TELESTE CORPORATION INTERIM REPORT 1 JANUARY TO 31 MARCH 2015: SIGNIFICANT INCREASE IN NET SALES, PROFIT AND ORDERS RECEIVED

Turku, Finland, 2015-04-30 07:30 CEST (GLOBE NEWSWIRE) --
 

TELESTE CORPORATION  INTERIM REPORT  30.04.15 AT 08:30

 

TELESTE CORPORATION INTERIM REPORT 1 JANUARY TO 31 MARCH 2015 

 

SIGNIFICANT INCREASE IN NET SALES, PROFIT AND ORDERS RECEIVED

First quarter of 2015
- Net sales amounted to EUR 53.4 (43.5) million, an increase of 22.8%
- Operating profit amounted to EUR 2.6 (1.3) million, an increase of 101.3%
- Undiluted result per share stood at EUR 0.12 (0.05) per share, an increase of 136.5%
- Orders received totalled EUR 56.9 (46.9) million, an increase of 21.2%
- Operating cash flow was EUR -1.2 (1.5) million  

 

Outlook for 2015

We estimate that net sales and operating profit for 2015 will exceed the 2014 level. 

 

Comments on the first quarter of 2015 by CEO Jukka Rinnevaara: 

"Demand for Teleste's products and services in the first quarter of 2015 in our key markets has been good. Orders received in the quarter reached Teleste's all-time high of EUR 56.9 million. The orders received were at a record level even without the Mitron acquisition. Also net sales and operating profit clearly exceeded the comparative period. In particular, orders received and net sales were increased by products in line with the new Docsis 3.1 standard. The improvement in our operating profit was achieved through organic growth.

Orders received by Video and Broadband Solutions grew strongly. The greatest growth in demand was registered in optical network products. Along with the acquisition of Mitron, our net sales was boosted by the sales of access network products and video security solutions. Orders received by the business area increased the most in France, Belgium and Israel. The most significant growth in deliveries was recorded in France, the UK and Belgium. Our good delivery capability was instrumental in helping us meet the increased demand, and thus improving the business area's profitability significantly. Early in this year we carried out the acquisition of Mitron Group Oy Ltd's entire share capital, which was transferred to the ownership of Teleste. Mitron is a Finnish provider of public transportation information systems and modern display solutions. Mitron is ideal for Teleste's strategy and strengthens our presence as a comprehensive supplier of rail video security and information solutions. 

As for Network Services, we were able to improve our operating profit over the comparative period, although the result was burdened by investments in the expansion of business in the UK. In Germany, we reached good qualitative results measured by our customer's standards while achieving the planned profitability. The volume of our services business has developed positively in Switzerland, where we increased our net sales significantly from the last year.” 

 

Group Operations in January to March 2015 

Key figures  1-3/2015  1-3/2014 Change % 1-12/2014
Orders received, M€ 56.9 46.9 +21.2 % 199.3
Net sales, M€ 53.4 43.5 +22.8 % 197.2
Operating profit, M€ 2.6 1.3 +101.3 % 11.1
Operating profit, % 4.9% 3.0%   5.6%
Net profit, M€ 2.2 0.9 +139.7% 8.5
         
Earnings per share, € 0.12 0.05 +136.5% 0.48
Cash flow from operations, M€ -1.2 1.5   9.2
Net gearing, % 21.9% 12.3%   9.5%
Equity ratio, % 49.0% 53.7%   53.4%
Personnel at period-end 1,462 1,260 +16.0% 1,343

In the first quarter, orders received by the Group totalled EUR 56.9 (46.9) million, which is 21.2% above the reference period. The Group's order backlog amounted to EUR 42.3 (16.5)million. 

Net sales were EUR 53.4 (43.5) million, up 22.8% from the comparative period. Compared to the same period in the previous year, operating profit increased by 101% standing at EUR 2.6 (1.3) million, which is 4.9% (3.0%) of the net sales. Personnel expenses amounted to EUR 17.0 (14.0) million. Together with the Mitron acquisition our personnel expenses were increased by recruitment of additional employees in Network Services. Undiluted result per share stood at EUR 0.12 (0.05) per share, an increase of 137%.

Operating cash flow stood at EUR -1.2 (1.5) million. Operating cash flow was decreased by growth in net working capital, which resulted from increased inventories and reduced accounts payable, including changes in the working capital of Mitron. 

