Tekla Corporation Stock Exchange Release 24.4.2008 at
9:00 a.m.
Tekla Corporation's Interim Report January 1 - March 31, 2008:
Tekla's first quarter as expected
Net sales of Tekla Group for January-March 2008 totaled 14.86
(comparable net sales for the same period in 2007: 13.11) million
euros. Growth in net sales was approximately 13%. The operating
result was 3.93 (3.76) million euros, 26.5% (28.7%) of net sales. The
Defence business, which was divested in April 2007, has been excluded
from the 2007 figures, making them comparable.
Ari Kohonen, President and CEO, comments on the first quarter of
2008:
- Sales figures for the first quarter of the year were at least
satisfactory. Operating result was slightly better than during the
corresponding period the previous year. Despite the weakening of the
US dollar, growth in net sales and profitability remained at a good
level.
- The results of our key business area, Building & Construction, were
good. The geographical diversification of sales and expansion of the
sales network seem to have been successful. Sales boomed in
developing markets. Among these, India must be mentioned first and
foremost; similarly, good results were achieved in the Middle East
and the Far East. Sales increased in the United States as well.
- There are signs of weakening trends in the construction industry in
Western Europe and North America, although mainly in residential
construction. Negative news from the financial sector also
contributes to customers' cautiousness in making investment
decisions. Tekla's market position remained strong. We consider our
long-term outlook to be bright because Tekla has been expanding its
product offering. In the future, the construction industry will be
seeking ways of working that increase productivity. We believe this
will add demand for Tekla's 3D products.
- We proceeded according to plans in the Infra & Energy business
area, experiencing stable development. The first quarter is typically
slower than the other quarters, and sales mainly take place towards
the end of the year.
- The number of Tekla employees has increased by 22 during the first
quarter. We have strengthened our product development team, and
future increases will mainly be allocated to the personnel working in
the sales and customer interface. The increase in the number of
personnel corresponded to an annual increase of 50 employees.
The Board is not changing its outlook for 2008. Growth in net sales
is expected to be approximately 15% on the previous year and the
operating result to exceed that of the previous year. Growth in the
Building & Construction business area is expected to outpace Infra &
Energy, while both business areas are expected to improve their
results on the previous year.
- - -
Tekla will organize an information conference for analysts and media
at Scandic Hotel Simonkenttä, Helsinki (Mansku cabinet) on April 24,
2008 1:00 p.m.
- - -
Tekla is an international software product company whose model-based
software solutions make customers' core processes more effective in
building and construction, energy distribution, infrastructure
management and water supply. Tekla has customers in more than 80
countries. Tekla Group's net sales for 2007 were nearly 60 million
euros and operating result approximately 20 million euros.
International operations account for more than 80% of net sales.
Tekla Group currently employs more than 400 people, of whom
approximately 170 work outside Finland. Tekla was established in
1966, making it one of the oldest software companies in Finland.
www.tekla.com
TEKLA CORPORATION'S INTERIM REPORT JANUARY 1 - MARCH 31, 2008
The figures below are presented in a comparable manner. The Defence
business, which was divested in April 2007, has been excluded from
the 2007 figures, making them comparable. Defence's net sales for
January-March 2007 were 0.49 million euros, operating result 0.02
million euros. Defence's figures are presented in more detail in the
tables of this Interim Report.
NET SALES AND PROFITABILITY
* Net sales of Tekla Group for January-March 2008 were 14.86 million
euros (13.11 million euros in January-March 2007)
* Growth in net sales was 13.3%.
* Operating result was 3.93 (3.76) million euros.
* Operating profit percentage was 26.5 (28.7).
* Earnings per share were 0.13 (0.13) euros.
* Return on investment was 58.6 (73.1) percent.
* Return on equity was 42.5 (54.2) percent.
FINANCIAL POSITION
* Cash flow from operating activities totaled 5.79 (8.50) million
euros.
* Liquid assets amounted to 35.60 (23.10) million euros on March 31,
2008 and 30.15 million euros on December 31, 2007. The dividend for
2007, 11.26 million euros, was paid out on April, 3 2008.
* Equity ratio was 42.7 (46.5) percent.
