TELESTE CORPORATION STOCK EXCHANGE RELEASE 30.1.2007 AT 14.00
FINANCIAL STATEMENT OF TELESTE CORPORATION 1 JANUARY TO 31 DECEMBER 2006
Teleste Corporation's final accounts have been prepared in compliance with the
IFRS regulations. The stated figures have been audited.
Financial year 2006
- Net sales grew by 23.2% amounting to EUR 101.8 (82.6) million
- Operating profit grew by 13.7% equalling EUR 9.8 (8.6) million
- Undiluted result per share increased by 15.2% standing at EUR 0.41 (0.35)
- Orders received improved by 25.6% standing at EUR 107.2 (85.4) million. Order
backlog grew by 23.9% amounting to EUR 28.1 (22.7) million
- Orders received by Broadband Cable Networks increased by 27.4% amounting to
EUR 92.8 (72.9) million
- Orders received by Video Networks increased by 15.5% standing at EUR 14.4
(12.5) million
- Operating cash flow stood at EUR 2.7 (5.5) million
- The Board of Directors proposes that a dividend of EUR 0.20 per outstanding
share will be paid.
REPORT OF THE BOARD OF DIRECTORS
Overview
Teleste continued to grow vigorously in its main market area. In the period
under review long-term framework agreements were signed for value in excess of
EUR 60 million. These framework agreements have allowed the company to improve
its visibility in the key markets while providing good opportunities for
implementing programs designed to increase profitability of product groups
included in the framework agreements concerned. As to the EttH technology a
significant breakthrough was achieved as the leading South Korean operator
Hanaro Telecom chose Teleste's EttH solution for their high-speed (100 Mbps)
telecommunication technology. The placed order carries a significant reference
value considering the pioneering position of the South Korean market and their
advanced telecommunication infrastructure and requirements of high standards. In
May Suomen Turvakamera Oy was acquired to broaden the range of solutions
provided by Video Networks to an expanded clientele. In June the expertise in
fibre technology (FttH) of Broadband Cable Networks was strengthened by
acquisition of the Swedish PromaCom AB. In Q4 framework agreements constituted
main part of deliveries by Broadband Cable Networks. In Q4 profitability was
restrained by capacity constraints and accelerated production of the EttH
product family.
Net Sales and Profitability
Teleste net sales totalled EUR 101.8 (82.6) million, an increase of 23.2% over
the previous year. Net sales in Q4 amounted to EUR 28.4 (24.3) million.
Operating profit stood at EUR 9.8 (8.6) million making 9.6% (10.4%) of the net
sales. Operating profit for Q4 stood at EUR 2.2 (3.1) million making 7.6%
(12.6%) of the net sales. The operating profit for Q4 was encumbered by
accelerated production of the new product versions and capacity constraints in
the production.
Teleste's orders received improved by 25.6% standing at EUR 107.2 (85.4)
million. Orders received in Q4 stood at EUR 33.9 (24.5) million. Teleste's order
backlog grew by 23.9% amounting to EUR 28.1 (22.7) million at the year-end.
Profit after financial items totalled EUR 9.3 (8.3) million while the net profit
equalled EUR 6.9 (6.0) million. Undiluted result per share for the Group stood
at EUR 0.41 (EUR 0.35). Tax rate for the period was 25.9% (28.4%). Return on
capital employed amounted to 24.3% (23.7%) and return on equity was 19.7%
(19.8%).
R&D and Investments
The R&D expenditure for the period under review totalled EUR 9.8 (8.6) million
making 9.7% (10.5%) of net sales. R&D efforts included further development of
the Ethernet to the Home (EttH), Fiber to the Last Amplifier (FttLA), GigaHerz
broadband solutions (Access), video surveillance transfer system (MP-X) and
video surveillance management system (MoRIS) platforms as well as solutions
tailored to client-specific requirements. Further development of Teleste's video
HeadEnd technology was launched towards the end of the review period. Some 40%
of the R&D expenses involved maintenance of solution platforms currently in
production. The amount of activated product development expenses with the R&D
grant included stood at EUR 1.4 (1.8) million. This capitalisation involved the
broadband technology platforms of EttH, MP-X and GigaHerz. Depreciation on
activated R&D expenses for the period under review amounted to EUR 0.9 (0.6)
million. R&D expenditure in Q4 amounted to EUR 3.9 (2.6) million. This rise in
expenses was mainly due to increased use of product development partners and
accelerated finishing for production of the EttH client project. A number of
Teleste's projects involved co-operation with Finnish universities and research
institutes. Almost 22% of the Group personnel is assigned on R&D.
