Etteplan Q3/2014: Revenue increased and operating profit improved - - PowerPoint PPT Presentation

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Etteplan Q3/2014: Revenue increased and operating profit improved - - PowerPoint PPT Presentation

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Smart way to smart products Etteplan Q3/2014: Revenue increased and operating profit improved President and CEO Juha Nkki October 29, 2014 Smart way to smart products Operating environment in 7-9/2014 There were no significant changes in

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President and CEO Juha Näkki October 29, 2014

Etteplan Q3/2014: Revenue increased and operating profit improved

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Operating environment in 7-9/2014

  • There were no significant changes in demand compared to the

previous quarter.

  • 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 Finland demand for offshoring services was good.
  • In Sweden demand for outsourcing services improved somewhat.
  • In the Netherlands, demand improved somewhat after the national

economic growth expectations improved slightly.

  • In China, the engineering service market continued to develop

favorably despite the slowing of economic growth in the country.

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Highlights in 7-9/2014

  • Revenue increased by 7.3% and was EUR 29.5 million

(7-9/2013: EUR 27.5 million).

  • Revenue increased by 9.0 per cent at comparable exchange rates.
  • Key accounts increased by 11.0 per cent.
  • Operating profit 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).

  • Profitability improved and operating profit percentage was 5.9 (7-9/2013: 5.5).
  • The share of high value-added Managed Services continued to grow and

was nearly 40% of total revenue in the review period.

  • The number of working hours invoiced in the Chinese market grew by over

100 per cent compared to the corresponding period last year (7-9/2013).

  • In the area of technical documentation, we signed several significant

agreements.

  • The number of personnel increased and was at the end of review period

1,864 (1,721).

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Revenue 1-9/2014

Revenue by customer segment Revenue by country

15 % (2013:17%) 15 % (2013:14%) 14 % (2013:17%) 13 % (2013:11%) 12 % (2013:7%) 11 % (2013:11%) 7 % (2013:8%) 6 % (2013:9%) 5 % (2013:4%) 3 % (2013:3%) Muut Nosto- ja siirto Kaivos Energia ja sähkönsiirto Metsä ja paperi Teollisuuden laitteet ja komponentit Ilmailu ja puolustus Ajoneuvo ja kuljetus Lääketieteen tekniikka Metalli

Others 15 % Lifting and hoisting 15 % Mining 14 % Energy and power transmission 13 % Forest and paper 12 % Industrial machinery and components 11 % Aerospace and defense 7 % Transportation and vehicle 6 % Medical technology 5 % Metal 3 %

59 % (2013:59%) 33 % (2013:35%) 5 % (2013:5%) 3 % (2013:1%) Finland Sweden The Netherlands China

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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.

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Revenue

7-9/2014: EUR 29.5 million (7-9/2013: EUR 27.5 million)

0,0 10,0 20,0 30,0 40,0 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014

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Operating profit (EBIT) and EBIT %

7-9/2014: EUR 1.7 million, 5.9% (7-9/2013: EUR 1.5 million, 5.5%)

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 0,5 1 1,5 2 2,5 3 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 EBIT %

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EBITDA and EBITDA %

7-9/2014: EUR 2.4 million, 8.1% (7-9/2013: EUR 2.2 million, 7.9%)

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0 0,5 1 1,5 2 2,5 3 3,5 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 EBITDA %

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Earnings per share (EUR) and dividends (EUR/share)

Earnings per share 7-9/2014: EUR 0.06 (7-9/2013: EUR 0.05) Earnings per share 1-9/2014: EUR 0.19 (1-9/2013: EUR 0.18)

0,19 0,20 0,29 0,22 0,05 0,06 0,10 0,10 0,15 0,11 0,00 0,05 0,10 0,15 0,20 0,25 0,30 0,35 2010 2011 2012 2013 Q3/2013 Q3/2014 Earnings per share Dividends

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Cash flow

Operating cash flow 7-9/2014: EUR -0.5 million (7-9/2013: EUR -1.5 million) Cash flow after investments 7-9/2014: EUR -0.7 million (7-9/2013: EUR -2.0 million)

‐4,0 ‐2,0 0,0 2,0 4,0 6,0 8,0 10,0 12,0 2010 2011 2012 2013 Q3/2013 Q3/2014 Operating cash flow Cash flow after investments

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Return on capital employed (ROCE), %

7-9/2014: 14.5% (7-9/2013: 12.9%)

0,0 10,0 20,0 30,0 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014

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Personnel, average

1-9/2014: 1,797 (1-9/2013: 1,736)

