivers systems solutions, IT
services and advisory services for the global exchange industry
For the business area, the year was characterized by intensified market
activities and accelerated development of the next generation of trading systems
- Genium. There is increasing interest in OMX's products and services and demand
has risen from both established marketplaces offering trading in traditional
instruments and from new marketplaces offering trading in other classes of
assets.
As a result of this increased activity, the business area's revenue rose by 36
percent to SEK 1,768 m (1,300) during the year and to SEK 479 m (390) during the
quarter. During the first quarter of 2007, Genium development was moved within
the Group (see page 16, note 3), which meant that revenue related to Genium
represented SEK 62 m of Market Technology's revenue for the fourth quarter of
2007, compared with SEK 15 m for the same period last year. Market Technology's
external revenue amounted to SEK 282 m (279) for the fourth quarter of 2007. In
external revenues for the fourth quarter of 2006 SEK 33m is included from the
sales of shares in VPC AB. Internal sales for the operation and maintenance of
OMX's exchange operations amounted to SEK 135 m (96).
The business area's expenses increased by 28 percent to SEK 1,581 m (1,233) for
the full year and SEK 431 m (344) for the fourth quarter. The rise in expenses
was primarily attributable to heightened market activity. The business area's
operating income amounted to SEK 213 m (93) for 2007. For the fourth quarter,
operating income totaled SEK 54 m (50), corresponding to an operating margin of
11 percent.
Investment in R&D, including investments related to Genium, amounted to SEK 112
m (174) for 2007, of which SEK 26 m (46) in the fourth quarter. This corresponds
to 6 percent (13) of the business area's revenue for the full year and 5 percent
(11) for the fourth quarter. The decrease is primarily due to the transfer of
the development of Genium. Of the total investments in R&D, SEK 102 m (161) was
capitalized during the year, of which SEK 24 m (44) was capitalized during the
fourth quarter.
OMX's order intake during 2007 was SEK 2,001 m (1,735), of which SEK 369 m (598)
pertained to internal orders. For the fourth quarter, the order intake amounted
to SEK 732 m (470), of which SEK 115 m (93) related to internal orders. The
total order value at the end of the quarter was SEK 3,323 m (2,944), of which
SEK 1,213 m (1,184) is scheduled for delivery within one year. The total order
value includes internal orders of SEK 746 m (1,075), of which SEK 290 m (390) is
scheduled for delivery within one year. Order statistics no longer include
discontinuing operations and comparative figures have been adjusted accordingly.
Orders were received during the year from such alternative marketplaces as BIDS
trading and Plus Markets Group. Examples of contracts signed with companies
operating on traditional marketplaces include SGX, Bolsa de Valores de Colombia
and Hong Kong Exchanges and Clearing Ltd. After the close of the reporting
period, agreements were also signed with the Bombay Stock Exchange, among
others. SICOM in Singapore, Financial & Energy Exchange in Australia and egX
Group are examples of new customers that offer trading in classes of assets
other than equities.
There are three main sources of revenue for the Market Technology business area
(see page 17): license, support and project revenue, revenue from Facility
Management Services, and other revenue. License, support and project revenue
amounted to SEK 1,073 m (785) for the year and to SEK 292 m (235) for the fourth
quarter. This rise was mainly due to increased activity among existing and new
customers. Revenue from Facility Management Services rose to SEK 546 m (432) for
2007 and to SEK 153 m (111) for the quarter, mainly due to increased activity
among existing customers and also increased internal sales.
Other revenue for 2007 totaled SEK 149 m (83) and SEK 34 m (44) for the fourth
quarter. Other revenue for 2007 includes SEK 101 m from the sale of shares in
Orc Software in the second quarter. Other revenue for 2006 includes SEK 9 m from
the sale of shares in NOS and for the fourth quarter, SEK 33 m from the sale of
shares in VPC AB.
OMX 2007 - OTHER IMPORTANT INFORMATION
FINANCIAL POSITION
Total assets at the end of the reporting period amounted to SEK 12,236 m
compared with SEK 12,528 m at the same timepoint in 2006. The adjusted
equity/assets ratio, excluding the market value of outstanding derivatives
positions and current trading accounts mainly arising in the operations being
discontinued, was 62 percent (61) (see page 20). OMX had an interest-bearing net
debt of SEK 850 m (847) at period-end. The net debt/equity ratio was 17 percent
(18) at period-end.
At period-end, interest-bearing financial liabilities amounted to SEK 1,931 m
(1,797), of which SEK 858 m (1,360) was long term. The Group's total approved
credit facilities was SEK 3,684 m (3,741), of which SEK 82 m (30) was utilized.
Interest-bearing financial assets totaled SEK 1,081m (950), of which SEK 20 m
(21) were financial fixed assets.
RISKS AND UNCERTAINTY FACTORS
Significant risks and uncertainty factors for the Group and the Parent Company
include business risks in the form of clearing risks within the exchange
operations. Within the technology operations, risks occur in providing services
(sales, delivery and implementation, and production phases). In addition,
through its international operations, OMX will be exposed to various types of
financial risks, which are described in detail in OMX's Annual Report (page 78).
Beyond the risks described there, no other significant risks have been added.
LEGAL DISPUTES
On February 23, 2005, OMX announced that a court jury had rejected eSpeed's
claim that OMX had infringed its patent and rejected eSpeed's claim for damages
of approximately USD 100 m. In April 2006, eSpeed appealed the district court's
decision. The United States Court of Appeals for the Federal Circuit upheld the
district court's decision in March 2007. As a result of this decision, eSpeed no
longer has any claim on OMX.
In May 2007, the Helsinki Appeal Court announced its decision to reject the
claim of 20 banks and brokers claim OMX to repay charged VAT of approximately
EUR 5 m, excluding interest.
A dispute regarding a system delivery is in progress in the Market Technology
business area. In May 2006, OMX requested an arbitration process, expected to be
concluded in first half of 2008.
The Swedish Tax Board ruled in 2004 that OMX Nordic Exchange Stockholm AB
(formerly Stockholmsbörsen AB) will be subject to a value added tax surcharge
for the support and operation services it purchases from other companies within
the Group. OMX intends to appeal the ruling. New practice from the Swedish
Supreme Administrative Court and standpoints from the Swedish Tax Board in a
similar case have reduced the likelihood of a successful appeal. After holding
discussions with the Tax Board and analyzing the situation, OMX decided in
December 2007 to expense the amount. The effect is a nonrecurring expense of SEK
83 m for the fourth quarter of 2007, which impacts operating income, but has no
effect on cash flow. Operating income will be negatively impacted by
approximately SEK 3 m for the full-year 2008. OMX did not make any provisions
for the disputes in progress or changes in contingent liabilities during the
period.
NUMBER OF EMPLOYEES AND CONTRACTED CONSULTANTS
The number of employees and consultants in the Group was 1,638 (1,550) at the
end of the reporting period. The increase in the number of employees and
consultants was primarily due to increased activity within the business areas
Information Services & New Markets and Market Technology. The number of
employees was 1,508 (1,402) at the close of the reporting period, of which 351
(321) were employed in Nordic Marketplaces, 338 (309) in Information Services &
New Markets and 819 (772) in Market Technology. Of the total number of
employees, 75 (80) were on long-term leave, mainly parental leave.
DISCONTINUING OPERATIONS
Discontinuing operations comprise the UK sales operations in securities
administration. Revenues from discontinuing operations amounted to SEK 232 m
(124) in the period January-December, while expenses amounted to SEK 285 m
(163). The operating loss was SEK 53 m (loss: 39). In conjunction with the work
of creating conditions for sustainable profitability in the operations, extra
costs of SEK 20 m were incurred in the second quarter of 2007 and SEK 10 m in
the third quarter. Similar costs of SEK 7 m were incurred in the fourth quarter.
Lawshare was divested in the fourth quarter of 2007, a unit under discontinuing
operations that delivers broker services to investment companies and asset
managers. This divestment resulted in a capital gain of SEK 3 m in the quarter.
OMX's aim is to continue to identify a long-term solution with clear advantages
for the remaining parts of discontinuing operations. Discussions are currently
in progress with potential partners.
BUDGET FOR 2008
The merger between OMX and Nasdaq is expected to be completed in the first
quarter. For the purpose of preliminary integration planning OMX and Nasdaq have
therefore exchanged budgets for 2008. Below is a summary of OMX's budget.
The budget for 2008 was set on December 13, 2007, and based on the existing
business at that time. According to the budget, OMX' total revenues are
estimated to be around SEK 4,550 m, with an operating profit of approximately
SEK 1,300 m and a net profit of SEK 930 m. The budget is based, amongst other
things, on the following assumptions:
Revenues in business area Nordic Marketplaces are budgeted at around SEK 1,920
m, which is based on assumptions of normalised increase in trading volumes with
regards to both cash and derivatives markets as well as the negative impact from
lower trading fees. The number of listed companies and trading members are
expected to increase during the year.
Revenues in business area Information Services & New Markets being around SEK
960 m. Major assumptions for this include increased sales in all areas of the
existing business as well as the launch of new products and services, including
MiFID-related broker services, products related to market data as well as
products and services within Baltic markets.
Revenues in business area Market Technology is expected to be around SEK 1,790
m, with an operating margin of slightly above 10 percent. This is based on
increased order intake from both existing and new customers, as well as higher
operational efficiency.
OMX total expenses are budgeted to around SEK 3.3 billion. New initiatives and
the launch of new products and services will result in a larger cost base, along
with indexed cost increases. This will be partly offset by increased cost
efficiency in all business areas.
OMX total investments are expected to be around SEK 370 m. The main items being
the development of Genium and investments in new products and services.
