TELESTE CORPORATION FINANCIAL STATEMENTS 13 February 2020 AT 08:30 EET
TELESTE CORPORATION FINANCIAL STATEMENT 1 JANUARY TO
Fourth quarter of 2019
- Net sales amounted to
- Adjusted operating result stood at
- Operating result amounted to
- Adjusted earnings per share were
- Earnings per share were
- Cash flow from operations was
- Orders received totalled
- Order backlog at period-end totalled
January-
- Net sales amounted to
- Adjusted operating result stood at
- Operating result amounted to
- Adjusted earnings per share were
- Earnings per share were
- Orders received totalled
- Cash flow from operations was
The Board of Directors proposes a dividend of
Outlook for 2020
Comments by CEO
“The net sales and operating result for Q4 decreased year-on-year. Orders received increased from the previous quarter and were at a good level, but decreased from the record-strong reference period. The order backlog stayed at a higher level than a year ago. Net sales were on par year-on-year in Video and Broadband Solutions, but operating result decreased year-on-year. The net sales and operating result of Network Services decreased year-on-year.
In the Video and Broadband Solutions business area, our strategic main objectives are, with regard to access network products, product development in distributed access architecture and the successful launch of sales in the US operator market, as well as significant growth and improved performance in video security and information solutions.
With regard to access network products, the entire industry is in the middle of a technological transformation in which the next-generation distributed access architecture will provide the most competitive solution for increasing network capacity. During the fourth quarter, operators continued to test distributed network solutions. Therefore, operators did not yet commence significant network investments, so the deliveries of access network products decreased year-on-year. Our view is that we retained a strong market position in the European access network market. We also won a significant patent litigation against our competitor in the
With regard to video security and information solutions, we proceeded in accordance with our set growth goals. The fourth quarter was strong both with regard to new orders and net sales. During the quarter, we succeeded in securing significant new orders from the German public transport market as well as the biggest European train manufacturers. We won a significant project from a new customer in
In the Network Services business area, the main focus is on sharpening the long-term strategy, focusing on higher-added-value services, and developing the operational activities. In the fourth quarter, orders received and net sales decreased. Net sales decreased in
In 2020, the technological transformation in access networks and its timing will affect demand for our products. The demand for traditional HFC technology is expected to slow down and investment in next generation distributed access architecture to increase. We predict that these investments will be launched in stages during the second half of 2020, first in
The strategic priorities in 2020 include
- development of the distributed access architecture offering and successful launch of sales in the North American cable operator market
- significant growth of net sales and continued profitability improvement in video security and information solutions
- development of operations and improved profitability in the services business in
Germany .
We believe that the measures we have chosen will ensure profitable growth also in the years to come.”
Group Operations October-
Key figures (EUR million) | 10-12/2019 | 10-12/2018 | Change |
Orders received | 64.1 | 81.0 | -20.8% |
Net sales | 58.5 | 66.5 | -12.1% |
Adjusted EBIT, EUR million 1) | 0.9 | 2.2 | -60.6% |
Adjusted EBIT, % 1) | 1.5% | 3.4% | |
EBIT | 1.2 | 2.2 | -44.6% |
EBIT, % | 2.1% | 3.4% | |
Result for the period | 0.7 | 1.6 | -57.8% |
Adjusted earnings per share, EUR 1) | 0.03 | 0.09 | -63.6% |
Earnings per share, EUR | 0.05 | 0.09 | -42.1% |
Cash flow from operations, EUR million | 7.9 | 4.6 | +69.2% |
1) An alternative performance measure defined in the tables section of the report.
Orders received by the Group in the fourth quarter totalled
Expenses for material and production services decreased by 17.0% to
Group Operations January-
Key figures | 1-12/2019 | 1-12/2018 | Change |
Orders received, EUR million | 237.6 | 264.0 | -10.0% |
Net sales, EUR million | 235.5 | 250.3 | -5.9% |
Adjusted EBIT, EUR million 1) | 7.7 | 9.7 | -20.7% |
Adjusted EBIT, % 1) | 3.3% | 3.9% | |
EBIT, EUR million | 0.8 | 9.7 | -92.1% |
EBIT, % | 0.3% | 3.9% | |
Result for the period, EUR million | -1.7 | 6.8 | -124.2 % |
Adjusted earnings per share, EUR 1) | 0.31 | 0.38 | -19.8 % |
Earnings per share, EUR | -0.07 | 0.38 | -119.0% |
Cash flow from operations, EUR million | 4.1 | 15.0 | -73.0% |
Net gearing, % | 34.1% | 5.9% | |
Equity ratio, % | 49.5% | 51.7% | |
Personnel at period-end | 1,330 | 1,353 | -1.7% |
1) An alternative performance measure defined in the tables section of the report.
