- Net sales amounted to
- Q4 net sales amounted to
- Operating result totalled
- Q4 operating result totalled
- Profit before taxes was
- Cash flow from business operations was
- Earnings per share were
- Equity ratio was 54.8 (54.0) per cent.
- Order books stood at
- The Board of Directors' proposal for the distribution of profit is
- Group's euro-denominated operating profit is expected to be on a par with 2019 in 2020.
PRESIDENT AND CEO
Our order book was divided into two halves in 2019. During the first half, we broke our all-time record for orders, while economic uncertainties started to materialise in demand for forest machines during the latter half. At the same time, damage caused by bark beetles in
The total forest machine market grew, especially in
All our business areas, apart from trade-in machine sales, grew steadily during the period under review. Sales of new machines developed positively, driven by our factory's increasing production volumes, and our service businesses grew moderately. The trade-in machine market was clearly more challenging than during the comparison period, and sales fell slightly short of the comparison period's level. We were unable to reach our targeted growth in trade-in machine sales, while the turnover of our trade-in machine stocks remained at a high level.
In 2019,
Our Vieremä factory performed well, despite the year being so difficult. The new factory operated efficiently, and our manufacturing network is developing continuously. During 2019, we made investments in our factory and our service business network. Factory investments mainly focused on logistics automation and measuring systems. In our service network, we invested in a new service centre in Mikkeli and in our training centre in
We are developing
Consolidated net sales for the period under review amounted to
Net sales were regionally distributed as follows:
PROFIT PERFORMANCE
The operating result amounted to
Staff costs for the period totalled
STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES
At the end of the period under review, the total consolidated statements of financial position amounted to
Cash flow from operating activities amounted to
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled
DISTRIBUTION NETWORK
The subsidiaries included in the
R&D AND CAPITAL EXPENDITURE
Group's R&D expenses during the period under review totalled
Capital expenditure totalled
ANNUAL GENERAL MEETING
Annual General Meeting was held in Vieremä,
The AGM decided to pay a dividend of
Annual General Meeting authorised the Board of Directors to decide on the acquisition of treasury shares so that shares can be acquired in one or several instalments to a maximum of 250,000 shares. The maximum amount corresponds to approximately 0.89 per cent of the company's total shares and votes.
The shares will be acquired in public trading organised by Nasdaq Helsinki ("the
The Board may, pursuant to the authorisation, only decide upon the acquisition of the treasury shares using the company's unrestricted shareholders' equity.
The authorisation is required for supporting the company's growth strategy in the company's potential mergers and acquisitions or other arrangements. In addition, shares can be distributed to the company's current shareholders, used for increasing shareholders' ownership value by invalidating shares after their acquisition or used in personnel incentive systems. The authorisation includes the right of the Board to decide upon all other terms and conditions in the acquisition of treasury shares.
The authorisation is valid until the next Annual General Meeting; however, no later than
The AGM authorised the Board of Directors to decide on the assignment of treasury shares held by the company in one or more tranches for payment or without payment so that a maximum of 250,000 shares will be issued on the basis of the authorisation. The maximum amount corresponds to approximately 0.89 per cent of the company's total shares and votes.
The authorisation includes the right of the Board to decide upon all other terms and conditions of the share issue. Thus, the authorisation includes the right to organise a directed issue in deviation of the shareholders' subscription rights under the provisions prescribed by law.
The authorisation is used in supporting the Company's growth strategy in the Company's potential corporate acquisitions or other arrangements. In addition, the shares can be issued to the Company's current shareholders, sold through public trading or used in personnel incentive systems. A directed share issue may only be free of charge if there is a particularly weighty economic reason for this considering the company, taking into account the interests of the company and all of its shareholders.
The authorisation is valid until the next Annual General Meeting; however, no later than
Annual General Meeting authorised the Board of Directors to decide on a directed share issue and to issue special rights entitling to shares as referred to in Section 10(1) of the Finnish Limited Liability Companies Act, in one or more tranches, for payment or without a payment.
Based on the authorisation, a maximum of 200,000 shares can be issued, which is approximately 0.7 per cent of the current total number of shares in the company. Shares can be issued as part of the company's share-based incentive plans. The Board of Directors will decide on all the terms and conditions for the granting of special rights entitling to shares in the share issue. Based on the authorisation, a derogation from the pre-emptive subscription right of shareholders (targeted share issue) may be granted for the special rights entitling to shares. A directed issue may only be free of charge if there is a particularly weighty economic reason for this considering the company, taking into account the interests of the company and all of its shareholders.
