FIM Group Corporation STOCK EXCHANGE RELEASE May 11, 2007
FIM GROUP CORPORATION'S PROFITABILITY IN Q1/07 WAS GOOD
Key figures for January-March 2007 (2006)
Net sales: EUR 23.2 million (21.2)
Growth in net sales: 9% (81%)
Operating profit before non-recurring stock option expenses: EUR 5.7 million
(6.2)
Operating profit margin before non-recurring stock option expenses: 25% (29%)
Operating profit: EUR 3.5 million (6.2)
Operating profit margin: 15% (29%)
Net profit: EUR 3.4 million (3.2)
Earnings per share: EUR 0.08 (0.11)
OPERATING ENVIRONMENT
Surging share prices dipped temporarily in February when investors cashed in
their profits, prompted by uncertainty about whether the long bullish streak
would hold and underlying concerns about the development of the US economy. The
global equity index rose by 1.4 percent in euro terms in Q1, and the equities
index for the world's emerging countries increased by 0.6 percent. Price trend
on the OMX Helsinki Stock Exchange was considerably stronger. The OMX Helsinki
Cap Index had risen by 8.7 percent by the end of Q1.
Also, the European economy saw robust development in Q1. The slight dip in the
stock markets temporarily slowed the growth of long interest rates. However,
when the situation subsided, European rates headed upward again. The
improvement in the economic outlook of the euro zone has supported the exchange
rate of the euro against the USD.
Trade volume on the OMX Helsinki Stock Exchange continued to soar. In Q1, trade
volume grew by 27 percent compared with the corresponding period of 2006 and
amounted to about EUR 97 billion (77). Average intra-day volume grew to over
EUR 1.5 billion.
In the first months of the year, the structured products markets were generally
very brisk and strong growth was seen.
INCOME AND FINANCIAL PERFORMANCE IN JANUARY-MARCH 2007
(comparison figures are for January-March 2006)
FIM Group's total income in January-March grew by 9 percent to EUR 23.2 million
(EUR 21.2 million in 2006).
FIM has changed its financial reporting from the beginning of 2007. Segment
reporting covers the business areas FIM Asset Management and FIM Brokerage. FIM
Investment Banking is reported as part of the group Others. The sales of
structured products were moved from investment banking division to FIM Asset
Management in the beginning of the year. Comparison figures have been adjusted
to the new reporting structure.
FIM Asset Management's total income in January-March was EUR 15.1 million
(14.5). FIM Asset Management's first quarter in 2006 was very strong. During
the first months of 2007 the growth decelerated somewhat as the markets turned
their focus into lower risk products.
FIM Brokerage's total income was EUR 8.6 million (7.1). The fee and commission
income of FIM Brokerage grew in the positive market environment compared with
the corresponding period last year.
The Group's January-March operating profit from continuous operations was EUR
5.7 million (6.2) and the operating profit margin 25 (29) per cent. FIM Asset
Management's operating profit from continuous operations EUR 4.3 million was
clearly less than in the very strong Q1 of 2006 (5.5). Operating profit was
burdened by investments in growth and launching of the Russian operations. FIM
Brokerage's operating profit from continuous operations increased in positive
market environment to EUR 1.7 million (1.4).
Due to the Glitnir transaction, the option costs for FIM's both option series
that were originally scheduled for 4 years have now been booked in the first
quarter of 2007. Operating profit after the booking for the non-recurring
option costs was EUR 3.5 million and the operating profit margin 15 per cent.
The non-recurring option costs booking in the result totaled EUR 2.2 million.
The booking of the option costs does not affect the Group's shareholders'
equity.
The Group's Q1 expenses, excluding fee and interest expenses, came to EUR 16.3
million (12.5). Expenses increased by 31 percent compared with the same period
of 2006. The greatest single factor behind the growth in expenses was the
effect of the Glitnir acquisition - announced in February - on the recognition
of stock option expenses.
The Group's taxes in the January-March period amounted to EUR 0.1 million
(2.0). Profit in January-March was EUR 3.4 million (3.2).
Earnings per share for the review period were EUR 0.08 (0.11).
BALANCE SHEET
The Group's total assets strengthened significantly compared with the
corresponding period of 2006, largely thanks to the share issue carried out in
April 2006. Total assets as of March 31, 2007 stood at EUR 150.5 million
(72.9). Total assets as of December 31, 2006 stood at EUR 142.4 million.
