Proha Plc Stock Exchange Bulletin November 11, 2004 at 9.10 a.m.
THE INTERIM REPORT OF PROHA PLC FOR JANUARY 1 - SEPTEMBER 30, 2004
- The Proha -Group's net sales for the period January 1 - September
30, 2004 were EUR 48.4 million (EUR 57.4 million for
January 1 - September 30, 2003).
- Earnings before interest, taxes and amortization (EBITA) totaled
EUR -4.6 (EUR -3.5) million
- The result for the period under review includes EUR 1.8 (0.7)
million of non-recurring restructuring charges.
- In the third quarter net sales were EUR 14.5 (EUR 17.2) million
and result (EBITA) EUR -1.7 (-1.5) million.
- The third quarter result includes non-recurring charges of EUR 0.6
million, that were predominantly due to concentrating the German
operations in Munich.
- The sales of Artemis 7 portfolio and project management solution
for investment planning and control continued to increase
substantially accounting for almost half of all new licenses sold.
- The balance sheet of the Group was strengthened, as Norwegian
Dovre became Proha's fully-owned subsidiary and Proha's subgroup Artemis
acquired a total of USD 9 million through equity finance. After the
transaction, Proha's ownership of Artemis reduced from 80% to 57%.
- The reorganization of operations has continued at Artemis. The
number of personnel came down by approximately 15%.
- The Norwegian operations were profitable and both the net sales
and result developed as expected.
- The Group's main focus remains in improving profitability. The
net sales of 2004 are expected to be below the previous year.
Following the reorganization efforts the lower cost level will
allow the fourth quarter earnings (EBITA) turn positive.
BUSINESS PERFORMANCE
In line with its strategy, Proha focuses on the international
portfolio and project management software and service business. The
Proha Group includes the
subgroup Artemis, which accounts for approximately 64% of the net
sales of the
Group, and project management operations in Norway, which mainly
serve the oil
and gas sector and represent approximately 34% of the net sales of
the Group. Proha is a world leader in enterprise-level project and
portfolio management solutions.
After the decline in net sales of the Artemis subgroup during the
second quarter
of 2003, the business volume has remained on the same level. The
sales of the
new generation Artemis 7 software with a higher unit price, have
developed favourably accounting for about half of all new Artemis
license sales during the
period. The total number of new Artemis licenses sold during the
period is
35,000 (47,000).
Patrick Ternier was appointed as new President and CEO of the
Artemis subgroup
as of January 23, 2004.
The reorganization of operations at Artemis will continue. The non-
recurring restructuring charges for nine months were at Artemis EUR
1.7 million, of which EUR 0.6 million were accrued on the third
quarter. The number of personnel at Artemis
has come down by approximately 15% during the period under review.
The development of industry-specific solutions based on Artemis 7
has progressed
as planned and is continuing.
The Norwegian operations developed as anticipated and the krone-
denominated business volume has increased slightly compared to the
first nine months of
2003. The euro-denominated net sales, however, have remained nearly
unchanged
due to fluctuations of exchange rates. During the period, Proha's
subsidiary Safran has focused on the development of a distribution
channel for Safran for Microsoft Project. Dovre International AS,
which was partly owned by
Proha, was acquired into Proha's full ownership in June 2004. On
the third quarter, Dovre entered into a frame agreement with a
leading Norwegian energy company. The agreement secures business
volume for Dovre for several years.
NET SALES
The Proha Group's net sales for January 1 - September 30, 2004 were
EUR 48.4 million (57.4 million). The net sales of the Artemis
subgroup totalled EUR 30.8 (38.3) million and accounted for 64%
(67%) of the Group's net sales.
The net sales of the Norwegian operations totalled EUR 16.4 (17.6)
million and accounted for 34% (31%) of the Group's net sales.
The net sales of the third quarter amounted to EUR 14.5 (17.2)
million. The net sales of the Artemis subgroup were EUR 8.9 (11.3)
million and the net sales of the Norwegian operations were EUR 5.3
(5.6) million.
The decline in the sales volume of Artemis compared to the
corresponding period in 2003 was caused by the termination of some
consultancy agreements since and the recognition of major software
license sales as revenue during the first months of 2003. The U.S.
service sales decreased during the second quarter of 2003 and have
remained on a lower level during 2004.
