interim report january june 2016mb.cision.com/main/14365/2068245/555347.pdf · 30 june 2016 as of...

APR 1st – JUNE 30th 2016 Net sales amounted to EUR 2 653 thousand (2 592), a

2.3 percent increase

EBITDA of EUR -9 thousand (105) and EBITDA margin

of -0.3 percent (4.1)

EBITDA excluding IPO-related costs of EUR 135

thousand (105) and EBITDA margin of 5.1 percent

(4.1)

EBIT of EUR -34 thousand (86) and EBIT margin -1.3

percent (3.3)

Net profit of EUR -98 thousand (36)

Cash flow from operating activities amounted to EUR

51 thousand (47)

JAN 1st – JUNE 30th 2016 Net sales amounted to EUR 5 109 thousand (4 827), a

5.8 percent increase

EBITDA of EUR 75 thousand (141) and EBITDA margin

of 1.5 percent (2.9)

EBITDA excluding IPO-related costs of EUR 219

thousand (141) and EBITDA margin of 4.3 percent

(2.9)

EBIT of EUR 27 thousand (103) and EBIT margin 0.5

percent (2.1)

Net profit of EUR -95 thousand (-59)

Cash flow from operating activities amounted to EUR

72 thousand (-141)

APRIL - JUNE HIGHLIGHTS Successful listing on Nasdaq First North, Stockholm on May 24, 2016

Establishment of majority owned JV in Mauritius and start up of fiber network deployment projects

for Huawei

Signing of partner agreement between TalkPool AB and Tele2 AB in Sweden for the deployment of an

IoT network and provisioning of IoT services in greater Gothenburg

Launching of the “IoT as a Service” concept based on the Ski School tracker trial in Laax, Switzerland

Start up of the Telefonica 4G network roll out project activities with Nokia in Germany

INTERIM REPORT JANUARY – JUNE 2016

TALKPOOL INTERIM REPORT JANUARY-JUNE 2016 2

THIS IS TALKPOOL

TalkPool builds, maintains and improves

telecommunication networks globally. Through its

cutting-edge technical expertise, long experience and

agile business model, TalkPool offers global telecom

vendors and operators high-quality services on short

notice no matter the location. Moreover, TalkPool is one

of few companies with actual solutions and contracts in

place in the exciting IoT-market.

CEO COMMENTS

The second quarter of 2016 has certainly been one of the most eventful and exciting periods in TalkPool’s history with the listing on Nasdaq First North on 24 May as the major highlight. The IPO marked the start of a new growth phase for TalkPool based on acquisitions and new business in the emerging IoT market and we have already made good progress in both areas. The Nasdaq First North listing has opened an array of long-term possibilities for TalkPool, but short-term it has had a slightly dampening effect on growth due to the vast amount of energy, time and management resources invested in the preparation and completion of the IPO. Preparations also included accounting standard and process development, rebranding and homepage development. We have seen delays in some projects in Africa and Mexico in our Network Service business, caused by external factors. As a result, and in combination with IPO related costs, our earnings for the first half of the year were somewhat lower than internal expectations. Although the nature of TalkPool’s business may cause revenue generation that sometimes varies from quarter to quarter, our expectations for the full year, as well as our five-year plan, remain solid. The IoT business unit continued to develop positively during Q2. Our main IoT activities now span enabling IoT for smart buildings and cities, harbors and many verticals connecting machines that previously were considered economically unfeasible. A new concept called IoT as a Service has been positively received by the customer in our ski school tracker trial in Laax, Switzerland, and will be commercially launched during the coming ski season. We see a big future potential in this concept that will constitute one of the cornerstones in our IoT strategy going forward. In May, TalkPool AB and the European telecom operator Tele2 announced their cooperation in enabling a dedicated LPWAN IoT network in greater Gothenburg. As part of the cooperation TalkPool AB will be responsible for IoT network deployment and design of M2M/IoT solutions, which will give customers in Gothenburg a forefront cutting-edge position in the upcoming era of digitization. Other IoT projects in our order book are advancing according to plan. Some scheduling adjustments are of course normal in a developing and fast-growing industry such as IoT, but are well compensated by strong underlying market


demand. Furthermore TalkPool is preparing for rapid technology shifts that are likely to transform the IoT market during coming years The third quarter has started with several exciting discussions and contract negotiations with existing and new customers. TalkPool has also successfully initiated M&A cases in several markets to identify and evaluate potential acquisition candidates, within both Network Services and IoT. In summary, TalkPool continues on a growth path with Network Services as our foundation and the emerging IoT business and JV partnering in strategic markets and service areas as drivers of growth.

