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No Image No Image Half Year Financial Report January - June 2025 14.8.2025 Esa Harju, CEO Mervi Kerkelä-Hiltunen, CFO
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No Image Disclaimer This presentation has been prepared by the Company. The information on which it is based has not been independently verified by any other person. This presentation is not intended to provide the basis of any investment decision and should not be considered as a recommendation by the Company or any other person to the recipients of the presentation. Each person should make his/her own independent assessment of the Company after making such investigations as he/she deems necessary. This presentation does not constitute an offer of or invitation to acquire any shares or other securities in the Company. Nothing in this presentation is, or should be relied upon as, a promise or representation as to the future.
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Teleste International technology company building a networked and safe society while minimizing environmental impacts. Value Drivers • We enable fast broadband services • We guide smooth public transport • We ensure safety in public spaces Public Safety and Mobility Broadband Networks
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No Image Our businesses and customers Public Safety and MobilityBroadband Networks Our customers serve 100 million Internet-users Other NAM customers In public transportation 1.5 billion passengers using our technology annually
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No Image H1 2025 highlights H1 2025 financial review
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No Image No Image Key Figures Q2 2025 Orders received and net sales increased. Profit improved significantly. EUR million 4-6 2025 4-6 2024 change 1-6 2025 1-6 2024 change 1-12 2024 Net sales 35.9 29.5 21.5 % 68.0 66.1 2.9 % 132.5 Adjusted EBITDA 3.4 1.6 116.0 % 6.1 4.6 31.7 % 9.3 Adjusted EBIT 2.2 0.4 384.4 % 3.6 2.0 81.2 % 4.2 EBIT 2.0 -0.5 n/a 3.5 -0.9 n/a -5.4 Cashflow from operations 4.9 -0.2 n/a 6.4 7.1 -9.2 % 12.4 Orders received 39.5 26.7 47.7 % 76.5 57.2 33.7 % 124.9 Order book 126.8 117.1 8.3 % 118.3
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No Image Orders received Q2 2025 Orders grew by 47.7%, driven by both business segments Orders received EUR million Broadband Networks 62% Public Safety and Mobility 38% Orders received by business units, 1-6 2025 Broadband Networks order intake increased by 36.9%, driven by both Europe and North America. Public Safety and Mobility order intake increased by 67.3%, driven by stronger order intake in rail business. (42%) (58%)
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No Image No Image Net Sales Q2 2025 Net sales increased by 21.5%, driven by North America growth 40,1 29,5 35,9 0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0 45,0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net sales EUR million Net sales, 1-6 2025
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No Image No Image Adjusted operating result Q2 2025 Adjusted EBIT and EBIT improved significantly 0,6 0,4 2,2 -6,0 -5,0 -4,0 -3,0 -2,0 -1,0 0,0 1,0 2,0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Adjusted EBIT EUR million 0,1 -0,1 2,0 -6,0 -5,0 -4,0 -3,0 -2,0 -1,0 0,0 1,0 2,0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 EBIT EUR million
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Market outlook for 2025 Broadband Networks: • Demand in the European market is expected to remain at the previous year's level. The first investments in DOCSIS 4.0 have started during 1H 2025. • The North American investments in DOCSIS 4.0 technology are expected to significantly increase market demand. However, the US tariffs are causing uncertainty in the short-term. • The North American market's share of our net sales is expected to continue to grow. Public Safety and Mobility: • We expect moderate and steady market growth in both information and security systems. • The strategic focus is particularly on public transport information and security solutions, as well as selected security solutions for other public infrastructure. • We are looking for profitable growth and increasing value creation in all product categories.
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Financial outlook for 2025 (unchanged) Teleste estimates revenue for 2025 to be between 135 and 150 million euros, with adjusted operating profit in the range of 4 to 7 million euros. United States import tariffs continue to create uncertainty and may impact profitability in the short term.
