Slide 1: Half year financial report January - June 2023
Half year financial report January - June 2023 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: H1 2023 highlights, financial review, H2 priorities
H1 2023 highlights H1 2023 financial review H2 2023 priorities, Strategy 2024-2026
Slide 4: Key Figures Q2 and H1 2023
Key Figures Q2 and H1 2023 Net sales and adjusted operating result increased. Positive cash flow from the operations. Full-year outlook remains unchanged. EUR million Q2 2023 Q2 2022 H1 2023 H1 2022 Net sales 40.1 38.4 +4.5 % 85.4 76.3 +12.0 % Adjusted EBIT 0.6 0.3 +75.9 % 2.1 0.4 >100 % EBIT 0.1 0.
Slide 5: Orders received H1 2023
Orders received H1 2023 Decrease vs. the high comparison period Orders received Orders received by business units, 1-6 2023 EUR million 250 Public Safety 200 188,5 and Mobility 175,5 33% Q4 150 Q3 100 Q2 46,8 71,1 Broadband 43,9 30,3 Q1 Networks 50 67% 0 2021 2022 2023 Orders received were below t
Slide 6: Order book June 2023
Order book 30 June 2023 Order book decreasing following the modest orders received Order book (end of the period) Order book by business units, 30 June 2023 EUR million Broadband 160 145,3 Networks 139,1 140 130,6 132,2 128,1 21% 117,8 120 108,6 96,0 100 84,2 76,1 80 60 40 20 Public Safety 0 and Mob
Slide 7: Net Sales Q2 2023
Net Sales Q2 2023 Net sales increased slightly Year-on-Year Net sales, 1-6 2023 Net sales EUR million Public Safety 50 and Mobility 34% 45 (33%) 40,1 40 38,4 Broadband 35,8 Networks 35 66% 30 (67%) 25 Other Finland 20 8% countries 15 5% Other Nordic 10 countries 13 % 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 8: Adjusted operating result Q2 2023
Adjusted operating result Q2 2023 Adjusted operating result increased Year-on-Year Adjusted operating result EUR million 2,5 Adjusted operating result increased Year-on-Year. Net sales growth and gross margin improvement increased the gross profit, but operating 2 expenses were increasing at the s
Slide 9: Guidance for the fiscal year 2023
Guidance for the fiscal year 2023 (unchanged) Teleste estimates that net sales in 2023 will amount to EUR 150-175 million and that the adjusted operating result in 2023 will amount to EUR 2-5 million. This guidance is subject to supply chain problems not becoming worse in 2023 than they are at prese
Slide 10: H1 2023 highlights, financial review, H2 priorities
H1 2023 highlights H1 2023 financial review H2 2023 priorities, Strategy 2024-2026
Slide 11: Teleste Group, Q2 2023
Teleste Group, Q2 2023 Net sales and adjusted EBIT increased. Strong cash flow. 4-6 4-6 1-6 1-6 1-12 EUR million Change Change 2023 2022 2023 2022 2022 Orders received 30,3 46,8 -35,3 % 71,1 106,7 -33,4 % 188,5 Order book 117,8 139,1 -15,3 % 132,2 Net sales 40,1 38,4 4,5 % 85,4 76,3 12,0 % 165,0 Adj
Slide 12: Cash flow from operations
Cash flow from operations Strong cash flow in Q2 2023 Cash flow from operations EUR million 9,6 -7,8 9,8 10 M€ Cash flow from operating activities was improved by a decrease in working capital. 5 4,1 In particular, working capital was released due to a decrease in sales receivables and inventori
Slide 13: Cash flow Q2 2023
Cash flow Q2 2023 Net working capital released. Divestment in Switzerland. Financing Operating activities Investing activities activities 25 2,4 0,5 0,1 6,3 1,4 20 0,6 10,8 1,0 1,9 15 14,0 13,3 10 5 0 Cash Adjusted Inventories Payables Receivables CAPEX R&D Divestment Leasing Debt Cash 31.3.2023 pro
Slide 14: Balance sheet, EUR million
Balance sheet, EUR million Working capital decreased but still ties up financial resources Assets Equity and liabilities Growing inventory levels turned to 146,6 146,6 141,8 141,8 declining trend at the year-end. Buffer stocks of chipsets for 1st generation Distributed Access Architecture products
Slide 15: R&D activities continued according to the planned roadmaps
R&D activities continued according to the planned roadmaps 20 20% 18 18% 15,8 R&D expenses amounted to EUR 8.7 (8.2) million. 16 16% Representing 10.2% (10.7%) of consolidated net 14,4 14 14% sales. Product development projects focused on next- R&D costs, M€ % of net sales 12 12% generation dis
Slide 16: Net gearing Net debt / EBITDA
Net gearing Net debt / EBITDA At the end of the reporting period Last twelve months 100% 5,5x 90% 5,0x 4,7x 80% 4,5x 70% 4,0x 61,2 % 3,5x 3,2x 60% 3,0x 50% 41,3 % 2,5x 40% 2,0x 30% 1,5x 20,2 % 20% 1,0x 0,9x 10% 0,5x 0% 0,0x 2021 2022 2023 Q2 2021 2022 2023 Q1 Net gearing decreased during the secon
Slide 17: H1 2023 highlights, financial review, H2 priorities
H1 2023 highlights H1 2023 financial review H2 2023 priorities, Strategy 2024-2026
Slide 18: 2H 2023 priorities
2H 2023 priorities Broadband Networks • GoWest ICON products’ lead customer approvals • GoWest volume delivery capability ramp-up • GoWest customer base expansion • Maximizing our market share and revenue in Europe • UK service business profitability Public Safety and Mobility • Implementation of mu