TELESTE CORPORATION INTERIM REPORT 1 JAN TO 30 JUNE 2009
TELESTE CORPORATION INTERIM REPORT 22.7.2009 AT 09:00 HOURS
TELESTE CORPORATION INTERIM REPORT 1 JAN TO 30 JUNE 2009
Highlights in Q2
- Net sales amounted to EUR 30.6 (29.3) million
- Operating profit amounted to EUR 0.4 (1.7) million
- Undiluted result per share equalled EUR 0.01 (EUR 0.07)
- Orders received amounted to EUR 29.6 (37.4) million
- Operating cash flow stood at EUR 2.2 (5.0) million
- Orders received by Broadband Cable Networks stood at EUR 25.6 (32.9) million
with the operating profit in the black
- Orders received by Video Networks amounted to EUR 4.0 (4.5) million with
operating profit in the black
Net sales of the Group for Q2 increased by 4.4 % standing at EUR 30.6 (29.3), an
improvement of 19.3 % over Q1. Operating profit stood at EUR 0.4 (1.7) million
making 1.3% (5.9%) of the net sales. Weakened operating profit over the year of
comparison was due to decreased product deliveries of the Broadband Cable
Networks business area. The improvement of operating profit by EUR 1.6 million
over the first quarter was mainly due to a higher volume of business,
well-managed material costs and adjustments made to the cost structure.
Undiluted result per share for Q2 was EUR 0.01 (0.07). Orders received in Q2
totalled EUR 29.6 (37.4) million, an improvement of 13.8% over Q1. Orders
received for the period of comparison include the headend delivery of EUR 12.0
million obtained from India. Order backlog totalled EUR 23.4 (29.8) million.
Order backlog and orders received for the year of comparison include the order
received from India in June 2008 of EUR 12.0 million for the Luminato headend
solution.
Group Business Operations in H1
Net sales amounted to EUR 56.1 (56.5) million. Owing to the general tight
situation in the financial market our main customers, i.e. the European cable
operators, have postponed maintenance investments on their networks. Moreover,
chances for investment of our East European customers have become more difficult
with the local currencies weakening and the financial market getting tighter.
Demand for the services business continued to grow, particularly in Germany.
Operating profit stood at EUR -0.8 (2.6) million making -1.4% (4.6%) of the net
sales. Adaptation of the cost structure in product and systems solutions is in
progress with accrued savings for the period under review amounting to
approximately EUR three million. Other profits increased from the year of
comparison by EUR 1.2 million mainly due to one-off profit on sale of capital
assets. Undiluted result per share equalled EUR -0.07 (0.10).
Orders received diminished over the previous year by 16.8% standing at EUR 55.6
(66.8) million.
Changes in Group Structure
Broadband Cable Networks' offering of services was strengthened on 1 January
2009 by acquisition of three German companies: Antel GmbH, the MKS companies and
YoungNet GmbH. The acquisition price for the relevant capital stock stood at EUR
8.8 million. This price may increase subject to development of the net profit of
the acquired companies in the next two years. In our estimate, the effect of
these acquisitions on Teleste net sales for 2009 will be more than EUR 30
million with a positive impact on operating profit. The acquisitions were paid
for by using cash assets and a bank loan. At the same time Teleste Services GmbH
with 100% holding of the acquired companies was set up in Germany.
These acquisitions increased Teleste's holding in the German Cableway AG up to
50%. Share equal to Teleste's holding in Cableway AG is presented under the
Financial Items.
Events after the End of the Period under Review
German AVC Systemhaus GmbH was acquired on 1 July 2009 with the objective
further to strengthen the offering of services provided by the Broadband Cable
Networks. With this acquisition Teleste becomes the most significant technical
service provider for cable networks in Germany. This acquisition increased
Teleste Corporation's holding of Cableway up to 62.5%. At the same time Teleste
made an agreement with another owner of Cableway increasing our holding of
Cableway by another 12.5% in Q3. Therefore, after these arrangements Teleste's
total holding will increase up to 75%. The impact on Teleste's net sales for
2009 of the AVC acquisition and the consolidation of Cableway AG is estimated to
be EUR nine million and we also expect the effect on operating profit to be
positive. These measures will increase the number of personnel by approximately
250. The AVC acquisition was financed by a bank loan. Preliminary acquisition
cost calculation will be presented in Q3 of the period under review.
Business Areas
Broadband Cable Networks in Q2
Net sales of Broadband Cable Networks for Q2 stood at EUR 26.3 (25.0), an
improvement of 23.3 % over Q1. Operating profit for Q2 stood at EUR 0.2 (1.8)
million making 0.7 % (7.3 %) of the net sales. Orders received in Q2 amounted to
EUR 25.6 (32.9) million, an improvement of 13.2 % over Q1. Order backlog
totalled EUR 21.5 (28.6) million. Order backlog includes the order of EUR 12.0
million received from India in June 2008 for the Luminato headend solution. The
growing share of the services business does not, in the main, affect the order
backlog since the deliveries are based on frame agreements.
