– Net sales amounted to EUR 636.6 (Q1-Q4/2019 667.4) million.
– Q4 net sales amounted to EUR 205.2 (Q4/2019 203.3) million.
– Operating result totalled EUR 57.1 (Q1-Q4/2019 67.3) million, equalling 9.0
(10.1) per cent of net sales.
– Q4 operating result totalled EUR 13.7 (Q4/2019 20.7) million, equalling 6.7
(10.2) per cent of net sales.
– Profit before taxes was EUR 39.6 (Q1-Q4/2019 66.6) million.
– Cash flow from business operations was EUR 74.8 (43.7) million.
– Earnings per share were EUR 1.15 (1.86).
– Equity ratio was 54.3 (54.8) per cent.
– Order books stood at EUR 174.9 (256.8) million.
– The Board of Directors´ proposal for the distribution of profit is EUR 0.60
(0.30) per share.
– New profit guidance: Group´s euro-denominated operating result is expected to
be slightly higher in 2021 than in 2020.
PRESIDENT AND CEO JUHO NUMMELA:
The year 2020 started with growing uncertainties. The first part of the year was
characterised by a trade war, unrest in labour markets, bark beetle damage in
Central Europe and the impact of the slowing market cycle. Our strong order book
gave us an excellent buffer for the early year’s challenges.
The real shock came at the end of the first quarter when the impact of the
coronavirus pandemic started to materialise. Our company reacted quickly to the
difficult situation, and we were able to alleviate the impact of the crisis. As
societies started to close down due to restrictions, it became very difficult to
forecast our operations.
Despite the challenging situation, we were able to maintain our net sales at a
good level and to achieve a profitability of approximately nine per cent and an
excellent cash flow of EUR 74.8 million. In the autumn of 2020, we delivered the
16,000th PONSSE machine made in Vieremä to a customer of ours.
What from our company’s point of view started as problems with the availability
of spare parts, soon escalated into a crisis in demand for our products.
Uncertainties over the impact of the rapidly worsening crisis slowed the markets
considerably during the first half of the year. The uncertainty had a large
impact on forestry companies. Our order book nearly halved during the second
quarter year-on-year, and Russian markets, in particular, were the first to slow
considerably. Towards the summer, our customers started, however, to show more
urgent demand for machines, and we were able to return our factory to two shifts
in the middle of June.
During the second half of the year, the market situation improved as the
operations of our customers started to return to normal. The slow recovery in
Asia gave a start to harvesting operations in Russia, and our situation slowly
started to improve. During the third quarter, markets started to recover
globally, and the availability of components normalized. Market recovery
continued until the end of the year. Considering the situation and driven by our
strong order book at the beginning of the year, our performance was excellent.
Finally, demand for trade-in machines also returned to a good level and, at the
same time, our after sales services climbed back to their normal growth track.
Recovery from the coronavirus crisis was much quicker than expected.
Thanks to the recovery of the markets, our order books improved slowly towards
the end of the year. Our order books amounted to EUR 174.9 (256.8) at the end of
the year.
In accordance with our forecasts, forest machine sales volumes fell by
approximately 20 per cent compared to the previous year. Among Ponsse’s business
areas, the recovery of the trade-in machine sales and after sales, in
particular, at the end of the year was a great relief in addition to the
recovery of new machine sales. The stock of trade-in machines is still higher
than normal, but the good sales of trade-in machines at the end of the year
improved the cash flow from business operations significantly. Thanks to our
customers’ good work situation, our after sales returned to their normal level
after the drop during the second quarter.
In 2020, Ponsse’s cumulative net sales amounted to EUR 636.6 (667.4) million,
which is a good result considering the situation, with a small decline of 4.6
per cent. The operating profit amounted to EUR 57.1 (67.3) million, and it
equalled 9.0 (10.1) per cent of net sales. Cash flow from business operations
amounted to EUR 74.8 (43.7) million, which was excellent. We kept working
capital well under control during the year.
Coronavirus restrictions were visible in all our operations across the world.
Decisions were made to ensure the health and safety of our customers and all
Ponsse employees. The goal was to keep service centres and the factory as clean
of coronavirus as possible. The transition of office employees to remote working
in the spring exceeded all our expectations, and we were able to protect our
employees’ health while continuing our development activities as normal. Our
factory remained free of infections, and our employees’ exemplary approach to
responsibility paid off. Working life and operating methods have changed
permanently at Ponsse. We will return to our offices after the pandemic, but we
want to hold on to the proven opportunities of remote working and use electronic
channels more than before in communicating and contacting.
