Stock exchange release
Free for publication on
Bittium Corporation Financial Statement Bulletin January-
Bittium’s
Unless otherwise mentioned, the figures in brackets refer to the corresponding period in the previous year.
Summary October-
- Net sales were
EUR 30.1 million (EUR 21.8 million ), representing a 37.8 percent increase year-on-year. - The share of product-based net sales was
EUR 23.0 million (EUR 14.5 million ), representing 76.5 percent of the net sales. The share of Medical Technologies products wasEUR 7.4 million (EUR 3.8 million ) and the share of Defense & Security products wasEUR 15.5 million (EUR 10.7 million ). - The share of services-based net sales was
EUR 7.1 million (EUR 7.3 million ), representing 23.5 percent of the net sales. The share of Connectivity Solutions R&D services wasEUR 4.6 million (EUR 4.4 million ). - EBITDA was
EUR 6.6 million (EUR 3.2 million ). - The operating result was
EUR 3.7 million (EUR 0.3 million ). - The result for the period was
EUR 4.3 million and earnings per share wereEUR 0.121 (result for the periodEUR 0.7 million and earnings per shareEUR 0.019 ). - Cash flow from operating activities was
EUR 4.2 million (EUR 5.1 million ). - Net cash flow was
EUR 2.2 million (EUR 0.6 million ).
Summary January-
- Net sales were
EUR 86.9 million (EUR 78.4 million ), representing a 10.8 percent increase year-on-year. - The share of product-based net sales was
EUR 63.1 million (EUR 53.1 million ), representing 72.6 percent of the net sales. The share of Medical Technologies products wasEUR 27.8 million (EUR 17.4 million ) and the share of Defense & Security products wasEUR 35.3 million (EUR 35.8 million ). - The share of services-based net sales was
EUR 23.8 million (EUR 25.3 million ), representing 27.4 percent of the net sales. The share of Connectivity Solutions R&D services wasEUR 15.5 million (EUR 15.9 million ). - EBITDA was
EUR 13.7 million (EUR 13.5 million ). - Operating result was
EUR 3.2 million (EUR 2.1 million ). - Result for the period was
EUR 3.3 million and earnings per share wereEUR 0.093 (result for the periodEUR 2.2 million and earnings per shareEUR 0.061 ). - Cash flow from operating activities was
EUR 8.3 million (EUR 6.9 million ). - Net cash flow was
EUR -2.6 million (EUR -10.5 million ). - The order backlog was
EUR 29.5 million (EUR 27.6 million ) - The Board of Directors of
Bittium Corporation proposes to the Annual General Meeting of shareholders to be held onApril 6, 2022 , resolve to payEUR 0.04 per share as dividend based on the adopted balance sheet for the financial period ofJanuary 1 – December 31, 2021 .
| GROUP (MEUR) | 10-12/2021 | 10-12/2020 | 1-12/2021 | 1-12/2020 |
| 3 months | 3 months | 12 months | 12 months | |
| 30.1 | 21.8 | 86.9 | 78.4 | |
| Change of net sales, % | 37.8 % | -19.1 % | 10.8 % | 4.2 % |
| EBITDA | 6.6 | 3.2 | 13.7 | 13.5 |
| EBITDA, % of net sales | 21.9 % | 14.8 % | 15.7 % | 17.2 % |
| OPERATING PROFIT / LOSS | 3.7 | 0.3 | 3.2 | 2.1 |
| Operating profit / loss, % of net sales | 12.4 % | 1.2 % | 3.7 % | 2.7 % |
| RESULT OF THE PERIOD FROM CONTINUING OPERATIONS | 4.3 | 0.7 | 3.3 | 2.2 |
| CASH AND OTHER LIQUID ASSETS | 22.0 | 24.7 | 22.0 | 24.7 |
| EQUITY RATIO (%) | 72.4 % | 73.1 % | 72.4 % | 73.1 % |
| EARNINGS PER SHARE (EUR) | 0.121 | 0.019 | 0.093 | 0.061 |
Bittium’s CEO
The last quarter of 2021 was excellent for Bittium. Net sales increased by 37.8 percent from the previous year, with product deliveries focusing on the latter part of the year. The operating result for the fourth quarter was
The availability of components has been weak and prices higher than before. We were also unable to deliver all product deliveries to our customers on time. The shortage of components will affect our product business also during the current year. However, we believe that the situation will gradually return to normal when going towards 2023.
The level of R&D investments decreased. Almost
In the Defense business, the cooperation with our most important domestic and international customers continued well. The general market slowdown due to the coronavirus pandemic had some effect on the progress of projects, and product deliveries were delayed due to a shortage of components. Towards the end of the year, we were able to manufacture and deliver a significant number of products to our customers, which was reflected in significant growth in Defense product-based net sales in the fourth quarter. In the defense market, the coronavirus pandemic affected the progress of government purchase programs for tactical communications systems, which affected the acquisition of new customer projects.
Despite the delay in the development of Bittium Tough SDR(TM) radios, I am really pleased with the outcome. These are world-class state-of-the-art vehicle and military radios that are highly competitive internationally. I want to take the opportunity here and thank our development team and our customer, Finnish Defence Forces, who has been involved in the development of the radios from the beginning. At the end of the last year, the delivery of the first phase of SDR radios and related equipment to the customer was almost completed. The Finnish Defence Forces started testing radios and their waveforms and will build readiness for more extensive use of radios in the coming years. The Defense Forces is preparing to purchase the next batch of products, and the annual order volumes, according to the letter of intent for the acquisition of new tactical radios published in
a4ESSOR, a multinational joint venture for the development of secure European software-defined radio technology, progressed well over the past year and the jointly developed ESSOR waveform received official approval. a4ESSOR partners, of which Bittium is one of the six companies, will port the ESSOR waveform to their own software radios as part of the next phase of the project. Bittium has been the first ESSOR partner to port the ESSOR waveform to its own SDR radios and to demonstrate the functionality in field tests over large networks. We have world-class waveform expertise and are a nationally and internationally recognized partner in the development of secure and interference-tolerant waveforms. Last year, a4ESSOR launched a new project to develop new ESSOR waveforms interoperable with partner countries’ radios and to improve the existing waveform, to ensure that these waveforms can be ported to the national radios of the ESSOR countries. In this new project, Bittium will focus on developing ground-to-ground and air-to-ground waveforms.
The importance of mobile security in communications has grown and the demand for secure Bittium Tough Mobile 2 smartphones has increased steadily over the past year. The security classification of the smartphone and its related system plays a key role, especially in the governmental market, and we are actively applying for security classification certificates in various countries together with our customers.
In the first half of the year, we entered into a distribution agreement with Mexican telecommunication solutions provider Inmosat for the distribution of Mexsat satellite phones designed for the Mexican state’s Mexsat satellite communications system. The products of the first order under the distribution agreement have been delivered to the customer, and we expect the deliveries to continue this year.
The medical technology market clearly began to recover from the downturn caused by the coronavirus pandemic. The demand from the service providers recovered, which was reflected in the development of Medical Technologies’ product-based net sales. Remote monitoring and remote diagnostics solutions facilitate the challenges of limited medical resources and cost pressures, which was reflected in increased sales of Bittium’s medical remote diagnostics solutions. The extent of the growth was limited by the shortage of components, which we expect to continue until the end of 2022.
The European Medical Device Regulation (MDR) entered into force in May, causing a backlog of quality system audits and device approvals and thus a significant delay in application lead times. We launched our new home sleep apnea testing solution Bittium Respiro(TM) in the early last year, and its MDR approval has been delayed due to a delay in lead times. With the current information at hand, we believe we will get the approval during the second half of this year.