* Interest-bearing debts were 0.12 (0.37) million euros.
OTHER KEY FIGURES
* International operations accounted for 85% (83%) of net sales.
* Personnel averaged 404 (373) for January-March.
* At the end of March, the number of personnel including part-time
staff was 422 (393).
* Gross investments in property, plant and equipment were 0.27 (0.50)
million euros.
* Equity per share was 1.02 (0.83) euros.
* On the last trading day of March, trading closed at 9.71 (8.80)
euros.
NET SALES BY BUSINESS AREA (PRIMARY SEGMENT)
Q1/ Q1/ Change 1-12/
Million euros 2008 2007 2007
Building & Construction 12.19 10.62 1.57 45.48
Infra & Energy 2.67 2.49 0.18 12.76
Defence *) 0.00 0.49 -0.49 1.00
Others 0.00 0.00 0.00 0.01
Total 14.86 13.60 1.26 59.25
OPERATING RESULT BY BUSINESS AREA (PRIMARY SEGMENT)
Q1/ Q1/ Change 1-12/
Million euros 2008 2007 2007
Building & Construction 4.10 3.85 0.25 15.96
Infra & Energy -0.05 -0.17 0.12 1.96
Defence *) 0.00 0.02 -0.02 2.78
Others -0.12 0.08 -0.20 -0.02
Total 3.93 3.78 0.15 20.68
*) The Defence business was divested in April 2007. A more detailed
account of Defence's impact on the comparison figures for the review
period can be found in the tables of this Interim Report.
BUSINESS AREAS
Building & Construction
Tekla's Building & Construction business area (B&C) develops and
markets the Tekla Structures software product for model-based design
of steel and concrete structures as well as the management of
fabrication and construction.
The trends in the building industry have remained favorable in all
key market areas, even though there are signs of weakening trends in
the construction industry in Western Europe and North America,
although mainly in residential construction. Negative news from the
financial sector also contributes to customers' cautiousness in
making investment decisions.
Sales boomed in developing markets. Among these, India must be
mentioned first and foremost; similarly, good results were achieved
in the Middle East and the Far East. Sales increased in the United
States as well.
Demand for modeling systems continues to increase, and product
modeling is strengthening its foothold in structural design and other
stages of the building process. Tekla's market position as a supplier
of 3D modeling software remained strong in all markets and the
numbers of users were on the increase.
It is very favorable for Tekla that the building industry's move from
2D ways of working to model-based 3D processes seems to be gaining
momentum. In addition, Building Information Modeling (BIM) is gaining
ground around the world. BIM means that the information of the
product model is transferred and shared between the parties of the
construction process.
The net sales of B&C amounted to 12.19 (10.62) million euros for
January-March 2008. Net sales increased by approximately 15% compared
to the previous year. Its operating result was 4.10 (3.85) million
euros. B&C's operating profit percentage for the reporting period was
33.6% (36.3%). Despite the weakening of the US dollar, growth in net
sales and profitability remained at a good level.
International operations accounted for 96% (95%) of B&C's net sales
in January-March 2008. With regard to the key market areas, the
highest proportional growth in Q1 net sales was seen in India, the
Middle East and the Far East. Sales in Japan have developed
particularly favorably. Tekla has prospered in several developing
markets. Operations will be expanded further in these markets, such
as Russia.
By far the most of B&C's net sales were due to the product offering
for structural steel engineering. Sales of B&C's other products also
developed according to plans during the first quarter. The product
development team has been strengthened, and future increases will
mainly be allocated to the personnel working in the sales and
customer interface.
In March, Tekla announced closing a considerable license deal in
India. Prothius Engineering Services, one of the world's largest
engineering offices, acquired more than one hundred new Tekla
Structures licenses.
Tekla joined the Business Software Alliance in spring 2007. The BSA
is a global association that aims to, e.g., reduce software piracy.
First raids, in which several illegal Tekla Structures licenses were
found, took place in the Philippines, Indonesia and China during the
review period. Actions will be proceeded in co-operation with the
BSA.
B&C's product development focused on the upcoming main version of
Tekla Structures, in which increasing openness has been a central
target of development. Customers can customize the software
themselves or with their own partners for their own use.
