ETTEPLAN Q3: ETTEPLAN'S REVENUE INCREASED AND OPERATING PROFIT IMPROVED
ETTEPLAN OYJ INTERIM REPORT NOVEMBER 10, 2010, AT 08:00 A.M.
ETTEPLAN Q3: Etteplan's revenue increased and operating profit improved
Review period July-September 2010
- The Group's revenue for continuing operations increased 26.2% and was EUR 23.1
million (7-9/2009: EUR 18.3 million).
- Operating profit for continuing operations was EUR 1.2 million (EUR -1.7
million). Operating profit includes EUR 0.5 million non-recurring item.
- Profit for the period for continuing operations was EUR 0.8 million
(EUR -1.2 million).
- Profit for the period for discontinuing operations was EUR -0.3 million
(EUR -8.5 million).
- Operating cash flow was EUR -0.9 million (EUR -0.4 million).
- Earnings per share for continuing operations were EUR 0.05 (EUR -0.06).
- The number of personnel at the end of the period was 1,567 (1,624).
- Company's outlook remains unchanged.
Review period January-September 2010
- The Group's revenue for continuing operations increased 2.2% and was EUR 74.7
million (1-9/2009: EUR 73.1 million).
- Operating profit for continuing operations was EUR 4.2 million (EUR -4.8
million).
- Profit for the period for continuing operations was EUR 2.7 million
(EUR -3.8 million).
- Profit for the period for discontinuing operations was EUR 0.1 million (EUR
-10.5 million).
- Operating cash flow was EUR -1.8 million (EUR -4.8 million).
- Earnings per share for continuing operations were EUR 0.13 (EUR -0.19).
Key figures* (EUR 1 000)
7-9/2010 7-9/2009 1-9/2010 1-9/2009 1-12/2009
Revenue 23,062 18,328 74,698 73,094 98,700
Operating profit/loss 1,178 -1,664 4,163 -4,848 -3,587
Operating profit/loss, % 5.1 -9.1 5.6 -6.6 -3.6
Profit/loss for the period 836 -1,198 2,740 -3,776 -3,287
Profit/loss for the period, % 3.6 -6.5 3.7 -5.2 -3.3
Equity ratio, % 43.3 22.6 43.3 22.6 38.5
Net gearing, % 39.5 158.7 39.5 158.7 20.8
Total assets 64,500 61,301 64,500 61,301 61,704
*) continuing operations
Matti Hyytiäinen, President and CEO of Etteplan Oyj, comments on the interim
report:
”The improvement of market situation continued in the third quarter of the year
as the demand for design services improved in nearly all our customer
industries.
Our revenue improved considerably compared to last year's third quarter. The
improved market situation and our strengthened market position impacted the
growth of our revenue.
Demand for design services is cyclical and typically for our branch demand slows
down seasonally in the third quarter of the year. The decrease in capacity
utilization rate caused by the slow down of demand and the timing of the holiday
season to the third quarter affect our operating profit. Taking these into
account I am reasonably satisfied with the development of our operating profit.
During the third quarter of the year we attained significant new clientele both
in Finland and Sweden as well as improved our position as partner in demanding
product development projects for equipment manufacturers for medical technology
clientele.
Our units in China continued to grow steadily and I am satisfied with offshoring
operating model becoming established among our customers.”
Accounting principles
The interim report has been prepared in accordance with IAS 34 (Interim
Financial Reporting) and the preparation and accounting policies presented in
the 2009 annual financial statements, but not all requirements of the IAS 34
standard for interim financial reporting have been followed in the accounting.
REVIEW FOR JULY-SEPTEMBER 2010
Business review for July-September
The improvement of demand for design services that commenced in the early part
of the year continued in the third quarter of the year. In Sweden during the
third quarter, demand for design services that had stabilized during the second
quarter of the year, turned to growth comparable to the beginning of the year.
In Finland, growth in demand was steady.
The variation in demand between customer industries stabilized in the third
quarter of the year. Design services' demand in energy and power transmission
industry, medical technology and automotive industry remained on a good level
that has continued through the year. Demand for design services among equipment
manufacturers for forest and mining industry continued to increase in the third
quarter. In aerospace and defence equipment industry where the demand had been
on low level during the first half of the year, demand for design services
recovered during the review period.
