DIGIA PLC INTERIM REPORT 29 April 2008 at 9:30 am
DIGIA PLC'S FIRST QUARTER 2008 (IFRS)
Summary
- Consolidated net sales: EUR 31.7 million, up 20.5 per cent year on year
- Organic growth: 14.4 per cent
- Consolidated operating profit: EUR 4.2 million, up 47.0 per cent year on year
- Profitability (EBIT-%): 13.3 per cent (10.9 per cent 1-3/2007)
- Product business accounted for 13.0 per cent of net sales (17.8 per cent
1-3/2007)
- Earnings per share: EUR 0.12, up 71.4 per cent
- For the second quarter of 2008 Digia estimates its organic growth to continue
to outperform the market average and its profitability to continue to stay on a
good level
- Digia continues to focus on organic development of its businesses targeting to
improve profitability and earnings per share
GROUP KEY FIGURES AND RATIOS
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | Change, % | 2007 |
--------------------------------------------------------------------------------
| Net sales | 31,678 | 26,279 | 21 % | 105,839 |
--------------------------------------------------------------------------------
| Operating profit | 4,228 | 2,876 | 47 % | 11,080 |
--------------------------------------------------------------------------------
| - % of net sales | 13 % | 11 % | | 10 % |
--------------------------------------------------------------------------------
| Profit for the period | 2,472 | 1,402 | 76 % | 5,871 |
--------------------------------------------------------------------------------
| - % of net sales | 8 % | 5 % | | 6 % |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Return on equity, % | 14 % | 9 % | | 9 % |
--------------------------------------------------------------------------------
| Return on investment, % | 14 % | 10 % | | 9 % |
--------------------------------------------------------------------------------
| Interest-bearing | 56,543 | 56,317 | 0 % | 56,413 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 11,901 | 15,025 | -21 % | 11,739 |
--------------------------------------------------------------------------------
| Net gearing, % | 66 % | 66 % | | 65 % |
--------------------------------------------------------------------------------
| Equity ratio, % | 45 % | 44 % | | 47 % |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | 0.12 | 0.07 | 71 % | 0.29 |
| undiluted | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | 0.12 | 0.07 | 71 % | 0.29 |
| diluted | | | | |
--------------------------------------------------------------------------------
MARKETS AND DIGIA'S BUSINESS
As a whole, Digia performed in line with plans during the first quarter. The
company succeeded extremely well in achieving its key target of boosting its
organic growth while showing a substantial improvement in its profitability.
While the market situation has been good in Digia's main business fields, the
development of the world economy and its impact on Digia customers' investment
propensity is creating uncertainties. Increased personnel costs are putting a
strain on the company's profitability, due to which company seeks further
operational efficiency. Due to the active labour market, employee turnover has
remained at a high level. At present, the availability of skilled labour is one
of the major risk factors affecting the software sector. However, Digia has
succeeded well in its recruitments, which is the key prerequisite for organic
growth.
Digia has implemented its internationalisation strategy in a controlled yet
determined manner. The new Digia units in Russia and China extend the company's
service range to near-shore and off-shore services and also provide a stable
foothold in these rapidly growing markets.
During the reporting period, Digia initiated a brand renewal project. As part of
this project, the Annual General Meeting changed the company name to Digia Plc.
Costs arising from the brand renewal including corporate image, marketing and
communication activities will be allocated to the first and second quarter.
Telecommunications
Telecommunications sector had a strong quarter as its organic growth level
concluded 29.4 per cent. During the reporting period, the division's customer
relationships developed favourably, and it used its production capacity
efficiently. Furthermore, customer satisfaction was at a high level. The
division has further strengthened its delivery capacity by continuing to pursue
its active recruitment policy initiated in the previous period. Recruitment
measures have also been extended to countries with lower cost levels.
The investment made in the Russian market in January (Sunrise-r) will further
expand the division's service offering, enhance its competitiveness and
facilitate the expansion of its customer base in the contract engineering
market. After the end of the reporting period, in early April, Digia opened a
development unit in Chengdu, China. China offers very favourable and strongly
developing conditions for software development activities, for instance from
educational and infrastructure perspective. Chengdu is especially rapidly
developing area and many of Digia's customers and partners have also placed
their operations in Chengdu area. The launch of the operations in Chengdu will
incur expenses during 2008 which have been taken into account in targets and
estimates for company's financial development.
Demand has remained good, and the order book has remained strong even after
entering the second quarter.
Finance and Services
The organic growth of Finance and Services sector reached 10.6 per cent on
reported period but the utilisation rate fell compared to Q4/2007 due to delays
in the launch of customer projects. If the general uncertainty of the finance
sector continues, it may continue to adversely affect the development of the
project situation.
In the public services sector, Digia supplied the Finnish Tax Administration
with an e-service solution enabling citizens to make adjustments to their
pre-completed tax returns. As of spring 2007, Digia has been participating in
the digitalising of taxation services. The bilateral frame agreement between the
Finnish Tax Administration and Digia relating to IT consultation was signed
during the reporting period and remains valid until 2012. The agreement is based
on Hansel Ltd's frame agreement pertaining to public administration technical IT
consultation.
Industry and Trade
Digia has expanded its supplying of ERP systems to the municipal sector. The
first project was the creation of a Microsoft Dynamics AX -based system for
Oulun Tekninen Liikelaitos (Oulu City Technical Enterprise). The project began
in 2007 and the system was taken into production in the first quarter of 2008.
The growth in net sales generated by ERP systems has outperformed the market
average.
The volumes of the portal and document management business have grown
organically according to plan. With respect to integration solutions, the
increase in net sales and staff numbers during the period was slightly above
plan while profitability was close to the target level. With respect to
consulting services, the division achieved major breakthroughs in both existing
and new key customer relationships. Industry and Trade did not quite reach its
net sales target, and investments in organic growth and the general increase in
costs eroded profitability.
