Tekla Corporation Interim report August 5, 2011 at 9:00
a.m.
Tekla Corporation's Interim Report January 1 - June 30, 2011:
Growth continued during the second quarter - Almost all Tekla shares held by
Trimble as the result of a public tender offer
Net sales of Tekla Group for January-June 2011 totaled 32.46 (27.32) million
euros, increasing by 18.8%. The operating result was 6.22 (3.58) million euros,
19.2% (13.1%) of net sales. Earnings per share were 0.20 (0.15) euros.
Net sales for the second quarter amounted to 16.67 (14.48) million euros,
increasing by approximately 15%. The operating result for the quarter was 3.22
(2.10) million euros, or 19.3% (14.5%) of net sales.
Ari Kohonen, President and CEO, comments on the reporting period:
- Net sales and operating result increased noticeably, and also the entire first
half of the year developed favorably. The positive development seen during the
first quarter continued. The strengthening of our market position continued, for
example, due to the expanded product offering.
- Net sales of our main business area, Building & Construction, increased by
26% during the reporting period and its operating profit more than doubled.
License sales increased by 33%. During the second quarter, B&C's net sales
increased by approximately 22%, and its operating profit was clearly higher than
the corresponding period the previous year.
- In January-June, our market areas with the most success in license sales were
India, the Far East and South America. India overtook the United States. Other
successful markets were Finland and Brazil.
- With regard to Infra & Energy, the first half of the year was slightly softer
than expected. The result was weakened by the transfer of some product
development and implementation projects. The order backlog increased
significantly, which provides good prerequisites for net sales and operating
profit accumulation during the rest of the year.
- During the second quarter, the number of personnel increased by 24 persons.
This figure includes additional recruitments due to the favorable growth
business outlook as well as and temporary employees.
The Board of Directors does not change its net sales and result outlook. Net
sales are estimated to increase by at least 15%, with the operating result
exceeding 20% of net sales.
The most significant event during the reporting period for Tekla as a listed
company, was the combination agreement between Tekla and the U.S.-based Trimble
Navigation announced in May and Trimble's public tender offer for shares in
Tekla. The tender offer commenced on May 19 and ended on June 27, at which time
Trimble held 99.46% of all the shares in Tekla. Tekla thus became part of the
Trimble Group. Trimble's intention is to acquire all the shares in Tekla and to
apply the delisting of the shares Tekla. This is discussed in more detail in a
separate paragraph in this interim report.
- - -
Tekla Corporation drives the evolution of digital information models with its
software, providing a growing competitive advantage to customers in the
construction, infrastructure and energy industries. Tekla's net sales for 2010
were nearly 58 million euros and operating result nearly 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 more than 500 persons, of whom about 200
work outside of the headquarters in Finland. Tekla was established in 1966, and
is one of the longest-operating Finnish software companies.www.tekla.com
NET SALES AND PROFITABILITY
* Net sales of Tekla Group for January-June 2011 were 32.46 million euros (27.32
million euros in January-June 2010).
* Net sales increased by 18.8%.
* Operating result was 6.22 (3.58) million euros.
* Operating result percentage was 19.2 (13.1).
* Earnings per share were 0.20 (0.15) euros.
* Return on investment was 59.2 (29.6) percent.
* Return on equity was 43.6 (23.0) percent.
FINANCIAL POSITION
* Cash flow from operating activities totaled 9.52 (9.47) million euros.
* Liquid assets amounted to 23.79 (30.40) million euros on June 30, 2011.
The assets have been invested in money market instruments with very low risk.
* Equity ratio was 15.0 (59.4) percent. (Adjusted by the additional dividend
paid in July 2011.)
* Interest-bearing debts were 0.08 (0.12) million euros.
* Changes in exchange rates had no effect on net sales or operating result.
OTHER KEY FIGURES
* International operations accounted for 81% (78%) of net sales.
* Personnel averaged 486 (452) for January-June.
