2010-02-12 08:00:00 CET
2010-02-12 08:09:35 CET
REGULATED INFORMATION
Tekla - Financial Statement Release
Tekla Corporation's Financial Statements Bulletin January 1 - December 31, 2009: Year 2009 good considering the circumstances
Tekla Corporation Financial Statements Bulletin February 12, 2010 at 9:00 a.m.
Tekla Corporation's Financial Statements Bulletin January 1- December 31, 2009:
Year 2009 good considering the circumstances
Net sales of Tekla Group for January-December 2009 totaled 50.07 (58.90) million
euros, decreasing by 15%. The operating result was 6.81 (14.10) million euros,
13.6% (23.9%) of net sales. Earnings per share were 0.23 (0.49) euros. The
Board's dividend proposal to the Annual General Meeting is 0.20 euros per share.
Net sales for the fourth quarter amounted to 14.29 (15.80) million euros,
decreasing by 9.6%. The operating result for the quarter was 2.20 (3.63) million
euros, or 15.4% (23.0%) of net sales.
Ari Kohonen, President and CEO, comments on the reporting period:
- The slightly positive development continued during the fourth quarter. The
quarter saw the highest net sales of the year, similarly to previous years. Net
sales and profitability did fall short of the year before, but less than during
the previous quarters of the year. As for the year as a whole, the company's
profitability, cash flow and solvency can still be deemed good, especially in
view of the challenging operating environment.
- As we have mentioned before, there is still reason to be cautious in
estimating the future. The global economy is on the verge of recovery, but there
is still no certainty of the beginning of the actual upturn. Our customers have
not reported an improvement in their business performance either. No fundamental
changes have taken place in the demand situation, but some cautious positive
signs can be seen.
- The net sales of our main business area, Building & Construction, for the
fourth quarter were slightly better than during the first three quarters. The
operating result fell considerably short of the year before, as the cost savings
achieved during the year did not have an equally strong impact on the result for
the fourth quarter. Full-year net sales and operating result were considerably
lower than the year before. Nevertheless, the operating result and its level
(13.0%) can be considered good in the difficult conditions.
- The longer-term outlook of the business area continues to be promising as the
building industry is utilizing information models more and more extensively.
Customers show great interest in Building Information Modeling (BIM), and the
BIM trend is a strong one in the industry.
- In terms of market areas, license sales increased during the fourth quarter in
North America, India and France. As for the year as a whole, sales trends were
negative in India, Western Europe, the UAE and the Nordic countries among
others. License sales increased in China and Indonesia among others. The most
promising among the potential markets is South America.
- The Infra & Energy business area succeeded in increasing its net sales and
operating result on an annual level, with which we are very pleased. The fourth
quarter was by far the best during the year, similarly to several previous
years. The operating result percentage was 15.1, which we consider good in the
prevailing business environment.
- The number of personnel remained at the same level during the fourth quarter
and the year as a whole. The average number of personnel during the entire year
increased by 26 persons on the previous year. Nevertheless, total expenses were
slightly lower compared to the year before. The lower costs were due to cost
control and result-based bonus level adapted to profitability.
The rate of the recovery of the global economy has a major impact on the
development of Tekla's net sales, but foreseeing it is naturally difficult. At
this stage, the Board of Directors estimates both net sales and operating profit
to increase moderately.
NET SALES AND PROFITABILITY
* Net sales of Tekla Group for January-December 2009 were 50.07 million euros
(58.90 million euros in January-December 2008).
* Net sales decreased by 15%.
* Operating result was 6.81 (14.10) million euros.
* Operating result percentage was 13.6 (23.9).
* Earnings per share were 0.23 (0.49) euros.
* Return on investment was 24.5 (49.0) percent.
* Return on equity was 17.4 (35.4) percent.
FINANCIAL POSITION
* Cash flow from operating activities totaled 6.89 (9.51) million euros.
* Liquid assets amounted to 26.65 (26.30) million euros on December 31.
The assets have been invested in money market instruments with very low risk.
* Equity ratio was 73.1 (68.4) percent.
* Interest-bearing debts were 0.13 (0.12) million euros.
* Net effects of changes in exchange rates on net sales and operating result
were small.
OTHER KEY FIGURES
* International operations accounted for 81.1% (82.9%) of net sales.