The authorisation is valid until the next Annual General Meeting, however no later than
BOARD OF DIRECTORS AND THE COMPANY'S AUDITORS
Juha Vidgrén acted as Chairman of the Board and Mammu Kaario as Vice Chairman of the Board. Members of the Board were Matti Kylävainio,
The Board of Directors did not establish any committees or commissions from among its members.
The Board of Directors convened nine times during the period under review. The attendance rate was 88.9 percent.
During the period under review, auditing firm
MANAGEMENT
The following persons were members of the Management Team:
The area director organisation of sales is led by Jarmo Vidgrén, the Group's sales and marketing director, and
The geographical distribution and the responsible persons are presented below:
Central and
Clément Puybaret (
PERSONNEL
The Group had an average staff of 1,761 (1,635) during the period and employed 1,764 (1,692) people at period-end.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The trading volume of
At the end of the period, shares closed at
At the end of the period under review, the company held 227 treasury shares.
QUALITY, ENVIRONMENT AND OCCUPATIONAL HEALTH AND SAFETY
Implementation of the principles of sustainable development and responsible leadership are guided by the management systems based on the company's quality, environmental and occupational safety and health standards. At
At
Production processes are continuously developed in accordance with the operating model of continuous improvement. The company's quality assurance system emphasises the importance of prevention. During the period under review, great focus was put on a procedure development model internal to the company, which is based on principles of Ponsse Production System.
GOVERNANCE
In its decision-making and administration, the company observes the Finnish Limited Liability Companies Act, other regulations governing publicly listed companies and the company's Articles of Association. The company's Board of Directors has adopted the Code of Governance that complies with the Finnish Corporate Governance Code approved by the Board of the
The Code of Governance is available on
RISK MANAGEMENT
Risk management is based on the company's values, as well as strategic and financial objectives. Risk management aims to support the achievement of the objectives specified in the company's strategy, as well as to ensure the financial development of the company and the continuity of its business.
Furthermore, risk management aims to identify, assess and monitor business-related risks which may influence the achievement of the company's strategic and financial goals or the continuity of its business. Decisions on the necessary measures to anticipate risks and react to observed risks are made on the basis of this information.
Risk management is a part of regular daily business, and it is also included in the management system. Risk management is controlled by the risk management policy approved by the Board.
A risk is any event that may prevent the company from reaching its objectives or that threatens the continuity of business. On the other hand, a risk may also be a positive event, in which case the risk is treated as an opportunity. Each risk is assessed on the basis of its impact and probability. Methods of risk management include avoiding, mitigating and transferring risks. Risks can also be managed by controlling and minimising their impact.
SHORT-TERM RISK MANAGEMENT
The insecurity in the world economy may result in a decline in the demand for forest machines. The uncertainty may be increased by the volatility of developing countries' foreign exchange markets. The geopolitical situation, in particular, will increase the uncertainty through financial market operations and sanctions. Changes taking place in the fiscal and customs legislation in countries to which
The parent company monitors the changes in the Group's internal and external trade receivables and the associated risk of impairment.
The key objective of the company's financial risk management policy is to manage liquidity, interest and currency risks. The company ensures its liquidity through credit limit facilities agreed with a number of financial institutions. The effect of adverse changes in interest rates is minimised by utilising credit linked to different reference rates and by concluding interest rate swaps. The effects of currency rate fluctuations are mitigated through derivative contracts.
EVENTS AFTER THE PERIOD
The company has no important events after the conclusion of the period under review.
OUTLOOK FOR THE FUTURE
The Group's euro-denominated operating profit is expected to be on a par with 2019 in 2020.