The division has seen signs of lengthening consideration periods among
customers. However, with respect to portal and document management solutions,
the company expects its net sales to continue to develop favourably. In
integration solutions, the division expects to keep up with its growth and
profitability targets.
Competition for skilled resources and the general increase in costs will pose
challenges to the division's profitability, which it is attempting to enhance by
improving its internal efficiency and utilising the resources of lower-cost
countries.
RISKS AND UNCERTAINTIES
Digia's short-term uncertainties are related to the availability and cost of
skilled personnel, employee turnover and the impact of the unpredictable
economic situation to Digia customers' investment decisions. Furthermore, the
growth in customer project size and scope increases risks related to projects
and their profitability. A more detailed description of Digia's risk management
is provided in its annual report and on the company website.
PROSPECTS FOR 2008 AND COMPANY OBJECTIVES
Digia's main targets for 2008 are to continue its organic growth while
maintaining its high profitability. For the second quarter of 2008 Digia
estimates its organic growth to continue to outperform the market average and
its profitability to continue to be strong. The company's management will focus
on customers, personnel and further internalisation of operations. The key
short-term targets include organic growth, expanding the company's service
offerings, deepening customer relationships and enhancing employee satisfaction.
Furthermore, Digia will continue to increase its operational efficiency while
pursuing a strict cost policy.
In the long-term Digia seeks primarily to concentrate on strengthening of
organic growth. At the same time company aims to reduce dept-equity ratio. Digia
will partly renounce its revolving credit facility, announced on November 9,
2006 and which was meant for financing possible acquisitions. By renouncing the
credit facility, company will save over EUR 100,000 annually. Company is still
able to execute strategically important acquisitions but the company focuses now
on organic development of businesses seeking of improvement for profitability
and for earnings per share. Thereby strategic objective is to further develop
current competencies and products over the earlier announced revenue target of
EUR 200 million for 2010.
NET SALES
Digia's consolidated net sales for the period 1-3/2008 were EUR 31.7 million, up
by 20.5 per cent year on year (1-3/2007: EUR 26.3 million). This includes EUR
1.6 million of net sales of Sunrise Resources Ltd., a subsidiary acquired on 14
January 2008 and Capital C AB, a subsidiary acquired on 31 August 2007.
Net sales posted by Telecommunications for the period were EUR 15.9 million, up
by 35.0 per cent (1-3/2007: EUR 11.8 million) , while net sales by Finance and
Services totalled EUR 8.6 million, up by 25.2 per cent (1-3/2007: EUR 6.9
million). Industry and Trade recorded net sales of EUR 7.2 million, down by 6.1
per cent (1-3/2007: EUR 7.6 million).
During the reporting period, the product business accounted for EUR 4.1 million
(1-3/2007: EUR 4.7 million) of consolidated net sales, or 13.0 per cent
(1-3/2007: 17.8 per cent).
International business accounted for 15.5 per cent of consolidated net sales
(1-3/2007: 8.9 per cent).
PROFIT PERFORMANCE AND PROFITABILITY
Digia's consolidated operating profit (EBIT) for the period amounted to EUR 4.2
million, up 47.0 per cent on a year earlier (1-3/2007: EUR 2.9 million). This
includes EUR 0.2 million of operating profit of Sunrise Resources Ltd., a
subsidiary acquired on 14 January 2008 and Capital C AB, a subsidiary acquired
on 31 August 2007. Profitability (EBIT-%) was 13.3 per cent (1-3/2007: 10.9 per
cent).
Telecommunications reported an operating profit of EUR 3.1 million, representing
a year-on-year growth of 115.0 per cent (1-3/2007: EUR 1.4 million), and
profitability (EBIT-%) was 19.4 per cent (1-3/2007: 12.2 per cent). Finance and
Services reported an operating profit of EUR 0.6 million, showing an increase of
289.6 per cent (1-3/2007: EUR 0.1 million) and profitability was 6.5 per cent
(1-3/2007: 2.1 per cent). Industry and Trade posted an operating profit of EUR
0.6 million, representing a year-on-year decrease of 55.7 per cent (1-3/2007:
EUR 1.3 million) and profitability (EBIT-%) was 8.0 per cent (1-3/2007: 17.0 per
cent).
The Group's reported earnings before tax stood at EUR 3.4 million, representing
a year-on-year growth of 64.5 per cent (1-3/2007: EUR 2.1 million), and net
profit totalled EUR 2.5 million, up by 76.4 per cent (1-3/2007: EUR 1.4
million).
Earnings per share for the period were EUR 0.12, representing a year-on-year
increase of 71.4 per cent (1-3/2007: EUR 0.07).
The Group's net financial expenses totalled EUR 0.8 million (1-3/2007: EUR 0.8
million).
FINANCIAL POSITION AND EXPENDITURE
On 31 March 2008, Digia's consolidated balance sheet total stood at EUR 153.0
million (12/2007: EUR 149.6 million) and equity ratio was 45.1 per cent
(12/2007: 46.5 per cent). Net gearing stood at 65.8 per cent (12/2007: 65.1 per
cent). The period-end cash and cash equivalents totalled EUR 11.9 million
(12/2007: EUR 11.7 million), and interest-bearing liabilities amounted to EUR
56.5 million (12/2007: EUR 56.4 million).
The Group carries out annual impairment tests for goodwill and intangible assets
with an indefinite useful life in accordance with the IAS 36 standard.
