VPS Holding ASA (The Norwegian Central Securities Depository) Report for the Second Quarter 2003

Transcription

1 VPS Holding ASA (The Norwegian Central Securities Depository) Report for the Second Quarter Profit and Loss Account Main figures in NOK 000 2nd. Qtr 2nd. Qtr Operating income Operating expenses Ordinary depreciation EBITDA Operating profit/loss (EBIT) Net financial items Profit/loss before tax Tax costs Profit/loss after tax Financial key figures EBITDA margin 28.0 % 25.0 % 24.8 % EBIT margin 9.6 % 0.6 % 1.4 % Earnings per share before tax Cash flow per share Equity ratio 81.7 % * 83.6 % Return on equity 12.8 % * 3.5 % Current ratio EBITDA = Operating profit/loss before depreciation and amortization EBITDA margin = EBITDA as a percentage of operating income EBIT margin = EBIT as a percentage of operating income Earnings per share = Profit/Loss before tax divided by number of shares Cash flow per share = Cash flow from operating activities divided by number of shares Equity ratio = Equity as a percentage of total capital Return on equity = Profit/Loss before tax divided by average equity (estimated p.a.) * Key figures have not been calculated for the corresponding period of last year, as the balance per 30 June 2002 is not changed in accordance with the conversion of VPS. Current ratio = Liquid assets + debtors + other liquid receivables divided by short-term liabilities 60 Total income Profit/loss before tax st.Qtr. 2nd. Qtr. 3rd. Qtr. 4th. Qtr , ,4 53, ,4 49,9 43,7 46,7 49,1 52,7 0 0 Figures in mill NOK -10 1st. Qtr. 2nd. Qtr. 3rd. Qtr. 4th. Qtr ,2 13,8-5,1 0, ,7 8,9 2,4 1,5 1,3 10,2 0 0 General situation VPS Holding ASA improved its result compared to the same period last year. The result for the first six months of is a pretax profit of NOK 11.5 million as against NOK 2.1 million for last year. The income improved to NOK million as against 97.4 million last year due to increases of prices and activities. At the same time, expenses were reduced to NOK 92.0 Page 1 of 8

2 million as against NOK 96.8 million in The activities in the securities market improved during this quarter compared to the first quarter of. The result for the second quarter was NOK 10.3 million as against NOK 8.9 million for the same period of (VPS is subject to taxation after the privatisation in. In order to compare the previous self-owned institution VPS with VPS Holding ASA, the result is commented before tax). Income and expenses Income for the second quarter totalled NOK 52.6 million, which is NOK 2.7 million (5.5%) higher than for the same period last year. VPS increased its prices by an average of approximately 4% on 1 January and, taking this price increase into account for the two comparable quarters, the activity was slightly higher in the second quarter of. Operating expenses for the second quarter of were NOK 43.3 million, as against NOK 41.9 million for the second quarter last year. As a consequence of the transfer from Hasle to central Oslo, some separate costs have occurred this year. Some of these costs are accrued in the second quarter and is the main reason for the increase of expenses compared with the same period of In addition, cost-cutting measures were implemented in 2002 and these have also affected the level of costs in. Balance sheet A pro forma balance sheet of 1 January has been drawn up on the basis of VPS balance sheet at 31 December 2002, for the sake of comparison with operations after the conversion. The second quarter of 2002 shows comparative figures for VPS prior to the conversion. VPS had an equity capital of NOK million at the end of the second quarter of. This equity capital is made up of NOK million in called-up and fully paid share capital and NOK 73.8 million in retained earnings, which includes NOK 65.5 million in deferred tax assets. The balance rose by NOK 87.0 million compared to the same period last year. This is mainly due to deferred tax benefits of NOK 65.5 million and NOK 15.0 million in expenses (which will be refunded) relating to the conversion. Cash flow Cash flow from operations was NOK 23.8 million, of which NOK 29.5 million was used for investment activities. Investments totalling approximately NOK 31.0 million are planned in the second quarter. Value-added tax As of 1 May, VPS has calculated VAT for some of its services. Still, it has not been finally determined which of VPS services are granted VAT exemption for financial services. VPS expects a conclusion from the Ministry of Finance. Until then, VPS has limited VAT inclusion to services that in accordance with VPS judgement will not be exempted. Thus, when the conclusion is reached, further services may have to be calculated with VAT. Our customers have been notified of this. VPS has moved to the centre of Oslo During the weekend of June VPS moved to Biskop Gunnerus gate 14A, 11 th and 12 th floor (building formerly known as Postgirobygget ). The moving operation went as planned, without any glitches. Technical infrastructure functioned uninterruptedly, and office spaces were fully operational in the morning of 16 June. Page 2 of 8

