Ponsse Oyj
Ponsse’s Interim Report for 1 January – 31 March 2023 (Cision)

2023-04-25 08:00

Ponsse Plc, Stock Exchange Release, 25 April 2023, 9:00 a.m.


January-March (continuing operations):
– Net sales amounted to EUR 201.7 (156.1) million
– Operating profit totalled EUR 16.6 (9.0) million, equalling 8.2 (5.7) per cent of net sales
– Net result was EUR 14.0 (8.0) million
– Earnings per share were EUR 0.50 (0.29)
– Order books stood at EUR 336.9 (356.2) million at the end of period under review

– Cash flow from business operations was EUR 2.4 (-24.2) million (continuing and discontinued operations)
– Equity ratio was 56.8 (61.2) per cent at the end of period under review (continuing and discontinued operations)

– Ponsse has classified the Russian operations subject to trade as assets held for sale and reported them as discontinued operations. Unless otherwise specified, the figures presented in this interim report refer to continuing operations. The balance sheet has not been adjusted for the comparison period. The cash flow statement has not been adjusted.

– The company’s euro-denominated operating profit in 2023 is expected to be slightly higher than the operating profit of its continuing operations in 2022 (EUR 46.6 million).


PRESIDENT AND CEO JUHO NUMMELA:
The forest machine market functioned well during the first quarter. Demand for PONSSE forest machines picked up in the middle of the period under review, and the order intake totalled roughly EUR 185 million. At the end of the period, the company’s order books stood at EUR 336.9 (356.2) million.

Ponsse showed excellent growth during the first quarter. Our net sales increased by approximately 29 per cent to EUR 201.7 (156.1) million. The fastest-growing business areas were new machine sales, maintenance services, and our technology company Epec. Our customers’ good business situation enabled our maintenance services to grow. Demand for used machines was also high. Epec experienced a strong market situation and a high demand for new products.

New machines were delivered to our customers at an accelerating pace as the availability of parts improved, and Ponsse was able to find solutions for bottlenecks in the supplier network. The company’s profitability improved driven by the increased machine volume despite extended inflation and development activities aimed to improve profitability. Our operating profit developed in a more positive direction, and our relative profitability was 8.2 (5.7) per cent. We were able to cut our operating costs so that costs grew less than our net sales. We have actively sought solutions with our customers for the operational challenges of Ponsse Latin America, Ltda., Ponsse’s subsidiary in Brazil. Full service agreements, which led to write-downs at the end of last year, are moving in the correct direction as a result of active development. This work still continues.

Cash flow during the period under review was EUR 2.4 (-24.2) million. Its increase was driven by the shorter turnover of new machine stocks after the availability of parts improved. Part of our capital is still temporarily tied to incomplete products and raw material stocks which increased our working capital. The inventory turnover and level of used machines remained high. The company’s solvency has remained at a very good level.

Despite the market uncertainty, Ponsse invests significantly in developing the company. Investments are made in the development of new products and technologies, the Group’s information systems and digital services. Epec’s factory investment is proceeding as planned, and the new factory is expected to be deployed during the second half of this year.


NET SALES

Consolidated net sales for the period under review amounted to EUR 201.7 (156.1) million, which is 29.2 per cent more than in the comparison period. International business operations accounted for 75.9 (74.3) per cent of net sales.

Net sales were regionally distributed as follows: Northern Europe 42.4 (42.9) per cent, Central and Southern Europe 21.3 (23.4) per cent, North and South America 33.5 (30.2) per cent and other countries 2.8 (3.6) per cent.

 

 

1-3/23

1-3/22

 

Net sales from continuing operations

201,729

156,125

 

Net sales from discontinued operations

1,535

17,553

 

Net sales total

 

203,264

173,678

 



PROFIT PERFORMANCE

The operating profit amounted to EUR 16.6 (9.0) million. The operating profit equalled 8.2 (5.7) per cent of net sales for the period under review.

 

 

1-3/23

1-3/22

 

Operating profit from continuing operations

16,619

8,959

 

Operating profit from discontinued operations

558

3,539

 

Operating profit total

 

17,177

12,498

 


Consolidated return on capital employed (ROCE) stood at 17.6 (16.3) per cent.

Staff costs for the period totalled EUR 28.1 (25.4) million. Other operating expenses stood at EUR 19.5 (16.3) million. The net total of financial income and expenses amounted to EUR 0.6 (1.1) million. Exchange rate gains and losses due to currency rate fluctuations were recognised under financial items, having a net impact of EUR 1.4 (0.5) million. During the period under review, no interest swap appreciation was recognised through profit or loss. The parent company’s receivables from subsidiaries stood at EUR 81.8 (46.3) million net. Receivables from subsidiaries mainly consist of trade receivables.

Result for the period under review totalled EUR 14.0 (8.0) million. Diluted and undiluted earnings per share (EPS) came to EUR 0.50 (0.29).


STATEMENT OF FINANCIAL POSITION AND FINANCING ACTIVITIES

At the end of the period under review, the total consolidated statements of financial position amounted to EUR 592.8 (531.6) million. Inventories stood at EUR 239.1 (203.4) million. Trade receivables totalled EUR 63.5 (51.1) million, while cash and cash equivalents stood at EUR 61.7 (86.1) million. Group shareholders’ equity stood at EUR 334.3 (310.4) million and parent company shareholders’ equity (FAS) at EUR 245.8 (236.7) million. The amount of interest-bearing liabilities was EUR 93.8 (55.1) million. The company has ensured its liquidity by credit facility limits and commercial paper programs. Group's loans from financial institutions are non-collaretal bank loans without financial covenants. Consolidated net liabilities totalled EUR 28.2 (-31.1) million, and the debt-equity ratio (net gearing) was 8.4 (-10.0) per cent. The equity ratio stood at 56.8 (61.2) per cent at the end of the period under review.

Cash flow from operating activities amounted to EUR 2.4 (-24.2) million. Cash flow from investment activities came to EUR -9.6 (-10.5) million.


ORDER INTAKE AND ORDER BOOKS

Order intake for the period totalled EUR 184.9 (199.7) million, while period-end order books were valued at EUR 336.9 (356.2) million.


DISTRIBUTION NETWORK AND GROUP STRUCTURE

The subsidiaries included in the Ponsse Group are Ponsse AB, Sweden; Ponsse AS, Norway; Ponssé S.A.S., France; Ponsse UK Ltd, the United Kingdom; Ponsse Machines Ireland Ltd, Ireland, Ponsse North America, Inc., the United States; Ponsse Latin America Ltda, Brazil; Ponsse Uruguay S.A., Uruguay; OOO Ponsse, Russia; Ponsse Asia-Pacific Ltd, Hong Kong; Ponsse China Ltd, China; Ponsse Chile SpA, Chile; Ponsse Czech s.r.o., Czech Republic and Epec Oy, Finland.

The Group includes also the OOO Ponsse wholly owned property company Ponsse Centre in Russia, EAI PON1V Holding Oy in Finland and Sunit Oy in Finland, which is Ponsse Plc’s associate with a holding of 34 per cent.

In its release issued on 28 June 2022, Ponsse announced that it has signed a deed of sale regarding the sale of all shares in OOO Ponsse to the Russian company OOO Bison. While the process to complete the transaction is continuing, it has not yet been approved by the Russian authorities.


R&D AND CAPITAL EXPENDITURE

Group’s R&D expenses during the period under review totalled EUR 6.7 (6.5) million, of which EUR 2.5 (2.4) million was capitalised.

Investments during the period under review totalled EUR 9.9 (10.7) million. It consisted in addition to capitalised R&D expenses of investments in buildings and ordinary maintenance and replacement investments for machinery and equipment.


MANAGEMENT

The following persons were members of the Management Team: Juho Nummela, President and CEO, acting as the chairman; Petri Härkönen, Deputy CEO, Chief Financial Officer; Juha Inberg, Chief R&D and Technology officer; Tiina Kautonen, Chief Human Resources Official; Marko Mattila, Chief, Sales, Service and Marketing Officer; Tapio Mertanen, Chief Service Business Officer; Katja Paananen, Chief Responsibility Officer; Miika Soininen, Chief Digital officer and Tommi Väänänen, Chief Operations officer. The company management has regular management liability insurance.

The international PONSSE service network is led by Marko Mattila, Chief, Sales, Service and Marketing Officer, and Tapio Mertanen, Chief Service Business Officer. Managing directors of Ponsse’s subsidiaries and Jussi Hentunen report to Marko Mattila, Chief, Sales, Service and Marketing Officer. Group area directors report to Jussi Hentunen, Director, Dealer Development.

 

The geographical distribution and the responsible persons are presented below.
Northern Europe:
Jani Liukkonen (Finland),
Carl-Henrik Hammar (Sweden, Denmark and Norway) and
Tarmo Saks (the Baltic countries).

Central and Southern Europe:
Tuomo Moilanen (Germany and Austria),
Jean Sionneau (France),
Janne Tarvainen (Spain and Portugal),
Gary Glendinning (United Kingdom and Ireland),
Antti Räsänen (Hungary, Italy, Romania, Slovenia, Croatia, Serbia and Bulgaria),
Tarmo Saks (Poland and Slovakia) and
Jakub Hacura (Czech Republic).

Russia and Asia:
Mikhail Menshikov (Russia and Belarus),
Janne Tarvainen (Australia and South Africa) and
Risto Kääriäinen (China and Japan).

North and South America:
Pekka Ruuskanen (the United States),
Eero Lukkarinen (Canada),
Fernando Campos (Brazil) and
Martin Toledo (Uruguay, Chile and Argentina).


PERSONNEL

The Group had an average staff of 2,050 (1,969) during the period and employed 2,054 (2,003) people at period-end.


SHARE-BASED INCENTIVE PLANS

The Board of Directors of Ponsse Plc has approved two new Ponsse Group’s share-based incentive plans, which have not yet had any impact to accounting during the period under review. The aim of the new plans is to align the objectives of the shareholders and plan participants for increasing the value of the company in the long-term, to retain the participants at the company and to offer them competitive reward schemes that are based on earning and accumulating the company’s shares. A stock exchange release regarding the incentive plans has been published on 3 March 2023.


SHARE PERFORMANCE

The company’s registered share capital consists of 28,000,000 shares. The trading volume of Ponsse Plc shares for 1 January – 31 March 2023 totalled 137,741, accounting for 0.49 per cent of the total number of shares. Share turnover amounted to EUR 3.7 million, with the period’s lowest and highest share prices amounting to EUR 25.55 and EUR 28.70, respectively.

At the end of the period, shares closed at EUR 28.15, and market capitalisation totalled EUR 788.2 million.

At the end of the period under review, the company held 10,227 treasury shares.


ANNUAL GENERAL MEETING

A separate release was issued on 12 April 2023 regarding the authorizations given to the Board of Directors and other resolutions at the AGM.


GOVERNANCE

In its decision-making and administration, the company observes the Finnish Limited Liability Companies Act, other regulations governing publicly listed companies and the company’s Articles of Association. The company’s Board of Directors has adopted the Code of Governance that complies with the Finnish Corporate Governance Code approved by the Board of the Securities Market Association. The purpose of the code is to ensure that the company is professionally managed and that its business principles and practices are of a high ethical and professional standard.

The Code of Governance is available on Ponsse’s website in the Investors section.


NON-FINANCIAL INFORMATION REPORTING

Each year, Ponsse publishes its responsibility report in conjunction with its annual report. The report is also available on the company’s website under responsibility and investors.


RISK MANAGEMENT

Our risk management is based on the company’s values and strategic and financial goals. The purpose of risk management is to support the company’s strategic objectives and to secure its financial development and the continuity of its business. Ponsse’s management conducts an annual risk assessment that includes the sustainability risks and opportunities impacting the company’s business. Within them, aspects related to climate change, biodiversity and resource efficiency together with digitalisation and technological development are emphasised.

The purpose of risk management is to identify, assess, and monitor business-related risks that may impact the realisation of the company’s strategic and financial objectives or the continuity of business. This information is used to decide what measures will be required to prevent risks and respond to current risks.

Risk management is part of the company’s daily business and has been incorporated into its management system. Risk management is directed by the risk management policy approved by the Board of Directors.

A risk is any event that may prevent the company from achieving its objectives or threatens the continuity of business. A risk may also be a positive event, in which case the risk is treated as an opportunity. Each risk is assessed on the basis of its impact and probability. The company’s risk management methods include the avoidance, mitigation, and transfer of risk. Risks may also be managed by controlling and minimising their impacts.

 

SHORT-TERM RISK MANAGEMENT

Our major short-term risks are caused by Russia’s invasion of Ukraine. The invasion has shaken the global economy and increased the price of energy and raw materials. In combination with the economic effects of the covid-19 pandemic, the situation has limited the availability of components and increased manufacturing costs. In addition, delivery risks related to semiconductors still exist.

General delivery problems in our supply chain have made it more difficult to manage PONSSE forest machine production schedules, tied up more capital in the supply chain, and increased the risks related to working capital management. Sudden economic fluctuations and the continuing rise of inflation may further hamper the availability of parts, delay machine deliveries, and increase costs, weakening our profitability. The instability of the world economy and increasing financing costs may also reduce demand for forest machines.

Our operating environment has changed drastically and it is affecting Ponsse’s operations. Russia’s invasion of Ukraine has forced the European Union and United States to respond and impose rigid sanctions against Russia. In compliance with export sanctions and the company’s policy, Ponsse suspended all sales and export operations to Russia and Belarus effective 2 March 2022. At the same time, the operations of the local Russian subsidiary OOO Ponsse were discontinued.

In its release issued on 28 June 2022, Ponsse announced that it has signed a deed of sale regarding the sale of all shares in OOO Ponsse to the Russian company OOO Bison. The reorganisation in Russia may be associated with uncertainty regarding the approval process for the sale of foreign-owned companies and completing the transaction. While the process to complete the transaction is continuing, it has not yet been approved by the Russian authorities. The delay is caused by a regulation entered into force in Russia on 8 September 2022, relating to the approval of sales of companies owned by foreign parties. Ponsse aims to complete the sale as soon as possible, depending on the approval process of the Russian authorities.

In order to strengthen cybersecurity, Ponsse has clarified software update policy and user manual.

The uncertainty may also be increased by the volatility of developing countries’ foreign exchange markets. The geopolitical situation will increase the uncertainty through financial market operations and sanctions. Changes taking place in the fiscal and customs legislation in countries to which Ponsse exports may hamper the company’s export trade or its profitability.

The parent company monitors the changes in the Group’s internal and external trade receivables and the associated risk of impairment. The company has long-term and extensive service contracts, which may involve operational risks.

The key objective of the company’s financial risk management policy is to manage liquidity, interest and currency risks. The company ensures its liquidity through credit limit facilities agreed with a number of financial institutions. The effect of adverse changes in interest rates is minimised by utilising credit linked to different reference rates and by concluding interest rate swaps. The effects of currency rate fluctuations are partly mitigated through derivative contracts.

In the challenging situation, Ponsse’s strong financial position is important. The company’s financial position has remained strong due to good liquidity and binding credit limit facilities agreed with financial institutions. In terms of financing, Ponsse has carried out all measures necessary to ensure business continuity and financial situation is regularly evaluated.

The covid-19 pandemic has caused changes in the company’s operating environment and operating practices, for example by introducing a hybrid work model. The company complies with pandemics all recommendations of the health authorities and the premise for decision-making has been the health and safety of the customers and Ponsse’s employees.


OUTLOOK FOR THE FUTURE

The company’s euro-denominated operating profit in 2023 is expected to be slightly higher than the operating profit of its continuing operations in 2022 (EUR 46.6 million).

Due to the uncertainty in the market, the company keeps prioritising its investments and the cost control will be continued. The development work to improve profitability continues. The company monitors changes in the operating environment and customers operating conditions closely.

We monitor Ponsse Latin America Ltda -subsidiary’s situation in an enhanced manner and company takes measures to improve the situation.


EVENTS AFTER THE PERIOD

The company has no important events after the conclusion of the period under review.

 

PONSSE GROUP

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)

 

 

 

 

 

 

 

 

1-3/23

1-3/22

1-12/22

NET SALES

201,729

156,125

755,123

Increase (+)/decrease (-) in inventories of finished goods and work in progress

2,291

22,552

33,633

Other operating income

 

946

690

3,677

Raw materials and services

 

-132,949

-122,325

-525,040

Expenditure on employment-related benefits

-28,148

-25,410

-107,873

Depreciation and amortisation

 

-7,779

-6,400

-27,671

Other operating expenses

 

-19,470

-16,272

-85,270

OPERATING PROFIT

 

16,619

8,959

46,577

Share of results of associated companies

-1

2

147

Financial income and expenses

 

564

1,120

-3,504

RESULT BEFORE TAXES

17,182

10,081

43,219

Income taxes

 

-3,146

-2,087

-9,037

NET RESULT FROM THE CONTINUING OPERATIONS

 

14,036

7,994

34,182

Net result from the discontinued operations

 

492

3,313

2,930

NET RESULT FOR THE PERIOD

 

14,528

11,307

37,113

 

 

 

 

 

OTHER ITEMS INCLUDED IN TOTAL COMPREHENSIVE RESULT:

 

 

 

Translation differences related to foreign units

-1,941

1,837

4,354

 

 

 

 

 

TOTAL COMPREHENSIVE RESULT FOR THE PERIOD

12,587

13,144

41,467

 

 

 

 

 

 

 

 

 

 

Diluted and undiluted earnings per share from continuing operations

0.50

0.29

1.22

Diluted and undiluted earnings per share from discontinued operations

0.02

0.12

0.10

Diluted and undiluted earnings per share

0.52

0.40

1.33

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)

 

 

 

 

ASSETS

31 Mar 23

31 Mar 22

31 Dec 22

NON-CURRENT ASSETS

 

 

 

Intangible assets

50,885

44,044

49,583

Goodwill

5,754

3,798

5,707

Property, plant and equipment

116,370

114,455

114,732

Financial assets

375

373

375

Investments in associated companies

812

787

881

Non-current receivables

60

245

63

Deferred tax assets

4,466

3,728

4,422

TOTAL NON-CURRENT ASSETS

178,721

167,430

175,763

 

 

 

 

CURRENT ASSETS

 

 

 

Inventories

239,133

203,360

229,648

Trade receivables

63,455

51,144

62,305

Income tax receivables

1,610

784

1,013

Other current receivables

27,186

22,785

24,817

Cash and cash equivalents

61,654

86,105

73,451

TOTAL CURRENT ASSETS

393,039

364,178

391,234

 

 

 

 

Assets related to assets held for sale

21,005

0

21,650

 

 

 

 

TOTAL ASSETS

592,765

531,608

588,648

 

 

 

 

SHAREHOLDERS’ EQUITY AND LIABILITIES

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

Share capital

7,000

7,000

7,000

Other reserves

3,460

3,460

3,460

Translation differences

10,760

10,184

12,701

Treasury shares

-274

-2

-274

Retained earnings

313,402

289,785

298,926

EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS

334,349

310,427

321,813

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

Interest-bearing liabilities

50,144

50,144

42,484

Deferred tax liabilities

556

859

942

Other non-current liabilities

80

85

81

TOTAL NON-CURRENT LIABILITIES

50,780

51,088

43,507

 

 

 

 

CURRENT LIABILITIES

 

 

 

Interest-bearing liabilities

43,652

4,910

53,804

Provisions

11,085

4,349

10,647

Tax liabilities for the period

2,756

2,491

4,664

Trade creditors and other current liabilities

149,197

158,343

153,476

TOTAL CURRENT LIABILITIES

206,690

170,093

222,591

 

 

 

 

Liabilities related to assets held for sale

947

0

738

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES

592,765

531,608

588,648


 

CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
Continuing and discontinued operations

 

 

 

 

 

 

 

1-3/23

1-3/22

1-12/22

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net result for the period

 

14,528

11,307

37,113

Adjustments:

 

 

 

 

Financial income and expenses

 

-592

-1,611

5,893

Change in provisions

 

294

-200

6,291

Share of the result of associated companies

1

-2

-147

Depreciation and amortisation

 

7,780

7,133

28,853

Income taxes

 

3,240

2,805

9,562

Other adjustments

 

1,397

-2,361

-3,753

Cash flow before changes in working capital

26,648

17,071

83,812

 

 

 

 

 

Change in working capital:

 

 

 

 

Change in trade receivables and other receivables

-3,483

-9,794

-21,858

Change in inventories

 

-8,615

-33,581

-67,087

Change in trade creditors and other liabilities

-5,738

3,127

-4,173

Interest received

 

112

71

309

Interest paid

 

-589

-165

-1,627

Other financial items

 

113

644

600

Income taxes paid

 

-6,046

-1,532

-7,921

NET CASH FLOWS FROM OPERATING ACTIVITIES (A)

2,403

-24,160

-17,945

 

 

 

 

 

CASH FLOWS USED IN INVESTING ACTIVITIES

 

 

 

Investments in tangible and intangible assets

-9,926

-10,673

-41,917

Proceeds from sale of tangible and intangible assets

306

203

612

Acquisition of subsidiaries*

0

0

-5,516

NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B)

-9,619

-10,470

-46,821

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

Withdrawal/Repayment of current loans

-10,255

-435

29,575

Withdrawal of non-current loans

8,000

0

11,170

Withdrawal/Repayment of finance lease liabilities

-889

-820

-3,755

Dividends paid

0

0

-16,800

NET CASH FLOWS FROM FINANCING ACTIVITIES (C)

-3,143

-1,255

20,191

 

 

 

 

Change in cash and cash equivalents (A+B+C)

-10,360

-35,885

-44,575

 

 

 

 

 

Cash and cash equivalents on 1 Jan

 

76,545

120,900

120,900

Impact of exchange rate changes

-631

1,089

220

Cash and cash equivalents on 31Mar/31 Dec

65,554

86,105

76,545


*) Acquisition of subsidiaries Ponsse Chile SpA, Chile and Ponsse Czech s.r.o., Czech Republic decreased by cash and cash equivalents at the time of acquisition


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)

A = Share capital

 

 

 

 

 

 

B = Share premium and other reserves

 

 

 

 

 

C = Translation differences

 

 

 

 

 

 

D = Treasury shares

 

 

 

 

 

E = Retained earnings

F = Total shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS

 

A

B

C

D

E

F

SHAREHOLDERS’ EQUITY     1 JAN 2023

7,000

3,460

12,701

-274

298,926

321,813

Comprehensive result:

 

 

 

 

 

 

  Net result for the period

 

 

 

 

14,528

14,528

  Other items included in total comprehensive result:

 

 

 

 

 

 

  Translation differences

 

 

-1,941

 

 

-1,941

Total comprehensive result for the period

 

 

-1,941

 

14,528

12,587

Direct entries to retained earnings

 

 

 

 

-67

-67

Transactions with shareholders

 

 

 

 

 

 

  Share Plan

 

 

 

 

16

16

Transactions with shareholders in total

 

 

 

 

16

16

Other changes

 

 

 

 

 

 

SHAREHOLDERS' EQUITY 31 MAR 2023

7,000

3,460

10,760

-274

313,402

334,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY     1 JAN 2022

7,000

3,460

8,347

-2

278,462

297,267

Comprehensive result:

 

 

 

 

 

 

  Net result for the period

 

 

 

 

11,307

11,307

  Other items included in total comprehensive result:

 

 

 

 

 

 

  Translation differences

 

 

1,837

 

 

1,837

Total comprehensive result for the period

 

 

1,837

 

11,307

13,144

Direct entries to retained earnings

 

 

 

 

 

 

Transactions with shareholders

 

 

 

 

 

 

  Share Plan

 

 

 

 

16

16

Transactions with shareholders in total

 

 

 

 

16

16

Other changes

 

 

 

 

 

 

SHAREHOLDERS' EQUITY 31 MAR 2022

7,000

3,460

10,184

-2

289,785

310,427

 

 

 

 

 

 

 

 

NOTES TO THE RELEASE FOR THE INTERIM REPORT

The stock exchange release for the interim report has been prepared observing the recognition and valuation principles of IFRS, and the requirements of IAS 34 have not been complied with. The same accounting principles were observed for the closing of the books as for the annual financial statements dated 31 December 2022.

The above figures have not been audited.

The above figures have been rounded and may therefore differ from those given in the official financial statements.

This communication includes future-oriented statements that are based on the assumptions currently made by the company’s management and its current decisions and plans. Although the management believes that the future expectations are well founded, there is no certainty that these expectations will prove to be correct. This is why the results may significantly deviate from the assumptions included in the future-oriented statements as a result of, among other things, changes in the economy, markets, competitive conditions, legislation or currency exchange rates.

 

 

31 Mar 23

31 Mar 22

31 Dec 22

1. LEASING COMMITMENTS (EUR 1,000)

 

1,116

807

1,047



2. CONTINGENT LIABILITIES (EUR 1,000)

31 Mar 23

31 Mar 22

31 Dec 22

Guarantees given on behalf of others

0

20

0

Responsibility of checking the VAT deductions made on real property investments

 

5,800

7,296

6,100

Other commitments

 

206

133

200

TOTAL

 

6,006

7,449

6,300


 

3. PROVISIONS (EUR 1,000)

Guarantee provision

Other provisions

Total

1 January 2023

4,164

6,483

10,647

Provisions added

317

0

317

Provisions cancelled

-17

0

-17

Exchange rate difference

0

138

138

31 March 2023

4,464

6,617

11,085


To item other provisions the Group has recognised a provision based on an agreement entered into by Ponsse Latin America Ltda, as the fulfilment of the contractual obligations is estimated to generate expenses that exceed the expected economic benefits obtained from the agreement. The provision has been measured based on the best possible estimate of the expenses arising from the fulfilment of the obligations on the closing date.


4. DISCONTINUED OPERATIONS

On 28 June 2022, Ponsse has signed a deed of sale regarding the sale of all shares in OOO Ponsse to the Russian company OOO Bison. While the process to complete the transaction is continuing, it has not yet been approved by the Russian authorities. Ponsse aims to complete the sale as soon as possible. Ponsse has classified the sold functions as assets for sale and reported them as discontinued operations.

The reorganisation has no material impact on profit, and no significant impairment or sales profit due to the sale has been recorded in the income statement for the period under review. The cumulative RUB/EUR translation difference was EUR 6.1 million at the end of Q1/2023. The cumulative translation difference will be recognised through profit or loss once the sale has been concluded. RUB/EUR average rate of 79.87450 and closing rate of 84.22700 is used in interim reporting.


PROFIT AND LOSS STATEMENT FROM DISCONTINUED OPERATIONS (EUR 1,000)

 

 

 

 

 

 

 

1-3/23

1-3/22

1-12/22

NET SALES

1,535

17,553

32,561

Increase (+)/decrease (-) in inventories of finished goods and work in progress

4

-79

-1,992

Other operating income

 

211

52

496

Raw materials and services

 

-620

-9,878

-17,320

Expenditure on employment-related benefits

-393

-2,171

-4,246

Depreciation and amortisation

 

-1

-733

-1,182

Other operating expenses

 

-179

-1,205

-2,472

OPERATING PROFIT

 

558

3,539

5,844

Financial income and expenses

 

28

491

-2,389

RESULT BEFORE TAXES

586

4,031

3,456

Income taxes

 

-94

-718

-526

NET RESULT FOR THE PERIOD

 

492

3,313

2,930



THE EFFECT OF DISCONTINUED OPERATIONS ON THE STATEMENT OF FINANCIAL POSITION (EUR 1,000)

 

 

 

31 Mar 23

ASSETS RELATED TO ASSETS HELD FOR SALE

 