Operations received through the Mitron acquisition are reported under the figures for Video and Broadband Solutions. The Mitron impact on the reported figures for the first quarter were as follows: orders received +2.1, net sales +5.6, operating profit including group level intangible asset depreciations +0.0 millions of euros. The order backlog transferred in the acquisition stood at EUR 23.7 million.

 

Video and Broadband Solutions in January to March 2015

Key figures 1-3/2015 1-3/2014 Change % 1-12/2014
Orders received, T€ 33,990 24,896 36.5% 109,007
Net sales, T€ 30,532 21,485 +42.1% 106,901
Operating profit, T€ 2,003 801 +150.1% 9,673
Operating profit, % 6.6% 3.7%   9.0%

Year-on-year orders received improved by 36.5% standing at EUR 34.0 (24.9) million. Order backlog strengthened to EUR 42.3 (16.5) million. Net sales grew by 42.1% amounting to EUR 30.5 (21.5) million. Along with the acquisition of Mitron, our net sales were increased by the sales of access network products,  passive and house network products as well as video security solutions. Operating profit increased by 150% to EUR 2.0 (0.8) million, representing 6.6% (3.7%) of net sales. The year-on-year operating profit percentage was improved by increased sales volumes. 

R&D expenses amounted to EUR 2.9 (2.6) million, i.e. 9.4% (12.1%) of the business area's net sales. Capitalized R&D expenses amounted to EUR 0.4 (0.3) million. Product development projects focused on network products complying with the Docsis 3.1 standard and on customer-specific projects. Depreciation on capitalized R&D expenses equalled EUR 0.3 (0.3) million.

 

Network Services in January to March 2015

Key figures 1-3/2015 1-3/2014 Change % 1-12/2014
Orders received, T€ 22,911 22,048 +3.9% 90,275
Net sales, T€ 22,911 22,048 +3.9% 90,275
Operating profit, T€ 595 490 +21.4% 1,463
Operating profit, % 2.6% 2.2%   1.6%

The first-quarter orders received and net sales amounted to EUR 22.9 (22.0) million, which was 3.9% higher than in the comparison period. Net sales increased particularly in Switzerland. Operating profit stood at EUR 0.6 (0.5) million, up 21.4% from the comparative period. Operating profit was 2.6% (2.2%) of net sales. The year-on-year operating profit was improved by the reduced loss in the UK, where investments in the expansion of the services business continued. A good operational result was achieved in Germany.

 

Personnel and Organization in January to March 2015 

In the period under review, the Group had an annual average of 1,466 people (1,262/2014 1,335/2013), of whom 665 (554) were employed by Video and Broadband Solutions, and 801 (708) by Network Services. At the end of the review period, the number of people working for the Group was 1,462 (1,260/2014, 1,342/2013), of whom 68% (71%/2014, 73%/2013) were working outside Finland. Approximately 3% of the Group's employees were working outside Europe.

Wages, salaries and social expenses increased over the previous year and amounted to EUR 17.0 (14.0/2014, 14.4/2013) million. This increase in personnel expenses was due to the acquisition of Mitron and growth in the number of personnel working for Network Services.

Investments and Product Development in January to March 2015

Investments by the Group in the period under review totalled EUR 12.4 (0.9) million accounting for 23.3% (2.1%) of net sales. EUR 11.5 million of these investments involved the acquisition of Mitron. Investments in product development equalled EUR 0.3 (0.3) million. Investments of EUR 0.1 (0.1) million were made under financial lease arrangements.

Product development projects focused on network products complying with the Docsis 3.1 standard, network management system, distributed access architecture and customer-specific projects.

Financing and Capital Structure in January to March 2015

Operating cash flow stood at EUR -1.2 (1.5) million. Operating cash flow was decreased by growth in net working capital, which resulted from increased inventories and reduced accounts payable, including changes in the working capital of Mitron.

In January, Teleste Corporation signed new overdraft and revolving credit facilities with a total value of EUR 45.0 million. These agreements replaced the previous ones. The new binding agreements are valid until the end of March 2018. At the end of the period under review, the amount of unused binding credit facilities amounted to EUR 17.0 (17.0) million.

The Group's equity ratio equalled 49.0% (53.7%) and net gearing 21.9% (12.3%). On 31 March 2015, the Group's interest-bearing debt stood at EUR 30.5 (24.2) million.