Infra & Energy
The Infra & Energy business area focuses on the development and sales
of model-based software solutions that support customers' core
processes. Its key customer industries (products in parentheses) are
energy distribution (Tekla Xpower), infrastructure management (Tekla
Xcity, Tekla Xstreet), as well as water and sewage (Tekla Xpipe).
Structural changes in the energy industry and end users' increasing
expectations of the reliability of energy distribution and customer
service increase the need for developing and renewing network
information systems. Tekla has a solid market position in the
industry in the Nordic countries and the Baltic states. In Finland,
increasing regional collaboration will increase the public sector's
GIS development needs. Tekla's market position is strong in large and
medium-sized Finnish municipalities.
The net sales of I&E amounted to 2.67 (2.49) million euros for
January-March 2008. Net sales increased by 7.2%. I&E's operating
result was -0.05 (-0.17) million euros. International operations
accounted for 33% (31%) of net sales. I&E's operating result
percentage was -1.9% (-6.8%).
I&E's operations proceeded according to plans during the review
period. Sales of all products developed steadily. The first quarter
is typically slower than the other quarters, and sales mainly take
place towards the end of the year.
The majority of net sales consists or additional and service sales to
existing customers. New customers are expected from the company's
strong markets in the Nordic Countries. Efforts for business growth
are underway in Germany and in the new EU countries. The customer
base in the infrastructure management sector is expected to broaden
with the adoption of regional services in Finland.
Product development focused on main versions to be completed in June
in all products. Integration of operational support with automatic
mater reading is being developed for the Tekla Xpower software. In
addition, Tekla Xpower is being developed to support the modeling of
gas networks more comprehensively. Productization of Tekla Xpipe for
the Swedish market continued. E-service is the primary target of
development in Tekla Xcity. In addition to this, street and park
management applications are under development.
PERSONNEL AND ORGANIZATION
Personnel
The Group personnel averaged 404 (373) for January-March 2008; on
average 162 (132) worked outside Finland. In these figures, the
number of part-time staff has been converted to correspond to
full-time work contribution. At the beginning of the year, Tekla
personnel totaled 400 (365) including part-time staff, and at the end
of March 422 (393), of whom 166 (137) worked outside Finland.
Product development was reorganized as of the beginning of 2008, and
software product development was transferred to the corresponding
business areas. This was made to ensure that product development will
take place even closer to the customers. The Technology &
Architecture unit is responsible for technology and architecture
shared by all of the products.
SHARE AND OWNERSHIP STRUCTURE
Shares and Share Capital
The total number of Tekla Corporation shares at the end of March 2008
was 22,586,200, of which the company owned 69,600. The total nominal
value of those was 2,088 euros, representing 0.3% of the total share
capital and the total number of votes. A total of 220,702.46 euros
had been used for acquiring the company's own shares, and their
market value was 675,816 euros on 31.03.2008. The nominal value of
the share is 0.03 euros. At the end of the period, share capital
stood at 677,586 euros.
Share Price Trends and Trading
The highest quotation of the share in January-March 2008 was 13.00
(9.20) euros, the lowest 9.30 (7.60) euros. The average quotation was
10.79 (8.43) euros. On the last trading day of March, trading closed
at 9.71 (8.80) euros.
A total of 3,033,293 (3,494,944) Tekla shares changed hands in
January-March 2008 at OMX Nordic Exchange Helsinki, amounting to
13.4% (15.5%) of the entire share capital.
Changes in ownership structure (flagging notifications)
Threadneedle Asset Management Holdings Limited announced that their
holdings in Tekla Corporation crossed above the 5% threshold on
January 14, 2008. According to the notification, Threadneedle's
holdings stood at 5.098%.
ANNUAL GENERAL MEETING
Tekla Corporation's Annual General Meeting on March 19, 2008 adopted
the financial statements, consolidated income statement and balance
sheet for 2007. The Annual General Meeting also discharged the CEO
and the Board members from liability. The AGM accepted the Board's
proposal whereby a dividend of 0.50 euros per share be distributed
for 2007. The dividend payment date was April 3, 2008.
