TELESTE CORPORATION INTERIM REPORT 1 JANUARY TO 31 MARCH 2008
TELESTE CORPORATION INTERIM REPORT 22.4.2008 AT 14:00
TELESTE CORPORATION INTERIM REPORT 1 JANUARY TO 31 MARCH 2008
- Net sales amounted to EUR 27.2 (31.4) million, a fall of 13.4% over the year
of comparison.
- Operating profit stood at EUR 0.9 (2.8) million, a fall of 68.5% over the
previous year; undiluted result per share equalled EUR 0.03 (0.11) per share.
- Orders received amounted to EUR 29.4 (36.4) million, a fall of 19.2% over the
year of comparison.
- Orders received by Broadband Cable Networks stood at EUR 26.0 (32.7) million,
a fall of 20.5% over the year of comparison. Operating profit weakened.
- Orders received by Video Networks stood at EUR 3.3 (3.6) million, a fall of
8.0% over the year of comparison. Operating profit improved.
Decline in Net Sales and Profit
Net sales fell as expected and ended up at EUR 27.2 (31.4) million. Net sales
stood at 13.4% below the period of comparison, which included an EttH delivery
of approximately EUR 5 million to South Korea.
Year-on-year operating profit fell standing at EUR 0.9 (2.8) million, which is
3.2% (8.9%) of net sales.
Weakening in the operating profit was mainly caused by diminished net sales.
Undiluted result per share equalled EUR 0.03 (EUR 0.11). Orders received
diminished over the previous year standing at EUR 29.4 (36.4) million. Order
backlog totalled EUR 23.7 (33.3) million. No essential delays in deliveries
related to the production capacity or availability of materials occurred at the
end of the period under review.
Changes in Group Structure
Teleste improved its standing as a supplier of IPTV solutions by acquiring the
Finnish Ortikon Interactive Oy in the beginning of February. The acquisition
will not have an essential effect on Teleste's financial figures for 2008.
Business Areas
Net sales of Broadband Cable Networks stood at EUR 23.0 (28.0) million remaining
18.0% below the previous year. Net sales for the year of comparison included
deliveries of Ethernet to the Home (EttH) to South Korea for approximately EUR 5
million. Volumes delivered to France based on frame agreements were as expected.
Operating profit stood at EUR 0.9 (3.3) million making 3.9% (11.8%) of the net
sales. Weakened profitability was the result of diminished net sales. Orders
received by the Broadband Cable Networks decreased over the year of comparison
amounting to EUR 26.0 (32.7) million. Orders received for the year of comparison
include delivery of amplifiers to Germany of EUR 5 million. Order backlog
totalled EUR 22.2 (31.5) million. Ortikon Interactive Oy acquired in February
2008 strengthens the provision of IPTV solutions for the business area.
Net sales of Video Networks grew by 23.9% over the year of comparison standing
at EUR 4.2 (3.4) million. Operating profit was EUR -0.02 (-0.5) million in the
red. Orders received by Video Networks fell by 8.0% amounting to EUR 3.3 (3.6)
million. New orders failed to accumulate as expected due to slow decision-making
in the public sector. Prospect list of fairly sizeable project deliveries
remains on a sound level. Order backlog totalled EUR 1.5 (1.9) million.
Significant Short-Term Risks and Uncertainty Factors for the Business Areas
Increased insecurity concerning the world economy may undermine the demand for
Teleste products. Significant strengthening of the euro against the US dollar
may erode Teleste's competitiveness. Ownership rearrangements among our
clientele may slow down the folding out of network investments in the business
of Broadband Cable Networks. Strengthening of order backlog for Video Networks
is dependent on timing of public sector decisions. Introduction to the market of
new competing technologies is a characteristic risk factor for both of our
business areas.
Personnel
The Group employed 686 people at the end of March (2007:639, 2006: 569), out of
which 461 (448 and 405) were stationed in Finland. The stated number does not
include temporary labour of 37 (78 and 25) at the end of March.
R&D and Investments
The number of persons working in R&D related assignments was 158 (145 and 124).
The R&D expenditure for the review period totalled EUR 3.2 (2.9) million making
11.8% (9.5%) of net sales. Activated R&D expenses stood at EUR 0.8 (0.5) million
and depreciation on previous activation items equalled EUR 0.4 (0.3) million.
