ETTEPLAN OYJ: INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2007
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2007
ETTEPLAN'S REVENUE GROWS BY 28%, OPERATING PROFIT EUR 9.3 MILLION
- Consolidated revenue: EUR 92.4 million (72.3 million)
- Operating profit: EUR 9.3 million (4.7 million)
- Net profit: EUR 6.5 million (2.9 million)
- Earnings per share: EUR 0.32 (0.15)
- Personnel at the end of the period: 2,061 employees (1,530)
(The figures in parentheses refer to the corresponding period of the previous
year, unless otherwise indicated.)
The company has continued its strong, profitable growth and the company's
operations reached most of the targets set. Organic growth accounted for 13.8%
of revenue in the review period and the remainder was attributable to corporate
acquisitions. Both segments - Product Development and Delivery Design - have
seen growth, particularly in the company's main market area in the Nordic
region, where strong demand on the part of the Swedish vehicle manufacturing
industry, among others, has kept the capacity utilization rate at a high level.
The result trend for the Product Development division was not in accordance with
expectations during the third quarter, due to cost overruns in some fixed-price
orders and assignments. Good demand for design orders and information
technology, along with investments in internal operational efficiency measures,
have led to a high utilization rate and an improvement in profitability, from
the levels of the corresponding period of the previous year.
Third-quarter revenue and result
Etteplan's revenue in the third quarter of the year increased by 20.9% from that
for the corresponding period of 2006 and amounted to EUR 28.4 million (EUR 23.5
million). Third-quarter operating profit totalled EUR 1.9 million (EUR 1.7
million), representing 6.8% of revenue (7.0%).
Revenue and result for the review period
Etteplan's revenue showed a noticeable increase on the previous year's figure.
Revenue rose by 27.8% to EUR 92.4 million (EUR 72.3 million).
Operating profit during the period under review rose by 99.0%, coming to EUR 9.3
million (EUR 4.7 million), which represents 10.1% of revenue (6.5%). The
divestment of NATLABS Oy improved the operating profit for the review period,
with the booking of capital gains of EUR 0.84 million in the first quarter.
Profit for the period before taxes was EUR 9.1 million (EUR 4.6 million). Taxes
amounted to EUR 2.3 million (EUR 1.4 million). Taxes have been periodized in
line with the result for the review period. The income tax rate calculated on
profit before taxes in the consolidated income statement was 25.2% (29.8%).
Tax-exempt capital gains from the divestment of NATLABS Oy shares lowered the
tax rate for the period.
Net profit for the period came to EUR 6.5 million (EUR 2.9 million). Earnings
per share were EUR 0.32 (EUR 0.15). Equity per share grew by 33.7% to EUR 1.44
(EUR 1.08). Return on investment showed a clear improvement from the comparison
period, coming to 31.4% (22.1%).
Business operations
Etteplan operates as a partner to large and medium-sized internationally
operating industrial companies, providing industrial technology design services.
The Group's design services are provided by two segments: Delivery Design and
Product Development.
The Delivery Design segment provides a wide range of design services as well as
associated commissioning, site supervision, and training services for the design
of production facilities and their machinery and equipment.
The Product Development segment offers multi-sector design and implementation
services for product development as well as services for production of
information content. The services are based on long-term partnerships with
customers and are aimed at ensuring the customer's competitiveness in the
future.
The company's customer base comprises equipment manufacturers and end users in
the wood-processing industry as well as the process, automotive, lifting and
hoisting equipment and electronics industries.
Major events in the third quarter
In early September Etteplan Oyj acquired the entire share capital of Gesab AB in
accordance with an agreement signed in July. The acquisition was made public in
a stock exchange release dated 3 September 2007.
An extraordinary general meeting of Etteplan Oyj was held in Lahti on 21
September 2007. This meeting passed all of the motions of the Board of
Directors: to amend the Articles of Association, to make a share issue free of
charge, and to increase the share capital by means of a reserve increase. The
resolutions of the extraordinary general meeting have been detailed in a stock
exchange release dated 21 September 2007.
The free-of-charge share issue and the reserve increase decided upon at Etteplan
Oyj's extraordinary general meeting were implemented on 26 September 2007. Both
were detailed in a stock exchange release on the same day.
Etteplan received numerous major orders and assignments from its key customers
during the review period, one notable example being the assignment to implement
development of a new system using renewable energy received by Etteplan's Örebro
office from Minesto AB. The system is based on use of tidal currents as an
energy source.
Personnel
The Etteplan Group's operations and number of personnel have grown steadily.
There were, on average, 1,799 employees (1,470) on the Group's payroll during
the review period, and the number of staff at period end was 2,061 employees
(1,530). The number of employees rose due to active recruitment and the business
operations that became part of the Group; these employees are almost solely
assigned to implementation of customer projects. In Q3 the Group employed 1,031
people abroad (660).
Capital expenditures
The Group's total capital expenditure in the period under review amounted to EUR
12.8 million (EUR 12.3 million). The largest single investments were the
acquisition of the entire share capital of LCA Engineering Oy and of the
minority shares outstanding in ProTang AB, and the acquisition of the entire
share capital of Gesab AB. Other capital expenditures were earmarked for the
implementation and development of business operations.
Risks and risk management
Risk management within the Group encompasses corporate governance as well as
management of operational and financial risks. The Group's corporate governance
guidelines and quality system are the means applied for the supervision of
administrative risk within the Group. The risks are itemized in the notes to the
2006 financial statements.
Unpredictable changes in the backlog of customer orders pose the greatest risk
to the company's business. Owing to their nature, the company's business
operations involve no significant credit, environmental or foreign currency
risks.
Financial position
Total assets on 30 September 2007 increased by 37.5% to EUR 72.4 million (EUR
52.6 million). Balance sheet goodwill rose to EUR 29.2 million (EUR 16.2
million). The Group's cash and cash equivalents totaled EUR 2.9 million (EUR 4.4
million). The Group's interest-bearing liabilities increased because of the need
for working capital, which was due to financing of the Gesab acquisition and
seasonal variation during the review period, and stood at EUR 15.8 million (EUR
12.9 million) at the period end. The equity ratio was 41.3% (42.0%).
Shares
Shares in Etteplan Oyj (ETT1V) are quoted in the Nordic Exchange's Small Cap
market capitalization group in the "Industrials" sector.
The company's share capital on 30 September 2007 was EUR 5,000,000.00 and the
number of shares outstanding was 20,179,414. The company has one series of
shares. All shares confer an equal right to a dividend and the company's funds.
During the period under review, the company arranged a free-of-charge share
issue the shareholders of the company were issued new shares in proportion to
their holdings, such that they were entitled to one (1) new share of the company
free of charge against each share they owned. In total, 10,089,707 new shares
were issued free of charge in connection with this issue. The free-of-charge
share issue was reported upon in a stock exchange release on 26 September 2007.
The new shares became subject to public trading alongside the old ones on 27
September 2007.
During the review period, the company's share capital was increased via a
reserve increase, whereby EUR 2,477,573.25 was transferred from the share issue
premium to the share capital. Following the increase, the company's share
capital is EUR 5,000,000. The reserve increase was detailed in a stock exchange
release dated 26 September 2007.
The company did not hold any of its own shares on 30 September 2007. Nor did it
buy back any of its own shares during the period under review.
The authorizations to increase the share capital, to take out convertible loans
and/or issue option rights, and to buy back and transfer own shares (granted to
the Board of Directors at the Annual General Meeting of 29 March 2007) remain in
effect insofar as they have not been exercised. These authorizations are
detailed in their entirety in a stock exchange release dated 29 March 2007.
The authorizations granted to the Board of Directors by the extraordinary
general meeting of 21 September 2007 for a free share issue and a reserve
increase were exercised during the period under review. These authorizations
were detailed in their entirety in a 21 September 2007 stock exchange release.