* At the end of June, the number of personnel including part-time staff was 514
(473).
* At year's end, the number of personnel including part-time staff was 490
(466).
* Gross investments were 2.01 (2.21) million euros. Capitalization of R&D
expenses accounted for 0.89 million euros. There were no corresponding
capitalizations in the comparison period in 2010.
* Equity per share was 0.30 (1.29) euros.
* On the last trading day of June, trading closed at 19.50 (6.80) euros.
BUSINESS AREAS
NET SALES
Q1-2/ Q1-2/ Q1-4/
Million euros 2011 2010 Change 2010 Q2/2011 Q2/2010
----------------------------------------------------------------
Building & Construction 25.43 20.19 5.24 43.08 13.12 10.77
Infra & Energy 7.06 7.16 -0.10 14.81 3.57 3.73
Sales between segments -0.03 -0.03 0.00 -0.06 -0.02 -0.02
----------------------------------------------------------------
Total 32.46 27.32 5.14 57.83 16.67 14.48
OPERATING RESULT
Q1-2/ Q1-2/ Q1-4/
Million euros 2011 2010 Change 2010 Q2/2011 Q2/2010
----------------------------------------------------------------
Building & Construction 6.27 2.92 3.35 8.23 3.29 1.78
Infra & Energy -0.05 0.66 -0.71 1.92 -0.07 0.32
Others 0.00 0.00 0.00 -0.09 0.00 0.00
----------------------------------------------------------------
Total 6.22 3.58 2.64 10.06 3.22 2.10
GEOGRAPHICAL DISTRIBUTION OF NET SALES
Q1-2/2011 Q1-2/2010 2010
% % %
Finland 18.8 21.7 20.7
Rest of Europe 35.7 36.5 35.9
North America 13.0 13.4 15.5
Asia 25.4 23.9 22.2
Other countries 7.1 4.5 5.7
------------------------------------------------------
100.0% 100.0% 100.0%
Total (MEUR 32.46) (MEUR 27.32) (MEUR 57.83)
Building & Construction
Tekla's Building & Construction business area (B&C) develops and markets the
Tekla Structures software product. Designed for Building Information Modeling
(BIM), Tekla Structures is a 3D tool that offers open integration with other
programs and models imported from them, supporting all the phases of the
construction process. The software 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 the number
of users is increasing further. 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.
Tekla launched the free Tekla BIMsight application in February 2011 in order to
promote BIM-based cooperation and project management in the construction
industry. With the new application, the different parties involved in the
project can easily combine their models created using different software and
understand each other's designs. The application can be used for checking for
clashes in the structures, commenting on the models and marking the required
changes in them. The entire project can be reviewed with the help of a single
illustrative 3D combination model. User feedback has been positive. In the first
phase, the application was released in English only. An expanded Tekla BIMsight
application was launched in June.
In our license-based sales, demand can fluctuate quite strongly, which was now
reflected in solid growth in license sales during the reporting period. The
full-year outlook is also positive, and we expect the favorable development to
continue. Our market position has strengthened, for example, due to the expanded
product offering.
The net sales of B&C amounted to 25.43 (20.19) million euros for January-June
2011. The growth in net sales was 26.0% compared to the corresponding period the
previous year. License sales increased by 33%. B&C's operating result more than
doubled to 6.27 (2.92) million euros. B&C's operating result percentage was
24.7% (14.5%).
B&C's net sales increased by 21.8% during the second quarter, to 13.12 (10.77)
million euros. The operating result was 3.29 (1.78) million euros, or 25.1%
(16.5%) of net sales.
International operations accounted for 94% (95%) of B&C's net sales in January-
June 2011. The market areas with the highest performance in license sales were
India, the Far East and South America. India overtook the United States. Other
successful markets were Finland and Brazil.
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 globally consolidating its position in
the building industry. BIM means that the information of the product model is
transferred and shared between the parties of the construction process. 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.
