2009-02-06 08:00:24 CET
2009-02-06 08:01:06 CET
REGULATED INFORMATION
Tekla - Financial Statement Release
Tekla Corporation's Financial Statements Bulletin January 1 - December 31, 2008: Net sales at previous year's level - profitability was good
Tekla Corporation Stock Exchange Release February 6, 2009
at 9:00 a.m.
Tekla Corporation's Financial Statements Bulletin January 1 -
December 31, 2008:
Net sales at previous year's level - profitability was good
Net sales of Tekla Group for January-December 2008 totaled 58.90
(comparable net sales for 2007: 58.25) million euros. Growth in net
sales was approximately 1%. The operating result was 14.10 (17.90)
million euros, 23.9% (30.7%) of net sales. Earnings per share were
0.49 (0.60) euros. The Board's dividend proposal to the AGM is 0.25
euros per share.
Net sales for the fourth quarter were 15.80 (comparable net sales for
the corresponding period in 2007: 16.44) million euros, approximately
4% less than the year before. The operating result for the quarter
was 3.63 (4.99) million euros, 23.0% (30.4%) of net sales.
The comparable figures for 2007 have been calculated by excluding the
Defence business, which was divested in April 2007.
Ari Kohonen, President and CEO, comments on the reporting period:
- Tekla's net sales were at the previous year's level. Although our
operating result was less than the year before, our profitability was
still good and one of the best among Finnish listed companies.
- Sales in our main business area, Building & Construction, developed
with some difficulty after the favorable first quarters. Sales peak
that is normally generated at the end of December did not realize.
Our strong market position remained. The customers are cautious with
their investments, which makes their decision-making times longer and
postpones the start-up of projects until the general economic
situation clears up. Therefore, we believe that demand is building up
and accumulating in the market.
- The building industry commonly acknowledges that
information-model-based processes are more efficient than traditional
ways of working. The business area's product portfolio was developed
significantly, and a new product module for construction and site
management was launched toward the end of the year. Building
Information Modeling (BIM) is still gaining ground around the world.
- Of B&C's main markets, development was negative in the Nordic
countries and the United Kingdom due to the recession in the
construction industry. In North America, sales fell slightly short of
the year before, also in US dollars, due to the rather soft last
quarter. Sales developed favorably in Germany, the Middle East and
several other Asian countries. In 2008, the largest markets in terms
of net sales were North America, Western Europe, the Middle East and
India.
- B&C's net sales remained at the previous year's level. License
sales decreased by 5%, while maintenance sales increased by 11%.
Operating result for the year as a whole amounted to 26% of net
sales, which means that we maintained excellent profitability.
- Infra & Energy's business environment is stable. Some deferred
sales was seen, which made the business area's net sales and
operating result remain at the previous year's level. I&E's operating
result amounted to 15% of net sales, which can be considered very
satisfactory.
- The number of personnel increased by 64 during the year, mainly
during the first two quarters. The increases in personnel during the
latter half of the year focused on the customer interface in growing
markets. The majority of the additions made are investments to secure
future development.
As for this year, the Board of Directors has decided not to give
estimates on net sales in such an uncertain economic environment and
so early into the year. The economic recession will continue for the
time being, and its duration is unknown. Operating result will be
clearly lower in 2009 than 2008. The beginning of the year is
challenging in particular, as the comparable period in 2008 was
extremely good. Cost level and possible actions to ensure
profitability are continuously monitored.
- - -
TEKLA CORPORATION'S FINANCIAL STATEMENTS JANUARY 1 - DECEMBER 31,
2008
The figures for the comparison period have been presented for the
continuing businesses, i.e. comparable, excluding the figures for the
Defence business, which was divested in April 2007. Defence's figures
are presented in more detail in the tables of this report.
NET SALES AND PROFITABILITY
* Net sales of Tekla Group for January-December 2008 were 58.90
(comparable net sales 58.25 in January-December 2007) million euros.
* Growth in net sales was 1.1% (comparable).
* Operating result was 14.10 (comparable 17.90) million euros.
* Operating result percentage was 23.9% (comparable 30.7%).
* Earnings per share were 0.49 (comparable 0.60) euros.
* Return on investment was 49.0 (74.5) percent.
* Return on equity was 35.4 (55.4) percent.
