STOCK EXCHANGE RELEASE April 25, 2005 at 4.30 pm
TALENTUM OYJ Malminkatu 30 00100 Helsinki Puhelin 020 442 40 Faksi 020 4424 130 www.talentum.com 1(11)
TALENTUM GROUP’S FINANCIAL INFORMATION FOR 2004 ACCORDING TO IFRS Talentum group has adopted the International Financial Reporting Standards (IFRS) as of 1 January, 2005. Until January 2005 Talentum group reported under Finnish Accounting Standards (FAS). This release describes the preliminary main impacts to the consolidated income statement, balance sheet and key figures. The main differences of IFRS and FAS financial statements are due to: - increase in 2004 profit which is mainly caused by the fact that goodwill amortizations are not applied in IFRS - decrease in the amount of total assets due to impairment loss in goodwill in the opening balance 1 January, 2004 based on the impairment test according to IAS 36 - increase in deferred tax assets caused by the tax loss carry forwards of Satama Interacative group, when valued according to IAS 12 - capitalized renovations that have been reclassified as tangible assets Key figures
Earnings per share Net sales Operating income Equity per share Total equity/total assets
EUR MEUR MEUR EUR %
31.12.2004 IFRS 0.15 120 9.3 0.54 42.34
31.12.2004 FAS 0.08 120 6.7 0.83 48.60
The financial statements and other information have been prepared according to the IFRSs valid on 1 January 2005. IFRS opening balance sheet 1 January, 2004 - Appendix 1 Preliminary IFRS comparison figures quarterly 2004 - Appendix 2 Preliminary IFRS comparison figures 2004 - Appendix 3 The information provided is unaudited.
Additional information Kai Järvikare, CFO tel. +358 (0)20 442 4210 Distribution Helsinki Stock Exchange Principal Media
TALENTUM OYJ Malminkatu 30 00100 Helsinki Puhelin 020 442 40 Faksi 020 4424 130 www.talentum.com 2(11)
STOCK EXCHANGE RELEASE April 25, 2005 at 4.30 pm
APPENDIX 1 The conversion of FAS balance sheet at the closing 31 December 2003 into IFRS opening balance sheet of transition date, 1 January 2004 RECONCILIATION OF OPENING BALANCE SHEET AND EQUITY 1000 EUR
FAS 31.12.2003
IFRS Conversion
IFRS 1.1.2004
ASSETS NON-CURRENT ASSETS Intangible assets (2) Goodwill (1) Tangible assets (2;3) Investments in associates Trade receivables and other receivables Available-for-sale investments (5) Deferred tax receivables (6) NON-CURRENT ASSETS CURRENT ASSETS Inventories Trade receivables and other receivables Available-for-sale investments (5) Short-term investments (4) Cash and cash equivalents (8) CURRENT ASSETS ASSETS
4 15 8 1
125 662 974 235
-1 695 -8 019 2 044
467
2 7 11 1
430 643 018 235 467
912 1 418 32 793
-713 4 743 -3 640
199 6 161 29 153
1 840
-66
1 774
16 068
-76
15 993
2 331 471 32 437 53 147
235 -471
2 566
-378
32 437 52 769
85 941
-4 018
81 922
-5 149
8 759 391
SHAREHOLDERS’ EQUITY AND LIABILITIES SHAREHOLDERS’ EQUITY Share capital Share premium account Fair value reserve and other reserves Exchange differences Retained earnings Shareholders’ equity Minority shares TOTAL EQUITY (9)
8 759 5 540 7 556 86 18 837 40 778 5 742 46 519
-351 -9 -15 6 -8
938 438 819 619
7 204 86 8 899 25 339 12 561 37 901
TALENTUM OYJ Malminkatu 30 00100 Helsinki Puhelin 020 442 40 Faksi 020 4424 130 www.talentum.com 3(11)
STOCK EXCHANGE RELEASE April 25, 2005 at 4.30 pm
FAS 31.12.2003 LONG TERM DEBT Deferred tax (10) Loans and other interest bearing debt (12) Provision for pension liabilities (7) Other long term provisions (11) LONG TERM DEBT SHORT TERM DEBT Current interest bearing debt (12) Accounts payable and other liabilities (11) Short term provisions SHORT TERM DEBT SHAREHOLDERS’ EQUITY AND LIABILITIES
IFRS Conversion
IFRS 1.1.2004
316
188
504
13 344
3 274
16 618
13 660
1 015 1 046 5 523
1 015 1 046 19 183
3 447
123
3 571
22 314
-1 046
21 237
25 761
-923
24 838
85 941
-4 018
81 922