In Finland, personnel reductions, implemented as temporary lay offs, continued
to decrease and were under 50 employees at the end of the period. In Sweden,
recruitment that commenced during the second quarter continued. The slow
availability of new manpower restricted the organic growth in Sweden during the
review period.
Etteplan Oyj and the Swedish company Intertek Semko AB as well as Intertek
Commercial and Electrical Division China signed cooperation agreements during
the review period that apply to businesses in Finland, Sweden and China. The aim
of the cooperation is to provide a service portfolio that supports customers'
operations on new markets effectively. Global machine and equipment
manufacturers broaden their operations by entering new markets with new product
launches and production transfers closer to new markets. New market entries
require design of products and production and equipment manufacturing according
to country's authority regulations and standards. Design needs to be based on
up-to-date and accurate information of authority regulations and standards that
often change quickly. Intertek can provide this information to Etteplan's
customer projects enabling high quality and time saving in technical design work
and product information management.
Etteplan increased its ownership in Etteplan Vataple Technology Centre Ltd.
(EVTC), located in Kunshan, China, from 40% to 70% on July 1, 2010. Etteplan
used its option right to buy the majority of the share capital of the company
according to the contract that came into force on April 8, 2008.
Cooperation between Etteplan and Sjöland & Thyselius Holding AB that was signed
in the end of second quarter of the year, developed favourably during the review
period.
During the review period new customer projects commenced among others with
Glaston Oyj and Technip Offshore Finland Oy. Etteplan provides product
development services to Glaston and design services for Olkiluoto 3 nuclear
power plant to Technip Offshore Finland.
Financial development for July-September
Etteplan's revenue for continuing operations in July-September 2010 increased
and was EUR 23.1 million (7-9/2009: EUR 18.3 million). Design services' improved
demand situation and enhanced market share in 2009 affected the improved
revenue. Etteplan's business is cyclical and third quarter's revenue is lower
compared to other quarters of the year due to holiday season.
Operating profit for continuing operations was EUR 1.2 million (7-9/2009: EUR
-1.7 million). Operating profit includes EUR 0.5 million non-recurring item
relating to the re-evaluation of ownership in Etteplan Vataple Technology Centre
(EVTC). According to IFRS principles acquiring the majority of a company,
requires the company to re-evaluate the previously held ownership to fair value
and book the difference of value in income statement. Improved demand for design
services as well as adjustment and cost saving measures affected the improvement
of operating profit.
REVIEW FOR JANUARY-SEPTEMBER 2010
Business review for January-September
The uneven development of demand for design services that occurred during the
first half of the year, stabilized during the third quarter of the year. The
demand was on a good level in Etteplan's all central customer industries during
the third quarter, as the aerospace and defence equipment industry's demand
recovered. Despite the recovery of market situation the demand is still on low
level compared to the peak years.
In Finland, the recovery of demand for design services commenced slower than in
Sweden in the early part of the year, but demand continued improve steadily
during the whole review period. In Sweden, the market situation's recovery's
impact to demand for design services was quick in the first quarter of the year
and stabilized during the second quarter of the year. The demand recovered to
new increase in the third quarter.
Etteplan steadily renewed framework agreements with its established customers
during the whole review period.
Company started to renew its legal structure in Finland from April 1, 2010 and
the concentration of business operations to Etteplan Design Center Oy was
completed on July 1, 2010. In Sweden, business operations will be concentrated
to four legal companies in phases by the beginning of year 2011. Group
administration units continue their operations in the parent company Etteplan
Oyj. Change in legal structure does not impact the content of financial
reporting in 2010. Legal structure change will have an impact on parent
company's balance sheet. Parent company's balance sheet will be presented in
company's annual report 2010.
Revenue
Etteplan's revenue for continuing operations after three quarters amounted to
EUR 74.7 million (1-9/2009: EUR 73.1 million).
Result
The operating profit for continuing operations was EUR 4.2 million (1-9/2009:
EUR -4.8 million). Improved demand for design services as well as adjustment and
cost saving measures affected the improvement of operating profit.
Profit for the period for continuing operations before taxes was EUR 3.7 million
(1-9/2009: EUR -5.3 million). Taxes amounted to EUR 1.0 million (EUR -1.5
million). The income tax calculated on profit before taxes in the consolidated
income statement was 26.9% (-28.6%).