ANNUAL GENERAL MEETING
BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF PROFIT
The parent company
The company's Board of Directors proposes to the Annual General Meeting that a dividend of
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (
[][]
IFRS IFRS
1-12/19 1-12/18
Increase 15,718 -1,508
(+)/decrease (-) in
inventories of
finished goods and
work in progress
Other operating 3,046 2,768
income
Raw materials and -447,390 -395,660
services
Expenditure on -92,693 -85,289
employment-related
benefits
Depreciation and -21,219 -15,836
amortisation
Other operating -57,563 -55,193
expenses
OPERATING RESULT 67,302 61,717
Share of results of 305 -77
associated companies
Financial income and -1,032 -5,317
expenses
RESULT BEFORE TAXES 66,574 56,324
Income taxes -14,564 -12,625
NET RESULT FOR THE 52,010 43,699
PERIOD
OTHER ITEMS INCLUDED
IN TOTAL
COMPREHENSIVE
RESULT:
Translation 2,373 -318
differences related
to foreign units
TOTAL COMPREHENSIVE 54,383 43,381
RESULT FOR THE
PERIOD
Diluted and 1.86 1.56
undiluted earnings
per share[*]
IFRS IFRS
10-12/19 10-12/18
Increase -13,508 -10,031
(+)/decrease (-) in
inventories of
finished goods and
work in progress
Other operating 940 825
income
Raw materials and -122,785 -120,416
services
Expenditure on -25,630 -24,602
employment-related
benefits
Depreciation and -5,596 -4,385
amortisation
Other operating -16,027 -15,567
expenses
OPERATING RESULT 20,729 22,377
Share of results of 277 -12
associated companies
Financial income and 468 -326
expenses
RESULT BEFORE TAXES 21,474 22,039
Income taxes -3,967 -3,475
NET RESULT FOR THE 17,507 18,563
PERIOD
OTHER ITEMS INCLUDED
IN TOTAL
COMPREHENSIVE
RESULT:
Translation -96 -969
differences related
to foreign units
TOTAL COMPREHENSIVE 17,411 17,595
RESULT FOR THE
PERIOD
Diluted and 0.63 0.66
undiluted earnings
per share[*]
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (
IFRS IFRS
ASSETS
NON-CURRENT ASSETS
Intangible assets 32,213 26,298
Property, plant and equipment 118,507 108,818
Financial assets 370 103
Investments in associated companies 849 545
Non-current receivables 1,196 2,447
Deferred tax assets 3,844 3,242
TOTAL NON-CURRENT ASSETS 160,773 145,252
CURRENT ASSETS
Inventories 153,158 126,628
Trade receivables 47,171 43,379
Income tax receivables 351 1,423
Other current receivables 16,646 11,275
Cash and cash equivalents 48,704 51,105
TOTAL CURRENT ASSETS 266,030 233,811
TOTAL ASSETS 426,803 379,063
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000
Other reserves 3,460 3,462
Translation differences 5,399 3,027
Retained earnings 216,264 186,667
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 232,121 200,155
NON-CURRENT LIABILITIES
Interest-bearing liabilities 48,030 45,651
Deferred tax liabilities 1,407 1,295
Other non-current liabilities 23 43
TOTAL NON-CURRENT LIABILITIES 49,460 46,990
CURRENT LIABILITIES
Interest-bearing liabilities 33,652 23,920
Provisions 3,450 5,418
Tax liabilities for the period 3,021 808
Trade creditors and other current liabilities 105,099 101,773
TOTAL CURRENT LIABILITIES 145,221 131,919
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 426,803 379,063
CONSOLIDATED STATEMENT OF CASH FLOWS (
IFRS IFRS
1-12/19 1-12/18
CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period 52,010 43,699
Adjustments:
Financial income and expenses 1,032 5,317
Share of the result of associated companies -305 77
Depreciation and amortisation 21,219 15,836
Income taxes 14,564 12,625
Other adjustments -790 -3,127
Cash flow before changes in working capital 87,730 74,427
Change in working capital:
Change in trade receivables and other receivables -7,828 -1,545
Change in inventories -24,187 -6,089
Change in trade creditors and other liabilities 2,398 8,642
Change in provisions for liabilities and charges -1,968 -351
Interest received 301 244
Interest paid -765 -770
Other financial items -882 -2,458
Income taxes paid -11,944 -12,866
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 42,854 59,232
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -28,567 -32,916
Proceeds from sale of tangible and intangible assets 322 675
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -28,245 -32,240
CASH FLOWS FROM FINANCING ACTIVITIES
Acquisition of treasury shares 0 -93
Withdrawal/Repayment of current loans 7,166 1,845
Repayment of non-current loans 0 -450
Withdrawal/Repayment of finance lease liabilities -2,402 33
Change in non-current receivables 832 670
Dividends paid -22,400 -20,975
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) -16,803 -18,970
Change in cash and cash equivalents (A+B+C) -2,194 8,022
Cash and cash equivalents on 1 Jan 51,105 42,596
Impact of exchange rate changes -208 488
Cash and cash equivalents on 31 Dec 48,704 51,105
*) Enabled by the new consolidation programme, the company changed over to presenting the exchange rate effects included in the cash flow statement in a way that allows unrealised exchange rate effects to be eliminated in the cash flow statement more accurately. As a result, previously reported cash flows have been adjusted to allow comparability. The previously reported cash flow from business operations was
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (
A = Share capital
B = Share premium
and other reserves
C = Translation
differences
D =
E = Retained
earnings
F = Total
shareholders' equity
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS
A B C D E F
SHAREHOLDERS' EQUITY 7,000 3,462 3,027 0 186,667 200,155
Translation 2,373 2,373
differences
Result for the 52,010 52,010
period
Total comprehensive 2,373 52,010 54,383
income for the
period
Matching Share Plan -2 -13 -15
Dividend -22,400 -22,400
distribution
Acquisition of -2 -2
treasury shares
Direct entries to
retained earnings
SHAREHOLDERS' EQUITY 7,000 3,460 5,400 -2 216,264 232,121
SHAREHOLDERS' EQUITY 7,000 2,452 -183 -346 167,923 176,846
Adjustment for -29 3,528 -3,525 -26
previous periods *)
SHAREHOLDERS' EQUITY 7,000 2,423 3,345 -346 164,398 176,819
Translation -318 -318
differences
Result for the 43,699 43,699
period
Total comprehensive -318 43,699 43,381
income for the
period
Matching Share Plan 1,039 439 -439 1,039
Dividend -20,975 -20,975
distribution
Acquisition of -93 -93
treasury shares
Direct entries to -16 -16
retained earnings
SHAREHOLDERS' EQUITY 7,000 3,462 3,027 0 186,667 200,155
*) As a result of the new consolidation system, the company is now able to present, from the beginning of the financial year 2018, all exchange rate differences on equity in the translation difference. Exchange differences for previously accrued retained earnings are presented within the profits. The change has no effect on previously reported key figures.