ACQUISITION OF OPERATIONS FROM NORD POOL
It was announced in December that OMX had signed an agreement to acquire Nord
Pool ASA's clearing, consulting operations and international derivative
products. The business, except for Nord Pool Clearing ASA, will form the core of
a new Energy and Commodity Business Unit within OMX. Nord Pool Clearing will be
merged with OMX clearing organization to realize the potential of a joint
clearing business
OMX will pay NOK 2,150 m at completion, of which NOK 1,700 m in cash and NOK 450
m in a vendor note due to current owners of Nord Pool for an 18 month period
after completion. Furthermore, OMX has agreed to potential further earn-out
payments of a maximum of NOK 800 m based on volume over a five-year period.
For the first 11 months of 2007, the businesses to be acquired generated
revenues of NOK 316 m, operating income of NOK 98 m and net profit of NOK 84 m.
The entity has a cash position of NOK 666 m, including around NOK 500 m in
clearing capital. In addition, there is clearing capital in the form of an
insurance corresponding to a value of approximately NOK 600 m.
OMX estimates that the acquisition will lead to pre-tax synergies of
approximately NOK 60 m per year, of which half is revenue synergies and half is
cost synergies. Furthermore, OMX expects to release approximately NOK 500 m in
clearing capital over time. The acquisition is expected to be earnings accretive
for 2008.
The transaction is expected to be completed by mid-year 2008 and is subject to
due diligence, signing of the formal agreement, and approval by the regulatory
authorities.
REDUCTION IN FEES
OMX's strategy is that the Nordic Exchange will be one of Europe's leading
exchanges; and part of this strategy is to have competitive fees.
In December 2007, it was announced that OMX is to reduce its fees for equities
trading in Stockholm, Helsinki and Copenhagen by 20 percent from January 1,
2008, when fees are harmonized. In order to stimulate new trading behavior, for
example algorithmic or programmed trading, OMX will also make structural changes
to price lists and the trading fees for some of the Nordic Exchange's most
traded shares. The change in fees is also part of OMX's measures to strengthen
its customer offering, partly due to changes in the market climate after the
implementation of the EU Markets in Financial Instruments Directive (MiFID), and
is expected to increase trade on the Nordic Exchange.
Without taking into account potential effects of increased trading, the fee
reduction could have a negative effect on OMX revenues of approximately SEK 200
m annually, based on equity trading for 2007 as estimated in December.
In April 2007, fees were reduced by approximately 50 percent for reporting
transactions in Stockholm, Helsinki and Copenhagen.
In September 2007, it was announced that fees for trades reported to these
exchanges were to be reduced by approximately 50 percent more from November 1,
2007. Based on trading activity during the 12 months preceding this
announcement, the fee reduction would have a negative effect on OMX revenues by
approximately SEK 25 m annually.
The fee reductions are one step in the Nordic Exchange's offering of products
for trade reporting in accordance with the EU regulatory initiative MiFID. In
addition to the fee cut, OMX will simplify the reporting facility and extend its
offer for trade reporting to include securities from all over the European
Union.
In 2006, price adjustments were made primarily in derivatives and information
services.
ENHANCED FOCUS ON FIXED INCOME TRADING
It was announced in October 2007, after the end of the reporting period, that
OMX is to group its fixed income-related products and services in an
organizational unit to increase OMX's presence in the expanding fixed income
markets. The new fixed income organization will be established from January 1,
2008.
OMX offers clearing, trading and listing services for fixed income instruments.
The structural growth in the fixed income markets in recent years has heightened
demand for central counterparty clearing and electronic trading, while
transparency requirements are becoming stricter. OMX's products and services
satisfy all these needs and the enhanced focus will further improve the
conditions for growth.
In 2006, OMX revenues from fixed income-related products and services were
approximately SEK 250 m.
OUTSOURCING NETWORKS AND DATA CENTER MANAGEMENT
In August 2007, OMX announced that discussions had been initiated with an
external partner regarding the outsourcing of external network operations and
data center management. It was announced in September 2007 that an outsourcing
agreement had been concluded with Verizon Business. The contract is for seven
years. The agreement is part of OMX's efforts to increase profitability in the
Market Technology business area.
INFORMATION REGARDING THE PROPOSED COMBINATION AND PUBLIC TENDER OFFERS TO THE
OMX SHAREHOLDERS, ETC.
In a joint press release published on May 25, 2007, the Boards of Directors of
OMX and The NASDAQ Stock Market, Inc announced that they had entered into a
transaction agreement to combine the two companies through a public tender offer
from NASDAQ to the OMX shareholders. The public tender offer was presented in
the same press release. The consideration offered, which comprised a combination
of cash and NASDAQ shares, was equivalent to 0.502 new NASDAQ shares plus SEK
94.3 in cash for each OMX share. Based on NASDAQ's closing price on May 23, the
offer valued OMX at around SEK 208 per share.
On August 9, 2007, Borse Dubai Limited announced that it had purchased 4.9
percent of the shares in OMX for SEK 230 per share and that Borse Dubai had
entered into option agreements to acquire a further 22.5 percent shareholding
for SEK 230 per share. (Borse Dubai thereafter entered into additional option
agreements and subsequently indicated that the option agreements comprise 24.2
percent of the shares in OMX.)
On August 17, 2007, Borse Dubai announced a tender offer to OMX shareholders.
The offer corresponded to a cash payment of SEK 230 for each OMX share.
On September 20, 2007, NASDAQ and Borse Dubai announced that they had reached an
agreement to the effect that Borse Dubai's offer of SEK 230 in cash for each OMX
share was to remain, and that a series of transactions was subsequently to be
carried out that would involve NASDAQ purchasing all of Borse Dubai's shares in
OMX and Borse Dubai becoming the owner of 19.9 percent of the shares of the
combined NASDAQ OMX. The completion of the agreed, subsequent acquisition by
NASDAQ of Borse Dubai's shares in OMX is subject to certain conditions,
including that Borse Dubai holds more than 67 percent of the shares in OMX
following completion of the offer.
In a disclosure statement published by the Swedish Financial Supervisory
Authority (Sw. Finansinspektionen) on September 21, 2007, Qatar Holding LLC, a
wholly owned subsidiary of Qatar Investment Authority, announced that it had
acquired 9.98 percent of the shares in OMX.
On September 26, 2007, NASDAQ and Borse Dubai announced that Borse Dubai had
raised its tender offer to SEK 265 in cash for each OMX share and changed the
shareholder acceptance level condition from more than 90 percent to more than 50
percent. It was also announced that irrevocable undertakings had been secured
from shareholders representing 18.5 percent of the shares in OMX and that,
accordingly, 47.6 percent of the shares in OMX were now under Borse Dubai's
control through direct ownership, option agreements and irrevocable
undertakings. (Borse Dubai thereafter secured additional irrevocable
undertakings and subsequently indicated that such irrevocable undertakings
comprise in total 19.3 percent of the shares in OMX.)
On September 27, 2007, the Swedish FSA announced that after completing an
ownership assessment, NASDAQ had been approved as a shareholder of OMX.
Further, on November 12, 2007, the Swedish FSA announced that Borse Dubai had
also been approved as a shareholder of OMX.
On December 4, 2007, the Swedish FSA announced that Qatar Holding had withdrawn
its corresponding application for ownership assessment as a shareholder of OMX.
On December 31, 2007, Borse Dubai announced that clearance had been obtained
from The Committee on Foreign Investment (CFIUS) in the United States concerning
Borse Dubai's investment in NASDAQ. Further, Borse Dubai announced that all the
conditions under the agreement between Borse Dubai and NASDAQ thereby had been
satisfied or waived and that Borse Dubai shortly intended to file an offer
document for approval. In a press release published on the same day, December
31, 2007, NASDAQ announced that it has formally withdrawn its offer for OMX as
part of its transaction with Borse Dubai.
In a press release published on January 2, 2008, the Board of Directors of OMX
unanimously recommended the public offer from Borse Dubai, taking into account
the agreed, subsequent acquisition of OMX shares by NASDAQ. In the
recommendation, the Board of Directors also noted that a letter had been
received from NASDAQ, dated December 14, 2007, regarding the interpretation of
the original transaction agreement between NASDAQ and OMX. In the letter, NASDAQ
clarifies and confirms its understanding that, upon NASDAQ's subsequent
acquisition of Borse Dubai's shares in OMX, NASDAQ and OMX's previous agreements
regarding, among other things, board composition, corporate name, senior
management and OMX Nordic Exchange secondary listing of the combined NASDAQ OMX
shall apply, with certain modifications, as if NASDAQ's original offer of 25 May
2007 had been consummated.
On January 4, 2008, Borse Dubai announced its offer document in respect of its
public offer.
In conjunction with ongoing activities relating to the above, OMX has incurred
costs, of which approximately SEK 12 million is reported under other external
expenses and approximately SEK 97 million has been capitalized.
See www.omxgroup.com for detailed information regarding the above, including the
OMX Board's Recommendation as of January 2, 2008, and Borse Dubai's offer
document.
ACQUISITION OF THE ARMENIAN STOCK EXCHANGE
At the end of November 2006, OMX announced that it had begun to investigate the
possibility of more extensive business opportunities in Eastern Europe. On April
27, 2007, it was announced that OMX had signed a Declaration of Intent with the
Armenian central bank and the Armenian government concerning the acquisition of
the Armenian Stock Exchange and the Armenian central securities depository. It
was announced in November that OMX had signed a Share Purchase Agreement in
accordance with the Declaration of Intent. The shares were transferred to OMX's
possession at the beginning of January 2008. In addition to the Share Purchase
Agreement, OMX and the Armenian government have also signed a Cooperation
Agreement outlining joint efforts to support the long-term development of the
capital market in Armenia.
