2011-11-25 08:00:00 CET
2011-11-25 08:00:43 CET
REGULATED INFORMATION
Tekla - Interim report (Q1 and Q3)
Tekla Corporation's Interim Report January 1 - September 30, 2011: Growth for nine months was 15.6 percent - Tekla became part of Trimble Navigation Limited in July
Tekla Corporation Interim report November
25, 2011 at 9:00 a.m.
Tekla Corporation's Interim Report January 1 - September 30, 2011:
Growth for nine months was 15.6 percent - Tekla became part of Trimble
Navigation Limited in July
Tekla became part of Trimble Navigation Limited ("Trimble") on July 8, 2011.
Trimble currently holds 99.46% of all the shares and votes in Tekla. Trimble's
intention is to acquire all the shares in Tekla, and it initiated the compulsory
redemption proceedings for the remaining shares under the Finnish Companies Act.
The related trustee of minority shareholders and the arbitral tribunal have been
appointed. This Interim Report is prepared in accordance with IAS 34 and is not
reflective of Tekla's results as reported as a part of Trimble Navigation
Limited consolidated financial statements which are prepared in accordance with
U.S. GAAP.
Net sales of Tekla Group for January-September 2011 totaled 47.34 (40.94)
million euros, increasing by 15.6%. The operating result was 9.42 (6.89) million
euros, 19.9% (16.8%) of net sales. Earnings per share were 0.30 (0.24) euros.
Net sales for the third quarter amounted to 14.88 (13.62) million euros,
increasing by 9.3%. The operating result for the quarter was 3.20 (3.31) million
euros, or 21.5% (24.3%) of net sales.
Ari Kohonen, President and CEO, comments on the reporting period:
- Net sales for the third quarter increased and operating result was at the same
level with the previous year.
- Growth in the net sales of our main business area, Building & Construction,
amounted to approximately 21% during the review period and its operating result
improved clearly. During the third quarter, B&C's net sales increased by
approximately 11% and operating result remained at the previous level.
- In January-September, our market areas with the most success in license sales
were Western Europe, the Far East and the Nordic countries. The United States
and India continued to be the largest individual markets.
- For Infra & Energy, the third quarter met expectations. Net sales increased
slightly on the previous year. The order backlog remained strong.
- During the third quarter, the number of personnel increased by 20 persons.
Additional recruitments in both R&D and the customer interface aim to ensure
long-term growth.
The Board of Directors continues to expect net sales to increase by 15% or more,
while the operating result is expected to exceed 20% of net sales,
- - -
Tekla Corporation drives the evolution of digital information models with its
software, providing a growing competitive advantage to customers in the
construction, infrastructure and energy industries. Tekla's net sales for 2010
were nearly 58 million euros and operating result nearly 10 million euros.
International operations accounted for approximately 80% of net sales. Tekla has
customers in 100 countries, offices in 15 countries and a worldwide partner
network. Tekla Group currently employs more than 500 persons, of whom about 200
work outside of the headquarters in Finland. Tekla was established in 1966, and
is one of the longest-operating Finnish software companies. Tekla Corporation
became part of Trimble in July 2011. www.tekla.com
- - -
NET SALES AND PROFITABILITY
* Net sales of Tekla Group for January-September 2011 were 47.34 million euros
(40.94 million euros in January-September 2010).
* Net sales increased by 15.6%.
* Operating result was 9.42 (6.89) million euros.
* Operating result percentage was 19.9 (16.8).
* Earnings per share were 0.30 (0.24) euros.
* Return on investment was 52.2 (32.0) percent.
* Return on equity was 42.1 (23.9) percent.
FINANCIAL POSITION
* Cash flow from operating activities totaled 13.83 (8.66) million euros.
* Liquid assets amounted to 9.84 (29.09) million euros on September 30, 2011.
The assets have been invested in money market instruments with very low risk.
* Equity ratio was 31.4 (68.8) percent.
* Interest-bearing debts were 4.09 (0.14) million euros.
OTHER KEY FIGURES
* International operations accounted for 82% (80%) of net sales.
