2010-08-06 08:00:00 CEST
2010-08-06 08:01:00 CEST
REGULATED INFORMATION
Tekla - Interim report (Q1 and Q3)
Tekla Corporation's Interim Report January 1 - June 30, 2010: Outlook improved, demand recovering
Tekla Corporation Interim report August 6, 2010 at 9:00 a.m.
Tekla Corporation's Interim Report January 1 - June 30, 2010:
Outlook improved, demand recovering
Net sales of Tekla Group for January-June 2010 totaled 27.32 (24.05) million
euros, increasing by 13.6%. The operating result was 3.58 (2.22) million euros,
13.1% (9.2%) of net sales. Earnings per share were 0.15 (0.08) euros.
Net sales for the second quarter amounted to 14.48 (11.86) million euros,
increasing by approximately 22%. The operating result for the quarter was 2.10
(0.98) million euros, or 14.5% (8.3%) of net sales.
Ari Kohonen, President and CEO, comments on the reporting period:
- Net sales and operating result for the second quarter increased considerably,
which seems to be a continuation of the favorable trend observed in the first
quarter. Net sales and especially operating result for the first half of the
year increased clearly. Our future outlook is positive after several rather
challenging quarters.
- Our main business area, Building & Construction, increased its net sales by
nearly 16 percent during the reporting period, and its operating result was
twice as high as for the comparison period in 2009. The growth of license sales
was approximately 30 percent. The business area's net sales increased
considerably in the second quarter, while its operating result tripled. The
growth of license sales in the quarter was boosted by additional sales to
existing customers.
- Asia and the Nordic countries were the most successful market areas. The
United States continues as Tekla's largest individual market, but the gap to the
next ones narrowed during the first half of the year. India, Saudi Arabia and
Japan are examples of successful markets.
- Net sales of the Infra & Energy business area increased by 8 percent during
the reporting period, but its operating result decreased slightly. I&E's
full-year outlook continues to be better than last year.
- During the second quarter, the number of personnel increased by 19 persons,
amounting to 473 at the end of the reporting period. Compared to the beginning
of the year, we had seven more employees at the end of June.
The Board of Directors is increasing its full-year net sales and operating
result outlook. Net sales are expected to increase by approximately 15 percent
on the year before and the operating result percentage to be 15 to 20 percent.
The previous outlook issued in February expected a moderate increase in net
sales and operating result in 2010.
- - -
Tekla will organize an information meeting for analysts and media at WTC
Helsinki (meeting room 2), Aleksanterinkatu 17, on August 6, 2010 at 11:30 a.m.
- 12:30 p.m. A conference call in English will take place on the same day at
3:30 p.m. Finnish time. The telephone number is +358 9 231 44 877, code:
160305#.
- - -
Tekla is an international software product company whose model-based software
solutions make customers' core processes more effective in building and
construction, energy distribution, infrastructure management and water supply.
Tekla has customers in nearly 100 countries. Tekla's net sales for 2009 were 50
million euros and operating result almost 7 million euros. International
operations accounted for more than 80% of net sales. Tekla Group currently
employs over 460 persons, of whom almost 200 are outside Finland. Tekla was
established in 1966, making it one of the longest operating software companies
in Finland.www.tekla.com
NET SALES AND PROFITABILITY
* Net sales of Tekla Group for January-June 2010 were 27.32 (24.05 in
January-June 2009) million euros.
* Net sales increased by 13.6%.
* Operating result was 3.58 (2.22) million euros.
* Operating result percentage was 13.1 (9.2).
* Earnings per share were 0.15 (0.08) euros.
* Return on investment was 29.6 (18.8) percent.
* Return on equity was 23.0 (12.2) percent.
FINANCIAL POSITION
* Cash flows from operating activities totaled 9.47 (7.85) million euros.
* Liquid assets amounted to 30.40 (27.74) million euros on June 30. The assets
have been invested in money market instruments with very low risk. Liquid assets
amounted to 26.65 (26.30) million euros on December 31.
* Equity ratio was 59.4 (62.1) percent.
* Interest-bearing debts were 0.12 (0.12) million euros.
* During the reporting period, changes in exchange rates had such an effect that
the weakening of the euro against several key invoicing currencies had a
slightly positive effect on net sales and operating result. The effect was
mainly seen in the second quarter.
OTHER KEY FIGURES
* International operations accounted for 78% (80%) of net sales.