The table below shows goodwill and values subject to testing by business segment
at the end of the reporting period:
--------------------------------------------------------------------------------
| EUR 1,000 | Specifie | Depreciati | Goodwill | Other | Total value |
| | d | on during | | items | subject to |
| | intangib | the | | | testing |
| | le | reporting | | | |
| | assets | period | | | |
--------------------------------------------------------------------------------
| Telecommunica | 8,487 | 303.5 | 49,546 | 5,577 | 63,610 |
| tions | | | | | |
--------------------------------------------------------------------------------
| Finance and | 2,094 | 75.9 | 13,692 | 2,849 | 18,635 |
| Services | | | | | |
--------------------------------------------------------------------------------
| Industry and | 3,340 | 146.2 | 26,410 | 2,465 | 32,214 |
| Trade | | | | | |
--------------------------------------------------------------------------------
| Group total | 13,920 | 525.5 | 89,648 | 10,891 | 114,459 |
--------------------------------------------------------------------------------
Present values are determined on the basis of actual operating profit and
five-year forecasts by the CGU, with growth varying between three and five per
cent and the operating margin between 10 and 12 per cent.
Cash flows following the forecast period are estimated by extrapolating the cash
flows using a steady net sales growth forecast of three per cent, with operating
profit estimated at 10 per cent of net sales. Discount rates have been
determined in view of the industry's general risk level, corresponding to an
annual interest rate of 11 per cent.
Net sales growth is reckoned to constitute the most critical factor in
calculating the present values of cash flows. The amount of goodwill for
Telecommunications requires average annual long-term growth of around two per
cent in its net sales and an operating margin of 10 per cent before amortisation
of intangible assets. The amount of goodwill for Finance and Services requires
average annual growth of two per cent for the business operations and six per
cent profitability before amortisation of intangible assets. The amount of
goodwill for Industry and Trade requires average annual long-term growth of two
per cent in its net sales and an operating margin of nine per cent before
amortisation of intangible assets.
Based on a reasonable estimate, any change in key variables used in calculations
during the reporting period would not lead to a situation in which the segment's
carrying amount would exceed its recoverable amount. Consequently, in the
management's view, there is no need to recognise impairment losses.
The Group's cash flow from business operations for the period was positive by
EUR 6.1 million (1-3/2007: positive cash flow of EUR 5.8 million), cash flow
from investments was negative by EUR 3.5 million (1-3/2007: negative EUR 0.7
million) and cash flow from finance was negative by EUR 2.5 million (1-3/2007:
negative EUR 1.6 million). Cash flow from investments was influenced by
acquisition of Sunrise Resources Ltd of which amounted negatively EUR 2.8
million. Cash flow from finance was influenced by acquisition of own shares
amounting negatively EUR 0.5 million and payment of dividends amounting to EUR
2.0 million.
Gross capital expenditure during the period totalled EUR 0.6 million (1-3/2007:
EUR 0.5 million). Acquisitions of tangible fixed assets totalled EUR 0.5 million
(1-3/2007: EUR 0.2 million).
Return on investment (ROI) for the period stood at 13.9 per cent (12/2007: 9.4
per cent) and return on equity (ROE) at 14.5 per cent (12/2007: 8.9 per cent).
HUMAN RESOURCES, MANAGEMENT AND ADMINISTRATION
On 31 March 2007, the number of Group employees totalled 1,281, up by 126, or
10.9 per cent, from the staff number on 31 December 2007 (2007: 1,155). During
the reporting period, the number of employees averaged 1,252, showing an
increase of 136, or 12.2 per cent, (2007: 1,116) over the same period a year
earlier.
Employees by function on 31 March 2008:
--------------------------------------------------------------------------------
| Telecommunications | 53 % |
--------------------------------------------------------------------------------
| Finance and Services | 23 % |
--------------------------------------------------------------------------------
| Industry and Trade | 20 % |
--------------------------------------------------------------------------------
| Administration and Management | 4 % |
--------------------------------------------------------------------------------
As of 31 March 2008, altogether 76 Digians were working abroad.
The Annual General Meeting (AGM) of 11 March 2008 elected the following Board
members: Pekka Sivonen (Chairman), Pertti Kyttälä (Vice Chairman), Kari
Karvinen, Harri Koponen and Martti Mehtälä. Pekka Sivonen was elected as a
full-time chairman of the board on board's organising meeting but from the
beginning of April 2008 Sivonen moved to be a part-time chairman of the board
until the end of August.
Harri Koponen refrained from Board work 27 March 2008 for the time being, until
the public tender offer of Cidron Services Oy for all the outstanding shares in
TietoEnator Corporation, following which Koponen would be appointed
TietoEnator's Executive Chairman of the Board, has been resolved. Juha Varelius
has been Digia's President and CEO beginning from 1 January 2008. Juha Sihvonen,
who was the company's acting CEO at the end of 2007 and, as of 1 January 2008,
the company's Deputy CEO, resigned on 13 March 2008.
Ernst & Young Oy, a firm of authorised public accountants, is the Group's
auditor, with Heikki Ilkka, Authorised Public Accountant, as the chief auditor.
Transactions with related parties
Digia Group's related parties include the CEO and the members of the Board of
Directors and the Management Group. The Group had no transactions with related
parties during the reporting period.
GROUP STRUCTURE AND ORGANISATION
On 31 March 2008, Digia Group consisted of Digia Plc, the parent company, and
active subsidiaries Digia Finland Ltd (parent company holding 100 %), Capital C
AB (100 %), which operates in Sweden, and Sunrise Resources Oy, which has an
active subsidiary, OOO Sunrise-r Spb (100 %), in Russia. In addition, Digia
Finland Ltd has the wholly-owned active subsidiaries Digia Service Ltd (100 %)
and Digia Financial Software Ltd (100 %).
