Proha Plc Stock Exchange Bulletin March 3, 2005 at 9.00 a.m.
PROHA PLC FINANCIAL STATEMENTS JANUARY 1 - DECEMBER 31, 2004
- The fourth quarter result of Proha improved in 2004 as anticipated.
- The Proha Group's net sales for the period January 1 - December 31, 2004
were EUR 65.7 million (EUR 76.8 million for January 1 - December 31, 2003).
- Earnings before interest, taxes and amortization (EBITA) excluding
non-recurring restructuring charges was EUR -2.7 (-3.0) million and
including restructuring charges EUR -4.5 (EUR -4.0) million
- The result for the period under review includes EUR 1.8 (1.0)
million of Artemis non-recurring restructuring charges.
- In the fourth quarter net sales were EUR 17.3 (EUR 19.4) million
and result (EBITA) EUR 0.1 (-0.5) million.
- In Proha s 2004 year-end financial statement and quarterly reports made
according to the Finnish Accounting Standards (FAS) the software
development costs EUR 6.8 million total have been expensed during the
year they incurred.
- Later today Proha will publish a separate release on Proha's preliminary
comparative IFRS-data for 2004. The preliminary operating profit
under IFRS principles for 2004 was EUR 2.1 million positive and
preliminary net result for 2004 was EUR 1.1 million positive.
- The sales of Artemis 7 portfolio and project management solution
for investment planning and control continued its significant
growth, accounting for almost half of all new license revenue.
- The balance sheet of the Group was strengthened in the second
quarter, as Norwegian Dovre became Proha's fully-owned, and Proha's
subgroup Artemis raised 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. Consequently
number of Proha personnel came down by 94 persons (approx. 18%).
- The Norwegian operations were profitable and both the net sales
and result developed as expected.
- The lower cost level of Proha Group gives a positive starting point for
the year 2005. Proha management anticipates growth in net sales and
the operating profit to be positive.
BUSINESS PERFORMANCE
In line with its strategy, Proha focuses on the international
investment planning and control software and service business.
Proha is a world leader in enterprise-level project and portfolio
management solutions.
The Proha Group includes the subgroup Artemis, which accounts for
approximately 63.7% (66.9% in 2003) of the net sales of the Group,
and project management operations in Norway, which mainly serve the
oil and gas sector and represent approximately 34.0% (30.5%) of the
2004 net sales of the Group.
The growth of the software markets is about to start after the
decline the markets experienced at the turn of the millennium. In
2004 the growth has still been very modest from historical
perspective with growing emphasis on services, also the investments
in new enterprise level systems did not start as anticipated.
In the software industry in general the emphasis continued to shift
towards services and recurring license revenues. Proportionately
measured the non-recurring licence revenue of system providers
continued to decline. Contrary to this trend, the license sales of
new generation Artemis web-based solutions improved significantly.
The sales of the new generation Artemis 7 solutions with higher
unit prices developed favorably. Sales of Artemis 7 licenses
accounted nearly half of all new Artemis license sales in 2004.
The total number of new Artemis licenses sold during the period
was 50,000 (59,000).
Patrick Ternier was appointed as new President and CEO of the
Artemis subgroup as of January 23, 2004. Patrick Ternier has a 20-
year experience in the international software business. He was the
managing director and largest shareholder of both Artemis Germany
and Artemis France prior to them becoming part of Proha Group in
December 2000.
The reorganization of operations at Artemis continued in 2004. The
non-recurring restructuring charges for the financial year were at
Artemis EUR 1.8 (0.9) million.
The customers use solutions based on Artemis 7 software e.g. for
investment planning and control (IP&C), IT management (ITM), public
investment management (PIM) and new product development (NPD) as
well as for strategic asset management (SAO). The development of
these solutions that support business processes progressed as
planned and is continuing.
The Norwegian operations developed as anticipated and the krone-
denominated business volume remained steady compared to 2003 while
the euro-denominated net sales fell due to currency fluctuations.
