Tekla Corporation Financial statemens bulletin February
11, 2011 at 9:00 a.m.
Tekla Corporation's Financial Statements Bulletin January 1 - December 31, 2010:
Results for 2010 were good
Net sales of Tekla Group for January-December 2010 totaled 57.83 (50.07) million
euros, increasing by 15.5%. The operating result was 10.06 (6.81) million euros,
17.4% (13.6%) of net sales. Earnings per share were 0.36 (0.23) euros. The Board
of Directors proposes to the Annual General Meeting that 0.25 euros be paid as
dividend and 0.35 euros as repayment of equity, for a total of 0.60 euros per
share.
Net sales for the fourth quarter amounted to 16.89 (14.29) million euros,
increasing by 18.2%. The operating result for the quarter was 3.17 (2.20)
million euros, or 18.8% (15.4%) of net sales.
Ari Kohonen, President and CEO, comments on the reporting period:
- All in all, we can be satisfied with Tekla's development in 2010. The markets
have strengthened but not yet recovered to the level of 2007 - 2008. Our net
sales increased and our profitability improved considerably. In our view, the
market trend that is favorable to us will continue, and we will continue to
focus on developing, for example, our software offering. Even though last year
was a good one, we have prerequisites for clearly even better results through
our own measures, especially with the general market situation improving.
- A significant part of product development concerned the Tekla BIMsight
software, which will be launched in the middle of February. The software,
offered to the construction industry, is meant to promote the establishment of
information modeling as the dominant practice in the industry. This is an
investment in the future, emphasizing the long-term nature of our business
decisions. 0.89 million euros of R&D expenses associated with the development of
the software were capitalized.
- Tekla's net sales for the fourth quarter were the all-time high in the
company's history, almost 17 million euros. The operating result for the quarter
was at a good level, even if not record high.
- Our main business area, Building & Construction, increased its net sales by
almost 19% in 2010, and its operating result improved clearly. During the fourth
quarter, net sales increased considerably and operating result more than
doubled. Full-year license sales increased by 27% compared to the previous year.
The development of maintenance sales was also favorable, up 12%.
- In terms of the market areas, license sales increased the most in the Middle
East and Nordic countries during the fourth quarter. In terms of Tekla's largest
market areas, full-year license sales increased the most in the Nordic
countries, India, the Middle East and the Far East. The United States was
Tekla's largest individual market in 2010 as well, and due to the favorable
fourth quarter, full-year sales increased in the U.S. as well.
- Infra & Energy's annual development was satisfactory. I&E's net sales
increased by approximately 7%, but its operating result decreased slightly from
the previous year. The number of personnel was increased in order to develop the
product offering. Once again, the net sales for the fourth quarter were the
highest of all quarters, and Q4 operating result accounted for more than one
half of the full-year operating result.
- The business area announced at the end of January that it will renew its
software offering commercially. The purpose of the renewed Tekla Solutions
offering is to sell Infra & Energy software especially to new customers and new
types of customers in Finland and internationally.
- The number of personnel increased by 24 people during the year. The average
number of personnel during 2010 increased by 5 persons on the previous year.
Our long-term personnel trend continues to be rising in order to be able to
utilize the market potential in sight.
The Board of Directors estimates net sales will increase by 10% to 15% in 2011.
The operating result is estimated to be better than the previous year, 15% to
20% of net sales. The estimates are based on organic growth in net sales.
NET SALES AND PROFITABILITY
* Net sales of Tekla Group for January-December 2010 were 57.83 million euros
(50.07 million euros
in January-December 2009). Net sales increased by 15.5%.
* Operating result was 10.06 (6.81) million euros.
* Operating result percentage was 17.4 (13.6).
* Earnings per share were 0.36 (0.23) euros.
* Return on investment was 34.1 (24.5) percent.
* Return on equity was 25.7 (17.4) percent.
FINANCIAL POSITION
* Cash flow from operating activities totaled 9.74 (6.89) million euros.
* Liquid assets amounted to 29.49 (26.65) million euros on December 31. The
assets have been invested in money market instruments with very low risk.
* Equity ratio was 72.1 (73.1) percent.
* Interest-bearing debts were 0.12 (0.13) million euros.
* Changes in exchange rates had such an effect that the weakening of the euro
against the Group's invoicing currencies had a slightly positive effect on net
sales and operating result. The effect was the highest in the fourth quarter.
OTHER KEY FIGURES
* International operations accounted for 79% (81%) of net sales.
* Personnel averaged 461 (456) for January-December.
* At year's end, the number of personnel including part-time staff was 490
(466).
* Equity per share was 1.51 (1.33) euros.
* On the last trading day of December, trading closed at 9.35 (6.35) euros.
* Gross investments were 3.73 (1.71) million euros.