Ari Kohonen, Olli-Pekka Laine (Vice Chair), Heikki Marttinen (Chair)
and Erkki Pehu-Lehtonen were re-elected Board members until the
conclusion of the Annual General Meeting in 2009. Reijo Sulonen was
elected as a new Board member. Timo Keinänen was re-elected deputy
member of the Board. Juha Kajanen is the Tekla personnel
representative on the Board and Pirjo Lundén his personal deputy.
PricewaterhouseCoopers were re-elected as auditors, with Markku
Marjomaa, Authorized Public Accountant, as the auditor in charge.
The AGM renewed the Board's authorizations regarding the increase of
the company's share capital and acquiring or transferring the
company's treasury shares.
In addition, the AGM decided to make amendments to the Articles of
Association due to the amended Finnish Companies Act, and other
mainly technical changes in order to make the Articles of Association
clearer and compliant with the terms and provisions of the current
Companies Act.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
Possible risks and uncertainty factors associated with Tekla's
business are mainly related to the market and competition situation
and the general economic situation. Trends in the building industry
may weaken, at least in certain markets, which might have a negative
impact on the demand for Tekla products.
In the software product business, it is possible to react swiftly to
growing demand, and profits from additional sales are good. The
majority of net sales comprises of sales of licenses entitling to use
software products. Fluctuation in their demand can be rapid and
significant. In the short term and in case of quick changes, it would
be challenging to proportion fixed personnel expenses, which account
for the majority of Tekla's costs.
The sales of Tekla software are geographically distributed. Also
individual customers do not account for a significant share of net
sales, and therefore risks such as those described above are not
significant.
OUTLOOK FOR 2008 UNCHANGED
The Board of Directors estimates that growth in net sales for 2008
will be approximately 15% on the previous year and that the operating
profit will exceed that of the previous year. Growth in the Building& Construction business area is expected to outpace Infra & Energy,
while both business areas are expected to improve their results on
the previous year.
NEXT FINANCIAL REPORT
Tekla Corporation's Interim Report for January-June 2008 will be
published on August 8, 2008.
Espoo, April 23, 2008
TEKLA CORPORATION
Board of Directors
For additional information, please contact:
Ari Kohonen, President and CEO, Tel. +358 30 661 1468,
+358 50 641 24, ari.kohonen (at) tekla.com
Timo Keinänen, CFO, Tel. +358 30 661 1773,
+358 400 813 027, timo.keinanen (at) tekla.com
Distribution: OMX Nordic Exchange Helsinki, main media
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
CONSOLIDATED INCOME STATEMENT
Q1/ Q1/ 1-12/
Million euros 2008 2007 2007
Continuing businesses:
Net sales 14.86 13.11 58.24
Other operating income 0.12 0.24 1.02
Change in inventories of finished
goods and in work in progress 0.00 0.05 0.03
Raw materials and
consumables used -0.61 -0.58 -2.04
Employee compensation and
benefit expense -6.64 -6.10 -25.49
Depreciation -0.27 -0.30 -1.14
Other operating expenses -3.53 -2.66 -12.72
Operating result 3.93 3.76 17.90
% of net sales 26.45 28.68 30.73
Financial income 0.80 0.50 1.86
Financial expenses -0.74 -0.26 -1.33
Profit (loss) before taxes 3.99 4.00 18.43
% of net sales 26.85 30.51 31.64
Income taxes -1.10 -1.08 -4.92
Result for the period from
continuing businesses 2.89 2.92 13.51
Discontinued operations:
Result for the period from
discontinued operations 0.00 0.01 2.06
Result for the period 2.89 2.93 15.57
Attributable to the equity holders of the Company
Earnings per share for profit
attributable to the equity
holders of the Company:
Earning per share (EUR) 0.13 0.13 0.69
Earnings are not diluted.
Earnings per share from continuing
businesses attributable to the
equity holders of the Company:
Earning per share (EUR) 0.13 0.13 0.60
Earnings are not diluted.
Earnings per share from discontinued
operations attributable to the
equity holders of the Company:
Earning per share (EUR) 0.00 0.00 0.09
Earnings are not diluted.