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. For its part the agreement secures
business volume for Dovre for several years ahead. During 2004,
Dovre focused on the development of its international business and
on growing its service business directed for the public
infrastructure investments. Proha's other Norwegian subsidiary
Safran Software Solutions AS focused on the development of a
distribution channel for Safran for Microsoft Project.
NET SALES
The Proha Group's net sales in 2004 were EUR 65.7 million (76.8
million in 2003), which is 14% less than the previous year.
During 2004, 66% of the Group's net sales originated from outside
the euro zone. The continued appreciation of euro reduced the euro-
denominated net sales for the period by EUR 2.3 million compared to
2003.
The net sales of the Artemis subgroup totaled EUR 41.9 (51.4)
million and accounted for 63.7% (66.9%) of the Group's net sales.
The net sales of the Norwegian operations totaled EUR 22.6 (23.4)
million and accounted for 34% (30.5%) of the Group's net sales.
The net sales of the fourth quarter amounted to EUR 17.3 (19.4)
million. The net sales of the Artemis subgroup were EUR 11.1 (13.0)
million and the net sales of the Norwegian operations were EUR 6.0
(5.8) million.
Distribution of net sales by product type:
Net sales EUR Percentage EUR Percentage
by product million of million of
types 1-12/2004 net sales 1-12/2003 net sales
One-time
license revenue 11.1 17.0% 12.4 16.1%
Recurring
license revenue 14.9 22.6% 15.9 20.7%
Services 39.7 60.4% 48.5 63.2%
Total 65.7 100.0% 76.8 100.0%
The emphasis of net sales was still on services, which constituted
EUR 39.7 (48.5) million or 60.4% (63.2%) 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 26.0 (28.3) million, accounting for
39.6% (36.8%) of net sales. The share of one-time licenses was EUR
11.1 (12.4) million and that of recurring licenses EUR 14.9 (15.9) million.
During the period under review, the Group's customers bought 50,000
(59.000) new Artemis end-user licenses. The total number of Artemis
licenses sold worldwide is over 600,000. The number of licenses sold in
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:
1-12/2004 1-12/2003
EUR Percentage EUR Percentage
million of net sales million of net sales
Great Britain 5.8 8.8% 8.8 11.5%
Italy 6.0 9.1% 6.0 7.8%
Japan 4.1 6.3% 5.5 7.1%
Norway 22.4 34.0% 23.4 30.5%
France 6.6 10.0% 7.3 9.5%
Germany 2.8 4.3% 3.3 4.4%
Singapore 1.1 1.7% 1.1 1.3%
Finland 7.2 11.0% 7.6 9.9%
United States 9.7 14.8% 13.8 18.0%
Total 65.7 100.0% 76.8 100.0%
PROFITABILITY
Earnings before interest, taxes and amortization (EBITA) for 2004
totaled EUR -4.5 (-4.0) million.
The Artemis subgroup's earnings (EBITA) were EUR -4.2 (-5.0)
million in 2004. Cost-cuttings were continued during 2004.
Earnings (EBITA) of the Norwegian operations were EUR 0.9 (1.2)
million in 2004. The result of the Norwegian operations was as
expected.
The operating profit (EBIT) of the Group was EUR -6.5 (-6.0)
million, amounting to -9.9% (-7.8%) of net sales in 2004.
The operating result for 2004 includes EUR 1.8 (1.0) million of non-
recurring restructuring charges. The charges include employment
termination costs of EUR 1.4 (0.7) million and other operating
expenses of EUR 0.4 (0.3) million.
In 2004 the cost level of the Group business operations before non-
recurring items was approximately 15% lower compared to the
previous year. In the fourth quarter 2004 the level of operating
expenses was nearly EUR 3 million lower than in the corresponding
period in 2003.
In 2004 the result before appropriations, taxes and
extraordinary items was EUR -6.6 (-5.8) million. The net result for
the period was EUR -7.5 (-6.2) million.
Earnings per share amounted to EUR -0.13 (-0.12). Return on
investment (ROI) was -26.1% (-19.1%) and return on equity (ROE)
was -60.2% (-48.8%).