The Group's shareholders' equity at the end of the fiscal period was EUR 99.9
million (29.8), or EUR 2.34 per share (0.82). The acquisition of minority
interests that was carried out through exchanges of shares during 2006 was made
at fair values, and thereby brought a significant increase in the share premium
reserve. For this reason, goodwill of EUR 41.2 million was recorded in the
consolidated balance sheet. The annualized return on equity was 13.6 percent
(55.1).
The Group's equity ratio was 66.4 percent (40.8) and the Tier 1 ratio was 103.6
percent (62.8).
FIM's derivatives exposure at the end of the reporting period consisted mainly
of equity derivatives held for trading. The value of the underlying assets of
equity derivatives was EUR 37.1 million and they had a fair value of EUR -0.8
million. In addition, receivables denominated in foreign currency were hedged
with forward exchange contracts, the underlying assets of which had a value of
EUR 14.8 million, their fair value being EUR 0.3 million.
INVESTMENTS
The Group's investments in tangible and intangible assets during the review
period came to EUR 0.8 million (1.1).
PERSONNEL
The number of employees has grown greatly in recent years. In January-March
2007, the Group had an average payroll of 291 employees (235). The number of
employees at the end of March was 299 (244).
At the end of the review period, the personnel were divided by business area as
follows: FIM Asset Management, 141 persons, FIM Brokerage, 101 persons. The
number of employees working in Finland was 262, with 33 employees in Russia and
3 in Sweden. Personnel figures are stated converted to full-time staff.
CHANGES IN THE COMPANY'S MANAGEMENT
FIM Group Corporation's Board of Directors appointed Mr. Timo T. Laitinen,
M.Sc. (Eng.), as the CFO of the FIM Group as of February 15, 2007. Until that
date, the CFO was Niklas Geust, M.Sc. (Eng.), who went on his planned
sabbatical on March 1, 2007.
GLITNIR BANKI HF. ACQUIRES MAJORITY STAKE IN THE FIM GROUP
In February 2007, Glitnir banki hf. of Iceland announced its intention to
acquire the shares and stock options issued by FIM by launching a public tender
offer. In accordance with the agreement made by Glitnir and FIM Group
Corporation's 11 largest shareholders, Glitnir banki hf. acquired 68.1 percent
of the shares in FIM Group Corporation by means of transactions consummated on
March 16, 2007. The public tender offer period commenced on April 25, 2007
FIM AFTER THE GLITNIR ARRANGEMENT
The Glitnir transaction will open up new growth opportunities for FIM. Being
part of Glitnir enables FIM to accelerate some of its previously started growth
initiatives as well as seek for new growth both in Finland and abroad.
FIM Asset Management will continue to expand its product offering in Finland as
well as to build up asset management operations in Russia. New growth
opportunities after Glitnir transaction comprise of selling FIM's fund products
to other Glitnir countries and increasing investments in international sales of
spearhead FIM funds.
FIM Brokerage will continue to build up the Russian brokerage operations based
on a broader Nordic and international client base. Given that FIM-Glitnir is
the third largest broker in the Nordic countries, FIM Brokerage will
participate in developing a Glitnir-wide business model in the future.
FIM Investment Banking will benefit from becoming part of Glitnir's Nordic
team.
Since Glitnir is active and has capabilities in several business lines which
FIM has not traditionally been active in, several efforts have been launched to
assess whether all or some of these Glitnir business lines should be expanded
to Finland and potentially to Russia.
RESOLUTIONS OF FIM GROUP CORPORATION'S ANNUAL GENERAL MEETING
FIM Group Corporation's Annual General Meeting, held on March 15, 2007, adopted
the 2006 financial statements and discharged the members of the Board of
Directors and the President and CEO from liability. The Annual General Meeting
decided on the payment of dividends, the composition of the Board of Directors
and the election of the auditor.
It was resolved that a dividend of EUR 0.14 per share would be paid as proposed
by the Board of Directors, to a total of EUR 5.97 million. The dividend was
paid out on March 27, 2007.
The following persons were re-elected as members of the Board of Directors:
Niklas Geust, Vesa Honkanen, Antti Kivimaa, Risto Perttunen and Jukka Ylitalo.
However, the term of service of these members of the Board of Directors ended
when Glitnir banki hf. acquired 68.11 percent of FIM Group Corporation's shares
and voting rights. Due to this change of ownership, the Annual General Meeting
elected Bjarni Ármannsson, Frank Ove Reite and Sverrir Örn Thorvaldsson to the
Board of Directors as representatives of Glitnir banki hf. as well as re-
elected Niklas Geust and Vesa Honkanen. Their term of service started from the
transfer of ownership on March 21, 2007. At its organization meeting on March
22, 2007, the Board of Directors elected Frank Ove Reite as the Chairman.
