Quarterly Report • Apr 25, 2023
Quarterly Report
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25.4.2023
Ponsse Plc, Stock Exchange Release, 25 April 2023, 9:00 a.m.
January-March (continuing operations):
– Cash flow from business operations was EUR 2.4 (-24.2) million (continuing and discontinued operations)
– Equity ratio was 56.8 (61.2) per cent at the end of period under review (continuing and discontinued operations)
– Ponsse has classified the Russian operations subject to trade as assets held for sale and reported them as discontinued operations. Unless otherwise specified, the figures presented in this interim report refer to continuing operations. The balance sheet has not been adjusted for the comparison period. The cash flow statement has not been adjusted.
– The company's euro-denominated operating profit in 2023 is expected to be slightly higher than the operating profit of its continuing operations in 2022 (EUR 46.6 million).
The forest machine market functioned well during the first quarter. Demand for PONSSE forest machines picked up in the middle of the period under review, and the order intake totalled roughly EUR 185 million. At the end of the period, the company's order books stood at EUR 336.9 (356.2) million.
Ponsse showed excellent growth during the first quarter. Our net sales increased by approximately 29 per cent to EUR 201.7 (156.1) million. The fastest-growing business areas were new machine sales, maintenance services, and our technology company Epec. Our customers' good business situation enabled our maintenance services to grow. Demand for used machines was also high. Epec experienced a strong market situation and a high demand for new products.
New machines were delivered to our customers at an accelerating pace as the availability of parts improved, and Ponsse was able to find solutions for bottlenecks in the supplier network. The company's profitability improved driven by the increased machine volume despite extended inflation and development activities aimed to improve profitability. Our operating profit developed in a more positive direction, and our relative profitability was 8.2 (5.7) per cent. We were able to cut our operating costs so that costs grew less than our net sales. We have actively sought solutions with our customers for the operational challenges of Ponsse Latin America, Ltda., Ponsse's subsidiary in Brazil. Full service agreements, which led to write-downs at the end of last year, are moving in the correct direction as a result of active development. This work still continues.
Cash flow during the period under review was EUR 2.4 (-24.2) million. Its increase was driven by the shorter turnover of new machine stocks after the availability of parts improved. Part of our capital is still temporarily tied to incomplete products and raw material stocks which increased our working capital. The inventory turnover and level of used machines remained high. The company's solvency has remained at a very good level.
Despite the market uncertainty, Ponsse invests significantly in developing the company. Investments are made in the development of new products and technologies, the Group's information systems and digital services. Epec's factory investment is proceeding as planned, and the new factory is expected to be deployed during the second half of this year.
Consolidated net sales for the period under review amounted to EUR 201.7 (156.1) million, which is 29.2 per cent more than in the comparison period. International business operations accounted for 75.9 (74.3) per cent of net sales.
Net sales were regionally distributed as follows: Northern Europe 42.4 (42.9) per cent, Central and Southern Europe 21.3 (23.4) per cent, North and South America 33.5 (30.2) per cent and other countries 2.8 (3.6) per cent.
| 1-3/23 | 1-3/22 | |
|---|---|---|
| Net sales from continuing operations | 201,729 | 156,125 |
| Net sales from discontinued operations | 1,535 | 17,553 |
| Net sales total | 203,264 | 173,678 |
The operating profit amounted to EUR 16.6 (9.0) million. The operating profit equalled 8.2 (5.7) per cent of net sales for the period under review.
| 1-3/23 | 1-3/22 | |
|---|---|---|
| Operating profit from continuing operations | 16,619 | 8,959 |
| Operating profit from discontinued operations | 558 | 3,539 |
| Operating profit total | 17,177 | 12,498 |
Consolidated return on capital employed (ROCE) stood at 17.6 (16.3) per cent.
Staff costs for the period totalled EUR 28.1 (25.4) million. Other operating expenses stood at EUR 19.5 (16.3) million. The net total of financial income and expenses amounted to EUR 0.6 (1.1) million. Exchange rate gains and losses due to currency rate fluctuations were recognised under financial items, having a net impact of EUR 1.4 (0.5) million. During the period under review, no interest swap appreciation was recognised through profit or loss. The parent company's receivables from subsidiaries stood at EUR 81.8 (46.3) million net. Receivables from subsidiaries mainly consist of trade receivables.