Orders received by the Group totalled
Adjusted operating result decreased by 20.7% to
Expenses for material and production services decreased by 11.0% to
Video and Broadband Solutions October-
10-12/2019 | 10-12/2018 | Change | |
Orders received | 41,807 | 51,142 | -18.3% |
Net sales | 36,142 | 36,691 | -1.5% |
EBIT | 1,266 | 1,942 | -34.8% |
Operating result, % | 3.5% | 5.3% |
Orders received decreased year-on-year by 18.3% to
Net sales decreased by 1.5% to
R&D expenses amounted to
Video and Broadband Solutions January-
1-12/2019 | 1-12/2018 | Change | |
Orders received | 143,455 | 152,307 | -5.8% |
Net sales | 141,351 | 138,677 | 1.9% |
EBIT | 8,056 | 7,738 | 4.1% |
EBIT, % | 5.7% | 5.6% |
Orders received decreased year-on-year by 5.8% to
R&D expenses amounted to
Network Services October-
10-12/2019 | 10-12/2018 | Change | |
Orders received | 22,340 | 29,829 | -25.1% |
Net sales | 22,340 | 29,829 | -25.1% |
EBIT | -389 | 291 | -233.8 % |
EBIT, % | -1.7% | 1.0% |
Orders received and net sales decreased by 25.1% year-on-year, amounting to
Network Services January-
1-12/2019 | 1-12/2018 | Change | |
Orders received | 94,106 | 111,669 | -15.7% |
Net sales | 94,106 | 111,669 | -15.7% |
EBIT | -347 | 1,983 | -117.5% |
EBIT, % | -0.4% | 1.8% |
Orders received and net sales decreased by 15.7% and amounted to
Personnel and organisation January-
In the period under review, the average number of people employed by the Group was 1,363 (1,393/2018, 1,492/2017). Of these, 682 (700) were employed by Video and Broadband Solutions and 681 (693) by Network Services. At the end of the review period, the Group employed 1,330 people (1,353/2018, 1,446/2017), of whom 64% (65%/2018, 65%/2017) were stationed abroad. Approximately 2% of the Group's employees were working outside
Personnel expenses increased by 0.2% year-on-year to
Investments January-
Investments by the Group totalled
Product development projects focused on distributed access architecture (including solutions designed for the US market), situational awareness and video security solutions, passenger information systems and customer-specific projects.
Financing and Capital Structure January-
Cash flow from operations was
The Group's equity ratio was 49.5% (51.7%) and net gearing ratio 34.1% (5.9%). A total of
Key risks faced by the business areas
Founded in 1954,
In Video and Broadband Solutions, customer-specific and integrated deliveries of solutions create favourable conditions for growth. On the other hand, the allocation of resources to the deliveries and the technical implementation are demanding tasks, which is why there are also risks involved. Our operator customers' network investments vary according to the development of technology, customers' need to upgrade and their financial structure. End-to-end deliveries of video security and information solution systems may be large in size, setting high demands for the project quotation calculation and management and, consequently, involving risks. Increased competition created by the new service providers may undermine the cable operators' ability to invest. Correct technological choices, product development and their timing are vital to our success. Various technologies are used in our products and solutions, and the intellectual property rights associated with the application of these technologies can be interpreted in different ways by different parties. Such difficulties of interpretation may lead to costly investigations or court proceedings. Customers have very demanding requirements for the performance of products, their durability in challenging conditions and their compatibility with other components of integrated systems. Regardless of careful planning and quality assurance, complex products may fail in the customer's network and lead to expensive repair obligations. The consequences of natural phenomena and global disruptions, such as an epidemic, or accidents, such as a fire, may reduce the availability of components in the order-delivery chain of the electronics industry or suspend our own manufacturing operations. Customs levies imposed by major powers in the world economy and other trade war measures may have a negative effect on component supply chains and, in particular, the profitability of products exported to
Net sales of Network Services come mainly from a small number of large European customers. Therefore, a significant change in the demand for our services by any one of them is reflected in the actual deliveries and profitability. The improvement of customer satisfaction and productivity requires efficient service process management, as well as innovative process, product and logistics solutions to ensure the quality and cost-efficiency of services. The smooth functioning of cable networks requires efficient technical management of the networks and suitable equipment solutions in accordance with contractual obligations. This, in turn, requires continuous development of the skills and knowledge of our personnel and subcontractors. In addition, the sufficiency and usage rates of our personnel and subcontractor network influence the company's delivery capacity and profitability. Subcontractors' costs may increase faster than it is possible for
Various information systems are critical to the development, manufacture and supply of products to our customers. The maintenance of information systems and deployment of new systems involve risks that may affect our ability to deliver products and services. Information systems are also exposed to external threats and we strive to protect ourselves from these threats through technical solutions and by increasing the security competence of our personnel.
The Board of Directors annually reviews essential business risks and their management. Risk management constitutes an integral part of the strategic and operational activities of the business areas. Risks are reported to the Audit Committee on a regular basis.