After the change in the ownership, the majority of the members of the company's
Board of Directors do not meet the criteria of independence as set forth in the
Corporate Governance recommendation of the Helsinki Stock Exchange, the Central
Chamber of Commerce of Finland and the Confederation of Finnish Industries EK.
The Authorized Public Accountants Kim Karhu and Kaija Leppinen were re-elected
as the company's auditors. PricewaterhouseCoopers Oy, Authorized Public
Accountants, was elected as the deputy auditor, with Authorized Public
Accountant Jarmo Álen as chief auditor.
OTHER SIGNIFICANT EVENTS DURING THE REVIEW PERIOD
At its meeting of January 12, 2007, the Board of Directors of FIM Group
Corporation decided to begin preparing for the launch of retail banking
operations as part of the Group's expansion of its service offerings. FIM
submitted a license application for banking operations to the Finnish Financial
Supervision Authority during the review period.
FLAGGING NOTIFICATIONS
On February 5, 2007, FIM Group Corporation received an announcement in which
Seppo Sairanen, Markku Kaloniemi, Niklas Geust, Pekka Mölsä, Karri Toivonen,
Jussi Seppälä, Jukka Ylitalo, Antti Pohjola, Jan Forsbom, Jussi Hyöty and Janne
Holtari stated that they had signed a Commitment Letter to sell all the FIM
Group Corporation shares and the securities entitling to them in their
ownership to Glitnir banki hf. The sale of shares was carried out on March 16,
2007, after which said persons no longer own FIM Group Corporation shares. This
transaction increased Glitnir banki hf.'s holding of FIM Group Corporation's
share capital and voting rights to over 2/3.
On February 26, 2007, the company was informed that Credit Suisse Securities
(Europe) Limited's holding of voting rights in FIM Group Corporation had
exceeded one-twentieth (1/20) on February 6, 2007, and that Credit Suisse
Securities (Europe) Limited's holding corresponds to 3.57 percent of the share
capital and 5.21 percent of the voting rights of FIM Group Corporation.
On March 7, 2007, the company was informed that Credit Suisse Securities
(Europe) Limited's holding of the share capital of FIM Group Corporation had
exceeded one-twentieth (1/20) on March 2, 2007, and that Credit Suisse
Securities (Europe) Limited's holding corresponds to 5.37 percent of the share
capital and 7.85 percent of the voting rights of FIM Group Corporation.
SHARES AND SHARE CAPITAL
FIM Group Corporation's share capital as of March 31, 2007, was EUR 2,813,505.
The company's issued shares consist of one share class that is divided into a
total of 42,683,690 shares.
The trade volume of the FIM Group Corporation share on the OMX Helsinki Stock
Exchange in the January-March 2007 period was EUR 319.0 million and 39.9
million shares. Trade volume includes the block trade carried out on March 16,
2007, in which 29,071,813 shares were transferred to Glitnir banki hf. The
share registered a high of EUR 8.30 in February and a low of EUR 5.86 in
January. The volume-weighted average share price was EUR 7.99. At the end of
the reporting period on March 31, 2007, the share price was EUR 8.15 and the
company had a market capitalization of EUR 347.9 million. The company had in
its possession a total of 36,000 treasury shares as of March 31, 2007, and they
had a market value of EUR 0.3 million. The nominal value of the treasury shares
at the end of the reporting period was EUR 2373. The share of all shares and
votes was below 0.1 per cent.
RISK MANAGEMENT
Risk management is an essential part of internal control, and its aim is to
reduce the probability of unforeseeable losses or a threat to the reputation of
FIM. Risk management covers all material risks connected with FIM's operations,
such as operational risks, market risks, liquidity and financing risks, credit
risks and strategic risks.
The management of operational risks is part of the FIM Group's overall risk
management, and it generally involves minimizing risks. In addition to
preventive work that is carried on to avert operational risks, the FIM Group
seeks to maintain sufficient insurance coverage for the purpose of
compensating, say, loss or damage resulting from malfeasance, intrusion into
information systems, or other criminal actions. Continuity plans have been put
in place to cope with major disturbances to operations.
Limits and other operational instructions have been set for the taking of
market risks, bearing in mind the sufficiency of equity and capital adequacy
planning within the FIM Group.
