Stock Exchange Release 8 May 2003, at 9 am

Transcription

1 Sponda Plc Stock Exchange Release 8 May 2003, at 9 am Interim Report January-March 2003 SPONDA S FIRST QUARTER RESULT AS EXPECTED Sponda Group recorded a first-quarter net profit of EUR 6.9 (79.5) million. Total revenue, derived from rental income, was EUR 25.3 (26.2) million. The operating profit was EUR 14.6 (82.1) million. First-quarter earnings per share (EPS) were EUR 0.09 (0.98). Financial income and expenses amounted to EUR 5.4( 0.2) million. Net operating income totalled EUR 18.6 (19.3) million. The book value of the property portfolio was EUR 1.0 billion. Shareholders equity per share was EUR 6.93(31 Dec. 2002: EUR 6.81). Financing Interest-bearing net debt amounted to EUR million (EUR million on 31 Dec. 2002) and the equity ratio was 52.5 % (52.9 % on 31 Dec. 2002). The average maturity of Sponda s credit lines was 3 years and the average interest rate was 4.8 %. Sponda had EUR 133 million in unused credit facilities. During the review period, the company increased its interest rate hedging for the loan portfolio by making five-year interest rate swaps for capital of EUR 70 million. This increased the average interest period to 2.6 years. Business conditions The vacancy rate for office premises in the Helsinki Metropolitan Area (HMA) has risen and now stands at 5.7 % for the whole of the Helsinki Metropolitan Area. The vacancy rate is highest in Espoo, 8.6 %. Demand for retail and logistics premises has remained stable and their vacancy rate has stayed low. Leasing activities Net operating income from Sponda s properties totalled EUR 18.6 (19.3) million, of which 50 % was derived from Helsinki CBD, 21.5 % from Helsinki Metropolitan Area, 17.2 % from Logistics Properties and 11.3 % from the rest of Finland. The economic occupancy rate of Sponda s entire property portfolio at the end of March was 89.7 % (31 December 2002: 90.3 %). On 31 March 2003 the economic occupancy rate of Sponda s properties in Helsinki CBD was 92.9 % (31 December 2002: 91.9 %) and net operating income totalled EUR 9.3 million. The same figures for Sponda s other business areas were as follows: Helsinki Metropolitan Area 82.7 % (83.6 %) and EUR 4.0 million, Logistics Properties 88.1 % (92.1 %) and EUR 3.2 million, and Sponda s properties in the rest of Finland 93.3 % (94.7 %) and EUR 2.1 million. Property purchases and sales Sponda did not purchase any properties during the first three months of the year. Sponda sold part-owned properties during the period for altogether EUR 2.5 million, recording a profit on these transactions of EUR 0.3 million. Personnel The Sponda Group had 52 (51) employees on average between January and

2 March 2002, which included 51 (48) employed by the parent company Sponda Plc. Personnel numbered 52 (50) on 31 March, including 51 (49) in the parent company. Group structure Sponda Group comprises the parent company and its wholly owned subsidiaries. With the exception of Tamsoil Oy, these are mutual property companies. Share performance Sponda s share price rose at the end of the reporting period to the same level as in the previous period and the closing price at the end of March was EUR The average price between January and March was EUR 5.40, the lowest price being EUR 5.25 and the highest price EUR Sponda s market capitalization at the close of the period was EUR 450 million. Following the dividend payment on 11 April 2003, the share price was EUR Purchase of own shares By 31 March 2003 Sponda had purchased altogether 3,000,000 of its own shares for EUR 16.4 million. The average purchase price was EUR 5.45 per share, the highest being EUR 6.00 and the lowest EUR The aggregate nominal value of the shares was EUR 3,000,000 euros and they represented 3.7 % of the total number of shares and voting rights. These 3,000,000 shares were annulled by the decision of the Annual General Meeting on 8 April The reduction in share capital was entered in the Trade Register on 10 April Decisions of Sponda Plc s Annual General Meeting held on 8 April 2003 Sponda Plc s Annual General Meeting approved the consolidated and parent company s financial statements for the year 2002 and discharged the company s officers from liability for the financial year. The meeting carried the Board of Directors proposal to pay a dividend of EUR 0.90 per share on the financial year The Meeting decided to re-approve its decision to issue convertible bonds as previously decided by the AGM on 27 March 2000 and on the same conditions. Based on this convertible bond, the Company s share capital may increase by at most 1,890,000 euros and at most 1,890,000 shares. A convertible bond loan totalling EUR was offered to personnel and Tamsoil Oy and it was altogether subscribed by them. The loan was issued in lots of three bonds marked A, B and C, the minimum subscription being EUR Bond A may be converted into shares between 28 April 2003 and 28 April 2006, Bond B between 28 April 2004 and 28 April 2006, and Bond C between 28 April 2005 and 28 April Each EUR Bond may be converted into 500 Sponda Plc shares. Subscribers are required to pay a conversion price when converting their bonds into shares. The conversion price is EUR 5.38 per share for A bonds, EUR 5.89 per share for B bonds and EUR 6.39 per share for C bonds. The conversion price will be reduced by annual dividends. The shares carry dividend rights for the financial period during which the conversion takes place.

