TELESTE CORPORATION FINANCIAL STATEMENT RELEASE
The income statement figures presented in this financial statement review only include continuing operations, unless otherwise provided. The figures in the balance sheet and the cash flow statement include both continuing and discontinued operations.
Fourth quarter of 2020, continuing operations
- Net sales amounted to
- Adjusted operating result stood at
- Operating result amounted to
- Earnings per share were
- Earnings per share including discontinued operations amounted to
- Cash flow from operations, including discontinued operations, was
- Orders received totalled
- Order backlog at period-end totalled
January-
- Net sales amounted to
- Adjusted operating result stood at
- Operating result stood at
- Earnings per share were
- Earnings per share including discontinued operations amounted to
- Cash flow from operations including discontinued operations was
- Orders received totalled
The Board of Directors proposes a dividend of
Outlook for 2021
However, the COVID-19 pandemic continues to cause uncertainty among
Comments by CEO
"The net sales and operating result for Q4 decreased year-on-year. Orders received increased from the previous quarter but decreased from the reference period. The order backlog at the end of the year was at a higher level than a year ago. The key themes of the past quarter were the management of the impacts of the still continuing COVID-19 pandemic and managing the operations under exceptional circumstances, the continued technological transformation of cable access networks and finalising the divestment project pertaining to the services business in
Orders received by Video and Broadband Solutions decreased in video security and information solutions from the reference period of the fourth quarter, mainly due to the delay in the order decisions by the rail traffic segment customers. In respect of the access network products, orders were at the level of the reference period, but the deployments of distributed access architecture have been delayed as we have previously predicted. Customers' delays were also still affected by the COVID-19 pandemic continuing in force in our key target market areas. The order backlog for passenger information solutions for the current year is at a good level, but the COVID-19 pandemic may delay deliveries especially during the first half of the year. Net sales decreased year-on-year in access network products due to the COVID-19 pandemic and as operators prepared for next-generation access network solutions (distributed access architecture and DOCSIS 4.0). As a result of the decrease in net sales, the operating result of Video and Broadband Solutions decreased year-on-year. During the pandemic, our operator customers have been focused on maintaining the operation of the critical network infrastructure and postponed non-vital network investments. The decline in the demand for access network products affects the entire industry, and we estimate that we have maintained our strong market position in the European market during these exceptional times. As the net sales of HFC products declined, we had to continue to pursue cost savings in various functions. Despite cost savings, we have systematically continued our key product development projects. The growth we pursued in the Northern American market with the distributed access architecture solutions has been delayed due to the pandemic. We still believe in substantial growth possibilities in the selected strategic areas.
The net sales of the continuing operations of Network Services was at the level of the reference year, and profitability continued at a good level during the last quarter of the year. Profitability was at a good level especially in
The year 2020 was exceptional. The coronavirus and its preventive measures created considerable and unpredictable challenges globally, which also had an impact on
Group Operations October-
Key figures | 10-12/2020 | 10-12/2019 | Change |
Net sales, EUR million | 39.2 | 41.6 | -5.7% |
Adjusted EBIT, EUR million 1) | 1.3 | 1.8 | -27.5% |
Adjusted EBIT, % 1) | 3.3% | 4.2% | |
EBIT, EUR million | 1.3 | 2.1 | -39.7% |
EBIT, % | 3.3% | 5.1% | |
Result for the period | 0.9 | 1.6 | -44.8% |
Result for the period, EUR million 2) | 2.4 | 0.7 | +247.8% |
Earnings per share, EUR | 0.05 | 0.10 | -49.4% |
Earnings per share, EUR 2) | 0.14 | 0.05 | +155.6% |
Cash flow from operations, EUR million 2) | 4.6 | 7.9 | -41.2% |
Orders received, EUR million | 43.2 | 47.2 | -8.6% |
1) An alternative performance measure defined in the tables section of the report.
2) Including discontinued operations
Orders received by the Group in the fourth quarter totalled
Expenses for material and production services decreased by 5.3% to
Group Operations January-
Key figures | 1-12/2020 | 1-12/2019 | Change |
Net sales, EUR million | 145.0 | 165.3 | -12.3% |
Adjusted EBIT, EUR million 1) | 5.1 | 8.8 | -42.6% |
Adjusted EBIT, % 1) | 3.5% | 5.3% | |
Adjusted EBIT, EUR million 3) | 4.5 | 1.9 | +138.9% |
EBIT, % | 3.1% | 1.1% | |
Result for the period, EUR million | 2.8 | -0.3 | |
Result for the period, EUR million 2) | -8.0 | -1.7 | |
Earnings per share, EUR | 0.16 | -0.00 | |
Earnings per share, EUR 2) | -0.43 | -0.07 | |
Cash flow from operations, EUR million 2) 3) | 13.1 | 4.1 | 222.2% |
Net gearing, % 2) | 17.0% | 34.1% | |
Equity ratio, % 2) | 48.8% | 49.5% | |
Orders received, EUR million | 148.8 | 167.5 | -11.1% |
Order backlog, EUR million | 77.1 | 73.2 | +5.3% |
Personnel at period-end | 858 | 867 | -1.1% |
1) An alternative performance measure defined in the tables section of the report.