To support liquidity management, FIM Securities Ltd has the possibility, in the
form of credit extended by customers (so-called cash account customers), to
improve its liquidity, and, additionally, the company has credit facilities
that have been agreed with banks and can be drawn down as the need arises. In
practice, despite the increase in trading, it has been possible to attend to
liquidity management mainly without having recourse to bank credit facilities.
Across FIM units, the contractual counterparties in accordance with the adopted
definition of credit risk are customers and other trading counterparties as
well as other partners in cooperation. In line with the lending policy approved
by the Board of Directors, FIM carries on only lending activities in which risk-
taking can be limited to a small amount and the risk is manageable. Lending is
primarily to private individuals.
EVENTS AFTER THE REPORT PERIOD
Due to trades concerning the shares of FIM Group Corporation executed on March
16, 2007, Glitnir banki hf. is obligated to make a public tender offer for FIM
Group Corporation's shares and options. The tender offer is made for all shares
issued by FIM that are not owned by FIM or any company belonging to the FIM
group of companies.
On April 23, 2007, the Finnish Financial Supervision Authority approved the
tender offer document relating to the tender offer. The tender offer document
is available in Finnish at FIM Securities Ltd, Pohjoisesplanadi 33 A, 00100
Helsinki, on April 25, 2007 or from the Internet address
http://ostotarjous.fim.com. In addition to this the offer document is available
at OMX Way, Fabianinkatu 14, 00130 Helsinki.
The tender offer will be valid from April 25, 2007 at 10.00 am (Finnish time)
until May 16, 2007 at 4.30 pm (Finnish time), during which period FIM's
shareholders and holders of option rights may accept the tender offer unless
the offer period is extended or the extended period discontinued as set forth
in the offer terms.
The offeror reserves the right to extend the offer period. The offer period may
be no longer than 10 weeks unless applicable legislation provides otherwise.
The offeror will release information about the extension of the offer period no
later than on the first banking day following the expiration of the offer
period.
NEAR-TERM OUTLOOK
FIM Asset Management's assets under management on April 30, 2007, totalled
about EUR 3 179 million, an increase of 2 percent since April 30, 2006.
FIM Brokerage's market share of euro-denominated trade volume on the OMX
Helsinki Stock Exchange was 3.8 percent in January-April. Based on the number
of trades, the market share was 3.4 percent.
FIM's and Glitnir's brokerage operations' combined market share in April of
euro-denominated trade volume on OMX Helsinki Stock Exchange was 5.7 per and of
number of trades 6.1 per cent.
The trend in FIM's operations during the first months of 2007 has proceeded as
expected and the growth in full-year net sales is expected to reach the long-
term growth target of 20 percent. Full-year operating profit is estimated to
exceed that reported for 2006.
Cyclical sensitivity is typical of investment service operations and FIM's
business operations are also characterized by a marked dependence on the trend
in the global securities markets. In the short term, performance fees in
discretionary asset management are the type of income that is the most
sensitive of all to both positive and negative moves in the market.
REVIEW OF THE BUSINESS UNITS
FIM Asset Management
The sales of structured products were moved from investment banking division to
FIM Asset Management in the beginning of the year. Comparison figures have been
adjusted to the new reporting structure.
Key figures (million euros except for personnel and client figures)
1-3/07 1-3/06 Change 1-12/06
Total income 15.1 14.5 4 % 57.5
Operating profit 3.3 5.5 -40 % 19.9
Operating margin, % 22 % 38 % 35 %
Personnel, average 138 103 34 % 120
Assets under 3 076 3 049 1 % 2 966
management (end of
period)
Assets under 1 948 1 981 -2 % 1 865
management, mutual
funds (end of
period)
Assets under 1 261 1 478 -15 % 1 297
management, equity
funds (end of
period)
Market share, 3.0 % 3.9 % 3.1 %
mutual funds (end
of period)
Market share, 5.7 % 7.8 % 6.0 %
equity funds (end
of period)
Net subscription, 24 100 -70
mutual funds
Net subscription, -81 36 -170
equity funds
Number of unit 53 868 53 022 1.6 % 55 113
holders, mutual
funds (end of
period)
Number of clients 2 446 2390 2.3 % 2 444
in discretionary
asset management
and discretionary
fund management
(end of period)
Q1 2007 compared with Q1 2006
FIM Asset Management's total income in the first quarter was EUR 15.1 million
(14.5). The growth in total income compared to very strong Q1 2006 was 4
percent.