LAUNCH OF GENIUM
Genium - OMX's new technology for trading, post-trade and information services -
was launched in February 2007. The first deliveries encompass standardized
solutions for access to trading and market data, and solutions for the
distribution and processing of market data. Development activities at OMX
intensified in conjunction with the introduction of Genium. The development
takes place within the Market Technology business area. Genium is initially
being developed for OMX's Nordic Exchange, which is the reason that the asset
generated by OMX was transferred to the Nordic Marketplaces business area on
March 31, 2007. A difference in the eliminations of expenses and revenues in the
Group has arisen as there is a difference between costs in Market Technology and
the amount that OMX is able to capitalize. This accounting effect will remain
for the entire duration of the development project.
ACQUISITION OF FINDATA AB
In March 2007, it was announced that OMX had acquired Findata AB, a leading
supplier of information on Nordic companies that offers customized indices.
Findata has seven employees located in Stockholm and its revenues amounted to
SEK 17 m, with significant profitability for full-year 2006. The purchase price
amounted to SEK 43.5 m and an additional earn out payment of a maximum of SEK 35
m (see acquisition calculation page 19). The operations are consolidated into
the Information Services & New Markets business area from March 1, 2007.
PARTNERSHIP WITH THE ST. PETERSBURG EXCHANGE & RX
It was announced in March 2007 that OMX had entered into a partnership with the
St. Petersburg Exchange and RX, a group of venture capitalists, to create the
International Exchange St. Petersburg, IXSP, a stock exchange of international
standards in St. Petersburg. IXSP will offer Russian companies access to
international capital without having to seek listings on exchanges outside
Russia. OMX will deliver the platform for trading and market data dissemination,
and provide its expertise in marketplace services. The parties will each own one
third of the new company.
RESOLUTIONS BY OMX AGM 2007
Share Match Program 2007
OMX's Annual General Meeting on April 12, 2007 resolved to approve the proposed
share match program 2007 regarding approximately 95 senior executives and key
individuals in OMX. The share match program 2007 has not been, and will not be,
initiated, due to the fact that OMX has been subject to public tender offers
since May 2007.
A total of 26,855 shares were invested in the share match program 2006. OMX AB
has signed a share-swap agreement amounting to 57,000 shares as a result of the
program, which is reported as a shareholders' equity instrument in accordance
with IAS 32. The cost of the program for the period was SEK 8 m, including
social security expenses, and the cost of the program's entire term is estimated
at SEK 20 m. If a public tender is executed, the share match program 2006 will
mature and be redeemed on the basis of the terms and conditions of the program.
DIVIDEND
OMX's Annual General Meeting on April 12, 2007 approved the distribution of a
dividend of SEK 6.50 per share to shareholders, of which regular dividend of SEK
4.50 and an extra dividend of SEK 2.00.
AUTHORIZATION ON REPURCHASE OF SHARES
OMX's Annual General Meeting on April 12, 2007 approved the authorization of the
Board to repurchase shares corresponding to a maximum of 10 percent of the total
number of shares outstanding. The repurchase could take place through trading on
the stock exchange or a directed offering to shareholders. OMX does not
currently own any treasury shares. This mandate applies until the 2008 Annual
General Meeting. The purpose of the proposal is to be able to continuously adapt
the capital structure to the company's needs and thereby increase value for
shareholders, and repurchase shares that could be used for the execution of
OMX's Share Match Program.
NEW BOARD OF DIRECTORS
At OMX's Annual General Meeting on April 12, 2007, the Board members Urban
Bäckström, Bengt Halse, Birgitta Klasén, Hans Munk Nielsen and Markku Pohjola
were re-elected. Lars Wedenborn and Birgitta Kantola were elected as new members
of the Board. Urban Bäckström was elected Chairman of the Board.
AUTHORIZATION ON RAISING CERTAIN LOANS
OMX's Annual General Meeting on April 12, 2007 resolved to authorize the Board
to take the decision to raise loans for which the interest or the amount by
which repayment occurs is wholly or partially dependent on the dividend to
shareholders, the performance of the OMX share, the company's earnings or the
company's financial position.
2008 ANNUAL GENERAL MEETING
OMX's Annual General Meeting will be held on Monday, April 21, 2008 at 5:00 PM ,
at OMX's headquarters in Stockholm, with the reservation that the Annual General
Meeting is likely to be postponed, would the merger with Nasdaq be carried out
in the first quarter. The annual report will be distributed to shareholders
requesting the report and will be available to the general public on OMX's
website at www.omxgroup.com from March 17.
INTERIM REPORT JANUARY-MARCH 2008
The interim report for January-March 2008 is scheduled for releas on April 17,
2008, with the reservation that the report is likely to be postponed, would the
merger with Nasdaq be carried out in the first quarter.
FINANCIAL TARGETS
OMX endeavors to generate profitable growth with a return exceeding the market's
return requirement. To achieve this target in a medium-term perspective, the
following financial targets have been established as a guide for OMX: return on
shareholders' equity shall amount to at least 15 percent annually, while the net
debt/equity ratio shall not exceed 30 percent over time.
DIVIDEND POLICY & PROPOSED DISTRIBUTION OF EARNINGS
The Board's ambition is that OMX's ordinary dividend shall grow in pace with the
company's earnings per share, taking OMX's long-term capital requirements into
account. However, the Board does not intend to propose that any dividends be
paid for the 2007 fiscal year due to the public take-over bid presented for all
of the outstanding shares in OMX AB.
THE FOLLOWING EARNINGS ARE AT THE DISPOSAL OF THE ANNUAL GENERAL MEETING (SEK):
--------------------------------------------------------------------------------
| Income brought forward | 1,440,714,792 |
--------------------------------------------------------------------------------
| Income for the year | 186,667,395 |
--------------------------------------------------------------------------------
| TOTAL | 1,627,382,187 |
--------------------------------------------------------------------------------
THE BOARD PROPOSES THAT THE EARNINGS BE DISTRIBUTED AS FOLLOWS:
--------------------------------------------------------------------------------
| To be carried forward | 1,627,382,187 |
--------------------------------------------------------------------------------
The proposed distribution of earnings and proposed income statement and balance
sheet shall be approved at the Annual General Meeting.
INCOME STATEMENT OCTOBER-DECEMBER October - December
2007 2006
-------------------- ----------------------
--------------------------------------------------------------------------------
| SEK m | Conti | Opera | Total | Conti | Opera | Total |
| | nuin | tion | OMX | n | tions | O |
| | g | s | | uing | being | MX |
| | opera | being | | opera | dis- | |
| | tion | dis- | | t | Conti | |
| | s | Conti | | ions | nued | |
| | | nued | | | 4) | |
--------------------------------------------------------------------------------
| REVENUE | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 1,018 | 58 | 1,076 | 904 | 36 | 940 |
--------------------------------------------------------------------------------
| Own work capitalized | 34 | - | 34 | 2 | - | 2 |
| 1) | | | | | | |
--------------------------------------------------------------------------------
| Other revenue 2) | - | 3 | 3 | 83 | - | 83 |
--------------------------------------------------------------------------------
| Total revenue | 1,052 | 61 | 1,113 | 989 | 36 | 1,025 |
--------------------------------------------------------------------------------
| EXPENSES | | | | | | |
--------------------------------------------------------------------------------
| External expenses | | | | | | |
--------------------------------------------------------------------------------
| Premises | -43 | -2 | -45 | -54 | -2 | -56 |
--------------------------------------------------------------------------------
| Marketing expenses | -28 | - | -28 | -31 | - | -31 |
--------------------------------------------------------------------------------
| Consultancy expenses | -99 | -3 | -102 | -84 | - | -84 |
--------------------------------------------------------------------------------
| Operations and | -146 | -1 | -147 | -60 | -2 | -62 |
| maintenance, IT | | | | | | |
--------------------------------------------------------------------------------
| Other external | -71 | -32 | -103 | -57 | -20 | -77 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Personnel expenses | -347 | -27 | -374 | -285 | -23 | -308 |
--------------------------------------------------------------------------------
| Depreciation and | -65 | -2 | -67 | -54 | -2 | -56 |
| impairment | | | | | | |
--------------------------------------------------------------------------------
| Total expenses | -799 | -67 | -866 | -625 | -49 | -674 |
--------------------------------------------------------------------------------
| Participation in | 8 | - | 8 | 4 | - | 4 |
| earnings of associated | | | | | | |
| companies | | | | | | |
--------------------------------------------------------------------------------
| Operating income | 261 | -6 | 255 | 368 | -13 | 355 |
--------------------------------------------------------------------------------
| Financial items | -11 | -2 | -13 | -16 | - | -16 |
--------------------------------------------------------------------------------
| Income/loss after | 250 | -8 | 242 | 352 | -13 | 339 |
| finanicial items | | | | | | |
--------------------------------------------------------------------------------
| Tax | -41 | 0 | -41 | -43 | 0 | -43 |
--------------------------------------------------------------------------------
| Net income/loss for | 209 | -8 | 201 | 309 | -13 | 296 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| of which attributable | 208 | -8 | 200 | 308 | -13 | 295 |
| to shareholders in OMX | | | | | | |
| AB | | | | | | |
--------------------------------------------------------------------------------
| of which attributable | 1 | - | 1 | 1 | - | 1 |
| to minority interests | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of | | | 120.64 | | | 119.262 |
| shares, millions | | | 0 | | | |
--------------------------------------------------------------------------------
| Number of shares at | | | 120.64 | | | 120.640 |
| period end, millions | | | 0 | | | |
--------------------------------------------------------------------------------
| Average number of | | | 120.64 | | | 119.262 |
| shares after full | | | 0 | | | |
| conversion, millions | | | | | | |
--------------------------------------------------------------------------------
| Number of shares after | | | 120.64 | | | 120.640 |
| full conversion at | | | 0 | | | |
| period end, millions | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 1.73 | | 1.66 | 2.59 | | 2.47 |
| SEK 3) | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 1.73 | | 1.66 | 2.59 | | 2.47 |
| SEK after full | | | | | | |
| conversion 3) | | | | | | |
--------------------------------------------------------------------------------
1) Own work invested in assets during the period, which are carried as fixed
assets, has been recognized in revenue under the heading ”Own work capitalized.”
