AFFECTO PLC STOCK EXCHANGE RELEASE 3 MAY 2007 at 08:30 AFFECTO PLC'S INTERIM REPORT 1-3/2007 GROUP KEY FIGURES MEUR 1-3/2007 1-3/2006 2006 Net sales 17.6 10.4 50.2 Operating result before IFRS3 items 2.4 -0.2 4.1 % of net sales 13.5 -1.7 8.1 Operating result 2.0 -0.2 3.6 % of net sales 11.4 -2.2 7.3 Result before taxes 1.9 -0.3 3.5 Result for the period 1.4 -0.3 2.6 Equity ratio, % 50.1 57.6 52.0 Net gearing, % 29.9 9.9 35.2 Earnings per share, eur 0.08 -0.02 0.16 Earnings per share (diluted), eur 0.08 -0.02 0.16 Equity per share, eur 2.26 2.16 2.30 CEO Pekka Eloholma comments the first quarter 2007: "I am very satisfied with the developments in first quarter. Our net sales grew by 68%. The quarter was the best in two years regarding both net sales and operating profit." "Our net sales grew to 17.6 MEUR (10.4 MEUR). The growth was especially strong in Baltic (108%), but it was also good in Finland (18%). The acquisitions done in late 2006 (ZenPark & Intellibis) created a good foundation for growth, but also the organic growth was significant (approx. 24%). The quarter had good profitability and EBIT was 2.0 MEUR i.e. 11% of net sales. Profitability improved especially in the Baltic. The order backlog remained at a strong level." "The demand for our solutions has remained good in Finland. The Baltic business has grown significantly and during the quarter we increased our Baltic delivery capacity by hiring approx. 20 new employees. The Swedish business has also developed positively and the demand for Business Intelligence solutions is expected to remain strong also during the remaining part of the year." "Positive development is expected to continue during year 2007. Based on the recent acquisitions and good order backlog the company seeks to reach net sales of approx. 70 MEUR in 2007. The profitability is also expected to improve from year 2006. The second quarter is estimated to be clearly better than Q2/2006." Additional information: CEO Pekka Eloholma, +358 205 777 737 CFO Satu Kankare, +358 205 777 202 SVP, M&A, Hannu Nyman, +358 205 777 761 This interim report has been prepared in accordance with the IFRS recognition and measurement principles and applying the same accounting policies as in the 2006 annual consolidated financial statements. This interim report does not comply with all of the requirements of IAS 34 Interim Financial Reporting. The group has adopted the following standards and interpretations from the beginning of 2007: IFRS 7, Financial instruments: Disclosures and Amendment to IAS 1 - Capital disclosures. The adoption of IFRS 7 and the amendment to IAS 1 will expand disclosures presented in the annual financial statements. This report is unaudited. The amounts in this report have been rounded from exact numbers. INTERIM REPORT 1-3/2007 Affecto builds versatile IT solutions for companies and organizations in Finland, Sweden and the Baltic States to improve their efficiency in business and to support the related decision-making. The company's IT solutions are always customised to meet the specific needs of each customer. Affecto offers business intelligence (BI) solutions that enable an efficient way of utilizing and refining the data from ERP systems. The company develops also geographic information systems (GIS) solutions and enterprise content management (ECM) solutions that help companies to collect, organise and analyse digital information in support of their business processes. Affecto is headquartered in Helsinki, with other offices in Finland located in Joensuu, Jyväskylä, Rauma, Tampere and Turku. The company has subsidiaries in Estonia, Lithuania, Latvia and Sweden. NET SALES AND PROFIT Affecto's net sales in 1-3/2007 was 17.6 MEUR (1-3/2006 10.4 MEUR). Net sales in Finland was 9.8 MEUR (1-3/2006 8.3 MEUR), in Baltic area 4.6 MEUR (2.2 MEUR) and 3.3 MEUR in Nordic (0.0 MEUR). Sales growth was 68%. Organic growth is estimated to have been approx. 