Operating profit from the continuous operations amounted to EUR 4.3 million
(5.5) in January-March. The operating profit was burdened by strong investments
into growth and launching of the Russian operations. Due to this, the operating
profit was clearly less than in very strong Q1 in 2006. Operating profit after
non-recurring stock option expenses was EUR 3.3 million. FIM Asset Management's
average payroll 138 grew by 34 percent on the same period of last year (103).
At the end of the reporting period the payroll was 141.
The amount of assets under management increased again to slightly over EUR 3
billion at the end of the review period. They were on a par with Q1 2006 but
had risen by EUR 110 million since the end of 2006. The amount of assets under
management is recovering from the dip that was caused by the Q2 market
correction in 2006. Net subscriptions to mutual funds amounted to EUR 24
million in the past quarter (100).
Of FIM's 12 Morningstar-rated balanced and equity funds, 5 funds had five stars
at the end of the year. Within discretionary asset management and fund
management, successful allocation decisions generally led to a return that
exceeded the global equity markets.
Preparations for FIM's asset management and investment banking operations in
Russia are progressing in line with plans. At the beginning of 2007, the FSFR,
Russia's financial markets regulatory authority, approved the statutes of FIM's
first local funds. Operations of the funds FIM Russian Equities, FIM Russian
Portfolio and FIM Russian Bonds are expected to begin during the second quarter
of 2007. The funds are marketed primarily in Russia but are also open to
international customers.
Sales of structured products were up 46 percent on the corresponding period of
the previous year, amounting to EUR 67 million in Q1.
Collaboration with Glitir's asset management services has been started during
the past quarter. Toward the end of the year, this collaboration is expected to
open new sales opportunities to FIM's products on the international markets as
well as synergies in offering asset management services. As part of this
development effort, the mutual fund business is presently preparing the
registration of mutual funds in Luxembourg.
FIM Brokerage
Key figures (EUR million except for personnel)
1-3/07 1-3/06 Change 1-12/06
Total income 8.6 7.1 21 % 27.7
Operating profit 1.0 1.4 -28 % 2.4
Operating margin, % 12 % 20 % 9 %
Personnel, average 100 89 12 % 96
Market share, 4.0 % 3.0 % 3.0 %
turnover in euros
(OMX Helsinki)
Market share, number 3.5 % 3.4 % 3.4 %
of transactions (OMX
Helsinki)
Q1 2007 compared with Q1 2006
FIM Brokerage's total income in January-March came to EUR 8.6 million (7.1).
Total income was up 21 percent on the corresponding period of the previous
year. The market for equity sales has remained good and the operations of FIM
Brokerage saw growth in all customer segments.
FIM Brokerage's operating profit from continuous operations for the January-
March period was EUR 1.7 million (1.4). A good market situation contributed to
the positive trend in operating profit. On the other hand, operating profit is
still burdened by the development of operations in Russia. Operating profit
after non-recurring stock option expenses was EUR 1.0 million. FIM Brokerage's
average payroll 100 grew by 12 percent on the same period of last year (89). At
the end of the reporting period the payroll was 101.
FIM's market share of turnover in euros on the OMX Helsinki Stock Exchange was
4.0 percent, while market share in terms of number of transactions was 3.5
percent. In terms of FIM's and Glitnir's combined turnover in euros, their
securities brokerage units were the second largest broker on the OMX Helsinki
Stock Exchange in Q1. Total market share was 6.6 percent. The combined market
share of the two companies on the OMX Nordic List was 6.0 percent, making them
the second-largest broker on that list as well.
Others
Of FIM's business areas FIM Investment Banking focuses on advisory services in
equity capital market transactions and in mergers and acquisitions. As from the
beginning of 2007, the business area will no longer be reported on separately.
Instead, it is included in the Others group, which primarily comprises the
administration of the parent company. In the tables annexed to the Interim
Report, reporting has been adjusted to correspond to current practices as from
Q1 2006.
In the January-March period, the Others group had net sales of EUR 12.8 million
(6.0) and operating profit of EUR 10.2 million (3.8). Operating profit
increased due to dividend payment to the parent company during the reporting
period. The dividends totaled about EUR 11 million. The average payroll in
January-March was 54 (44) and at the end of the period 58.
This report has been prepared in accordance with IFRS recognition and
measurement principles and the same accounting policies as were applied in the
financial statements for 2006, with the exception of performance fees, which
are not periodized in the Group's first and third quarters. In accordance with
the Group's accounting policies, performance fees are recognized as income semi-
annually on the last day of June and December at the end of the report and
charging period under each agreement, at which time the amount of income can be
determined reliably.
