TELESTE CORPORATION INTERIM REPORT 1 JAN TO 31 MARCH 2013
TELESTE CORPORATION INTERIM REPORT 25 APRIL 2013 AT 08:30
TELESTE CORPORATION INTERIM REPORT 1 JANUARY TO 31 MARCH 2013
YEAR-ON-YEAR DEMAND ON LOWER LEVEL AS EXPECTED, OUTLOOK UNCHANGED
Q1 of 2013
- Net sales amounted to EUR 45.8 (51.1) million, a decrease of 10.5%
- Operating profit stood at EUR 2.6 (2.9) million, a decrease of 11.4%
- Undiluted result per share was EUR 0.10 (0.12) per share, a decrease of 14.6%
- Orders received totaled EUR 43.4 (49.1) million, a decrease of 11.7%
- Operating cash flow was EUR 0.2 (5.0) million
Outlook for 2013
We expect net sales and operating profit for 2013 to reach the 2012 level. In our assessment, net sales and operating profit for the first half of 2013 will remain below the comparative period.
Comments on Q1 of 2013 by CEO Jukka Rinnevaara:
"As estimated in our 2012 financial statement release, net sales and orders received for the first quarter fell short of the comparative period. The productivity improvement and adaptation measures launched in 2012 ensured a reasonable operating profit.
In our estimate, the falling below the comparative period of Video and Broadband Solutions' net sales was brought about by variation in timing of the investments required for the growth in the operators' network capacity. Deliveries and orders received of the reference period were affected by the major sporting events in the summer of 2012. Video surveillance deliveries were on good level. Deliveries of video surveillance solutions for the Chicago Transit Authority (CTA) proceeded according to plan.
The decrease in Network Services' net sales was due to a drop in demand for the German Internet connectivity and the cold winter, which prevented the installation of fiber-optic projects in particular.
After the first quarter, on 8 April 2013, we acquired the share capital of the UK based Asheridge companies. This acquisition complements the offering of passive products and house network equipment by Video and Broadband Solutions, strengthens our market position as well as provides Teleste with specific technology required to eliminate disturbances in cable networks. The acquisition does not yet have a significant impact on our 2013 net sales and profitability.”
Group Operations in January to March 2013
| Key figures (EUR million) | ||||
| 1-3/2013 | 1-3/2012 | Change % | 1-12/2012 | |
| Orders received | 43.4 | 49.1 | -11.7% | 189.7 |
| Net sales | 45.8 | 51.1 | -10.5% | 193.9 |
| Operating profit | 2.6 | 2.9 | -11.4% | 10.9 |
| Operating Profit, % | 5.7% | 5.7% | 5.6% | |
| Net profit | 1.8 | 2.0 | -11.2% | 6.7 |
| Other important key figures | ||||
| Earnings per share, EUR | 0.10 | 0.12 | -14.6% | 0.38 |
| Cash flow from operations | 0.2 | 5.0 | -95.9% | 15.3 |
| Net gearing, % | 17.8% | 23.8% | -25.2% | 13.7% |
| Equity ratio, % | 52.2% | 43.5% | 20.2% | 50.5% |
| Personnel at period-end | 1,342 | 1,321 | 1.6% | 1,325 |
In the first quarter, orders received by the Group totaled EUR 43.4 (49.1) million, which is 11.7% below the reference period. Order backlog totaled EUR 14.6 (19.2) million.
Net sales amounted to EUR 45.8 (51.1) million, which is 10.5% below the comparable period. Compared to the same period in the previous year, operating profit decreased by 11.4% standing at EUR 2.6 (2.9) million, which is 5.7% (5.7%) of the net sales. Wages and salaries stood at EUR 14.4 (EUR 15.1) million. Undiluted result per share was EUR 0.10 (0.12). Operating cash flow stood at EUR 0.2 (5.0) million. This reduction in cash flow was due to a decrease in non-interest bearing liabilities and weakened cycle time of accounts receivable.