FINANCIAL POSITION
* Cash flow from operating activities totaled 9.51 (13.55) million
euros.
* Liquid assets amounted to 26.30 (30.15) million euros on December
31, 2008. The assets have been invested in money market instruments
with very low risk.
* Equity ratio was 68.4 (67.5) percent.
* Interest-bearing debts were 0.12 (0.34) million euros.
OTHER KEY FIGURES
* International operations accounted for 82.9% (comparable 82.2%) of
net sales.
* Personnel averaged 430 (374) for January-December.
* At year's end, the number of personnel including part-time staff
was 464 (400).
* Research and product development expenses amounted to 25.7 (21.8)
percent of net sales.
* Gross investments in property, plant and equipment were 2.02 (1.66)
million euros.
* Equity per share was 1.35 (1.40) euros.
* On the last trading day of December, trading closed at 3.73 (12.70)
euros.
* Board's dividend proposal is 0.25 euros per share.
BUSINESS AREAS
NET SALES BY BUSINESS AREA (PRIMARY SEGMENT)
Q1-Q4/ Q1-Q4/ Change Q4/ Q4/
Million euros 2008 2007 2008 2007
Building & Construction 46.07 45.50 0.57 11.35 12.04
Infra & Energy 12.95 12.76 0.19 4.50 4.40
Defence *) 1.00 -1.00 0.00
Others 0.00 0.02 -0.02 0.00 0.00
Net sales between segments -0.12 -0.03 -0.09 -0.05 0.00
Total 58.90 59.25 -0.35 15.80 16.44
OPERATING RESULT BY BUSINESS AREA (PRIMARY SEGMENT)
Q1-Q4/ Q1-Q4/ Change Q4/ Q4/
Million euros 2008 2007 2008 2007
Building & Construction 12.13 15.96 -3.83 2.36 3.85
Infra & Energy 1.97 1.96 0.01 1.26 1.20
Defence *) 2.78 -2.78 0.25
Others 0.00 -0.02 0.02 0.01 -0.06
Oper. result between segments 0.00 0.00 0.00 0.00 0.00
Total 14.10 20.68 -6.58 3.63 5.24
*) The Defence business was divested in April 2007.
GEOGRAPHICAL DISTRIBUTION OF NET SALES (SECONDARY SEGMENT)
Million euros 2008 2007
Finland 10.10 10.36
Rest of Europe 22.80 22.89
North America 10.02 11.19
Asia 12.73 10.92
Other countries 3.25 2.89
Total 58.90 58.25
BREAKDOWN OF NET SALES BY CATEGORY*)
Building Infra
% of && Tekla
net sales Construction Energy total
2008 2007 2008 2007 2008 2007
Licenses 59 62 17 23 50 54
Recurring 37 34 51 47 40 37
Services 4 3 18 15 7 6
Others 0 1 14 15 3 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) and subscriptions
- 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 and concrete structures as
well as the management of fabrication and construction.
Strong fluctuations in demand are possible in license-based sales.
Particularly from the fall onward, the growth of the building
industry slowed down in all of Tekla's key market areas. Uncertainty
of financing adds to the slowing down of growth, which is
particularly seen in new larger projects. The general economic
uncertainty affects customers' investments, making their
decision-making times longer and postponing the start-up of projects
into the future. Built up demand is accumulating in the market.
Instead of large one-off sales, software is purchased in smaller
batches. Many of the purchases are strategic with customers preparing
for information-model-based way of working.
Despite the building industry's challenging situation, Tekla's market
position remained unchanged. Tekla's position as a supplier of 3D
modeling software is strong in all markets 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. Demand for modeling systems continues to
increase, and 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 the site
management in particular.
It is favorable for Tekla that the building industry's move to
information-model-based 3D processes from traditional 2D ways of
working continues. Building Information Modeling (BIM) is a trend
that is gaining momentum in the industry. BIM means that the
information of the product model is transferred and shared between
the parties of the construction process.
The net sales of B&C amounted to 46.07 (45.50) million euros for
January-December 2008. Net sales were on a par with the previous
year. License sales decreased by 5%, while maintenance sales
increased by 11%. Operating result was 12.13 (15.96) million euros.