This item refers only to capitalized personnel costs. Personnel costs were not
reduced for the work pertaining to capitalized assets, instead the costs are met
by reported revenue. Accordingly, revenue recognition of own work capitalized
has no impact on results, but has a negative effect on the operating margin.
2) For the periods October-December 2007 and January-December 2007 Other revenue
refers to earnings of SEK 3 m attributable to the sale of Lawshare Ltd and for
the period January- December 2007 also to SEK 101 m attributable to the sale of
shares in ORC Software. For the period and January-December 2006 the item refers
to earnings of SEK 22 m attributable to the sale of shares in NOS ASA. and for
January-December and October-December 2006 also to earnings of SEK 83 m
attributable to the sale of shares in VPC AB.
3) Earnings per share are calculated on the basis of the weighted average number
of shares during the period. This is based on OMX AB shareholders' share of
earnings for the period.
4) The income statement for discontinuing operations has been adjusted as
compared with the Annual Report as a result of organizational changes where
certain parts of the business area have been retained.
INCOME STATEMENT 2007
2007 2006
-------------------- ----------------------
--------------------------------------------------------------------------------
| SEK m | Conti | Opera | Total | Conti | Opera | Total |
| | nuin | tion | OMX | n | tions | O |
| | g | s | | uing | being | MX |
| | opera | being | | opera | dis- | |
| | tion | dis- | | t | Conti | |
| | s | Conti | | ions | nued | |
| | | nued | | | 4) | |
--------------------------------------------------------------------------------
| REVENUE | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 3,838 | 229 | 4,067 | 3,313 | 124 | 3,437 |
--------------------------------------------------------------------------------
| Own work capitalized 1 | 134 | - | 134 | 68 | - | 68 |
--------------------------------------------------------------------------------
| Other revenue 2) | 101 | 3 | 104 | 105 | - | 105 |
--------------------------------------------------------------------------------
| Total revenue | 4,073 | 232 | 4,305 | 3,486 | 124 | 3,610 |
--------------------------------------------------------------------------------
| EXPENSES | | | | | | |
--------------------------------------------------------------------------------
| External expenses | | | | | | |
--------------------------------------------------------------------------------
| Premises | -180 | -8 | -188 | -204 | -6 | -210 |
--------------------------------------------------------------------------------
| Marketing expenses | -70 | - | -70 | -63 | - | -63 |
--------------------------------------------------------------------------------
| Consultancy expenses | -366 | -10 | -376 | -310 | - | -310 |
--------------------------------------------------------------------------------
| Operations and | -308 | -9 | -317 | -239 | -16 | -255 |
| maintenance, IT | | | | | | |
--------------------------------------------------------------------------------
| Other external | -245 | -139 | -384 | -167 | -56 | -223 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Personnel expenses | -1,32 | -112 | -1,438 | -1,083 | -77 | -1,160 |
| | 6 | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -262 | -7 | -269 | -216 | -8 | -224 |
| impairment | | | | | | |
--------------------------------------------------------------------------------
| Total expenses | -2,75 | -285 | -3,042 | -2,282 | -163 | -2,445 |
| | 7 | | | | | |
--------------------------------------------------------------------------------
| Participation in | 44 | - | 44 | 46 | - | 46 |
| earnings of associated | | | | | | |
| companies | | | | | | |
--------------------------------------------------------------------------------
| Operating income | 1,360 | -53 | 1,307 | 1,250 | -39 | 1,211 |
--------------------------------------------------------------------------------
| Financial items | -62 | -10 | -72 | -53 | -7 | -60 |
--------------------------------------------------------------------------------
| Income/loss after | 1,298 | -63 | 1,235 | 1,197 | -46 | 1,151 |
| finanicial items | | | | | | |
--------------------------------------------------------------------------------
| Tax | -249 | 0 | -249 | -240 | 0 | -240 |
--------------------------------------------------------------------------------
| Net income/loss for | 1,049 | -63 | 986 | 957 | -46 | 911 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| of which attributable | 1,042 | -63 | 979 | 953 | -46 | 907 |
| to shareholders in OMX | | | | | | |
| AB | | | | | | |
--------------------------------------------------------------------------------
| of which attributable | 7 | - | 7 | 4 | - | 4 |
| to minority interests | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of | | | 120.64 | | | 118.671 |
| shares, millions | | | 0 | | | |
--------------------------------------------------------------------------------
| Number of shares at | | | 120.64 | | | 120.640 |
| period end, millions | | | 0 | | | |
--------------------------------------------------------------------------------
| Average number of | | | 120.64 | | | 118.886 |
| shares after full | | | 0 | | | |
| conversion, millions | | | | | | |
--------------------------------------------------------------------------------
| Number of shares after | | | 120.64 | | | 120.640 |
| full conversion at | | | 0 | | | |
| period end, millions | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 8.64 | | 8.12 | 8.03 | | 7.64 |
| SEK 3) | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 8.64 | | 8.12 | 8.03 | | 7.64 |
| SEK after full | | | | | | |
| conversion 3) | | | | | | |
--------------------------------------------------------------------------------
1) Own work invested in assets during the period, which are carried as fixed
assets, has been recognized in revenue under the heading ”Own work capitalized.”
This item refers only to capitalized personnel costs. Personnel costs were not
reduced for the work pertaining to capitalized assets, instead the costs are met
by reported revenue. Accordingly, revenue recognition of own work capitalized
has no impact on results, but has a negative effect on the operating margin.
2) For the periods October-December 2007 and January-December 2007 Other revenue
refers to earnings of SEK 3 m attributable to the sale of Lawshare Ltd and for
the period January- December 2007 also to SEK 101 m attributable to the sale of
shares in ORC Software. For the period and January-December 2006 the item refers
to earnings of SEK 22 m attributable to the sale of shares in NOS ASA. and for
January-December and October-December 2006 also to earnings of SEK 83 m
attributable to the sale of shares in VPC AB.
3) Earnings per share are calculated on the basis of the weighted average number
of shares during the period. This is based on OMX AB shareholders' share of
earnings for the period.
4) The income statement for discontinuing operations has been adjusted as
compared with the Annual Report as a result of organizational changes where
certain parts of the business area have been retained.
NOTES TO THE INCOME STATEMENT FOR THE FOURTH QUARTER 2007
Total revenue amounted to SEK 1,113 m (1,025), including SEK 3 m in revenue from
the sale of Lawshare Ltd. Revenue for 2006 includes SEK 83 m from the sale of
shares in VPC AB. Consolidated net sales amounted to SEK 1,076 m (940). Own work
capitalized amounted to SEK 34 m (2) during the period, primarily referring to
systems development. The calculation of own work capitalized was corrected in
the fourth quarter of 2006 in the amount of SEK 19 m for the full-year, which is
the reason for the low amount in the fourth quarter. Refer to pages 16 for
revenue per business area.
The Group's total expenses amounted to SEK 866 m (674) for the reporting period.
Operating expenses include a cost of SEK 83 m, under operations and maintenance
IT, as a nonrecurring effect of OMX decision to expense an extra VAT cost (see
page 5). This cost has no impact on cash flow. Excluding the VAT cost, the
increase in expenses is primarily due to increased personnel and other external
expenses as a result of heightened market activity and non-capitalized costs
related to the merger with Nasdaq.
The Group's share in the earnings of associated companies amounted to SEK 8 m
(4) and is attributable to EDX London, Orc Software and the Lithuanian
securities depository CSDL. The main reason for this increase was improved
earnings for Orc Software and EDX London. NLK is no longer an associated
company. During the year, OMX owned 90 percent of the capital and 48 percent of
the votes in NLK. The entire company was acquired in the fourth quarter of 2007
and NLK subsequently became a wholly owned subsidiary in the Group.
Net financial items for the Group amounted to an expense of SEK 13 (expense:
16), a positive change compared with 2006 primarily due to the positive
nonrecurring effects of SEK 8 m arising in the fourth quarter of 2007 in
conjunction with the consolidation of NLK. In addition, the Group's interest
expenses were negatively affected as a result of rising market rates. Tax
expenses for the reporting period amounted to SEK 41 m (43), corresponding to a
tax rate of 17 percent (13). One main reason for the low tax rate was the
additional VAT expenses that reduced the taxable amount in Sweden and
recognition of approved tax losses.
NOTES TO THE INCOME STATEMENT FOR 2007
Total revenue amounted to SEK 4,305 m (3,610), including SEK 101 m from the sale
of shares in Orc Software and SEK 3 m in revenue from the sale of Lawshare Ltd.
Revenue for 2006 includes SEK 22 m from the sale of shares in NOS during the
first quarter and SEK 83 m from the sale of shares in VPC AB during the fourth
quarter. Consolidated net sales amounted to SEK 4,067 m (3,437). Own work
capitalized amounted to SEK 134 m (68) during the period, primarily pertaining
to systems development. Refer to pages 16 for revenue per business area.
