| Income Statement | 2002 | 2001 |
| Gain on sales of assets | 753 | 15,300 |
| Other operating income | 301,929 | 252,177 |
| Operating expenses | (281,550) | (245,685) |
| Earnings from operations exclusive of financial income and financial expenses | 21,132 | 21,792 |
| Financial income and (financial expenses) | 8,664 | 1,614 |
| Earnings before taxes | 29,795 | 23,406 |
| Income tax and net worth tax | (6,049) | (8,206) |
| Impact of reduction in tax rate | 3,799 | |
| Net earnings | 23,747 | 18,999 |
| Balance Sheet | 31 Dec. 2002 | 31 Dec 2001 |
| Fixed assets | 85,563 | 96,107 |
| Current assets | 123,184 | 80,173 |
| Total assets | 208,747 | 176,280 |
| Share capital | 70,000 | 35,000 |
| Share premium account | 0 | 40,000 |
| Other equity | 89,655 | 69,699 |
| Obligations | 5,070 | 5,699 |
| Short-term liabilities | 44,023 | 25,881 |
| Total liabilities and equity | 208,747 | 176,280 |
| Cash flow | 2002 | 2001 |
| Working capital from operations | 34,902 | 20,709 |
| Cash on hand from operations | 58,081 | 37,748 |
| Investment activities | (1,571) | 16,041 |
| Financing activities | (9,143) | (44,794) |
| Increase (decrease) in cash on hand | 47,368 | 8,995 |
| Cash on hand at beginning of year | 9,481 | 486 |
| Cash on hand at year-end | 56,849 | 9,481 |
| Key figures | ||
| Return on equity | 16.9% | 15.5% |
| Earnings as a proportion of operating income | 7.8% | 7.1% |
| Own equity as a proportion of total assets3.1 | 76.5% | 82.1% |
| Current ratio | 2.8 | 3.1 |
| Average no. of employees | 18 | 16 |
Earnings after tax for the year amount to ISK 23.7 million as compared to ISK 19.0 million for 2001. The company has ceased to adjust its accounts for inflation in accordance with a law adopted by the Icelandic parliament Althingi at the end of 2001. If the same accounting procedures had been followed as were practiced in the previous year, earnings would have been ISK 1.9 million lower.
At year-end, own equity was ISK 159.6 million (ISK 144.7 million at year-end 2001) and the equity ratio 76.5% (82.1% in 2001). Operating revenues less gains from sales of assets increased by one-fifth over the previous year, or from ISK 252.2 million to ISK 301.9 million. The increase in revenues over last year can be attributed primarily to increased turnover fees and fees of ICEX members and information vendors. Turnover fees amounted to ISK 113.5 million in comparison to ISK 90.2 million in 2001. This corresponds to an increase of over 25%, while turnover of listed securities increased by 51% year-on-year. The proportionally lower increase in turnover income than in turnover is due to the elimination of the minimum turnover fee and a slight decrease in the number of trades despite the increased turnover. While the minimum turnover fee and user fees were eliminated, a fixed annual fee for ICEX members was introduced. Annual fees of ICEX members and information vendors increased from ISK 17.0 million to ISK 34.0 million. Operating expenses for the year were ISK 281.5 million as compared to ISK 245.7 million in 2001, with the increase thus amounting to just under 15%.
The year?s performance is somewhat better than projected in the reviewed operating budget from last August. This is primarily due to a higher turnover in listed securities than was anticipated.
Outlook
Turnover in listed securities is the factor which primarily determines ICEX's performance, while at the same time being the most difficult to predict. Last year was one of record-high turnover, ISK 1,133 million, an increase of over 50% year-on-year. In the estimation of ICEX, the outlook for the coming year is good and the budget for the year 2003 assumes a 7% increase in turnover over last year. According to the budget?s projections, turnover fees will increase by ISK 8 million over the previous year. Other revenues, including fees for new listings, are expected to increase by ISK 17 million. At the same time, expenses will increase from the previous year, in part due to the introduction of the new SMARTS surveillance system, as well as the increased scope of activities. Thus the budget provides for an increase of just over ISK 30 million in operating expenses and earnings of ISK 18 million for the year, corresponding to 11.5% return on equity.
The ICEX Annual General Meeting
The AGM of Eignarhaldsfelagid Verdbrefathing hf. will be held Friday, 20 March, and the first consolidated accounts for ICEX and the Icelandic Securities Depository (ISD) presented. The ICEX AGM will be held immediately afterwards. The Board proposes a dividend of 24%. The dividend is paid to the Eignarhaldsfelagid Verdbrefathing, established mid last year for the joint operations of ICEX and ISD. Eignarhaldsfelagid Verdbrefathing pays its owners dividends of 11% accordingly.
