ETTEPLAN OYJ: FINANCIAL STATEMENT BULLETIN, JANUARY 1 - DECEMBER 31, 2008
ETTEPLAN OYJ Stock Exchange Release February 12, 2009, 9:30am
FINANCIAL STATEMENT BULLETIN, JANUARY 1 - DECEMBER 31, 2008
Etteplan in 2008: A year of strong growth
Review period October-December 2008
- The Group's fourth quarter revenue increased by 14.3% to EUR 40.7 million
(10-12/2007: EUR 35.6 million).
- Operating profit was EUR 2.3 million (EUR 2.3 million).
- Profit for continuing operations for the period was EUR 1.3 million
(EUR 1.5 million).
- Earnings per share were EUR 0.06 (EUR 0.08).
- The number of personnel at the end of the period was 2,142 (2,197).
Review period January-December 2008
- The Group's revenue increased by 29.1% to EUR 161.6 million
(1-12/2007: EUR 125.2 million).
- Operating profit grew by 14.5% to EUR 12.3 million (EUR 10.8 million).
- The profit for continuing operations for the period was EUR 8.2 million
(EUR 7.5 million).
- Earnings per share were EUR 0.41 (EUR 0.38).
- The Board of Directors proposes a dividend of EUR 0.15 per share.
Key figures (EUR 1 000)
10-12/2008 10-12/2007 1-12/2008 1-12/2007
Revenue 40 655 35 563 161 614 125 192
Operating profit 2 263 2 285 12 349 10 788 *)
Operating profit, % 5,6 6,4 7,6 8,6 *)
Profit for the period 1 256 1 521 8 155 7 517 *)
Profit for the period, % 3,1 4,3 5,0 6,0 *)
Equity ratio, % 34,2 40,7 34,2 40,7
Net gearing % 54,6 25,7 54,6 25,7
Total assets 78 880 72 426 78 880 72 426
*) In the comparative figures for 2007, capital gains of EUR 0.84 million for
the sale of NATLABS Oy have been eliminated.
Matti Hyytiäinen, President and CEO, comments the financial statement as
follows:
“We are satisfied with the development of our business operations in 2008. We
were able to expand our selection of services through determined efforts and to
generate growth both with our existing customers and through new customer
relationships. We are particularly happy about our customers' growing interest
in our technical product information services and our new competence that we
have increased with our recent acquisitions.
We look upon today's challenging market situation as an opportunity to
strengthen our market position. We will continue our investments in development
programs aimed at improving service capabilities and efficient use of
resources.”
Key customer approach basis for transferring to one segment
Etteplan provides services for various stages in the life cycle of its
customers' products, from product development to product maintenance. For this
reason, Etteplan has reorganized its operations such that services are provided
on a key customer basis and not by design phase. As a result, the company has
stopped reporting for two separate segments and transferred to one segment,
which better depicts the current operations.
Accounting principles
The financial statements have been prepared in accordance with IAS 34 Interim
Financial Reporting and the preparation and accounting policies presented in the
2007 annual financial statements.
REPORT FOR OCTOBER-DECEMBER 2008
Business review for October-December
The company continued its profitable growth during the period. In
October-December, however, the increasing economic uncertainty was reflected in
design operations, and this was manifested as a decrease in the number of design
commissions and cancellations of commissions that had been agreed upon. Demand
fluctuated intensely between Etteplan's various customer industries in
October-December. Demand for technical design and product information was good
in the energy and power transmission sector; in the aerospace and defense
equipment industries; in design of elevators, hoists, and cranes; and in plant
engineering. Demand for design of heavy vehicles remained good almost until the
end of the review period. Demand for design services in the automotive industry
and among equipment manufacturers in the forest industry decreased rapidly
during the period under review. In the review period, the Group's design
capacity utilization rate was good, except for design in the automotive industry
and among forest industry equipment manufacturers.
In the last quarter of the year, Etteplan started a reorganization of its design
operations in the automotive industry. The purpose is to guarantee long-term
profitability of the business. The reorganization had an impact on the personnel
in Sweden. Approximately 100 workers employed in automotive design were laid
off. The reductions were put into force during the review period.
During the period under review, Etteplan started personnel negotiations to
reduce the number of employees in Finland, too. The reductions consist of
temporary and permanent layoffs. In December 2008, decisions were made to reduce
the amount of personnel with about 90 employees, mainly through temporary
layoffs. The layoffs will be carried out in the first two quarters of 2009.
Financial development for October-December
In October-December revenue increased by 14.3% from that of the corresponding
period of the previous year and amounted to EUR 40.7 million (10-12/2007:
EUR 35.6 million).
Operating profit was EUR 2.3 million (EUR 2.3 million).
Major events in October-December
Etteplan renewed its operating model and organization to correspond the customer
industries, at the end of the review period. The objective is to provide
technical design and product information services more effectively to key
customers.
In its November meeting, the Board of Directors of Etteplan Oyj confirmed
Etteplan Oyj's new Management Group. The new composition of the Management Group
supports the company's development into an ever more international entity. As of
January 1, 2009, the members of the Management Group are Matti Hyytiäinen,
President and CEO; Tom Andersson, Vice President; Pia Björk, Vice President,
Operations Development and M&A; Per-Anders Gådin, Chief Financial Officer; Risto
Koivunen, Vice President; Outi-Maria Liedes, Vice President, HR and
Communications; and Juha Näkki, Vice President. The company's current Executive
Vice President, Jukka Rausti, became Senior Executive adviser of the Board of
Directors and reports to the Chairman of the Board.
REPORT FOR JANUARY-DECEMBER 2008
Business review for January-December
The year 2008 was a period of strong growth for Etteplan. Demand for technical
design and product information was, on average, good in January-December 2008,
except for the rapid decline in demand at the end of the year. Demand remained
at a good level throughout the review period in the energy and power
transmission sector, the aerospace and defense equipment industries, and
manufacturing of medical technology equipment. In the first three quarters, the
Group's design capacity utilization rate was good, but deteriorated in the
automotive industry and among forest industry equipment manufacturers'
commissions in the last quarter. The most significant sources of growth in 2008
were the heavy vehicle and aerospace industries, as well as plant engineering.