Measures against software piracy continued both by own efforts and in
cooperation with other parties, such as BSA. The efforts are increasingly
bearing fruit.
Tekla Structure 17, the main version launched in February, features improved
clash checking, organizing, viewing, snapping, commenting and project managing
functions.
Infra & Energy
The Infra & Energy business area develops and markets Tekla Solutions to
customers in the infrastructure and energy industries. The software solutions
contain high-end process support tools for customers' core processes, from
planning to construction, operation and maintenance and for customer service
needs. I&E's customers operate in energy distribution, public administration,
and civil engineering. Tekla Solutions offering promotes Tekla's aim to sell
its software to new customers and new types of customer segments in Finland and
abroad.
In the energy industry, information system acquisitions are strategic
investments for the companies. 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. 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.
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.
I&E's net sales amounted to 7.06 (7.16) million euros for January-June 2011. Its
operating result was -0.05 (0.66) million euros. I&E's operating profit
percentage was -0.7% (9.2%). International operations accounted for 35% (33%) of
net sales. Net sales for the second quarter amounted to 3.57 (3.73) million
euros, and operating result was -0.07 (0.32) million euros, or -2.0% (8.6%) of
net sales.
For Infra & Energy, the first half of the year was slightly softer than
expected. The result was weakened by the transfer of some product development
and implementation projects. The order backlog increased significantly, which
provides good prerequisites for net sales and operating profit accumulation
during the rest of the year.
An agreement was signed in Sweden with a consortium of electricity network
companies. With the agreement, three new distribution companies will begin to
use Tekla software. The implementation of Tekla's district heating solution was
agreed on with the energy company of a major Finnish city. Several agreements on
the implementation and development of e-services were concluded in the field of
public administration.
With regard to product development, the FLIR (Fault Location Isolation
Restoration) project related to the development of electricity distribution
network automation entered the testing phase. This functionality is developed in
cooperation with Vattenfall.
PERSONNEL
Tekla Group personnel averaged 486 (452) for January-June 2011; on average 189
(185) worked outside Finland. In these figures, the number of part-time staff
has been converted to correspond to full-time work contribution. At the
beginning of the year, Tekla personnel totaled 490 (466) including part-time
staff, of whom 188 (192) worked outside Finland, and at the end of June 514
(473), of whom 194 (186) worked outside Finland.
During the second quarter, the number of personnel increased by 24 persons. This
figure includes additional recruitments due to the favorable growth business
outlook as well as and temporary employees.
COMBINATION AGREEMENT BETWEEN TRIMBLE NAVIGATION AND TEKLA AND PUBLIC TENDER
OFFER BY TRIMBLE
Trimble Navigation Ltd and Tekla Corporation entered into a combination
agreement on May 8, 2011, and Trimble Navigation announced a public tender offer
on May 9, 2011, to be made by its subsidiary Trimble Finland Oy, for all issued
and outstanding shares in Tekla Corporation. The Tender Offer commenced on May
19, 2011 and expired on June 27, 2011.
The price according to the Tender Offer was 15 euros per share paid in cash. The
combination agreement and terms and conditions of the Tender Offer included a
mention of Tekla's possible distribution of dividend or other assets prior to
the completion of the Tender Offer, which would decrease the offer price
correspondingly. The Tekla Board exercised the authorization granted by the
Annual General Meeting for such distribution of funds and 0.80 euros per share
was paid as additional dividend. This resulted in the reduction of the final
offer price to 14.20 euros per share.
Trimble announced the final result of the Tender Offer on June 30, 2011,
according to which the shares tendered in the Tender Offer represented
approximately 99.46 percent of all the shares and votes in Tekla. Since all the
conditions to completion of the Tender Offer were fulfilled, Trimble Finland
completed the Tender Offer. The trades were executed on July 5, 2011, and the
ownership of the shares was transferred to Trimble Finland on July 8, 2011.