Profit for the period for continuing operations was EUR 2.7 million (1-9/2009:
EUR -3.8 million). Earnings per share for continuing operations were EUR 0.13
(EUR -0.19). Equity per share was EUR 1.41 (EUR 0.70). The return on investment
improved and was 14.7% (-15.4%).
Profit for the period for discontinuing operations was EUR 0.1 million
(1-9/2009: EUR -10.5 million).
Result for the review period was EUR 2.8 million (1-9/2009: EUR -14.3 million).
Financial position and cash flow
Total assets on September 30, 2010, were EUR 64.5 million (December 31, 2009:
EUR 61.7 million). Goodwill on the balance sheet was EUR 35.3 million (December
31, 2009: EUR 31.2 million). The increase in goodwill was due to changes in
currency rates and ownership increase in EVTC. The Group's cash and cash
equivalents stood at EUR 3.1 million (December 31, 2009: EUR 6.7 million). The
Group's financial liabilities amounted to EUR 14.1 million (December 31, 2009:
EUR 11.6 million) at period end. The equity ratio was 43.3% (December 31, 2009:
38.5%). Operating cash flow was EUR -1.8 million (1-9/2010: EUR -4.8 million).
The cash flow after investments improved and was EUR million -4.4 (1-9/2009: EUR
-6.5 million). Review period's cash flow includes EUR 2.4 million payment caused
by company acquisitions done in 2008 and 2010.
Capital expenditures
The Group's gross investments came to EUR 0.9 million (1-9/2009: EUR 1.2
million).
Personnel
The number of the Group's personnel averaged 1,610 (1-9/2009: 1,682) during the
review period and was 1,567 (September 30, 2009: 1,624) at period end. The Group
employed people 615 (September 30, 2009: 628) overseas at the end of the period.
Incentive plan for key personnel
The Etteplan Oyj Board of Directors decided on a share-based incentive plan for
key personnel in March 2008. The plan includes three earnings periods: calendar
years 2008, 2009 and 2010. The plan had a target group of 37 people in 2008, 39
people in 2009 and 33 people in 2010. The remuneration paid from the plan
corresponds to the value of about 720,000 Etteplan Oyj shares at maximum.
Pursuant to the authorization granted to it by the Annual General Meeting of
Shareholders', held on March 26, 2009, the Board of Directors of Etteplan Oyj
has in its meeting, on February 10, 2010, made a resolution that there will be
no disposal of company-held shares for the 2009 earnings period.
Estimate of operating risks and uncertainty factors
Etteplan's financial results are exposed to number of strategic, operational and
financial risks. A detailed risk analysis can be found in Etteplan's annual
report 2009.
External risks
During the period under review, economic development on the whole and
unpredictable changes in customers' business operations continued to be a risk.
Internal risks
Etteplan does not foresee changes in its internal risk position compared to
previously stated.
Annual General Meeting
The Annual General Meeting of Shareholders of Etteplan Oyj was held on March 24,
2010 at premises of the Company in Vantaa. In accordance with the proposal of
the Board of Directors´ Nomination and Compensation Committee Tapio Hakakari,
Heikki Hornborg, Robert Ingman and Pertti Nupponen were re-elected as members of
the Board of Directors as well as Satu Rautavalta and Teuvo Rintamäki were
elected as new members of the Board of Directors.
The Annual General Meeting approved the Financial Statements for financial year
2009 and discharged members of the Board of Directors and the CEO from
liability.
The auditor elected was PricewaterhouseCoopers Oy, Authorized Public Accounting
Firm with Authorized Public Accountant Mr Mika Kaarisalo as the main responsible
auditor. The fees for the auditor are paid according to invoice by the
principles approved by the Board of Directors.
The Annual General Meeting authorized the Board of Directors to decide to issue
maximum of 4,000,000 shares through issuance of shares, option rights or other
special rights entitling to shares under Chapter 10, Section 1 of the Companies
Act in one or more issues. The authorization includes a right to issue new
shares or assign company's own shares held by the company.
The authorization is effective for a period of five (5) years from the
resolution of the Annual General Meeting, i.e. from March 24, 2010 to March 24,
2015. The authorization shall replace the previous authorization.
The Annual General Meeting resolved, in accordance with proposal of the Board of
Directors, to grant the Board the authority to acquire the company's own shares
in one or more lots using the company's unrestricted equity. A maximum of
2,000,000 of the company's own shares can be acquired. The Board of Directors
shall have the right to decide who the shares are acquired from or, the Board of
Directors has the right to decide on a directed acquisition of own shares.