Major events after the review period
In October, the Board of Directors of Etteplan Oyj appointed Matti Hyytiäinen,
M.Sc. (Econ.), age 47, as the new CEO of Etteplan Oyj, to take up the office on
1 January 2008. He will begin on 1 November 2008. He recently worked for KONE
Corporation as senior vice president for New Escalators.
The current CEO of Etteplan Oyj, Heikki Hornborg, has been appointed as the
chairman of the Etteplan Oyj Board of Directors to serve from 1 January 2008.
The current chairman, Tapani Mönkkönen, will continue as a member and the
vice-chairman of the Board of Directors from that date.
Outlook for the near future
The company's operations depend on the trend in the order backlog from customer
companies. Demand for industrial design services is expected to remain good in
the key market areas. The company's revenue is expected to grow both organically
and through acquisitions. Profitability for the full year is forecast to improve
from the preceding year.
The information presented herein has not been audited.
Hollola, 26 October 2007
Etteplan Oyj
Board of Directors
For additional information, please contact Heikki Hornborg, CEO, at tel. +358
400 873 063 or Pia Björk, CFO and vice president for Corporate Planning, at tel.
+358 400 241 815
APPENDICES
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Key Figures
Notes to the Interim Report
Releases and other corporate information are available on Etteplan's Web site at
www.etteplan.com.
DISTRIBUTION
OMX Nordic Exchange Helsinki
Principal media
www.etteplan.com
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| CONSOLIDATED INCOME | | | | | |
| STATEMENT | | | | | |
--------------------------------------------------------------------------------
| (EUR 1 000) | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 28 403 | 23 500 | 92 429 | 72 338 | 101 698 |
--------------------------------------------------------------------------------
| Other operating income | 33 | 101 | 1 005 | 169 | 219 |
--------------------------------------------------------------------------------
| Materials and services | -1 899 | -1 679 | -5 870 | -4 860 | -6 728 |
--------------------------------------------------------------------------------
| Staff costs | -20 056 | -16 082 | -63 925 | -50 935 | -71 111 |
--------------------------------------------------------------------------------
| Other operating expenses | -4 044 | -3 656 | -12 838 | -10 503 | -15 213 |
--------------------------------------------------------------------------------
| Depreciation and | -509 | -529 | -1 485 | -1 527 | -2 042 |
| amortisation | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 1 928 | 1 653 | 9 316 | 4 682 | 6 823 |
--------------------------------------------------------------------------------
| Financial income | 48 | -2 | 106 | 75 | 172 |
--------------------------------------------------------------------------------
| Financial expenses | -135 | -64 | -322 | -160 | -299 |
--------------------------------------------------------------------------------
| Profit before taxes | 1 843 | 1 588 | 9 101 | 4 597 | 6 695 |
--------------------------------------------------------------------------------
| Income taxes | -557 | -554 | -2 291 | -1 371 | -2 096 |
--------------------------------------------------------------------------------
| Profit for the financial | 1 285 | 1 034 | 6 809 | 3 226 | 4 599 |
| period | | | | | |
--------------------------------------------------------------------------------
| Net profit for the | | | | | |
| financial | | | | | |
--------------------------------------------------------------------------------
| period attributable to | | | | | |
--------------------------------------------------------------------------------
| minority interest | -71 | -113 | -322 | -307 | -427 |
--------------------------------------------------------------------------------
| Net profit for the | | | | | |
| financial | | | | | |
--------------------------------------------------------------------------------
| period attributable to | | | | | |
| equity | | | | | |
--------------------------------------------------------------------------------
| holders of the Company | 1 214 | 920 | 6 487 | 2 918 | 4 172 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per | | | 0,32 | 0,15 | 0,22 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings | | | | | |
--------------------------------------------------------------------------------
| per share, EUR | | | 0,32 | 0,15 | 0,22 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 2 234 | 3 013 | 2 759 |
--------------------------------------------------------------------------------
| Goodwill | 29 156 | 16 156 | 18 580 |
--------------------------------------------------------------------------------
| Other intangible assets | 2 327 | 4 119 | 2 124 |
--------------------------------------------------------------------------------
| Investments available for sales | 420 | 465 | 425 |