Trimble Finland's intention is to acquire all the shares in Tekla. As Trimble
Finland's ownership upon the settlement of the trades to complete the Tender
Offer exceeded nine-tenths (9/10) of the shares and voting rights in Tekla,
Trimble Finland will initiate compulsory redemption proceedings for the
remaining shares in Tekla under the Finnish Companies Act. Trimble Finland may
also purchase shares in Tekla also in public trading on NASDAQ OMX Helsinki or
otherwise at a price not exceeding the final offer price in the Tender Offer of
EUR 14.20 per share.
In addition, Trimble Finland will apply for the delisting of Tekla shares from
NASDAQ OMX Helsinki as soon as the prerequisites for it exist.
According to the Tender Offer Document the Tender Offer will not have any
immediate impact on the business operations or assets of Tekla. The businesses
of Trimble and Tekla will be combined upon the consummation of the Tender Offer
based upon a detailed integration plan to be developed jointly by the management
of Trimble and Tekla.
Trimble believes that combining Tekla's operations and products with certain of
Trimble's existing products will create an opportunity for significant
additional revenue synergies across a number of areas in which both companies
currently provide complementary products and services.
The stock exchange releases related to the combination agreement and the Tender
Offer are available on Tekla's Web site at www.tekla.com > Investors
Trimble in brief
Trimble applies technology to make field and mobile workers in businesses and
government significantly more productive. Solutions are focused on applications
requiring position or location: including surveying, construction, agriculture,
fleet and asset management, public safety and mapping. In addition to utilizing
positioning technologies, such as GPS, lasers and optics, Trimble solutions may
include software content specific to the needs of the user. Wireless
technologies are utilized to deliver the solution to the user and to ensure a
tight coupling of the field and the back office. Founded in 1978, Trimble is
headquartered in Sunnyvale, Calif. For more information visit: www.trimble.com
SHARE AND OWNERSHIP STRUCTURE
Shares and share capital
The total number of Tekla Corporation shares at the end of June 2011 was
22,586,200, of which the company owned 96,600. The total book countervalue of
those was 2,898 euros, and the proportion of the shares in the company was
0.43%. A total of 652,479.02 euros had been used for acquiring the company's own
shares, and their market value was 1,883,700 euros on June 30, 11. The book
counter value of the share is 0.03 euros. At the end of the period, share
capital stood at 677,586 euros.
Share price trends and trading
The highest quotation of the share in January-June 2011 was 20.08 (8.26) euros,
the lowest 9.00 (6.30) euros. The average quotation was 13.23 (6.96) euros. On
the last trading day of June, trading closed at 19.50 (6.80) euros.
A total of 4,768,035 (2,702,218) Tekla shares changed hands in January-June
2011 at NASDAQ OMX Helsinki Ltd, amounting to 21.1% (12%) of the entire share
capital.
Nominee registered and foreign owners held 16.7% (19.3%) of all shares at the
end of June 2011.
Notifications of changes in shareholding
The following notifications of changes in shareholding were made during the
reporting period and at the beginning of July:
- May 9, 2011: Trimble Navigation announced an agreement that, if executed, will
result in a change in shareholding. The following flagging thresholds were
exceeded: more than five-tenths (irrevocable undertakings) and more than two-
thirds by the public Tender Offer.
- May 9, 2011: Gerako Oy announced that it had given an irrevocable and
unconditional undertaking to accept the Tender Offer.
- 9.5.2011: Ilmarinen Mutual Pension Insurance Company confirmed its support for
the tender offer and announced that it has undertaken to tender their shares in
the offer (unless a higher offer is available).
- May 12, 2011: Nordea Rahastoyhtiö Suomi Oy's holdings in Tekla Corporation
increased over the 5% threshold on May 11, 2011.
- May 27, 2011: The grounds for Trimble's notification were the acquisition of
shares or voting rights and exceeding the 30 percent threshold on May 26, 2011.