* Research and product development expenses amounted to 26,4 (28.9) percent of
net sales.
* 0.89 (0) million euros of R&D expenses were capitalized. No corresponding
projects have taken place previously.
* The Board of Directors proposes to the Annual General Meeting that 0.25 euros
be paid as dividend and 0.35 euros as repayment of equity, for a total of 0.60
euros per share.
BUSINESS AREAS
NET SALES
Q1-4/ Q1-4/
Million euros 2010 2009 Change Q4/2010 Q4/2009
-----------------------------------------------------------
Building & Construction 43.08 36.34 6.74 12.21 9.90
Infra & Energy 14.81 13.80 1.01 4.70 4.41
Sales between segments -0.06 -0.07 0.01 -0.02 -0.02
-----------------------------------------------------------
Total 57.83 50.07 7.76 16.89 14.29
OPERATING RESULT
Q1-4/ Q1-4/
Million euros 2010 2009 Change Q4/2010 Q4/2009
-----------------------------------------------------------
Building & Construction 8.23 4.72 3.51 2.26 1.05
Infra & Energy 1.92 2.08 -0.16 1.03 0.95
Others -0.09 0.01 -0.10 -0.12 0.20
-----------------------------------------------------------
Total 10.06 6.81 3.25 3.17 2.20
GEOGRAPHICAL DISTRIBUTION OF NET SALES
2010 2009
% %
Finland 20.7 18.9
Rest of Europe 35.9 38.4
North America 15.5 17.5
Asia 22.2 19.8
Other countries 5.7 5.4
-----------------------------------------
100.0% 100.0%
Total (MEUR 57.83) (MEUR 50.07)
BREAKDOWN OF NET SALES BY CATEGORY*)
Building & Construction
Infra & Energy Tekla total
% of net sales 2010 2009 2010 2009 2010 2009
-----------------------------------------------------------------
Licenses 51 47 16 18 42 39
Recurring 45 48 53 52 47 49
Services 4 5 17 16 7 8
Others 0 0 14 14 4 4
-----------------------------------------------------------------
Total 100 100 100 100 100 100
Million euros 43.08 36.34 14.81 13.80 57.83 50.07
*) Net sales categories:
- License: permanent license to use the sold product version
- Recurring: maintenance income (includes annual product versions and customer
support), repeated subscriptions and SaaS
- Services: implementation support, training and consultation
- Others: e.g. customer- or customer group-specific product projects
Building & Construction
Tekla's Building & Construction business area (B&C) develops and markets the
Tekla Structures software product designed for Building Information Modeling
(BIM). The software offers open integration with other programs and models
imported from them, supporting all the phases of the construction process. Tekla
Structures is a comprehensive solution for structural engineering, design and
production of steel structures and precast units, reinforced concrete detailing
as well as site and construction management.
Tekla's position as a supplier of 3D modeling software is strong and despite the
building industry's partly challenging situation, the number of users is
increasing further. The number of Tekla Structures licenses sold has exceeded
20,000. Customers in the building industry are seeking tools like Tekla's
products that make their operations more efficient. Information modeling is
gaining a stronger foothold in structural design and other stages of the
building process. The benefits of information modeling are seen more clearly in
site management in particular.
Demand has fluctuated strongly in license-based sales. Demand developed
favorably in several market areas in 2010. Large customers accounted for a
higher share of net sales, even though sales continued to be quite fragmented.
The expansion of the product offering and the extensive sales and support
network have contributed to this development.
The net sales of B&C amounted to 43.08 (36.34) million euros for January-
December 2010. The growth in net sales was 18.5% compared to the previous year.
Full-year license sales increased by 27% compared to the previous years. The
development of maintenance sales was also favorable, up 12%. Approximately one
fourth of license sales were generated by functionality for other than detailed
steel design. This share was considerably higher in the Nordic countries than
other markets. B&C's full-year operating result was 8.23 (4.72) million euros
and operating result percentage was 19.1% (13.0%).
During the fourth quarter, B&C's net sales amounted to 12.21 (9.90) million
euros, increasing by 23.3%. B&C's operating result for October-December was
2.26 (1.05) million euros and operating result percentage was 18.5% (10.6%).
International operations accounted for 95% (96%) of B&C's net sales in January-
December 2010. In terms of the market areas, license sales increased the most
in the Middle East and Nordic countries during the fourth quarter. In terms of
Tekla's largest market areas, full-year license sales increased the most in the
Nordic countries, India, the Middle East and the Far East. The United States was
Tekla's largest individual market in 2010 as well, and due to the favorable
fourth quarter, full-year sales increased in the U.S. as well. Significant
development of the customer relationship with Nucor Corporation contributed to
this.
