Slide 1: Interim report January - September 2024
No Image Interim report January - September 2024 Esa Harju, CEO Mervi Kerkelä-Hiltunen, CFO
Slide 2: Disclaimer
No Image 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
Slide 3: Teleste in brief
No Image 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
Slide 4: Our businesses and customers
No Image Our businesses and customers Broadband Networks Public Safety and Mobility Other NAM customers Our customers serve In public transportation 100 million 1.5 billion Internet-users passengers using our technology annually
Slide 5: Q3 2024 highlights / Q3 2024 financial review
No Image Q3 2024 highlights Q3 2024 financial review
Slide 6: Key Figures Q3 2024 and YTD end Q3 2024
No Image Key Figures Q3 2024 and YTD end Q3 2024 Operating profit increased despite revenue decline. Deliveries in North America on the rise, low demand in Europe. Cash flow at a good level. EUR million 7-9 2024 7-9 2023 1-9 2024 1-9 2023 1-12 2023 Net sales 29.9 35.2 96.0 120.7 151.3 Adjusted EBIT
Slide 7: Orders received decreased
No Image Orders received Q3 2024 Orders received decreased Orders received Orders received by business, 1-9 2024 EUR million 200 188,5 149,6 Q4 Public Safety 150 Q3 Broadband and Mobility 48,9 Networks Q2 45% 55% 100 88,6 Q1 46,4 31,3 50 0 2022 2023 2024 Broadband Networks new orders decreased by
Slide 8: Order book slightly decreased towards comparison period
No Image Order book 30 September 2024 Order book slightly decreased towards comparison period Order book (end of the period) Order book by business, 30 September 2024 EUR million 160 Broadband 145 139 Networks 140 131 132 128 129 126 124 16% 118 117 119 120 100 80 60 40 20 Public Safety and Mobility
Slide 9: Net sales decreased due to low demand in Europe
No Image Net Sales Q3 2024 Net sales decreased due to low demand in Europe Net sales Net sales, 1-9 2024 EUR million 50,0 Public Safety and Mobility 45,0 42,6 39% Broadband (36%) 40,0 Networks 35,2 61% 35,0 (64%) 29,9 30,0 25,0 Finland North America and 9% 20,0 (8%) Other Nordic RoW 13 % countries 1
Slide 10: Adjusted EBIT increased due to gross margin and lower OPEX
No Image Adjusted operating result Q3 2024 Adjusted EBIT increased due to gross margin and lower OPEX Adjusted EBIT EUR million Adjusted EBIT increased due to significant cost- 2,0 saving and productivity measures. 1,5 1,5 Gross margin continued to improve, with an 1,1 increase of +3.6 ppt year-on
Slide 11: Guidance for the financial year 2024
No Image Guidance for the financial year 2024 (updated 16.9.2024) Teleste estimates that the net sales in 2024 will amount to 120-135 million euros and that the adjusted operating result in 2024 will be 1-4 million euros.
Slide 12: Q3 2024 highlights / Q3 2024 financial review
No Image Q3 2024 highlights Q3 2024 financial review
Slide 13: Teleste Group, Q3 2024
No Image No Image Teleste Group, Q3 2024 Net sales decreased following low demand on European cable market, but adjusted EBIT improved 7-9 7-9 1-9 1-9 1-12 EUR million 2024 2023 2024 2023 2023 Net sales 29.9 35.2 96.0 120.7 151.3 Adjusted EBITDA 2.7 1.9 7.1 6.9 7.2 Adjusted EBITDA, % 9.0 % 5.4 % 7.4
Slide 14: Operating segments Q3 2024
No Image No Image Operating segments Q3 2024 Net sales decreased in both Business Units; quarterly profitability improved Broadband Networks 7-9 2024 7-9 2023 1-9 2024 1-9 2023 1-12 2023 Net sales, MEUR 18.1 21.1 58.2 77.1 92.5 Adjusted EBITDA, MEUR 2.2 1.6 7.1 7.7 8.9 Adjusted EBITDA, % 12.8% 7.7%
Slide 15: Balance sheet, EUR million
No Image No Image Balance sheet, EUR million Net working capital Assets Equity and liabilities 131,8 132,9 131,8 132,9 Net Working Capital released EUR 6.6 million year-on-year. Intangibles 46,5 Equity 50,3 Interest bearing debt increased EUR 59,9 63,3 6.8 million year-on-year along with Tangibl
Slide 16: Strong cash flow in Q3 2024
No Image Cash flow from operations Strong cash flow in Q3 2024 Cash flow from operations EUR million -7,8 10 Q3 2024 operative cash flow EUR 3.5 M€ Million. 5 3,5 Working capital was released from 0,9 inventories and trade receivables, partly 0 along with changes of net sales -5 - 9,7 -10 Q1 Q2
Slide 17: Cash flow 1-9 2024
No Image Cash flow 1-9 2024 Teleste Group M€ Financing Operating activities Investing activities activities 18 15,9 16 0,2 14 6,4 4,9 12 1,4 3,7 10 5,0 8 8,8 6,2 6 2,7 4 17 2 0 Cash Result for Inventories Payables Receivables CAPEX R&D Leasing Bank loans Cash 31.12.2023 Cash Flow and other 30.9.2024
Slide 18: Return on capital employed / Equity ratio
No Image No Image Return on capital employed Equity ratio At the end of the period 50% 45,4 % 45,6 % 4% 45% 39,7 % 40% 2% 35% 0,6 % 0,2 % 30% 0% 25% 20% -2% 15% -4% 10% -3,5 % 5% -6% 0% 2022 2023 1-9 2024 31.12.2022 31.12.2023 30.9.2024 Slightly positive Return on Capital Employed The equity rat
Slide 19: Net gearing / Interest-bearing net debt / adjEBITDA
No Image No Image Net gearing Interest-bearing Net debt / At the end of the reporting period adjEBITDA Last twelve months 100% 5,5x 90% 5,0x 4,5x 4,4x 80% 4,0x 70% 4,0x 3,5x 61,2 % 3,5x 60% 51,9 % 3,0x 50% 43,7 % 2,5x 40% 2,0x 30% 1,5x 20% 1,0x 10% 0,5x 0% 0,0x 31.12.2022 31.12.2023 30.9.2024 31.12.