According to the notification the indirect number of shares was 9,059,493
(40.28%).
- June 6, 2011: The grounds for Trimble's notification were the acquisition of
shares or voting rights and exceeding the 50 percent threshold on June 1, 2011.
According to the notification the indirect number of shares was 11,317,692
(50.32 %).
- June 10, 2011: The grounds for Trimble's notification were the acquisition of
shares or voting rights and exceeding the 66.7 percent (two-thirds) threshold on
June 9, 2011. According to the notification the indirect number of shares was
15,224,354 (67.70%).
- July 7, 2011: As a result of the completion of the tender offer, Trimble
Finland Oy's ownership in Tekla exceeded 2/3 of the shares and voting rights in
Tekla on July 5, 2011. The number of shares owned by Trimble Finland Oy was
22,368,148, or about 99.46% of shares and votes included in the tender offer,
and 99.03% including own shares held by Tekla.
- July 8, 2011: Ilmarinen Mutual Pension Insurance Company's holdings in Tekla
Corporation decreased below 1/20 when Ilmarinen sold all its Tekla shares on
July 5, 2011.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
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 vary in different market areas.
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.
ANNUAL GENERAL MEETING
Tekla Corporation's Annual General Meeting was held on April 6, 2011. The AGM
adopted Tekla Corporation's financial statements and consolidated financial
statements for 2010. It also discharged the CEO and the Board members from
liability. The AGM approved the Board's proposal to distribute a dividend of
0.25 euros and a repayment of equity of 0.35 euros per share for the financial
period 2010 (for a total payment of 0.60 euros per share, totaling 13,493,760
euros). The dividend and repayment of equity payment date was April 19, 2011.
Ari Kohonen, Olli-Pekka Laine, Erkki Pehu-Lehtonen and Reijo Sulonen were re-
elected Board members and Saku Sipola was elected as a new Board member until
the conclusion of the Annual General Meeting in 2012. Timo Keinänen was re-
elected as deputy member. Juha Kajanen is the Tekla personnel representative on
the Board and Kirsi Hakkila is his personal deputy.
The AGM decided to keep the compensation to the Board the same as in 2010. In
addition, the members' travel expenses will be reimbursed. The members of the
Board employed by Tekla Group will not be paid any meeting fees for their board
work.
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 amending Article 7 of the Articles of Association with regard
to invitations to a general meeting of shareholders.
The AGM authorized the Board to decide on the repurchase and transfer of company
shares and share issues. The authorizations will remain valid until the
following Annual General Meeting, however not longer than until April 30, 2012.
Furthermore, the Annual General Meeting authorized the Board to decide on the
distribution of additional dividend and/or distribution of the non-restricted
equity fund for a total of up to 18,000,000 euros. The Board of Directors
exercised the authorization and announced on June 28, 2011 that an additional
dividend of 0.80 euros will be paid. The dividend record date was July 1, 2011
and the payment date July 8, 2011. According to the terms of the combination
agreement between Trimble and Tekla and the public tender offer made by Trimble,
this distribution of funds resulted in a corresponding reduction of Trimble's
offer price to 14.20 euros per share.
The Board's proposals to the Annual General Meeting were announced in a stock
exchange release on March 15, 2011 and the resolutions of the AGM were published
in a stock exchange release on April 6, 2011.
EVENTS AFTER THE REPORTING PERIOD
The completion of Trimble's public tender offer and Tekla's payment of
additional dividend, which took place after the reporting period, are reported
above.
OUTLOOK FOR 2011
The Board of Directors does not change its net sales and result outlook. Net
sales are estimated to increase by at least 15%, with the operating result
exceeding 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.
NEXT FINANCIAL REPORT
Tekla Corporation's interim report for January-September 2011 will be published
on Friday, November 4, 2011.