It is very favorable for Tekla that the building industry's move to information-
model-based 3D processes from traditional 2D ways of working continues. Because
of this, the business area's long-term outlook continues to be promising.
Building Information Modeling (BIM) is consolidating its position in the
building industry. This expands the cooperation between the parties of the
construction process. In order to facilitate cooperation, the interoperability
of software is increased further and data exchange between software systems is
improved, so that customers are able to choose the product that is suited the
best for a specific task.
At the end of November 2010, Tekla announced that Max Bögl Group, the largest
private construction company in Germany, had decided to introduce the Tekla
Structures software solution to their operations. The process of designing
concrete elements for construction across the entire company will be handled in
Tekla Structures, including the transfer of data to production planning systems.
At the beginning of November, Tekla and Autodesk announced their cooperation to
enable even better compatibility between their respective Tekla Structures and
Revit software for the construction industry.
In April, Tekla announced that it had signed a framework agreement with the
Swedish company Sweco.
Tekla Structures' functionality for cast-in-place was selected as the "Most
Innovative Product" at the North American construction industry's annual "World
of Concrete" event in March.
During the first quarter, Tekla established a regional office in Singapore to
serve customers throughout Southeast Asia. At the same time, the product
development activity in Malaysia was transferred to Finland.
Measures against software piracy continued both by own efforts and in
cooperation with other parties, such as BSA. The efforts have borne fruit during
2010. Piracy will probably not be completely eradicated.
The product development of Tekla Structures concentrated on development that
supports the advance of BIM and, in particular, enhancing project-related
communication. With regard to product development, investments were increased in
longer-term development of new technology and completely new types of customer
offerings. The Tekla BIMsight software will be launched as a result of this in
February 2011. Additional information on the software is provided in this
release under Events after the reporting period.
The 2010 annual main version of Tekla Structures was released at the beginning
of February.
Infra & Energy
The Infra & Energy business area focuses on the development and sales of model-
based software solutions that support customers' core processes in the
infrastructure and energy sectors. Its key customer industries (products in
parentheses) are energy distribution (Tekla Xpower), public administration
(Tekla Xcity), as well as civil engineering and water (Tekla Xstreet and Tekla
Xpipe).
At the end of January 2011, Infra & Energy announced that it will renew its
product offering, Tekla Solutions. For additional information, see Events after
the reporting period.
In the energy industry, information system acquisitions are strategic
investments for the companies. The economic recession has not had much effect on
these investments. Climate change and the endeavor towards sustainable
development set new requirements for the industry, e.g., with new energy
production methods becoming more common and partial decentralization of
production. In addition, consumers' demands for the reliability of distribution
and energy consumption-related customer service will increase. New technologies,
smart grids and software solutions hold a key role in achieving these
objectives. Tekla's market position as a supplier of energy distribution
information systems is strong in the Nordic and Baltic countries.
In public administration, the tightening economy has decreased income and funds
available for investments. Improved and more extensive utilization of
information technology is seen to be a key solution for achieving efficiency,
self-services and thereby cost-savings. Citizens' services are being extensively
migrated into the Web, and the accessibility of the services can also be
improved this way. Tekla's sales and market position remained strong in Finland.
Infra & Energy's annual development was satisfactory. The net sales for January-
December 2010 totaled 14.81 (13.80) million euros, increasing by approximately
7%. I&E's operating result was 1.92 (2.08) million euros. I&E's operating result
percentage was 13.0% (15.1%). International operations accounted for 34% (42%)
of net sales.
Net sales for the fourth quarter amounted to 4.70 (4.41) million euros, and
operating result was 1.03 (0.95) million euros, or 21.9% (21.5%) of net sales.
Once again, the net sales for the fourth quarter were the highest of all
quarters, and Q4 operating result accounted for more than one half of the full-
year operating result.
With regard to customers in the energy sector, Latvenergo expanded the Tekla
Xpower system by ordering an outage communication solution for customer service
during the second half of 2010. During the fourth quarter, an agreement on the
development of automatic fault limiting functionalities for use support
application was made with Vattenfall Distribution Finland. Implementation
projects with Vattenfall Central Europe Berlin, Vattenfall Heat and a few other
Finnish energy companies were completed.
Agreements on the implementation of the Tekla Xpower district heating
application were made with a Norwegian and a Swedish customer during the second
quarter.
In public administration, several Finnish Tekla Xcity customers ordered out-of-
the-box applications for their municipal e-services towards the end of the year.
The adoption of e-service solutions expanded in Finnish cities.
An agreement was signed with the City of Kuopio in the spring on the
implementation of the Tekla Xcity system as the core solution for the city's
geographic information management.