Video and Broadband Solutions in January to March 2013
Economic Development of Video and Broadband Solutions
| 1-3/2013 | 1-3/2012 | Change % | 1-12/2012 | |
| Orders received | 21,419 | 26,390 | -18.8% | 97,730 |
| Net sales | 23,813 | 27,500 | -13.4% | 101,230 |
| Operating profit | 2,436 | 2,524 | -3.5% | 8,497 |
| Operating Profit, % | 10.2% | 9.2% | 8.4% |
Orders received amounted to EUR 21.4 (26.4) million, which is 18.8% below the comparable period. Order backlog totaled EUR 14.6 (19.2) million. Net sales decreased by 13.4% to EUR 23.8 (27.5) million. This decrease in net sales and orders received was due to variation in the timing of network investments. Operating profit stood at EUR 2.4 (2.5) million making 10.2% (9.2%) of the net sales. This relative improvement in the operating profit was brought about by improvement in materials margin and cost adjustments.
R&D expenses were 2.4 (2.8) million, i.e. 10.1% (10.2%) of the business area's net sales. Activated R&D expenses amounted to EUR 0.3 (0.3) million. Most of the projects involved further development of product families in production and customer-specific projects. Depreciation on R&D amounted to EUR 0.7 (0.5) million.
Network Services in January to March 2013
Economic Development of Network Services
| 1-3/2013 | 1-3/2012 | Change % | 1-12/2012 | |
| Orders received | 21,946 | 22,731 | -3.5% | 91,931 |
| Net sales | 21,946 | 23,631 | -7.1% | 92,645 |
| Operating profit | 166 | 413 | -59.9% | 2,439 |
| Operating Profit, % | 0.8% | 1.7% | 2.6% |
Orders received for the first quarter totaled EUR 21.9 (22.7) million, which is 3.5% below the comparable period. Net sales decreased by 7.1% to EUR 21.9 (23.6) million. This fall in net sales was caused by a drop in demand for the German Internet connectivity and the cold winter, which prevented the installation of fiber-optic projects. Operating profit stood at EUR 0.2 (0.4) million making 0.8% (1.7%) of the net sales. This year-on-year decline in the operating profit was due to a decrease in net sales.
Personnel and Organization in January to March 2013
In the period under review, the Group had an annual average of 1,335 people (1,316/2012, 1,252/2011), of whom 536 (560) were employed by Video and Broadband Solutions, and 799 (756) by Network Services. At the end of the review period, the Group had 1,342 (1,321/2012, 1,266/2011) people, of whom 73% (72%/2012, 70%/2011) were working outside Finland. Employees stationed outside Europe accounted for less than 5% of the Group’s personnel.
In the last quarter of 2012 Teleste Corporation initiated codetermination negotiations. In December 2012, the number of employees in Finland was adjusted by a rotating temporary layoff. This rotating temporary layoff agreed in the codetermination procedures can be extended until March 2014.
Wages and salaries decreased by 4.3% over the previous year and amounted to EUR 14.4 (15.1/2012, 12.5/2011) million. This decrease was due to the adjustment measures in the Video and Broadband Solutions business area. Wages and salaries for Network Services remained on the level of comparative period.
Investments and Product Development in January to March 2013
Investments by the Group for the period under review totaled EUR 0.6 (1.4) million accounting for 1.3% (2.7%) of the net sales. Investments in product development equaled EUR 0.3 (0.3) million. Investments of EUR 0.1 (0.6) million were made under financial lease arrangements.
Financing and Capital Structure in January to March 2013
Operating cash flow stood at EUR 0.2 (5.0) million. This decrease in cash flow from operations was due to reduction in non-interest bearing short-term debt, as well as slowing down in the cycle time of accounts receivable. At the end of the period under review, the amount of unused binding stand-by credits amounted to EUR 19.0 (10.5) million. The credit limits are valid until August 2015.
The Group’s equity ratio equaled 52.2% (43.5%) and net gearing 17.8% (23.8%). Interest bearing debt on 31 March 2013 stood at EUR 22.0 (30.7) million.