This report has not been prepared in compliance with all the requirements of
IAS 34 Interim Financial Reporting.
The Group has adopted the following changes in standards as of January 1, 2007:
IFRS 7 Financial Instruments: Disclosures. The standard will have an effect
mainly on the notes to the financial statements.
IAS 1 (Amendment) Capital Disclosures. The amendment of the standard does not
have an effect on this interim report.
This interim report is unaudited.
Helsinki, May 11, 2007
FIM Group Corporation
Board of Directors
TABLES
FIM GROUP INCOME
STATEMENT (IFRS)
1.1. - 1.1. - 1.1.-
31.3.2007 31.3.2006 31.12.2006
Thousand euros
Fee and commission income 22 142 19 734 77 322
Net gains (losses) from 332 982 2 099
securities trading
Dividend income 0 0 0
Interest income 702 454 2 264
Gains less losses from -31 36 147
available-for-sale
financial assets
Other operating income 10 31 214
TOTAL INCOME FROM 23 155 21 237 82 046
INVESTMENT SERVICES
Fee and commission -3 096 -2 153 -9 514
expenses
Interest expenses -224 -353 -910
General administrative
expenses
Employee benefits
expenses
Wages and salaries -6 243 -5 542 -22 970
Social security costs
Pension costs -1 020 -906 -3 413
Other personnel costs -414 -325 -1 555
Share-based payments -2 396 -52 -52
Other administrative -4 250 -3 637 -15 775
expenses
Depreciation, -734 -549 -2 508
amortization and
impairment charges
Other operating expenses -1 262 -1 489 -6 234
Operating profit 3 515 6 230 19 114
PROFIT BEFORE TAX 3 515 6 230 19 114
Income taxes -113 -1 951 -5 766
PROFIT FOR THE PERIOD 3 402 4 279 13 348
Equity holders of the 3 402 3 223 11 607
Company
Minority interest* 0 1 055 1 741
Earnings per share
attributable to equity
holders of the company
Basic and diluted 0.08 0.11 0.32
earnings per share, EUR
Weighted average number 42 648 29 439 36 763
of shares during the
period, thousands
* after August 15, 2006
no minority interests
FIM Group Corporation Consolidated 31.3.2007 31.3.2006 31.12.2006
Balance Sheet (IFRS)
Thousand euros
ASSETS
Cash and cash equivalents 32 359 16 332 24 089
Due from customers 8 074 8 338 5 254
Repayable on demand 0 0 5 904
Shares and participations
Securities trading 29 375 18 758 34 354
Available-for-sale investments 991 1 697 1 084
Derivative financial instruments 915 2 789 1 473
Investments in associates 0 0 0
Intangible assets
Goodwill 41 163 57 41 163
Other intangible assets 3 159 2 973 3 186
Tangible assets
Shares in property investment companies 0 17 0
Other tangible assets 4 038 3 366 3 914
Other assets 15 779 9 578 9 151
Accrued income and prepayments 12 784 9 036 12 622
Deferred tax receivables 1 888 0 189
TOTAL ASSETS 150 526 72 941 142 384
EQUITY AND LIABILITIES
EQUITY
Equity attributable to equity holders of
the Company
Share capital 2 814 2 000 2 814
Share premium 65 493 645 65 493
Treasury shares -35 -811 -35
Translation difference -5 63 3
Fair value reserve 10 67 8
Other reserves 0 2 482 0
Retained earnings 28 216 17 101 20 177
Profit for the period 3 402 3 223 11 607
99 894 24 771 100 066
Minority interest 0 4 993 0
Total equity 99 894 29 764 100 066
LIABILITIES
Due to banks and financial institutions 0 312 0
Due to customers
Repayable on demand 2 603 4 129 2 593
Derivative financial instruments and 4 976 6 598 11 414
other trading liabilities
Other liabilities 34 383 20 073 17 264
Accrued expenses and deferred income 8 669 12 010 11 048
Deferred tax liabilities 0 55 0
Total liabilities 50 632 43 178 42 319
TOTAL EQUITY AND LIABILITIES 150 526 72 941 142 384
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Share Share Other Treasury Translatio
capital premium reserves shares n
difference
1000 eur
Equity at December 2 000 645 2 482 -811 28
31, 2005
Net gains (losses)
from available-for-
sale investments
Currency translation 35
adjustments
Listing expenses,
net
Profit for the
period
Minority's share of