Notes to the reconciliation of opening balance sheet and equity 1. Goodwill According to FAS goodwill in the balance sheet is based on the excess of the purchase price over the equity of subsidiary at the moment of purchase. Under FAS goodwill is amortized according to plan (on a straight-line-basis over its expected useful life). In the opening IFRS balance sheet Talentum group’s goodwill values remained unchanged as allowed in the IFRS 1- First-Time Adoption. Goodwill has been tested for impairment according to IFRS 1- First Time Adoption. Based on the impairment test 11.2 MEUR impairment loss was recognised. Prior to testing binding obligations in partner agreements were included in goodwill and in long term interest bearing debt (3.2 MEUR) respectively. 2. Other intangible assets Capitalized renovations of leaseholds (1.7 MEUR) have been shifted from the intangible assets to tangible assets. 3. Tangible assets Under FAS rental leases are treated as other leases. Under IFRS part of the rental leases have been reclassified as financial leases and they have been included in the balance sheet as tangible assets (0.3 MEUR) after deduction of accrued depreciations. Financial lease-items are depreciated mainly on the lease period basis. Lease obligations corresponding to financial lease-items are included in the balance sheet as long and short term interest bearing debt. 4. Own shares (held by parent company) Own shares are not included in assets or equity as required by IAS 32.
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5. Available-for-sale investments and other receivables Available-for-sale investments consist of shares in listed and unlisted companies. Listed shares are valued at fair value (+ 0.2 MEUR). Unlisted shares are carried at cost or at lower value (less impairment). Listed equity shares in inventories have been shifted into available-for-sale investments (0.1 MEUR). Impairment of 0.7 MEUR in long term investments and 0.1 MEUR in receivables were recognized. 6. Deferred tax assets Increase in deferred tax assets is mainly due to tax loss carry forwards of Satama Interactive group, when valued according to IFRS in the opening balance sheet (+ 3.7 MEUR). 7. Provision for pension liabilities Calculation of benefit plans based on pension solutions according to IAS 19 causes a liability of 1 MEUR in the balance sheet. Majority of group’s pension liabilities have been transferred into pension fund in the beginning of 2004. Employment disability insurance is considered to be a defined contribution plan. 8. Cash and cash equivalents Cash and cash equivalents include interest bearing investments and other investments with maturities at acquisition of shorter than three months. 9. Total Equity Adjustments caused by assets and liabilities recorded differently under IFRS and FAS or revaluation of balance sheet items due to IFRS are included in the equity of the opening balance sheet. Changes included in retained earnings are mainly due to goodwill impairment –11.2 MEUR based on IAS 36, recognized liability due to benefit plan based pension arrangement –0.7 MEUR, change in deferred tax +4.3 MEUR, recognized impairment in shares and receivables –0.5 MEUR and net change of other items +0.1 MEUR. Reserve for own shares 0.5 MEUR is not included in the group equity. Minority shares are included in total equity as a separate item according to IAS 1, whereas under FAS it is not included in the shareholders’ equity. 10. Deferred tax liability Increase in deferred tax liability is mainly due to IFRS-changes in the opening balance sheet. 11. Long term provisions Long term provisions of 1 MEUR are presented as a separate item (under FAS: other liabilities). 12. Long and short term interest bearing debts Liability based on the financial lease-items increases both short term and long term interest bearing debt. Interest bearing debt includes 3.2 MEUR liabilities due to binding partner agreements.