Key Risks by the Business Areas

Founded in 1954, Teleste is a technology and services company consisting of two business areas – Video and Broadband Solutions and Network Services. With Europe as the main market area, our clients include European cable operators and specified organisations in the public sector.

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 involving, therefore, also reasonable risks. Our customers’ network investments vary based on the relevant need for upgrading and their financial structure. Significant part of Teleste’s competition comes from the USA so the exchange rate of euro up against the US dollar affects our competitiveness. The exchange rate development of the US dollar and the Chinese renminbi to the euro affects our product costs.

The company hedges against short-term currency exposure by means of forward exchange contracts. The situation in the European financial markets may slow down our customers’ investment plans. Furthermore, a weakening in the consumer purchasing power in Europe could slow down the network investments by the cable operators. Competition increased by the new service providers (OTT) may undermine the cable operators' ability to invest. Availability of components is subject to natural phenomena, such as floods and earthquakes. Correct technological choices and their timing are vital for our success. Regardless of careful planning and quality assurance, complex products may fail in the customer's network and lead to expensive repair obligations. 

Net sales of Network Services comes, for the most part, from a small number of large European customers, so a significant change in the demand for our services by any one of them is reflected in the actual deliveries and profitability. To ensure quality of services and cost-efficiency along with efficient service process management, customer satisfaction and improvements in productivity require innovative solutions in terms of processes, products and logistics. Smooth operation of cable networks requires effective technical management and functional hardware solutions in accordance with contractual obligations. This, in turn, demands continuous and determined development of skills and competencies in Teleste’s own personnel as well as those of our subcontractors. In addition, Teleste’s ability to deliver and compete may be constrained by the adequacy of our own personnel and our sub-contractor network capacity. Tender calculation and management of larger projects with overall responsibility are complex and include risks. Severe weather conditions may affect the supply conditions of our products and services.

Teleste’s strategy involves risks and uncertainties – new business opportunities may fail to be identified or they cannot be acted upon successfully. It is important for our business areas to take into account any market developments such as consolidations taking place among the clientele and competition. Intensifying competition may decrease the prices of products and solutions faster than we manage to reduce our products’ manufacturing and delivery costs. Various information systems are critical to the development, manufacturing and supply of products to our customers. Maintenance of information systems and deployment of new systems involve risks that may affect our ability to deliver products and services. Information systems may also be subject to external threats, from which we aim to protect ourselves. Acquisition of skilled personnel and maintenance of their competence require encouragement, development and recruitment, which can fail.

The Board of Directors annually reviews any essential risks related to the company operation and their management. Risk management is an integral part of the strategic and operational activities of the business areas. Risks are reported to the Board on a regular basis.

The company has covered any major risks of loss involving the business areas through insurance policies. Insurance will also cover credit loss risks related to sales receivables. In the period under review, no such legal proceedings or judicial procedures were pending that would have had any essential significance for the Group operation.

Group Structure

Parent company Teleste has branch offices in Australia, the Netherlands, and Denmark with subsidiaries in 14 countries outside Finland. Teleste Management II Oy, founded in December 2011, has been consolidated in the Teleste Group figures on account of financial arrangements.

Shares and Changes in Share Capital

On 31 March 2015, EM Group Oy was the largest single shareholder with a holding of 23.2%.

In the period under review, the lowest company share price was EUR 5.32 (4.25) and the highest was EUR 7.38 (4.86). Closing price on 31 March 2015 stood at EUR 6.94 (4.53). According to Euroclear Finland Ltd the number of shareholders at the end of the period under review was 5,151 (5,073) while foreign ownership accounted for 5.0% (4.8%). The share exchange in the period 1 January to 31 March 2015 was 1.1 (0.8) million. The value of this exchange amounted to EUR 7.5 (3.6) million.

In January, the Company transferred 56,924 shares as part of the purchase price in the context of the acquisition of the entire share capital of Mitron Group Oy Ltd by Teleste Corporation. In February, the Company transferred 73,644 shares in a directed free share issue constituting part of Teleste Corporation's 2012 long-term incentive plan.

At the end of March 2015, the Group held 1,059,086 of its own shares, of which the parent company Teleste Corporation had 517,086 shares and the controlled companies had 542,000 shares, respectively. At the end of the period, the Group's holding of the total amount of shares amounted to 5.6% (6.3%).

