Ponsse Plc
Interim report
22 October 2024, 9:00 a.m.
Ponsse's Interim Report for 1 January - 30 September 2024
July-September:
- Net sales amounted to EUR 169.3 (169.2) million
- Operating profit totalled EUR 18.5 (6.5) million, equalling 11.0 (3.9) per
cent of net sales
January-September:
- Net sales amounted to EUR 526.9 (579.0) million
- Operating profit totalled EUR 19.1 (33.4) million, equalling 3.6 (5.8) per
cent of net sales
- Net result was EUR 0.3 (22.4) million
- Earnings per share were EUR 0.01 (0.80)
- Order books stood at EUR 199.1 (282,3) million at the end of period under
review
- Cash flow from business operations was EUR 36.5 (-4.8) million
- Equity ratio was 55.1 (54.8) per cent at the end of period under review
- Ponsse published a profit guidance on 9 August 2024: The company's euro
-denominated operating profit is estimated to be significantly lower in 2024
than in 2023 (EUR 47.2 million).
PRESIDENT AND CEO JUHO NUMMELA:
Economic uncertainty and challenges in the forest industry continued to affect
the demand for PONSSE forest machines. During the past quarter, the busy season
of trade fairs and customer events around the world brought a momentary boost to
order flows. In the third quarter, we achieved a normal level of order flow
compared to the corresponding quarters and orders received were a pleasant EUR
157.9 million. The company's order book at the end of the period was EUR 199.1
(282.3) million.
However, our order book is spread over a longer period and there are clear signs
that the market is calming down. Our customers' working conditions are
reasonably good around the world, but investment activity has declined. The same
situation can be observed in the demand for used machines. The weakening market
situation is reflected in a reduction in the order book and order flow, which
means that the Ponsse factory will have to adjust to the demand situation during
the rest of the year. The operational performance of the factory is excellent
and the availability of parts is generally good.
Ponsse's net sales for the current quarter amounted to EUR 169.3 (169.2)
million. We were able to deliver new machines to our customers very well, and
invoicing of new machines was strong. By contrast, the turnover from used
machine sales and service sales was on a downward trend. Epec continues to
suffer from the general slowdown in the machine manufacturing industry and from
the destocking of some of its customers' high inventory levels.
Our relative profitability for the quarter was an excellent 11.0 (3.9) percent.
A near-normal level of turnover, combined with development of productivity,
improved our situation. Our productivity has moved in the right direction, but
we are not yet on target with the development of costs. From an operating profit
perspective, the Full Service losses related to the operations of Ponsse's
Brazilian country organisation have not impacted the result of the third
quarter. Provisions made in the first half of the year are reversed against
potential losses on the contract where necessary. During the past quarter, Full
Service's operational performance improved and the provision reversal was lower
than expected. Compared to the previous situation, the past quarter was a
success for us.
The company's cash flow was EUR 36.5 (-4.8) million. Our stock of used machines
was high, but otherwise the situation eased in terms of capital tied up in
inventories. Our sales network is constantly working to boost the sale of used
machines.
During the past quarter, Ponsse was actively engaged in different market areas
and our customer focus delivered results. In response to customer needs, we will
continue to make controlled investments in product technology and digital
services to ensure a competitive product offering in all operating environments.
Our new, area-based, global operating model is working increasingly well and
will strengthen our competitiveness.
NET SALES
Consolidated net sales for the period under review amounted to EUR 526.9 (579.0)
million, which is 9.0 per cent less than in the comparison period. International
business operations accounted for 74.1 (73.8) per cent of net sales.
Net sales were regionally distributed as follows: Nordic countries and the
Baltics 46.1 (44.9) per cent, Central Europe and Southern Europe 22.8 (21.7) per
cent, North America 13.4 (14.1) per cent, South America 15.1 (16.1) per cent and
Asia, Australia and Africa 2.5 (3.1) per cent.