An application for the utilization of quality data of automatic meter reading in
Tekla Xpower was completed. Agreements were signed with key customers on the
further development of Tekla Xcity. The project focuses on the further
development of Tekla's Web solutions and geographic information analyses. An
application of e-services developed for the collection and centralized
management of geographic information-based feedback data was completed,
initially for customers in the public administration.
PERSONNEL
Tekla Group personnel averaged 461 (456) in January-December 2010; on average
184 (189) worked outside Finland. In these figures, the number of part-time
staff has been converted to correspond to full-time work contribution. At the
end of the year, Tekla personnel totaled 490 (466) including part-time staff, of
whom 188 (192) worked outside Finland.
The number of personnel increased by 24 people during the year. The average
number of personnel increased by 5 persons on the previous year. Tekla's long-
term personnel trend continues to be rising in order to be able to utilize the
market potential in sight.
The average age of Tekla's employees was 38.3 (37.8) years. Of the personnel,
63% (64%) had a higher academic degree or university-level studies. 28% (29%) of
Tekla employees were female, 72% (71%) male. The turnover of personnel was still
lower than the average in the field; 7.6% (3.8%).
The company has an incentive system that covers all employees. Its level is
decided by the Board of Directors. Compensation is linked to the operational
and, in particular, financial performance during the previous year. Tekla has no
options or share-related remuneration systems.
SHARE AND OWNERSHIP STRUCTURE
Shares and share capital
The total number of Tekla Corporation shares at the end of December 2010 was
22,586,200, of which the company owned 96,600. The total book counter value of
those was 2,898 euros representing 0.43% of the company's shares. A total of
652,479.02 euros had been used for acquiring the company's own shares, and their
market value was 903,210 euros on December 31, 2010. The book counter value of
the share is 0.03 euros. At the end of the period, share capital stood at
677,586 euros.
Transfer of treasury shares
Based on the authorization issued by the Annual General Meeting of 2010, a total
of 73,000 treasury shares were transferred as part of the purchase price when
Tekla acquired a 20% share in Construsoft Groep BV at the beginning of May.
Construsoft has been a reseller of Tekla products in several countries for 15
years.
Share price trends and trading
The highest quotation of the share in January-December 2010 was 9.49 (7.88)
euros, the lowest 6.29 (3.40) euros. The average quotation was 7.67 (5.56)
euros. On the last trading day of December, trading closed at 9.35 (6.35) euros.
A total of 5,363,953 (4,419,355) Tekla shares changed hands in January-December
2010 at NASDAQ OMX Helsinki Ltd, amounting to 23.8% (19.6%) of the entire share
capital.
Nominee registered and foreign owners held 18.58% (22.46%) of all shares at the
end of December 2010.
Notifications of changes in shareholding
Ilmarinen Mutual Pension Insurance Company's holdings in Tekla Corporation
increased over the 5% threshold on August 13, 2010. According to the
notification, Ilmarinen's holdings then were in total 1,403,625 shares, which
represented 6.21% of Tekla's shares and voting rights.
The holdings of Threadneedle Asset Management Holdings Limited and Ameriprice
Financial Inc decreased below the 5% threshold on January 21, 2010. According to
the notification, the holdings of Ameriprice Financial Inc and its group
companies totaled then 808,973 shares, which represented 3.582% of Tekla's
shares and voting rights.
ANNUAL GENERAL MEETING
Tekla Corporation's Annual General Meeting was held on April 8, 2010. The AGM
adopted Tekla Corporation's financial statements and consolidated financial
statements for 2009. It also discharged the CEO and the Board members from
liability. The AGM accepted the Board's proposal whereby a dividend of 0.20
euros per share was distributed for 2009, or a total of 4,483,320 euros. The
dividend payment date was April 20, 2010.
Ari Kohonen, Olli-Pekka Laine (Vice Chair), Heikki Marttinen (Chair), Erkki
Pehu-Lehtonen and Reijo Sulonen were re-elected Board members until the
conclusion of the Annual General Meeting in 2011. Timo Keinänen was re-elected
deputy member of the Board. Juha Kajanen continued as the Tekla personnel
representative on the Board with Kirsi Hakkila as his personal deputy.
Ernst & Young Oy, Authorized Public Accountants, was elected as company auditor,
with Erkka Talvinko, Authorized Public Accountant, as the auditor in charge.
The AGM decided on reducing the share premium account shown on the company's
balance sheet of December 31, 2009 by 8,892,678.86 euros by transferring all the
funds in the share premium account to the invested non-restricted equity fund.
The National Board of Patents and Registration of Finland authorized the
reduction of the share premium account in the third quarter. The reduction was
booked in September. Any repayment of equity requires a decision by a general
meeting of shareholders.
The AGM authorized the Board to increase the company's share capital and acquire
or transfer the company's treasury shares. The authorizations are valid until
the next Annual General Meeting, however not later than April 30, 2011.