3 The Meeting decided to reduce the share capital by at most EUR by annulling the Sponda shares held by the company. The Meeting authorized the Board of Directors for one year from the AGM to purchase at most 3,500,000 of the company s own shares using distributable funds, provided that after the purchase the aggregate nominal value of the shares owned by the Company and its subsidiary companies, or the voting rights carried by these shares, does not exceed five (5) percent of the Company s total share capital or the voting rights carried by all the shares. The Meeting authorized the Board of Directors for one year from the AGM to surrender the company s shares purchased by the company. The Board may surrender at most 3,500,000 shares purchased by the company. Composition of the Board of Directors The AGM held on 8 April 2003 re-elected the following to the Board of Directors: Heikki Bergholm, President; Maija-Liisa Friman, President, Vattenfall Oy; Jarmo Laiho, Head of Group Finance and Senior Vice President, Nordea AB (publ); Harri Pynnä, Legal Counsel, Fortum Oyj; Anssi Soila, MSc (Eng., Econ.); and Jarmo Väisänen, Financial Councellor, Ministry of Finance. The Board elected Anssi Soila as its Chairman and Jarmo Väisänen as Deputy Chairman. Auditors The meeting appointed Sixten Nyman APA and KPMG Wideri Oy Ab as the company s auditors, and Ari Viitala APA as the deputy auditor. Subsequent events Sponda sold an approx m2 office building at Kellonportinkatu 2 in Tampere for EUR 8 million in April 2003, and will record a profit of EUR 2.5 million on this transaction in the second quarter. Prospects Economic growth is forecast to remain slow during Demand for leased business premises is expected to decline, but Sponda s result from leasing operations in 2003 should still stay at 2002 levels. 8 May 2003 Sponda Plc Board of Directors The terms Sponda, the Group, or the company refer to the entire Sponda Group. The term Sponda Plc refers to the Group s parent company. The figures in this interim report are unaudited. SPONDA PLC CONSOLIDATED INCOME STATEMENT 1 January-31 March /03 1-3/ /02 MEUR Total revenue Expenses from leasing operations

4 Gross profit Sales and marketing expenses Administrative expenses Other operating expenses Other operating income Operating profit Financial income and expense Profit before extraordinary items and taxes Income taxes Net income for the year CONSOLIDATED BALANCE SHEET MEUR ASSETS 31 March March Dec. 02 Non-current assets Intangible assets Tangible assets Land and water Buildings Machinery and equipment Other tangible assets Advance payments and work in progress Investments Holdings in assoc. companies Own shares Other investments Non-current assets, total Current assets Inventories Trade receivables Other investments Cash and bank deposits Current Assets, total ASSETS, TOTAL SHAREHOLDERS EQUITY AND LIABILITIES

5 Shareholders equity Long-term liabilities Short-term liabilities Liabilities, total SHAREHOLDERS EQUITY AND LIABILITIES, TOTAL INTEREST BEARING DEBT CONTINGENT LIABILITIES Debt covered by mortgages on real estate (MEUR) 31 March March Dec 02 Loans from financial institutions Assets pledged Mortgages pledged as collateral, total Rental liabilities Assets pledged Interest derivatives Interest rate swap contracts, notional value Interest rate swap contracts, market value Interest rate cap contracts, notional value Interest rate cap contracts, market value KEY RATIOS 31 March March Dec 02 Shareholders equity per share, EUR ,81 Equity ratio, % ,9 Earnings per share, EUR ,97 Gearing, % Consolidated Cash Flow Statement MEUR 1-3/ /02 Cash flow from operating activities Operating profit Adjustments to operating profit Change in net working capital Interest received Interest paid and other payments Dividends received Income taxes paid Net cash from operating activities

6 Cash flow from investing activities Investments in other investments Investments in tangible and intangible assets Group companies sold Associated companies sold Proceeds from sale of other investments Profits from sale of tangible and intangible assets Loans granted Net cash from investing activities Cash flow from financing activities Buybacks of own shares Long-term loans, repayment of principal Short-term loans raised/ repayment of principal Dividends paid Cash flow from financing activities Change in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Changes in Fixed Assets and loans MEUR 1-3/ /02 Changes in Fixed Assets Book value on 1 Jan Increases Group companies divested Decreases and transfers Depreciation Book value on 31 Dec Changes in Loans Long-term loans Short-term loans At beginning of period Loans taken Repayment of loans At end of period

7 The figures in this Financial Statements Bulletin are unaudited.