Financial Highlights Q and Financial Statement 2015

Transcription

1 Financial Highlights Q and Financial Statement 2015 Enabling digital evolution 4 February 2016 CEO Jukka Rinnevaara

2 Disclaimer This presentation has been prepared by the Company. The information on which it is based has not been independently verified by any other person. This presentation is not intended to provide the basis of any investment decision and should not be considered as a recommendation by the Company or any other person to the recipients of the presentation. Each person to whom this presentation is made must make his/her own independent assessment of the Company after making such investigations as he/she deems necessary. This presentation does not constitute an offer of or invitation to acquire any shares or other securities in the Company. Nothing in this presentation is, or should be relied upon as, a promise or representation as to the future. Company restricted 2

3 We make Company restricted

4 your everyday life easier, safer and more efficient Company restricted

5 Business Areas Video and Broadband Solutions Broadband networks and video security and information solutions Network Services Comprehensive service solutions for cable networks Company restricted

6 Achievements and events in Q 2Q 3Q 4Q Teleste strengthens its position as an end-to-end video security and information solution provider in the rail segment through the acquisition of Mitron. Teleste enters into an agreement with Samsung Electronics on a high-security IPTV solution for the hotel segment. Teleste's subsidiary Cableway signs a three-year frame agreement with the German company Kabel Deutschland. Belgian Telenet selects Teleste for the supplier of their giga network project. Belgian Integan selects Teleste for the upgrade of their 1.2 GHz networks. Teleste introduced a pioneering complete product portfolio in compliance with the DOCSIS 3.1 standard, providing 1 Gbps capacity. ASFiNAG chose Teleste's video security solution for the monitoring of the entire Austrian motorway network. Deliveries of Teleste's AC network products exceeded the number of 400,000 products sold. Teleste presents a unique smart home solution, which guarantees the protection of privacy. Teleste signed a contract on an overall delivery of a optical broadband network with the Dutch Delta operator. Canal Digital Cable TV selects Teleste for the provider of their next-generation broadband network upgrade project. Teleste achieved the highest net sales and operating profit in the Company's history. The City of Turku and Teleste signed a partnership agreement on the Smart City development project. Orders received and net sales were the best in Teleste's history. Company confidential

7 Overview Q Net sales 68,4 MEUR (53,9), +27,0 % Operating profit 3,3 MEUR (3,5), -7,1 % Earnings per share 0,16 EUR (0,17), -8,0 % Operative cash flow 3,5 MEUR (7,5) -53,7 % Orders received 68,2 MEUR (53,0), +28,7 % Net sales, M Operating profit, M EPS, Operative cash flow, M 54,0 53,9 68,4 3,5 3,5 3,3 0,17 0,17 0,16 2,7 7,5 3,

8 Teleste Group Q highlights Orders received was all-time high in Teleste s history. Strong customer demand continued especially in HFC access network products. Net sales grew year-on-year and sequentially. Net sales was all-time high in Teleste s history. Growth driven by HFC access network products and passenger information solutions acquired from Mitron. EBIT reduced slightly due to network services business, HFC product sales-mix and increased operating expenses. Operative cash flow declined resulting from increased net working capital in growing Video and Broadband Solutions business. Q Q YoY change Q QoQ change Orders received, M 68,2 53,0 28,7 % 62,0 10,0 % Net sales, M 68,4 53,9 27,0 % 66,2 3,3 % EBIT, M 3,3 3,5-7,1 % 5,9-44,8 % EBIT-% 4,8 % 6,5 % 8,9 % Net profit, M 2,9 3,1-6,3 % 4,2-30,9 % EPS, 0,16 0,17-8,0 % 0,23-30,9 % Operative cash flow, M 3,5 7,5-53,7 % 4,8-28,6 %

