Ponsse Oyj

Interim / Quarterly Report • Aug 10, 2021

Ponsse´s half-year report for 1 January - 30 June 2021

Ponsse´s half-year report for 1 January - 30 June 2021

– Net sales for the period under review amounted to EUR 350.8 (276.4) million.
– Operating result for the period under review totalled EUR 36.3 (21.8) million,
equalling 10.3 (7.9) per cent of net sales.
– Profit before taxes for the period under review was EUR 35.9 (7.0) million.
– Cash flow from business operations for the period under review was EUR 25.1 (
-14.3) million.
– Earnings per share were EUR 0.89 (0.11) for the period under review.
– Equity ratio was 59.5 (47.9) per cent at the end of period under review.
– Order books stood at EUR 355.5 (179.3) million at the end of period under
review.
– Net sales for the second quarter amounted to EUR 187.4 (131.9) million.
– Operating result for the second quarter totalled EUR 19.5 (8.4) million,
equalling 10.4 (6.4) per cent of net sales.
PRESIDENT AND CEO JUHO NUMMELA:
The forest machine market continued its very positive development during the
second quarter of the year. The good situation in the forest industry and among
our customers was reflected favourably in all our business areas. Ponsse’s order
flow totalled EUR 236.3 million for the second quarter, increasing our order
books to EUR 355.5 million. Our factory operated efficiently during the period
under review, and we manufactured all the PONSSE forest machines included in our
production programme as planned.
Demand for forest machines remained excellent in nearly all of our market areas.
During the second quarter, we grew strongly and all our business areas developed
positively. The steady work situation of our customers has been evidenced by the
strong growth of our maintenance services. In addition, demand for trade-in
machines has been high, and the rotation of our trade-in machine stock has
developed in a positive direction. Our trade-in machine stock is showing slight
growth driven by the strong invoicing for new machines. Nevertheless, our
working capital has remained at a good level and our cash flow has been very
strong considering the period.
The availability of parts and components continues to be a challenge due to high
demand for machine and equipment manufacturing. Our organisation has cooperated
excellently with our supplier and manufacturing network, and we have been able
to secure the availability of parts for PONSSE forest machines. Our
manufacturing lines were on schedule when our Vieremä factory was closed for
summer holidays in July. Pressures related to increasing the costs of parts and
components continue to be high. What makes this challenging for Ponsse is that
these increased costs cannot be transferred as a whole directly to our
customers. This is affected by the far-reaching order books in our production,
the pricing of already agreed machine deals and our customers’ challenges in
their business operations amidst increasing harvesting costs. Together with our
suppliers, we are continuously seeking sustainable solutions to curb cost
increases.
Ponsse’s personnel have worked remotely since the outbreak of the coronavirus
pandemic, apart from our production, sales and maintenance service personnel. We
also started this autumn by working remotely to protect our production and
maintenance service network. It is vital to keep our personnel healthy and serve
our customers at full efficiency.
NET SALES
Consolidated net sales for the period under review amounted to EUR 350.8 (276.4)
million, which is 26.9 per cent more than in the comparison period.
International business operations accounted for 79.0 (76.0) per cent of net
sales.
Net sales were regionally distributed as follows: Northern Europe 35.2 (42.9)
per cent, Central and Southern Europe 20.9 (22.8) per cent, Russia and Asia 19.2
(11.5) per cent, North and South America 24.3 (22.1) per cent and other
countries 0.4 (0.7) per cent.
PROFIT PERFORMANCE
The operating result amounted to EUR 36.3 (21.8) million. The operating result
equalled 10.3 (7.9) per cent of net sales for the period under review.
Consolidated return on capital employed (ROCE) stood at 21.2 (4.8) per cent.
Staff costs for the period totalled EUR 51.4 (42.9) million. Other operating
expenses stood at EUR 28.0 (24.0) million. The net total of financial income and
expenses amounted to EUR -0.4 (-14.8) million. Exchange rate gains and losses
with a net effect of EUR -0.1 (-13.5) million were recognised under financial
items for the period. The parent company’s receivables from subsidiaries stood
at EUR 70.7 (111.1) million net. Their reduction and the moderate change in
exchange rates have resulted in a significantly reduced impact on financial
items for the period under review. The unrealised exchange rate losses for the
comparison period mainly consist of the assessment of inter-company accounts
payable for Ponsse Latin America Ltda and OOO Ponsse.
The effective tax rate for the period under review is affected by a tax expense
posted in full of Ponsse Latin America related to the valuation of a parent
company net investment posted by the group in the financial statements 2020 and
completed by the subsidiary in the period under review. The finality of the tax
