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Teleste Oyj Earnings Release 2011
3345_rns_2012-02-01_eef2f6c3-784f-43f5-9e6c-c6bf63af6175.pdf
Earnings Release
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TELESTE
January 1 – December 31, 2011
Financial Statement
TELESTE CORPORATION FINANCIAL STATEMENT RELEASE 01.02.2012
TELESTE CORPORATION FINANCIAL STATEMENT RELEASE 1 JANUARY TO 31 DECEMBER 2011
Q4/2011
- Net sales increased 14.6% to EUR 53.4 (46.6) million
- Operating profit grew by 39.2% equaling EUR 4.1 (3.0) million
- Undiluted result per share stood at EUR 0.17 (EUR 0.12)
- Orders received increased by 5.2% and were EUR 53.5 (50.8) million
- Orders received by Video and Broadband Solution increased by 5.9% and totaled EUR 28.7 (27.1) million
- Orders received by Network Services increased by 4.4% and totaled EUR 24.8 (23.8) million
- Net cash flow from operating activities stood at EUR 4.5 (0.9) million
- The Board of Directors proposes that a dividend of EUR 0.14 (0.12) per outstanding share will be paid.
Outlook for 2012
Net sales and operating profit will grow over the 2011 level.
Comments by CEO Jukka Rinnevaara on Q4/2011
Net sales, operating profit and orders received increased in both business areas in the last quarter of 2011. In the fourth quarter we achieved the highest net sales in our history. Year-on-year improvement in the operating profit and relative profitability of Video and Broadband Solutions was particularly positive. This development is explained by the good level in deliveries of optical devices and the Luminato headend. In addition, the delivery for the Paris urban area video surveillance project succeeded as planned.
Operating profit and relative profitability of Network Services improved clearly over the comparative period. The development program for the German services operations started to have a positive impact on the operating profit in Q4, yet the desired result for the entire year was not achieved. This development program will be continued determinedly with its aim set at clear improvement in profitability.
Good news for Q4 also includes the Group's operating cash flow, which was clearly positive and showed an improvement from the period of comparison.
Group Operations in Q4/2011
Net sales grew by 14.6% amounting to EUR 53.4 (46.6) million. Operating profit increased 39.2% to EUR 4.1 (3.0) million, or 7.7% (6.4%) of net sales. Undiluted result per share was EUR 0.17 (0.12). Operating cash flow stood at EUR 4.5 (0.9) million.
Orders received improved by 5.2% standing at EUR 53.5 (50.8) million. Orders in the comparative period included the Paris urban area video surveillance project of EUR 6.9 million. The Group's order backlog totaled EUR 21.2 (17.0) million.
Group Operations in January-December 2011
- Net sales increased 9.4% to EUR 183.6 (167.8) million
- Operating profit grew by 26.2% equaling EUR 9.4 (7.4) million
- Undiluted result per share stood at EUR 0.36 (0.27)
- Year-on-year orders received increased by 12.5% amounting to EUR 188.1 (167.2) million
- Orders received by Video and Broadband Solutions increased by 7.8% and amounted to EUR 93.3 (86.5) million
- Orders received by Network Services increased by 17.5% and totaled EUR 94.8 (80.7) million
- Net cash flow from operating activities was EUR 2.1 (5.4) million
- The Board of Directors proposes that a dividend of EUR 0.14 (0.12) per outstanding share will be paid.
Video and Broadband Solutions in Q4
Net sales grew by 21.0% amounting to EUR 27.7 (22.9) million. Net sales increased, especially in France and Russia. Operating profit increased 29.5% to EUR 3.1 (2.4) million, or 11.1% (10.3%) of net sales. Orders received improved by 5.9% standing at EUR 28.7 (27.1) million. Order backlog totaled EUR 20.3 (17.0) million.
Video and Broadband Solutions in January-December 2011
Year-on-year net sales grew by 9.4% amounting to EUR 89.7 (82.0) million. This increase in net sales was mainly due to higher delivery volumes in video surveillance and integration projects as well as optical product solutions. Operating profit increased 29.6% to EUR 8.2 (6.3) million, or 9.2% (7.7%) of net sales. This improvement in operating profit over the reference year was brought about by growth in net sales and successful project deliveries. Orders received increased by 7.8% and amounted to EUR 93.3 (86.5) million with the order backlog of EUR 20.3 (17.0) million.
The R&D efforts by the business area focused on the IP-based video processing system (the Luminato product range) and the video surveillance transmission system based on H.264 standard. R&D efforts were continued on amplifier technology (the Access product range), optical transmission system for HFC network (the HDO product range) as well as video surveillance management system (VMX).
Network Services in Q4
Net sales grew by 8.3% amounting to EUR 25.7 (23.8) million. Operating profit increased 77.4% to EUR 1.1 (0.6) million, or 4.2% (2.5%) of net sales. Development program of the services operations was continued in Germany.
Orders received increased by 4.4% standing at EUR 24.8 (23.8) million. Deliveries by the business area are mainly based on framework agreements. At the year-end, order backlog stood at EUR 0.9 million, and it involves the fiber project received in June of EUR 3.7 million.
Network Services in January-December 2011
Net sales grew by 9.4% amounting to EUR 93.9 (85.8) million. Operating profit equaled EUR 1.2 (1.1) million. Operating profit remained at par with the comparative period, which was partly due to increased personnel resources for fiber projects in Germany. Moreover, expenses were increased and operating profit was reduced by limited sub-contracting resources and severe weather in the beginning of the year. Orders received increased by 17.5% and totaled EUR 94.8 (80.7) million with the order backlog standing at EUR 0.9 (0.0) million. The German development program fell short of the set goal.
Investments and Financing in January-December 2011
Net investments by the Group amounted to EUR 5.2 (3.8) million, or 2.9% (2.2%) of net sales. The largest product development investments involved Luminato video processing system (EUR 1.9 million) and video surveillance management system (EUR 0.6 million). Investment for the Littoinen extension project totaled EUR 1.1 million. Investments in tools and measuring equipment amounted to EUR 1.3 million while those in information systems equaled EUR 0.5 million. Investments of EUR 0.3 (0.1) million were carried out under financial lease arrangements. In Finland, pieces of real estate were sold for EUR 0.7 million.
The Group's liquidity was good throughout the financial year. Operating cash flow stood at EUR 2.1 (5.4) million. Accounts receivable did not result in substantial credit losses. The need for working capital bound by growth was financed by credit facilities of EUR 6 million in interest-bearing loan. At the end of the period, the amount of unused binding stand-by credits amounted to EUR 7.5 (13.5) million. The current binding stand-by credit facilities of EUR 40.0 million are valid till November 2013. The Group's equity ratio equaled 41.6% (43.6%) while net gearing was 32.2% (25.5%). On 31 December 2011, the Group's interest-bearing debt stood at EUR 33.2 (28.0) million.
R&D expenditure for the financial period totaled EUR 11.6 (10.3) million making 6.3% (6.1%) of net sales. Teleste's product development expenses focused on Video and Broadband Solutions, the R&D expenditure of which amounted to 12.9% (12.6%) of net sales.
Personnel and Organization in January-December 2011
In 2011, the Group employed an average of 1,297 people (1,215/2010, 1,103/2009). At the year-end, the figure totaled 1,319 (1,231/2010, 1,260/2009) of which 72% (70%/2010, 68%/2009) were stationed overseas. At the end of the accounting period, rented workforce involved 26 people. This figure is not included in the number of personnel. Employees stationed outside Europe accounted for less than 5% of the Group's personnel.
Expenditure on employee benefits amounted to EUR 54.6 (50.8/2010, 44.6/2009) million. The year-on-year growth in employee benefits was brought about by re-establishment of full employment in the Finnish operations, and due to increase in staffing levels of Network Services in Germany and the UK.
Key Risks faced by the Business Areas
Founded in 1954, Teleste is a technology and service provider consisting of two business areas: Video and Broadband Solutions and Network Services. The main market is Europe and the main customers are the European cable operators as well as specified organizations in the public sector.
Concerning Video and Broadband Solutions, integrated deliveries of solutions create favorable conditions for growth, even if the involved resource allocation and technical implementation pose a challenge involving reasonable risks. 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. Also the exchange rate development of the Chinese renminbi to euro affects our material costs. The company hedges against short-term currency risk by means of forward contracts. The tight financial market in Europe may slow down the customers' investment plans. Natural phenomena, such as floods and earthquakes, may reduce the availability of components. The right technology choices and their timing are crucial to success.
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 services by any one of them is reflected in the actual deliveries. Improvements in customer satisfaction and productivity require efficient control of service process management as well as innovative solutions in processes, products and logistics to ensure the quality of services and cost effectiveness. Smooth operation of cable networks necessitates efficient technical management of the networks and functional solutions for devices in accordance with contractual obligations. This, in turn, requires continuous and determined development of skill levels in Teleste's own personnel as well as those of our subcontractors. Besides, availability of subcontractor network capacity may restrict our ability to deliver.
The business areas will have to keep an eye on market movements, such as consolidations among the customers and competitors. Severe weather conditions have an impact on the business areas' ability to deliver products and services.
The Board of Directors annually reviews any essential risks related to the company operation and the management thereof. Risk management is an integral part of the strategic and operational activities of the business areas. Risks and their probability are reported to the Board in conjunction with regular monthly reports.
The Company has covered the most significant operational hazard risks of the Business areas by insurance. Insurance does not cover credit loss risks. In the period under review, no such risks materialized, nor was there any pending litigation or legal proceedings, which would have had any relevance to the Group's operations.
Group Structure
Teleste Kaurakatu Oy was sold in October 2011. Cableway Nord GmbH was merged with Cableway Mitte GmbH, whose name was changed to Cableway Nord GmbH. Cableway Nord Mitte GmbH&KG and Cableway North West GmbH&KG were merged into Teleste Services GmbH.
The parent company has branch offices in Australia, the Netherlands, China and Denmark, with subsidiaries in 12 countries outside Finland.
Due to financial arrangements, Teleste Management Oy and Teleste Management II Oy, owned by the members of the Management Group, have been merged with the Teleste Corporation figures.
Decisions by the Annual General Meeting
The Annual General Meeting (AGM) of Teleste Corporation held on 8 April 2011 confirmed the financial statements for 2010 and discharged the Board of Directors and the CEO from liability for the financial period. The AGM confirmed the dividend of EUR 0.12 per share as proposed by the Board. The dividend was paid out on 20 April 2011.
Marjo Miettinen, Pertti Ervi, Tero Laaksonen, Pertti Raatikainen, Kai Telanne and Peter Walldén were elected members of the Board by the Annual General Meeting. Marjo Miettinen was elected chairperson in the organizing meeting of the Board held immediately after the AGM.
Authorized Public Accountants KPMG Oy Ab continue as the auditor until the next AGM. Esa Kailiala, accountant authorized by the Central Chamber of Commerce of Finland, was chosen auditor-in-charge.
The AGM authorized 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 authorized the Company Board to issue 5,000,000 new shares. Pursuant to the special rights provided by the Company, the maximum number of significant shares is 2,500,000; these special rights are included in the authorization to issue 5,000,000 new shares.
Shares and Changes in Share Capital
On 31 December 2011, EM Group Oy was the largest single shareholder with the holding of 21.08%.
In the period under review, the lowest Company share price was EUR 2.50 (3.64) while the highest was EUR 4.82 (5.33). Closing price on 31 December 2011 stood at EUR 3.00 (4.41). According to Euroclear Finland Ltd, the number of shareholders at the end of the period under review was 5,054 (5,184). Foreign ownership accounted for 7.76% (8.38%). From 1 January to 31 December 2011, trading with Teleste share at NASDAQ OMX Helsinki amounted to EUR 6.2 (14.2) million. In the period under review, 1.7 (3.2) million Teleste shares were traded on the stock exchange.
In December 2011, the Board decided on a directed share issue of 542,000 shares to Teleste Management II Oy, founded by the Management Group members of Teleste Corporation. This directed share issue was authorized by the AGM on 8 April 2011.
On 31 December 2011, the Group held a total of 1,302,985 own shares (760,985), of which the parent company Teleste Corporation had none (0) while other Group companies or controlled companies had 1,302,985 shares. At the end of the period, the Group's holding of the total amount of shares amounted to 6.96% (4.18%). Based on the rights of options, the Company's holding of shares may increase by 840,000 shares equaling to 4.29% of all shares and votes.
On 31 December 2011, Teleste's registered share capital stood at EUR 6,966,932.80 divided in 18,728,590 shares.
Teleste Corporation complies with the Corporate Governance Code, effective as of 1 October 2010 and issued by the Securities Market Association for the Finnish listed companies. Since 1 March 2000, Teleste complies with the insider guidelines issued by the NASDAQ OMX Helsinki Oy in their valid form at any given time.
Outlook for 2012
In our estimation, deliveries of equipment and solutions in 2012 for the operator clientele by Video and Broadband Solutions will reach at least the 2011 level. European telecom operators have launched TV distribution infrastructure investments, and in our view, Teleste's optical products and IP network solutions are competitive in this new emerging market.
In our estimate, demand on the annual level for services by Network Services continues relatively stable. We believe that in the main market area of Germany the operating profit will improve from the 2011 level due to more efficient resource management.
Net sales and operating profit will grow over the 2011 level.
The Board's proposal for the distribution of dividends
Parent company Teleste Corporation's distributable equity on the balance sheet date is EUR 36,775,101.54.
The Board of Directors proposes to the Annual General Meeting to be held on 3 April 2012 that a dividend be paid for 2011 of EUR 0.14 (EUR 0.12) per share for the outstanding shares.
31 January 2012
Teleste Corporation
The Board of Directors
Jukka Rinnevaara
CEO
Teleste's Annual Report for 2011, which includes the audited financial statements, will be published no later than 23 March 2012. The Company will issue a statement of its corporate governance as a separate report, which will be published together with the Annual Report, and will be simultaneously available on the Company's web site.
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 Group has adopted revised IFRS 3 Business Combinations from 1.1.2010. The data stated in this report is audited.
STATEMENT OF COMPREHENSIVE INCOME, 1000 euros
| 10-12/2011 | 10-12/2010 | Change % | |
|---|---|---|---|
| Net sales | 53,433 | 46,643 | 14.6 % |
| Other operating income | 729 | 489 | 48.9 % |
| Raw material and consumables used | -25,806 | -22,074 | 16.9 % |
| Employee benefits expense | -15,480 | -14,140 | 9.5 % |
| Depreciations | -1,426 | -1,353 | 5.4 % |
| Other operating expenses | -7,318 | -6,598 | 10.9 % |
| Operating profit | 4,132 | 2,968 | 39.2 % |
| Financial income | 60 | 40 | 50.0 % |
| Financial expenses | -202 | -233 | -13.3 % |
| Profit before taxes | 3,990 | 2,775 | 43.8 % |
| Taxes | -1,114 | -671 | 66.0 % |
| Profit for the period | 2,876 | 2,104 | 36.7 % |
| Attributable to: | |||
| Equity holders of the parent | 2,876 | 2,104 | 36.7 % |
| Earnings per share for profit of the year attributable to the equity holders of the parent | |||
| Basic (expressed in euro per share) | 0.17 | 0.12 | 33.0 % |
| Diluted (expressed in euro per share) | 0.17 | 0.12 | 33.0 % |
| Total comprehensive income for the period, 1000 euros | |||
| Net profit | 2,876 | 2,104 | 36.7 % |
| Translation differences | 435 | 402 | 8.2 % |
| Fair value reserve | -76 | 10 | n/a |
| Total comprehensive income for the period | 3,235 | 2,516 | 28.6 % |
| Attributable to: | |||
| Equity holders of the parent | 3,235 | 2,516 | 28.6 % |
| STATEMENT OF COMPREHENSIVE INCOME, 1000 euros | 1-12/2011 | 1-12/2010 | Change % |
| Net sales | 183,616 | 167,836 | 9.4 % |
| Other operating income | 2,112 | 1,460 | 44.7 % |
| Raw material and consumables used | -90,990 | -82,054 | 10.9 % |
| Employee benefits expense | -54,560 | -50,824 | 7.4 % |
| Depreciation | -5,372 | -5,896 | -8.9 % |
| Other operating expenses | -25,426 | -23,090 | 10.1 % |
| Operating profit | 9,380 | 7,432 | 26.2 % |
| Financial income | 189 | 84 | 125.0 % |
|---|---|---|---|
| Financial expenses | -730 | -773 | -5.6 % |
| Profit before taxes | 8,839 | 6,743 | 31.1 % |
| Taxes | -2,540 | -1,959 | 29.7 % |
| Profit for the period | 6,299 | 4,784 | 31.7 % |
| Attributable to: | |||
| Equity holders of the parent | 6,299 | 4,784 | 31.7 % |
| Earnings per share for profit of the year attributable to the equity holders of the parent | |||
| Basic (expressed in euro per share) | 0.36 | 0.27 | 31.7 % |
| Diluted (expressed in euro per share) | 0.36 | 0.27 | 31.7 % |
| Total comprehensive income for the period (tEUR) | |||
| Net profit | 6,299 | 4,784 | 31.7 % |
| Translation differences | 149 | 277 | -46,2 % |
| Fair value reserve | 20 | -70 | n/a |
| Total comprehensive income for the period | 6,468 | 4,991 | 29.6 % |
| Attributable to: | |||
| Equity holders of the parent | 6,468 | 4,991 | 29.6 % |
STATEMENT OF FINANCIAL POSITION, 1000 euros
| Assets 1000 euros | |||
|---|---|---|---|
| 31.12.2011 | 31.12.2010 | Change % | |
| Non-current assets | |||
| Property, plant and equipment | 9,364 | 8,836 | 6.0 % |
| Goodwill | 31,277 | 30,959 | 1.0 % |
| Other intangible assets | 6,338 | 6,709 | -5.5 % |
| Available-for-sale investments | 713 | 713 | 0.0 % |
| Deferred tax asset | 1,714 | n/a | |
| Total | 49,406 | 47,217 | 4.6 % |
| Current assets | |||
| Inventories | 24,075 | 21,000 | 14.6 % |
| Trade and other receivables | 44,326 | 32,819 | 35.1 % |
| Cash | 15,404 | 15,203 | 1.3 % |
| Total | 83,805 | 69,022 | 21.4 % |
| Total assets | 133,211 | 116,239 | 14.6 % |
| Equity and liabilities | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 6,967 | 6,967 | 0.0 % |
| Share premium | 1,504 | 1,504 | 0.0 % |
| Translation differences | 54 | -95 | -156.8 % |
| Invested non restricted equity | 2,737 | 2,737 | 0.0 % |
| Other reserves | -166 | -186 | -10.8 % |
| Retained profits | 43,559 | 39,183 | 11.2 % |
| Non-controlling interest | 623 | 292 | 113.4 % |
|---|---|---|---|
| Total | 55,278 | 50,402 | 9.7 % |
| Non-current liabilities | |||
| Interest-bearing liabilities | 11,940 | 11,847 | 0.8 % |
| Other liabilities | 4,140 | 3,865 | 7.1 % |
| Deferred tax liabilities | 1,946 | 511 | 280.8 % |
| Provisions | 605 | 657 | -7.8 % |
| Total | 18,631 | 16,880 | 10.4 % |
| Current liabilities | |||
| Trade and other liabilities | 35,223 | 30,161 | 16.8 % |
| Current tax payable | 1,595 | 1,240 | 28.6 % |
| Provisions | 1,211 | 1,313 | -7.8 % |
| Interest-bearing liabilities | 21,273 | 16,243 | 31.0 % |
| Total | 59,302 | 48,957 | 21.1 % |
| Total liabilities | 77,933 | 65,837 | 18.4 % |
| Equity and liabilities total | 133,211 | 116,239 | 14.6 % |
CONSOLIDATED CASH FLOW STATEMENT, 1000 EUROS
| 1.1-31.12. 2011 | 1.1-31.12. 2010 | Change % | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit for the period | 6,299 | 4,784 | 31.7 % |
| Adjustments for: | |||
| Non-cash transactions | 5,552 | 6,143 | -9.6 % |
| Interest and other financial expenses | 730 | 773 | -5.6 % |
| Interest income and other financial income | -138 | -72 | 91.7 % |
| Dividends | -51 | -12 | 325.0 % |
| Taxes | 2,540 | 1,959 | 29.7 % |
| Change in working capital | |||
| Increase in trade and other receivables | -11,407 | -4,650 | 145.3 % |
| Increase in inventories | -3,075 | 1,265 | n/a |
| Increase in trade and other payables | 4,809 | -3,942 | n/a |
| Decrease in provisions | -154 | 431 | n/a |
| Paid interests and other financial expenses | -760 | -565 | 34.5 % |
| Received interests and dividends | 189 | 84 | 125.0 % |
| Paid taxes | -2,471 | -786 | 214.4 % |
| Cash flow from operating activities | 2,063 | 5,412 | -61.9 % |
| Cash flow from investing activities | |||
| Acquisition of subsidiary, net of cash acquired | 0 | -3,643 | -100.0 % |
| Purchases of property, plant and equipment (PPE) | -3,346 | -1,022 | 227.4 % |
| Proceeds from sales of PPE | 714 | 306 | 133.3 % |
| Purchases of intangible assets | -2,822 | -1,499 | 88.3 % |
| Proceeds from sales of shares | 93 | 0 | n/a |
| Net cash used in investing activities | -5,361 | -5,858 | -8.5 % |
| Cash flow from financing activities | |||
| Proceeds from borrowings | 6,000 | 5,520 | 8.7 % |
| Payments of borrowings | -222 | -966 | -77.0 % |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY,1000 EUROS
| Attributable to equity holders of the parent Equity | Share capital | Share premium | Translation differences | Retained earnings | Invested non-restricted equity | Other reserves | Total | Share of non controlling interest | Total equity |
|---|---|---|---|---|---|---|---|---|---|
| 31.12.2010 | 6,967 | 1,504 | -95 | 39,183 | 2,737 | -186 | 50,110 | 292 | 50,402 |
| Total comprehensive income for the period | 0 | 0 | 149 | 6,299 | 0 | 20 | 6,468 | 0 | 6,468 |
| Share issue | 0 | 319 | 319 | ||||||
| Dividends | 0 | 0 | 0 | -2,137 | 0 | 0 | -2,137 | 46 | -2,091 |
| Changes in subsidiary interest | 34 | 34 | -34 | 0 | |||||
| Equity-settled share-based payments | 0 | 0 | 0 | 180 | 0 | 0 | 180 | 0 | 180 |
| Equity 31.12.2011 | 6,967 | 1,504 | 54 | 43,559 | 2,737 | -166 | 54,631 | 623 | 55,278 |
| BUSINESS SEGMENTS 2011, 1000 EUROS | Video and Broadband Solutions | Network Services | Group | ||||||
| --- | --- | --- | --- | ||||||
| External sales | |||||||||
| Services | 4,305 | 93,900 | 98,205 | ||||||
| Goods | 85,411 | 0 | 85,411 | ||||||
| External sales total | 89,716 | 93,900 | 183,616 | ||||||
| Operating profit of segments | 8,220 | 1,160 | 9,380 | ||||||
| Financial items | -541 | ||||||||
| Shares of associates | 0 | ||||||||
| Profit for the period | 8,839 |
| Business segments 2010, 1000 euros | Video and Broadband Solutions | Network Services | Group |
|---|---|---|---|
| External sales | |||
| Services | 3,379 | 85,829 | 89,208 |
| Goods | 78,628 | 0 | 78,628 |
| External sales total | 82,007 | 85,829 | 167,836 |
| Operating profit of the segments | 6,345 | 1,087 | 7,432 |
| Financial items | -689 | ||
| Share of associates | 0 | ||
| Profit before taxes | 6,743 | ||
| GEOGRAPHICAL DIVISION 2011, 1000 EUROS | Nordic countries | Other Europe | Finland |
| --- | --- | --- | --- |
| Sales by origin | 11,059 | 154,979 | 10,830 |
| Assets | 9,280 | 83,634 | 38,576 |
| Capital expenditure for the period | 15 | 1,576 | 3,631 |
| Geographical division 2010, 1000 euros | Nordic countries | Other Europe | Finland |
| --- | --- | --- | --- |
| Sales by origin | 17,932 | 129,512 | 11,272 |
| Assets | 7,922 | 77,272 | 29,877 |
| Capital expenditure for the period | 25 | 1,511 | 2,190 |
| Information per quarter, 1000 euros | 10-12/11 | 7-9/11 | 4-6/11 |
| --- | --- | --- | --- |
| Video and Broadband Solutions | |||
| Order intake | 28,674 | 22,300 | 24,827 |
| Net sales | 27,698 | 23,947 | 19,517 |
| EBIT | 3,062 | 3,420 | 1,332 |
| EBIT % | 11.1 % | 14.3 % | 6.8 % |
| Network Services | |||
| Order intake | 24,797 | 21,503 | 25,744 |
| Net sales | 25,735 | 23,013 | 22,396 |
| EBIT | 1,070 | 376 | -422 |
| EBIT % | 4.2 % | 1.6 % | -1.9 % |
| Total | |||
| Order intake | 53,471 | 43,803 | 50,571 |
| Net sales | 53,433 | 46,960 | 41,913 |
| EBIT | 4,132 | 3,796 | 910 |
| EBIT % | 7.7 % | 8.1 % | 2.2 % |
| Commitments and contingencies, 1000 euros | 2011 | 2010 | Change % |
|---|---|---|---|
| Other securities | 0 | 640 | -100.0 % |
| Rental liabilities | 3,026 | 2,254 | 34.3 % |
| Lease liabilities | 5,098 | 4,227 | 20.6 % |
| Value of underlying forward contracts | 7,434 | 8,283 | -10.2 % |
| Market value of forward contracts | -99 | -293 | -66.2 % |
| Interest rate swap | 11,500 | 11,500 | 0,0 % |
| Market value of interest swap | -167 | -256 | -34.8 % |
| The number of employees broken down by following categories 31.12. | 2011 | 2010 | Change % |
| --- | --- | --- | --- |
| Research and development | 122 | 119 | 2.5 % |
| Production and material management | 1,020 | 944 | 8.1 % |
| Sales and marketing | 125 | 123 | 1.6 % |
| Finance,quality and IT | 52 | 45 | 15.6 % |
| Total | 1,319 | 1,231 | 7.1 % |
| KEY FIGURES | IFRS 2011 | IFRS 2010 | IFRS 2009 |
| --- | --- | --- | --- |
| Profit and loss account, balance sheet | |||
| Net sales, Meur | 183.6 | 167.8 | 141.7 |
| Change % | 8.6 % | 18.5 % | 30.3 % |
| Sales outside Finland, % | 94.1 % | 93.3 % | 91.8 % |
| Operating profit, Meur | 9.4 | 7.4 | 2.5 |
| % of net sales | 5.1 % | 4.4 % | 1.8 % |
| Profit after financial items, Meur | 8.8 | 6.7 | 1.4 |
| % of net sales | 4.8 % | 4.0 % | 1.0 % |
| Profit before taxes, Meur | 8.8 | 6.7 | 1.4 |
| % of net sales | 4.8 % | 4.0 % | 1.0 % |
| Profit for the financial period, Meur | 6.3 | 4.8 | 0.4 |
| % of net sales | 3.4 % | 2.9 % | 0.3 % |
| R&D expenditure, Meur | 11.6 | 10.3 | 10.8 |
| % of net sales | 6.3 % | 6.1 % | 7.6 % |
| Gross investments, Meur | 5.2 | 3.8 | 25.2 |
| % of net sales | 2.9 % | 2.2 % | 17.8 % |
| Interest bearing liabilities, Meur | 33.2 | 28.1 | 22.8 |
| Shareholder's equity, Meur | 55.3 | 50.4 | 46.7 |
| Total assets, Meur | 133.2 | 116.2 | 110.1 |
| Personnel and orders | |||
| Average personnel | 1,297 | 1,215 | 1,103 |
| Order backlog at year end, Meur | 21.2 | 17.0 | 33.1 |
| Orders received, Meur | 188.1 | 167.2 | 151.0 |
| Key metrics | |||
| Return on equity, % | 11.9 % | 9.9 % | 0.9 % |
| Return on capital employed, % | 11.5 % | 10.2 % | 3.3 % |
| Equity ratio, % | 41.6 % | 43.6 % | 43.6 % |
| Net gearing, % | 32.2 % | 25.5 % | 22.0 % |
| Earnings per share, euro | 0.36 | 0.27 | 0.02 | 0.32 | 0.55 |
|---|---|---|---|---|---|
| Earnings per share fully diluted, euro | 0.36 | 0.27 | 0.02 | 0.32 | 0.52 |
| Shareholders equity per share, euro | 3.17 | 2.90 | 2.68 | 2.74 | 2.69 |
| Teleste share | |||||
| Highest price, euro | 4.82 | 5.33 | 4.30 | 7.49 | 12.34 |
| Lowest price, euro | 2.50 | 3.64 | 2.25 | 1.90 | 6.47 |
| Closing price, euro | 3.00 | 4.41 | 3.72 | 2.24 | 6.71 |
| Average price, euro | 3.64 | 4.49 | 3.62 | 4.52 | 10.10 |
| Price per earnings | 8.3 | 16.3 | 154.1 | 7.0 | 12.3 |
| Market capitalization, Meur | 56.2 | 80.2 | 66.2 | 39.9 | 118.6 |
| Stock turnover, Meur | 6.2 | 14.2 | 28.5 | 51.1 | 72.4 |
| Turnover, number in millions | 1.7 | 3.2 | 7.8 | 11.5 | 7.2 |
| Turnover, % of share capital | 9.1 % | 17.4 % | 44.0 % | 64.6 % | 40.5 % |
| Average number of shares | 18,189,560 | 18,093,689 | 17,805,590 | 17,708,782 | 17,494,435 |
| Number of shares at the year-end | 18,728,590 | 18,186,590 | 17,805,590 | 17,805,590 | 17,671,305 |
| Average number of shares, diluted w/o own shares | 17,425,605 | 17,693,605 | 17,229,154 | 17,372,555 | 17,971,752 |
| Number of shares at the year-end, diluted w/o own shares | 17,425,605 | 17,693,605 | 17,425,605 | 17,039,399 | 17,972,785 |
| Paid dividend, Meur | *2,4 | 2.1 | 1.4 | 2.0 | 4.2 |
| Dividend per share, euro | *0,14 | 0.12 | 0,08 | 0,12 | 0.24 |
| Dividend per net result, % | 38.9 % | 43.7 % | 331.3 % | 37.4 % | 43.9 % |
| Effective dividend yield, % | 4.7 % | 2.7 % | 2.2 % | 5.4 % | 3.6 % |
| * The Board's proposal to the AGM | |||||
| Treasury shares | Number of shares | % of shares | % of votes | ||
| --- | --- | --- | --- | ||
| Teleste companies own shares 31.12.2011 | 1,302,985 | 6.96% | 6.96% |
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 31.12.2011 | Shares | % |
|---|---|---|
| EM Group Oy | 3,948,513 | 21.08 |
| Mandatum Life | 1,679,200 | 8.97 |
| Ilmarinen Mutual Pension Insurance Compan | 936,776 | 5.00 |
| Kaleva Mutual Pension Insurance Company | 824,641 | 4.40 |
| Op-Suomi Small Cap | 550,000 | 2.94 |
| Teleste Management II Oy | 542,000 | 2.89 |
| Varma Mutual Pension Insurance Company | 521,150 | 2.78 |
| State Pension Fund | 500,000 | 2.67 |
| Aktia Capital Mutual Fund | 450,000 | 2.40 |
| Skagen Vekst Verdipapierfond | 429,000 | 2.29 |
| SECTOR DISPERSION 31.12.2011 | Shareholders | % |
| --- | --- | --- |
| Corporations | 289 | 5.71 |
| Financial and insurance corporations | 11 | 0.21 |
| Public institutions | 9 | 0.17 |
| Non-profit institutions | 35 | 0.69 |
| Households | 4,673 | 92.46 |
| Foreign countries and nominee registered | 37 | 0.73 |
| Total | 5,054 | 100.00 |
| HOLDING DISPERSION 31.12.2011 | Shareholders | % |
| --- | --- | --- |
| 0 - 100 | 1,124 | 22.23 |
| 101 - 1,000 | 2,946 | 58.29 |
| 1,001 - 10,000 | 887 | 17.55 |
| 10,001 - 100,000 | 77 | 1.52 |
| 100,001 - 1,000,000 | 18 | 0.35 |
| 1,000,001 - | 2 | 0.03 |
| Total | 5,054 | 100.00 |
Final calculation of recognised fair values on acquisition of Satlan
1 000 EUR
Fair values used in consolidation
Trade marks (inc. in intangible assets) 154
Customer relationship (inc. in intangible assets) 843
Inventories 1,314
Trade receivables 1,305
Book values used in consolidation
Tangible assets 51
Other receivables 219
Liquid funds 333
Total assets 4,219
Book values used in consolidation
Deferred tax liabilities 259
Other liabilities 2,363
Total liabilities 2,622
Net identifiable assets and liabilities 1,597
Total consideration 6,330
Goodwill on acquisition 4,733
Consideration paid in cash -2,780
Cash and cash equivalents in acquired subsidiary 333
Total net cash outflow on the acquisition -2,447
TELESTE
Teleste Corporation
P.O.Box 323, FI 20101 Turku, Finland
Seppälatu 1, FI 20660 Littomen, Finland
Phone +358 2 2695 611 (switchboard)
Inventor:[email protected]
Business ID:1103367-8
www.teleste.com