CONDENSED BALANCE SHEET
Million euros 3/2008 3/2007 12/2007
Assets
Non-current assets
Property, plant and
equipment 1.77 1.64 1.79
Goodwill 0.10 0.10 0.10
Intangible assets 0.76 0.75 0.74
Other financial assets 0.30 0.30 0.30
Receivables 0.34 0.53 0.49
Deferred
tax assets 0.14 0.24 0.11
Non-current assets, total 3.41 3.56 3.53
Current assets
Inventories 0.07 0.08 0.07
Trade and other
receivables 14.59 12.89 12.96
Other financial assets 26.18 14.08 25.22
Cash and cash equivalents 9.46 9.07 4.97
Current assets, total 50.30 36.12 43.22
Assets related to
discontinued operations 0.25 0.76 0.25
Assets total 53.96 40.44 47.00
Equity and liabilities
Equity
Share capital 0.68 0.68 0.68
Share premium account 8.89 8.89 8.89
Other own capital 1.19 1.13 1.17
Retained earnings 12.11 7.89 20.71
Equity total 22.87 18.59 31.45
Non-current liabilities
Deferred tax liabilities 0.10 0.13
Provisions 0.00 0.68
Interest-bearing liabilities 0.07 0.11 0.07
Non-current liabilities total 0.17 0.79 0.20
Current liabilities
Trade and other payables 28.96 19.35 13.35
Tax liabilities 1.19 1.07 1.01
Current interest-bearing
liabilities 0.05 0.27 0.27
Current liabilities total 30.20 20.69 14.63
Liabilities total 30.37 21.48 14.83
Liabilities related to
discontinued operations 0.72 0.37 0.72
Equity and liabilities total 53.96 40.44 47.00
CALCULATION OF RECONCILIATION OF EQUITY
Equity attributable to the holders of the Company
Share Share Fair Acc. Ret.
Cap. prem. Res. value Transl. earn.
acct. fund res. diff. Total
Equity January 1,
2007 0.68 8.89 1.33 0.10 -0.21 13.93 24.72
Transl. differences -0.05 0.04 -0.01
Changes in
available-for-sale
investments -0.04 -0.04
Items recognized
directly in equity 0.00 0.00 0.00 -0.04 -0.05 0.04 -0.05
Net profit for the
period 2.93 2.93
Total income and
expenses recognized
in
the period 0.00 0.00 0.00 -0.04 -0.05 2.97 2.88
Payment of dividend -9.01 -9.01
Equity March 31,
2007 0.68 8.89 1.33 0.06 -0.26 7.89 18.59
Equity attributable to the holders of the Company
Share Share Fair Acc. Ret.
Cap. prem. Res. value transl. earn.
acct. fund res. diff. Total
Equity January 1,
2008 0.68 8.89 1.33 0.30 -0.46 20.71 31.45
Transl. differences 0.14 -0.23 -0.09
Changes in
available-for-sale
investments -0.12 -0.12
Items recognized
directly in equity 0.00 0.00 0.00 -0.12 0.14 -0.23 -0.21
Net profit for the
period 2.89 2.89
Total income and
expenses recognized
in
the period 0.00 0.00 0.00 -0.12 0.14 2.66 2.68
Payment of dividend -11.26 -11.26
Equity March 31,
2008 0.68 8.89 1.33 0.18 -0.32 12.11 22.87
CONDENSED CASH FLOW STATEMENT
Q1/ Q1/ 1-12/
Million euros 2008 2007 2007
Cash flows from operating
activities:
Continuing businesses 5.79 8.35 12.31
Discontinued operations 0.00 0.15 1.24
Net cash flows from operating
Activities 5.79 8.50 13.55
Cash flows from investing
activities:
Investments -0.27 -0.50 -1.66
Sale of intangible assets and
property, plant and equipment 0.01 0.00 0.25
Cash flow from sale
of discontinued operations 0.00 2.35
Purchases of available-for-
sale financial assets -18.65 -15.35 -55.16
Proceeds from sale of
available-for-sale
financial assets 14.11 17.74 50.11
Interests received from
available-for-sale
financial assets 0.26 0.22 0.65
Net cash used in/from investing
activities -4.54 2.11 -3.46
Cash flows from financing
activities:
Payment of dividend 0.00 -9.01 -9.01
Repayments of long-term debt -0.22 -0.31 -0.39
Payments of finance lease
liabilities 0.00 0.00 -0.04
Net cash used in financing
activities -0.22 -9.32 -9.44
Net decrease/increase in cash
and cash equivalents 1.03 1.29 0.65
Cash and cash equivalents at
beginning of the period 8.43 7.78 7.78
Cash and cash equivalents at
end of the period 9.46 9.07 8.43
The cash and cash equivalents in
the cash flow statement include:
Cash and cash equivalents 9.46 9.07 4.97
Available-for-sale financial
assets, cash equivalents 0.00 0.00 3.46
NOTES TO THE INTERIM REPORT
The notes are presented in millions of euros, unless otherwise
stated.
