Asiakastieto Group's Half Year Financial Report 1.1. -

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Asiakastieto Group's Half Year Financial Report 1.1. - 30.6.2016: Strong growth continued during the second quarter

Asiakastieto Group Plc, stock exchange release 3 august 2016, 2.00 P.m. EEST

Asiakastieto Group's Half Year Financial Report 1.1. - 30.6.2016: Strong growth continued during the second quarter

SUMMARY

The figures presented in this Half year financial report are unaudited.

April - June 2016 in short:

-   Net sales amounted to EUR 12,9 million (EUR 11,3 million), an increase of 13,4 %. -  Adjusted EBIT excluding non-recurring and other adjusted items was EUR 4,9 million (EUR 4,7 million), an increase of 5,0 %. -  Operating profit (EBIT) was EUR 6,0 million (EUR 4,4 million). Operating profit included    non-recurring expenses and other adjusted items of EUR 0,0 million (EUR 0,3 million) as well as EUR 1,1 million (EUR 0,0 million) non-recurring, adjusted profit on sale of office premises. -  The share of new products and services of net sales was 8,3 % (9,6 %). -  The share of value-added services of net sales was 65,4 % (61,3 %). -  Free cash flow amounted to EUR 3,5 million (EUR 1,9 million). The impact of non-recurring and other adjusted items on free cash flow was EUR -0,0 million (EUR -1,4 million). -  Earnings per share were EUR 0,32 (EUR 0,21). -  Profit on non-recurring sale of shares of office premises was EUR 1,1 million

January - June 2016 in short:

-  Net sales amounted to EUR 24,8 million (EUR 21,9 million), an increase of 13,5 %. -  Adjusted EBIT excluding non-recurring and adjusted items was EUR 10,0 million (EUR 9,0 million), an increase of 11,1%. -  Operating profit (EBIT) was EUR 11,1 million (EUR 6,5 million). Operating profit included    non-recurring expenses and other adjusted items of EUR 0,0 million (EUR 2,5 million) as well as EUR 1,1 million (EUR 0,0 million) non-recurring, adjusted profit on sale of office premises. -  The share of new products and services of net sales was 9,2 % (8,4 %). -  The share of value-added services of net sales was 64,9 % (59,7 %). -  Free cash flow amounted to EUR 7,4 million (EUR 5,3 million). The impact of non-recurring and other adjusted items on free cash flow was EUR -0,1 million (EUR -2,8 million). -  Earnings per share were EUR 0,57 (EUR 0,30). -  Profit on non-recurring sale of shares of office premises was EUR 1,1 million

Future outlook

Asiakastieto Group expects its net sales growth rate to exceed on annual level the last year's level. Adjusted euro-denominated net operating profit is expected to increase from last year, despite the new rental cost for 2016 caused by the eventual realization of office premises.

KEY FIGURES

  1.4.- 1.4.- 1.1.- 1.1.- 1.1.-
EUR million 30.6.2016 30.6.2015 30.6.2016 30.6.2015 31.12.2015
Net sales 12,9 11,3 24,8 21,9 43,7
Net sales growth, % 13,4 9,7 13,5 5,6 5,6
Adjusted EBITDA2 5,6 5,3 11,2 10,1 20,5
Adjusted EBITDA margin, %2 43,4 46,4 45,1 46,3 47,0
Adjusted operating profit (EBIT)2 4,9 4,7 10,0 9,0 18,3
Adjusted EBIT margin, %2 38,4 41,5 40,2 41,1 41,8
New products and services share of net sales, %1 8,3 9,6 9,2 8,4 8,6
Free cash flow3 3,5 1,9 7,4 5,3 13,8
Net debt to EBITDA, x 2,4 2,7 2,4 2,8 2,4

__________________________________________________________________ 1 The method used for calculating the share of new products and services, the comparative figures for 1 April - 30 June 2015, 1 January - 30 June 2015 and the financial year 2015 has been changed into rolling starting from 1 January 2016, so that the share include sales of products, which have been launched during the past 24 months. Earlier the share was calculated from the sales of products launched during the previous and current financial year. Figures based on the old calculation method were 6,6 % for the second quarter 1 April - 30 June 2016, 8,2 % for the comparative period 1 April - 30 June 2015, 7,3% for the interim period 1 January - 30 June 2016, 6,6% for the comparative period 1 January - 30 June 2015 and 7,6 % for the financial year 2015.

2 Adjusted key figures are adjusted by following items: 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. The above listed adjusted items were EUR -0,0 million for the second quarter 1 April - 30 June 2016, EUR -0,3 million for the comparative period 1 April - 30 June 2015, EUR -0,0 million for interim period 1 January - 30 June 2016, EUR -2,5 million for the comparative period 1 January - 30 June 2015 and EUR -2,5 million for the financial year 2015. Adjusted key figures for the year 2016 are also adjusted by the non-recurring profit on sale of shares of office premises EUR 1,1 million.

3 The impact of adjusted items on free cash flow was EUR -0,0 million for the second quarter 1 April - 30 June 2016, EUR -1,4 million for the comparative period 1 April - 30 June 2015, EUR - 0,1 for the interim period 1 January - 30 June 2016, EUR -2,8 million for the comparative period 1 January - 30 June 2015 and EUR -2,9 million for the financial year 2015.

JUKKA RUUSKA, CEO

Asiakastieto Group's financial year 2016 continued with strong growth, second quarter's growth being 13,4%. New services launched during the quarter were e.g. the expansions of Land information and International Services. Good demand of new services laid foundation for the continuation of growth. It was strengthened by renewed SME business service packages and open business information services, but also by the volume growth due to the intensification of the business of our customer companies. Our customers purchase even more value-added services, which support their processes better. Nearly two thirds of the net sales consisted of these value-added services.

Asiakastieto Group's net sales amounted to EUR 12,9 million (EUR 11,3 million). The net sales increased in all product areas, but most prominently in the Consumer Information services, where net sales grew 26,0%. Group's adjusted net operating profit grew in the second quarter being EUR 4,9 million, where as it was in the comparative period 2015 EUR 4,7 million.

During the second quarter we have proceeded in building the future with new strategy. Personnel's commitment and participation has been strong, for example nearly half of Asiakastieto's employees have participated in the strategy workshops. The results will be published during the autumn.

During the rest of the year and in the future we see potential for growth in services related to consumers' information security. According to the Statistics Finland 1400 identity thefts have been reported to police during the beginning of the year. Preventing identity thefts is important and sorting them out is often troublesome and expensive for the victim of the crime. Asiakastieto believes to be able to reduce problems caused by this internationally growing type of crime e.g. by further developing Own Information service.

FUTURE OUTLOOK

Asiakastieto Group expects its net sales growth rate to exceed on annual level the last year's level. Adjusted euro-denominated net operating profit is expected to increase from last year, despite the new rental cost for 2016 caused by the eventual realization of office premises.

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 competitive tenders and 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 3 August 2016

ASIAKASTIETO GROUP PLC Board of Directors

For further information: Jukka Ruuska, CEO Asiakastieto Group Plc tel. +358 10 270 7111

Distribution: Nasdaq Helsinki Ltd major media investors.asiakastieto.fi

HUG#2032811

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