31 31
Dec Dec
19 18
1. LEASING 858 1,342
COMMITMENTS
(
2. CONTINGENT 31 31
LIABILITIES Dec Dec
(
Guarantees 20 20
given on
behalf of
others
Responsibility 8,700 7,839
of checking
the VAT
deductions
made on real
property
investments
Other 159 87
commitments
TOTAL 8,879 7,946
3. PROVISIONS Guarantee
(
Provisions 500
added
Provisions -2,469
cancelled
31 December 3,450
2019
AND RATIOS Dec Dec
19 18
R&D 19.3 17.5
expenditure,
MEUR
Capital 28.6 32.9
expenditure,
MEUR
as % of net 4.3 5.4
sales
Average number 1,761 1,635
of employees
Order books, 256.8 294.9
MEUR
Equity ratio, 54.8 54.0
%
Diluted and 1.86 1.56
undiluted
earnings per
share (EUR)
Equity per 8.29 7.15
share (EUR)
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before taxes + financial expenses
---------------------------------------------------------------------------------------------------------------------
Shareholder's equity + interest-bearing financial liabilities (average during the year) * 100
Average number of employees:
Average of the number of personnel at the end of each month. The calculation has been adjusted for part-time employees.
Net gearing, %:
Interest-bearing financial liabilities - cash and cash equivalents
-----------------------------------------------------------------------------------
Shareholders' equity * 100
Equity ratio, %:
Shareholders' equity + Non-controlling interests
------------------------------------------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Net result for the period - Non-controlling interests
-----------------------------------------------------------------------------------------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Shareholders' equity
---------------------------------------------------------------------------------------------
Number of shares on the balance sheet date, adjusted for share issues
ORDER INTAKE (EUR million) 1-12/19 1-12/18
The stock exchange release for annual financial statements has been prepared observing the recognition and valuation principles of IFRS, and the requirements of IAS 34 have been complied with. The same accounting principles were observed for the closing of the books as for the annual financial statements dated
As a result of the new IFRS 16 "Leases" standard, the Group recognised non-cancellable leases on the balance sheet. The Group made use of an easement allowed in the standard according to which short-term leases of assets with minor value do not need to be recognised on the balance sheet. For non-fixed-term leases, the Group only recognises on the balance sheet leases with a term of notice longer than 12 months that do not include a significant cancellation clause. At the end of the period under review, the right-of-use assets amounted to
The above figures have not been audited.
The above figures have been rounded and may therefore differ from those given in the official financial statements.
This communication includes future-oriented statements that are based on the assumptions currently made by the company's management and its current decisions and plans. Although the management believes that the future expectations are well founded, there is no certainty that these expectations will prove to be correct. This is why the results may significantly deviate from the assumptions included in the future-oriented statements as a result of, among other things, changes in the economy, markets, competitive conditions, legislation or currency exchange rates.
Vieremä,
President and CEO
FURTHER INFORMATION
DISTRIBUTION
Principal media
www.ponsse.com
The company was established by forest machine entrepreneur Einari Vidgrén in 1970, and it has been a leader in timber harvesting solutions based on the cut-to-length method ever since.
https://news.cision.com/ponsse-oyj/r/ponsse-s-financial-statements-for-1-january---31-december-2019,c3037787
https://mb.cision.com/Public/18192/3037787/874f956338109e4c.pdf
(c) 2020 Cision. All rights reserved., source