SHAREHOLDERS' MEETINGS
Annual General Meeting on 11 March 2008
Convening on 11 March 2008, Digia Plc's Annual General Meeting (AGM) adopted the
financial statement for 2007, discharged Board members and the CEO from
liability and, as proposed by the Board of Directors, approved the profit
distribution for 2007, determined Board emoluments and elected the company's
Board of Directors for a new term. In addition, the AGM decided to change the
company name to Digia Plc and selected a new auditor for the company. The AGM
granted the Board the following authorisations:
Authorising the Board of Directors to decide on a share issue and granting of
special rights
The Annual General Meeting authorised the Board of Directors to decide on a
rights issue or a capitalisation issue and on granting option rights and other
special rights on the following terms:
- The authorisation can be exercised, for instance, for the development of
company's capital structure, for exercising the share based incentive systems or
for enabling and financing company and business acquisitions and other
co-operation, or other such restructuring;
- The Board of Directors is entitled to decide to issue new shares or existing
shares in company's possession in one or more sets provided that the maximum
total number of shares issued is 4,000,000;
- The Board of Directors is also entitled to decide to sell company's own shares
in the public trading on OMX Nordic Exchange Helsinki in order to finance
possible business acquisitions;
- The Board of Directors is otherwise authorised to decide on other terms of
share issue including the right to decide on a private placement or granting
special rights on a private placement basis;
- The authorisation replaces the authorisation granted by the annual general
meeting of shareholders on 28 February 2007, and will be valid for 18 months
from the issue date of the authorisation, or until 11 September 2009.
Authorisation of the Board of Directors to decide on the buyback of own shares
The Annual General Meeting authorised the Board of Directors to decide on the
buyback of own shares with the following terms:
- Own shares can be bought back, for instance, for the purpose of strengthening
the company's capital structure, for exercising the share based incentive
systems or for enabling and financing company and business acquisitions and
other co-operation, or other such restructuring or for the purpose of being
invalidated;
- The shares may be bought back in one or more sets, provided that the maximum
number of shares involved will be 2,000,000;
- Own shares shall not be bought back in proportion to the shareholders'
holdings but in public trading organised by the OMX Nordic Exchange Helsinki;
- The shares shall be bought back for the price determined by the Board of
Directors, based on the fair value quoted in public trading on the buyback date;
- The shares may be acquired with free shareholders' equity and the acquisition
of shares will decrease the free shareholders' equity and distributable assets;
- The Board of Directors is otherwise authorised to decide on other terms of
buyback of own shares; and
- The authorisation replaces the authorisation granted by the annual general
meeting of shareholders on 28 February 2007, and will be valid for 18 months
from the issue date of the authorisation, or until 11 September 2009.
The Board of Directors decided in its meeting after the Annual General Meeting
of 11 March 2008 to continue the buyback of own shares in accordance with the
terms of the General Meeting's authorisation and the terms published on 13
February 2008.
SHARE CAPITAL AND SHARES
On 31 March 2008, the total number of Digia shares was 20,853,645.
According to Finnish Central Securities Depository Ltd, on 31 March 2008 Digia
had 3,174 shareholders. The ten major shareholders were:
--------------------------------------------------------------------------------
| Shareholder | Proportion (%) of shares and |
| | votes |
--------------------------------------------------------------------------------
| Pekka Sivonen | 24.4 % |
--------------------------------------------------------------------------------
| Kari Karvinen | 7.6 % |
--------------------------------------------------------------------------------
| Matti Savolainen | 6.3 % |
--------------------------------------------------------------------------------
| OP-Suomi Pienyhtiöt mutual fund | 3.6 % |
--------------------------------------------------------------------------------
| Varma Mutual Pension Insurance Company | 3.6 % |
--------------------------------------------------------------------------------
| Nordea Bank Finland Plc / Nominee-registered | 3.2 % |
--------------------------------------------------------------------------------
| Skandinaviska Enskilda Banken / | 3.2 % |
| Nominee-registered | |
--------------------------------------------------------------------------------
| Veikko Laine Oy | 2.8 % |
--------------------------------------------------------------------------------
| Nordea Bank Finland Plc | 2.4 % |
--------------------------------------------------------------------------------
| Jorma Kylätie's estate | 2.2 % |
--------------------------------------------------------------------------------
Shareholding by number of shares held on 31 March 2008:
--------------------------------------------------------------------------------
| Number of shares | Proportion (%) of | Proportion (%) of |
| | holdings | shares and votes |
--------------------------------------------------------------------------------
| 1 - 100 | 22.5 % | 0.3 % |
--------------------------------------------------------------------------------
| 101 - 1,000 | 52.4 % | 3.8 % |
--------------------------------------------------------------------------------
| 1,001 - 10,000 | 21.5 % | 9.7 % |
--------------------------------------------------------------------------------
| 10,001 - 100,000 | 2.8 % | 12.0 % |
--------------------------------------------------------------------------------
| 100,001 - 1,000,000 | 0.7 % | 35.9 % |
--------------------------------------------------------------------------------
| 1,000,001 - 3,000,000 | 0.1 % | 38.3 % |
--------------------------------------------------------------------------------
Shareholding by sector on 31 March 2008
--------------------------------------------------------------------------------
| | Proportion (%) of | Proportion (%) of |
| | holdings | shares |
--------------------------------------------------------------------------------
| Companies | 6.2 % | 11.8 % |
--------------------------------------------------------------------------------
| Financial institutions and | 0.5 % | 16.4 % |
| insurance companies | | |
--------------------------------------------------------------------------------
| Non-corporate public sector | 0.1 % | 3.8 % |
--------------------------------------------------------------------------------
| Non-profit organisations | 0.4 % | 0.4 % |
--------------------------------------------------------------------------------
| Households | 92.3 % | 66.3 % |
--------------------------------------------------------------------------------
| Foreign holding | 0.5 % | 1.3 % |
--------------------------------------------------------------------------------
REPORTED SHARE PERFORMANCE ON THE HELSINKI STOCK EXCHANGE
Digia Plc shares are listed on the Nordic Exchange under Information Technology
IT Services. The company's short name is DIG1V. The lowest reported share
quotation was EUR 2.55 and the highest was EUR 3.25. The share closed at EUR
3.00 on the period's last trading day. The trade-weighted average amounted to
EUR 2.99. The Group's market capitalisation totalled EUR 62,560,935 at the end
of the period.