Result for the period under review totalled EUR 14.0 (8.0) million. Diluted and undiluted earnings per share (EPS) came to EUR 0.50 (0.29).
At the end of the period under review, the total consolidated statements of financial position amounted to EUR 592.8 (531.6) million. Inventories stood at EUR 239.1 (203.4) million. Trade receivables totalled EUR 63.5 (51.1) million, while cash and cash equivalents stood at EUR 61.7 (86.1) million. Group shareholders' equity stood at EUR 334.3 (310.4) million and parent company shareholders' equity (FAS) at EUR 245.8 (236.7) million. The amount of interest-bearing liabilities was EUR 93.8 (55.1) million. The company has ensured its liquidity by credit facility limits and commercial paper programs. Group's loans from financial institutions are non-collaretal bank loans without financial covenants. Consolidated net liabilities totalled EUR 28.2 (-31.1) million, and the debt-equity ratio (net
gearing) was 8.4 (-10.0) per cent. The equity ratio stood at 56.8 (61.2) per cent at the end of the period under review.
Cash flow from operating activities amounted to EUR 2.4 (-24.2) million. Cash flow from investment activities came to EUR -9.6 (-10.5) million.
Order intake for the period totalled EUR 184.9 (199.7) million, while period-end order books were valued at EUR 336.9 (356.2) million.
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; Ponsse Chile SpA, Chile; Ponsse Czech s.r.o., Czech Republic and Epec Oy, Finland.
The Group includes also the OOO Ponsse wholly owned property company Ponsse Centre in Russia, EAI PON1V Holding Oy in Finland and Sunit Oy in Finland, which is Ponsse Plc's associate with a holding of 34 per cent.
In its release issued on 28 June 2022, Ponsse announced that it has signed a deed of sale regarding the sale of all shares in OOO Ponsse to the Russian company OOO Bison. While the process to complete the transaction is continuing, it has not yet been approved by the Russian authorities.
Group's R&D expenses during the period under review totalled EUR 6.7 (6.5) million, of which EUR 2.5 (2.4) million was capitalised.
Investments during the period under review totalled EUR 9.9 (10.7) million. It consisted in addition to capitalised R&D expenses of investments in buildings and ordinary maintenance and replacement investments for machinery and equipment.
The following persons were members of the Management Team: Juho Nummela, President and CEO, acting as the chairman; Petri Härkönen, Deputy CEO, Chief Financial Officer; Juha Inberg, Chief R&D and Technology officer; Tiina Kautonen, Chief Human Resources Official; Marko Mattila, Chief, Sales, Service and Marketing Officer; Tapio Mertanen, Chief Service Business Officer; Katja Paananen, Chief Responsibility Officer; Miika Soininen, Chief Digital officer and Tommi Väänänen, Chief Operations officer. The company management has regular management liability insurance.
The international PONSSE service network is led by Marko Mattila, Chief, Sales, Service and Marketing Officer, and Tapio Mertanen, Chief Service Business Officer. Managing directors of Ponsse's subsidiaries and Jussi Hentunen report to Marko Mattila, Chief, Sales, Service and Marketing Officer. Group area directors report to Jussi Hentunen, Director, Dealer Development.
25.4.2023 4/15
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), Jean Sionneau (France), Janne Tarvainen (Spain and Portugal), Gary Glendinning (United Kingdom and Ireland), Antti Räsänen (Hungary, Italy, Romania, Slovenia, Croatia, Serbia and Bulgaria), Tarmo Saks (Poland and Slovakia) and Jakub Hacura (Czech Republic).
Russia and Asia: Mikhail Menshikov (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).
The Group had an average staff of 2,050 (1,969) during the period and employed 2,054 (2,003) people at period-end.
The Board of Directors of Ponsse Plc has approved two new Ponsse Group's share-based incentive plans, which have not yet had any impact to accounting during the period under review. The aim of the new plans is to align the objectives of the shareholders and plan participants for increasing the value of the company in the long-term, to retain the participants at the company and to offer them competitive reward schemes that are based on earning and accumulating the company's shares. A stock exchange release regarding the incentive plans has been published on 3 March 2023.