Since 2010, we have invested EUR 141 million in R&D and EUR 235 million in fixed
assets. Continuous and purposeful development is an integral part of Ponsse’s
operations. Our global distribution and after sales network is developing
rapidly. We are developing the organisation and operating methods of our network
systematically, and aiming to expand effectively to new market areas. The daily
activities of the Ponsse network’s sales and after sales keep our customers
satisfied and ensure our long-term success. At the same time, we are making
significant investments in our R&D and manufacturing network to keep the
development of our productivity and ability to produce quality as high as
possible.
NET SALES
Consolidated net sales for the period under review amounted to EUR 636.6 (667.4)
million, which is 4.6 per cent less than in the comparison period. International
business operations accounted for 79.6 (78.2) per cent of net sales.
Net sales were regionally distributed as follows: Northern Europe 39.6 (38.0)
per cent, Central and Southern Europe 23.6 (19.7) per cent, Russia and Asia 14.6
(17.6) per cent, North and South America 21.7 (24.0) per cent and other
countries 0.5 (0.7) per cent.
PROFIT PERFORMANCE
The operating result amounted to EUR 57.1 (67.3) million. The operating result
equalled 9.0 (10.1) per cent of net sales for the period under review.
Consolidated return on capital employed (ROCE) stood at 12.4 (23.5) per cent.
Staff costs for the period totalled EUR 85.7 (92.7) million. Other operating
expenses stood at EUR 47.8 (57.6) million. The net total of financial income and
expenses amounted to EUR -17.7 (-1.0) million. Exchange rate gains and losses
with a net effect of EUR -15.2 (0.4) million were recognised under financial
items for the period.
The parent company's net receivables from other Group companies stood at EUR
42.2 (98.0) million. The parent company has measured the net investment to
subsidiary Ponsse Latin America Ltda at fair value by recognising credit loss
from trade receivables and impairment from non-current investments, in total EUR
30.4 million, while the operative performance of the subsidiary has improved.
Receivables from subsidiaries mainly consisted of trade receivables, with
unregistered tax receivables from unrealised exchange rate losses from unhedged
items related to the valuation of trade receivables having an impact on the
Group’s effective tax rate.
Result for the period under review totalled EUR 32.3 (52.0) million. Diluted and
undiluted earnings per share (EPS) came to EUR 1.15 (1.86).
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 474.0 (426.8) million. Inventories stood at
EUR 142.1 (153.2) million. Trade receivables totalled EUR 35.4 (47.2) million,
while liquid assets stood at EUR 123.6 (48.7) million. Group shareholders’
equity stood at EUR 255.0 (232.1) million and parent company shareholders’
equity (FAS) at EUR 197.3 (208.0) million. The amount of interest-bearing
liabilities was EUR 114.5 (81.7) million. The company has ensured its liquidity
by withdrawal of current loan from credit facility limit and commercial paper
programme. The company has used 21 per cent of its credit facility limit.
Group's loans from financial institutions are non-collaretal bank loans without
financial covenants. Consolidated net liabilities totalled EUR -9.1 (32.9)
million, and the debt-equity ratio (net gearing) was -3.6 (14.2) per cent. The
equity ratio stood at 54.3 (54.8) per cent at the end of the period under
review.
Cash flow from operating activities amounted to EUR 74.8 (43.7) million. Cash
flow from investment activities came to EUR -20.0 (-28.2) million.
IMPACT OF THE COVID-19 PANDEMIC
The coronavirus pandemic has caused rapid changes in the company’s operating
environment. The company’s management has actively monitored and forecasted the
development of the pandemic and taken preventive and corrective action to
minimise its impact. Prolonging of coronavirus pandemic may have a significant
impact on availability of components.
The company reacted to the COVID-19 pandemic rapidly, and the company’s
management began to prepare alternative action plans for the changing
environment. In terms of financing, the company has carried out all measures
necessary to ensure the company’s continuity.
Coronavirus restrictions were visible in all the company’s operations across the
world. Decisions were made to ensure the health and safety of the company’s
customers and all Ponsse employees.
The company’s office employees successfully moved to remote working in the
spring and the company was able to protect employees’ health while continuing
development activities as normal. The company’s production remained free of
infections, and employees’ exemplary approach to responsibility paid off.
Working life and operating methods have changed permanently at Ponsse. After the
pandemic, the company will hold on to the proven opportunities of the digital
modes of operation and use them more than before in both, internal and external
communicating and contacting.
Market situation
Uncertainties over the impact of the rapidly worsening pandemic slowed the
markets considerably during the first half of the year. During the second half
of the year, the market situation improved as the operations of the company’s
customers began to return to normal, and the company returned to two production
shifts in the middle of June.
Temporary cost-saving measures
The company’s management has actively monitored and forecasted the development
of the pandemic, and taken preventive and corrective action to minimise its
impact. Ponsse Plc started cooperation negotiations with its personnel, and the
negotiations ended on 19 March 2020. It was agreed that all personnel would be
laid off for up to 90 days to adjust the parent company’s operations. In
addition, the subsidiaries were adjusting their operations. The company
continues to enhance the control of expenses, and investments continue to be
carefully considered.
Public subsidies and other support
Public subsidies presented in other operating income include periodic COVID-19
aids from different states amounting to EUR 1.4 million.
Impact on financial reporting
Based on the company’s impairment calculations, there was no need to reduce the
goodwill of any cash-generating unit at the end of the financial period.
The company analysed credit risks related to trade receivables, as well as
credit loss provisions, and concluded that there were enough provisions at the
end of the financial period.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totalled EUR 581.7 (642.2) million, while period-end
order books were valued at EUR 174.9 (256.8) million.
DISTRIBUTION NETWORK
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 and Epec Oy,
Finland. The Group includes also the property company Ponsse Centre, Russia.
Sunit Oy, Finland, is an associate in which Ponsse Plc has a holding of 34 per
cent.
R&D AND CAPITAL EXPENDITURE
Group’s R&D expenses during the period under review totalled EUR 21.3 (19.3)
million, of which EUR 9.2 (7.7) million was capitalised.
Capital expenditure totalled EUR 20.3 (28.6) million. It consisted in addition
to capitalised R&D expenses of investments in buildings and ordinary maintenance
and replacement investments for machinery and equipment.
ANNUAL GENERAL MEETING
Annual General Meeting was held in Vieremä, Finland 27 May 2020. The AGM
approved the parent company financial statements and the consolidated financial
statements, and members of the Board of Directors and the President and CEO were
discharged from liability for the 2019 financial period.
The AGM decided to pay a dividend of EUR 0.30 per share for 2019 (dividends
totaling EUR 8,400,000). The dividend payment record date was 29 May 2020, and
the dividends were paid on 5 June 2020.
Annual General Meeting authorised the Board of Directors to decide on the
acquisition of treasury shares so that shares can be acquired in one or several
instalments to a maximum of 250,000 shares. The maximum amount corresponds to
approximately 0.89 per cent of the company’s total shares and votes.
The shares will be acquired in public trading organised by Nasdaq Helsinki (“the
Stock Exchange”). Furthermore, they will be acquired and paid according to the
rules of the Stock Exchange and Euroclear Finland Ltd.
The Board may, pursuant to the authorisation, only decide upon the acquisition
of the treasury shares using the company’s unrestricted shareholders’ equity.
The authorisation is required for supporting the company’s growth strategy in
the company's potential mergers and acquisitions or other arrangements. In
addition, shares can be distributed to the company’s current shareholders, used
for increasing shareholders’ ownership value by invalidating shares after their
acquisition or used in personnel incentive systems. The authorisation includes
the right of the Board to decide upon all other terms and conditions in the
acquisition of treasury shares.
The authorisation is valid until the next Annual General Meeting; however, no
later than 30 June 2021. The previous authorisations are cancelled.
The AGM authorised the Board of Directors to decide on the assignment of
treasury shares held by the company in one or more tranches for payment or
without payment so that a maximum of 250,000 shares will be issued on the basis
of the authorisation. The maximum amount corresponds to approximately 0.89 per
cent of the company’s total shares and votes.
The authorisation includes the right of the Board to decide upon all other terms
and conditions of the share issue. Thus, the authorisation includes the right to
organise a directed issue in deviation of the shareholders' subscription rights
under the provisions prescribed by law.
The authorisation is used in supporting the Company’s growth strategy in the
Company's potential corporate acquisitions or other arrangements. In addition,
the shares can be issued to the Company’s current shareholders, sold through
public trading or used in personnel incentive systems. A directed share issue
may only be free of charge if there is a particularly weighty economic reason
for this considering the company, taking into account the interests of the
company and all of its shareholders.