Key Risks Faced by the Business Areas
Founded in 1954, Teleste is a technology and services company consisting of two business areas: Video and Broadband Solutions and Network Services. With Europe as the main market area, our clients include European cable operators and specified organizations in the public sector.
As to Video and Broadband Solutions, client-specific and integrated deliveries of solutions create favorable conditions for growth, even if the involved resource allocation and technical implementation pose a challenge involving, therefore, also reasonable risks. Our customers' network investments vary based on the relevant need for upgrading and their financial structure. Significant part of Teleste's competition comes from the USA so the exchange rate of euro up against the US dollar affects our competitiveness. The exchange rate development of the Chinese renminbi to euro affects our material costs.
The company hedges against short-term currency exposure by means of forward contracts. The tight financial market in Europe may slow down our customers' investment plans. Furthermore, a weakening in the consumer purchasing power in Europe could slow down the network investments by the cable operators. Availability of components is subject to natural phenomena, such as floods and earthquakes. Severe weather conditions have an impact on the business areas' ability to deliver their products and services. Correct technological choices and their timing are vital for our 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 our services by any one of them is reflected in the actual deliveries. To ensure quality of services and cost-efficiency along with efficient service process management, customer satisfaction and improvements in productivity require innovative solutions in terms of processes, products and logistics. Smooth operation of cable networks requires effective technical management and functional hardware solutions in accordance with contractual obligations. This, in turn, demands continuous and determined development of skill levels in Teleste's own personnel as well as those of our subcontractors. In addition, our ability to deliver and compete may be constrained by the adequacy of our sub-contractor network capacity. Tender calculation and management of larger projects with overall responsibility are complex and risky.
It is important for our business areas to take into account any market developments such as consolidations taking place among the clientele and competition. The threats to information systems must be minimized to ensure business continuity. The Board of Directors annually reviews any essential risks related to the company operation and their management. Risk management is an integral part of the strategic and operational activities of the business areas. Risks and their probability are reported to the Board in conjunction with regular monthly reports.
The company has covered any major risks of loss involving the business areas through insurance policies. Insurance will also cover credit loss risks related to sales receivables. In the period under review, no such risks materialized, and no such legal proceedings or judicial procedures were pending that would have had any essential significance for the Group operation.
Group Structure
Parent company Teleste has branch offices in Australia, the Netherlands, and Denmark with subsidiaries in 12 countries outside Finland. On account of financial arrangements, Teleste Management Oy, established in March 2010, and Teleste Management II Oy, established in December 2011, have been consolidated into Teleste Corporation's figures. Teleste Incentive Oy has been merged with Teleste Corporation. In Belgium, the company structure was streamlined.
Shares and Changes in Share Capital
On 31 March 2013, EM Group Oy was the largest single shareholder with a holding of 23.44%.
In the period under review, the lowest company share price was EUR 3.88 (3.04) and the highest was EUR 4.47 (4.44). Closing price on 31 March 2013 stood at EUR 3.92 (4.20). According to Euroclear Finland Ltd the number of shareholders at the end of the period under review was 5,245 (5,089). Foreign ownership accounted for 5.9% (8.2%). From 1 January to 31 March 2013, trading with Teleste share at NASDAQ OMX Helsinki amounted to EUR 3.5 (2.2) million. In the period under review, 0.8 (0.6) million Teleste shares were traded on the stock exchange.
At the end of March 2013, the Group held 1,302,985 of its own shares, of which the parent company Teleste Corporation had 379,985 shares and the controlled companies had 923,000 shares, respectively. At the end of the period, the Group's holding of the total amount of shares amounted to 6.96% (6.96%).
On 31 March 2013, the registered share capital of Teleste stood at EUR 6,966,932.80 divided in 18,728,590 shares.
Trading with stock options 2007B and 2007C began on the NASDAQ OMX Helsinki Ltd on 2 April 2012. These options allow subscription for a maximum of 560,000 shares in the company.