* Personnel averaged 456 (430) for January-December.
* At year's end, the number of personnel including part-time staff was 466
(464).
* Research and product development expenses amounted to 28.9 (25.7) percent of
net sales.
* Gross investments in property, plant and equipment were 1.71 (2.02) million
euros.
* Equity per share was 1.33 (1.35) euros.
* On the last trading day of December, trading closed at 6.35 (3.73) euros.
* The Board's dividend proposal for 2009 is 0.20 euros per share.
BUSINESS AREAS
NET SALES BY BUSINESS AREA
Q1-Q4/ Q1-Q4/ Change Q4/ Q4/
Million euros 2009 2008 2009 2008
Building & Construction 36.34 46.07 -9.73 9.90 11.35
Infra & Energy 13.80 12.95 0.85 4.41 4.50
Net sales between segments -0.07 -0.12 0.05 -0.02 -0.05
-------------------------------------------------------------
Total 50.07 58.90 -8.83 14.29 15.80
OPERATING RESULT BY BUSINESS AREA
Q1-Q4/ Q1-Q4/ Change Q4/ Q4/
Million euros 2009 2008 2009 2008
Building & Construction 4.72 12.13 -7.41 1.05 2.36
Infra & Energy 2.08 1.97 0.11 0.95 1.26
Others 0.01 0.00 0.01 0.20 0.01
--------------------------------------------------------
Total 6.81 14.10 -7.29 2.20 3.63
GEOGRAPHICAL DISTRIBUTION OF NET SALES
Million euros 2009 2008
Finland 9.44 10.10
Rest of Europe 19.22 22.80
North America 8.79 10.02
Asia 9.93 12.73
Other countries 2.69 3.25
-----------------------------
Total 50.07 58.90
BREAKDOWN OF NET SALES BY CATEGORY*)
Building Infra
% of && Tekla
net sales Construction Energy total
2009 2008 2009 2008 2009 2008
Licenses 47 59 18 17 39 50
Recurring 48 37 52 51 49 40
Services 5 4 16 18 8 7
Others 0 0 14 14 4 3
------------------------------------------------
Total 100 100 100 100 100 100
*) Net sales categories:
- License: license to use the sold product version
- Recurring: maintenance income (includes annual product versions and customer
support), subscriptions and SaaS
- Services: implementation support, training and consultation
- Others: e.g. customer- or customer group-specific product projects
BUSINESS AREAS
Building & Construction
Tekla's Building & Construction business area (B&C) develops and markets the
Tekla Structures software product for information model-based design of steel,
concrete and other structures as well as the management of fabrication and
construction.
Demand fluctuates strongly in our license-based sales. Particularly from fall
2008 onward, the development of the building industry has been negative in all
of Tekla's key market areas. Uncertainty of financing has added to the problems,
and this is particularly seen in new larger projects. The general economic
uncertainty continues to affect customers' investments, making their
decision-making times longer and postponing the start-up of projects into the
future. It seems that pent-up demand is piling up in the market. At the moment,
there are cautious signs of a revival in sight.
Despite the building industry's challenging situation, Tekla's position as a
supplier of 3D modeling software is strong and the numbers of users are on the
increase. Customers in the building industry are seeking tools that make their
operations more efficient, which is what Tekla's products are. Information
modeling is strengthening its 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.
Instead of large one-off sales, software continues to be purchased in smaller
batches. However, many of the purchases are strategic with customers preparing
for the information-model-based way of working. New customers account for an
increasing proportion of sales, which is a positive sign of interest in Tekla's
expanding product offering.
The net sales of B&C amounted to 36.34 (46.07) million euros for
January-December 2009. Net sales decreased by approximately 21% compared to the
previous year. Operating result was 4.72 (12.13) million euros. B&C's operating
result percentage for 2009 was 13.0% (26.3%). The operating result and its level
can be considered good in view of the difficult circumstances. B&C's maintenance
revenue increased, and with the decreasing license sales the proportional and
balancing importance of maintenance increased.
