DIGIA OYJ
HELSINKI, 2016-04-29 08:01 CEST (GLOBE NEWSWIRE) -- DIGIA PLC STOCK EXCHANGE
RELEASE 29 APRIL 2016 at 09:01
QT BUSINESS, FIRST QUARTER 2016
Digia Plc published its interim report for the first quarter of 2016 today. In
this stock exchange release, Digia Plc reports on the financial development of
the Qt business - that is, the company's discontinued operations - during the
first quarter of 2016.
SUMMARY:
- Net sales EUR 7.1 (6.3) million, up 14.3 per cent
- Operating profit EUR 0.3 (0.4) million, operating margin (EBIT%) 3.5 (6.9)
per cent
- Comparable operating profit EUR 0.5 (0.5) million, comparable operating
margin (EBIT%) 3.5 (7.4) per cent
- Comparable operating profit for 2015 included a total of EUR 0.04 million in
restructuring expenses and operating profit for 2016 includes a total of EUR
0.2 million in expenses due to demerger-related fees paid to external service
providers.
KEY FIGURES
1-3/2016 1-3/2015 Change,% 2015
------------------------------------------------------
Net sales 7,148 6,253 14.3% 26,934
------------------------------------------------------
Operating profit 253 429 -41.0% 1,786
------------------------------------------------------
- % of net sales 3.5% 6.9% 6.6%
------------------------------------------------------
Net profit 129 222 -41.8% 981
------------------------------------------------------
- % of net sales 1.8% 3.5% 3.6%
------------------------------------------------------
LOAN ARRANGEMENT
Ilmarinen Mutual Pension Insurance Company granted Qt Group a loan of EUR 6.0
million on 29 February 2016. The loan must be drawn down within six months of
the signature of the agreement at the latest. It is a bilateral loan secured
with collateral. The collateral for the loan consists of a corporate mortgage
on Qt's mortgageable assets and the shares outstanding in the Qt subsidiary The
Qt Company Oy, which will be transferred into the direct ownership of Qt on the
day of the demerger. In addition to the terms presented above, the loan is
subject to other covenants and terms customary to financial agreements.
FUTURE PROSPECTS
Considering the time of year and general market situation, demand for the Qt
business's services is at a moderate level, and the long-term business outlook
is promising. The company will continue to introduce changes to open source
code licensing in forthcoming versions of its Qt software. These changes are
aimed at promoting licence sales to commercial players.
Qt's business development efforts will particularly focus on embedded systems
in the automotive sector, digital TV and industrial automation. Areas targeted
in product development include value-added features and tools required for
building embedded systems.
Sales growth associated with embedded systems will also reflect on the earnings
logic. Licence revenue from these sales accumulates over the long term, as
opposed to one-off licence payments. Consequently, Digia anticipates no major
impact from embedded systems sales growth on Qt's net sales in 2016.
Digia estimates that Qt's net sales will see year-on-year growth of more than
10 per cent in 2016. An exceptional licensing deal made with Nokia Corporation
in 2012 in connection with the acquisition of the Qt business will no longer
generate net sales in 2016. In 2015, net sales of a total of about EUR 1.4
million were still recognised from this deal.
Exchange rate fluctuations, particularly between the US dollar and euro, may
have a large impact on Qt's net sales development, but no such fluctuations are
currently foreseen. Another factor contributing to considerable fluctuation in
quarterly net sales and profitability in particular is contract turnaround
times which, in the major customer business, are very long at up to 18 months.
Digia's demerger and the resulting establishment of Qt as an independent public
listed company involve considerable expenses that will tax the profitability of
the Qt business in the future. Due to these expenses and growth investments,
the company estimates that Qt's operating profit will remain in the red in
2016.
Accounting principles:
The figures for the Qt business are based on carve out calculations prepared
for the Digia Group. There have been no changes in the carve out calculation
principles. They are presented in detail in the demerger prospectus.
OTHER MAJOR EVENTS OF THE REVIEW PERIOD
In accordance with the proposal of the Board of Directors, Digia Plc's Annual
General Meeting, held on 16 March 2016, approved the demerger plan signed by
the Board on 16 December 2015, and decided on the partial demerger of Digia
Plc. As set out in the demerger plan, Digia Plc is being demerged such that all
assets, liabilities and responsibilities related to Digia's Qt business are
transferred to a new company established in the demerger called Qt Group Plc.