expense will be decided by the authorities. The parent company’s receivables
from subsidiaries mainly consist of trade receivables. The unposted tax assets
of unrealised exchange rate losses for unhedged items related to the trade
receivables’ valuation impacted the group’s effective tax rate for the
comparison period.
Result for the period under review totalled EUR 24.8 (2.9) million. Diluted and
undiluted earnings per share (EPS) came to EUR 0.89 (0.11).
STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES
At the end of the period under review, the total consolidated statements of
financial position amounted to EUR 461.4 (484.8) million. Inventories stood at
EUR 170.4 (174.8) million. Trade receivables totalled EUR 48.4 (38.5) million,
while cash and cash equivalents stood at EUR 58.7 (103.3) million. Group
shareholders’ equity stood at EUR 266.1 (229.5) million and parent company
shareholders’ equity (FAS) at EUR 212.4 (215.7) million. The amount of interest
-bearing liabilities was EUR 55.0 (165.0) million. The company has ensured its
liquidity by credit facility limits and commercial paper programs, which are not
used at the end of the period under review. Group's loans from financial
institutions are non-collaretal bank loans without financial covenants.
Consolidated net liabilities totalled EUR -3.7 (61.7) million, and the debt
-equity ratio (net gearing) was -1.4 (26.9) per cent. The equity ratio stood at
59.5 (47.9) per cent at the end of the period under review.
Cash flow from operating activities amounted to EUR 25.1 (-14.3) million. Cash
flow from investment activities came to EUR -11.1 (-7.2) million.
IMPACT OF THE COVID-19 PANDEMIC
The company has recovered from the impacts of Covid-19-pandemic on the demand
for products faster than expected. However, the coronavirus pandemic has caused
changes in the company’s operating environment. The company’s management is
actively monitoring the development of the pandemic. The coronavirus pandemic
may have a major impact on the availability of components. The company will
continue its enhanced cost control and careful execution of investments going
forward.
Coronavirus restrictions have been felt by company operations across the world.
Decisions have been made to ensure the health and safety of the company’s
customers and all Ponsse employees. The company’s white-collar employees
continue teleworking, while manufacturing units and the sales and service
business network continue to operate as normal.
In terms of financing, the company has carried out all measures necessary to
ensure business continuity. The company has analysed credit risks related to
trade receivables, as well as credit loss provisions, and concluded that there
are sufficient provisions at the end of the period under review. The company has
not had any signs of decreases in goodwill or the value of activated development
costs.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 535.7 (217.4) million, while period-end
order books were valued at EUR 355.5 (179.3) million.
DISTRIBUTION NETWORK
The subsidiaries included in the Ponsse Group are Ponsse AB, Sweden; Ponsse AS,
Norway; Ponssé S.A.S., France; Ponsse UK Ltd, the United Kingdom; Ponsse
Machines Ireland Ltd, Ireland, Ponsse North America, Inc., the United States;
Ponsse Latin America Ltda, Brazil; Ponsse Uruguay S.A., Uruguay; OOO Ponsse,
Russia; Ponsse Asia-Pacific Ltd, Hong Kong; Ponsse China Ltd, China and Epec Oy,
Finland. The Group includes also the property company Ponsse Centre, Russia.
Sunit Oy, Finland, is an associate in which Ponsse Plc has a holding of 34 per
cent.
R&D AND CAPITAL EXPENDITURE
Group’s R&D expenses during the period under review totalled EUR 11.5 (10.9)
million, of which EUR 3.9 (4.4) million was capitalised.
Capital expenditure totalled EUR 11.3 (7.2) million. It consisted in addition to
capitalised R&D expenses of investments in buildings and ordinary maintenance
and replacement investments for machinery and equipment.
MANAGEMENT
The following persons were members of the Management Team: Juho Nummela,
President and CEO, acting as the chairman; Petri Härkönen, Deputy CEO, CFO; Juha
Inberg, Technology and R&D Director; Marko Mattila, Sales and Marketing
Director; Tapio Mertanen, Service Director; Paula Oksman, HR Director; Miika
Soininen, Director of IT and Digital Services and Tommi Väänänen, Director of
Delivery Chain Process. The company management has regular management liability
insurance.
The area director organisation of sales is led by Marko Mattila, the Group's
sales and marketing director, and Tapio Mertanen, service director. Area
directors report to Jussi Hentunen, Ponsse retail network manager. Managing
directors of subsidiaries and Jussi Hentunen report to Marko Mattila, Ponsse
Plc's sales and marketing director.
The geographical distribution and the responsible persons are presented below:
Northern Europe:
Jani Liukkonen (Finland),
Carl-Henrik Hammar (Sweden, Denmark and Norway) and
Tarmo Saks (the Baltic countries).
Central and Southern Europe:
Tuomo Moilanen (Germany and Austria),
Clément Puybaret (France),
Janne Tarvainen (Spain and Portugal),
Gary Glendinning (United Kingdom and Ireland),