Espoo, August 4, 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, www.tekla.com
CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
CONSOLIDATED INCOME STATEMENT
Q1-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2/
Million euros 2011 2010 2010 2011 2010
Net sales 32.46 27.32 57.83 16.67 14.48
Other operating
income 0.29 0.25 0.58 0.18 0.12
Change in
inventories of
finished goods and
in work
in progress 0.04 -0.02 -0.05 0.06 -0.05
Raw materials and
consumables used -0.95 -1.00 -2.08 -0.46 -0.56
Employee
compensation
and benefit expense -17.53 -15.87 -32.06 -9.05 -8.35
Depreciation -0.90 -0.86 -1.71 -0.47 -0.44
Other operating
expenses -7.19 -6.27 -12.54 -3.69 -3.13
Share of results in
associated
companies 0.00 0.03 0.09 -0.02 0.03
Operating result 6.22 3.58 10.06 3.22 2.10
% of net sales 19.16 13.10 17.40 19.32 14.50
Financial income 0.53 1.47 1.81 0.28 0.68
Financial expenses -0.80 -0.75 -1.11 -0.19 -0.37
Profit (loss)
before taxes 5.95 4.30 10.76 3.31 2.41
% of net sales 18.33 15.74 18.61 19.86 16.64
Income taxes -1.50 -0.91 -2.58 -0.99 -0.52
Result for the
period 4.45 3.39 8.18 2.32 1.89
Attributable to:
Owners of the
parent 4.45 3.39 8.18 2.32 1.89
Earnings per share
for profit
attributable to the
owners of
the parent (EUR) 0.20 0.15 0.36 0.10 0.08
Earnings are not diluted.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Q1-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2/
Million euros 2011 2010 2010 2011 2010
Result for the
period 4.45 3.39 8.18 2.32 1.89
Other comprehensive
income for the
period, net
of tax:
Transl.
differences 0.10 -0.24 -0.18 -0.01 -0.18
Changes in
available-for-
sale investments -0.01 -0.03 -0.06 -0.03 -0.04
Total 0.09 -0.27 -0.24 -0.04 -0.22
Total comprehensive
income for the
period 4.54 3.12 7.94 2.28 1.67
Attributable to:
Owners of the
parent 4.54 3.12 7.94 2.28 1.67
CONDENSED BALANCE SHEET
Million euros 6/2011 6/2010 12/2010
Assets
Non-current assets
Property, plant
and
equipment 1.74 1.44 1.34
Goodwill 0.14 0.20 0.14
Intangible assets 3.36 2.10 2.69
Investments in
associated
companies 1.32 1.30 1.36
Other financial
assets 0.03 1.13 0.12
Receivables 0.36 0.54 0.36
Deferred tax
assets 0.78 0.74 0.64
Non-current
assets, total 7.73 7.45 6.65
Current assets
Inventories 0.10 0.09 0.06
Trade and other
current
receivables 15.16 12.19 11.23
Tax receivables 0.05 0.14 0.05
Other financial
assets 15.30 23.45 21.34
Cash and cash
equivalents 8.52 5.98 8.18
Current assets,
total 39.13 41.85 40.86
Assets total 46.86 49.30 47.51
Equity and
liabilities
Equity
Share capital 0.68 0.68 0.68
Share premium
account 8.89
Invested non-
restricted
equity fund 1.29 9.16
Other own capital 1.65 1.80 1.56
Retained earnings 3.31 17.68 22.47
Equity total 6.93 29.05 33.87
Non-current
liabilities
Deferred tax
liabilities 0.06 0.09 0.07
Interest-bearing
liabilities 0.02 0.03 0.04
Non-current
liabilities total 0.08 0.12 0.11
Current
liabilities
Trade and other
payables 39.11 20.00 13.04
Tax liabilities 0.68 0.04 0.41
Current interest-
bearing
liabilities 0.06 0.09 0.08
Current
liabilities total 39.85 20.13 13.53
Liabilities total 39.93 20.25 13.64
Equity and
liabilities total 46.86 49.30 47.51
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to the owners of the parent
Inv.
non-
Share Fair Acc. restr.