During the reporting period, the company did not receive new announcements based
on the Finnish Securities Markets Act.
STOCK OPTION SCHEMES
The current option schemes of Digia include the stock option scheme 2003D, on
the basis of which a maximum number of 150,000 shares in Digia can be
subscribed, and stock option scheme 2005A-C, on the basis of which a maximum
number of 900,000 shares in Digia can be subscribed.
On 31 March 2008, the remaining number of warrants issued by Digia totalled
1,050,000. Shares subscribed for using the warrants represent a maximum of 4.79
per cent of the company's share capital and voting rights after any potential
increase in share capital. On 31 March 2008, the number of warrants held by
Digia still totalled 534,082 of all valid warrants. On 31 March 2008, the
maximum dilution effect of the issued warrants was 2.41 per cent.
Helsinki, 29 April 2008
Digia Plc
Board of Directors
BRIEFING FOR MEDIA AND ANALYSTS
Digia will hold a briefing on its Interim Report for Q1/2008 and financial
statement for analysts and the media on Tuesday 29 April 2008 at 11.00 am in the
Marski Cabinet of the World Trade Center, Aleksanterinkatu 17, Helsinki,
Finland. All are welcome.
FURTHER INFORMATION
Juha Varelius, President and CEO
Mobile: +358 400 855849
E-mail: juha.varelius@digia.com
The Interim Report and access to the related live briefing for the media and
analysts (in Finnish) will be available in the ‘Investors' section at
www.digia.fi. The briefing starts at 11.00 a.m.
DISTRIBUTION
OMX Nordic Exchange Helsinki
Key media
ATTACHMENTS
Consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Consolidated statement of changes in shareholders' equity
Notes to the accounts
The Interim Report has been prepared in compliance with IFRS recognition and
measurement principles. This Interim Report is based on unaudited figures.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | Change, % | 2007 |
--------------------------------------------------------------------------------
| Net sales | 31,678.4 | 26,278.9 | 21 % | 105,839.4 |
--------------------------------------------------------------------------------
| Other operating | 5.3 | 123.4 | -96 % | 211.6 |
| income | | | | |
--------------------------------------------------------------------------------
| Materials and | -2,822.5 | -1,922.2 | 47 % | -8,363.5 |
| services | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -1,276.8 | -1,270.1 | 1 % | -4,893.5 |
| impairment | | | | |
--------------------------------------------------------------------------------
| Other operating | -23,356.9 | -20,333.8 | 15 % | -81,713.9 |
| expenses | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit | 4,227.6 | 2,876.2 | 47 % | 11,080.1 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Financial expenses | -797.1 | -790.4 | 1 % | -3,182.5 |
| (net) | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Pre-tax profit | 3,430.5 | 2,085.8 | 64 % | 7,897.6 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Direct tax | -958.6 | -684.1 | 40 % | -2,026.4 |
--------------------------------------------------------------------------------
| Profit for the | 2,471.9 | 1,401.6 | 76 % | 5,871.2 |
| period | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Allocation: | | | | |
--------------------------------------------------------------------------------
| Parent company | 2,471.9 | 1,401.6 | 76 % | 5,871.2 |
| shareholders | | | | |
--------------------------------------------------------------------------------
| Minority | 0.0 | 0.0 | | 0.0 |
| shareholders | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.12 | 0.07 | 71 % | 0.29 |
| EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.12 | 0.07 | 71 % | 0.29 |
| (diluted), EUR | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET, EUR 1,000
--------------------------------------------------------------------------------
| Assets | 31.3.2008 | 31.12.2007 | Change, % |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Fixed and other | | | |
| non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 105,180.6 | 102,107.6 | 3 % |
--------------------------------------------------------------------------------
| Tangible assets | 2,897.5 | 2,935.5 | -1 % |
--------------------------------------------------------------------------------
| Financial assets | 652.8 | 660.3 | -1 % |
--------------------------------------------------------------------------------
| Deferred tax assets | 2,088.4 | 2,312.0 | -10 % |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total fixed and other | 110,819.3 | 108,015.4 | 3 % |
| non-current assets | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Current receivables | 30,274.4 | 29,889.0 | 1 % |
--------------------------------------------------------------------------------
| Available-for-sale | 3,334.3 | 5,180.4 | -36 % |
| financial assets | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 8,566.5 | 6,558.4 | 31 % |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total current assets | 42,175.1 | 41,627.8 | 1 % |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total assets | 152,994.4 | 149,643.2 | 2 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and | 31.12.2007 | 31.12.2007 | Change, % |
| liabilities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Share capital | 2,085.4 | 2,085.4 | 0 % |
--------------------------------------------------------------------------------
| Issue premium fund | 7,899.5 | 7,892.5 | 0 % |
--------------------------------------------------------------------------------
| Other reserves | 5,203.8 | 5,203.8 | 0 % |
--------------------------------------------------------------------------------
| Unrestricted invested | 35,069.1 | 38,110.6 | -8 % |
| shareholders' equity | | | |
--------------------------------------------------------------------------------
| Translation difference | -4.4 | -11.8 | -63 % |
--------------------------------------------------------------------------------
| Retained earnings/loss | 15,103.9 | 9,450.3 | 60 % |