Antti Räsänen (Hungary, Italy, Romania, Slovenia, Croatia, Serbia and Bulgaria)
and
Tarmo Saks (Poland, Czech Republic and Slovakia).
Russia and Asia:
Jaakko Laurila (Russia and Belarus),
Janne Tarvainen (Australia and South Africa) and
Risto Kääriäinen (China and Japan).
North and South America:
Pekka Ruuskanen (the United States),
Eero Lukkarinen (Canada),
Fernando Campos (Brazil) and
Martin Toledo (Uruguay, Chile and Argentina).
PERSONNEL
The Group had an average staff of 1,912 (1,771) during the period and employed
1,935 (1,777) people at period-end.
SHARE PERFORMANCE
The company’s registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January – 30 June 2021 totalled
690,444, accounting for 2.5 per cent of the total number of shares. Share
turnover amounted to EUR 26.2 million, with the period’s lowest and highest
share prices amounting to EUR 29.15 and EUR 45.85, respectively.
At the end of the period, shares closed at EUR 42.40, and market capitalisation
totalled EUR 1,187.2 million.
At the end of the period under review, the company held 227 treasury shares.
ANNUAL GENERAL MEETING
A separate release was issued on 7 April 2021 regarding the authorizations given
to the Board of Directors and other resolutions at the AGM.
GOVERNANCE
In its decision-making and administration, the company observes the Finnish
Limited Liability Companies Act, other regulations governing publicly listed
companies and the company’s Articles of Association. The company’s Board of
Directors has adopted the Code of Governance that complies with the Finnish
Corporate Governance Code approved by the Board of the Securities Market
Association. The purpose of the code is to ensure that the company is
professionally managed and that its business principles and practices are of a
high ethical and professional standard.
The Code of Governance is available on Ponsse’s website in the Investors
section.
RISK MANAGEMENT
Risk management is based on the company’s values, as well as strategic and
financial objectives. Risk management aims to support the achievement of the
objectives specified in the company’s strategy, as well as to ensure the
financial development of the company and the continuity of its business.
Furthermore, risk management aims to identify, assess and monitor business
-related risks which may influence the achievement of the company’s strategic
and financial goals or the continuity of its business. Decisions on the
necessary measures to anticipate risks and react to observed risks are made on
the basis of this information.
Risk management is a part of regular daily business, and it is also included in
the management system. Risk management is controlled by the risk management
policy approved by the Board.
A risk is any event that may prevent the company from reaching its objectives or
that threatens the continuity of business. On the other hand, a risk may also be
a positive event, in which case the risk is treated as an opportunity. Each risk
is assessed on the basis of its impact and probability. Methods of risk
management include avoiding, mitigating and transferring risks. Risks can also
be managed by controlling and minimising their impact.
SHORT-TERM RISK MANAGEMENT
The insecurity in the world economy may result in a decline in the demand for
forest machines and the availability of components. The unexpectedly swift
recovery of the world economy and rapid growth in demand have resulted in
availability problems in certain component groups. The quick economic
fluctuation may affect availability, but also cause rapid inflation in the
component market. The uncertainty may also be increased by the volatility of
developing countries’ foreign exchange markets. The geopolitical situation, in
particular, will increase the uncertainty through financial market operations
and sanctions. Changes taking place in the fiscal and customs legislation in
countries to which Ponsse exports may hamper the company’s export trade or its
profitability.
The effects of the COVID-19 pandemic are described in section “IMPACT OF THE
COVID-19 PANDEMIC” of this release.
The parent company monitors the changes in the Group’s internal and external
trade receivables and the associated risk of impairment.
The key objective of the company’s financial risk management policy is to manage
liquidity, interest and currency risks. The company ensures its liquidity
through credit limit facilities agreed with a number of financial institutions.
The effect of adverse changes in interest rates is minimised by utilising credit
linked to different reference rates and by concluding interest rate swaps. The
effects of currency rate fluctuations are partly mitigated through derivative
contracts.
OUTLOOK FOR THE FUTURE
Group’s euro-denominated operating result in 2021 is expected to be slightly
higher than in 2020.
The impact of the coronavirus pandemic on Ponsse’s business, financial standing,
operational performance and liquidity is constantly monitored.
Sustainable solutions to address the availability of parts and components, as
well as increasing costs, are being sought in cooperation with the supplier
network.  The company will continue its enhanced cost control and careful
investment execution.

PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)

[][]

                         IFRS      IFRS      IFRS
                       1-6/21    1-6/20   1-12/20

NET SALES 350,792 276,408 636,627
Increase 23,286 17,577 -6,424
(+)/decrease (-) in
inventories of
finished goods and
work in progress
Other operating 1,189 928 3,521
income
Raw materials and -247,488 -194,189 -418,400
services
Expenditure on -51,408 -42,851 -85,726
employment-related
benefits
Depreciation and -12,039 -11,998 -24,631
amortisation
Other operating -28,047 -24,041 -47,821
expenses
OPERATING RESULT 36,286 21,836 57,146
Share of results of 34 -60 86
associated companies
Financial income and -423 -14,764 -17,671
expenses
RESULT BEFORE TAXES 35,896 7,011 39,561
Income taxes -11,110 -4,064 -7,277
NET RESULT FOR THE 24,786 2,947 32,284
PERIOD

OTHER ITEMS INCLUDED
IN TOTAL
COMPREHENSIVE
RESULT:
Translation 3,025 2,793 -968
differences related
to foreign units

TOTAL COMPREHENSIVE 27,811 5,740 31,316
RESULT FOR THE
PERIOD

Diluted and 0.89 0.11 1.15
undiluted earnings
per share[*]

                         IFRS      IFRS
                       4-6/21    4-6/20

NET SALES 187,410 131,905
Increase 6,747 -4,892
(+)/decrease (-) in
inventories of
finished goods and
work in progress
Other operating 768 458
income
Raw materials and -127,791 -82,158
services
Expenditure on -27,772 -20,224
employment-related
benefits
Depreciation and -6,146 -5,964
amortisation
Other operating -13,697 -10,721
expenses
OPERATING RESULT 19,519 8,405
Share of results of -51 -40
associated companies
Financial income and 1,155 213
expenses
RESULT BEFORE TAXES 20,623 8,577
Income taxes -4,635 -2,445
NET RESULT FOR THE 15,989 6,133
PERIOD

