Asiakastieto Group Plc, stock exchange release 20 May 2015, 10.00 a.m. EEST
ASIAKASTIETO GROUP'S INTERIM REPORT 1.1. - 31.3.2015
The clients' interest in new and value-added services which increase the
efficiency of their business processes keeps Asiakastieto Group on growth path.
SUMMARY
The figures presented in this interim report are unaudited.
January-March 2015 in short
* Net sales amounted to EUR 10,5 million (EUR 10,4 million), an increase of
1,6 %.
* Adjusted EBIT excluding non-recurring items was EUR 4,3 million (EUR 4,8
million).
* Operating profit (EBIT) was EUR 2,1 million (EUR 4,7 million). Operating
profit included non-recurring expenses of EUR 2,2 million (EUR 0,1 million),
mostly relating to the Company's listing.
* The share of new products and services of net sales was 4,8 % (5,3 %).
* The share of value-added services of net sales was 57,9 % (55,8 %).
* Free cash flow amounted to EUR 3,3 million (EUR 5,5 million). The impact of
non-recurring items on free cash flow was EUR -1,4 million (EUR -0,0
million).
* Earnings per share were EUR 0,09 (EUR -0,13).
Future outlook
Asiakastieto Group expects its full-year net sales in 2015 to grow compared to
2014.
Jukka Ruuska, CEO"In the first part of the year 2015, there were no signs of recovery in the
Finnish economy. The number of consumers and companies having payment defaults
is at a record high level, and the business activity by operating enterprises
has not increased significantly. Despite this, the net sales of Asiakastieto
Group have grown compared with the corresponding period of the previous year,
and generally the first quarter met our expectations. Our client companies have
a need to increase the efficiency of their risk management as well as their
sales and business processes, and they have increasingly used our value-added
services.
In the first quarter of the year, the net sales of Asiakastieto Group amounted
to EUR 10,5 million (EUR 10,4 million), an increase of 1,6 % as compared to the
previous year. Net sales in the Business Information, Consumer Information and
Customer Management product areas increased, while there was a decline in the
net sales of Certificates and Analyses.
The adjusted operating profit (EBIT) of Asiakastieto Group in the first quarter
was EUR 4,3 million (EUR 4,8 million). Operating profit (EBIT) included non-
recurring costs of EUR 2,2 million, mainly relating to the listing of
Asiakastieto Group Plc. The profitability of the business was also affected by
non-capitalised development work relating to IT infrastructure in the first
quarter. Furthermore, the increase in net sales during the first quarter of the
2015 was mainly generated by services based on external databases, where each
data search made by a customer increases data acquisition costs incurred by
Asiakastieto Group. The increase in depreciation and amortisation reflects the
Group's increasing capital expenditure generating growth by developing new
services that improve the efficiency of the business processes of our customers.
For the rest of the year, the development of new services will particularly
focus on services utilising our own database.
We expect that the listing in the stock exchange completed at the end of March
will bring Asiakastieto Group increased positive visibility, awareness and
public reliability and create natural opportunities to expand the business also
by acquisitions. We strongly believe that our customers will continue to
increase the efficiency of their decision-making and marketing through the
automation of their processes. According to our long-term strategic goals,
Asiakastieto Group wants to be a pioneer in this digitalisation and by its own
activities demonstrate the functionality of its services. During the first
months of the year 2015, we have already seen that our efforts in the
development of products and services have been successful."