--------------------------------------------------------------------------------
| Profit for the period | 2,471.9 | 5,871.2 | -58 % |
--------------------------------------------------------------------------------
| Equity attributable to | 67,829.2 | 68,602.0 | -1 % |
| parent company | | | |
| shareholders | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total shareholders' equity | 67,829.2 | 68,602.0 | -1 % |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Long-term, | 55,726.0 | 55,646.7 | 0 % |
| interest-bearing | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 3,469.2 | 3,442.4 | 1 % |
--------------------------------------------------------------------------------
| Total long-term | 59,195.2 | 59,089.1 | 0 % |
| liabilities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | 816.7 | 766.3 | 7 % |
| liabilities | | | |
--------------------------------------------------------------------------------
| Other short-term debt | 25,153.3 | 21,185.8 | 19 % |
--------------------------------------------------------------------------------
| Total short-term | 25,970.0 | 21,952.1 | 18 % |
| liabilities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Total liabilities | 85,165.2 | 81,041.2 | 5 % |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Shareholders' equity and | 152,994.4 | 149,643.2 | 2 % |
| liabilities | | | |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
--------------------------------------------------------------------------------
| Cash flow from business | 1.1.2008 - | 1.1.2007 - | 1.1.2007 - |
| operations: | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Profit for the period | 2,472 | 1,401 | 5,871 |
--------------------------------------------------------------------------------
| Adjustments to net profit | 3,048 | 2,796 | 10,165 |
--------------------------------------------------------------------------------
| Change in working capital | 1,548 | 2,776 | -4,566 |
--------------------------------------------------------------------------------
| Interest paid | -836 | -711 | -3,329 |
--------------------------------------------------------------------------------
| Interest received | 101 | 35 | 250 |
--------------------------------------------------------------------------------
| Income tax paid | -208 | -480 | -2,233 |
--------------------------------------------------------------------------------
| Net cash flow from operating | 6,125 | 5,817 | 6,157 |
| activities | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flow from investments: | | | |
--------------------------------------------------------------------------------
| Purchase of property, plant and | -637 | -507 | -1,979 |
| equipment, and intangible | | | |
| assets | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of | | | - |
| intangible assets and PPE | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiary, net | -2,816 | -209 | -2,339 |
| of cash acquired | | | |
--------------------------------------------------------------------------------
| Proceeds of sale of other | - | - | - |
| investments | | | |
--------------------------------------------------------------------------------
| Dividends received | - | - | - |
--------------------------------------------------------------------------------
| Cash flow from investments | -3,452 | -716 | -4,318 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash flow from financing: | | | |
--------------------------------------------------------------------------------
| Proceeds from share issue | 7 | 2 | 1,241 |
--------------------------------------------------------------------------------
| Acquisition of own shares | -476 | - | - |
--------------------------------------------------------------------------------
| Equity financing of share-based | - | - | -971 |
| bonus scheme | | | |
--------------------------------------------------------------------------------
| Repayment of current loans | - | - | - |
--------------------------------------------------------------------------------
| Repayments of non-current loans | - | -150 | -252 |
--------------------------------------------------------------------------------
| Withdrawals of current loans | - | - | - |
--------------------------------------------------------------------------------
| Withdrawals of non-current | - | - | - |
| loans | | | |
--------------------------------------------------------------------------------
| Dividends paid and other profit | -2,041 | -1,433 | -1,625 |
| distribution | | | |
--------------------------------------------------------------------------------
| Cash flow from financing: | -2,510 | -1,582 | -1,606 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Change in liquid assets: | 162 | 3,519 | 234 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Liquid assets at beginning of | 11,739 | 11,506 | 11,506 |
| period | | | |
--------------------------------------------------------------------------------
| Change in fair value of cash | - | - | - |
| and cash equivalents | | | |
--------------------------------------------------------------------------------
| Change in liquid assets | 162 | 3,519 | 234 |
--------------------------------------------------------------------------------
| Liquid assets at period end | 11,901 | 15,025 | 11,739 |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, EUR 1,000
--------------------------------------------------------------------------------
| | a | b | c | d | e | f | g | h |
--------------------------------------------------------------------------------
| Balance | 2,03 | 6,72 | 44,9 | 0 | 0 | 9,305 | 114 | 63,119 |
| 1 Jan. | 1 | 9 | 39 | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Available-for-s | | | | | | | | 0 |
| ale | | | | | | | | |
| investments: | | | | | | | | |
--------------------------------------------------------------------------------
| Fair value | | | | | | | | 0 |
| gains/losses | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | 51 | | 51 |