3 Market situation After a longer period of downturn, the market conditions in the second quarter of were mainly positive. Still, there is a net reduction in the number of registered companies and holdings compared with the first quarter. This is mainly due to reduced market values, liquidations, mergers and wind-ups of companies. On the other hand, it looks like this quarter represents a change. In the second quarter the number of trade transactions increased, as well as net new investments in VPS registered securities funds and market values. Issuer products In the second quarter of, 26 limited companies were registered in VPS. During the same period, 41 companies were withdrawn from VPS. In all, companies were registered in VPS at the end of the second quarter. The number of VPS registered bonds increased with 126 in the first six months to 1577, which is an increase of 11.0% compared with the same period of last year. Total new No of companies registered in VPS st. Qtr issues for the period was net NOK 35.0 billion. New issues in the short term bond market increased with NOK 2.5 billion in the same period. Income from services for issuers was NOK 2.5 million higher (13%) than for the first quarter of. This is mainly due to a new maintenance fee invoiced for new companies, as well as increased activities in mergers and dividends. The sale of information services has also had a small increase compared with the first quarter of. Still, the income is 10.0% lower than for the corresponding period in In the first six months, issuer products made a total income of NOK 39.7 million, which is a reduction of NOK 1.2 million (3.0%) compared with the same period of last year. 2nd. Qtr Mutual fund products The value of VPS registered funds at the end of the second quarter of was NOK 61.2 billion, which is an increase of NOK 10.0 billion since the beginning of the year. Of this, NOK 7.0 billion is due to rate increases, while NOK 3.0 billion is due to new holdings in investment funds. The net amount of new holdings for the period is NOK 1.7 billion as against NOK 1.3 billion for the Capital development in VPS-registered mutual funds st. Qtr. corresponding period in The number of VPS registered funds was stable in the second quarter. Now, 587 funds are registered in VPS. The number of holdings in funds continued to decrease including the beginning of June, and was by the end of the second quarter 789,500. This is 4.75% lower than at the end of the corresponding period in However, there has been an increasing tendency in the number of holdings since the second part of the second quarter. 2nd. Qtr. Page 3 of 8

4 Fund services have shown an increase in income of NOK 0.8 million (18.0%) compared with the second quarter of The number of new holdings and redemptions were reduced with 27.0% compared with the same period of last year. However, increased income from information services and sale of funds products have contributed to a positive result in the second quarter. Fund products have had a total income of NOK 11.3 million in the first six months, an increase of NOK 1.7 million (18.0%) compared with the same period of last year. Investor products From the end of the second quarter of 2002 until the end of the second quarter of, the number of investor holdings was reduced by 70,000 (3.6%) to 1,878,000. Compared with the first quarter, this is a reduction of 30,000 holdings (1.6%). The number of holdings in shares is 915,000, which is a reduction of 1.3% compared with the same period of last year. The number of holdings No of investor holdings registered in VPS 1st. Qtr 2nd. Qtr 3rd. Qtr in primary capital certificates was reduced by 34.2 % to 36,000, mainly as a result of the conversion of Gjensidige NOR to a public limited company. 4th. Qtr The number of holdings in bonds increased to 128,000 (0.1%), while the number of short term bonds was reduced to 385 (10.1%). The number of investment fund holdings was reduced to 790,000 (4.5%). The income from investor services showed a small increase both compared to the first quarter of as well as the corresponding period last year. Investor products made a total income of NOK 16.2 million in the first six month of, which is an increase of NOK 0.2 million (1.0%) compared to the same period last year. Clearing and Settlement The number of trade transactions handled by VPS settlement system was 3.4 million in the first six months of. This is a reduction of 5,0% compared with the same period of last year. For the second quarter the number was 1.8 million, and this is an increase of 21.0% compared with the second quarter of May, and June in particular, did show increases. Income from clearing and No of trade transactions processed in VPS 1st. Qtr 2nd. Qtr 3rd. Qtr 4th. Qtr settlement products show an increase of 13.0% compared with the first six months of This represents an increase of NOK 3.8 million (27.0%) compared with the second quarter of The income in the second quarter totalled NOK 17.9 million, which is an increase of 7.0% compared with the first quarter. This is due to increased activities in the market and new services in the VPS settlement system. Clearing and settlement products made an income of NOK 34.5 million in the first six months, which is an increase of NOK 3.9 million compared with the same period of last year. Page 4 of 8