Investments for the period under review totalled EUR 6.2 (4.1) million making
6.1% of net sales. These investments include acquisitions of Suomen Turvakamera
Oy and PromaCom AB as well as an additional purchase price on Teleste Video
Networks (former S-Link AB) of EUR 0.2 million. Other investments included
machinery and equipment for manufacturing, research and development as well as
IT. As to investments made in the period EUR 0.5 (0.8) million was carried out
by using financial leasing. In the financial period, the real estate in Norway
was sold with inconsequential capital gain. A new circuit board production will
be introduced in Q1 of 2007 improving capacity right in the first half of the
year. The line will also speed up the R&D turnaround times. The investment is
carried out by using financial leasing with the purchase price amounting to
approximately EUR 1.4 million.
Finance
The Group liquidity remained good. Due to the growth working capital was tied to
stocks, in particular, and the operating cash flow stayed at EUR 2.7 (5.5)
million. Total cash flow equalled EUR -1.7 (-8.6) million. The company is
prepared for strategic investments and increased need for working capital driven
by growth by means of stand-by credits. The amount of unused stand-by credits at
the end of the period amounted to EUR 23.0 (27.0) million. Credit limits remain
valid till November 2008. The Group's equity ratio was 55.3% (59.1%) with
gearing standing at 3.2% (-14.3%). Interest bearing debt on 31 December 2006 was
EUR 8.0 (3.9) million.
Personnel and Organisation
During the year, the group employed an average of 608 people (546). At the year-
end, the figure totalled 621 (557) people of which approximately 30% (27%) were
stationed overseas. The stated number of staff does not include temporary labour
averaging 50 persons in the financial period. At the year-end less than 10% of
the Group's personnel was stationed outside Europe.
In May the main business Broadband Cable Networks was split into two units named
HFC Networks and Services and Digital Video and Broadband Solutions,
respectively. The previous country-specific organisation in sales operations for
the business was replaced by geographic sales territories serving both units.
The organisation was designed to promote profitable growth by way of ensuring
implementation of the business unit strategies so as to meet customer
requirements and identify any new opportunities. The split does not affect the
Group segment reporting.
In the financial period the R&D operations were organised in centres of
expertise replacing the previous division into product groups.
Expenditure on employee benefits amounted to EUR 27.1 (24.1) million compared
with that in 2004 having amounted to EUR 23.4 million.
Description of Business Areas and the Involved Key Risks
Founded in 1954, Teleste is a technology company currently running the business
units of Broadband Cable Networks and Video Networks. In line with its strategy
Teleste continues to focus on the chosen product and technology segments as well
services and technical integration. Integrated deliveries of solutions create
favourable conditions for growth even if the involved resource allocation and
technical implementation pose a challenge involving, therefore, also reasonable
risks. In addition, appropriate technological choices and their correct timing
are instrumental for the success of the businesses not forgetting market
dynamics such as the importance of consolidation of clients and competition.
Strong euro against the US dollar may erode our price competitiveness with
respect to the American competition.
The company has covered risks involving any damage in operative functions of the
businesses mainly by insurance policies. These insurances do not include credit
loss risks.
For Teleste in 2006 no such risks materialised and no such legal proceedings or
juridicial procedures were pending that would have had any essential significance
for the Group operation.
Broadband Cable Networks
Broadband Cable Networks provides its main clientele of cable operators with
equipment and systems designed for the construction of transmission network and
signal processing. Deliveries include individual pieces of equipment and turnkey
networks alike. The business also makes available a number of services related
to maintenance of network infrastructure. The main market area of Broadband
Cable Networks is Europe, which business area involves 17 own sales offices
supported by a number of retail and integration partners. Outside Europe,
Broadband Cable Networks has own offices located in China and India.
