TuSimple co-founder and CTO Xiaodi Hou and Boris Sofman, former Anki Robotics founder and CEO who now leads Waymo’s trucking unit, discusses the business and the technical challenges of autonomous trucking.
TuSimple co-founder and CTO Xiaodi Hou and Boris Sofman, former Anki Robotics founder and CEO who now leads Waymo’s trucking unit, discusses the business and the technical challenges of autonomous trucking.
A coalition of investors managing assets worth US$10 trillion has written to Australian and international mining firms demanding assurances over their relations with Indigenous communities after Rio Tinto destroyed a sacred site.
The forecast, which the company termed an 'informal' one, compares to a 35% growth modeled by Wall Street analysts, according to Refinitiv data. Shares of the company, which also beat third-quarter sales estimates, jumped 28% to $63.05 in extended trading. Pinterest said it benefited as advertisers redirected spending to its platform following a social media ad boycott campaign that began in July.
` Press release Paris, 29 October 2020 Q3 2020 financial information Return to revenue growth despite the impact of the health crisis - Strong commercial performance and growth in Wholesale and convergence enabled Orange to post EBITDAaL in line with the trajectory announced for 2020. - Proposed return to a €0.70 per share dividend for 2020. Orange will pay an interim dividend of €0.40 per share in December, revised upwards by €0.10. In millions of euros 3Q 2020changecomparablebasischangehistoricalbasis 9M 2020changecomparablebasischangehistoricalbasisRevenues 10,5840.8 %0.1 % 31,3530.5 %0.7 %EBITDAaL 3,584(0.4)%(0.8)% 9,498(0.6)%(0.7)%eCAPEX (excluding licenses) 1,7300.9 %0.3 % 4,886(6.3)%(6.6)%EBITDAaL - eCAPEX 1,854(1.5)%(1.9)% 4,6126.3 %6.4 % Return to revenue growth in the third quarter of 2020 despite the continuing sharp decline in roaming and the more limited decline in equipment sales, both linked to the health crisis. Growth in France and Africa & Middle East exceeded the decline in the other segments, which nevertheless showed an improving trend compared to the second quarter.Moderate decline in EBITDAaL in the third quarter, which benefited from the co-financing of the fiber network in France yet remains adversely impacted by the decline in roaming and the cost of health measures. Over the first nine months, the decline in EBITDAaL was limited to 0.6%1.Decline in the Group’s eCAPEX over the first nine months, mainly as a result of co-financing, despite the acceleration of deployments in fixed and mobile broadband networks. Commenting on the publication of the third quarter 2020 results, Stéphane Richard, Chairman and CEO of the Orange Group, said: “From the beginning of the year the Orange Group has demonstrated its resilience in all its markets in the face of an unprecedented health and economic crisis. Our networks have proven their robustness, our commercial performance has been very positive and we’re in line with all our financial objectives for the year. We returned to top-line growth in the third quarter (+0.8%) with EBITDAal on a more favourable trend than in the previous quarter (-0.4%), giving us added confidence in terms of the delivery of our guidance. These solid results also reflect co-financing with other operators in our French fiber networks which should continue in the coming years. I see this as a sign the market is transitioning towards fiber and offers us a way to earn a return on our investments. Beyond co-financing and the direct impact of the crisis, our underlying performance remains solid, thanks to a very strong commercial performance. There has been no fall-off in demand during the health crisis when the quality of connectivity is more essential than ever. With 360,000 net adds, we’ve had a record quarter for fiber in France, where we now have more than 4 million customers. Poland has also seen record fiber sales, while the commercial performance in Spain has been very encouraging even if the competitive environment there continues to be tough. I’d like to signal the excellent dynamic in Africa and the Middle East which returned to revenue growth of more than 5%, mainly thanks to mobile data and renewed activity at Orange Money. Finally, after difficult first half for B2B services, the recovery at Orange Business Services (OBS) is well under way, in particular due to the momentum in IT services. Strengthened by these good performances, we’re accelerating the roll-out of our Engage 2025 strategy. After Romania, we’ve recently launched 5G offers in Poland and in Spain. In France, we’ve acquired the largest bloc of 5G frequencies and this will allow us to maintain our leadership in mobile networks. We’re pushing ahead with projects that aim to better capitalise on our infrastructure and to develop our networks while also carefully managing our investments. Consistent with this, we’ve launched the necessary processes for the establishment of a European TowerCo that will take in our masts in France and Spain. Similarly, our Fiberco projects in rural areas in France and Poland are moving ahead well. This strong performance allows us to express our confidence in the future by proposing to the Board, that has given its approval, a return to a dividend per share of 70 cents in respect of the 2020 year. An increased interim dividend payment per share of 40 cents will also be paid out this year. My warm thanks go to all of Orange’s teams who have been fully mobilised throughout the crisis at the service of our clients.” Comments on key Group figures Revenues Orange Group revenues totaled €10.6 billion in the third quarter 2020, up 0.8% year on year on a comparable basis. This growth was driven by the momentum in services, in particular wholesale services thanks to the co-financing of the fiber network in France and convergent services which rose 5.7% and 1.5% respectively. Roaming continued to be adversely impacted by travel restrictions, while the decline in equipment sales was contained at 1.9%. France and Africa & Middle East contributed positively with respective growth of 3.1% and 5.1% (compared to growth of 2.7% and 1.3% in the second quarter) while Europe (including Spain) and Enterprise continued to be under pressure, albeit with an improving trend. Over the first nine months of the year, revenue growth was 0.5%. Customer base growth There were 10.9 million convergent customers across the Group at 30 September 2020, up 2.1% year on year, supported by continued strong growth in Europe. Mobile services had 211.9 million customers at 30 September 2020, up 2.5% year on year, including 76.2 million contract customers, an increase of 4.0%. Fixed services had 45.1 million customers on 30 September 2020, down 1.4% year on year, primarily due to the 12.8% decline in fixed narrowband accesses and despite the continued very strong growth (up 21.9%) in high-speed broadband accesses. EBITDAaL Group EBITDAaL was €3.58 billion in the third quarter, down 0.4% on a comparable basis, adversely impacted primarily by the decline in roaming and costs directly relating to the health crisis (including provisions for bad debts) of €109 million and €41 million respectively. These circumstantial impacts were again offset this quarter by co-financing of the fiber network in France. Over the first nine months of the year, the decline in EBITDAaL was limited to 0.6%. EBITDAaL of the telecom activities was €3.61 billion in the third quarter, down 0.6% on a comparable basis. It fell by 0.7% over the first nine months. eCAPEX Group eCAPEX rose 0.9% in the third quarter, due to the acceleration of the FTTH roll-out in France in September. It was down 6.3% over the first nine months, despite a step-up in investments in the fixed and mobile broadband networks, principally as a result of the co-financing of the fiber network in France. Monetization of the networks and execution of the infrastructure strategy At 30 September 2020, the cumulative co-financing proceeds received by Orange since 2009 for the fiber network in France was €2.4 billion. This amount represents slightly less than 50% of the total long-term co-financing potential, calculated based on estimates for the current broadband market shares of the Group’s competitors. In addition, Orange has taken new steps in its plans to share future fiber network deployments with partners via FiberCos and expects to sign agreements in the first half of 2021 with a view to creating dedicated structures in France and Poland that will be operational in 2021. Regarding value-creating initiatives for its European mobile network, Orange will detail the progress of the ongoing TowerCo projects dedicated to managing towers in France and Spain in the publication of its 2021 annual results. Changes in asset portfolio There were no significant changes in the asset portfolio in the third quarter of 2020. 2020 outlook Orange confirms it does not foresee any significant deviation from its financial objectives for 2020: the Group expects a slight decline in EBITDAaL in 2020 of around 1%, including all the effects related to the Covid-19 epidemic.Given the delays in investments observed to date, eCAPEX will be lower, offsetting the decline in EBITDAaL.As such, Group EBITDAaL less eCapex will be stable in 2020.The Group’s commitment to exceed €2.3 billion in organic cash flow of the telecoms activities remains unchanged.The objective of a ratio of net debt to EBITDAaL for telecoms activities is maintained at around 2x in the medium term. Dividend In view of the third-quarter results and the confidence in reaching the organic cash flow objective for 2020, the Board of Directors supports the return to a dividend of €0.70 per share in respect of the 2020 financial year. A definitive proposal will be made to the Annual General Meeting of 18 May 2021 in light of the final results for the year. Furthermore, Orange will pay an interim dividend of €0.40 per share on 9 December 2020, an increase of €0.10 compared to the amount announced in July. Review by operating segment France In millions of euros 3Q 2020changecomparablebasischangehistoricalbasis 9M 2020changecomparablebasischangehistoricalbasisRevenues 4,6933.1 %3.2 % 13,7172.1 %2.2 %Retail services 2,691(0.4)%(0.4)% 8,068(0.1)%(0.1)%Convergence 1,1372.5 %3.2 % 3,4054.0 %4.6 %Mobile Only 564(2.7)%(3.6)% 1,687(2.8)%(3.8)%Fixed Only 990(2.4)%(2.4)% 2,976(3.0)%(3.0)%Wholesale 1,54310.5 %10.7 % 4,4148.4 %8.6 %Equipment sales 302(9.8)%(9.8)% 759(16.8)%(16.8)%Other revenues 15733.3 %32.3 % 47529.8 %29.1 % Revenue growth supported by infrastructure co-financing and convergent services. Very good commercial performance from mobile and fiber. Third-quarter revenue growth in France was driven by the momentum of convergent services and strong growth in wholesale, thanks to the significant fiber network co-financing proceeds received in July. Retail services revenues fell 0.4% year on year. Excluding PSTN and ePresse and audiobook offers, revenues would have increased 1.7%. Revenues from convergent services increased 2.5%, despite the strong impact of the health crisis on customer roaming. Mobile only revenues were also adversely impacted by the decline in customer roaming and prepaid “holiday” offers, mainly taken up by tourists. Equipment sales continued to decline although with an improving trend compared to the second quarter thanks to the reopening of stores after lockdown. The quarter was also impacted by the postponed release of the iPhone 12. Despite a decline in national roaming, wholesale revenues rose strongly thanks to the co-financing of the fiber network and the construction of Public Initiative Networks. From a commercial standpoint, convergent ARPO rose 1.2% to €68.80. Mobile contracts (excluding M2M) posted 125,000 net adds, driven by the Sosh and Open offers (up 133,000 and 64,000 in net adds respectively). This is the best performance since the second quarter of 2018. Fiber again had an excellent quarter with a new record of 360,000 net adds (versus 178,000 in the third quarter of 2019) Of these sales, 53% were to new customers. The roll-out of fiber continued at a rapid pace with a total of 20.9 million connectable homes and the threshold of 4 million fiber customers exceeded at the end of September. Europe In millions of euros 3Q 2020changecomparablebasischangehistoricalbasis 9M 2020changecomparablebasischangehistoricalbasisRevenues 2,636(3.7)%(4.2)% 7,864(3.3)%(3.6)%Retail services 1,771(4.5)%(5.0)%-5,366(2.6)%(2.8)%Convergence 673(0.2)%(0.6)%-2,0501.9 %1.5 %Mobile Only 766(8.2)%(8.6)%-2,291(7.5)%(7.9)%Fixed Only 270(2.7)%(3.8)%-816(4.2)%(5.2)%IT & Integration services 61(9.5)%(7.8)%-20923.3 %36.7 %Wholesale 480(5.3)%(6.0)%-1,431(0.7)%(1.4)%Equipment sales 3554.8 %4.1 %-966(8.2)%(8.8)%Other revenues 30(18.8)%(20.0)%-101(20.4)%(21.2)% Revenues under continued pressure but commercial performance improving strongly. Revenues in Europe (which now includes Spain as well as Belgium, Luxembourg, Moldova, Poland, Romania and Slovakia) remained under pressure in the third quarter. The reduction in roaming accounts for more than half of the decline. This said, the trend improved compared to the second quarter, largely thanks to a recovery in equipment sales. Retail services were adversely affected by the weaker sales performance recorded in previous quarters, by a significant negative seasonal effect on customer roaming and by a contraction in IT&S sales following strong growth in previous quarters. While the health crisis continues to restrict the free movement of people, sales performances in the seven country Europe zone saw a significant turnaround in all product lines, with net adds of 221,000 mobile contracts (excluding M2M), 80,000 of which were accounted for by tablets in Romania (versus -129,000 in the second quarter), 285,000 by prepaid (versus -664,000 in the second quarter), 96,000 by fixed broadband, of which 139,000 were FTTH connections (versus 32,000 in the second quarter) and 51,000 by TV (versus -31,000 in the second quarter). This excellent performance resulted mainly from the revamping of our product lines undertaken in most of our geographies. In Spain, the 5.6% decline in revenues in the third quarter was an improvement on the second quarter (down 6.8%), despite the significant negative effect of the health crisis on roaming revenues, which impacted both wholesale and retail services revenues. The 7.7% decline in retail services revenues (versus a 7.2% decline in the second quarter) was due to the loss of volumes, relating to Orange Spain’s previously weak presence at the lower end of the market. Excluding roaming, retail service revenues stabilized compared to the second quarter. The new commercial strategy launched in the second quarter already demonstrated its effectiveness in the back-to-school period and with the start of the football season, with a return to positive net adds in fixed broadband, TV and mobile, leading to growth in the convergent customer base for the first time since the first quarter of 2018. Africa & Middle East In millions of euros 3Q 2020changecomparablebasischangehistoricalbasis 9M 2020changecomparablebasischangehistoricalbasisRevenues 1,4745.1 %1.9 % 4,3204.2 %3.2 %Retail services 1,2637.1 %3.5 % 3,7076.9 %5.6 %Mobile Only 1,1166.0 %2.5 % 3,2806.1 %4.7 %Fixed Only 14015.3 %11.6 % 41012.7 %12.0 %IT & Integration services 635.8 %34.1 % 1658.0 %57.1 %Wholesale 176(8.7)%(11.2)% 518(11.3)%(12.0)%Equipment sales 223.4 %(0.6)% 62(8.0)%(7.6)%Other revenues 1448.3 %90.5 % 3325.7 %66.3 % Significant return to growth in Africa & Middle East Africa & Middle East third quarter revenues returned to strong growth driven by mobile data, Orange Money and fixed broadband, after a second quarter marked by the impact of the health crisis. The 4G customer base reached 30.9 million, an increase of 37% year on year, out of a total of 126 million mobile customers. Orange Money revenue growth accelerated again in the third quarter, reaching 27.1%, after a second quarter marked by the free transaction measures recommended by the authorities to help combat the epidemic. The active customer base increased 21% year on year to reach a level of more than 20 million customers. The number of fixed broadband customers grew 38% year on year, reaching 1.6 million customers; revenues were up 26.4%. Wholesale revenues continued to be affected by the decrease in international travel and visitor roaming. In the third quarter, 12 countries in the region recorded growth, with six of them in double-digits. Enterprise In millions of euros 3Q 2020changecomparablebasischangehistoricalbasis 9M 2020changecomparablebasischangehistoricalbasisRevenues 1,898(1.7)%(2.4)% 5,757(1.4)%0.7 %Fixed Only 952(2.0)%(2.6)% 2,910(1.6)%(1.6)%Voice 303(3.4)%(3.8)% 935(3.0)%(3.0)%Data 649(1.3)%(2.0)% 1,975(0.9)%(0.9)%IT & Integration services 734(0.5)%(1.6)% 2,2091.1 %7.1 %Mobile * 213(4.6)%(4.6)% 638(8.5)%(8.5)%Mobile Only 159(8.4)%(8.5)% 487(10.2)%(10.2)%Wholesale 1130.6 %30.6 % 3223.5 %23.5 %Equipment sales 424.8 %4.8 % 119(7.7)%(7.7)% Decline in revenues of 1.7%, an improvement on the second quarter (down 3.3%), despite the still significant impact of the health crisis on B2B business. IT and integration services revenues almost returned to stability after a 2.6% decline in the second quarter and over the first 9 months continued to show growth. Cloud and cybersecurity services slowed in the third quarter, but posted growth of 5% and 8% respectively over the first nine months of the year. Traditional voice services declined again, however the trend was less pronounced than before the health crisis, thanks to VoIP and collaboration solutions, while Data revenues continued to be impacted by Globecast, whose broadcasting activities have been reduced as a result of event cancellations. Mobile* revenues continued to be significantly affected by the substantial decline in roaming revenues (down 71%) caused by the health crisis. Overall, the segment’s profitability improved compared with the second quarter. * Mobile revenues include mobile services and mobile equipment sales invoiced to businesses and incoming mobile traffic from businesses invoiced to other carriers. International Carriers & Shared Services In millions of euros 3Q 2020changecomparablebasischangehistoricalbasis 9M 2020changecomparablebasischangehistoricalbasisRevenues 352(5.7)%(6.1)% 1,080(3.5)%(3.7)%Wholesale 250(7.2)%(7.4)% 780(4.0)%(4.0)%Other revenues 102(1.9)%(2.9)% 301(2.2)%(2.9)% Revenues from International Carriers and Shared Services declined 5.7% in the third quarter. International wholesale services continued to be heavily impacted by the Covid-19 epidemic due to the international travel ban and the reduction in flows on voice corridors. Other revenues also continued to be affected by the decline in installation activities at Orange Marine, also hit by the health crisis. Orange Bank In the third quarter, despite a slowdown in commercial activity as a result of the health crisis, Orange Bank’s customer base continued to grow reaching a total of 1.1 million customers at 30 September 2020, including mobile insurance. Orange Bank is successfully pursuing its value-oriented strategy, with a record number of premium card sales and nearly 60% of new customers in France (excluding mobile insurance) subscribing to paid offers in the third quarter of 2020, up from 27% in the third quarter of 2019. Calendar of upcoming events 18/02/2021 - Publication of full year 2020 results Contacts Press: +33 1 44 44 93 93 Tom Wright email@example.com Olivier Emberger firstname.lastname@example.orgFinancial Communications: +33 1 44 44 04 32 (analysts and investors) Patrice Lambert-de Diesbach email@example.com Samuel Castelosamuel.firstname.lastname@example.org Didier Kohn email@example.com Aurélia Roussel firstname.lastname@example.org Andrei Dragolici email@example.com Disclaimer This press release contains forward-looking statements about Orange’s financial situation, results of operations and strategy. Although we believe these statements are based on reasonable assumptions, they are subject to numerous risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. In particular, the consequences of the Covid-19 outbreak are uncertain and the health crisis may exacerbate the risks that the Group faces. More detailed information on the potential risks that could affect our financial results is included in the Universal Registration Document filed on 20 April 2020 with the French Financial Markets Authority (AMF) and in the annual report (Form 20-F) filed on 21 April 2020 with the U.S. Securities and Exchange Commission. Other than as required by law, Orange does not undertake any obligation to update them in light of new information or future developments. Appendix 1: Key financial indicators Quarterly data In millions of euros 3Q 20203Q 2019comparablebasis3Q 2019historicalbasischangecomparablebasischangehistoricalbasisRevenues 10,58410,50410,5770.8 %0.1 %France 4,6934,5514,5483.1 %3.2 %Europe 2,6362,7372,752(3.7)%(4.2)%Africa & Middle-East 1,4741,4021,4475.1 %1.9 %Enterprise 1,8981,9311,946(1.7)%(2.4)%International Carriers & Shared Services 352373375(5.7)%(6.1)%Intra-Group eliminations (468)(491)(491) EBITDAaL (1) 3,5843,5973,614(0.4)%(0.8)%o/w telecom activities 3,6133,6343,651(0.6)%(1.0)%As % of revenues 34.1 %34.6 %34.5 %(0.5 pt)(0.4 pt)o/w Orange Bank (29)(37)(37)21.2 %21.2 %eCAPEX 1,7301,7151,7240.9 %0.3 %o/w telecom activities 1,7231,7081,7180.9 %0.3 %as % of revenues 16.3 %16.3 %16.2 %0.0 pt0.0 pto/w Orange Bank 76615.9 %15.9 %EBITDAaL - eCAPEX 1,8541,8831,890(1.5)%(1.9)% (1) EBITDAaL adjustments are described in Appendix 2. Data at 30 September: In millions of euros 9M 20209M 2019comparablebasis9M 2019historicalbasischangecomparablebasischangehistoricalbasisRevenues 31,35331,20731,1500.5 %0.7 %France 13,71713,43113,4232.1 %2.2 %Europe 7,8648,1308,160(3.3)%(3.6)%Africa & Middle-East 4,3204,1444,1854.2 %3.2 %Enterprise 5,7575,8395,716(1.4)%0.7 %International Carriers & Shared Services 1,0801,1191,121(3.5)%(3.7)%Intra-Group eliminations (1,384)(1,457)(1,454) EBITDAaL (1) 9,4989,5559,570(0.6)%(0.7)%o/w telecom activities 9,5989,6699,684(0.7)%(0.9)%As % of revenues 30.6 %31.0 %31.1 %(0.4 pt)(0.5 pt)o/w Orange Bank (101)(115)(115)12.1 %12.1 %eCAPEX 4,8865,2175,233(6.3)%(6.6)%o/w telecom activities 4,8655,1945,211(6.3)%(6.6)%as % of revenues 15.5 %16.6 %16.7 %(1.1 pt)(1.2 pt)o/w Orange Bank 212323(6.0)%(6.0)%EBITDAaL - eCAPEX 4,6124,3394,3366.3 %6.4 % (1) EBITDAaL adjustments are described in Appendix 2. Appendix 2: adjusted data to income statement items Quarterly data 3Q 2020 3Q 2019historical basisIn millions of euros Adjusted data,Presentation adjustments,Income statement, Adjusted data,Presentation adjustments,Income statement,Revenues 10,584-10,584 10,577-10,577External purchases (4,261)-(4,261) (4,437)-(4,437)Other operating income 132-132 184-184Other operating expense (112)(7)(119) (84)(1)(85)Labor expenses (1,991)67(1,924) (1,947)33(1,914)Operating taxes and levies (352)-(352) (326)-(326)Gains (losses) on disposal of fixed assets, investments and activities -1414 -4040Restructuring costs -22 -(12)(12)Depreciation and amortization of financed assets (15)-(15) (4)-(4)Depreciation and amortization of right-of-use assets (367)-(367) (316)-(316)Impairment of right-of-use assets --- (0)-(0)Interests expenses on liabilities related to financed assets (0)0- (0)0-Interests expenses on lease liabilities (33)33- (33)33-EBITDAaL 3,584109- 3,61494-Significant litigation (3)3- 10(10)-Specific labour expenses 68(68)- 29(29)-Fixed assets, investments and business portfolio review 14(14)- 40(40)-Restructuring program costs 2(2)- (12)12-Acquisition and integration costs (6)6- (7)7-Interests expenses on liabilities related to financed assets -(0)(0) -(0)(0)Interests expenses on lease liabilities -(33)(33) -(33)(33) Data at 30 September: 9M 2020 9M 2019historical basisIn millions of euros Adjusted data,Presentation adjustments,Income statement, Adjusted data,Presentation adjustments,Income statement,Revenues 31,353-31,353 31,150-31,150External purchases (12,808)-(12,808) (12,981)-(12,981)Other operating income 403-403 525-525Other operating expense (387)(181)(568) (278)(7)(285)Labor expenses (6,333)33(6,300) (6,267)(81)(6,347)Operating taxes and levies (1,584)-(1,584) (1,533)-(1,533)Gains (losses) on disposal of fixed assets, investments and activities -7373 -108108Restructuring costs -(11)(11) -(63)(63)Depreciation and amortization of financed assets (37)-(37) (7)-(7)Depreciation and amortization of right-of-use assets (1,019)-(1,019) (943)-(943)Impairment of right-of-use assets -(6)(6) (0)(24)(25)Interests expenses on liabilities related to financed assets (1)1- (0)0-Interests expenses on lease liabilities (91)91- (97)97-EBITDAaL 9,498(0)- 9,57030-Significant litigation (172)172- (55)55-Specific labour expenses 40(40)- (17)17-Fixed assets, investments and business portfolio review 73(73)- 108(108)-Restructuring program costs (17)17- (87)87-Acquisition and integration costs (16)16- (17)17-Interests expenses on liabilities related to financed assets -(1)(1) -(0)(0)Interests expenses on lease liabilities -(91)(91) -(97)(97) Appendix 3: Key performance indicators In thousand, at the end of the period 30 September 2020 30 September 2019Number of convergent customers 10,914 10,686Number of mobile accesses (excluding MVNOs) (1) 211,856 206,743o/wMobile accesses of convergent customers 19,484 18,933 Mobile only accesses 192,371 187,810o/wContract customers 76,252 73,353 Prepaid customers 135,604 133,390Number of fixed accesses (2) 45,128 45,767 Number of fixed retail accesses 29,357 29,739 Number of fixed broadband accesses 21,301 20,505 o/wAccesses with very high-speed broadband 8,997 7,379 Accesses of convergent customers 10,914 10,686 Fixed only accesses 10,387 9,819 Number of fixed narrowband accesses 8,055 9,234 Number of fixed wholesale accesses 15,771 16,028Group total accesses (1+2) 256,983 252,510 2019 data is presented on a comparable basis. The key indicators by country are presented in the "Orange investors data book Q3 2020", available on www.orange.com, under Finance/Results/Q3 Results 2020: https://www.orange.com/en/latest-consolidated-results Appendix 4: glossary Key figures Data on a comparable basis: data based on comparable accounting principles, scope of consolidation and exchange rates are presented for previous periods. The transition from data on an historical basis to data on a comparable basis consists of keeping the results for the period ended and then restating the results for the corresponding period of the preceding year for the purpose of presenting, over comparable periods, financial data with comparable accounting principles, scope of consolidation and exchange rate. The method used is to apply to the data of the corresponding period of the preceding year, the accounting principles and scope of consolidation for the period just ended as well as the average exchange rate used for the income statement for the period ended. Changes in data on a comparable basis reflect organic business changes. Data on a comparable basis is not a financial aggregate as defined by IFRS and may not be comparable to similarly-named indicators used by other companies. EBITDAaL or “EBITDA after Leases”: operating income (i) before depreciation and amortization of fixed assets, effects resulting from business combinations, reclassification of cumulative translation adjustment from liquidated entities, impairment of goodwill and fixed assets, share of profits (losses) of associates and joint ventures, (ii) after interest on debts related to financed assets and on lease liabilities, and (iii) adjusted for significant litigation, specific labor expenses, fixed assets, investments and businesses portfolio review, restructuring programs costs, acquisition and integration costs and, where appropriate, other specific elements. EBITDAaL is not a financial aggregate as defined by IFRS standards and may not be directly comparable to similarly-named indicators in other companies. eCAPEX or “economic CAPEX”: (i) acquisitions of property, plant and equipment and intangible assets, excluding telecommunications licenses and financed assets, (ii) less the price of disposal of property, plant and equipment and intangible assets. eCAPEX is not a financial performance indicator as defined by IFRS standards and may not be directly comparable to indicators referenced by similarly-named indicators in other companies. Organic Cash Flow (telecoms activities): for the perimeter of the telecoms activities, this corresponds to the net cash provided by operating activities, minus (i) lease liabilities repayments and debts related to financed assets repayments, and (ii) purchases and sales of property, plant and equipment and intangible assets, net of the change in the fixed assets payables, (iii) excluding effect of telecommunication licenses paid and significant litigations paid or received. Organic Cash Flow (telecoms activities) is not a financial aggregate defined by IFRS and may not be comparable to similarly-named indicators used by other companies. Convergence The customer base and the revenues invoiced to convergence services customers (excluding equipment sales) was for convergent offers defined as the combination of, at a minimum, a fixed broadband access and a mobile contract subscribed by retail market customers. Convergent ARPO: the average quarterly revenues per convergent offer (ARPO) is calculated by dividing revenues from retail convergent services offers invoiced to customers generated over the past three months (excluding IFRS 15 adjustments) by the weighted average number of retail convergent offers over the same period. ARPO is expressed by monthly revenues per convergent offer. Performance indicators The fixed retail accesses correspond to the number of fixed broadband accesses (xDSL (ADSL and VDSL), FTTx, cable, Fixed-4G (fLTE) and other broadband accesses (satellite, Wimax and others)) and fixed narrowband accesses (mainly PSTN) and payphones. The fixed wholesale accesses correspond to the number of fixed broadband and narrowband wholesale accesses operated by Orange. Mobile Only services Revenues from Mobile Only services consists of revenues invoiced to customers of mobile offers excluding retail convergence and equipment sales. The customer base includes customers with a contract excluding retail convergence, machine-to-machine contracts and prepaid cards. Mobile Only ARPO: the average quarterly revenues from Mobile Only (ARPO) is calculated by dividing the revenue from Mobile Only services (excluding machine-to-machine and IFRS 15 adjustments) generated over the past three months by the weighted average of Mobile Only customers (excluding machine-to-machine) over the same period. The ARPO is expressed as monthly revenues per Mobile Only customer. Fixed Only services Revenues from Fixed Only services include the revenue of fixed services excluding retail convergence and equipment sales: traditional fixed-line telephony, fixed broadband and enterprise solutions and networks2. The customer base consists of fixed-line telephony and fixed broadband customers, excluding retail convergence customers. Fixed Only Broadband ARPO: the average quarterly revenues from Fixed Only Broadband (ARPO) is calculated by dividing the revenue from Fixed Only Broadband services (excluding IFRS 15 adjustments) generated over the past three months by the weighted average of Fixed Only Broadband customers over the same period. ARPO is expressed as monthly revenues per Fixed Only Broadband customer. IT & integration services Revenues from IT and integration services include revenue from unified communication and collaboration services (Local Area Network and telephony, consulting, integration, project management and video conferencing offers), hosting and infrastructure services (including cloud computing), application services (customer relations management and other application services), security services, machine-to-machine services (excluding connectivity), as well as equipment sales for the products and services above. Wholesale Revenues from other carriers consists of (i) mobile services to other carriers including incoming traffic, visitor roaming, network sharing, national roaming and Mobile Virtual Network Operators (MVNOs), and (ii) fixed services to other carriers including national networking, services to international carriers, high-speed and very high-speed broadband access (fiber access, unbundling of telephone lines and xDSL access sales) and the sale of telephone lines on the wholesale market. 1 Unless otherwise stated, all changes presented in this press release are on a comparable basis. 2 With the exception of France, where enterprise solutions and networks are listed under the Enterprise business segment. Attachment PR_Orange_3Q_2020_EN_291020
My favourite tree: readers' travel tipsOur love of trees, and the solace they have brought this year, shines brightly in this pick spanning England and Wales
Transamerica, Aegon’s business in the United States, has sold the Pyramid building complex which includes the Pyramid, 505 Sansome, the Redwood Park and other properties in the block bounded by Montgomery Street, Clay Street, Washington Street, and Sansome Street in San Francisco, to a joint venture led by Michael Shvo. Transamerica will continue to use the Pyramid as its logo and trademark. Transamerica will provide a mortgage loan supporting the property at commercial rates. The transaction will allow for a further diversification of the investment portfolio at favorable yields, therewith improving the risk profile of the Group.
Amsterdam/’s-Hertogenbosch, the Netherlands, 29 October 2020 Quarterly result in line with second quarter of the yearClient assets added 3% to €106.3 billion and AuM 3% to €92.0 billionNet AuM inflow of €1.4 billion at Private Banking and Asset ManagementLimited addition to loan loss provisions, reflecting our wealth management profileCapital ratio increases to 24.9% Van Lanschot Kempen today released its trading update for the third quarter of 2020. Constant Korthout, Van Lanschot Kempen’s Chief Financial & Risk Officer, said: “The current circumstances around Covid-19 remain exceptional and we’re seeing the impact of the virus return and increase all around us. At the same time, we note that the third quarter was a good one financially for most of our clients. The low risk exposure in our loan portfolio and resultant minor addition to our loan loss provisions have once again proven the robustness of our wealth management model. Over the past few months, we have stuck to the cost-saving measures announced previously, and the outcomes show that we have costs under control. We’re pleased with our solid results in the third quarter.” Client assets increased by €2.9 billion to €106.3 billion in the quarter. Assets under management (AuM) were up €2.8 billion to €92.0 billion on net inflows of €1.4 billion combined with a positive market performance of €1.4 billion. Private Banking once again reported net AuM inflows in the third quarter of €0.3 billion (YTD €0.8 billion). These net inflows – both in the Netherlands and in Belgium – reflect our clients’ continued willingness to invest. Meanwhile, Asset Management recorded net inflows of €1.1 billion (YTD €4.9 billion), and some €1.4 billion was added to fiduciary management, mainly on the back of the new €1.0 billion mandate for Stichting Pensioenfonds Grontmij. Investment strategies, by contrast, fell in the quarter, in part caused by funds being discontinued. Our Corporate Finance & Equity Capital Markets team had another good quarter, completing deals in all niche markets in which they operate. Within Life Sciences, we were involved in CureVac’s IPO on America’s Nasdaq market and the secondary offering of Kojamo shares in the real estate sector. Meanwhile, Unifiedpost in Belgium was our first IPO in the fintech sector. In August, we announced the next step in our growth strategy by acquiring Hof Hoorneman Bankiers. We have applied for a declaration of no objection from our regulator and are awaiting their approval. To further optimise our capital position and simplify our legal structure, we are currently investigating the possibility of merging our holding company Van Lanschot Kempen NV with our operating company Van Lanschot Kempen Wealth Management NV in 2021. Our current capital position remains strong and our CET 1 ratio amounts to 24.9% (excluding retained earnings). As previously announced, and taking heed of the ECB’s and DNB’s advice, we will not pay out our 2019 dividend before January 2021. This €59.4 million dividend is reserved for our shareholders on our balance sheet and is not included in our capital ratios. FINANCIAL CALENDAR25 February 2021 Publication of 2020 annual results Media Relations: + 31 20 354 45 85; firstname.lastname@example.org Investor Relations: +31 20 354 45 90; email@example.com About Van Lanschot Kempen Van Lanschot Kempen, a wealth manager operating under the Van Lanschot, Kempen and Evi brand names, is active in Private Banking, Asset Management and Merchant Banking, with the aim of preserving and creating wealth, in a sustainable way, for both its clients and the society of which it is part. Listed at Euronext Amsterdam, Van Lanschot Kempen is the Netherlands’ oldest independent financial services company, with a history dating back to 1737. For more information, please visit vanlanschotkempen.com Disclaimer and cautionary note on forward-looking statements This press release may contain forward-looking statements on future events and developments. These forward-looking statements are based on the current insights, information and assumptions of Van Lanschot Kempen’s management about known and unknown risks, developments and uncertainties. Forward-looking statements do not relate strictly to historical or current facts and are subject to such risks, developments and uncertainties which by their very nature fall outside the control of Van Lanschot Kempen and its management. Actual results, performances and circumstances may differ considerably from these forward-looking statements as a result of risks, developments and uncertainties relating to, but not limited to, (a) income growth, (b) costs, (c) the macroeconomic and business climate, (d) political and market trends, (e) interest rates and currency exchange rates, (f) behaviour of clients, competitors, investors and counterparties, (g) the implementation of Van Lanschot Kempen’s strategy, (h) actions taken by supervisory and regulatory authorities and private entities, (i) changes in law and taxation, (j) changes in ownership that could affect the future availability of capital, (k) changes in credit ratings and (l) evolution and economic and societal impact of the Covid-19 pandemic. Van Lanschot Kempen cautions that forward-looking statements in this press release are only valid on the specific dates on which they are expressed, and accepts no responsibility or obligation to revise or update any information, whether as a result of new information or for any other reason. The financial data in this press release have not been audited, unless specifically stated otherwise. This press release does not constitute an offer or solicitation for the sale, purchase or acquisition in any other way or subscription to any financial instrument and is not a recommendation to perform or refrain from performing any action. Elements of this press release contain information about Van Lanschot Kempen NV and/or Van Lanschot NV within the meaning of Article 7(1) to (4) of EU Regulation No. 596/2014. This press release is a translation of the Dutch language original and is provided as a courtesy only. In the event of any disparities, the Dutch language version will prevail. No rights can be derived from any translation thereof. Attachment Press release_Trading update Q3 2020
ALLSCHWIL, Switzerland, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Polyphor AG (SIX: POLN) today announces that it has completed recruitment in its FORTRESS Phase III study of balixafortide in metastatic breast cancer. A total of 411 patients have been recruited, including 323 in the third line cohort and 88 patients in the second line cohort. Although recruitment is closed, Polyphor will allow all patients that have already registered for the study to be enrolled. This may increase the final number of patients enrolled in the study to approximately 430. As previously communicated, data on the key primary endpoint of FORTRESS, progression free survival (PFS) in the overall population, is planned for Q4 2021. An analysis of the objective response rate (ORR) in eligible patients in third and later lines of chemotherapy is planned for Q2 2021. “We are pleased to have completed recruitment in this important study in a timely manner. Balixafortide is currently the only potent blocker of CXCR4, a key molecule involved in tumor growth and metastasis, in Phase 3 clinical development for a solid tumor and as such, it has significant potential to improve the lives of patients,” said Dr. Frank Weber, Chief Medical and Development Officer at Polyphor. “We would like to take this opportunity to thank first and foremost the patients, but also the investigators and the local staff as well as our employees for their active participation in this study. This great effort has enabled us to complete the recruitment as planned, despite the difficulties caused by the current pandemic.” The FORTRESS study (POL6326-009) is an international, multicenter, randomized active-controlled, open-label Phase III trial which investigates the efficacy, safety and tolerability of intravenous balixafortide given with eribulin versus eribulin alone in the treatment of HER2 negative, locally recurrent or metastatic breast cancer. Subject to the data, Polyphor may submit a filing for accelerated approval in the US based on the analysis of the ORR, confirmed by an independent blinded review, and of the associated durability of response. The full approval would be based on the magnitude of PFS on blinded independent review, supported by an overall survival trend favoring the balixafortide arm and a favorable risk-benefit profile. For more information about the POL6326-009 clinical trial of balixafortide, please visit www.clinicaltrials.gov (Identifier: NCT03786094) For further information please contact: For Investors: Hernan LevettChief Financial OfficerPolyphor Ltd.+41 61 567 16 00IR@polyphor.comMary-Ann ChangLifeSci AdvisorsTel: +44 7483 284 firstname.lastname@example.org For Media: Bernhard SchmidLifeSci Advisors+41 44 447 12 email@example.com About PolyphorPolyphor is a research-driven clinical-stage, Swiss biopharmaceutical company committed to discovering and developing best-in-class molecules in oncology and antimicrobial resistance leveraging the company’s leading macrocyclic peptide technology platform. Polyphor is advancing balixafortide (POL6326) in a Phase III trial in combination with eribulin in patients with advanced breast cancer and exploring its potential in other cancer indications. In addition, it has discovered and is developing the Outer Membrane Protein Targeting Antibiotics (OMPTA). OMPTA are potentially the first new class of antibiotics in clinical development in the last 50 years against Gram-negative bacteria. The company’s lead OMPTA program is an inhaled formulation of murepavadin for the treatment of Pseudomonas aeruginosa infections in patients with cystic fibrosis. Polyphor is based in Allschwil near Basel and is listed on the SIX Swiss Exchange (SIX: POLN). For more information, please visit www.polyphor.com. DisclaimerThis press release contains forward-looking statements which are based on current assumptions and forecasts of the Polyphor management. Known and unknown risks, uncertainties, and other factors could lead to material differences between the forward-looking statements made here and the actual development, in particular Polyphor’s results, financial situation, and performance. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Polyphor disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.
BOUSSARD & GAVAUDAN HOLDING LIMITED Ordinary Shares The Directors of Boussard & Gavaudan Holding Limited would like to announce the following information for the Company. Close of business 28 Oct 2020. Estimated NAV Euro SharesSterling SharesEstimated NAV€ 24.0422£ 21.2607Estimated MTD return 1.08 % 0.95 %Estimated YTD return 4.99 % 3.03 %Estimated ITD return 140.42 % 112.61 % NAV and returns are calculated net of management and performance fees Market information Euro SharesAmsterdam (AEX)London (LSE)Market Close€ 17.90N/APremium/discount to estimated NAV -25.55 %N/A Sterling SharesAmsterdam (AEX)London (LSE)Market CloseN/AGBX 1,500.00Premium/discount to estimated NAVN/A -29.45 % Transactions in own securities purchased into treasury Ordinary Shares Euro SharesSterling SharesNumber of sharesN/AN/AAverage PriceN/AN/ARange of PriceN/AN/A Liquidity Enhancement AgreementEuro SharesSterling SharesNumber of sharesN/AN/AAverage PriceN/AN/A BGHL Capital BGHL Ordinary SharesEuro SharesSterling SharesShares Outstanding 13,961,778 301,536Held in treasury 100,000N/AShares Issued 14,061,778 301,536 Estimated BG Fund NAV Class B Euro Shares (estimated)€ 199.4788 The Class B Euro Shares of BG Fund are not subject to investment manager fees, as the Investment Manager receives management fees and performance fees in respect of its role as Investment Manager of BGHL. For further information please contact: Boussard & Gavaudan Investment Management, LLP. Emmanuel Gavaudan +44 (0) 20 3751 5389 Email : firstname.lastname@example.org The Company is established as a closed-ended investment company domiciled in Guernsey. The Company has received the necessary approval of the Guernsey Financial Services Commission and the States of Guernsey Policy Council. The Company is registered with the Dutch Authority for the Financial Markets as a collective investment scheme pursuant to article 2:73 in conjunction with 2:66 of the Dutch Financial Supervision Act (Wet op het financieel toezicht). The shares of the Company (the "Shares") are listed on Euronext Amsterdam. The Shares are also listed on the Official List of the UK Listing Authority and admitted to trading on the London Stock Exchange plc's main market for listed securities. This is not an offer to sell or a solicitation of any offer to buy any securities in the United States or in any other jurisdiction. This announcement is not intended to and does not constitute, or form part of, any offer or invitation to purchase any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of the securities referred to in this announcement in any jurisdiction in contravention of applicable law. Neither the Company nor BG Fund ICAV has been, and neither will be, registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act"). In addition the securities referenced in this announcement have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"). Consequently any such securities may not be offered, sold or otherwise transferred within the United States or to, or for the account or benefit of, US persons except in accordance with the Securities Act or an exemption therefrom and under circumstances which will not require the issuer of such securities to register under the Investment Company Act. No public offering of any securities will be made in the United States. You should always bear in mind that: all investment is subject to risk; results in the past are no guarantee of future results; the investment performance of BGHL may go down as well as up. You may not get back all of your original investment; and if you are in any doubt about the contents of this communication or if you consider making an investment decision, you are advised to seek expert financial advice. This communication is for information purposes only and the information contained in this communication should not be relied upon as a substitute for financial or other professional advice. Attachment BGHL Publication-28.10
Press ReleaseNicox Granted New Patent for NCX 470, Extending Exclusivity in Europe to 2039 October 29, 2020 – release at 7:30 am Sophia Antipolis, France Nicox SA (Euronext Paris: FR0013018124, COX), an international ophthalmology company, today announced that the European Patent Office has granted a formulation patent for NCX 470, extending the European exclusivity to 2039. The equivalent U.S. patent has already been granted, and NCX 470 is also covered by granted composition of matter patents. Gavin Spencer, Chief Business Officer at Nicox, said: “We are pleased that our formulation patent for NCX 470 has been granted in Europe, following the U.S. grant earlier in the year. This strengthens our competitive position and provides further protection of this potential best-in-class product candidate for the lowering of intraocular pressure as we continue Phase 3 development and move it towards commercialization.” NCX 470, Nicox’s lead clinical product candidate, is a novel second-generation nitric oxide (NO)-donating bimatoprost analog for the lowering of intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. It is currently being evaluated in the Mont Blanc Phase 3 clinical trial which was initiated in the U.S. in June 2020 with top-line results currently expected in Q4 2021. A second Phase 3 trial, Denali, is expected to start by the end of 2020, and will include clinical sites in both the U.S. and China, with the majority of the patients to be recruited in the U.S. NCX 470 is exclusively licensed to Ocumension Therapeutics for the Chinese, Korean and South East Asian markets. The Denali trial is jointly funded by Nicox and Ocumension.About NCX 470NCX 470 is a novel, potential best-in-class, second generation nitric oxide (NO)-donating bimatoprost analog in development to reduce intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. Glaucoma is a group of ocular diseases in which the optic nerve is injured, leading to peripheral and, ultimately, central visual field loss and it can eventually lead to blindness if not treated. It is frequently linked to abnormally high IOP (~90% of patients) due to blockage or malfunction of the eye’s aqueous humor drainage system in the front of the eye. In 2019, worldwide sales of treatments targeting glaucoma were over $6.0 billion out of a $21.9 billion worldwide market for ophthalmic drugs. NCX 470 is designed to release both bimatoprost and NO following instillation into the eye. Bimatoprost, marketed under the brand name LUMIGAN® by Allergan, Inc., is one of the leading products in the class of prostaglandin analogs, the most widely used class of drugs for IOP-lowering in patients with open-angle glaucoma or ocular hypertension. About NicoxNicox S.A. is an international ophthalmology company developing innovative solutions to help maintain vision and improve ocular health. Nicox’s lead program in clinical development is NCX 470, a novel, second-generation nitric oxide-donating bimatoprost analog, for lowering intraocular pressure in patients with glaucoma. The company is also developing NCX 4251, a proprietary formulation of fluticasone, for acute exacerbations of blepharitis. Nicox generates revenue from VYZULTA® in glaucoma, licensed exclusively worldwide to Bausch + Lomb, and ZERVIATE™ in allergic conjunctivitis, licensed in multiple geographies, including to Eyevance Pharmaceuticals, LLC, in the U.S. and Ocumension Therapeutics in the Chinese and in the majority of South East Asian markets. Nicox is headquartered in Sophia Antipolis, France, is listed on Euronext Paris (Compartment B: Mid Caps; Ticker symbol: COX) and is part of the CAC Healthcare, CAC Pharma & Bio and Next 150 indexes. For more information on Nicox, its products or pipeline, please visit: www.nicox.com.Analyst coverage Bryan, Garnier & Co Victor Floc’h Paris, FranceCantor Fitzgerald Louise Chen New York, U.S.H.C. Wainwright & Co Yi Chen New York, U.S.Oppenheimer & Co Hartaj Singh New York, U.S. The views expressed by analysts in their coverage of Nicox are those of the author and do not reflect the views of Nicox. Additionally, the information contained in their reports may not be correct or current. Nicox disavows any obligation to correct or to update the information contained in analyst reports.ContactsNicoxGavin SpencerExecutive Vice President, Chief Business Officer& Head of Corporate Development T +33 (0)4 97 24 53 email@example.com Investors & MediaUnited States & Europe LifeSci Advisors, LLC Mary-Ann Chang T +44 7483 284 firstname.lastname@example.orgMediaFranceLifeSci Advisors, LLCSophie BaumontM +33 (0)6 27 74 74 49 email@example.comForward-Looking StatementsThe information contained in this document may be modified without prior notice. This information includes forward-looking statements. Such forward-looking statements are not guarantees of future performance. These statements are based on current expectations or beliefs of the management of Nicox S.A. and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Nicox S.A. and its affiliates, directors, officers, employees, advisers or agents, do not undertake, nor do they have any obligation, to provide updates or to revise any forward-looking statements. Risks factors which are likely to have a material effect on Nicox’s business are presented in the 3rd chapter of the ‘Document d’enregistrement universel, rapport financier annuel et rapport de gestion 2019’ filed with the French Autorité des Marchés Financiers (AMF) on March 6, 2020 which are available on Nicox’s website (www.nicox.com).Nicox S.A.Drakkar 2 Bât D, 2405 route des Dolines CS 10313, Sophia Antipolis 06560 Valbonne, France T +33 (0)4 97 24 53 00 F +33 (0)4 97 24 53 99 Attachment EN_NCX 470 EUFormulation Patent Approval PR_20201029_F1 (1)
Sanoma Corporation, Interim Report, 29 October 2020 at 8:30 EET Sanoma’s Interim Report January-September 2020: Strong performance: Net sales grew and operational EBIT improved This release is a summary of Sanoma’s Q3 2020 Interim Report. The complete report is attached to this release and is also available at sanoma.com. Q3 2020 The Group’s net sales grew to EUR 401 million (2019: 285). Net sales of Learning grew mainly driven by acquisitions, in particular Iddink, and strong comparable net sales development during the high season especially in Poland. Net sales of Media Finland declined slightly. The Group’s comparable net sales development was -2% (2019: -1%).Operational EBIT excl. PPA improved to EUR 111 million (2019: 78) driven by acquisitions, in particular Iddink, as well as good comparable earnings development in Learning.EBIT was EUR 267 million (2019: 69). Items affecting comparability (IACs) totalled EUR 161 million (2019: -7) and included a capital gain of EUR 165 million related to the divestment of Oikotie. PPA amortisations were EUR 6 million (2019: 2).Operational EPS was EUR 0.50 (2019: 0.32) and EUR 0.50 (2019: 0.39) including discontinued operations.EPS was EUR 1.49 (2019: 0.29) and EUR 1.50 (2019: 0.35) including discontinued operations.On 28 October, the Board of Directors decided the record date and payment date of the second dividend instalment of EUR 0.25 per share. The dividend record date is 30 October and the payment date 6 November.On 19 October, Sanoma announced the acquisition of Santillana Spain with an enterprise value of EUR 465 million.On 8 October, Sanoma published an updated Outlook for 2020.On 16 July, Sanoma announced and completed the divestment of Oikotie to Schibsted with an enterprise value of EUR 185 million. Q1-Q3 2020 The Group’s net sales grew to EUR 835 million (2019: 708) mainly as a result of the Iddink acquisition, while net sales development of Media Finland was adversely impacted by the coronavirus pandemic. The Group’s comparable net sales development was -6% (2019: -1%).Operational EBIT excl. PPA grew to EUR 156 million (2019: 133). Earnings improved in Learning mainly as a result of the Iddink acquisition, while declining in Media Finland.EBIT was EUR 291 million (2019: 112). IACs totalled EUR 151 million (2019: -15) and included a capital gain of EUR 165 million related to the divestment of Oikotie. PPA amortisations were EUR 17 million (2019: 6).Operational EPS was EUR 0.64 (2019: 0.51) and EUR 0.73 (2019: 0.73) including discontinued operations.EPS was EUR 1.59 (2019: 0.44) and EUR 1.67 (2019: 0.71) including discontinued operations.On 30 April, Sanoma completed the acquisition of Alma Media’s regional news media business in Finland with an enterprise value of EUR 115 million. The acquisition was announced on 11 February 2020.On 20 April, Sanoma completed the divestment of Sanoma Media Netherlands to DPG Media with an enterprise value of EUR 460 million. Outlook for 2020 (published on 8 October) In 2020, Sanoma expects that the Group’s reported net sales will be around EUR 1,050 million (2019: 913). The Group’s operational EBIT margin excluding PPA is expected to be around 14% (2019: 14.8%), which in this case means the margin is not expected to be below 13% or above 15%. The outlook is based on the assumption that the advertising market decline in Finland in 2020 will be between 15-20% compared to 2019. President and CEO Susan Duinhoven: ”Our business and financial performance was strong during the important third quarter, which is typically the high season of the learning business. Based on the improving performance we have experienced in the last months of the coronavirus pandemic, and the prospects that we see for the final quarter of the year, we were able to give an updated outlook for 2020 on 8 October. We expect reported net sales to be around EUR 1,050 million (2019: 913) and operational EBIT margin excl. PPA around 14% (2019: 14.8%), which is a relatively small adjustment compared to the around 15% margin outlook that we had given in the beginning of this year. I am very proud of and grateful for the agile, supportive and inventive way in which our teams across Sanoma have approached the exceptional challenge that the pandemic put to our customers and our business. Thanks to their hard work, our performance has been much stronger than we would have dared to hope for when the pandemic started, and we now have a good outlook for the full year. We have also progressed well on our strategic objectives. In July‒September, we again saw an increase in subscription sales for both news and entertainment. The number of subscriptions for the largest daily newspaper, Helsingin Sanomat, is now above 400,000, of which about one third are digital-only. Also, our VOD service Ruutu+ has reached more than 300,000 subscriptions. During the past months, our teams have been working hard with the integration of the regional news media business acquired at the end of April, and are proceeding as planned. After summer, the recovery in advertising sales, which were significantly impacted by the coronavirus pandemic in March-July, has accelerated and exceeded our earlier expectations. That being said, we believe that there continues to be significant uncertainty related to advertising demand in the coming months, which will most likely be seen next year as well. The third quarter is always an important one in the learning business, and this year we saw solid growth driven by curriculum renewals especially in Poland and to some extent also in the Netherlands. Teams across Sanoma Learning performed very well during this busy time of the year and under the continuing exceptional circumstances caused by the coronavirus pandemic especially in our distribution operations. Iddink was, for the first time, part of Sanoma Learning during the high season, and its business performance and integration have proceeded well and according to our plans. Last week, we announced the next major step on our learning growth path: the acquisition of Santillana Spain, a leading provider of learning content in Spain. This acquisition is a strong next step in Sanoma’s strategic transformation into a growing European learning company and a leading cross-media company in Finland. It will grow Learning’s share of our earnings (operational EBIT excl. PPA) from 55% to over 65% and further strengthen our cash flow generation capabilities. We see great potential in the Spanish market, related not only to the upcoming curriculum renewal expected to be implemented in 2022–23, but also to increasing digitalisation, which has been further stimulated by growing need for remote learning tools during the coronavirus pandemic. We are planning to use our experience in highly digitalised countries and our digital platforms developed over the past 10 years to accelerate the growth of Santillana Spain over time. The acquisition of Santillana Spain will not have an impact on our long-term strategy, financial targets or dividend policy. We want to continue our current growth strategy: aiming to grow our European learning business further through M&A in current operating countries or new markets, and to strengthen our media business in Finland in its chosen core businesses: news & feature, entertainment and B2B marketing solutions.” Key indicators for continuing operations EUR millionQ3 2020Q3 2019ChangeQ1-Q3 2020Q1-Q3 2019Change FY 2019Net sales401.1284.941%835.1707.718%913.3Operational EBIT excl. PPA 1)111.377.544%156.4133.118%135.2 Margin 1)27.7%27.2% 18.7%18.8% 14.8%EBIT266.569.1286%291.2112.3159%102.1Result for the period243.948.5402%260.273.2255%63.1 Operational EPS, EUR 2)0.500.3257%0.640.5124%0.49EPS, EUR1.490.29417%1.590.44261%0.38 Average number of employees (FTE) 4,2253,48521%3,567Number of employees at the end of the period (FTE) 4,2173,74013%3,953 Key indicators incl. continuing and discontinued operations 3) EUR millionQ3 2020Q3 2019ChangeQ1-Q3 2020Q1-Q3 2019Change FY 2019Result for the period244.359.2313%274.0116.6135%13.3 Free cash flow129.697.533%64.556.314%131.3 Equity ratio 48.5%33.8% 30.5%Net debt 234.2797.8-71%794.7Net debt / Adj. EBITDA 1.02.8-64%2.7 Operational EPS, EUR 2)0.500.3930%0.730.731%0.80EPS, EUR1.500.35323%1.670.71137%0.07Free cash flow per share, EUR0.790.6033%0.400.3514%0.81 1) Excluding IACs and purchase price allocation amortisations (PPAs)2) Excluding IACs3) In 2020 and 2019, discontinued operations include Sanoma Media Netherlands and certain minor subsidiaries acquired in 2019 and planned to be divested in the future. In Q1-Q3 2020, result of discontinued operations includes a capital loss of EUR 2 million (2019: 105) related to the divestment costs of Media Netherlands. Analyst and investor conference An analyst and investor webcast and teleconference will be held in English by the President and CEO Susan Duinhoven and CFO and COO Markus Holm at 11:00. The live webcast can be followed via https://sanoma.videosync.fi/2020-q3-results. To ask questions by phone during the live webcast, please join in 5–10 minutes prior to the starting time by dialing one of the following numbers: Finland: +358 9 8171 0310 Sweden: +46 8 5664 2651 United Kingdom: +44 33 3300 0804 United States: +1 631 913 1422 Confirmation code for the call is 58838770#. An on-demand replay of the webcast will be available shortly after the conference at www.sanoma.com/investors. Interview opportunities for media by Teams or by phone are available after the conference. Media representatives are asked to book interviews via Communications Director Marcus Wiklund, firstname.lastname@example.org. Additional information Kaisa Uurasmaa, Head of Investor Relations and CSR, tel. +358 40 560 5601 About Sanoma Sanoma is an innovative and agile learning and media company impacting the lives of millions every day. Our learning products and services enable teachers to develop the talents of every child to reach their full potential. We offer printed and digital course materials as well as digital learning and teaching platforms for primary, secondary and vocational education, and want to grow our business across Europe. Our Finnish media provide independent journalism and engaging entertainment also for generations to come. Our unique cross-media position offers the widest reach and tailored marketing solutions for our business partners. Today, we operate in eleven European countries and employ close to 4,500 professionals. In 2019, our net sales totalled 900m€ and our operational EBIT margin excl. PPA was 14.8%. Sanoma shares are listed on Nasdaq Helsinki. More information is available at www.sanoma.com. Attachment Sanoma Q3 2020 Interim Report
TELESTE CORPORATION INTERIM REPORT 29 OCTOBER 2020 AT 8:30 EET TELESTE CORPORATION INTERIM REPORT 1 JANUARY TO 30 SEPTEMBER 2020 NET SALES AND RESULT DECREASED DUE TO THE COVID-19 PANDEMIC AND THE TECHNOLOGICAL TRANSFORMATION OF ACCESS NETWORKS, PROGRESS MADE WITH THE CABLEWAY DIVESTMENT The income statement figures presented in this interim report only include continuing operations, except where otherwise noted. The figures in the statement of financial position and the cash flow statement include both continuing and discontinued operations. July-September 2020, continuing operations - Net sales amounted to EUR 35.7 (40.2) million, a decrease of 11.3% - Adjusted operating result stood at EUR 2.2 (3.1) million, a decrease of 27.9% - Operating result amounted to EUR 2.2 (3.1) million, a decrease of 27.9% - Earnings per share were EUR 0.09 (0.14), a decrease of 33,0% - Earnings per share including discontinued operations amounted to EUR -0.38 (0.14), a decrease of 366%- Cash flow from operations, including discontinued operations, was EUR -2.8 (0.3) million, a decrease of 901% - Orders received totalled EUR 29.8 (31.5) million, a decrease of 5.4% - Order backlog at period-end totalled EUR 73.1 (67.5) million, an increase of 8.4% January-September 2020, continuing operations - Net sales amounted to EUR 105.8 (123.8) million, a decrease of 14.5% - Adjusted operating result stood at EUR 3.8 (7.1) million, a decrease of 46.4% - Operating result amounted to EUR 3.2 (-0.2) million, with the figure for the comparison period including losses and a provision totalling EUR 7.3 million arising from a crime against a foreign subsidiary - Earnings per share were EUR 0.10 (-0.11) - Earnings per share including discontinued operations amounted to EUR -0.57 (-0.13)- Cash flow from operations was EUR 8.5 (-3.8) million - Orders received totalled EUR 105.7 (120.2) million, a decrease of 12.1% Outlook for 2020 Due to the COVID-19 pandemic, many countries in Teleste's main market area have imposed restrictions effecting Teleste’s customers’ and company’s own operations. At present, it is difficult to estimate the extent of the negative impact of the pandemic on Teleste's net sales and operating result for the financial period 2020. We estimate the company’s comparable net sales and comparable adjusted operating result of continuing operations for 2020 will remain below the 2019 level. Comments by CEO Jukka Rinnevaara: “The net sales and operating result for the third quarter decreased year-on-year but grew compared to the preceding quarter. Orders received decreased year-on-year. The order backlog at the end of September was nevertheless at a higher level than a year ago. The key themes of the past quarter were the recovery from the first wave of the COVID-19 pandemic, the continued technological transformation of cable networks and the divestment project pertaining to the services business in Germany. Orders received by Video and Broadband Solutions decreased year-on-year in the third quarter mainly in video security and information solutions, with customers in this area refraining from making purchase decisions on significant new projects. The orders received in the access network products business also remained at a modest level as cable operators postponed their network updates due to the COVID-19 pandemic and the ongoing technological transformation. The order backlog for passenger information solutions for the remainder of the year is at a high level, but the COVID-19 pandemic may delay deliveries. Net sales decreased year-on-year particularly in access network products due to the COVID-19 pandemic and as operators prepared for the deployment of distributed access architecture. As the net sales of HFC products declined, we we had to continue to pursue cost savings in various functions. The decline in the demand for access network products affects the entire industry and we estimate that we have not lost market share during the pandemic and the technological transformation of access architecture. New distributed access architecture products are currently being tested together with customers in Europe and the USA, but the COVID-19 pandemic is slowing down the testing process. The Video and Broadband Solutions business area's operating result decreased year-on-year but grew compared to the preceding quarter. The net sales of continuing operations in the Network Services business area declined in England, where the focus was on high-added-value services, with lower-margin project services having been scaled back in the final quarter of last year. Net sales also declined in Belgium, where we discontinued the provision of loss-making field services. These changes saw profitability rise to a good level and improve substantially year-on-year. The situation concerning the services of our continuing operations returned to normal, and the COVID-19 pandemic did not have significant financial impacts in the third quarter. In relation to the change in strategy announced in May, we progressed according to plan with the divestment of our services business in Germany. We signed an agreement on 2 October 2020 on selling the services business in Germany to Circet Deutschland GmbH. The transaction concerns the Germany-based Cableway companies, whose services business has been classified by Teleste as an asset held for sale pursuant to IFRS 5 (“Non-current assets held for sale and discontinued operations”) and reported as a discontinued operation in accordance with the standard starting from the first interim report of 2020. The closing is subject to the approval of the Federal Cartel Office in Germany. We estimate the closing to take place during the fourth quarter of 2020. When completed, the transaction will enhance Teleste’s capacity to invest in the growth areas of the technology and product business and improve the Group’s financial position.” Group Operations, July-September 2020, continuing operations Key figures7-9/20207-9/2019ChangeNet sales, EUR million35.740.2-11.3%Adjusted EBIT, EUR million 1)2.23.1-27.9%Adjusted EBIT, % 1)6.2%7.7% EBIT, EUR million2.23.1-27.9%EBIT, %6.2%7.7% Result for the period, EUR million1.72.5-32.9%Result for the period, EUR million 2)-7.02.6-367.7%Earnings per share, EUR0.090.14-33.0%Earnings per share, EUR 2)-0.380.14-365.5%Cash flow from operations, EUR million 2)-2.80.3-900.8%Orders received, EUR million29.831.5-5.4% 1) An alternative performance measure defined in the tables section of the report. 2) Including discontinued operations Orders received by the Group in the third quarter totalled EUR 29.8 (31.5) million, a decrease of 5.4% year-on-year. Orders decreased in Video and Broadband Solutions as customers refrained from making purchase decisions on significant new projects and in Network Services due to the Group focusing on high-added-value design services. The order backlog totalled EUR 73.1 (67.5) million, an increase of 8.4% compared with the end of the reference period. The order backlog grew in the passenger information solutions of Video and Broadband Solutions. Net sales were EUR 35.7 (40.2) million, a decrease of 11.3% year-on-year. Net sales declined in Video and Broadband Solutions due to the technological transformation of distributed access architecture and the COVID-19 pandemic and in Network Services as the Group focused on high-added-value design services and simultaneously scaled down lower-margin project services. Expenses for material and manufacturing services decreased by 12.3% to EUR 17.5 (20.0) million. Personnel expenses decreased by 0.8% and amounted to EUR 10.3 (10.3) million. Other operating expenses decreased by 32.0% to EUR 3.9 (5.7) million. Depreciation and amortisation amounted to EUR 1.9 (1.7) million, an increase of 12.9%. The adjusted operating result decreased by 27.9% to EUR 2.2 (3.1) million, representing 6.2% (7.7%) of net sales. EBIT decreased by 27.9% to EUR 2.2 (3.1) million, representing 6.2% (7.7%) of net sales. Net financial items were EUR -0.2 (0.2) million. Earnings per share were EUR 0.09 (0.14), a decrease of 33.0% year-on-year. Non-current assets held for sale were measured at the estimated sales price less the estimated costs of completing the transaction in accordance with an agreement signed on 2 October 2020. The remeasurement led to impairment of EUR 7.7 million being recognised in the third quarter. Cash flow from operations was EUR -2.8 (0.3) million. Cash flow from operations decreased due to the growth of net working capital. Net working capital was increased by the decrease of advance payments received and the repayment of the COVID-19 relief received in the second quarter. Group Operations, January-September 2020, continuing operations Key figures1-9/20201-9/2019Change1-12/2019Net sales, EUR million105.8123.8-14.5%165.3Adjusted EBIT, EUR million 1)3.87.1-46.4%8.8Adjusted EBIT, % 1)3.6%5.7% 5.3%EBIT, EUR million3.2-0.2 1.9EBIT, %3.1%-0.2% 1.1%Result for the period, EUR million1.9-1.9 -0.3Result for the period, EUR million 2)-10.4-2.3 -1.7Earnings per share, EUR0.10-0.11 -0.02Earnings per share, EUR 2)-0.57-0.13 -0.07Cash flow from operations, EUR million 2)8.5-3.8 4.1Net gearing, % 2)33.5%39.6% 34.1%Equity ratio, % 2)44.7%47.4% 49.5%Orders received, EUR million105.7120.2-12.1%167.5Order backlog, EUR million73.167.5+8.4%73.2Personnel at period-end862888-2.9%867 1) An alternative performance measure defined in the tables section of the report. 2) Including discontinued operations Orders received by the Group decreased by 12.1% to EUR 105.7 (120.2) million. Orders received decreased in Video and Broadband Solutions and in Network Services. Net sales decreased by 14.5% to EUR 105.8 (123.8) million. Net sales declined in both business areas due to the COVID-19 pandemic and in Video and Broadband Solutions due to the technological transformation of distributed access architecture and in Network Services as the Group focused on high-added-value design services and simultaneously scaled down lower-margin project services. Expenses for material and manufacturing services decreased by 16.3% to EUR 52.2 (62.4) million. Personnel expenses amounted to EUR 33.1 (33.9) million, down by 2.3%. Other operating expenses amounted to EUR 13.1 (24.3) million. Other operating expenses in the comparison period included a provision totalling EUR 7.3 million recognised in relation to the loss of assets due to a crime committed against a foreign subsidiary and the handling of the case. Depreciation and amortisation amounted to EUR 5.3 (5.0) million, an increase of 5.1%. The adjusted operating result decreased by 46.4% to EUR 3.8 (7.1) million, representing 3.6% (5.7%) of net sales. The operating result was EUR 3.2 (-0.2) million, or 3.1% (-0.2%) of net sales. Net financial expenses were EUR 0.5 (0.0) million and direct taxes amounted to EUR 0.9 (1.8) million. Earnings per share were EUR 0.10 (-0.11). Non-current assets held for sale were measured at the estimated sales price less the estimated costs of completing the transaction in accordance with an agreement signed on 2 October 2020. The remeasurement led to impairment of EUR 7.7 million being recognised in the third quarter. Cash flow from operations, including discontinued operations, was EUR 8.5 (-3.8) million. Cash flow from operations increased due to the release of working capital. Net working capital declined due to a decrease in advance payments invoiced for project deliveries and lower trade receivables. The Group also improved its liquidity by delaying the payment of taxes and employer contributions as well as taking advantage of other COVID-19 relief offered by the authorities in the second quarter. Video and Broadband Solutions July-September 2020 Key figures (EUR 1,000)7-9/20207-9/2019ChangeOrders received24,65625,864-4.7%Net sales30,59034,641-11.7%EBIT1,7543,013-41.8%EBIT, %5.7%8.7% Orders received totalled EUR 24.7 (25.9) million, a decrease of 4.7% on the reference period. Orders received decreased in passenger information solutions, with customers in this area refraining from making purchase decisions on significant new projects. The order backlog totalled EUR 73.1 (67.5) million, an increase of 8.4% compared with the end of the reference period. The order backlog increased in passenger information solutions. Of the order backlog, EUR 22.2 (21.9) million is associated with deliveries this year, EUR 28.9 (23.6) million with deliveries next year and the rest with deliveries after 2021. Net sales decreased by 11.7% to EUR 30.6 (34.6) million. Net sales decreased particularly in access network products. EBIT decreased by 41.8% to EUR 1.8 (3.0) million, representing 5.7% (8.7%) of net sales. The decline in EBIT was attributable to lower net sales. R&D expenses in the business area amounted to EUR 2.6 (3.4) million, representing 8.4% (9.7%) of net sales. Product development projects were focused on distributed access architecture including solutions designed for the US market, situational awareness and video security solutions, passenger information systems and customer-specific projects. Capitalised R&D expenses amounted to EUR 0.8 (1.1) million. Depreciation on R&D expenses was EUR 0.9 (0.6) million. Video and Broadband Solutions January-September 2020 Key figures (EUR 1,000)1-9/20201-9/2019Change1-12/2019Orders received90,132101,648-11.3%143,455Net sales90,255105,209-14.2%141,351EBIT2,7706,789-59.2%8,056EBIT, %3.1%6.5% 5.7% Orders received totalled EUR 90.1 (101.6) million, a decrease of 11.3%. Orders received decreased both in access network products and in video security and information systems. Net sales decreased by 14.2% to EUR 90.3 (105.2) million. Net sales decreased particularly in access network products. Orders received and net sales were affected by operators' expectations regarding the transition to distributed access architecture technology as well as the COVID-19 pandemic. EBIT decreased by 59.2% to EUR 2.8 (6.8) million, representing 3.1% (6.5%) of net sales. The decline in EBIT was attributable to lower net sales. R&D expenses amounted to EUR 8.5 (9.8) million, representing 9.4% (9.3%) of net sales. Product development projects were focused on distributed access architecture including solutions designed for the US market, situational awareness and video security solutions, passenger information systems and customer-specific projects. Capitalised R&D expenses amounted to EUR 2.9 (3.1) million and depreciation on capitalised R&D expenses to EUR 2.3 (1.9) million. Network Services, July-September 2020, continuing operations Teleste has revised its strategy, according to which the company will focus on technology business operations and the services of higher added value supporting them. In accordance with the new strategy, Teleste will divest its extensive cable network field service operations in Germany to focus on higher-added-value services in the future. The services business of the Germany-based Cableway companies has been classified as an asset held for sale pursuant to IFRS 5 (“Non-current assets held for sale and discontinued operations”) and Teleste reports the business as a discontinued operation in accordance with the standard. The business classified as an asset held for sale has not been reported under the figures of the Network Services business area as of the beginning of the first quarter. Teleste will continue its higher-added-value services business in the UK, Switzerland, Finland, Poland and Belgium. Key figures (EUR 1,000)7-9/20207-9/2019ChangeOrders received5,1145,605-8.8%Net sales5,1145,605-8.8%EBIT46970+569.8%EBIT, %9.2%1.2% Orders received and net sales in the third quarter totalled EUR 5.1 (5.6) million, a decrease of 8.8% on the reference period. Net sales declined in England, where the focus was on high-added-value design services and the scaling down of lower-margin project services. Net sales also declined in Belgium, where we discontinued the provision of loss-making field services. EBIT was EUR 0.5 (0.1) million, an increase of 570% year-on-year. EBIT represented 9.2% (1.2%) of net sales. EBIT grew in England, where the focus was on high-added-value design services, and in Finland, where cost adjustments improved earnings. Network Services, January-September 2020, continuing operations Key figures (EUR 1,000)1-9/20201-9/2019Change1-12/2019Orders received15,52718,578-16.4%23,996Net sales15,52718,578-16.4%23,996EBIT1,021288+255.1%776EBIT, %6.6%1.5% 3.2% Orders received and net sales decreased by 16.4% year-on-year, amounting to EUR 15.5 (18.6) million. Net sales declined due to the restrictions imposed in response to the COVID-19 pandemic and in England, where the focus was on high-added-value design services and the scaling down of lower-margin project services. Net sales also declined in Belgium, where we discontinued the provision of loss-making field services. The restructuring costs associated with the operations in Belgium have been eliminated from adjusted EBIT only at the Group level. EBIT increased by 255% to EUR 1.0 (0.3) million, representing 6.6% (1.5%) of net sales. EBIT increased in England, Finland and Switzerland. The growth of EBIT was attributable to the focus on higher-added-value design services and cost adjustments. Discontinued operations The result of the operations classified as an asset held for sale pursuant to IFRS 5 (“Non-current assets held for sale and discontinued operations”) was EUR -8.8 (0.1) million in the third quarter, including impairment of EUR 7.7 million recognised on assets. The result of discontinued operations for January-September was EUR -12.3 (-0.4) million, including impairment of EUR 7.7 million recognised on assets. The assets of the business classified as an asset held for sale on the consolidated balance sheet amounted to EUR 14.7 million and the liabilities totalled EUR 13.4 million as of 30 September 2020. By divesting its Germany-based services business operations, Teleste seeks to safeguard its financial position and its ability to invest in technology and services business growth areas. Personnel and organisation January-September 2020 The Group's continuing operations employed an average of 857 (901) people during the review period. Of these, 655 (684) were employed by Video and Broadband Solutions and 202 (216) by Network Services. At the end of the review period, the Group's continuing operations employed 862 (888) people, of whom 642 (686) were employed by Video and Broadband Solutions and 220 (202) by Network Services. At the end of the review period, 47.1% (46.9%) of the employees were stationed abroad, and 3% of the Group’s employees were working outside Europe. Personnel expenses amounted to EUR 33.1 (33.9) million. Investments and product development in January-September 2020, including discontinued operations Investments by the Group totalled EUR 5.3 (8.8) million, representing 3.4% (5.0%) of net sales. Capitalised product development investments totalled EUR 2.9 (3.1) million, leases capitalised in accordance with IFRS 16 amounted to EUR 1.3 (2.8) million and other investments in tangible and intangible assets came to EUR 1.1 (2.8) million. Product development projects were focused on distributed access architecture including solutions designed for the US market, situational awareness and video security solutions, passenger information systems and customer-specific projects. Financing and capital structure January-September 2020, including discontinued operations Cash flow from operations was EUR 8.5 (-3.8) million. Cash flow from operations increased due to the release of working capital. Net working capital declined due to a decrease in advance payments invoiced for project deliveries and lower trade receivables. The Group also improved its liquidity by delaying the payment of taxes and employer contributions as well as taking advantage of other COVID-19 relief offered by the authorities in the second quarter. To strengthen its financing reserve, Teleste Corporation signed a new financing agreement on 10 August 2020 regarding the withdrawal of a loan of EUR 6.0 million. The loan has a maturity of 4 years and it will be repaid in fixed instalments in six-month intervals. Teleste Corporation has credit and loan facilities with a combined total value of EUR 56.0 million. The EUR 20.0 million credit facility will run until the end of August 2021 and includes a one-year extension option. The five-year loan facility of EUR 30.0 million will mature in August 2022. The loan is repaid in annual instalments of EUR 3.0 million. The remaining loan principal amounted to EUR 21.0 million on 30 September 2020. At the end of the period under review, the amount of unused binding credit facilities was EUR 20.0 (17.8) million. At period-end, the Group's interest-bearing debt stood at EUR 34.0 (35.9) million. The Group's equity ratio was 44.7% (47.4%) and net gearing ratio 33.5% (39.6%). Key risks faced by the business areas Founded in 1954, Teleste is a technology and services company consisting of two business areas: Video and Broadband Solutions and Network Services. Europe is the main market and business area, but the company aims to expand its business, particularly in North America. Teleste's customers include cable operators, public transport operators, train manufacturers and specified organisations in the public sector. In Video and Broadband Solutions, customer-specific and integrated deliveries of solutions create favourable conditions for growth. On the other hand, the allocation of resources to the deliveries and the technical implementation are demanding tasks, which is why there are also risks involved. Our operator customers' network investments vary according to the development of technology, customers' need to upgrade and their financial structure. End-to-end deliveries of video security and information solution systems may be large in size, setting high demands for the project quotation calculation and management and, consequently, involving risks. Increased competition created by the new service providers may undermine the cable operators' ability to invest. Correct technological choices, product development and their timing are vital to our success. Various technologies are used in our products and solutions, and the intellectual property rights associated with the application of these technologies can be interpreted in different ways by different parties. Such difficulties of interpretation may lead to costly investigations or court proceedings. Customers have very demanding requirements for the performance of products, their durability in challenging conditions and their compatibility with other components of integrated systems. Regardless of careful planning and quality assurance, complex products may fail in the customer's network and lead to expensive repair obligations. The consequences of natural phenomena and global disruptions, such as an epidemic, or accidents, such as a fire, may reduce the availability of components in the order-delivery chain of the electronics industry or suspend our own manufacturing operations. Customs levies imposed by major powers in the world economy and other trade war measures may have a negative effect on component supply chains and, in particular, the profitability of products exported to the United States. Expanding business operations to new markets is demanding. The Group’s investments in growth in the North American market will not necessarily lead to the desired results. Many competitors in the business area come from the United States, which is why the exchange rate of the euro against the US dollar has an effect on our competitiveness. In particular, the development of the exchange rates of the US dollar and the Chinese renminbi against the euro influences our product costs and result. The company hedges against short-term currency exposure by means of forward exchange contracts. Future treaties between the UK and the European Union could make deliveries to English customers more difficult. Net sales of Network Services come mainly from a small number of large European customers. Therefore, a significant change in the demand for our services by any one of them is reflected in the actual deliveries and profitability. The improvement of customer satisfaction and productivity requires efficient service process management, as well as innovative process, product and logistics solutions to ensure the quality and cost-efficiency of services. The smooth functioning of cable networks requires efficient technical management of the networks and suitable equipment solutions in accordance with contractual obligations. This, in turn, requires continuous development of the skills and knowledge of our personnel and subcontractors. In addition, the sufficiency and usage rates of our personnel and subcontractor network influence the company's delivery capacity and profitability. Subcontractors' costs may increase faster than it is possible for Teleste to increase the prices of its services to its own customers. In larger projects with overall responsibility, tender calculation and project management are complex tasks that involve risks. Severe weather conditions may affect our ability to deliver services. On 2 October 2020, Teleste signed an agreement on the sale of the Germany-based Cableway companies. Non-current assets held for sale were measured at the estimated sales price less the estimated costs of completing the transaction in accordance with the agreement. The remeasurement led to impairment of EUR 7.7 million being recognised in the third quarter. The final purchase price depends on the net working capital and net debt at the closing date. The closing is subject to the approval of the Federal Cartel Office in Germany. While the Group has sought to account for the factors that have a negative effect on the purchase price in measuring the value of the assets, the final purchase price and the closing of the transaction still involve risks. Teleste's strategy involves risks and uncertainties: new business opportunities may fail to be identified or successfully used. The business areas must take into account market movements, such as consolidations among our customers and competitors. Periods of technological transformation, such as operators migrating to distributed access architecture, may significantly change the competitive positions of the current suppliers and attract new competitors to the market. Intensified competition may decrease the prices of products and solutions faster than we are able to reduce our products' manufacturing and delivery costs. Various information systems are critical to the development, manufacture and supply of products to our customers. The maintenance of information systems and deployment of new systems involve risks that may affect our ability to deliver products and services. Information systems are also exposed to external threats and we strive to protect ourselves from these threats through technical solutions and by increasing the security competence of our personnel. Teleste Group may also be targeted by illegal activities and fraud attempts that could have a significant effect on the financial result. The Group strives to minimise these risks by continuing to develop good governance practices and increasing the security competence of its personnel. Recruiting and maintaining skilled personnel requires encouragement, development and recruitment efforts, which can fail. The COVID-19 pandemic presents risks to Teleste's supply chain, the company's own operating capacity, the operating capacity of customers and the demand for Teleste's products and services. Thus far, in response to the restrictive measures imposed by the authorities in various countries, operators have reduced or suspended their broadband network construction, while certain customers in passenger information solutions have been forced to close down their factories and delay projects. The effects of the pandemic on Teleste's supply chain and component availability have been limited. Our personnel and our in-house production activities have remained operational. The company initiated measures in the first quarter to ensure its liquidity and financial position. The COVID-19 pandemic had a negative impact on net sales and EBIT in the second and third quarters. If the stricter restrictions on movement in society imposed by the authorities in various countries were to remain in effect or be reintroduced, we expect that the negative impact on Teleste's net sales for the remainder of the year would be significant. The Board of Directors annually reviews essential business risks and their management. Risk management constitutes an integral part of the strategic and operational activities of the business areas. Risks are reported to the Audit Committee on a regular basis. In the period under review, no such legal proceedings or judicial procedures were pending that would have had any essential significance for the Group operation. Group structure The parent company has a branch office in the Netherlands and subsidiaries in 14 countries outside Finland. Shares and changes in share capital On 30 September 2020, Tianta Oy was the largest single shareholder with a holding of 23.4%. In the period under review, the lowest price of the company's share was EUR 3.51 (5.20) and the highest price was EUR 5.78 (6.80). The closing price on 30 September 2020 was EUR 3.94 (5.54). According to Euroclear Finland Ltd, the number of shareholders at the end of the period under review was 5,632 (5,508). Foreign and nominee-registered holdings accounted for 5.1% (6.6%) of the share capital. The value of Teleste's shares traded on Nasdaq Helsinki from 1 January to 30 September 2020 was EUR 8.1 (6.5) million. In the period under review, 1.8 (1.1) million Teleste shares were traded on the stock exchange. On 22 April 2020, Teleste Corporation's Board of Directors decided on a directed share issue without consideration, relating to the reward payment for the performance period 2017-2019 of Teleste Group's share-based incentive plan 2015. In the share issue, 22,402 Teleste Corporation shares held by the company were conveyed without consideration to the key employees participating in the share-based incentive plan in accordance with the terms and conditions of the plan. On 30 September 2020, the Group held 776,419 (798,821) of its own shares, all held by the parent company Teleste Corporation. At the end of the review period, the Group's holding of the total number of shares amounted to 4.1% (4.2%). On 30 September 2020, the company's registered share capital stood at EUR 6,966,932.80, divided into 18,985,588 shares. Valid authorisations at the end of the review period:- The Board of Directors may acquire 1,200,000 own shares of the company otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market organised by Nasdaq Helsinki at the market price of the time of the purchase.- The Board of Directors may decide on issuing new shares and/or transferring the company's own shares held by the company, so that the maximum total number of shares issued and/or transferred is 2,000,000. - The total number of new shares to subscribe for under the special rights granted by the company and own shares held by the company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the company.- These authorisations are valid until 21 October 2021. Decisions by the Annual General Meeting The Annual General Meeting (AGM) of Teleste Corporation held on 22 April 2020 adopted the financial statements and consolidated financial statements for 2019 and discharged the members of the Board of Directors and the CEO from liability for the financial period 2019. The AGM resolved to authorise the Board of Directors to resolve, at its discretion, on the distribution of a maximum of EUR 0.10 per share as dividend from the retained earnings and/or as repayment of capital from the fund for invested unrestricted equity in one or more instalments. The authorisation is valid until the opening of the next AGM. The company will announce each Board resolution on the distribution of funds separately and confirm the relevant record and payment dates in such announcements. The AGM decided that the Board of Directors shall consist of six members. The annual remuneration to be paid to the members of the Board of Directors were resolved on as follows: EUR 66,000 per year for the chairman and EUR 33,000 per year for each member. The annual remuneration of the Board member who acts as the chairman of the Audit Committee shall be EUR 49,000 per year. Of the annual remuneration to be paid to the Board members, 40% of the total gross remuneration amount will be used to purchase Teleste Corporation's shares for the Board members through trading on a regulated market organised by Nasdaq Helsinki Ltd and the rest will be paid in cash. In addition, EUR 400 per meeting shall be paid to the members of the Board of Directors' Audit Committee as a meeting fee. However, a separate meeting fee shall not be paid to the chairman of the Audit Committee. Jussi Himanen, Vesa Korpimies, Mirel Leino, Timo Luukkainen, Heikki Mäkijärvi and Kai Telanne were elected as members of Teleste Corporation's Board of Directors. In its organisational meeting held after the AGM on 22 April 2020, the Board of Directors elected Timo Luukkainen as its Chairman. Mirel Leino was elected chair of the Audit Committee, with Jussi Himanen and Vesa Korpimies as members. The AGM decided to choose one auditor for Teleste Corporation. The audit firm KPMG Oy Ab was chosen as the company's auditor. The auditor has appointed Petri Kettunen, APA, as the auditor in charge. The AGM decided to authorise the Board of Directors to decide on the purchase of the company's own shares in accordance with the proposal of the Board. According to the authorisation, the Board of Directors may acquire 1,200,000 own shares of the company otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market organised by Nasdaq Helsinki Ltd at the market price of the time of the purchase. The AGM decided to authorise the Board of Directors to decide on issuing new shares and/or transferring the company's own shares held by the company and/or granting special rights referred to in Chapter 10, Section 1 of the Limited Liability Companies Act, in accordance with the Board's proposal. The new shares may be issued and the company's own shares held by the company may be conveyed either against payment or for free. New shares may be issued and the company's own shares held by the company may be conveyed to the company's shareholders in proportion to their current shareholdings in the company, or by waiving the shareholder's pre-emption right, through a directed share issue if the company has a weighty financial reason to do so. The new shares may also be issued in a free share issue to the company itself. Under the authorisation, the Board of Directors has the right to decide on issuances of new shares and/or transferring the company's own shares held by the company, so that the maximum total number of shares issued and/or transferred is 2,000,000. The total number of new shares to subscribe for under the special rights granted by the company and own shares held by the company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the company. The authorisations are valid for eighteen (18) months from the resolution of the AGM. The authorisations override any previous authorisations to decide on issuances of new shares and on granting stock option rights or other special rights entitling to shares. The authorisations are valid for eighteen (18) months from theresolution of the AGM. The authorisations override any previous authorisations to decide on issuances of new shares and on granting stock option rights or other special rights entitling to shares. The AGM resolved, in accordance with the proposal of the Board of Directors, to establish a shareholders' nomination board that prepares matters concerning the appointment and remuneration of the Board of Directors. Further, the AGM adopted the charter of the nomination board according to the proposal of the Board of Directors. The AGM also approved the proposal by the Board of Directors for the remuneration policy of the governing bodies of the company. Events after the end of the review period On 2 October 2020, Teleste signed an agreement on selling the services business in Germany to Circet Deutschland GmbH. The transaction concerns the Germany-based Cableway companies, whose services business has been classified by Teleste as an asset held for sale pursuant to IFRS 5 (“Non-current assets held for sale and discontinued operations”) and reported as a discontinued operation in accordance with the standard starting from the first interim report of 2020. The preliminary net purchase price is EUR 8.0 million, which will be paid in cash at the closing. The final purchase price depends on the net working capital and net debt at the closing date. The closing is subject to the approval of the Federal Cartel Office in Germany. We estimate the closing to take place during the fourth quarter of 2020. The non-recurring loss arising from the transaction will significantly decrease the parent company’s equity, which is estimated to be EUR 27 million after the divestment. By divesting its services business in Germany, Teleste seeks safeguard its ability to invest in technology and product business growth areas as well as improve its financial position. Operating environment in 2020 The business objective of Video and Broadband Solutions is to maintain its strong market position in Europe and to strengthen this market position particularly in Northern America. The demand for broadband services by cable operators continues to grow. Household broadband traffic is estimated to grow at an annual rate of 30–40% in the next few years. Broadband traffic has increased sharply during the COVID-19 pandemic due to the growth of remote work and remote education and the higher consumption of streaming services. It is possible that part of the growth created by the pandemic will remain a permanent phenomenon, which could accelerate network investments when the restrictions imposed due to the pandemic are lifted. European cable operators have been able to competitively respond to the increasing demand by investing in DOCSIS 3.1 standard-compliant 1.2 GHz frequency range network upgrades during the past few years. Investments in the expansion of the traditional HFC network infrastructure frequency range continue, but with a lower volume than in the past few years. For years now, the cable industry, including Teleste, has been preparing for the next technology wave with which investment in cable network infrastructure can be competitively continued also in the years to come. Teleste will continue to invest in the development of expertise and new technology as well as customer projects. Operators' investments in distributed access architecture have been delayed compared with previous schedule estimates and the COVID-19 pandemic is likely to cause further delays, with field testing by operators having to be postponed . We estimate that operators' distributed access architecture deployment projects will commence in 2021. The transformation to distributed architecture provides Teleste with growth opportunities, but it also involves risks. Growth is enabled by the increased value of access network optical products as well as the possibility to use the technological transformation to expand business into the North American markets. Achieving interoperability with the cable network central systems is the most significant risk. The net sales of access network products will decrease year-on-year due to the COVID-19 pandemic and the technological transformation. Ensuring safety in city environments, the increase of public transport services and the increasing popularity of smart digital systems for a smoother life provide a foundation for growing business in the coming years. Public transport operators and other authorities must ensure smooth operation of services and infrastructure as well as the safety of people. Public transport information systems are continuously developing to be increasingly smart and real-time. Video security solutions are becoming increasingly smart, including pattern recognition and artificial intelligence. Furthermore, a need is arising in the market for comprehensive situational awareness systems that include management of other sensor-level data flows in addition to video image and automate operating processes in exceptional situations. In particular, the market growth of public transport information systems will be slowed down in the near future by the reduction in the use of public transport caused by the COVID-19 pandemic as well as delays in investments and projects. The market has declined in 2020, but it is expected to return to growth starting from 2021, provided that the pandemic does not lead to new negative movement in the market. Ensuring competitiveness requires Teleste to continuously make R&D investments in new intelligent solutions. In addition, it is necessary to improve the productivity and cost-efficiency of business. Teleste's market share in public transport information systems is expected to continue to grow in 2020. Characteristic for the business, a considerable proportion of deliveries will be distributed over several years. The COVID-19 pandemic has delayed projects and deliveries in 2020. For this reason, we estimate that the net sales of video security and information solutions in 2020 will be on par with the previous year, with a substantial proportion of net sales taking place in latter part of the year. However, this estimate involves uncertainty caused by the pandemic in the final months of the year. In the Network Services business area, operators' network investments are expected to also increase the demand for services in the long term. Teleste's aim is to focus on high-added-value services and increase the operational efficiency of the services business. In line with the new strategy, the company will divest its extensive field service operations in Germany. The services business in Germany has been classified as an asset held for sale and the company reports it as a discontinued operation in accordance with IFRS 5. On 2 October 2020, Teleste signed an agreement on selling the services business in Germany to Circet Deutschland GmbH. The closing of the transaction is subject to the approval of the Federal Cartel Office in Germany. In our continuing services business operations, we see growth opportunities particularly in network design services. Due to the COVID-19 pandemic, operator customers began to restrict upgrades on their networks starting from March. These restrictions continued in the second quarter but began to be gradually relaxed. Estimating the net sales for the remainder of the year involves uncertainty depending on the development of the pandemic. Outlook for 2020 Due to the COVID-19 pandemic, many countries in Teleste's main market area have imposed restrictions effecting Teleste’s customers’ and company’s own operations. At present, it is difficult to estimate the extent of the negative impact of the pandemic on Teleste's net sales and operating result for the financial period 2020. We estimate the company’s comparable net sales and comparable adjusted operating result of continuing operations for 2020 will remain below the 2019 level. 