The company's registered share capital consists of 28,000,000 shares. The trading volume of Ponsse Plc shares for 1 January – 31 March 2023 totalled 137,741, accounting for 0.49 per cent of the total number of shares. Share turnover amounted to EUR 3.7 million, with the period's lowest and highest share prices amounting to EUR 25.55 and EUR 28.70, respectively.
At the end of the period, shares closed at EUR 28.15, and market capitalisation totalled EUR 788.2 million.
At the end of the period under review, the company held 10,227 treasury shares.
A separate release was issued on 12 April 2023 regarding the authorizations given to the Board of Directors and other resolutions at the AGM.
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.
Each year, Ponsse publishes its responsibility report in conjunction with its annual report. The report is also available on the company's website under responsibility and investors.
Our risk management is based on the company's values and strategic and financial goals. The purpose of risk management is to support the company's strategic objectives and to secure its financial development and the continuity of its business. Ponsse's management conducts an annual risk assessment that includes the sustainability risks and opportunities impacting the company's business. Within them, aspects related to climate change, biodiversity and resource efficiency together with digitalisation and technological development are emphasised.
The purpose of risk management is to identify, assess, and monitor business-related risks that may impact the realisation of the company's strategic and financial objectives or the continuity of business. This information is used to decide what measures will be required to prevent risks and respond to current risks.
Risk management is part of the company's daily business and has been incorporated into its management system. Risk management is directed by the risk management policy approved by the Board of Directors.
A risk is any event that may prevent the company from achieving its objectives or threatens the continuity of business. 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. The company's risk management methods include the avoidance, mitigation, and transfer of risk. Risks may also be managed by controlling and minimising their impacts.
Our major short-term risks are caused by Russia's invasion of Ukraine. The invasion has shaken the global economy and increased the price of energy and raw materials. In combination with the economic effects of the covid-19 pandemic, the situation has limited the availability of components and increased manufacturing costs. In addition, delivery risks related to semiconductors still exist.
General delivery problems in our supply chain have made it more difficult to manage PONSSE forest machine production schedules, tied up more capital in the supply chain, and increased the risks related to working capital management. Sudden economic fluctuations and the continuing rise of inflation may further hamper the availability of parts, delay machine deliveries, and increase costs, weakening our profitability. The instability of the world economy and increasing financing costs may also reduce demand for forest machines.
Our operating environment has changed drastically and it is affecting Ponsse's operations. Russia's invasion of Ukraine has forced the European Union and United States to respond and impose rigid sanctions against Russia. In compliance with export sanctions and the company's policy, Ponsse suspended all sales and export operations to Russia and Belarus effective 2 March 2022. At the same time, the operations of the local Russian subsidiary OOO Ponsse were discontinued.
In its release issued on 28 June 2022, Ponsse announced that it has signed a deed of sale regarding the sale of all shares in OOO Ponsse to the Russian company OOO Bison. The reorganisation in Russia may be associated with uncertainty regarding the approval process for the sale of foreignowned companies and completing the transaction. While the process to complete the transaction is continuing, it has not yet been approved by the Russian authorities. The delay is caused by a regulation entered into force in Russia on 8 September 2022, relating to the approval of sales of companies owned by foreign parties. Ponsse aims to complete the sale as soon as possible, depending on the approval process of the Russian authorities.
In order to strengthen cybersecurity, Ponsse has clarified software update policy and user manual.
The uncertainty may also be increased by the volatility of developing countries' foreign exchange markets. The geopolitical situation 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 parent company monitors the changes in the Group's internal and external trade receivables and the associated risk of impairment. The company has long-term and extensive service contracts, which may involve operational risks.
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.
In the challenging situation, Ponsse's strong financial position is important. The company's financial position has remained strong due to good liquidity and binding credit limit facilities agreed with financial institutions. In terms of financing, Ponsse has carried out all measures necessary to ensure business continuity and financial situation is regularly evaluated.
The covid-19 pandemic has caused changes in the company's operating environment and operating practices, for example by introducing a hybrid work model. The company complies with pandemics all recommendations of the health authorities and the premise for decision-making has been the health and safety of the customers and Ponsse's employees.
The company's euro-denominated operating profit in 2023 is expected to be slightly higher than the operating profit of its continuing operations in 2022 (EUR 46.6 million).
Due to the uncertainty in the market, the company keeps prioritising its investments and the cost control will be continued. The development work to improve profitability continues. The company monitors changes in the operating environment and customers operating conditions closely.
We monitor Ponsse Latin America Ltda -subsidiary's situation in an enhanced manner and company takes measures to improve the situation.
The company has no important events after the conclusion of the period under review.
25.4.2023 8/15
| 1-3/23 | 1-3/22 | 1-12/22 | |
|---|---|---|---|
| NET SALES | 201,729 | 156,125 | 755,123 |
| Increase (+)/decrease (-) in inventories of finished | |||
| goods and work in progress | 2,291 | 22,552 | 33,633 |
| Other operating income | 946 | 690 | 3,677 |
| Raw materials and services | -132,949 | -122,325 | -525,040 |
| Expenditure on employment-related benefits | -28,148 | -25,410 | -107,873 |
| Depreciation and amortisation | -7,779 | -6,400 | -27,671 |
| Other operating expenses | -19,470 | -16,272 | -85,270 |
| OPERATING PROFIT | 16,619 | 8,959 | 46,577 |
| Share of results of associated companies | -1 | 2 | 147 |
| Financial income and expenses | 564 | 1,120 | -3,504 |
| RESULT BEFORE TAXES | 17,182 | 10,081 | 43,219 |
| Income taxes | -3,146 | -2,087 | -9,037 |
| NET RESULT FROM THE | |||
| CONTINUING OPERATIONS | 14,036 | 7,994 | 34,182 |
| Net result from the discontinued | |||
| operations | 492 | 3,313 | 2,930 |
| NET RESULT FOR THE PERIOD | 14,528 | 11,307 | 37,113 |
| OTHER ITEMS INCLUDED IN TOTAL | |||
| COMPREHENSIVE RESULT: | |||
| Translation differences related to foreign units | -1,941 | 1,837 | 4,354 |
| TOTAL COMPREHENSIVE | |||
| RESULT FOR THE PERIOD | 12,587 | 13,144 | 41,467 |
| Diluted and undiluted earnings per share from | |||
| continuing operations | 0.50 | 0.29 | 1.22 |
| Diluted and undiluted earnings per share from | |||
| discontinued operations | 0.02 | 0.12 | 0.10 |
| Diluted and undiluted earnings per share | 0.52 | 0.40 | 1.33 |
25.4.2023 9/15
| ASSETS | 31 Mar 23 31 Mar 22 31 Dec 22 | ||
|---|---|---|---|
| NON-CURRENT ASSETS | |||
| Intangible assets | 50,885 | 44,044 | 49,583 |
| Goodwill | 5,754 | 3,798 | 5,707 |
| Property, plant and equipment | 116,370 | 114,455 | 114,732 |
| Financial assets | 375 | 373 | 375 |
| Investments in associated companies Non-current receivables |
812 60 |
787 245 |
881 63 |
| Deferred tax assets | 4,466 | 3,728 | 4,422 |
| TOTAL NON-CURRENT ASSETS | 178,721 | 167,430 | 175,763 |
| CURRENT ASSETS | |||
| Inventories | 239,133 | 203,360 | 229,648 |
| Trade receivables | 63,455 | 51,144 | 62,305 |
| Income tax receivables | 1,610 | 784 | 1,013 |
| Other current receivables | 27,186 | 22,785 | 24,817 |
| Cash and cash equivalents | 61,654 | 86,105 | 73,451 |
| TOTAL CURRENT ASSETS | 393,039 | 364,178 | 391,234 |
| Assets related to assets held for sale | 21,005 | 0 | 21,650 |
| TOTAL ASSETS | 592,765 | 531,608 | 588,648 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| SHAREHOLDERS' EQUITY | |||
| Share capital | 7,000 | 7,000 | 7,000 |
| Other reserves | 3,460 | 3,460 | 3,460 |
| Translation differences | 10,760 | 10,184 | 12,701 |
| Treasury shares | -274 | -2 | -274 |
| Retained earnings | 313,402 | 289,785 | 298,926 |
| EQUITY OWNED BY PARENT COMPANY | |||
| SHAREHOLDERS | 334,349 | 310,427 | 321,813 |
| NON-CURRENT LIABILITIES | |||
| Interest-bearing liabilities | 50,144 | 50,144 | 42,484 |
| Deferred tax liabilities Other non-current liabilities |
556 80 |
859 85 |
942 81 |
| TOTAL NON-CURRENT LIABILITIES | 50,780 | 51,088 | 43,507 |
| CURRENT LIABILITIES | |||
| Interest-bearing liabilities | 43,652 | 4,910 | 53,804 |
| Provisions | 11,085 | 4,349 | 10,647 |
| Tax liabilities for the period | 2,756 | 2,491 | 4,664 |
| Trade creditors and other current liabilities | 149,197 | 158,343 | 153,476 |
| TOTAL CURRENT LIABILITIES | 206,690 | 170,093 | 222,591 |
| Liabilities related to assets held for sale | 947 | 0 | 738 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 592,765 | 531,608 | 588,648 |
25.4.2023 10/15
| 1-3/23 | 1-3/22 | 1-12/22 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net result for the period | 14,528 | 11,307 | 37,113 |
| Adjustments: | |||
| Financial income and expenses | -592 | -1,611 | 5,893 |
| Change in provisions | 294 | -200 | 6,291 |
| Share of the result of associated companies | 1 | -2 | -147 |
| Depreciation and amortisation Income taxes |
7,780 3,240 |
7,133 2,805 |
28,853 9,562 |
| Other adjustments | 1,397 | -2,361 | -3,753 |
| Cash flow before changes in working capital | 26,648 | 17,071 | 83,812 |
| Change in working capital: | |||
| Change in trade receivables and other receivables | -3,483 | -9,794 | -21,858 |
| Change in inventories | -8,615 | -33,581 | -67,087 |
| Change in trade creditors and other liabilities | -5,738 | 3,127 | -4,173 |
| Interest received | 112 | 71 | 309 |
| Interest paid | -589 | -165 | -1,627 |
| Other financial items | 113 | 644 | 600 |
| Income taxes paid | -6,046 | -1,532 | -7,921 |
| NET CASH FLOWS FROM OPERATING ACTIVITIES (A) | 2,403 | -24,160 | -17,945 |
| CASH FLOWS USED IN INVESTING ACTIVITIES | |||
| Investments in tangible and intangible assets Proceeds from sale of tangible and intangible assets |
-9,926 306 |
-10,673 203 |
-41,917 612 |
| Acquisition of subsidiaries* | 0 | 0 | -5,516 |
| NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) | -9,619 | -10,470 | -46,821 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Withdrawal/Repayment of current loans | -10,255 | -435 | 29,575 |
| Withdrawal of non-current loans | 8,000 | 0 | 11,170 |
| Withdrawal/Repayment of finance lease liabilities | -889 | -820 | -3,755 |
| Dividends paid | 0 | 0 | -16,800 |
| NET CASH FLOWS FROM FINANCING ACTIVITIES (C) | -3,143 | -1,255 | 20,191 |
| Change in cash and cash equivalents (A+B+C) | -10,360 | -35,885 | -44,575 |
| Cash and cash equivalents on 1 Jan | 76,545 | 120,900 | 120,900 |
| Impact of exchange rate changes | -631 | 1,089 | 220 |
| Cash and cash equivalents on 31Mar/31 Dec | 65,554 | 86,105 | 76,545 |
*) Acquisition of subsidiaries Ponsse Chile SpA, Chile and Ponsse Czech s.r.o., Czech Republic decreased by cash and cash equivalents at the time of acquisition
25.4.2023 11/15
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)
A = Share capital
| EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS | ||||||
|---|---|---|---|---|---|---|
| A | B | C | D | E | F | |
| SHAREHOLDERS' EQUITY 1 JAN 2023 |
7,000 | 3,460 | 12,701 | -274 | 298,926 321,813 | |
| Comprehensive result: Net result for the period Other items included in total comprehensive result: |
14,528 | 14,528 | ||||
| Translation differences Total comprehensive result for |
-1,941 | -1,941 | ||||
| the period | -1,941 | 14,528 | 12,587 | |||
| Direct entries to retained earnings |
-67 | -67 | ||||
| Transactions with shareholders Share Plan |
16 | 16 | ||||
| Transactions with shareholders in total |
16 | 16 | ||||
| Other changes SHAREHOLDERS' EQUITY 31 |
||||||
| MAR 2023 | 7,000 | 3,460 | 10,760 | -274 | 313,402 334,349 | |
| SHAREHOLDERS' EQUITY | ||||||
| 1 JAN 2022 Comprehensive result: Net result for the period Other items included in total |
7,000 | 3,460 | 8,347 | -2 | 11,307 | 278,462 297,267 11,307 |
| comprehensive result: Translation differences |
1,837 | 1,837 | ||||
| Total comprehensive result for the period |
1,837 | 11,307 | 13,144 | |||
| Direct entries to retained earnings |
||||||
| Transactions with shareholders Share Plan |
16 | 16 | ||||
| Transactions with shareholders | ||||||
| in total Other changes |
16 | 16 | ||||
| SHAREHOLDERS' EQUITY 31 MAR 2022 |
7,000 | 3,460 | 10,184 | -2 | 289,785 310,427 | |
The stock exchange release for the interim report has been prepared observing the recognition and valuation principles of IFRS, and the requirements of IAS 34 have not been complied with. The same accounting principles were observed for the closing of the books as for the annual financial statements dated 31 December 2022.
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.
| 1,116 | 807 | 1,047 | ||
|---|---|---|---|---|
| 0 | 20 | 0 | ||
| 6,006 | 7,449 | 6,300 | ||
| Total | ||||
| 317 | ||||
| -17 | ||||
| 138 | ||||
| 4,464 | 11,085 | |||
| 1. LEASING COMMITMENTS (EUR 1,000) 2. CONTINGENT LIABILITIES (EUR 1,000) Guarantee provision 4,164 317 -17 0 |
31 Mar 23 5,800 206 |
7,296 133 |
31 Mar 22 31 Dec 22 31 Mar 23 31 Mar 22 31 Dec 22 6,100 200 Other provisions 6,483 10,647 0 0 138 6,617 |
To item other provisions the Group has recognised a provision based on an agreement entered into by Ponsse Latin America Ltda, as the fulfilment of the contractual obligations is estimated to generate expenses that exceed the expected economic benefits obtained from the agreement. The provision has been measured based on the best possible estimate of the expenses arising from the fulfilment of the obligations on the closing date.
On 28 June 2022, Ponsse has signed a deed of sale regarding the sale of all shares in OOO Ponsse to the Russian company OOO Bison. While the process to complete the transaction is continuing, it has not yet been approved by the Russian authorities. Ponsse aims to complete the sale as soon as possible. Ponsse has classified the sold functions as assets for sale and reported them as discontinued operations.
25.4.2023 13/15
The reorganisation has no material impact on profit, and no significant impairment or sales profit due to the sale has been recorded in the income statement for the period under review. The cumulative RUB/EUR translation difference was EUR 6.1 million at the end of Q1/2023. The cumulative translation difference will be recognised through profit or loss once the sale has been concluded. RUB/EUR average rate of 79.87450 and closing rate of 84.22700 is used in interim reporting.
| 1-3/23 | 1-3/22 | 1-12/22 | |
|---|---|---|---|
| NET SALES | 1,535 | 17,553 | 32,561 |
| Increase (+)/decrease (-) in inventories of finished | |||
| goods and work in progress | 4 | -79 | -1,992 |
| Other operating income | 211 | 52 | 496 |
| Raw materials and services | -620 | -9,878 | -17,320 |
| Expenditure on employment-related benefits | -393 | -2,171 | -4,246 |
| Depreciation and amortisation | -1 | -733 | -1,182 |
| Other operating expenses | -179 | -1,205 | -2,472 |
| OPERATING PROFIT | 558 | 3,539 | 5,844 |
| Financial income and expenses | 28 | 491 | -2,389 |
| RESULT BEFORE TAXES | 586 | 4,031 | 3,456 |
| Income taxes | -94 | -718 | -526 |
| NET RESULT FOR THE PERIOD | 492 | 3,313 | 2,930 |
THE EFFECT OF DISCONTINUED OPERATIONS ON THE STATEMENT OF FINANCIAL POSITION (EUR 1,000)
| 31 Mar 23 | |
|---|---|
| ASSETS RELATED TO ASSETS HELD FOR | |
| SALE | |
| Intangible assets | 17 |
| Property, plant and equipment | 7,492 |
| Deferred tax assets | 508 |
| Inventories | 5,855 |
| Trade receivables | 2,811 |
| Income tax receivables | 221 |
| Other current receivables | 202 |
| Cash and cash equivalents | 3,900 |
| ASSETS RELATED TO ASSETS HELD FOR | |
| SALE TOTAL | 21,006 |
| LIABILITIES RELATED TO ASSETS HELD FOR SALE |
|
| Interest-bearing liabilities | 7 |
| Deferred tax liabilities | 17 |
| Tax liabilities for the period | 3 |
| Trade creditors and other current liabilities | 920 |
| LIABILITIES RELATED TO ASSETS HELD FOR | |
| SALE TOTAL | 947 |
| 1-3/23 | 1-3/22 | 1-12/22 | |
|---|---|---|---|
| Cash flows from operating activities | 690 | 64 | -10,712 |
| Cash flows used in investing activities | 374 | -323 | -798 |
| Cash flows from financing activities | -5 | -5 | -21 |
| Cash flows for the period under review | 1,059 | -265 | -11,532 |
| KEY FIGURES AND RATIOS | 31 Mar 23 31 Mar 22 31 Dec 22 | ||
|---|---|---|---|
| R&D expenditure, MEUR | 6.7 | 6.5 | 27.7 |
| Capital expenditure, MEUR | 9.9 | 9.8 | 41.9 |
| as % of net sales | 4.9 | 6.3 | 5.6 |
| Average number of employees | 2,050 | 1,969 | 2,016 |
| Order books, MEUR | 336.9 | 356.2 | 353.7 |
| Equity ratio, % | 56.8 | 61.2 | 55.0 |
| Diluted and undiluted earnings per share (EUR), | |||
| continuing operations | 0.50 | 0.29 | 1.22 |
| Diluted and undiluted earnings per share (EUR), | |||
| discontinued operations | 0.02 | 0.12 | 0.10 |
| Diluted and undiluted earnings per share (EUR) | 0.52 | 0.40 | 1.33 |
| Equity per share (EUR) | 11.94 | 11.09 | 11.49 |
| Order intake, MEUR | 184.9 | 199.7 | 796.2 |
Return on capital employed, % (including discontinued operations): 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 from continuing operations. The calculation has been adjusted for part-time employees.
Net gearing, % (including discontinued operations): Interest-bearing financial liabilities – cash and cash equivalents
----------------------------------------------------------------------------------- Shareholders' equity * 100
Equity ratio, % (including discontinued operations): Shareholders' equity + Non-controlling interests
------------------------------------------------------------------------ Balance sheet total - advance payments received * 100
Earnings per share, continuing operations: Net result from continuing operations for the period - Non-controlling interests -----------------------------------------------------------------------------------------------------------
Average number of shares during the accounting period, adjusted for share issues
25.4.2023 15/15
Earnings per share, discontinued operations: Net result from discontinued operations for the period - Non-controlling interests
----------------------------------------------------------------------------------------------------------- Average number of shares during the accounting period, adjusted for share issues
Earnings per share (including discontinued operations): Net result for the period - Non-controlling interests
----------------------------------------------------------------------------------------------------------- Average number of shares during the accounting period, adjusted for share issues
Equity per share (including discontinued operations): Shareholders' equity
--------------------------------------------------------------------------------------------- Number of shares on the balance sheet date, adjusted for share issues
Order intake:
Net sales from continuing operations for the period + Change in order books from continuing operations during the period
Vieremä, 25 April 2023
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-tolength 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 Vidgren 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.
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