Video Networks in Q2
In Q2 net sales for Video Networks totalled EUR 4.3 (4.3) million. Operating
profit amounted to EUR 0.2 (-0.1) million. The improved operating profit over
the year of comparison was due to cost adaptation and partially to the growth in
the services business. Orders received in Q2 totalled EUR 4.0 (4.5) million, an
improvement of 17.3 % over Q1. In the period of comparison a one-off order of
EUR one million was received from the French National Railways SNCF. Order
backlog totalled EUR 1.8 (1.2) million.
Business Operations in H1
Net sales of Broadband Cable Networks stood at EUR 47.6 (48.0) million, on a par
with the period of comparison. In terms of volume, deliveries of products have
decreased over the period of comparison, whereas the share of services increased
significantly with the acquisition. Operating profit stood at EUR -1.2 (2.7)
million making -2,5 % (5,7 %) of the net sales. Orders received decreased over
the previous year standing at EUR 48.2 (58.9) million. On 1 January 2009 three
German companies were acquired to strengthen the services provided by the
business area.
Net sales of Video Networks was on a par with the period of comparison amounting
to EUR 8.6 (8.5) million. Operating profit amounted to EUR 0.4 (-0.1) million.
Orders received by Video Networks amounted to EUR 7.4 (7.9) million.
Personnel
The Group employed 1009 people at the end of June (2008: 754, 2007: 721), out of
which 418 (2008: 560, 2007: 530) of them in Finland. The number of personnel for
the period of comparison includes 69 summer stand-ins. There were no summer
stand-ins in the review period. The acquisitions in Germany increased the number
of personnel by 377. No hired personnel was used in the period under review
(2008: Layoffs involving personnel stationed in Finland commenced at the end of
2008. 38, 2007: 75). Furthermore, in an uncertain market situation preparations
for additional layoffs have been taken. These are designed to adapt the company
operations to the tough-to-predict market situation without compromising the
company's potential for growth.
R&D and Investments
The average number of persons working in R&D related assignments was 145 (2008:
164, 2007: 148). In April 2009 23 persons moved from R&D to be employed by
Cybercom Plenware. This solution supports implementation of our strategy related
to business growth, enables focusing on core business and provides flexibility
to the R&D personnel resources.
Product development expenses equalled EUR 5.9 (7.1) making 10.5% (12.6%) of net
sales. Development efforts continued by further development of the IP based
Luminato video processing system and the development of the next generation
video surveillance transfer system. Activated R&D expenses stood at EUR 0.8
(1.3) million and depreciation on previous activation items equalled EUR 1.1
(0.9) million. Some 70% of product development expenses involved further
development of product platforms currently in production and their maintenance
as well as customer-specific product modifications.
Investments for the Group totalled EUR 13.2 (2.1) million. These mainly involved
strengthening of the Broadband Cable Networks' services business. The quoted
figure for investments includes the acquisition price of EUR 8.8 million paid
for the three German companies. Investments also include the additional purchase
price of EUR 3.4 million related to the acquisition of DINH Telecom carried out
in April 2007. Product development investments totalled EUR 0.8 (1.3) million.
To boost productivity Teleste focuses its production-related operations in
Finland to one spot; a decision has been made on an extension of a production
and store building next to the head office in Littoinen. The expansion
investment will be completed at the end of 2009 and the related expenses are
estimated to be approximately EUR 3.0 million. The factory building in
Nousiainen was sold in April 2009, but production on the premises will continue
to the end of the year under a tenancy agreement.
Financing
Operating cash flow stood at EUR 3.3 (5.6) million. In the period under review,
interest-bearing debt increased by EUR 7.8 million standing at the end of June
at EUR 18.5 (11.5) million. The increased debt was used to finance acquisitions
for the Broadband Cable Networks business area. At the end of the period under
review, liquid funds equalled EUR 8.9 (8.3) million and unused stand-by credits
amounted to EUR 23.0 (21.0) million. The current stand-by credits of EUR 40.0
million run till November 2013. The Group's gearing was 21.3% (7.1%) and the
equity ratio was 49.3% (57.3%).
Teleste hedges main exchange rate risks of forecasted currency flows for six
months ahead.
Shares and Shareholders
With stock purchases performed on 14 January 2009, holding by EM Group Oy of the
total number of shares and votes of Teleste Corporation stands at 5.04%.
With stock purchases performed on 29 January 2009, holding by EM Group Oy of the
total number of shares and votes of Teleste Corporation stands at 10.57%.