24% (calculated by comparing Affecto's business in Q1/06 to same business in Q1/07). In Finland growth was 18% and in Baltic it was 108%. Sales of geographical segments based on location of assets Total sales, MEUR 1-3/2007 1-3/2006 2006 Finland 9.8 8.3 36.3 Baltic 4.6 2.2 13.1 Nordic 3.3 0.0 0.9 Eliminations 0.0 0.0 0.0 Group total 17.6 10.4 50.2 The sales growth was based on good demand for our services in all our market areas. Especially the Baltic business developed very positively compared to last year. Intellibis in Sweden, acquired in December 2006, forms the Nordic segment. This was the first full quarter, when the company operated as part of Affecto. Net sales of BI segment were 7.4 MEUR (2.5 MEUR), Operational solutions 8.3 MEUR (6.0 MEUR) and Cartographic solutions 1.9 MEUR (2.0 MEUR). The acquisitions done in 2006 had impact mostly on the BI segment. The sales of third-party licenses, delivered as part of solutions, decreased from previous year, and their share of group net sales was below 5%. Affecto's EBIT was 2.0 MEUR (-0.2 MEUR). EBIT in Finland was 0.9 MEUR (0.6 MEUR), Baltic EBIT was 1.0 MEUR (-0.4 MEUR) and Nordic EBIT was 0.4 MEUR. Last year, Q1/2006 EBIT in Finland included 0.1 MEUR non-recurring income. Operating result of geographical segments based on location of assets Operating result, MEUR 1-3/2007 1-3/2006 2006 Finland 0.9 0.6 4.6 Baltic 1.0 -0.4 0.5 Nordic 0.4 0.0 0.0 Group management -0.4 -0.4 -1.5 Group total 2.0 -0.2 3.6 According to IFRS requirements, Q1/2007 EBIT includes 0.4 MEUR (0.1 MEUR) of depreciation of intangible assets related to acquisitions. A significant part of the depreciation is related to Nordic segment. In year 2006, such depreciation totaled 0.4 MEUR. In year 2007, such depreciation is estimated to amount to 1.2 MEUR. The profitability developed positively during the first quarter both in Finland and in the Baltic countries. The profit in Baltic improved significantly thanks to good resource utilization rate. The profit improved also in Finland although the redesign of the company's visual identity burdened profit to some extent. R&D expenditure in the review period totaled 0.2 MEUR (0.1 MEUR), i.e. 0.9% of net sales (1.3%). The expenditure has been booked as costs. Taxes for the period have been booked as taxes. Net profit for the period was 1.4 MEUR, while it was -0.3 MEUR last year. Order backlog totaled 23.2 MEUR at the end of period (14.8 MEUR in 31 March 2006 and 24.2 MEUR in 31 December 2006). FINANCE AND INVESTMENTS At the end of the reporting period, Affecto's balance sheet totaled 80.2 MEUR (Q1/2006: 61.8 MEUR). Significant part of the growth is due to the acquisition of Intellibis AB at the end of 2006. Equity ratio was 50.1% (57.6%) and net gearing was 29.9% (9.9%). The financial loans were 18.6 MEUR as at 31 March 2007. The interest-bearing net debt was 11.5 MEUR. The company's cash and liquid assets were 7.0 MEUR (Q1/2006: 12.7 MEUR), of which cash and cash equivalents were 6.5 MEUR and available-for-sale financial assets 0.6 MEUR. Cash flow from operating activities for the reported period was 2.5 MEUR (0.1 MEUR) and cash flow from investments was -0.5 MEUR (-0.6 MEUR). Investments in non-current assets excluding acquisitions were 0.4 MEUR (0.3 MEUR) during the period. Affecto has distributed dividends of 1.7 MEUR (previous year 1.5 MEUR) from the profit of the year 2006. Dividend was paid on 11 April 2007 and has been booked as non-interest bearing debt in this interim report. EMPLOYEES The number of employees was 778 persons at the end of the reporting period (556 persons). The average number during the period was 767 persons (558). 419 employees, i.e. 54% of the employees are located outside of Finland. The group management team was modified as of 1 February 2007 as a consequence of the Intellibis acquisition in Sweden. Mr. Ray Byman was appointed as the Sales Director in Finland and as a member of the group management team as of 7 March 2007. BUSINESS REVIEW Finland Net sales in Finland was 9.8 MEUR (8.3 MEUR) and it increased by 18%. EBIT was 0.9 MEUR (0.6 MEUR). The year has started somewhat better than the previous year. The business developed steadily during the quarter and the demand for our services was reasonably good and was increasing especially regarding BI services. The unit prices of consultant work have remained stable or even slightly increased. The redesign of the company's visual identity burdened profit to some extent. The employees of ZenPark, acquired in September 2006, located in the Helsinki area moved in January to the Pitäjänmäki office in Helsinki in order to be in the same premises with other employees. ZenPark will be juridically merged to Affecto Finland Oy in June 2007. We have aimed to increase the number of employees during the period, but recruiting of competent people is rather