The demand for Bittium’s ECG measuring devices increased during the last year. The majority of the product deliveries were made to our customer Preventice, a provider of remote monitoring services in the
In September, we announced an agreement under which Bittium planned to buy a 25 percent stake in the shares of
In the Connectivity Solutions business, the delivery of our R&D services and connectivity solutions to our customers continued. The net sales of Bittium’s R&D services remained at the same level as in the previous year. The business grew in the Open Radio Access Network (O-RAN) market, and we made investments in the development, sales, and marketing of our own O-RAN business over the past year. There was also new demand arising in wireless satellite technology. The growth in these areas brought us new international customers.
In the manufacturing industry, the coronavirus pandemic slowed down the start of new R&D service projects, and the demand in this market has clearly decreased. The demand for the development of new medical technology solutions, on the other hand, remained stable despite the slowdown in the approvals of new medical devices caused by the new MDR regulation.
The exceptional circumstances caused by the pandemic strengthened our remote work practices with our existing customers. Despite the virtual meetings and events becoming more and more common, acquiring new customers was challenging. In addition, the availability of professional workforce on the market weakened. There are not enough software engineers available in the markets compared to the demand. The competition for the workforce also increased labor mobility.
Our goal in the Connectivity Solutions service business is to further increase the number of product development service projects and expand the international customer base.
During 2021, we strengthened our position as a provider of secure and reliable solutions as well as a provider of solutions for remote monitoring and remote diagnostics. We also focused strongly on continuously improving the customer experience and quality.
To conclude, I would like to thank all our customers and partners, as well as our shareholders, for their trust in Bittium. I would also like to thank all our employees for the past year and their strong commitment to our common goals. Our personnel is united by the same enthusiasm for technologies and learning of new things, which is ultimately reflected in our product development and in the work for our customers. I am proud of all of you and the results we have together achieved.
Outlook for 2022
The global disruption in the availability of electronic components and the spread of new variants of the coronavirus are having a significant impact on the global market. More than 70 percent of Bittium’s net sales accumulate from products and related systems, and the prevailing shortage of components is causing significant uncertainty to the development of Bittium’s product-based net sales in 2022. Due to these uncertainties, at this point of the year, the company will exceptionally publish only the first half-year outlook instead of the full-year outlook.
Bittium expects the net sales in January-
More information about Bittium’s market outlook, risks and uncertainties are presented in this report in the sections “Market Outlook” and “Risks and Uncertainties” as well as on the company’s internet pages at www.bittium.com.
Market Environment and Business Development in January-
Defense & Security Business
Cooperation with the Finnish Defence Forces continued closely during 2021. Deliveries of products required for tactical communication continued, however, the shortage of components slowed down the delivery schedule. Despite the challenging availability of components in the fourth quarter, a significant number of products were delivered to the customers, which was reflected in fourth-quarter revenue growth in Defense and Security products.
Deliveries of the first phase of the Bittium Tough SDR(TM) handheld and vehicle radios and related accessories, agreed under the purchase agreement between the Finish Defence Forces and Bittium, published in
The development of the Bittium Tactical Wireless IP Network(TM) software defined radio system continued in cooperation with the Finnish Defense Forces as planned. In March, the Defense Forces ordered products from the TAC WIN system and Bittium Tough Comnode(TM) products based on the existing framework agreements for the purchase of the products. The share of
Cooperation with the Estonian Defense Forces continued closely in the supply of tactical communication products and systems, which complement the tactical communication system already delivered for the customer. The product deliveries are based on a framework agreement between Bittium’s Estonian partner Telegrupp AS and the Estonian Defense Forces, and it covers the years 2021-2025. The deliveries, integration work and testing of tactical communication system products were also continued with the Austrian Defense Forces.
In November, a4ESSOR, a multinational joint venture developing secure European software defined radio technology, launched a new ESSOR New Capabilities (ENC) project to develop new ESSOR waveforms interoperable with partner countries’ radios and to improve the existing system to enable the waveforms portability to the national radios. The new project aims to improve the interoperability and security of ground-to-ground, air-to-ground and satellite-based tactical data transmission. In this project, Bittium will focus on the development of ground-to-ground and air-to-ground waveforms. Earlier in May, a4ESSOR received official approval for its ESSOR High Data Rate Base Waveform.
The importance of mobile security in communications has increased and the demand for the secure Bittium Tough Mobile(TM) 2 smartphones grew steadily over the past year. The security classification of the phone and its related system plays a key role, especially in the governmental market. Bittium actively applies for security classification certificates in various countries together with its customers. The customer experience of the Secure Call communication application, launched on the Tough Mobile 2 phone at the beginning of the year, has been positive and the delivery volumes of the Secure Call application increased.
Deliveries of Mexsat satellite phones designed for the Mexican state’s Mexsat satellite communications system continued. The resale cooperation with the Mexican telecommunications solutions provider Inmosat has worked well and the products of the first order related to the distributor agreement have been delivered to the customer. The product deliveries to
Medical Technologies Business
During 2021, the medical technology market clearly began to recover from the downturn caused by the coronavirus pandemic. Demand from the service providers recovered, which was also clearly reflected in the development of net sales. During the past year, the medical remote diagnostics market was consolidated as major service providers merged, which might lead to higher device sales volumes, thus creating growth opportunities for device manufacturers.
The importance of remote care and remote monitoring has increased during the coronavirus pandemic due to insufficient medical resources and cost pressures. Remote monitoring and remote diagnostics solutions alleviate these problems, which was also reflected in increased sales of Bittium’s medical remote diagnostics solutions. Component shortages limited the growth during the past year and component shortages are expected to continue at least until 2022. All of Bittium’s cardiology and neurophysiology solutions operate on the cloud-based MedicalSuite service platform, enabling service operators to further digitize their remote diagnostic service processes. Along with an aging population, the coronavirus pandemic has provided a strong incentive to streamline and digitize primary care and specialist care. Together, these factors are driving demand for the device and total service solutions in the medical technology market.
The transitional periods for the application of the European Medical Device Safety Regulation (MDR) (EU 2017/745) expired and entered into force in full on
Early in the year, Bittium launched a new home sleep apnea testing solution, Bittium Respiro(TM). MDR approval of the solution is still pending due to lead time delays. Based on current information, approval is expected in the second half of this year. The device, designed for home use, has received positive feedback, especially due to its compact size and ease of use. Deliveries of the product variant of the device that is targeted at the Finnish market, began during the autumn of 2021, and demand developed positively.
The temporary overload in intensive care units by the patients with coronavirus infection affected the ability of intensive care units to promote the introduction of new technologies and solutions. This slowed down the demand for Bittium’s EEG devices designed for intensive care. Bittium BrainStatus(TM) EEG measuring devices were delivered to customers for pilot use, but the overload of patients with coronavirus slowed down the progress of the pilots.
Demand for Bittium Faros(TM) ECG measuring devices increased during the past year. The majority of product deliveries were made to Preventice, a provider of remote monitoring services in the
During the last year, Bittium launched new products and software versions and they have been very well received. Product management, product development and production organizations were strengthened, and the quality system and operating processes were developed in accordance with the new MDR requirements. To further increase the international sales, the sales organization was strengthened, and the international distribution network expanded.
In September, Bittium announced to have signed an agreement under which Bittium planned to buy a 25 percent stake in
Connectivity Solutions Business
Bittium provides R&D services in the areas of wireless telecommunications, medical technology, automotive and manufacturing industries. Outsourcing R&D services, in whole or in part, brings customers cost savings and enables the scaling of their product development volume to meet their current needs. Bittium has extensive expertise in the areas of wireless connectivity, information security, and various communication technologies (such as 5G).