Intangible assets

17

Property, plant and equipment

7,492

Deferred tax assets

508

Inventories

5,855

Trade receivables

2,811

Income tax receivables

221

Other current receivables

202

Cash and cash equivalents

3,900

ASSETS RELATED TO ASSETS HELD FOR SALE TOTAL

21,006

 

 

LIABILITIES RELATED TO ASSETS HELD FOR SALE

 

 

Interest-bearing liabilities

7

Deferred tax liabilities

17

Tax liabilities for the period

3

Trade creditors and other current liabilities

920

LIABILITIES RELATED TO ASSETS HELD FOR SALE TOTAL

947


 
STATEMENT OF CASH FLOWS FROM DISCONTINUED OPERATIONS (EUR 1,000)

 

 

 

 

 

 

 

1-3/23

1-3/22

1-12/22

Cash flows from operating activities

690

64

-10,712

Cash flows used in investing activities

374

-323

-798

Cash flows from financing activities

 

-5

-5

-21

Cash flows for the period under review

 

1,059

-265

-11,532


 

KEY FIGURES AND RATIOS

 

31 Mar 23

31 Mar 22

31 Dec 22

R&D expenditure, MEUR

6.7

6.5

27.7

Capital expenditure, MEUR

9.9

9.8

41.9

as % of net sales

 

4.9

6.3

5.6

Average number of employees

 

2,050

1,969

2,016

Order books, MEUR

 

336.9

356.2

353.7

Equity ratio, %

 

56.8

61.2

55.0

Diluted and undiluted earnings per share (EUR), continuing operations

0.50

0.29

1.22

Diluted and undiluted earnings per share (EUR), discontinued operations

0.02

0.12

0.10

Diluted and undiluted earnings per share (EUR)

0.52

0.40

1.33

Equity per share (EUR)

 

11.94

11.09

11.49

Order intake, MEUR

 

184.9

199.7

796.2



FORMULAE FOR FINANCIAL INDICATORS

Return on capital employed, % (including discontinued operations):
Result before taxes + financial expenses
---------------------------------------------------------------------------------------------------------------------
Shareholder´s equity + interest-bearing financial liabilities (average during the year) * 100

Average number of employees:
Average of the number of personnel at the end of each month from continuing operations. The calculation has been adjusted for part-time employees.

Net gearing, % (including discontinued operations):
Interest-bearing financial liabilities – cash and cash equivalents
-----------------------------------------------------------------------------------
Shareholders’ equity * 100

Equity ratio, % (including discontinued operations):
Shareholders’ equity + Non-controlling interests
------------------------------------------------------------------------
Balance sheet total - advance payments received * 100

Earnings per share, continuing operations:
Net result from continuing operations for the period - Non-controlling interests
-----------------------------------------------------------------------------------------------------------
Average number of shares during the accounting period, adjusted for share issues

Earnings per share, discontinued operations:
Net result from discontinued operations for the period - Non-controlling interests
-----------------------------------------------------------------------------------------------------------
Average number of shares during the accounting period, adjusted for share issues

Earnings per share (including discontinued operations):
Net result for the period - Non-controlling interests
-----------------------------------------------------------------------------------------------------------
Average number of shares during the accounting period, adjusted for share issues

Equity per share (including discontinued operations):
Shareholders’ equity
---------------------------------------------------------------------------------------------
Number of shares on the balance sheet date, adjusted for share issues

Order intake:
Net sales from continuing operations for the period + Change in order books from continuing operations during the period


Vieremä, 25 April 2023

 

PONSSE PLC

Juho Nummela
President and CEO


FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 400 495 690
Petri Härkönen, CFO, tel. +358 50 409 8362


DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Principal media
www.ponsse.com


Ponsse Plc is a company specialising in the sales, manufacture, servicing and technology of cut-to-length method forest machines and is driven by genuine interest in its customers and their business. Ponsse develops and manufactures sustainable and innovative harvesting solutions based on customers’ needs.

The company was established by forest machine entrepreneur Einari Vidgren in 1970, and it has been a leader in timber harvesting solutions based on the cut-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The company’s shares are quoted on the NASDAQ OMX Nordic List.
 



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