2) Including discontinued operations
3) The figures of 2019 include a provision totalling
Orders received by the Group decreased by 11.1% to
Expenses for material and production services decreased by 13.6% to
Net financial expenses were
Video and Broadband Solutions October-
10-12/2020 | 10-12/2019 | Change | |
Orders received | 37,877 | 41,807 | -9.4% |
Net sales | 33,891 | 36,142 | -6.2% |
EBIT | 817 | 1,266 | -35.6% |
EBIT, % | 2.4% | 3.5% |
Orders received decreased year-on-year by 9.4% to
Net sales decreased by 6.2% to
R&D expenses amounted to
Video and Broadband Solutions January-
1-12/2020 | 1-12/2019 | Change | |
Orders received | 128,009 | 143,455 | -10.8% |
Net sales | 124,146 | 141,351 | -12.2% |
EBIT | 3,588 | 8,056 | -55.5% |
EBIT, % | 2.9% | 5.7% |
Orders received decreased year-on-year by 10.8% to
R&D expenses amounted to
Network Services October-
10-12/2020 | 10-12/2019 | Change | |
Orders received | 5,309 | 5,419 | -2.0% |
Net sales | 5,309 | 5,419 | -2.0% |
EBIT | 457 | 488 | -6.3% |
EBIT, % | 8.6% | 9.0% |
Orders received and net sales decreased by 2.0% year-on-year, amounting to
Network Services January-
1-12/2020 | 1-12/2019 | Change | |
Orders received | 20,836 | 23,996 | -13.2% |
Net sales | 20,836 | 23,996 | -13.2% |
EBIT | 1,478 | 776 | +90.5% |
EBIT, % | 7.1% | 3.2% |
Orders received and net sales decreased by 13.2% to
Discontinued operations
The result of the operations classified as an asset held for sale pursuant to IFRS 5 ("Non-current assets held for sale and discontinued operations") was
Personnel and organisation January-
The Group's employed an average of 856 (895) people during the review period. Of these, 650 (682) were employed by Video and Broadband Solutions and 206 (213) by Network Services. At the end of the review period, the Group employed 858 (867) people, of whom 47% (45%) worked abroad. Approximately 3% of the Group's employees were working outside
Personnel expenses amounted to
Investments and product development January-
Investments by the Group totalled
Product development projects were 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
On
Key risks faced by the business areas
As to Video and Broadband Solutions, client-specific and integrated deliveries of solutions create favourable conditions for growth, even if the involved resource allocation and technical implementation pose a challenge and therefore also involve reasonable risks. Operator customers' network investments vary according to the development of technology, customers’ need to upgrade networks 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, involve 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 success. Product development contains calculated risks and should they materialise, the value of the product development investments can decrease. Various technologies are used in the 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 a pandemic, or accidents, such as a fire or a flood, 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 different countries and changes or restrictions on exports or imports may have a negative effect on component supply chains and the profitability of products. Expanding business operations to new markets is demanding. The Group's investments in growth in the North American market will not necessarily lead to the desired results. Many competitors in the business area come from
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 customers. The maintenance of information systems and deployment of new systems involve risks that may affect 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 COVID-19 pandemic presents risks to
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 and the Board of Directors on a regular basis.
In the period under review, no such legal proceedings or judicial procedures were pending that would have had any essential significance for the Group's operation.
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 six members. The annual remuneration to be paid to the members of the Board of Directors were resolved on as follows:
In its organisational meeting held after the AGM on
The AGM decided to choose one auditor for
The AGM 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 AGM 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.
The authorisations are valid for eighteen (18) months from the
resolution of the AGM. 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.
The AGM resolved, in accordance with the proposal of the Board of Directors, to establish a shareholders' nomination board that prepares matters concerning the nomination and remuneration of the Board of Directors. Further, the AGM adopted the charter of the nomination board according to the proposal of the Board of Directors. The AGM also approved the proposal by the Board of Directors for the remuneration policy of the governing bodies of the company.