the profit for the
period
Total recognized 35
income for the
period
Dividend for year
Change in minority
interest
Increase in share
capital
Transfers in equity
Purchase/sales of
own shares
Taxes on equity
Equity at March 31, 2 000 645 2 482 -811 63
2006
Fair Retained Total Minority Total
value earnings equity interest equity
reserve attrib-
utable to
equity
holders
of the
Company
Equity at December 67 22 349 26 760 5 628 32 388
31, 2005
Net gains (losses) 1 1 1 2
from available-for-
sale investments
Currency translation -19 15 15
adjustments
Listing expenses,
net
Profit for the 3 223 3 223 1 055 4 279
period
Minority's share of
the profit for the
period
Total recognized 1 3 204 3 239 1 057 4 296
income for the
period
Dividend for year -5 228 -5 228 -1 505 -6 733
Change in minority -187 -187
interest
Increase in share
capital
Transfers in equity
Purchase/sales of
own shares
Taxes on equity
Oma pääoma 31.3.06 67 20 324 24 771 4 993 29 764
Share Share Other Treasury Translatio
capital premium reserves shares n
difference
1000 eur
Equity at December 2 814 65 493 0 -35 3
31, 2006
Net gains (losses)
from available-for-
sale investments
Currency translation -7
adjustments
Listing expenses,
net
Profit for the
period
Minority's share of
the profit for the
period
Total recognized -7
income for the
period
Dividend for year
Change in minority
interest
Increase in share
capital
Transfers in equity
Equity at March 31, 2 814 65 493 0 -35 -5
2007
Fair Retained Total Minority Total
value earnings equity interest equity
reserve attrib-
utable to
equity
holders
of the
Company
Equity at December 8 31 784 100 066 0 100 066
31, 2006
Net gains (losses) 2 2 2
from available-for-
sale investments
Currency translation 7 0 0
adjustments
Listing expenses, 0 0
net
Profit for the 3 402 3 402 3 402
period
Minority's share of 0 0
the profit for the
period
Total recognized 2 3 409 3 403 0 3 403
income for the
period
Dividend for year -5 971 -5 971 -5 971
Change in minority 2 396 2 396 2 396
interest
Increase in share 0 0
capital
Transfers in equity 0 0
Equity at March 31, 10 31 618 99 894 0 99 894
2007
FIM GROUP CORPORATION CONSOLIDATED CASH
FLOW STATEMENT
1000 eur
1.1. - 1.1. -
31.3.2007 31.3.2006
Net cash from operations (A) 13 973 6 368
Net cash used in investing activities (B) -774 -1 085
Net cash used in financing activities:
Dividends paid and other profit -4 928 -7 032
distribution
Net cash used in financing activities (C) -4 928 -7 032
Change in liquid assets (A+B+C) 8 270 -1 748
increase (+) / decrease (-)
Cash and cash equivalents at the 24 089 18 080
beginning of the period
Cash and cash equivalents at the end of 32 359 16 332
the period
FIM GROUP QUARTERLY 1-3/07 10-12/06 7-9/06 4-6/06 1-3/06
INCOME STATEMENT
Thousand euros
Fee and commission 22 142 23 039 13 607 20 942 19 734
income
Net gains/losses 332 632 258 227 982
from securities
trading
Dividend income 0 0 0 0 0
Interest income 702 797 523 490 454
Gains less losses -31 0 -2 113 36
from available-for-
sale investments
Other operating 10 19 99 65 31
income
TOTAL INCOME FROM 23 155 24 486 14 485 21 838 21 237
INVESTMENT SERVICES
Fee and commission -3 096 -3 289 -1 760 -2 312 -2 153
expenses
Interest expenses -224 -231 -188 -138 -353
General
administrative
expenses
Employee benefits
expenses
Wages and salaries -6 243 -6 804 -4 331 -6 293 -5 542
Social security
costs
Pension costs -1 020 -864 -785 -857 -906
Other personnel -414 -433 -385 -413 -325
costs
Share-based payments -2 396 0 0 0 -52
Other administrative -4 250 -4 530 -3 477 -4 131 -3 637
expenses
Depreciation, -734 -701 -650 -608 -549
amortization and
impairment charges
Other operating -1 262 -1 352 -1 916 -1 477 -1 489
expenses
Operating profit 3 516 6 281 994 5 610 6 230
PROFIT BEFORE TAX 3 516 6 281 994 5 610 6 230
Income taxes -113 -1 898 -286 -1 631 -1 951
PROFIT FOR THE 3 402 4 383 708 3 979 4 279