5 The 20 largest shareholders in VPS per 29 July Name Number of shares % Arendals Fossekompani Morgan Stanley (NOM) Nordea Bank Norge ASA Goldman Sachs International Den norske Bank ASA Gjensidige NOR Norsk Hydros Pensjonskasse Skandinaviska Enskilda Banken KLP Forsikring Deutsche Bank Sundt AS Pareto Odin Norge Vital Forsikring ASA Sparebanken Vest Telenor Pensjonskasse Skips AS Tudor Storebrand Livsforsikring Statoils Pensjonskasse Statoil Forsikring ASA Total Future prospects Activities in the securities market increased in the second quarter and VPS will introduce a price-increase from the fourth quarter. This, combined with prudent cost control, may improve the result for. Page 5 of 8

6 PROFIT AND LOSS ACCOUNT 2. Quarter Quarter at 31 Dec. OPERATING INCOME Operating income Other income Total income OPERATING EXPENSES Capitalization of systems ( ) ( ) ( ) ( ) ( ) development Salaries and other personnel expenses Depreciation Safety and production expenses Other adm. and operating expenses Total operating expenses Operating profit/loss FINANCIAL INCOME AND EXPENSES Interest received Other financial expenses Total financial items Profit/loss before tax Taxes Profit/loss after tax Page 6 of 8

7 BALANCE SHEET 2002 At 31 Mar. At 31 Mar. At 1 Jan. FIXED ASSETS *(adjusted) Systems development Deferred tax asset Total intangible assets Vehicles, movables Computer hardware, software Structural installations Total tangible assets Pension funds Loans to employees Total financial fixed assets Total fixed assets CURRENT ASSETS Receivables, customers Other receivables Total receivables Shares in subsidiary companies Bank deposits, cash, etc Total current assets Total assets EQUITY CAPITAL Share capital Holding ASA Share capital ASA Share premium account ASA Total called up and fully paid capital Other equity capital Total retained earnings Total equity capital LIABILITIES Pension laiabilities Total allocations for liabilities Accounts payable, suppliers Unpaid government charges Other short-term liabilities Total short-term liabilities Total liabilities Total equity capital and liabilities *The figures at 30 June are comparative figures showing VPS prior to the conversion, while the figures at 1 January have been adjusted to allow for comparison with operations after conversion. Page 7 of 8

8 FUNDS FLOW STATEMENT Liquid assets generated by/used for operations (1 Jan. 30 June) (1 Jan. 31 Dec.) Profit/loss before tax Loss/(Gain) on sale of operating assets ( ) Ordinary depreciation (Increase)/Decrease in receivables, customers ( ) Increase/(Decrease) in accounts payable, suppliers ( ) Difference between debited and paid pension costs ( ) (Increase)/Decrease in loans to employees ( ) Increase/(Decrease) in other short-term liabilities (Increase)/Decrease in other time-limited items ( ) ( ) Net cash flow from operations Inpayments fixed assets Outpayments fixed assets ( ) ( ) Outpayments relating to systems development ( ) ( ) Net cash flow from investment activities ( ) ( ) Contributed capital Increase/(Decrease) in long-term liabilities 0 0 Net cash flow from financing activities Net change in cash assets ( ) Liquid assets at start of period Liquid assets at end of period Including tied-up funds amounting to Board of Directors of VPS Holding ASA, 29 July Page 8 of 8