New business operations acquired in 2007 and 2008 performed well under
Etteplan's ownership.
Revenue
In 2008, Etteplan's revenue increased by 29.1%, from that of the corresponding
period of the previous year and amounted to EUR 161.6 million (1-12/2007:
EUR 125.2 million). Organic growth accounted for 10.6% of revenue growth in the
review period, with the rest attributable to corporate acquisitions.
Result
Operating profit increased by 14.5% to EUR 12.3 million (EUR 10.8 million), or
7.6% (8.6%) of revenue.
Profit for continuing operations before taxes for the financial year was EUR
11.3 million (EUR 10.5 million). Taxes amounted to EUR 3.1 million (EUR 3.0
million). Taxes have been periodized in line with the result for the period. The
income tax rate calculated on profit before taxes in the consolidated income
statement was 27.7% (26.5%).
The profit for continuing operations for the financial year was EUR 8.2 million
(EUR 7.5 million). Earnings per share were EUR 0.41 (EUR 0.38). Equity per share
was EUR 1.37 (EUR 1.44). Return on investment was 28.7% (30.4%).
Financial position and cash flow
The balance sheet total as of December 31, 2008, had increased by 8.9% to EUR
78.9 million (EUR 72.4 million). Goodwill on the balance sheet was EUR 33.2
million (EUR 29.4 million). The Group's cash and cash equivalents stood at
EUR 1.9 million (EUR 7.2 million). The Group's interest-bearing liabilities
showed an increase because of the need for working capital that resulted from
corporate acquisitions and on account of business growth, amounting to EUR 16.6
million (EUR 14.8 million) at period end. The equity ratio was 34.2% (40.7%).
The change in the equity ratio was mainly attributable to the change in the
value of balance sheet items denominated in the Swedish krona, caused by the
deterioration in the exchange rate between the krona and the euro. Acquiring of
company's own shares also influenced the decline of equity ratio. The cash flow
before investments and financial items totaled EUR 9.2 million (EUR 9.8
million).
The corporate finance market, which tightened notably during the review period,
has not had an effect on the availability of financing for Etteplan Group. The
Group has met its financing needs.
Capital expenditure
The Group's gross investments in the period under review were EUR 12.1 million
(EUR 13.2 million). The investments were partially financed with company-held
shares. The largest single investments were the acquisition of all share capital
of Cool Engineering AB, increase of ownership in Etteplan Technical Information
Oy to 100%, and completion of the Lutab Professor Sten Luthander Ingenjörsbyrå
AB and Innovation Team AB acquisitions. The rest of the investments were for
business operations and business development.
Acquisitions in 2008 and new business operations
In January, the company finalized its acquisition of Swedish Lutab Professor
Sten Luthander Ingenjörsbyrå AB in accordance with the agreement concluded in
October 2007.
At the beginning of January, Etteplan Oyj signed an agreement to acquire the
entire share capital of the Swedish Cool Engineering AB. The company,
established in 1989, provides testing and analysis services for the automotive
industry in particular. The agreement complements Etteplan's extensive expertise
in the automotive industry.
In January, Etteplan Oyj increased its ownership in Etteplan Technical
Information Oy from 70% to 100%.
Etteplan signed an agreement with Vataple Group to join forces to develop
engineering design and technical product information services in China. In
accordance with the agreement, the joint venture started operations on August 1,
2008. This joint venture, Etteplan Vataple Technology Centre Ltd, provides
technical design and product information services to Etteplan and its
subsidiaries. The technology center enables Etteplan to build new design
capacity for its current and new customers. Vataple Group is a privately held
company that has operations in Australia, the U.S., and China.
Etteplan Oyj signed an agreement to acquire the entire share capital of Eteco
Oy. Established in 1987, Eteco Oy specializes in calculation and design services
for pressurized equipment and pipe systems. The company employs 11 people. The
acquisition took effect on July 1, 2008.
In July, Etteplan Oyj signed an agreement to acquire a majority stake in the
Swedish Innovation Team AB. The company, established in 1989, specializes in
product development services. The company's customer base consists primarily of
equipment manufacturers in the medical technology industry and other
high-technology companies in the energy and telecommunications industries.
Personnel
Etteplan Group's operations and number of personnel grew steadily. The number of
the Group's personnel averaged 2,188 (1,895) during the review period and was
2,142 (1,949) at end of the year. Increases in staff numbers were mostly due to
the business operations transferred to the Group. Outside Finland, the Group
employed 1,069 people (915) at period end.
Assessment of operating risks and uncertainty factors
Risks related to Etteplan Group's business operations are divided into external
and internal risks, and the risks are monitored according to this
classification.
External risks
External risks include risks concerning economic development on the whole and
unpredictable changes in customers' order books, which are classified as the
greatest risk in the company's business operations. During the period under
review, demand in the automotive industry and among forest industry equipment
manufacturers declined strongly.
The company controls the effects of increased financial uncertainty by actively
supervising its receivables and by working to enhance its debt collection
processes.
Increasing economic uncertainty and difficulty of availability of financing
among customers may lead to cancellations of design commissions or a increasing
credit loss risk.
Internal risks
Internal risks include strategic and operating risks, as well as financing
risks.
Etteplan's most significant strategic risks relate to development of business
operations and acquisitions. The company aims to manage these risks by following
its acquisitions policy and applying procedures and models that have been
prepared on the basis of this policy. In addition to acquisitions, organic
growth is an important part of the growth objectives for Etteplan's business.
Etteplan's greatest operating risks are related to commissions and personnel.
The company's commissions have a risk of services or performances including a
professional error, omissions, or negligence that could cause significant
financial or other damage. In order to contain operating risks, the company
applies the following procedures: application of quality management systems,
codes of practice, and acceptance procedures, coupled with training of personnel
and compliance with instructions on management of quotes and contracts,
particularly in delimitation of contractual liability. The company has a
liability insurance coverage that encompasses the entire Group. However,
insurance does not cover all liability risk. The company's business is based on
professional personnel, so availability of competent professionals is an
important factor in ensuring profitable growth and continued business
operations.