B&C's operating result percentage for 2008 was 26.3% (35.1%), meaning
that its profitability was still excellent. Fluctuations in exchange
rates had a minor negative effect on both net sales and operating
result on a yearly level.
During the fourth quarter, B&C's net sales amounted to 11.35 (12.04)
million euros, decreasing by 5.7%. Sales peak that is normally
generated at the end of December did not realize. B&C's operating
result for October-December was 2.36 (3.85) million euros and
operating result percentage was 20.8% (32.0%).
International operations accounted for 95% (94%) of B&C's net sales
in January-December 2008. Of B&C's main markets, development was
negative in the Nordic countries and the United Kingdom due to the
recession in construction activity. In North America, sales fell
short of the year before, also in US dollars, due to the rather soft
last quarter. Sales developed favorably in Germany, the Middle East
and several other Asian countries. In 2008, the largest markets in
terms of net sales were North America, Western Europe, the Middle
East and India.
Gulf Steel Work (GSW), a fabricator of process equipment and heavy
steel structures in the Kingdom of Saudi Arabia and the Gulf region,
expanded its use of Tekla Structures and signed a two-year frame
agreement with Tekla in December.
In August, Tekla announced a deal with Al Habtoor-Murray & Roberts
Joint Venture chosen to construct the Trump International Hotel and
Tower in Palm Jumeirah, Dubai. Murray & Roberts purchased a
significant number of Tekla Structures software licenses to make the
62-story hotel project and other major projects in the future happen.
Construction has not started as yet.
In September, US precaster Shockey Precast Group and Barton Marlow,
one of the largest general contractors in the United States,
announced that they were using Tekla Structures BIM in their
collaborative projects.
Once complete, Burj Dubai in the U.A.E will be among the tallest
buildings in the world. Tekla Structures is also being used in this
project.
In March, Tekla announced closing a considerable license deal in
India. Prothius Engineering Services, one of the world's largest
engineering offices, acquired more than one hundred new Tekla
Structures licenses.
B&C's product offering expanded significantly at the beginning of
November with the release of Tekla Structures for Construction
Management, a product specially meant for controlling and site
management phase of construction projects. Construction companies and
developers had already piloted the product in major projects in the
United States, the Middle East and Nordic countries.
During the fourth quarter, Tekla Structures product development
concentrated on improving the usability of the product, support for
collaboration between different parties in the planning process and
increasing the efficiency of the tools required in planning tasks.
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), infrastructure management (Tekla
Xcity), water and sewage (Tekla Xpipe) as well as infrastructure
construction (Tekla Xstreet).
In the energy industry, the importance of distribution companies'
information systems is emphasized in asset management with increasing
requirements of the reliability and efficiency of energy
distribution. Information systems are also seen as a way of improving
customer service further. Tekla's market position as a supplier of
network information system is strong in the Nordic and Baltic
countries.
The Finnish municipal sector is undergoing changes. Municipalities
seek efficiency and savings through methods of regional collaboration
and merging of municipalities. This development emphasizes the role
of information systems even further. Service processes are made more
efficient with information technology and online customer service is
developed. Tekla's market position has strengthened in Finland.
The net sales of I&E amounted to 12.95 (12.76) million euros for
January-December 2008. I&E's operating result for the reporting
period was 1.97 (1.96) million euros. I&E operates in a stable
business environment. Some deferred sales was seen, which made the
business area's net sales and operating profit remain at the previous
year's level. I&E's operating result percentage was 15.2% (15.4%),
which can be considered very satisfactory. International operations
accounted for 39% (42%) of net sales.
I&E's net sales for the fourth quarter amounted to 4.50 (4.40)
million euros and operating result was 1.26 (1.20) million euros.
I&E's operating result percentage was 28.0% (27.3%).
The majority of I&E's net sales consists of additional and service
sales to existing customers. New customers are expected from the
strong markets in the Nordic countries. Efforts for business growth
are underway in Germany and in the new EU countries.
Further development of Tekla Xpower to support contractor cooperation
in planning and construction activities was agreed with Vattenfall
Verkko Oy.
Vattenfall Europe Distribution Berlin GmbH in Germany started an
implementation project with the aim of adopting Tekla Xpower to
production use throughout the Berlin distribution area.
In order to strengthen its supply to the energy industry, Tekla
acquired the Swedish company OakTree Software AB in September. The
beginning of business operations was promising and new customer
accounts were gained.