Erik Strömstedt, CEO

2.7 Net sales, MEUR

21% Gross margin

5.1% Adj. EBITDA margin


FINANCIAL DEVELOPMENT

KEY FIGURES

EUR Q2'16 Q2'15 H1'16 H1'15 FY'15

Sales, € thousand 2 653 2 592 5 109 4 827 10 353

Sales growth in % 2.3% -* 5.8% -* 14.5%

Gross profit, € thousand 563 534 1 114 928 2 065

Gross margin 21.2% 20.6% 21.8% 19.2% 19.9%

EBITDA, € thousand -9 105 75 141 562

EBITDA margin -0.3% 4.1% 1.5% 2.9% 5.4%

EBITDA excl. IPO related costs, € thousand ** 135 105 219 141 562

EBITDA margin, excl. IPO related costs ** 5.1% 4.1% 4.3% 2.9% 5.4%

EBIT, € thousand -34 86 27 103 465

EBIT margin -1.3% 3.3% 0.5% 2.1% 4.5%

EBIT excl. IPO related costs, € thousand ** 110 86 171 103 465

EBIT margin, excl. IPO related costs ** 4.1% 3.3% 3.3% 2.1% 4.5%

* No consolidated figures are available for the first half year 2014

** IPO related costs only refers to 2016

NET SALES

April - June

Net sales increased with 2.3 percent to EUR 2 653 thousand compared to the same period last year. In Q2 2016 a project relating to network expansion increased revenue in Haiti. The business in Mauritius started in late Q2 2016, adding revenue of EUR 204 thousand. The markets in Uganda and Kenya were slow causing revenue to be lower than compared to Q2 2015.

January - June

For the first half-year 2016 net sales amounted to EUR 5 109 thousand corresponding to an increase of 5.8% compared to last year.

EBITDA AND EBIT

April - June

The EBITDA margin was -0.3 percent Q2 2016; however, it has been affected by costs relating to the IPO amounting to EUR 144 thousand. These costs relate to rebranding, new webpage and cost relating to financial reporting. The adjusted EBITDA amounts to EUR 135 thousand with an EBITDA margin of 5.1 percent. EBIT for the half year was EUR -34 thousand with an EBIT margin of -1.3 percent. EBIT and EBIT margin adjusted for IPO related costs amounted to EUR 110 and 4.1 percent, respectively.

January - June

The EBITDA, adjusted for IPO related costs, was EUR 219 thousand for H1 2016, with an EBITDA margin of 4.3%.


NET PROFIT/LOSS

April - June

For Q2 2016 the net loss amounted to EUR -98 thousand, caused by higher costs in relation to the IPO and also a negative financial net. The group inter-company loans in USD are revalued at the end of the period, according to applied accounting principles. These valuation differences are mainly unrealized and hence not affecting cash flow. The net profit for Q2 2016 adjusted for IPO related costs amounted to EUR 46 thousand.

January - June

For H1 2016 the net loss amounted to EUR -95 thousand. Net profit adjusted for IPO related costs was EUR 49 thousand.


FINANCIAL POSITION AND CASH FLOW

KEY FIGURES

Q2'16 Q2'15 H1'16 H1'15 FY'15

Solidity 35.0% 18.0% 35.0% 18.0% 23.4%

Return on equity -5.3% 4.3% -5.1% -7.2% 14.7%

Net cash/debt 466 -640 466 -640 -372

Operating cash flow, € thousand 51 47 72 -141 119

BALANCE SHEET AND FINANCIAL POSITION

30 June 2016

As of 30 June 2016 the net cash position was EUR 466 thousand, with cash amounting to EUR 1 626 thousand (444). The rights issue as per 24 May 2016 positively affected the net cash, where the net proceeds amounted to EUR 848 thousand. The credit facility has increased in the period, amounting to EUR 332 thousand, used in ongoing operations. The solidity has also been positively affected by the issuance of new shares, amounting to 35.0 percent as per 30 June 2016.

CASH FLOW AND INVESTMENTS

April - June

The cash flow from operating activities was positive by EUR 51 thousand, which mainly refers to a change in working capital and other movements. Investments are slightly higher than compared to 2015 due to purchases of cars to be used in the daily operations. Cash flow from financing activities is positively affected by the rights issue as of 24 May 2016.

January - June

As per 30 June 2016 the operating cash flow was positive by EUR 72 thousand and the total cash flow positive by EUR 1 031 thousand.


OTHER DISCLOSURES

ACCOUNTING PRINCIPLES

The consolidated interim report is based on uniform accounting principles for all group companies. The parent company, TalkPool AG, is a Swiss company and is governed by Swiss law and accounting principles. The consolidated interim report has been prepared in compliance with the Swiss Code of Obligations (Art. 957 to 963b CO). For further information regarding applied accounting principles please refer to page 5-6 in the consolidated annual report 2015.