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The company aims for: • Profitable growth in both of Teleste's business segments (Broadband Networks and Public Safety and Mobility). • An average annual revenue growth of 10% until 2030. There may be variations between individual years. • An adjusted operating profit margin of 7% to 12% by 2030. Teleste does not consider this long-term strategic growth target to be market guidance for any specific year. Onko valmius laittaa tällainen Mervi / BoD Long-term strategic growth targets until 2030 Press release 22.4.2025
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No Image H1 2025 highlights H1 2025 financial review
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No Image No Image Teleste Group, H1 2025 Orders received and net sales increased. Profit improved significantly. EUR million 4-6 2025 4-6 2024 Change 1-6 2025 1-6 2024 Change 2024 Net sales 35.9 29.5 21.5 % 68.0 66.1 2.9 % 132.5 Adjusted EBITDA 3.4 1.6 116.0 % 6.1 4.6 31.7 % 9.3 Adjusted EBITDA, % 9.4 % 5.3 % 4.1 ppt 8.9 % 7.0 % 2.0 ppt 7.0 % Adjusted EBIT 1) 2.2 0.4 384.4 % 3.6 2.0 81.2 % 4.2 Adjusted EBIT, % 6.0 % 1.5 % 4.5 ppt 5.3 % 3.0 % 2.3 ppt 3.2 % EBIT 2.0 -0.5 n/a 3.5 -0.9 n/a -5.4 Operating result, % 5.6 % -1.7 % 7.3 ppt 5.1 % -1.3 % 6.4 ppt -4.1 % Net result for the period 0.3 -1.1 n/a 0.9 -1.6 n/a -6.1 Earnings per share, EUR 0.02 -0.06 n/a 0.06 -0.08 n/a -0.32 Cash flow from operations 4.9 -0.2 n/a 6.4 7.1 -9.2 % 12.4 Orders received 39.5 26.7 47.7 % 76.5 57.2 33.7 % 124.9 Order book 126.8 117.1 8.3 % 118.3 Personnel (average) 635 689 -7.8 % 630
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No Image Group Financials, H1’2025 • Order intake continued strong in both segments. Broadband Networks growth was driven by North America with continuing recovery in Europe, and Public Safety and Mobility growth by rail business. Increase in Q2’25 47.7% and H1’25 33.7% • Net Sales grew year on year primarily due to Broadband Networks in North America, while Europe was stronger as well. Public Safety and mobility’s grew in Q2’25, while H1’25 was stable. • Cumulative Adjusted EBIT almost doubled compared to previous years, due to improved Net Sales and gross margin, as well as cost savings since Q4’23. Orders received Q2’25 Net Sales Q2’25 Net Sales by geography H1’25 Cumulative Adjusted EBIT H1’25
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No Image No Image Operating segments H1 2025 Broadband Networks had strong growth and profitability improved. Public Safety and Mobility had strong order intake and significant profitability improvement. Broadband Networks 4-6 2025 4-6 2024 Change 1-6 2025 1-6 2024 Change 2024 Net sales, MEUR 22.6 17.0 33.4 % 42.0 40.1 4.9 % 78.2 Adjusted EBITDA, MEUR 3.4 1.6 118.1 % 5.5 4.9 10.2 % 8.9 Adjusted EBITDA, % 15.2 % 9.3 % 5.9 % 13.0 % 12.3 % 0.6 % 11.4 % Adjusted EBIT, MEUR 2.8 1.1 159.5 % 4.2 3.6 15.1 % 6.3 Adjusted EBIT, % 12.5 % 6.4 % 6.1 % 10.0 % 9.1 % 0.9 % 8.0 % Orders received, MEUR 23.6 17.3 36.9 % 47.8 33.2 44.3 % 74.8 Order book, MEUR 30.8 21.4 43.6 % 25.0 Public Safety and Mobility 4-6 2025 4-6 2024 Change 1-6 2025 1-6 2024 Change 2024 Net sales, MEUR 13.2 12.6 5.4 % 26.0 26.0 -0.1 % 54.3 Adjusted EBITDA, MEUR 1.1 1.0 14.9 % 2.9 1.9 54.2 % 4.5 Adjusted EBITDA, % 8.4 % 7.7 % 0.7 % 11.2 % 7.3 % 3.9 % 8.2 % Adjusted EBIT, MEUR 0.5 0.3 50.1 % 1.7 0.6 197.6 % 2.0 Adjusted EBIT, % 4.0 % 2.8 % 1.2 % 6.6 % 2.2 % 4.4 % 3.7 % Orders received, MEUR 15.8 9.5 67.3 % 28.7 24.1 19.2 % 50.1 Order book, MEUR 96.0 95.6 0.4 % 93.3
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No Image Broadband Networks, H1’2025 • Order intake continued strengthening in North America and also in Europe. • Net Sales increase primarily due to deliveries of 1.8 GHz DOCSIS 4.0 -compliant intelligent amplifiers to North America and recovery in Europe. • Adjusted EBIT improved as a result of stronger Net Sales, efficiency gains from gross margin and different product mix, as well as implemented cost saving measures since Q4’23. Savings were partly offset by moderate investments to North America. Orders received Q2’25 Net Sales Q2’25 Net Sales by geography H1’25 Cumulative Adjusted EBIT H1’25