* Personnel averaged 452 (458) for January-June.
* At the end of June, the number of personnel including part-time staff was 473
(463).
* At year's end, the number of personnel including part-time staff was 466
(464).
* Gross investments were 2.21 (1.16) million euros.
* Equity per share was 1.29 (1.18) euros.
* On the last trading day of June, trading closed at 6.80 (5.50) euros.
BUSINESS AREAS
NET SALES
Q1-2/ Q1-2/ Q1-4/
Million euros 2010 2009 Change 2009 Q2/2010 Q2/2009
----------------------------------------------------------------
Building & Construction 20.19 17.46 2.73 36.34 10.77 8.58
Infra & Energy 7.16 6.63 0.53 13.80 3.73 3.30
Sales between segments -0.03 -0.04 0.01 -0.07 -0.02 -0.02
----------------------------------------------------------------
Total 27.32 24.05 3.27 50.07 14.48 11.86
OPERATING RESULT Q1-2/ Q1-2/ Q1-4/
Million euros 2010 2009 Change 2009 Q2/2010 Q2/2009
----------------------------------------------------------------
Building & Construction 2.92 1.48 1.44 4.72 1.78 0.56
Infra & Energy 0.66 0.74 -0.08 2.08 0.32 0.42
Others 0.00 0.00 0.00 0.01 0.00 0.00
----------------------------------------------------------------
Total 3.58 2.22 1.36 6.81 2.10 0.98
GEOGRAPHICAL DISTRIBUTION OF NET SALES
Q1-2/2010 Q1-2/2009 2009
% % %
Finland 21.7 19.9 18.9
Rest of Europe 36.5 39.3 38.4
North America 13.4 16.3 17.5
Asia 23.9 20.1 19.8
Other countries 4.5 4.4 5.4
------------------------------------------------------
100.0% 100.0% 100.0%
Total (MEUR 27.32) (MEUR 24.05) (MEUR 50.07)
Building & Construction
Tekla's Building & Construction business area (B&C) develops and markets the
Tekla Structures software product. Designed for Building Information Modeling
(BIM), Tekla Structures is a 3D tool that integrates openly with other programs
and models imported from them, supporting all the phases of the construction
process. The software is a comprehensive solution for structural engineering,
design and production of steel structures and precast units, reinforced concrete
detailing as well as site and construction management.
Despite the building industry's challenging situation, Tekla's position as a
supplier of 3D modeling software is strong and the number of users are
increasing. Customers in the building industry are seeking tools that make their
operations more efficient, which is what Tekla's products are. Information
modeling is gaining a stronger foothold in structural design and other stages of
the building process. The benefits of information modeling are seen more clearly
in site management in particular.
Demand has fluctuated strongly in license-based sales. Particularly from fall
2008 onward, the development of the building industry was negative until the end
of 2009 in nearly all of Tekla's key market areas. Favorable development has
taken place in the demand this year, especially in several Asian countries.
The net sales of B&C amounted to 20.19 (17.46) million euros for January-June
2010. Net sales increased by 15.6% compared to the corresponding period the
previous year. The growth of license sales was approximately 30 percent.
Operating result was 2.92 (1.48) million euros. B&C's operating result
percentage was 14.5% (8.5%).
B&C's net sales increased considerably during the second quarter, to 10.77
(8.58) million euros. Operating result tripled and totaled 1.78 (0.56) million
euros, or 16.5% (6.5%) of net sales. The growth of license sales was boosted by
additional sales to existing customers during the quarter.
International operations accounted for 95% (96%) of B&C's net sales for
January-June 2010. Asia was the most successful market area. Sales also
developed favorably in the Nordic countries compared to the modest level of the
previous year. The United States continues as Tekla's largest individual market,
but the gap to the next ones narrowed during the first half of the year. India,
Saudi Arabia, Japan, Finland, Sweden, Indonesia, and Italy are examples of
successful markets.
It is very favorable for Tekla that the building industry's move to
information-model-based 3D processes from traditional 2D ways of working
continues. Because of this, the business area's long-term outlook continues to
be promising. Building Information Modeling (BIM) is consolidating its position
in the building industry. BIM means that the information of the product model is
transferred and shared between the parties of the construction process. This
expands the cooperation between the parties of the construction process. In
order to facilitate cooperation, the interoperability of software is increased
further and data exchange between software systems is improved, so that
customers are able to choose the product that is suited the best for a specific
task.
