ETTEPLAN Q3 2019: Profitable growth accelerated

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Etteplan Oyj Interim Report October 31, 2019, at 1:00 p.m.

ETTEPLAN Q3 2019: Profitable growth accelerated

Review period July-September 2019       

  •  The Group’s revenue grew by 17.0 per cent and was EUR 61.5 million (7-9/2018: EUR 52.6 million). At comparable exchange rates, growth was 17.6 per cent.
  •  Organic growth was 5.1 per cent. At comparable exchange rates, organic growth was 5.8 per cent.
  •  Operating profit (EBITA) improved and amounted to EUR 6.6 (5.0) million or 10.7 (9.6) per cent of revenue.
  •  Operating profit (EBIT) was EUR 5.7 (4.4) million or 9.3 (8.3) per cent of revenue.
  •  The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) was EUR 0.8 (-0.0) million.
  •  The profit for the review period was EUR 4.7 (3.2) million.
  •  Operating cash flow was EUR 1.1 (-0.5) million.
  •  Basic earnings per share were EUR 0.19 (0.13).
  •  In July, Etteplan acquired EMP Engineering Alliance, a German company specializing in industrial automation and process engineering.
  •  After the review period, in October, Etteplan acquired Teknifo AB, a Swedish company specializing in technical documentation. 
  • After the review period, in October, Etteplan launched a cloud solution for Simplified Technical English.

Review period January-September 2019   

  •  The Group’s revenue grew by 10.3 per cent and was EUR 191.5 (1-9/2018: 173.6) million. At comparable exchange rates, growth was 11.0 per cent.  
  •  Organic growth was 4.4 per cent. At comparable exchange rates, organic growth was 5.1 per cent. 
  •  Operating profit (EBITA) improved and amounted to EUR 19.5 (16.2) million or 10.2 (9.3) per cent of revenue.  
  •  Operating profit (EBIT) was EUR 17.3 (14.5) million or 9.0 (8.3) per cent of revenue.  
  •  The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) was EUR 0.6 (-0.3) million.  
  •  The profit for the review period was EUR 13.5 (10.9) million. 
  •  Operating cash flow improved significantly and was EUR 15.4 (7.2) million. 
  • Basic earnings per share were EUR 0.54 (0.44). 
  • The number of personnel increased by 12.8 per cent and the Group had 3,440 (3,050) employees at the end of September 2019.

Etteplan also monitors non-IFRS performance measures, because they provide information on Etteplan’s strategic and financial development in addition to other key indicators. More information on performance measures is provided on pages 21-22.

Etteplan renewed its organization and structure and made changes to its segment reporting effective from January 1, 2019. Starting from the beginning of 2019, the names of the service areas are Engineering Solutions, Software and Embedded Solutions and Technical Documentation Solutions. Each service area forms a separate reporting segment. More information on the changes and the impacts of IFRS 16 “Leases” is provided on pages 12-14 and 22.

Market outlook 2019 

The most important factor affecting Etteplan's business is the global development of the machinery and metal industry. The prevailing political situation increases uncertainty and affects the development of our operating environment and demand. In Europe, demand growth is expected to slow down. In Asia, the opening up of the service markets is expected to continue, but growth is expected to slow down.

Financial guidance 2019, updated on August 13, 2019 

We expect the revenue and operating profit (EBIT) for the year 2019 to grow significantly compared to 2018.

Key figures
(EUR 1,000) 7-9/2019 7-9/2018 1-9/2019 1-9/2018 1-12/2018
Revenue 61,539 52,595 191,493 173,590 236,477
Operating profit (EBITA) 6,586 5,038 19,493 16,172 22,555
EBITA, % 10.7 9.6 10.2 9.3 9.5
Operating profit (EBIT) 5,693 4,385 17,265 14,453 20,184
EBIT, % 9.3 8.3 9.0 8.3 8.5
Basic earnings per share, EUR 0.19 0.13 0.54 0.44 0.62
Equity ratio, % 39.4 42.0 39.4 42.0 42.9
Operating cash flow 1,142 -521 15,359 7,225 23,055
ROCE, % 20.1 20.1 20.3 21.1 21.3
Personnel at end of the period 3,440 3,050 3,440 3,050 3,055

President and CEO Juha Näkki:  

In the third quarter we again accelerated our growth and exceeded our revenue growth target of 15 per cent. The acquisitions supported growth and we were also able to grow organically despite the weakening market conditions. The share of Managed Services of revenue exceeded 60 per cent for the first time. In particular, success in project business supported profitability development. A non-recurring item related to the revaluation of the earn-out in Eatech acquisition improved operating profit. Eatech’s business has developed well as part of Etteplan’s software unit Etteplan MORE, but has not reached the demanding target levels.  

Demand in Engineering Solutions service area weakened slightly but we were again able to reach good results through strong operative performance. The acquisitions of Devex Mekatronik AB and EMP Engineering Alliance got off to a good start as part of Etteplan and supported the service area’s growth and profitability.

Good demand continued in the Software and Embedded Solutions service area and the business developed positively. The project business, in particular, grew with good profitability. The acquisition of Devex Mekatronik AB supported growth.

Demand in Technical Documentation Solutions service area decreased slightly overall, but the demand for outsourcing solutions remained on a good level. Our business in Germany continued to burden the service area’s development. However, the actions taken are generating good results and we trust that the business in Germany will recover during the rest of 2019. We also continued to develop our service solutions and launched our first fully digital service after the end of the review period. Our HyperSTE-software, designed to improve the quality of written technical English, is now available as a SaaS-solution everywhere in the world. We expect significant growth for our software sales in the years to come.

Uncertainty in the market has led to a decrease in demand growth in Europe, and the trade war has decreased demand in China. However, we see that with the help of our services solutions we will be able to win market share and continue the positive development of our business also going forward.  

Disclosure procedure

This stock exchange release is a summary of Etteplan's January-September 2019 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

Conference call and live webcast today, October 31, 2019

Etteplan’s President and CEO Juha Näkki will present the Company’s results for January-September 2019 in a conference call and a live webcast, held in English language, on October, 2019 starting at 2.30 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 (0)9 8171 0310 and insert the conference PIN code 18606375#. Questions can be asked in Finnish and in English after President and CEO’s presentation only through conference call connection.

Juha Näkki’s presentation can be followed as a live webcast on The webcast starts at 2.30 p.m. Finnish time (EET). A recording of the webcast will be available later at

Vantaa, October 31, 2019

Etteplan Oyj

Board of Directors

Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302

The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan's website at

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Etteplan in brief

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 over 3,400 professionals in Finland, Sweden, the Netherlands, Germany, Poland and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker.


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