In the financial period Broadband Cable Networks entered into significant
framework agreements with the largest European cable operators. Value of these
framework agreements was nearly EUR 50 million including a three-year contract
of EUR 23 million with the leading French cable operator Altice. As to the EttH
technology, a significant customer order of approximately EUR 4.6 million was
received from South Korea in December. Concerning our clientele in Europe 2006
continued to be characterised by mergers and changes in ownership relations.
These developments may affect Teleste's position in view of the operators'
choices of suppliers for products and services.
Broadband Cable Networks' growth in 2006 was ensured by our efforts designed to
shorten the turnaround times in product development, strengthen the
subcontractor network and logistics. Orders received by Broadband Cable Networks
increased by 27.4% amounting to EUR 92.8 (72.9) million. Net sales grew by 27.3%
amounting to EUR 85.6 (67.2) million. Operating profit grew by 22.9% equalling
EUR 9.1 (7.4) million. At the year-end order backlog stood at EUR 26.7 (19.4)
million. In Q4 orders received amounted to EUR 29.7 (21.0) million, net sales
totalled EUR 23.8 (19.2) million while the operating profit stood at EUR 1.8
(2.5) million.
We expect the profitable growth of Broadband Cable Networks to continue in 2007
with improvements taking place in profitability. In our estimate this growth
will be driven by the comprehensive Access network solutions, EttH deliveries
and provided services. We expect profitability to improve through targeted cost
control projects and growth.
Video Networks
Clientele of Video Networks consists mainly of public sector organisations and
system integrators. In the financial period this clientele was expanded to
include video surveillance solutions for industrial areas through acquisition of
Suomen Turvakamera. The business area has focussed on high-quality video
surveillance systems transferring real-time video, audio and data. In April
Video Networks concluded a new three-year framework agreement with British
Telecom with a value exceeding EUR 10 million. The business area provides
solutions for traffic control and surveillance of city centres as well as
industry-specific turnkey solutions. The technology involved in these
applications is developing rapidly. In the financial period the delivery project
for the French National Railroad Authority (SNCF) played a key role.
Significance of technical integration in the unit's operations will increase in
the future.
The business has seven sales offices in Europe with offices outside Europe
located in the United States, China and Thailand. R&D efforts involved mainly
development of network systems.
Orders received by Video Networks increased by 15.5% amounting to EUR 14.4
(12.5) million. Net sales grew by 5.3% amounting to EUR 16.2 (15.4) million.
Operating profit stood at EUR 0.7 (1.2) million. Decreased profitability was
caused by investments made in resource allocation for video network management
projects, product development and strengthening of sales organisation. At the
year-end order backlog stood at EUR 1.5 (3.3) million.
In Q4 orders received amounted to EUR 4.2 (3.5) million with net sales equalling
EUR 4.6 (5.1) million. Operating profit stood at EUR 0.3 (0.6) million.
In 2007 price competition will intensify especially in the area of network
solutions. Large companies have entered the market. Based on the favourable
development in sales pipeline we estimate the net sales for Video Networks to
pick up in 2007 driven by factors like new network management projects.
Profitability will improve along with the growth.
Business Areas by Geography
In geographical terms, the Group's business areas are divided up into
Scandinavia, rest of Europe and others.
Scandinavia:
Net sales in the Nordic countries amounted to EUR 32.2 (31.4) million.
Investments for the area totalled EUR 5.8 (3.3) million.
Rest of Europe:
Net sales for the rest of Europe stood at EUR 62.1 (45.7) million while the
investments made in the area amounted to EUR 0.1 (0.2) million.
Others:
Net sales were up to EUR 7.4 (5.5) million. Investments totalled EUR 0.3 (0.6)
million.
Group Structure
Acquisitions in the financial period include purchasing of share capital of the
Finnish Suomen Turvakamera Oy and the Swedish PromaCom AB. The parent company of
Teleste Group has branch offices in Belgium, China, Denmark, France, India, the
Netherlands, Poland, Spain and Thailand with subsidiaries in 10 countries
outside Finland.