During the fourth quarter, B&C's net sales amounted to 9.90 (11.35) million
euros, decreasing by 12.8%. B&C's operating result for October-December was
1.05 (2.36) million euros and operating result percentage was 10.6% (20.8%). Net
sales for the fourth quarter were slightly better than for the previous quarters
of the year thanks to license sales. The operating result fell considerably
short of the year before, as the cost savings achieved during the year did not
have an equally strong impact on the result for the fourth quarter. Towards the
end of the year, Tekla secured a potentially significant new customer account in
the United States.
International operations accounted for 96% (95%) of B&C's net sales in
January-December 2009. In terms of market areas, license sales increased during
the fourth quarter in North America, India and France. As for the year as a
whole, sales trends were negative in India, Western Europe, the UAE and the
Nordic countries among others. License sales increased in China and Indonesia
among others. The most promising among the potential markets is South America.
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. This development is supported by the fact that the number of
training licenses intended for educational institutions has increased
noticeably.
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 involved in the building
process. In order to facilitate cooperation, the interoperability of software is
increased and data exchange between software systems is improved. This way
customers are able to choose the product that is suited the best for a specific
task. Examples of this are the cooperation agreements signed by Tekla during the
latter half of the year with MAP Software (in August), Graphisoft (in September)
and Nemetschek (in October).
Measures against software piracy continued both by own efforts and in
cooperation with BSA. It seems that the efforts are bearing fruit, even though
piracy will hardly be eradicated completely.
In July, Tekla opened an office in Bangkok, Thailand, for B&C's customer support
functions. A corresponding office was opened in Jakarta, Indonesia, in February.
In April, Tekla purchased the business operations of 3-Design LLC, a small
producer of general engineering software. The primary customer base consists
mainly of engineering offices operating in the UK market.
Tekla and Rautaruukki signed a cooperation agreement in April. Tekla Structures
BIM software will be used for structural steel design in almost all countries in
which Rautaruukki's construction division has a presence.
In March, Tekla and UK-based Fisher Engineering signed a frame agreement to
replace all of Fisher's current structural design and detailing software
licenses with Tekla Structures licenses over the next two years.
Tekla and Dutch machine tool manufacturer HGG signed an agreement on continued
cooperation during the first months of the year. The aim is to develop a
standardized software solution for the steel tube industry in Tekla Structures.
These are widely used e.g. in the off-shore industry.
At the end of the year, the product development of Tekla Structures concentrated
on developing the work flow, in situ concrete design and IFC data. The annual
main version with these improvements 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), water (Tekla Xpipe) as well as
civil engineering (Tekla Xstreet).
In the energy industry, information system acquisitions are strategic
investments for the companies. The economic recession has not had much effect on
these investments. Tekla's market position as a supplier of network information
systems is strong in the Nordic and Baltic countries.
In public administration, the economic crunch has decreased income and funds
available for investments. However, information systems provide additional
productivity, efficiency and self-service and therefore cost-savings. Decreased
financial resources have slowed down the development of the municipal sector,
and preparation times of investments have become longer. Tekla's sales and
market position remained strong in Finland.
The net sales of I&E amounted to 13.80 (12.95) million euros for
January-December 2009, increasing by 6.6% during the year. I&E's operating
result was 2.08 (1.97) million euros. The business area succeeded in increasing
its net sales and operating result on an annual level, with which we are very
pleased. I&E'soperating result percentage was 15.1% (15.2%), which is considered
good in the prevailing business environment. International operations accounted
for 42% (39%) of net sales.
I&E's net sales for the October-December amounted to 4.41 (4.50) million euros
and operating result was 0.95 (1.26) million euros. The operating result
percentage was 21.5% (28.0%). The fourth quarter was by far the best during the
year, similarly to several previous years.
At the end of the year, Vattenfall Central Europe decided to expand the use of
Tekla Xpower in Berlin and Hamburg. Vattenfall's goal is to enter full
production use of the system in Berlin gradually during 2010. System coverage
will also be expanded in Hamburg, where Tekla Xpower has been in use for
approximately ten years.
During the year, strategic cooperation has been tightened with several key
customers in the energy industry. This can be seen as further development
projects of the solutions for instance, involving Vattenfall Verkko (Finland),
Helsinki Energy and Eesti Energia among others.
Tekla is participating in the Smart Grids and Energy Markets research program
started in fall 2009. The program aims to develop technologies and operating
models for building an electricity distribution network that meets future needs.