Segments to be reported in the financial period of 2021
The divestment of the German services business, the company's internal organisation change as well as changes to the reporting practices of the operative management and the Board of Directors affect the segments required to be reported. As set out in IFRS 8 standard, it is well-founded to combine the remaining services business reported in the Network Services segment with the business reported in the Video and Broadband Solutions segment. Due to the business model, the similarity of financial characteristics of the businesses and the administrative structure as well as the changes taken place in the financial period of 2020,
Operating environment in 2021
The demand for broadband services by data communications operators continues to grow. Household broadband traffic has grown at an annual rate of 30-40% in recent years. Broadband traffic has increased sharply during the COVID-19 pandemic due to the growth of teleworking and online education and the higher consumption of streaming services. It is possible that part of the growth created by the pandemic will remain a permanent phenomenon, which could accelerate network investments when the restrictions imposed due to the pandemic are lifted. 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 during the past few years. Investments in the expansion of the traditional HFC network infrastructure frequency range continue, but with a lower volume than in the past few years. Operators are already planning investment in next-generation distributed access architecture network solutions as set out in the DOCSIS 4.0 standard. The vision is to offer up to 10 Gbps connections to households. For years now, the cable industry, including
Growing urban environments and their safety, the increase of public transport services and the increasing popularity of smart digital systems for a smoother life provide a foundation for growing business in the coming years. Public transport operators and other authorities must ensure smooth operation of services and infrastructure as well as the safety of people. Public transport information systems are continuously developing to be increasingly smart and real-time. The intelligence of video security solutions increases and 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. We estimate that the market growth of public transport information systems has decreased in 2020 by the reduction in the use of public transport caused by the COVID-19 pandemic as well as delays in investments and projects. However, the market is expected to return to growth at the end of 2021 provided that the prolongation of the pandemic does not lead to a new negative movement in the market. Ensuring competitiveness requires
Outlook for 2021
However, the COVID-19 pandemic continues to cause uncertainty among
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, | |||
Continuing operations | 10-12/2020 | 10-12/2019 | Change % |
Net sales | 39,200 | 41,561 | -5.7 % |
Other operating income | 673 | 599 | 12.4 % |
Raw material and consumables used | -19,850 | -20,961 | -5.3 % |
Employee benefits expense | -12,046 | -12,166 | -1.0 % |
Depreciations | -1,967 | -1,731 | 13.7 % |
Other operating expenses | -4,734 | -5,187 | -8.7 % |
Operating profit | 1,274 | 2,114 | -39.7 % |
Financial income | 168 | 264 | -36.4 % |
Financial expenses | -518 | -529 | -2.2 % |
Profit before taxes | 924 | 1,848 | -50.0 % |
Taxes | -34 | -235 | -85.6 % |
Net profit of continuing operations | 890 | 1,613 | -44.8 % |
Discontinued operations | |||
Net profit of discontinued operations | 1,512 | -923 | |