Increasing economic uncertainty causes intense demand fluctuations in business
operations. A prerequisite for maintaining profitability and financing position
is flexibility in use of personnel resources. Flexible use of personnel
resources is an economic challenge, especially in Sweden.
The Group aims to minimize its refinancing risk through a balanced maturity
schedule for its loan portfolio, sufficient maturity of loans, and use of
several different financing institutions as sources of financing.
Reviews concerning financing risks are presented in the notes to the financial
statements.
Annual General Meeting in 2008
The Etteplan Oyj Annual General Meeting was held in Vantaa on March 28, 2008.
The Board of Directors was confirmed as having five members. Tapio Hakakari,
Heikki Hornborg, Tapani Mönkkönen, Pertti Nupponen, and Matti Virtaala were
reelected as members of the Board. At its organizational meeting of March 28,
2008, the Board elected Heikki Hornborg as chairman and Tapani Mönkkönen as
vice-chairman.
The AGM granted the Board of Directors the authorization to decide upon an issue
of no more than 4,000,000 shares with a share issue or by granting option rights
or other specific rights, referred to in Chapter 10, Article 1 of the Companies
Act, giving entitlement to shares in one or more lots. The authorization
includes the right to decide to issue either new shares or company-held shares.
The authorization is valid for three years from the time of the Annual General
Meeting resolution - i.e., from March 28, 2008, through March 28, 2011. The
Board has not used its authorization since the AGM.
In addition, the AGM authorized the Board of Directors to decide to acquire the
company's own shares in one or more lots with the company's non-restricted
equity. The acquisition of the company's own shares may be done in a proportion
other than that of the shareholders' share ownership; in other words, the Board
of Directors may also decide on directed acquisition of the company's own
shares. The authorization is valid for 18 months from the Annual General Meeting
resolution, beginning on March 28, 2008, and ending on September 28, 2009.
As auditor the Annual General Meeting elected PricewaterhouseCoopers Oy, a firm
of authorized public accountants, with Mika Kaarisalo, APA, acting as chief
auditor.
The Annual General Meeting passed a resolution on a motion by the Board of
Directors to pay a dividend for the 2007 financial year of EUR 0.21 per share,
or a total of EUR 4,224,733.80. The remaining profit, totaling EUR 9.2 million,
was retained in non-restricted equity. The dividend was paid on April 9, 2008.
Shares, share price development, and share buy-back
Shares in Etteplan Oyj (ETT1V) are quoted in the Nordic NASDAQ OMX's Small Cap
market capitalization group in the "Industrials" sector.
The company's share capital on December 31, 2008, was EUR 5,000,000.00, and the
number of shares outstanding was 20,179,414. There were no changes in the share
capital during the period under review. The company has one series of shares.
All shares confer an equal right to dividends and the company's funds.
The number of Etteplan Oyj shares traded during the financial year was
8,191,610, to a total value of EUR 34.3 million. The share price low was EUR
2.30, the high EUR 5.35, the average EUR 4.16, and the closing price EUR 2.80.
Market capitalization on December 31, 2008 was EUR 56.5 million, and there were
1,807 shareholders.
The company held 499,176 of its own shares on December 31, 2008. In
January−December 2008, the company acquired 580,642 of its own shares. The
company disposed of 296,166 company-held shares in January-December 2008.
Share-based incentive plan for key personnel
The Etteplan Oyj Board of Directors decided on a new share-based incentive plan
for key personnel. The plan includes three earnings periods: calendar years
2008, 2009, and 2010. The first year of payment is 2009.
The plan commenced at the beginning of 2008, and it comprises 37 people. The
Board of Directors has made a decision on the people who are part of the plan,
only with respect to the 2008 earnings period. The share-based incentive plan
offers the target group the opportunity to receive Etteplan Oyj shares as
remuneration.
The amount of remuneration paid is linked to objectives that are set on an
annual basis; for the 2008 financial year, they related to revenue and operating
profit. At the beginning of each earnings period, the Board of Directors
confirms the target group and specifies the maximum number of shares that can be
earned. Remunerations paid out from the incentive plan are paid in three earning
periods, as company shares and partly in cash. The part paid in cash covers the
taxes and tax-like fees paid for the remuneration. An earnings period is
followed by a mandatory two-year ownership period. During the three earnings
periods, the total of remunerations shall correspond to the value of 720,000
Etteplan Oyj shares at maximum.
If employment is terminated during the earnings or ownership period, the key
person is not entitled to shares.
Notification of changes in shareholdings
With a transaction completed on September 29, 2008, Ingman Finance Oy Ab's
holding of Etteplan Oyj share capital and voting rights exceeded the 15% level.
With a transaction completed on October 22, 2008, where the seller was Ingman
Finance Oy Ab, Ingman Group Oy Ab's holding of Etteplan Oyj share capital and
voting rights exceeded the 15% level. Consequently Ingman Finance Oy Ab's
ownership declined to 0 %.
Oy Fincorp Ab has renewed its futures contract, which expired on December 19,
2008. Oy Fincorp Ab's holding in Etteplan Oyj still exceeds one tenth. The
renewed futures contract is valid until December 18, 2009.
Outlook for 2009
The instability in the market and the crisis in the financial markets have an
impact on industrial investments and on the development of our customers'
business operations. We estimate that demand for technical design and product
information will decline in 2009 due to changes in our customers' order books.
In research and development projects we estimate that our customers continue to
invest in R&D.
The 2009 revenue of Etteplan Group is estimated to decline and the operating
profit to weaken in comparison to year 2008. Potential acquisitions in 2009 are
note included in the estimate.
Board's proposal for distribution of 2008 profits
The parent company's distributable shareholders' equity according to the balance
sheet on December 31, 2008, is EUR 16.9 million.
The Board of Directors will propose to the Annual General Meeting, which will
convene on March 26, 2009, that on the dividend payout date a dividend of EUR
0.15 per share be paid on the company's externally owned shares and that the
remaining profit be transferred to retained earnings. It is the Board's opinion
that the proposed distribution of dividends will not endanger the company's
solvency. In accordance with the Board's proposal, the record date for the
dividend payout is March 31, 2009 and the date of dividend payout is April 7,
2009.
Financial information in 2009
Etteplan Oyj's interim reports will be published as follows:
First quarter, 3 months Wednesday, April 29, 2009
Second quarter, 6 months Wednesday, August 12, 2009
Third quarter, 9 months Thursday, October 29, 2009
Annual General Meeting in 2009
Etteplan Oyj's 2009 Annual General Meeting will be held at Sibelius Hall in
Lahti, Finland, on March 26, 2009, starting at 1pm. Summons to the AGM will be
published as a separate release.
Hollola, February 12, 2009
Etteplan Oyj
Board of Directors
More information:
Matti Hyytiäinen, President and CEO, at tel. +358 400 710 968
No auditor's report on the financial statement bulletin has been submitted.
APPENDIX:
Financial Statement Summary and Notes
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Key Figures
Notes to the Financial Statement Summary
Releases and other corporate information are available on Etteplan's Web site at
www.etteplan.com.
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Major media
www.etteplan.com
These financial statements include forward-looking estimates and assumptions.
Accordingly, outcomes may differ from these estimates, which are based on the
management's current best knowledge.
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| CONSOLIDATED INCOME STATEMENT |
--------------------------------------------------------------------------------
| (EUR 1 000) | 10-12/ | 10-12/ | 1-12/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2008 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Revenue | 40 655 | 35 563 | 161 614 | 125 192 |
--------------------------------------------------------------------------------
| Other operating income | 139 | 125 | 263 | 1 130 |
--------------------------------------------------------------------------------
| Materials and services | -3 834 | -2 175 | -12 391 | -7 941 |
--------------------------------------------------------------------------------
| Staff costs | -28 479 | -24 798 | -110 384 | -86 486 |
--------------------------------------------------------------------------------
| Other operating expenses | -5 710 | -5 926 | -24 862 | -18 351 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | -508 | -504 | -1 892 | -1 917 |
--------------------------------------------------------------------------------
| Operating profit | 2 263 | 2 285 | 12 349 | 11 628 |
--------------------------------------------------------------------------------
| Financial income | 125 | 174 | 228 | 280 |
--------------------------------------------------------------------------------
| Financial expenses | -527 | -213 | -1 293 | -534 |
--------------------------------------------------------------------------------
| Profit before taxes | 1 862 | 2 246 | 11 285 | 11 373 |
--------------------------------------------------------------------------------
| Income taxes | -606 | -725 | -3 130 | -3 016 |
--------------------------------------------------------------------------------
| Profit for the financial year | 1 256 | 1 521 | 8 155 | 8 357 |
| Continuing operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations |
--------------------------------------------------------------------------------
| Profit/loss for the financial | 0 | -119 | -140 | -146 |
| year, discontinuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
| Profit for the financial year | 1 256 | 1 402 | 8 015 | 8 211 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to |
--------------------------------------------------------------------------------
| Equity holders of the company | 1 246 | 1 360 | 7 997 | 7 848 |
--------------------------------------------------------------------------------
| Minority interest | 10 | 42 | 18 | 363 |
--------------------------------------------------------------------------------
| | 1 256 | 1 402 | 8 015 | 8 211 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share calculated | | | | |
| from the result of parent | | | | |
| company shareholders | | | | |
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0,06 | 0,08 | 0,41 | 0,40 |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0,06 | 0,08 | 0,41 | 0,40 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0,00 | -0,01 | -0,01 | -0,01 |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0,00 | -0,01 | -0,01 | -0,01 |
| EUR | | | | |
--------------------------------------------------------------------------------
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| CONSOLIDATED BALANCE SHEET |
--------------------------------------------------------------------------------
| (EUR 1 000) | 31.12.2008 | 31.12.2007 |
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| ASSETS |
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| Non-current assets | |
--------------------------------------------------------------------------------
| Tangible assets | 2 478 | 1 951 |
--------------------------------------------------------------------------------
| Goodwill | 33 207 | 29 426 |
--------------------------------------------------------------------------------
| Other intangible assets | 1 566 | 1 459 |
--------------------------------------------------------------------------------
| Shares in associated companies | 17 | 0 |
--------------------------------------------------------------------------------
| Investments available for sales | 411 | 409 |
--------------------------------------------------------------------------------
| Other long-term receivables | 551 | 816 |
--------------------------------------------------------------------------------
| Deferred tax assets | 191 | 34 |
--------------------------------------------------------------------------------
| Non-current assets, total | 38 421 | 34 096 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets |
--------------------------------------------------------------------------------
| Trade and other receivables | 37 242 | 30 890 |
--------------------------------------------------------------------------------
| Current tax assets | 1 338 | 198 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 1 879 | 7 243 |
--------------------------------------------------------------------------------
| Current assets, total | 40 459 | 38 330 |
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| TOTAL ASSETS | 78 880 | 72 426 |
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| EQUITY AND LIABILITIES |
--------------------------------------------------------------------------------
| Capital attributable to equity holders | |
--------------------------------------------------------------------------------
| Share capital | 5 000 | 5 000 |
--------------------------------------------------------------------------------
| Share premium account | 6 701 | 6 701 |
--------------------------------------------------------------------------------
| Unrestricted equity fund | 2 474 | 2 601 |
--------------------------------------------------------------------------------
| Own shares | -2 025 | -962 |
--------------------------------------------------------------------------------
| Cumulative translation adjustment | -5 188 | -823 |
--------------------------------------------------------------------------------
| Retained earnings | 11 962 | 8 339 |
--------------------------------------------------------------------------------
| Net profit for the financial year | 7 997 | 7 848 |
--------------------------------------------------------------------------------
| Capital attributable to equity holders, | 26 921 | 28 704 |
| total | | |
--------------------------------------------------------------------------------
| Minority interest | 79 | 597 |
--------------------------------------------------------------------------------
| Equity, total | 27 000 | 29 301 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities |
--------------------------------------------------------------------------------
| Deferred tax liability | 1 537 | 1 511 |
--------------------------------------------------------------------------------
| Non-current interest-bearing liabilities | 9 981 | 11 606 |
--------------------------------------------------------------------------------
| Non-current liabilities, total | 11 517 | 13 117 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities |
--------------------------------------------------------------------------------
| Current interest-bearing liabilities | 6 635 | 3 170 |
--------------------------------------------------------------------------------
| Trade and other payables | 33 425 | 25 415 |
--------------------------------------------------------------------------------
| Current income tax liabilities | 303 | 1 422 |
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| Current liabilities, total | 40 363 | 30 008 |
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| Liabilities, total | 51 880 | 43 125 |
