DigiPlex Fet AS ( the Company ) Management commentary For the quarter ended 31 March Registration no

Transcription

1 ( the Company ) Management commentary For the quarter ended 31 March 2015 Registration no BACKGROUND This report should be read in conjunction with the Company s 2014 audited financial statements dated 28 April As at the date of this report, the 2014 financial statements were readily available for download from the Oslo Børs website. The enclosed financial statements are the condensed interim results for the quarter ended 31 March These are not a full set of accounts and have not been audited. UPDATE FOR THE QUARTER The Company successfully delivered the first two phases (each 700m 2 of white space) of the data centre to EVRY AS ( EVRY ) on 19 January 2015 and 13 March As a result the Company is now managing two different components; being the construction of the remaining four phases and the operation of the phases delivered. We note the following in this regard: The Company continued to drawdown from the proceeds of the NOK 500 million bonds issued on 11 June 2014 to finance the construction of the facility; and remains adequately funded to meet its contractual obligations The Company currently remains on target to deliver the third of its six scheduled phases of 700 m 2 each to EVRY in Q INCOME STATEMENT AND STATEMENT OF FINANCIAL POSITION Following the successful delivery of the two phases in the first quarter of 2015, the Company has commenced to receive operational income and incur associated operational expenses. Notwithstanding, operational set up costs continue to be incurred in preparing the business for the handover of the remaining phases. Operating revenues totalled NOK 3.0 million, and operating expenses totalled NOK 5.1 million, which comprised of NOK 3.1 million of operational, management and accounting support costs and NOK 2.0 million of personnel costs. A charge of NOK 1.5 million was made to reflect depreciation of the phases delivered to EVRY. In light of the above, the operating loss for the quarter come in at NOK 3.6 million which resulted in a tax benefit of NOK 1.0 million (applying the corporate tax rate of 27%). Total assets increased by NOK 35.0 million which was driven by an increase in the property, plant and equipment account. This increase was mirrored by a similar increase in trade and other payables.

2 Income statement Quarter ended, 31 March Year to date ended, 31 March Year ended, 31 December Operating income and operating expenses Notes Un-audited Un-audited Un-audited Un-audited Audited IT Housing income 3,003, ,003, Total operating revenue 3,003, ,003, Employee benefits expense 1,997, ,997, ,507,166 Other expenses 3,053,612 27,903 3,053,612 27,903 3,416,176 Other gains and losses 104, , ,827 EBITDA (2,151,573) (27,903) (2,151,573) (27,903) (5,058,169) Depreciation and amortisation 3 1,485, ,485, Operating profit / EBIT (3,637,349) (27,903) (3,637,349) (27,903) (5,058,169) Finance income 323, , , ,944 2,097,540 Finance costs 328,814 28, ,814 28,791 1,330,274 Finance - net (5,506) 106,153 (5,506) 106, ,266 Profit / (Loss) before income tax (3,642,855) 78,250 (3,642,855) 78,250 (4,290,903) Income tax expense/(benefit) (983,571) 21,128 (983,571) 21,128 (1,158,162) Profit / (Loss) for the period (2,659,284) 57,122 (2,659,284) 57,122 (3,132,741) Profit / (Loss) for the year attributable to the shareholders (2,659,284) 57,122 (2,659,284) 57,122 (3,132,741) Statement of comprehensive income/(loss) Profit / (Loss) for the period (2,659,284) 57,122 (2,659,284) 57,122 (3,132,741) Other comprehensive income Total comprehensive income/(loss) for the period (2,659,284) 57,122 (2,659,284) 57,122 (3,132,741) Total comprehensive income/(loss) attributable to shareholders (2,659,284) 57,122 (2,659,284) 57,122 (3,132,741)

3 Statement of financial position As at 31 March As at 31 December Assets Notes 2015 (unaudited) 2014 (audited) Non-current assets Deferred tax asset 2,141,733 1,158,162 Property, plant & equipment 3 555,158, ,508,387 Total non-current assets 557,299, ,666,549 Current assets Trade receivables 5,136,140 0 Other receivables 15,667,114 19,524,013 Cash and cash equivalents 2 210,135, ,075,810 Total current assets 230,939, ,599,823 Total assets 788,238, ,266,372 As at 31 March As at 31 December Equity and liabilities Notes 2015 (unaudited) 2014 (audited) Equity attributable to shareholders Ordinary shares 30,000 30,000 Retained earnings (5,724,534) (3,065,250) Total equity (5,694,534) (3,035,250) Non-current liabilities Bond loan 495,604, ,340,417 Total non-current liabilities 495,604, ,340,417 Current liabilities Trade and other payables 89,246,777 51,878,735 Shareholder loan 209,082, ,082,470 Current income tax 0 0 Total current liabilities 298,329, ,961,205 Total equity and liabilities 788,238, ,266,372

4 Statement of changes in equity Notes Share capital Retained earnings/ (Accumulated loss) Total Equity As at 1 January ,000 67,491 97,491 Profit / (Loss) for the period 0 (3,132,741) (3,132,741) Other comprehensive income/(loss) Total comprehensive income/(loss) 0 (3,132,741) (3,132,741) Total transactions with shareholders recognised directly in equity As at 31 December ,000 (3,065,250) (3,035,250) Profit / (Loss) for the period 0 (2,659,284) (2,659,284) Other comprehensive income/(loss) Total comprehensive income/(loss) 0 (2,659,284) (2,659,284) Total transactions with shareholders recognised directly in equity As at 31 March ,000 (5,724,534) (5,694,534)