The Board of Directors exercised the authorization in 2010 to transfer treasury
shares at the beginning of May. This has been discussed under "Share and
ownership structure" in this report.
Change in the composition of the Board of Directors
Heikki Marttinen, the Chairman of the Board of Tekla Corporation, passed away in
November 2010. The Board appointed Olli-Pekka Laine as his successor as
Chairman. Erkki Pehu-Lehtonen replaced Laine as the Vice Chairman of the Board.
EVENTS AFTER THE REPORTING PERIOD
Tekla BIMsight - information model-based tool for project collaboration
Tekla wants to advance information model-based cooperation as an industry
standard and is launching Tekla BIMsight, an easy-to-access Web-based software
tool in mid-February. The software makes the benefits of building information
modeling available to everyone in the industry. It contains all the necessary
information needed to manage and collaborate in a construction project in an
illustrative form. Tekla BIMsight reads and understands a variety of file
formats and it supports software interoperability and industry standardization.
The Tekla BIMsight tool can be used throughout the project from the design phase
to erection and site management.
Tekla Solutions
Tekla announced at the end of January that it will renew the commercial
structure, naming and market message of the Infra & Energy business area
software during 2011. Instead of the previous X products (such as Tekla Xpower
and Tekla Xcity), customers will be offered Tekla Solutions software solutions
that better reflect the customer orientation and modularity of the software as
well as the common elements in the software foundation. The renewal is part of
the development of Tekla's software offering to customers in energy
distribution, public administration and civil engineering.
Tekla Solutions offering supports the sales, delivery and development of
customer group-specific solutions. In addition, the renewed software offering
supports Tekla's objective to sell Infra & Energy software to new customers and
new types of customers both in Finland and internationally.
Composition of the Tekla Management Team
As of January 1, 2011, the Tekla Management Team consists of the following
persons: Ari Kohonen (President and CEO), Anneli Bergström (Vice President,
Human Resources), Ritva Keinonen (Vice President, Product Development, Building
& Construction), Timo Keinänen (CFO), Kai Lehtinen (Senior Vice President, Infra
& Energy business area), Harald Lundberg (Vice President, Information
Management), Heikki Multamäki (Executive Vice President, Business Development),
and Risto Räty (Executive Vice President, Building & Construction business
area).
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
No changes have taken place in the short-term risks and uncertainty factors
during the year. Possible risks and uncertainty factors associated with Tekla's
business are mainly related to the market and competition situation and the
general economic situation. Trends in the building industry have improved in
several market areas, but the development is incoherent. There is still no
certainty of the continued favorable development of the global economy.
A majority of Tekla's net sales comprises of sales of licenses entitling to use
software products. Fluctuation in their demand can be rapid and significant. In
the short term and with rapidly decreasing demand, it is challenging to
proportion fixed personnel expenses, which account for the majority of Tekla's
costs. Tekla is, however, able to react swiftly to growing demand, and profits
from additional sales are good.
The sales of Tekla software are geographically distributed. In addition,
individual customers do not account for a significant share of net sales, and
therefore such risks are not essential.
BOARD'S PROPOSAL FOR THE DISTRIBUTION OF PROFIT
The parent company's distributable equity on December 31, 2010 were 35,932,873
euros, of which net profit for the period amounted to 7,730,713 euros.
Tekla Corporation's Board will propose to the Annual General Meeting, to be held
on April 6, 2011, that a dividend of 0.25 euros and a repayment of equity of
0,35 euros be distributed for a total payment of 0.60 euros per share (totaling
13,493,760 euros). No dividends or repayments of equity shall be paid on the
96,600 shares held by the company.
OUTLOOK FOR 2011
The Board of Directors estimates net sales to increase by 10% to 15% in 2011.
The operating result is estimated to be better than the previous year, 15% to
20% of net sales. The estimates are based on organic growth in net sales and the
expected continuation of the favorable trend in construction activity in Tekla's
central market areas.
FINANCIAL REPORTING
Tekla's Annual Report for 2010 will be published on the company's Web site on
the week of March 7, 2011. The Interim Report for January-March 2011 will be
published on Friday, May 6, 2011.
Espoo, February 10, 2011
TEKLA CORPORATION
Board of Directors
For additional information, please contact:
Ari Kohonen, President and CEO, Tel. +358 50 641 24,
Timo Keinänen, CFO, Tel. +358 400 813 027
firstname.lastname@tekla.com
Distribution: NASDAQ OMX Helsinki Ltd, main media
Tekla will organize an information meeting for analysts and media at WTC
Helsinki, meeting room 2, Aleksanterinkatu 17, on February 11, 2011 at 12 noon -
1 p.m. The event will take place in Finnish.
A conference call in English will take place on the same day at 2:30 p.m.