* Personnel averaged 497 (456) for January-September.
* At the end of September, the number of personnel including part-time staff was
534 (487).
* At year's end, the number of personnel including part-time staff was 490
(466).
* Gross investments were 2.45 (2.88) million euros. Capitalization of R&D
expenses
accounted for 1.1 (0.5) million euros.
* Equity per share was 0.41 (1.39) euros.
* On the last trading day of September, trading closed at 14.20 (8.25) euros.
BUSINESS AREAS
NET SALES
Q1-3/ Q1-3/ Q1-4/
Million euros 2011 2010 Change 2010 Q3/2011 Q3/2010
----------------------------------------------------------------
Building & Construction 37.26 30.87 6.39 43.08 11.83 10.68
Infra & Energy 10.12 10.11 0.01 14.81 3.06 2.95
Sales between segments -0.04 -0.04 0.00 -0.06 -0.01 -0.01
----------------------------------------------------------------
Total 47.34 40.94 6.40 57.83 14.88 13.62
OPERATING RESULT
Q1-3/ Q1-3/ Q1-4/
Million euros 2011 2010 Change 2010 Q3/2011 Q3/2010
----------------------------------------------------------------
Building & Construction 9.15 5.97 3.18 8.23 2.88 3.05
Infra & Energy 0.27 0.89 -0.62 1.92 0.32 0.23
Others 0.00 0.03 -0.03 -0.09 0.00 0.03
----------------------------------------------------------------
Total 9.42 6.89 2.53 10.06 3.20 3.31
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 offers open integration 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.
Tekla's position as a supplier of 3D modeling software is strong and the number
of users is increasing further. Customers in the building industry are seeking
tools like Tekla's products that make their operations more efficient.
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.
Tekla launched the free Tekla BIMsight application in February 2011 in order to
promote BIM-based cooperation and project management in the construction
industry. With the new application, the different parties involved in the
project can easily combine their models created using different software and
understand each other's designs. The application can be used for checking for
clashes in the structures, commenting on the models and marking the required
changes in them. The entire project can be reviewed with the help of a single
illustrative 3D combination model. User feedback has been positive. In the first
phase, the application was released in English. An expanded Tekla BIMsight
application was launched in October.
The net sales of B&C amounted to 37.26 (30.87) million euros for January-
September 2011. The growth in net sales was 20.7% compared to the corresponding
period the previous year. B&C's operating result improved clearly, amounting to
9.15 (5.97) million euros. B&C's operating result percentage was 24.6% (19.3%).
B&C's net sales increased by 10.8% during the third quarter, to 11.83 (10.68)
million euros. The operating result was 2.88 (3.05) million euros, or 24.3%
(28.6%) of net sales.
International operations accounted for 94% (95%) of B&C's net sales in January-
September 2011. The market areas with the most success in license sales were
Western Europe, the Far East and the Nordic countries. The United States and
India continued to be the largest individual 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 globally 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 July, a new functionality was introduced in Tekla Structures: the
Construction Management module includes the tools for organizing and breaking
down the model as well as scheduling and schedule monitoring.
Measures against software piracy continued both by own efforts and in
cooperation with other parties, such as BSA. The efforts are increasingly
bearing fruit.
Tekla Structure 17, the main version launched in February, features improved
clash checking, organizing, viewing, snapping, commenting and project managing
functions.
Infra & Energy
The Infra & Energy business area develops and markets Tekla Solutions to
customers in the infrastructure and energy industries. The software solutions
contain high-end process support tools for customers' core processes, from
planning to construction, operation and maintenance, and for customer service
needs. I&E's customers operate in energy distribution, public administration,
and civil engineering. Tekla Solutions offering promotes Tekla's aim to sell its
software to new customers and new types of customer segments in Finland and
abroad.
In the energy industry, information system acquisitions are strategic
investments for the companies. Climate change and the endeavor towards
sustainable development set new requirements for the industry, e.g., with new
energy production methods becoming more common and partial decentralization of
production. 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.
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.
I&E's net sales amounted to 10.12 (10.11) million euros for January-September
2011. Its operating result was 0.27 (0.89) million euros. I&E's operating result
percentage was 2.7% (8.8%). International operations accounted for 36% (33%) of
net sales.
Net sales for the third quarter amounted to 3.06 (2.95) million euros, and
operating result was 0.32 (0.23) million euros, or 10.5% of net sales. For Infra& Energy, the third quarter met expectations. Net sales increased slightly on
the previous year. The order backlog remained strong.
An agreement on the delivery of Tekla's district heating solution was made with
Turku Energia, Finland. Expanding the use of the Tekla NIS and Tekla DMS systems
was agreed on with Latvenergo, Latvia. Agreements were signed with the Finnish
companies Pori Energia and Kuopion Energia on the delivery of AMR integrations.
Several agreements on the implementation and development of e-services were
concluded in the field of public administration.
With regard to product development, the FLIR (Fault Location Isolation
Restoration) project related to the development of electricity distribution
network automation was completed on schedule and implemented in Vattenfall
Verkko Oy, Finland. This functionality significantly enhances the performance of
distribution companies' operation centers in situations such as storms where
failures can momentarily reach very high quantities.
The first parts of the collaboration project with Vattenfall Europe to develop
support for network documentation and planning in the Tekla NIS system were
completed.
PERSONNEL
Tekla Group personnel averaged 497 (456) for January-September 2011; on average
193 (184) 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 490 (466) including part-time
staff, of whom 188 (192) worked outside Finland, and at the end of September
534 (487), of whom 202 (186) worked outside Finland.
During the third quarter, the number of personnel increased by 20 persons.
Additional recruitments in both R&D and the customer interface aim to ensure
long-term growth.
PUBLIC TENDER OFFER OF TRIMBLE AND RELATED REDEMPTION PROCEEDINGS
The final result of the public tender offer made by Trimble Navigation Limited's
subsidiary Trimble Finland Oy was published on June 30, 2011. According to it,
the shares tendered represented approximately 99.46 percent of all the shares
and votes in Tekla. The trades were executed on July 5, 2011, and the ownership
to the shares was transferred to Trimble Finland on July 8, 2011, and Tekla
became part of Trimble.
Since Trimble Finland's intention is to acquire all the shares in Tekla, it
initiated the compulsory redemption proceedings for the remaining shares in
Tekla under the Finnish Companies Act. The District Court of Espoo appointed a
trustee to supervise the interest of the minority shareholders of Tekla
Corporation in the redemption proceedings. Tekla issued a stock exchange release
on the appointment of the trustee on September 9, 2011.
The appointment of an arbitral tribunal was announced after the end of the
reporting period (November 17, 2011). The redemption board of the Central
Chamber of Commerce appointed upon the application by Trimble Finland Oy a one-
member arbitral tribunal in the arbitration proceedings regarding the redemption
of minority shares in Tekla Corporation. LL.D. Pekka Timonen was appointed as
the only member of the arbitral tribunal. The arbitral tribunal shall decide
upon, among other things, the existence of the redemption right and the
redemption price for the shares subject to the arbitral proceedings.
SHARE AND OWNERSHIP STRUCTURE
Shares and share capital
The total number of Tekla Corporation shares at the end of September 2011 was
22,586,200, of which the company owned 96,600. The total book counter value of
those was 2,898 euros, and the proportion of the shares in the company was
0.43%. A total of 652,479.02 euros had been used for acquiring the company's own
shares, and their market value was 1,371,720 euros on September 30, 2011. 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-September 2011 was 20.08 (8.26)
euros, the lowest 9.00 (6.29) euros. The average quotation was 14.03 (7.24)
euros. On the last trading day of September, trading closed at 14.20 (8.25)
euros.
A total of 27,187,730 (4,007,001) Tekla shares changed hands in January-
September 2011 at NASDAQ OMX Helsinki Ltd, amounting to 120.4% (18.3%) of the
entire share capital.
Nominee registered and foreign owners held 0.2% (18.3%) of all shares at the end
of September 2011.
Notifications of changes in shareholding
- May 9, 2011: Trimble Navigation Limited announced an agreement that, if
executed, will result in a change in shareholding. The following flagging
thresholds were exceeded: more than five-tenths (irrevocable undertakings) and
more than two-thirds by the public Tender Offer.
- May 9, 2011: Gerako Oy announced that it had given an irrevocable and
unconditional undertaking to accept the Tender Offer.
- May 9, 2011: Ilmarinen Mutual Pension Insurance Company confirmed its support
for the tender offer and announced that it has undertaken to tender their shares
in the offer (unless a higher offer is available).
- May 12, 2011: Nordea Rahastoyhtiö Suomi Oy's holdings in Tekla Corporation
increased over the 5% threshold on May 11, 2011.
- May 27, 2011: The grounds for Trimble's notification were the acquisition of
shares or voting rights and exceeding the 30 percent threshold on May 26, 2011.
According to the notification the indirect number of shares was 9,059,493
(40.28%).
- June 6, 2011: The grounds for Trimble's notification were the acquisition of
shares or voting rights and exceeding the 50 percent threshold on June 1, 2011.
According to the notification the indirect number of shares was 11,317,692
(50.32%).
- June 10, 2011: The grounds for Trimble's notification were the acquisition of
shares or voting rights and exceeding the 66.7 percent (two-thirds) threshold on
June 9, 2011. According to the notification the indirect number of shares was
15,224,354 (67.70%).
- July 7, 2011: As a result of the completion of the tender offer, Trimble
Finland Oy's ownership in Tekla exceeded 2/3 of the shares and voting rights in
Tekla on July 5, 2011. The number of shares owned by Trimble Finland Oy was
22,368,148, or about 99.46% of shares and votes included in the tender offer,
and 99.03% including own shares held by Tekla.
- July 8, 2011: Ilmarinen Mutual Pension Insurance Company's holdings in Tekla
Corporation decreased below 1/20 when Ilmarinen sold all its Tekla shares on
July 5, 2011.
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 vary in different market areas.
Global uncertainty and market caution have increased.
A majority of Tekla's net sales is comprised 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 6, 2011. The
resolutions of the AGM were published in a stock exchange release on April
6, 2011.
The AGM authorized the Board to decide on the repurchase and transfer of company
shares and share issues. The Board has not exercised the above mentioned
authorizations.
Furthermore, the Annual General Meeting authorized the Board to decide on the
distribution of additional dividend and/or distribution of the non-restricted
equity fund for a total of up to 18,000,000 euros. The Board of Directors
exercised the authorization and announced on June 28, 2011 that an additional
dividend of 0.80 euros will be paid. The dividend record date was July 1, 2011
and the payment date July 8, 2011. According to the terms of the combination
agreement between Trimble and Tekla and the public tender offer made by Trimble,
the distribution of funds resulted in a corresponding reduction of Trimble's
offer price to 14.20 euros per share.
EVENTS AFTER THE REPORTING PERIOD
Notice to an Extra General Meeting was given on November 7, 2011. The meeting
will be held on Monday, November 28, 2011. The meeting will decide on changing
the composition of the company's Board of Directors as proposed by Trimble
Finland Oy, with Mr. Rajat Bahri to be elected as a new member to the Board for
the remaining term to replace Ari Kohonen. The proposal also includes that no
change will be made on the number of members, and that the members elected by
the Annual General Meeting last spring, i.e. Olli-Pekka Laine, Erkki Pehu-
Lehtonen, Saku Sipola and Reijo Sulonen, would continue as board members. Timo
Keinänen would continue as a deputy member. In accordance with the articles of
association, the nominated personnel representative Juha Kajanen would continue
with Kirsi Hakkila as his deputy.
OUTLOOK FOR 2011
The Board of Directors continues to expect net sales to increase by 15% or more,
while the operating result is expected to exceed 20% of net sales. The estimates
are based on actual growth in net sales and Tekla's market position.
NEXT FINANCIAL REPORT
Tekla Corporation's financial statement bulletin for 2011 will be published on
February 29, 2012.
Espoo, November 24, 2011
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 and www.tekla.com
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
CONSOLIDATED INCOME STATEMENT
Q1-Q3/ Q1-Q3/ Q1-Q4/ Q3/ Q3/
Million euros 2011 2010 2010 2011 2010
Net sales 47.34 40.94 57.83 14.88 13.62
Other operating income 0.33 0.40 0.58 0.04 0.15
Change in inventories of
finished goods and in work
in progress 0.07 -0.03 -0.05 0.03 -0.01
Raw materials and
consumables used -1.37 -1.32 -2.08 -0.42 -0.32
Employee compensation
and benefit expense -25.35 -23.01 -32.06 -7.82 -7.14
Depreciation -1.37 -1.31 -1.71 -0.47 -0.45
Other operating expenses -10.23 -8.85 -12.54 -3.04 -2.58
Share of results in
associated companies 0.00 0.07 0.09 0.00 0.04
Operating result 9.42 6.89 10.06 3.20 3.31
% of net sales 19.90 16.83 17.40 21.51 24.30
Financial income 0.56 1.51 1.81 0.03 0.04
Financial expenses -0.89 -1.17 -1.11 -0.09 -0.42
Profit (loss) before taxes 9.09 7.23 10.76 3.14 2.93
% of net sales 19.20 17.66 18.61 21.10 21.51
Income taxes -2.31 -1.75 -2.58 -0.81 -0.84
Result for the period 6.78 5.48 8.18 2.33 2.09
Attributable to:
Owners of the parent 6.78 5.48 8.18 2.33 2.09
Earnings per share for profit
attributable to the owners of
the parent (EUR)) 0.30 0.24 0.36 0.10 0.09
Earnings are not diluted.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Q1-Q3/ Q1-Q3/ Q1-Q4/ Q3/ Q3/
Million euros 2011 2010 2010 2011 2010
Result for the period 6.78 5.48 8.18 2.33 2.09
Other comprehensive
income for the period,
net of tax:
Transl. differences -0.02 -0.13 -0.18 -0,12 -0,03
Changes in available-for-
sale investments -0.04 -0.04 -0.06 -0.03 -0.01
Total -0.06 -0.17 -0.24 -0.15 -0.04
Total comprehensive
income for the period 6.72 5.31 7.94 2.18 2.05
Attributable to:
Owners of the parent 6.72 5.31 7.94 2.18 2.05
CONDENSED BALANCE SHEET
Million euros 9/2011 9/2010 12/2010
Assets
Non-current assets
Property, plant and
equipment 1.73 1.32 1.34
Goodwill 0.14 0.20 0.14
Intangible assets 3.35 2.40 2.69
Investments in associated
companies 1.30 1.34 1.36
Other financial assets 0.03 0.13 0.12
Receivables 0.11 0.40 0.36
Deferred tax assets 0.86 0.77 0.64
Non-current assets, total 7.52 6.56 6.65
Current assets
Inventories 0.13 0.08 0.06
Trade and other current
receivables 11.60 9.89 11.23
Tax receivables 0.04 0.05 0.05
Other financial assets 0.03 21.77 21.34
Cash and cash equivalents 9.84 7.34 8.18
Current assets, total 21.64 39.13 40.86
Assets total 29.16 45.69 47.51
Equity and liabilities
Equity
Share capital 0.68 0.68 0.68
Invested non-restricted
equity fund 1.29 9.16 9.16
Other own capital 1.50 1.63 1.56
Retained earnings 5.64 19.77 22.47
Equity total 9.11 31.24 33.87
Non-current liabilities
Deferred tax liabilities 0.04 0.09 0.07
Interest-bearing
liabilities 0.05 0.05 0.04
Non-current liabilities
total 0.09 0.14 0.11
Current liabilities
Trade and other payables 15.29 14.04 13.04
Tax liabilities 0.63 0.18 0.41
Current interest-bearing
liabilities 4.04 0.09 0.08
Current liabilities total 19.96 14.31 13.53
Liabilities total 20.05 14.45 13.64
Equity and liabilities
total 29.16 45.69 47.51
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the owners of the parent
Inv.
non-
Share Fair Acc. restr. Share prem. Other value transl. equity Ret.
capital acct funds res. diff. fund earn. Total
Equity Jan.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
on May 7 0.27 0.24 0.51
Decrease of share
premium
account -8.89 8.89 0.00
Total compreh.
income for
the period -0.04 -0.13 5.48 5.31
Equity Sept 30,
2010 0.68 0.00 1.33 0.05 0.25 9.16 19.77 31.24
Attributable to the owners of the parent
Inv.
non-
Share Fair Acc. restr.
Share prem. Other value transl. equity Ret.
capital acct funds res. diff. fund earn. Total
Equity Jan 1,
2011 0.68 0.00 1.33 0.03 0.20 9.16 22.47 33.87
Payment of
dividend -23.61 -23.61
Repayment of
equity -7.87 -7.87
Total compreh.
income for
the period -0.04 -0.02 6.78 6.72
Equity Sept. 30,
2011 0.68 0.00 1.33 -0.01 0.18 1.29 5.64 9.11
CONDENSED CASH FLOW STATEMENT
Q1-Q3/ Q1-Q3/ Q1-Q4/
Million euros 2011 2010 2010
Net cash flows from operating activities 13.83 8.66 9.74
Cash flows from investing activities:
Investments -2.45 -1.54 -2.33
Sale of intangible assets and property,
plant and equipment 0.33 0.00 0.06
Acquisition of associated companies -0.40 -0.40
Investments in available-for-sale
financial assets 20.94 -1.07 -1.55
Interests received from available-for-sale
financial assets 0.21 0.29 0.38
Net cash used in/from investing activities 19.03 -2.72 -3.84
Cash flows from financing activities:
Payment of dividend -23.61 -4.48 -4.48
Repayment of equity -7.87
Payments of finance lease liabilities -0.03 -0.04 -0.05
Net cash used in financing activities -31.51 -4.52 -4.53
Net decrease/increase in cash and cash
equivalents 1.35 1.42 1.37
Cash and cash equivalents at beginning
of the period 8.49 7.12 7.12
Cash and cash equivalents at end of the period 9.84 8.54 8.49
The cash and cash equivalents in the cash flow
statement include:
Cash and cash equivalents 9.84 7.34 8.18
Available-for-sale financial assets,
cash equivalents 1.20 0.31
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 financial statements as in
the annual
financial statements for 2010. The amendments and interpretations to
published standards
as well as new standards, effective January 1, 2011, are presented in
detail in the financial
statements for 2010.
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-Q3/ Q1-Q3/ Q1-Q4/ Q3/ Q3/
Million euros 2011 2010 2010 2011 2010
Building & Construction 37.26 30.87 43.08 11.83 10.68
Infra & Energy 10.12 10.11 14.81 3.06 2.95
Net sales between
segments -0.04 -0.04 -0.06 -0.01 -0.01
Total 47.34 40.94 57.83 14.88 13.62
Operating result by business area
Q1-Q3/ Q1-Q3/ Q1-Q4/ Q3/ Q3/
Million euros 2011 2010 2010 2011 2010
Building & Construction 9.15 5.97 8.23 2.88 3.05
Infra & Energy 0.27 0.89 1.92 0.32 0.23
Others 0.00 0.03 -0.09 0.00 0.03
Total 9.42 6.89 10.06 3.20 3.31
Financial indicators
Q1-Q3/ Q1-Q3/ Q1-Q4/ Q3/ Q3/
2011 2010 2010 2011 2010
Earnings per share (EPS), EUR 0.30 0.24 0.36 0.10 0.09
Equity/share, EUR 0.41 1.39 1.51
Interest-bearing liabilities 4.09 0.14 0.12
Equity ratio, % 31.4 68.8 72.1
Net gearing, % -63.1 -92.7 -86.7
Return on investment, % 52.2 32.0 34.1 125.3 39.5
Return on equity, % 42.1 23.9 25.7 116.5 27.8
Number of shares, 22,489,600 22,489,600 22,489,600
at end of the period
Number of shares, 22,489,600 22,455,908 22,464,400
on average
Gross investments, MEUR 2.45 2.88 3.60 0.44 0.67
% of net sales 5.18 7.03 6.23 2.96 4.92
Personnel, on average 497 456 461 517 465
Consolidated income statement by quarter
Q3/ Q2/ Q1/ Q4/ Q3/
Million euros 2011 2011 2011 2010 2010
Net sales 14.88 16.67 15.79 16.89 13.62
Other operating income 0.04 0.18 0.11 0.18 0.15
Change in inventories of finished
goods and in work in progress 0.03 0.06 -0.02 -0.02 -0.01
Raw materials and
consumables used -0.42 -0.46 -0.49 -0.76 -0.32
Employee compensation and
benefit expense -7.82 -9.05 -8.48 -9.05 -7.14
Depreciation -0.47 -0.47 -0.43 -0.40 -0.45
Other operating expenses -3.04 -3.69 -3.50 -3.69 -2.58
Share of results in associated
companies 0.00 -0.02 0.02 0.02 0.04
Operating result 3.20 3.22 3.00 3.17 3.31
% of net sales 21.51 19.32 19.00 18.77 24.30
Financial income 0.03 0.28 0.25 0.30 0.04
Financial expenses -0.09 -0.19 -0.61 0.06 -0.42
Profit (loss) before taxes 3.14 3.31 2.64 3.53 2.93
% of net sales 21.10 19.86 16.72 20.90 21.51
Income taxes -0.81 -0.99 -0.51 -0.83 -0.84
Result for the period 2.33 2.32 2.13 2.70 2.09
Income taxes
Q1-Q3/ Q1-Q3/ Q1-Q4/ 2011 2010 2010
Taxes for the financial period and
prior periods -2.53 -2.08 -2.79
Deferred taxes 0.22 0.33 0.21
Total -2.31 -1.75 -2.58
Property, plant and equipment
9/2011 9/2010 12/2010
Cost at the beginning of the
period 8.57 8.30 8.30
Translation differences -0.02 0.19 0.23
Additions 1.13 0.60 0.86
Disposals -0.18 -0.71 -0.82
Cost at the end of the period 9.50 8.38 8.57
Accumulated depreciation at the
beginning of the period 7.23 6.88 6.88
Translation differences -0.02 0.13 0.17
Accumulated depreciation
on disposals -0.13 -0.64 -0.70
Depreciation for the financial
period 0.69 0.69 0.88
Accumulated depreciation
at the end of the period 7.77 7.06 7.23
Net book amount at the end of
the period 1.73 1.32 1.34
The investments consisted of normal acquisitions of hardware, software, and
equipment.
In accordance with accounting regulations, 1.08 million euros of R&D expenses
have been
capitalized during the period under review in connection with longer-term
development of
new technology and clearly novel customer offering.
Provisions
The Group had no provisions in the reporting or comparison period.
Collaterals. contingent liabilities and other commitments
9/2011 9/2010 12/2010
Collaterals for own commitments
Business mortgages
(as collateral for bank
guarantee limit) 0.50 0.50 0.50
Pledged funds 0.22 0.23 0.27
Leasing and rental agreement
commitments
Premises 6.26 3.58 6.97
Others 0.33 0.40 0.37
Total 6.59 3.98 7.34
Derivative contracts
Currency forward
contracts:
Fair value -0.03 0.07 0.05
Nominal value of
underlying instruments 1.68 2.20 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 9/2011 9/2010 12/2010
Gerako Oy
Purchases 0.21 0.19 0.27
Construsoft Groep BV
Sales 3.03
Purchases 0.03
Receivables 0.29
Liabilities 0.60
Management remuneration
Salaries and post-employment
benefits 0.93 0.87 1.15
Management herein refers to members of the Tekla Management Team.
[HUG#1566596]
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