slow. The growth of IT services market in Finland is rather slow, but the growth of our segments (BI, ECM, GIS) is expected to exceed the average market growth. The customers' activity has continued to be good. We received new orders from, among others, Nokia, ABB, SOK, VR and various ministries. Baltic (Lithuania, Latvia, Estonia) The Baltic business mostly consists of projects related to large customer- specific systems. Projects are typically larger and tender processes longer than in Finland. The business is mostly classified to Operational solutions, but also includes BI solutions. The Baltic net sales grew 108% and was 4.6 MEUR (2.2 MEUR). Baltic EBIT was 1.0 MEUR (-0.4 MEUR). The business has developed very favorably compared to last year, and the resource utilization rate and profitability is high in all three countries. The steady continuing work on large projects has helped to keep the utilization rate steadily high the whole period. The order backlog has remained at a good level and offers stable resource utilization for the next few months. During the period, new orders were received, among others, from Unibet Software R&D, SOGAZ and Latvian State Revenue Service. The company is actively recruiting more employees. During the first quarter, the number of employees in Baltic grew by approx. 20. The Baltic countries enjoy a high demand for competent workforce, which is predicted to increase salary levels during the year. On the other hand, the rising salaries will most likely also lead to increases in local project price levels, which will help to compensate the rising salaries. EITO forecasts that the IT services will grow by over 13% p.a. in the next few years in all three Baltic countries. Nordic Affecto has expanded its business to the other Nordic countries by acquiring Intellibis AB from Sweden in December 2006. Intellibis is the leading specialised supplier of business intelligence (BI) solutions in Sweden. During the first quarter the net sales was 3.3 MEUR and EBIT 0.4 MEUR. Year ago, Affecto did not have business in Sweden. The business has grown by approx. 15% compared to the net sales of Intellibis in 2006. The business of Intellibis has developed positively during the early part of 2007. The price development has been positive and the utilization rate has remained high. New customers like Fortum have been obtained and project contracts with old customers like Folksam and Apoteket have been prolonged. The delivery capacity has been increased by recruitments and we aim to continue increasing number of employees during the year. Business review by secondary segments In the beginning of 2007 the secondary segments were modified by separating BI (Business Intelligence), which previously was included in XBI, to its own segment. GIS and ECM, which were included in XBI, were combined with Customized solutions, which was renamed Operational solutions. Business intelligence (BI) net sales grew by 197% and was 7.4 MEUR (2.5 MEUR). The growth is largely explained by the acquisitions of ZenPark and Intellibis in late 2006, but the also the organic growth has been good. Customers' interest is increasingly focusing on larger solutions and continuous service. Demand for BI services has continuously grown and the utilization rate of project work improved compared to last year. Also the public sector entities in Finland and Sweden show growing interest for BI solutions. The research reports by various research companies speak about the growing significance of BI as an IT investment target for organizations. For example, Gartner expects the BI license market to grow by 10% p.a. during the next few years. Recruiting competent new employees is challenging especially in Sweden. Net sales of Operational Solutions grew by 38% and was 8.3 MEUR (6.0 MEUR). The growth is explained by the strong growth of the Baltic operations, where large public sector projects continued steadily. The insurance solution projects in South Africa and Sweden continued. The launched feasibility study projects in Russia and Poland regarding TIA insurance solutions may later lead to implementation projects in those countries. In Finland, the demand for solutions was good and the utilization rate of project resources was good. In addition, the co-operation with GIS software supplier ESRI was expanded by founding an ESRI competence centre. The demand for