The five-year program has three themes: management of the smart electricity
network, active resources and the infrastructure of the future of energy
distribution.
Latvenergo expanded the use of Tekla Xpower, and the distribution management
system covers the management of the entire Latvian distribution network. The
system integration for Eesti Energia Jaotusvõrk OÜ as well as the support for
the European network calculation standard (IEC standard) were completed.
Tekla Xcity's offering has been expanded in the area of electronic
infrastructure management services. With regard to water supply and district
heating, the first customers adopted operation support applications developed by
Tekla in Finland and Sweden.
The user base of Tekla solutions expanded in Finland due to both the merging of
municipalities and the expansion of regional solutions. In addition, solutions
based on the SaaS concept were implemented in minor energy companies and the
management of urban outdoor lighting networks.
PERSONNEL
The Group personnel averaged 456 (430) in January-December 2009; on average 189
(174) worked outside Finland. In these figures, the number of part-time staff
has been converted to correspond to full-time work contribution. At the end of
the year, Tekla personnel totaled 466 (464) including part-time staff, of whom
192 (189) worked outside Finland.
The average age of Tekla's employees was 37.8 (37.0) years. Of the personnel,
64% (64%) had a higher academic degree or university-level studies. 29% (29%) of
Tekla employees were female, 71% (71%) male. The turnover of personnel was low,
3.8% (6.6%).
The company has an incentive system that covers all employees. Its level is
decided by the Board of Directors. Compensation is linked to the operational
and, in particular, financial performance during the previous year. Tekla has no
share option programs.
SHARE AND OWNERSHIP STRUCTURE
Shares and share capital
The total number of Tekla Corporation shares at the end of December 2009 was
22,586,200, of which the company owned 169,600. The total book counter value of
those was 5,088 euros, representing 0.75% of the company's shares and the total
number of votes. A total of 898,212.35 euros had been used for acquiring the
company's own shares, and their market value was 1,076,960 euros on December
31, 2009. The book counter value of the share is 0.03 euros. At the end of the
period, share capital stood at 677,586 euros.
Share price trends and trading
The highest quotation of the share in January-December was 7.88 (13.00) euros,
the lowest 3.40 (3.25) euros. The average quotation was 5.56 (8.32) euros. On
the last trading day of December, trading closed at 6.35 (3.73) euros.
A total of 4,419,355 (6,879,065) Tekla shares changed hands in January-December
at NASDAQ OMX Helsinki Ltd, amounting to 19.6% (30.5%) of the entire share
capital.
Nominee registered and foreign owners held 22.46% (25.07%) of all shares at the
end of 2009.
Flagging Announcements
The holdings of Threadneedle Asset Management Holdings Limited and Ameriprice
Financial Inc decreased below the 10% threshold on September 17, 2009. According
to the notification, the holdings of Threadneedle and Ameriprice totaled
2,251,721 shares, which represents 9.969% of Tekla's shares and voting rights.
ANNUAL GENERAL MEETING
Tekla Corporation's Annual General Meeting on March 18, 2009 adopted Tekla
Corporation's financial statements and consolidated financial statements for
2008. The Annual General Meeting also discharged the CEO and the Board members
from liability. The AGM accepted the Board's proposal whereby a dividend of
0.25 euros per share was distributed for 2008 (total 5,604,150 euros). The
dividend payment date was March 30, 2009.
Ari Kohonen, Olli-Pekka Laine (Vice Chair), Heikki Marttinen (Chair), Erkki
Pehu-Lehtonen and Reijo Sulonen were elected Board members until the conclusion
of the Annual General Meeting in 2010. 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, were elected as the company's
new auditor, with Erkka Talvinko, Authorized Public Accountant, as the auditor
in charge.
The AGM authorized the Board to increase the company's share capital and acquire
or transfer the company's treasury shares. The above-mentioned authorizations
are valid until the next Annual General Meeting, however not later than April
30, 2010. The Board did not use its authorizations in 2009.
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 are weak in nearly all markets, and
this has had a negative impact on the demand for Tekla products.
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. Also individual
customers do not account for a significant share of net sales, and therefore
these risks are not substantial.
