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Teleste Oyj

Quarterly Report Apr 28, 2010

3345_10-q_2010-04-28_a9d49f5f-32d4-4095-bd44-8c1d5fa220ef.pdf

Quarterly Report

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January 1– March 31, 2010 Interim Report Q1

First quarter of 2010

  • ¾ Net sales amounted to EUR 39.1 (25.6) million, an increase of 52.7% over the year of comparison
  • ¾ Operating profit stood at EUR 0.8 (-1.2) million
  • ¾ Undiluted result per share equalled EUR 0.03 (EUR -0.07)
  • ¾ Orders received amounted to EUR 37.5 (26.0) million, an increase of 44.3% over the year of comparison
  • ¾ Orders received by Video and Broadband Solutions amounted to EUR 18.6 (17.3) million
  • ¾ Orders received by Network Services stood at EUR 18.9 (8.7) million
  • ¾ Operating cash flow equalled EUR 2.4 (1.0) million.

Outlook for 2010

Due to increased net sales and adaptation of costs we estimate the operating profit to improve clearly over 2009.

Comments on Q1 by CEO Jukka Rinnevaara

Although the market situation was still relatively difficult, the first quarter of 2010 was significantly better than that of the previous year. The cold winter in Europe slowed down deliveries to clients in both of our business areas more than the usual seasonal variation. Furthermore, in the first quarter, reorganisation of the German services business caused one-off expenses. As to our Video and Broadband Solutions business, the market situation showed some tentative signs of a slight pick-up. Nevertheless, ordering decisions involving some important video surveillance projects have been delayed. The operating profit in Q1 was, on the whole, in the black due to increased net sales in Video and Broadband Solutions business and the adaption of costs.

We will press on determinedly with the implementation of our growth strategy, which consists of R&D solutions ensuring profitable growth in the future, strengthening of our distribution channels and expansion of our services offering. In the prevailing market situation careful cost management and adaptation measures must be continued. The on-going re-organisation of our services operations in Germany and, consequently, the enhanced utilization of synergies will improve the unit's profitability in the second half of the year while paving the way for expanding our business to near-by areas of Germany. Moreover, our Luminato headend solution has been well received by our clients and we expect its sales to develop favourably also later on in this year. The actual performance in Q1 confirms our estimation concerning the profitable growth in 2010.

We expect the ownership arrangements among the cable operators to continue the whole of the current year, and these may have an impact on the timing of network investments.

Market Situation and Net Sales

In Q1, the year-on-year orders received increased by 44.3% standing at EUR 37.5 (26.0) million. The increase of orders received by EUR 11.5 million over the period of comparison was mainly caused by acquisitions in our Network Services business area in the second half of 2009.

Net sales for Q1/2010 amounted to EUR 39.1 (25.6) million. The growth in net sales over the period of comparison was mainly caused by acquisitions in our Network Services business area carried out in the second half of 2009.

The Group's order backlog totalled EUR 31.2 (24.1) million. The order backlog includes the order for video headend (Luminato) of EUR 12.0 million received from India. So far deliveries related to this order have been delayed by more than a year from the original schedule. Nevertheless, we continue to estimate that the deliveries will begin in 2010 although the delivery involves significant uncertainties.

Financial Position and Result

Operating profit improved over the period of comparison standing at EUR 0.8 (-1.2) million, which is 2.1% (-4.7%) of net sales. This positive development was caused by growth in the net sales of Video and Broadband Solutions, on one hand, and by decrease in the material expenses and cost adaptation, on the other. Operating profit for the period of comparison included EUR 1.1 million of other operating income, whereas in the period under review these amounted to EUR 0.4 million. Undiluted result per share for Q1 was EUR 0.03 (-0.07).

Operating cash flow stood at EUR 2.4 (1.0) million. At the end of the period under review, the amount of unused binding stand-by credits amounted to EUR 19.5 (26.0) million. The current binding stand-by credits of EUR 40.0 million run till November 2013. The Group's equity ratio equalled 44.5% (51.8%) and net gearing 18.6% (18.6%). Interest bearing debt on 31 March 2010 was EUR 23.2 (15.7) million.