Finnish time. The telephone number is +358 9 231 44 877, code: 285110#.
- - - -
Tekla Corporation drives the evolution of digital information models with its
software, providing a growing competitive advantage to customers in the
construction as well as infrastructure and energy industries.
Tekla's net sales for 2010 were nearly 58 million euros and operating result 10
million euros. International operations accounted for approximately 80% of net
sales.
Tekla has customers in 100 countries, offices in 15 countries and a worldwide
partner network. Tekla Group currently employs about 500 persons, of whom
approximately 200 are outside Finland. The company's head office is located in
Espoo, Finland. Tekla was established in 1966, making it one of the longest
operating software companies in Finland. www.tekla.com
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
CONSOLIDATED INCOME STATEMENT
Q1-Q4/ Q1-Q4/ Q4/ Q4/
Million euros 2010 2009 Change, % 2010 2009 Change, %
Net sales 57.83 50.07 15.5 16.89 14.29 18.2
Other operating income 0.58 0.33 0.18 0.14
Change in inventories of finished
goods and in work in progress -0.05 0.07 -0.02 0.03
Raw materials and consumables
used -2.08 -2.11 -0.76 -0.69
Employee compensation and
benefit expense -32.06 -28.74 -9.05 -7.80
Depreciation -1.71 -1.57 -0.40 -0.41
Other operating expenses -12.54 -11.24 -3.69 -3.36
Share of results in associated
companies 0.09 0.02
Operating result 10.06 6.81 47.7 3.17 2.20 44.1
% of net sales 17.40 13.60 18.77 15.40
Financial income 1.81 2.01 0.30 0.44
Financial expenses -1.11 -1.56 0.06 -0.33
Profit (loss) before taxes 10.76 7.26 48.2 3.53 2.31 52.8
% of net sales 18.61 14.50 20.90 16.17
Income taxes -2.58 -2.02 -0.83 -0.56
Result for the period 8.18 5.24 56.1 2.70 1.75 54.3
Attributable to:
Owners of the parent 8.18 5.24 2.70 1.75
Earnings per share for profit
attributable to the owners of the
parent (EUR) 0.36 0.23 0.12 0.08
Earnings are not diluted.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Q1-Q4/ Q1-Q4/ Q4/ Q4/
Million euros 2010 2009 Change, % 2010 2009 Change, %
Result for the period 8.18 5.24 56.1 2.70 1.75 54.3
Other comprehensive income
for the period, net of tax:
Transl. differences -0.18 0.08 -0.05 0.00
Changes in available-for-sale
investments -0.06 -0.15 -0.02 -0.18
Total -0.24 -0.07 -242.9 -0.07 -0.18 61.1
Total comprehensive income for
the period 7.94 5.17 53.6 2.63 1.57 67.5
Attributable to:
Owners of the parent 7.94 5.17 2.63 1.57
CONDENSED BALANCE SHEET
Million euros 12/2010 12/2009 Change, %
Assets
Non-current assets
Property, plant and equipment 1.34 1.42
Goodwill 0.14 0.19
Intangible assets 2.69 2.03
Investments in associated companies 1.36
Other financial assets 0.12 1.64
Receivables 0.36 0.36
Deferred tax assets 0.64 0.44
Non-current assets, total 6.65 6.08 9.4
Current assets
Inventories 0.06 0.11
Trade and other current receivables 11.23 9.74
Tax receivables 0.05 0.13
Other financial assets 21.34 20.04
Cash and cash equivalents 8.18 5.13
Current assets, total 40.86 35.15 16.2
Assets total 47.51 41.23 15.2
Equity and liabilities
Equity
Share capital 0.68 0.68
Share premium account 8.89
Invested non-restricted equity fund 9.16
Other own capital 1.56 1.80
Retained earnings 22.47 18.53
Equity total 33.87 29.90 13.3
Non-current liabilities
Deferred tax liabilities 0.07 0.10
Interest-bearing liabilities 0.04 0.08
Non-current liabilities total 0.11 0.18 -38.9
Current liabilities
Trade and other payables 13.04 11.05
Tax liabilities 0.41 0.04
Current interest-bearing liabilities 0.08 0.06
Current liabilities total 13.53 11.15 21.3
Liabilities total 13.64 11.33 20.4
Equity and liabilities total 47.51 41.23 15.2
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Attributable to the owners of the parent
Inv.
non-
Share Fair Acc. restr.
Share prem. Other value transl. equity Ret.
capital acct funds res. diff. fund earn. Total
Equity
Jan 1, 2009 0.68 8.89 1.33 0.24 -0.53 19.72 30.33
Payment of
dividend -5.60 -5.60
Transfer from
retained
earnings 0.83 -0.83 0.00
Total
comprehens,
income for
the period -0.15 0.08 5.24 5.17
Equity
December
31, 2009 0.68 8.89 1.33 0.09 0.38 0.00 18.53 29.90
Attributable to the owners of the parent
Inv.
non-
Share Fair Acc. restr.