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| TOTAL EQUITY AND LIABILITIES | 78 880 | 72 426 |
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| CONSOLIDATED CASH FLOW STATEMENT |
--------------------------------------------------------------------------------
| (EUR 1 000) | 1-12/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2008 | 2007 |
--------------------------------------------------------------------------------
| Operating cash flow |
--------------------------------------------------------------------------------
| Cash receipts from customers | 158 729 | 121 031 |
--------------------------------------------------------------------------------
| Cash receipts from other operating income | 245 | 277 |
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| Operating expenses paid | 143 861 | 109 430 |
--------------------------------------------------------------------------------
| Operating cash flow before financial items and | 15 113 | 11 878 |
| taxes | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest and payment paid for financial expenses | 1 131 | 491 |
--------------------------------------------------------------------------------
| Interest received | 228 | 280 |
--------------------------------------------------------------------------------
| Income taxes paid | 5 055 | 1 881 |
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| Operating cash flow ( A ) | 9 155 | 9 787 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investing cash flow |
--------------------------------------------------------------------------------
| Purchase of tangible and intangible assets | 1 774 | 834 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 7 582 | 8 271 |
--------------------------------------------------------------------------------
| Disposal of subsidiaries | 0 | 578 |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible and intangible | 60 | 86 |
| assets | | |
--------------------------------------------------------------------------------
| Proceeds from repayments of loans | 0 | 540 |
--------------------------------------------------------------------------------
| Proceeds from sale of investments | 47 | 5 |
--------------------------------------------------------------------------------
| Investing cash flow ( B ) | -9 249 | -7 896 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing cash flow |
--------------------------------------------------------------------------------
| Purchase of own shares | 2 523 | 962 |
--------------------------------------------------------------------------------
| Short-term loans, increase | 3 437 | 0 |
--------------------------------------------------------------------------------
| Long-term loans, increase | 2 544 | 5 128 |
--------------------------------------------------------------------------------
| Long-term loans, decrease | 4 007 | 2 108 |
--------------------------------------------------------------------------------
| Dividend paid and other profit distribution | 4 225 | 2 776 |
--------------------------------------------------------------------------------
| Financing cash flow ( C ) | -4 774 | -718 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Variation in cash (A + B + C) | |
--------------------------------------------------------------------------------
| increase ( + ) / decrease ( - ) | -4 868 | 1 173 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets in the beginning of the period | 7 243 | 6 174 |
--------------------------------------------------------------------------------
| Exchange gains or losses on cash and bank | -496 | -104 |
| equivalents | | |
--------------------------------------------------------------------------------
| Assets at the end of the period | 1 879 | 7 243 |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(EUR 1 000)
Legends for table columns
A) Share Capital
B) Share Premium Account
C) Unrestricted Equity Fund
D) Own shares
E) Cumulative Translation Adjustment
F) Retained Earnings
G) Minority Interest
H) Total
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G | H |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 2 443 | 9 179 | 0 | 0 | 43 | 10 931 | 872 | 23 468 |
| 1.1.2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -2 592 | -201 | -2 793 |
--------------------------------------------------------------------------------
| Share | 2 557 | -2 | 2 601 | | | | | 2 680 |
| issue | | 478 | | | | | | |
--------------------------------------------------------------------------------
| Purchase | | | | -962 | | | | -962 |
| of own | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Changes | | | | | | | -437 | -437 |
| in | | | | | | | | |
| ownership | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | | 7 848 | 363 | 8 211 |
| profit | | | | | | | | |
| for the | | | | | | | | |
| financial | | | | | | | | |
| year | | | | | | | | |
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| Translati | | | | | -866 | | | -866 |
| on | | | | | | | | |
| adjustmen | | | | | | | | |
| t | | | | | | | | |
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| Equity | 5 000 | 6 701 | 2 601 | -962 | -823 | 16 187 | 597 | 29 301 |
| 31.12.200 | | | | | | | | |
| 7 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 601 | -962 | -823 | 16 187 | 597 | 29 301 |
| 1.1.2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4 225 | | -4 225 |
--------------------------------------------------------------------------------
| Purchase | | | | -2 | | | | -2 523 |
| of own | | | | 523 | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Disposal | | | -127 | 1 401 | | | | 1 274 |
| of own | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | | 59 | | | | 59 |
| be issued | | | | | | | | |
--------------------------------------------------------------------------------
| Changes | | | | | | | -536 | -536 |
| in | | | | | | | | |
| ownership | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | | 7 997 | 18 | 8 015 |
| profit | | | | | | | | |
| for the | | | | | | | | |
| financial | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Translati | | | | | -4 | | | -4 365 |
| on | | | | | 365 | | | |
| adjustmen | | | | | | | | |
| t | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 474 | -2 | -5 | 19 959 | 79 | 27 000 |
| 31.12.200 | | | | 025 | 188 | | | |
| 8 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 1-12/ | 1-12/ | Change to |
--------------------------------------------------------------------------------
| (EUR 1 000) | 2008 | 2007 | prev.year |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 161 614 | 125 192 | 29,1 % |
--------------------------------------------------------------------------------
| Operating profit | 12 349 | 11 628 | 6,2 % |
--------------------------------------------------------------------------------
| Operating profit, % | 7,6 | 9,3 | |
--------------------------------------------------------------------------------
| Profit before taxes | 11 285 | 11 374 | -0,8 % |
--------------------------------------------------------------------------------
| Profit before taxes, % | 7,0 | 9,1 | |
--------------------------------------------------------------------------------
| Return on equity, % | 29,0 | 31,7 | |
--------------------------------------------------------------------------------
| Return on investment, % *) | 28,7 | 30,4 | |
--------------------------------------------------------------------------------
| Equity ratio % | 34,2 | 40,7 | |
--------------------------------------------------------------------------------
| Gross interest-bearing debt | 16 615 | 14 777 | 12,4 % |
--------------------------------------------------------------------------------
| Net gearing, % | 54,6 | 25,7 | |
--------------------------------------------------------------------------------
| Balance sheet, total | 78 880 | 72 426 | 8,9 % |
--------------------------------------------------------------------------------
| Gross investments | 12 082 | 13 197 | -8,5 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0,41 | 0,40 | 2,1 % |
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR | 0,41 | 0,40 | 3,0 % |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1,37 | 1,44 | -4,9 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, average | 2 188 | 1 895 | 15,5 % |
--------------------------------------------------------------------------------
| Personnel at end of the period | 2 142 | 1 949 | 9,9 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Return on investment has been calculated from result before taxes |
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENT BULLETIN
General
The parent company of Etteplan Group is Etteplan Oyj (“the Company”), a Finnish
public limited company established under Finnish law. The Company is domiciled
in Hollola. The Company's shares are quoted on the exchange of NASDAQ OMX
Helsinki Ltd.
