Slide 1: Half year financial report January - June 2024
Half year financial report January - June 2024 Esa Harju, CEO Juha Hyytiäinen, CFO
Slide 2: Disclaimer
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 Compa
Slide 3: Teleste in brief
Leading Founded technology company 1954 Teleste in brief in its field Net sales Listed in International technology group with an integrated Nasdaq Helsinki product portfolio that makes it possible to build a 151.3 M€ since networked and secure society while reducing year 2023 1999 negative impacts o
Slide 4: Our businesses and customers
Our businesses and customers Broadband Networks Public Safety and Mobility Geographic distribution Geographic distribution of turnover of turnover Our customers serve In public transportation 100 million 1.5 billion Internet-users passengers using our technology Finland Other nordic countries Finlan
Slide 5: H1 2024 highlights
H1 2024 highlights H1 2024 financial review
Slide 6: Key Figures Q2 2024 and H1 2024
Key Figures Q2 2024 and H1 2024 Adjusted EBIT decreased. Demand in the European cable market remains low, deliveries to North America increased. EUR million 4-6 2024 4-6 2023 1-6 2024 1-6 2023 1-12 2023 Net sales 29.5 40.1 66.1 85.4 151.3 Adjusted EBITDA 1.3 2.0 4.4 5.0 7.2 Adjusted EBIT 0.2 0.6 1
Slide 7: Orders received decreased
Orders received Q2 2024 Orders received decreased Orders received Orders received by business, H1 2024 EUR million 250 200 188,5 Public Safety 149,6 Q4 and Mobility 150 42% Broadband Q3 Networks 100 58% Q2 46,8 57,2 30,3 Q1 50 26,7 0 2022 2023 2024 Broadband Networks orders increased 4% year-on-ye
Slide 8: Order book on par with comparison period
Order book 30 June 2024 Order book on par with comparison period Order book (end of the period) Order book by business, 30 June 2024 EUR million 160 Broadband 145 139 Networks 140 131 132 128 129 126 124 18% 118 117 120 100 80 60 40 20 Public Safety and Mobility 0 82% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 9: Net sales decreased due to low demand in Europe
Net Sales Q2 2024 Net sales decreased due to low demand in Europe Net sales Net sales, 1-6 2024 EUR million 50,0 Public Safety and Mobility 45,0 39% 40,1 (34%) Broadband 40,0 38,4 Networks 61% 35,0 (66%) 29,5 30,0 25,0 North Finland 20,0 America and Other Nordic RoW countries 15,0 10,0 5,0 Other 0,0
Slide 10: Adjusted EBIT decreased due to decline in net sales
Adjusted operating result Q2 2024 Adjusted EBIT decreased due to decline in net sales Adjusted EBIT EUR million Adjusted EBIT decreased due to a significant 2,0 decline in net sales. Cost saving measures were not sufficient to fully compensate for the 26% 1,5 decline in net sales 1,0 Gross margin
Slide 11: Guidance for the fiscal year 2024 (specified)
Guidance for the fiscal year 2024 (specified) Teleste estimates that the net sales in 2024 will amount to EUR 140-150 million and that the adjusted operating result in 2024 will be EUR 3-6 million euros. Previously, the company estimated that the net sales in 2024 will amount to EUR 140-165 million
Slide 12: H1 2024 financial review
H1 2024 highlights H1 2024 financial review
Slide 13: Net sales and profitability decreased following low demand on European cable market
Teleste Group, Q2 2024 Net sales and profitability decreased following low demand on European cable market. 4-6 4-6 1-6 1-6 1-12 EUR million 2024 2023 2024 2023 2023 Net sales 29.5 40.1 66.1 85.4 151.3 Adjusted EBITDA 1.3 2.0 4.4 5.0 7.2 Adjusted EBITDA, % 4.4% 5.1% 6.6% 5.8% 4.8% Adjusted EBIT 0.2
Slide 14: Net sales and profitability decreased in Broadband Networks
Operating segments Q2 2024 Net sales and profitability decreased in Broadband Networks Broadband Networks 4-6 2024 4-6 2023 1-6 2024 1-6 2023 1-12 2023 Net sales, MEUR 17.0 25.6 40.1 56.0 92.5 Adjusted EBITDA, MEUR 1.5 2.7 4.8 6.1 8.9 Adjusted EBITDA, % 8.7% 10.6% 12.1% 10.9% 9.6% Adjusted EBIT, MEU
Slide 15: Net trade working capital and interest-bearing debt decreased year-on-year
Balance sheet, EUR million Net trade working capital and interest-bearing debt decreased year-on-year Assets Equity and liabilities 141,8 141,8 Net Trade Working Capital released 128,1 128,1 EUR 11.0 million year-on-year. Days in Inventory Outstanding 45,8 63,1 (rolling 3mth) still at very high
Slide 16: Strong cash flow in H1 2024
Cash flow from operations Strong cash flow in H1 2024 Cash flow from operations EUR million -7,8 10 9,8 Q2 2024 cash flow slightly negative due M€ to net loss. Trade working capital was released in 5 4,1 inventories. Inventories are still high especially for distributed access architecture pro
Slide 17: Working capital released. Interest bearing debt reduced.
Cash flow H1 2024 Working capital released. Interest bearing debt reduced. Financing Operating activities Investing activities activities 16 14 0,1 12 4,6 2,7 3,4 6,9 10 9,0 EUR million 0,8 8 0,7 6,2 1,4 6 4 2 0 Cash Adjusted Inventories Payables Receivables CAPEX R&D Leasing Loans Cash 31.12.2023 p
Slide 18: Return on capital employed and Equity ratio
Return on capital employed Equity ratio At the end of the period 16% 50% 46,7 % 45,4 % 14% 45% 12% 39,7 % 40% 10% 35% 8% 30% 6% 25% 4% 20% 2% 0,2 % 15% 0% -2% 10% -1,5 % -4% 5% -3,5 % -6% 0% 2022 2023 2024 H1 31.12.2022 31.12.2023 30.06.2024 Negative return on capital employed was due to The equ
Slide 19: Net gearing and Net debt / adjEBITDA
Net gearing Net debt / adjEBITDA At the end of the reporting period Last twelve months 100% 5,5x 90% 5,0x 4,5x 4,4x 80% 4,2x 4,0x 70% 4,0x 61,2 % 3,5x 60% 51,9 % 3,0x 50% 46,9 % 2,5x 40% 2,0x 30% 1,5x 20% 1,0x 10% 0,5x 0% 0,0x 31.12.2022 31.12.2023 30.06.2024 31.12.2022 31.12.2023 30.06.2024 Net g