--------------------------------------------------------------------------------
| Items | 0 | 0 | 0 | 0 | 0 | 51 | 0 | 51 |
| recognised | | | | | | | | |
| directly in | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | | 1,401 | 0 | 1,401 |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 0 | 0 | 0 | 0 | 0 | 1,452 | 0 | 1,452 |
| recognised | | | | | | | | |
| income and | | | | | | | | |
| expenses for | | | | | | | | |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Increase of | 0 | 1 | | | | | | 1 |
| share capital | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | | - | | -1,625 |
| payment | | | | | | 1,625 | | |
--------------------------------------------------------------------------------
| Other | | | | | | 8 | -114 | -106 |
--------------------------------------------------------------------------------
| BALANCE | 2,03 | 6,73 | 44,9 | 0 | 0 | 9,140 | 0 | 62,842 |
| 31 | 1 | 1 | 39 | | | | | |
| March 07 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | a | b | c | d | e | f | g | h |
--------------------------------------------------------------------------------
| Balance | 2,08 | 7,89 | 43,3 | -12 | 0 | 15,32 | 0 | 68,602 |
| 1 Jan | 5 | 3 | 14 | | | 1 | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Available-for-s | | | | | | | | 0 |
| ale | | | | | | | | |
| investments: | | | | | | | | |
--------------------------------------------------------------------------------
| Fair value | | | | | | | | 0 |
| gains/losses | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
--------------------------------------------------------------------------------
| Items | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| recognised | | | | | | | | |
| directly in | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | | 2,471 | 0 | 2,471 |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 0 | 0 | 0 | 0 | 0 | 2,471 | 0 | 2,471 |
| recognised | | | | | | | | |
| income and | | | | | | | | |
| expenses for | | | | | | | | |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Increase of | | 7 | | | | | | 7 |
| share capital | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | -2,0 | | | | | -2,041 |
| payment | | | 41 | | | | | |
--------------------------------------------------------------------------------
| Own-share | | | -1,0 | | | 524 | | -476 |
| redemption | | | 00 | | | | | |
| reserve | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | -742 | | -742 |
| transactions | | | | | | | | |
| settled in | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | 7 | | | | 7 |
--------------------------------------------------------------------------------
| BALANCE | 2,08 | 7,89 | 40,2 | -4 | 0 | 17,57 | 0 | 67,829 |
| 31 | 5 | 9 | 73 | | | 6 | | |
| March 2008 | | | | | | | | |
--------------------------------------------------------------------------------
a = Share capital
b = Share premium
c = Other reserves and invested unrestricted equity
d = Currency translation differences
e = Fair value reserve
f = Retained earnings
g = Minority interest
h = Total shareholders' equity
NOTES TO THE ACCOUNTS
Accounting principles:
The accounting principles and calculation methods used in the previous year-end
accounts have been applied to this Interim Report.
The subsidiary acquired in the first quarter, Sunrise Resources Oy, has been
included in the consolidated financial statement as of 1 January 2008.
Seasonal nature of business:
The Group's business is affected by the number of workdays each month as well as
by holiday seasons.
Dividends paid:
A per-share dividend of EUR 0.10, or a total of EUR 2,041,426.80, was paid based
on the decision of the AGM of 11 March 2008. The dividend payment date was 25
March 2008.
Events after the balance sheet date:
There have been no major events since the report period.
Segment information:
--------------------------------------------------------------------------------
| NET SALES, EUR 1,000 | 1-3/2008 | 1-3/2007 | Change, % | 1-12/200 |
| | | | | 7 |
--------------------------------------------------------------------------------
| Telecommunications | 15,933 | 11,798 | 35 % | 47,963 |
--------------------------------------------------------------------------------
| Finance and Services | 8,587 | 6,861 | 25 % | 29,298 |
--------------------------------------------------------------------------------
| Industry and Trade | 7,158 | 7,620 | -6 % | 28,578 |
--------------------------------------------------------------------------------
| Group total | 31,678 | 26,279 | 21 % | 105,839 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT, EUR | 1-3/2008 | 1-3/2007 | Change, % | 1-12/200 |
| 1,000 | | | | 7 |
--------------------------------------------------------------------------------
| Telecommunications | 3,094 | 1,439 | 115 % | 5,671 |
--------------------------------------------------------------------------------
| Finance and Services | 561 | 144 | 289 % | 2,617 |
--------------------------------------------------------------------------------
| Industry and Trade | 572 | 1,292 | -56 % | 3,511 |
--------------------------------------------------------------------------------
| One-off items | | | | -719 |
--------------------------------------------------------------------------------
| Group total | 4,228 | 2,876 | 47 % | 11,080 |
--------------------------------------------------------------------------------
Acquired business operations:
Digia acquired all shares of Sunrise Resources Ltd on 14 January 2008. The
acquisition price was EUR 3.6 million paid as a cash consideration and Digia
financed the transaction through its cash reserves. In addition, the sellers may
receive an additional sales price based on Sunrise-r objectives for the year
2008. The maximum amount of the additional sales price is EUR 0.6 million, which
may be paid either in cash or in Digia's shares, as determined by Digia. The
acquisition generated EUR 2.5 million of goodwill, in addition to which EUR 0.6
million of the acquisition price was allocated for the acquired customers.