During the nine months of 2004, 65% of the Group's net sales
originated from outside the euro zone. The appreciation of the euro
reduced the euro-denominated net sales for the period by EUR 1.6
million compared to the corresponding period in 2003.
Distribution of net sales by product type:
Net sales EUR Percentage EUR Percentage
by product million of million of
types 1-9/2004 net sales 1-9/2003 net sales
One-time
license revenue 7.7 15.9% 9.4 16.4%
Recurring
license revenue 11.1 22.9% 12.3 21.4%
Services 29.6 61.2% 35.7 62.2%
Total 48.4 100.0% 57.4 100.0%
The emphasis of net sales was still on services, which constituted
EUR 29.6 (35.7) million or 61.2% (62.2%) of net sales. The services
include Dovre's project management consultancy and the consultancy,
training, implementation
and support services of Artemis' software solutions.
License sales amounted to EUR 18.8 (21.7) million, accounting for
38.8% (37.8%)
of net sales. The share of one-time licenses was EUR 7.7 (9.4)
million and that
of recurring licenses EUR 11.1 (12.3) million.
During the period under review, the Group's customers bought 35,000
(47,000)
new Artemis end-user licenses. The total number of Artemis licenses
sold worldwide is over 590,000. The number of licenses sold in the
first nine months
of 2004 is not fully comparable to the corresponding period in 2003
because now
license sales were focused on products with richer feature sets
than before.
Distribution of net sales by country:
1-9/2004 1-9/2003
EUR Percentage EUR Percentage
million of net sales million of net sales
Great Britain 4.5 9.3% 6.8 11.8%
Italy 4.3 8.9% 4.3 7.5%
Japan 3.0 6.2% 4.3 7.5%
Norway 16.4 33.7% 17.6 30.7%
France 4.6 9.6% 5.5 9.6%
Germany 2.3 4.8% 2.7 4.7%
Singapore 0.9 1.9% 0.7 1.2%
Finland 5.6 11.6% 5.6 9.8%
United States 6.8 14.0% 9.8 17.1%
Total 48.4 100.0% 57.4 100.0%
PROFITABILITY
Earnings before interest, taxes and amortization (EBITA) for the
nine months totaled EUR -4.6 (-3.5) million. The third quarter
earnings EBITA were
EUR -1.7 (-1.5) million
The Artemis subgroup's earnings (EBITA) were EUR -4.2 (-2.7)
million during January-September 2004 and EUR -1.5 (-1.2) million
during the third quarter of 2004. Cost-cuttings were continued
during the period. However, the realized
sales level did not enable reaching the set profitability targets.
Earnings (EBITA) of the Norwegian operations were EUR 0.6 (1.0)
million during the first nine months of 2004 and EUR 0.1 (0.1)
million during the third
quarter of 2004. The result of the Norwegian operations was as
expected.
The operating result (EBIT) of the Group was EUR -6.1 (-5.0)
million, amounting
to -12.6% (-8.7%) of net sales during January-September 2004.
The operating result for the period under review includes EUR 1.8
(0.7) million of non-recurring restructuring charges. The charges
include employment termination costs of EUR 1.2 (0.7) million and
other operating expenses of
EUR 0.6 (0.0) million. The third quarter restructuring charges were
EUR 0.6 million, which were caused by the closing of the Düsseldorf
offices in Germany. The German operations were concentrated in
Munich.
During the period under review the cost level of the Group business
operations before non-recurring items was approximately 15% lower
compared to the previous year. Compared to the second quarter of
2004 the cost level has declined by 13% due to reorganization
efforts.
During the period under review the result before appropriations,
taxes and extraordinary items was EUR -6.4 (-5.3) million. The net
result for the period was EUR -7.0 (-5.6) million.
Earnings per share amounted to EUR -0.11 (-0.11). Return on
investment (ROI)
was -32.8% (-22.4%) and return on equity (ROE) was -74.3% (-56.5%).
FINANCING AND INVESTMENTS
At the end of the first nine months of 2004, cash and cash
equivalents totaled EUR 7.3 million (10.4 million). The amount of
cash and cash equivalents
increased by EUR 0.2 million from December 31, 2003. In
the period, cash flow from operating activities was EUR -6.7
million, which was
mainly due to the unprofitable operations of Artemis.