Video and Broadband Solutions

This business area focuses on product and management solutions of broadband subscriber networks, video services platforms and CCTV applications. Major clientele of the business area consists of cable operators but includes also resellers and public sector organizations. The main market of the business area is Europe.

Video and Broadband Solutions in Q1

Net sales in Q1 equalled EUR 19.1 (16.9) million. The year-on-year operating profit grew by EUR 2.0 million standing at EUR 0.6 (-1.5) million, which accounts for 2.9% (-8.7%) of net sales. This improvement in operating profit was due to increased net sales, better material margin and cost adaptation.

Orders received totalled EUR 18.6 (17.3) million. Order backlog totalled EUR 28.3 (24.1) million. The order backlog includes the order of EUR 12.0 million received in June 2008 from India.

R&D expenses for the business area amounted to EUR 2.6 (3.2) million making 13.6% (18.9%) of the area's net sales. Some 60% (70%) of the R&D expenses involved continued development of product platforms currently in production and their maintenance as well as customer-specific product applications. Out of the R&D expenses, EUR 0.3 (0.5) million were activated for the Luminato video processing system. Depreciation on activated R&D expenses amounted to EUR 0.6 (0.6) million. The relevant R&D efforts involved, in particular, the IP-based Luminato headend system and the video surveillance transfer system based on video encoding protocol H.264. Our R&D efforts continued involving the new generation amplifier technology (the Access product range), the optical transfer system for HFC networks (the HDO product range) and the video surveillance management system (VMX).

Network Services

Clientele of our Network Services business consists mainly of large European cable operators. The services provided by this business area include planning, new construction, upgrading and maintenance of cable networks. Implementation and scope of the relevant services vary by client ranging from standalone applications to integrated turnkey deliveries. Some of our projects also include Teleste's own product solutions. Our know-how on services covers all the sectors related to the cable network technology from installation and maintenance of headends to upgrading of house networks. Parts of the projects are carried out by our subcontractor network.

Network Services in Q1

Net sales of the business area amounted to EUR 20.0 (8.7) million. The year-on-year increase of EUR 11.3 million in net sales was due to acquisitions carried out in the second half of 2009.

Operating profit stood at EUR 0.3 (0.3) million making 1.3% (3.0%) of net sales. Relative profitability was weakened by an increased number of unfinished projects, delays in deliveries caused by the weather conditions and the deliveries consisting of certain low-margin services. Operations in Germany are being reorganised, which has caused a number of one-off expenses in the period under review. The German companies will be formed into three regional units operating under the business name of Cableway. At the same time, the number of own personnel will be reduced to some degree.

Orders received in Q1 stood at EUR 18.9 (8.7) million. Network Services received from Germany two frame agreements, which are contract extensions from current clients (NetCologne, delivery span 12 months and TeleColumbus, delivery span 6 years). The value of these contracts equals approximately EUR 8 million. Order backlog totalled EUR 2.9 (0.0) million.

Investments

Investments by the Group for the period under review totalled EUR 0.8 (10.8) million accounting for 1.9% (42.3%) of net sales; EUR 0.3 million involved an extension investment for the business premises in Finland and EUR 0.3 (0.5) million was allocated to product development. As to investments for the period, EUR 0.1 (0.1) million was carried out by means of financial leasing.

Personnel and Organisation

In the period under review, the Group employed on average 1,221 persons (1,001/2009, 681/2008), out of which 563 worked for Video and Broadband Solutions and 658 for Network Services. At the end of the period, the figure totalled 1,223 (1,001/2009, 686/2008) of which 68% (55%/2009, 33%/2008) were stationed overseas. Employees stationed outside Europe accounted for less than 5% of the Group's personnel. Expenditure on employee benefits amounted to EUR 12.3 (10.0/January-March 2009, 8.0/January-March 2008) million.

As part of the cost-structure adaptation measures required by the general market situation, the Finnish personnel have continued on a rotating layoff. Measures agreed on in the co-determination procedures will be sustained until the end of 2010 as required by the market situation. The co-determination procedure was concluded on 22 January 2010. Streamlining of German operations of Network Services is in progress.

Essential Operational Risks of Business Areas

Founded in 1954, Teleste is a technology and service provider consisting of two business areas: Video and Broadband Solutions and Network Services. With Europe as the main market area our most significant clients include European cable operators.