CASH FLOW, FINANCING AND INVESTMENTS
At the end of 2004, cash and cash equivalents totaled EUR 5.1
million (7.1 million). The amount of cash and cash equivalents
decreased by EUR 2.0 million from December 31, 2003. In 2004, cash
flow from operating activities was EUR -7.7 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 raised a total of USD 9
million through equity finance. In a special issue, Artemis offered
a group of US investors led by 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 December 31, 2004, interest-bearing liabilities amounted to
EUR 8.9 (7.7) million, accounting for 20.4% (17.4%) of the Group's
capital and reserves, provisions, and creditors total. Of the
interest-bearing liabilities, EUR 4.7 (4.3) million were non-current
liabilities and EUR 4.2 (3.4) million current liabilities.
The Group's Quick Ratio was 1.1 (1.1).
In 2004 the capital expenditures were: EUR 0.4 (0.3) million in
tangible assets and 3.2 (0.0) in goodwill.
Total assets on December 31, 2004 were EUR 43.6 (44.7) million.
Equity to assets ratio was 30.1% (26.1%) and gearing 29.2% (5.3%).
STATEMENT ON THE ADEQUACY OF THE COMPANY'S ASSETS
On December 31, 2004 the Group's cash and cash equivalents amounted
to EUR 5.1 (7.1) million. According to Proha's management, the
liquid assets of the company are sufficient for Proha to continue
as a going concern during the following 12 months.
RESEARCH AND DEVELOPMENT
The product development costs of strategic products were EUR 6.8
(7.9) million, representing 10.4% (10.3%) of the period's net
sales.
The development of Artemis 7 and solutions based on it continued
intensively. Safran has focused on the development of Safran for Microsoft
Project.
In both the FAS (Finnish Accounting Standards) year-end financial
statement and quarterly reports for 2004, the software development
costs have not been capitalized. All software development costs
including strategic and regionally developed tactical products have
been recognised as an expense in the year they incurred.
The IFRS accounting principles differ significantly from the
accounting principles applied on Proha's year-end financial
statement and quarterly reports in 2004. Proha's preliminary
comparative IFRS-data for 2004 are presented in a separate bulletin
today.
PERSONNEL
In 2004, the average number of Group personnel was 569 (642 in
2003). On December 31, 2004 the Proha Group employed 525 (619) people
worldwide, of whom 84 (108) worked in Finland and 441 (511) abroad.
The number of Proha personnel declined by 94 people in 2004.
Staff costs amounted to EUR 50.4 (56.8 in 2003) million,
constituting 76.7% (73.9%) of net sales. The staff costs for 2004
include charges of EUR 1.4 (0.7) million caused by terminations of
employment.
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's ownership was approximately 57% of Artemis and 100%
of the operations in Norway.
Artemis raised a total of USD 9 million through equity finance
In June 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 USD 9.0 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.
Dovre to Proha's full ownership
The Proha Group's share in the Norwegian Dovre International AS
grew to 100% in the second quarter. 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.
Proha divested non-core operations
In accordance with Proha strategy to focus on project and portfolio
management software and services, Proha divested non-core
operations in 2004. In October 2004, Proha sold its 30% minority
share of accounting company, Tilitoimisto A. Karppinen Oy and its
50% share of Jive Solutions Oy. In October 2004 Proha's ownership
of Procountor International Oy decreased to 19.9% from 63.3% after
Proha declined subscription of Procountor shares in an issue of
shares.
The divestments do not have a material impact on either Proha-
Group s net sales or operative result.
ADOPTION OF IFRS
Proha will publish its first IFRS (International Financial
Reporting Standards) Financial Statements for the financial year
ending December 31, 2005. In 2005, the interim reports will be
prepared in accordance with the IAS 34.
The release, published separately today, presents the preliminary
opening IFRS balance sheet and preliminary reconciliation of
shareholders' equity as per January 1, 2004, as well as the
preliminary comparative IFRS data of the group income statement and
balance sheet for the full year and quarters in 2004.