Etteplan Oyj and its subsidiaries provide high-quality industrial technology
design services. The Group's main market area is Europe. For our core customers,
Etteplan's services extend worldwide.
The Etteplan Oyj Board of Directors approved the interim report for publication
at its meeting of February 11, 2009.
Basis for preparation
The interim report has been prepared in accordance with IAS 34 Interim Financial
Reporting and the preparation and accounting policies presented in the 2007
annual financial statements.
Monetary figures in the interim report are presented in thousands of euros. All
figures in the tables have been rounded up or down, due to which the sums of
figures may deviate from the sum totals presented.
At the beginning of 2008, the Group started applying the amended requirements of
IFRS 2 (Share-Based Payments). Apart from this, the accounting principles used
were the same as for the 2007 annual financial statements. The annual financial
statements are available at www.etteplan.com/investors/etteplan07.pdf, and the
accounting policy is detailed on pages 24-27 of the annual report 2007.
Use of estimates
The financial statements include forward-looking estimates and assumptions.
Accordingly, outcomes may differ from these estimates, which are based on the
management's current best knowledge.
Segment information
Etteplan provides services for various stages in the life cycle of its
customers' products, from product development to product maintenance. For this
reason, Etteplan has reorganized its operations such that services are provided
on a key customer basis and not by design phase. As a result, the Company has
ceased reporting for two separate segments and transferred to one segment, which
better depicts the current operations.
Acquired business operations and other investments
In January 2008, the Company finalized its acquisition of Swedish Lutab
Professor Sten Luthander Ingenjörsbyrå AB in accordance with the agreement
concluded in October 2007. Also in January, Etteplan acquired all share capital
of Cool Engineering AB and increased its ownership in Etteplan Technical
Information Oy to a full 100%. In July 2008, the Group acquired 100% ownership
of Eteco Oy and signed an agreement to acquire a 91% share of Innovation Team
AB. In the view of Etteplan's management, the customer accounts and agreements
that were acquired cannot as a rule be considered to constitute an asset item
that is to be recorded in the balance sheet, because customer agreements are by
nature nonbinding framework agreements and thus cannot be treated or sold
separately. The joint purchase price for these share transactions was EUR 10,020
thousand, the fair value of the assets acquired was EUR 2,626 thousand and the
goodwill was EUR 7,395 thousand. Other investments were for equipment and
software needed in business operations.
--------------------------------------------------------------------------------
| Details of net assets acquired and goodwill are as follows: |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Fair value | Carrying amount |
--------------------------------------------------------------------------------
| | EUR 1 000 | EUR 1 000 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase consideration: |
--------------------------------------------------------------------------------
| -Cash paid | 8 747 | 8 747 |
--------------------------------------------------------------------------------
| -Fair value of disposed company-held | 1 274 | 1 274 |
| shares | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total purchase consideration | 10 020 | 10 020 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair value of net assets acquired | 2 626 | 2 626 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Goodwill | 7 395 | 7 395 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The assets and liabilities arising from | | |
| the acquisition are as follows: | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Minority interest | 541 | 541 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 1 185 | 1 185 |
--------------------------------------------------------------------------------
| Intangible assets | 100 | 100 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 193 | 193 |
--------------------------------------------------------------------------------
| Trade receivables | 2 394 | 2 394 |
--------------------------------------------------------------------------------
| Other receivables | 562 | 562 |
--------------------------------------------------------------------------------
| Current payables | -2 349 | -2 349 |
--------------------------------------------------------------------------------
| Net assets | 2 626 | 2 626 |
--------------------------------------------------------------------------------
| Fair value of net assets acquired | 2 626 | 2 626 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase consideration settled in cash | 8 747 | 8 747 |
--------------------------------------------------------------------------------
| Cash and cash equivalents in subsidiary | 1 185 | 1 185 |
| acquired | | |
--------------------------------------------------------------------------------
| Cash outflow on acquisition | 7 562 | 7 562 |
--------------------------------------------------------------------------------
Etteplan Group turnover for year 2008 would have been EUR 164 million if
acquired operations would have been consolidated for the full fiscal year.