On 31 March 2015, the registered share capital of Teleste stood at EUR 6,966,932.80 divided in 18,985,588 shares.

Valid authorizations at the end of the review period:
- Purchases of own shares: maximum 1,200,000 of the Company's own shares, valid until 30 September 2015.
- Issue of new shares: maximum 4,000,000 shares, valid until 31 March 2017.
- Disposal of own shares in possession: maximum 1,800,000 shares, valid until 31 March 2017. 
- Based on the special rights granted by the Company, the number of shares to subscribe may not exceed 2,500,000 shares; these special rights are included in the maximum warrants concerning new shares and the Group's own shares mentioned above. This authorization is valid until 31 March 2017.

Events after the end of the review period

The Annual General Meeting (AGM) of Teleste Corporation held on 9 April 2015 confirmed the financial statements for 2014 and discharged the Board of Directors and the CEO from liability for the financial period. The AGM confirmed the dividend of EUR 0.20 per share proposed by the Board. The dividend was paid out on 20 April 2015.

The AGM decided that the Board of Directors consists of six members. Mr. Pertti Ervi, Ms. Jannica Fagerholm, Mr. Esa Harju, Ms. Marjo Miettinen, Mr. Kai Telanne and Mr. Petteri Walldén were re-elected as members of Teleste Corporation's Board of Directors.  Ms. Marjo Miettinen was elected Chair of the Board in the organisational meeting held immediately after the AGM.

Authorized Public Accountants KPMG Oy Ab continues as the auditor until the next AGM. Mr. Esa Kailiala, accountant authorized by the Central Chamber of Commerce of Finland, was chosen auditor-in-charge.

The Annual General Meeting decided to authorize the Board of Directors to decide on repurchasing the Company's own shares as proposed by the Board. Based on this authorization, the Board of Directors may repurchase a maximum of 1,200,000 own shares of the Company otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through regulated market on NASDAQ OMX Helsinki Ltd at the market price prevailing at the time of acquisition. This authorization of purchasing is valid for 18 months from the date of the decision.

 

Outlook for 2015

The business objective of Video and Broadband Solutions is to maintain its strong market position in Europe and to strengthen this market position in selected new markets outside Europe. Network capacity will continue to increase, driven by the new broadband and video services provided by the operators. Our new products in line with the Docsis 3.1 communication standard allow the cable operators to increase their network capacity competitively. Price erosion in the market continues. Changes in the value of the euro, particularly against the US dollar and the Chinese renminbi, affect Teleste’s competitiveness, on the one hand, and product manufacturing costs, on the other. The positive trend in the video security and rail information markets continue, but the public sector decisions concerning initiation of projects may be delayed by the current economic situation. In addition to organic growth, we estimate the Mitron acquisition to increase our net sales by more than EUR 22 million and its impact on our operating profit to be positive.

As to Network Services, our business objective is to further develop the operational efficiency and increase the share of those services that provide our customers with higher value. In line with this objective, we will continue to expand the new services business in the UK. We estimate the demand for all-inclusive network services in our key target markets to continue at least at the previous year’s level.

We estimate that net sales and operating profit for 2015 will exceed the 2014 level.

 

29 April 2015

 

Teleste Corporation           Jukka Rinnevaara
The 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. Teleste has prepared this interim report applying the same accounting principles as those described in detail in its the consolidated financial statements. The data stated in this report is unaudited. The changes in IAS1, IFRS13 and IAS19 have been applied in this interim report and they do not have any material impact on the financial reporting.

 

STATEMENT OF COMPREHENSIVE INCOME (tEUR) 1-3/
2015
1-3/
2014
Change % 1-12/
2014
           
Net Sales 53,443 43,533 22.8 % 197,176
  Other operating income 446 185 140.6 % 2,536
  Materials and services -25,537 -21,001 21.6 % -97,561
  Personnel expenses -16,976 -13,985 21.4 % -59,497
  Other operating expenses -7,570 -6,417 18.0 % -27,309
  Depreciation -1,209 -1,024 18.1 % -4,211
Operating profit 2,598 1,291 101.3 % 11,135
           
  Financial income and expenses 306 -93 n/a -301
Profit after financial items 2,904 1,198 142.5 % 10,835
           