With stock purchases performed on 10 February 2009, holding by Reima Kuisla of
the total number of shares and votes of Teleste Corporation stands at 5.59%.
With stock purchases performed on 25 February 2009, holding by Reima Kuisla of
the total number of shares and votes of Teleste Corporation stands at 0.00%.
With stock purchases performed on 25 February 2009, holding by EM Group Oy of
the total number of shares and votes of Teleste Corporation stands at 20.32%.
In the period under review the trading price of shares fluctuated between EUR
2.25 (4.73) and EUR 4.18 (7.49). The closing price at the end of June was EUR
3.13 (5.00). According to the Finnish Central Security Depository, the number of
shareholders at the end of the period was 5,427 (5,268). Foreign ownership
accounted for 10.6% (16.4%). The trading in NASDAQ OMX Helsinki Oy with the
shares of Teleste amounted to EUR 22.8 (31.7) million with the number of shares
totalling 6.4 (5.0) million.
On 10 June 2009, the number of company's own shares conveyed by authorisation
granted by the Annual General Meeting of 2009 for the additional purchase price
of DINH Telecom acquired on 2 April 2007 was 464,736, making 2.61% of the share
capital.
At the end of June, Teleste and its subsidiaries were in possession of 379,985
own shares. In the period under review, the number of own shares purchased by
authorisation granted by the Annual General Meeting of 2008 was 78,530.
Decisions by the Annual General Meeting
On 7 April 2009, the Annual General Meeting (AGM) confirmed the financial
statements for 2008 and discharged the Board and the CEO from liability for the
financial period. The AGM confirmed the Board's proposed dividend of EUR 0.12
per share. The dividend was paid out on 21 April 2009.
The AGM decided that the Board of Directors shall consist of six members. Marjo
Raitavuo was elected as the Chairman of the Board with Pertti Ervi and Petteri
Walldén as new Board members. Tero Laaksonen, Pertti Raatikainen and Kai Telanne
were re-elected members of the Board.
Authorised Public Accountants KPMG Oy Ab continue as the auditor until the next
AGM. Accountant authorised by the Central Chamber of Commerce of Finland Esa
Kailiala was approved as auditor-in-charge.
The AGM authorised the Board to acquire the maximum of 900,000 of the company's
own shares and to convey the maximum of 1,744,721 company's own shares. The AGM
also authorised the company Board to issue 10,000,000 new shares. Pursuant to
the special rights provided by the company, the maximum number of significant
shares is 5,000,000; these special rights are included in the authorisation to
issue 10,000,000 new shares.
These authorisations will be valid until the AGM due to be held in 2010.
Significant Short-Term Risks and Uncertainty Factors for the Business Areas
Potential ownership and debt rearrangements among Teleste's clientele may slow
down the folding out of some investments in the business of Broadband Cable
Networks.
Strengthening of order backlog for Video Networks is dependent on timing of the
public sector decisions.
Inactive situation in the financial markets may lead to delays in the customers'
investment plans and weakening solvency. The strength of the euro in relation to
the US dollar may further erode Teleste's competitive edge. Introduction to the
market of new competing technologies is a characteristic risk factor for both of
our business areas.
Outlook
The offering of services to private households by the operator clientele of
Broadband Cable Networks will remain relatively stable even in an uncertain
market situation. Demand for network services provided by the business area will
remain strong in Germany. Due to the difficult situation in the financial
markets, the cable operators are proceeding cautiously with regard to their
network investments. In our view, in the current year, deliveries of product
solutions provided by Broadband Cable Networks will remain under the 2008 level
with the price competition increasing further.
Increased needs for security and more effective traffic infrastructure maintain
demand for the Video Networks' solutions on the same level with the last year.
Teleste is confident about keeping its strong market position in the core
markets and continues to implement its strategy in a goal-directed manner while
adapting its cost structure as required by the economic situation. The recent
strategic investments in the services business performed by Teleste will cushion
the cyclic pattern in the company net sales under the uncertain market
conditions.
Owing to decreased demand for network investments, Teleste's action plan makes
preparations for sales in product and systems falling below the level of the
previous year. As a result of our increased services business, we estimate our
net sales to end up at least on a par with last year, whereas operating profit
for the whole year will fall clearly short of the previous year's level.
Teleste's interim report for the January to September period will be published
on 27 October 2009.
21.7.2009
TELESTE CORPORATION Jukka Rinnevaara
Board of Directors President and CEO
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 unaudited.
