Etteplan Q3: Revenue increased clearly

ETTEPLAN OYJ, INTERIM REPORT, OCTOBER 29, 2015 AT 02.00 P.M.

ETTEPLAN Q3: REVENUE INCREASED CLEARLY

Review period July-September 2015

- The Group’s revenue increased by 8.0% and was EUR 31.9 million
  (7-9/2014: EUR 29.5 million). At comparable exchange rates revenue increased by 8.5%.
- EBIT from business operations was EUR 1.9 million (EUR 1.4 million),
  or 5.9% (4.8%) of revenue.
- Operating profit (EBIT) was EUR 1.7 million (EUR 1.7 million), or 5.2% (5.9%) of revenue.
- The profit for the review period was EUR 1.3 million (EUR 1.4 million).
- Operating cash flow was EUR -1.7 million (EUR -0.5 million).
- Earnings per share were EUR 0.06 (EUR 0.06).
- The number of personnel increased and the Group had 2,078 employees at the end of
  the period (1,864).
- Etteplan strengthened its position in plant engineering by acquiring the business of
  Suunnittelu ja Asennusten Valvonta - SAV Oy and its subsidiaries in August. The
  business of SAV Oy and its subsidiaries were transferred to Etteplan on September 1, 2015.
- Etteplan updates its financial targets by making a change to its operating profit
  target of 10%. The new target is EBIT from business operations of 10%.
- Etteplan keeps its estimate of market outlook and financial guidance unchanged.

Review period January-September 2015

- The Group’s revenue increased by 4.4% and was EUR 100.8 million
   (1-9/2014: EUR 96.5 million). At comparable exchange rates revenue increased by 5.0%.
- EBIT from business operations was EUR 6.7 million (EUR 4.7 million)
  or 6.6% (4.9%) of revenue.
- Operating profit (EBIT) was EUR 6.0 million (EUR 5.2 million) or 6.0% (5.4%) of revenue.
- The profit for the review period was EUR 4.4 million (EUR 4.0 million).
- Operating cash flow was EUR 2.1 million (EUR 0.8 million).
- Earnings per share were EUR 0.22 (EUR 0.19).

Market outlook

The most important factor in the development of Etteplan’s business operations is the global development of the machinery and metal industry. In spite of political uncertainty, the European markets are showing small signs of improvement. Increased uncertainty in the Asian markets is estimated to continue. The good market situation in North America is expected to continue.

Financial guidance

We expect the revenue and operating profit for the year 2015 to grow clearly compared to 2014.

Key figures  

(EUR 1,000) 7-9/2015 7-9/2014 1-9/2015 1-9/2014 1-12/2014
Revenue 31,880 29,529 100,770 96,548 131,916
EBIT from business operations* 1,894 1,406 6,656 4,740 7,394
EBIT from business operations, % 6.2 4.8 6.7 4.9 5.6
Operating profit (EBIT) 1,655 1,749 6,011 5,179 7,856
EBIT, % 5.2 5.9 6.0 5.4 6.0
Basic earnings per share, EUR 0.06 0.06 0.22 0.19 0.30
Equity ratio, % 37.0 35.7 37.0 35.7 39.5
Operating cash flow -1,717 -544 2,115 818 7,754
ROCE, % 14.0 14.5 15.9 14.8 17.8
Personnel at end of the period 2,078 1,864 2,078 1,864 1,859
           
* EBIT excluding acquisition related items such as amortization on PPA allocations and earn out revaluations

President and CEO Juha Näkki:

“Our revenue growth rate improved in the third quarter compared to the previous quarters. Growth was affected by the acquisitions carried out during the review period. Our operating profit was slightly lower than in the comparison period due to a positive non-recurring item recognised in the comparison period. Our EBIT from business operations, however, showed a clear improvement.

In engineering services, we strengthened our market position in plant engineering by acquiring the business of SAV Oy. The acquisition makes Etteplan a significant operator in plant engineering in Finland. The integration of SAV Oy’s business into Etteplan has started according to plan, and our customers have responded to the acquisition in a very positive manner. We now have the ability to carry out larger plant engineering projects than before, and we have already received requests for quotations for significant projects. Plant engineering offers us excellent growth opportunities going forward.

In technical documentation, the development of our business was excellent during the review period. Growth exceeded the Group’s growth target of 15 per cent again and profitability was at a good level. We acquired the business operations of the Dutch company Thesus Talking Image during the review period, which strengthened our technical illustration expertise in the Netherlands. The transaction signed after the end of the review period with arvato AG, a subsidiary of the Bertelsmann Group from Germany, further strengthens our position in the Netherlands and allows us to expand our operations in the area of technical documentation to the German market.

Towards the end of the review period, uncertainty in the Finnish market increased slightly and turbulence in the Chinese market slowed our development in China. We nevertheless made progress in the implementation of our strategy according to plan and we will continue to make investments to develop our business and accelerate growth.”

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 2015 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, 2015

Etteplan’s President and CEO Juha Näkki will present Company’s results for January-September 2015 in a conference call and a live webcast for analysts and investors, held in English language, on October 29, 2015 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 Etteplan2015. 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 though 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, 2015

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 2014, Etteplan had a turnover of EUR 131.9 million. The Company has approximately 2,100 professionals in Finland, Sweden, the Netherlands and China. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ticker ETT1V.

About Us

Etteplan provides solutions for industrial equipment and plant engineering, software and embedded solutions, 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, services 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 2018, Etteplan had a turnover of approximately EUR 236 million. The company currently has more than 3,300 professionals in Finland, Sweden, the Netherlands, Germany, Poland and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker. www.etteplan.com

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