In June 2004, the Proha Group's financial position was
strengthened, as its subsidiary Artemis acquired a total of USD 9
million through equity finance. In
a special issue, Artemis offered a group of investors led by the US
Emancipation
Capital LLP a total of 4,090,909 new shares of Artemis' preferred
stock, at USD 2.20 each, amounting to a value of USD 9 million.
With the transaction, Artemis'
working capital was increased and debt repaid. The transaction
strengthened the balance sheet of Artemis.
On September 30, 2004, interest-bearing liabilities amounted to EUR
9.7 (11.4)
million, accounting for 21.8 (23.4%) of the Group's capital and
reserves, provisions, and creditors total. Of the interest-bearing
liabilities,
EUR 4.1 (4.9) million were non-current liabilities and EUR 5.6
(6.5) million current liabilities.
The Group's Quick Ratio was 1.1 (1.1).
Capital expenditure was EUR 0.5 (0.7) million.
Total assets on September 30, 2004 were EUR 44.5 (49.1) million.
Equity to assets ratio was 32.1% (24.5%) and gearing 17.9% (9.2%).
STATEMENT ON THE ADEQUACY OF THE GROUP'S ASSETS
On September 30, 2004 the Group's cash and cash equivalents
amounted to EUR 7.3 (10.4) million. According to Proha's
management, this is sufficient to continue as a going concern.
RESEARCH AND DEVELOPMENT
The product development costs of strategic products were EUR 5.3
(6.1) million, representing 10.8% (10.7%) of the period's net
sales.
The development of Artemis 7 and solutions based on it has
continued intensively.
Safran has focused on the development of Safran for Microsoft
Project.
Research and development costs are expensed in the year they are
incurred. The product development costs of regionally developed
tactical products are also expensed in full.
The accounting treatment of product development costs is planned to
be changed to correspond to the IFRS principles and the decision
50/1998 of Finland's Ministry of Trade and Industry during the
financial year 2004. This would mean that part of the product
development costs that are now expensed would be capitalized and
amortized over their expected useful lives.
According to plan, the IFRS principles will be applied for the
first time in the financial statements for January 1 - December 31,
2004. However, in the interim reports for 2004 development costs
are expensed.
According to preliminary estimates the product development costs
capitalized for the whole financial year are estimated to be
approximately EUR 4 - 5 million.
The majority of the product development at Proha Group is done at
the Artemis subgroup. A study is being made on whether the Artemis’
product development costs meet the IFRS capitalization criteria.
Thus the amount of capitalized development costs may differ from
the above-presented preliminary estimate.
PERSONNEL
On September 30, 2004, the Proha Group employed 563 (623) people,
of whom
91 (94) worked in Finland and 472 (529) abroad. The average number
of personnel
in the period was 581 (646).
Staff costs amounted to EUR 38.1 (43.1) million, constituting 78.7%
(75.2%) of net sales. The staff costs for the first nine months of
2004 include charges
of EUR 1.2 (0.7) million caused by terminations of employment.
ADOPTION OF IFRS
Proha will publish its first IFRS Financial Statements for the
financial year ending December 31, 2005. As of 2005, the interim
reports will also be prepared in accordance with the IFRS
standards. The company will follow the recommendations of the
Committee of European Securities Regulators (CESR) to inform about
the implementation of the IFRS standards.
The company estimates that the main differences from the Group's
current accounting principles will pertain to the accounting
treatment of product development costs (IAS 38). Part of the
product development costs that were previously expensed will be
capitalized and amortized over their expected useful lives. In
addition, the implementation of the following IFRS standards may
have a significant impact on the financial statements: business
combinations (IFRS 3), impairment of assets (IAS 36), employee
benefits (IAS 19), income taxes (IAS 12) and share-based payment
(IFRS 2).
In Proha's current accounting principles, research and development
costs are expensed in the year they are incurred. The accounting
treatment of product development costs is planned to be changed to
correspond to the IFRS principles during the financial year 2004.
According to plan, the IFRS principles will be applied for the
first time in the financial statements for
January 1 - December 31, 2004. The majority of the product
development at Proha Group is done at the Artemis subgroup.
A study is being made on whether the Artemis’ product development
costs meet the IFRS capitalization criteria.
