Etteplan Q3: Revenue increased and operating profit improved

ETTEPLAN OYJ, INTERIM REPORT, OCTOBER 29, 2014 AT 02.00 P.M.

ETTEPLAN Q3: REVENUE INCREASED AND OPERATING PROFIT IMPROVED

Review period July-September 2014

- The Group’s revenue increased by 7.3% and was EUR 29.5 million
   (7-9/2013: EUR 27.5 million).
- EBITDA improved by 10.8% and was EUR 2.4 million (EUR 2.2 million).
- Operating profit (EBIT) improved by 15.4% and was EUR 1.7 million (EUR 1.5 million).
  The operating profit includes non-recurring items with a total positive effect of EUR 0.4 million
  (EUR 0.5 million).
- The profit for the review period improved and was EUR 1.4 million (EUR 0.9 million).
- Operating cash flow improved and was EUR -0.5 million (EUR -1.5 million).
- Earnings per share were EUR 0.06 (EUR 0.05).
- The number of personnel increased and the Group had 1,864 employees at the end
   of the period (1,721).
- Etteplan keeps its financial guidance unchanged and adjusts the estimate of its market
  outlook.

Review period January-September 2014

- The Group’s revenue increased by 0.4% and was EUR 96.5 million
   (1-9/2013: EUR 96.2 million).
- EBITDA declined by 1.7% and was EUR 7.1 million (EUR 7.3 million).
- Operating profit (EBIT) decreased by 0.9% and was EUR 5.2 million (EUR 5.2 million).
  The operating profit includes non-recurring items with a total positive effect of EUR 0.6 million
  (EUR 0.4 million).
- The profit for the review period improved and was EUR 4.0 million (EUR 3.5 million).
- Operating cash flow improved and was EUR 0.8 million (EUR -2.4 million).
- Earnings per share were EUR 0.19 (0.18).

Outlook 2014

Market outlook

The most important factor in the development of Etteplan’s business is the development of the machinery and metal industry. Despite increased new orders from the machinery and metal industry, the market has continued to be uncertain and business is still unpredictable.

Financial guidance

We expect the revenue and operating profit for the year 2014 to grow compared to 2013. 

Previous estimate of outlook

Market outlook

The most important factor in the development of Etteplan’s business is the development of the machinery and metal industry. Despite increased new orders from the machinery and metal industry, the market has become more uncertain and business less predictable.

Financial guidance

We expect the revenue and operating profit for the year 2014 to grow compared to 2013.

Key figures

Juha Näkki, President and CEO of Etteplan Oyj comments on the interim report:

“Market uncertainty continued in the third quarter, and there were no significant changes in demand compared to the previous quarter. Still, our determined work to improve our market position, particularly with respect to key customers, produced results in the review period and we were able to increase our revenue and improve our profitability.

In Europe, demand among forest industry equipment manufacturers and the energy and power transmission industry improved, while demand in other customer industries remained at the previous quarter’s level. In China, the engineering service market continued to develop favorably despite the slowing of economic growth in the country, and the number of working hours invoiced in the Chinese market grew by over 100 per cent in the review period.

The shift towards high value-added Managed Services developed favorably in the review period, with these services constituting nearly 40 per cent of our revenue. Our service solutions helped us increase our market share in several accounts. In particular, our cost-effective offshoring services and outsourcing solutions, interest our customers in the prevailing market situation.

In the area of technical documentation, we signed several significant agreements and are negotiating significant new outsourcing agreements. After completing the Tedopres acquisition, we can further accelerate our efforts in this area, and there is significant growth potential for us.

I am fairly satisfied with the results that we achieved in the review period in a challenging market situation. We will continue our efforts to accelerate growth and improve profitability to reach our targets.”

Disclosure procedure

Etteplan follows the disclosure procedure enabled by Disclosure obligation of the issuer (7/2013) published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Etteplan’s January-September 2014 interim report. The complete interim report is attached to this stock exchange release in pdf format and is also available on Etteplan’s website at www.etteplan.com. Investors are advised to review the complete interim report with tables.

Conference call and live webcast today, October 29, 2014

Etteplan’s President and CEO Juha Näkki will present Company’s results for January-September 2014 in a conference call and a live webcast for analysts and investors, held in English language, on October 29, 2014 starting at 3.30 p.m. Finnish time (EET).

To participate in the conference call please dial 5-10 minutes prior to the start of the conference to +358 9 2319 5437, event password is Etteplan2014. Questions can be asked in English after President and CEO’s presentation only through conference call connection.

Juha Näkki’s presentation can be followed as a live webcast through a link at Etteplan’s homepage at www.etteplan.com/Investors. The live webcast starts at 3.30 p.m. Finnish time (EET).

A recording of the webcast will be later available at the same address.

Vantaa, October 29, 2014

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 provides engineering services and technical documentation solutions to the world's leading companies in the manufacturing industry. Our services are geared to improve the competitiveness of our customers' products and engineering processes throughout the product life cycle. The results of Etteplan's innovative engineering can be seen in numerous industrial solutions and everyday products.

In 2013, Etteplan had a turnover of EUR 128.6 million. The company has more than 1,800 professionals in Finland, Sweden, the Netherlands and China. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ticker ETT1V.