General Meetings
The Annual General Meeting on 4 April 2006 confirmed the financial statements
for 2005 and discharged the Board and the CEO from liability for the financial
period. The Meeting confirmed the dividend of EUR 0.16 per share proposed by the
Board. The dividend was paid out on 18 April 2006.
Moreover, the AGM elected Mr. Tapio Hintikka as Chairman of the Board of
Directors while Mr. Tero Laaksonen, Mr. Pertti Raatikainen, Mr. Timo Toivila and
Mr. Pekka Vennamo were elected as members of the Board of Directors.
The AGM authorised the Board to acquire the maximum of 1,215,000 of the
company's own shares and to convey 1,700,000 company's own shares. The
authorisation concerning own shares includes possibility of purchasing and
conveying own shares to be used in stock-based incentives. The AGM authorised
the company to increase the share capital by new issue of no more than EUR
1,360,000 being equal to 3.4 million shares. These authorisations expire on 4
April 2007. In the period the authorisations granted by the AGM were used by
conveying 30,000 own shares in the acquisition of the capital stock of Suomen
Turvakamera Oy; other authorisations were not used. At the balance sheet date,
based on authorisations granted in 2001 and 2002, the company is in possession
of 455,000 of its own shares.
Management and the Auditors
CEO of the company has been Mr. Jukka Rinnevaara. The AGM elected KPMG Oy Ab as
the auditor.
Shares and Changes in Share Capital
The largest single shareholder at the end of 2006 was the Sampo Life Insurance
Company Ltd with a 9.34% holding.
In January 2006, Ilmarinen Mutual Pension Insurance Company reported its
ownership having increased up to 5.42%. In August 2006, Schroder Investment
Management Limited flagged their holding to have reached 5.01%.
The share price low in 2006 was EUR 6.46 (5.85) and the high EUR 12.75 (8.35).
Closing price at the end of the year stood at EUR 11.63 (7.45). During the year,
14.2 million (10.8 million) shares were traded on the Helsinki Exchanges; these
shares represented 81.4% (62.3%) of the share capital.
Options allotted for Teleste key employees were listed on the Helsinki Exchanges
on 1 February 2006. In the period 10,000 own shares were subscribed using 2002A
options and 39,550 using 2002B options.
At the balance sheet date the companys registered share capital amounted to EUR
6,955,720.80, divided up into 17,389,302 shares; out of these the company was
holding 455,000 shares. At the balance sheet date the shares in company
possession, when put against the total amount of shares and votes, equalled
2.6%.
Other matters affecting the company governance will be stated in the annual
report under Good Governance.
Outlook for 2007
New services provided by the cable operators such as HDTV, broadband Internet,
VoIP and interactive digital services necessitate investments for the network
upgrades and increased capacity. We believe the favourable market situation will
continue for Broadband Cable Networks. In combination with cost control measures
the wide range of products and services provided by the business area create
conditions for continued profitable growth also in 2007. The increased need for
security and more effective traffic infrastructure will promote demand in the
Video Networks' market. We believe that deliveries of the high-quality network
management systems provided by Video Networks will increase in 2007.
Teleste will continue to grow profitably in 2007 focussing on making the
production process even more effective and speeding up the turnaround times in
product development. The new circuit production line will increase the
production capacity right in the first half of the year.
Board of Directors' Proposal for Dividends
As to the Annual General Meeting to be held on 3 April 2007, the Board proposes
that a dividend of EUR 0.20 (EUR 0.16) per share be paid to the outstanding
shares for the year 2006.