EVENTS AFTER THE REPORTING PERIOD
The holdings of Threadneedle Asset Management Holdings Limited and Ameriprice
Financial Inc decreased below the 5% threshold on January 21, 2010. According to
the notification, the holdings of Threadneedle and Ameriprice totaled 808,973
shares, which represents 3.582% of Tekla's shares and voting rights.
Tekla received the Internationalization Award 2009 at the beginning of February
2010. The objective of the award, presented by the President of the Republic of
Finland, is to encourage businesses in an international environment and to boost
their ability to develop and apply new operational models.
BOARD'S PROPOSAL FOR THE DISTRIBUTION OF PROFIT
The parent company's distributable assets are 23,279,611 euros, of which net
profit for the period amounts to 6,080,559 euros.
Tekla Corporation's Board will propose to the Annual General Meeting, to be held
on April 8, 2010, that a dividend of 0.20 euros per share be paid for the
financial period 2009 for a total dividend payout of 4,483,320 euros. No
dividends shall be paid on the 169,600 shares held by the company.
OUTLOOK FOR 2010
The rate of the recovery of the global economy has a major impact on the
development of Tekla's net sales, but foreseeing it is naturally difficult. At
this stage, the Board of Directors estimates both net sales and operating profit
to increase moderately.
FINANCIAL REPORTING
Tekla's Annual Report for 2009 will be published on the company's Web site on
the week of March 8, 2010.
Tekla Corporation's Interim report for January-March 2010 will be published on
Wednesday, May 5, 2010.
Espoo, February 11, 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 <mailto:firstname.lastname@tekla.com>
Distribution: NASDAQ OMX Helsinki Ltd, main media
- - -
Tekla will organize an information meeting for analysts and media at WTC
Helsinki (meeting room 2), Aleksanterinkatu 17, on February 12, 2010 at 12:30 -
1:30 p.m.
A conference call in English will take place on the same day at 3:00 p.m.
Finnish time. The telephone number is +358 30 661 1900, ID: 93378 and code:
6490.
- - -
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 <http://www.tekla.com/>
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
CONSOLIDATED INCOME STATEMENT
Q1-Q4/ Q1-Q4/ Change Q4/ Q4/ Change
Million euros 2009 2008 % 2009 2008 %
Net sales 50.07 58.90 -15.0 14.29 15.80 -9.6
Other operating income 0.33 1.01 0.14 0.32
Change in inventories of
finished goods and
in work in progress 0.07 -0.04 0.03 -0.12
Raw materials and
consumables used -2.11 -2.86 -0.69 -0.98
Employee compensation and
benefit expense -27.96 -27.84 -7.60 -7.41
Depreciation -1.57 -1.17 -0.41 -0.33
Other operating expenses -12.02 -13.90 -3.56 -3.65
Operating result 6.81 14.10 -51.7 2.20 3.63 -39.4
% of net sales 13.60 23.94 15.40 22.97
Financial income 2.01 2.44 0.44 0.74
Financial expenses -1.56 -1.39 -0.33 -0.31
Profit (loss) before taxes 7.26 15.15 -52.1 2.31 4.06 -43.1
% of net sales 14.50 25.72 16.17 25.70
Income taxes -2.02 -4.20 -0.56 -1.07
Result for the period 5.24 10.95 -52.1 1.75 2.99 -41.5
Attributable to:
Owners of the parent 5.24 10.95 1.75 2.99
Earnings per share for profit
attributable to the owners
of the parent (EUR) 0.23 0.49 0.08 0.13
Earnings are not diluted.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Q1-Q4/ Q1-Q4/ Change Q4/ Q4/ Change
Million euros 2009 2008 % 2009 2008 %
Result for the period 5.24 10.95 -52.1 1.75 2.99 -41.5
Other comprehensive income
for the period, net of tax:
Transl. differences 0.08 -0.07 0.00 0.06
Changes in available-for-
sale investments -0.15 -0.06 -0.18 -0.02
Total -0.07 -0.13 46.2 -0.18 0.04 -550.0
Total comprehensive income
for the period 5.17 10.82 -52.2 1.57 3.03 -48.2
Attributable to:
Owners of the parent 5.17 10.82 1.57 3.03
CONDENSED BALANCE SHEET
Million euros 12/2009 12/2008 Change
Assets %
Non-current assets