Latvenergo acquired the Tekla Xpower Distribution Management System
(DMS) for use throughout Latvia.
Several municipal mergers were realized in Finland during the year,
as a result of which the use of Tekla Xcity expanded considerably in
the municipal sector (new municipalities in the Jyväskylä,
Lappeenranta, Salo and Seinäjoki regions).
The City of Turku was the first Finnish municipality to implement
electronic building permit service that extensively utilizes
geographic information properties of the standard municipal
information system.
In Infra & Energy's product development, the main versions of the
products were completed during November-December according to plans.
Support for the Finnish KuntaGML (geographic information service
interface) data transfer was completed in the Tekla Xcity and WebMap
systems toward the end of 2008.
In Tekla Xpower software product development, the integration
projects of operational support and calculation with automatic meter
reading (AMR) were completed. In addition, new functionalities for
district heating and gas network service outage management were
developed.
PERSONNEL
The Group personnel averaged 430 (374) in January-December 2008; on
average 174 (144) 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 464 (400) including part-time staff, of them 189 (158) worked
outside Finland.
The number of personnel increased by 64 during the year, mainly
during the first two quarters. The increases in personnel during the
latter half of the year focused on the customer interface in growing
markets.
The average age of Tekla's employees was 37.0 (37.5) years. Of the
personnel, 64% (64%) had a higher academic degree or university-level
studies. 32% (29%) of Tekla employees were female, 68% (71%) male.
The turnover of personnel was 6.6% (7.7%).
The company has a compensation and incentive system applied to all
employees, and the Tekla Board of Directors decides on its principles
on an annual basis. They are connected with the achievement of the
previous year's operative and financial goals as well as share price
development. Tekla has no option programs.
SHARE AND OWNERSHIP STRUCTURE
Share repurchase
Tekla's Board of Directors decided on August 8, 2008 to start
purchases of a maximum of 100,000 Tekla shares for the development of
the company's capital structure. The decision was based on the
authorization given by the Annual General Meeting on March 19, 2008,
authorizing the Board to decide on the acquisition of a maximum of
500,000 Tekla shares. Purchases started on August 18, 2008 and ended
on October 10, 2008.
Shares and share capital
The total number of Tekla Corporation shares at the end of December
2008 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 632,608 euros on December 31,
2008. 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 2008 was 13.00
(14.94) euros, the lowest 3.25 (7.60) euros. The average quotation
was 8.32 (10.88) euros. On the last trading day of December, trading
closed at 3.73 (12.70) euros.
A total of 6,879,065 (13,797,159) Tekla shares changed hands in
January-December 2008 at NASDAQ OMX Helsinki Oy, amounting to 30.5%
(61%) of the entire share capital.
Changes in ownership structure
Threadneedle Asset Management Holdings Limited announced that their
holdings in Tekla Corporation crossed above the 5% threshold on
January 14, 2008. According to the notification, Threadneedle's
holdings stood at 5.098%.
Threadneedle Asset Management Holdings Limited announced that their
holdings in Tekla Corporation crossed above the 10% threshold on
August 1, 2008. According to the notification, Threadneedle's
holdings amounted to 2,264,730 Tekla shares, or 10.027% of Tekla's
shares and votes.
Nominee registered and foreign owners held 25.07% (21.90%) of all
shares at the end of 2008.
ANNUAL GENERAL MEETING
Tekla Corporation's Annual General Meeting on March 19, 2008 adopted
the company's financial statements and the Group income statement and
balance sheet for 2007. 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 0.50 euros per share was
distributed for 2007. The dividend payment date was April 3, 2008.
Ari Kohonen, Olli-Pekka Laine (Vice Chair), Heikki Marttinen (Chair)
and Erkki Pehu-Lehtonen were re-elected Board members until the
conclusion of the Annual General Meeting in 2009. Reijo Sulonen was
elected as a new Board member. Timo Keinänen was re-elected deputy
member of the Board. Juha Kajanen is the Tekla personnel
representative on the Board and Pirjo Lundén his personal deputy.
PricewaterhouseCoopers were re-elected as auditors, with Markku
Marjomaa, Authorized Public Accountant, as the auditor in charge.