The authorization is valid for 18 months from the date of the decision of the
Annual General Meeting starting on March 24, 2010 and ending on September 24,
2011. The authorization shall replace the previous authorization.
The Annual General Meeting adopted a resolution to amend the articles of
association's paragraph 9 as follows:
"9 § Invitation to the General Meeting of Shareholders
Invitation to the General Meeting of Shareholders shall be published in the
company's website no earlier than two (2) calendar months and no later than
three (3) weeks prior to the meeting, but no later than nine (9) days before the
record date of the General Meeting. The Board of Directors may also decide to
publish the invitation to the General Meeting of Shareholders in a one Finnish
national newspaper determined by the Board of Directors."
Dividend
The Annual General Meeting passed a resolution, in accordance with the proposal
of the Board of Directors, that a dividend of EUR 0.04 per share be paid from
the financial year 2009. The remaining funds shall be left to the unrestricted
equity. The dividend will be paid to the shareholders registered in the
shareholders' register maintained by Euroclear Finland Ltd as the record date.
The record date of the payment of dividend was March 29, 2010. The dividend was
paid on April 7, 2010.
Shares
The Etteplan Oyj share (ETT1V) is quoted in the Nordic NASDAQ OMX's Small Cap
market capitalization group in the Industrials sector.
The company's share capital on September 30, 2010 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.
The company held 470,634 of its own shares on September 30, 2010. During the
period under review, the company did not acquire nor dispose any company-held
shares.
Outlook
The commencement of Etteplan's customers' investment and product development
projects as well as changes in order books reflect quickly to the demand for
technical design and product information services and the development of
Etteplan's revenue.
The revenue in 2010 is estimated to be approximately on the same level as in
year 2009. Adjustments done in year 2009 improve company's profitability and
operating profit's positive development is estimated to continue. The revenue
and operating profit estimates are based on Etteplan's current market outlook.
Potential acquisitions in year 2010 are not included in the estimate.
Hollola, November 10, 2010
Etteplan Oyj
Board of Directors
Additional information:
Matti Hyytiäinen, President and CEO, tel. +358 400 710 968
The information presented herein has not been audited.
APPENDIX:
Financial Statement Summary and Notes
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
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
Major media
www.etteplan.com
This interim report includes forward-looking estimates and assumptions.
Accordingly, outcomes may deviate from these estimates, which are based on the
management's current best knowledge.
Etteplan is a specialist in industrial equipment engineering and technical
product information solutions and services. Our customers are global leaders in
their fields and operate in areas like the automotive, aerospace and defence
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 2009, Etteplan had turnover of EUR 98.7 million. Etteplan's shares are listed
on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
--------------------------------------------------------------------------------
| (EUR 1 000) | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Revenue | 23 062 | 18 328 | 74 698 | 73 094 | 98 700 |
--------------------------------------------------------------------------------
| Other operating | 579 | 224 | 1 099 | 563 | 392 |
| income | | | | | |
--------------------------------------------------------------------------------
| Materials and | -2 278 | -373 | -6 827 | -5 463 | -8 077 |
| services | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -16 061 | -15 714 | -52 937 | -59 731 | -75 851 |
--------------------------------------------------------------------------------
| Other operating | -3 735 | -3 740 | -10 759 | -12 103 | -17 155 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -389 | -390 | -1 110 | -1 208 | -1 596 |
| amortisation | | | | | |
--------------------------------------------------------------------------------
| Operating profit/loss | 1 178 | -1 664 | 4 163 | -4 848 | -3 587 |
--------------------------------------------------------------------------------
| Financial income | 71 | 42 | 389 | 219 | 341 |
--------------------------------------------------------------------------------
| Financial expenses | -187 | -116 | -514 | -571 | -925 |
--------------------------------------------------------------------------------
| Share of the result | 18 | -36 | -290 | -86 | -134 |
| of associates | | | | | |
--------------------------------------------------------------------------------
| Profit/loss before | 1 080 | -1 775 | 3 748 | -5 285 | -4 304 |
| taxes | | | | | |
--------------------------------------------------------------------------------
| Income taxes | -244 | 576 | -1 008 | 1 509 | 1 017 |
--------------------------------------------------------------------------------
| Profit/loss for the | 836 | -1 198 | 2 740 | -3 776 | -3 287 |
| financial year, | | | | | |
| continuing operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations |
--------------------------------------------------------------------------------
| Profit/loss for the | -257 | -8 549 | 102 | -10 518 | -11 067 |
| financial year, | | | | | |
| discontinuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for the | 579 | -9 747 | 2 842 | -14 295 | -14 354 |
| financial year | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income |
--------------------------------------------------------------------------------
| Currency translation | 810 | 919 | 2 265 | 1 209 | 1 245 |
| differences | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 810 | 919 | 2 265 | 1 209 | 1 245 |
| income, net of tax | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | 1 389 | -8 828 | 5 107 | -13 086 | -13 109 |
| income/expense for | | | | | |
| the year | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income/expense attributable to |
--------------------------------------------------------------------------------
| Equity holders of the | 586 | -9 750 | 2 827 | -14 317 | -14 403 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | -7 | 3 | 15 | 22 | 49 |
--------------------------------------------------------------------------------
| | 579 | -9 747 | 2 842 | -14 295 | -14 354 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | |
| income/expense | |
| attributable to | |
--------------------------------------------------------------------------------
| Equity holders of the | 1 389 | -8 831 | 5 087 | -13 108 | -13 164 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0 | 3 | 21 | 22 | 55 |
--------------------------------------------------------------------------------
| | 1 389 | -8 828 | 5 107 | -13 086 | -13 109 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | |
| calculated from the | |
| result of parent | |
| company shareholders | |
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Basic earnings per | 0,05 | -0,06 | 0,13 | -0,19 | -0,17 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0,05 | -0,06 | 0,13 | -0,19 | -0,17 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations |
--------------------------------------------------------------------------------
| Basic earnings per | -0,01 | -0,43 | 0,01 | -0,53 | -0,56 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | -0,01 | -0,43 | 0,01 | -0,53 | -0,56 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
--------------------------------------------------------------------------------
| (EUR 1 000) | 30.9.2010 | 30.9.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS |
--------------------------------------------------------------------------------
| Non-current assets |
--------------------------------------------------------------------------------
| Tangible assets | 1 671 | 1 681 | 1 458 |
--------------------------------------------------------------------------------
| Goodwill | 35 318 | 28 106 | 31 184 |
--------------------------------------------------------------------------------
| Other intangible assets | 1 059 | 1 182 | 1 042 |
--------------------------------------------------------------------------------
| Investments available for sales | 433 | 667 | 691 |
--------------------------------------------------------------------------------
| Other long-term receivables | 4 | 3 | 3 |
--------------------------------------------------------------------------------
| Deferred tax assets | 520 | 1 922 | 950 |
--------------------------------------------------------------------------------
| Non-current assets, total | 39 005 | 33 562 | 35 329 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets |
--------------------------------------------------------------------------------
| Trade and other receivables | 22 399 | 24 919 | 18 645 |
--------------------------------------------------------------------------------
| Current tax assets | 21 | 759 | 1 079 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 3 075 | 2 062 | 6 650 |
--------------------------------------------------------------------------------
| Current assets, total | 25 496 | 27 740 | 26 375 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 64 500 | 61 301 | 61 704 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES |
--------------------------------------------------------------------------------
| Capital attributable to equity holders |
--------------------------------------------------------------------------------
| Share capital | 5 000 | 5 000 | 5 000 |
--------------------------------------------------------------------------------
| Share premium account | 6 701 | 6 701 | 6 701 |
--------------------------------------------------------------------------------
| Unrestricted equity fund | 2 586 | 2 593 | 2 590 |
--------------------------------------------------------------------------------
| Own shares | -1 913 | -1 904 | -1 949 |
--------------------------------------------------------------------------------
| Cumulative translation adjustment | -273 | -2 569 | -2 534 |
--------------------------------------------------------------------------------
| Other reserves | 10 000 | 0 | 10 000 |
--------------------------------------------------------------------------------
| Retained earnings | 2 771 | 18 203 | 18 148 |
--------------------------------------------------------------------------------
| Profit/loss for the financial year | 2 842 | -14 317 | -14 403 |
--------------------------------------------------------------------------------
| Capital attributable to equity | 27 714 | 13 707 | 23 554 |
| holders, total | | | |
--------------------------------------------------------------------------------
| Non-controlling Interests | 155 | 107 | 135 |
--------------------------------------------------------------------------------
| Equity, total | 27 870 | 13 814 | 23 689 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 199 | 933 | 150 |
--------------------------------------------------------------------------------
| Financial liabilities | 5 304 | 9 388 | 7 626 |
