ASIAKASTIETO GROUP PLC, STOCK EXCHANGE RELEASE, 16 FEBRUARY 2017 AT 12.00 EET
Asiakastieto Group's Financial Statement Release 1.1. - 31.12.2016: Year of Strong Growth
SUMMARY
The figures presented in this financial statement release are based on audited 2016 financial statement.
October - December 2016 in short:
- Net sales amounted to EUR 12,6 million (EUR 11,4 million), an increase of 11,2 %. - Adjusted EBIT excluding non-recurring and other adjusted items was EUR 4,4 million (EUR 4,9 million), a decrease of 9,4 %. - Operating profit (EBIT) was EUR 4,3 million (EUR 4,9 million). Operating profit included non-recurring expenses and other adjusted items of EUR 0,1 million (EUR 0,0 million). - The share of new products and services of net sales was 5,0 % (8,8 %). - The share of value-added services of net sales was 66,9 % (59,7 %). - Free cash flow amounted to EUR 4,6 million (EUR 4,7 million). The impact of non-recurring and other adjusted items on free cash flow was EUR -0,1 million (EUR -0,0 million). - Earnings per share were EUR 0,21 (EUR 0,24).
January - December 2016 in short:
- Net sales amounted to EUR 49,2 million (EUR 43,7 million), an increase of 12,5 %. - Adjusted EBIT excluding non-recurring and adjusted items was EUR 19,2 million (EUR 18,3 million), an increase of 5,1%. - Operating profit (EBIT) was EUR 20,0 million (EUR 15,8 million). Operating profit included non-recurring expenses and other adjusted items of EUR 0,3 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 7,4 % (8,6 %). - The share of value-added services of net sales was 65,4 % (59,4 %). - Free cash flow amounted to EUR 17,2 million (EUR 13,8 million). The impact of non-recurring and other adjusted items on free cash flow was EUR -0,4 million (EUR -2,9 million). - Earnings per share were EUR 1,01 (EUR 0,76). - Profit of non-recurring sale of shares of office premises was EUR 1,1 million
Future outlook
Asiakastieto Group expects its net sales growth rate to be within the range of long term target. Adjusted euro-nominated net operating profit is expected to grow from last year but at a slower pace than net sales.
KEY FIGURES
| 1.10.- | 1.10.- | 1.1.- | 1.1.- | |
| EUR million | 31.12.2016 | 31.12.2015 | 31.12.2016 | 31.12.2015 |
| Net sales | 12,6 | 11,4 | 49,2 | 43,7 |
| Net sales growth, % | 11,2 | 7,7 | 12,5 | 5,6 |
| Adjusted EBITDA 2 | 5,1 | 5,4 | 21,7 | 20,5 |
| Adjusted EBITDA margin, % 2 | 40,2 | 47,5 | 44,1 | 47,0 |
| Adjusted operating profit (EBIT) 2 | 4,4 | 4,9 | 19,2 | 18,3 |
| Adjusted EBIT margin, % 2 | 34,8 | 42,7 | 39,1 | 41,8 |
| New products and services share of net sales, % 1 | 5,0 | 8,8 | 7,4 | 8,6 |
| Free cash flow 3 | 4,6 | 4,7 | 17,2 | 13,8 |
| Net debt to EBITDA, x | 2,3 | 2,2 | 2,2 | 2,4 |
___________________________________________________________________ 1 The method used for calculating the share of new products and services, the comparative figures for 1 October - 31 December 2015 and the financial year 2015 have 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 4,8 % for the fourth quarter 1 October - 31 December 2016, 9,0 % for the comparative period 1 October - 31 December 2015, 6,1 % for the financial year 2016 and 7,6 % for the comparative period 1 January - 31 December 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, M&A related fees for legal and other advisory services, redundancy payments and compensations paid. The above listed adjusted items were EUR -0,1 million for the fourth quarter 1 October - 31 December 2016, EUR -0,0 million for the comparative period 1 October - 31 December 2015, EUR -0,3 million for the financial year 2016 and EUR -2,5 million for the comparative period 2015. Adjusted key figures for the financial year 2016 are also adjusted by the non-recurring profit on the sale of shares of office premises EUR 1,1 million.
3 The impact of adjusted items on free cash flow was EUR -0,1 million for the fourth quarter 1 October - 31 December 2016, EUR -0,0 million for the comparative period 1 October - 31 December 2015, EUR - 0,4 million for the financial year 2016 and EUR -2,9 million for the financial year 2015.
JUKKA RUUSKA, CEO
"2016 was a year of strong growth for Asiakastieto Group. The most important components in the growth of net sales of 12,5 % were the new services launched in the course of the year and the increase in inquiry volumes generated by the general economic growth. The need for our services rises along with the growing trade of our clients. Further, our clients have automatized their decision-making and started to use our processed services, which can also be seen in the growth of net sales. In the financial year 2016, Asiakastieto Group's net sales amounted to EUR 49,2 million (EUR 43,7 million).
The adjusted operating profit was EUR 19,2 million (EUR 18,3 million), and it grew by 5,2 %. The difference in the speed of growth between the net sales and operating profit is due to several factors, the most important one being the increase in data acquisition costs. The increase in this item of expenditure is caused by the brisk growth in the real estate and consumer information services in which we are not able to use the information in our own database to quite the same extent as in our other services. In addition, the transfer to rented premises impacted the margin's speed of growth in the financial year 2016. Especially in the last quarter, the bigger than anticipated actuals of incentives due to successful financial period had an impact on the operating profit as well as margin level of acquired Intellia Oy. The earnings per share for the whole financial year 2016 EUR 1,01 (EUR 0,76) improved strongly, increasing 33 % compared to previous year.
We see the year 2017 as a kind of breakthrough for the automation of compliance functions. The more profound knowing of the customer and own supply chain as well as conformance to the ever more complex legislation require that companies invest strongly in the unification of processes. Among others, politically exposed persons or persons on international sanction lists and so-called beneficial owners must be identified more and more often when concluding contracts. Asiakastieto Group's current service selection expanding in 2017 supports the companies' growing need to automatize their checks relating to the knowing of customers and the verification of the conformity to law of their operations. Consistent background analyses which are made saving the time and effort of the client enterprises' customers also reinforce the customer experience."
FUTURE OUTLOOK
Asiakastieto Group expects its net sales growth rate to be within the range of long term target. Adjusted euro-nominated net operating profit is expected to grow from last year but at a slower pace than net sales.
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 16 February 2017
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
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. At the end of 2016, the Group had around 19 000 clients, of which 11 000 were contractual clients. The Group serves several industries, the largest ones including finance and banking as well as wholesale and retail sectors and expert service companies. In 2016, the Group's net sales were EUR 49,2 million and it had 170 employees at the end of 2016. Asiakastieto Group is listed on Nasdaq Helsinki with the ticker ATG1V. More information about Asiakastieto Group is available at www.asiakastieto.fi.
Attachments:
