Etteplan in 2012: Revenue and operating profit grew clearly

ETTEPLAN OYJ FINANCIAL STATEMENT RELEASE FEBRUARY 14, 2013 AT 02:00 P.M.

ETTEPLAN IN 2012: REVENUE AND OPERATING PROFIT GREW CLEARLY

Review period October-December 2012

- The Group’s revenue grew by 6.7% and was EUR 34.9 million
  (10-12/2011: EUR 32.7 million).
- Operating profit decreased 6.0% and was EUR 1.9 million (EUR 2.0 million).
- The profit for the review period was EUR 1.2 million (EUR 1.4 million).
- Operating cash flow increased and was EUR 8.5 million (EUR 8.1 million).
- Earnings per share were EUR 0.06 (EUR 0.05).
- The Group had 1,776 employees at the end of the period (1,659).

Review period January-December 2012

- The Group’s revenue grew by 12.6% and was EUR 134.5 million
  (1-12/2011: EUR 119.4 million).
- Operating profit increased by 26.6% and was EUR 8.7 million (EUR 6.9 million).
- The profit for the review period was EUR 5.6 million (EUR 4.6 million).
- Operating cash flow increased and was EUR 11.3 million (EUR 7.0 million).
- Earnings per share were EUR 0.29 (EUR 0.20).
- Etteplan acquired in March the entire share capital of Dutch-based Tedopres
  International B.V., a company focusing on technical product information solutions.
- The Board of Directors proposes a dividend of EUR 0.15 per share.

Outlook 2013

Market outlook
Changes in Etteplan’s customers’ order books quickly influence the development of Etteplan’s revenue. At the end of the review period, the order books of Etteplan’s major customers were, on average, at a lower level than in the corresponding period in 2011. We anticipate the demand for engineering design services in early 2013 to remain unchanged from the end of 2012 and subsequently improve towards the end of the year.

Financial guidance
We expect the revenue and operating profit for the year 2013 to grow compared to 2012. The operating profit will accumulate towards the end of the year.

Key figures

Juha Näkki, President and CEO of Etteplan Oyj comments the financial statement release:

Etteplan’s business operations developed favorably in 2012. Our revenue and operating profit increased clearly and we achieved the highest cash flow in company’s history. Our financial position strengthened and our possibilities to develop the Group further improved.

Demand for Etteplan’s services was at a good level in the early part of 2012. Continued uncertainty in the markets was reflected in weaker demand later in the year, which led to growth slowing down, particularly in the fourth quarter. Faced with challenging market conditions, our customers sought to implement increasingly efficient operating models. Our service products allowed us to offer our customers substantial cost savings. As a result, our market share in global key customers grew and our revenue continued to increase also through the fourth quarter.

Our acquisition strategy is to increase company’s competence. We continued to execute this strategy when we acquired the Dutch-based Tedopres International, a company specializing in technical product information solutions. With the acquisition, Etteplan now offers the leading service portfolio in its field and is among Europe’s largest technical information service providers. Our innovative solutions, particularly those aimed at improving the efficiency of our customers’ maintenance operations, will offer us significant growth opportunities in 2013.

The offshoring services of our Chinese units have become a well established part of Etteplan’s service solutions. The appeal of offshoring services has increased under the prevailing market conditions. The ongoing changes in the Chinese labor market will have a positive effect on the development of the local market for engineering design services. We saw clear signs of this development in 2012 and, as the largest Nordic provider of engineering design services in China, we anticipate strong growth in the local market in 2013.

The demand for engineering design services in early 2013 has remained at the subdued levels seen in late 2012. Nevertheless, our business strategy is an excellent match with our customers’ aim of increasing the cost-efficiency of engineering operations. For this reason, I am confident that our business will experience continued positive development in 2013. 

Hollola, February 14, 2013

Etteplan Oyj

Board of Directors

Additional information:
Juha Näkki, President and CEO, tel. +358 400 606 372

The information presented herein has not been audited.

Releases and other corporate information are available on Etteplan’s Web site at www.etteplan.com.

DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.etteplan.com

Etteplan is a specialist in industrial equipment engineering and technical product information solutions and services. Etteplan’s engineering expertise and service products cover the entire life cycle of the client’s products. Our customers are global leaders in their fields and operate in areas like the automotive, aerospace and defense industries as well as the electricity generation and power transmission sectors, and material flow management.

Etteplan has comprehensive competence in electronics and embedded systems development, automation and electrical design, mechanical design and technical product information solutions and services.

In 2012, Etteplan had turnover of EUR 134.5 million. The company currently has close to 1,800 experts in Finland, Sweden, China and the Netherlands. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.