Valid authorizations at the end of the review period:
- Authorization to purchase own shares: 1,400,000
- Disposal of own shares: 1,779,985, valid until the 2014 Annual General Meeting
- Issue of new shares: 5,000,000, valid until the 2014 Annual General Meeting
- Pursuant to the special rights granted by the company, the maximum number of shares is 2,500,000; these special rights are included in the authorization to issue 5,000,000 new shares.
The Board has not used the authorizations.
Events after the End of the Period
The Annual General Meeting (AGM) of Teleste Corporation on 12 April 2013 confirmed the financial statements for 2012 and discharged the Board of Directors and the CEO from liability for the financial period. The AGM confirmed the dividend of EUR 0.17 per share proposed by the Board. The dividend was paid out on 24 April 2013.
Ms. Marjo Miettinen, Mr. Pertti Ervi, Mr. Esa Harju, Mr. Kai Telanne and Mr. Petteri Walldén continue in Teleste's Board of Directors. Jannica Fagerholm was elected new member of the Board of Directors. Pertti Raatikainen's membership of the Board of Directors ended. Ms. Marjo Miettinen was elected Chair of the Board in the organizational meeting held immediately after the AGM.
Authorized Public Accountants KPMG Oy Ab continue as the auditor until the next AGM. Mr. Esa Kailiala, accountant authorized by the Central Chamber of Commerce of Finland, was chosen auditor-in-charge.
The Annual General Meeting authorized the Board to acquire by the 2014 Annual General Meeting the maximum of 1,400,000 of the Company's own shares.
On 8 April 2013, Teleste acquired the entire share capital of Asheridge companies, a provider of access network equipment for cable operators. The impact of the acquisition on Teleste's net sales in 2013 is estimated to be around five million euros, but the impact on Teleste's equity ratio and profitability is not significant during the current fiscal year. This acquisition increases the number of Teleste personnel by approximately 23. The relevant acquisition cost calculation will be presented in the 2013 second interim report.
Outlook for 2013
Given the new video services offered by the operators, there is a continuous need for increased cable network capacity, so we estimate the deliveries by Video and Broadband Solutions in our target markets to reach at least the 2012 level. In our view, investments by cable operators will be given more weight during the second half of the year.
We estimate that Network Services' net sales in our target markets will reach at least the 2012 level and that the profitability will improve from the 2012 level with the developments in productivity.
We expect net sales and operating profit for 2013 to reach the 2012 level. In our assessment, net sales and operating profit for the first half of 2013 will remain below the comparative period.
24 April 2013
Teleste Corporation Jukka Rinnevaara
The Board of Directors President and CEO
This interim report has been compiled in compliance with IAS 34, as it is accepted within EU, using the recognition and valuation principles with those used in the Annual Report. Teleste has prepared this interim report applying the same accounting principles as those described in detail in its 2012 consolidated financial statements. The data stated in this report is unaudited.