Investments for the Group totalled EUR 1.0 (2.5) million and involved mainly
product development. Acquisition of Ortikon Interactive Oy is included in the
investments.
Finance
Operating cash flow stood at EUR 0.6 (1.0) million. In the period under review
inventories were reduced by EUR 1.4 million. EUR 2.0 million of new
interest-bearing loan was taken so that the total interest-bearing debt at the
end of March amounted to EUR 11.7 (12.3) million. At the end of the period under
review the company liquid funds stood at EUR 8.8 (8.9) million. At the end of
the review period the amount of unused stand-by credits amounted to EUR 21.0
(20.0) million. These stand-by credits will be due in November 2008. The company
has started negotiations on a new financing solution. The Group's gearing was
6.2% (8.4%) and the equity ratio was 60.0% (50.5%).
Teleste hedges main exchange rate risks of forecasted currency flows for six
months ahead.
Shares and Shareholders
In the period under review the trading price of shares fluctuated between EUR
5.90 (9.99) and EUR 7.49 (12.34). The closing price at the end of March was EUR
6.78 (11.50). According to the Finnish Central Security Depository the number of
shareholders at the end of the period was 5,193 (5,401). Foreign ownership
accounted for 18.7% (20.5%). The value of shares traded on OMX Nordic Exchange
was EUR 23.4 (24.7) million while the number thereof equalled 3.5 (2.2) million.
At the end of March Teleste held 344,721 of the company's own shares. In the
period under review 7,761 own shares were conveyed to the Management Team share
bonus scheme.
Decisions by the Annual General Meeting
The Annual General Meeting (AGM) on 1 April 2008 confirmed the financial
statements for 2007 and discharged the Board and the CEO from liability for the
financial period. The AGM confirmed the Board's proposed dividend of EUR 0.24
per share. The dividend was paid out on 15 April 2008.
The AGM decided that the Board of Directors shall consist of six members. Mr.
Tapio Hintikka was re-elected as Chairman of the Board whilst Mr. Tero
Laaksonen, Mr. Pertti Raatikainen, Mr. Timo Toivila and Mr. Pekka Vennamo
continue as members on the Board of Directors. Mr. Kai Telanne was elected new
member of the Board.
Authorised Public Accountants KPMG Oy Ab continue as the auditor until the next
AGM.
The AGM authorised the Board to acquire the maximum of 1,400,000 of the
company's own shares and to convey the maximum of 1,744,721 company's own
shares. Based on authorisations of 2001 and 2002 the company is in the
possession of 344,721 of its own shares. The AGM also authorised the company to
issue 5,000,000 new shares. The maximum number of shares that may be subscribed
with the special rights granted by the Company is 2,000,000 shares.
These authorisations will be valid until the AGM due to be held in 2009.
Outlook
In our view the business area of Broadband Cable Networks will grow towards the
end of the current year. Growth prospects for the year are supported by the
on-going solid deliveries based on frame agreements, growth in the demand for
next generation broadband solutions (EttH/Fttx), deliveries of IP headend
products and the increasing demand for services provided by the business area.
Price competition in the markets of the business area will increase further
still, driven particularly by the weak US dollar.
In our perspective, due to the strong prospect list involving large-scale
traffic control and security surveillance solutions, growth of the Video
Networks business area will continue for the entire year.
Business predictability has become more difficult due to the increased
uncertainty in the world economy. We believe the market situation for our lines
of business to remain active and that Teleste will continue on its path of
profitable growth in the medium term perspective. As to the current year we
estimate the orders received to pick up, but due to the dip in the beginning of
the year, net sales and profitability may remain level with the last year.
In spite of the short-term risks to profitability caused by the uncertainty
factors in the world economy, affecting also Teleste, the company will continue
its efforts in the chosen priority areas of products (such as EttH and IP
headend) and services that ensure profitable growth in the future.
Teleste's interim report for the January - June period will be published on 15
July 2008.
22.4.2008
Teleste Corporation Jukka Rinnevaara
Board of Directors CEO
This Interim Report has been compiled in compliance with IFRS 34, as it is
accepted within EU, using the recognition and valuation principles with those
used in the Annual Report. The data stated in this report is unaudited.