--------------------------------------------------------------------------------
| Non-current liabilities, total | 5 502 | 10 321 | 7 776 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities |
--------------------------------------------------------------------------------
| Financial liabilities | 8 792 | 14 603 | 3 959 |
--------------------------------------------------------------------------------
| Trade and other payables | 21 246 | 18 342 | 24 401 |
--------------------------------------------------------------------------------
| Reserves | 391 | 3 948 | 1 435 |
--------------------------------------------------------------------------------
| Current income tax liabilities | 700 | 273 | 445 |
--------------------------------------------------------------------------------
| Current liabilities, total | 31 129 | 37 166 | 30 239 |
--------------------------------------------------------------------------------
| Liabilities, total | 36 631 | 47 487 | 38 016 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 64 500 | 61 301 | 61 704 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CASH FLOWS |
--------------------------------------------------------------------------------
| (EUR 1 000) | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Operating cash flow |
--------------------------------------------------------------------------------
| Cash receipts from customers | 72 776 | 99 719 | 129 302 |
--------------------------------------------------------------------------------
| Operating expenses paid | -74 136 | -104 251 | -126 232 |
--------------------------------------------------------------------------------
| Operating cash flow before financial | -1 360 | -4 532 | 3 070 |
| items and taxes | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest and payment paid for financial | -468 | -472 | -632 |
| expenses | | | |
--------------------------------------------------------------------------------
| Interest received | 48 | 102 | 197 |
--------------------------------------------------------------------------------
| Income taxes paid | -20 | 66 | -557 |
--------------------------------------------------------------------------------
| Operating cash flow ( A ) | -1 800 | -4 837 | 2 078 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investing cash flow |
--------------------------------------------------------------------------------
| Purchase of tangible and intangible | -684 | -98 | -139 |
| assets | | | |
--------------------------------------------------------------------------------
| Disposals of subsidiaries | 0 | 0 | 93 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | -2 420 | -840 | -966 |
--------------------------------------------------------------------------------
| Acquisition of associates | -95 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible and | 27 | 257 | 30 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Loan receivables, increase | 0 | -993 | -977 |
--------------------------------------------------------------------------------
| Loan receivables, decrease | 523 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from sale of investments | 1 | 0 | 3 |
--------------------------------------------------------------------------------
| Investing cash flow ( B ) | -2 648 | -1 674 | -1 956 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow after investments (A+B) | -4 448 | -6 510 | 122 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing cash flow |
--------------------------------------------------------------------------------
| Purchase of own shares | 0 | -44 | -44 |
--------------------------------------------------------------------------------
| Short-term loans, increase | 3 808 | 8 009 | 0 |
--------------------------------------------------------------------------------
| Short-term loans, decrease | 0 | 0 | -3 251 |
--------------------------------------------------------------------------------
| Long-term loans, increase | 0 | 2 492 | 2 528 |
--------------------------------------------------------------------------------
| Hybrid loan, increase | 0 | 0 | 10 000 |
--------------------------------------------------------------------------------
| Long-term loans, decrease | -2 502 | -2 266 | -3 112 |
--------------------------------------------------------------------------------
| Dividend paid and other profit | -788 | -1 574 | -1 574 |
| distribution | | | |
--------------------------------------------------------------------------------
| Financing cash flow ( C ) | 518 | 6 618 | 4 547 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Variation in cash (A + B + C) |
--------------------------------------------------------------------------------
| increase ( + ) / decrease ( - ) | -3 930 | 107 | 4 669 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets in the beginning of the period | 6 650 | 1 879 | 1 879 |
--------------------------------------------------------------------------------
| Exchange gains or losses on cash and | 355 | 76 | 102 |
| bank equivalents | | | |
--------------------------------------------------------------------------------
| Assets at the end of the period | 3 075 | 2 062 | 6 650 |
--------------------------------------------------------------------------------
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) Other reserves
G) Retained Earnings
H) Total
I) Non-controlling Interests
J) Equity total
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 474 | -2 025 | -5 188 | 0 | 19 959 |
| 1.1.2009 | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | | -1 574 |
--------------------------------------------------------------------------------