Profit before taxes 2,904 1,198 142.5 % 10,835
           
  Taxes -698 -278 151.4 % -2,353
           
Net profit 2,206 920 139.7 % 8,482
           
Attributable to:        
  Equity holders of the parent 2,206 920 139.7 % 8,482
           
Earnings per share for result of the year attributable to the equity holders of the parent
(expressed in € per share)        
  Basic 0.12 0.05 136.5 % 0.48
  Diluted 0.12 0.05 139.6 % 0.48
           
Total comprehensive income for the period (tEUR)
Net profit 2,206 920 139.7 % 8,482
Possible items with future net profit effect        
Translation differences 398 92 332.6 % -465
Fair value reserve 4 -7 n/a -25
Total comprehensive income for the period 2,608 1,005 159.5 % 7,992
           
Attributable to:        
  Equity holders of the parent 2,608 1,005 159.5 % 7,992

 

 

 

STATEMENT OF FINANCIAL POSITION  (tEUR) 31/03/2015 31/03/2014 Change % 31/12/2014
Non-current assets        
  Property,plant,equipment 10,473 10,485 -0.1 % 9,627
  Goodwill 38,425 33,289 15.4 % 33,121
  Other intangible assets 6,934 4,331 60.1 % 3,891
  Deferred tax assets 1,885 1,828 3.1 % 1,698
  Available-for-sale Investments 713 294 142.5 % 701
    58,430 50,227 16.3 % 49,037
Current assets        
  Inventories 29,566 20,866 41.7 % 20,483
  Trade and other receivables 51,803 37,214 39.2 % 45,276
  Cash and cash equivalents 14,373 16,008 -10.2 % 17,672
    95,742 74,088 29.2 % 83,431
           
Total assets 154,173 124,315 24.0 % 132,467
           
Shareholder's equity and liabilities        
  Share capital 6,967 6,967 0.0 % 6,967
  Other equity 66,414 59,381 11.8 % 63,227
  Non-controlling interest 477 386 23.6 % 487
    73,858 66,734 10.7 % 70,682
           
Non-current liabilities        
  Provisions 1,294 598 116.3 % 1,238
  Deferred tax liabilities 1,922 1,203 59.8 % 1,327
  Non interest bearing liabilities 3,527 2,436 44.8 % 31
  Interest bearing liabilities 29,744 434 6748.8 % 595
    36,487 4,671 681.1 % 3,192
Current liabilities        
  Trade payables and other liabilities 41,777 28,031 49.0 % 33,536
  Current tax payable 615 210 192.6 % 793
  Provisions 650 893 -27.1 % 480
  Interest bearing liabilities 786 23,776 -96.7 % 23,784
    43,828 52,909 -17.2 % 58,593
           
Total shareholder's equity and liabilities 154,173 124,315 24.0 % 132,467

 

 

 

CONSOLIDATED CASH FLOW STATEMENT (tEUR) 1-3/
2015
1-3/
2014
Change %  1-12/
2014
Cash flows from operating activities        
  Profit for the period 2,206 920 139.7 % 8,482
  Adjustments 1,601 1,306 22.5 % 4,211
  Interest and other financial expenses and incomes 306 -93 n/a -301
  Paid Taxes -269 -1,155 -76.7 % -2,717
  Change in working capital -5,023 482 n/a -448
Cash flow from operating activities -1,179 1,461 -180.7% 9,227
Cash flow from investing activities        
  Acquisition of subsidiaries, net of cash acquired -6,826 0 n/a 0
  Purchases of property, plant and equipment (PPE) -260 -426 -39.0 % -1,782
  Proceeds from sales of PPE 17 0 n/a 64
  Purchases of intangible assets -338 -372 -9.1 % -1,077
  Proceeds from available-for-sale investments 0 0 n/a -407
Net cash used in investing activities -7,407 -798 828.2 % -3,202
Cash flow from financing activities        
  Proceeds from borrowings 5,000 0 n/a 1,000
  Payments of borrowings -111 -152 -27.0 % -1,255
  Dividends paid 0 0 n/a -3,360
  Proceeds from issuance of ordinary shares 0 176 n/a 497
Net cash used in financing activities 4,889 24 n/a -3,118
           