services remained moderately good in Baltic and in Finland. Cartographic Solutions businesses net sales was 1.9 MEUR (2.0 MEUR). The demand for digital geographic content and related services grew. The sales of maps and other printed products was below last year, but we expect the demand for consumer products to pick up for summer months along the normal annual cycle. CHANGES IN GROUP STRUCTURE The Annual General Meeting held on 28 March 2007 decided to change the name of the parent company to Affecto Plc. In line with the strategy, the company has continued to evaluate M&A prospects. ANNUAL GENERAL MEETING AND GOVERNANCE The Annual General Meeting of AffectoGenimap Plc, which was held on March 28, 2007, adopted the financial statements for 1.1.-31.12.2006 and discharged the members of the Board of Directors and the CEO from liability. The Annual General Meeting decided that a dividend of EUR 0.10 per share be distributed for the year 2006. The record date of the dividend payment was April 2, 2007 and the dividend was paid on April 11, 2007. Aaro Cantell, Heikki Lehmusto, Pasi Mäenpää, Jukka Norokorpi ja Esko Rytkönen were re-elected and Pyry Lautsuo was elected as members of the Board of Directors. Immediately after the Annual General Meeting the organization meeting of the Board of Directors was held and Aaro Cantell was re-elected Chairman of the Board. The APA firm PricewaterhouseCoopers Oy was re-elected auditor of the company with Merja Lindh, APA, as auditor in charge. The Annual General Meeting accepted the Board's proposal for changing the company name and Articles of Association. The name of the company and the Article 1 of the Articles of Association were changed. The new name of the company is Affecto Oyj in Finnish, Affecto Abp in Swedish and Affecto Plc in English. The current Articles of Association were amended so that Article 3, which concerns the minimum and maximum share capital, Article 4, which concerns the nominal value of the shares, Article 6, which concerns the transfer of the shares into the book-entry system, were removed and Article 5 and the last sentence of the second paragraph of Article 12 were amended. The Article 9 concerning the right to represent the company was amended to reflect the terminology in the Companies Act and the requirement of a deputy auditor was abolished and consequently Articles 11 and 13 were amended. In addition, the numbering of Articles of Association was amended. The changes were registered at the Finnish trade register on 2 April 2007. The Annual General Meeting accepted the Board's proposals for the authorizations given to the Board of Directors. According to the Articles of Association, the General Meeting of Shareholders annually elects the Board of Directors by a majority decision. The term of office of the board members expires at the end of the next Annual General Meeting of Shareholders following their election. The Board appoints the CEO. The Articles of Association do not contain any special rules for changing the Articles of Association. THE AUTHORIZATIONS GIVEN TO THE BOARD OF DIRECTORS During 1-3/2007 the Board did not use the authorizations given by the previous Annual General Meeting. Those authorizations ended on 28 March 2007. The complete contents of the new authorizations given by the Annual General Meeting held on 28 March 2007 have been published in the stock exchange release regarding the Meetings' decisions. The Annual General Meeting decided to authorize the Board of Directors to decide to issue new shares and to convey the company's own shares held by the company in one or more tranches. The share issue may be carried out as a share issue against payment or without consideration on terms to be determined by the Board of Directors and in relation to a share issue against payment at a price to be determined by the Board of Directors. A maximum of 3 400 000 new shares may be issued. A maximum of 1 700 000 own shares held by the company may be conveyed. In addition, the authorization includes the right to decide on a share issue without consideration to the company itself so that the amount of own shares held by the company after the share issue is a maximum of one-tenth (1/10) of all shares in the company. The authorisation shall be in force until the next Annual General Meeting. The Annual General Meeting decided to authorize the Board of Directors