| STATEMENT OF COMPREHENSIVE INCOME (tEUR) | 1-3/2013 | 1-3/2012 | Change % | 1-12/2012 | ||
| Net Sales | 45,759 | 51,130 | -10.5 % | 193,875 | ||
| Other operating income | 458 | 332 | 38.0 % | 1,150 | ||
| Materials and services | -21,604 | -25,854 | -16.4 % | -94,747 | ||
| Personnel expenses | -14,435 | -15,084 | -4.3 % | -58,511 | ||
| Other operating expenses | -6,225 | -6,210 | 0.2 % | -25,753 | ||
| Depreciation | -1,351 | -1,377 | -1.9 % | -5,078 | ||
| Operating profit | 2,602 | 2,937 | -11.4 % | 10,936 | ||
| Financial income and expenses | -82 | -137 | -40.1 % | -821 | ||
| Profit after financial items | 2,520 | 2,800 | -10.0 % | 10,115 | ||
| Profit before taxes | 2,520 | 2,800 | -10.0 % | 10,115 | ||
| Taxes | -733 | -787 | -6.8 % | -3,412 | ||
| Net profit | 1,787 | 2,013 | -11.2 % | 6,703 | ||
| Attributable to: | ||||||
| Equity holders of the parent | 1,787 | 2,013 | -11.2 % | 6,703 | ||
| Earnings per share for result of the year attributable to the equity holders of the parent | ||||||
| (expressed in € per share) | ||||||
| Basic | 0.10 | 0.12 | -14.6 % | 0.38 | ||
| Diluted | 0.10 | 0.11 | -11.4 % | 0.38 | ||
| Total comprehensive income for the period (tEUR) | ||||||
| Net profit | 1,787 | 2,013 | -11.2 % | 6,703 | ||
| Possible items with future net profit effect | ||||||
| Translation differences | 45 | 269 | -83.3 % | 631 | ||
| Fair value reserve | 24 | 14 | 71.4 % | 144 | ||
| Total comprehensive income for the period | 1,856 | 2,296 | -19.2 % | 7,478 | ||
| Attributable to: | ||||||
| Equity holders of the parent | 1,856 | 2,296 | -19.2 % | 7,478 | ||
| STATEMENT OF FINANCIAL POSITION (tEUR) | 31.3.2013 | 31.3.2012 | Change % | 31.12.2012 | |
| Non-current assets | |||||
| Property,plant,equipment | 10,283 | 10,261 | 0.2 % | 10,127 | |
| Goodwill | 31,421 | 31,131 | 0.9 % | 31,350 | |
| Other intangible assets | 3,623 | 5,784 | -37.4 % | 4,174 | |
| Deferred tax assets | 2,126 | 1,910 | 11.3 % | 2,086 | |
| Available-for-sale investments | 294 | 710 | -58.6 % | 294 | |
| 47,747 | 49,796 | -4.1 % | 48,031 | ||
| Current assets | |||||
| Inventories | 18,337 | 23,075 | -20.5 % | 19,495 | |
| Trade and other receivables | 42,697 | 43,143 | -1.0 % | 38,811 | |
| Cash and cash equivalents | 10,862 | 16,942 | -35.9 % | 13,880 | |
| 71,896 | 83,160 | -13.5 % | 72,186 | ||
| Total assets | 119,643 | 132,956 | -10.0 % | 120,217 | |
| Shareholder's equity and liabilities | |||||
| Share capital | 6,967 | 6,967 | 0.0 % | 6,967 | |
| Other equity | 54,785 | 50,057 | 9.4 % | 52,912 | |
| Non-controlling interest | 661 | 605 | 9.3 % | 678 | |
| 62,413 | 57,629 | 8.3 % | 60,557 | ||
| Non-current liabilities | |||||
| Provisions | 503 | 605 | -16.9 % | 503 | |
| Deferred tax liabilities | 1,297 | 2,071 | -37.4 % | 1,297 | |
| Non interest bearing liabilities | 0 | 4,015 | -100.0 % | 22 | |
| Interest-bearing liabilities | 683 | 12,347 | -94.5 % | 788 | |
| 2,483 | 19,038 | -87.0 % | 2,610 | ||
| Current liabilities | |||||
| Trade payables and other liabilities | 30,632 | 35,552 | -13.8 % | 32,612 | |