--------------------------------------------------------------------------------
| Other long-term receivables | 835 | 0 | 852 |
--------------------------------------------------------------------------------
| Deferred tax assets | 210 | 13 | 88 |
--------------------------------------------------------------------------------
| Non-current assets, total | 35 180 | 23 767 | 24 829 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 33 948 | 24 326 | 24 191 |
--------------------------------------------------------------------------------
| Current tax assets | 350 | 122 | 28 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2 910 | 4 426 | 6 174 |
--------------------------------------------------------------------------------
| Current assets, total | 37 209 | 28 874 | 30 393 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 72 389 | 52 641 | 55 222 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Capital attributable to | | | |
--------------------------------------------------------------------------------
| equity holders | | | |
--------------------------------------------------------------------------------
| Share capital | 5 000 | 2 443 | 2 443 |
--------------------------------------------------------------------------------
| Share premium account | 6 701 | 9 179 | 9 179 |
--------------------------------------------------------------------------------
| Unrestricted equity fund | 2 601 | 0 | 0 |
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| Cumulative translation | | | |
--------------------------------------------------------------------------------
| adjustment | 4 | -191 | 43 |
--------------------------------------------------------------------------------
| Retained earnings | 8 339 | 6 759 | 6 759 |
--------------------------------------------------------------------------------
| Net profit for | | | |
--------------------------------------------------------------------------------
| the financial period | 6 487 | 2 918 | 4 172 |
--------------------------------------------------------------------------------
| Capital attributable to | | | |
--------------------------------------------------------------------------------
| equity holders, total | 29 132 | 21 109 | 22 596 |
--------------------------------------------------------------------------------
| Minority interest | 568 | 783 | 872 |
--------------------------------------------------------------------------------
| Equity, total | 29 701 | 21 892 | 23 468 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 959 | 874 | 1 046 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | | | |
--------------------------------------------------------------------------------
| liabilities | 12 680 | 9 194 | 8 967 |
--------------------------------------------------------------------------------
| Non-current liabilities, total | 13 640 | 10 068 | 10 013 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | | | |
--------------------------------------------------------------------------------
| liabilities | 3 141 | 3 673 | 1 837 |
--------------------------------------------------------------------------------
| Trade and other payables | 24 137 | 16 692 | 19 522 |
--------------------------------------------------------------------------------
| Current income tax liabilities | 1 771 | 316 | 382 |
--------------------------------------------------------------------------------
| Current liabilities, total | 29 049 | 20 681 | 21 741 |
--------------------------------------------------------------------------------
| Liabilities, total | 42 688 | 30 749 | 31 754 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 72 389 | 52 641 | 55 222 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | 1-9/2007 | 1-9/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating cash flow | | | |
--------------------------------------------------------------------------------
| Cash receipts from customers | 86 751 | 70 774 | 99 290 |
--------------------------------------------------------------------------------
| Cash receipts from other operating | 165 | 153 | 194 |
| income | | | |
--------------------------------------------------------------------------------
| Operating expenses paid | 81 607 | 67 492 | 90 851 |
--------------------------------------------------------------------------------
| Operating cash flow before financial | | | |
--------------------------------------------------------------------------------
| items and taxes | 5 309 | 3 436 | 8 633 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest and payment paid for | | | |
--------------------------------------------------------------------------------
| financial expenses | 286 | 142 | 249 |
--------------------------------------------------------------------------------
| Interest received | 106 | 75 | 172 |
--------------------------------------------------------------------------------
| Income taxes paid | 1 380 | 1 344 | 1 782 |