The delivery of R&D services and connectivity solutions for the customers continued and the demand for Bittium’s R&D services remained stable during 2021. The market for Open Radio Access Network (O-RAN) architecture developed further and the demand for O-RAN know-how increased. During the last year, Bittium has been investing in the development, sales and marketing of its own O-RAN business. New demand also arose in wireless satellite technology. The growth of these areas has provided the company with new international customers.
The coronavirus pandemic slowed down the start of new R&D service projects in the manufacturing industry and automotive markets, and the demand clearly declined. The demand for medical technology solutions remained stable despite the slowdown in the lead times of the new medical device approvals caused by the new European Medical Device Safety Regulation (MDR).
The exceptional circumstances caused by the pandemic strengthened the remote work practices with existing customers. However, despite the virtual meetings and events becoming more and more common, acquiring new customers was challenging. Also, the availability of professional workforce on the market weakened, and, in particular, there is an insufficient amount of software engineers available compared to the demand. The competition for the workforce also increased labor mobility.
Financial Performance in January-
Bittium’s net sales in January-
The share of product-based net sales was
The share of services-based net sales was
EBITDA for January-
Operating result in January-
Cash flow from operating activities was
The equity ratio was 72.4 percent (73.1 percent).
Net gearing was 0.2 percent (-1.9 percent).
The order backlog at the end of the year was
Half Year Figures
| GROUP’S NET SALES AND OPERATING RESULT, MEUR | 2H/21 | 1H/21 | 2H/20 | 1H/20 |
| Net sales | 47.2 | 39.7 | 35.8 | 42.5 |
| Operating profit (loss) | 3.9 | -0.7 | -0.8 | 2.9 |
| Result before taxes | 3.6 | -1.0 | -0.9 | 2.5 |
| Result for the period | 4.4 | -1.0 | -0.4 | 2.5 |
| DISTRIBUTION OF NET SALES BY PRODUCT AND SERVICES, MEUR aND % | 2H/21 | 1H/21 | 2H/20 | 1H/20 |
| Product-based net sales | 35.2 | 27.9 | 23.0 | 30.1 |
| 74.5 % | 70.3 % | 64.3 % | 70.7 % | |
| Services-based net sales | 12.0 | 11.8 | 12.8 | 12.5 |
| 25.5 % | 29.7 % | 35.7 % | 29.3 % | |
| DISTRIBUTION OF PRODUCT-BASED |
2H/21 | 1H/21 | 2H/20 | 1H/20 |
| Defense & Security products | 20.8 | 14.5 | 15.1 | 20.6 |
| 59.3 % | 51.8 % | 65.5 % | 68.6 % | |
| Medical Technologies products | 14.3 | 13.5 | 8.0 | 9.5 |
| 40.7 % | 48.2 % | 34.5 % | 31.4 % | |
| DISTRIBUTION OF SERVICES-BASED |
2H/21 | 1H/21 | 2H/20 | 1H/20 |
| Connectivity Solutions R&D services | 7.7 | 7.8 | 8.0 | 7.4 |
| 63.8 % | 66.6 % | 62.4 % | 58.9 % | |
| Other service-based net sales | 4.4 | 3.9 | 4.8 | 5.1 |
| 36.2 % | 33.4 % | 37.6 % | 41.1 % | |
| DISTRIBUTION OF NET SALES BY MARKET AREAS, | 2H/21 | 1H/21 | 2H/20 | 1H/20 |
| MEUR AND % | ||||
| 0.3 | 0.3 | 0.2 | 0.2 | |
| 0.6 % | 0.6 % | 0.5 % | 0.4 % | |
| 32.0 | 25.0 | 29.3 | 35.2 | |
| 67.9 % | 62.9 % | 81.7 % | 82.8 % | |
| 14.9 | 14.4 | 6.4 | 7.1 | |
| 31.5 % | 36.4 % | 17.8 % | 16.7 % | |
Quarterly Figures
| GROUP’S NET SALES AND OPERATING RESULT, MEUR | 4Q/21 | 3Q/21 | 2Q/21 | 1Q/21 | 4Q/20 |
| Net sales | 30.1 | 17.1 | 22.6 | 17.0 | 21.8 |
| Operating profit (loss) | 3.7 | 0.2 | 0.7 | -1.5 | 0.3 |
| Result before taxes | 3.5 | 0.1 | 0.5 | -1.6 | 0.2 |
| Result for the period | 4.3 | 0.1 | 0.5 | -1.6 | 0.7 |
| DISTRIBUTION OF NET SALES BY PRODUCT AND SERVICES, MEUR aND % | 4Q/21 | 3Q/21 | 2Q/21 | 1Q/21 | 4Q/20 |
| Product-based net sales | 23.0 | 12.2 | 16.7 | 11.2 | 14.5 |
| 76.5 % | 71.0 % | 73.8 % | 65.7 % | 66.5 % | |
| Services-based net sales | 7.1 | 5.0 | 5.9 | 5.9 | 7.3 |
| 23.5 % | 29.0 % | 26.2 % | 34.3 % | 33.5 % | |
| DISTRIBUTION OF PRODUCT-BASED |
4Q/21 | 3Q/21 | 2Q/21 | 1Q/21 | 4Q/20 |
| Defense & Security products | 15.5 | 5.3 | 11.2 | 3.3 | 10.7 |
| 67.6 % | 43.4 % | 66.8 % | 29.5 % | 73.6 % | |
| Medical Technologies products | 7.4 | 6.9 | 5.6 | 7.9 | 3.8 |
| 32.4 % | 56.6 % | 33.2 % | 70.5 % | 26.4 % | |
| DISTRIBUTION OF SERVICES-BASED |
4Q/21 | 3Q/21 | 2Q/21 | 1Q/21 | 4Q/20 |
| Connectivity Solutions R&D services | 4.6 | 3.1 | 3.8 | 4.1 | 4.3 |
| 64.8 % | 62.5 % | 63.7 % | 69.6 % | 58.9 % | |
| Other service-based net sales | 2.5 | 1.9 | 2.2 | 1.8 | 3.0 |
| 35.2 % | 37.5 % | 36.3 % | 30.4 % | 41.1 % | |
| DISTRIBUTION OF NET SALES BY MARKET AREAS, MEUR aND % | 4Q/21 | 3Q/21 | 2Q/21 | 1Q/21 | 4Q/20 |
| 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | |
| 0.6 % | 0.5 % | 0.6 % | 0.7 % | 0.5 % | |
| 21.1 | 10.9 | 15.3 | 9.7 | 18.8 | |
| 70.2 % | 63.8 % | 67.5 % | 56.9 % | 86.2 % | |
| 8.8 | 6.1 | 7.2 | 7.2 | 2.9 | |
| 29.2 % | 35.7 % | 31.9 % | 42.5 % | 13.3 % | |
Statement of Financial Position and Financing
The figures presented in the statement of financial position of
| Non-current assets | 85.9 | 86.4 |
| Current assets | 80.3 | 71.7 |
| Total assets | 166.1 | 158.0 |
| Share capital | 12.9 | 12.9 |
| Other capital | 103.9 | 101.3 |
| Total equity | 116.8 | 114.2 |
| Non-current liabilities | 21.5 | 21.9 |
| Current liabilities | 27.8 | 21.8 |
| Total equity and liabilities | 166.1 | 158.0 |
| Cash flow of the review period: | 1-12/2021 | 1-12/2020 |
| + profit of the period +/- Adjustment of accrual basis items | 15.2 | 14.1 |
| +/- Change in net working capital | -6.2 | -6.8 |
| – interest, taxes and dividends | -0.7 | -0.5 |
| = net cash from operating activities | 8.3 | 6.9 |
| – net cash from investing activities | -8.4 | -15.9 |
| – net cash from financing activities | -2.5 | -1.5 |
| = net change in cash and cash equivalents | -2.6 | -10.5 |
The number of gross investments in the period under review was
The Group’s liquidity remained good despite the uncertainty caused by the coronavirus pandemic and the global disruption in the availability of electronic components. Securing cash flow has not required any special adjustment measures and no significant changes have been identified in the credit risks of trade receivables.