| Current tax payable | 1,928 | 1,223 | 57.6 % | 2,075 | |
| Provisions | 909 | 1,211 | -24.9 % | 1,004 | |
| Interest-bearing liabilities | 21,278 | 18,303 | 16.3 % | 21,360 | |
| 54,747 | 56,289 | -2.7 % | 57,051 | ||
| Total shareholder's equity and liabilities | 119,643 | 132,956 | -10.0 % | 120,217 | |
| CONSOLIDATED CASH FLOW STATEMENT (tEUR) | 1-3/2013 | 1-3/2012 | Change % | 1-12/2012 | |
| Cash flows from operating activities | |||||
| Profit for the period | 1,787 | 2,013 | -11.2 % | 6,703 | |
| Adjustments | 2,166 | 2,355 | -8.0 % | 9,110 | |
| Interest and other financial expenses and incomes | -82 | -137 | -40.1 % | -397 | |
| Paid Taxes | -880 | -987 | -10.8 % | -4,290 | |
| Change in working capital | -2,790 | 1,710 | n/a | 4,171 | |
| Cash flow from operating activities | 201 | 4,954 | -95.9% | 15,297 | |
| Cash flow from investing activities | |||||
| Acquisition of subsidiary, net of cash acquired | -2,586 | 300 | n/a | -828 | |
| Purchases of property, plant and equipment (PPE) | -189 | -582 | -67.5 % | -1,110 | |
| Purchases of intangible assets | -293 | -280 | 4.6 % | -844 | |
| Net cash used in investing activities | -3,068 | -562 | 445.9 % | -2,782 | |
| Cash flow from financing activities | |||||
| Payments of borrowings | -197 | -3,123 | -93.7 % | -11,821 | |
| Dividends paid | 0 | 0 | n/a | -2,440 | |
| Net cash used in financing activities | -197 | -3,123 | -93.7 % | -14,261 | |
| Change in cash | |||||
| Cash in the beginning | 13,880 | 15,404 | -9.9 % | 15,404 | |
| Effect of currency changes | 46 | 269 | -82.9% | 221 | |
| Change | -3,064 | 1,269 | n/a | -1,746 | |
| Cash at the end | 10,862 | 16,942 | -35.9% | 13,880 | |
| KEY FIGURES | 1-3/2013 | 1-3/2012 | Change % | 1-12/2012 | |
| Earnings per share, EUR | 0.10 | 0.12 | -11.2 % | 0.38 | |
| Earnings per share fully diluted, EUR | 0.10 | 0.11 | -11.3 % | 0.38 | |
| Shareholders' equity per share, EUR | 3.58 | 3.31 | 8.3 % | 3.48 | |
| Return on equity | 11.6 % | 14.3 % | -18.5 % | 11.6 % | |
| Return on capital employed | 12.6 % | 13.6 % | -7.2 % | 13.0 % | |
| Equity ratio | 52.2 % | 43.5 % | 20.2 % | 50.5 % | |
| Gearing | 17.8 % | 23.8 % | -25.2 % | 13.7 % | |
| Investments, tEUR | 579 | 1,374 | -57.9 % | 3,325 | |
| Investments % of net sales | 1.3 % | 2.7 % | -52.9 % | 1.7 % | |
| Order backlog, tEUR | 14,606 | 19,191 | -23.9 % | 17,000 | |
| Personnel, average | 1,335 | 1,316 | 1.4 % | 1,326 | |
| Number of shares (thousands) | 18,729 | 18,729 | 0.0 % | 18,729 | |
| including own shares | |||||
| Highest share price, EUR | 4.47 | 4.44 | 0.7 % | 4.44 | |
| Lowest share price, EUR | 3.88 | 3.04 | 27.6 % | 3.04 | |
| Average share price, EUR | 4.21 | 3.98 | 5.8 % | 3.98 | |
| Turnover, in million shares | 0.8 | 0.6 | 49.2 % | 2.7 | |
| Turnover, in MEUR | 3.5 | 2.2 | 58.8 % | 10.8 | |
| Treasury shares | |||||
| Number of shares | % of shares | % of votes | |||
| Teleste companies own shares 31.3.2013 | 1,302,985 | 6.96% | 6.96% | ||
| Contingent liabilities and pledged assets (tEUR) | |||||
| Leasing and rent liabilities | 7,782 | 8,594 | -9.4 % | 8,528 | |