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| STATEMENT OF COMPREHENSIVE | 4-6/2009 | 4-6/2008 | Change % | |
| INCOME (tEUR) | | | | |
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| | | | | | |
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| Turnover | 30,552 | 29,260 | 4.4 % | |
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| | | | | | |
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| | Other operating income | 1,000 | 478 | 109.2 % | |
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| | Materials and services | -13,605 | -13,412 | 1.4 % | |
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| | Personnel expenses | -10,247 | -8,547 | 19.9 % | |
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| | Other operating expenses | -5,958 | -4,851 | 22.8 % | |
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| | Depreciation | -1,339 | -1,212 | 10.5 % | |
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| Operating profit | 403 | 1,716 | -76.5 % | |
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| | | | | | |
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| | Financial income and | -146 | 11 | n/a | |
| | expenses | | | | |
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| | Share of profit of | -90 | 0 | n/a | |
| | associates | | | | |
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| Profit after financial items | 167 | 1,727 | -90.3 % | |
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| | | | | | |
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| Profit before taxes | 167 | 1,727 | -90.3 % | |
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| | | | | | |
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| | Taxes | -78 | -454 | -82.8 % | |
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| Net profit | 89 | 1,273 | -93.0 % | |
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| | | | | | |
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| Attributable to: | | | | |
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| | Equity holders of the | 89 | 1,273 | -93.0 % | |
| | parent | | | | |
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| | | | | | |
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| Earnings per share for result of the year attributable to the equity holders |
| of the parent |
| |
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| (expressed in euro per share) | | | | |
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| | Basic | 0.01 | 0.07 | -92.9 % | |
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| | Diluted | 0.01 | 0.07 | -92.9 % | |
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| | | | | | |
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| Total comprehensive income for | | | | |
| the period (tEUR) | | | | |
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| Net profit | 89 | 1,273 | -93.0 % | |
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| Translation differences | 49 | 70 | -30.0 % | |
--------------------------------------------------------------------------------
| Total comprehensive income for | 138 | 1,343 | -89.8 % | |
| the period | | | | |
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| | | | | | |
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| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for | 138 | 1,343 | -89.8 % | |
| the period | | | | |
--------------------------------------------------------------------------------
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| Statement of Comprehensive | 1-6/2009 | 1-6/2008 | Change % | 1-12/2008 |
| Income (tEUR) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turnover | 56 156 | 56 452 | -0.5 % | 108 695 |
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| | Other operating income | 2 113 | 885 | 138.8 % | 1 820 |
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| | Materials and services | -25 508 | -26 862 | -5.0 % | -49 145 |
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| | Personnel expenses | -20 265 | -16 567 | 22.3 % | -33 226 |
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| | Other operating | -10 620 | -8 911 | 19.2 % | -17 811 |
| | expenses | | | | |
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| | Depreciation | -2 678 | -2 400 | 11.6 % | -4 705 |
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| Operating profit | -802 | 2 597 | n/a | 5 628 |
--------------------------------------------------------------------------------
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| | Financial income and | -385 | -148 | 160.1 % | -533 |
| | expenses | | | | |
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| | Share of profit of | -190 | 0 | n/a | 0 |
| | associates | | | | |
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| Profit after financial items | -1 377 | 2 449 | n/a | 5 095 |
--------------------------------------------------------------------------------
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| Profit before taxes | -1 377 | 2 449 | n/a | 5 095 |
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| | Taxes | 258 | -658 | n/a | 433 |
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| Net profit | -1 119 | 1 791 | n/a | 5 528 |
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| Attributable to: | | | | |
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| | Equity holders of the | -1 119 | 1 791 | n/a | 5 528 |
| | parent | | | | |
--------------------------------------------------------------------------------
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| Earnings per share for result of the year attributable to the equity holders |
| of the parent |
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| (expressed in euro per share) | | | | |
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| | Basic | -0.07 | 0.10 | n/a | 0.32 |
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| | Diluted | -0.07 | 0.10 | n/a | 0.32 |
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| Total comprehensive income for the period (tEUR) |
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| Net profit | -1 119 | 1 791 | n/a | 5 528 |