GROUP STRUCTURE
The essential parts of the Proha Group's business operations are
the Artemis subgroup, and the Norwegian operations that are
represented by Safran Software Solutions AS and Dovre International
AS. After the transactions conducted during the second quarter of
2004, Proha now owns approximately 57% of Artemis and 100% of the
operations in Norway.
Artemis acquired a total of USD 9 million through equity finance
The subgroup Artemis' financial position was strengthened by a
transaction implemented in the US, as Proha's subsidiary Artemis
International Solutions Corporation (Artemis) acquired a total of
USD 9 million through equity finance. After the transaction, the
preferred shares issued constitute 29% of all
Artemis' shares. The issue reduced Proha's ownership of Artemis
from 80% to 57%. The transaction also increased the Proha Group's
capital and reserves (share premium account) by EUR 7.4 million, as
the minority share has not been separated from the subgroup Artemis
because of the subgroup's accumulated losses.
In a special issue, a group of investors led by Emancipation
Capital LLP was granted Artemis' preferred shares that do not
entitle the shareholder to a dividend but take priority over common
shares in the creditors' order of priority. Also, the approval of
the majority of shareholders who own
preferred shares is required for certain decisions that affect
Artemis' group structure. Each preferred share is convertible into
one Artemis common share.
In addition to Emancipation Capital, the investors include Potomac
Capital and Trilogy Software Corporation, whose founder and CEO
Joseph Liemandt has become a member of Artemis' Board of Directors.
Members of the AISC Board of Directors are:
Steven Yager (Chairman), Amos Barzilay, Pekka Halonen, Ari
Horowitz, Joseph Liemandt, Michael Murphy, Pekka Mäkelä, Pekka
Pere, Bengt-Åke Älgevik, and
Olof Ödman.
Dovre to Proha's full ownership
The Proha Group's share in the Norwegian Dovre International AS
grew to 100%. Proha used its option and acquired the remaining 60%
of Dovre. Prior to this,
the Proha Group owned 40% of Dovre through its fully-owned
Norwegian subsidiary Safran Software Solutions AS. The transaction
was conducted as a share exchange, in which the shareholders of
Dovre International AS received a total of
7,850,000 new Proha Plc shares, amounting to approximately 12.8% of
Proha's
share capital after the increase in the share capital. Based on
Proha's control
over Dovre as determined in the shareholder agreement, Dovre has
already been consolidated as a subsidiary of the Proha Group.
The total subscription price of the shares given to the
shareholders of Dovre,
was EUR 3.9 million. The share premium created by the transaction
was EUR 1.9 million.
Members of the Dovre International AS Board of Directors are:
Birger Flaa (Chairman), Olof Ödman, Pekka Pere, Steinar Dalva, and
Finn Olav Mjærum.
PROHA'S ANNUAL GENERAL MEETING HELD ON APRIL 14, 2004
The Annual General Meeting held on April 14, 2004 confirmed the
Financial Statements of 2003, discharged the CEO and the Board of
Directors from
liability and approved the Board of Directors' proposal according
to which no dividend is paid and the result for the financial year
is entered in
profit/loss brought forward.
The following five members were elected to the Board of Directors
of
Proha Plc: Olof Ödman, Pekka Pere, Alec Gores, Carlo Boldi, and
Pekka Mäkelä.
The Board of Directors decided that the members of the Board, who
are not employed by the Proha Group or the Gores Technology Group,
are paid a fee of
EUR 18,000 per year each.
Ernst & Young Oy was elected to continue as the company's auditor,
with Ulla Nykky, APA, as the auditor in charge.
Stock option issue
The Annual General Meeting approved the Board of Directors'
proposal to issue a
maximum of 850,000 stock options. However, in line with the
proposal of the elected Board members, the Annual General Meeting
did not give stock options to
the Board members or the CEO. In a Board meeting on April 14, 2004,
the Board also decided not to give any stock options.
Authorization to increase the share capital
The Annual General Meeting authorized the Board of Directors to
increase the company's share capital through an issue of new
shares, stock options, option warrants and/or convertible bonds
deviating from the shareholders pre-emptive subscription rights.