--------------------------------------------------------------------------------
| Intangible assets and property, plant and equipment | |
--------------------------------------------------------------------------------
| (EUR 1 000) | Property, | Goodwill | Other |
| | plant, | | intangible |
| | equipment | | assets |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost 1.1.2008 | 11 334 | 29 426 | 5 229 |
--------------------------------------------------------------------------------
| Exchange difference | -447 | -3 020 | -83 |
--------------------------------------------------------------------------------
| Corporate transactions | 634 | 0 | 0 |
--------------------------------------------------------------------------------
| Increases | 1 703 | 6 801 | 701 |
--------------------------------------------------------------------------------
| Decreases | -49 | 0 | -8 |
--------------------------------------------------------------------------------
| Acquisition cost 31.12.2008 | 13 175 | 33 207 | 5 839 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | 9 383 | 0 | 3 770 |
| impairment 1.1.2008 | | | |
--------------------------------------------------------------------------------
| Exchange difference | -407 | 0 | -44 |
--------------------------------------------------------------------------------
| Corporate transactions | 409 | 0 | 0 |
--------------------------------------------------------------------------------
| Depreciation | 1 312 | 0 | 547 |
--------------------------------------------------------------------------------
| Accumulated depreciation and | 10 697 | 0 | 4 272 |
| impairment 31.12.2008 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value 31.12.2008 | 2 478 | 33 207 | 1 566 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisition cost 1.1.2007 | 11 640 | 19 256 | 5 427 |
--------------------------------------------------------------------------------
| Exchange difference | -148 | -556 | -98 |
--------------------------------------------------------------------------------
| Corporate transactions | -758 | 0 | -700 |
--------------------------------------------------------------------------------
| Increases | 850 | 10 727 | 615 |
--------------------------------------------------------------------------------
| Decreases | -249 | 0 | -15 |
--------------------------------------------------------------------------------
| Acquisition cost 31.12.2007 | 11 334 | 29 426 | 5 229 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation and | 8 860 | 0 | 3 766 |
| impairment 1.1.2007 | | | |
--------------------------------------------------------------------------------
| Exchange difference | -137 | 0 | -38 |
--------------------------------------------------------------------------------
| Corporate transactions | -498 | 0 | -586 |
--------------------------------------------------------------------------------
| Depreciation from decreases | -196 | 0 | 0 |
--------------------------------------------------------------------------------
| Depreciation | 1 355 | 0 | 628 |
--------------------------------------------------------------------------------
| Accumulated depreciation and | 9 383 | 0 | 3 770 |
| impairment 31.12.2007 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value 31.12.2007 | 1 951 | 29 426 | 1 459 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing loans | | |
--------------------------------------------------------------------------------
| (EUR 1 000) | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current | 9 981 | 11 606 |
--------------------------------------------------------------------------------
| Current | 6 635 | 3 170 |
--------------------------------------------------------------------------------
| Total | 16 615 | 14 776 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Pledges, mortgages and guarantees |
--------------------------------------------------------------------------------
| (EUR 1 000) | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For own debts |
--------------------------------------------------------------------------------
| Other contingencies | 427 | 6 548 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing liabilities |
--------------------------------------------------------------------------------
| For payment under year | 1 648 | 2 196 |
--------------------------------------------------------------------------------
| For payment 1-5 years | 3 135 | 924 |
--------------------------------------------------------------------------------
| Total | 4 784 | 3 120 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivatives | | | |
--------------------------------------------------------------------------------
| | | | 2008 | 2007 |
--------------------------------------------------------------------------------
| Interest rate swaps | | | |
--------------------------------------------------------------------------------
| Fair value | | | 0 | - |
--------------------------------------------------------------------------------
| Nominal value | | 5786 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate options | | | |
--------------------------------------------------------------------------------
| Fair value | | | -103 | 35 |
--------------------------------------------------------------------------------
| Nominal value | | 8679 | 8679 |
--------------------------------------------------------------------------------
Acquisition and disposition of company shares
During 2008, the Company acquired 580,642 and disposed of 296,166 Company-held
shares. At the end of the review period, it owned 499,176 of its own shares.
Shares and share capital
On December 31, 2008, Etteplan Oyj had 20,179,414 shares (including the shares
held by the Company) and share capital amounted to EUR 5,000,000.00.
Dividends
On March 28, 2008, the Annual General Meeting passed a resolution on a motion by
the Board of Directors to pay a dividend for the 2007 financial year of EUR 0.21
per share, or a total of EUR 4,224,733.80. The dividend was paid on April 9,
2008.
Related-party transactions
The Group's related parties include the Group's key personnel: the members of
the Board of Directors and the CEO. Related parties also include subsidiaries
and companies in which related-party key employees have significant holdings and
control.
--------------------------------------------------------------------------------
| The following transactions were carried out with related parties: |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1 000) | 31.12.2008 | 31.12.2007 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales of services | |
--------------------------------------------------------------------------------
| To other in related-party | 53 | 100 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Purchase of goods and services | |
--------------------------------------------------------------------------------
| Office premises rents | | |
--------------------------------------------------------------------------------
| Key management personnel | 95 | 92 | |
--------------------------------------------------------------------------------
| From other in related-party | 285 | 222 | |
--------------------------------------------------------------------------------
| Total | 381 | 314 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Receivables and payables year end balances arising from sales |
--------------------------------------------------------------------------------
| and purchase of goods and services | |
--------------------------------------------------------------------------------
| Receivables from other | | |
--------------------------------------------------------------------------------
| in related-party | 2 | 7 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Closed-down operations
Etteplan Engineering GmbH, in Germany, is classed as a closed-down operation.
The Group's result for the financial year includes an expense item of EUR 140
thousand that relates to closed-down operations.
--------------------------------------------------------------------------------
| Discontinuing operations |
--------------------------------------------------------------------------------
| (EUR 1 000) | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement |
--------------------------------------------------------------------------------
| Revenue | 0 | 2 800 |
--------------------------------------------------------------------------------
| Expenses | -140 | -2 946 |
--------------------------------------------------------------------------------
| Profit/loss before taxes | -140 | -146 |
--------------------------------------------------------------------------------
| Net profit for discontinuing operations | -140 | -146 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow statement |
--------------------------------------------------------------------------------
| Operating cash flow | -140 | -187 |
--------------------------------------------------------------------------------
| Investing cash flow | 0 | -17 |
--------------------------------------------------------------------------------
| Financing cash flow | 0 | 9 |
--------------------------------------------------------------------------------
| Change in cash | -140 | -195 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Effect of discontinuing operations to | | |
| Etteplan financial position | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets |
--------------------------------------------------------------------------------
| Property, plant and equipment | 0 | 74 |
--------------------------------------------------------------------------------
| Other intangible assets | 0 | 29 |
--------------------------------------------------------------------------------
| Receivables | 0 | 717 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 0 | 2 |
--------------------------------------------------------------------------------
| Assets total | 0 | 821 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities |
--------------------------------------------------------------------------------
| Interest bearing loans | 0 | 312 |
--------------------------------------------------------------------------------
| Trade and other payables | 0 | 417 |
--------------------------------------------------------------------------------
| Liabilities total | 0 | 729 |
--------------------------------------------------------------------------------
Income taxes
The taxes listed in the consolidated income statement have been calculated with
the tax rate appropriate for the projected full-year result. The estimated
average effective tax rate for the year has been set separately for each
relevant country. The effective tax rate used in the interim report is 27.6
(26.6)%.