to decide to acquire the company's own shares with distributable funds. A maximum of 1 700 000 shares may be acquired. The authorization shall be in force until the next Annual General Meeting. SHARES AND TRADING The company has only one share series, and all shares have similar rights. As at 31 March 2007, Affecto Plc's share capital consisted of 17 016 521 shares and the share capital was EUR 5 104 956.30. The company owns 36 738 treasury shares, which corresponds to 0.2% of all shares. In 1-3/2007, the highest share price was 3.71 euro, lowest price 2.90 euro, average price 3.34 euro and closing price 3.40 euro. Trading volume was 3.2 million shares, corresponding to 76 % (annualized) of the number of shares at the end of period. The market value of shares was 57.7 MEUR at the end of the period. SHAREHOLDERS There have been no flagging announcements during January-March 2007. The company had total of 1241 owners on 31 March 2007 and the foreign ownership was 22%. The list of the largest owners can be viewed in the company's web site. OPTIONS After the review period, 268 900 options 2006B have been given to key personnel. The share subscription price with 2006B options is 3.24 eur per share after the dividends paid in April 2007. EVENTS AFTER THE REVIEW PERIOD The Annual General Meeting held on 28 March 2007 decided to change the company's name to Affecto Plc, which decision has been registered at the Finnish trade register on 2 April 2007. The company has received a flagging announcement that the ownership of Mr. Mika Laine has exceeded 5% on 5 April 2007. The company announced on 18 April 2007 that the Finnish Road Administration has selected Affecto as the operator of the national road and street database, Digiroad, for the next three years. STRATEGIC OBJECTIVES The company has two strong business lines: the strongest growth expectations are focused on the growing business intelligence market but at the same time the company wants to further strengthen its position in delivering demanding and customer specific operational IT solutions. The company aims to be the leading business intelligence solution provider in the Nordic, Baltic and CEE regions. Furthermore, the company aims to be the most competent and quality focused provider of geographic information systems (GIS), enterprise content management (ECM) and other operational solutions in selected industries and regions. The growth target for the company for 2007-2009 is that net sales exceed 100 million euros in 2009. The growth target will be reached through organic growth supplemented by acquisitions. At the same time the company seeks to be one of the most profitable IT services company within its market region. FUTURE OUTLOOK Positive development is expected to continue during year 2007. Based on the recent acquisitions and good order backlog the company seeks to reach net sales of approx. 70 MEUR in 2007. The profitability is also expected to improve from year 2006. The second quarter is estimated to be clearly better than Q2/2006. The company does not provide exact guidance for net sales or EBIT development, as single projects and timing of license sales may have large impact on quarterly sales and profit. Affecto Plc Board of Directors It is possible to order Affecto's stock exchange releases to be delivered automatically by e-mail. Please visit the Investor pages of the company website: http://www.affecto.com A briefing for analysts and media will be arranged at 11:00 at Restaurant Savoy, Eteläesplanadi 14, Helsinki. ----- Financial information: 1. Income statement, balance sheet and cash flow statement 2. Segment information 3. Notes 4. Key figures 1. Income statement, balance sheet and cash flow statement CONSOLIDATED INCOME STATEMENT (1 000 EUR) 1-3/07 1-3/06 2006 Net sales 17 576 10 443 50 194 Other operating income 0 85 138 Changes in inventories of 173 141 287 finished goods and work in progress Materials and services -2 689 -2 944 -13 177 Personnel expenses -9 518 -5 792 -23 996 IFRS3 depreciation -361 -50 -409 Other depreciation, amortization -275 -219 -963 and impairment charges Other operating expenses -2 900 -1 895 -8 432 Operating result 2 006 -231 3 642 Finance costs (net) -147 -61 -184 Result before income tax 1 860 -292 3 458 Income tax -422 11 -824 Result for the period 1 438 -281 2 633 Attributable to: Equity holders of the Company 1 438 -280 2 