Net Profit | 2,402 | 691 | 247.8 % |
Profit attributable to: | |||
Owners of the parent company | 2,469 | 965 | 155.9 % |
Non-controlling interests | -67 | -274 | 75.6 % |
2,402 | 691 | 247.8 % | |
Earnings per share for profit of the year attributable to the equity holders of the parent | |||
Basic (expressed in euro per share) | 0.14 | 0.05 | 155.6 % |
Diluted (expressed in euro per share) | 0.14 | 0.05 | 155.6 % |
Earnings per share for profit of the year from continued operations, attributable to the equity holders of the parent | |||
Basic (expressed in euro per share) | 0.05 | 0.10 | -49.4 % |
Diluted (expressed in euro per share) | 0.05 | 0.10 | -49.3 % |
Earnings per share for profit of the year from discontinued operations, attributable to the equity holders of the parent | |||
Basic (expressed in euro per share) | 0.08 | -0.05 | |
Diluted (expressed in euro per share) | 0.08 | -0.05 | |
Total comprehensive income for the period, | |||
Net profit | 2,402 | 691 | 247.8 % |
Items that may be reclassified to profit or loss: | |||
Translation differences | 548 | 432 | 26.8 % |
Fair value reserve | 15 | 15 | 0.0 % |
Total comprehensive income for the period | 2,965 | 1,138 | 160.6 % |
Total comprehensive income attributable to: | |||
Owners of the parent company | 3,043 | 1,426 | 113.4 % |
Non-controlling interests | -78 | -289 | -73.1 % |
2,965 | 1,138 | 160.6 % | |
STATEMENT OF COMPREHENSIVE INCOME, | 1-12/2020 | 1-12/2019 | Change % |
Continuing operations | |||
Net sales | 144,983 | 165,348 | -12.3 % |
Other operating income | 1,783 | 2,210 | -19.3 % |
Raw material and consumables used | -72,039 | -83,340 | -13.6 % |
Employee benefits expense | -45,156 | -46,049 | -1.9 % |
Depreciation | -7,241 | -6,747 | 7.3 % |
Other operating expenses | -17,814 | -29,532 | -39.7 % |
Operating profit | 4,516 | 1,890 | 138.9 % |
Financial income | 836 | 1,036 | -19.4 % |
Financial expenses | -1,670 | -1,268 | 31.7 % |
Profit before taxes | 3,681 | 1,658 | 122.0 % |
Taxes | -905 | -1,987 | -54.5 % |
Net profit of continuing operations | 2,777 | -328 | |
Discontinued operations | |||
Net profit of discontinued operations | -10,812 | -1,324 | |
Net Profit | -8,035 | -1,653 | |
Profit attributable to: | |||
Owners of the parent company | -7,827 | -1,327 | |
Non-controlling interests | -209 | -327 | |
-8,035 | -1,653 | ||
Earnings per share for profit of the year attributable to the equity holders of the parent | |||
Basic (expressed in euro per share) | -0.43 | -0.07 | |
Diluted (expressed in euro per share) | -0.43 | -0.07 | |
Earnings per share for profit of the year from continued operations, attributable to the equity holders of the parent | |||
Basic (expressed in euro per share) | 0.16 | 0.00 | |
Diluted (expressed in euro per share) | 0.16 | 0.00 | |
Earnings per share for profit of the year from discontinued operations, attributable to the equity holders of the parent | |||
Basic (expressed in euro per share) | -0.59 | -0.07 | |
Diluted (expressed in euro per share) | -0.59 | -0.07 | |
Total comprehensive income for the period (tEUR) | |||
Net profit | -8,035 | -1,653 | |
Items that may be reclassified to profit or loss: | |||
Translation differences | -606 | 299 | |
Fair value reserve | 62 | 19 | |
Total comprehensive income for the period | -8,579 | -1,335 | |
Total comprehensive income attributable to: | |||
Owners of the parent company | -8,344 | -1,019 | |
Non-controlling interests | -235 | -316 | |
-8,579 | -1,335 |
STATEMENT OF FINANCIAL POSITION, | |||
Assets | |||
31.12.2020 | 31.12.2019 | Change % | |
Non-current assets | |||
Property, plant and equipment | 12,816 | 12,907 | -0.7 % |