The authorisation is valid until the next Annual General Meeting; however, no
later than 30 June 2021. The previous authorisations are cancelled.
Annual General Meeting authorised the Board of Directors to decide on a directed
share issue and to issue special rights entitling to shares as referred to in
Section 10(1) of the Finnish Limited Liability Companies Act, in one or more
tranches, for payment or without a payment.
Based on the authorisation, a maximum of 200,000 shares can be issued, which is
approximately 0.7 per cent of the current total number of shares in the company.
Shares can be issued as part of the company’s share-based incentive plans. The
Board of Directors will decide on all the terms and conditions for the granting
of special rights entitling to shares in the share issue. Based on the
authorisation, a derogation from the pre-emptive subscription right of
shareholders (targeted share issue) may be granted for the special rights
entitling to shares. A directed issue may only be free of charge if there is a
particularly weighty economic reason for this considering the company, taking
into account the interests of the company and all of its shareholders.
The authorisation is valid until the next Annual General Meeting, however no
later than 30 June 2021.
BOARD OF DIRECTORS AND THE COMPANY’S AUDITORS
Juha Vidgrén acted as Chairman of the Board until 27 May 2020 and Jarmo Vidgrén
from 27 May 2020, and Mammu Kaario as Vice Chairman of the Board. Members of the
Board were Matti Kylävainio, Juha Vanhainen, Janne Vidgrén and Jukka Vidgrén.
The Board of Directors did not establish any committees or commissions from
among its members.
The Board of Directors convened ten times during the period under review. The
attendance rate was 98.5 percent.
During the period under review, KPMG Oy Ab acted as the company auditor with Ari
Eskelinen, Authorised Public Accountant, as the principal auditor.
MANAGEMENT
The following persons were members of the Management Team: Juho Nummela,
President and CEO, acting as the chairman; Petri Härkönen, Deputy CEO, CFO; Juha
Inberg, Technology and R&D Director; Tapio Mertanen, Service Director; Paula
Oksman, HR Director; Miika Soininen, Director of IT and Digital Services
starting 1 December 2020; Tommi Väänänen, Director of Delivery Chain Process and
Marko Mattila, Sales and Marketing Director. The company management has regular
management liability insurance.
The area director organisation of sales is led by Marko Mattila, the Group's
sales and marketing director, and Tapio Mertanen, service director. Area
directors report to Jussi Hentunen, Ponsse retail network manager. Managing
directors of subsidiaries and Jussi Hentunen report to Marko Mattila, Ponsse
Plc's sales and marketing director.
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),
Clément Puybaret (France),
Janne Tarvainen (Spain and Portugal),
Dean Robson (the United Kingdom) until 31 December 2020,
Patrick Murphy (Ireland) until 6 November 2020,
Gary Glendinning (Hungary, Romania, Slovenia, Croatia, Serbia, and the United
Kingdom and Ireland starting 1 January 2021) and
Tarmo Saks (Poland, Czech Republic and Slovakia).
Russia and Asia:
Jaakko Laurila (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 1,782 (1,761) during the period and employed
1,845 (1,764) people at period-end.
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 December 2020 totalled
2,920,250, accounting for 10.4 per cent of the total number of shares. Share
turnover amounted to EUR 73.7 million, with the period’s lowest and highest
share prices amounting to EUR 19.36 and EUR 33.00, respectively.
At the end of the period, shares closed at EUR 29.20, and market capitalisation
totalled EUR 817.6 million.
At the end of the period under review, the company held 227 treasury shares.
QUALITY, ENVIRONMENT AND OCCUPATIONAL HEALTH AND SAFETY
Ponsse is committed to observing the ISO 9001 quality standard, the ISO 14001
environmental system standard and the ISO45001 safety and health standard. The
aim of the management systems based on international standards is to standardise
operations at the Group level and to ensure a continuous development. Lloyd’s
Register Quality Assurance conducted an audit of the ISO 9001:2015 quality
system and the ISO 14001:2015 environmental system and as a new the ISO45001
safety and health standard during the period under review.
Implementation of the principles of sustainable development and responsible
leadership are guided by the management systems based on the company's quality,
environmental and occupational safety and health standards. At Ponsse,
sustainable development means taking the economic, social and ecological points
of view and the principles related to them equally into account in the company's
operations. According to the point of view of ecological sustainability we want
to avoid and minimise the negative impacts of our products, services, operations
and decisions on biodiversity, the ecosystem and sufficiency of natural
resources. At Ponsse, defining the environmental impact of production, services
and products life cycle is based on ISO14040 life cycle assessment standard. Our
investments in minimising the fuel consumption and emissions of our products and
surface damage of trees and in our maintenance services processes also influence
the sustainability of the operations of our customers. According to the point of
view of social sustainability, we ensure occupational well-being and safety and
equal treatment and support employment and the development of professional human
resources. The point of view of economical sustainability is related to
profitability, cash flow from business operations and growth and ensures the
company’s economic performance in the long term. This brings stability and
continuity to the local community and the society in the whole of our global
field of operations.
At Ponsse, operating methods and production processes are developed with both
internal and external audits. The company’s audit system has been a key tool in
promoting the development during 2020. COVID-19 has not significantly affected
the operation of the audit system.
Production processes are continuously developed in accordance with the operating
model of continuous improvement. The company’s quality assurance system
emphasises the importance of prevention.
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
The non-financial information reporting is available at the annual report, in
section Corporate social responsibility and also on Ponsse’s website in the
Investors section.
RISK MANAGEMENT
Risk management is based on the company’s values, as well as strategic and
financial objectives. Risk management aims to support the achievement of the
objectives specified in the company’s strategy, as well as to ensure the
financial development of the company and the continuity of its business.
Furthermore, risk management aims to identify, assess and monitor business
-related risks which may influence the achievement of the company’s strategic
and financial goals or the continuity of its business. Decisions on the
necessary measures to anticipate risks and react to observed risks are made on
the basis of this information.
Risk management is a part of regular daily business, and it is also included in
the management system. Risk management is controlled by the risk management
policy approved by the Board.
A risk is any event that may prevent the company from reaching its objectives or
that threatens the continuity of business. On the other hand, 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. Methods of risk
management include avoiding, mitigating and transferring risks. Risks can also
be managed by controlling and minimising their impact.
SHORT-TERM RISK MANAGEMENT
The insecurity in the world economy may result in a decline in the demand for
forest machines and the availability of components. The uncertainty may be
increased by the volatility of developing countries’ foreign exchange markets.
The geopolitical situation, in particular, 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 effects of the COVID-19 pandemic are described in section “IMPACT OF THE
COVID-19 PANDEMIC” of this release.
The parent company monitors the changes in the Group’s internal and external
trade receivables and the associated risk of impairment.
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.
Accounting policies requiring consideration by management and crucial factors of
uncertainty associated with estimates
Estimates and assumptions regarding the future have to be made during the
preparation of the financial statements, and the outcome may differ from the
estimates and assumptions. Group management utilises their best judgement when
making decisions regarding accounting policies and their adoption. Estimates
made when compiling the financial statements are based on the management’s best
views on the closing date of the reporting period. The estimates are based on
previous experience and assumptions about the future that are deemed the most
likely on the balance sheet date.
Trade receivables
On the date of the financial statements, the Group recognises a credit loss on
receivables for which no payment will probably be received according to its best
judgement. The general model specified in IFRS 9 is applied when recognising
provision for expected credit losses.
Inventories
On the date of the financial statements, the Group recognises impairment losses
according to its best judgement. The assessment takes into account the age
structure of the inventory and the likely selling price.
Change in guarantee provision
The guarantee provision is based on realised guarantee expenses and on failure
history recorded in the previous years. In addition, company may prepare
provision for possible individual warranty obligations, if needed.
Capitalisation of R&D expenditure
On the date of the financial statements, the Group assesses whether the new
product is technically feasible, whether it can be commercially utilised and
whether future economic benefits will be received from the product, which makes
it possible to capitalise development expenditure arising from the design of new
or advanced products on the balance sheet as intangible assets.
EVENTS AFTER THE PERIOD
The company has no important events after the conclusion of the period under
review.
OUTLOOK FOR THE FUTURE
Group’s euro-denominated operating result in 2021 is expected to be slightly
higher than in 2020.
It is still unclear how long, and how strong the corona pandemic will last. Its
impact on Ponsse’s business operations, financial position, operating results
and liquidity are continuously evaluated.
The Group will continue to keep costs under strict control and make investments
after thorough consideration.
ANNUAL GENERAL MEETING
Ponsse Plc’s Annual General Meeting will be held on 7 April 2021, starting at
11:00 a.m. at the place and in a way to be announced later.