Pursuant to this authorization, the aggregate maximum
number of new shares to be issued or offered for subscription
pursuant to stock
options, option warrants and/or convertible bonds shall not exceed
10,673,454 with a book value of EUR 0.26 each, and the share
capital of the company may be
increased by no more than EUR 2,775,098.04. At the time, this
represented 20 per cent of the registered share capital and of the
votes that can be cast in the General Meeting of Shareholders. This
authorization is valid for a period of
one year from the date of the Annual General Meeting. The General
Meeting
decided that the authorization given to the Board by the Annual
General Meeting
on April 24, 2003 ends immediately.
SHARE CAPITAL AND AUTHORIZATIONS TO ISSUE SHARES
Proha Plc has one class of shares. The book value of the shares is
EUR 0.26 per share. Each share entitles the shareholder to one
vote. Proha Plc shares are traded on the NM list of the Helsinki
Stock Exchange.
On September 30, 2004, the subscribed capital of Proha Plc was
EUR 15,916,490.20 and the total number of shares was 61.217.270.
A total of 500 Proha Plc shares were subscribed for with stock
options. Of the subscriptions a total of 375 shares were subscribed
for with stock options A of 2002 and 125 shares with stock options
B of 2002. The Option Plan was approved
by the Extraordinary General Meeting on December 17, 2001.
The increase in Proha's share capital was entered into Trade
Register on
October 11, 2004. After the registration, the share capital of
Proha Plc is
EUR 15.916.620,20 and the number of shares is 61.217.770.
A total of 2,823,454 shares corresponding to EUR 734,098.04 in
share capital remain unused of the authorization.
CONVERTIBLE LOAN
In December 20, 2002, Proha issued a convertible loan that was
offered for subscription to professional investors. A total of EUR
2,810,000 of the loan
was subscribed. The fixed interest rate of the loan is 6.00% p.a.
The loan can
be converted into a maximum of 4,496,000 new shares. The conversion
begun on February 19, 2003 and will terminate two banking days
before the loan matures
on December 30, 2007.
TRADING ON THE HELSINKI STOCK EXCHANGE
The number of registered shareholders of Proha Plc totaled 4,314 on
September
30, 2004. During the period January 1 - September 30, 2004, the
share price was EUR 0.44 at its lowest and EUR 1.15 at its highest.
The closing price on September 30, 2004 was EUR 0.53. Market
capitalization was approximately
EUR 32.4 million at the end of the period. The trading volume of
the Proha
share on the NM list of the Helsinki Stock Exchange was
approximately
EUR 10.1 million during the nine months in 2004.
CORPORATE GOVERNANCE
Proha Plc follows the recommendations of the Helsinki Stock
Exchange, the
Central Chamber of Commerce and the Confederation of Finnish
Industries and Employers regarding the corporate governance of
publicly held companies. Proha deviates from the recommendation in
two respects. 1) Of the five members of the
Proha Board of Directors two are currently independent of the
company and one
of them is also independent of any significant owners. 2) A share-
based bonus system may also be applied to those members of the
Board, who do not have an employment relationship with the company.
Proha's corporate governance
principles can be found on the company's website at www.proha.com.
EVENTS AFTER THE PERIOD
Notice Of Annual Meeting Of Artemis International Solutions
Corporation Stockholders
Proha Plc subsidiary Artemis International Solutions Corporation
(AISC) called
the Annual Meeting of Stockholders to be held on November 30, 2004.
The AISC Annual Meeting will consider the following matters:
Election of Directors, amendment of the Certificate of
Incorporation, stock option plans and ratification of the selection
of independent accountants.
PROSPECTS FOR THE NEAR FUTURE
The Group's main focus remains in improving profitability. The net
sales of
2004 are expected to be below the previous year. Following the
reorganization
efforts the lower cost level will allow the fourth quarter earnings
(EBITA)
turn positive.
PUBLICATION OF ARTEMIS' RESULT FOR THE SECOND QUARTER
The Artemis subgroup published its Quarterly Report on November 10,
2004.
The Quarterly Report (FORM 10-Q) is available on the SEC website at
www.sec.gov/edgar/searchedgar/companysearch.html under the name
Artemis International.
PRESS CONFERENCE
Proha Plc will hold a press conference for the media and financial
analysts on November 11, 2004 at 12.00 a.m., at Marskin Sali
cabinet,
World Trade Center, address Aleksanterinkatu 17, Helsinki.