--------------------------------------------------------------------------------
| Operating cash flow ( A ) | 3 749 | 2 024 | 6 773 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investment cash flow | | | |
--------------------------------------------------------------------------------
| Purchase of tangible and intangible | 810 | 1 653 | 1 612 |
| assets | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 8 299 | 9 405 | 9 952 |
--------------------------------------------------------------------------------
| Disposal of subsidiaries | 633 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible and | | | |
--------------------------------------------------------------------------------
| intangible assets | 46 | 155 | 212 |
--------------------------------------------------------------------------------
| Purchase of other investment | 0 | 0 | 476 |
--------------------------------------------------------------------------------
| Proceeds from repayments of loans | 540 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from sale of investments | 5 | 464 | 464 |
--------------------------------------------------------------------------------
| Investment cash flow ( B ) | -7 885 | -10 439 | -11 363 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing cash flow | | | |
--------------------------------------------------------------------------------
| Short-term loans, increase | 0 | 1 332 | 1 332 |
--------------------------------------------------------------------------------
| Short-term loans, decrease | 0 | 0 | 1 332 |
--------------------------------------------------------------------------------
| Long-term loans, increase | 5 293 | 9 897 | 11 335 |
--------------------------------------------------------------------------------
| Long-term loans, decrease | 1 597 | 914 | 3 108 |
--------------------------------------------------------------------------------
| Dividend paid and other profit | 2 776 | 1 923 | 1 923 |
| distribution | | | |
--------------------------------------------------------------------------------
| Financing cash flow ( C ) | 920 | 8 392 | 6 305 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Variation in working capital (A + B + C) | | | |
--------------------------------------------------------------------------------
| increase ( + ) / decrease ( - ) | -3 216 | -23 | 1 715 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets in the beginning of the period | 6 174 | 4 445 | 4 445 |
--------------------------------------------------------------------------------
| Exchange gains or losses on cash and | | | |
--------------------------------------------------------------------------------
| bank equivalents | 48 | -4 | -14 |
--------------------------------------------------------------------------------
| Assets at the end of the period | 2 910 | 4 426 | 6 174 |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(1 000 EUR)
Legends for table columns
A) Share Capital
B) Share Premium Account
C) Unrestricted Equity Fund
D) Cumulative Translation Adjustment
E) Retained Earnings
F) Minority Interest
G) Total
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2006 | 2 403 | 8 269 | 0 | -251 | 8 682 | 1 360 | 20 463 |
--------------------------------------------------------------------------------
| Dividends | | | | | -1 923 | -184 | -2 107 |
--------------------------------------------------------------------------------
| Share issue | 40 | 910 | | | | | 950 |
--------------------------------------------------------------------------------
| Changes | | | | | | | |
--------------------------------------------------------------------------------
| in ownership | | | | | | -731 | -731 |
--------------------------------------------------------------------------------
| Net profit | | | | | | | |
| for | | | | | | | |
--------------------------------------------------------------------------------
| the | | | | | | | |
| financial | | | | | | | |
--------------------------------------------------------------------------------
| period | | | | | 4 172 | 427 | 4 599 |
--------------------------------------------------------------------------------
| Translation | | | | | | | |
--------------------------------------------------------------------------------
| adjustment | | | | 294 | | | 294 |
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 31.12.2006 | 2 443 | 9 179 | 0 | 43 | 10 931 | 872 | 23 468 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2007 | 2 443 | 9 179 | 0 | 43 | 10 931 | 872 | 23 468 |
--------------------------------------------------------------------------------
| Dividends | | | | | -2 592 | -201 | -2 793 |
--------------------------------------------------------------------------------
| Share issue | 2 557 | -2 | 2 601 | | | | 2 680 |
| | | 478 | | | | | |
--------------------------------------------------------------------------------
| Changes | | | | | | | |
--------------------------------------------------------------------------------