RISKS

For information regarding risks please refer to page 2-5 in the TalkPool information memorandum.

EMPLOYEES

At June 30, the number of staff was 231 (199).

SIGNIFICANT EVENTS AFTER THE PERIOD

No significant events after the period

CERTIFIED ADVISOR

Remium Nordic AB is TalkPool’s Certified Advisor.

AUDITOR’S REVIEW

This interim report has not been audited by the company’s auditors. Chur, 30 June 2016 Erik Strömstedt, CEO

This information is such information that TalkPool is required to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication by the abovementioned contact person on 30 August 2016 at 17:00 a.m. CET.


SUMMARY OF FINANCIAL REPORTS

CONSOLIDATED INCOME STATEMENT

Apr-Jun Jan-Jun Full-year

EUR 2016 2015 2016 2015 2015

Net revenue from goods and services 2 652 912 2 592 301 5 108 570 4 826 676 10 352 683

Cost of sales -2 089 479 -2 058 122 -3 994 296 -3 898 613 -8 288 028

Gross margin 563 433 534 179 1 114 274 928 063 2 064 655

Selling expenses -43 597 -21 372 -73 042 -44 021 -119 677

Administrative expenses -578 599 -478 543 -1 058 223 -944 371 -1 944 099

Other operating income & expenses 24 738 51 313 43 592 162 954 464 532

Operating result -34 025 85 577 26 602 102 625 465 411

Financial net -80 989 -54 238 -140 815 -168 916 -328 078

Profit/loss before income taxes -115 014 31 339 -114 213 -66 291 137 333

Income taxes 17 159 4 458 19 561 7 263 12 465

Net profit -97 855 35 796 -94 652 -59 029 149 798

Net income attributable to:

Stockholders of the parent company -93 229 35 796 -90 026 -59 029 149 798

Minority interests -4 626 - -4 626 - -

Other information

Average number of shares* 2 407 582 110 000 1 589 061 110 000 110 000

Earnings per share (no dilutive effects) -0,04 0,33 -0,06 -0,54 1,36

Number of shares, end of period* 2 770 000 110 000 2 770 000 110 000 110 000

Earnings per share (no dilutive effects) -0,03 0,33 -0,03 -0,54 1,36

* The registered number of shares at the end of the period was 2 770 000, an increase with 2 660 000 shares. At the annual shareholders’ meeting held on 4 March 2016, a share split was resolved upon whereby each share was split into 20 shares resulting in an increase in number of shares to 2 200 000. As per 24 May, based on an authorised share capital increase, 570 000 new shares where issued increasing the total number of shares to 2 770 000.


CONSOLIDATED BALANCE SHEET

June 30 March 31 December 31

EUR 2016 2016 2015

ASSETS

Current assets

Cash 1 626 415 731 174 595 415

Receivables from goods and services 929 571 1 341 138 1 642 811

Other short-term receivables 382 045 396 894 325 056

Inventories and unvoiced services 1 180 836 674 559 820 040

Prepayments and accrued income 279 805 336 853 152 132

Total current assets 4 398 672 3 480 618 3 535 454

Non-current assets

Financial assets 517 895 472 134 433 887

Investments in associates and joint venture 6 790 6 748 6 813

Property, plant and equipment 189 379 146 452 127 459

Intangible assets 194 758 201 094 222 080

Total non-current assets 908 822 826 428 790 239

TOTAL ASSETS 5 307 494 4 307 046 4 325 693

LIABILITIES AND EQUITY

Current liabilities

Payables due to suppliers 1 069 525 1 256 212 1 291 564

Short-term interest-bearing liabilities 332 049 278 603 123 777

Other short-term liabilities 464 095 510 880 662 031

Accrued liabilities and deferred income 668 443 379 405 391 031

Total current liabilities 2 534 112 2 425 100 2 468 403

Non-current liabilities

Long-term interest-bearing liabilities 921 508 849 183 842 972

Total non-current liabilities 921 508 849 183 842 972

Total liabilities 3 455 620 3 274 283 3 311 375

Equity

Stockholders' equtiy 1 856 754 1 032 763 1 014 318

Minority interest in equity of subsidiaries -4 880 - -

Total equity 1 851 874 1 032 763 1 014 318

TOTAL LIABILITIES AND EQUITY 5 307 494 4 307 046 4 325 693


CONSOLIDATED CASH FLOW STATEMENT


EUR 2016 2015 2016 2015 2015

Operating activities

Net profit/loss -97 855 35 796 -94 652 -59 029 149 798

+/– amortization/depreciation intanbigle assets & property, plant and equipment

25 265 19 546 48 444 38 049 96 218

+/– increase/decrease of working capital and other movements

124 066 -8 440 118 159 -119 646 -127 176

Net cash flow from operating activities 51 476 46 902 71 951 -140 626 118 840

Investing activities

– purchase of property, plant and equipment -81 515 -15 850 -104 073 -25 924 -62 964