In April, Tekla announced that it had signed a framework agreement with the
Swedish company Sweco.
Tekla Structures' functionality for cast-in-place was selected as the "Most
Innovative Product" at the North American construction industry's annual "World
of Concrete" event in March.
During the first quarter, Tekla established a regional office in Singapore to
serve customers throughout Southeast Asia. At the same time, the product
development activity in Malaysia was transferred to Finland.
Measures against software piracy continued both by own efforts and in
cooperation with other parties, such as BSA. The efforts are bearing fruit, even
though piracy will probably never be eradicated completely.
The product development of Tekla Structures concentrated on development that
supports the advance of BIM, i.e., sharing and utilizing the models between the
parties. The annual main version of Tekla Structures was released at the
beginning of February 2010.
Infra & Energy
The Infra & Energy business area focuses on the development and sales of
model-based software solutions that support customers' core processes. Its key
customer industries (products in parentheses) are energy distribution (Tekla
Xpower), public administration (Tekla Xcity), as well as civil engineering and
water (Tekla Xstreet and Tekla Xpipe).
In the energy industry, information system acquisitions are strategic
investments for the companies. The economic recession has not had much effect on
these investments. Climate change and the strive toward sustainable development
set new requirements for the industry, e.g., with new energy production methods
becoming more common and partial decentralization of production. In addition,
consumers' demands for the reliability of distribution and energy
consumption-related customer service will increase. New technologies, smart
grids and software solutions hold a key role in achieving these objectives.
Tekla's market position as a supplier of energy distribution information systems
is strong in the Nordic and Baltic countries.
In public administration, the tightening economy has decreased income and funds
available for investments. Improved and more extensive utilization of
information technology is seen to be a key solution for achieving efficiency,
self-services and thereby cost-savings. Citizens' services are being extensively
migrated into the Web, and the accessibility of the services can also be
improved this way. Tekla's sales and market position remained strong in Finland.
The net sales of I&E amounted to 7.16 (6.63) million euros for January-June
2010. The business area's net sales increased by 8 percent. I&E's operating
result was 0.66 (0.74) million euros. I&E's operating result percentage was
9.2% (11.2%). International operations accounted for 33% (39%) of net sales.
Net sales for the second quarter amounted to 3.73 (3.30) million euros, and
operating result was 0.32 (0.42) million euros, or 8.6% (12.7%) of net sales.
The full-year outlook for I&E continues to be better than last year.
An agreement was signed with Vattenfall Lämpö Oy on the implementation of the
Tekla Xpower district heating solution. Agreements on district heating systems
were also made with a Norwegian and a Swedish customer.
An agreement was signed with the City of Kuopio on the implementation of the
Tekla Xcity system as the core solution for the city's geographic information
management. The adoption of e-service solutions expanded in Finnish cities.
New agreements on the further development of Tekla Xcity have been made with key
customers. With regard to e-services, a feedback system (ePalaute) and a service
for plot marketing and sales (eTontti) were completed.
PERSONNEL
Tekla Group personnel averaged 452 (458) for January-June 2010; on average 185
(190) worked outside Finland. In these figures, the number of part-time staff
has been converted to correspond to full-time work contribution. At the
beginning of the year, Tekla personnel totaled 466 (464) including part-time
staff, of whom 192 (189) worked outside Finland, and at the end of June 473
(463), of whom 186 (190) worked outside Finland.
During the second quarter, the number of personnel increased by 19 persons. This
figure includes replacements for employees who left Tekla in the first quarter,
temporary personnel and additional recruitments due to the improved business
outlook. Compared to the beginning of the year, there were seven more employees
at the end of June. The long-term personnel trend is a growing one in order to
be able to take advantage of the market potential in sight.
SHARE AND OWNERSHIP STRUCTURE
Shares and share capital
The total number of Tekla Corporation shares at the end of June 2010 was
22,586,200, of which the company owned 96,600. The total book counter value of
those was 2,898 euros representing 0.43% of the company's shares. A total of
652,479.02 euros had been used for acquiring the company's own shares, and their
market value was 656,880 euros on June 30, 2010. The book counter value of the
share is 0.03 euros. At the end of the period, share capital stood at 677,586
euros.