Compared to Proha s currently applied accounting principles
Adoption of IFRS has to most significant impact on capitalization
of software development costs (IAS 38), treatment of goodwill and
business combinations (IFRS 3) and share based payments (IFRS 2).
Also the partial disposal of Artemis International Solutions
Corporation (AISC) has a material effect on the Proha Group s
result for 2004 when treated according to IFRS. According to the
IFRS 1 exemption the IFRS 3 standard is not applied on acquisitions
made prior the effective date of January 1, 2004.
Later today Proha will publish a separate release on Proha s preliminary
comparative IFRS-data for 2004. The preliminary operating profit
under IFRS principles for 2004 was EUR 2.1 million positive and
preliminary net result for 2004 was EUR 1.1 million positive.
PROHA BOARD AND AUDITORS
On April 14, 2004 the Annual General Meeting of Proha elected Carlo
Boldi as the new member of the Board of Directors. Olof Ödman
(Chairman), Pekka Pere, Alec Gores, and Pekka Mäkelä were re-
elected.
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.
PROHA'S ANNUAL GENERAL MEETING HELD ON APRIL 14, 2004
The Annual General Meeting authorized the Board of Directors to
increase the company's share capital. 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.
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.
The Annual General Meeting confirmed the Financial Statements of
2003, discharged the CEO and the Board of Directors from liability.
The Annual General Meeting 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.
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 only two are currently independent of the company and
only 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.
ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION
In 2004 Artemis subgroup acquired a total of USD 9 million through
equity finance. After the transaction, Proha's ownership of the US
based Artemis International Solutions Corporation (AISC) was
reduced from 80% to 57%.
Patrick Ternier was appointed as new President and CEO of the
Artemis subgroup as of January 23, 2004.
The Annual Stockholders Meeting of AISC
On November 30, 2004 the Annual Stockholders Meeting of Artemis
International Solutions Corporation, the US subsidiary of Proha
Plc, altered the composition of Board of Directors in accordance
with the proposal of Artemis' Board. The new Board of Directors
consists of the newly elected director David Cairns and continuing
directors Joseph Liemandt, Michael Murphy, Olof Ödman, Steven
Yager, Bengt-Åke Älgevik and Pekka Pere. Majority of the Members of
the Board are considered independent (Cairns, Liemandt, Murphy and
Ödman) and thus the Board of Directors now meets the independence
standards set forth in the rules and regulations promulgated by the
NASDAQ Stock Market.
AISC audit
Squar Milner Reehl & Williamson LLP are the certifying accountant
of AISC. The audit of AISC s financial statements prepared in
accordance with the US GAAP, and the preparations of the necessary
SEC reports, have not yet been completed for the financial year
ending on December 31, 200. Ernst & Young Oy with Ulla Nykky, APA,
as the auditor in charge are responsible for the Proha audit.
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 January 1, 2004, the subscribed capital of Proha Plc was EUR
13,875,490.20 and the total number of shares was 53,367,270.
In the transaction with the Norwegian Dovre International AS a
total of 7,850,000 new Proha shares were subscribed. The increase
in share capital was entered into the trade register on July 1,
2004
A total of 500 Proha Plc shares were subscribed for with stock
options in 2004. 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.
On December 31, 2004 the subscribed capital of Proha Plc was EUR
15,916,620.20 and the total number of shares was 61.217.770.
The Board of Directors has an authorization given by the Annual
General Meeting on April 14, 2004 to decide on the increase of the
company's share capital.
A total of 2,823,454 shares corresponding to EUR 734,098.04 in
share capital remain unused of the authorization.
TRADING ON THE HELSINKI STOCK EXCHANGE
The number of registered shareholders of Proha Plc totaled 3,913 on
December 30, 2004. During the period January 1 - December 30, 2004,
the share price was EUR 0.44 at its lowest and EUR 1.15 at its highest.
The closing price on December 30, 2004 was EUR 0.45. Market
capitalization was approximately EUR 27.5 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 12.1 million in 2004.