30,502 | 30,668 | -0.5 % | |
Other intangible assets | 9,052 | 17,038 | -46.9 % |
Other non-current financial assets | 698 | 645 | 8.2 % |
Deferred tax assets | 2,203 | 1,924 | 14.5 % |
Total | 55,270 | 63,182 | -12.5 % |
Current assets | |||
Inventories | 28,225 | 37,409 | -24.5 % |
Trade and other receivables | 28,867 | 40,112 | -28.0 % |
Income tax receivables | 428 | 683 | -37.3 % |
Cash | 20,224 | 8,249 | 145.2 % |
Total | 77,745 | 86,452 | -10.1 % |
Assets reported in discontinued operations | 0 | 0 | |
Total assets | 133,015 | 149,634 | -11.1 % |
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 | -1,557 | -1,594 | -2.3 % |
Invested non restricted equity | 3,140 | 3,079 | 2.0 % |
Retained profits | 52,716 | 62,618 | -15.8 % |
Non-controlling interests | 320 | 206 | 55.3 % |
Total | 63,090 | 72,779 | -13.3 % |
Non-current liabilities | |||
Interest-bearing liabilities | 24,716 | 26,501 | -6.7 % |
Other liabilities | 832 | 79 | 957.1 % |
Deferred tax liabilities | 1,518 | 1,603 | -5.3 % |
Provisions | 119 | 93 | 27.5 % |
Total | 27,184 | 28,275 | -3.9 % |
Current liabilities | |||
Trade and other liabilities | 33,893 | 39,238 | -13.6 % |
Current tax payable | 880 | 1,283 | -31.4 % |
Provisions | 1,711 | 1,528 | 12.0 % |
Interest-bearing liabilities | 6,256 | 6,531 | -4.2 % |
Total | 42,741 | 48,579 | -12.0 % |
Liabilities reported in discontinued operations | 0 | 0 | |
Total liabilities | 69,925 | 76,855 | -9.0 % |
Equity and liabilities total | 133,015 | 149,634 | -11.1 % |
CONSOLIDATED CASH FLOW STATEMENT, | |||
1.1.-31.12. | 1.1.-31.12. | Change % | |
2020 | 2019 | ||
Cash flows from operating activities | |||
Profit for the period | -8,035 | -1,653 | 386.0 % |
Adjustments for: | |||
Depreciation, amortisation and impairment | 7,984 | 9,549 | -16.4 % |
Gain on sale on discontinued operation, net of tax | 6,028 | 0 | 0.0 % |
Other non-cash items | 510 | 532 | -4.1 % |
Financial income and expenses | 928 | 286 | 224.6 % |
Dividends | 0 | -4 | -100.0 % |
Taxes | 1,842 | 2,042 | -9.8 % |
Change in working capital | |||
Increase/decrease in trade and other receivables | 7,882 | 10,388 | -24.1 % |
Increase/decrease in inventories | -990 | -4,576 | -78.4 % |
Increase/decrease in trade and other payables | -1,078 | -12,039 | -91.0 % |
Increase/decrease in provisions | 215 | 1,637 | -86.8 % |
Paid interests and other financial expenses | -993 | -1,416 | -29.9 % |
Received interests and dividends | 33 | 1,036 | -96.8 % |
Paid taxes | -1,255 | -1,725 | -27.2 % |
Cash flow from operating activities | 13,071 | 4,057 | 222.2 % |
Cash flow from investing activities | |||
Purchases of property, plant and equipment (PPE) | -1,214 | -3,849 | -68.4 % |
Proceeds from sales of PPE | 171 | 475 | -64.1 % |
Purchases of intangible assets | -3,916 | -4,900 | -20.1 % |
Purchase of investments | -77 | -77 | 0.0 % |
Proceeds from sale of investments | 6,276 | 0 | |
Acquisition of subsidiary, net of cash acquired | 0 | -1,050 | |
Net cash used in investing activities | 1,239 | -9,401 | |
Cash flow from financing activities | |||
Proceeds from borrowings | 6,466 | 0 | |
Payments of borrowings | -3,569 | -489 | 629.8 % |
Payment of finance lease liabilities | -3,794 | -4,499 | -15.7 % |
Dividends paid | -1,685 | -3,630 | -53.6 % |
Capital investment by non-controlling interests | 349 | 0 | |
Net cash used in financing activities | -2,232 | -8,618 | -74.1 % |
Change in cash | |||
Cash and cash equivalents 1.1. | 8,249 | 22,240 | -62.9 % |
Effect of currency changes | -103 | -28 | 267.7 % |
Cash and cash equivalents 31.12. | 20,225 | 8,249 | 145.2 % |