BOARD OF DIRECTORS’ PROPOSAL FOR THE DISPOSAL OF PROFIT
The parent company Ponsse Plc had 159,524,135.76 euros of distributable funds on
31 December 2020.
The company’s Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.60 per share shall be paid for the year 2020. The company’s
Board of Directors proposes to the Annual General Meeting that a profit bonus of
at most EUR 100 per person per working month be paid for 2020 to the personnel
employed by the Group.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
[][]
IFRS IFRS
1-12/20 1-12/19
NET SALES 636,627 667,402
Increase -6,424 15,718
(+)/decrease (-) in
inventories of
finished goods and
work in progress
Other operating 3,521 3,046
income
Raw materials and -418,400 -447,390
services
Expenditure on -85,726 -92,693
employment-related
benefits
Depreciation and -24,631 -21,219
amortisation
Other operating -47,821 -57,563
expenses
OPERATING RESULT 57,146 67,301
Share of results of 86 305
associated companies
Financial income and -17,671 -1,032
expenses
RESULT BEFORE TAXES 39,561 66,574
Income taxes -7,277 -14,564
NET RESULT FOR THE 32,284 52,010
PERIOD
OTHER ITEMS INCLUDED
IN TOTAL
COMPREHENSIVE
RESULT:
Translation -968 2,373
differences related
to foreign units
TOTAL COMPREHENSIVE 31,316 54,383
RESULT FOR THE
PERIOD
Diluted and 1.15 1.86
undiluted earnings
per share[*]
IFRS IFRS
10-12/20 10-12/19
NET SALES 205,202 203,335
Increase -28,979 -13,508
(+)/decrease (-) in
inventories of
finished goods and
work in progress
Other operating 2,195 940
income
Raw materials and -119,749 -122,785
services
Expenditure on -24,765 -25,630
employment-related
benefits
Depreciation and -5,895 -5,596
amortisation
Other operating -14,301 -16,027
expenses
OPERATING RESULT 13,708 20,729
Share of results of 168 277
associated companies
Financial income and 2,965 468
expenses
RESULT BEFORE TAXES 16,841 21,474
Income taxes 796 -3,967
NET RESULT FOR THE 17,637 17,507
PERIOD
OTHER ITEMS INCLUDED
IN TOTAL
COMPREHENSIVE
RESULT:
Translation -2,545 -96
differences related
to foreign units
TOTAL COMPREHENSIVE 15,092 17,411
RESULT FOR THE
PERIOD
Diluted and 0.63 0.63
undiluted earnings
per share[*]
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
IFRS IFRS
ASSETS 31 Dec 20 31 Dec 19
NON-CURRENT ASSETS
Intangible assets 36,709 32,213
Goodwill 3,808 3,794
Property, plant and equipment 112,183 118,507
Financial assets 371 370
Investments in associated companies 832 849
Non-current receivables 839 1,196
Deferred tax assets 3,076 3,844
TOTAL NON-CURRENT ASSETS 157,818 160,773
CURRENT ASSETS
Inventories 142,137 153,158
Trade receivables 35,384 47,171
Income tax receivables 1,849 351
Other current receivables 13,165 16,646
Cash and cash equivalents 123,611 48,704
TOTAL CURRENT ASSETS 316,146 266,030
TOTAL ASSETS 473,964 426,803
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY
Share capital 7,000 7,000
Other reserves 3,460 3,460
Translation differences 4,431 5,399
Treasury shares -2 -2
Retained earnings 240,149 216,264
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 255,038 232,121
NON-CURRENT LIABILITIES
Interest-bearing liabilities 50,470 48,030
Deferred tax liabilities 1,137 1,407
Other non-current liabilities 41 23
TOTAL NON-CURRENT LIABILITIES 51,648 49,460
CURRENT LIABILITIES
Interest-bearing liabilities 64,055 33,652
Provisions 4,979 3,450
Tax liabilities for the period 1,312 3,021
Trade creditors and other current liabilities 96,932 105,099
TOTAL CURRENT LIABILITIES 167,278 145,222
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 473,964 426,803
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
IFRS IFRS
1-12/20 1-12/19
CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period 32,284 52,010
Adjustments:
Financial income and expenses 17,671 1,032
Share of the result of associated companies -86 -305
Depreciation and amortisation 24,631 21,219
Income taxes 7,277 14,564
Other adjustments 1,749 -790
Cash flow before changes in working capital 83,526 87,730
Change in working capital:
Change in trade receivables and other receivables 9,454 -6,996
Change in inventories 1,965 -24,187
Change in trade creditors and other liabilities -7,570 2,398
Change in provisions for liabilities and charges 1,529 -1,968