Concerning Video and Broadband Solutions, 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. The present difficult market situation may delay implementation of investment plans among our clientele. Network investments carried out by the clients vary based on their need for upgrading and their capital structure. Much of Teleste's competition comes from the USA so the exchange rate of euro up against the US dollar affects our competitiveness. Teleste hedges against short-term currency exposure by means of forward contracts. Correct technological choices and their timing are vital for our success.

Net sales for Network Services comes, for the most part, from a small number of large European customers, so a significant change in the demand for services by any one of them is reflected in the actual deliveries. To ensure quality of services and cost-efficiency, along with an efficient service process management, customer satisfaction requires innovative solutions in terms of processes, products and logistics. Being committed to the technical management of the cable operators' networks and the development of well-designed product solutions, Teleste ensures efficient operation of the networks by providing its own and suppliers' personnel with continuous further training.

It is equally important for our business areas to take into account any developments in the market such as consolidations taking place among the clientele and competition.

The Board of Directors annually reviews any essential risks related to the company operation and the management thereof. Risk management has been integrated into the strategic and operative practices of our business areas. Risks and their probability are reported to the Board with regular monthly reports.

The company has covered risks involving damage to operative functions of the business areas mainly by means of insurance policies. These insurances do not include credit loss risks. In the period under review, no such risks materialized, and no 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, Spain, the Netherlands, China and Denmark with subsidiaries in 12 countries outside Finland. Teleste Management Oy, which was founded in March 2010, is included in the Teleste Group figures because, owing to financial arrangements, Teleste Corporation has control over the company.

Decisions by the Annual General Meeting

The Annual General Meeting (AGM) held on 9 April 2010 confirmed the financial statements for 2009 and discharged the Board and the CEO from liability for the financial period. The AGM confirmed the Board's proposed dividend of EUR 0.08 per share. The dividend was paid out on 21 April 2010.

The AGM decided that the Board of Directors shall consist of six members. Marjo Miettinen was reappointed Chairman of the Board of Directors while the reappointed Board Members include Pertti Ervi, Tero Laaksonen, Pertti Raatikainen, Kai Telanne and Petteri Walldén.

Authorised Public Accountants KPMG Oy Ab continue as the auditor until the next AGM. Accountant authorised by the Central Chamber of Commerce of Finland Esa Kailiala was chosen auditor-in-charge.

The AGM authorised the Board to acquire the maximum of 1,400,000 of the company's own shares and to convey the maximum of 1,779,985 company's own shares. The AGM also authorised the company Board to issue 10,000,000 new shares. Pursuant to the special rights provided by the company, the maximum number of significant shares is 5,000,000; these special rights are included in the authorisation to issue 10,000,000 new shares.

The authorizations are valid until the Annual General Meeting of Shareholders for year 2011.

Shares and Changes in Share Capital

On 31 March 2010, EM Group Oy was the largest single shareholder with a holding of 20.05%.

In the period under review, the lowest company share price was EUR 3.63 (2.25) and the highest was EUR 4.90 (4.18). On 31 March 2010, the closing price stood at EUR 4.75 (3.18). According to Euroclear Finland Ltd the number of shareholders at the end of the period under review was 5,441 (5,415). Foreign ownership accounted for 9.3% (7.9%). From 1 January to 31 March 2010, trading with Teleste share at NASDAQ OMX Helsinki amounted to EUR 4.7 (21.1) million. In the period under review, 1.2 (5.9) million Teleste shares were traded on the stock exchange.

In March 2010, Teleste Board of Directors decided on a directed share issue of 381,000 shares to Teleste Management Oy established by the management of Teleste Corporation. This directed share issue was authorized by the AGM on 7 April 2009.

At the end of March 2010, the number of own shares in the Group possession stood at 760,985 (844,721) out of which parent company Teleste Corporation had none (0) while other Group or controlled companies had 760,985 shares, respectively. At the end of the period, the Group's holding of the total amount of shares amounted to 4.18% (4.74%).

On 31 March 2010, the registered share capital of Teleste stood at EUR 6,966,932.80 divided in 18,186,590 shares.

