Asiakastieto Group's Interim Report 1.1. - 31.3.2017: Trend in share of new services of net sales turned to growth

05/05/2017

Asiakastieto Group Plc_Interim Report_Q1_2017

ASIAKASTIETO GROUP PLC, STOCK EXCHANGE RELEASE 5 MAY 2017 at 1.00 P.M. EEST

Asiakastieto Group's Interim Report 1.1. - 31.3.2017: Trend in share of new services of net sales turned to growth

SUMMARY

The figures presented in this Interim Report are unaudited.

January - March 2017 in short:

-   Net sales amounted to EUR 13,8 million (EUR 12,0 million), an increase of 15,6 %.
-   Adjusted EBIT excluding non-recurring and other adjusted items was EUR 5,5 million (EUR 5,0 million), an increase of 9,3 %.
-   Operating profit (EBIT) was EUR 5,5 million (EUR 5,0 million). Operating profit included non-recurring expenses and other adjusted items of EUR 0,0 million (EUR 0,0 million).
-   The share of new products and services of net sales was 8,1 % (10,1 %). Trend in share of new services of net sales turned to growth.
-   The share of value-added services of net sales was 69,5 % (64,3 %).
-   Free cash flow amounted to EUR 3,5 million (EUR 4,0 million). The impact of non-recurring and other adjusted items on free cash flow was EUR -0,0 million (EUR -0,1 million).
-   Earnings per share were EUR 0,27 (EUR 0,25).

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

  1.1.- 1.1.- 1.1.-
EUR million 31.3.2017 31.3.2016 31.12.2016
Net sales 13,8 12,0 49,2
Net sales growth, % 15,6 13,6 12,5
Adjusted EBITDA1 6,2 5,6 21,7
Adjusted EBITDA margin, %1 44,8 47,0 44,1
Adjusted operating profit (EBIT)1 5,5 5,0 19,2
Adjusted EBIT margin, %1 39,8 42,1 39,1
New products and services share of net sales, % 8,1 10,1 7,4
Free cash flow2 3,5 4,0 17,2
Net debt to EBITDA, x 1,8 1,8 2,2

______________________________________________________________
1 Adjusted key figures are adjusted by following items: M&A related 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 2017, EUR -0,0 million for the comparative period 1 January - 31 March 2016 and EUR -0,3 million for the financial year 2016. 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.

2 The impact of adjusted items on free cash flow was EUR -0,0 million for the first quarter 1 January - 31 March 2017, EUR -0,1 million for the comparative period 1 January - 31 March 2016 and EUR -0,4 million for the financial year 2016.

JUKKA RUUSKA, CEO

"In the first quarter, Asiakastieto Group's net sales continued with a strong growth of 15,6 %. The growth was partially contributed by the late Easter, due to which there were three so-called banking days more than last year. The net sales amounted to EUR 13,8 million (EUR 12,0 million). In Asiakastieto Group, the most important source for growth are the continuous service development and new services. Therefore, I am immensely satisfied that the share of new services of the net sales turned again to growth, being now 8,1 %.

The adjusted EBIT increased by 9,3 per cent in the first quarter, totalling EUR 5,5 million (EUR 5,0 million). As planned, the increase in EBIT is slower than that of net sales, because the strongest growth in sales is focused on services, the production of which requires data to be bought outside our own database.

As stated previously, we see the year 2017 as a breakthrough for the automation of compliance activities. In the first quarter we introduced to our clients e.g. the opportunity to automatically check, whether a person is liable to tax in the United States. In the second quarter we will further expand the selection with service entities, which simultaneously intensify the compliance processes of our clients and strengthen and unify the customer experience offered."

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 5 May 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 2015, the Group had around 13 000 contractual clients. It serves several industries, the largest ones including finance and banking as well as wholesale and retail sectors and expert service companies. In 2015, the Group's net sales were EUR 43,7 million and it had 152 employees at the end of 2015. Asiakastieto Group is listed on Nasdaq Helsinki with the ticker ATG1V. More information about Asiakastieto Group is available at www.asiakastieto.fi.