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| Translation differences | 92 | 21 | 338,1 % | -508 |
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| Total comprehensive income for | -1 027 | 1 812 | n/a | 5 020 |
| the period | | | | |
--------------------------------------------------------------------------------
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| Attributable to: | | | | |
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| | Equity holders of the | -1 027 | 1 812 | n/a | 5 020 |
| | parent | | | | |
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| STATEMENT OF FINANCIAL | 30.6.20 | 30.6.2008 | Change % | 31.12.200 |
| POSITION (tEUR) | 09 | | | 8 |
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| Non-current assets | | | | |
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| | Property,plant,equipmen | 7 102 | 7 140 | -0.5 % | 6 373 |
| | t | | | | |
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| | Goodwill | 21 977 | 13 591 | 61.7 % | 13 865 |
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| | Intangible assets | 8 166 | 6 566 | 24.4 % | 6 466 |
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| | Investments | 833 | 753 | 10.6 % | 790 |
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| | | 38 078 | 28 050 | 35.8 % | 27 494 |
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| Current assets | | | | |
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| | Inventories | 20 375 | 12 544 | 62.4 % | 14 049 |
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| | Other current assets | 28 239 | 28 539 | -1.1 % | 24 728 |
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| | Liquid funds | 8 932 | 8 285 | 7.8 % | 9 268 |
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| | | 57 546 | 49 368 | 16.6 % | 48 045 |
--------------------------------------------------------------------------------
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| Total assets | 95 624 | 77 418 | 23.5 % | 75 539 |
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| Shareholder's equity and | | | | |
| liabilities | | | | |
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| | Share capital | 6 967 | 6 967 | 0.0 % | 6 967 |
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| | Other equity | 38 018 | 37 398 | 1.7 % | 39 678 |
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| | | 44 985 | 44 365 | 1.4 % | 46 645 |
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| Non-current liabilities | | | | |
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| | Provisions | 314 | 425 | -26.1 % | 314 |
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| | Non interest bearing | 2 356 | 1 205 | 95.4 % | 1 025 |
| | liabilities | | | | |
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| | Interest bearing | 10 175 | 1 493 | 581.5 % | 1 175 |
| | liabilities | | | | |
--------------------------------------------------------------------------------
| | | 12 845 | 3 123 | 311.2 % | 2 514 |
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| Short-term liabilities | | | | |
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| | Trade payables and | 27 904 | 19 531 | 42.9 % | 15 964 |
| | other s-t liabilities | | | | |
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| | Provisions | 1 545 | 440 | 251.1 % | 629 |
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| | S-t interest bearing | 8 345 | 9 958 | -16.2 % | 9 787 |
| | liabilities | | | | |
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| | | 37 794 | 29 929 | 26.3 % | 26 380 |
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| Total shareholder's equity | 95 624 | 77 418 | 23.5 % | 75 539 |
| and liabilities | | | | |
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| Statement of cash flows | 1-6/200 | 1-6/2008 | Change % | 1-12/2008 |
| (tEUR) | 9 | | | |
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| | | | | | |
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| Cash-flow from operation | 3 268 | 5 604 | -41.7 % | 9 673 |
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| | Cash in | 59 369 | 55 253 | 7.4 % | 112 238 |
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| | Cash out | -56 101 | -49 649 | 13.0 % | -102 565 |
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| Cash-flow from investments | -9 036 | -1 563 | 478.1 % | -3 222 |
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| | Cash in | 830 | 220 | 277.3 % | 221 |
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| | Cash out | -9 866 | -1 783 | 453.3 % | -3 443 |
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| Cash-flow from finance | 5 341 | -3 479 | -253.5 % | -4 376 |
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| | Cash in | 12 000 | 6 019 | 99.4 % | 6 342 |
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| | Cash out | -4 624 | -5 340 | -13.4 % | -6 560 |
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| | Paid dividend | -2 035 | -4 158 | -51.1 % | -4 158 |
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| Other items | 92 | 21 | 333.3 % | -508 |
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| | Effect of currency | 92 | 21 | 333.3 % | -508 |
| | rates | | | | |
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| Change in liquid funds | -336 | 583 | -157.7 % | 1 566 |
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| KEY FIGURES | 1-6/200 | 1-6/2008 | Change % | 1-12/2008 |
| | 9 | | | |
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| | Earnings per share, EUR | -0.07 | 0.10 | n/a | 0.32 |
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| | Earnings per share | -0.07 | 0.10 | n/a | 0.32 |
| | fully diluted, EUR | | | | |
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| | Shareholders' equity | 2.58 | 2.56 | 0.8 % | 2.74 |
| | per share, EUR | | | | |
--------------------------------------------------------------------------------
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| | Return on equity | -4.9 % | 7.9 % | n/a | 11.8 % |
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| | Return on capital | -3.6 % | 9.9 % | n/a | 10.4 % |