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 | -1,594 | 62,618 | 3,140 | -62 | 72,574 | 206 | 72,779 | |
Total comprehensive income for the period | -7,827 | 62 | -7,765 | -209 | -7,974 | |||||
Dividends | -1,821 | -1,821 | -1,821 | |||||||
Equity-settled share-based payments | 370 | 370 | 370 | |||||||
Translation differences | 37 | -624 | -588 | -27 | -614 | |||||
Changes of non-controlling interests without change in control | 0 | 349 | 349 | |||||||
Equity | 6,967 | 1,504 | -1,557 | 52,716 | 3,140 | 0 | 62,770 | 319 | 63,090 | |
Business segments 2020, | Video and Broadband Solutios | Network Services | Discontinued operations | Total |
External sales | ||||
Services | 5,622 | 20,836 | 56,291 | 82,749 |
Goods | 118,524 | 0 | 0 | 118,524 |
External sales total | 124,146 | 20,836 | 56,291 | 201,273 |
Operating profit of segments | 3,588 | 1,478 | -3,637 | 1,429 |
Unallocated items | -550 | |||
Discontinued operations | 3,637 | |||
Financial items | -834 | |||
Profit before taxes | 3,681 | |||
Business segments 2019, | Video and Broadband Solutions | Network Services | Discontinued operations | Total |
External sales | ||||
Services | 4,087 | 23,996 | 70,110 | 98,193 |
Goods | 137,265 | 0 | 0 | 137,265 |
External sales total | 141,352 | 23,996 | 70,110 | 235,458 |
Operating profits of the segments | 8,056 | 776 | -1,122 | 7,711 |
Unallocated items | -6,942 | |||
Discontinued operations | 1,122 | |||
Financial items | -232 | |||
Profit before taxes | 1,659 |
Geographical segments 2020, | Nordic countries | Other | Others | Dis-continued operations | Total | |
Sales by origin | 14,430 | 12,939 | 106,430 | 11,183 | 56,291 | 201,273 |
Assets | 48,381 | 648 | 3,587 | 451 | 0 | 53,067 |
Capital expenditure for the period | 3,175 | 103 | 2,354 | 150 | 807 | 6,588 |
Geographical segments 2019, | Nordic countries | Other | Others | Dis-continued operations | Total | |
Sales by origin | 15,799 | 20,607 | 114,122 | 14,820 | 70,110 | 235,458 |
Assets | 50,776 | 590 | 7,027 | 112 | 2,751 | 61,257 |
Capital expenditure for the period | 4,632 | 236 | 2,788 | 685 | 4,640 | 12,981 |
Segment information per quarter, | 10-12/20 | 7-9/20 | 4-6/20 | 1-3/20 | 10-12/19 | 1-12/2020 | 1-12/2019 |
Video and Broadband Solutions | |||||||
Order intake | 37,877 | 24,656 | 24,978 | 40,498 | 41,807 | 128,009 | 143,455 |
Net sales | 33,891 | 30,590 | 28,462 | 31,203 | 36,142 | 124,146 | 141,351 |
EBIT | 817 | 1,754 | -191 | 1,208 | 1,269 | 3,588 | 8,056 |
EBIT % | 2.4 % | 5.7 % | -0.7 % | 3.9 % | 3.5 % | 2.9 % | 5.7 % |
Network Services | |||||||
Order intake | 5,309 | 5,114 | 5,054 | 5,359 | 5,419 | 20,836 | 23,996 |
Net sales | 5,309 | 5,114 | 5,054 | 5,359 | 5,419 | 20,836 | 23,996 |
EBIT | 457 | 469 | 337 | 215 | 488 | 1,478 | 776 |
EBIT % | 8.6 % | 9.2 % | 6.7 % | 4.0 % | 9.0 % | 7.1 % | 3.2 % |
Total segments | |||||||
Order intake | 43,186 | 29,770 | 30,032 | 45,857 | 47,226 | 148,845 | 167,451 |
Net sales | 39,200 | 35,704 | 33,516 | 36,562 | 41,561 | 144,982 | 165,347 |
EBIT | 1,274 | 2,223 | 146 | 1,423 | 1,757 | 5,066 | 8,832 |
EBIT % | 3.3 % | 6.2 % | 0.4 % | 3.9 % | 4.2 % | 3.5 % | 5.3 % |
Total group | |||||||
Unallocated item | 0 | 0 | -550 | 0 | 356 | -550 | -6,942 |
EBIT | 1,274 | 2,223 | -404 | 1,423 | 2,114 | 4,516 | 1,890 |
EBIT% | 3.3 % | 6.2 % | -1.2 % | 3.9 % | 5.1 % | 3.1 % | 1.1 % |
Net sales by category, | 10-12/20 | 7-9/20 | 4-6/20 | 1-3/20 | 10-12/19 | 1-12/2020 | 1-12/2019 |
Goods | 29,116 | 32,679 | 26,514 | 30,215 | 35,790 | 118,524 | 137,265 |
Service | 10,084 | 3,025 | 7,002 | 6,347 | 5,771 | 26,458 | 28,083 |
Total | 39,200 | 35,704 | 33,516 | 36,562 | 41,561 | 144,982 | 165,348 |