Events after the End of the Period

On 14 April 2010, Teleste acquired the Swiss Freycom S.A. specialising in maintenance and upgrading of networks with its primary business area in upgrade and maintenance services of house networks. For Teleste, this acquisition marks an entry into services business in a market where the company has long been an established and significant supplier of products. In 2009, the net sales of the acquired company stood at approximately EUR 2.7 million. The impact of this acquisition to Teleste's net sales for 2010 is estimated to be approximately EUR 2 million. The transaction has no essential effect on Teleste's operating profit. The acquisition increases Teleste's number of personnel by approximately 20.

Outlook

Cautious approach to network investments is likely to continue among the operator clientele of Video and Broadband Solutions. Nevertheless, we believe the deliveries will continue at least on the level of 2009.

We estimate the demand from the current clientele of Network Services to continue steady. The realized acquisitions ensure that the net sales will improve considerably from last year.

Due to increased net sales and adaptation of costs we estimate the operating profit to improve clearly over 2009.

27 April 2010

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. The data stated in this report is unaudited.

STATEMENT OF COMPREHENSIVE
INCOME (TEUR)
1-3/2010 1-3/2009 Change % 1-12/2009
Net Sales
Other operating income
39 094
357
25 604
1 113
52.7 %
-67.9 %
141 651
3 124
Materials and services -19 412 -11 903 63.1 % -69 962
Personnel expenses -12 279 -10 018 22.6 % -44 584
Other operating expenses -5 419 -4 662 16.2 % -21 323
Depreciation -1 515 -1 339 13.1 % -5 582
Impairment loss 0 0 n/a -800
Operating profit 826 -1 205 n/a 2 524
Financial income and expenses -148 -239 -38.1 % -605
Share of profit of associates 0 -100 n/a -544
Profit after financial items 678 -1 544 n/a 1 375
Profit before taxes 678 -1 544 n/a 1 375
Taxes -183 336 n/a -959
Net profit 495 -1 208 n/a 416
Attributable to:
Equity holders of the parent 495 -1 208 n/a 416
Earnings per share for result of the year attributable to the equity holders of the parent (expressed in
euro per share)
Basic 0.03 -0.07 n/a 0.02
Diluted 0.03 -0.07 n/a 0.02
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD (TEUR)
Net profit 495 -1 208 n/a 416
Translation differences 180 43 318.6 % 189
Fair value reserve -92 0 n/a -116
Total comprehensive income for
the period 583 -1 165 n/a 489
Attributable to:
Equity holders of the parent 583 -1 165 n/a 489
STATEMENT OF FINANCIAL
POSITION (tEUR) 31.3.2010 31.3.2009 Change % 31.12.2009
Non-current assets
Property,plant,equipment 9 770 6 725 45.3 % 9 960
Goodwill 31 657 20 092 57.6 % 31 657
Intangible assets 6 898 9 113 -24.3 % 7 664
Available-for-sale investments 894
49 219
1 128
37 058
-20.7 %
32.8 %
713
49 994
Current assets
Inventories 21 420 18 670 14.7 % 20 682
Other current assets 24 853 27 639 -10.1 % 26 884
Liquid funds 14 376 7 311 96.6 % 12 518
60 649 53 620 13.1 % 60 084
Total assets 109 868 90 678 21.2 % 110 078
Shareholder's equity and liabilities
Share capital 6 967 6 967 0.0 % 6 967