On
Group structure
The parent company has a branch office in
Shares and changes in share capital
On
In the period under review, the lowest price of the company's share was
On
On
Valid authorisations at the end of the review period:
- The Board of Directors may acquire 1,200,000 own shares of the company otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market organised by Nasdaq Helsinki at the market price of the time of the purchase.
- The Board of Directors may decide on issuing new shares and/or transferring the company's own shares held by the company, so that the maximum total number of shares issued and/or transferred is 2,000,000.
- The total number of new shares to subscribe for under the special rights granted by the company and own shares held by the company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the company.
- These authorisations are valid until
Decisions by the Annual General Meeting
The Annual General Meeting (AGM) of
The AGM decided that the Board of Directors shall consist of seven members.
The AGM decided to choose one auditor for
The Annual General Meeting decided to authorise the Board of Directors to decide on the purchase of the company's own shares in accordance with the proposal of the Board. According to the authorisation, the Board of Directors may acquire 1,200,000 own shares of the company otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market organised by
The Annual General Meeting decided to authorise the Board of Directors to decide on issuing new shares and/or transferring the company's own shares held by the company and/or granting special rights referred to in Chapter 10, Section 1 of the Limited Liability Companies Act, in accordance with the Board's proposal. The new shares may be issued and the company's own shares held by the company may be conveyed either against payment or for free. New shares may be issued and the company's own shares held by the company may be conveyed to the company's shareholders in proportion to their current shareholdings in the company, or by waiving the shareholder's pre-emption right, through a directed share issue if the company has a weighty financial reason to do so. The new shares may also be issued in a free share issue to the company itself.
Under the authorisation, the Board of Directors has the right to decide on issuances of new shares and/or transferring the company's own shares held by the company, so that the maximum total number of shares issued and/or transferred is 2,000,000. The total number of new shares to subscribe for under the special rights granted by the company and own shares held by the company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the company.
The authorisations are valid for eighteen (18) months from the resolution of the Annual General Meeting. The authorisations override any previous authorisations to decide on issuances of new shares and on granting stock option rights or other special rights entitling to shares.
Operating environment in 2020
The business objective of Video and Broadband Solutions is to maintain its strong market position in
Demand for broadband services by cable operators continues to grow. The capacity of household broadband services are estimated to grow by 30-40% a year. European cable operators have been able to competitively respond to the increasing demand by investing in DOCSIS 3.1 standard-compliant 1.2 GHz frequency range network upgrades. Investments in expansion of the traditional HFC network infrastructure frequency range continue, but with a lower volume. Operators are already planning investment in next-generation distributed access architecture network solutions. For years now, the cable industry, including
Ensuring safety in city environments, increase of public transport services and the increasing popularity of smart digital systems for a smoother life provide a foundation for growing business. Public transport operators and other authorities must ensure smooth operation of services and infrastructure as well as the safety of people. The public transport information systems market as well as video security and situational awareness systems market are expected to continue to grow in 2020. Public transport information systems are developing to be increasingly smart and real-time. Video security solutions are becoming increasingly smart, including pattern recognition and artificial intelligence. Furthermore, a need is arising in the market for comprehensive situational awareness systems that include management of other sensor-level data flows in addition to video image and automate operating processes in exceptional situations. Ensuring competitiveness requires
In the Network Services business area, operators' network investments are expected to also increase the demand for services in the long term. The objective is to further develop the operational efficiency of
Estimating the outlook for 2020 is made more difficult by uncertainty over the timing of new distributed access architecture investments by operators and the level of the key customer's service demand in the German services business.
Outlook for 2020
12 February 2020
Teleste Corporation
Board of Directors President and CEO
This interim report has been compiled in compliance with IAS 34, as it is accepted within EU, using the recognition and valuation principles with those used in the Annual Report. The data stated in this report is audited.