| | employed | | | | |
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| | Equity ratio | 49.3 % | 57.3 % | -13.9 % | 61.7 % |
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| | Gearing | 21.3 % | 7.1 % | 200.2 % | 3.6 % |
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| | Investments, tEUR | 13 248 | 2 063 | 542.2 % | 3 920 |
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| | Investments % of net | 23.6 % | 3.7 % | 545.6 % | 3.6 % |
| | sales | | | | |
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| | Order backlog tEUR | 23 396 | 29 850 | -21.6 % | 24 000 |
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| | Personnel, average | 998 | 702 | 42.2 % | 702 |
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| | Number of shares | 17 806 | 17 677 | 0.7 % | 17 708 |
| | (thousands) | | | | |
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| | including own shares | | | | |
--------------------------------------------------------------------------------
| | Highest share price, | 4.18 | 7.49 | -44.2 % | 7.49 |
| | EUR | | | | |
--------------------------------------------------------------------------------
| | Lowest share price, EUR | 2.25 | 4.73 | -52.4 % | 1.90 |
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| | Average share price, | 3.58 | 6.34 | -43.5 % | 4.52 |
| | EUR | | | | |
--------------------------------------------------------------------------------
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| | Turnover, in million | 6.4 | 5.0 | 27.3 % | 11.5 |
| | shares | | | | |
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| | Turnover, in MEUR | 22.8 | 31.7 | -28.1 % | 51.1 |
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| Treasury shares | | | | |
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| | | Number | | % of | % of |
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| | | of | | shares | votes |
| | | shares | | | |
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| | Teleste companies own | 379 985 | | 2.13 % | 2.13 % |
| | shares 30.6.2009 | | | | |
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| Contingent liabilities and pledged | | | |
| assets (tEUR) | | | |
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| For own debt | | | | |
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| | Guarantees | 0 | 293 | -100.0 % | 0 |
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| | Other securities | 120 | 212 | -43.4 % | 259 |
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| Leasing and rent liabilities | 5 801 | 2 656 | 103.4 % | 3 699 |
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| | | 5 921 | 3 161 | 74.7 % | 3 958 |
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| Derivative instruments | | | | |
| (tEUR) | | | | |
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| | Value of underlying | 4 132 | 6 948 | -40.5 % | 9 094 |
| | forward contracts | | | | |
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| | Market value of forward | -186 | -152 | 22.4 % | 419 |
| | contracts | | | | |
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| Taxes are computed on the basis of the tax on the profit for the | |
| period. | |
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| | | | | | |
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| There are no changes in segment reporting compared to earlier adopted IAS14. |
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| Operating segments (tEUR) | 1-6/200 | 1-6/2008 | Change % | 1-12/2008 |
| | 9 | | | |
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| Broadband Cable Networks | | | | |
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| | Order intake | 48 150 | 58 912 | -18.3 % | 101 430 |
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| | Net sales | 47 566 | 47 967 | -0.8 % | 92 605 |
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| | EBIT | -1 182 | 2 730 | n/a | 6 098 |
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| | EBIT% | -2.5 % | 5.7 % | n/a | 6.6 % |
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| Video Networks | | | | |
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| | Order intake | 7 402 | 7 867 | -5.9 % | 17 203 |
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| | Net sales | 8 590 | 8 485 | 1.2 % | 16 090 |
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| | EBIT | 380 | -133 | n/a | -470 |
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| | EBIT% | 4.4 % | -1.6 % | n/a | -2.9 % |
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| Total | | | | |
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| | Order intake | 55 552 | 66 779 | -16.8 % | 118 633 |
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| | Net sales | 56 156 | 56 452 | -0.5 % | 108 695 |
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| | EBIT | -802 | 2 597 | n/a | 5 628 |
--------------------------------------------------------------------------------
| | EBIT% | -1.4 % | 4.6 % | n/a | 5.2 % |
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| | Financial items | -385 | -148 | 160.1 % | -533 |
--------------------------------------------------------------------------------
| | Shares of associates | -190 | 0 | n/a | 0 |
--------------------------------------------------------------------------------
| | Operating segments net | -1 377 | 2 449 | n/a | 5 095 |
| | profit before taxes | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment assets | | | | |
--------------------------------------------------------------------------------
| | Segment assets include items directly attributable as well as those |
| | that can be allocated on a reasonable basis |
--------------------------------------------------------------------------------
| | | 30.6.20 | 30.6.20 | Change % | 31.12.200 |
| | | 09 | 08 | | 8 |
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| | Broadband Cable | 72 011 | 53 089 | 35.6 % | 50 930 |
| | Networks | | | | |
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| | Video Networks | 14 682 | 16 044 | -8.5 % | 15 341 |