For more information please contact:
PROHA PLC
CEO Pekka Pere, tel. +358-(0)20 4362 000
pekka.pere@proha.com
www.proha.com
DISTRIBUTION:
Helsinki Stock Exchange
Major Media
PROHA GROUP CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET
JANUARY 1-SEPTEMBER 30, 2004
The figures in this interim report are unaudited.
INCOME STATEMENT 1/04-9/04 1/03-9/03 1/03-12/03
(EUR (EUR (EUR
1000) 1000) 1000)
Net sales 48 394 57 371 76 792
Share of associated companies' 84 -18 5
results
Other operating income 614 545 1 031
Materials and services -3 551 -4 936 -6 188
Staff costs -38 097 -43 131 -56 782
Depreciation, amortization and
value adjustments
Depreciation according to -461 -861 -1 133
plan
Amortization of goodwill on -1 503 -1 458 -1 982
consolidation
Change in consolidation 14 27 36
reserve
Depreciation, amortization and -1 950 -2 292 -3 079
value adjustments total
Other operating expenses -11 574 -12 515 -17 766
Operating profit/loss -6 080 -4 975 -5 988
Financial income and expense -320 -284 141
Profit/loss before -6 400 -5 259 -5 847
extraordinary items,
appropriations and taxes
Income taxes -414 -797 -978
Change in deferred tax -51 -78
liabilities
Profit/loss before minority -6 814 -6 108 -6 902
interest
Minority interest -199 489 715
Profit/loss for the financial -7 013 -5 619 -6 187
year
BALANCE SHEET
ASSETS
Non-current assets
Intangible assets 362 600 463
Goodwill on consolidation 13 404 12 945 12 420
Tangible assets 989 1 483 997
Investments 1 393 1 966 2 114
Non-current assets total 16 148 16 994 15 995
Current assets
Non-current receivables 923 490 448
Current receivables 20 105 21 276 21 120
Marketable securities 0 83 80
Cash and cash equivalents 7 287 10 283 7 058
Current assets total 28 315 32 131 28 706
ASSETS TOTAL 44 463 49 126 44 701
LIABILITIES
Capital and reserves
Subscribed capital 15 920 13 875 13 875
Share premium account 12 249 4 461 2 964
Profit/loss brought forward -7 673 -2 623 -796
Profit/loss for the -7 013 -5 619 -6 187
financial year
Capital loan 0 187 0
Capital and reserves total 13 482 10 281 9 857
Minority interest 51 1 356 1 081
Consolidation reserve 0 263 254
Provisions 231 974 88
Creditors
Non-current creditors 4 393 5 157 4 317
Current creditors 26 305 31 095 29 104
Creditors total 30 698 36 252 33 421
LIABILITIES TOTAL 44 463 49 126 44 701
KEY RATIOS OF THE PROHA GROUP 1/04-9/04 1/03-9/03 1/03-12/03
Net sales (EUR 1000) 48 394 57 371 76 792
EBITDA* -4 130 -2 684 -2 909
% of net sales -8,5% -4,7% -3,8%
EBITA** -4 591 -3 544 -4 042
% of net sales -9,5% -6,2% -5,3%
EBIT*** -6 080 -4 975 -5 988
% of net sales -12,6% -8,7% -7,8%
Profit/loss before -6 400 -5 259 -5 847
extraordinary items,
appropriations and taxes
% of net sales -13,2% -9,2% -7,6%
Net profit/loss for the -7 013 -5 619 -6 187
financial year
% of net sales -14,5% -9,8% -8,1%
* Earnings before interest,
taxes, depreciation and
goodwill amortization
** Earnings before interest,
taxes and goodwill
amortization
*** Earnings before interest
and taxes
Research and development 5 232 6 112 7 920
costs, EUR 1000
% of net sales 10,8% 10,7% 10,3%
Personnel at the end of the 563 623 619
financial year
Average personnel 581 646 642
1) Weighted number of shares 61 217 270 52 361 775 52 615 215
1) Earnings per share, EUR -0,11 -0,11 -0,12
2) Weighted number of shares 61 493 093 52 726 337 53 128 712
diluted by stock options
2) Earnings per share, EUR *) *) *)
*) The key ratio Earnings per
share, adjusted by the
dilution effect, is not