CONSOLIDATED STATEMENT OF INCOME
--------------------------------------------------------------------------------
| (tEUR) | 1-3/2008 | 1-3/2007 | Change % | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turnover | 27 192 | 31 415 | -13.4 % | 125 100 |
--------------------------------------------------------------------------------
| | Change in inventories of | -940 | -616 | 52.6 % | -673 |
| | finished goods | | | | |
--------------------------------------------------------------------------------
| | Other operating income | 407 | 42 | 869.0 % | 1 772 |
--------------------------------------------------------------------------------
| | Materials and services | -12 510 | -15 568 | -19.6 % | -59 692 |
--------------------------------------------------------------------------------
| | Personnel expenses | -8 020 | -7 263 | 10.4 % | -31 455 |
--------------------------------------------------------------------------------
| | Other operating expenses | -4 060 | -4 502 | -9.8 % | -18 324 |
--------------------------------------------------------------------------------
| | Depreciation | -1 188 | -710 | 67.3 % | -3 552 |
--------------------------------------------------------------------------------
| Operating profit | 881 | 2 797 | -68.5 % | 13 176 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | Financial income and | -159 | -236 | -32.6 % | -504 |
| | expenses | | | | |
--------------------------------------------------------------------------------
| Profit after financial items | 722 | 2 561 | -71.8 % | 12 672 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 722 | 2 561 | -71.8 % | 12 672 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | Taxes | -204 | -694 | -70.6 % | -3 309 |
--------------------------------------------------------------------------------
| Net profit | 518 | 1 867 | -72.3 % | 9 363 |
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| Attributable to: |
--------------------------------------------------------------------------------
| | Equity holders of the | 518 | 1 867 | -72.3 % | 9 363 |
| | parent | | | | |
--------------------------------------------------------------------------------
| Earnings per share for profit of the year attributable to the equity holders |
| of the parent (expressed in euro per share) |
--------------------------------------------------------------------------------
| | Basic | 0.03 | 0.11 | -72.8 % | 0.55 |
--------------------------------------------------------------------------------
| | Diluted | 0.03 | 0.10 | -71.2 % | 0.52 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET (teur) |
| |
--------------------------------------------------------------------------------
| Non-current assets | 31.3.200 | 31.3.2007 | Change % | 31.12.200 |
| | 8 | | | 7 |
--------------------------------------------------------------------------------
| | Property,plant,equipment | 7 448 | 7 224 | 3.1 % | 7 757 |
--------------------------------------------------------------------------------
| | Goodwill | 13 291 | 12 271 | 8.3 % | 12 686 |
--------------------------------------------------------------------------------
| | Intangible assets | 6 823 | 3 628 | 88.1 % | 6 629 |
--------------------------------------------------------------------------------
| | Investments | 775 | 1 116 | -30.6 % | 723 |
--------------------------------------------------------------------------------
| | | 28 337 | 24 239 | 16.9 % | 27 795 |
--------------------------------------------------------------------------------
| Current assets |
--------------------------------------------------------------------------------
| | Inventories | 14 536 | 18 206 | -20.2 % | 15 936 |
--------------------------------------------------------------------------------
| | Trade and other | 27 219 | 27 778 | -2.0 % | 26 455 |
| | receivables | | | | |
--------------------------------------------------------------------------------
| | Cash | 8 766 | 8 913 | -1.6 % | 7 702 |
--------------------------------------------------------------------------------
| | | 50 521 | 54 897 | -8.0 % | 50 093 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 78 858 | 79 136 | -0.4 % | 77 888 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity and liabilities |
--------------------------------------------------------------------------------
| | Share capital | 6 967 | 6 967 | 0.0 % | 6 967 |
--------------------------------------------------------------------------------
| | Other equity | 40 343 | 32 866 | 22.7 % | 39 702 |
--------------------------------------------------------------------------------
| | | 47 310 | 39 833 | 18.8 % | 46 669 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| | Provisions | 425 | 425 | 0.0 % | 425 |
--------------------------------------------------------------------------------
| | Non interest bearing | 1 219 | 368 | 231.3 % | 1 197 |
| | liabilities | | | | |
--------------------------------------------------------------------------------