Digia Plc will continue the operations of the domestic business. As a part of
the demerger, the Articles of Association of Qt Group Plc and the decrease in
Digia Plc's additional paid-in capital by its entire amount of EUR 7,899,485.80
were approved.
The Annual General Meeting determined Qt Group Plc's Board and auditor fees,
decided to set the number of Board members at five (5) and elected the
company's Board of Directors and auditor.
Robert Ingman, Matti Rossi, Leena Saarinen, Tommi Uhari and Kai Öistämö were
elected as members of Qt Group Plc's Board of Directors. At the Board's
organisation meeting, Robert Ingman was elected Chairman of the Board and Tommi
Uhari was elected Vice Chairman.
The Annual General Meeting granted the following authorisations to the Board of
Directors of Qt Group Plc:
Authorising the Board of Directors to decide on buying back own shares and/or
accepting them as collateral
The AGM authorised the Board of Qt Group Plc to decide on the buyback and/or
acceptance as collateral of no more than 1,000,000 shares in the company. This
buyback can only be executed by means of the company's unrestricted equity. The
Board shall decide on how these shares are to be bought. Own shares may be
bought back in disproportion to the holdings of the shareholders. The
authorisation also includes acquisition of shares through public trading
organised by NASDAQ Helsinki Oy in accordance with the rules and instructions
of NASDAQ Helsinki and Euroclear Finland Ltd, or through offers made to
shareholders. Shares may be acquired in order to improve the company's capital
structure, to fund or complete acquisitions or other business transactions, for
offering share-based incentive schemes, to sell on, or to be annulled. The
shares must be acquired at the market price in public trading. The
authorisation is valid until 16 September 2017. Qt Group Plc's Board of
Directors may only make decisions on the basis of the authorisation after the
implementation of the demerger has been registered.
Authorising the Board of Directors to decide on a share issue and granting of
special rights
The AGM authorised the Board of Qt Group Plc to decide on an ordinary or bonus
issue of shares and the granting of special rights (as defined in Section 1,
Chapter 10 of the Limited Liability Companies Act) in one or more instalments,
as follows: The issue may total 2,000,000 shares at a maximum. The
authorisation applies both to new shares and to treasury shares held by the
company. By virtue of the authorisation, the Board has the right to decide on
share issues and the granting of special rights, in deviation from the
pre-emptive subscription rights of the shareholders (a directed issue). The
authorisation may be used to fund or complete acquisitions or other business
transactions, for offering share-based incentive schemes, to develop the
company's capital structure, or for other purposes decided by the Board. The
Board was authorised to decide on all terms related to the share issue or
special rights, including the subscription price, its payment in cash or
(partly or wholly) in capital contributed in kind or its being written off
against the subscriber's receivables, and its recognition in the company's
balance sheet. The authorisation is valid until 16 September 2017. Qt Group
Plc's Board of Directors may only make decisions on the basis of the
authorisation after the implementation of the demerger has been registered.
On 3 March 2016, Digia Plc announced that it had published a demerger
prospectus that had been drafted on behalf of Qt Group Plc for implementing the
partial demerger of Digia and applying for the listing of Qt Group shares on
the official list of NASDAQ Helsinki Oy.
The demerger will come into force once its implementation has been registered
in the Trade Register. The planned date of registration is 1 May 2016. Once the
demerger comes into effect, it has been agreed that Juha Varelius will assume
the position of President and CEO of Qt Group Plc. Timo Levoranta, M.Sc.
(Tech.), B.Sc. (Econ. & Bus.Adm.), born in 1965, has been appointed as the new
CEO of Digia Plc.
