Martela Corporation’s Half Year Report 1 January – 30 June 2021

The January–June 2021 revenue and operating result decreased compared to previous year.

April–June 2021

• Revenue was EUR 18.6 million (20.6), representing a change of -9.8 %
• Operating result was EUR -2.0 million (0.0)
• Operating profit per revenue was -10.6 % (0.0%)
• The result for the period was EUR -2.1 million (0.1 )
• Earnings per share amounted to EUR -0.46 (0.02)

January–June 2021

• Revenue was EUR 38.5 million (42.3), representing a change of -9.0 %
• Comparable operating result was EUR -3.5 million (-2.8)
• Operating result was EUR -4.0 million (-2.8)
• Operating profit per revenue was -10.3 % (-6.7%)
• The result for the period was EUR -4.4 million (-3.4 )
• Earnings per share amounted to EUR -0.98 (-0.82)

Outlook

Outlook for 2021

The Martela Group anticipates that its revenue and operating result in 2021 will improve compared to the previous year. Due to current situation, visibility to second half of the year is even more
challenging than normally and company is actively monitoring the situation.

Key figures, EUR million

Artti Aurasmaa, CEO:

“Continuing corona pandemic in the second quarter of this year and related strong remote work recommendation as well as general uncertainty in the market impacted our revenue negatively. Our revenue decreased by 9.8 % in the second quarter compared to same period last year. Revenue in the second quarter was EUR 18.6 million. January – June revenue decreased by 9.0% compared to same period last year and was EUR 38.5 million.

New orders increased in the second quarter which indicates that work communites have started to prepare for post covid era and returning to the offices. How fast demand will recover to normal level will be strongly dependent on the progress of the pandemic and how that will affect decisions of our customers on returning to offices.

Our operating result decreased in the second quarter compared to the same period last year and was EUR -2.0 million (0.0). Most siginificant reason for the decreased operating result was decrease in our sales margin. This was impacted propotonial size of project deals. increased competition and exceptionally strong increase in raw material prices. Second quarter sales margin was also impacted costs related to preparations for the thrid quarter deliveries. Operating result for January – June was EUR -4.0 (-2.8) million. Operating result includes onetime expenses of EUR 0.6 million, which relates to layoffs resulting from cooperation negotiations concluded earlier this year.

The coronavirus pandemic and the uncertainty caused by it is still impacting negatively to the market situation. We are not expecting the market conditions to imporove during the first six months of this year. It is still difficult to estimate how the current conditions will impact our midterm revenue and operating result development. However I believe that turn for the better is closer and we are ready to meet the increase in demand driven by the positive market development. Despite the pandemic we have maintained excellent delivery accuracy and customer satisfaction level and this gives us good foothold to spring for new growth when pandemic and remote work recommendations finally end.

We believe that working environments will permanently change in the future. The coronavirus pandemic has accelerated the process of changing the way we work. The office is just one of the many places where we work from, and for some of us the amount of remote work will increase for good. This will increase the demand for multipurpose working spaces and the need to invest in remote working conditions. We will continue together with our customers to be a forerunner in creating user centric working environments, which will improve user experience, efficiency and innovation capabilities as well as lower the overall costs. We will meet our customers needs for increased flexibility in workplace with our WaaS concept, which we have piloted and actively developed further during the last winter. Interest towards our concept has been encouraging and we expect it to have a positive impact on our business in the second half of this year.”

Market situation

The coronavirus pandemic has had a negative impact on the whole market environment of Martela, both in Scandinavia and in other countries. This has impacted especially the commercial sector. The negative impact has been slightly smaller on the public sector. At the moment it is challenging to say what the midterm impacts to general market conditions will be and how long the uncertainty in the markets will continue.

BRIEFING

A briefing will not be held due to the prevailing pandemic situation, but additional information can be asked by telephone from Artti Aurasmaa and Kalle Lehtonen on Friday 13^th of August 2021 from 12 a.m. to 2 p.m. EET.

Martela Corporation
Board of Directors

Matti Rantaniemi
CEO

Further information
Matti Rantaniemi, CEO, tel. +358 50 465 8194
Kalle Lehtonen, CFO, tel. +358 40 053 9968

Distribution
Nasdaq OMX Helsinki
Key news media

www.martela.com

Our strategic direction is defined by our mission “Better working” and our vision “People-centric workplaces”. Martela supplies user-centric workplaces where the users and their wellbeing are what matter most. We focus on the Nordic countries because, based on our common open work culture and needs, the Nordic countries are leaders in hybrid workplaces.

Attachment

• 2021_0813 Q2 Half Year Report