The AGM renewed the Board's authorizations regarding the increase of
the company's share capital and acquiring or transferring the
company's treasury shares. The Board used its authorization regarding
share repurchase during 2008, which is described in more detail
elsewhere in this report.
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 weakened significantly in several markets, and it has had a
negative impact on the demand for Tekla products.
In the software product business, it is possible to react swiftly to
growing demand, and profits from additional sales are good. The
majority of 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 in case of quick changes, it is
challenging to proportion fixed personnel expenses, which account for
the majority of Tekla's costs.
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 significant.
BOARD'S PROPOSAL FOR THE DISTRIBUTION OF PROFIT
The parent company's distributable assets are 22,803,202 euros, of
which net profit for the period accounts for 11,753,367 euros.
Tekla Corporation's Board will propose to the Annual General Meeting,
to be held on March 18, 2009, that a dividend of 0.25 euros per share
be paid for the financial period 2008 for a total dividend payout of
5,604,150 euros. No dividends shall be paid on the 169,600 shares
held by the company.
OUTLOOK FOR 2009
As for this year, the Board of Directors has decided not to give
estimates on net sales in such an uncertain economic environment and
so early into the year. The economic recession will continue for the
time being, and its duration is unknown. Operating profit will be
clearly lower in 2009 than 2008. The beginning of the year is
challenging in particular, as the comparable period in 2008 was
extremely good. Cost level and possible actions to ensure
profitability are continuously monitored.
FINANCIAL REPORTING
Tekla's Annual Report for 2008 will be published on the company's web
site on week 10, 2009.
Tekla Corporation's Interim report for January-March 2009 will be
published on Wednesday, May 6, 2009.
Espoo, February 5, 2009
TEKLA CORPORATION
Board of Directors
For additional information, please contact:
Ari Kohonen, President and CEO, Tel. +358 50 641 24, ari.kohonen (at)
tekla.com
Timo Keinänen, CFO, Tel. +358 400 813 027, timo.keinanen (at)
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 6,
2009 at 12.00 - 1:00 p.m.
- - -
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 more than 80
countries. Tekla Group's net sales for 2008 were nearly 60 million
euros and operating result approximately 14 million euros.
International operations accounted for more than 80% of net sales.
Tekla Group currently employs over 450 persons, of whom 40 percent
work outside Finland. Tekla was established in 1966, making it one of
the longest operating software companies in Finland. www.tekla.com
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
CONSOLIDATED INCOME STATEMENT
Q1-Q4/ Q1-Q4/ Change Q4/ Q4/ Change
Million euros 2008 2007 % 2008 2007 %
Continuing businesses:
Net sales 58.90 58.25 1.1 15.80 16.44 -3.9
Other operating income 1.01 1.02 0.32 0.39
Change in inventories of
finished goods and
in work in progress -0.04 0.03 -0.12 -0.05
Raw materials and
consumables used -2.86 -2.05 -0.98 -0.67
Employee compensation and
benefit expense -27.84 -25.49 -7.41 -6.90
Depreciation -1.17 -1.14 -0.33 -0.28
Other operating expenses -13.90 -12.72 -3.65 -3.94
Operating result 14.10 17.90 -21.2 3.63 4.99 -27.3
% of net sales 23.94 30.73 22.97 30.35
Financial income 2.44 1.86 0.74 0.47
Financial expenses -1.39 -1.33 -0.31 -0.42
Profit (loss) before taxes 15.15 18.43 -17.8 4.06 5.04 -19.4
% of net sales 25.72 31.64 25.70 30.66
Income taxes -4.20 -4.92 -1.07 -1.24
Result for the period from
continuing businesses 10.95 13.51 -18.9 2.99 3.80 -21.3
Discontinued operations:
Result for the period from
discontinued operations 2.06 0.19
Result for the period 10.95 15.57 -29.7 2.99 3.99 -25.1
Attributable to the equity holders of the Company
Earnings per share for profit
attributable to the equity holders
of the Company:
Earnings per share (EUR) 0.49 0.69 0.13 0.18
Earnings per share from continuing
businesses attributable to the
equity holders of the Company:
Earnings per share (EUR) 0.49 0.60 0.13 0.17
Earnings per share from
discontinued operations
attributable to the equity
holders of the Company:
Earnings per share (EUR) 0.09 0.01
Earnings are not diluted.