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No Image Public Safety and Mobility, H1’2025 • The order intake strengthened significantly year-on-year in Q2’25 +67.3% and in H1’25 +19.2%. Orders from train manufacturers showed particularly strong growth, partially reflecting the lower second quarter in the comparison period. Orders from public transport operators also increased. • Net Sales increased Q2’25 + 5.4% and was stable compared to H1’25. Q2’25 increase was driven by deliveries to public transport operators, which increased notably on the second quarter from the comparison period. In addition, H1’25 Net Sales increased due to favorable development in video security business, particularly in North America and Middle East. • Cumulative Adjusted EBIT grew to 1.7 (0.6) million EUR as a result of favorable product mix and efficiencies lowering material and production service costs and positive revenue development. Orders received Q2’25 Net Sales Q2’25 Net Sales by geography H1’25 Cumulative Adjusted EBIT H1’25
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No Image No Image Balance sheet 30 June 2025, EUR million Net working capital at similar level year-on-year, interest bearing net debt decreased 19 Assets Equity and liabilities Intangibles decreased 4,9 million due to impairment on R&D capitalizations in Q4 2024. Net Working Capital at similar level to Q2 2024. Equity decreased due to R&D impairment in Q4 2024, partly offset by profitable quarters. Interest bearing debt decreased by EUR 2.0 million along with refinancing arrangement and efficient use of RCF facilities. Interest-bearing Net Debt decreased to EUR 22.9 million. Cash and unused credit facilities amounted to EUR 24.3 million. 12,3 9,0 13,1 14,0 20,9 19,5 25,0 28,7 11,4 12,0 40,0 44,9 122,7 128,1 30/06/2025 30/06/2024 Intangibles Tangibles Inventories Trade receivables Other receivables Cash 17,2 20,6 4,9 4,6 13,7 11,1 30,3 32,3 56,7 59,5 122,7 128,1 30/06/2025 30/06/2024 Equity Debt Trade payables IFRS-16 liabilities Other liabilities
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No Image No Image Cash flow from operations Operative cash flow in H1 2025 was released due to higher net sales and successful collections from customers Cash flow from operations EUR million Q2 2025 operative cash flow was EUR 4.9M due to positive effects from net working capital and operating result In the comparison period, Q2’24, cash flow was particularly owing to a significant release of net working capital and the related collection of receivables from customers. -7,8 M€9,8 -0,2 4,9 -10 -5 0 5 10 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025
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No Image Cash flow H1 2025: Working capital released due to improved Net sales and successful collection. 21 Operating activities Financing activities 1,0 LeasingCash 31.12.2024 Bank loans 0,2 0,9 Changes in exchange rates Cash 30.6.2025 Profit for the period 3,7 Cash flow adjustments 1,9 Change in net working capital 2,0 R&D 0,1 CAPEX 8,8 12,30,4 Investing activities
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No Image No Image 45,3 % 47,7 % 46,4 % 0% 10% 20% 30% 40% 50% 60% 30/06/2023 30/06/2024 30/06/2025 2246.7 Return on Capital Employed (ROCE) was 5.0%. The equity ratio has been similar level last years. Return on capital employed Equity ratio At the end of the period 3,2 % -1,5 % 5,0 % -6% -4% -2% 0% 2% 4% 6% 8% 30/06/2023 30/06/2024 30/06/2025
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No Image No Image 23 Net gearing At the end of the reporting period Interest-bearing Net debt / adj. EBITDA Last twelve months Year on year Net Gearing decreased due to lower equity. Interest-bearing net debt to adjusted EBITDA ratio improved year on year along the profitability improvement. 41,3 % 46,9 % 40,3 % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 30/06/2023 30/06/2024 30/06/2025 3,0x 4,2x 2,1x 0,0x 0,5x 1,0x 1,5x 2,0x 2,5x 3,0x 3,5x 4,0x 4,5x 5,0x 5,5x 30/06/2023 30/06/2024 30/06/2025