633 Minority interest 0 -1 0 Earnings per share for result attributable to the equity holders of the Company (expressed in EUR per share) Basic 0.08 -0.02 0.16 Diluted 0.08 -0.02 0.16 CONSOLIDATED BALANCE SHEET (1 000 EUR) 3/2007 3/2006 12/2006 Non-current assets Tangible assets 2 260 1 960 2 110 Goodwill 43 845 30 860 43 579 Other intangible assets 7 009 2 829 7 550 Deferred tax assets 634 542 594 Available-for-sale financial assets 57 73 57 Other non-current receivables 96 52 93 53 900 36 316 53 983 Current assets Inventories 2 186 2 172 2 095 Trade receivables 9 799 5 832 11 508 Other receivables 5 885 4 048 4 230 Current income tax receivables 1 057 679 1 036 Available-for-sale financial assets 560 0 578 Financial assets at fair value through 56 0 24 profit or loss Restricted cash 395 5 381 Cash and cash equivalents 6 330 12 715 4 906 26 267 25 451 24 758 Total assets 80 167 61 767 78 741 Equity attributable to equity holders of the Company Share capital 5 105 4 619 5 105 Share premium 25 404 22 856 25 404 Reserve of invested non-restricted 1 960 0 1 960 equity Other reserves 15 55 11 Treasury shares -106 0 -106 Retained earnings 6 025 5 743 6 717 38 402 33 273 39 092 Minority interest 0 19 0 Total shareholders' equity 38 402 33 292 39 092 Non-current liabilities Borrowings 14 014 8 858 14 014 Deferred tax liabilities 1 901 482 2 007 Other long-term liabilities 2 815 0 2 232 18 730 9 340 18 252 Current liabilities Borrowings 4 616 3 696 5 032 Trade payables 2 259 1 764 2 627 Other liabilities 14 771 13 622 12 580 Current income tax liabilities 1 390 53 1 158 23 036 19 135 21 397 Total liabilities 41 765 28 475 39 649 Total shareholders' equity and 80 167 61 767 78 741 liabilities CONSOLIDATED CASH FLOW STATEMENT (1 000 EUR) 1-3/07 1-3/06 2006 Cash flows from operating activities Result for the period 1 438 -281 2 633 Adjustments to profit for the period 1 233 270 2 442 2 671 -11 5 076 Change in working capital Decrease (+) / increase (-) in trade and 99 366 -1 814 other receivables Decrease (+) / increase (-) in inventories -91 -48 30 Decrease (-) / increase (+) in trade and 247 155 475 other payables Change in working capital 255 473 -1 309 Interest and other finance cost paid -153 -101 -429 Interest and dividend received 16 66 289 Income taxes paid -308 -308 -1 024 Net cash generated by operating activities 2 481 119 2 604 Cash flows from investing activities Acquisition of subsidiaries, net of cash -107 -369 -13 262 acquired Purchases of tangible and intangible assets -372 -277 -1 118 Proceeds from sale of tangible assets 0 20 41 Sale of business/subsidiaries 0 0 45 Proceeds from sale of financial assets 0 38 39 Increase of other non-current receivables -3 0 30 Net cash used in investing activities -482 -588 -14 225 Cash flow from financing activities Proceeds from issue of share capital 0 0 2 Increase of interest-bearing liabilities 0 0 12 447 Repayments of interest-bearing liabilities -417 0 -5 938 Purchase of treasury shares 0 0 -509 Change in other long-term liabilities 8 0 0 Dividends paid to company's shareholders 0 0 -1 540 Net cash generated in financing activities -409 0 4 462 (Decrease)/increase in cash and cash 1 590 -469 -7 159 equivalents Cash and cash equivalents at the beginning 5 485 13 189 12 639 of the period Translation adjustment -55 0 -1 Change in fair value of financial assets 0 0 6 Cash and cash equivalents at the end of the 7 020 12 720 5 485 period 2. Segment information Primary reporting format Geographical segments based on location of assets Segment result: (1 000 EUR) 1-3/07 1-3/06 2006 Total sales Finland 9 754 8 257 36 267 Baltic 4 570 2 194 13 083 Nordic 3 250 0 881 Eliminations 2 -8 -36 Group total 17 576 10 443 50 194 Segment result (operating result) Finland 933 562 4 641 Baltic 1 046 -416 497 Nordic 398 0 -22 Group management -371 -377 -1 474 Group total 2 006 -231 3 642 Secondary reporting format - business segments Segment revenue: (1 000 EUR) 1-3/07 1-3/06 2006 Total sales BI 7 416 2 494 11 863 Operational Solutions 8 276 5 978 28 715 Cartographic Solutions 1 882 1 979 9 652 Other (incl. 2 -8 -36 eliminations) Group total 17 576 10 443 50 194 The Baltic revenue is classified to both BI and Customised Solutions segments. Nordic revenue is classified to the BI segment. The secondary segments were modified for financial year 2007. The following table shows the 2006 quarters according