CONDENSED BALANCE SHEET Change,
Million euros 12/2008 12/2007 %
Assets
Non-current assets
Property, plant and
equipment 1.70 1.79
Goodwill 0.19 0.10
Intangible assets 1.64 0.74
Other financial assets 0.30 0.30
Receivables 0.26 0.49
Deferred
tax assets 0.18 0.11
Non-current assets, total 4.27 3.53 21.0
Current assets
Inventories 0.03 0.07
Trade and other
receivables 13.87 12.96
Tax receivables 0.26
Other financial assets 19.99 25.22
Cash and cash equivalents 6.34 4.97
Current assets, total 40.49 43.22 -6.3
Assets related to
discontinued operations 0.25
Assets total 44.76 47.00 -4.8
Equity and liabilities
Equity
Share capital 0.68 0.68
Share premium account 8.89 8.89
Other own capital 1.87 1.17
Retained earnings 18.89 20.71
Equity total 30.33 31.45 -3.6
Non-current liabilities
Deferred tax liabilities 0.08 0.13
Interest-bearing liabilities 0.08 0.07
Non-current liabilities total 0.16 0.20 -20.0
Current liabilities
Trade and other payables 14.14 13.35
Tax liabilities 0.09 1.01
Current interest-bearing
liabilities 0.04 0.27
Current liabilities total 14.27 14.63 -2.5
Liabilities total 14.43 14.83 -2.7
Liabilities related to
discontinued operations 0.72
Equity and liabilities total 44.76 47.00 -4.8
CALCULATION OF RECONCILIATION OF EQUITY
Equity attributable to the holders of the Company
Share Share Fair Acc. Ret.
cap. prem. Res. value transl. earn.
acct fund res. diff. Total
Equity January 1,
07 0.68 8.89 1.33 0.10 -0.21 13.93 24.72
Transl. differences -0.25 0.22 -0.03
Changes in
available-for-sale
investments 0.20 0.20
Items recognized
directly in equity 0.00 0.00 0.00 0.20 -0.25 0.22 0.17
Net profit for the
period 15.57 15.57
Total income and
expenses recognized
in the period 0.00 0.00 0.00 0.20 -0.25 15.79 15.74
Payment of dividend -9.01 -9.01
Equity Dec.31, 07 0.68 8.89 1.33 0.30 -0.46 20.71 31.45
Equity attributable to the holders of the
Company
Share Share Fair Acc. Ret.
cap. prem. Res. value transl. earn.
acct fund res. diff. Total
Equity January 1,
08 0.68 8.89 1.33 0.30 -0.46 20.71 31.45
Transl. differences 0.76 -0.83 -0.07
Changes in
available-for-sale
investments -0.06 -0.06
Items recognized
directly in equity 0.00 0.00 0.00 -0.06 0.76 -0.83 -0.13
Net profit for the
period 10.95 10.95
Total income and
expenses recognized
in the period 0.00 0.00 0.00 -0.06 0.76 10.12 10.84
Payment of dividend -11.26 -11.26
Acquisition of
own shares -0.68 -0.68
Equity Dec.31, 08 0.68 8.89 1.33 0.24 0.30 18.89 30.33
CONDENSED CASH FLOW STATEMENT
Q1-Q4/ Q1-Q4/ Change,
Million euros 2008 2007 %
Cash flows from operating activities:
Continuing businesses 9.51 12.31
Discontinued operations 1.24
Net cash flows from operating
activities 9.51 13.55
Cash flows from investing activities:
Investments -2.02 -1.66
Sale of intangible assets and
property, plant and equipment -0.01 0.25
Cash flow from sale
of discontinued operations 2.35
Cash outflow on acquisition -0.15
Purchases of available-for-
sale financial assets -52.84 -55.16
Proceeds from sale of
available-for-sale financial assets 55.20 50.11
Interests received from
available-for-sale financial assets 1.05 0.65
Net cash used in/from investing
activities 1.23 -3.46
Cash flows from financing activities:
Payment of dividend -11.26 -9.01
Own shares -0.68
Repayments of long-term debt -0.22 -0.39
Payments of finance lease liabilities -0.03 -0.04
Net cash used in financing activities -12.19 -9.44
Net decrease/increase in cash and cash
equivalents -1.45 0.65
Cash and cash equivalents at beginning
of the period 8.43 7.78 8.4
Cash and cash equivalents at end of the
period 6.98 8.43 -17.2
The cash and cash equivalents in the
cash flow statement include:
Cash and cash equivalents 6.34 4.97
Available-for-sale financial assets,
cash equivalents 0.64 3.46
NOTES TO THE FINANCIAL STATEMENTS
The notes are presented in millions of euros, unless otherwise
stated.