Cash and other liquid assets at the end of the reporting period were
Bittium has a
Bittium follows a hedging strategy that has an objective to ensure the business margins in changing market circumstances by minimizing the influence of exchange rates. According to the hedging strategy principles, the net position in the currency is hedged when it exceeds the euro limit defined in the hedging strategy. The net position is determined based on accounts receivable, accounts payable, order book, and budgeted net currency cash flow.
Research and Development
Bittium continued to make significant investments to develop its own products and product platforms. In January-
The R&D investments focused mainly on developing tactical communication system and its products for the defense industry, developing different types of special terminal products for authorities and their related security software, as well as developing medical technology products. During 2021, the focus of investments has gradually shifted from tactical communications to the development of new medical technology products.
The capitalized R&D investments are related to the investments in developing the software defined radio based tactical radios, Bittium Tough SRD(TM) product family, further development of tactical communication networks, and development of medical technology products.
R&D INVESTMENTS, (MEUR)
| 1-12 2021 | 1-12 2020 | |
| 12 months | 12 months | |
| Total R&D investments | 19.8 | 22.8 |
| Capitalized R&D investments | -7.0 | -13.6 |
| Depreciations and impairment of R&D investments | 5.5 | 6.1 |
| Cost impact on income statement | 18.3 | 15.4 |
| R&D investments, % of net sales | 22.8 % | 29.1 % |
| CAPITALIZED R&D INVESTMENTS IN BALANCE SHEET, MEUR | 1-12 2021 | 1-12 2020 |
| 12 months | 12 months | |
| Balance sheet value in the beginning of the period | 46.6 | 39.1 |
| Additions during the period | 7.0 | 13.6 |
| Depreciations and impairment of R&D investments | -5.5 | -6.1 |
| Balance sheet value at the end of the period | 48.1 | 46.6 |
Personnel
The Bittium group employed an average of 664 people in January-
Changes in the Company’s Management
On
The company decided that it will divide its sales management and development into the Company’s three product and service areas, which are Defense & Security, Medical Technologies, and Connectivity Solutions. Dividing the sales activities into product and service areas in this context enables even stronger sales management and development. After the change, Bittium has product and service area specific sales management, which reports to the heads of the product and service areas in their positions. As a result, sales development is better targeted to the needs of each product and service areas. The changes have taken effect on
As of
Share and Share Capital
The shares of
At the end of the financial period, the fully paid share capital of the Company entered into the
| MARKET VALUES OF SHARES (EUR) | 1-12/2021 12 months |
1-12/2020 12 months |
|
| Highest | 7.89 | 7.67 | |
| Lowest | 4.93 | 3.40 | |
| Average | 6.18 | 5.74 | |
| At the end of period | 5.30 | 5.79 | |
| Market value of the stock. (MEUR) | 189.2 | 206.7 | |
| Trading value of shares. (MEUR) | 83.2 | 117.9 | |
| Number of shares traded. (1.000 pcs) | 13 464 | 20 557 | |
| Related to average number of shares % | 37.7 | 57.6 | |
Incentive Systems
Employee Profit-Sharing Plan
In 2021, Bittium had an employee profit-sharing plan that applies to all employees, excluding those covered by other short-term bonus plans. According to the 2021 profit-sharing plan, a separately defined part of Bittium’s operating profit will be distributed to employees as a profit-sharing bonus in proportion to salaries. The goal of the system is to enable the company’s success to be shared with employees and to engage employees.
Variable Pay
The variable pay is paid based on the achievement of goals. In 2021, earning period for the variable pay was the calendar year. The targets are determined separately for each earning period. The setting of targets and the review of their achievement is decided on a one-over-one basis. The criteria for the short-term merit pay are the financial and strategic targets of the Company. In addition, part of the targets can be personal targets, which may vary between duties.
Management Share-Based Incentive Plan
The management of Bittium group share-based long-term incentive scheme which comprises a Performance Share Plan (“PSP”). The objectives of the Performance Share Plan are to align the interests of Bittium’s management with those of the Company’s shareholders and, thus, to promote shareholder value creation in the long term, to commit the management to achieving Bittium’s strategic targets and the retention of Bittium’s management. The Performance Share Plan consists of three annually commencing three-year performance share plans, PSP 2020-2022, PSP 2021-2023 and PSP 2022-2024, each with a one-year performance period, which is followed by the payment of the share reward and a two-year transfer restriction period. The commencement of each plan is, however, subject to a separate Board decision. Further information can be found at the company’s internet pages at the address www.bittium.com.
On
On
On
Shareholders
| Larges Shareholders | Number of shares |
% of shares |
|
| 1.Veikkolainen Erkki | 1 741 908 | 4.88 % | |
| 2. |
1 501 300 | 4.21 % | |
| 3. Hulkko Juha | 1 419 379 | 3.98 % | |
| 4. Mutual Pension Insurance Company Varma | 1 365 934 | 3.83 % | |
| 5. Mutual Pension Insurance Company Ilmarinen | 1 296 529 | 3.63 % | |
| 6. OP-Suomi Mikroyhtiöt – special investment company | 752 757 | 2.11 % | |
| 7. |
658 000 | 1.84 % | |
| 8. Mutual Pension Insurance Company Elo | 500 000 | 1.40 % | |
| 9. Investment Fund Taaleritehdas Mikro Markka | 500 000 | 1.40 % | |
| 10. |
479 789 | 1.34 % |
At the end of 2021,
Flagging Notifications
On
According to the notification, the aggregate holdings of
Decisions of the Annual General Meeting of
Bittium’s Annual General Meeting was held on
Use of the Profits Shown on the Balance Sheet and Authorizing the Board of Directors to Decide on Distribution of Dividend
Based on the shareholder vote concerning minority dividend, the Annual General Meeting decided in deviation from the proposal of the Board of Directors that a minority dividend corresponding to half of the profit for the financial period shall be paid in accordance with Chapter 13, Section 7 of the Companies Act. The Board of Directors of the company had proposed to the Annual General Meeting that no dividend be distributed by the Annual General Meeting based on the adopted balance sheet for the financial period of
The dividend was paid to shareholders who on the dividend record date
Election and Remuneration of the Members of the Board of Directors
The Annual General Meeting decided that the Board of Directors shall comprise five (5) members. Mr. Erkki Veikkolainen, Ms.
At its assembly meeting held on
The Annual General Meeting resolved that the following monthly remuneration shall be paid to the members of the Board of Directors: to the chairman of the Board of Directors
Election and Remuneration of the Auditor
Authorizing the Board of Directors to Decide on the Repurchase of the Company’s own Shares
The Annual General Meeting authorized the Board of Directors to decide on the repurchase of the Company’s own shares as follows.
The number of own shares to be repurchased shall not exceed 3,500,000 shares, which corresponds to approximately 9.80 percent of all of the shares in the company as of the date of the Annual General Meeting. Only the unrestricted equity of the company can be used to repurchase its own shares on the basis of the authorization.
Own shares can be repurchased at a price formed in public trading on the date of the repurchase or otherwise at a price formed on the market.
The Board of Directors decides how own shares will be repurchased. Own shares can be repurchased using, inter alia, derivatives. Own shares can be repurchased otherwise than in proportion to the shareholdings of the shareholders (directed repurchase).