Property, plant and
equipment 1.42 1.70
Goodwill 0.19 0.19
Intangible assets 2.03 1.64
Other financial assets 1.64 0.30
Receivables 0.36 0.26
Deferred tax assets 0.44 0.18
Non-current assets, total 6.08 4.27 42.4
Current assets
Inventories 0.11 0.03
Trade and other
receivables 9.74 13.87
Tax receivables 0.13 0.26
Other financial assets 20.04 19.99
Cash and cash equivalents 5.13 6.34
Current assets, total 35.15 40.49 -13.2
Assets total 41.23 44.76 -7.9
Equity and liabilities
Equity
Share capital 0.68 0.68
Share premium account 8.89 8.89
Other own capital 1.80 1.04
Retained earnings 18.53 19.72
Equity total 29.90 30.33 -1.4
Non-current liabilities
Deferred tax liabilities 0.10 0.08
Interest-bearing liabilities 0.08 0.08
Non-current liabilities tot. 0.18 0.16 12.5
Current liabilities
Trade and other payables 11.05 14.14
Tax liabilities 0.04 0.09
Current interest-bearing
liabilities 0.06 0.04
Current liabilities total 11.15 14.27 -21.9
Liabilities total 11.33 14.43 -21.5
Equity and liabilities total 41.23 44.76 -7.9
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the owners of the parent
Share Fair Acc
Share prem. Res. value transl Ret.
cap. acct fund res. diff. earn. Total
Equity January 1, 08 0.68 8.89 1.33 0.30 -0.46 20.71 31.45
Payment of dividend -11.26 -11.26
Acquisition of
own shares -0.68 -0.68
Total comprehensive
income for the period -0.06 -0.07 10.95 10.82
Equity December 31, 08 0.68 8.89 1.33 0.24 -0.53 19.72 30.33
Attributable to the owners of the parent
Share Fair Acc
Share prem. Res. value transl Ret.
cap. acct fund res. diff. earn. Total
Equity January 1, 09 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 -0.15 0.08 5.24 5.17
Equity December 31, 09 0.68 8.89 1.33 0.09 0.38 18.53 29.90
CONDENSED CASH FLOW STATEMENT
Q1-Q4/ Q1-Q4/ Change
Million euros 2009 2008 %
Net cash flows from operating
activities 6.89 9.51
Cash flows from investing activities:
Investments -1.71 -2.02
Sale of intangible assets and
property, plant and equipment 0.22 -0.01
Cash outflow on acquisition -0.15
Purchases of available-for-
sale financial assets -33.16 -52.84
Proceeds from sale of
available-for-sale financial assets 32.82 55.20
Interests received from
available-for-sale financial assets 0.72 1.05
Net cash used in/from investing
activities -1.11 1.23
Cash flows from financing activities:
Payment of dividend -5.60 -11.26
Own shares -0.68
Repayments of long-term debt -0.22
Payments of finance lease liabilities -0.04 -0.03
Net cash used in financing activities -5.64 -12.19
Net decrease/increase in cash and
cash equivalents 0.14 -1.45
Cash and cash equivalents at
beginning of the period 6.98 8.43 -17.2
Cash and cash equivalents at
end of the period 7.12 6.98 2.0
The cash and cash equivalents in the
cash flow statement include:
Cash and cash equivalents 5.13 6.34
Available-for-sale financial assets,
cash equivalents 1.99 0.64
NOTES TO THE FINANCIAL STATEMENTS
The notes are presented in millions of euros, unless otherwise stated.
The financial statements have 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 financial
statements as in the annual financial statements for 2008.
The amendments and interpretations to published standards as well as new standards, effective January 1, 2009, are presented in detail in
the financial statements for 2008. Tekla Corporation has
applied IFRS 8, Operating Segments, standard as of January 1, 2009.
The segment information has already previously been based on internal
reporting to the management, so the operating segments are the same as the
business segments according to IAS 14.
Tekla Corporation has also applied the revised standard IAS 1,
Presentation of Financial Statements, as of January 1, 2009, and this has
resulted in changes in the presentation of the income statement and the
consolidated statement of changes in equity.
The figures presented in the financial statements are unaudited.