Other equity 40 398 38 297 5.5 % 39 702
Non-controlling interest 289 0 n/a 0
47 654 45 264 5.3 % 46 669
Non-current liabilities
Provisions 513 314 63.4 % 513
Non interest bearing liabilities 7 073 1 523 364.4 % 6 726
Interest bearing liabilities 12 237 10 175 20.3 % 12 237
19 823 12 012 65.0 % 19 476
Short-term liabilities
Trade payables and other s-t
liabilities 30 359 26 160 16.1 % 32 372
Provisions 1 042 1 673 -37.7 % 1 026
S-t interest bearing liabilities 10 990 5 569 97.3 % 10 535
42 391 33 402 26.9 % 43 933
Total shareholder's equity and
liabilities 109 868 90 678 21.2 % 110 078
CONSOLIDATED CASH FLOW
STATEMENT,1000 EURO
1-3/2010 1-3/2009 Change % 1-12/2009
Cash flows from operating
activities
Profit for the period 495 -1 208 n/a 416
Adjustments 1 959 1 290 51.9 % 8 230
Interest and other financial
expenses and incomes -148 -239 -38.1 % -937
Paid Taxes 0 0 n/a -1 708
Change in working capital 140 1 192 -88.3 % 3 830
Cash flow from operating activities 2 446 1 035 136.3 % 9 831
Cash flow from investing activities
Acquisition of subsidiary, net of
cash acquired 0 -6 793 n/a -10 281
Purchases of property, plant
and equipment (PPE) -673 -123 447.2 % -2 772
Purchases of intangible assets -145 -555 -73.9 % -1 327
Investments in shares 0 0 n/a -10
Net cash used in investing
activities -818 -7 471 -89.1 % -14 390
Cash flow from financing activities
Proceeds from borrowings 0 9 000 n/a 20 542
Payments of borrowings -239 -4 300 -94.4 % -10 623
Dividends paid 0 0 n/a -2 035
Own shares
Proceeds from issuance of
0 -264 n/a -264
ordinary shares 289 0 n/a 0
Net cash used in financing
activities
50 4 436 -98.9 % 7 620
Change in cash
Cash in the beginning 12 518 9 268 35.1 % 9 268
Effect of currency changes 180 43 318.6 % 189
Cash at the end 14 376 7 311 96.6 % 12 518
KEY FIGURES 1-3/2010 1-3/2009 Change % 1-12/2009
Earnings per share, EUR 0.03 -0.07 n/a 0.02
Earnings per share fully diluted,
EUR
Shareholders' equity per share,
0.03 -0.07 n/a 0.02
EUR 2.73 2.67 2.3 % 2.68
Return on equity 4.2 % -10.5 % n/a 0.9 %
Return on capital employed 4.9 % -9.4 % n/a 3.3 %
Equity ratio 44.5 % 51.8 % -14.1 % 43.6 %
Gearing 18.6 % 18.6 % -0.2 % 22.0 %
Investments, tEUR 756 10 825 -93.0 % 25 241
Investments % of net sales 1.9 % 42.3 % -95.4 % 17.8 %
Order backlog, tEUR 31 210 24 096 29.5 % 33 100
Personnel, average 1 221 1 011 20.8 % 1 103
Number of shares (thousands)
including own shares
17 810 17 806 0.0 % 17 806
Highest share price, EUR 4.90 4.18 17.2 % 4.30
Lowest share price, EUR 3.63 2.25 61.3 % 2.25
Average share price, EUR 4.02 3.50 14.9 % 3.62
Turnover, in million shares 1.2 5.9 -80.2 % 7.8
Turnover, in MEUR 4.7 21.1 -78.0 % 28.5
Treasury shares
Number % of % of
of shares shares votes
Teleste companies own shares
31.3.2010 760 985 4.18 % 4.18 %
Contingent liabilities and pledged
assets (tEUR)
For own debt
Other securities 120 259 -53.7 % 120
Leasing and rent liabilities 5 839 5 899 -1.0 % 6 016
5 959 6 158 -3.2 % 6 136
Derivative instruments (tEUR)
Value of underlying forward
contracts 7 152 7 387 -3.2 % 8 043
Market value of forward
contracts -356 -81 339.5 % -228
Interest rate swap 11 500 0 n/a 11 500
Market value of interest swap -282 0 n/a -157