Order backlog | |||||
Thousand euro | 12/20 | 9/20 | 6/20 | 3/20 | 12/19 |
VBS order backlog end of period | 77,086 | 73,100 | 79,033 | 82,558 | 73,223 |
Commitments and contingencies, | 2020 | 2019 | Change % |
Lease liabilities | 921 | 886 | 4.0 % |
Value of underlying forward contracts | 18,515 | 21,146 | -12.4 % |
Market value of forward contracts | -473 | -48 | 891.5 % |
Interest rate swap | 0 | 10,000 | -100.0 % |
Market value of interest swap | 0 | -65 | -100.0 % |
Guarantees | 11,055 | 2,197 | 403.2 % |
The number of employees broken down by following categories 31.12. | 2020 | 2019 | Change % |
Research and development | 202 | 214 | -5.6 % |
Production and material management | 433 | 871 | -50.3 % |
Sales and marketing | 134 | 139 | -3.6 % |
Administration | 88 | 106 | -16.7 % |
Total | 858 | 1,330 | -35.5 % |
IFRS | IFRS | IFRS | IFRS | IFRS | |
Key figures | 2020 | 2019 | 2018 | 2017 | 2016 |
Profit and loss account, balance sheet | |||||
Net sales, Meur | 145.0 | 235.5 | 250.3 | 234.6 | 259.5 |
Change % | -38.4 % | -5.9 % | 6.7 % | -9.6 % | 4.8 % |
Sales outside | 92.8 % | 0.0 % | 93.9 % | 94.3 % | 93.3 % |
Operating profit, Meur | 4.5 | 0.8 | 9.7 | -7.5 | 15.6 |
% of net sales | 3.1 % | 0.3 % | 3.9 % | -3.2 % | 6.0 % |
Profit after financial items, Meur | 3.7 | 0.4 | 9.1 | -8.5 | 14.8 |
% of net sales | 2.5 % | 0.2 % | 3.6 % | -3.6 % | 5.7 % |
Profit before taxes, Meur | 3.7 | 0.4 | 9.1 | -8.5 | 14.8 |
% of net sales | 2.5 % | 0.2 % | 3.6 % | -3.6 % | 5.7 % |
Profit for the financial period, Meur | -8.0 | -1.7 | 6.8 | -9.1 | 11.8 |
% of net sales | -5.5 % | -0.7 % | 2.7 % | -3.9 % | 4.6 % |
R&D expenditure, Meur | 10.8 | 13.5 | 12.5 | 12.1 | 11.1 |
% of net sales | 7.4 % | 5.7 % | 5.0 % | 5.1 % | 4.3 % |
Gross investments, Meur | 6.6 | 13.0 | 7.0 | 7.5 | 5.5 |
% of net sales | 4.5 % | 5.5 % | 2.8 % | 3.2 % | 2.1 % |
Interest bearing liabilities, Meur | 31.0 | 33.0 | 26.8 | 33.2 | 30.6 |
Shareholder's equity, Meur | 63.1 | 72.8 | 77.2 | 71.4 | 84.4 |
Total assets, Meur | 133.0 | 149.6 | 159.0 | 153.5 | 162.1 |
Personnel and orders | |||||
Average personnel | 856 | 1,363 | 1,393 | 1,492 | 1,514 |
Order backlog at year end, Meur | 77.1 | 73.2 | 71.0 | 57.4 | 26.9 |
Orders received, Meur | 148.8 | 237.6 | 264.0 | 262.9 | 244.3 |
Key metrics | |||||
Return on equity, % | -11.8 % | -2.2 % | 9.2 % | -11.7 % | 14.6 % |
Return on capital employed, % | -4.5 % | 1.6 % | 9.3 % | -6.6 % | 14.8 % |
Equity ratio, % | 48.8 % | 49.5 % | 51.7 % | 48.3 % | 52.5 % |
Net gearing, % | 17.0 % | 34.1 % | 5.9 % | 16.8 % | 25.0 % |
Earnings per share, euro | -0.43 | -0.07 | 0.38 | -0.50 | 0.65 |
Earnings per share fully diluted, euro | -0.43 | -0.07 | 0.38 | -0.50 | 0.65 |
Shareholders equity per share, euro | 3.46 | 4.00 | 4.25 | 3.94 | 4.66 |
ALTERNATIVE PERFORMANCE MEASURES | |||||
Adjusted operating profit | 5,066 | 8,832 | 9,721 | -7,549 | 15,635 |
Adjusted earnings per share, EUR | -0.06 | 0.31 | 0.38 | -0.50 | 0.65 |
BRIDGE OF CALCULATION | |||||
Operating profit, continued operations | 4,516 | 1,890 | 9,721 | -7,549 | 15,635 |
Cost item caused by a crime | 0 | 6,942 | 0 | 0 | 0 |
Business reorganization | 550 | ||||
Adjusted operating profit, continued operations | 5,066 | 8,832 | 9,721 | -7,549 | 15,635 |
Net profit/loss to equity holder | -7,827 | -1,327 | 6,975 | -9,106 | 11,820 |
Outstanding shares during the quarter | 18,204 | 18,181 | 18,122 | 18,202 | 18,169 |
Earnings per share, basic | -0.43 | -0.07 | 0.38 | -0.50 | 0.65 |
Operating profit | -7,827 | -1,327 | 6,975 | -9,106 | 11,820 |
Cost item caused by a crime | 0 | 6,942 | 0 | 0 | 0 |
Business reorganization | 550 | 0 | 0 | 0 | 0 |