STATEMENT OF COMPREHENSIVE INCOME | |||
10-12/2019 | 10-12/2018 | Change % | |
Net sales | 58,482 | 66,519 | -12.1 % |
Other operating income | 737 | 421 | 75.2 % |
Raw material and consumables used | -30,073 | -36,224 | -17.0 % |
Employee benefits expense | -17,140 | -17,939 | -4.5 % |
Depreciations | -2,511 | -1,497 | 67.7 % |
Other operating expenses | -8,258 | -9,047 | -8.7 % |
Operating profit | 1,237 | 2,233 | -44.6 % |
Financial income | 263 | 55 | 375.3 % |
Financial expenses | -559 | -160 | 250.1 % |
Profit before taxes | 942 | 2,129 | -55.8 % |
Taxes | -252 | -494 | -48.9 % |
Profit for the period | 689 | 1,635 | -57.8 % |
Profit attributable to: | |||
Owners of the parent company | 964 | 1,658 | -41.9 % |
Non-controlling interests | -274 | -23 | 1068.5 % |
689 | 1,635 | -57.8 % | |
Earnings per share for profit of the year attributable to the equity holders of the parent | |||
Basic (expressed in euro per share) | 0.05 | 0.09 | -42.1 % |
Diluted (expressed in euro per share) | 0.05 | 0.09 | -42.1 % |
Total comprehensive income for the period, | |||
Net profit | 689 | 1,635 | -57.8 % |
Items that may be reclassified to profit or loss: | |||
Translation differences | 432 | -124 | -447.9 % |
Fair value reserve | 15 | -12 | -225.1 % |
Total comprehensive income for the period | 1,137 | 1,498 | -24.1 % |
Total comprehensive income attributable to: | |||
Owners of the parent company | 1,426 | 1,515 | -5.9 % |
Non-controlling interests | -289 | -17 | 1595.9 % |
1,137 | 1,498 | -24.1 % | |
STATEMENT OF COMPREHENSIVE INCOME, | 1-12/2019 | 1-12/2018 | Change % |
Net sales | 235,458 | 250,346 | -5.9 % |
Other operating income | 2,466 | 1,766 | 39.6 % |
Raw material and consumables used | -122,755 | -137,905 | -11.0 % |
Employee benefits expense | -66,173 | -66,014 | 0.2 % |
Depreciation | -9,550 | -5,980 | 59.7 % |
Other operating expenses | -38,677 | -32,492 | 19.0 % |
Operating profit | 769 | 9,721 | -92.1 % |
Financial income | 1,036 | 325 | 218.5 % |
Financial expenses | -1,416 | -986 | 43.6 % |
Profit before taxes | 388 | 9,060 | -95.7 % |
Taxes | -2,042 | -2,219 | -8.0 % |
Profit for the period | -1,653 | 6,841 | -124.2 % |
Profit attributable to: | |||
Owners of the parent company | -1,327 | 6,975 | -119.0 % |
Non-controlling interests | -327 | -133 | 145.0 % |
-1,653 | 6,841 | -124.2 % | |
Earnings per share for profit of the year attributable to the equity holders of the parent | |||
Basic (expressed in euro per share) | -0.07 | 0.38 | -119.0 % |
Diluted (expressed in euro per share) | -0.07 | 0.38 | -119.0 % |
Total comprehensive income for the period (tEUR) | |||
Net profit | -1,653 | 6,841 | -124.2 % |
Items that may be reclassified to profit or loss: | |||
Translation differences | 299 | -241 | -224.2% |
Fair value reserve | 19 | -3 | n/a |
Total comprehensive income for the period | -1,335 | 6,598 | -120.2 % |
Total comprehensive income attributable to: | |||
Owners of the parent company | -1,019 | 6,705 | -115.2 % |
Non-controlling interests | -316 | -108 | 193.6 % |
-1,335 | 6,598 | -120.2 % |
STATEMENT OF FINANCIAL POSITION, | |||
Assets | |||
31.12.2019 | 31.12.2018 | Change % | |
Non-current assets | |||
Other intangible assets | 12,907 | 11,268 | 14.5 % |
30,668 | 30,573 | 0.3 % | |
Property, plant and equipment | 17,038 | 8,601 | 98.1 % |
Other non-current financial assets | 645 | 561 | 14.9 % |
Deferred tax assets | 1,924 | 2,131 | -9.7 % |
Total | 63,182 | 53,135 | 18.9 % |
Current assets | |||
Inventories | 37,409 | 32,833 | 13.9 % |
Trade and other receivables | 40,112 | 50,500 | -20.6 % |
Income tax receivables | 683 | 288 | 136.7 % |
Cash | 8,249 | 22,240 | -62.9 % |
Total | 86,452 | 105,861 | -18.3 % |
Total assets | 149,634 | 158,996 | -5.9 % |
Equity and liabilities | |||