30.January 2007
TELESTE CORPORATION Jukka Rinnevaara
Board of Directors President and CEO
CONSOLIDATED INCOME STATEMENT, 1000 euros
1.1.-31.12. 1.1.-31.12. Change %
2006 2005
Net sales 101 773 82 588 23.2 %
Other operating income 2 158 1 530 41.0 %
Change in inventories of finished products and work in progress
6 066 761 697.1 %
Raw material and consumables used -54 743 -36 443 50.2 %
Employee benefits expense -27 100 -24 124 12.3 %
Depreciation and amortisation expenses -2 393 -1 940 23.3 %
Other operating expenses -16 006 -13 791 16.1 %
Operating profit 9 755 8 582 13.7 %
Financial income 194 280 -30.7 %
Financial expenses -661 -541 22.2 %
Profit before taxes 9 288 8 321 11.6 %
Taxes -2 408 -2 363 1.9 %
Profit for the period 6 879 5 956 15.5 %
Attributable to:
Equity holders of the parent 6 879 5 956 15.5 %
Earnings per share for profit of the year attributable to the equity
holders of the parent
Basic (expressed in euro per share) 0.41 0.35 15.2 %
Diluted (expressed in euro per share) 0.38 0.33 15.7 %
CONSOLIDATED BALANCE SHEET, 1000 euros
31.12.2006 31.12.2005 Change %
Assets
Non-current assets
Property, plant and equipment 5 578 5 860 -4.8 %
Goodwill 12 127 9 205 31.7 %
Other intangible assets 3 614 2 589 39.6 %
Available-for-sale investments 1 116 1 116 0.0 %
Total 22 435 18 770 19.5 %
Current assets
Inventories 16 604 9 623 72.5 %
Trade and other receivables 22 409 17 878 25.3 %
Financial assets at fair value through profit or loss
0 2 000 n/a
Cash 6 789 6 524 4.1 %
Total 45 801 36 025 27.1 %
Total assets 68 236 54 795 24.5 %
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital 6 955 6 935 0.3 %
Share premium 1 417 1 276 11.1 %
Translation differences 65 70 -7.1 %
Retained profits 29 224 24 025 21.6 %
Total 37 661 32 306 16.6 %
Non-current liabilities
Interest-bearing liabilities 742 706 5.1 %
Other liabilities 0 373 n/a
Deferred tax liabilities 368 60 513.3 %
Provisions 425 515 -17.5 %
Total 1 535 1 654 -7.2 %
Current liabilities
Trade and other liabilities 20 045 15 022 33.4 %
Current tax payable 875 1 101 -20.5 %
Provisions 850 1 502 -43.4 %
Interest-bearing liabilities 7 270 3 210 126.5 %
Total 29 040 20 835 39.4 %
Total liabilities 30 575 22 489 36.0 %
Equity and liabilities total 68 236 54 795 24.5 %
CONSOLIDATED CASH FLOW STATEMENT, 1000 euros
1.1.- 1.1.- Change %
31.12. 31.12.
2006 2005
Cash flows from operating activities
Profit for the period 6 879 5 956 15.5 %
Adjustments for:
Non-cash transactions 3 407 2 908 17.2 %
Interest and other financial expenses 661 541 22.2 %
Interest income -188 -276 -31.9 %
Dividends -6 -4 50.0 %
Taxes 2 100 1 955 7.4 %
Change in working capital
Increase in trade and other receivables -3 938 -5 450 -27.7 %
Increase in inventories -6 651 -1 715 287.8 %
Increase in trade and other payables 3 392 3 026 12.1 %
Decrease in provisions -742 -48 1445.8 %
Paid interests and other financial expenses
-521 -781 -33.3 %
Received interests and dividends 194 280 -30.7 %
Paid taxes -1 912 -855 123.6 %
Cash flow from operating activities 2 675 5 537 -51.7 %
Cash flow from investing activities
Acquisition of subsidiary, net of cash acquired
-3 078 -1 854 66.0 %
Purchases of property, plant and equipment (PPE)
-699 -968 -27.8 %
Purchases of intangible assets -1 734 -1 790 -3.1 %
Proceeds from sales of PPE 376 0 n/a