5 Statement of cash flow Quarter ended, 31 March Year to date ended, 31 March Year ended, 31 December Notes Un-audited Un-audited Un-audited Un-audited Audited Profit / (Loss) before income tax (3,642,855) 78,250 (3,642,855) 78,250 (4,290,903) Adjustments for: Depreciation and amortisation charges 3 1,485, ,485, Adjustment for financial activities 5,506 (106,153) 5,506 (106,153) (767,266) Changes in working capital Trade and other receivables (1,279,241) (5,452,722) (1,279,241) (5,452,722) 0 Trade and other payables 1,470,629 (20,543) 1,470,629 (20,543) 2,119,488 Income tax paid (20,542) Net cash flow from operating activities (1,960,184) (5,501,168) (1,960,184) (5,501,168) (2,959,223) Cash flows from investing activities Purchase of property, plant and equipment 3 (75,220,984) (29,811,759) (75,220,984) (29,811,759) (301,972,181) Interest paid capitalised on qualifying asset (6,753,270) 0 (6,753,270) 0 (16,846,283) Interest received 323, , , ,944 2,097,540 Net cash flow from investing activities (81,650,946) (29,676,815) (81,650,946) (29,676,815) (316,720,924) Cash flows from financing activities Proceeds from borrowings 0 40,630, ,630, ,585,833 Repayment of shareholder loan (30,000,000) Interest paid (328,814) (28,791) (328,814) (28,791) (1,330,274) Proceeds from issuance of shares Net cash flow from financing activities (328,814) 40,601,209 (328,814) 40,601, ,255,559 Net increase in cash and cash equivalents (83,939,944) 5,423,227 (83,939,944) 5,423, ,575,412 Cash and cash equivalents at beginning of the period 294,075,810 43,500, ,075,810 43,500,398 43,500,398 Exchange gains/losses on cash and cash equivalents Cash and cash equivalents at end of the period 2 210,135,866 48,923, ,135,866 48,923, ,075,810

6 Note 1 - Statement of compliance, basis of preparation, and significant accounting policies General information DigiPlex Fet AS ('the Company') is a Norwegian private limited liability company incorporated on 3 July 2013 and regulated by the Norwegian Private Limited Liability Companies Act and supplementing Norwegian laws and regulations. The Company is registered in the Norwegian Companies Registry with company registration number and its registered business address is Ulvenveien 89B, 0581 Oslo, Norway. During the first quarter of 2015 the Company commenced providing highly secure, high-powered, energy-efficient and carrier-neutral data centre space at Heiaveien 9 in the municipality of Fetsund, near Oslo, Norway, for its customer's information and communication technology equipment with the delivery of two phases of 700m2 each of "white space". These condensed interim financial statements do not include all of the information required for a full set of annual financial statements and they have not been audited. They have been prepared in accordance with International Accounting Standard ('IAS') 34, Interim Financial Reporting. They should be read in conjunction with the annual financial statements for the year ended 31 December 2014, which have been prepared in accordance with International Financial Reporting Standards ('IFRS'). The same accounting principles applied in the 2014 annual financial statements have also been applied to these statements. For further information regarding the accounting principles applied, please refer to the Company's audited financial statements for 2014.

7 Note 2 - Cash and cash equivalents Cash and other cash equivalents Q Short term cash deposits, cash equivalents 55,601,781 25,121,301 Restricted cash employee tax deductions 43,600 0 Other restricted cash 154,490, ,954,509 Cash and cash equivalents 210,135, ,075,810 Cash and cash equivalents consists of short term cash deposits and cash equivalents held at financial institutions. At the end of Q the Company had bank accounts with restricted amount of NOK pledged in favour of the Bond Trustee, of which NOK can only be released and applied towards payment of interest under the Bond Agreement up to and including the interest payment in June The remaining balance of NOK can only be drawn from the account with the Bond Trustee's written consent pursuant to the Bond Agreement. Note 3 - Property, plant and equipment Land Asset under construction Buildings Machines and plants Furniture and Fixtures Total As at 31 December 2014 Accumulated cost 38,520, ,794, , , ,508,387 Accumulated depreciation Accumulated impairment Net book amount 38,520, ,794, , , ,508,387 Period ended 31 March 2015 Opening net book amount 38,520, ,794, , , ,508,387 Additions 0 118,053, , ,135,416 Reclassifications 0 (172,615,965) 172,615, Depreciation charge 0 0 (1,475,846) (1,974) (7,956) (1,485,776) Net book amount 38,520, ,231, ,140, , , ,158,027 As at 31 March 2015 Accumulated cost 38,520, ,231, ,615, , , ,643,803 Accumulated depreciation 0 0 (1,475,846) (1,974) (7,956) (1,485,776) Accumulated impairment Net book amount 38,520, ,231, ,140, , , ,158,027 Depreciation for the quarter 0 0 1,475,846 1,974 7,956 1,485,776 Estimated useful life years 5 years 3 years Capital expenditure contracted for at the end of the reporting period but not yet incurred is circa NOK 91 million.