+/– inflow/outflow from change of financial assets

- 0 - -28 337 -19 827

– payments for the acquisition of subsidiaries (added cash taken over)

- - - -11 769 -11 769

Net cash flow from investing activities -81 515 -15 850 -104 073 -66 030 -94 560

Financing activities

+/− purchase/disposal of own shares - 144 476 - 130 072 130 072

+ net proceeds from rights issue 847 613 - 847 613 - -

+/– issuance/repayment of interest-bearing liabilities

51 280 -60 671 207 761 139 269 57 998

Net cash flow from financing activities 898 893 83 805 1 055 374 269 341 188 070

Currency translation effects 26 387 8 745 7 748 18 871 20 505

Net change in cash 895 241 123 603 1 031 000 81 556 232 855

Cash, beginning of period 731 174 320 513 595 415 362 560 362 560

Cash, end of period 1 626 415 444 116 1 626 415 444 116 595 415


CHANGES IN EQUITY

EUR

Share capital

Capital reserves

Cumulative foreign

translation adjustment

Retained earnings

Own shares

Total equity

excl. minority interests

Share of minority interests

Total equity

incl. minority interests

Jan 1, 2015 71 645 158 601 195 620 212 218 -96 017 542 067 - 542 067

Purchase of own shares - - - - 96 017 96 017 - 96 017

Net profit/loss - - - -59 029 - -59 029 - -59 029

Foreign currency differences - - 245 143 - - 245 143 - 245 143

Jun 30, 2015 71 645 158 601 440 763 153 189 - 824 198 - 824 198

Jan 1, 2016 71 645 158 601 422 056 362 016 - 1 014 318 - 1 014 318

Rights issue 25 652 821 961 - - - 847 613 - 847 613

Net profit/loss - - - -90 026 - -90 026 -4 626 -94 652

Transactions with minority - - - - - - -254 -254

Foreign currency differences - - 84 849 - - 84 849 - 84 849

Jun 30, 2016 97 297 980 562 506 905 271 990 - 1 856 754 -4 880 1 851 874


SALES BY COUNTRY


EUR 2016 2015 2016 2015 2015

Haiti 1 581 708 1 461 424 3 089 907 2 793 097 5 972 857

Tanzania 360 655 295 317 708 943 604 768 1 235 141

Germany 206 757 275 458 445 464 357 435 883 811

Uganda 139 150 230 416 273 320 509 986 1 118 280

Mauritius 204 421 - 204 421 - -

Mexico 42 288 21 844 44 777 43 783 105 115

Botswana 82 921 55 395 156 029 126 891 313 730

Kenya 10 939 146 990 161 636 285 260 590 485

Other 24 073 105 457 24 073 105 457 133 264

Total net sales by country 2 652 912 2 592 301 5 108 570 4 826 676 10 352 683

Currently the performance of the group is monitored on a country and region basis. The Board of Directors and management assess the business performance from a geographical point of view based on the country of each business operation, independent on legal entities. These segments are the basis of strategic decisions.

DEFINITION OF KEY INDICATORS Earnings per share Period net profit/loss in relation to average number of shares for the period EBITDA Earnings Before Interest Tax Depreciation and Amortization EBIT Earnings Before Interest and Tax Solidity Equity in percentage of total assets Return on equity Net profit/loss in relation to equity Net cash/debt Net of interest-bearing liabilities minus cash and bank, excluding tax

receivables/liabilities


FOR FURTHER INFORMATION, PLEASE CONTACT: Erik Strömstedt, CEO Telephone: +41 79 790 60 40 [email protected] Hanna Rubensson, CFO Telephone: +46 73 140 48 40 [email protected]

TALKPOOL Gäuggelistrasse 7 Telephone: +41 81 250 20 20 CH-7000 Chur Mail: [email protected] Switzerland Web: www.talkpool.com

CALENDAR

Interim report January-September 2016 29 November 2016 Year-end report January-December 2016 30 March 2017 Annual report 2016 19 May 2017

Annual shareholders‘ meeting 2016 21 June 2017

interim report january june 2016mb.cision.com/main/14365/2068245/555347.pdf · 30 june 2016 as of...

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