In preparing the financial statements, the IAS and IFRS standards and
SIC
and IFRIC interpretations effective on December 31, 2008 were
observed.
International Financial Reporting Standards refer to the standards
defined
in the Finnish Accounting Act and related regulations approved for
application in the EU and their interpretations in accordance
with the EU regulation (EC) 1606/2992.
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 (primary segment)
Q1-Q4/ Q1-Q4/ Change, Q4/ Q4/
Million euros 2008 2007 % 2008 2007
Building & Construction 46.07 45.50 1.3 11.35 12.04
Infra & Energy 12.95 12.76 1.5 4.50 4.40
Defence *) 1.00 -100.0
Others 0.02 -100.0
Net sales between segments -0.12 -0.03 -300.0 -0.05
Total 58.90 59.25 -0.6 15.80 16.44
Operating result by business area (primary segment)
Q1-Q4/ Q1-Q4/ Change, Q4/ Q4/
Million euros 2008 2007 % 2008 2007
Building & Construction 12.13 15.96 -24.0 2.36 3.85
Infra & Energy 1.97 1.96 0.5 1.26 1.20
Defence *) 2.78 -100.0 0.25
Others -0.02 100.0 0.01 -0.06
Oper. result betw.
segments
Total 14.10 20.68 -31.8 3.63 5.24
*) Defence has been processed as discontinued operations
for the
comparison period.
Financial indicators Q1-Q4/ Q1-Q4/ Q4/ Q4/
2008 2007 2008 2007
Earnings per share (EPS), EUR 0.49 0.69 0.13 0.18
Earnings per share (EPS) from
continuing businesses, EUR 0.49 0.60 0.13 0.17
Earnings per share (EPS) from
discontinued operations, EUR 0.09 0.01
Equity/share, EUR 1.35 1.40
Interest-bearing liabilities 0.12 0.34
Equity ratio, % 68.4 67.5
Net gearing, % -86.3 -94.8
Return on investment, % 49.0 74.5 56.5 71.6
Return on equity, % 35.4 55.4 41.5 54.3
Number of shares
at end of period 22,416,600 22,516,600 22,416,600 22,516,600
Number of shares,
on average 22,485,500 22,516,600 22,485,500 22,516,600
Gross investments, MEUR 2.02 1.66 0.95 0.52
% of net sales 3.43 2.80 6.01 3.16
Personnel, on average 430 374 454 384
Discontinued operations
Defence business
Tekla's Defence business was transferred to Patria on May 1, 2007.
The calculations below show the effect of the business sale on the
result and the cash flow during the reporting and comparison periods.
Result for the Defence business
Q1-Q4/ Q1-Q4/
2008 2007
Net sales 1.00
Expenses -0.81
Profit(loss) before income
Taxes 0.00 0.19
Taxes -0.05
Profit (loss) after taxes 0.00 0.14
Sales profit from
the Defence business sale 2.59
Taxes -0.67
Sales profit after
Taxes 0.00 1.92
Profit/loss for the period
from discontinued operations 0.00 2.06
Cash flow statement, Defence
Cash flow from
operating activities 1.24
Cash flow from
investing activities 2.35
Total cash flow 0.00 3.59
The effect of the sale of the Defence business
on the financial position of the Group
Assets 0.25
Liabilities 0.72
Acquired operations
Tekla Corporation strengthened the Tekla Xpower system for the
asset management of energy companies by acquiring the Swedish
company OakTree Software AB in September 2008. Tekla is liable
to pay an additional purchase price depending on the sales
development of the acquired operations in 2009-2011. The additional
purchase price is estimated as 0.07 million euros in the financial
statements, and the resulting liability will possibly be payable in
2010-2012.
Had the figures for OakTree Software AB been consolidated from the
beginning of the financial period, Tekla's net sales would have
been approximately 0.16 million euros higher, but the consolidation
would not have had an impact on the operating result.