EVENTS AFTER THE PERIOD
Proha s ownership of Artemis has fallen to approx. 55% due to
exercise of certain warrants.
PROSPECTS FOR THE NEAR FUTURE
The lower cost level of Proha Group gives a positive starting point for
the year 2005. Proha management anticipates growth in net sales and
the operating profit to be positive.
PUBLICATION OF ARTEMIS' RESULT FOR THE FINANCIAL YEAR 2004
The Artemis subgroup published its Report for fourth quarter and
fiscal year ended December 31, 2004 on March 2, 2005.
The Report for fourth quarter and fiscal year ended December 31,
2004 (FORM 8-K) 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 March 3, 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
The figures in this annual report are unaudited.
PROHA GROUP CONSOLIDATED INCOME STATEMENT AND BALANCE SHEET
JANUARY 1-DECEMBER 31, 2004
INCOME STATEMENT 1/04-12/04 1/03-12/03
(EUR 1000) (EUR 1000)
Net sales 65 714 76 792
Share of associated companies' results 80 5
Other operating income 783 1 031
Materials and services -4 608 -6 188
Staff costs -50 379 -56 782
Depreciation, amortization and value
adjustments
Depreciation according to plan -614 -1 133
Amortization of goodwill on consolidation -2 066 -1 982
Change in consolidation reserve 14 36
Depreciation, amortization and value -2 667 -3 079
adjustments total
Other operating expenses -15 432 -17 766
Operating profit/loss -6 508 -5 988
Financial income and expense -60 141
Profit/loss before extraordinary items, -6 569 -5 847
appropriations and taxes
Income taxes -719 -978
Change in deferred tax liabilities 35 -78
Profit/loss before minority interest -7 252 -6 902
Minority interest -212 715
Profit/loss for the financial year -7 464 -6 187
BALANCE SHEET Dec.31, Dec.31,
2004 2003
ASSETS (EUR 1000) (EUR 1000)
Non-current assets
Intangible assets 336 463
Goodwill on consolidation 13 227 12 420
Tangible assets 817 997
Investments 1 095 2 114
Non-current assets total 15 475 15 995
Current assets
Non-current receivables 1 081 448
Current receivables 21 966 21 120
Marketable securities 0 80
Cash and cash equivalents 5 069 7 058
Current assets total 28 116 28 706
ASSETS TOTAL 43 591 44 701
LIABILITIES
Capital and reserves
Subscribed capital 15 917 13 875
Share premium account 11 412 2 964
Profit/loss brought forward -6 794 -796
Profit/loss for the financial year -7 464 -6 187
Capital loan 0
Capital and reserves total 13 070 9 857
Minority interest 70 1 081
Consolidation reserve 0 254
Provisions 190 88
Creditors
Non-current creditors 4 980 4 317
Current creditors 25 280 29 104
Creditors total 30 260 33 421
LIABILITIES TOTAL 43 591 44 701
KEY RATIOS OF THE PROHA GROUP 1/04-12/04 1/03-12/03
Net sales (EUR 1000) 65 714 76 792
EBITDA* -3 842 -2 909
% of net sales -5.8 % -3.8 %
EBITA** -4 456 -4 042
% of net sales -6.8 % -5.3 %
EBIT*** -6 508 -5 988
% of net sales -9.9 % -7.8 %
Profit/loss before extraordinary items, -6 569 -5 847
appropriations and taxes
% of net sales -10.0 % -7.6 %
Profit/loss for the financial year -7 464 -6 187
% of net sales -11.4 % -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 costs, EUR 1000 6 810 7 920
% of net sales 10.4 % 10.3 %
Personnel at the end of the financial year 525 619
Average personnel 569 642