--------------------------------------------------------------------------------
| EUR 1,000 | Fair value | Book value before |
| | recognised upon | combination |
| | combination | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 50 | 50 |
--------------------------------------------------------------------------------
| Intangible assets | 4 | 4 |
--------------------------------------------------------------------------------
| Financial assets | 32 | 32 |
--------------------------------------------------------------------------------
| Receivables | 463 | 463 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 865 | 865 |
--------------------------------------------------------------------------------
| Total assets | 1,413 | 1,413 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Income tax liabilities | 27 | 27 |
--------------------------------------------------------------------------------
| Other creditors | 260 | 260 |
--------------------------------------------------------------------------------
| Total liabilities | 287 | 287 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Net assets | 1,126 | 1,126 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Acquisition cost | 4,311 | |
--------------------------------------------------------------------------------
| Goodwill | 3,185 | |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Total acquisition cost | -4,311 | |
--------------------------------------------------------------------------------
| Additional purchase price, | 630 | |
| conditional | | |
--------------------------------------------------------------------------------
| Liquid assets of the acquired | 865 | |
| subsidiary | | |
--------------------------------------------------------------------------------
| Cash flow effect | -2,816 | |
--------------------------------------------------------------------------------
Consolidated income statement by quarter:
--------------------------------------------------------------------------------
| EUR 1,000 | 1-3/200 | 10-12/20 | 7-9/2007 | 4-6/2007 | 1-3/2007 |
| | 8 | 07 | | | |
--------------------------------------------------------------------------------
| Net sales | 31,678. | 31,012.5 | 22,645.0 | 25,903.1 | 26,278.9 |
| | 4 | | | | |
--------------------------------------------------------------------------------
| Other operating | 5.3 | -5.2 | 13.0 | 80.3 | 123.4 |
| income | | | | | |
--------------------------------------------------------------------------------
| Materials and | -2,822. | -2,706.7 | -1,978.7 | -1,755.9 | -1,922.2 |
| services | 5 | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -1,276. | -1,285.6 | -1,178.2 | -1,159.6 | -1,270.1 |
| impairment | 8 | | | | |
--------------------------------------------------------------------------------
| Other operating | -23,356 | -22,803. | -17,977.2 | -20,599. | -20,333.8 |
| expenses | .9 | 1 | | 8 | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 4,227.6 | 4,211.9 | 1,524.0 | 2,468.0 | 2,876.2 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial expenses | -797.1 | -858.2 | -800.2 | -733.8 | -790.4 |
| (net) | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Pre-tax profit | 3,430.5 | 3,353.7 | 723.8 | 1,734.3 | 2,085.8 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Direct tax | -958.6 | -699.0 | -177.5 | -465.8 | -684.1 |
--------------------------------------------------------------------------------
| Profit for the | 2,471.9 | 2,654.7 | 546.3 | 1,268.6 | 1,401.6 |
| period | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Allocation: | | | | | |
--------------------------------------------------------------------------------
| Parent company | 2,471.9 | 2,654.7 | 546.3 | 1,268.6 | 1,401.6 |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0.0 | 0.0 | 0.0 | 0.0 |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.12 | 0.13 | 0.03 | 0.06 | 0.07 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.12 | 0.13 | 0.03 | 0.06 | 0.07 |
| (diluted), EUR | | | | | |
--------------------------------------------------------------------------------
Group key figures and ratios:
--------------------------------------------------------------------------------
| | 1-3/2008 | 1-3/2007 | 2007 |
--------------------------------------------------------------------------------
| Extent of business | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Net sales | 31,678.4 | 26,279 | 105,839.4 |
--------------------------------------------------------------------------------
| - change from previous year | 21 % | 55 % | 25 % |
--------------------------------------------------------------------------------
| Average capital invested | 124,693 | 119,472 | 123,994 |
--------------------------------------------------------------------------------
| Personnel at period-end | 1,281 | 1,091 | 1,155 |
--------------------------------------------------------------------------------
| Average number of personnel | 1,252 | 1,087 | 1,116 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Profitability | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Operating profit | 4,228 | 2,876 | 11,080 |
--------------------------------------------------------------------------------
| - % of net sales | 13 % | 11 % | 10 % |
--------------------------------------------------------------------------------
| Result before taxes | 3,431 | 2,086 | 7,898 |
--------------------------------------------------------------------------------
| - % of net sales | 11 % | 8 % | 7 % |
--------------------------------------------------------------------------------
| Profit for the period | 2,472 | 1,402 | 5,871 |
--------------------------------------------------------------------------------
| - % of net sales | 8 % | 5 % | 6 % |
--------------------------------------------------------------------------------
| Return on equity, % | 14 % | 9 % | 9 % |
--------------------------------------------------------------------------------
| Return on investment, % | 14 % | 10 % | 9 % |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Financing and financial | | | |
| position | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 56,543 | 56,317 | 56,413 |
--------------------------------------------------------------------------------
| Short-term investments & cash | 11,901 | 15,025 | 11,739 |
| and bank receivables | | | |
--------------------------------------------------------------------------------
| Net gearing, % | 66 % | 66 % | 65 % |
--------------------------------------------------------------------------------
| Equity ratio, % | 45 % | 44 % | 47 % |
--------------------------------------------------------------------------------
| Net cash flow from operating | 6,125 | 5,817 | 6,157 |
| activities | | | |
--------------------------------------------------------------------------------
| Basic earnings per share (EUR) | 0.12 | 0.07 | 0.29 |
--------------------------------------------------------------------------------
| Earnings per share (EUR), | 0.12 | 0.07 | 0.29 |
| diluted | | | |
--------------------------------------------------------------------------------
| Equity per share | 3.25 | 3.09 | 3.32 |
--------------------------------------------------------------------------------
| Lowest share price | 2.55 | 3.37 | 2.93 |
--------------------------------------------------------------------------------
| Highest share price | 3.25 | 3.99 | 4.26 |
--------------------------------------------------------------------------------
| Average share price | 2.99 | 3.66 | 3.77 |
--------------------------------------------------------------------------------
| Market capitalisation | 62,561 | 73,734 | 61,079 |
--------------------------------------------------------------------------------
The formulae for the key figures and ratios are available in the financial
statements section. These formulae remained unchanged during the reporting
period.
The weighted average number of shares during the reporting period, adjusted for
share issues, totalled 20,514,525. The weighted average number of shares during
the reporting period, adjusted for dilution, totalled 20,514,525. The number of
outstanding shares totalled 20,853,635 at the end of the reporting period.
The company held a total of 146,377 treasury shares at the end of reporting
period. In accordance with the decision of the Board of Directors, the company
will continue the buyback of own shares until it holds 300,000 treasury shares
or has used EUR 1,000,000 for the buybacks.
Relating to the company's performance-based incentive system, Digia has financed
the acquisition of 300,000 own shares. In the coming years, these shares are
intended for distribution to key personnel as rewards for targets achieved in
accordance with the conditions of the performance-based incentive system. In
accordance with the Board of Directors' decision, performance-based incentives
to key personnel will be paid in company shares.
The Group has no liabilities associated with derivative contracts.