| | Interest bearing | 1 702 | 1 743 | -2.4 % | 1 700 |
| | liabilities | | | | |
--------------------------------------------------------------------------------
| | | 3 346 | 2 536 | 31.9 % | 3 322 |
--------------------------------------------------------------------------------
| Short-term liabilities | | | | |
--------------------------------------------------------------------------------
| | Trade payables and other | 17 694 | 25 150 | -29.6 % | 19 596 |
| | s-t liabilities | | | | |
--------------------------------------------------------------------------------
| | Provisions | 518 | 1 106 | -53.2 % | 518 |
--------------------------------------------------------------------------------
| | S-t interest bearing | 9 990 | 10 511 | -5.0 % | 7 783 |
| | liabilities | | | | |
--------------------------------------------------------------------------------
| | | 28 202 | 36 767 | -23.3 % | 27 897 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholder's equity | 78 858 | 79 136 | -0.4 % | 77 888 |
| and liabilities | | | | |
--------------------------------------------------------------------------------
| CASH-FLOW |
--------------------------------------------------------------------------------
| (tEUR) | 1-3/2008 | 1-3/2007 | Change % | 1-12/2007 |
--------------------------------------------------------------------------------
| Cash-flow from operation | 630 | 951 | -33.8 % | 11 988 |
--------------------------------------------------------------------------------
| | Cash in | 26 755 | 26 088 | 2.6 % | 125 663 |
--------------------------------------------------------------------------------
| | Cash out | -26 125 | -25 136 | 3.9 % | -113 675 |
--------------------------------------------------------------------------------
| Cash-flow from investments | -744 | -1 794 | -58.5 % | -8 468 |
--------------------------------------------------------------------------------
| | Cash in | 0 | 0 | n/a | 814 |
--------------------------------------------------------------------------------
| | Cash out | -744 | -1 794 | -58.5 % | -9 282 |
--------------------------------------------------------------------------------
| Cash-flow from finance | 1 227 | 3 024 | -59.4 % | -2 490 |
--------------------------------------------------------------------------------
| | Cash in | 2 000 | 3 099 | -35.5 % | 12 630 |
--------------------------------------------------------------------------------
| | Cash out | -773 | -75 | 930.7 % | -11 707 |
--------------------------------------------------------------------------------
| | Paid dividend | 0 | 0 | n/a | -3 413 |
--------------------------------------------------------------------------------
| Other Items | -49 | -57 | -14.0 % | -118 |
--------------------------------------------------------------------------------
| | Effect of currency rates | -49 | -57 | -14.0 % | -118 |
--------------------------------------------------------------------------------
| Change in liquid funds | 1 064 | 2 124 | -49.9 % | 912 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 1-3/2008 | 1-3/2007 | Change % | 1-12/2007 |
--------------------------------------------------------------------------------
| | Earnings per share, EUR | 0.03 | 0.11 | -72.8 % | 0.55 |
--------------------------------------------------------------------------------
| | Earnings per share fully | 0.03 | 0.10 | -71.2 % | 0.52 |
| | diluted, EUR | | | | |
--------------------------------------------------------------------------------
| | Shareholders' equity per | 2.73 | 2.35 | 16.2 % | 2.69 |
| | share, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Return on equity | 4.4 % | 19.3 % | -77.2 % | 22.2 % |
--------------------------------------------------------------------------------
| | Return on capital | 6.5 % | 22.9 % | -71.4 % | 27.1 % |
| | employed | | | | |
--------------------------------------------------------------------------------
| | Equity ratio | 60.0 % | 50.5 % | 18.8 % | 60.2 % |
--------------------------------------------------------------------------------
| | Gearing | 6.2 % | 8.4 % | -26.2 % | 3.8 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Investments, tEUR | 1 020 | 2 526 | -59.6 % | 12 284 |
--------------------------------------------------------------------------------
| | Investments % of net | 3.8 % | 8.0 % | -53.3 % | 9.8 % |
| | sales | | | | |
--------------------------------------------------------------------------------
| | Order backlog, tEUR | 23 703 | 33 345 | -28.9 % | 21 523 |
--------------------------------------------------------------------------------
| | Personnel, average | 681 | 633 | 7.6 % | 681 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Number of shares | 17 672 | 17 394 | 1.6 % | 17 494 |
| | (thousands) including | | | | |
| | own shares | | | | |
--------------------------------------------------------------------------------
| | Highest share price, EUR | 7.49 | 12.34 | -39.3 % | 12.34 |
--------------------------------------------------------------------------------