Use of estimates
When preparing the financial statements, the Group's management is required
to make estimates and assumptions influencing the content of the financial
statements, 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 financial statements. 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-Q4/ Q1-Q4/ Change Q4/ Q4/
Million euros 2009 2008 % 2009 2008
Building & Construction 36.34 46.07 -21.1 9.90 11.35
Infra & Energy 13.80 12.95 6.6 4.41 4.50
Net sales between segments -0.07 -0.12 41.7 -0.02 -0.05
Total 50.07 58.90 -15.0 14.29 15.80
Operating result by business area
Q1-Q4/ Q1-Q4/ Change Q4/ Q4/
Million euros 2009 2008 % 2009 2008
Building & Construction 4.72 12.13 -61.1 1.05 2.36
Infra & Energy 2.08 1.97 5.6 0.95 1.26
Others 0.01 0.20 0.01
Total 6.81 14.10 -51.7 2.20 3.63
Financial indicators Q1-Q4/ Q1-Q4/ Q4/ Q4/
2009 2008 2009 2008
Earnings per share (EPS), EUR 0.23 0.49 0.08 0.13
Equity/share, EUR 1.33 1.35
Interest-bearing liabilities 0.13 0.12
Equity ratio, % 73.1 68.4
Net gearing, % -83.7 -86.3
Return on investment, % 24.5 49.0 32.5 56.5
Return on equity, % 17.4 35.4 24.0 41.5
Number of shares
at end of period 22416600 22416600
Number of shares,
on average 22416600 22485500
Gross investments, MEUR 1.71 2.02 0.25 0.95
% of net sales 3.42 3.43 1.75 6.01
Personnel, on average 456 430 455 454
Consolidated income statement by quarter
Q4/ Q3/ Q2/ Q1/ Q4/
Million euros 2009 2009 2009 2009 2008
Net sales 14.29 11.73 11.86 12.19 15.80
Other operating income 0.14 0.06 0.05 0.08 0.32
Change in inventories of
finished goods and in
work in progress 0.03 0.04 0.04 -0.04 -0.12
Raw materials and
consumables used -0.69 -0.33 -0.47 -0.62 -0.98
Employee compensation and
benefit expense -7.60 -6.12 -7.11 -7.13 -7.41
Depreciation -0.41 -0.41 -0.40 -0.35 -0.33
Other operating expenses -3.56 -2.58 -2.99 -2.89 -3.65
Operating result 2.20 2.39 0.98 1.24 3.63
% of net sales 15.40 20.38 8.26 10.17 22.97
Financial income 0.44 0.31 0.37 0.89 0.74
Financial expenses -0.33 -0.37 -0.25 -0.61 -0.31
Profit (loss) before taxes 2.31 2.33 1.10 1.52 4.06
% of net sales 16.17 19.86 9.27 12.47 25.70
Income taxes -0.56 -0.58 -0.40 -0.48 -1.07
Result for the period 1.75 1.75 0.70 1.04 2.99
Income taxes Q1-Q4/ Q1-Q4/
2009 2008
Taxes for the financial
period and prior periods -2.28 -4.37
Deferred taxes 0.26 0.17
Total -2.02 -4.20
Property,
plant and equipment 12/2009 12/2008
Cost at the beginning
of the period 7.76 7.20
Translation differences 0.03 -0.10
Additions 0.66 0.75
Disposals -0.15 -0.09
Cost at the end of the
period 8.30 7.76
Accumulated depreciation at
the beginning of the period 6.06 5.41
Translation differences 0.02 -0.10
Accumulated depreciation
on disposals -0.08 -0.06
Depreciation for the
financial period 0.88 0.81
Accumulated depreciation
at the end of the period 6.88 6.06
Net book amount at the end
of the period 1.42 1.70
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
12/2009 12/2008
Collaterals for own commitments
Business mortgages
(as collateral for bank
guarantee limit) 0.50 0.50
Pledged funds 0.07 0.06
Leasing and rental
agreement commitments
Premises 4.63 5.58
Others 0.59 0.71
Total 5.22 6.29
Derivative contracts
Currency forward contracts:
Fair value 0.06 -0.14
Nominal value of
underlying instruments 2.49 2.38
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
12/2009 12/2008
Gerako Oy
Purchases of services 0.21 0.21
Management remuneration
Salaries and post-employment
benefits 1.27 1.47
Management herein refers to members of the Tekla Management Team.
[HUG#1383793]
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