| Purchase | | | | -44 | | | |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | 116 | 120 | | | -179 |
| be issued | | | | | | | |
--------------------------------------------------------------------------------
| Hybrid | | | | | | 10 000 | -59 |
| loan | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | | | |
| translatio | | | | | | | |
| n | | | | | | | |
| difference | | | | | | | |
--------------------------------------------------------------------------------
| Changes in | | | | | 1 410 | | |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | | | | | 1 245 | | -14 403 |
| ive income | | | | | | | |
| for the | | | | | | | |
| financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 590 | -1 949 | -2 534 | 10 000 | 3 745 |
| 31.12.2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | H | I | J | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 26 921 | 79 | 27 000 | |
| 1.1.2009 | | | | |
--------------------------------------------------------------------------------
| Dividends | -1 574 | | -1 574 | |
--------------------------------------------------------------------------------
| Purchase | -44 | | -44 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Shares to | 57 | | 57 | |
| be issued | | | | |
--------------------------------------------------------------------------------
| Hybrid | 9 941 | | 9 941 | |
| loan | | | | |
--------------------------------------------------------------------------------
| Change in | 0 | 6 | 6 | |
| translatio | | | | |
| n | | | | |
| difference | | | | |
--------------------------------------------------------------------------------
| Changes in | 1 410 | | 1 410 | |
| ownership | | | | |
--------------------------------------------------------------------------------
| Comprehens | -13 | 49 | -13 | |
| ive income | 159 | | 109 | |
| for the | | | | |
| financial | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Equity | 23 554 | 135 | 23 689 | |
| 31.12.2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 590 | -1 949 | -2 534 | 10 000 | 3 745 |
| 1.1.2010 | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | | -788 |
--------------------------------------------------------------------------------
| Purchase | | | | -6 | | | |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | -4 | 41 | | | 6 |
| be issued | | | | | | | |
--------------------------------------------------------------------------------
| Hybrid | | | | | | | -176 |
| loan | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | | | | | 2 260 | | 2 827 |
| ive income | | | | | | | |
| for the | | | | | | | |
| financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 586 | -1 913 | -273 | 10 000 | 5 614 |
| 30.9.2010 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | H | I | J | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 23 554 | 135 | 23 689 | |
| 1.1.2010 | | | | |
--------------------------------------------------------------------------------
| Dividends | -788 | | -788 | |
--------------------------------------------------------------------------------
| Purchase | -6 | | -6 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Shares to | 43 | | 43 | |
| be issued | | | | |
--------------------------------------------------------------------------------
| Hybrid | -176 | | -176 | |
| loan | | | | |
--------------------------------------------------------------------------------
| Comprehens | 5 087 | 21 | 5 107 | |
| ive income | | | | |
| for the | | | | |
| financial | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Equity | 27 714 | 155 | 27 870 | |
| 30.9.2010 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 474 | -2 025 | -5 188 | 0 | 19 959 |
| 1.1.2009 | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | | -1 574 |
--------------------------------------------------------------------------------
| Purchase | | | | -44 | | | |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | 119 | 165 | | | -183 |
| be issued | | | | | | | |
--------------------------------------------------------------------------------
| Changes in | | | | | 1 410 | | |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | | | | | 1 209 | | -14 317 |
| ive income | | | | | | | |
| for the | | | | | | | |
| financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 593 | -1 904 | -2 569 | 0 | 3 886 |
| 30.9.2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | H | I | J | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 26 921 | 79 | 27 000 | |
| 1.1.2009 | | | | |
--------------------------------------------------------------------------------
| Dividends | -1 574 | | -1 574 | |
--------------------------------------------------------------------------------
| Purchase | -44 | | -44 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Shares to | 101 | | 101 | |
| be issued | | | | |
--------------------------------------------------------------------------------
| Changes in | 1 410 | 5 | 1 415 | | | | |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | -13 | 22 | -13 | |
| ive income | 108 | | 086 | |
| for the | | | | |
| financial | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Equity | 13 707 | 107 | 13 814 | |
| 30.9.2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 1-9/ | 1-9/ | 1-12/ | Change to |
--------------------------------------------------------------------------------
| (EUR 1 000) | 2010 | 2009 | 2009 | prev.year |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 74 698 | 73 094 | 98 700 | 2,2 % |
--------------------------------------------------------------------------------
| Operating profit/loss | 4 163 | -4 848 | -3 587 | 185,9 % |
--------------------------------------------------------------------------------