| | Lowest share price, EUR | 5.90 | 9.99 | -40.9 % | 6.47 |
--------------------------------------------------------------------------------
| | Average share price, EUR | 6.62 | 11.43 | -42.1 % | 10.10 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Turnover, in million | 3.5 | 2.2 | 60.0 % | 7.2 |
| | shares | | | | |
--------------------------------------------------------------------------------
| | Turnover, in MEUR | 23.4 | 24.7 | -5.4 % | 72.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Own shares |
--------------------------------------------------------------------------------
| | Number | | Percentag | Percentag |
| | of | | e of | e of |
| | shares | | share | votes |
| | | | capital | |
--------------------------------------------------------------------------------
| | Teleste Oyj owns own | 344 721 | | 1.95 % | 1.95 % |
| | shares 31.3.2008 | | | | |
--------------------------------------------------------------------------------
| Contingent liabilities and pledged assets (tEUR) |
--------------------------------------------------------------------------------
| For own debt |
--------------------------------------------------------------------------------
| | Guarantees | 293 | 432 | -32.2 % | 184 |
--------------------------------------------------------------------------------
| | Other securities | 506 | 440 | 15.0 % | 365 |
--------------------------------------------------------------------------------
| | Leasing and rent | 2 401 | 2 672 | -10.1 % | 2 635 |
| | liabilities | | | | |
--------------------------------------------------------------------------------
| | | 3 200 | 3 544 | -9.7 % | 3 184 |
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| Derivative instruments (tEUR) |
--------------------------------------------------------------------------------
| | Value of underlying | 8 634 | 12 590 | -31.4 % | 7 746 |
| | forward contracts | | | | |
--------------------------------------------------------------------------------
| | Market value of forward | -242 | -213 | 13.6 % | -152 |
| | contracts | | | | |
--------------------------------------------------------------------------------
| Taxes are computed on the basis of the tax on the profit for the period. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Primary segments information | 1-3/2008 | 1-3/2007 | Change % | 1-12/2007 |
| (tEUR) | | | | |
--------------------------------------------------------------------------------
| Broadband Cable Networks (tEUR) |
--------------------------------------------------------------------------------
| | Order intake | 26 040 | 32 743 | -20.5 % | 101 450 |
--------------------------------------------------------------------------------
| | Net sales | 22 972 | 28 008 | -18.0 % | 108 204 |
--------------------------------------------------------------------------------
| | EBIT | 901 | 3 305 | -72.7 % | 12 837 |
--------------------------------------------------------------------------------
| | EBIT% | 3.9 % | 11.8 % | -66.8 % | 11.9 % |
--------------------------------------------------------------------------------
| Video Networks (tEUR) |
--------------------------------------------------------------------------------
| | Order intake | 3 332 | 3 620 | -8.0 % | 17 080 |
--------------------------------------------------------------------------------
| | Net sales | 4 220 | 3 407 | 23.9 % | 16 896 |
--------------------------------------------------------------------------------
| | EBIT | -20 | -508 | n/a | 339 |
--------------------------------------------------------------------------------
| | EBIT% | -0.5 % | -14.9 % | n/a | 2.0 % |
--------------------------------------------------------------------------------
| Total (tEUR) |
--------------------------------------------------------------------------------
| | Order intake | 29 372 | 36 363 | -19.2 % | 118 530 |
--------------------------------------------------------------------------------
| | Net sales | 27 192 | 31 415 | -13.4 % | 125 100 |
--------------------------------------------------------------------------------
| | EBIT | 881 | 2 797 | -68.5 % | 13 176 |
--------------------------------------------------------------------------------
| | EBIT% | 3.2 % | 8.9 % | -63.6 % | 10.5 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Information per | 1-3/08 | 10-12/ | 7-9/07 | 4-6/07 | 1-3/07 | 4/2007 |
| quarter (tEUR) | | 07 | | | | - |
| | | | | | | 3/2008 |
--------------------------------------------------------------------------------
| Broadband Cable Networks |
--------------------------------------------------------------------------------
| | Order intake | 26 040 | 25 250 | 23 798 | 19 659 | 32 743 | 94 747 |
--------------------------------------------------------------------------------
| | Net sales | 22 972 | 25 530 | 28 387 | 26 279 | 28 008 | 103 |
| | | | | | | | 168 |
--------------------------------------------------------------------------------