The authorization cancels the authorization given by the Annual General Meeting on
The authorization is effective until
Authorizing the Board of Directors to Decide on the Issuance of Shares as well as the Issuance of Special Rights Entitling to Shares
The Annual General Meeting authorized the Board of Directors to decide on the issuance of shares and special rights entitling to shares referred to in Chapter 10 Section 1 of the Companies Act as follows.
The number of shares to be issued shall not exceed 3,500,000 shares, which corresponds to approximately 9.80 percent of all of the shares in the company as at the date of the Annual General Meeting.
The Board of Directors decides on all the conditions of the issuance of shares and of special rights entitling to shares. The authorization concerns both the issuance of new shares as well as the transfer of treasury shares. The issuance of shares and of special rights entitling to shares may be carried out in deviation from the shareholders’ pre-emptive rights (directed issue).
The authorization cancels the authorization given by the General Meeting on
The authorization is effective until
Proposal by the Board of Directors on the Use of the Profit Shown on the Balance Sheet and the Payment of the Dividend
On
The proposed dividend corresponds to a total of
Significant Events after the Reporting Period
On
As of
On
On
Risks and Uncertainties
Bittium has identified several business, market and finance related risk factors and uncertainties that can affect the level of sales and profits.
The coronavirus pandemic has caused changes in the company’s operating environment. The company management has been actively following and anticipating the development of the pandemic and has taken measures to prevent and remedy the impacts of the pandemic. It is difficult to estimate the length of the situation or its impacts on business operations and financial results.
The global disruption in the availability of electronic components and their price development has caused fast changes in the company’s operating environment. The company monitors the development of the situation and actively strives to ensure the availability of components required for product deliveries. Poor availability of components can have a detrimental effect on the progress of customer projects and the ability to deliver products.
Market Risks
The global economic uncertainty may affect the demand for Bittium’s services, solutions, and products and provide pressure on, e.g., pricing. In the short term, such uncertainty may affect, in particular, the utilization and chargeability levels and average hourly prices of R&D services. Growing political uncertainty may also affect the demand for Bittium’s services, solutions, and products and the price competitiveness in the different geographical areas. Bittium is also increasingly exposed to legal, economic, political, and regulatory risks related to the countries in which its suppliers and other cooperation partners are located. Such risks may result in delays in deliveries or in situations where there will be no orders in the forecast quantities, currency losses, elevated costs, or litigations and related costs.
As Bittium’s customer base includes, among others, companies operating in the field of telecommunication, defense, and other authorities, as well as companies delivering products to them and companies operating in the healthcare sector, the company is exposed to market changes in these industries.
A significant part of Bittium´s net sales accumulate from selling products and R&D services to defense and other authorities, as well as companies delivering products to them. Deviation in anticipated business development with such customer concentrations may translate as a significant deviation in Bittium’s outlook, both in terms of net sales and operating result, during the ongoing financial period and thereafter.
Bittium seeks to expand its customer base on a longer term and reduce dependence on individual companies, and hence the company would thereby be mainly affected by the general business climate in the industries of the companies belonging to Bittium’s customer base instead of the development of individual customer relationships. The more specific market outlook has been presented in this report in the “Market outlook” section.
Business Related Risks
Bittium’s operative business risks are mainly related to the following items: uncertainties and short visibility on customers’ product program decisions, their make or buy decisions and, on the other hand, their decisions to continue, downsize or terminate current product programs, execution and management of large customer projects, ramping up and down project resources, availability of personnel in labor markets, accessibility on commercially acceptable terms and, on the other hand, successful utilization of the most important technologies and components, competitive situation and potential delays in the markets, timely closing of customer and supplier contracts with reasonable commercial terms, delays in R&D projects, a realization of expected return on capitalized R&D investments, obsolescence of inventories and technology risks in product development causing higher than planned R&D costs, and risks related to the ramp-up of product manufacturing. Revenues expected to come from either existing or new products and customers include normal timing risks. Bittium has certain significant customer projects, and deviation in their expected continuation could also result in significant deviations in the company’s outlook. In addition, there are typical industry warranty and liability risks involved in selling Bittium´s services, solutions, and products.
Bittium’s product delivery business model faces such risks as high dependency on actual product volumes, timing risks, and potential delays in the markets. The above-mentioned risks may manifest themselves as lower amounts of products delivered or higher costs of production, and ultimately, as lower profit. Bringing Bittium’s products to international defense and other authorities’ markets may take longer than anticipated because the projects are typically long, and the purchasing programs are prepared in the lead of national governments and within the available financing. Once a supplier has been selected, product deliveries are typically executed over several years.
Some of Bittium’s businesses operate in industries that are heavily reliant on patent protection and therefore face risks related to the management of intellectual property rights, on the one hand, related to accessibility on commercially acceptable terms of certain technologies in the Bittium’s products and services, and on the other hand, related to an ability to protect technologies that Bittium develops or licenses from others from claims that third parties’ intellectual property rights are infringed. Additionally, parties outside of the industries operate actively to protect and commercialize their patents and therefore in their part increase the risks related to the management of intellectual property rights. At worst, claims that third parties’ intellectual property rights are infringed could lead to substantial liabilities for damages. In addition, the progress of the customer projects and delivery capability may also be affected by potential challenges in global accessibility of key technologies and components on commercially acceptable terms, as well as by the acceptance of the necessary export licenses. The company changed its name to
Financing Risks
Global economic uncertainty may lead to payment delays, increase the risk for credit losses, and weaken the availability and terms of financing. To fund its operations, Bittium relies mainly on income from its operative business and may from time to time seek additional financing from selected financial institutions. Bittium has
These agreements include customary covenants related to, among other things, equity ratio, transferring property, and pledging. There is no assurance that additional financing will not be needed in case of investments, networking capital needs, or clearly weaker than expected development of Bittium’s businesses. Customer dependency in some parts of Bittium’s business may translate as an accumulation of risk with respect to outstanding receivables and ultimately with respect to credit losses.
Outlook for 2022
The global disruption in the availability of electronic components and the spread of new variants of the coronavirus are having a significant impact on the global market. More than 70 percent of Bittium’s net sales accumulate from products and related systems, and the prevailing shortage of components is causing significant uncertainty to the development of Bittium’s product-based net sales in 2022. Due to these uncertainties, at this point of the year, the company will exceptionally publish only the first half-year outlook instead of the full-year outlook.
Bittium expects the net sales in January-
More information about Bittium’s market outlook, risks and uncertainties are presented in this report in the sections “Market Outlook” and “Risks and Uncertainties” as well as on the company’s internet pages at www.bittium.com.
Market Outlook and the Implications of the Coronavirus Pandemic for Bittium
Bittium’s customers operate in various industries, each of them having its own industry specific factors driving the demand. A common factor creating demand among the whole customer base is the growing need for higher quality and secure data transfer. Due to the technology competencies accrued over time and the long history in developing mobile communication solutions, Bittium is in a good position to offer customized solutions to its customers. Over thirty years of experience and extensive competence in measuring biosignals also act as a basis for medical technology solutions.
In 2020 and 2021, the global coronavirus pandemic has significantly affected the global economy and market situation. Bittium’s business sales cycles are long by their nature, but the pandemic has also affected Bittium’s business, among others, by slowing down existing projects and postponing new projects. The market is slowly beginning to recover from the effects of the pandemic, but the global shortage of components will affect product manufacturing and thus the ability to deliver products to customers on schedule.
The factors affecting the demand for Bittium’s products and services and the effects of the coronavirus pandemic on them are described below:
Defense, Public Safety, and Information Security Markets
- In the defense market’s tactical communications sector, the governments’ defense forces and other authorities need networks that troops, who are more and more constantly on the move, can use and transfer growing amounts of data securely. This creates demand for Bittium Tactical Wireless IP Network(TM) (
TAC WIN ) broadband network, Bittium Tough SDR(TM) handheld and vehicular radios, and for other Bittium’s IP-based (Internet Protocol) tactical communication solutions that fulfill the needs of data transfer of moving troops and individual soldiers. Bittium continues its efforts to bring its defense market targeted products and services also to the international defense markets and aims to get new international customers for its tactical communication system in 2022. Due to the long sales cycles driven by purchasing programs of national governments, it will take time to receive purchase orders. Exceptional circumstances due to the corona pandemic have to some extent affected the progress of programs, which has slowed down the completion of larger deals. - The financial difficulties caused by the coronavirus pandemic affect the budgets of public finances such as states and public authorities and have required postponing of procurement. This has somewhat delayed the launch of new projects and receiving orders. Especially in the defense and authorities’ markets testing and piloting of products and systems are typical phases before receiving orders of larger entities, and current circumstances due to the pandemic situation have caused delays in them. However, the market has begun to recover from the effects of the pandemic. The global shortage of components affects the availability of various components used in products, which affects the company’s ability to deliver products to its customers on time.
- The use of LTE technology, smartphones, and applications continue to increase in special verticals, such as public safety, creating demand for Bittium Tough Mobile(TM) secure LTE smartphone and other customized special terminals based on Bittium’s own product platform. The awareness of mobile security risks is growing, and the interest in secure mobile devices is increasing. The sales of secure terminal products are expected to develop moderately according to the nature of public safety markets.
- The smartphone sales process often involves testing and piloting systems and equipment, possibly integrating third-party technologies, and possible local regulatory approvals, which are typically lengthy processes. Exceptional circumstances caused by the coronavirus pandemic may have a significant impact on the progress of projects, which slows down the closings of larger transactions.
Telecommunication and Digitalization
- In mobile telecommunications, the implementation of 5G is accelerating in pace. Investments in developing new features continue and the importance of software development in the 5G network development expands. This creates demand for Bittium’s R&D services. There is a wide range of frequencies allocated for the 5G technology, thus creating the need to develop multiple products to cover the market and creating demand for R&D services for the development of product variants. The different kinds of needs for solutions in the open radio frequency network architecture, Open Radio Access Network (
ORAN ), and satellite communication increase the demand for Bittium’s R&D expertise as new players enter the traditional supplier network. Also, the development of new devices utilizing 5G technology increases the demand for Bittium’s services. - As digitalization evolves, secure IoT (Internet of Things) has become a significant development area in almost every industry. The increasing need for companies to digitalize their operations, collect data wirelessly, and transfer it to the internet and cloud services generate a need for Bittium’s services and customized solutions. To this end, the market needs secure devices, for both demanding industrial and leisure applications, which collect information from the sensors used by the device and create a reliable wireless connection to the Internet and cloud services. The deployment of 5G technology is expanding and the number of digitalized devices increases continuously. The devices will also feature new and more advanced features that will create demand for design services. Therefore, the integration of different systems and technologies play an important role in enabling complete digitalization services. There are several learning systems and devices under development that use different kinds of artificial intelligence (AI) technologies to ease and speed up the processing of large data amounts.
- Changes in the digitalization of the automotive industry and new business models as well as the automation of automotive operations create a need for technological development. Most significant technology trends, such as wireless connectivity, intelligent mobility, self-driving cars, and electric cars, are guiding needs for innovative software development. The share of software in cars quickly is increasing, and software is becoming a major enabler and a differentiator. The use of the Android(TM) Automotive operating system in the In-Vehicle Infotainment (IVI) systems is strongly entering the market. Several carmakers have announced the launch of cars with
Android Automotive . Bittium’s more than a decade of experience with the Android operating system and theGoogle ecosystem combined with wireless connectivity know-how create good business opportunities for this market. - The coronavirus pandemic has slowed sales of product development services. Despite the fact that adaptation to new circumstances and practices has gone well, the pandemic has slowed down the progress of existing projects and the acquisition of new customers. However, the market has slowly begun to recover from the effects of the pandemic and new customer projects have been launched. The coronavirus pandemic and labor competition are expected to continue prevailing in the market during 2022. The goal is to further increase the number of product development service projects and expand the international customer base.
Medical ECG, EEG, and Sleep Apnea Remote Monitoring Market
- The medical technology market is undergoing significant development in patient care, especially outside hospitals. There is an increasing focus on the prevention of diseases and health problems through early diagnosis and the discharge of patients at an earlier stage to reduce hospital and treatment days. These actions significantly increase efficiency in health care processes and lower costs.
- A prerequisite for early hospital discharge is the enabling of accurate and precise follow-up and measurement opportunities in home conditions, which would be enabled through remote monitoring. Remote monitoring and remote diagnostics also enable specialists’ diagnoses regardless of time and place. Also, evolving artificial intelligence-based algorithms become more common in supporting physicians in making diagnoses. Remote monitoring and remote diagnostics make it possible and faster to obtain more accurate diagnoses, which, in turn, speeds up the start of the right kind of treatment. The market change will enable several new providers to join the overall care service chain, without compromising the quality of specialist services.
- For remote monitoring and remote diagnostics, Bittium provides its Bittium Faros(TM) product family for remote heart monitoring, Bittium BrainStatus(TM) for measuring the electrical activity of the brain, home sleep apnea testing solution Bittium Respiro(TM), and different kinds of diagnostics software offered by Bittium.
- As the coronavirus pandemic spread, the number of non-emergency patients going to treatments and tests to healthcare providers decreased. Several hospitals and medical care facilities have postponed their non-emergency tests and examinations and focused on the treatment of the pandemic patients as well as on the actions aimed to prevent the virus from spreading. The pandemic situation varies from country to country, but generally the market is beginning to get back to normal again. In the long-term, the pandemic will accelerate the use of remote services in hospitals and medical care facilities, and thus create positive development on the demand for remote monitoring products and services.
- The global shortage of components affects the availability of various components used in products and can affect the company’s ability to deliver products to its customers on time.
Annual General Meeting of Shareholders 2022 and Annual Report 2021
Notice is given to the shareholders of
Invitation to a Press Conference
Bittium will hold a webcast regarding the Financial Statement 2021 for media, analysts, and institutional investors on
Link to the Finnish webcast: https://bittium.videosync.fi/q4_2021_fin
Link to the English webcast: hhttps://bittium.videosync.fi/q4_2021_eng
Recordings of both webcasts and the presentation will be available after the conference on Bittium’s website at www.bittium.com/investors.