presented because it would be
better than the undiluted
figure
3) Number of shares at the end 61 217 53 367 53 367
of the financial year 270 270 270
3) Equity per share, EUR 0,22 0,19 0,18
Net sales by country 1/04-9/04 1/03-9/03 1/03-
12/03
Great Britain 9.3% 11.8% 11.5%
Italy 8.9% 7.5% 7.8%
Japan 6.2% 7.5% 7.1%
Norway 33.7% 30.7% 30.5%
France 9.6% 9.6% 9.5%
Germany 4.8% 4.7% 4.4%
Singapore 1.9% 1.2% 0%
Finland 11.6% 9.8% 9.9%
United States 14.0% 17.1% 18.0%
Other 0% 0% 1.3%
Total 100.0% 100.0% 100.0%
Net sales by product type 1/04-9/04 1/03-9/03 1/03-
12/03
One-time license revenue 15.9% 16.4% 16.1%
Recurring license revenue 22.9% 21.4% 20.7%
Services 61.2% 62.2% 63.2%
Total 100.0% 100.0% 100.0%
CASH FLOW STATEMENT 1.1.- 1.1.-
30.9.2004 31.12.2003
Cash flow from operating
activities
Operating profit/loss -6 080 -5 988
Adjustments
Depreciation, amortization 1 950 3 079
and value adjustments
Profits and losses on sale -149 -121
of fixed assets and shares
Other adjustments 58 -385
Change in net working -1 674 -363
capital
Financial income and -446 236
expense, net
Income taxes -352 -748
Cash flow from operating -6 694 -4 290
activities
Cash flow from investing
activities
Investments in tangible and -351 -493
intangible assets
Cash flow from acquisition -3 0
of subsidiaries and associated
companies
Cash flow from disposal of 121 150
subsidiaries and associated
companies
Other received cash flows 397 63
Cash flow from investing 164 -280
activities
Cash flow from financing
activities
Share issue 7 404 938
Proceeds from short-term 4 461 5 379
loans
Repayments of short-term -2 289 -5 972
loans
Proceeds from long-term 224 151
loans
Repayments of long-term -148 -1 030
loans
Repayments of capital loans 0 -102
Increase in long-term -2 500 0
receivables
Dividends paid -393 -401
Cash flow from financing 6 759 -1 037
activities
Change in cash and cash 230 -5 608
equivalents
Cash and cash equivalents -7 058 -12 666
Jan.1
Cash and cash equivalents 7 288 7 058
Sept. 30
Change in cash and cash 230 -5 608
equivalents
INCOME STATEMENT
Q3/2004 Q2/2004 Q1/2004 Q4/2003 Q3/2003 Q2/2003 Q1/2003
Net Sales 14 487 17 020 16 887 19 420 17 156 18 080 22 135
Share of 45 11 28 23 -33 13 3
associated
companies'
results
Other operating 158 432 23 486 162 106 277
income
Materials and -846 -1 304 -1 401 -1 252 -1 385 -1 513 -2 037
services
Staff costs -11 761 -13 074 -13 262 -13 651 -13 574 -14 320 -15 237
Depreciation,
amortization and
value adjustments
Depreciation -158 -148 -155 -273 -317 -278 -266
according to
plan
Amortization -536 -498 -469 -524 -483 -480 -495
of
goodwill on
consolidation
Change in 0 -9 22 9 9 9 9
Consolidation
reserve
Depreciation, -694 -654 -601 -787 -791 -749 -752
amortization and
value adjustments
total
Other operating -3 585 -3 773 -4 216 -5 251 -3 542 -4 652 -4 321
expenses
Operating -2 197 -1 341 -2 543 -1 013 -2 007 -3 035 67
profit/loss
Financial income -289 -192 161 425 58 37 -379
and expense
Profit/loss -2 486 -1 533 -2 382 -588 -1 948 -2 998 -313
before
extraordinary
items,
appropriations
and taxes
Income taxes 15 -93 -337 -180 -298 -353 -146
Change in 0 0 0 -26 -25 -13 -13
deferred tax
liabilities
Profit/loss -2 470 -1 626 -2 718 -795 -2 271 -3 364 -472
before minority
interest
Minority interest -195 177 -181 226 302 403 -216
Net profit/loss -2 665 -1 448 -2 899 -569 -1 970 -2 961 -688
for the period
EBITA -1 661 -834 -2 096 -498 -1 533 -2 564 553
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