Net cash used in investing activities -5 136 -4 612 11.4 %
Cash flow from financing activities
Proceeds from borrowings 4 000 3 000 33.3 %
Payments of borrowings -460 -10 386 -95.6 %
Payment of finance lease liabilities -273 -137 99.3 %
Dividends paid -2 697 -2 022 33.4 %
Proceeds from issurance of ordinary shares 161 0 n/a
Net cash used in financing activities 731 -9 545 n/a
Change in cash
Cash and cash equivalents 1.1. 8 524 17 108 -50.2 %
Effect of currency changes -5 36 n/a
Cash and cash equivalents 31.12. 6 789 8 524 -20.4 %
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY, 1000 euros
Attributable to equity holders of the parent
Share Share Transla Retai Total
capital premium tion ned
differences profits
Equity 31.12.2005 6 935 1 276 70 24 025 32 306
Profit for the period 6 879 6 879
Dividends -2 697 -2 697
Share issue 0
Equity-settled share-based payments 1 017 1 017
Used share options 20 141 161
Exchange differences -5 -5
Equity 31.12.2006 6 955 1 417 65 29 224 37 661
BUSINESS SEGMENTS 2006, 1000 euros
Broadband Cable Video Group
Networks Networks
External sales
Services 2 813 195 3 008
Goods 82 738 16 027 98 765
External sales total 85 551 16 222 101 773
Operating profit of segments 9 055 700 9 755
Unallocated expenses -2 876
Profit for the period 6 879
Segments assets 46 927 14 520 61 447
Unallocated assets 6 789
Total assets 68 236
Segments liabilities 17 909 3 411 21 320
Unallocated liabilities 9 255
Total liabilities 30 575
Capital expenditure for the period 2 032 4 143 6 175
Depreciations for the period 1 863 530 2 393
BUSINESS SEGMENTS 2005, 1000 euros
Broadband Cable Video Group
Networks Networks
External sales
Services 2 291 87 2 378
Goods 64 888 15 322 80 210
External sales total 67 179 15 409 82 588
Operating profits of the segments 7 374 1 208 8 582
Unallocated expenses -2 626
Profit for the period 5 956
Segments assets 35 786 10 485 46 271
Unallocated assets 8 524
Total assets 54 795
Segments liabilities 13 648 3 757 17 405
Unallocated liabilities 5 084
Total liabilities 22 489
Capital expenditure for the period 2 726 1 347 4 073
Depreciation for the period 1 607 333 1 940
GEOGRAPHICAL SEGMENTS 2006, 1000 euros
Nordic Other Others Group
countries Europe
Sales by origin 32 200 62 100 7 473 101 773
Assets 51 381 15 115 1 740 68 236
Capital expenditure for the period
5 838 87 250 6 175
GEOGRAPHICAL SEGMENTS 2005, 1000 euros
Nordic Other Others Group
countries Europe
Sales by origin 31 354 45 728 5 506 82 588
Assets 43 010 8 799 2 986 54 795
Capital expenditure for the period
3 323 200 550 4 073
COMMITMENTS AND CONTINGENCIES
2006 2005 Change %
Guarantees 819 340 140.9 %
Rental liabilities 1 659 707 134.7 %
Lease liabilities 1 937 1 072 80.7 %
Value of underlying forward contracts 9 980 16 503 -39.5 %
Market value of forward contracts 10 124 16 597 -39.0 %
THE AVERAGE NUMBER OF EMPLOYEES BROKEN DOWN BY FOLLOWING CATEGORIES
2006 2005 Change %
Research and development 131 121 8.3 %
Production and material management 297 274 8.4 %
Sales and marketing 148 124 19.4 %
Finance, quality and IT 32 27 18.5 %
Total 608 546 11.4 %
KEY FIGURES
FAS FAS IFRS IFRS IFRS
2002 2003 2004 2005 2006
Profit and loss account, balance sheet
Net sales, Meur 66.8 54.2 66.0 82.6 101.8
Change % -34.9 % -18.8 % 21.8 % 25.1 % 23.2 %
Sales outside Finland, %