Interest received 97 301
Interest paid -1,068 -765
Other financial items -3,100 -882
Income taxes paid -10,043 -11,944
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 74,790 43,687
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -20,270 -28,567
Proceeds from sale of tangible and intangible assets 254 322
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -20,016 -28,245
CASH FLOWS FROM FINANCING ACTIVITIES
Withdrawal/Repayment of current loans 28,680 7,166
Withdrawal/Repayment of finance lease liabilities -1,268 -2,401
Dividends paid -8,400 -22,400
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) 19,012 -17,635
Change in cash and cash equivalents (A+B+C) 73,786 -2,193
Cash and cash equivalents on 1 Jan 48,704 51,105
Impact of exchange rate changes 1,121 -208
Cash and cash equivalents on 31 Dec 123,611 48,704
*) The company changed over to presenting the change in non-current receivables
included in the cash flow statement under item change in trade receivables and
other receivables. As a result, previously reported cash flows have been
adjusted to allow comparability. The previously reported cash flow from business
operations was EUR 42.9 million in the 2019 financial statements.
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 7,000 3,460 5,399 -2 216,264 232,121
1 JAN 2020
Translation -968 -968
differences
Result for the 32,284 32,284
period
Total comprehensive -968 32,284 31,316
income for the
period
Dividend -8,400 -8,400
distribution
SHAREHOLDERS' EQUITY 7,000 3,460 4,431 -2 240,149 255,038
31 DEC 2020
SHAREHOLDERS’ 7,000 3,462 3,026 0 186,667 200,155
EQUITY 1 JAN 2019
Translation 2 373 2 373
differences
Result for the 52 010 52 010
period
Total comprehensive 2 373 52 010 54 383
income for the
period
Matching Share Plan -2 -13 -15
Dividend -22,400 -22,400
distribution
Acquisition of -2 -2
treasury shares
SHAREHOLDERS' EQUITY 7,000 3,460 5,399 -2 216 264 232,121
31 DEC 2019
31 31
Dec Dec
20 19
1. LEASING 595 858
COMMITMENTS (EUR
1,000)
2. CONTINGENT 31 31
LIABILITIES (EUR Dec Dec
1,000) 20 19
Guarantees given on 20 20
behalf of others
Responsibility of 7,863 8,700
checking the VAT
deductions made on
real property
investments
Other commitments 14 159
TOTAL 7,897 8,879
3. PROVISIONS (EUR Guarantee
1,000) provision
1 January 2020 3,450
Provisions added 2,692
Provisions cancelled -1,163
31 December 2020 4,979
KEY FIGURES AND 31 31
RATIOS Dec Dec
20 19
R&D expenditure, 21.3 19.3
MEUR
Capital expenditure, 20.3 28.6
MEUR
as % of net sales 3.2 4.3
Average number of 1,782 1,761
employees
Order books, MEUR 174.9 256.8
Equity ratio, % 54.3 54.8
Diluted and 1.15 1.86
undiluted earnings
per share (EUR)
Equity per share 9.11 8.29
(EUR)
FORMULAE FOR FINANCIAL INDICATORS
Return on capital employed, %:
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. The calculation has
been adjusted for part-time employees.
Net gearing, %:
Interest-bearing financial liabilities – cash and cash equivalents
--------------------------------------------------------------------------------
---
Shareholders’ equity * 100
Equity ratio, %:
Shareholders’ equity + Non-controlling interests
------------------------------------------------------------------------
Balance sheet total - advance payments received * 100
Earnings per share:
Net result for the period - Non-controlling interests
--------------------------------------------------------------------------------
---------------------------
Average number of shares during the accounting period, adjusted for share issues
Equity per share:
Shareholders’ equity
--------------------------------------------------------------------------------
-------------
Number of shares on the balance sheet date, adjusted for share issues
ORDER INTAKE (EUR million) 1-12/20 1-12/19
Ponsse Group 581.7 642.2
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 been complied with. The same accounting principles were observed for the
closing of the books as for the annual financial statements dated 31 December
2019.
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.
Vieremä, 16 February 2021
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 Vidgrén 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.