Business disposals, discontinued operations | 6,106 | 0 | 0 | 0 | 0 |
Outstanding shares during the quarter | 18,204 | 18,181 | 18,122 | 18,202 | 18,169 |
Earnings per share, basic | -0.06 | 0.31 | 0.38 | -0.50 | 0.65 |
Highest price, euro | 5.78 | 6.80 | 7.58 | 9.62 | 10.24 |
Lowest price, euro | 3.51 | 5.04 | 5.12 | 6.51 | 7.29 |
Closing price, euro | 4.49 | 5.34 | 5.26 | 6.68 | 8.86 |
Average price, euro | 4.40 | 5.72 | 6.72 | 8.19 | 8.69 |
Price per earnings | -10.4 | -73.2 | 13.8 | -13.3 | 13.6 |
Market capitalization, Meur | 85.2 | 101.4 | 99.9 | 126.8 | 160.6 |
Stock turnover, Meur | 13.8 | 9.2 | 13.3 | 16.8 | 30.6 |
Turnover, number in millions | 3.1 | 1.6 | 2.0 | 2.0 | 3.5 |
Turnover, % of share capital | 16.5 % | 8.5 % | 10.4 % | 10.8 % | 18.5 % |
Average number of shares | 18,985,588 | 18,985,588 | 18,985,588 | 18,985,588 | 18,985,588 |
Number of shares at the year-end | 18,985,588 | 18,985,588 | 18,985,588 | 18,985,588 | 18,985,588 |
Average number of shares, diluted w/o own shares | 18,220,370 | 18,181,177 | 18,168,088 | 18,202,396 | 18,169,002 |
Number of shares at the year-end, diluted w/o own shares | 18,218,503 | 18,207,708 | 18,155,300 | 18,172,350 | 18,216,369 |
Paid dividend, Meur | 1.2 | 1.8 | 3.6 | 1.8 | 4.5 |
Dividend per share, euro | 0.12* | 0.10 | 0.20 | 0.10 | 0.25 |
Dividend per net result, % | neg. | neg. | 53.1 % | neg. | 38.3 % |
Effective dividend yield, % | 2.7 % | 1.9 % | 3.8 % | 1.5 % | 2.8 % |
* The Board's proposal to the AGM | |||||
Number of shares | % of shares | % of votes | |||
776,419 | 4.09% | 4.09% |
Major shareholders | Number of shares | % of share capital |
4,570,760 | 24.07 | |
1,684,380 | 8.87 | |
899,475 | 4.74 | |
824,641 | 4.34 | |
776,419 | 4.09 | |
550,000 | 2.90 | |
521,150 | 2.74 | |
500,000 | 2.63 | |
450,000 | 2.37 | |
240,408 | 1.27 |
Shareholders by sector | Number of shareholders | % of Owners | Number of shares | % of shares |
Households | 5,516 | 94.08 | 5,228,443 | 27.54 |
Public sector institutions | 3 | 0.05 | 1,920,625 | 10.12 |
Financial and insurance institutions | 22 | 0.38 | 3,701,889 | 19.50 |
Corporations | 272 | 4.64 | 8,027,970 | 42.28 |
Non-profit institutions | 20 | 0.34 | 43,918 | 0.23 |
Foreign and nominee registered owners | 30 | 0.51 | 62,743 | 0.33 |
Total | 5,863 | 100.00 | 18,985,588 | 100.00 |
Of which nominee registered | 10 | 0.17 | 483,657 | 2.55 |
Number of shares | Number of shareholders | % of shareholders | Number of shares | % of shares |
1-100 | 1,672 | 28.52 | 94,186 | 0.50 |
101-500 | 2,361 | 40.27 | 638,124 | 3.36 |
501-1,000 | 829 | 14.14 | 665,133 | 3.50 |
1,001-5,000 | 792 | 13.51 | 1,763,420 | 9.29 |
5,001-10,000 | 98 | 1.67 | 685,069 | 3.61 |
10,001-50,000 | 82 | 1.40 | 1,691,823 | 8.91 |
50,001-100,000 | 7 | 0.12 | 476,961 | 2.51 |
100,001-500,000 | 15 | 0.26 | 3,144,047 | 16.56 |
500,001-& above | 7 | 0.12 | 9,826,825 | 51.76 |
Total | 5,863 | 100.00 | 18,985,588 | 100.00 |
of which nominee registered | 10 | 0.17 | 483,657 | 2.55 |
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 |
Equity per share: | Shareholders’ equity ------------------------------------------ Number of shares – number of own shares at year-end |
Price per earnings (P/E): | Share price at year-end ------------------------------------------ Earnings per share |
Effective dividend yield: | Dividend per share ----------------------------------------- Trading price at the end of the period |
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 |
ADDITIONAL INFORMATION:
CEO
DISTRIBUTION:
NASDAQ OMX Helsinki
Main Media
www.teleste.com
Attachment
- Teleste TP 2020 EN
© OMX, source