Share prem. Other value transl. equity Ret.
capital acct funds res. diff. fund earn. Total
Equity
January
1, 2010 0.68 8.89 1.33 0.09 0.38 18.53 29.90
Payment of
dividend -4.48 -4.48
Transfer of
treasury
shares May
7, 2010 0.27 0.24 0.51
Decrease of
share
premium
account -8.89 8.89 0.00
Total
comprehens.
income for
the period -0.06 -0.18 8.18 7.94
Equity
Decembe
31, 2010 0.68 0.00 1.33 0.03 0.20 9.16 22.47 33.87
CONDENSED CASH FLOW STATEMENT
Q1-Q4/ Q1-Q4/
Million euros 2010 2009 Change, %
Net cash flows from operating activities 9.74 6.89
Cash flows from investing activities:
Investments -2.33 -1.71
Sale of intangible assets and property,
plant and equipment 0.06 0.22
Purchases of available-for-sale
financial assets -1.55 -0.34
Acquisition of associated companies -0.40
Interests received from available-for-sale
financial assets 0.38 0.72
Net cash used in/from investing activities -3.84 -1.11
Cash flows from financing activities:
Payment of dividend -4.48 -5.60
Payments of finance lease liabilities -0.05 -0.04
Net cash used in financing activities -4.53 -5.64
Net decrease/increase in cash
and cash equivalents 1.37 0.14
Cash and cash equivalents at beginning of
the period 7.12 6.98 2.0
Cash and cash equivalents at end of the period 8.49 7.12 19.2
The cash and cash equivalents in the cash flow
statement include:
Cash and cash equivalents 8.18 5.13
Available-for-sale financial assets, cash equivalents 0.31 1.99
NOTES TO THE FINANCIAL
STATEMENTS
The notes are presented in millions of Euros, unless
otherwise stated.
This financial statements bulletin has been prepared in accordance with the
IAS 34 (Interim Financial Reporting) standard. The same accounting and
valuation policies and methods of computation have been followed in the
financial statements as in the annual financial statements for 2009. The
amendments and interpretations to published standards as well as new
standards, effective January 1, 2010, are presented in detail in the
financial statement for 2009.
The figures presented in the financial statements bulletin are unaudited.
Use of estimates
When preparing the financial statements, the Group's management is required
to make estimates and assumptions influencing the content of the financial
statements, and it must exercise its judgment regarding the application of
accounting policies. Although these estimates are based on the management's
best knowledge, actual results may ultimately differ from the estimates
used in the financial statements. Tax losses carried forward are recognized
as deferred tax assets only to the extent that it is probable that future
taxable profits will be available against which unused tax losses can be
utilized. Actual results could differ from those estimates.
Segment information
Net sales by business
area
Q1-Q4/ Q1-Q4/ Q4/ Q4/
Million euros 2010 2009 Change, % 2010 2009
Building & Construction 43.08 36.34 18.5 12.21 9.90
Infra & Energy 14.81 13.80 7.3 4.70 4.41
Net sales between
segments -0.06 -0.07 14.3 -0.02 -0.02
Total 57.83 50.07 15.5 16.89 14.29
Operating result by
business area
Q1-Q4/ Q1-Q4/ Q4/ Q4/
Million euros 2010 2009 Change, % 2010 2009
Building & Construction 8.23 4.72 74.4 2.26 1.05
Infra & Energy 1.92 2.08 -7.7 1.03 0.95
Others -0.09 0.01 -1000.0 -0.12 0.20
Total 10.06 6.81 47.7 3.17 2.20
Financial indicators
Q1-Q4/ Q1-Q4/ Q4/ Q4/
2010 2009 2010 2009
Earnings per share (EPS), EUR 0.36 0.23 0.12 0.08
Equity/share, EUR 1.51 1.33
Interest-bearing liabilities 0.12 0.13
Equity ratio, % 72.1 73.1
Net gearing, % -86.7 -83.7
Return on investment, % 34.1 24.5 43.5 32.5
Return on equity, % 25.7 17.4 33.2 24.0
Number of shares, 22,489,600 22,416,600
at end of the period
Number of shares,
on average 22,464,400 22,416,600
Gross investments, MEUR 3.73 1.71 0.85 0.25
% of net sales 6.45 3.42 5.03 1.75
Personnel, on average 461 456 476 455
Consolidated income statement by quarter
Q4/ Q3/ Q2/ Q1/ Q4/
Million euros 2010 2010 2010 2010 2009
Net sales 16.89 13.62 14.48 12.84 14.29
Other operating income 0.18 0.15 0.12 0.13 0.14
Change in inventories of
finished goods and in
work in progress -0.02 -0.01 -0.05 0.03 0.03
Raw materials and
consumables used -0.76 -0.32 -0.56 -0.44 -0.69
Employee compensation and
benefit expense -9.05 -7.14 -8.35 -7.52 -7.80
Depreciation -0.40 -0.45 -0.44 -0.42 -0.41
Other operating expenses -3.69 -2.58 -3.13 -3.14 -3.36
Share of results in associated
companies 0.02 0.04 0.03
Operating result 3.17 3.31 2.10 1.48 2.20
% of net sales 18.77 24.30 14.50 11.53 15.40
Financial income 0.30 0.04 0.68 0.79 0.44
Financial expenses 0.06 -0.42 -0.37 -0.38 -0.33
Profit (loss) before taxes 3.53 2.93 2.41 1.89 2.31
% of net sales 20.90 21.51 16.64 14.72 16.17
Income taxes -0.83 -0.84 -0.52 -0.39 -0.56
Result for the period 2.70 2.09 1.89 1.50 1.75
Acquired operations
Tekla Corporation reinforced its collaboration with the Dutch reseller
Construsoft Groep BV by acquiring 20% of its shares on May 3, 2010. Construsoft
has been a reseller of Tekla products in several countries for 15 years.
Of the purchase price, 0.40 million euros was paid in cash. As part of the
purchase price, 73,000 treasury shares were transferred at a price of 7.03 euros
per share according to the market value on May 7, 2010, for a total price of
0.51 million euros. Tekla is obliged to pay an additional purchase price
depending on the result development of the acquired business in 2009-2011. The
additional purchase price estimated in the financial statements is 0.36 million
euros, and any resulting liability will be due in 2012.
Consolidated result of the associated company and equity adjustment to the
investment is 0.09 million euros. Had Construsoft Groep BV's figures been
consolidated as from the beginning of the financial period, Tekla's result would
have been approximately 0.01 million euros higher.
Total acquisition cost
Consideration paid in cash 0.40
Transferred treasury shares 0.51
Additional purchase price 0.36
Total 1.27
Of the purchase price, 0.16 million euros was allocated to goodwill and 0.61
million euros to customer relationships in intangible assets, which are included
in the balance sheet value of the associated company according to the one-line
principle.
Income taxes
Q1-Q4/ Q1-Q4/
2010 2009
Taxes for the financial period
and
prior periods -2.79 -2.28
Deferred taxes 0.21 0.26
Total -2.58 -2.02
Property, plant and equipment
12/2010 12/2009
Cost at the beginning of the
period 8.30 7.76
Translation differences 0.23 0.03
Additions 0.86 0.66
Disposals -0.82 -0.15
Cost at the end of the period 8.57 8.30
Accumulated depreciation at
the beginning of the period 6.88 6.06
Translation differences 0.17 0.02
Accumulated depreciation on
disposals -0.70 -0.08
Depreciation for the financial
period 0.88 0.88
Accumulated depreciation
at the end of the period 7.23 6.88
Net book amount at the end of
the period 1.34 1.42
One third of the investments is formed by a deal whereby Tekla acquired a 20%
stake in Construsoft Groep BV. Additionally they consisted of normal
acquisitions of hardware, software and equipment.
In accordance with accounting regulations, 0.89 million euros of R&D expenses
have been capitalized during the period under review in connection with longer-
term development of new technology and clearly novel customer offering. No
corresponding projects have taken place previously.
Provisions
The Group had no provisions in the reporting or comparison
period.
Collaterals, contingent liabilities and other
commitments
12/2010 12/2009
Collaterals for own
commitments
Business mortgages (as
collateral for
bank guarantee limit) 0.50 0.50
Pledged funds 0.27 0.07
Leasing and rental agreement commitments
Premises 6.97 4.63
Others 0.37 0.59
Total 7.34 5.22
Derivative contracts
Currency forward contracts:
Fair value 0.05 0.06
Nominal value of underlying
instruments 2.38 2.49
The Group makes derivative contracts to hedge against the exchange rate risks of
prospective sales agreements. Derivative contracts are stated at fair value, and
related foreign exchange gains and losses are recognized in the income
statement. The derivative contracts hedge sales in US dollars in accordance with
the Group policy.
Related party transactions 12/2010 12/2009
Gerako Oy
Purchases of services 0.27 0.21
Management remuneration
Salaries and post-employment benefits 1.15 1.27
Management herein refers to members of the Tekla Management Team.
[HUG#1487904]
Tekla Corporation's Financial Statements Bulletin January 1 - December 31, 2010: Results for 2010 were good
| Quelle: Tekla
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