This interim report has been prepared in accordance with the IAS 34
(Interim Financial Reporting) standard. The same accounting and
valuation
policies and methods of computation have been followed in the interim
financial reports as in the annual financial statements for 2007.
The amendments and interpretations to published standards as well as
new
standards, effective January 1, 2008,are presented in detail in the
financial
statements for 2007. The adopted standards have not had a significant
effect on the result or the data presented in the interim report.
The figures presented in the Interim Report are unaudited.
Use of estimates
When preparing the financial statements, the Group's management is
required to
make estimates and assumptions influencing the content of the Interim
Report,
and it must exercise its judgment regarding the application of
accounting
policies. Although these estimates are based on the management's best
knowledge, actual results may ultimately differ from the estimates
used in
the interim report. Tax losses carried forward are recognized as
deferred
recognized as deferred tax assets only to the extent that it is
probable that
future taxable profits will be available against which unused tax
losses
can be utilized. Actual results could differ from those estimates.
Segment information
Net sales by business area (primary segment)
Q1/ Q1/ 1-12/
Million euros 2008 2007 2007
Building & Construction 12.19 10.62 45.48
Infra & Energy 2.67 2.49 12.76
Defence *) 0.00 0.49 1.00
Others 0.00 0.00 0.01
Total 14.86 13.60 59.25
Operating result by business area (primary segment)
Q1/ Q1/ 1-12/
Million euros 2008 2007 2007
Building & Construction 4.10 3.85 15.96
Infra & Energy -0.05 -0.17 1.96
Defence *) 0.00 0.02 2.78
Others -0.12 0.08 -0.02
Total 3.93 3.78 20.68
*) Defence has been processed as discontinued business for the
comparison period.
Financial indicators 3/2008 3/2007 12/2007
Earnings per share (EPS), EUR 0.13 0.13 0.69
Earnings per share (EPS) from
continuing businesses, EUR 0.13 0.13 0.60
Earning per share (EPS) from
discontinued operations, EUR 0.00 0.00 0.09
Equity/share, EUR 1.02 0.83 1.40
Interest-bearing liabilities 0.12 0.37 0.34
Equity ratio, % 42.7 46.5 67.5
Net gearing, % -155.1 -122.2 -94.8
Return on investment, % 58.6 73.1 74.5
Return on equity, % 42.5 54.2 55.4
Number of shares
at end of period 22,516,600 22,516,600 22,516,600
Number of shares,
on average 22,516,600 22,516,600 22,516,600
Gross investments, MEUR 0.27 0.50 1.66
% of net sales 1.82 3.81 2.80
Personnel, on average 404 373 374
Discontinued operations
Defence business
Tekla's Defence business was transferred to Patria on May 1, 2007.
The calculations below show the effect of the business sale on the
result and the cash flow during the reporting period.