to the new segments. Segment revenue: (1 000 EUR) 1-3/06 4-6/06 7-9/06 10-12/06 Total sales BI 2 494 2 404 2 228 4 737 Operational Solutions 5 978 6 970 6 405 9 362 Cartographic Solutions 1 979 2 893 2 297 2 483 Other (incl. eliminations) -8 -3 -9 - 16 Group total 10 443 12 264 10 921 16 566 3. Notes Consolidated statement of changes in shareholders' equity 1-3/2007 and 1-3/2006 (1 000 EUR) Share Share Reserve of Other Trea- Ret. Mino- Total capital premium invested reserve sury earn- rity equity non- s shares ings & inte- restricted trans- rest equity lat. diff. Shareholders' 5 105 25 404 1 960 11 -106 6 717 0 39 092 equity 1 January 2007 Translation -433 -433 differences Share options 3 3 Result for the 1 438 1 438 period Dividends -1 698 -1 698 Shareholders' 5 105 25 404 1 960 15 -106 6 025 0 38 402 equity 31 March 2007 (1 000 EUR) Share Share Reserve of Other Trea- Ret. Mino- Total capital premium invested reserve sury earn- rity equity non- s shares ings & inte- restricted trans- rest equity lat. diff. Shareholders' 4 619 22 856 0 55 0 6 023 20 33 573 equity 1 January 2006 Result for the -280 -1 -281 period Shareholders' 4 619 22 856 0 55 0 5 743 19 33 292 equity 31 March 2006 Contingencies and commitments The group has a contingent asset of 87 thousand Latvian lats (EUR 123 thousand) relating to a court case in Latvia. Riga Regional Court published a judgement, according to which adverse party was sentenced to pay 87 thousand Latvian lats to a group company of Affecto (Mebius IT). The adverse party has appealed to the Supreme court of the Republic of Latvia and demanded to change the decision. The adverse party has demanded a compensation of 51 thousand Latvian lats (EUR 72 thousand) from Mebius IT. In respect of the acquisitions of Intellibis AB and ZenPark Oy, additional consideration of up to 4.7 MEUR may be payable. The additional consideration of ZenPark Oy (maximum 0.7 MEUR) is payable in 2007 and the additional consideration of Intellibis AB (maximum 4.0 MEUR) in 2008. At the end of the reporting period an additional consideration has been estimated to amount to 2.8 MEUR, which has been recorded as liability. The future aggregate minimum lease payments under non-cancelable operating leases as of 31 March 2007: 1 000 EUR 31.3.2007 31.12.2006 Not later than one (1) year 2 065 2 346 Later than one (1) year, but not later than 3 665 3 792 five (5) years Later than five (5) years 0 0 5 730 6 138 Guarantees: 1 000 EUR 31.3.2007 31.12.2006 Debt secured by a mortgage Financial loans 18 614 19 031 Mortgages 14 367 14 367 Other securities given on own behalf: Pledges 667 696 Pledges given on own behalf are secured by restricted cash of 0.4 MEUR (0.4 MEUR) and trade receivables at an amount of 0.3 MEUR (0.3 MEUR). Derivative contracts 1 000 EUR 31.3.2007 31.12.2006 Interest rate swaps: Nominal value 5 000 5 000 Fair value 56 24 4. Key figures IFRS 1-3/07 1-3/06 2006 Net sales, 1 000 eur 17 576 10 443 50 194 EBITDA, 1 000 eur 2 642 38 5 014 Operating result before IFRS3 2 367 -181 4 051 depreciation, 1 000 eur Operating result, 1 000 eur 2 006 -231 3 642 Result before extraordinary 1 860 -292 3 458 items, 1 000 eur Result before taxes, 1 000 eur 1 860 -292 3 458 Net income for equity holders 1 438 -280 2 633 of the parent company, 1 000 eur EBITDA, % 15.0 % 0.4 % 10.0 % Operating profit before IFRS3 13.5 % -1.7 % 8.1 % depreciation, % Operating result, % 11.4 % -2.2 % 7.3 % Result before extraordinary 10.6 % -2.8 % 6.9 % items, % Result before taxes, % 10.6 % -2.8 % 6.9 % Net income for equity holders 8.2 % -2.7 % 5.2 % of the parent company, % Equity ratio, % 50.1 % 57.6 % 52.0 % Net gearing, % 29.9 % 9.9 % 35.2 % Interest-bearing net debt, 11 480 3 290 13 743 1 000 eur Gross investment in non-current 372 277 1 118 assets (excl. acquisitions), 1 000 eur Gross investments, % of sales 2.1 % 2.6 % 2.2 % Research and development costs, 157 136 476 1 000 eur R&D -costs, % of sales 0.9 % 1.3 % 0.9 % Order backlog, 1 000 eur 23 207 14 821 24 167 Average number of employees 767 558 605 Earnings per share, eur 0.08 -0.02 0.16 Earnings per share (diluted), 0.08 -0.02 0.16 eur Equity per share, eur 2.26 2.16 2.30 Average number of shares, 1 000 16 980 15 396 16 058 shares Number of shares at the end of 16 980 15 396 16 980 period, 1 000 shares The calculation of key figures has been presented in the annual report for the year 2006. -----