Management of financing risks
In its business operations, Etteplan Group is exposed to several financial
risks: foreign-currency, interest, financing and liquidity, counterparty and
credit risks.
The objective of financial risk management is to protect the Group against
unfavorable changes occurring in the financial markets. Management of financial
risks has been centralized with the Group's Treasury, which is responsible for
identification and evaluation of, and protection against, the Group's financial
risks.
Foreign-currency risk
The Group is exposed to foreign-currency risks related to different currencies,
which come about as a result of foreign-currency-denominated commercial
transactions and from translation of foreign-currency-denominated items into the
reporting currency. The majority of Etteplan Group's business operations are
handled in the currency of the project country of the respective Group company.
In the period under review, the Group did not have significant transaction risks
generated from the currency flow in foreign currencies, and the Group did not
take steps to protect itself against transaction risks.
The Group is exposed to a translation risk caused by fluctuations in foreign
currency exchange rates, when it translates balance sheet items of subsidiaries
based outside the euro area into its reporting currency. In the period under
review, the Group did not protect itself from the currency risks related to the
shareholders' equity of these companies.
Interest risk
Etteplan Group is exposed to interest risk in two ways: because of changes in
value for balance sheet items (i.e., a price risk) and cash flow risk caused by
changes in market interest rates. The Group manages the interest risk by
diversifying its loan portfolio to include loans with fixed and variable
interest rates, and with interest rate derivative contracts.
Financing and liquidity risk
Etteplan Group aims to guarantee solid liquidity in all market conditions
through efficient cash management. The Group uses credit limits tied to
cash-pool arrangements for short-term financing. The Group aims to minimize its
refinancing risk through applying a balanced maturity schedule for its loan
portfolio, ensuring sufficient maturity of loans, and using several different
banks as sources of financing.
Counterparty and credit risk
Financial instrument contracts that Etteplan Group has concluded with banks have
the associated risk of the counterparty being unable to fulfill its obligations
under the contract. Credit risk related to business operations arises out of a
customer's inability to perform its contractual obligations.
In order to minimize the counterparty risk, the Group has concluded its
significant refinancing contracts with leading Nordic banks that have a good
credit rating.
A considerable proportion of the Group's business operations focus on large,
financially solid companies that operate internationally. The Group aims to
guarantee that services are sold to only those with an appropriate credit
rating. The Company strives to control the effects of increased financial
uncertainty by actively monitoring its receivables and by working to enhance its
debt collection processes.
--------------------------------------------------------------------------------
| Major shareholders | | |
--------------------------------------------------------------------------------
| December 31, 2008 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Number of | Holding of |
| | shares | shares and |
| | | votes, % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Mönkkönen Tapani | 4 075 600 | 20,20 |
--------------------------------------------------------------------------------
| Ingman Group Oy Ab | 3 427 000 | 16,98 |
--------------------------------------------------------------------------------
| Evli Bank Plc. | 1 183 228 | 5,86 |
--------------------------------------------------------------------------------
| Hornborg Heikki | 1 144 720 | 5,67 |
--------------------------------------------------------------------------------
| Oy Fincorp Ab | 1 056 943 | 5,24 |
--------------------------------------------------------------------------------
| Varma Mutual Pension Insurance Company | 608 328 | 3,01 |
--------------------------------------------------------------------------------
| Etteplan Oyj | 495 160 | 2,45 |
--------------------------------------------------------------------------------
| Aiff Ulf | 468 320 | 2,32 |
--------------------------------------------------------------------------------
| Nordea Bank Finland Plc. | 377 174 | 1,87 |
--------------------------------------------------------------------------------
| Fondita Nordic Micro Cap Placeringsfond | 370 000 | 1,83 |
--------------------------------------------------------------------------------
| Tuori Klaus | 358 624 | 1,78 |
--------------------------------------------------------------------------------
| Alfred Berg Finland Fund | 323 290 | 1,60 |
--------------------------------------------------------------------------------
| Hakakari Tapio | 306 180 | 1,52 |
--------------------------------------------------------------------------------
| Svenska Handelsbanken AB (Publ), | 302 728 | 1,50 |
| Filialverksamheten i Finland | | |
--------------------------------------------------------------------------------
| Aktia Capital Small Cap Fund | 298 200 | 1,48 |
--------------------------------------------------------------------------------
| Alfred Berg Small Cap Fund | 295 000 | 1,46 |
--------------------------------------------------------------------------------
| Tuori Aino | 256 896 | 1,27 |
--------------------------------------------------------------------------------
| Kempe Anna | 245 651 | 1,22 |
--------------------------------------------------------------------------------
| Tuori Kaius | 178 370 | 0,88 |
--------------------------------------------------------------------------------
| Hietala Pekka | 150 544 | 0,75 |
--------------------------------------------------------------------------------
| Other shareholders | 4 257 458 | 21,10 |
--------------------------------------------------------------------------------
| Total | 20 179 414 | 100,00 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominee-registrated shares | 863 940 | 4,28 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| REVENUE AND OPERATING PROFIT QUARTERLY | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1 000) | Q4/2008 | Q3/2008 | Q2/2008 | Q1/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 40 655 | 36 198 | 44 085 | 40 675 |
--------------------------------------------------------------------------------
| Operating profit | 2 263 | 2 175 | 4 184 | 3 727 |
--------------------------------------------------------------------------------
| % of revenue | 5,6 | 6,0 | 9,5 | 9,2 |
--------------------------------------------------------------------------------