Result for the Defence business
Q1/ Q1/ 1-12/
2008 2007 2007
Net sales 0.49 1.00
Expenses -0.47 -0.81
Profit (loss) before income taxes 0.00 0.02 0.19
Taxes -0.01 -0.05
Profit (loss) after taxes 0.00 0.01 0.14
Sales profit from
the Defence business sale 2.59
Taxes -0.67
Sales profit after
taxes 0.00 0.00 1.92
Profit/loss for the period
from discontinued operations 0.00 0.01 2.06
Cash flow statement, Defence
Cash flows from operating activities 0.15 1.24
Cash flow from investing activities 2.35
Total cash flow 0.00 0.15 3.59
The effect of the sale of the Defence business on
the financial position of the Group
Assets 0.25 0.76 0.25
Liabilities 0.72 0.37 0.72
Consolidated income statement by quarter
Q1/ Q4/ Q3/ Q2/ Q1/
Million euros 2008 2007 2007 2007 2007
Continuing businesses:
Net sales 14.86 16.44 14.78 13.92 13.11
Other operating income 0.12 0.39 0.17 0.22 0.24
Change in inventories of
finished goods and in
work in progress 0.00 -0.05 -0.02 0.05 0.05
Raw materials and
consumables used -0.61 -0.67 -0.28 -0.52 -0.58
Employee compensation and
benefit expense -6.64 -6.90 -5.72 -6.77 -6.10
Depreciation -0.27 -0.28 -0.28 -0.28 -0.30
Other operating expenses -3.53 -3.94 -2.83 -3.29 -2.66
Operating result 3.93 4.99 5.82 3.33 3.76
% of net sales 26.45 30.35 39.38 23.92 28.68
Financial income 0.80 0.47 0.62 0.27 0.50
Financial expenses -0.74 -0.42 -0.41 -0.24 -0.26
Profit (loss) before taxes 3.99 5.04 6.03 3.36 4.00
% of net sales 26.85 30.66 40.80 24.14 30.51
Income taxes -1.10 -1.24 -1.57 -1.03 -1.08
Result for the period from
continuing businesses 2.89 3.80 4.46 2.33 2.92
Discontinued operations:
Result for the period from
discontinued operations 0.00 0.19 0.00 1.86 0.01
Result for the period 2.89 3.99 4.46 4.19 2.93
Income taxes Q1-Q3/ Q1-Q3/ 1-12/
2008 2007 2007
Taxes for the financial
period and prior periods -1.15 -0.96 -4.54
Deferred taxes 0.05 -0.12 -0.38
Total -1.10 -1.08 -4.92
Estimated effective tax rate for the financial year has
been applied to the result of the reporting period.
Property,
plant and equipment 3/2008 3/2007 12/2007
Cost at the beginning of 7.20 6.82 6.67
the period
Translation differences -0.04 -0.03 -0.09
Additions 0.17 0.14 1.16
Disposals -0.03 -0.01 -0.54
Cost at the end of the
period 7.30 6.92 7.20
Accumulated depreciation
at the beginning of the
period 5.41 5.08 4.93
Translation differences -0.04 -0.01 -0.05
Accumulated depreciation
on disposals -0.03 -0.01 -0.31
Depreciation for the 0.19 0.22 0.84
financial period
Accumulated depreciation
at the end of the period 5.53 5.28 5.41
Net book amount at the end of the period 1.77 1.64 1.79
The investments consisted of normal acquisitions of hardware,
software and equipment.
Provisions
The Group's provisions, loss-making contracts and provisions for
pension obligations have been eliminated on December 31, 2007.
Collaterals,
contingent liabilities and other commitments
3/2008 3/2007 12/2007
Collaterals for own commitments
Business mortgages
(as collateral for bank
guarantee limit) 0.50 0.50 0.50
Pledged funds 0.05 0.07 0.07
Other contingent liabilities
Guarantees 0.00 0.06
Leasing and rental
agreement commitments
Premises 4.35 3.09 4.75
Others 0.79 0.78 0.81
Total 5.14 3.87 5.56
Derivative contracts
Currency forward contracts:
Fair value 0.23 0.08 0.31
Nominal value of
underlying instruments 2.79 5.70 3.63
The Group makes derivative contracts to hedge against the exchange
rate risks of prospective sales agreements. Forward contracts
and currency options are stated at fair value, and related foreign
exchange gains and losses are recognized in the income statement.
The derivative contracts hedge sales in US dollars.
Related party transactions 3/2008 3/2007 12/2007
Gerako Oy
Purchases of services 0.06 0.01 0.06
Reimbursed expenses 0.00 0.00 0.01
Management remuneration
Salaries and post-employment
benefits 0.67 0.57 1.33
Management herein refers to members of the Tekla Management Team.
Tekla Corporation's Interim Report January 1 - March 31, 2008: Tekla's first quarter as expected
| Source: Tekla
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