Change in cash        
  Cash in the beginning 17,672 15,229 16.0 % 15,229
  Effect of currency changes 398 92 332.6 % -465
  Change -3,697 687 n/a 2,907
  Cash at the end 14,373 16,008 -10.2 % 17,672

 

 

 

KEY FIGURES 1-3/
2015
1-3/
2014
Change %  1-12/
2014
  Earnings per share, EUR 0.12 0.05 136.5 % 0.48
  Earnings per share fully diluted, EUR 0.12 0.05 139.6 % 0.48
  Shareholders' equity per share, EUR 4.09 3.75 9.1 % 3.94
           
  Return on equity 12.2 % 5.6 % 117.9 % 12.5 %
  Return on capital employed 12.4 % 5.9 % 110.2 % 12.2 %
  Equity ratio 49.0 % 53.7 % -8.8 % 53.4 %
  Gearing 21.9 % 12.3 % 78.0 % 9.5 %
           
  Investments, tEUR 12,426 912 1262.5 % 3,676
  Investments % of net sales 23.3 % 2.1 % 1009.8 % 1.9 %
  Order backlog, tEUR 42,342 16,511 156.4 % 15,206
  Personnel, average 1,466 1,262 16.2 % 1,302
           
  Number of shares (thousands) 18,986 18,874 0.6 % 18,918
    including own shares        
  Highest share price, EUR 7.38 4.86 51.9 % 5.29
  Lowest share price, EUR 5.32 4.25 25.2 % 4.25
  Average share price, EUR 6.52 4.48 45.6 % 4.67
           
  Turnover, in million shares 1.1 0.8 43.5 % 2.3
  Turnover, in MEUR 7.5 3.6 108.0 % 10.9
           
Treasury shares        
    Number
of shares
  % of
shares
% of
votes
           
  Possession of company's own shares 31.3.2015 1,059,086   5.58% 5.58%
 
Contingent liabilities and pledged assets (tEUR)
           
Leasing and rent liabilities 5,756 6,133 -6.1 % 5,559
           
Derivative instruments (tEUR)        
  Value of underlying forward contracts 20,031 6,518 207.3 % 13,141
  Market value of forward contracts 117 -139 n/a 65
  Interest rate swap 11,000 11,000 0.0 % 11,000
  Market value of interest swap -27 -13 115.1 % -31
           
Taxes are computed on the basis of the tax on the profit for the period.

 

 

 

OPERATING SEGMENTS (tEUR) 1-3/
2015
1-3/
2014
Change %  1-12/
2014
 
Video and Broadband Solutions
  Orders received 33,990 24,896 36.5 % 109,007
  Net sales 30,532 21,485 42.1 % 106,901
  EBIT 2,003 801 150.1 % 9,673
  EBIT% 6.6 % 3.7 %   9.0 %
 
Network Services
  Orders received 22,911 22,048 3.9 % 90,275
  Net sales 22,911 22,048 3.9 % 90,275
  EBIT 595 490 21.4 % 1,463
  EBIT% 2.6 % 2.2 %   1.6 %
 
Total
  Orders received 56,901 46,944 21.2 % 199,282
  Net sales 53,443 43,533 22.8 % 197,176
  EBIT 2,598 1,291 101.3 % 11,135
  EBIT% 4.9 % 3.0 %   5.6 %
  Financial items 306 -93 n/a -301
  Operating segments net profit before taxes 2,904 1,198 142.5 % 10,835

 

 

 

Information per quarter (tEUR)  1-3/15  10-12/14  7-9/14  4-6/14  1-3/14  4/2014-
  3/2015
 
Video and Broadband Solutions
  Orders received 33,990 28,642 27,571 27,898 24,896 118,101
  Net sales 30,532 29,500 28,909 27,007 21,485 115,948
  EBIT 2,003 2,616 4,421 1,835 801 10,875
  EBIT % 6.6 % 8.9 % 15.3 % 6.8 % 3.7 % 9.4 %
 
Network Services
  Orders received 22,911 24,367 21,455 22,405 22,048 91,138
  Net sales 22,911 24,367 21,455 22,405 22,048 91,138
  EBIT 595 909 516 -452 490 1,568
  EBIT % 2.6 % 3.7 % 2.4 % -2.0 % 2.2 % 1.7 %
 