Key figures
Key income statement and cash
flow figures
EUR million 1.1.- 31.3.2015 1.1.- 31.3.2014 1.1.- 31.12.2014
Net sales 10,5 10,4 41,4
Growth of net sales, %(1) 1,6 -2,9 0,1
EBITDA 2,7 5,2 19,7
Operating profit (EBIT) 2,1 4,7 17,6
Adjusted EBITDA² 4,9 5,2 20,6
Adjusted EBITDA margin, %(2) 46,2 50,4 49,8
Adjusted EBIT(2) 4,3 4,8 18,6
Adjusted EBIT margin, %(2) 40,6 45,8 45,0
Net sales from new products
and services 0,5 0,6 2,8
New products and services
share of net sales, % 4,8 5,3 6,7
Net sales from value-added
services 6,1 5,8 23,2
Value-added services share of
net sales, % 57,9 55,8 56,1
Free cash flow(3) 3,3 5,5 16,8
Cash conversion, %(3) 123,2 106,6 85,3
Key balance sheet ratios
EUR million 1.1.- 31.3.2015 1.1.- 31.3.2014 1.1.- 31.12.2014
Net debt to adjusted EBITDA,
x(4) 3,0 8,8 3,0
Gearing, %(4) 87,3 neg. 95,8
Equity ratio, %(4) 47,2 -52,2 46,7
(1 )The growth of net sales for the period from 1 January to 31 March 2014 has
been calculated by comparing the net sales of the period to the net sales in the
comparative quarter in 2013.
(2 )Adjusted key figures are adjusted by non-recurring items. Non-recurring
items include management fees which the Company has paid to Investcorp, the
former owner of the Company, until the listing of the Company for certain
ongoing advisory services, costs relating to the listing, an expense relating to
the discount given to the personnel in the personnel offering, fees for legal
and other advisory services, redundancy payments and compensations paid. Non-
recurring items were EUR -2,2 million for the interim period 1 January - 31
March 2015, EUR -0,1 million for the interim period 1 January - 31 March 2014
and EUR -1,0 million for the annual financial period 1 January - 31 December
2014.
(3 )The impact of non-recurring items on free cash flow was EUR -1,4 million for
the interim period 1 January - 31 March 2015, EUR -0,0 million for the interim
period 1 January- 31 March 2014 and EUR -0,3 million for the annual financial
period 1 January - 31 December 2014.
(4) Key figures for the interim period 1 January - 31 March 2015 are not
comparable to figures presented for the period 1 January - 31 March 2014 due to
the change in the capital structure and the refinancing of indebtedness carried
out by the Company at the end of 2014.
BUSINESS OVERVIEW
Asiakastieto Group Plc (the "Company") is a Finnish public limited liability
company and the parent company for Asiakastieto Group ("Asiakastieto Group" or
the "Group"). Suomen Asiakastieto Oy is the operating company in the group.
Asiakastieto Group is one of the leading Finnish providers of business and
consumer information services. The Group's products and services are primarily
used for risk management, finance and administration, decision-making and sales
and marketing purposes. The Group serves several industries, the largest of
which include finance and banking, insurance, telecommunication and wholesale
and retail sectors.
The services provided by the Group are based on a comprehensive database which
combines data from several public data sources as well as through the Group's
own data acquisition channels. The database provides a base for the Group
services ranging from individual reports to advanced risk management solutions.
The Group's products and services are divided into four product areas:
1. Business Information: Risk management and general business information
services which are mainly used by businesses serving corporate customers.
2. Consumer Information: Risk management information and services on private
individuals and real estates. The products and services of Consumer
Information are mainly used by businesses serving consumer customers.
3. Customer Management: Services for the prospecting of potential customers as
well as for sales and marketing purposes. The products and services of
Customer Management are mainly used by businesses serving corporate
customers.
4. Certificates and Analyses: Credit rating certificates, company and industry
analyses, and printed products concerning risk management information.
FUTURE OUTLOOK
Asiakastieto Group expects its full-year net sales in 2015 to grow compared to
2014.
The outlook is subject to risks related to, among other factors, the development
of the Finnish economy and the business operations of the Group. The most
significant risks related to business operations include for example risks
related to the success of product and service development activities, launches
of new products and services and risks related to losing significant customer
accounts.
Asiakastieto Group's business risks have been described in more detail on the
Company's investor pages at investors.asiakastieto.fi.
Helsinki, on 20 May 2015
ASIAKASTIETO GROUP PLC
Board of Directors
For further information
Jukka Ruuska, CEO, Asiakastieto Group Plc, tel. +358 10 270 7111
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
major media
investors.asiakastieto.fi
[HUG#1922353]