Consolidation as from the acquisition (September 1, 2009) has not
had material effects on Tekla's net sales or operating result.
Net assets acquired and goodwill
Total acquisition cost
Consideration paid in cash 0.17
Additional purchase price 0.07
Total 0.24
Assets and liabilities at the date of acquisition
Book
Fair values values
Customer agreements 0.18
Trade and other
Receivables 0.02 0.02
Cash and cash equivalents 0.01 0.01
Assets total 0.21 0.03
Deferred tax liabilities -0.05
Other liabilities -0.02 -0.02
Liabilities total -0.07 -0.02
Net assets 0.14 0.01
Goodwill 0.10
Acquisition cost, total 0.24
Consideration paid in cash 0.17
Subsidiary's cash and cash
equivalents -0.01
Effect on cash flow 0.16
Consolidated income statement by quarter
Q4/ Q3/ Q2/ Q1/ Q4/
Million euros 2008 2008 2008 2008 2007
Continuing businesses:
Net sales 15.80 13.72 14.52 14.86 16.44
Other operating income 0.32 0.15 0.42 0.12 0.39
Change in inventories of
finished goods and in
work in progress -0.12 0.08 -0.05
Raw materials and
consumables used -0.98 -0.56 -0.71 -0.61 -0.67
Employee compensation and
benefit expense -7.41 -6.56 -7.23 -6.64 -6.90
Depreciation -0.33 -0.29 -0.28 -0.27 -0.28
Other operating expenses -3.65 -3.04 -3.68 -3.53 -3.94
Operating result 3.63 3.50 3.04 3.93 4.99
% of net sales 22.97 25.51 20.94 26.45 30.35
Financial income 0.74 0.49 0.41 0.80 0.47
Financial expenses -0.31 -0.15 -0.19 -0.74 -0.42
Profit (loss) before taxes 4.06 3.84 3.26 3.99 5.04
% of net sales 25.70 27.99 22.45 26.85 30.66
Income taxes -1.07 -1.09 -0.94 -1.10 -1.24
Result for the period
from continuing businesses 2.99 2.75 2.32 2.89 3.80
Discontinued operations:
Result for the period from
discontinued operations 0.19
Result for the period 2.99 2.75 2.32 2.89 3.99
Income taxes Q1-Q4/ Q1-Q4/
2008 2007
Taxes for the financial
period and prior periods -4.37 -4.54
Deferred taxes 0.17 -0.38
Total -4.20 -4.92
Estimated effective tax rate for the financial year has
been applied to the result of the reporting period.
Property,
plant and equipment 12/2008 12/2007
Cost at the beginning of the
period 7.20 6.67
Translation differences -0.09 -0.09
Additions 0.81 1.16
Disposals -0.19 -0.54
Cost at the end of the
period 7.73 7.20
Accumulated depreciation at
the beginning of the period 5.41 4.93
Translation differences -0.09 -0.05
Accumulated depreciation on
disposals -0.10 -0.31
Depreciation for the
financial period 0.81 0.84
Accumulated depreciation
at the end of the period 6.03 5.41
Net book amount at the end
of the period 1.70 1.79
The investments consisted of normal
acquisitions of hardware, software
and equipment.
Provisions
The Group's provisions, loss-making contracts and provisions for
pension obligations have been eliminated on December 31, 2007.
Collaterals, contingent liabilities and other
Commitments
12/2008 12/2007
Collaterals for own commitments
Business mortgages
(as collateral for bank guarantee limit) 0.50 0.50
Pledged funds 0.06 0.07
Leasing and rental agreement commitments
Premises 5.58 4.75
Others 0.71 0.81
Total 6.29 5.56
Derivative contracts
Currency forward contracts:
Fair value -0.14 0.31
Nominal value of
underlying instruments 2.38 3.63
The Group makes derivative contracts to hedge against the exchange
rate risks of prospective sales agreements. Forward contracts and
currency options 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.
Related party transactions 12/2008 12/2007
Gerako Oy
Purchases of services 0.21 0.06
Reimbursed expenses 0.01
Management remuneration
Salaries and post-employment
benefits 1.47 1.33
Management herein refers to members of the Tekla Management Team.
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