The Group's total expenses amounted to SEK 3,042 m (2,445) for the reporting
period. Operating expenses include a cost of SEK 83 m for the fourth quarter of
2007 as a nonrecurring effect of OMX decision to expense an extra VAT cost (see
page 5). This cost has no impact on cash flow. The increase in expenses is
primarily due to increased personnel and consultancy expenses as a result of
heightened market activity and new product and services drives.
The Group's share in the earnings of associated companies amounted to SEK 44 m
(46) and is attributable to VPC AB (NCSD), EDX London, Orc Software, NLK and the
Lithuanian securities depository CSDL. The main reason for the decrease is that
VPC AB since the fourth quarter 2006 no longer is an associated company.
Adjusted for that, the earnings from associated companies increased due to
improved earnings for Orc Software and EDX London.
Net financial items for the Group amounted to an expense of SEK 72 m (expense:
60). Tax expenses for the reporting period amounted to SEK 249 m (240),
corresponding to a tax rate of 20 (21) percent.
BALANCE SHEET
--------------------------------------------------------------------------------
| SEK m | Dec 2007 | Dec 2006 |
--------------------------------------------------------------------------------
| Goodwill | 3,304 | 3,140 |
--------------------------------------------------------------------------------
| Other intangible fixed assets | 1,535 | 1,210 |
--------------------------------------------------------------------------------
| Tangible fixed assets | 288 | 321 |
--------------------------------------------------------------------------------
| Financial fixed assets, non-interest-bearing | 779 | 699 |
--------------------------------------------------------------------------------
| Financial fixed assets, interest-bearing | 20 | 21 |
--------------------------------------------------------------------------------
| Total fixed assets | 5,926 | 5,391 |
--------------------------------------------------------------------------------
| Market value outstanding derivative positions | 3,404 | 4,401 |
| 3) | | |
--------------------------------------------------------------------------------
| Current receivables 1) 4) | 1,828 | 1,738 |
--------------------------------------------------------------------------------
| Financial assets available for sale | 607 | 518 |
--------------------------------------------------------------------------------
| Liquid assets 2) | 424 | 410 |
--------------------------------------------------------------------------------
| Assets held for sale | 47 | 70 |
--------------------------------------------------------------------------------
| Total current assets | 6,310 | 7,137 |
--------------------------------------------------------------------------------
| Total assets | 12,236 | 12,528 |
--------------------------------------------------------------------------------
| Shareholders' equity | 5,117 | 4,614 |
--------------------------------------------------------------------------------
| Long-term liabilities, non-interest-bearing | 280 | 282 |
--------------------------------------------------------------------------------
| Long-term liabilities, interest-bearing | 858 | 1,360 |
--------------------------------------------------------------------------------
| Total long-term liabilities | 1,138 | 1,642 |
--------------------------------------------------------------------------------
| Market value outstanding derivative positions | 3,404 | 4,401 |
| 3) | | |
--------------------------------------------------------------------------------
| Current liabilities, non-interest-bearing 4) | 1,504 | 1,434 |
--------------------------------------------------------------------------------
| Current liabilities, interest-bearing | 1,073 | 437 |
--------------------------------------------------------------------------------
| Total current liabilities | 5,981 | 6,272 |
--------------------------------------------------------------------------------
| Total liabilities and shareholders' equity | 12,236 | 12,528 |
--------------------------------------------------------------------------------
In addition to assets and liabilities reported in the balance sheet, OMX has
deposits on client funds accounts that totaled SEK 3,170 m at December 31, 2007
and SEK 2,604 m at December 31, 2006.
1) Of which interest-bearing receivables amounted to SEK 29 m at December 31,
2007 and SEK 1 m at December 31, 2006.
2) Assets held for sale have been adjusted for periods in 2006 compared with
interim reports in 2006 as a result of organizational changes where certain
parts of the business area have been retained.
3) Through its clearing operations in the derivatives markets, Nordic
Marketplaces is the formal counterparty in all derivatives positions traded via
the exchanges. However, the exchanges do not utilize the derivatives for purpose
of conducting their own trading, instead these derivatives are to be seen as a
method of documenting the counterparty guarantees established in the clearing
operations.
4) Includes current trading accounts in the amount of SEK 549 m at December 31,
2007 and SEK 650 m at December 31, 2006, mainly arising in the UK operations for
the sale of securities administration services, organized under discontinuing
operations.
NOTES TO THE BALANCE SHEET
Consolidated goodwill amounted to SEK 3,319 m (3,170) at period-end, including
assets held for sale of SEK 15 m (46). Consolidated goodwill pertains primarily
to the Nordic Marketplaces business area, and refers to strategic acquisitions
of operations with a long history and stable and strong cash flow. During the
period, investments in goodwill amounted to SEK 47 m, of which SEK 43 m was
attributable to the acquisition of Findata AB.
Other intangible assets of SEK 1,563 m (1,241), including assets held for sale,
consist mainly of capitalized development costs for system products that are
amortized over a period of 3-10 years and valued on a current basis against
prevailing market conditions, as well as intangible assets attributable to
acquisitions. The increase in intangible assets is partly attributable to the
acquisition of Findata and investments in the next generation of trading system
- Genium. Assessment to ascertain possible impairment of intangible fixed assets
is conducted on an ongoing basis.
At period-end, the Group's deferred tax assets amounted to SEK 113 m (125).
Provisions were utilized in an amount of SEK 28 m (49) during the period.
The Group's investments in other intangible assets during the period were SEK
447 m (229). A major part of these investments were in the technology
operations, partly for a license from Cicada for technology pertaining to the
development of a new system for information dissemination. In addition,
investments were made in the development of Genium and assets of SEK 30 m were
indentified in conjunction with the acquisition of Findata AB. Investments in
tangible fixed assets amounted to SEK 66 m (77).
In the UK securities management operation, which is organized within
discontinuing operations, OMX has the role of intermediary in securities
transactions. During the period between transaction and settlement (usually one
to five days), OMX has a receivable pertaining to the purchasing party and a
liability pertaining to the selling party. These cannot be offset (see Note 4 in
the table above).
The market value of OMX's holding in the associated company Orc Software (4.5
million shares) at period-end was SEK 624 m (524), while the carrying amount,
booked under non-interest bearing financial fixed assets, was SEK 83 m (76).
CHANGE IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| SEK m | 2007 | 2006 |
--------------------------------------------------------------------------------
| Shareholders' equity - opening balance | 4,614 | 4,749 |
--------------------------------------------------------------------------------
| Minority interests | 1 | -1 |
--------------------------------------------------------------------------------
| New issue | - | 269 |
--------------------------------------------------------------------------------
| Dividend to shareholders 1) | -781 | -1,120 |
--------------------------------------------------------------------------------
| Share swap for share-investment program | - | -8 |
--------------------------------------------------------------------------------
| Share-investment program | 3 | 2 |
--------------------------------------------------------------------------------
| Cash-flow hedging | 18 | -18 |
--------------------------------------------------------------------------------
| Translation differences | 134 | -173 |
--------------------------------------------------------------------------------
| Reassessments reported against shareholders' | 120 | -12 |
| equity | | |
--------------------------------------------------------------------------------
| Changes in shareholders' equity of associated | 24 | 15 |
| company | | |
--------------------------------------------------------------------------------
| Other | -2 | 0 |
--------------------------------------------------------------------------------
| Net income in reporting period 2) | 986 | 911 |
--------------------------------------------------------------------------------
| Shareholders' equity - closing balance | 5,117 | 4,614 |
--------------------------------------------------------------------------------
1) For the period January-December 2007 total dividends to shareholders of SEK
784 m has been paid, of which OMX received SEK 3 m (see text: Comments to cash
flow statement).
2) Of which, the minority share was SEK 7 m for January-December 2007, and SEK 4
m for January-December 2006.
CASH-FLOW STATEMENT Current period Current period
Oct-Dec Jan-Dec
--------------------------------------------------------------------------------
| SEK m | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| Cash flow from current operations | | | | |
--------------------------------------------------------------------------------
| before changes in working capital | 221 | 242 | 1,180 | 1,002 |
--------------------------------------------------------------------------------
| Change in working capital | 87 | 68 | -21 | 30 |
--------------------------------------------------------------------------------
| Cash flow from current operations | 308 | 310 | 1,159 | 1,032 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | -147 | 427 | -497 | -284 |
--------------------------------------------------------------------------------
| Dividend to shareholders | - | -355 | -781 | -1,120 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | 19 | -202 | 133 | -133 |
--------------------------------------------------------------------------------
| Change in liquid assets | 180 | 180 | 14 | -505 |
--------------------------------------------------------------------------------
| Liquid assets - opening balance1 ) 2 | 244 | 230 | 410 | 915 |
| ) | | | | |
--------------------------------------------------------------------------------
| Liquid assets - closing balance1 ) 2 | 424 | 410 | 424 | 410 |
| ) | | | | |
--------------------------------------------------------------------------------
1) Cash and cash equivalents comprise cash and bank balances, as well as
financial investments with a term of less than three months. Short-term
investments with a term of more than three months are reported as cash flow from
investing activities.
2)Cash and cash equivalents not available to the Group amounted to SEK 221 m at
period-end. Funds earmarked for operations under supervision amounted to SEK 685
m, of which SEK 607 m is accounted for as Financial assets held for sale and is
included in cash flow from financing activities.
NOTES TO CHANGES IN SHAREHOLDERS' EQUITY
Shareholders' equity amounted to SEK 5,117 m (4,614), of which the minority
share was 25 (17) at period-end. This change in shareholders' equity compared
with the end of the year-earlier period is mainly due to the positive earnings
for the period, an increase in the market value of the Group's holdings of SEK
120 m in the Oslo Stock Exchange and dividends to shareholders of SEK 781 m in
2007.