Share prem. Other value transl. quity 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 0.27 0.24 0.51
Decrease of share
premium account 0.00
Total
comprehensive
income for the
period -0.03 -0.24 3.39 3.12
Equity June
30, 2010 0.68 8.89 1.60 0.06 0.14 0.00 17.68 29.05
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, 2011 0.68 0.00 1.33 0.03 0.20 9.16 22.47 33.87
Payment of
dividend -23.61 -23.61
Repayment of
equity -7.87 -7.87
Total
comprehensive
income for the
period -0.01 0.10 4.45 4.54
Equity June
30, 2011 0.68 0.00 1.33 0.02 0.30 1.29 3.31 6.93
CONDENSED CASH FLOW STATEMENT
Q1-Q2/ Q1-Q2/ Q1-Q4/
Million euros 2011 2010 2010
Net cash flows from operating activities 9.52 9.47 9.74
Cash flows from investing activities:
Investments -2.01 -0.94 -2.33
Sale of intangible assets and property, plant and
equipment 0.15 0.06
Acquisition of associated companies -0.40 -0.40
Investments in available-for-sale
financial assets -5.72 -4.44 -1.55
Interests received from available-for-sale financial
assets 0.16 0.16 0.38
Net cash used in/from investing activities 4.02 -5.62 -3.84
Cash flows from financing activities:
Payment of dividend -5.62 -4.48 -4.48
Repayment of equity -7.87
Payments of finance lease liabilities -0.02 -0.02 -0.05
Net cash used in financing activities -13.51 -4.50 -4.53
Net decrease/increase in cash and cash
equivalents 0.03 -0.65 1.37
Cash and cash equivalents at beginning of the
period 8.49 7.12 7.12
Cash and cash equivalents at end of the period 8.52 6.47 8.49
The cash and cash equivalents in the cash flow
statement include:
Cash and cash equivalents 8.52 5.98 8.18
Available-for-sale financial assets, cash equivalents 0.49 0.31
NOTES TO THE INTERIM REPORT
The notes are presented in millions of Euros, unless otherwise stated.
This interim report 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 interim financial statements as
in the annual
financial statements for 2010. The amendments and interpretations to
published standards
as well as new standards, effective January 1, 2011, are presented in
detail in the financial
statements for 2010.
The figures presented in the Interim Report are
unaudited.
Use of estimates
When preparing the interim report, the Group's management is required
to make estimates
and assumptions influencing the content of the interim report, 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 interim report. 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-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2/
Million euros 2011 2010 2010 2011 2010
Building & Construction 25.43 20.19 43.08 13.12 10.77
Infra & Energy 7.06 7.16 14.81 3.57 3.73
Net sales between segments -0.03 -0.03 -0.06 -0.02 -0.02
Total 32.46 27.32 57.83 16.67 14.48
Operating result by
business area
Q1-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2/
Million euros 2011 2010 2010 2011 2010
Building & Construction 6.27 2.92 8.23 3.29 1.78
Infra & Energy -0.05 0.66 1.92 -0.07 0.32
Others 0.00 -0.09 0.00
Total 6.22 3.58 10.06 3.22 2.10
Financial indicators
Q1-Q2/ Q1-Q2/ Q1-Q4/ Q2/ Q2/
2011 2010 2010 2011 2010
Earnings per share (EPS),
EUR 0.20 0.15 0.36 0.10 0.08
Equity/share, EUR 0.31 1.29 1.51
Interest-bearing
liabilities 0.08 0.12 0.12
Equity ratio, % 15.0 59.4 72.1
