Etteplan renews its strategy and updates financial targets
Etteplan Oyj Stock Exchange Release December 18, 2019 at 1:00 p.m. EET
The Board of Directors of Etteplan Oyj has today approved Etteplan’s renewed strategy for the years 2020-2022, and updated financial targets. Both are valid as of January 1, 2020.
”Etteplan’s revenue has grown 24 consecutive quarters, and profitability has improved 14 consecutive quarters. This shows that our former strategy has worked well and our targets have guided us to the right direction. To be able to respond to the challenges of changing markets and create higher value for our customers we are updating our strategy and targets”, says Etteplan’s President and CEO Juha Näkki.
Digitalization, accelerating technological development and lack of engineering resources are key industry trends which are affecting both Etteplan’s and our customers’ operations. The target of the today announced strategy update is to create higher value for our customers and support them in the industrial change.
The strategy’s “Increasing value for customers” three key elements are Customer value, Service solutions are Success with people.
Customer value element: the target is to further increase the customer value. By understanding the customer’s business, utilizing our wide expertise, new innovations and technologies we can create even higher value service solutions to our customers and help them to improve their business.
Service solutions element: the target is to develop service solutions which combine technologies, efficient processes, versatile expertise and world-class engineering tools and methods. We strive to bring new technologies as part of our service solutions and through that improve the customer value.
Success with people element: the target is to maintain, develop and attract talented employees, with whom, and in collaboration with our customers and partners, we will succeed in executing our strategy.
Etteplan’s financial targets as of January 1, 2020
Etteplan has defined the constant development of service solutions, digitalization and international growth as the key growth areas.
”Our target is to continue to grow some 15 per cent per year both organically and through acquisitions. When materialized, the growth leads to a revenue of more than EUR 500 million in 2024. We emphasize international growth more than before and want that over half of Etteplan’s revenue comes outside Finland in 2024”, Näkki says.
”In Managed Services we raise our ambition level and target a 75 per cent share of revenue for Managed Services in 2024. Our profitability target remains in 10 per cent.”
”Our aim is to offer the services of all our three services areas in every country we operate in”, he continues.
- Growth: Revenue more than EUR 500 million in 2024 (new target)
- International growth: The share of revenue coming from outside Finland more than 50 per cent of revenue in 2024 (new target)
- Managed Services: The share of revenue coming from Managed Services (Managed Services Index, MSI) 75 per cent of revenue in 2024 (target-% changed, previous target 65 per cent by the end of 2019)
- Profitability: Operating profit (EBITA) 10 per cent of revenue (no change)
For more information, please contact:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing & Communications, tel. +358 10 307 3302
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. www.etteplan.com