Equity attributable to equity holders of the parent | |||
Share capital | 6,967 | 6,967 | 0.0 % |
Share premium | 1,504 | 1,504 | 0.0 % |
Translation differences | -1,594 | -1,570 | 1.6 % |
Invested non restricted equity | 3,079 | 3,048 | 1.0 % |
Retained profits | 62,618 | 66,691 | -6.1 % |
Non-controlling interests | 206 | 522 | -60.5 % |
Total | 72,779 | 77,163 | -5.7 % |
Non-current liabilities | |||
Interest-bearing liabilities | 26,501 | 22,590 | 17.3 % |
Other liabilities | 79 | 81 | -2.9 % |
Deferred tax liabilities | 1,603 | 1,607 | -0.3 % |
Provisions | 93 | 266 | -65.1 % |
Total | 28,275 | 24,545 | 15.2 % |
Current liabilities | |||
Trade and other liabilities | 39,238 | 51,089 | -23.2 % |
Current tax payable | 1,283 | 966 | 32.8 % |
Provisions | 1,528 | 1,012 | 51.0 % |
Interest-bearing liabilities | 6,531 | 4,222 | 54.7 % |
Total | 48,579 | 57,288 | -15.2 % |
Total liabilities | 76,855 | 81,833 | -6.1 % |
Equity and liabilities total | 149,634 | 158,996 | -5.9 % |
CONSOLIDATED CASH FLOW STATEMENT, | |||
1.1.-31.12. | 1.1.-31.12. | Change % | |
2019 | 2018 | ||
Cash flows from operating activities | |||
Profit for the period | -1,653 | 6,841 | -124.2 % |
Adjustments for: | |||
Depreciation, amortisation and impairment | 9,549 | 5,980 | 59.7 % |
Other non-cash items | 532 | 850 | -37.4 % |
Financial income and expenses | 286 | 662 | -56.8 % |
Dividends | -4 | -4 | 3.8 % |
Taxes | 2,042 | 2,219 | -8.0 % |
Change in working capital | |||
Increase/decrease in trade and other receivables | 10,388 | -4,980 | -308.6 % |
Increase/decrease in inventories | -4,576 | 857 | -634.2 % |
Increase/decrease in trade and other payables | -12,039 | 4,514 | -366.7 % |
Increase/decrease in provisions | 1,637 | 527 | 210.9 % |
Paid interests and other financial expenses | -1,416 | -986 | 43.6 % |
Received interests and dividends | 1,036 | 325 | 218.5 % |
Paid taxes | -1,725 | -1,796 | -4.0 % |
Cash flow from operating activities | 4,057 | 15,009 | -73.0 % |
Cash flow from investing activities | |||
Purchases of property, plant and equipment (PPE) | -3,849 | -825 | 366.5 % |
Proceeds from sales of PPE | 475 | 166 | 186.1 % |
Purchases of intangible assets | -4,900 | -4,843 | 1.2 % |
Purchase of investments | -77 | -143 | -46.2 % |
Acquisition of subsidiary, net of cash acquired | -1,050 | 0 | n/a |
Net cash used in investing activities | -9,401 | -5,645 | 66.5 % |
Cash flow from financing activities | |||
Proceeds from borrowings | 0 | 4,087 | -100.0 % |
Payments of borrowings | -489 | -10,009 | -95.1 % |
Payments of lease liabilities | -4,499 | -655 | 586.9 % |
Dividends paid | -3,630 | -1,816 | 99.9 % |
Net cash used in financing activities | -8,618 | -8,393 | 2.7 % |
Change in cash | |||
Cash and cash equivalents 1.1. | 22,240 | 21,230 | 4.8 % |
Effect of currency changes | -28 | 39 | -171.8 % |
Cash and cash equivalents 31.12. | 8,249 | 22,240 | -62.9 % |
Consolidated statement of changes in equity,1000 euros | ||||||||||
Attributable to equity holders of the parent (tEUR) | ||||||||||
A | Share capital | |||||||||
B | Share premium | |||||||||
C | Translation differences | |||||||||
D | Retained earnings | |||||||||
E | Invested free capital | |||||||||
F | Other funds | |||||||||
G | Total | |||||||||
H | Share of non-controlling interest | |||||||||
I | Total equity | |||||||||
A | B | C | D | E | F | G | H | I | ||
Equity | 6,967 | 1,504 | -1,569 | 66,694 | 3,140 | -92 | 76,642 | 522 | 77,163 | |
New standards & other changes | 49 | 49 | 49 | |||||||
Total comprehensive income for the period | 0 | 0 | -1,327 | 0 | 19 | -1,308 | -327 | -1,634 | ||
Dividends | 0 | 0 | 0 | -3,628 | 0 | 0 | -3,628 | 0 | -3,628 | |
Equity-settled share-based payments | 529 | 529 | 0 | 529 | ||||||
Translation differences | 0 | 0 | -25 | 302 | 0 | 11 | 288 | 10 | 298 | |