1) Weighted number of shares 57 313 830 52 615 215
1) Earnings per share, EUR -0.13 -0.12
2) Weighted number of shares diluted by 58 473 243 53 128 712
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 of the 61 217 770 53 367 270
financial year
3) Equity per share, EUR 0.21 0.18
Net sales by country 1/04-12/04 1/03-12/03
Great Britain 8.8 % 11.5 %
Italy 9.1 % 7.8 %
Japan 6.3 % 7.1 %
Norway 34.0 % 30.5 %
France 10.0 % 9.5 %
Germany 4.3 % 4.4 %
Singapore 1.7 % 1.3 %
Finland 11.0 % 9.9 %
United States 14.8 % 18.0 %
Total 100.0 % 100.0 %
Net sales by product type 1/04-12/04 1/03-12/03
One-time license revenue 17 % 16 %
Recurring license revenue 23 % 21 %
Services 60 % 63 %
Total 100 % 100 %
CASH FLOW STATEMENT 1.1.- 1.1.-
31.12.2004 31.12.2003
Cash flow from operating activities
Operating profit/loss -6 508 -5 988
Adjustments
Depreciation, amortization and value
adjustments 2 680 3 079
Profits and losses on sale of fixed
assets and shares -351 -121
Other adjustments -5 -385
Change in net working capital -2 570 -363
Financial income and expense, net 230 236
Income taxes -1 203 -748
Cash flow from operating activities -7 727 -4 290
Cash flow from investing activities
Investments in tangible and
intangible assets -306 -493
Cash flow from disposal of
subsidiaries and associated companies 0 150
Other received cash flows 420 63
Cash flow from investing activities 114 -280
Cash flow from financing activities
Share issue 6 564 938
Proceeds from short-term loans 4 847 5 379
Repayments of short-term loans -2 983 -5 972
Proceeds from long-term loans 223 151
Repayments of long-term loans -134 -1 030
Repayments of capital loans 0 -102
Increase/decrease in long-term
receivables -2 500
Dividends paid -393 -401
Cash flow from financing activities 5 624 -1 037
Change in cash and cash equivalents -1 989 -5 608
Cash and cash equivalents Jan.1 -7 058 -12 666
Cash and cash equivalents Dec.31 5 069 7 058
Change in cash and cash equivalents -1 989 -5 608
INCOME STATEMENT
(Million euros)
2004 2003
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Net Sales 17.3 14.5 17.0 16.9 19.4 17.2 18.1 22.1
Other operating 0.2 0.2 0.4 0.0 0.5 0.2 0.1 0.3
income
Materials and -1.1 -0.8 -1.3 -1.4 -1.3 -1.4 -1.5 -2.0
services
Staff costs -12.3 -11.8 -13.1 -13.3 -13.7 -13.6 -14.3 -15.2
Depreciation,
amortization
and value
adjustments
Depreciation
according to plan -0.2 -0.2 -0.1 -0.2 -0.3 -0.3 -0.3 -0.3
Amortization of
goodwill on
consolidation -0.6 -0.5 -0.5 -0.5 -0.5 -0.5 -0.5 -0.5
Depreciation,
amortization and
value
adjustments total -0.7 -0.7 -0.7 -0.6 -0.8 -0.8 -0.7 -0.8
Other operating
expenses -3.9 -3.6 -3.8 -4.2 -5.3 -3.5 -4.7 -4.3
Operating
profit/loss -0.4 -2.2 -1.3 -2.5 -1.0 -2.0 -3.0 0.1
Financial income
and
expense 0.3 -0.3 -0.2 0.2 0.4 0.1 0.0 -0.4
Profit/loss before
extraordinary
items,
appropriations
and taxes -0.2 -2.5 -1.5 -2.4 -0.6 -1.9 -3.0 -0.3
Income taxes -0.3 0.0 -0.1 -0.3 -0.2 -0.3 -0.4 -0.1
Profit/loss before
minority interest -0.4 -2.5 -1.6 -2.7 -0.8 -2.3 -3.4 -0.5
Minority interest 0.0 -0.2 0.2 -0.2 0.2 0.3 0.4 -0.2
Profit/loss for the
period -0.5 -2.7 -1.4 -2.9 -0.6 -2.0 -3.0 -0.7
EBITA 0.1 -1.7 -0.8 -2.1 -0.5 -1.5 -2.6 0.6
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