| Derivative instruments (tEUR) | |||||
| Value of underlying forward contracts | 8,107 | 8,054 | 0.7 % | 5,936 | |
| Market value of forward contracts | 296 | -220 | n/a | -109 | |
| Interest rate swap | 11,000 | 11,500 | -4.3 % | 9,000 | |
| Market value of interest swap | 2 | -152 | n/a | -22 | |
| Taxes are computed on the basis of the tax on the profit for the period. | |||||
| OPERATING SEGMENTS (tEUR) | 1-3/2013 | 1-3/2012 | Change % | 1-12/2012 | |
| Video and Broadband Solutions | |||||
| Orders received | 21,419 | 26,390 | -18.8 % | 97,730 | |
| Net sales | 23,813 | 27,500 | -13.4 % | 101,230 | |
| EBIT | 2,436 | 2,524 | -3.5 % | 8,497 | |
| EBIT% | 10.2 % | 9.2 % | 8.4 % | ||
| Network Services | |||||
| Orders received | 21,946 | 22,731 | -3.5 % | 91,931 | |
| Net sales | 21,946 | 23,631 | -7.1 % | 92,645 | |
| EBIT | 166 | 413 | -59.9 % | 2,439 | |
| EBIT% | 0.8 % | 1.7 % | 2.6 % | ||
| Total | |||||
| Orders received | 43,365 | 49,121 | -11.7 % | 189,661 | |
| Net sales | 45,759 | 51,130 | -10.5 % | 193,875 | |
| EBIT | 2,602 | 2,937 | -11.4 % | 10,936 | |
| EBIT% | 5.7 % | 5.7 % | 5.6 % | ||
| Financial items | -82 | -137 | -40.1 % | -821 | |
| Operating segments net profit before taxes | 2,520 | 2,800 | -10.0 % | 10,115 | |
| Information per quarter (tEUR) | 1-3/13 | 10-12/12 | 7-9/12 | 4-6/12 | 1-3/12 | 4/2012- 3/2013 | |
| Video and Broadband Solutions | |||||||
| Orders received | 21,419 | 27,830 | 19,720 | 23,790 | 26,390 | 92,759 | |
| Net sales | 23,813 | 24,659 | 24,794 | 24,278 | 27,500 | 97,544 | |
| EBIT | 2,436 | 2,002 | 2,423 | 1,548 | 2,524 | 8,409 | |
| EBIT % | 10.2 % | 8.1 % | 9.8 % | 6.4 % | 9.2 % | 8.6 % | |
| Network Services | |||||||
| Orders received | 21,946 | 22,995 | 20,796 | 25,409 | 22,731 | 91,146 | |
| Net sales | 21,946 | 22,809 | 20,796 | 25,409 | 23,631 | 90,960 | |
| EBIT | 166 | 706 | 448 | 872 | 413 | 2,192 | |
| EBIT % | 0.8 % | 3.1 % | 2.2 % | 3.4 % | 1.7 % | 2.4 % | |
| Total | |||||||
| Orders received | 43,365 | 50,825 | 40,516 | 49,199 | 49,121 | 183,905 | |
| Net sales | 45,759 | 47,468 | 45,590 | 49,687 | 51,131 | 188,504 | |
| EBIT | 2,602 | 2,708 | 2,871 | 2,420 | 2,937 | 10,601 | |
| EBIT % | 5.7 % | 5.7 % | 6.3 % | 4.9 % | 5.7 % | 5.6 % | |
| Attributable to equity holders of the parent (tEUR) | ||||||||||
| A | Share capital | |||||||||
| B | Share premium | |||||||||
| C | Translation differences | |||||||||
| D | Retained earnings | |||||||||
| E | Invested free capital | |||||||||
| F | Other funds | |||||||||
| G | Total | |||||||||
| H | Share of non-controlling interest | |||||||||
| I | Total equity | |||||||||
| Attributable to equity holders of the parent (tEUR) | A | B | C | D | E | F | G | H | I | |
| Shareholder's equity 1.1.2013 | 6,967 | 1,504 | 685 | 48,007 | 2,737 | -22 | 59,878 | 678 | 60,557 | |
| Total comprehensive income for the period | 45 | 1,787 | 24 | 1,856 | 0 | 1,856 | ||||
| Interest, non controll party | 17 | 17 | -17 | 0 | ||||||
| Equity-settled share-based payments | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Shareholder's equity 31.3.2013 | 6,967 | 1,504 | 730 | 49,794 | 2,737 | 2 | 61,734 | 661 | 62,413 | |