1-9/24 1-9/23
Net sales from continuing operations 526,927 579,010
Net sales from discontinued operations 0 3,576
Net sales total 526,927 582,586
PROFIT PERFORMANCE
The operating profit amounted to EUR 19.1 (33.4) million. The operating profit
equalled 3.6 (5.8) per cent of net sales for the period under review. For the
period 1-6/2024, the operating profit included a cost of EUR 18.6 million
related to the Brazilian Full Service contract, of which the impact of the
realised loss was EUR 8.4 million and the change in the provision related to the
fulfilment of obligations under the contract was EUR 10.2 million. For the
period 7-9/2024, the provision was reversed against realised losses by EUR 2.6
million, meaning that the Full Service contract had no impact on the operating
profit of the third quarter. Overall, the Brazilian Full Service contract's
impact on profit for the period under review was EUR 15.9 million. The contract
is fixed-term and will expire at the end of 2026.
1-9/24 1-9/23
Operating profit from continuing operations 19,140 33,361
Operating profit from discontinued operations 0 1,247
Operating profit total 19,140 34,608
Consolidated return on capital employed (ROCE) stood at 3.7 (7.6) per cent.
Staff costs for the period totalled EUR 81.6 (86.0) million. Other operating
expenses stood at EUR 73.6 (62.6) million. The cost impact of the loss-making
Full Service contract of the Brazilian country organisation is included in other
operating expenses. The net total of financial income and expenses amounted to
EUR -11.1 (-1.5) million. Exchange rate gains and losses due to currency rate
fluctuations were recognised under financial items, having a net impact of EUR
-7.5 (1.2) million. During the period under review, EUR 0.1 million of
revaluation profits on interest rate swaps were recognised in the result. The
parent company's receivables from subsidiaries stood at EUR 144.8 (126.5)
million net. Receivables from subsidiaries mainly consist of trade receivables.
Result for the period under review totalled EUR 0.3 (22.4) million. Diluted and
undiluted earnings per share (EPS) came to EUR 0.01 (0.80).
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 564.3 (588.6) million. Inventories stood at
EUR 237.8 (258.3) million. Trade receivables totalled EUR 56.0 (61.5) million,
while cash and cash equivalents stood at EUR 63.2 (49.4) million. Group
shareholders' equity stood at EUR 309.9 (321.0) million and parent company
shareholders' equity (FAS) at EUR 303.8 (277.1) million. The amount of interest
-bearing liabilities was EUR 106.7 (119.5) million. The company has ensured its
liquidity by credit facility limits and commercial paper programs. Group's loans
from financial institutions are non-collateral bank loans without financial
covenants. Consolidated net liabilities totalled EUR 43.5 (70.1) million, and
the debt-equity ratio (net gearing) was 14.0 (21.8) per cent. The equity ratio
stood at 55.1 (54.8) per cent at the end of the period under review.
Cash flow from operating activities amounted to EUR 36.5 (-4.8) million. Cash
flow from investment activities came to EUR -16.5 (-26.4) million.
ORDER INTAKE AND ORDER BOOKS
Order intake for the period totaled EUR 493.9 (507.6) million, while period-end
order books were valued at EUR 199.1 (282.3) million.
DISTRIBUTION NETWORK
In the new operating model, which entered into force at the beginning of June
2024, Ponsse shifted to a global organisational structure and reporting lines.
With this operating model, Ponsse will secure globally harmonised and effective
operations that respond to future customer needs. At the same time, the company
aims to increase its competitiveness and cost-effectiveness, and to harmonise
its practices. With focus on sales and maintenance, the organisation will be
divided into five market areas: 1) Nordic countries and the Baltics; 2) Central
Europe and Southern Europe; 3) South America; 4) North America; and 5) Asia,
Australia and Africa.
R&D AND CAPITAL EXPENDITURE
Group's R&D expenses during the period under review totalled EUR 17.9 (21.4)
million, of which EUR 6.7 (8.2) million was capitalised.
Investments during the period under review totalled EUR 16.9 (27.6) million. In
addition to capitalised R&D expenses, they consisted of investments in buildings
and ordinary investments in machinery and equipment.
PERSONNEL
The Group had an average staff of 2,103 (2,106) during the period and employed
2,057 (2,113) people at period-end.
SHARE-BASED INCENTIVE PLANS
The Board of Directors of Ponsse Plc approved two new Ponsse Group's share-based
incentive plans in 2023. A stock exchange release regarding the incentive plans
was published on 3 March 2023. 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. The Board of Directors of Ponsse Plc decided on new
performance periods of share-based incentive plans in June 2024 and published a
stock exchange release about them on 11 June 2024.
The CEO Performance-Based Share Ownership Plan
The CEO plan consists of five performance periods, calendar years 2023, 2023
-2024, 2023-2025, 2024-2026 and 2025-2027. A restriction period is included in
performance periods 2023 and 2023-2024, which begins from the reward payment and
ends on 31 December 2025. The matching reward will be paid by the end of May
2024, 2025 and 2026. The matching shares delivered as a matching reward cannot
be transferred during a restriction period that will end on 31December 2025, 31
December 2026 and 31 December 2027. The performance-based reward will be paid by
the end of May after the end of each performance period. The shares received as
reward based on performance periods 2023 and 2023-2024 cannot be transferred
during the restriction period, i.e. 31 December 2025. During the performance
period 2024-2026 of the CEO Performance-Based Share Ownership Plan, the rewards
are based on the group's operating result, revenue, personnel satisfaction and
injury frequency (LTIF). The amount of rewards to be paid based on the
performance period 2024-2026 will correspond to an approximate maximum total of
50000 Ponsse Plc shares, including also the portion to be paid in cash (gross
reward). The performance-based bonus for the 2023 performance period was paid in
June 2024 and its cost effect to the company was EUR 0.4 million.
Key Employee Performance-Based Matching Share Plan
The key employee plan consists of three performance periods, each lasting for
three calendar years, performance periods 2023-2025, 2024-2026 and 2025-2027.
The matching reward will be paid in 2023, 2024 and 2025 after the acquisition of
the investment shares and confirmation of reward, as soon as practically
possible. The matching shares delivered as a matching reward cannot be
transferred during a restriction period that will end on 31December 2025, 31
December 2026 and 31 December 2027. The performance-based reward will be paid by
the end of May after the end of each performance period.
For the restriction periods that started in 2023, the total cost effect of the
share-based incentive plans is estimated to be around EUR 2.0 million in the
years 2023-2025.
During the performance period 2024-2026 of the Key Employee Performance-Based
Matching Share Plan, the rewards are based on the group's operating result,
revenue, personnel satisfaction and injury frequency (LTIF). The amount of
rewards to be paid based on the performance period 2024-2026 will amount to a
maximum total of 60000 Ponsse Plc shares (net reward). In addition, the company
pays the taxes and statutory social security contributions arising from the
reward to participants in connection with the reward payment. The estimate
includes the matching rewards to be paid in 2024. Key employees, including the
Management Team members but excluding the President and CEO, belong to the
target group of the plan. During the period under review, there were no expenses
related to the share-based incentive plan.
SHARE PERFORMANCE
The company's registered share capital consists of 28,000,000 shares. The
trading volume of Ponsse Plc shares for 1 January - 30 September 2024 totalled
625,666, accounting for 2.23 per cent of the total number of shares. Share
turnover amounted to EUR 14.7 million, with the period's lowest and highest
share prices amounting to EUR 20.50 and EUR 27.10, respectively.
At the end of the period, shares closed at EUR 21.60, and market capitalisation
totalled EUR 604.8 million.
At the end of the period under review, the company held 15,213 treasury shares.
ANNUAL GENERAL MEETING 2024
A separate release was issued on 9 April 2024 regarding the authorizations given
to the Board of Directors and other resolutions at the AGM.
SUSTAINABILITY
Ponsse has defined key sustainability goals, the realisation of which are
promoted through annual, activity-specific targets and actions as part of the
company's strategy process. The key objectives are to improve the well-being of
people; innovate sustainable solutions that respect nature; develop operations
in a way that respects the natural environment; and be a reliable partner for
whom community is an asset.
During the third quarter, Ponsse continued to prepare for the EU's Corporate
Sustainability Reporting Directive (CSRD), which came into force at the
beginning of 2024. The company's Board of Directors reviewed and approved the
double materiality assessment conducted during spring 2024 as the basis for the
company's sustainability reporting. As a result of the assessment, Ponsse will
be reporting in its 2024 annual report according to the following ESRS
sustainability reporting standards: climate change E1, biodiversity and
ecosystems E4, resource use and circular economy E5, own workforce S1, consumers
and end-users S4, and business conduct G1. In addition, the company complies
with the multidisciplinary standards ESRS 1 and ESRS 2, which define general
reporting requirements and information.
At the end of July, the Ponsse factory transitioned to using biogas. Biogas
replaces the liquefied petroleum gas (LPG) used in the factory paint shop and is
a significant step towards achieving carbon neutrality goal in Ponsse's
production. During the third quarter, Ponsse signed a service contract for the
purchase of CO2-free electricity for the year 2025. Under the agreement, the CO2
-free electricity purchased by the company is 100% nuclear power, the source of
which is verified by guarantees of origin of electricity in accordance with EU
and Finnish legislation. The agreement covers the company's electricity supply
in Finland.
In the EcoVadis sustainability assessment, Ponsse received an overall score of
56/100 ("committed"). Ponsse's sustainability was assessed in four areas:
environment and climate, employees and human rights, ethical practices and
sustainable sourcing.
The development of Ponsse product solutions always takes into account their
environmental impact. The company presented a material concept made from SSAB's
fossil-free steel at FinnMETKO 2024 fair at the end of August. The workability
and properties of fossil-free steel were investigated in the production of the
load compartment of the PONSSE Buffalo forwarder as part of the FORWARD27
ecosystem project, which investigates low-emission harvesting solutions and
driver assistance solutions. New models of the multi-purpose PONSSE Wisent and
PONSSE Elk forwarders were launched, with an even weight distribution and
geometry of movements designed to meet the needs of thinning sites. A new
precision positioning innovation, PONSSE High-Precision Positioning, allows the
exact position of a harvester and harvester head to be displayed in the map view
of the forest machine information system, and enables better use of tree
-specific information. The solution shows the driver the position of the
harvester head with an accuracy of less than 0.5 metres, making the driver's job
easier, for example by ensuring that harvesting takes place precisely in a
planned harvesting area and that vulnerable habitats can be taken into account.
The exact location of the harvested trunks is recorded in the harvester's
information systems' production file, enabling accurate reporting of insect or
rot damage occurrence, for example. The forwarder's driver following a harvester
can see the harvester's path on the map accurately. The use of navigation and
positioning technology makes harvesting more efficient and allows monitoring of
the harvested stand.
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
The main short-term risks are related to the global geopolitical situation, to a
further economic slowdown, and to relatively high interest rate levels. The
geopolitical situation increases uncertainty through financial market
operability, sanctions, and growing cybersecurity threats.
The risks in the financial market may also increase the volatility of developing
countries' foreign exchange markets. The continued instability of the world
economy and growing financing costs may also reduce demand for forest machines.
Additionally, possible industrial action measures could result in significant
financial losses for Ponsse. These financial risks relate in particular to the
functionality of the production and supply chains.
In the challenging situation, Ponsse's strong financial position is important.
In terms of financing, Ponsse has carried out all measures necessary to ensure
business continuity, and financial situation is regularly evaluated. The key
objective of the company's financial risk management policy is to manage
liquidity, interest, and currency risks. The company's financial position and
liquidity have remained strong due to binding credit limit facilities agreed
with several financial institutions. The effect of adverse changes in interest
rates is minimized by utilizing credit linked to different reference rates and
by concluding interest rate swaps. The effects of currency rate fluctuations are
partly mitigated through derivative contracts.
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.
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.
Global supply chain disruptions can make it more difficult to manage PONSSE
forest machine production schedules and it may tie up more capital in the
company's supply chain and increase the risks related to working capital
management.
In order to strengthen cybersecurity, Ponsse has clarified its software update
policy and user manuals. We improve our ability to detect and react to abnormal
activity on our networks, and we regularly test our digital services with our
partners against cyber-attacks. The implementation of the NIS2 Cybersecurity
Directive is moving ahead as planned.
OUTLOOK FOR THE FUTURE
The company's euro-denominated operating profit is estimated to be significantly
lower in 2024 than in 2023 (EUR 47.2 million).
Due to the uncertainty in the market, the company continues to carefully
consider investments, maintains cost controls in place, and further develops its
operational model to improve competitiveness. The company is closely monitoring
changes in the operating environment and in customers' operating conditions. Due
to the weak market situation, high inventories of used machines, and reduced
order books, the factory's capacity needs to be adapted to the current demand.
The status of the Full Service contract of Ponsse's Brazilian country
-organisation remains under close scrutiny and the company continues to take
measures to improve the situation.
EVENTS AFTER THE PERIOD
There are no known events after the end of the reporting period that would
require either adjustments to the information presented for the financial year
or disclosure of additional information.
PONSSE GROUP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR 1,000)
1-9/24 1-9/23 1-12/23
NET SALES 526,927 579,010 821,800
Increase (+)/decrease (-) in 12,290 15,591 -3,545
inventories of finished goods and work
in progress
Other operating income 4,524 3,807 5,593
Raw materials and services -342,720 -393,050 -534,497
Expenditure on employment-related -81,614 -85,997 -115,262
benefits
Depreciation and amortisation -26,677 -23,377 -31,337
Other operating expenses -73,590 -62,623 -95,599
OPERATING PROFIT 19,140 33,361 47,153
Share of results of associated 164 245 255
companies
Financial income and expenses -11,119 -1,506 -4,459
RESULT BEFORE TAXES 8,185 32,100 42,949
Income taxes -7,863 -9,687 -12,924
NET RESULT FROM THE CONTINUING 322 22,414 30,026
OPERATIONS
Net result from the discontinued 0 -11,133 -11,149
operations
NET RESULT FOR THE PERIOD 322 11,281 18,877
OTHER ITEMS INCLUDED IN TOTAL
COMPREHENSIVE RESULT:
Translation differences related to 3,172 4,906 3,001
foreign units
TOTAL COMPREHENSIVE RESULT FOR THE 3,494 16,187 21,878
PERIOD
Diluted and undiluted earnings per 0.01 0.80 1.07
share from continuing operations
Diluted and undiluted earnings per 0 -0.40 -0.40
share from discontinued operations
Diluted and undiluted earnings per 0.01 0.40 0.67
share
7-9/24 7-9/23
NET SALES 169,254 169,182
Increase (+)/decrease (-) in 137 8,488
inventories of finished goods and work
in progress
Other operating income 1,181 1,710
Raw materials and services -101,467 -118,873
Expenditure on employment-related -23,566 -25,403
benefits
Depreciation and amortisation -8,969 -7,813
Other operating expenses -18,037 -20,764
OPERATING PROFIT 18,534 6,527
Share of results of associated -35 101
companies
Financial income and expenses -2,746 -3,649
RESULT BEFORE TAXES 15,752 2,980
Income taxes -3,714 -2,334
NET RESULT FROM THE CONTINUING 12,038 646
OPERATIONS
Net result from the discontinued 0 -12,176
operations
NET RESULT FOR THE PERIOD 12,038 -11,530
OTHER ITEMS INCLUDED IN TOTAL
COMPREHENSIVE RESULT:
Translation differences related to -1,061 10,163
foreign units
TOTAL COMPREHENSIVE RESULT FOR THE 10,977 -1,367
PERIOD
Diluted and undiluted earnings per 0.43 0.02
share from continuing operations
Diluted and undiluted earnings per 0 -0.44
share from discontinued operations
Diluted and undiluted earnings per 0.43 -0.41
share
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (EUR 1,000)
30 Sep 24 30 Sep 23 31 Dec 23
ASSETS
NON-CURRENT ASSETS
Intangible assets 49,455 53,093 52,736
Goodwill 6,658 5,677 6,698
Property, plant and equipment 115,060 117,509 119,017
Financial assets 374 375 374
Investments in associated companies 1,036 1,057 1,067
Non-current receivables 219 3,308 3,229
Deferred tax assets 8,449 7,013 8,446
TOTAL NON-CURRENT ASSETS 181,251 188,032 191,569
CURRENT ASSETS
Inventories 237,843 258,297 240,837
Trade receivables 55,964 61,466 69,129
Income tax receivables 1,378 1,761 1,249
Other current receivables 24,729 29,705 29,225
Cash and cash equivalents 63,152 49,362 74,002
TOTAL CURRENT ASSETS 383,067 400,593 414,443
TOTAL ASSETS 564,318 588,625 606,011
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 7,000 7,000 7,000
Other reserves 3,833 3,460 3,460
Translation differences 18,873 17,606 15,702
Treasury shares -476 -463 -463
Retained earnings 280,670 293,436 296,101
EQUITY OWNED BY PARENT COMPANY SHAREHOLDERS 309,900 321,039 321,799
NON-CURRENT LIABILITIES
Interest-bearing liabilities 66,178 59,493 66,637
Deferred tax liabilities -939 838 1,120
Other non-current liabilities 6,242 80 6,284
TOTAL NON-CURRENT LIABILITIES 71,480 60,410 74,041
CURRENT LIABILITIES
Interest-bearing liabilities 40,506 60,004 52,816
Provisions 21,079 10,860 14,690
Tax liabilities for the period 4,726 2,708 1,257
Trade creditors and other current liabilities 116,627 133,603 141,407
TOTAL CURRENT LIABILITIES 182,937 207,175 210,171
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 564,318 588,625 606,011
CONSOLIDATED STATEMENT OF CASH FLOWS (EUR 1,000)
Continuing and discontinued operations
1-9/24 1-9/23 1-12/23
CASH FLOWS FROM OPERATING ACTIVITIES:
Net result for the period 322 11,281 18,877
Adjustments:
Financial income and expenses 11,119 13,692 16,647
Change in provisions 7,975 -190 3,677
Share of the result of associated companies -164 -245 -255
Depreciation and amortisation 26,677 23,444 31,402
Income taxes 7,863 9,880 13,115
Other adjustments -2,300 -1,298 1,304
Cash flow before changes in working capital 51,492 56,565 84,767
Change in working capital:
Change in trade receivables and other receivables 16,533 -6,204 -17,531
Change in inventories 1,633 -25,837 -10,166
Change in trade creditors and other liabilities -22,502 -12,870 -4,451
Interest received 248 394 960
Interest paid -3,968 -2,458 -3,927
Other financial items -305 394 -294
Income taxes paid -6,650 -14,817 -18,966
NET CASH FLOWS FROM OPERATING ACTIVITIES (A) 36,481 -4,833 30,391
CASH FLOWS USED IN INVESTING ACTIVITIES
Investments in tangible and intangible assets -16,884 -27,596 -35,892
Proceeds from sale of tangible and intangible assets 405 1,169 1,282
Acquisition of subsidiaries* 0 0 -1,458
NET CASH FLOWS USED IN INVESTMENT ACTIVITIES (B) -16,480 -26,427 -36,068
CASH FLOWS FROM FINANCING ACTIVITIES
Withdrawal/Repayment of current loans -12,095 14,230 14,121
Withdrawal of non-current loans 0 10,000 10,000
Repayment of finance lease liabilities -3,951 -2,896 -4,066
Dividends paid -15,400 -16,794 -16,794
NET CASH FLOWS FROM FINANCING ACTIVITIES (C) -31,447 4,540 3,261
Change in cash and cash equivalents (A+B+C) -11,446 -26,720 -2,416
Cash and cash equivalents on 1 Jan 74,002 76,545 76,545
Impact of exchange rate changes 596 -463 -127
Cash and cash equivalents on 30 Jun/31 Dec 63,152 49,362 74,002
*) Acquisition of Bram Engineers B.V. (now Epec B.V.), the Netherlands.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (EUR 1,000)
A = Share
capital
B = 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' 7,000 3,460 15,702 -463 296,101 321,799
EQUITY 1
JAN 2024
Comprehensive
result:
Net result 322 322
for the period
Other items
included in
total
comprehensive
result:
Translation 3,171 3,171
differences
Total 3,171 322 3,493
comprehensive
result for the
period
Direct entries -352 -352
to retained
earnings
Transactions
with
shareholders
Share Plan
Dividend -15,400 -15,400
distribution
Treasury 373 -13 360
shares, change
Transactions 373 -13 -15,400 -15,040
with
shareholders in
total
Other changes
SHAREHOLDERS' 7,000 3,833 18,873 -476 280,671 309,900
EQUITY 30
SEP 2024
SHAREHOLDERS' 7,000 3,460 12,701 -274 298,926 321,813
EQUITY 1
JAN 2023
Comprehensive
result:
Net result 11,281 11,281
for the period
Other items
included in
total
comprehensive
result:
Translation 4,905 4,905
differences
Total 4,905 11,281 16,186
comprehensive
result for the
period
Direct entries 22 22
to retained
earnings
Transactions
with
shareholders
Share Plan 343 343
Dividend -16,793 -16,793
distribution
Acquisition -532 -532
of treasury
shares
Transactions -189 -16,793 -16,982
with
shareholders in
total
Other changes
SHAREHOLDERS' 7,000 3,460 17,606 -463 293,436 321,039
EQUITY 30
SEP 2023
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, but some of the IAS 34
requirements 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 2023, except for the IAS/IFRS standard and interpretation
changes that entered into force on 1 January 2024. These standard and
interpretation changes did not have a material impact on the interim report.
Ponsse has classified the Russian operations subject to trade as assets held for
sale and reported them as discontinued operations in 2023. Unless otherwise
specified, the figures presented in this interim report refer to continuing
operations.
The figures presented in the stock release have not been audited.
The figures presented in the stock release have been rounded and may therefore
differ from those given in the official financial statements.
Ponsse is preparing for the adoption of Pillar 2 minimum tax rules and is
currently assessing its impacts.
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.
30 Sep 24 30 Sep 23 31 Dec 23
1. LEASING COMMITMENTS (EUR 1,000) 1,228 1,081 964
2. CONTINGENT LIABILITIES (EUR 1,000) 30 Sep 24 30 Sep 23 31 Dec 23
Responsibility of checking the VAT 4,813 5,450 5,349
deductions made on real property
investments
Other commitments 275 237 139
TOTAL 5,089 5,688 5,488
3. PROVISIONS (EUR 1,000) Guarantee provision Other provisions Total
1 January 2024 4,395 10,295 14,690
Provisions added 1,349 10,173 11,522
Provisions cancelled -382 -2,644 -3,026
Exchange rate difference 0 -2,107 -2,107
30 September 2024 5,362 15,717 21,079
The Group has recognized a provision in the item of other provisions based on a
Full Service contract entered into by the Brazilian country-organization 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. The contract is
fixed-term and will expire at the end of 2026.
KEY FIGURES AND RATIOS 30 Sep 24 30 Sep 23 31 Dec 23
R&D expenditure, MEUR 17.9 21.4 29.5
Capital expenditure, MEUR 16.9 27.6 35.9
as % of net sales 3.2 4.8 4.4
Average number of employees 2,103 2,106 2,106
Order books, MEUR 199.1 282.3 232.1
Equity ratio, % 55.1 54.8 53.3
Diluted and undiluted earnings per 0.01 0.80 1.07
share (EUR), continuing operations
Diluted and undiluted earnings per 0 -0.40 -0.40
share (EUR), discontinued
operations
Diluted and undiluted earnings per 0.01 0.40 0.67
share (EUR)
Equity per share (EUR) 11.07 11.47 11.49
Order intake, MEUR 493.9 503.4 697.6
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, 22 October 2024
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.