| in ownership | | | | | | -424 | -424 |
--------------------------------------------------------------------------------
| Net profit | | | | | | | |
| for | | | | | | | |
--------------------------------------------------------------------------------
| the | | | | | | | |
| financial | | | | | | | |
--------------------------------------------------------------------------------
| period | | | | | 6 487 | 321 | 6 808 |
--------------------------------------------------------------------------------
| Translation | | | | | | | |
--------------------------------------------------------------------------------
| adjustment | | | | -38 | | | -38 |
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 30.9.2007 | 5 000 | 6 701 | 2 601 | 4 | 14 826 | 568 | 29 701 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2006 | 2 403 | 8 269 | 0 | -251 | 8 682 | 1 360 | 20 463 |
--------------------------------------------------------------------------------
| Dividends | | | | | -1 923 | -184 | -2 107 |
--------------------------------------------------------------------------------
| Share issue | 40 | 910 | | | | | 950 |
--------------------------------------------------------------------------------
| Changes | | | | | | | |
--------------------------------------------------------------------------------
| in ownership | | | | | | -700 | -700 |
--------------------------------------------------------------------------------
| Net profit | | | | | | | |
| for | | | | | | | |
--------------------------------------------------------------------------------
| the | | | | | | | |
| financial | | | | | | | |
--------------------------------------------------------------------------------
| period | | | | | 2 918 | 307 | 3 225 |
--------------------------------------------------------------------------------
| Translation | | | | | | | |
--------------------------------------------------------------------------------
| adjustment | | | | 61 | | | 61 |
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 30.9.2006 | 2 443 | 9 179 | 0 | -190 | 9 677 | 783 | 21 892 |
--------------------------------------------------------------------------------
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| KEY FIGURES | | | | |
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| (EUR 1 000) | 1-9/2007 | 1-9/2006 | 1-12/2006 | Change to |
--------------------------------------------------------------------------------
| | | | | prior year |
--------------------------------------------------------------------------------
| Revenue | 92 429 | 72 338 | 101 698 | 27,8 % |
--------------------------------------------------------------------------------
| Operating profit | 9 316 | 4 682 | 6 823 | 99,0 % |
--------------------------------------------------------------------------------
| Operating profit % | 10,1 | 6,5 | 6,7 | |
--------------------------------------------------------------------------------
| Profit before taxes | 9 101 | 4 597 | 6 695 | 98,0 % |
--------------------------------------------------------------------------------
| Profit before taxes, % | 9,8 | 6,4 | 6,6 | |
--------------------------------------------------------------------------------
| Return of equity, % | 34,1 | 20,3 | 20,9 | |
--------------------------------------------------------------------------------
| Return of investment, % | 31,4 | 22,1 | 24,6 | |
--------------------------------------------------------------------------------
| Equity ratio % | 41,3 | 42,0 | 42,6 | |
--------------------------------------------------------------------------------
| Gross interest-bearing debt | 15 821 | 12 867 | 10 804 | 23,0 % |
--------------------------------------------------------------------------------
| Net gearing % | 43,5 | 38,6 | 19,7 | |
--------------------------------------------------------------------------------
| Balance sheet, total | 72 389 | 52 641 | 55 222 | 37,5 % |
--------------------------------------------------------------------------------
| Gross investments | 12 798 | 12 281 | 12 512 | 4,2 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0,32 | 0,15 | 0,22 | 115,3 % |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1,44 | 1,08 | 1,16 | 33,7 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, average | 1 799 | 1 470 | 1 501 | 22,4 % |
--------------------------------------------------------------------------------
| Personnel at end of the | 2 061 | 1 530 | 1 586 | 34,7 % |
| period | | | | |
--------------------------------------------------------------------------------
The accounting policy and method of presentation for the key figures are the
same as for the 2006 financial statements.
NOTES TO THE INTERIM REPORT
General
The parent company of the Etteplan Group is Etteplan Oyj. Etteplan Oyj (the
Company) is a Finnish public limited company that has been established under
Finnish law. The Company is domiciled in Hollola. The Company's shares are
listed on the Nordic Exchange List.