NOTES TO THE CASH-FLOW STATEMENT
Cash flow from operating activities before changes in working capital comprises
operating income with depreciation and capital gains (other revenue) reversed,
plus adjustments for financial items and paid tax. During the report period
January - December, investments in intangible assets affecting the cash flow
amounted to SEK 444 m (390) and investments in tangible assets affecting the
cash flow amounted to SEK 66 (77) m.
The investment activities during the period have mainly consisted of the
acquisition of Findata, the acquisition of a license from Cicada and investments
in own systems. Cash flow from investing activities also includes the cash flow
effect from the divestment of shares in Orc Software, a positive effect from the
consolidation of NLK and changes in financial investments with a term of more
than three months amounting to an expense of SEK 89 m (positive: 205), which has
been transferred from cash and cash equivalents.
During the fourth quarter, investments in intangible assets affecting the cash
flow amounted to SEK 98 m (68) and investments in tangible assets to SEK 17 m
(43). Cash flow from investing activities in the fourth quarter also includes a
positive effect of the consolidation of NLK and a change in financial
investments with a term of more than three months in the amount of SEK a
negative 120 m (271), which has been transferred from cash and cash equivalents.
Cash flow from investing activities for the fourth quarter of 2006 was also
impacted by the sale of VPC AB and an investment in the Oslo Stock Exchange.
PARENT COMPANY
INCOME STATEMENT Current period Oct-Dec Current period Jan-Dec
--------------------------------------------------------------------------------
| Mkr | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| REVENUE | | | | |
--------------------------------------------------------------------------------
| Net sales | 25 | 29 | 79 | 127 |
--------------------------------------------------------------------------------
| Other revenue 1) | - | - | - | 22 |
--------------------------------------------------------------------------------
| Total revenue | 25 | 29 | 79 | 149 |
--------------------------------------------------------------------------------
| EXPENSES | | | | |
--------------------------------------------------------------------------------
| Premises | -22 | -22 | -87 | -94 |
--------------------------------------------------------------------------------
| Marketing expenses | -6 | -16 | -19 | -29 |
--------------------------------------------------------------------------------
| Consultancy expenses | -9 | -8 | -33 | -33 |
--------------------------------------------------------------------------------
| Operations and maintenance, IT | -5 | -12 | -18 | -14 |
--------------------------------------------------------------------------------
| Other external expenses | -9 | -24 | -22 | -29 |
--------------------------------------------------------------------------------
| Personnel expenses | -40 | -24 | -77 | -50 |
--------------------------------------------------------------------------------
| Depreciation and impairment | -8 | -7 | -30 | -28 |
--------------------------------------------------------------------------------
| Total expenses | -99 | -113 | -286 | -277 |
--------------------------------------------------------------------------------
| Operating income | -74 | -84 | -207 | -128 |
--------------------------------------------------------------------------------
| Financial items | -92 | 56 | 229 | -13 |
--------------------------------------------------------------------------------
| Income/loss after finanicial | -166 | -28 | 22 | -141 |
| items | | | | |
--------------------------------------------------------------------------------
| Tax | 88 | 18 | 165 | 65 |
--------------------------------------------------------------------------------
| Net income/loss for the period | -78 | -10 | 187 | -76 |
--------------------------------------------------------------------------------
1) Other revenue refers to earnings of SEK 22 m attributable to the sale of
shares in NOS ASA during the periods January - December 2006.
NOTES TO THE INCOME STATEMENT
The legal entity OMX AB, the Group's Parent Company, comprises the Group's
corporate functions and conducts holding company operations on behalf of Group
subsidiaries. Revenue totaled SEK 79 m (149) for the reporting period. Financial
items include dividends from subsidiaries amounting to SEK 462 m. The result
after financial items was SEK 22 m (loss: 141). The increase from the same
period in 2006 is mainly attributable to dividends from subsidiaries accounted
for in the financial items.
PARENT COMPANY
BALANCE SHEET
--------------------------------------------------------------------------------
| SEK m | December | December |
| | 2007 | 20 |
| | | 06 |
--------------------------------------------------------------------------------
| Intangible fixed assets | 16 | 16 |
--------------------------------------------------------------------------------
| Tangible fixed assets | 74 | 90 |
--------------------------------------------------------------------------------
| Financial fixed assets, non-interest-bearing | 8,350 | 8,165 |
--------------------------------------------------------------------------------
| Financial fixed assets, interest-bearing | 10 | 3 |
--------------------------------------------------------------------------------
| Total fixed assets | 8,450 | 8,274 |
--------------------------------------------------------------------------------
| Receivables from Group companies | 1,114 | 404 |
--------------------------------------------------------------------------------
| Other short term receivables | 118 | 43 |
--------------------------------------------------------------------------------
| Liquid assets | 2 | 1 |
--------------------------------------------------------------------------------
| Total current assets | 1,234 | 448 |
--------------------------------------------------------------------------------
| Total assets | 9,684 | 8,722 |
--------------------------------------------------------------------------------
| Shareholders' equity | 4,371 | 4,603 |
--------------------------------------------------------------------------------
| Long-term liabilities, interest-bearing | 17 | 15 |
--------------------------------------------------------------------------------
| Long-term liabilities, non-interest-bearing | 858 | 1,360 |
--------------------------------------------------------------------------------
| Total long-term liabilities | 875 | 1,375 |
--------------------------------------------------------------------------------
| Liabilities to Group companies | 3,318 | 2,280 |
--------------------------------------------------------------------------------
| Current liabilities, non-interest-bearing | 75 | 66 |
--------------------------------------------------------------------------------
| Current liabilities, interest-bearing | 1,045 | 398 |
--------------------------------------------------------------------------------
| Total current liabilities | 4,438 | 2,744 |
--------------------------------------------------------------------------------
| Total shareholders' equity and liabilities | 9,684 | 8,722 |
--------------------------------------------------------------------------------
NOTES TO THE BALANCE SHEET
The increase in financial fixed assets compared with the preceding period is
primarily attributable to the rise in the market capitalization of the company's
holdings in the Oslo Stock Exchange, which is reported against shareholders'
equity.
Shareholders' equity was also positively impacted by a Group contribution of SEK
241 m and negatively by a dividend to shareholders of SEK 781 m in April 2007.
Cash and cash equivalents totaled SEK 2 m (1). Investments amounted to SEK 14 m
(17). Findata AB was acquired in March 2007. The carrying amount totals SEK 74
m.
REVENUES, EXPENSES AND OPERATING INCOME BY BUSINESS AREA
Oct-Dec Jan-Dec
--------------------------------------------------------------------------------
| SEK m | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| Nordic Marketplaces | | | | |
--------------------------------------------------------------------------------
| Trading revenue | 383 | 328 | 1,574 | 1,286 |
--------------------------------------------------------------------------------
| Issuers' revenue | 107 | 89 | 393 | 344 |
--------------------------------------------------------------------------------
| Other revenue 1) | 37 | 57 | 144 | 148 |
--------------------------------------------------------------------------------
| Total revenues | 527 | 474 | 2,111 | 1,778 |
--------------------------------------------------------------------------------
| Total expenses 2) | -368 | -232 | -1,146 | -851 |
--------------------------------------------------------------------------------
| Participation in earnings of | 2 | 0 | 16 | 13 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating income | 161 | 242 | 981 | 940 |
--------------------------------------------------------------------------------
| Operating margin, % | 31 | 51 | 46 | 53 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Information Services & New Markets | | | | |
--------------------------------------------------------------------------------
| Information sales | 155 | 121 | 563 | 441 |
--------------------------------------------------------------------------------
| Revenues from Baltic Markets 3) | 18 | 23 | 77 | 68 |
--------------------------------------------------------------------------------
| Revenue from Broker Services | 55 | 58 | 193 | 205 |
--------------------------------------------------------------------------------
| Other revenue 1) | 6 | 23 | 21 | 38 |
--------------------------------------------------------------------------------
| Total revenue | 234 | 225 | 854 | 752 |
--------------------------------------------------------------------------------
| Total expenses | -168 | -149 | -595 | -542 |
--------------------------------------------------------------------------------
| Participation in earnings of | 0 | 0 | 2 | 7 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating income | 66 | 76 | 261 | 217 |
--------------------------------------------------------------------------------
| Operating margin, % | 28 | 34 | 31 | 29 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market Technology | | | | |
--------------------------------------------------------------------------------
| License-, support- and project | 292 | 235 | 1,073 | 785 |
| revenue | | | | |
--------------------------------------------------------------------------------
| Facility Management Services | 153 | 111 | 546 | 432 |
--------------------------------------------------------------------------------
| Other revenue 1) | 34 | 44 | 149 | 83 |
--------------------------------------------------------------------------------
| Total revenue | 479 | 390 | 1,768 | 1,300 |
--------------------------------------------------------------------------------
| Total expenses | -431 | -344 | -1,581 | -1,233 |
--------------------------------------------------------------------------------
| Participation in earnings of | | | | |
| associated | | | | |
--------------------------------------------------------------------------------
| companies | 6 | 4 | 26 | 26 |
--------------------------------------------------------------------------------
| Operating income | 54 | 50 | 213 | 93 |
--------------------------------------------------------------------------------
| Operating margin, % | 11 | 13 | 12 | 7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operations being discontinued 4) | | | | |
--------------------------------------------------------------------------------
| Total revenue | 61 | 36 | 232 | 124 |
--------------------------------------------------------------------------------
| Total expenses | -67 | -49 | -285 | -163 |
--------------------------------------------------------------------------------
| Operating income | -6 | -13 | -53 | -39 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Group eliminations - revenues 5) | 188 | 100 | 660 | 344 |
--------------------------------------------------------------------------------
| Group eliminations - costs 5) | 168 | 100 | 565 | 344 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total Group | | | | |
--------------------------------------------------------------------------------
| Revenue | 1,113 | 1,025 | 4,305 | 3,610 |
--------------------------------------------------------------------------------
| Expenses | -866 | -674 | -3,042 | -2,445 |
--------------------------------------------------------------------------------
| Participation in earnings of | 8 | -4 | 44 | 46 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating income | 255 | 355 | 1,307 | 1,211 |
--------------------------------------------------------------------------------
1) The period October-December 2006 includes SEK 33 m for Nordic Marketplaces,
SEK 17 M for Information Services & New Markets and SEK 33 M for Market
Technology from the sale of shares in VPC AB. The period January-December 2007
includes SEK 101 m for Market Technology from the sale of shares in Orc
Software. The period January-December 2006 includes SEK 42 m for Nordic
Marketplaces, SEK 21 m for Information Services & New Markets and SEK 42 m for
Market Technology from the sale of shares in VPC AB and NOS ASA.