Equity | 6,967 | 1,504 | -1,594 | 62,618 | 3,140 | -62 | 72,573 | 206 | 72,779 | |
Business segments 2019, | Video and Broadband Solutios | Network Services | Group |
External sales | |||
Services | 4,087 | 94,106 | 98,193 |
Goods | 137,264 | 0 | 137,264 |
External sales total | 141,351 | 94,106 | 235,457 |
Operating profit of segments | 8,056 | -347 | 7,711 |
Unallocated item | -6,942 | ||
Financial items | -380 | ||
Profit before taxes | 388 | ||
Business segments 2018, | Video and Broadband Solutions | Network Services | Group |
External sales | |||
Services | 4,687 | 111,669 | 116,356 |
Goods | 133,990 | 0 | 133,990 |
External sales total | 138,677 | 111,669 | 250,346 |
Operating profits of the segments | 7,738 | 1,983 | 9,721 |
Financial items | -661 | ||
Profit before taxes | 9,060 |
Geographical segments 2019, | Nordic countries | Other | Others | Group | |
Sales by origin | 20,607 | 184,232 | 15,799 | 14,820 | 235,458 |
Assets | 590 | 9,779 | 50,776 | 112 | 61,257 |
Capital expenditure for the period | 236 | 7,426 | 4,632 | 685 | 12,980 |
Geographical segments 2018, | Nordic countries | Other | Others | Group | |
Sales by origin | 24,606 | 201,367 | 15,172 | 9,201 | 250,346 |
Assets | 348 | 7,013 | 43,520 | 122 | 51,003 |
Capital expenditure for the period | 228 | 1,618 | 5,143 | 0 | 6,989 |
Segment information per quarter,1000 eur | 10-12/19 | 7-9/19 | 4-6/19 | 1-3/19 | 10-12/18 | 1-12 /2019 | 1-12 /2018 |
Video and Broadband Solutions | |||||||
Order intake | 41,807 | 25,864 | 36,094 | 39,690 | 51,142 | 143,455 | 152,307 |
Net sales | 36,142 | 34,641 | 35,291 | 35,277 | 36,691 | 141,351 | 138,677 |
EBIT | 1,266 | 3,013 | 1,569 | 2,208 | 1,942 | 8,056 | 7,738 |
EBIT % | 3.5 % | 8.7 % | 4.4 % | 6.3 % | 5.3 % | 5.7 % | 5.6 % |
Network Services | |||||||
Order intake | 22,340 | 25,491 | 22,952 | 23,323 | 29,829 | 94,106 | 111,669 |
Net sales | 22,340 | 25,491 | 22,952 | 23,323 | 29,829 | 94,106 | 111,669 |
EBIT | -389 | 228 | 715 | -901 | 291 | -347 | 1,983 |
EBIT % | -1.7 % | 0.9 % | 3.1 % | -3.9 % | 1.0 % | -0.4 % | 1.8 % |
Total segments | |||||||
Order intake | 64,147 | 51,355 | 59,046 | 63,013 | 80,970 | 237,561 | 263,976 |
Net sales | 58,482 | 60,132 | 58,243 | 58,600 | 66,519 | 235,457 | 250,346 |
EBIT | 877 | 3,241 | 2,284 | 1,307 | 2,233 | 7,711 | 9,721 |
EBIT % | 1.5 % | 5.4 % | 3.9 % | 2.2 % | 3.4 % | 3.3 % | 3.9 % |
Total group | |||||||
Unallocated item | 356 | 0 | 0 | -7,298 | 0 | -6,942 | 0 |
EBIT | 1,237 | 3,241 | 2,284 | -5,991 | 2,233 | 769 | 9,721 |
EBIT% | 2.1 % | 5.4 % | 3.9 % | -10.2 % | 3.4 % | 0.3 % | 3.9 % |
Net sales by category,1000 euro | 10-12/19 | 7-9/19 | 4-6/19 | 1-3/19 | 10-12/18 | 1-12 /2019 | 1-12 /2018 |
Goods | 34,763 | 33,854 | 34,235 | 34,411 | 40,304 | 137,264 | 138,677 |
Service | 23,719 | 26,277 | 24,008 | 24,189 | 26,216 | 98,193 | 111,669 |
Total | 58,482 | 60,131 | 58,243 | 58,600 | 66,520 | 235,457 | 250,346 |
Order backlog | |||||
Thousand euro | 12/19 | 9/19 | 6/19 | 3/19 | 12/18 |
VBS order backlog end of period | 73,223 | 67,456 | 76,233 | 75,429 | 71,017 |
Commitments and contingencies, | 2019 | 2018 | Change % |
Lease liabilities | 886 | 3,698 | -76.0 % |
Value of underlying forward contracts | 21,146 | 20,674 | 2.3 % |
Market value of forward contracts | -48 | 227 | -121.0 % |
Interest rate swap | 10,000 | 10,000 | 0.0 % |
Market value of interest swap | -65 | -81 | -19.2 % |
Guarantees | 2,197 | 2,812 | -21.9 % |
The number of employees broken down by following categories 31.12. | 2019 | 2018 | Change % |
Research and development | 238 | 148 | 60.8 % |
Production and material management | 837 | 937 | -10.7 % |
Sales and marketing | 149 | 190 | -21.6 % |
Administration | 106 | 78 | 35.9 % |
Total | 1,330 | 1,353 | -1.7 % |