| Shareholder's equity 1.1.2012 | 6,967 | 1,504 | 54 | 43,559 | 2,737 | -166 | 54,655 | 623 | 55,278 | |
| Total comprehensive income for the period | 269 | 2,013 | 14 | 2,296 | 0 | 2,296 | ||||
| Interest, non controll party | 17 | 17 | -17 | 0 | ||||||
| Equity-settled share-based payments | 56 | 0 | 0 | 56 | 0 | 56 | ||||
| Shareholder's equity 31.3.2012 | 6,967 | 1,504 | 323 | 45,645 | 2,737 | -152 | 57,024 | 606 | 57,630 | |
CALCULATION OF KEY FIGURES
| Return on equity: | Profit/loss for the financial period ------------------------------ * 100 Shareholders’ equity (average) |
| Return on capital employed: | Profit/loss for the period after financial items + financing charges ------------------------------ * 100 Total assets - non-interest-bearing liabilities (average) |
| Equity ratio: | Shareholders' equity ----------------------------- * 100 Total assets - advances received |
| Gearing: | Interest bearing liabilities - cash in hand and in bank - interest bearing assets ----------------------------- * 100 Shareholders' equity |
| Earnings per share: | Profit for the period attributable to equity holder of the parent ---------------------------------------------- Weighted average number of ordinary shares outstanding during the period |
| Earnings per share, diluted: | Profit for the period attributable to equity holder of the parent (diluted) ----------------------------------------------- Average number of shares - own shares + number of options at the period-end |
| Major Shareholders 31.3.2013 | Shares | % |
| EM Group Oy | 4,389,712 | 23.44 |
| Mandatum Life | 1,679,200 | 8.97 |
| Ilmarinen Mutual Pension Insurance Company | 953,854 | 5.09 |
| Kaleva Mutual Insurance Company | 824,641 | 4.40 |
| OP-Suomi Small Cap | 562,761 | 3.00 |
| Teleste Management II Oy | 542,000 | 2.89 |
| Varma Mutual Pension Insurance Company | 521,150 | 2.78 |
| State Pension Fund | 500,000 | 2.67 |
| Teleste Management Oy | 381,000 | 2.03 |
| Teleste Oyj | 379,985 | 2.03 |
| Sector Dispersion 31.3.2013 | Shareholders | % | Shares | % |
| Corporations | 294 | 5.60 | 7,252,006 | 38.72 |
| Financial and insurance corporations | 9 | 0.17 | 3,348,866 | 17.88 |
| Public institutions | 6 | 0.11 | 2,015,104 | 10.75 |
| Non-profit institutions | 37 | 0.70 | 385,929 | 2.06 |
| Households | 4,852 | 92.50 | 4,623,889 | 24.68 |
| Foreign countries and nominee registered | 47 | 0.89 | 1,102,796 | 5.88 |
| Total | 5,245 | 100.00 | 18,728,590 | 100.00 |
| Amount of shares 31.3.2013 | Shareholders | % | Shares | % |
| 0 - 100 | 1,158 | 22.07 | 79,491 | 0.42 |
| 101 – 1,000 | 3,075 | 58.62 | 1,293,611 | 6.90 |
| 1,001 – 10,000 | 920 | 17.54 | 2,499,861 | 13.34 |
| 10,001 – 100,000 | 70 | 1.33 | 1,612,055 | 8.60 |
| 100,001 – 1,000,000 | 20 | 0.38 | 7,174,660 | 38.30 |
| 1,000,001 - | 2 | 0.03 | 6,068,912 | 32.40 |
| Total | 5,245 | 100.00 | 18,728,590 | 100.00 |
ADDITIONAL INFORMATION:
CEO Jukka Rinnevaara, phone +358 2 2605 866 or +358 400 747 488
DISTRIBUTION:
NASDAQ OMX Helsinki
Main Media
www.teleste.com