| | EBIT | 901 | 2 371 | 4 576 | 2 585 | 3 305 | 10 433 |
--------------------------------------------------------------------------------
| | EBIT % | 3.9 % | 9.3 % | 16.1 % | 9.8 % | 11.8 % | 10.1 % |
--------------------------------------------------------------------------------
| Video Networks |
--------------------------------------------------------------------------------
| | Order intake | 3 332 | 4 510 | 5 650 | 3 300 | 3 620 | 16 792 |
--------------------------------------------------------------------------------
| | Net sales | 4 220 | 5 546 | 3 880 | 4 063 | 3 407 | 17 709 |
--------------------------------------------------------------------------------
| | EBIT | -20 | 664 | 75 | 108 | -508 | 827 |
--------------------------------------------------------------------------------
| | EBIT % | -0.5 % | 12.0 % | 1.9 % | 2.7 % | -14.9 % | 4.7 % |
--------------------------------------------------------------------------------
| Total |
--------------------------------------------------------------------------------
| | Order intake | 29 372 | 29 760 | 29 448 | 22 959 | 36 363 | 111 |
| | | | | | | | 539 |
--------------------------------------------------------------------------------
| | Net sales | 27 192 | 31 076 | 32 267 | 30 342 | 31 415 | 120 |
| | | | | | | | 877 |
--------------------------------------------------------------------------------
| | EBIT | 881 | 3 035 | 4 651 | 2 693 | 2 797 | 11 260 |
--------------------------------------------------------------------------------
| | EBIT % | 3.2 % | 9.8 % | 14.4 % | 8.9 % | 8.9 % | 9.3 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to equity holders of the parent |
--------------------------------------------------------------------------------
| (tEUR) | Share | Share | Trans-lat | Retai- | Inves | Total |
| | capi | Pre | ion | ned | ted | |
| | tal | mium | diffe-ren | Ear-ni | nonres | |
| | | | ces | ngs | -trict | |
| | | | | | ed | |
| | | | | | equity | |
| | | | | | fund | |
--------------------------------------------------------------------------------
| Equity 1.1.2008 | 6 967 | 1 504 | -53 | 35 720 | 2 531 | 46 669 |
--------------------------------------------------------------------------------
| | Exchange | | | -49 | | | -49 |
| | differences | | | | | | |
--------------------------------------------------------------------------------
| | Profit for the | | | | 518 | | 518 |
| | period | | | | | | |
--------------------------------------------------------------------------------
| | Equity-settled | | | | 108 | 56 | 164 |
| | share-based | | | | | | |
| | payments | | | | | | |
--------------------------------------------------------------------------------
| | Used share | | | | | 8 | 8 |
| | options | | | | | | |
--------------------------------------------------------------------------------
| Equity 31.3.2008 | 6 967 | 1 504 | -102 | 36 346 | 2 595 | 47 310 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity 1.1.2007 | 6 955 | 1 417 | 65 | 29 224 | 0 | 37 661 |
--------------------------------------------------------------------------------
| | Exchange | | | -57 | | | -57 |
| | differences | | | | | | |
--------------------------------------------------------------------------------
| | Profit for the | | | | 1 867 | | 1 867 |
| | period | | | | | | |
--------------------------------------------------------------------------------
| | Equity-settled | | | | 263 | | 263 |
| | share-based | | | | | | |
| | payments | | | | | | |
--------------------------------------------------------------------------------
| | Used share | 12 | 87 | | | | 99 |
| | options | | | | | | |
--------------------------------------------------------------------------------
| Equity 31.3.2007 | 6 967 | 1 504 | 8 | 31 354 | 0 | 39 833 |
--------------------------------------------------------------------------------
CALCULATION OF KEY FIGURES
--------------------------------------------------------------------------------
| Return on equity: | Profit/loss for the financial period |
| | ------------------------------ * 100 |
| | Shareholders' equity (average) |
--------------------------------------------------------------------------------
| Return on capital | Profit/loss for the period after financial |
| employed: | 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, | Profit for the period attributable to equity |
| diluted: | holder of the parent (diluted) |
| | ----------------------------------------------- |
| | Average number of shares - own shares + number |
| | of options at the period-end |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sector Dispersion of Shareholders |
--------------------------------------------------------------------------------
| Owners | Number of | Number of | % of shares |
| | shareholders | shares | |
--------------------------------------------------------------------------------
| Corporations | 311 | 1 649 652 | 9.33 |
--------------------------------------------------------------------------------