Transfer of treasury shares
Based on the authorization issued by the Annual General Meeting of 2010, a total
of 73,000 treasury shares were transferred as part of the purchase price when
Tekla acquired a 20% share in Construsoft Groep BV at the beginning of May.
Construsoft has been a reseller of Tekla products in several countries for 15
years.
Share price trends and trading
The highest quotation of the share in January-June 2010 was 8.26 (5.95) euros,
the lowest 6.30 (3.40) euros. The average quotation was 6.96 (4.23) euros. On
the last trading day of June, trading closed at 6.80 (5.50) euros.
A total of 2,702,218 (1,519,545) Tekla shares changed hands in January-June
2010 at NASDAQ OMX Helsinki Ltd, amounting to 12% (6.7%) of the entire share
capital.
Nominee registered and foreign owners held 19.3% (24.9%) of all shares at the
end of June 2010.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
Possible risks and uncertainty factors associated with Tekla's business are
mainly related to the market and competition situation and the general economic
situation. Trends in the building industry have improved in several market
areas, but the development is incoherent. There is no certainty of the continued
favorable development of the global economy.
A majority of Tekla's net sales comprises of sales of licenses entitling to use
software products. Fluctuation in their demand can be rapid and significant. In
the short term and with rapidly decreasing demand, it is challenging to
proportion fixed personnel expenses, which account for the majority of Tekla's
costs. Tekla is, however, able to react swiftly to growing demand, and profits
from additional sales are good.
The sales of Tekla software are geographically distributed. In addition,
individual customers do not account for a significant share of net sales, and
therefore such risks are not essential.
ANNUAL GENERAL MEETING
Tekla Corporation's Annual General Meeting was held on April 8, 2010. The AGM
adopted Tekla Corporation's financial statements and consolidated financial
statements for 2009. It also discharged the CEO and the Board members from
liability. The AGM accepted the Board's proposal whereby a dividend of 0.20
euros per share be distributed for 2009, or a total of 4,483,320 euros. The
dividend payment date was April 20, 2010.
Ari Kohonen, Olli-Pekka Laine (Vice Chair), Heikki Marttinen (Chair), Erkki
Pehu-Lehtonen and Reijo Sulonen were re-elected Board members until the
conclusion of the Annual General Meeting in 2011. Timo Keinänen was re-elected
deputy member of the Board. Juha Kajanen will continue as the Tekla personnel
representative on the Board with Kirsi Hakkila as his personal deputy.
Ernst & Young Oy, Authorized Public Accountants, was re-elected as company
auditor, with Erkka Talvinko, Authorized Public Accountant, as the auditor in
charge.
The AGM decided on reducing the share premium account shown on the company's
balance sheet of December 31, 2009 by transferring all the funds in the share
premium account to the invested non-restricted equity fund.
The AGM authorized the Board to increase the company's share capital and acquire
or transfer the company's treasury shares. The authorizations are valid until
the next Annual General Meeting, however not later than April 30, 2011.
The Board of Directors has exercised the authorization to transfer treasury
shares at the beginning of May. This has been discussed under "Share and
ownership structure" in this report.
OUTLOOK FOR 2010
Tekla's future outlook is positive. This notion is also supported by the
favorable development of net sales and operating result during the first half of
2010 after several rather challenging quarters.
The Board of Directors is increasing its full-year net sales and operating
result outlook. Net sales are expected to increase by approximately 15 percent
on the year before and the operating result percentage to be 15 to 20 percent.
The previous outlook issued in February expected a moderate increase in net
sales and operating result in 2010.
NEXT FINANCIAL REPORT
Unlike previously announced, Tekla's Interim report for January-September 2010
will be published on Wednesday, November 3, 2010. The previously announced date
was Friday, October 22, 2010.