INCOME STATEMENT, EUR 1,000
EUR 1,000 1-3/2016 1-3/2015 Change 2015
, %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NET SALES 7,148.2 6,252.8 14.3% 26,933.8
--------------------------------------------------------------------------------
Other operating income 42.1 358.4 -88.2% 1,820.5
--------------------------------------------------------------------------------
Materials and services -170.4 -251.6 -32.3% -1,003.6
--------------------------------------------------------------------------------
Depreciation, amortisation and impairment -137.3 -187.2 -26.7% -954.1
--------------------------------------------------------------------------------
Other operating expenses -6,629.7 -5,743.4 15.4% -25,010.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 253.0 428.9 -41.0% 1,786.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial expenses (net) -81.5 -98.5 -17.3% -195.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit before taxes 171.5 330.4 -48.1% 1,590.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income taxes -42.4 -108.7 -61.0% -609.6
--------------------------------------------------------------------------------
NET PROFIT 129.1 221.7 -41.8% 981.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income:
--------------------------------------------------------------------------------
Items which may be reclassified
subsequently to profit or loss:
--------------------------------------------------------------------------------
Exchange differences on translation of 44.5 -10.0 118.0
foreign operations
--------------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME 173.6 211.7 -18.0% 1,099.2
--------------------------------------------------------------------------------
BALANCE SHEET, EUR 1,000
Assets 31.3.2016 31.12.2015 Change,
%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Non-current assets
--------------------------------------------------------------------------------
Goodwill 6,562 6,562 0.0%
--------------------------------------------------------------------------------
Other intangible assets 5,725 5,843 -2.0%
--------------------------------------------------------------------------------
Tangible assets 439 416 5.6%
--------------------------------------------------------------------------------
Long-term receivables 34 42 -19.2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total non-current assets 12,761 12,863 -0.8%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Current assets
--------------------------------------------------------------------------------
Current receivables 7,485 7,429 0.8%
--------------------------------------------------------------------------------
Cash and cash equivalents 3,271 3,577 -8.6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total current assets 10,756 11,006 -2.3%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 23,517 23,870 -1.5%
--------------------------------------------------------------------------------
Shareholders' equity and liabilities 31.3.2016 31.12.2015 Change,
%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Unrestricted shareholders' equity reserve and 8,528 8,313 2.6%
retained earnings
--------------------------------------------------------------------------------
Translation difference 565 605 -6.7%
--------------------------------------------------------------------------------
Equity attributable to parent-company 9,093 8,918 2.0%
shareholders
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total shareholders' equity 9,093 8,918 2.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities
--------------------------------------------------------------------------------
Long-term interest-bearing liabilities 100 812 -87.7%
--------------------------------------------------------------------------------
Received long-term advances 825 875 -5.7%
--------------------------------------------------------------------------------
Deferred tax liabilities 209 195 7.5%
--------------------------------------------------------------------------------
Total long-term liabilities 1,825 1,881 -3.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-term interest-bearing liabilities 1,238 553 124.1%
--------------------------------------------------------------------------------
Other short-term liabilities 12,051 12,517 -3.7%
--------------------------------------------------------------------------------
Total short-term liabilities 12,599 13,070 -3.6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total liabilities 14,424 14,951 -3.5%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity and liabilities 23,517 23,869 -1.5%
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT, EUR 1,000
1.1.2016-31.3.2016 1.1.2015-31.3.2015 1.1.2015-31.12.2015
--------------------------------------------------------------------------------
Cash flow from
operations:
--------------------------------------------------------------------------------
Net profit 129 222 981
--------------------------------------------------------------------------------
Adjustments to net 261 395 1,936
profit
--------------------------------------------------------------------------------
Change in working -459 -135 -946
capital
--------------------------------------------------------------------------------
Interest paid -82 -99 -196
--------------------------------------------------------------------------------
Interest income 0 0
--------------------------------------------------------------------------------
Taxes paid -42 -109 -610
--------------------------------------------------------------------------------
Cash flow from -193 274 1,166
operations
--------------------------------------------------------------------------------
Cash flow from -23 -18 -233
investments
--------------------------------------------------------------------------------
Cash flow from -26 -45 -303
financing
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Change in cash and -242 211 629
cash equivalents
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash and cash 3,577 2,857 2,857
equivalents at
beginning of
period
--------------------------------------------------------------------------------
Net foreign -64 175 91
exchange
difference
--------------------------------------------------------------------------------
Change in cash and -242 211 629
cash equivalents
--------------------------------------------------------------------------------
Cash and cash 3,271 3,243 3,577
equivalents at end
of period
--------------------------------------------------------------------------------
Helsinki, 29 April 2016
Digia Plc
Board of Directors
FURTHER INFORMATION
Juha Varelius, CEO, tel. +358 (0)10 313 3000 (exchange)
DISTRIBUTION
NASDAQ Helsinki
Key media
www.digia.com
Digia Oyj issued this content on 29 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 April 2016 07:42:38 UTC
Original Document: http://qfx.quartalflife.com/Clients/fi/digia/rss/newsentry.aspx?id=1002543565&culture=en-EN