Etteplan Oyj and its subsidiaries provide high-quality industrial technology
design services. The business is divided into two segments: Product Development
and Delivery Design. The Other Operations segment consists of administration.
The Group's main market area is Europe. In respect of our core customers,
Etteplan's service extends worldwide.
A copy of the consolidated financial statements can be obtained from our Web
site at www.etteplan.com or from the head office of the Group's parent company
at Terveystie 18, 15860 Hollola.
Etteplan Oyj's Board of Directors approved the interim report for publication at
its meeting of 25 October 2007.
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 2006
annual financial statements, but not all requirements of the IAS standard for
interim financial reporting have been followed in accounting.
Monetary figures in this interim report are presented in thousands of euros. All
figures in the financial statement tables have been rounded up or down, due to
which the sums of figures may deviate from the sum total presented.
New standards, amendments, and interpretations that entered into effect at the
beginning of the 2007 financial year:
IFRS 7 Financial Instruments: Disclosures
IAS 1 Presentation of Financial Statements: Disclosures about Capital
IFRIC 8 Scope of Application of IFRS 2
IFRIC 9 Reassessment of Embedded Derivatives
IFRIC 10 Interim Financial Reporting and Impairment
It is the view of the company's management that the other standards and
interpretations that came into force do not have a significant effect on the
Group's interim report.
Use of Estimates
This interim report includes forward-looking estimates and assumptions. Outcomes
may deviate from these estimates and assumptions. The estimates are based on the
management's current best knowledge.
Business Combinations
On 10 January 2007, the Group acquired a 100% holding in LCA Engineering Oy, a
company that provides design services. Company agreements and customer
relationships are not recognized as assets in connection with this acquisition,
since the customer agreements are non-binding outline agreements by nature and
therefore cannot be separated or sold as such. In Etteplan Oyj's management's
opinion, the cost of acquisition exceeding the value of the net assets of the
acquired company is goodwill by nature because it is related to the competence
of the management and personnel of the acquired company, its market position and
the operational synergies sought.
On 11 June 2007, the Group acquired a 26.84% minority stake in ProTang AB.
Following this acquisition, Etteplan Oyj has a 100% holding in the company.
Goodwill for EUR 1,641 thousand for the acquisition was recognized on the
balance sheet.
On 4 July 2007, the Group acquired a 100% holding in Gesab AB, a company that
provides consulting services for industry. Company agreements and customer
relationships are not recognized as assets in connection with this acquisition,
since the customer agreements are non-binding outline agreements by nature and
therefore cannot be separated or sold as such. In Etteplan Oyj's management's
opinion, the cost of acquisition exceeding the value of the net assets of the
acquired company is goodwill by nature because it is related to the competence
of the management and personnel of the acquired company, its market position and
the operational synergies sought.
Shares and Share Capital
In accordance with a resolution passed at the extraordinary general meeting of
shareholders on 21 September 2007, the shareholders have been issued new shares
free of charge in proportion to their current ownership. Under the resolution,
the shareholders of the company are entitled to have one (1) new share free of
charge against each share they own. In total, 10,089,707 new shares of the
company were issued free of charge in connection with the share issue. On 30
September 2007, Etteplan had 20,179,414 shares and share capital amounted to EUR
5,000,000.
Operating Profit
The operating profit figure in this interim report includes EUR 839 thousand in
proceeds from the divestment of Etteplan subsidiary NATLABS Oy. It has been
recorded as a non-recurring item under other operating income.
Income Taxes
The taxes in the consolidated income statement have been calculated using the
tax rate appropriate for the forecast full-year result. The estimated average
effective tax rate for the year has been set separately for each country. The
effective tax rate in this interim report is 24.8%. The lowered tax rate is a
result of tax-exempt capital gains from the divestment of a subsidiary.