| Operating profit/loss, % | 5,6 | -6,6 | -3,6 | |
--------------------------------------------------------------------------------
| Profit/loss before taxes | 3 748 | -5 285 | -4 304 | 170,9 % |
--------------------------------------------------------------------------------
| Profit/loss before taxes, % | 5,0 | -7,2 | -4,4 | |
--------------------------------------------------------------------------------
| Return on equity, % | 14,2 | -24,7 | -13,0 | |
--------------------------------------------------------------------------------
| Return on investment, % *) | 14,7 | -15,4 | -8,6 | |
--------------------------------------------------------------------------------
| Equity ratio, % | 43,3 | 22,6 | 38,5 | |
--------------------------------------------------------------------------------
| Gross interest-bearing debt | 14 096 | 23 991 | 11 585 | -41,2 % |
--------------------------------------------------------------------------------
| Net gearing, % | 39,5 | 158,7 | 20,8 | |
--------------------------------------------------------------------------------
| Balance sheet, total | 64 500 | 61 301 | 61 704 | 5,2 % |
--------------------------------------------------------------------------------
| Gross investments | 902 | 1 168 | 4 763 | -22,7 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0,13 | -0,19 | -0,17 | 168,4 % |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0,13 | -0,19 | -0,17 | 168,4 % |
| EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1,41 | 0,70 | 1,20 | 101,9 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, average | 1 610 | 1 682 | 1 765 | -4,3 % |
--------------------------------------------------------------------------------
| Personnel at end of the | 1 567 | 1 624 | 1 544 | -3,5 % |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *)Return on investment has been calculated from result before taxes |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue and operating profit quarterly |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR 1 000) | Q1/2010 | Q2/2010 | Q3/2010 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 24 853 | 26 782 | 23 062 |
--------------------------------------------------------------------------------
| Operating profit | 1 125 | 1 859 | 1 178 |
--------------------------------------------------------------------------------
| % of revenue | 4,5 | 6,9 | 5,1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reserves |
--------------------------------------------------------------------------------
| (EUR 1 000 ) | Warranty | Reorganizatio | Other | Total |
| | provision | n provision | provisions | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reserves 1.1.2010 | 187 | 1 198 | 50 | 1 435 |
--------------------------------------------------------------------------------
| Utilized during the | -74 | -254 | 0 | -328 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Unused amount reversed | -113 | -554 | -50 | -717 |
--------------------------------------------------------------------------------
| Reserves 30.9.2010 | 0 | 391 | 0 | 391 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reserves 1.1.2009 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Additional provisions | 0 | 3 948 | 0 | 3 948 |
--------------------------------------------------------------------------------
| Reserves 30.9.2009 | 0 | 3 948 | 0 | 3 948 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reserves 1.1.2009 | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Additional provisions | 187 | 1 198 | 50 | 1 435 |
--------------------------------------------------------------------------------
| Reserves 31.12.2009 | 187 | 1 198 | 50 | 1 435 |
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENT SUMMARY
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.
Etteplan is a specialist in industrial equipment engineering and technical
product information solutions and services. Our customers are global leaders in
their fields and operate in areas like the automotive, aerospace and defence
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.
Etteplan's strength lies in its highly skilled employees who, being located near
to the customers, are able to develop close, long term business relationships.
We implement solutions globally according to customer needs.
In 2009, Etteplan had turnover of EUR 98.7 million. Etteplan's shares are listed
on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.
The Etteplan Oyj Board of Directors approved the interim report for publication
at its meeting of November 9, 2010.
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 2009 annual financial statements, but not all requirements of the IAS 34
standard for interim financial reporting have been followed in the accounting.
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.
In interim report the accounting principles used were the same as for the 2009
annual financial statements. The annual financial statements are available at
http://etteplan.smartpage.fi/en/annualreport09/ and the accounting policy is
detailed on pages 26-30 of the annual report 2009. Formulas for the key figures
are detailed on page 45 of the annual report 2009.
Income taxes
The taxes listed in the consolidated statement of comprehensive income 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
26.9%.
Risks
Etteplan´s financial results are exposed to number of strategic, operational and
financial risks.
Etteplan Group's most significant goodwill is related to the Swedish operations.
The current impairment test shows no reason for goodwill write-down.
A detailed risk analysis can be found in Etteplan´s annual report 2009.