9 Video and Broadband Solutions Q highlights Orders received was all-time high in Video and Broadband Solutions history. Strong customer demand continued especially in HFC access network products. Passenger information solutions acquired from Mitron were on top of the organic growth. Net sales grew year-on-year. Growth was driven by HFC access network products and passenger information solutions. The UK, Belgium and the Netherlands were growing markets. EBIT increased in video security and information solutions. Q Q YoY change Q QoQ change Orders received, M 43,4 28,6 51,6 % 39,6 9,6 % Net sales, M 43,6 29,5 47,7 % 43,8-0,4 % EBIT, M 2,7 2,6 1,9 % 5,1-47,9 % EBIT-% 6,1 % 8,9 % 11,7 % Average personnel ,5 % 712-2,1 %

10 Network Services Q highlights Net sales grew in the UK and declined in Germany. EBIT reduction took place in the UK and Germany. Ramp-up of new customer project and losses from business expansion were the reasons for losses in the UK. In Germany the profitability was slightly below the reference period. Q Q YoY change Q QoQ change Orders received, M 24,8 24,4 1,8 % 22,4 10,6 % Net sales, M 24,8 24,4 1,8 % 22,4 10,6 % EBIT, M 0,6 0,9-33,2 % 0,8-25,2 % EBIT-% 2,4 % 3,9 % 3,6 % Average personnel ,3 % 788 0,0 %

11 Teleste Group, January - December YoY change Orders received, M 251,3 199,3 26,1 % Net sales, M 247,8 197,2 25,7 % EBIT, M 14,3 11,1 28,4 % EBIT-% 5,8 % 5,6 % Net profit, M 11,0 8,5 29,8 % EPS, 0,61 0,48 27,6 % Operative cash flow, M 4,9 9,2-46,7 %

12 Video and Broadband Solutions, January - December YoY change Orders received, M 158,0 109,0 44,9 % Net sales, M 154,4 106,9 44,4 % EBIT, M 12,8 9,7 32,1 % EBIT-% 8,3 % 9,0 % Average personnel ,5 %

13 Network Services, January - December YoY change Orders received, M 93,4 90,3 3,4 % Net sales, M 93,4 90,3 3,4 % EBIT, M 1,5 1,5 3,9 % EBIT-% 1,6 % 1,6 % Average personnel ,3 %

14 Orders Received Teleste Group ,3 Orders received, M ,1 189,7 188,9 53,5 50,8 50,2 199,3 53,0 68,2 4Q 3Q 2Q 1Q

15 Order Backlog at the end of period Teleste Group ,2 30 M ,2 17,0 13,1 15,

16 Earnings Before Interests and Taxes Teleste Group EBIT, M ,4 4,1 10,9 11,0 11,1 2,7 3,5 3,5 14,3 3,3 4Q 3Q 2Q 1Q

17 Earnings Per Share Teleste Group 0,70 0,60 0,61 EPS, EUR 0,50 0,40 0,30 0,20 0,36 0,17 0,38 0,09 0,47 0,48 0,17 0,17 0,16 4Q 3Q 2Q 1Q 0,10 0,

18 Equity Ratio Teleste Group 60% 50% 40% 41,6 % 50,5 % 52,7 % 53,4 % 48,3 % 30% 20% 10% 0%

19 Gearing Teleste Group 50% 40% 30% 32,2 % 20% 26,3 % 10% 13,7 % 13,8 % 9,5 % 0%

20 Outlook 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. Network capacity will continue to increase driven by the new broadband and video services provided by the operators. Our new products in line with the Docsis 3.1 communication standard allow the cable operators to increase their network capacity competitively. Price erosion in the market continues. Changes in the value of the euro, particularly against the US dollar and the Chinese renminbi, affect Teleste s competitiveness, on the one hand, and product manufacturing costs, on the other. The positive trend in the markets for video security and passenger information solutions will continue whereas the public sector decisions concerning initiation of projects may be delayed by the current economic situation. The security solution for public areas introduced in Paris provides new opportunities for other major cities of the world. Train manufacturers and public transport operators benefit from Teleste's video security and passenger information 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 value. In the UK, our aim is to improve the profitability of the provided services. We estimate the demand for all-inclusive network services in our key target markets to continue at least at the previous year level. We estimate that net sales and operating profit for 2016 will exceed the 2015 level.

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