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| | Segment assets total | 86 692 | 69 133 | 25.4 % | 66 271 |
--------------------------------------------------------------------------------
| | Unallocated assets | 8 932 | 8 285 | 7.8 % | 9 268 |
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| | Total assets | 95 624 | 77 418 | 23.5 % | 75 539 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Information per | 4-6/09 | 1-3/09 | 10-12/0 | 7-9/08 | 4-6/08 | 7/2008- |
| guarter (tEUR) | | | 8 | | | 6/2009 |
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| Broadband Cable Networks |
--------------------------------------------------------------------------------
| | Order | 25 570 | 22 580 | 19 680 | 22 838 | 32 872 | 90 668 |
| | intake | | | | | | |
--------------------------------------------------------------------------------
| | Net sales | 26 266 | 21 300 | 23 765 | 20 873 | 24 995 | 92 204 |
--------------------------------------------------------------------------------
| | EBIT | 191 | -1 373 | 1 711 | 1 657 | 1 829 | 2 186 |
--------------------------------------------------------------------------------
| | EBIT % | 0.7 % | -6.4 % | 7.2 % | 7.9 % | 7.3 % | 2.4 % |
--------------------------------------------------------------------------------
| Video Networks |
--------------------------------------------------------------------------------
| | Order | 3 996 | 3 406 | 5 583 | 3 753 | 4 535 | 16 738 |
| | intake | | | | | | |
--------------------------------------------------------------------------------
| | Net sales | 4 286 | 4 304 | 4 360 | 3 245 | 4 265 | 16 195 |
--------------------------------------------------------------------------------
| | EBIT | 212 | 168 | -140 | -197 | -113 | 43 |
--------------------------------------------------------------------------------
| | EBIT % | 4.9 % | 3.9 % | -3.2 % | -6.1 % | -2.6 % | 0.3 % |
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| Total |
--------------------------------------------------------------------------------
| | Order | 29 566 | 25 986 | 25 263 | 26 591 | 37 407 | 107 406 |
| | intake | | | | | | |
--------------------------------------------------------------------------------
| | Net sales | 30 552 | 25 604 | 28 125 | 24 118 | 29 260 | 108 399 |
--------------------------------------------------------------------------------
| | EBIT | 403 | -1 205 | 1 571 | 1 460 | 1 716 | 2 229 |
--------------------------------------------------------------------------------
| | EBIT % | 1.3 % | -4.7 % | 5.6 % | 6.1 % | 5.9 % | 2.1 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | Share | Share | Trans- | Retaine | Investe | Total |
| equity holders of the | capit | premiu | lation | d | d | |
| parent (tEUR) | al | m | differ | earning | free | |
| | | | -rence | s | capital | |
| | | | s | | | |
--------------------------------------------------------------------------------
| Shareholder's equity | 6 967 | 1 504 | -561 | 37 284 | 1 451 | 46 645 |
| 1.1.2009 | | | | | | |
--------------------------------------------------------------------------------
| | Total | | | 92 | -1 119 | | -1 027 |
| | comprehensive | | | | | | |
| | income for the | | | | | | |
| | period | | | | | | |
--------------------------------------------------------------------------------
| | Equity-settled | | | | 116 | 1 286 | 1 402 |
| | share-based | | | | | | |
| | payments | | | | | | |
--------------------------------------------------------------------------------
| | Paid dividend | | | | -2 035 | 0 | -2 035 |
--------------------------------------------------------------------------------
| Shareholder's equity | 6 967 | 1 504 | -469 | 34 246 | 2 737 | 44 985 |
| 30.6.2009 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholder's equity | 6 967 | 1 504 | -53 | 35 720 | 2 531 | 46 669 |
| 1.1.2008 | | | | | | |
--------------------------------------------------------------------------------
| | Total | | | 21 | 1 792 | | 1 813 |
| | comprehensive | | | | | | |
| | income for the | | | | | | |
| | period | | | | | | |
--------------------------------------------------------------------------------
| | Equity-settled | | | | 158 | -116 | 42 |
| | share-based | | | | | | |
| | payments | | | | | | |
--------------------------------------------------------------------------------
| | Paid dividend | | | | -4 159 | | -4 159 |
--------------------------------------------------------------------------------
| Shareholder's equity | 6 967 | 1 504 | -32 | 33 511 | 2 415 | 44 365 |
| 30.6.2008 | | | | | | |
--------------------------------------------------------------------------------
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 |
| employed: | items + 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 |
| diluted: | holder of the parent (diluted) |
| | ----------------------------------------------- |
| | Average number of shares - own shares + number |
| | of options at the period-end |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MAJOR SHAREHOLDERS 30.6.2009 | Shares | % |
--------------------------------------------------------------------------------
| 1 | EM Group Oy | 3 617 552 | 20.32 % |
--------------------------------------------------------------------------------
| 2 | Mandatum Henkivakuutusosakeyhtiö | 1 679 200 | 9.43 % |
--------------------------------------------------------------------------------
| 3 | Ilmarinen Mutual Pension Insurance | 894 776 | 5.03 % |
| | Company | | |
--------------------------------------------------------------------------------
| 4 | Kaleva Mutual Insurance Company | 798 541 | 4.48 % |
--------------------------------------------------------------------------------
| 5 | Aktia Capital Mutual Fund | 524 200 | 2.94 % |
--------------------------------------------------------------------------------
| 6 | Varma Keskinäinen Eläkevakuutusyhtiö | 521 150 | 2.93 % |
--------------------------------------------------------------------------------
| 7 | State Pension Fund | 500 000 | 2.81 % |
--------------------------------------------------------------------------------
| 8 | Skagen Vekst Verdipapierfond | 437 000 | 2.45 % |
