Teleste Corporation · OMXHEX:TLT1V
Teleste — Q1 2023 Earnings Presentation
19 slides from Teleste's earnings presentation, May 2023
Slide 1: Interim report January – March 2023
Interim report January – March 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: Q1 2023 highlights
Q1 2023 highlights Q1 2023 financial review 2023 objectives and the big picture
Slide 4: Key Figures Q1 2023
Key Figures Q1 2023 Good start for 2023, net sales and adjusted operating result increased. Full-year outlook remains unchanged. Q1 2023 Q1 2022 Net sales 45.3 M€ 38.0 M€ +19.4% Adjusted EBIT 1.5 M€ 0.1 M€ EBIT 1.2 M€ 0.1 M€ Adjusted earnings per share 0.14 € 0.01 € Cashflow from operation
Slide 5: Additional information in financial reporting
Additional information in financial reporting Teleste adds orders received, order book and net sales for its two business units to the quarterly reporting starting from the beginning of 2023. Broadband Networks Products, solutions and advanced services for the broadband network operators. Public Saf
Slide 6: Orders received Q1 2023
Orders received Q1 2023 Decrease vs. the record high comparison period Orders received Orders received by business units EUR million 200 188,5 175,5 180 Public Safety 160 and Mobility 34% 140 120 100 80 Broadband 60 Networks 40 66% 59,9 20 36,0 40,8 0 2021 2022 2023 Q1 Q2 Q3 Q4 Orders received had
Slide 7: Order book Q1 2023
Order book Q1 2023 Normal fluctuation in the project business Order book (end of the period) Order book by business units EUR million Broadband 160 145,3 Networks 139,1 140 130,6 132,2 128,1 26% 120 108,6 96,0 100 84,2 76,1 80 60 40 20 Public Safety 0 and Mobility Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 74% 2021
Slide 8: Net Sales Q1 2023
Net Sales Q1 2023 Net sales increased in both business units Public Safety and Mobility Net sales 33% EUR million (31%) 50 45,3 45 Broadband Networks 40 37,0 38,0 67% (69%) 35 30 Other 25 Finland countries 8 % Other Nordic 20 3% countries 15 17 % 10 5 Rest of 0 Europe Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 72 %
Slide 9: Adjusted operating result Q1 2023
Adjusted operating result Q1 2023 Operating result increased significantly Adjusted operating result EUR million 2,5 Adjusted operating result and operating result increased especially due to the growth in net sales. 2 Besides sales volumes, the factors contributing to the increase in material e
Slide 10: 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 11: Q1 2023 financial review
Q1 2023 highlights Q1 2023 financial review 2023 objectives and the big picture
Slide 12: Teleste Group, Q1 2023
Teleste Group, Q1 2023 Net sales and adjusted operating result increased. Positive tax decision in Belgium. 1-3 1-3 1-12 Orders received fluctuation during the 1st EUR million Change quarter which is typical in the project 2023 2022 2022 business. Order book at par with comparison Orders received
Slide 13: Cash flow from operating activities
Cash flow from operating activities Positive cash flow from operations continued Cash flow from operating activities EUR million Cash flow from operating activities was improved 10 by the positive development of operating result 8 and decrease in working capital. 6 Growing inventory levels turne
Slide 14: Cash flow Q1 2023
Cash flow Q1 2023 Positive cash flow from operations Financing Operating activities Investing activities activities 0.6 2.2 3.0 2.1 0.0 0.4 14.0 13.4 1.3 0.5 Cash Adjusted profit Inventories Payables Receivables CAPEX R&D Leasing Bank loans Cash 31.12.2022 and other 31.3.2023
Slide 15: Balance sheet, EUR million
Balance sheet, EUR million Working capital continues to tie up financial resources Assets Equity and liabilities 153,1 152,3 153,1 152,3 The growth in inventories has turned down at the turn of the year. The 45,0 44,9 largest buffer stocks are expected to Intangibles 62,7 60,4 gradually return to
Slide 16: Gross R&D expenses
R&D activities continued according to the planned roadmaps 20 20% 18 18% 15,8 R&D expenses amounted to EUR 4.3 (3.8) million. 16 16% 14,4 Representing 9.5% (10.1%) of consolidated net 14 14% sales. % of Net Sales Gross R&D expenses, EUR million Product development projects focused on next- 12 12
Slide 17: Net gearing and Net debt / EBITDA
Net gearing Net debt / EBITDA 31 March 2023 Last twelve months 100% 5,5x 90% 5,0x 4,7x 80% 4,5x 4,3x 70% 4,0x 61,2 % 3,5x 58,4 % 60% 3,0x 50% 2,5x 40% 2,0x 30% 1,5x 20,2 % 20% 1,0x 0,9x 10% 0,5x 0% 0,0x 2021 2022 2023 1-3 2021 2022 2023 1-3 Net gearing reduced below level of 60%. Increased EBITD
Slide 18: 2023 objectives and the big picture
Q1 2023 highlights Q1 2023 financial review 2023 objectives and the big picture
Slide 19: Key measures and objectives in 2023
Key measures and objectives in 2023 Broadband Networks • GoWest: 2‒3 new network operator customers, starting volume deliveries, key resourcing. • Maximizing our market share in Europe. • DAA business development. Public Safety and Mobility • Implementation of multiple parallel customer projects wi