Oulu,
The Board of Directors
Further Information:
Tel. +358 40 344 5466
Tel. +358 40 344 2229
Distribution:
Nasdaq Helsinki
Major media
Bittium Corporation Condensed Financial Statements and Notes January – December 2021
The consolidated financial statement has been prepared in accordance with International Financial Reporting Standards (IFRS). The Financial Statement of 2021 has been audited and the auditing report has been dated on
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (MEUR) Continuing operations |
1-12/2021 12 months |
1-12/2020 12 months |
|
| 86.9 | 78.4 | ||
| Other operating income | 2.6 | 0.9 | |
| Work performed by the undertaking for its own purpose and capitalized | 0.5 | 0.3 | |
| Raw materials | -23.3 | -21.2 | |
| Personnel expenses | -39.0 | -32.5 | |
| Depreciation | -10.5 | -11.4 | |
| Other operating expenses | -13.9 | -12.5 | |
| Share of results of the associated companies | -0.1 | 0.0 | |
| OPERATING PROFIT (LOSS) | 3.2 | 2.1 | |
| Financial income and expenses | -0.7 | -0.4 | |
| PROFIT BEFORE TAX | 2.5 | 1.6 | |
| Income tax | 0.8 | 0.5 | |
| PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS | 3.3 | 2.2 | |
| Discontinued operations | |||
| Profit for the year from discontinued operations | |||
| PROFIT FOR THE PERIOD | 3.3 | 2.2 | |
| Other comprehensive income: | |||
| Items that may be reclassified subsequently to the statement of income | |||
| Exchange differences on translating foreign operations | 0.2 | -0.2 | |
| Other comprehensive income for the period total | 0.2 | -0.2 | |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 3.6 | 1.9 | |
| Profit for the year attributable to | |||
| Equity holders of the parent | 3.3 | 2.2 | |
| Total comprehensive income for the period attributable to | |||
| Equity holders of the parent | 3.6 | 1.9 | |
| Earnings per share from continuing operations, EUR | |||
| Basic earnings per share | 0.093 | 0.061 | |
| Diluted earnings per share | 0.093 | 0.061 | |
| Earnings per share from discontinued operations, EUR | |||
| Basic earnings per share | |||
| Diluted earnings per share | |||
| Earnings per share from continuing and discontinued operations, EUR | |||
| Basic earnings per share | 0.093 | 0.061 | |
| Diluted earnings per share | 0.093 | 0.061 | |
| Average number of shares, 1000 pcs | 35 700 | 35 693 | |
| Average number of shares, diluted, 1000 pcs | 35 700 | 35 693 | |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION (MEUR) | |||
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 20.9 | 22.8 | |
| |
5.8 | 5.8 | |
| Intangible assets | 49.9 | 49.0 | |
| Other financial assets | 1.4 | 1.6 | |
| Other long-term receivables | 1.1 | 1.2 | |
| Deferred tax assets | 6.7 | 6.0 | |
| Non-current assets total | 85.9 | 86.4 | |
| Current assets | |||
| Inventories | 18.8 | 20.9 | |
| Trade and other receivables | 39.4 | 26.1 | |
| Financial assets at fair value through profit or loss | 5.7 | 5.7 | |
| Cash and short term deposits | 16.3 | 19.0 | |
| Current assets total | 80.3 | 71.7 | |
| TOTAL ASSETS | 166.1 | 158.0 | |
| EQUITY AND LIABILITIES | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 12.9 | 12.9 | |
| Invested non-restricted equity fund | 26.0 | 26.0 | |
| Translation difference | 1.1 | 0.9 | |
| Retained earnings | 76.8 | 74.5 | |
| Total equity | 116.8 | 114.2 | |
| Non-current liabilities | |||
| Deferred tax liabilities | 0.2 | 0.3 | |
| Provisions | |||
| Interest-bearing liabilities | 21.1 | 21.4 | |
| Other non-current liabilities | 0.2 | 0.3 | |
| Advances received | |||
| Non-current liabilities total | 21.5 | 21.9 | |
| Current liabilities | |||
| Trade and other payables | 23.1 | 18.1 | |
| Provisions | 3.5 | 2.6 | |
| Interest-bearing loans and borrowings | 1.2 | 1.1 | |
| Current liabilities total | 27.8 | 21.8 | |
| Total liabilities | 49.3 | 43.8 | |
| TOTAL EQUITY AND LIABILITIES | 166.1 | 158.0 | |
| CONSOLIDATED STATEMENT OF CASH FLOWS (MEUR) | 1-12/2021 12 months |
1-12/2020 12 months |
|
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Profit for the year from continuing operations | 3.3 | 2.2 | |
| Profit for the year from discontinued operations | |||
| Adjustment of accrual basis items | 11.9 | 12.0 | |
| Change in net working capital | -6.2 | -6.8 | |
| Interest paid on operating activities | -0.8 | -0.6 | |
| Interest received from operating activities | 0.1 | 0.1 | |
| Income taxes paid | -0.1 | -0.0 | |
| NET CASH FROM OPERATING ACTIVITIES | 8.3 | 6.9 | |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| Acquisition of business unit, net of cash acquired | |||
| Purchase of property, plant and equipment | -1.0 | -1.4 | |
| Purchase of intangible assets | -7.5 | -14.5 | |
| Purchase of investments/associated companies | -0.0 | -0.0 | |
| Sale of property, plant and equipment | |||
| Sale of intangible assets | |||
| NET CASH FROM INVESTING ACTIVITIES | -8.4 | -15.9 | |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Borrowings | |||
| Repayment of borrowing | |||
| Payment of finance liabilities | -1.4 | -1.5 | |
| Dividend paid and repayment of capital | -1.1 | ||
| NET CASH FROM FINANCING ACTIVITIES | -2.5 | -1.5 | |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | -2.6 | -10.5 | |
| Cash and cash equivalents at beginning of period | 24.7 | 35.2 | |
| Cash and cash equivalents at end of period | 22.0 | 24.7 | |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (MEUR) |
| A = Share capital |
| B = Invested non-restricted equity fund |
| C = Translation difference |
| D = Retained earnings |
| E = Non-controlling interests |
| F = Total equity |
| A | B | C | D | E | F | |
| Shareholders equity on |
12.9 | 26.0 | 1.1 | 72.3 | 112.3 | |
| Comprehensive income for the period | ||||||
| Profit for the period | 2.2 | 2.2 | ||||
| Exchange differences on translating foreign operations | -0.2 | -0.2 | ||||
| Total comprehensive income for the period | -0.2 | 2.2 | 1.9 | |||
| Transactions between the shareholders | ||||||
| Share-related compensation | 0.0 | 0.0 | ||||
| Total transactions between the shareholders | 0.0 | 0.0 | ||||
| Other changes | -0.1 | -0.1 | ||||
| Shareholders equity on |
12.9 | 26.0 | 0.9 | 74.5 | 114.2 | |
| A | B | C | D | E | F | |
| Shareholders equity on |
12.9 | 26.0 | 0.9 | 74.5 | 114.2 | |
| Comprehensive income for the period | ||||||
| Profit for the period | 3.3 | 3.3 | ||||
| Exchange differences on translating foreign operations | 0.2 | 0.2 | ||||
| Total comprehensive income for the period | 0.2 | 3.3 | 3.6 | |||
| Transactions between the shareholders | ||||||
| Distribution of dividends | -1.1 | -1.1 | ||||
| Share-related compensation | 0.1 | 0.1 | ||||
| Total transactions between the shareholders | -1.0 | -1.0 | ||||
| Other changes | 0.0 | 0.0 | ||||
| Shareholders equity on |
12.9 | 26.0 | 1.1 | 76.8 | 116.8 | |
NOTES TO FINANCIAL STATEMENTS
ACCOUNTING PRINCIPLES FOR THE FINANCIAL STATEMENT:
The consolidated financial statement has been prepared in accordance with International Financial Reporting Standards (IFRS).
ALTERNATIVE PERFORMANCE MEASURES
In addition to the key ratios defined in the IFRS standards, Bittium may use some alternative performance measures in financial reporting.
IAS 1 Presentation of Financial Statements standard does not specify the concept of operating profit. Bittium has defined the operating profit as follows: The operating profit is the net of turnover added with other operating income, subtracted with the raw materials and external services, adjusted with the change in stocks and work performed by the undertaking for its own purpose, subtracted with the personnel expenses, depreciation and possible reductions in value as well as other business expenses. All other items are presented below the operating profit. The share of profits in associated companies, currency changes and changes in derivative instruments are included in the operating profit if they arise from the business; otherwise, they are presented in the financial income and expenses.
The definitions of the other common alternative performance measures are listed below.