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APPENDIX 2 IFRS PRELIMINARY COMPARISON FIGURES QUARTERLY 2004 INCOME STATEMENT 1 000 EUR Net sales Other operating income Operating expenses Depreciation, amortization and impairment Share of profit of associates Operating profit Financial income and expenses Share of profit of associates Profit before taxes Income tax expense Profit for the period Attributable to: Equity holders of the parent Minority interest Earnings/share, undilluted (EUR) Earnings/share, dilluted (EUR) INCOME STATEMENT 1 000 EUR Net sales Other operating income Operating expenses Depreciation, amortization and impairment Share of profit of associates Operating profit Financial income and expenses Share of profit of associates Profit before taxes Income tax expense Profit for the period Attributable to: Equity holders of the parent Minority interest Earnings/share, undilluted (EUR) Earnings/share, dilluted (EUR)
FAS 1-3/2004
IFRS conversion
IFRS 1-3/2004
29 813 242 -26 362
46
29 813 242 -26 316
-1 953
649
-1 303
84 1 824
-84 611
2 435
66
-20
46
1 890 -407 1 483
93 685 -82 603
93 2 575 -489 2 085
1 157 326
641 -38
1 798 288
0,03
0,04
0,03
0,04
FAS 1-6/2004
IFRS conversion
IFRS 1-6/2004
60 039 482 -53 890
47
60 039 482 -53 843
-4 197
1 619
-2 578
180 2 614
-180 1 486
4 100
261
-48
213
2 875 -767 2 108
200 1 638 -77 1 561
200 4 513 -844 3 669
1 598 510
1 636 -75
3 234 435
0,04
0,08
0,04
0,08
STOCK EXCHANGE RELEASE April 25, 2005 at 4.30 pm
INCOME STATEMENT 1 000 EUR Net sales Other operating income Operating expenses Depreciation, amortization and impairment Share of profit of associates Operating profit Financial income and expenses Share of profit of associates Profit before taxes Income tax expense Profit for the period Attributable to: Equity holders of the parent Minority interest
FAS 1-9/2004
IFRS conversion
IFRS 1-9/2004
84 412 503 -76 203
-55
84 412 503 -76 258
-6 269
2 324
-3 945
184 2 627
-184 2 085
4 712
313
-75
238
2 940 -1 295 1 645
213 2 223 -25 2 198
213 5 163 -1 320 3 843
1 201 444
2 327 -129
3 528 315
Earnings/share, undilluted (EUR) Earnings/share, dilluted (EUR) BALANCE SHEET 1 000 EUR ASSETS Non-current assets Intangible assets Goodwill Tangible assets Investments in associates Deferred income taxes Other long term receivables and investments Total non-current assets Current assets Inventories Trade receivables and other receivables Cash and cash equivalents Total current assets Total assets
TALENTUM OYJ Malminkatu 30 00100 Helsinki Puhelin 020 442 40 Faksi 020 4424 130 www.talentum.com 6(11)
0,03
0,08
0,03
0,08
FAS 31.3.2004
4 14 8 1 1 1
IFRS conversion
IFRS 31.3.2004
632 955 411 264 418 380
-1 585 -7 329 1 991 10 4 565 -713
3 7 10 1 5
047 625 402 274 983 667
32 060
-3 061
28 998
1 727 22 312
-72 -76
1 654 22 237
32 514 56 553
-343 -491
32 171 56 062
88 613
-3 553
85 060
STOCK EXCHANGE RELEASE April 25, 2005 at 4.30 pm
FAS 31.3.2004 IFRS conversion SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity Share capital Share premium reserve Fair value reserve and other reserves Exchange differencies Retained earnings Net income Total Minority interest Total equity Long term debt Provisons for pension liabilities Deferred tax Long term interest bearing borrowings Long term provisions Long term debt