Espoo, August 5, 2010
TEKLA CORPORATION
Board of Directors
For additional information, please contact:
Ari Kohonen, President and CEO, Tel. +358 50 641 24,
Timo Keinänen, CFO, Tel. +358 400 813 027
firstname.lastname@tekla.com
Distribution: NASDAQ OMX Helsinki Ltd, main media
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
CONSOLIDATED INCOME STATEMENT
Q1-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2/
Million euros 2010 2009 2009 2010 2009
Net sales 27.32 24.05 50.07 14.48 11.86
Other operating income 0.25 0.13 0.33 0.12 0.05
Change in inventories of finished
goods and in work in progress -0.02 0.00 0.07 -0.05 0.04
Raw materials and consumables
used -1.00 -1.09 -2.11 -0.56 -0.47
Employee compensation and
benefit expense -15.46 -14.24 -27.96 -8.12 -7.11
Depreciation -0.86 -0.75 -1.57 -0.44 -0.40
Other operating expenses -6.68 -5.88 -12.02 -3.36 -2.99
Share of results in associated
companies 0.03 0.03
Operating result 3.58 2.22 6.81 2.10 0.98
% of net sales 13.10 9.23 13.60 14.50 8.26
Financial income 1.47 1.26 2.01 0.68 0.37
Financial expenses -0.75 -0.86 -1.56 -0.37 -0.25
Profit (loss) before taxes 4.30 2.62 7.26 2.41 1.10
% of net sales 15.74 10.89 14.50 16.64 9.27
Income taxes -0.91 -0.88 -2.02 -0.52 -0.40
Result for the period 3.39 1.74 5.24 1.89 0.70
Attributable to:
Owners of the parent 3.39 1.74 5.24 1.89 0.70
Earnings per share for profit
attributable to the owners of the
parent (EUR) 0.15 0.08 0.23 0.08 0.03
Earnings are not diluted.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Q1-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2/
Million euros 2010 2009 2009 2010 2009
Result for the period 3.39 1.74 5.24 1.89 0.70
Other comprehensive income for
the period, net of tax:
Transl. differences -0.24 0.07 0.08 0.01 -0.02
Changes in available-for-sale
investments -0.03 -0.01 -0.15 0.04 0.02
Total -0.27 0.06 -0.07 0.05 0.00
Total comprehensive income for
the period 3.12 1.80 5.17 1.94 0.70
Attributable to:
Owners of the parent 3.12 1.80 5.17 1.94 0.70
CONDENSED BALANCE SHEET
Million euros 6/2010 6/2009 12/2009
Assets
Non-current assets
Property, plant and equipment 1.44 1.55 1.42
Goodwill 0.20 0.19 0.19
Intangible assets 2.10 2.19 2.03
Investments in associated
companies 1.30
Other financial assets 1.13 3.38 1.64
Receivables 0.54 0.20 0.36
Deferred tax assets 0.74 0.16 0.44
Non-current assets, total 7.45 7.67 6.08
Current assets
Inventories 0.09 0.03 0.11
Trade and other current receivables 12.19 9.80 9.74
Tax receivables 0.14 1.12 0.13
Other financial assets 23.45 19.75 20.04
Cash and cash equivalents 5.98 4.96 5.13
Current assets, total 41.85 35.66 35.15
Assets total 49.30 43.33 41.23
Equity and liabilities
Equity
Share capital 0.68 0.68 0.68
Share premium account 8.89 8.89 8.89
Other own capital 1.80 1.93 1.80
Retained earnings 17.68 15.03 18.53
Equity total 29.05 26.53 29.90
Non-current liabilities
Deferred tax liabilities 0.09 0.09 0.10
Interest-bearing liabilities 0.03 0.09 0.08
Non-current liabilities total 0.12 0.18 0.18
Current liabilities
Trade and other payables 20.00 16.57 11.05
Tax liabilities 0.04 0.02 0.04
Current interest-bearing liabilities 0.09 0.03 0.06
Current liabilities total 20.13 16.62 11.15
Liabilities total 20.25 16.80 11.33
Equity and liabilities total 49.30 43.33 41.23
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the owners of the parent
Share Fair Acc.
Share prem. Other value transl. Ret.
capital acct funds res. diff. earn. Total
Equity January 1, 2009 0.68 8.89 1.33 0.24 -0.53 19.72 30.33
Payment of dividend -5.60 -5.60
Transfer from retained
earnings 0.83 -0.83 0.00
Total comprehensive
income for the period -0.01 0.07 1.74 1.80
Equity June 30, 2009 0.68 8.89 1.33 0.23 0.37 15.03 26.53
Attributable to the owners of the parent
Share Fair Acc.