OTHER ITEMS INCLUDED
IN TOTAL
COMPREHENSIVE
RESULT:
Translation 954 950
differences related
to foreign units

TOTAL COMPREHENSIVE 16,942 7,082
RESULT FOR THE
PERIOD

Diluted and 0.57 0.22
undiluted earnings
per share[*]

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)

                                                IFRS       IFRS       IFRS

ASSETS 30 Jun 21 30 Jun 20 31 Dec 20
NON-CURRENT ASSETS
Intangible assets 39,771 34,843 36,709
Goodwill 3,806 3,792 3,808
Property, plant and equipment 111,328 110,686 112,183
Financial assets 371 370 371
Investments in associated companies 800 685 832
Non-current receivables 901 1,119 839
Deferred tax assets 4,195 3,870 3,076
TOTAL NON-CURRENT ASSETS 161,172 155,365 157,818

CURRENT ASSETS
Inventories 170,448 174,805 142,137
Trade receivables 48,367 38,486 35,384
Income tax receivables 2,056 421 1,849
Other current receivables 20,717 12,338 13,165
Cash and cash equivalents 58,682 103,348 123,611
TOTAL CURRENT ASSETS 300,269 329,398 316,146

TOTAL ASSETS 461,441 484,763 473,964

SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital 7,000 7,000 7,000
Other reserves 3,460 3,460 3,460
Translation differences 7,456 8,192 4,431
Treasury shares -2 -2 -2
Retained earnings 248,138 210,812 240,149
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 266,052 229,462 255,038

NON-CURRENT LIABILITIES
Interest-bearing liabilities 50,885 48,176 50,470
Deferred tax liabilities 812 1,075 1,137
Other non-current liabilities 90 48 41
TOTAL NON-CURRENT LIABILITIES 51,787 49,299 51,648

CURRENT LIABILITIES
Interest-bearing liabilities 4,141 116,874 64,055
Provisions 4,739 4,135 4,979
Tax liabilities for the period 2,565 1,210 1,312
Trade creditors and other current liabilities 132,158 83,784 96,932
TOTAL CURRENT LIABILITIES 143,602 206,002 167,278

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 461,441 484,763 473,964

CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)

                                                     IFRS     IFRS     IFRS
                                                   1-6/21   1-6/20  1-12/20

CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period 24,786 2,947 32,284
Adjustments:
Financial income and expenses 423 14,764 17,671
Share of the result of associated companies -34 60 -86
Depreciation and amortisation 12,039 11,998 24,631
Income taxes 11,110 4,064 7,277
Other adjustments 1,619 -303 -58
Cash flow before changes in working capital 49,943 33,531 81,719

Change in working capital:
Change in trade receivables and other receivables -19,993 8,626 9,454
Change in inventories -25,574 -27,829 1,965
Change in trade creditors and other liabilities 34,732 -21,235 -5,743
Change in provisions for liabilities and charges -240 685 1,529
Interest received 62 41 97
Interest paid -664 -632 -1,068
Other financial items -1,625 -1,036 -3,100
Income taxes paid -11,516 -6,431 -10,063
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 25,126 -14,281 74,790

CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -11,273 -7,247 -20,270
Proceeds from sale of tangible and intangible assets 141 2 254
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -11,132 -7,245 -20,016

CASH FLOWS FROM FINANCING ACTIVITIES
Withdrawal/Repayment of current loans -60,119 83,655 28,680
Withdrawal/Repayment of finance lease liabilities -1,501 -1,302 -1,268
Dividends paid -16,800 -6,623 -8,400
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) -78,420 75,731 19,012

Change in cash and cash equivalents (A+B+C) -64,426 54,205 73,786

Cash and cash equivalents on 1 Jan 123,611 48,704 48,704
Impact of exchange rate changes -503 439 1,121
Cash and cash equivalents on 30 Jun/31 Dec 58,682 103,348 123,611

*) The company changed over to presenting the change in non-current receivables
included in the cash flow statement under item change in trade receivables and
other receivables. As a result, previously reported cash flows have been
adjusted to allow comparability. The previously reported cash flow from business
operations was EUR -14.6 million in the half-year report for 1 January – 30 June
2020. In addition, the company has made a retrospective change between items
Other adjustments, Income taxes paid and Change in trade creditors and other
liabilities. The change had no effect on Net cash flows from operating
activities (A).