IFRS | IFRS | IFRS | IFRS | IFRS | |
Key figures | 2019 | 2018 | 2017 | 2016 | 2015 |
Profit and loss account, balance sheet | |||||
Net sales, Meur | 235.5 | 250.3 | 234.6 | 259.5 | 247.8 |
Change % | -5.9 % | 6.7 % | -9.6 % | 4.8 % | 25.7 % |
Sales outside | 93.3 % | 93.9 % | 94.3 % | 93.3 % | 95.1 % |
Operating profit, Meur | 0.8 | 9.7 | -7.5 | 15.6 | 14.3 |
% of net sales | 0.3 % | 3.9 % | -3.2 % | 6.0 % | 5.8 % |
Profit after financial items, Meur | 0.4 | 9.1 | -8.5 | 14.8 | 13.9 |
% of net sales | 0.2 % | 3.6 % | -3.6 % | 5.7 % | 5.6 % |
Profit before taxes, Meur | 0.4 | 9.1 | -8.5 | 14.8 | 13.9 |
% of net sales | 0.2 % | 3.6 % | -3.6 % | 5.7 % | 5.6 % |
Profit for the financial period, Meur | -1.7 | 6.8 | -9.1 | 11.8 | 11.0 |
% of net sales | -0.7 % | 2.7 % | -3.9 % | 4.6 % | 4.4 % |
R&D expenditure, Meur | 13.5 | 12.5 | 12.1 | 11.1 | 11.0 |
% of net sales | 5.7 % | 5.0 % | 5.1 % | 4.3 % | 4.4 % |
Gross investments, Meur | 13.0 | 7.0 | 7.5 | 5.5 | 16.9 |
% of net sales | 5.5 % | 2.8 % | 3.2 % | 2.1 % | 6.8 % |
Interest bearing liabilities, Meur | 33.0 | 26.8 | 33.2 | 30.6 | 33.0 |
Shareholder's equity, Meur | 72.8 | 77.2 | 71.4 | 84.4 | 77.5 |
Total assets, Meur | 149.6 | 159.0 | 153.5 | 162.1 | 164.5 |
Personnel and orders | |||||
Average personnel | 1,363 | 1,393 | 1,492 | 1,514 | 1,485 |
Order backlog at year end, Meur | 73.2 | 71.0 | 57.4 | 26.9 | 42.2 |
Orders received, Meur | 237.6 | 264.0 | 262.9 | 244.3 | 251.3 |
Key metrics | |||||
Return on equity, % | -2.2 % | 9.2 % | -11.7 % | 14.6 % | 14.9 % |
Return on capital employed, % | 1.6 % | 9.3 % | -6.6 % | 14.8 % | 14.2 % |
Equity ratio, % | 49.5 % | 51.7 % | 48.3 % | 52.5 % | 48.3 % |
Net gearing, % | 34.1 % | 5.9 % | 16.8 % | 25.0 % | 26.3 % |
Earnings per share, euro | -0.07 | 0.38 | -0.50 | 0.65 | 0.61 |
Earnings per share fully diluted, euro | -0.07 | 0.38 | -0.50 | 0.65 | 0.61 |
Shareholders equity per share, euro | 4.00 | 4.25 | 3.94 | 4.66 | 4.28 |
ALTERNATIVE PERFORMANCE MEASURES | |||||
Adjusted operating profit | 7,711 | 9,721 | -7,549 | 15,635 | 14,302 |
Adjusted earnings per share, EUR | 0.31 | 0.38 | -0.50 | 0.65 | 0.61 |
BRIDGE OF CALCULATION | |||||
Operating profit | 769 | 9,721 | -7,549 | 15,635 | 14,302 |
Cost item caused by a crime | 6,942 | 0 | 0 | 0 | 0 |
Adjusted operating profit | 7,711 | 9,721 | -7,549 | 15,635 | 14,302 |
Net profit/loss to equity holder | -1,327 | 6,975 | -9,106 | 11,820 | 11,011 |
Outstanding shares during the quarter | 18,181 | 18,122 | 18,202 | 18,169 | 18,037 |
Earnings per share, basic | -0.07 | 0.38 | -0.50 | 0.65 | 0.61 |
Net profit/loss to equity holder | -1,327 | 6,975 | -9,106 | 11,820 | 11,011 |
Cost item caused by a crime | 6,942 | 0 | 0 | 0 | 0 |
Outstanding shares during the quarter | 18,181 | 18,122 | 18,202 | 18,169 | 18,037 |
Adjusted earnings per share, EUR | 0.31 | 0.38 | -0.50 | 0.65 | 0.61 |
Highest price, euro | 6.80 | 7.58 | 9.62 | 10.24 | 9.88 |
Lowest price, euro | 5.04 | 5.12 | 6.51 | 7.29 | 5.32 |
Closing price, euro | 5.34 | 5.26 | 6.68 | 8.86 | 9.80 |
Average price, euro | 5.72 | 6.72 | 8.19 | 8.69 | 7.42 |
Price per earnings | -73.2 | 13.8 | -13.3 | 13.6 | 16.1 |
Market capitalization, Meur | 101.4 | 99.9 | 126.8 | 160.6 | 177.6 |
Stock turnover, Meur | 9.2 | 13.3 | 16.8 | 30.6 | 24.6 |
Turnover, number in millions | 1.6 | 2.0 | 2.0 | 3.5 | 3.3 |
Turnover, % of share capital | 8.5 % | 10.4 % | 10.8 % | 18.5 % | 17.5 % |
Average number of shares | 18985588 | 18985588 | 18985588 | 18985588 | 18985588 |
Number of shares at the year-end | 18985588 | 18985588 | 18985588 | 18985588 | 18985588 |
Average number of shares, diluted w/o own shares | 18181177 | 18168088 | 18202396 | 18169002 | 18036667 |
Number of shares at the year-end, diluted w/o own shares | 18207708 | 18155300 | 18172350 | 18216369 | 18121635 |