Taxes are computed on the basis of the tax on the profit for the period.

RECLASSIFICATION OF SEGMENTS 1.1.2010

OPERATING SEGMENTS (TEUR) 1-3/2010 1-3/2009 Change % 1-12/2009
Video and Broadband Solutions
Order intake 18 578 17 290 7.4 % 81 612
Net sales 19 062 16 908 12.7 % 76 280
EBIT 562 -1 464 n/a -692
EBIT% 2.9 % -8.7 % n/a -0.9 %
Network Services
Order intake 18 926 8 696 117.6 % 69 408
Net sales 20 032 8 696 130.4 % 65 371
EBIT 264 259 1.9 % 3 216
EBIT% 1.3 % 3.0 % -55.9 % 4.9 %
Total
Order intake 37 504 25 986 44.3 % 151 020
Net sales 39 094 25 604 52.7 % 141 651
EBIT 826 -1 205 n/a 2 524
EBIT% 2.1 % -4.7 % n/a 1.8 %
Financial items -148 -239 -38.1 % -605
Share of profit of associates
Operating segments net profit
0 -100 n/a -544
before taxes 678 -1 544 n/a 1 375

Segment assets

Segment assets include items directly attributable as well as those that can be allocated on a reasonable basis.

31.3.2010 31.3.2009 Change % 31.12.2009
Video and Broadband
Solutions 55 000 62 540 -12.1 % 56 120
Network Services 41 520 20 827 99.4 % 41 440
Segment assets total 96 520 83 367 15.8 % 97 560
Unallocated assets 14 376 7 311 96.6 % 12 518
Assets total 110 896 90 678 22.3 % 110 078
Information per 4/2009-
quarter (tEUR) 1-3/10 10-12/09 7-9/09 4-6/09 1-3/09 3/2010
Video and Broadband Solutions
Order intake 18 578 22 705 22 508 19 109 17 290 82 900
Net sales 19 062 21 015 18 262 20 095 16 908 78 434
EBIT 562 -457 1 524 -295 -1 464 1 334
EBIT % 2.9 % -2.2 % 8.3 % -1.5 % -8.7 % 1.7 %
Network Services
Order intake 18 926 24 119 26 136 10 457 8 696 79 638
Net sales 20 032 22 769 23 449 10 457 8 696 76 707
EBIT 264 2 175 84 698 259 3 221
EBIT % 1.3 % 9.6 % 0.4 % 6.7 % 3.0 % 4.2 %
Total
Order intake 37 504 46 824 48 644 29 566 25 986 162 538
Net sales 39 094 43 784 41 711 30 552 25 604 155 141
EBIT 826 1 718 1 608 403 -1 205 4 555
EBIT % 2.1 % 3.9 % 3.9 % 1.3 % -4.7 % 2.9 %
Share
of
Attri non
butable to cont
equity Trans Retai rol
holders of lation ned Inve-sted ling
the parent
(tEUR)
Share
capital
Share
premium
Differ
rences
Earn
ings
free
capital
Other
funds
Total Inte
rest
Total
equity
Share
holder's
equity
1.1.2010
Total
6 967 1 504 -372 35 949 2 737 -116 46 669 0 46 669
compre
hensive
income for
the period 180 495 -92 583 0 583
Share issue 0 0 289 289
Equity
settled
share
based
payments
113 0 0 113 0 113
Share
holder's
equity
31.3.2010 6 967 1 504 -192 36 557 2 737 -208 47 365 289 47 654
Share
holder's
equity
1.1.2009 6 967 1 504 -561 37 284 1 451 0 46 645 0 46 645
Profit of
the period
43 -1 208 0 -1 165 0 -1 165
Equity
settled
share
based
payments 48 -264 0 -216 0 -216
Share
holder's
equity
31.3.2009 6 967 1 504 -518 36 124 1 187 0 45 264 0 45 264

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 31.3.2010 Shares %
EM Group Oy 3 647 248 20.05
Mandatum Life 1 679 200 9.23
Ilmarinen Mutual Pension Insurance Company 894 776 4.92
Kaleva Mutual Pension Insurance Company 824 641 4.53
Varma Mutual Pension Insurance Company 521 150 2.87
The State Pension Fund 500 000 2.75
Aktia Capital Mutual Fund 450 000 2.47
Skagen Vekst Verdipapierfond 437 000 2.40
Fim Fenno Mutual Fund 401 342 2.21
Teleste Management Oy 381 000 2.09
SECTOR DISPERSION 31.3.2010 Shareholders % Shares %
Corporations 323 5.93 5 813 632 31.96
Financial and insurance corporations 17 0.31 3 441 784 18.92
Public institutions 7 0.12 2 172 976 11.94
Non-profit institutions 40 0.73 563 716 3.09
Households 5 011 92.09 4 506 191 24.77
Foreign countries and nominee registered 43 0.79 1 688 291 9.28
Total 5 441 100.00 18 186 590 100.00

Teleste Corporation

P.O.Box 323, FI-20101 Turku, Finland Seponkatu 1, FI-20660 Littoinen, Finland Phone +358 2 2605 611 (switchboard) [email protected] Business ID 1102267-8 www.teleste.com

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