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)

A = Share capital
B = Share premium
and other reserves
C = Translation
differences
D = Treasury shares
E = Retained
earnings
F = Total
shareholders’ equity

                  EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS
                      A      B      C   D        E          F

SHAREHOLDERS’ EQUITY 7,000 3,460 4,431 -2 240,149 255,038
  1 JAN 2021
Translation 3,025 3,025
differences
Result for the 24,786 24,786
period
Total comprehensive 3,025 24,786 27,811
income for the
period
Dividend -16,800 -16,800
distribution
Direct entries to 3 3
retained earnings
SHAREHOLDERS' EQUITY 7,000 3,460 7,456 -2 248,138 266,052
30 JUN 2021

SHAREHOLDERS’ 7,000 3,460 5,400 -2 216,264 232,121
EQUITY   1 JAN 2020
Translation 2,793 2,793
differences
Result for the 2,947 2,947
period
Total comprehensive 2,793 2,947 5,740
income for the
period
Dividend -8,399 -8,399
distribution
SHAREHOLDERS' EQUITY 7,000 3,460 8,193 -2 210,812 229,462
30 JUN 2020

SEGMENT INFORMATION (EUR 1,000)

OPERATING
SEGMENTS
1-6/2021 Northern Central Russia North Total
Europe and and and
Southern Asia South
Europe America
Net sales of the 235,837 75,021 67,989 86,654 465,502
segment
Sales between -112,504 -1,765 -511 -1,462 -116,241
segments
Unallocated 1,531
sales
NET SALES FROM 123,334 73,257 67,478 85,192 350,792
EXTERNAL
CUSTOMERS

Operating result 2,362 10,712 11,652 10,276 35,002
of the segment
Unallocated 1,284
items
OPERATING RESULT 2,362 10,712 11,652 10,276 36,286

OPERATING
SEGMENTS
1-6/2020 Northern Central Russia North Total
Europe and and and
Southern Asia South
Europe America
Net sales of the 189,341 64,350 32,329 62,122 348,142
segment
Sales between -70,603 -1,210 -655 -1,096 -73,563
segments
Unallocated 1,830
sales
NET SALES FROM 118,738 63,139 31,675 61,026 276,408
EXTERNAL
CUSTOMERS

Operating result 2,329 8,457 996 6,783 18,565
of the segment
Unallocated 3,271
items
OPERATING RESULT 2,329 8,457 996 6,783 21,836
  30 30 31
Jun Jun Dec
21 20 20
1. LEASING 789 653 595
COMMITMENTS (EUR
1,000)
2. CONTINGENT 30 30 31
LIABILITIES (EUR Jun Jun Dec
1,000) 21 20 20
Guarantees given 20 0 20
on behalf of
others
Responsibility 7,584 8,217 7,863
of checking the
VAT deductions
made on real
property
investments
Other 32 6 14
commitments
TOTAL 7,636 8,223 7,897
3. PROVISIONS Guarantee
(EUR 1,000) provision
1 January 2021 4,979
Provisions added 262
Provisions -502
cancelled
30 June 2021 4,739
4. DIVIDENDS 30 Jun 30 Jun 20
PAID (EUR 1,000) 21
Dividends per  16,800 8,400
share EUR 0.60
(EUR 0.30)
5. PROPERTY, 1-6/21 1-6/20
PLANT AND
EQUIPMENT (EUR
1,000)
Increase 8,715 5,354
Decrease -9,697 -5,519
TOTAL -982 -165
6. RELATED PARTY 1-6/21 1-6/20
TRANSACTIONS
Management’s
employment
-related
benefits (EUR
1,000)
Salaries and 2,276 2,247
other short-term
employment
-related
benefits
Benefits paid 0 0
upon termination
of employment
Pension 603 673
liabilities,
statutory and
voluntary
pension security
Compensation of 142 123
the members of
the Board of
Directors
KEY FIGURES AND 30 30 Jun 20 31
RATIOS Jun Dec
21 20
R&D expenditure, 11.5 10.9 21.3
MEUR
Capital 11.3 7.2 20.3
expenditure,
MEUR
as % of net 3.2 2.3 3.2
sales
Average number 1,912 1,771 1,782
of employees
Order books, 355.5 179.3 174.9
MEUR
Equity ratio, % 59.5 47.9 54.3
Diluted and 0.89 0.11 1.15
undiluted
earnings per
share (EUR)
Equity per share 9.50 8.20 9.11
(EUR)

FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
Result before taxes + financial expenses

---

---

Shareholder´s equity + interest-bearing financial liabilities (average during
the year) * 100
Average number of employees:
Average of the number of personnel at the end of each month. The calculation has
been adjusted for part-time employees.
Net gearing, %:
Interest-bearing financial liabilities – cash and cash equivalents

---

---

Shareholders’ equity * 100
Equity ratio, %:
Shareholders’ equity + Non-controlling interests

---

Balance sheet total - advance payments received * 100
Earnings per share:
Net result for the period - Non-controlling interests

---

---

Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Shareholders’ equity

---

---

Number of shares on the balance sheet date, adjusted for share issues

ORDER INTAKE (EUR million) 1-6/21 1-6/20 1-12/20
Ponsse Group 535.7 217.4 581.7

The stock exchange release for the half-year report has been prepared observing
the recognition and valuation principles of IFRS, and the requirements of IAS 34
have been complied with. The same accounting principles were observed for the
closing of the books as for the annual financial statements dated 31 December
2020.
In April 2021, the IFRS Interpretations Committee published its final agenda
decision on the accounting of configuration or customisation costs in a cloud
computing arrangement (IAS 38 Intangible Assets). In this agenda decision, the
Interpretations Committee determined whether customers recognise an intangible
asset in relation to the configuration or customisation of application software
by applying the IAS 38 standard and, if no intangible asset is recognised, how
customers account for the configuration or customisation costs in question.
IFRIC agenda decisions have no date when they enter into force, and they are
expected to be applied as soon as possible. Because the Group uses cloud
computing arrangements, it has started to analyse whether this agenda decision
has any impact on the accounting principles applied to the deployment costs of
cloud services. The Group will conduct this analysis during the autumn of 2021,
and any impact will be taken retroactively into account no later than in the
2021 financial statements.
The above figures have not been audited.
The above figures have been rounded and may therefore differ from those given in
the official financial statements.
This communication includes future-oriented statements that are based on the
assumptions currently made by the company’s management and its current decisions
and plans. Although the management believes that the future expectations are
well founded, there is no certainty that these expectations will prove to be
correct. This is why the results may significantly deviate from the assumptions
included in the future-oriented statements as a result of, among other things,
changes in the economy, markets, competitive conditions, legislation or currency
exchange rates.
Vieremä, 10 August 2021
PONSSE PLC
Juho Nummela
President and CEO
FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 400 495 690
Petri Härkönen, CFO, tel. +358 50 409 8362
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.ponsse.com
Ponsse Plc is a company specialising in the sales, manufacture, servicing and
technology of cut-to-length method forest machines and is driven by genuine
interest in its customers and their business. Ponsse develops and manufactures
sustainable and innovative harvesting solutions based on customers’ needs.
The company was established by forest machine entrepreneur Einari Vidgrén in
1970, and it has been a leader in timber harvesting solutions based on the cut
-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The
company’s shares are quoted on the NASDAQ OMX Nordic List.

Attachments: