2017-02-09 07:31:19 CET
2017-02-09 07:31:19 CET
REGLAMENTUOJAMA INFORMACIJA
Teleste - Financial Statement Release
Teleste Corporation Financial Statements 1-12/2016
Increased net sales and operating profit in 2016
Turku, Finland, 2017-02-09 07:30 CET (GLOBE NEWSWIRE) -- TELESTE CORPORATION
FINANCIAL STATEMENTS 9.2.2017 AT 08:30
FINANCIAL STATEMENTS OF TELESTE CORPORATION 1 JANUARY TO 31 DECEMBER 2016
INCREASED NET SALES AND OPERATING PROFIT IN 2016
Fourth quarter of 2016
– Net sales amounted to EUR 68.6 (68.4) million, an increase of 0.2%
– Operating profit stood at EUR 4.3 (3.3) million, an increase of 32.4%
– Undiluted result per share was EUR 0.21 (0.16) per share, an increase of 28.7%
– Orders received totalled EUR 64.6 (68.2) million, a decrease of 5.3%
– Cash flow from operations was EUR 0.5 (3.5) million, a decrease of 86.9%
January–December 2016
– Net sales amounted to EUR 259.5 (247.8) million, an increase of 4.8%
– Operating profit stood at EUR 15.6 (14.3) million, an increase of 9.3%
– Undiluted result per share was EUR 0.65 (0.61) per share, an increase of 6.8%
– Orders received totalled EUR 244.3 (251.3) million, a decrease of 2.8%
– Cash flow from operations was EUR 8.8 (4.9) million, an increase of 78.1%
The Board of Directors proposes a dividend of EUR 0.25 (0.23) per outstanding
share.
Outlook for 2017
We estimate that net sales and operating profit for 2017 will remain below the
2016 level, due to the low order backlog in the beginning of the financial
period, the adaptation measures in services business in Germany and the
investments in growth in new market areas.
Comments by CEO Jukka Rinnevaara:
‘In the fourth quarter, net sales increased and were the highest in Teleste’s
history, but orders received decreased year-on-year. As a result of this, the
order backlog continued to decrease. Net sales were improved by increased
services business in the UK. Operating profit increased significantly as a
result of the performance of Video and Broadband Solutions, but services
business made a loss. Our full-year net sales and operating profit were the
highest in Teleste’s history.
Orders received by Video and Broadband Solutions in the fourth quarter
decreased in Video Security and Information solutions. Net sales reached the
level of the comparative period. The biggest increase in deliveries of access
network products was seen in Denmark, Belgium and Norway. We estimate that
Teleste's position remained strong in access network products. Operating profit
increased significantly. Operating profit was improved by the higher
year-on-year average gross margin in access network products. In addition,
operating profit included other income resulting from reversed provision for
earn-out related to a prior acquisition.
In the fourth quarter, net sales of Network Services reached the level of the
comparative period, but operating profit was predictably negative. The losses
were incurred in Germany, where deliveries of services that included
subcontracted excavation work showed a loss. Corrective measures were initiated
in the autumn, but they have not yet improved the performance. Business
operations and operating profit developed positively in the UK, and we can be
satisfied with the performance in Switzerland, Finland and Belgium.’
Year 2016 was particularly important with regard to the renewal of the access
network product range. We developed and launched in the market the leading
products in our industry that comply with the DOCSIS 3.1 standard. With our
competitive products and good customer service, we were able to strengthen our
leading position in the European cable operator market. In the video security
and passenger information market, we continued to develop competitive solutions
and to deliver solutions to important reference customers, such as the police
organisation of Paris. Our progress with new customers was promising, but
orders were postponed as a result of delayed investment decisions. Operational
problems were experienced in services business in Germany in the latter part of
the year. In the other markets, services business progressed according to plan.
Year 2016 ended with record-level net sales and operating profit. After seven
consecutive years of improved performance, we estimate that 2017 will be a gap
year in terms of growth and improvement of profitability. We estimate that
demand in our market continues strong, but the scheduling of investments by our
customers varies. As a result of the low order backlog early in the year, the
weight of net sales and operating profit will be on the second half of 2017. In
addition, we are preparing to reorganise and adapt our services business in
Germany in accordance with our customers’ changing needs. The markets in our
field of business will grow significantly in North America. Our investments in
new market areas will increase costs to some extent in 2017. With these
measures, we will ensure our opportunities for profitable growth in the long
term.’
Group Operations in October–December 2016
Key figures (M€) 10–12/2016 10–12/2015 Change
-------------------------------------------------------------
-------------------------------------------------------------
Orders received 64.6 68.2 -5.3%
-------------------------------------------------------------
Net sales 68.6 68.4 +0.2%
-------------------------------------------------------------
EBIT 4.3 3.3 +32.4%
-------------------------------------------------------------
EBIT % 6.3% 4.8%
-------------------------------------------------------------
Profit for the period 3.7 2.9 28.7%
-------------------------------------------------------------
-------------------------------------------------------------
Other important key figures
-------------------------------------------------------------
Earnings per share, EUR 0.21 0.16 +28.7%
-------------------------------------------------------------
Cash flow from operations, M€ 0.5 3.5 -86.9%
-------------------------------------------------------------
Fourth-quarter orders received by Teleste Group decreased by 5.3% and stood at
EUR 64.6 (68.2) million. Order backlog decreased during the quarter by EUR 3.9
million to EUR 26.9 (42.2) million. Net sales grew by 0.2% to EUR 68.6 (68.4)
million, the highest quarterly net sales in Teleste’s history.
Expenses for material and production services decreased by 1.2% to EUR 36.8
(37.2) million. Personnel expenses totalled EUR 19.1 (18.1) million, an
increase of 5.8%. These expenses were pushed up by the 1.6% increase in the
number of personnel and the allocation of incentives. Depreciation,
amortisation and other fixed operating expenses decreased by 5.3% to EUR 10.2
(10.8) million. Operating profit increased by 32.4% to EUR 4.3 (3.3) million,
representing 6.3% (4.8%) of net sales. Other income included reversed provision
of EUR 1.3 million for earn-out related to the Mitron acquisition. Taxes stood
at EUR 0.6 (0.2) million. Undiluted result per share was EUR 0.21 (0.16). Cash
flow from operations was EUR 0.5 (3.5) million, a decrease of 86.9% resulting
from changes in net working capital.
Group Operations in January–December 2016
Key figures (M€) 1–12/2016 1–12/2015 Change
-------------------------------------------------------------
-------------------------------------------------------------
Orders received 244.3 251.3 -2.8%
-------------------------------------------------------------
Net sales 259.5 247.8 +4.8%
-------------------------------------------------------------
EBIT 15.6 14.3 +9.3%
-------------------------------------------------------------
EBIT % 6.0% 5.8%
-------------------------------------------------------------
Profit for the financial period 11.8 11.0 +7.3%
-------------------------------------------------------------
-------------------------------------------------------------
Other important key figures
-------------------------------------------------------------
Earnings per share, EUR 0.65 0.61 +6.8%
-------------------------------------------------------------
Cash flow from operations, M€ 8.8 4.9 +78.1%
-------------------------------------------------------------
Net gearing, % 25.0% 26.3%
-------------------------------------------------------------
Equity ratio, % 52.5% 48.3%
-------------------------------------------------------------
Personnel at period-end 1,511 1,506 +0.3%
-------------------------------------------------------------
Orders received by the Group decreased by 2.8%, standing at EUR 244.3 (251.3)
million. Net sales increased, reaching the highest level in Teleste’s history
and amounting to EUR 259.5 (247.8) million, an increase of 4.8%.
Expenses for material and production services increased by 6.8% to EUR 137.1
(128.3) million. Personnel expenses totalled EUR 72.6 (70.5) million, an
increase of 2.9%. Personnel expenses increased because of the increased number
of personnel. Depreciation, amortisation and other fixed operating expenses
increased by 0.4% to EUR 37.6 (37.5) million. Operating profit grew by 9.3%,
amounting to EUR 15.6 (14.3) million. Taxes for the Group amounted to EUR 3.0
(2.9) million and the effective tax rate was 20.3% (21.0%). Undiluted earnings
per share increased by 6.8% to EUR 0.65 (0.61). Cash flow from operations
increased by 78.1% to EUR 8.8 (4.9) million. Cash flow was increased by changes
in net working capital.
Video and Broadband Solutions October–December 2016
EUR 1,000 10–12/2016 10–12/2015 Change
-----------------------------------------------
Orders received 39,548 43,419 -8.9%
-----------------------------------------------
Net sales 43,496 43,584 -0.2%
-----------------------------------------------
EBIT 5,309 2,666 +99.1%
-----------------------------------------------
EBIT, % 12.2% 6.1%
-----------------------------------------------
Orders received decreased year-on-year by 8.9% to EUR 39.5 (43.4) million. The
biggest decrease in orders received was seen in video security and information
solutions. Order backlog decreased during the quarter by EUR 3.9 million to EUR
26.9 (42.2) million. Net sales decreased by 0.2% to EUR 43.5 (43.6) million.
Operating profit increased by 99.1%, standing at EUR 5.3 (2.7) million and
representing 12.2% (6.1%) of net sales. Operating profit was improved by the
higher year-on-year average gross margin in access network products. In
addition, operating profit included other income resulting from reversed
provision of EUR 1.3 (0.7) million for earn-out related to a prior acquisition,
as no earn-out became payable.
R&D expenses amounted to EUR 3.0 (3.2) million, representing 7.0% (7.4%) of the
business area's net sales. Capitalised R&D expenses amounted to EUR 0.9 (0.8)
million. Depreciation on capitalised R&D expenses was EUR 0.3 (0.4) million.
Product development projects focused on network products complying with the
DOCSIS 3.1 standard, distributed access architecture, video security and
information solutions and customer-specific projects.
Video and Broadband Solutions in January–December 2016
EUR 1,000 1–12/2016 1–12/2015 Change
---------------------------------------------
Orders received 149,011 157,951 -5.7%
---------------------------------------------
Net sales 164,231 154,396 +6.4%
---------------------------------------------
EBIT 16,482 12,781 +29.0%
---------------------------------------------
EBIT % 10.0% 8.3%
---------------------------------------------
Year-on-year orders received decreased by 5.7%, standing at EUR 149.0 (158.0)
million. Orders received decreased in access network products. Net sales grew
by 6.4%, amounting to EUR 164.2 (154.4) million. Net sales were increased by
access network product deliveries. Operating profit increased by 29.0%,
standing at EUR 16.5 (12.8) million and representing 10.0% (8.3%) of net sales.
Operating profit was improved by the increased net sales of access network
products and the slightly higher year-on-year gross margin. In addition,
operating profit included other income resulting from reversed provision of EUR
2.3 (1.1) million for earn-out related to a prior acquisition, as no earn-out
became payable.
R&D expenses amounted to EUR 11.0 (11.0) million, representing 6.8% (7.1%) of
net sales. Capitalised R&D expenses amounted to EUR 2.5 (1.7) million.
Depreciation on capitalised R&D expenses amounted to EUR 1.2 (1.1) million.
Product development projects focused on network products complying with the
DOCSIS 3.1 standard, distributed access architecture, video security and
information solutions and customer-specific projects.
Network Services in October–December 2016
1,000 euros 10–12/2016 10–12/2015 Change
------------------------------------------------
Orders received 25,066 24,809 +1.0%
------------------------------------------------
Net sales 25,066 24,809 +1.0%
------------------------------------------------
EBIT -975 607 -260.7%
------------------------------------------------
EBIT % -3.9% 2.4%
------------------------------------------------
Year-on-year orders received and net sales increased by 1.0% to EUR 25.1 (24.8)
million. The highest increase in net sales was seen in the UK, while in Germany
net sales decreased. Operating profit dropped significantly, being EUR 1.0
million negative and representing -3.9% (+2.4%) of net sales. Operating profit
in the comparative period was EUR 0.6 million. The losses were incurred in
Germany, where the service deliveries that included subcontracted excavation
work showed a loss. Corrective measures were initiated in the autumn, but they
have not yet improved the performance. Business and operating profit developed
favourably in the UK, Switzerland, Finland and Belgium.
Network Services in January–December 2016
EUR 1,000 1–12/2016 1–12/2015 Change
----------------------------------------------
Orders received 95,297 93,362 +2.1%
----------------------------------------------
Net sales 95,297 93,362 +2.1%
----------------------------------------------
EBIT -847 1,520 -155.7%
----------------------------------------------
EBIT % -0.9% 1.6%
----------------------------------------------
Orders received and net sales increased by 2.1% to EUR 95.3 (93.4) million. Net
sales increased particularly in the UK and decreased in Germany. Operating
profit dropped significantly, being EUR 0.8 million negative and representing
-0.9% (+1.6%) of net sales. Operating profit in the comparative period was EUR
1.5 million. The losses were incurred in Germany, resulting from deliveries of
services that included subcontracted excavation work and the launching of
services in a new geographical area. Operating profit improved year-on-year in
the UK, Switzerland, Finland and Belgium.
Personnel and organisation in January–December 2016
In the period under review, the average number of people employed by the Group
was 1,514 (1,485/2015, 1,302/2014); of these, 747 (697) were employed by Video
and Broadband Solutions and 767 (788) by Network Services. At the end of the
review period, the Group employed 1,511 people (1,506/2015, 1,343/2014), of
whom 66% (68%/2015, 72%/2014) were stationed abroad. Approximately 2% of the
Group's employees were working outside Europe.
Personnel expenses increased from the previous year by 2.9% to EUR 72.6
(70.5/2015, 59.5/2014) million. Personnel expenses increased mainly because of
the increased number of personnel. The average number of personnel increased by
1.9%. The increase was in Video and Broadband Solutions.
Investments in January–December 2016
Investments by the Group totalled EUR 5.5 (16.9) million, equalling 2.1% (6.8%)
of net sales. Of the investments made in the comparison period, EUR 11.5
million were related to the acquisition of Mitron. Investments in product
development amounted to EUR 2.5 (1.7) million. Other investments involved
information systems, machinery and equipment. Of the investments, EUR 0.6 (1.7)
million were carried out under financial lease arrangements.
Product development projects focused on network products complying with the
DOCSIS 3.1 standard, distributed access architecture, video security and
information solutions, and customer-specific projects.
Financing and Capital Structure in January–December 2016
Cash flow from operations stood at EUR 8.8 (4.9) million. The year-on-year
increase in the operating cash flow resulted from a decrease in net working
capital.
The parent company has at its disposal financial and credit facilities
amounting to a total of EUR 45.0 million. These binding credit limits are valid
until the end of March 2018. At the end of the period under review, the amount
of unused binding credit facilities was EUR 19.0 (17.7) million. On 31 December
2016, the Group's interest-bearing debt stood at EUR 30.6 (33.0) million.
The Group's equity ratio was 52.5% (48.3%) and net gearing 25.0% (26.3%).
Key Risks Faced by the Business Areas
Founded in 1954, Teleste is a technology and services company consisting of two
business areas – Video and Broadband Solutions and Network Services. With
Europe as the main market area, our clients include European cable operators
and specified organisations in the public sector.
In Video and Broadband Solutions, client-specific and integrated deliveries of
solutions create favourable conditions for growth. On the other hand, the
allocation of resources to the deliveries and the technical implementation are
demanding tasks, which is why there are also risks involved. In particular,
deliveries of integrated safety and information systems for passenger transport
may be large in size, setting high demands for the project quotation
calculation and management and, consequently, involving risks. Our customers'
network investments vary depending on their need to upgrade and their financial
structure.
Many competitors in the business area come from the USA, which is why the
exchange rate of the euro against the US dollar has an effect on our
competitiveness. The development of the exchange rates of the US dollar and the
Chinese renminbi against the euro influences our product costs. The company
hedges against short-term currency exposure by means of forward exchange
contracts. The modest economic growth and the challenges faced by the European
public sector may slow down the implementation of customers’ investment plans.
Furthermore, a reduction in consumer purchasing power in Europe may slow down
the cable operators’ network investments. Increased competition created by the
new service providers (OTT) may undermine the cable operators' ability to
invest. Consequences of natural phenomena or accidents, such as fire, may
reduce the availability of components in the order-delivery chain of
electronics industry or suspend our own manufacturing operations. Correct
technological choices and their timing are vital to our success. Various
technologies are used in our products and solutions, and the intellectual
property rights associated with the application of these technologies can be
interpreted in different ways by different parties. Such difficulties of
interpretation may lead to costly investigations or court proceedings.
Regardless of careful planning and quality assurance, complex products may fail
in the customer's network and lead to expensive repair obligations.
Net sales of Network Services come mainly from a small number of large European
customers. Therefore, a significant change in the demand for our services by
any one of them is reflected in the actual deliveries and profitability.
Improvement of customer satisfaction and productivity requires efficient
service process management, as well as innovative process, product and
logistics solutions to ensure the quality and cost-efficiency of services.
Smooth functioning of cable networks requires efficient technical management of
the networks and suitable equipment solutions in accordance with contractual
obligations. This, in turn, requires continuous and goal-directed development
of the skills and knowledge of our personnel and subcontractors. In addition,
the sufficiency and utilisation rates of our personnel and subcontractor
network influence the Company’s delivery capacity and profitability. In larger
projects with overall responsibility, tender calculation and project management
are complex tasks that involve risks. Severe weather conditions may affect our
ability to deliver products and services.
Teleste’s strategy involves risks and uncertainties: new business opportunities
may fail to be identified or successfully exploited. The business areas must
take into account market movements, such as consolidations among our customers
and competitors. Intensified competition may decrease the prices of products
and solutions faster than we are able to reduce our products’ manufacturing and
delivery costs. Various information systems are critical to the development,
manufacturing and supply of products to our customers. The maintenance of
information systems and deployment of new systems involve risks that may affect
our ability to deliver products and services. Information systems may also be
exposed to external threats and we need to protect them. Recruiting and
maintaining skilled personnel requires encouragement, development and
recruitment efforts, which can fail.
The Board of Directors annually reviews essential business risks and their
management. Risk management constitutes an integral part of the strategic and
operational activities of the business areas. Risks are reported to the Board
on a regular basis.
On 23 December 2016, a competitor of Teleste filed two complaints against
Teleste Limited, demanding damages from the company for the infringement of two
patents. Teleste denies patent infringement in both cases. According to the
assessment by Teleste’s management, the results of said litigations are not
expected to have material effect on Teleste’s financial position.
Group Structure
The parent company has branch offices in Australia, the Netherlands and Denmark
and subsidiaries in 14 countries outside Finland. Teleste Management II Oy was
merged with the parent company on 30 September 2016.
Shares and Changes in Share Capital
On 31 December 2016, EM Group Oy was the largest single shareholder with a
holding of 23.2%.
In the period under review, the lowest company share price was EUR 7.29 (5.32)
and the highest was EUR 10.24 (9.88). Closing price on 31 December 2016 stood
at EUR 8.86 (9.80). According to Euroclear Finland Ltd, the number of
shareholders at the end of the period under review was 5,923 (5,355). Foreign
and nominee-registered holdings accounted for 5.2% (5.0%) of the holdings. The
value of shares traded on the Nasdaq Helsinki from 1 January to 31 December
2016 was EUR 30.6 (24.6) million. In the period under review, 3.5 (3.3) million
Teleste shares were traded on the stock exchange. As of 1 January 2017
Teleste’s share is quoted on Nasdaq Helsinki, the Mid-Cap segment.
On 31 December 2016, the Group held 863,953 of its own shares, all held by the
parent company Teleste Corporation. At the end of the period, the Group's
holding of the total number of shares amounted to 4.6% (4.6%).
On 31 December 2016, the company’s registered share capital stood at EUR
6,966,932.80, divided into 18,985,588 shares.
Valid authorisations at the end of the review period:
– Purchases of own shares: up to a maximum of 1,200,000 of the company’s own
shares, valid until 6 October 2017.
– Issue of new shares: up to a maximum of 4,000,000 shares, valid until 31
March 2017.
– Disposal of own shares held by the company: up to a maximum of 1,800,000
shares, valid until 31 March 2017.
– The maximum number of shares that may be subscribed by virtue of the special
rights granted by the company is 2,500,000; the special rights are included in
the above maximum warrants concerning new shares and own shares held by the
Group. The authorisation is valid until 31 March 2017.
Decisions by the Annual General Meeting
The Annual General Meeting (AGM) of Teleste Corporation held on 7 April 2016
confirmed the financial statements for 2015 and discharged the Board of
Directors and the CEO from liability for the financial period. The AGM
confirmed the dividend of EUR 0.23 per share as proposed by the Board. Dividend
was paid on 18 April 2016 on shares other than own shares held by the Company.
The AGM decided that the Board of Directors shall consist of six members.
Pertti Ervi, Jannica Fagerholm, Esa Harju and Kai Telanne were re-elected as
members of Teleste Corporation’s Board of Directors. Timo Luukkainen and Timo
Miettinen were elected as new members. Timo Miettinen was elected Chair of the
Board in the organising meeting held immediately after the AGM.
The AGM decided to elect one auditor for Teleste Corporation. Authorised public
accountant firm KPMG Oy Ab was elected the Company’s auditor. The auditor has
appointed Petri Kettunen, APA, as the auditor in charge.
The Annual General Meeting decided to authorise the Board to decide on the
purchase of the company’s own shares. According to the authorisation, the Board
of Directors may acquire 1,200,000 own shares of the company otherwise than in
proportion to the holdings of the shareholders with unrestricted equity through
trading on regulated market organised by Nasdaq Helsinki Ltd at the market
price of the time of the purchase. This authorisation is valid for 18 months
from the date of the AGM’s decision.
Board member Esa Harju resigned from the Board to join the company’s Management
Team. He is responsible for Video Security and Information from 1 December
2016.
Outlook for 2017
The business objective of Video and Broadband Solutions is to maintain its
strong market position in Europe and to strengthen this market position in
selected new markets outside Europe. Due to the low order backlog, the weight
of net sales and operating profit of Video and Broadband Solutions will be on
the second half of the year.
Network capacity will continue to grow, with operators responding to consumers’
new and expanding broadband and video service needs. We estimate the demand for
access network products in Europe to continue at par with 2016. Teleste’s
entire access network product portfolio has been renewed in accordance with the
DOCSIS 3.1 standard, and our offering allows the cable operators to increase
their network capacity competitively. Our clientele is becoming consolidated
and our competitors are introducing their own DOCSIS 3.1 products in the
market, resulting in pressure on the pricing of products. The American markets
in particular are growing strongly, providing significant growth opportunities
for Teleste’s access network products. In 2017, we will start investing in
access network products that are suitable for new markets. The objective of the
investments is the long-term increase in sales.
Demand for video security solutions for public spaces continues worldwide, but
some investment decisions may be delayed by the economic situation. Teleste’s
video security solution for public space introduced in Paris provides new
opportunities for other major cities of the world. The added value in the
ecosystem has increasingly shifted to software and intelligence, and price
erosion in the traditional video security equipment market continues. New
innovations and solutions are also changing the rail industry passenger
information solution business. It is necessary to improve the productivity and
cost-efficiency of traditional business. The improvement of competitiveness
requires R&D investments in new intelligent solutions.
As to Network Services, our business objective is to further develop the
operational efficiency and increase the share of those services that provide
our customers with higher added value. Our aim is to improve the profitability
of the provided services particularly in Germany. We are preparing to
reorganise and adapt our services in Germany in accordance with our customers’
changing needs. We estimate the demand for all-inclusive network services in
our key target markets to continue at least at the level of the previous year.
We estimate that net sales and operating profit for 2017 will remain below the
2016 level, due to the low order backlog in the beginning of the financial
period, the adaptation measures in services business in Germany and the
investments in growth in new market areas.
8 February 2017
Teleste Corporation Jukka Rinnevaara
Board of Directors President and CEO
Teleste's Annual Report for 2016, which includes the audited financial
statements, will be published no later than 17th of March 2017. The Company
will issue a statement of its corporate governance as a separate report, which
will be published together with the Annual Report, and will be simultaneously
available on the Company's web site.
This interim report has been compiled in compliance with IAS 34, as it is
accepted within EU, using the recognition and valuation principles with those
used in the Annual Report. The data stated in this report is audited.
STATEMENT OF COMPREHENSIVE INCOME, 1000 euros
10-12/2016 10-12/2015 Change %
Net sales 68,562 68,393 0.2 %
Other operating income 1,914 1,001 91.2 %
Raw material and consumables used -36,789 -37,248 -1.2 %
Employee benefits expense -19,138 -18,083 5.8 %
Depreciations -1,294 -1,313 -1.5 %
Other operating expenses -8,921 -9,478 -5.9 %
Operating profit 4,334 3,273 32.4 %
Financial income 835 5 n/a
Financial expenses -841 -169 398.1 %
Profit before taxes 4,328 3,109 39.2 %
Taxes -598 -211 183.6 %
Profit for the period 3,729 2,898 28.7 %
Attributable to:
Equity holders of the parent 3,729 2,898 28.7 %
Earnings per share for profit of the year attributable to the equity holders of
the parent
Basic (expressed in euro per share) 0.21 0.16 28.7 %
Diluted (expressed in euro per share) 0.20 0.16 28.0 %
Total comprehensive income for the period,
1000 euros
Net profit 3,729 2,898 28.7 %
Items that may be reclassified to profit or
loss:
Translation differences 5 273 -98.2 %
Fair value reserve 71 11 545.5 %
Total comprehensive income for the period 3,805 3,181 19.6 %
Attributable to:
Equity holders of the parent 3,805 3,181 19.6 %
STATEMENT OF COMPREHENSIVE INCOME, 1000 euros 1-12/2016 1-12/2015 Change %
Net sales 259,528 247,758 4.8 %
Other operating income 3,372 2,854 18.1 %
Raw material and consumables used -137,078 -128,300 6.8 %
Employee benefits expense -72,566 -70,532 2.9 %
Depreciation -4,934 -4,874 1.2 %
Other operating expenses -32,687 -32,604 0.3 %
Operating profit 15,635 14,302 9.3 %
Financial income 1,224 582 110.4 %
Financial expenses -2,038 -945 115.7 %
Profit before taxes 14,821 13,939 6.3 %
Taxes -3,001 -2,928 2.5 %
Profit for the period 11,820 11,011 7.3 %
Attributable to:
Equity holders of the parent 11,820 11,011 7.3 %
Earnings per share for profit of the year attributable to the equity holders of
the parent
Basic (expressed in euro per share) 0.65 0.61 6.8 %
Diluted (expressed in euro per share) 0.65 0.61 6.6 %
Total comprehensive income for the period
(tEUR)
Net profit 11,820 11,011 7.3 %
Items that may be reclassified to profit or
loss:
Translation differences -879 240 n/a
Fair value reserve -135 31 n/a
Total comprehensive income for the period 10,806 11,282 -4.2 %
Attributable to:
Equity holders of the parent 10,806 11,282 -4.2 %
STATEMENT OF FINANCIAL POSITION, 1000 euros
Assets 1000 euros
31.12.2016 31.12.2015 Change %
Non-current assets
Property, plant and equipment 11,325 11,648 -2.8 %
Goodwill 37,374 37,849 -1.3 %
Other intangible assets 7,171 6,653 7.8 %
Available-for-sale investments 693 704 -1.6 %
Deferred tax assets 1,833 1,843 -0.6 %
Total 58,396 58,698 -0.5 %
Current assets
Inventories 33,544 32,661 2.7 %
Trade and other receivables 60,269 60,159 0.2 %
Income tax receivables 407 263 54.9 %
Cash 9,496 12,677 -25.1 %
Total 103,716 105,759 -1.9 %
Total assets 162,112 164,458 -1.4 %
Equity and liabilities
Equity attributable to equity holders of the
parent
Share capital 6,967 6,967 0.0 %
Share premium 1,504 1,504 0.0 %
Translation differences -978 -99 884.6 %
Invested non restricted equity 3,004 3,140 -4.3 %
Retained profits 73,924 66,033 11.9 %
Total 84,422 77,545 8.9 %
Non-current liabilities
Interest-bearing liabilities 28,036 30,723 -8.7 %
Other liabilities 135 2,730 -95.0 %
Deferred tax liabilities 1,630 1,662 -1.9 %
Provisions 1,081 1,026 5.4 %
Total 30,882 36,141 -14.6 %
Current liabilities
Trade and other liabilities 41,900 46,505 -9.9 %
Current tax payable 1,477 1,062 39.1 %
Provisions 858 889 -3.5 %
Interest-bearing liabilities 2,573 2,315 11.1 %
Total 46,808 50,771 -7.8 %
Total liabilities 77,691 86,912 -10.6 %
Equity and liabilities total 162,112 164,458 -1.4 %
CONSOLIDATED CASH FLOW STATEMENT, 1000 euros
1.1.-31.12. 1.1.-31.12. Change
%
2016 2015
Cash flows from operating activities
Profit for the period 11,820 11,011 7.3 %
Adjustments for:
Non-cash transactions 2,924 3,856 -24.2 %
Interest and other financial expenses 2,038 961 112.1 %
Interest income and other financial income -1,224 -582 110.4 %
Dividends -2 -3 -33.3 %
Taxes 3,001 2,928 2.5 %
Change in working capital
Increase/decrease in trade and other -110 -5,096 -97.8 %
receivables
Increase/decrease in inventories -884 -6,950 -87.3 %
Increase/decrease in trade and other payables -4,810 1,361 n/a
Increase/decrease in provisions -24 197 n/a
Paid interests and other financial expenses -2,038 -945 115.7 %
Received interests and dividends 1,224 582 110.4 %
Paid taxes -3,151 -2,400 31.3 %
Cash flow from operating activities 8,765 4,920 78.1 %
Cash flow from investing activities
A conditional supplementary contract price -485 -1,147 -57.7 %
for prior subsidiary acquisition
Purchases of property, plant and equipment -1,410 -1,258 12.1 %
(PPE)
Proceeds from sales of PPE 43 17 152.9 %
Purchases of intangible assets -2,507 -1,644 52.5 %
Acquisition of subsidiary, net of cash 0 -6,826 n/a
acquired
Net cash used in investing activities -4,359 -10,858 -59.9 %
Cash flow from financing activities
Proceeds from borrowings 4,170 44,300 -90.6 %
Payments of borrowings -6,099 -38,130 -84.0 %
Payment of finance lease liabilities -611 -391 56.3 %
Dividends paid -4,168 -3,694 12.8 %
Proceeds from issuance of ordinary shares 0 -1,382 n/a
Net cash used in financing activities -6,708 703 n/a
Change in cash
Cash and cash equivalents 1.1. 12,677 17,672 -28.3 %
Effect of currency changes -879 240 n/a
Cash and cash equivalents 31.12. 9,496 12,677 -25.1 %
Consolidated statement of changes in equity,1000 euros
Attributable to equity holders of the parent (tEUR)
A Share capital
B Share premium
C Translation differences
D Retained earnings
E Invested free capital
F Other funds
G Total
H Share of non-controlling interest
I Total equity
A B C D E F G H I
Equity 31.12.2015 6,967 1,504 -99 66,034 3,140 0 77,545 0 77,545
Total comprehensive 0 0 -879 11,820 0 -135 10,806 0 10,806
income for the
period
Dividends 0 0 0 -4,168 0 0 -4,168 0 -4,168
Equity-settled 235 235 0 235
share-based
payments
Equity 31.12.2016 6,967 1,504 -978 73,922 3,140 -135 84,422 0 84,422
Business segments 2016, 1000 euros Video and Network Group
Broadband Services
Solutios
External sales
Services 6,813 95,297 102,110
Goods 157,418 0 157,418
External sales total 164,231 95,297 259,528
Operating profit of segments 16,482 -847 15,635
Financial items -814
Profit before taxes 14,821
Business segments 2015, 1000 euros Video and Network Group
Broadband Services
Solutions
External sales
Services 7,860 93,362 101,222
Goods 146,536 0 146,536
External sales total 154,396 93,362 247,758
Operating profits of the segments 12,781 1,520 14,302
Financial items -363
Profit before taxes 13,939
Geographical segments 2016, Nordic Other Finlan Others Group
1000 euros countries Europe d
Sales by origin 22,483 202,063 17,398 17,584 259,528
Assets 97 13,679 42,570 217 56,563
Capital expenditure for the 37 1,312 4,122 17 5,488
period
Geographical segments 2015, Nordic Other Finlan Others Group
1000 euros countries Europe d
Sales by origin 20,290 209,172 12,223 6,073 247,758
Assets 82 13,750 42,763 260 56,855
Capital expenditure for the 0 1,843 14,982 123 16,948
period
Information per quarter, 1000 euros
10-12/ 7-9/ 4-6/ 1-3/ 10-12/ 1-12/ 1-12/
2016 2016 2016 2016 2015 2016 2015
Video and Broadband Solutions
Order intake 39,548 30,601 42,470 36,392 43,419 149,011 157,951
Net sales 43,496 40,273 42,769 37,693 43,584 164,231 154,396
EBIT 5,309 5,545 3,180 2,449 2,666 16,482 12,781
EBIT % 12.2 % 13.8 % 7.4 % 6.5 % 6.1 % 10.0 % 8.3 %
Network Services
Order intake 25,066 22,589 24,719 22,923 24,809 95,297 93,362
Net sales 25,066 22,589 24,719 22,923 24,809 95,297 93,362
EBIT -975 -717 691 154 607 -847 1,520
EBIT % -3.9 % -3.2 % 2.8 % 0.7 % 2.4 % -0.9 % 1.6 %
Total
Order intake 64,614 53,190 67,189 59,315 68,228 244,308 251,313
Net sales 68,562 62,862 67,488 60,616 68,393 259,528 247,758
EBIT 4,334 4,828 3,871 2,603 3,273 15,635 14,302
EBIT % 6.3 % 7.7 % 5.7 % 4.3 % 4.8 % 6.0 % 5.8 %
Commitments and contingencies, 1000 euros 2016 2015 Change %
Rental liabilities 3,971 2,980 33.3 %
Lease liabilities 5,173 4,878 6.0 %
Value of underlying forward contracts 22,550 24,599 -8.3 %
Market value of forward contracts 334 -27 n/a
Interest rate swap 10,000 10,000 0.0 %
Market value of interest swap -135 0 n/a
Guarantees 5,275 3,124 68.9 %
The number of employees broken down by following 2016 2015 Change
categories 31.12. %
Research and development 149 149 0.0 %
Production and material management 1,090 1,089 0.1 %
Sales and marketing 198 197 0.5 %
Administration 74 71 4.2 %
Total 1,511 1,506 0.3 %
IFRS IFRS IFRS IFRS IFRS
Key figures 2016 2015 2014 2013 2012
Profit and loss account,
balance sheet
Net sales, Meur 259.5 247.8 197.2 192.8 193.9
Change % 4.8 % 25.7 % 2.3 % -0.6 % 5.6 %
Sales outside Finland, % 93.3 % 95.1 % 92.5 % 93.2 % 93.4 %
Operating profit, Meur 15.6 14.3 11.1 11.0 10.9
% of net sales 6.0 % 5.8 % 5.6 % 5.7 % 5.6 %
Profit after financial items, 14.8 13.9 10.8 10.7 10.1
Meur
% of net sales 5.7 % 5.6 % 5.5 % 5.5 % 5.2 %
Profit before taxes, Meur 14.8 13.9 10.8 10.7 10.1
% of net sales 5.7 % 5.6 % 5.5 % 5.5 % 5.2 %
Profit for the financial 11.8 11.0 8.5 8.1 6.7
period, Meur
% of net sales 4.6 % 4.4 % 4.3 % 4.2 % 3.5 %
R&D expenditure, Meur 11.1 11.0 10.3 10.0 11.2
% of net sales 4.3 % 4.4 % 5.2 % 5.2 % 5.8 %
Gross investments, Meur 5.5 16.9 3.7 6.3 3.3
% of net sales 2.1 % 6.8 % 1.9 % 3.3 % 1.7 %
Interest bearing liabilities, 30.6 33.0 24.4 24.3 22.1
Meur
Shareholder's equity, Meur 84.4 77.5 70.7 65.6 60.6
Total assets, Meur 162.1 164.5 132.5 124.3 120.2
Personnel and orders
Average personnel 1,514 1,485 1,302 1,306 1,326
Order backlog at year end, 26.9 42.2 15.2 13.1 17.0
Meur
Orders received, Meur 244.3 251.3 199.3 188.9 189.7
Key metrics
Return on equity, % 14.6 % 14.9 % 12.5 % 12.9 % 11.6 %
Return on capital employed, % 14.8 % 14.2 % 12.2 % 13.0 % 13.0 %
Equity ratio, % 52.5 % 48.3 % 53.4 % 52.7 % 50.5 %
Net gearing, % 25.0 % 26.3 % 9.5 % 13.8 % 13.7 %
Earnings per share, euro 0.65 0.61 0.48 0.47 0.38
Earnings per share fully 0.65 0.61 0.48 0.46 0.38
diluted, euro
Shareholders equity per share, 4.66 4.28 3.94 3.73 3.48
euro
Teleste share
Highest price, euro 10.24 9.88 5.29 4.47 4.44
Lowest price, euro 7.29 5.32 4.25 3.78 3.04
Closing price, euro 8.86 9.80 5.27 4.25 4.17
Average price, euro 8.69 7.42 4.67 4.17 3.98
Price per earnings 13.6 16.1 11.0 9.1 10.8
Market capitalization, Meur 160.6 177.6 98.7 79.6 78.1
Stock turnover, Meur 30.6 24.6 10.9 9.2 10.8
Turnover, number in millions 3.5 3.3 2.3 2.2 2.7
Turnover, % of share capital 18.5 % 17.5 % 12.5 % 11.7 % 14.4 %
Average number of shares 18985588 18985588 18918869 18743507 18728590
Number of shares at the 18985588 18985588 18985588 18816691 18728590
year-end
Average number of shares, 18169002 18036667 17729215 17513799 17688527
diluted w/o own shares
Number of shares at the 18216369 18121635 17795934 17838599 17709672
year-end, diluted w/o own
shares
Paid dividend, Meur 4.5 4.2 3.6 3.3 3.0
Dividend per share, euro 0.25* 0.23 0.20 0.19 0.17
Dividend per net result, % 38.3 % 37.7 % 41.7 % 40.8 % 44.5 %
Effective dividend yield, % 2.8 % 2.3 % 3.8 % 4.5 % 4.1 %
* The Board's proposal to the
AGM
Treasury shares Number of % of shares % of votes
shares
Teleste companies own shares 31.12.2016 863,953 4.55% 4.55%
CALCULATION OF KEY FIGURES
Return on equity: Profit/loss for the financial period
------------------------------ * 100
Shareholders’ equity (average)
Return on capital Profit/loss for the period after financial items +
employed: financing charges
------------------------------ * 100
Total assets - non-interest-bearing
liabilities (average)
Equity ratio: Shareholders' equity
----------------------------- * 100
Total assets - advances received
Gearing: Interest bearing liabilities - cash in hand and in bank -
interest bearing assets
----------------------------- * 100
Shareholders' equity
Earnings per share: Profit for the period attributable to equity holder of
the parent
----------------------------------------------
Weighted average number of ordinary shares outstanding
during the period
Earnings per share, Profit for the period attributable to equity holder of
diluted: the parent (diluted)
-----------------------------------------------
Average number of shares - own shares + number of options
at the period-end
Major shareholders 31.12.2016 Number of shares % of share capital
EM Group Oy 4,409,712 23.2
Mandatum Life Insurance Company Limited 1,679,200 8.8
Ilmarinen Mutual Pension Insurance Company 1,084,475 5.7
Teleste Oyj 863,953 4.6
Kaleva Mutual Insurance Company 824,641 4.3
Varma Mutual Pension Insurance Company 521,150 2.7
The State Pension Fund 500,000 2.6
Julius Tallberg Corp. 281,608 1.5
Nieminen Jorma Juhani 250,000 1.3
Danske Invest Finnish Small Cap Fund 247,800 1.3
Shareholders by sector Number of % of Owners Number of % of
shareholders shares shares
Households 5,555 93,79 4,890,310 27.0
Public sector 4 0,07 2,115,725 11.7
institutions
Financial and insurance 19 0,32 3,431,114 18.9
institutions
Corporations 273 4,61 7,487,726 41.3
Non-profit institutions 28 0,47 73,000 0.4
Foreign 44 0,74 145,849 0.8
Total 5,923 100,00 18,143,724 100.0
Of which nominee 8 0,10 841,864 4.4
registered
Number of shares Number of % of Number of % of
shareholders shareholder shares shares
s
1 - 100 1,509 25,5 94,259 0,5
101 - 500 2,576 43,5 698,715 3,7
501 – 1,000 852 14,4 684,533 3,6
1,001 – 5,000 799 13,5 1,738,120 9,2
5,001 – 10,000 87 1,5 625,361 3,3
10,001 – 50,000 71 1,2 1,458,723 7,7
50,001 – 100,000 8 0,1 539,826 2,8
100,001 – 500,000 14 0,2 3,258,559 17,2
500,001 - 7 0,1 9,887,492 52,1
Total 5,923 100,0 18,985,588 100,0
of which nominee 8 0,1 841,864 4,4
registered
ADDITIONAL INFORMATION:
CEO Jukka Rinnevaara, phone +358 2 2605 866 or +358 400 747 488
DISTRIBUTION:
Nasdaq Helsinki
Main Media
www.teleste.com
© 2024 Nasdaq, Inc. All Rights Reserved |
| Slapukai |