Share prem. Other value transl. Ret.
capital acct funds res. diff. earn. Total
Equity January 1, 2010 0.68 8.89 1.33 0.09 0.38 18.53 29.90
Payment of dividend -4.48 -4.48
Transfer of treasury
shares May 7, 2010 0.27 0.24 0.51
Total comprehensive
income for the period -0.03 -0.24 3.39 3.12
Equity June 30, 2010 0.68 8.89 1.60 0.06 0.14 17.68 29.05
CONDENSED CASH FLOW STATEMENT
Q1-Q2/ Q1-Q2/ Q1-Q4/
Million euros 2010 2009 2009
Net cash flows from operating
activities 9.47 7.85 6.89
Cash flows from investing activities:
Investments -0.94 -1.16 -1.71
Sale of intangible assets and
property, plant and equipment 0.22
Purchases of available-for-sale
financial assets -26.21 -23.34 -33.16
Proceeds from sale of available-for-
sale financial assets 21.77 19.87 32.82
Acquisition of associated companies -0.40
Interests received from available-
for-sale financial assets 0.16 0.38 0.72
Net cash used in/from investing
activities -5.62 -4.25 -1.11
Cash flows from financing activities:
Payment of dividend -4.48 -5.60 -5.60
Payments of finance lease liabilities -0.02 -0.02 -0.04
Net cash used in financing activities -4.50 -5.62 -5.64
Net decrease/increase in cash and
cash equivalents -0.65 -2.02 0.14
Cash and cash equivalents at
beginning of the period 7.12 6.98 6.98
Cash and cash equivalents at end
of the period 6.47 4.96 7.12
The cash and cash equivalents in
the cash flow statement include:
Cash and cash equivalents 5.98 4.96 5.13
Available-for-sale financial assets,
cash equivalents 0.49 0.00 1.99
NOTES TO THE INTERIM REPORT
The notes are presented in millions of euros, unless otherwise stated.
This interim report has been prepared in accordance with the IAS 34 (Interim
Financial Reporting) standard. The same accounting and valuation policies and
methods of computation have been followed in the interim report as in the annual
financial statements for 2009. The amendments and interpretations to published
standards as well as new standards, effective January 1, 2010, are presented in
detail in the financial statement for 2009.
The figures presented in the interim report are unaudited.
Use of estimates
When preparing the interim report, the Group's management is required to make
estimates and assumptions influencing the content of the interim report, and it
must exercise its judgment regarding the application of accounting policies.
Although these estimates are based on the management's best knowledge, actual
results may ultimately differ from the estimates used in the interim report. Tax
losses carried forward are recognized as deferred tax assets only to the extent
that it is probable that future taxable profits will be available against which
unused tax losses can be utilized. Actual results could differ from those
estimates.
Segment information
Net sales by business area
Q1-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2
Million euros 2010 2009 2009 2010 2009
Building & Construction 20.19 17.46 36.34 10.77 8.58
Infra & Energy 7.16 6.63 13.80 3.73 3.30
Net sales between
segments -0.03 -0.04 -0.07 -0.02 -0.02
Total 27.32 24.05 50.07 14.48 11.86
Operating result by business area
Q1-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2
Million euros 2010 2009 2009 2010 2009
Building & Construction 2.92 1.48 4.72 1.78 0.56
Infra & Energy 0.66 0.74 2.08 0.32 0.42
Others 0.01
Total 3.58 2.22 6.81 2.10 0.98
Financial indicators
Q1-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2
2010 2009 2009 2010 2009
Earnings per share
(EPS),
EUR 0.15 0.08 0.23 0.08 0.03
Equity/share, EUR 1.29 1.18 1.33
Interest-bearing
liabilities 0.12 0.12 0.13
Equity ratio, % 59.4 62.1 73.1
Net gearing, % -100.8 -92.6 -83.7
Return on investment, % 29.6 18.8 24.5 32.3 17.1
Return on equity, % 23.0 12.2 17.4 24.9 10.6
Number of shares, at 22,489,600 22,416,600 22,416,600
end of
the period
Number of shares, on 22,438,782 22,416,600 22,416,600
average
Gross investments, MEUR 2.21 1.16 1.71 1.92 0.49
% of net sales 8.09 4.82 3.42 13.26 4.13
Personnel, on average 452 458 456 452 457
Consolidated income statement by quarter
Q2/ Q1/ Q4/ Q3/ Q2/
Million euros 2010 2010 2009 2009 2009
Net sales 14.48 12.84 14.29 11.73 11.86
Other operating income 0.12 0.13 0.14 0.06 0.05
Change in inventories
of
finished goods and in
work in
progress -0.05 0.03 0.03 0.04 0.04
Raw materials and
consumables used -0.56 -0.44 -0.69 -0.33 -0.47
Employee compensation
and
benefit expense -8.12 -7.34 -7.60 -6.12 -7.11
Depreciation -0.44 -0.42 -0.41 -0.41 -0.40
Other operating
expenses -3.36 -3.32 -3.56 -2.58 -2.99
Share of results in
associated companies 0.03
Operating result 2.10 1.48 2.20 2.39 0.98
% of net sales 14.50 11.53 15.40 20.38 8.26
Financial income 0.68 0.79 0.44 0.31 0.37
Financial expenses -0.37 -0.38 -0.33 -0.37 -0.25
Profit (loss) before
taxes 2.41 1.89 2.31 2.33 1.10
% of net sales 16.64 14.72 16.17 19.86 9.27
Income taxes -0.52 -0.39 -0.56 -0.58 -0.40
Result for the period 1.89 1.50 1.75 1.75 0.70
Acquired operations
Tekla Corporation reinforced its collaboration with the Dutch reseller
Construsoft Groep BV by acquiring 20% of its shares on May 3, 2010. Construsoft
has been a reseller of Tekla products in several countries for 15 years.