| Financial and insurance | 32 | 5 634 369 | 31.88 |
| corporations | | | |
--------------------------------------------------------------------------------
| Public institutions | 12 | 2 686 656 | 15.20 |
--------------------------------------------------------------------------------
| Non-profit organizations | 55 | 998 980 | 5.65 |
--------------------------------------------------------------------------------
| Households | 4 733 | 3 394 538 | 19.21 |
--------------------------------------------------------------------------------
| Foreign and nominee -registered | 50 | 3 311 010 | 18.73 |
--------------------------------------------------------------------------------
| Total | 5 193 | 17 675 205 | 100.00 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Major Shareholders | Number of | % of shares |
| | shares | |
--------------------------------------------------------------------------------
| 1. | Hs/Sampo Private Ss | 1 624 200 | 9.19% |
--------------------------------------------------------------------------------
| 2. | Ilmarinen Mutual Pension Insurance Company | 894 776 | 5.06% |
--------------------------------------------------------------------------------
| 3. | Kaleva Mutual Insurance Company | 798 541 | 4.52% |
--------------------------------------------------------------------------------
| 4. | Varma Mutual Pension Insurance Company | 521 150 | 2.95% |
--------------------------------------------------------------------------------
| 5. | State Pension Fund | 500 000 | 2.83% |
--------------------------------------------------------------------------------
| 6. | Abn Amro Finland Sijoitusrahasto | 495 453 | 2.80% |
--------------------------------------------------------------------------------
| 7. | Aktia Capital Mutual Fund | 487 200 | 2.76% |
--------------------------------------------------------------------------------
| 8. | Skagen Vekst Verdipapierfond | 437 000 | 2.47% |
--------------------------------------------------------------------------------
| 9. | Op-Suomi Pienyhtiöt | 411 016 | 2.33% |
--------------------------------------------------------------------------------
| 10. | FIM Fenno Mutual Fund | 403 868 | 2.28% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Preliminary calculation |
--------------------------------------------------------------------------------
| The following assets are liabilities were recognised in the acquisition |
| Ortikon Oy: |
--------------------------------------------------------------------------------
| (tEUR) |
--------------------------------------------------------------------------------
| Fair values used in consolidation |
--------------------------------------------------------------------------------
| Trade marks (inc. in intangible assets) | 46 |
--------------------------------------------------------------------------------
| Customer relationship (inc. in intangible assets) | 108 |
--------------------------------------------------------------------------------
| Technology (inc. in intangible assets) | 48 |
--------------------------------------------------------------------------------
| Book values used in consolidation | |
--------------------------------------------------------------------------------
| Tangible assets | 13 |
--------------------------------------------------------------------------------
| Trade receivables | 19 |
--------------------------------------------------------------------------------
| Other receivables | 126 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 0 |
--------------------------------------------------------------------------------
| Total assets | 360 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book values used in consolidation | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 556 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 53 |
--------------------------------------------------------------------------------
| Other liabilities | 256 |
--------------------------------------------------------------------------------
| Total liabilities | 865 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net identifiable assets and liabilities | -505 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total consideration | 100 |
--------------------------------------------------------------------------------
| Goodwill on acquisition | 605 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consideration paid in cash | -100 |
--------------------------------------------------------------------------------
| Cash and cash equivalents in acquired subsidiary | 0 |
--------------------------------------------------------------------------------
| Total net cash outflow on the acquisition | -100 |
--------------------------------------------------------------------------------
ADDITIONAL INFORMATION:
Mr Jukka Rinnevaara President and CEO, tel +358 2 2605 866 or +358 400 747 488
DISTRIBUTION:
OMX Nordic Exchange Helsinki
Media
www.teleste.com