28 October 2020 Teleste Corporation Jukka Rinnevaara Board of Directors President and CEO This interim report has been compiled in compliance with IAS 34, as it is accepted within EU, using the recognition and valuation principles with those used in the Annual Report. Teleste has prepared this interim report applying the same accounting principles as those described in detail in its the consolidated financial statements except for the adoption of new standards and amendments effective as of January 1, 2020. The data stated in this report is unaudited. STATEMENT OF COMPREHENSIVE INCOME (tEUR)7-9/20207-9/2019Change %1-12/2019 Continuing operations Net Sales35,70440,246-11.3 %165,348 Other operating income64506-87.3 %2,210 Materials and services-17,516-19,961-12.3 %-83,340 Personnel expenses-10,268-10,347-0.8 %-46,049 Depreciation-1,896-1,67912.9 %-6,747 Other operating expenses-3,866-5,682-32.0 %-29,532Operating profit2,2223,083-27.9 %1,890 Financial income239392-39.0 %1,036 Financial expenses-435-179143.1 %-1,268Profit after financial items1,7383,296-47.3 %1,658 Profit before taxes2,0263,296-38.5 %1,658 Taxes-323-757-57.4 %-1,987 Net profit of continuing operations1,7042,539-32.9 %-328 Discontinued operations Net profit of discontinued operations-8,75093-9495.8 %-1,324 Net profit-7,0462,632-367.7 %-1,653 Attributable to: Equity holders of the parent-6,9972,632-365.8 %-1,327 Non-controlling interests-500n/a-327 -7,0462,632-367.7 %-1,653 Earnings per share for result of the year attributable to the equity holders of the parent(expressed in euro per share) Basic-0.380.14-365.5 %-0.07 Diluted-0.380.14-365.5 %-0.07 Earnings per share for result of the year of continuing operations attributable to the equity holders of the parent(expressed in euro per share) Basic0.090.14-33.0 %-0.02 Diluted0.090.14-33.0 %-0.02 Earnings per share for result of the year of discontinued operations attributable to the equity holders of the parent (expressed in euro per share) Basic-0.480.01-9484.3 %-0.07 Diluted-0.480.01-9484.3 %-0.07 Total comprehensive income for the period (tEUR)Net profit-7,0462,632-367.7 %-1,653Possible items with future net profit effectTranslation differences-284-20439.2 %299Cash flow hedges131115.8 %19Total comprehensive income for the period-7,3182,438-400.1 %-1,335 Attributable to: Equity holders of the parent-7,2552,417-400.2 %-1,019 Non-controlling interests-6321-394.4 %-316 -7,3182,438-400.1 %-1,335 Continuing operations1-9/20201-9/2019Change %1-12/2019 Net Sales105,782123,787-14.5 %165,348 Other operating income1,1111,612-31.1 %2,210 Materials and services-52,189-62,378-16.3 %-83,340 Personnel expenses-33,110-33,883-2.3 %-46,049 Depreciation-5,273-5,0165.1 %-6,747 Other operating expenses-13,079-24,345-46.3 %-29,532Operating profit3,242-223-1551.7 %1,890 Financial income668773-13.5 %1,036 Financial expenses-1,152-73955.9 %-1,268Profit after financial items2,757-190-1553.9 %1,658 Profit before taxes2,757-190-1553.9 %1,658 Taxes-871-1,752-50.3 %-1,987 Net profit of continuing operations1,886-1,942-197.1 %-328 Discontinued operations Net profit of discontinued operations-12,324-4012972.8 %-1,324 Net profit-10,437-2,343345.5 %-1,653 Attributable to: Equity holders of the parent-10,296-2,291349.4 %-1,327 Non-controlling interests-142-52171.4 %-327 -10,437-2,343345.5 %-1,653 Earnings per share for result of the year attributable to the equity holders of the parent(expressed in euro per share) Basic-0.57-0.13348.6 %-0.07 Diluted-0.57-0.13356.7 %-0.07 Earnings per share for result of the year of continuing operations attributable to the equity holders of the parent(expressed in euro per share) Basic0.10-0.11-197.0 %-0.02 Diluted0.10-0.11-197.0 %-0.02 Earnings per share for result of the year of discontinued operations attributable to the equity holders of the parent (expressed in euro per share) Basic-0.68-0.022967.2 %-0.07 Diluted-0.68-0.022968.2 %-0.07 Total comprehensive income for the period (tEUR)Net profit-10,437-2,343345.5 %-1,653Possible items with future net profit effectTranslation differences-1,154-133764.6 %299Cash flow hedges4641107.4 %19Total comprehensive income for the period-11,544-2,473366.9 %-1,335 Attributable to: Equity holders of the parent-11,387-2,446365.6 %-1,019 Non-controlling interests-158-27483.8 %-316 Equity holders of the parent-11,544-2,473366.9 %-1,335 STATEMENT OF FINANCIAL POSITION (tEUR)30/09/202030/09/2019Change %31/12/2019Non-current assets Intangible assets13,09212,1517.7 %12,907 Goodwill30,22130,469-0.8 %30,668 Property, plant, equipment9,58516,241-41.0 %17,038 Other non-current financial assets6275739.4 %645 Deferred tax asset1,4582,025-28.0 %1,924 54,98261,459-10.5 %63,182Current assets Inventories27 04440,546-33.3 %37,409 Trade and other receivables30,95046,410-33.3 %40,112 Tax Receivable, income tax7137011.7 %683 Cash and cash equivalents13,0747,59472.2 %8,249 71 78195,251-26.5 %86,452 Assets reported in discontinued operations14,698 Total assets141 462156,710-10.8 %149,634 Shareholder's equity and liabilities Share capital6,9676,9670.0 %6,967 Other equity54,41163,971-14.9 %65,606 Owners of the parent company61,37870,938-13.5 %72,573 Non-controlling interests403495-18.6 %206 EQUITY61,77971,433-13.5 %72,779 Non-current liabilities Deferred tax liability1,5351,815-15.4 %1,603 Non-current liabilities, interest-bearing26,42526,2450.7 %26,501 Non-current interest-free liabilities47077509.0 %79 Non-current provisions44226666.2 %93 28,87228,4031.7 %28,275Current liabilities Current interest-bearing liabilities5,4169,642-43.8 %6,531 Trade Payables and Other Liabilities29 61644,708-33.8 %39,238 Tax liability, income tax1,5291,23124.2 %1,283 Current provisions8551,294-33.9 %1,528 37 41656,874-37.3 %48,579 Liabilities reported in discontinued operations13,394 Total shareholder's equity and liabilities141 462156,710-10.8 %149,634 CONSOLIDATED CASH FLOW STATEMENT (tEUR)1-9/20201-9/2019Change % 1-12/2019Cash flows from operating activities Profit for the period-10,437-2,343345.5 %-1,653 Adjustments17,2849,13189.3 %12,405 Interest and other financial expenses and incomes-662-501230.6 %-380 Paid Taxes-980-1,573-37.7 %-1,725 Change in working capital3,247-8,961-136.2 %-4,589Cash flow from operating activities8,451-3,796-322.6 %4,058Cash flow from investing activities Purchase of tangible and intangible assets-4,127-5,998-31.2 %-8,749 Proceeds from sales of PPE85188-54.7 %475 Acquisition of subsidiaries, net of cash acquired00n/a-1,050 Purchase of investments0-1,050n/a-77Net cash used in investing activities-4,041-6,860-41.1 %-9,401Cash flow from financing activities Proceeds from borrowings6,4763,90066.1 %0 Payments of borrowings-3,569-1,007254.3 %-489 Payment of leasing liabilities-2,562-3,332-23.1 %-4,499 Dividends paid0-3,637-100.0 %-3,630 Changes in non-controlling interest 3540n/a0Net cash used in financing activities700-4,077-117.2 %-8,618 Change in cash Cash in the beginning8,24922,240-62.9 %22,240 Effect of currency changes-7788-187.7 %-28 Change 5,109-14,733-134.7 %-13,961 Cash at the end13,2827,59474.9 %8,249 KEY FIGURES1-9/20201-9/2019Change % 1-12/2019 Operating profit3,242-223-1551.7 %1,890 Earnings per share, EUR-0.57-0.13348.6 %-0.07 Earnings per share fully diluted, EUR-0.57-0.13356.7 %-0.07 Shareholders' equity per share, EUR3.253.93-17.2 %4.00 Return on equity-20.7 %-4.2 %392.0 %-2.2 % Return on capital employed-9.8 %0.3 %-3787.4 %1.6 % Equity ratio44.7 %47.4 %-5.8 %49.5 % Gearing33.5 %39.6 %-15.4 %34.1 % Investments, tEUR5,3188,782-39.4 %12,981 Investments % of net sales, including discontinued operations3.4 %5.0 %-31.4 %7.9 % Order backlog, tEUR73,10067,4568.4 %73,223 Personnel, average1,3051,370-4.7 %1,363 Personnel, average, continuing operations857901-4.9 %895 Number of shares (thousands)18,98618,9860.0 %18,986 including own shares Highest share price, EUR5.786.80-15.0 %6.80 Lowest share price, EUR3.515.20-32.5 %5.04 Average share price, EUR4.465.84-23.6 %5.72 Turnover, in million shares184.108.40.206 %1.6 Turnover, in MEUR8.16.524.1 %9.2 ALTERNATIVE PERFORMANCE MEASURES Adjusted operating profit, continuing operations3,7927,075-46.4 %8,832 Adjusted earning per share, EUR-0.110.28-140.2 %0.31 BRIDGE OF CALCULATION Operating profit, continuing operations3,242-223-1551.7 %1,890 Cost item caused by a crime07,298-100.0 %6,942 Business reorganization5500n/a0 Adjusted operating profit, continuing operations3,7927,075-46.4 %8,832 Net profit/loss to equity holder -10,296-2,291349.4 %-1,327 Outstanding shares during the quarter18,20918,1790.2 %18,181 Earnings per share, basic-0.57-0.13348.7 %-0.07 Net profit/loss to equity holder -10,296-2,291349.4 %-1,327 Cost item caused by a crime07,298-100.0 %6,942 Business reorganization5500n/a0 Discontinued operations, fair value adjustment7,7300n/a0 Outstanding shares during the quarter18,20918,1790.2 %18,181 Adjusted earnings per share, EUR-0.110.28-140.2 %0.31 Treasury shares Numberof shares % ofshares% ofvotes Possession of company's own shares 30.9.2020776,419 4.09%4.09% Contingent liabilities and pledged assets (tEUR) Leasing and rent liabilities8568095.9 %886 Derivative instruments (tEUR) Value of underlying forward contracts17,37921,885-20.6 %21,146 Market value of forward contracts-99451-121.9 %-48 Interest rate swap10,00010,0000.0 %10,000 Market value of interest rate swap-15-96-84.0 %-65 Taxes are computed on the basis of the tax on the profit for the period. OPERATING SEGMENTS (tEUR)1-9/20201-9/2019Change % 1-12/2019 Video and Broadband Solutions Orders received90,132101,648-11.3 %143,455 Net sales90,255105,209-14.2 %141,351 EBIT2,7706,789-59.2 %8,056 EBIT%3.1 %6.5 % 5.7 % Network Services Orders received15,52718,578-16.4 %23,996 Net sales15,52718,578-16.4 %23,996 EBIT1,021288255.1 %776 EBIT%6.6 %1.5 % 3.2 % Total Segments Orders received105,659120,226-12.1 %167,451 Net sales105,782123,787-14.5 %165,347 EBIT3,7927,077-46.4 %8,832 EBIT%3.6 %5.7 % 5.3 % Total Group, continuing operations Unallocated item-550-7,298-92.5 %-6,942 EBIT3,242-223-1551.7 %1,890 EBIT%3.1 %-0.2 % 1.1 % Financial items-48434-1539.4 %-232 Operating segments net profit before taxes2,757-190-1553.9 %1,658 Net sales by category1-9/20201-9/2019Change % 1-12/2019 Goods89,408102,501-12.8 %133,990 Service16,37421,286-23.1 %31,358 Total105,782123,787-14.5 %165,348 1-9/20201-9/2019Change % 1-12/2019 VBS Order backlog, tEUR73,10067,4568.4 %73,223 Information per quarter (tEUR)7-9/20 4-6/20 1-3/20 10-12/19 7-9/1910/2019-9/2020 Video and Broadband Solutions Orders received24,65624,97840,49841,80725,864131,939 Net sales30,59028,46231,20336,14234,641126,397 EBIT1,754-1911,2081,2663,0134,037 EBIT %5.7 %-0.7 %3.9 %3.5 %8.7 %3.2 % Network Services Orders received5,1145,0545,3595,4195,60520,946 Net sales5,1145,0545,3595,4195,60520,946 EBIT469337215488701,509 EBIT %9.2 %6.7 %4.0 %9.0 %1.2 %7.2 % Total segments Orders received29,77030,03245,85747,22631,469152,885 Net sales35,70433,51636,56241,56140,246147,343 EBIT2,2221471,4231,7543,0835,546 EBIT %6.2 %0.4 %3.9 %4.2 %7.7 %3.8 % Total group, continuing operations Unallocated item0-55003560-194 EBIT2,222-4041,4232,1103,0835,352 EBIT %6.2 %-1.2 %3.9 %5.1 %7.7 %3.6 % Consolidated statement of changes in equity,1000 eurosAttributable to equity holders of the parent (tEUR)AShare capitalBShare premiumCTranslation differencesDRetained earningsEInvested free capitalFOther fundsGOwners of the parent companyHNon-controlling interestsITotal equity ABCDEFGHIShareholder's equity 1.1.20206,9671,504-1,59462,6163,140-6272,57320672,779New standards and other changes -176 -176 -176Total comprehensive income for the period -10,296 -10,296-142-10,437Equity-settled share-based payments 370 370 370Translation differences -295-843 -1,138-16-1,154Cash flow hedges 4646 46Changes of non-controlling interests without change in control 354354Shareholder's equity 30.9.20206,9671,504-1,88951,6713,140-1561,37740361,779 Shareholder's equity 1.1.20196,9671,504-1,57066,6913,140-9276,64052277,162New standards and other changes 0 000Total comprehensive income for the period -2,291 -2,291-52-2,343Dividend distribution -3,637 -3,6370-3,637 Equity-settled share-based payments 370 3700370Translation differences -118-32 -14925-124Cash flow hedges 4404Shareholder's equity 30.9.20196,9671,504-1,68761,1023,140-8870,93849571,433 CALCULATION OF KEY FIGURES Return on equity:Profit/loss for the financial period ------------------------------ * 100 Shareholders’ equity (average)Return on capital employed:Profit/loss for the period after financial items + financing charges ------------------------------ * 100 Total assets - non-interest-bearing liabilities (average)Equity ratio:Shareholders' equity ----------------------------- * 100 Total assets - advances receivedGearing:Interest bearing liabilities - cash in hand and in bank - interest bearing assets ----------------------------- * 100 Shareholders' equity Earnings per share:Profit for the period attributable to equity holder of the parent ---------------------------------------------- Weighted average number of ordinary shares outstanding during the periodEarnings per share, diluted:Profit for the period attributable to equity holder of the parent (diluted) ----------------------------------------------- Average number of shares - own shares + number of options at the period-end ALTERNATIVE PERFORMANCE MEASURES Effective from the beginning of 2019, Teleste has started to report non-IFRS alternative performance measures. The calculation of the alternative performance measures does not take into account income or expense items affecting comparability that are non-recurring or infrequently occurring and not part of the ordinary course of business. The purpose of presenting the alternative performance measures is to improve comparability, and they do not replace the performance measures and key figures presented in accordance with IFRS. The alternative performance measures reported by the Group are adjusted operating result and adjusted earnings per share. Adjusted operating result and adjusted earnings per share exclude material items affecting comparability that are not part of the ordinary course of business. The adjusted items are recognised in the income statement within the corresponding income or expense group. Adjusted operating profitOperating profit is adjusted with items which are non-recurring or infrequently. Adjusted earnings per share:Adjusted Profit for the period attributable to equity holder of the parent ---------------------------------------------- Weighted average number of ordinary shares outstanding during the period Major shareholders, as sorted by number of shares - September 30, 2020 Number of shares% of sharesTianta Oy4,430,76023.4Mandatum Life Insurance Company Limited1,683,9008.9Ilmarinen Mutual Pension Insurance Company899,4754.7Kaleva Mutual Insurance Company824,6414.3Teleste Oyj776,4194.1Varma Mutual Pension Insurance Company521,1502.8Mariatorp Oy510,0102.7The State Pension Fund500,0002.6Wipunen varainhallinta Oy425,0002.2OP-Finland Small Firms Fund250,0531.3 Shareholders by sector September 30, 2020Nbr. of shareholders% of OwnersShares% of sharesHouseholds5,30094.15,019,91826.4Public sector institutions30.11,920,62510.1Financial and insurance institutions230.44,206,71122.2Corporations2524.57,718,62240.7Non-profit institutions 200.443,9180.2Foreign340.675,7940.4 Total5,632100.018,985,588100.0Of which nominee registered110.2888,4744.7 Major shareholders by distribution of shares September 30, 2020 Number of sharesNbr. of shareholders% of shareholdersNbr. of shares% of shares1-1001,59128.390,8330.5101-5002,28040.5615,2453.2501-1,00080014.2638,5733.41,001-5,00076513.61,698,7989.05,001-10,000861.5601,8303.210,001-50,000811.41,610,4718.550,001-100,00060.1425,3952.2100,001-500,000150.32,948,88615.5500,001-& above80.110,355,55754.5 Total5,632100.018,985,588100.0of which nominee registered110.2888,4744.7 ADDITIONAL INFORMATION: CEO Jukka Rinnevaara, phone +358 2 2605 611 DISTRIBUTION: Nasdaq Helsinki Main Media www.teleste.com Attachment Teleste Q3 2020 EN
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Thursday briefing: England’s south warned over case rises. Country in ‘critical stage’, says Imperial College study … Nigel Farage stumps for Trump … Cate Blanchett on Covid and community
A teenage Hong Kong democracy activist was charged on Thursday with secession, the first public political figure to be prosecuted under a sweeping new national security law Beijing imposed on the city.
Kyocera Corporation announced its consolidated financial results for the first half of fiscal year 2021.
A dozen Queensland schools evacuated after receiving bomb threats. Thirty schools in NSW were evacuated earlier this week after threats were emailed from eastern Europe