8 763 5 540
-5 149 -456
TALENTUM OYJ Malminkatu 30 00100 Helsinki Puhelin 020 442 40 Faksi 020 4424 130 www.talentum.com 7(11)
IFRS 31.3.2004
8 763 391
7 639 86 12 601 1 157 35 785 5 754 41 540
-9 970 641 -14 933 6 758 -8 175
7 183 86 2 631 1 798 20 852 12 512 33 364
356
970 196
970 553
12 518 0 12 874
3 305 922 5 394
15 823 922 18 268
Short term debt Current interest bearing debts Accounts payable and other liabilities Current liabilities
2 945
151
3 096
31 254 34 199
-922 -771
30 332 33 428
SHAREHOLDERS' EQUITY AND LIABILITIES
88 613
-3 553
85 060
FAS 30.6.2004 IFRS conversion
IFRS 30.6.2004
BALANCE SHEET 1 000 EUR ASSETS Non-current assets Intangible assets Goodwill Tangible assets Investments in associates Deferred income taxes Other long term receivables and investments Total non-current assets
4 14 8 1 1 1
349 804 285 361 418 669
-1 552 -6 665 2 033 19 4 479 -713
2 8 10 1 5
797 139 318 380 897 956
31 886
-2 399
29 487
Current assets Inventories Trade receivables and other receivables Cash and cash equivalents Total current assets
1 761
-63
1 699
19 599 31 933 53 293
-122 -447 -632
19 477 31 486 52 661
Total assets
85 180
-3 031
82 149
STOCK EXCHANGE RELEASE April 25, 2005 at 4.30 pm
FAS 30.6.2004 IFRS conversion SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity Share capital Share premium reserve Fair value reserve and other reserves Exchange differencies Retained earnings Net income Total Minority interest Total equity Long term debt Provisons for pension liabilities Deferred tax Long term interest bearing borrowings Long term provisions Long term debt
8 760 5 543 7 639 86 12 630 1 598 36 256 5 986 42 242
-5 149
IFRS 30.6.2004
8 760 394
968 636 003 722 281
7 116 86 2 662 3 234 22 252 12 709 34 961
926 143
926 475
16 998
3 014 710 4 793
19 680 710 21 791
332 16 666
-523
TALENTUM OYJ Malminkatu 30 00100 Helsinki Puhelin 020 442 40 Faksi 020 4424 130 www.talentum.com 8(11)
-9 1 -14 6 -7
Short term debt Current interest bearing debts Accounts payable and other liabilities Current liabilities
1 921
167
2 089
24 019 25 940
-710 -543
23 309 25 397
SHAREHOLDERS' EQUITY AND LIABILITIES
85 180
-3 031
82 149
FAS 30.9.2004 IFRS conversion
IFRS 30.9.2004
BALANCE SHEET 1 000 EUR ASSETS Non-current assets Intangible assets Goodwill Tangible assets Investments in associates Deferred income taxes Other long term receivables and investments Total non-current assets
6 14 8 1 1
557 204 197 364 418
-3 918 -3 348 1 687 29 4 788
2 10 9 1 6
639 856 884 394 206
1 762 33 503
-713 -1 476
1 049 32 027
Current assets Inventories Trade receivables and other receivables Cash and cash equivalents Total current assets
1 987
-57
1 929
18 406 25 684 46 077
-210 -432 -700
18 196 25 252 45 377
Total assets
79 580
-2 176
77 404
STOCK EXCHANGE RELEASE April 25, 2005 at 4.30 pm
FAS 30.9.2004 IFRS conversion SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity Share capital Share premium reserve Fair value reserve and other reserves Excange differencies Retained earnings Net income Total Minority interest Total equity Long term debt Provisons for pension liabilities Deferred tax Long term interest bearing borrowings Long term provisions Long term debt Short term debt Current interest bearing debts Accounts payable and other liabilities Current liabilities SHAREHOLDERS' EQUITY AND LIABILITIES