Total
  Orders received 56,901 53,009 49,026 50,303 46,944 209,239
  Net sales 53,443 53,867 50,365 49,412 43,533 207,087
  EBIT 2,598 3,525 4,937 1,383 1,291 12,442
  EBIT % 4.9 % 6.5 % 9.8 % 2.8 % 3.0 % 6.0 %

 

 

 

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  
Share-holder's equity 1.1.2015 6,967 1,504 -339 58,139 3,954 -31 70,194 487 70,682  
Total compre-hensive income for the period     398 2,206   4 2,608 0 2,608  
Disposal of own shares         568   568 0 568  
Interest, non controll party       10     10 -10 0  
Share-holder's equity 31.3.2015 6,967 1,504 59 60,355 4,522 -27 73,380 477 73,858  
                     
Share-holder's equity 1.1.2014 6,967 1,504 126 53,079 3,457 -6 65,127 425 65,553  
Total compre-hensive income for the period     92 920   -7 1,005 0 1,005  
Used options         176   176 0 176  
Interest, con controll party       39     39 -39 0  
Share-holder's equity 31.3.2014 6,967 1,504 218 54,038 3,633 -13 66,347 386 66,734  
                       

 

 

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

 

 

 

Major shareholders 31.3.2015 Number of shares % of share capital
     
EM Group Oy 4,409,712 23.23
Mandatum Life Insurance Company Limited 1,679,200 8.84
Ilmarinen Mutual Pension Insurance Company 963,860 5.08
Kaleva Mutual Insurance Company 824,641 4.34
Teleste Management II Oy 542,000 2.85
Varma Mutual Pension Insurance Company 521,150 2.74
Teleste Oyj 517,086 2.72
OP-Finland Small Firms Fund 500,712 2.64
The State Pension Fund 500,000 2.63
FIM Fenno Equity fund 324,279 1.71

 


 

 

Shareholders by sector 31.3.2015 Number of shareholders % of Owners Number of shares Number of shares
         
Households 4,815 93.48 4,691,350 24.7
Public sector institutions 4 0.08 2,001,510 10.5
Financial and insurance institutions 18 0.35 3,799,797 20.0
Corporations 252 4.89 7,127,336 37.5
Non-profit institutions 28 0.54 408,222 2.2
Foreign and nominee registered owners 34 0.66 957,373 5.0
Total 5,151 100.00 18,985,588 100.0

 


 

 

Number of shares 31.3.2015 Number of shareholders % of shareholders Number of shares % of shares
         
1 – 100 1,162 22.6 77,496 0.4
101 - 500 2,250 43.7 610,762 3.2
501 - 1000 790 15.3 650,723 3.4
1001 - 5000 757 14.7 1,670,404 8.8
5001 - 10000 92 1.8 653,179 3.4
10001 - 50000 73 1.4 1,458,243 7.7
50001 - 100000 2 0.0 155,104 0.8
100001 - 500000 17 0.3 3,751,316 19.8
500001 - 8 0.2 9,958,361 52.5
Total 5,151 100.0 18,985,588 100.0
of which nominee registered     722,650 3.8

 

 

 

The following assets are liabilities were preliminary recognised in the acquisition Mitron:
1 000 € Recognised fair values on acquisition
Fair values used in consolidation  
Trade marks (inc. in intangible assets) 746
Customer relationship  (inc. in intangible assets) 585
Technology  (inc. in intangible assets) 1,362
Inventories 4,983
Trade receivables 8,514
Book values used in consolidation  
Tangible assets 944
Intangible assets 537
Shares and immaterial rights 29
Accrued income 1,315
Other receivables 425
Cash and cash equivalents 874
Total assets 20,314
   
Book values used in consolidation  
Interest-bearing liabilities 1,174
Trade payables 5,672
Deferred tax liabilities 539
Advances received 2,984
Other liabilities 3,300
Total liabilities 13,669
   
Net identifiable assets and liabilities 6,645
Total consideration 11,500
Goodwill on acquisition 4,855
   
Consideration paid in cash -7,700
Cash and cash equivalents in acquired subsidiary 874
Total net cash outflow on the acquisition -6,826

 

 

 

ADDITIONAL INFORMATION:
CEO Jukka Rinnevaara, phone +358 2 2605 866 or +358 400 747 488


DISTRIBUTION:
NASDAQ OMX Helsinki
Main Media

www.teleste.com