Asiakastieto Group's Interim Report 1.1. - 31.3.2016: Quarter of strong growth

04/05/2016

Asiakastieto Group_Interim Report_Q1_2016

Asiakastieto Group Plc, stock exchange release 4 May 2016, 1.00 P.m. EEST

Asiakastieto Group's Interim Report 1.1. - 31.3.2016: Quarter of strong growth

SUMMARY

The figures presented in this Interim Report are unaudited.

January - March 2016 in short:

- Net sales amounted to EUR 12,0 million (EUR 10,5 million), an increase of 13,6 %.
- Adjusted EBIT excluding non-recurring and adjusted items was EUR 5,0 million (EUR 4,3 million), an increase of 17,7%.
- Operating profit (EBIT) was EUR 5,0 million (EUR 2,1 million). Operating profit included non-recurring expenses and adjusted items of EUR 0,0 million (EUR 2,2 million).
- The share of new products and services of net sales was 10,1 % (7,2 %)1.
- The share of value-added services of net sales was 64,3 % (57,9 %).
- Free cash flow amounted to EUR 4,0 million (EUR 3,3 million). The impact of non-recurring and adjusted items on free cash flow was EUR -0,1 million (EUR -1,4 million).
- Earnings per share were EUR 0,25 (EUR 0,09).

Future outlook

Asiakastieto Group expects its net sales to exceed on annual level the last year's level. Growth of sales has been faster than forecasted and it will have a positive effect in Group's profitability and therefore 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

    1.1.- 1.1.- 1.1.-
EUR million   31.3.2016 31.3.2015 31.12.2015
Net sales   12,0 10,5 43,7
Net sales growth, %   13,6 1,6 5,6
Adjusted EBITDA2   5,6 4,9 20,5
Adjusted EBITDA margin, %2   47,0 46,2 47,0
Adjusted operating profit (EBIT)2   5,0 4,3 18,3
Adjusted EBIT margin, %2   42,1 40,6 41,8
New products and services share of net sales, %1   10,1 7,2 8,6
Free cash flow3   4,0 3,3 13,8
Net debt to EBITDA, x   1,8 3,0 2,4

___________________________________________________________________
1 The method used for calculating the share of new products and services, the comparative figures for 1 January - 31 March 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 8,0 % for the first quarter 1 January - 31 March 2016, 4,8 % for the comparative period 1 January - 31 March 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 first quarter 1 January - 31 March 2016, EUR -2,2 million for the comparative period 1 January - 31 March 2015 and EUR -2,5 million for the financial year 2015.

3 The impact of adjusted items on free cash flow was EUR -0,1 million for the first quarter 1 January - 31 March 2016, EUR -1,4 million for the comparative period 1 January - 31 March 2015 and EUR -2,9 million for the financial year 2015.

JUKKA RUUSKA, CEO

"Asiakastieto Group's financial year 2016 started with a quarter of strong growth in net sales, 13,6 %, accrued from different sources. The most important component in the growth was again our innovative ability to produce new services, because the share of new services of the net sales increased to 10,1 per cent. Our sales were also supported by the intensification of the business of our customer companies, i.e. volume development. In addition, an even bigger part of the net sales (64,3 %) consisted of value-added services.

Asiakastieto Group's net sales amounted to EUR 12,0 million (EUR 10,5 million), of which the share of new services was 10,1 % (7,2 %). The net sales increased in all product segments, but most prominently in the Consumer Information services. Our services are scalable, and thus the income grew faster than expenses. The profitability improved in the first quarter of 2016, the adjusted net operating profit being EUR 5,0 million (EUR 4,3 million).

We see the globalization of economics as an ever strengthening trend, the impacts, but above all the prospects of which are within reach of a growing number of Finnish companies. Making use of the internationalization opportunities requires that company information is available from all over the world in the same format, in which the companies are accustomed to use it. Asiakastieto Group will invest strongly in the availability of this global data in 2016."

FUTURE OUTLOOK

Asiakastieto Group expects its net sales to exceed on annual level the last year's level. Growth of sales has been faster than forecasted and it will have a positive effect in Group's profitability and therefore 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 4 May 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