8 931 7 781 7 596 85 12 630 1 201 38 225 2 837 41 062
-5 149
IFRS 30.9.2004
8 931 2 632
835 327 152 757 395
7 100 85 2 796 3 528 25 073 9 594 34 667
881 188
881 511
6 310
2 998 563 4 629
8 984 563 10 939
11 915
153
12 067
20 293 32 208
-563 -410
19 730 31 798
79 580
-2 176
77 404
324 5 986
-496
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-9 2 -13 6 -6
STOCK EXCHANGE RELEASE April 25, 2005 at 4.30 pm
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10(11) APPENDIX 3 IFRS PRELIMINARY COMPARISON FIGURES 2004 AND RECONCILIATION OF EQUITY INCOME STATEMENT FAS 1-12/2004 1 000 EUR Net sales Other operating income Operating expenses Depreciation, amortization and impairment Share of profit of associates Operating profit Financial income and expenses Share of profit of associates Profit before taxes Income tax expense Profit for the period Attributable to: Equity holders of the parent Minority interest
IFRS conversion
IFRS 1-12/2004
119 923 667 -106 092
-147
119 923 667 -106 239
-8 095
3 042
-5 054
269 6 672
-269 2 626
9 298
58
-131
-72
6 731 -2 271 4 460
308 2 803 -293 2 510
308 9 534 -2 564 6 969
3 523 936
2 756 -247
6 280 690
Earnings/share, undilluted (EUR) Earnings/share, dilluted (EUR)
BALANCE SHEET 1 000 EUR ASSETS Non-current assets Intangible assets Goodwill Tangible assets Investments in associates Deferred income taxes Other long term receivables and investments Total non-current assets
0.08
0.15
0.08
0.15
FAS 31.12.2004
IFRS conversion IFRS 31.12.2004
7 14 7 1 1
349 461 744 195 396
-4 781 -1 713 1 716 39 4 358
2 12 9 1 5
568 748 460 234 754
1 804 33 949
-713 -1 094
1 091 32 855
Current assets Inventories Trade receivables and other receivables Cash and cash equivalents Total current assets
1 941
-63
1 878
15 606 28 896 46 444
-292 -478 -834
15 314 28 418 45 610
Total assets
80 393
-1 928
78 464
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11(11) FAS 31.12.2004 SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity Share capital Share premium reserve Fair value reserve and other reserves Excange differencies Retained earnings Net income Total Minority interest Total equity Long term debt Provisons for pension liabilities Deferred tax Long term interest bearing borrowings Long term provisions Long term debt Short term debt Current interest bearing debts Accounts payable and other liabilities Current liabilities SHAREHOLDERS' EQUITY AND LIABILITIES
17 863 5 144
8 3 35 3 38
549 84 555 523 719 206 925
IFRS conversion IFRS 31.12.2004
-5 149 -542 -9 2 -12 6 -6
808 756 742 669 073
IAS 12 Income taxes IAS 17 Leases IAS 19 Employee benefits IAS 32 and 39 Financial instruments IAS 36 Impairment of assets IFRS 3 Business combinations Total equity (IFRS)
-1 6 22 9 32
7 84 252 280 977 875 852
836 139
836 344
6 103
3 022 452 4 450
8920 452 10 552
12 110
147
12 257
23 255 35 365
-452 -305
22 803 35 060
80 393
-1 928
78 464
205 5 898
CHANGES IN EQUITY 1 000 EUR Total equity (FAS)
17 863 -4
31.12.2003
31.12.2004
46 519
38 925
4 322 85 -721
3 640 71 -588
-1 118 -11 187
-1 312 -11 187 3 303
37 901
32 852