2) The period October-December 2007 includes SEK 83 m for Nordic Marketplaces
pertaining to a nonrecurring payment of value-added tax (refer to page 5).
3) Comprises trading revenues, issuers' revenue and revenues from the central
securities depositories in Tallinn and Riga.
4) The income statement for discontinuing operations has been adjusted for
periods in 2006 compared with interim reports in 2006 as a result of
organizational changes where certain parts of the business area have been
retained.
5) Development activities at OMX intensified in conjunction with the
introduction of Genium. The development of Genium takes place within the Market
Technology business area. Genium is initially being developed for OMX's Nordic
Exchange, which is the reason that the asset generated by OMX was transferred to
the Nordic Marketplaces business area on March 31, 2007. A difference in the
eliminations of expenses and revenues in the Group has arisen as there is a
difference between costs in Market technology and the amount that OMX is able to
capitalize. This accounting effect will remain for the entire duration of the
development project.
SOURCES OF REVENUE IN OMX'S BUSINESS AREAS
NORDIC MARKETPLACES
TRADING REVENUE
Trading revenues comprise trading and clearing revenues from the spot and
derivatives products traded on the exchanges included in Nordic Marketplaces. Of
the trading revenues during the fourth quarter, 71 percent was from spot trading
(mainly equities) and 29 percent was from trading and clearing related to
derivatives products.
With respect to trading revenues from share trading, the two most important
parameters are the value of the share turnover and the number of share
transactions. A change in value of the average trading volume of 1 percent on an
annual basis (assuming an unchanged number of transactions) will affect trading
revenues by +/- SEK 8.7 m, calculated on the basis of trading during the fourth
quarter of 2007 and the reduction in fees for share trading that was implemented
from January 1, 2008.
With respect to revenue from trading and clearing related to derivatives
products, the two most important parameters are the number of derivatives
contracts and the size of the options premiums. A change of the average daily
derivatives turnover of 1,000 contracts on an annual basis (assuming unchanged
options premiums and product mix) will affect trading revenue by +/- SEK 0.9 m,
calculated on the basis of trading during the fourth quarter of 2007.
ISSUERS' REVENUE
Issuers' revenues derive from the fees that listed companies pay and are
directly related to the listed companies' market capitalization. A 10 percent
change in the total market capitalization of Nordic Marketplaces will affect
issuers' revenue by +/- SEK 7.6 m, calculated on an annual basis from 2007
levels and based on the business conducted during the year.
OTHER REVENUE
Other revenues consist primarily of line connection fees for members, revenues
from the CSD on Iceland and web related revenues from Company Services. Other
revenues can also include capital gains from the sale of operations.
INFORMATION SERVICES & NEW MARKETS
INFORMATION REVENUE
Information revenues are generated through the sale and distribution of trading
information based on the data generated through trading on OMX's exchanges.
Customers comprise information vendors, exchange members and private
individuals.
Trading information, which is the largest source of revenue, is sold to nearly
one hundred companies that distribute the information to a large number of end
users. These information vendors are invoiced in arrears. The size of the fee
depends on the number of end users.
REVENUE FROM BALTIC MARKETS
Revenues from the Baltic Markets comprise trading revenues and issuers' revenue
from the exchanges owned by OMX in Tallinn, Riga and Vilnius. The revenue model
is similar to that within Nordic Marketplaces. Also included are revenues from
the central securities depositories in Tallinn and Riga - the number of register
accounts as well as cleared and settled accounts are the most important
parameters.
REVENUE FROM BROKER SERVICES
Revenues from Broker Services derive from securities administration, mainly
back-office services related to share trading in the Nordic region, and the
licensing and operation of back-office systems also in the Nordic region.
Revenue from securities administration is based on fixed revenue per customer
and variable revenue governed by the number of transactions carried out. Systems
revenue comprises license, operation and consulting revenue.
OTHER REVENUE
Other revenues consist primarily of training revenues, sales of information
materials and line connection fees for members. Other revenues could also
include capital gains from the sale of operations.
MARKET TECHNOLOGY
LICENSE, SUPPORT AND PROJECT REVENUE
License, support and project revenue derive from the system solutions developed
and sold by OMX. After Market Technology has developed and delivered a system
solution, the customer licenses the right to use the software. Each project
involves individual adaptations to the specific requirements of the customer,
for instance, relating to functionality and capacity. This development, testing
and installation work generates project revenue that is invoiced continually
according to degree of completion. When Market Technology provides a system
solution, it undertakes to continually upgrade, develop and maintain the system
and receives regular support revenues for this work.
With regard to major system solutions for customers such as exchanges and
clearing organizations, license and project revenue is mostly fixed and
recognized in relation to the degree of completion. Support revenue is mainly
fixed and contracts usually extend for five years. A certain portion of license
revenue can also be recurring, and contracts can extend for a longer period.
FACILITY MANAGEMENT SERVICES REVENUE
Facility Management Services involve OMX assuming responsibility for the
continuous operation of a system platform for a customer, for which OMX receives
recurring facility management revenue. Revenue from Facility Management Services
can be both fixed and volume-based. Contract periods vary between one and seven
years.
OTHER REVENUE
Other revenues comprise mainly revenue from consulting services and exchange
rate differences. Other revenues could also include capital gains from the sale
of operations.
DEPRECIATION AND IMPAIRMENT BY BUSINESS AREA Oct-Dec Jan-Dec
--------------------------------------------------------------------------------
| SEK m | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| Nordic Marketplaces | 19 | 17 | 76 | 70 |
--------------------------------------------------------------------------------
| Information Services & New | 13 | 6 | 53 | 22 |
| Markets | | | | |
--------------------------------------------------------------------------------
| Market Technology 1) | 35 | 33 | 140 | 132 |
--------------------------------------------------------------------------------
| Total | 67 | 56 | 269 | 224 |
--------------------------------------------------------------------------------
1) The period October - December 2007 includes writedowns in discontinuing
operations in the amount of SEK 2 m. The period October - December 2006
includes writedowns of discontinuing operations in the amount of SEK 2 m. The
period January - December 2007 includes writedowns in discontinuing
operations in the amount of SEK 7 m. The period January - December 2006
includes writedowns of discontinuing operations in the amount of SEK 8 m.
INVESTMENTS Oct-Dec Jan-Dec
--------------------------------------------------------------------------------
| SEK m | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| Goodwill | - | 136 | 47 | 326 |
--------------------------------------------------------------------------------
| Other intangible assets | 87 | 53 | 447 | 229 |
--------------------------------------------------------------------------------
| Tangible assets | 17 | 43 | 66 | 77 |
--------------------------------------------------------------------------------
| Assets acquired through | - | 135 | 30 | 210 |
| acquisitions1) | | | | |
--------------------------------------------------------------------------------
| Totalt | 104 | 367 | 590 | 842 |
--------------------------------------------------------------------------------
1) Concerns other intangible assets.
INVESTMENTS IN R&D Oct-dec Jan-Dec
--------------------------------------------------------------------------------
| SEK m (of which expensed) | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| Nordic Marketplaces | 42(4) | 6(4) | 199 (6) | 17(8) |
--------------------------------------------------------------------------------
| Information Services & New | 55(1) | 4(1) | 114 (10) | 17(2) |
| Markets | | | | |
--------------------------------------------------------------------------------
| Market Technology1) | 26(2) | 46(2) | 112 (10) | 174(13) |
--------------------------------------------------------------------------------
| Totalt | 123 (7) | 56(7) | 425 (26) | 208(23) |
--------------------------------------------------------------------------------
1) The development of Genium takes place within the Market Technology business
area but it is initially being developed for OMX's Nordic Exchange. Hence,
the asset generated was transferred to the Nordic Marketplaces business area
on March 31, 2007. This has led to investments in R&D increasing in Nordic
Marketplaces and decreasing in Market Technology.
2) For the periods October-December and January-December 2007, investments in
R&D within the Information Services & New Markets business area increased
compared to the same period last year, mainly due to increased development
within the business units Information Services and Broker Services.