Net gearing, % -342.3 -100.8 -86.7
Return on investment, % 59.2 29.6 34.1 61.8 32.3
Return on equity, % 43.6 23.0 25.7 43.0 24.9
Number of shares, at end 22,489,600 22,489,600 22,489,600
of the period
Number of shares, on 22,489,600 22,438,782 22,464,400
average
Gross investments, MEUR 2.01 2.21 3.60 0.87 1.92
% of net sales 6.19 8.09 6.23 5.22 13.26
Personnel, on average 486 452 461 495 452
Consolidated income statement by
quarter
Q2/ Q1/ Q4/ Q3/ Q2/
Million euros 2011 2011 2010 2010 2010
Net sales 16.67 15.79 16.89 13.62 14.48
Other operating income 0.18 0.11 0.18 0.15 0.12
Change in inventories of
finished
goods and in work in
progress 0.06 -0.02 -0.02 -0.01 -0.05
Raw materials and
consumables used -0.46 -0.49 -0.76 -0.32 -0.56
Employee compensation and
benefit expense -9.05 -8.48 -9.05 -7.14 -8.35
Depreciation -0.47 -0.43 -0.40 -0.45 -0.44
Other operating expenses -3.69 -3.50 -3.69 -2.58 -3.13
Share of results in
associated
companies -0.02 0.02 0.02 0.04 0.03
Operating result 3.22 3.00 3.17 3.31 2.10
% of net sales 19.32 19.00 18.77 24.30 14.50
Financial income 0.28 0.25 0.30 0.04 0.68
Financial expenses -0.19 -0.61 0.06 -0.42 -0.37
Profit (loss) before taxes 3.31 2.64 3.53 2.93 2.41
% of net sales 19.86 16.72 20.90 21.51 16.64
Income taxes -0.99 -0.51 -0.83 -0.84 -0.52
Result for the period 2.32 2.13 2.70 2.09 1.89
Income taxes
Q1-Q2/ Q1-Q2/ Q1-Q4/
2011 2010 2010
Taxes for the financial
period and
prior periods -1.64 -1.22 -2.79
Deferred taxes 0.14 0.31 0.21
Total -1.50 -0.91 -2.58
Property, plant and
equipment
6/2011 6/2010 12/2010
Cost at the beginning of
the period 8.57 8.30 8.30
Translation differences -0.08 0.24 0.23
Additions 0.89 0.44 0.86
Disposals -0.06 -0.58 -0.82
Cost at the end of the
period 9.32 8.40 8.57
Accumulated depreciation
at the
beginning of the period 7.23 6.88 6.88
Translation differences -0.07 0.19 0.17
Accumulated depreciation
on disposals -0.04 -0.56 -0 .70
Depreciation for the
financial period 0.46 0.45 0.88
Accumulated depreciation
at the
end of the period 7.58 6.96 7.23
Net book amount at the
end of the
period 1.74 1.44 1.34
The investments 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.
Provisions
The Group had no provisions in the reporting or comparison
period.
Collaterals. contingent liabilities and other commitments
6/2011 6/2010 12/2010
Collaterals for own commitments
Business mortgages
(as collateral for bank
guarantee limit) 0.50 0.50 0.50
Pledged funds 0.22 0.08 0.27
Leasing and rental agreement
commitments
Premises 6.24 3.99 6.97
Others 0.36 0.43 0.37
Total 6.60 4.42 7.34
Derivative contracts
Currency forward
contracts:
Fair value 0.08 -0.20 0.05
Nominal value of
underlying instruments 1.68 2.08 2.38
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 6/2011 6/2010 12/2010
Gerako Oy
Purchases 0.16 0.15 0.27
Construsoft Groep BV
Sales 1.97
Purchases 0.02
Receivables 0.29
Liabilities 1.10
Management remuneration
Salaries and post-employment benefits 0.67 0.59 1.15
Management herein refers to members of the Tekla Management Team.
[HUG#1536469]
Tekla Corporation's Interim Report January 1 - June 30, 2011: Growth continued during the second quarter - Almost all Tekla shares held by Trimble as the result of a public tender offer
| Source: Tekla
Pièces jointes