Of the purchase price, 0.40 million euros was paid in cash. As part of the
purchase price, 73,000 treasury shares were transferred at a price of 7.03 euros
per share according to the market value on May 7, 2010, for a total price of
0.51 million euros. Tekla is obliged to pay an additional purchase price
depending on the result development of the acquired business in 2009-2011. The
additional purchase price estimated in the interim report is 0.36 million euros,
and any resulting liability will be due in 2012.
Consolidated result of associated companies and equity adjustment to investments
is 0.03 million euros. Had Construsoft Groep BV's figures been consolidated as
from the beginning of the financial period, Tekla's result would have been
approximately 0.01 million euros higher.
Total acquisition price
Consideration paid in cash 0.40
Transferred treasury shares 0.51
Additional purchase price 0.36
Total 1.27
Of the purchase price, 0.16 million euros were allocated to goodwill and 0.61
million euros to customer relationships in intangible assets, which are included
in the balance sheet value of the associated company according to the one-line
principle.
Income taxes
Q1-Q2/ Q1-Q2/ Q1-Q4/
2010 2009 2009
Taxes for the financial period and
prior periods -1.22 -0.84 -2.28
Deferred taxes 0.31 -0.04 0.26
Total -0.91 -0.88 -2.02
Property, plant and equipment 6/2010 6/2009 12/2009
Cost at the beginning of the period 8.30 7.76 7.76
Translation differences 0.24 0.00 0.03
Additions 0.44 0.30 0.66
Disposals -0.58 -0.09 -0.15
Cost at the end of the period 8.40 7.97 8.30
Accumulated depreciation at the
beginning of the period 6.88 6.06 6.06
Translation differences 0.19 0.00 0.02
Accumulated depreciation on
disposals -0.56 -0.07 -0.08
Depreciation for the financial period 0.45 0.43 0.88
Accumulated depreciation at the
end of the period 6.96 6.42 6.88
Net book amount at the end of the
period 1.44 1.55 1.42
The investments consisted of normal acquisitions of hardware, software, and
equipment.
Provisions
The Group had no provisions in the reporting or comparison period.
Collaterals, contingent liabilities and other commitments
6/2010 6/2009 12/2009
Collaterals for own commitments
Business mortgages (as collateral for
bank guarantee limit) 0.50 0.50 0.50
Pledged funds 0.08 0.06 0.07
Leasing and rental agreement
commitments
Premises 3.99 5.11 4.63
Others 0.43 0.71 0.59
Total 4.42 5.82 5.22
Derivative contracts
Currency forward contracts:
Fair value -0.20 0.04 0.06
Nominal value of underlying
instruments 2.08 1.81 2.49
The Group makes derivative contracts to hedge against the exchange rate risks of
prospective sales agreements. Derivative contracts are stated at fair value, and
related foreign exchange gains and losses are recognized in the income
statement. The derivative contracts hedge sales in US dollars in accordance with
the Group policy.
Related party transactions 6/2010 6/2009 12/2009
Gerako Oy
Purchases of services 0.15 0.10 0.21
Management remuneration
Salaries and post-employment
benefits 0.59 0.73 1.27
Management herein refers to members of the Tekla Management Team.
[HUG#1436160]
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