--------------------------------------------------------------------------------
| 9 | FIM Fenno Mutual Fund | 401 342 | 2.25 % |
--------------------------------------------------------------------------------
| 10 | Teleste Incentive Oy | 379 985 | 2.13 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SECTOR DISPERSION OF | Number of | Number of | % of total |
| SHAREHOLDERS | shareholders | shares | shares |
--------------------------------------------------------------------------------
| Corporations | 309 | 5 415 421 | 30.41 % |
--------------------------------------------------------------------------------
| Financial and insurance | 17 | 3 281 381 | 18.43 % |
| corporations | | | |
--------------------------------------------------------------------------------
| Public institutions | 7 | 2 172 976 | 12.20 % |
--------------------------------------------------------------------------------
| Non-profit organizations | 43 | 684 263 | 3.84 % |
--------------------------------------------------------------------------------
| Households | 5 010 | 4 362 650 | 24.50 % |
--------------------------------------------------------------------------------
| Foreign and nominee | 41 | 1 888 899 | 10.61 % |
| -registered | | | |
--------------------------------------------------------------------------------
| Total | 5 427 | 17 805 590 | 100.00 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| HOLDING DISPERSION | |
--------------------------------------------------------------------------------
| Number of shares | Owners | % | Shares | % |
--------------------------------------------------------------------------------
| 1 - 100 | 1 218 | 22.44 % | 86 399 | 0.49 % |
--------------------------------------------------------------------------------
| 101 - 1 000 | 3 206 | 59.07 % | 1 318 690 | 7.41 % |
--------------------------------------------------------------------------------
| 1001 - 10 000 | 909 | 16.75 % | 2 565 176 | 14.41 % |
--------------------------------------------------------------------------------
| 10 001 - 100 000 | 75 | 1.38 % | 1 731 046 | 9.72 % |
--------------------------------------------------------------------------------
| 100 001 - | 19 | 0.35 % | 12 104 279 | 67.98 % |
--------------------------------------------------------------------------------
| Total | 5 427 | 100.00 % | 17 805 590 | 100.00 % |
--------------------------------------------------------------------------------
| Nominee registered | | | 1 364 253 | 7.66 % |
--------------------------------------------------------------------------------
| Total | | | 17 805 590 | 100.00 % |
--------------------------------------------------------------------------------
ACQUISITIONS 1 Jan - 30 June 2009
At 1 January 100% of shares of German companies, GmbH, MKS and Young-Net GmbH
was purchased. The purchase price was 8 554 thousand and was paid in cash.
The acquisition resulted in 2 605 thousand of intangible assets, which was
allocated to trade marks, customer relationships. The goodwill, amounted
4 727
thousand EUR, is mainly due to future revenue expectation and to personnel
synergy effects in the future. The impact of the acquisition on Teleste's net
sales during the period 1.1.2009 - 30.6.2009 was 17 938 thousand EUR and on the
EBIT 1 452 thousand EUR.
--------------------------------------------------------------------------------
| Preliminary calculation of recognised fair values on acquisition |
| 1 000 EUR |
--------------------------------------------------------------------------------
| Fair values used in consolidation | |
--------------------------------------------------------------------------------
| Trade marks (inc. in intangible assets) | 574 |
--------------------------------------------------------------------------------
| Customer relationship (inc. in intangible assets) | 2 031 |
--------------------------------------------------------------------------------
| Book values used in consolidation | |
--------------------------------------------------------------------------------
| Tangible assets | 544 |
--------------------------------------------------------------------------------
| Inventories | 5 828 |
--------------------------------------------------------------------------------
| Deferred tax receivables | 785 |
--------------------------------------------------------------------------------
| Trade receivables | 3 136 |
--------------------------------------------------------------------------------
| Other receivables | 1 928 |
--------------------------------------------------------------------------------
| Liquid funds | 1 961 |
--------------------------------------------------------------------------------
| Total assets | 16 787 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book values used in consolidation | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 559 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 677 |
--------------------------------------------------------------------------------
| Other liabilities | 11 524 |
--------------------------------------------------------------------------------
| Total liabilities | 12 760 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net identifiable assets and liabilities | 4 027 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total consideration | 8 554 |
--------------------------------------------------------------------------------
| Acquisition costs | 200 |
--------------------------------------------------------------------------------
| Goodwill on acquisition | 4 727 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consideration paid in cash | -8 754 |
--------------------------------------------------------------------------------
| Cash and cash equivalents in acquired subsidiary | 1 961 |
--------------------------------------------------------------------------------
| Total net cash outflow on the acquisition | -6 793 |
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FOR MORE INFORMATION:
CEO Jukka Rinnevaara, tel +358 2 2605 866 or +358 400 747 488
DISTRIBUTION:
NASDAQ OMX Helsinki
Primary media
www.staging.staging.staging.staging.teleste.com