ACQUISITION CALCULATION - EV
--------------------------------------------------------------------------------
| SEK m | |
--------------------------------------------------------------------------------
| Cash | 41 |
--------------------------------------------------------------------------------
| Acquisition costs | 17 |
--------------------------------------------------------------------------------
| New share issue | 256 |
--------------------------------------------------------------------------------
| Acquisition price | 314 |
--------------------------------------------------------------------------------
| Fair value of acquired net assets | 179 |
--------------------------------------------------------------------------------
| Goodwill | 135 |
--------------------------------------------------------------------------------
ACQUIRED ASSETS AND LIABILITIES - EV
--------------------------------------------------------------------------------
| | Fair value | Carrying value |
--------------------------------------------------------------------------------
| Fixed assets1) | 149 | 9 |
--------------------------------------------------------------------------------
| Current assets | 19 | 19 |
--------------------------------------------------------------------------------
| Cash and bank balance | 33 | 33 |
--------------------------------------------------------------------------------
| Current liabilities | -22 | -22 |
--------------------------------------------------------------------------------
| Acquired net assets | 179 | 39 |
--------------------------------------------------------------------------------
1) The difference between fair value and carrying value is primarily
attributable to the valuation of acquired contracts.
Eignarhaldsfelagid Verdbrefathing (EV) is included in Nordic Marketplaces. EV
was consolidated in the Group's income statement and balance sheet on December
1, 2006. For the period, EV is included in the Group's revenues in the amount of
SEK 127 m and in net income in the amount of SEK 48 m. Goodwill is attributable
to the company's positive profitability and anticipated revenue synergies in
conjunction with the continued integration of the Nordic Baltic securities
market. The cash-flow effect of the acquisition amounts to SEK 25 m, comprising
a cash payment of SEK 41 m, acquisition costs of SEK 17 m, minus received cash
balances of SEK 33 m. Of the total amount of acquisition costs of SEK 17 m, SEK
11 m had an effect on cash flow in 2006. The remaining SEK 6 m will impact cash
flow in 2007. The new shares issued are valued at market value on the
acquisition date.
PRELIMINARY ACQUISITION CALCULATION - FINDATA
--------------------------------------------------------------------------------
| SEK m | |
--------------------------------------------------------------------------------
| Cash | 71 |
--------------------------------------------------------------------------------
| Acquisition costs | 3 |
--------------------------------------------------------------------------------
| Acquisition price | 74 |
--------------------------------------------------------------------------------
| Fair value of acquired net assets | 31 |
--------------------------------------------------------------------------------
| Goodwill | 43 |
--------------------------------------------------------------------------------
ACQUIRED ASSETS AND LIABILITIES - FINDATA
--------------------------------------------------------------------------------
| | Fair value | Carrying value |
--------------------------------------------------------------------------------
| Fixed assets1) | 30 | 0 |
--------------------------------------------------------------------------------
| Current assets | 3 | 3 |
--------------------------------------------------------------------------------
| Cash and bank balance | 1 | 1 |
--------------------------------------------------------------------------------
| Current liabilities | -3 | -3 |
--------------------------------------------------------------------------------
| Acquired net assets | 31 | 1 |
--------------------------------------------------------------------------------
1) The difference between fair value and carrying value is primarily
attributable to the valuation of acquired contracts.
Findata AB was consolidated in the Group's income statement and balance sheet on
March 1, 2007 and is included in the Information Services & New Markets business
area. Findata is included in the Group's revenues in the amount of SEK 13 m and
in net income in the amount of SEK 4 m. Goodwill is attributable to the
anticipated synergies in conjunction with the further development of OMX's
information services.
The cash flow effect of the acquisition totals a negative amount of SEK 73 m,
comprising a cash payment of SEK 71 m, acquisition costs of SEK 3m, minus
received cash balances of SEK 1 m. A total of SEK 43.5 m of the cash amount was
paid during the first quarter of 2007. An additional cash payment of SEK 5 m
has been paid in the third quarter 2007 and another SEK 5 m will be paid in
2008.
The remaining earn out payment, which is dependent on results, and is expected
to amount to SEK 17.5 m, will be paid in the first quarters of 2008 and 2009. Of
the acquisition costs, SEK 1 m had an effect on cash flow in the first quarter.
The remaining acquisition costs were paid during the second quarter.
OTHER IMPORTANT INFORMATION
Accounting principles
This interim report was prepared in accordance with IAS 34 Interim Financial
Reporting, and recommendation RR 31 Interim Reporting for Groups issued by the
Swedish Financial Accounting Standards Council. The same accounting principles
and methods of calculation were applied as in the 2006 Annual Report , which was
prepared in accordance with IFRS as adopted by the EU, and RR32 for the parent
company.
Since a decision was made in August 2005 to discontinue operations within Banks
& Brokers, these operations are reported as discontinued although the
discontinuation has yet to be implemented. In the balance sheet, assets
attributable to Banks & Brokers are reported separately through December 31,
2005.
In preparing this report in accordance with generally accepted accounting
principles, the Board and senior management make assessments and assumptions
affecting the company's income and position, as well as other information
disclosed. These assessments and assumptions are based on historic experience
and are reviewed at regular intervals.
OMX AB (publ)
Stockholm, January 31, 2008
Board of Directors
Urban Bäckström (Chairman)
Bengt Halse (Board member)
Birgitta Klasén (Board member)
Hans Munk Nielsen (Board member)
Birgitta Kantola (Board member)
Markku Pohjola (Board member)
Lars Wedenborn (Board member)
Magnus Böcker (President and CEO)
This report has not been subject to an auditor's examination.
KEY RATIOS1)
--------------------------------------------------------------------------------
| | Jan-Dec | Jan-Dec |
| | 20 | 2006 |
| | 07 | |
--------------------------------------------------------------------------------
| Earnings per share, SEK 2) | 8.12 | 7.64 |
--------------------------------------------------------------------------------
| Share price at period-end, SEK | 261.5 | 126 |
--------------------------------------------------------------------------------
| Average number of OMX shares traded daily, | 1,498 | 772 |
| thousands | | |
--------------------------------------------------------------------------------
| P/E ratio 3) | 32 | 16 |
--------------------------------------------------------------------------------
| Shareholders' equity per share, SEK | 42 | 38 |
--------------------------------------------------------------------------------
| Share price/Shareholders' equity per share, SEK | 6.2 | 3.3 |
--------------------------------------------------------------------------------
| Return on equity, % 3) | 20 | 20 |
--------------------------------------------------------------------------------
| Return on capital employed, % 4) | 21 | 20 |
--------------------------------------------------------------------------------
| Net debt/equity,% | 17 | 18 |
--------------------------------------------------------------------------------
| Equity/assets ratio, % 5) | 58 | 57 |
--------------------------------------------------------------------------------
| Adjusted equity/assets ratio, % 6) | 62 | 61 |
--------------------------------------------------------------------------------
| Number of employees at period-end | 1,508 | 1,402 |
--------------------------------------------------------------------------------
| Average number of employees during the period | 1,481 | 1,324 |
--------------------------------------------------------------------------------
| Personnel expenses, SEK m | 1,438 | 1,160 |
--------------------------------------------------------------------------------
1) Definitions of key ratios are given in the OMX Annual Report 2006, page 103.
2) Based on OMX AB shareholders' share of earnings for the period.
3) Based on 12-month rolling income.
4) 12-month rolling income before interest expenses and tax as a percentage of
average shareholders' equity plus interest-bearing liabilities.
5) Calculated excluding market value of outstanding derivatives positions (see
OMX Annual Report 2006, page 94).
6) Calculated excluding market value of outstanding derivatives positions (see
OMX Annual Report 2006, page 94) and adjusted for current trading accounts
mainly arising in the UK operations for the sale of securities administration
services, which are reported as discontinuing operations (see page 12).
MAJOR SHAREHOLDERS AS OF DECEMBER 31 2007
--------------------------------------------------------------------------------
| | Number of shares | Share capital and votes, |
| | | % |
--------------------------------------------------------------------------------
| Investor AB | 12,950,507 | 10.7 |
--------------------------------------------------------------------------------
| Qatar Investment Authority | 12,043,406 | 10.0 |
--------------------------------------------------------------------------------
| Swedish Government | 7,993,466 | 6.6 |
--------------------------------------------------------------------------------
| Nordea Bank | 6,311,858 | 5.2 |
--------------------------------------------------------------------------------
| Borse Dubai Ltd | 5,911,382 | 4.9 |
--------------------------------------------------------------------------------
| SEB | 2,975,738 | 2.5 |
--------------------------------------------------------------------------------
| Second AP-fund | 1,706,272 | 1.4 |
--------------------------------------------------------------------------------
| SEB funds | 1,534,119 | 1.3 |
--------------------------------------------------------------------------------
| Finnish Government | 1,508,500 | 1.3 |
--------------------------------------------------------------------------------
| Swedbank Robur funds | 1,370,099 | 1.1 |
--------------------------------------------------------------------------------
| Other Swedish owners | 11,651,028 | 9.7 |
--------------------------------------------------------------------------------
| Other foreign owners | 54,684,092 | 45.3 |
--------------------------------------------------------------------------------
| Total number of shares | 120,640,467 | 100 |
--------------------------------------------------------------------------------
Source: SIS Ägarservice
OMX - Financial reports during 2008
April 21 - Annual General Meeting
April 17 - Interim report for January-March 2008
July 17 - Interim report for January-June 2008
October 16 - Interim report for January-September 2008
OMX is a leading expert in the exchange industry. The OMX Nordic Exchange
comprises over 800 companies including its alternative market First North. OMX
provides technology to over 60 exchanges, clearing organizations and central
securities depositories in over 50 countries. The Nordic Exchange is not a legal
entity but describes the common offering from OMX exchanges in Helsinki,
Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. OMX is a Nordic
Large Cap company in the Financials sector on the OMX Nordic Exchange. For more
information, please visit www.omxgroup.com.
OMX AB (publ) SE-105 78 Stockholm. Tel. +46 8 405 60 00. Fax +46 8 405 60 01.
Corp. Reg. No. 556243-8001. Street address: Tullvaktsvägen 15