Paid dividend, Meur | 1.8 | 3.6 | 1.8 | 4.5 | 4.2 |
Dividend per share, euro | 0.10* | 0.20 | 0.10 | 0.25 | 0.23 |
Dividend per net result, % | neg. | 53.1 % | neg. | 38.3 % | 37.7 % |
Effective dividend yield, % | 1.9 % | 3.8 % | 1.5 % | 2.8 % | 2.3 % |
* The Board's proposal to the AGM |
Number of shares | % of shares | % of votes | |
798,821 | 4.21% | 4.21% |
Major shareholders | Number of shares | % of share capital |
4,409,712 | 23.2 | |
1,683,900 | 8.9 | |
899,475 | 4.7 | |
824,641 | 4.3 | |
798,821 | 4.2 | |
521,150 | 2.7 | |
500,000 | 2.6 | |
Wipunen varainhallinta Oy | 400,000 | 2.1 |
397,162 | 2.1 | |
260,408 | 1.4 |
Shareholders by sector | Number of shareholders | % of Owners | Number of shares | % of shares |
Households | 5,167 | 93.7 | 4,775,530 | 25.2 |
Public sector institutions | 3 | 0.1 | 1,920,625 | 10.1 |
Financial and insurance institutions | 24 | 0.4 | 4,663,318 | 24.6 |
Corporations | 265 | 4.8 | 7,487,972 | 39.4 |
Non-profit institutions | 22 | 0.4 | 56,685 | 0.3 |
Foreign and nominee registered owners | 34 | 0.6 | 81,458 | 0.4 |
Total | 5,515 | 100.0 | 18,985,588 | 100.0 |
Of which nominee registered | 10 | 0.2 | 1,073,289 | 5.7 |
Number of shares | Number of shareholders | % of shareholders | Number of shares | % of shares |
1 - 100 | 1,512 | 27.4 | 88,876 | 0.5 |
101 - 500 | 2,292 | 41.6 | 615,299 | 3.2 |
501 – 1,000 | 779 | 14.1 | 629,379 | 3.3 |
1,001 – 5,000 | 744 | 13.5 | 1,649,207 | 8.7 |
5,001 – 10,000 | 78 | 1.4 | 535,194 | 2.8 |
10,001 – 50,000 | 81 | 1.5 | 1,635,773 | 8.6 |
50,001 – 100,000 | 7 | 0.1 | 507,208 | 2.7 |
100,001 – 500,000 | 15 | 0.3 | 3,358,122 | 17.7 |
500,001 - | 7 | 0.1 | 9,966,530 | 52.5 |
Total | 5,515 | 100.0 | 18,985,588 | 100.0 |
of which nominee registered | 10 | 0.2 | 1,073,289 | 5.7 |
CALCULATION OF KEY FIGURES
Return on equity: | Profit/loss for the financial period ------------------------------ * 100 Shareholders’ equity (average) |
Return on capital employed: | Profit/loss for the period after financial items + financing charges ------------------------------ * 100 Total assets - non-interest-bearing liabilities (average) |
Equity ratio: | Shareholders' equity ----------------------------- * 100 Total assets - advances received |
Gearing: | Interest bearing liabilities - cash in hand and in bank - interest bearing assets ----------------------------- * 100 Shareholders' equity |
Earnings per share: | Profit for the period attributable to equity holder of the parent ---------------------------------------------- Weighted average number of ordinary shares outstanding during the period |
Earnings per share, diluted: | Profit for the period attributable to equity holder of the parent (diluted) ----------------------------------------------- Average number of shares - own shares + number of options at the period-end |
ALTERNATIVE PERFORMANCE MEASURES
Effective from the beginning of 2019,
Adjusted operating profit | Operating profit is adjusted with items which are non-recurring or infrequently. |
Adjusted earnings per share: | Adjusted Profit for the period attributable to equity holder of the parent ---------------------------------------------- Weighted average number of ordinary shares outstanding during the period |
New Standard
A simplified method has been used for the transition, and the comparison figures from the year preceding the transition have not been adjusted. The Group made use of an easement allowed in the standard according to which short-term leases or assets with minor value do not need to be recognised on the balance sheet. The impact of the new standard is an increase of -
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- Teleste FT 2019 ENG
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