PERIOD
Equity holders of 3 402 4 383 376 3 624 3 223
the Company
Minority interest* 0 0 332 354 1 055
Earnings per share
attributable to
equity holders of
the company
Basic and diluted 0,08 0,10 0,01 0,10 0,11
earnings per share,
EUR
Weighted average 42 648 42 648 39 489 35 299 29 439
number of shares
during the period,
thousands
* after August 15,
2006 no minority
interests
SEGMENT INFORMATION 1-3/07 10-12/06 7-9/06 4-6/06 1-3/06
Thousand euros
Asset Management
Total income 15 113 17 511 9 495 15 981 14 480
Operating profit 3 251 6 577 2 089 5 801 5 460
Brokerage
Total income 8 577 8 391 5 534 6 665 7 088
Operating profit 1 039 432 280 270 1 438
Others
Total income 12 788 3 043 1 385 3 153 6 047
Operating profit 10 222 -725 -1 395 -389 3 804
Eliminations
Total Income -13 324 -4 458 -1 930 -3 961 -6 378
Operating profit -10 997 -6 21 -71 -4 472
Total
Total Income 23 155 24 487 14 484 21 838 21 237
Operating profit 3 515 6 278 995 5 611 6 230
FEE AND COMMISSION
INCOME
Fee and commission 6 402 4 739 3 568 4 433 4 318
income from brokerage
Transaction-based fees 5 120 4 493 1 009 5 693 4 184
from asset management
Fixed management fees 8 548 7 652 7 578 8 020 8 840
from mutual funds
Performance based fees 202 118 41 93 75
from mutual funds
Fixed management fees 580 765 487 652 569
from discretionary
asset management
Performance based fees 43 3 753 -11 588 199
from discretionary
asset management
Advisory fees 100 58 26 52 295
Custody fees 661 605 578 545 667
Other fee and 96 371 170 588 185
commission income
Fees from foreign 390 483 160 280 401
exchange transaction
executed on behalf of
clients
Total 22 142 23 038 13 608 20 942 19 733
KEY FIGURES DESCRIBING FINANCIAL
DEVELOPMENT
1-3/2007 1-3/2006 1-12/2006
Return on equity, annualised % 13.6 % 55.1 % 20.2 %
Cost/income ratio 0.85 0.71 0.77
Basic and diluted earnings per share, EUR 0.08 0.11 0.32
Book value per share, EUR (end of period) 2.34 0.82 2.34
Equity ratio, % (end of period) 66.4 % 40.8 % 70.3 %
Tier 1 ratio, % (end of period) 103.6 % 62.8 % 115.7 %
Return on equity, annualised %
operating profit/loss - taxes x 100
---------------------------
Total shareholders' equity (including
minority interest)
(average from start and end of period)
Cost/income ratio
Interest expenses + Fee and commission
expenses + administrative expenses +
depreciation + rents + other operating
expenses
---------------------------
Total income from investment services
Basic and diluted earnings per share, EUR
Profit for the period attributable to
equity holders of the Company
---------------------------
Weighted average number of shares
Book value per share, EUR
Total shareholders' equity (excluding
minority interest)
---------------------------
Number of shares at period-end
Equity ratio, %
Total shareholders' equity (including
minority interest) x 100
---------------------------
Balance sheet total
Tier 1 ratio, % =
Core capital (including minority interest)
x 100
---------------------------
Total risk weighted assets
FIM Group Corporation
Risto Perttunen
CEO
For additional information,
please contact:
Risto Perttunen, CEO, tel. +358 9
6134 6303
Timo T. Laitinen, CFO, tel. +358
9 6134 6525
Distribution:
Helsinki Stock Exchange
The main media
www.fim.com
FIM is a growing investment
services group that offers asset
management, brokerage and
investment banking services for
private individuals and
organizations. Since March 2007
FIM is part of Icelandic
financial group Glitnir
(www.glitnirbank.com). In
addition to the head office in
Helsinki, FIM has regional
offices in Espoo, Jyväskylä,
Kuopio, Lahti, Oulu, Riihimäki,
Tampere, Turku and Vaasa. FIM
also operates in Stockholm and
Moscow. The company had net sales
in 2006 of EUR 82.0 million, and
it posted operating profit of EUR
19.1 million. FIM had a payroll
of 284 employees at the end of
2006. www.fim.com