82.6 % 81.9 % 85.1 % 89.3 % 90,6 %
Operating profit, Meur -4.3 1.8 5.6 8.6 9.8
% of net sales -6.4 % 3.3 % 8.5 % 10.4 % 9.6 %
Profit after financial items, Meur
-5.1 1.5 5.4 8.3 9.3
% of net sales -7.6 % 2.8 % 8.2 % 10.1 % 9.1 %
Profit before taxes, Meur
-8.2 1.5 5.4 8.3 9.3
% of net sales -12.3 % 2.8 % 8.2 % 10.1 % 9.1 %
Profit for the financial period, Meur
-7.1 1.7 3.9 6.0 6.9
% of net sales -10.6 % 3.1 % 5.9 % 7.2 % 6.8 %
R&D expenditure, Meur 6.6 5.8 6.9 8.6 9.8
% of net sales 9.9 % 10.7 % 10.4 % 10.5 % 9.6 %
Gross investments, Meur 1.3 3.4 5.4 4.1 6.2
% of net sales 1.9 % 6.3 % 8.2 % 4.9 % 6.1 %
Interest bearing liabilities, Meur
15.0 10.0 10.8 3.9 8.0
Shareholder's equity, Meur
24.6 27.0 27.7 32.4 37.7
Total assets, Meur 52.0 48.1 54.4 54.8 68.2
Personnel and orders
Average personnel 506 452 492 546 608
Order backlog at year end, Meur
9.7 6.6 20.7 22.7 28.1
Orders received,Meur 59.5 52.2 80.5 85.4 107.2
Key metrics
Return on equity, % -14.2 % 7.1 % 15.1 % 19.8 % 19.7 %
Return on capital employed, %
-7.6 % 5.3 % 16.1 % 23.7 % 24.3 %
Equity ratio, % 44.8 % 49.3 % 51.1 % 59.1 % 55.3 %
Gearing, % 5.8 % -17.7 % -22.9 % -14.3 % 3.2 %
Earnings per share, eur
-0.25 0.10 0.23 0.35 0.41
Earnings per share fully diluted, eur
-0.25 n/a 0.22 0.33 0.38
Shareholders equity per share, eur
1.41 1.41 1.65 1.92 2.22
Teleste share
Highest price, eur 14.00 6.49 7.06 8.35 12.75
Lowest price, eur 2.21 2.40 5.14 5.85 6.46
Closing price, eur 2.47 5.41 6.02 7.45 11.63
Average price, eur 5.52 4.41 6.03 6.97 9.83
Price per earnings -10.0 53.7 25.8 21.0 28.6
Market capitalization, Meur
40.5 90.3 101.4 129.2 202.2
Stock turnover, Meur 82.7 43.7 74.2 75.3 138.9
Turnover, number in millions
15.0 9.9 12.3 10.8 14.2
Turnover, % of share capital
88.0 % 57.2 % 70.9 % 62.3 % 81.4%
Average number of shares
16974287 17094910 17334235 17339752 17363102
Number of shares at the year-end
17035400 17304248 17339752 17339752 17389302
Number of shares subscribed, not registered 31.12.
23304 0 0 0
Average number of shares, diluted, w/o own shares
18567329 18715000 17918580 18001437 18022505
Number of shares at the year-end diluted, w/o own shares
18715000 18715000 17999752 18004752 18034752
Paid dividend, Meur 1.3 1.3 2.0 2.7 3.4
Dividend per share,eur 0.08 0.08 0.12 0.16 *0.20
Dividend per net result, %
-32.5 % 79.4 % 52.2 % 45.7 % 49.1%
Effective dividend yield, %
3.2 % 1.5 % 2.0 % 2.1 % 1.7 %
* The Board's proposal to the AGM
Sector Dispersion Shares %
Companies 1,624,417 9.34%
Financial institutions 5,128,736 29.49%
Public institutions 2,713,131 15.60%
Nonprofit organisations 1,020,430 5.87%
Private individuals 3,332,370 19.16%
Foreign and nominee-registered 3,570,218 20.53%
Total 17,389,302 100.00%
Major Shareholders Shares %
1.Sampo Life Insurance Company Ltd 1,624,200 9.34%
2.Ilmarinen Mutual Pension 1,284,931 7.39%
Insurance Company
3.Kaleva Mutual Insurance Company 785,900 4.52%
4.Op-Suomi Pienyhtiöt 588,900 3.39%
5.FIM Fenno Mutual Fund 572,639 3.29%
6.Aktia Capital Mutual Fund 521,450 3.00%
7.Varma Mutual Pension Insurance 508,150 2.92%
Company
8.State Pension Fund 500 000 2.88%
9.Teleste Corporation 455 000 2.62%
10Fondita Nordic Small Cap Placfond 360 000 2.07%
ADDITIONAL INFORMATION:
CEO Jukka Rinnevaara, tel +358 2 2605 866 or +358 400 747 488
DISTRIBUTION:
Helsinki Exchanges
Media
www.teleste.com