EBITDA = Operating profit + depreciations
Net gearing % = Interest-bearing liabilities – cash and deposits and short-term investments x 100
Total equity
Equity per share = Equity attributable to equity holders of the parent
Share issue adjusted number of the shares at the end of the period
SEGMENT-INFORMATION (MEUR)
| NET SALES OF GEOGRAPHICAL AREAS (MEUR) | 1-12/2021 12 months |
1-12/2020 12 months |
|
| Net sales | |||
| Europe | 57.0 | 64.5 | |
| Americas | 29.3 | 13.5 | |
| Asia | 0.5 | 0.4 | |
| Net sales total | 86.9 | 78.4 | |
| RELATED PARTY TRANSACTIONS | 1-12/2021 12 months |
1-12/2020 12 months |
|
| Employee benefits for key management and stock options expenses total, continuing operations | 1.4 | 1.5 | |
The Management of
| SHARE-BASED REMUNARATION OF THE MANAGEMENT | |
| Form of the reward | Shares |
| Grant date | |
| Total amount of the shares at the most | 111 900 |
| Share price at the grant date, EUR | 6.87 |
| Total expenses of the reward at the most, EUR million | 0.8 |
| Execution | In shares |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME BY QUARTER (MEUR) Continuing operations |
10-12/2021 3 months |
7-9/2021 3 months |
4-6/2021 3 months |
1-3/2021 3 months |
10-12/2020 3 months |
|
| NET SALES | 30.1 | 17.1 | 22.6 | 17.0 | 21.8 | |
| Other operating income | 0.8 | 0.5 | 0.7 | 0.6 | 0.3 | |
| Work performed by the undertaking for its own purpose and capitalized | 0.1 | 0.1 | 0.1 | 0.2 | 0.1 | |
| Raw materials | -9.1 | -4.1 | -6.4 | -3.7 | -6.0 | |
| Personnel expenses | -10.5 | -8.1 | -10.3 | -10.1 | -9.0 | |
| Depreciation | -2.9 | -2.6 | -2.5 | -2.5 | -3.0 | |
| Other operating expenses | -4.7 | -2.7 | -3.5 | -3.0 | -4.0 | |
| Share of profits in associated companies | -0.1 | -0.0 | 0.0 | -0.0 | -0.0 | |
| OPERATING PROFIT (LOSS) | 3.7 | 0.2 | 0.7 | -1.5 | 0.3 | |
| Financial income and expenses | -0.2 | -0.2 | -0.2 | -0.1 | -0.1 | |
| PROFIT BEFORE TAX | 3.5 | 0.1 | 0.5 | -1.6 | 0.2 | |
| Income tax | 0.8 | 0.0 | -0.0 | 0.0 | 0.5 | |
| PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS | 4.3 | 0.1 | 0.5 | -1.6 | 0.7 | |
| Discontinued operations | ||||||
| Profit for the period from discontinued operations | ||||||
| PROFIT FOR THE PERIOD | 4.3 | 0.1 | 0.5 | -1.6 | 0.7 | |
| Other comprehensive income | 0.0 | 0.1 | -0.0 | 0.1 | -0.1 | |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 4.3 | 0.2 | 0.5 | -1.4 | 0.6 | |
| Profit for the period attributable to: | ||||||
| Equity holders of the parent | 4.3 | 0.1 | 0.5 | -1.6 | 0.7 | |
| Total comprehensive income for the period attributable to: | ||||||
| Equity holders of the parent | 4.3 | 0.2 | 0.5 | -1.4 | 0.6 | |
| CONSOLIDATED STATEMENT OF CASH FLOWS BY QUARTER | 10-12/2021 3 months |
7-9/2021 3 months |
4-6/2021 3 months |
1-3/2021 3 months |
10-12/2020 3 months |
|
| Net cash from operating activities | 4.2 | 2.9 | 2.6 | -1.4 | 5.1 | |
| Net cash from investing activities | -1.6 | -1.6 | -2.3 | -2.9 | -4.1 | |
| Net cash from financing activities | -0.3 | -0.3 | -1.5 | -0.3 | -0.4 | |
| Net change in cash and cash equivalents | 2.2 | 1.0 | -1.1 | -4.6 | 0.6 |
| FINANCIAL PERFORMANCE RELATED RATIOS | 1-12/2021 12 months |
1-12/2020 12 months |
|
| STATEMENT OF COMPREHENSIVE INCOME (MEUR) | |||
| Net sales | 86.9 | 78.4 | |
| Operating profit (loss) | 3.2 | 2.1 | |
| Operating profit (loss). % of net sales | 3.7 | 2.7 | |
| Profit before taxes | 2.5 | 1.6 | |
| Profit before taxes. % of net sales | 2.9 | 2.1 | |
| Profit for the period from continuing operations | 3.3 | 2.2 | |
| PROFITABILITY AND OTHER KEY FIGURES | |||
| Interest-bearing net liabilities. (MEUR) | 0.2 | -2.1 | |
| Net gearing. -% | 0.2 | -1.9 | |
| Equity ratio. % | 72.4 | 73.1 | |
| Gross investments. (MEUR) | 9.6 | 17.4 | |
| Average personnel during the period. continuing operations | 664 | 673 | |
| Personnel at the period end. continuing operations | 653 | 684 | |
| AMOUNT OF SHARE ISSUE ADJUSTMENT (1.000 pcs) | |||
| At the end of period | 35 702 | 35 693 | |
| Average for the period | 35 700 | 35 693 | |
| Average for the period diluted with stock options | 35 700 | 35 693 | |
| STOCK-RELATED FINANCIAL RATIOS (EUR) | 1-12/2021 12 months |
1-12/2020 12 months |
|
| Earnings per share from continuing operations. EUR | |||
| Basic earnings per share | 0.093 | 0.061 | |
| Diluted earnings per share | 0.093 | 0.061 | |
| Earnings per share from discontinued operations. EUR | |||
| Basic earnings per share | |||
| Diluted earnings per share | |||
| Earnings per share from continuing and discontinued operations. EUR | |||
| Basic earnings per share | 0.093 | 0.061 | |
| Diluted earnings per share | 0.093 | 0.061 | |
| Equity *) per share | 3.27 | 3.20 | |
| *) Equity attributable to equity holders of the parent | |||
| MARKET VALUES OF SHARES (EUR) | 1-12/2021 12 months |
1-12/2020 12 months |
|
| Highest | 7.89 | 7.67 | |
| Lowest | 4.93 | 3.40 | |
| Average | 6.18 | 5.74 | |
| At the end of period | 5.30 | 5.79 | |
| Market value of the stock. (MEUR) | 189.2 | 206.7 | |
| Trading value of shares. (MEUR) | 83.2 | 117.9 | |
| Number of shares traded. (1.000 pcs) | 13 464 | 20 557 | |
| Related to average number of shares % | 37.7 | 57.6 | |
| SECURITIES AND CONTINGENT LIABILITIES (MEUR) | |||
| AGAINST OWN LIABILITIES | |||
| Floating charges | |||
| Mortgages are pledged for liabilities totaled | |||
| Guarantees | 3.0 | 0.1 | |
| Rental liabilities | |||
| Falling due in the next year | 0.0 | 0.1 | |
| Falling due after one year | |||
| Other contractual liabilities | |||
| Falling due in the next year | 1.4 | 2.3 | |
| Falling due after one year | 1.4 | 1.2 | |
| Material purchase commitments | 18.2 | 11.5 | |
| NOMINAL VALUE OF CURRENCY DERIVATIVES (MEUR) | |||
| Foreign exchange forward contracts | |||
| Market value | 0.0 | 0.0 | |
| Nominal value | 5.0 | 0.6 | |
https://mb.cision.com/Main/13623/3502451/1532608.pdf
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