1594 1625 1756 1 736 1 736 1 797 1400 1500 1600 1700 1800 1900 2010 2011 2012 2013 Q3/2013 Q3/2014

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Key Figures 7-9/2014

(EUR 1,000) 7-9/2014 7-9/2013 Change % Revenue 29,529 27,510 7.3 EBITDA 2,404 2,170 10.8 EBITDA, % 8.1 7.9 Operating profit (EBIT) 1,749 1,515 15.4 EBIT, % 5.9 5.5 Basic earnings per share, EUR 0.06 0.05 20.0 Equity ratio, % 35.7 34.6 Operating cash flow

  • 544
  • 1,468

62.9 ROCE, % 14.5 12.9 Personnel at end of the period 1,864 1,721 8.3

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Key Figures 1-9/2014

(EUR 1,000) 1-9/2014 1-9/2013 Change % 1-12/2013 Revenue 96,548 96,209 0.4 128,647 EBITDA 7,134 7,260

  • 1.7

9,064 EBITDA, % 7.4 7.5 7.0 Operating profit (EBIT) 5,179 5,226

  • 0.9

6,366 EBIT, % 5.4 5.4 4.9 Basic earnings per share, EUR 0.19 0.18 5.6 0.22 Equity ratio, % 35.7 34.6 35.9 Operating cash flow 818

  • 2,406

134.0 1,789 ROCE, % 14.8 15.2 14.6 Personnel at end of the period 1,864 1,721 8.3 1,728

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Income Statement

(EUR 1,000) 7-9/2014 7-9/2013 Change % 1-9/2014 1-9/2013 Change % 1-12/2013 Revenue 29,529 27,510 7.3 96,548 96,209 0.4 128,647 Other operating income 583 847 1,160 1,063 1,134 Materials and services

  • 1,884
  • 3,113
  • 7,400
  • 8,563
  • 11,605

Staff costs

  • 21,175
  • 19,671
  • 69,265
  • 67,048
  • 90,250

Other operating expenses

  • 4,649
  • 3,402
  • 13,909
  • 14,401
  • 18,862

Depreciation and amortization

  • 656
  • 655
  • 1,955
  • 2,034
  • 2,697

Operating profit (EBIT) 1,749 1,515 15.4 5,179 5,226

  • 0.9

6,366 Financial income 4

  • 3

202 192 306 Financial expenses

  • 268
  • 255
  • 808
  • 709
  • 947

Share of the result of associate

  • 54
  • 54

Profit before taxes 1,485 1,257 18.1 4,572 4,655

  • 1.8

5,672 Income taxes

  • 135
  • 376
  • 613
  • 1,117
  • 1,282

Profit for the financial year 1,350 881 3,959 3,538 4,390

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Balance sheet

(EUR 1,000) 30.9.2014 30.9.2013 31.12.2013 Goodwill 39,217 39,706 39,131 Other non-current assets 8,627 8,362 8,678 Non-current assets, total 47,844 48,068 47,809 Trade and other receivables 27,295 25,376 25,709 Cash and cash equivalents 1,944 1,122 975 Current assets, total 29,238 26,499 26,684 TOTAL ASSETS 77,082 74,567 74,493 Equity, total 27,034 25,061 25,481 Non-current liabilities, total 11,253 13,862 14,279 Current liabilities, total 38,795 35,644 34,734 TOTAL EQUITY AND LIABILITIES 77,082 74,567 74,493

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Cash flow

(EUR 1,000) 7-9/2014 7-9/2013 1-9/2014 1-9/2013 1-12/2013 Operating cash flow (A)

  • 544
  • 1,468

818

  • 2,406

1,789 Investing cash flow (B)

  • 192
  • 483
  • 1,955
  • 875
  • 1,634

Cash flow after investments (A+B)

  • 736
  • 1,951
  • 1,137
  • 3,281

154 Financing cash flow (C) 740 870 1,895

  • 1,002
  • 4,647

Variation in cash (A+B+C) 4

  • 1,081

759

  • 4,282
  • 4,493

Assets at the beginning of the period 1,879 2,264 975 5,402 5,402 Exchange gains or losses on cash and cash equivalents 62

  • 61

211 2 65 Assets at the end of the period 1,944 1,122 1,944 1,122 975

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Etteplan Oyj’s financial targets and realization

Growth

  • Average 15% annual growth
  • 1-9/2014: 0.4%
  • Growth in key customers
  • Strong market position

enables Etteplan to grow faster than the market

  • Acquisitions supporting

growth

Profitability

  • Operating profit 10%
  • 1-9/2014: 5.4%
  • Change of business model
  • Market leadership

Cash flow

  • Improvement of cash flow

to strengthen the balance sheet

  • 1-9/2014: 0.8 MEUR
  • Development of pricing

models

  • Improved processing and

sales of sales receivables

Target and realization in 1-9/2014 Action High value- added services

  • Share of Managed Services to

grow to 50% of revenue by 2016

  • 1-9/2014: nearly 40%
  • Service solutions and

project business

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Revenue and EBIT 2000 - 2014

*) includes continuing and discontinued operations ‐6 ‐4 ‐2 2 4 6 8 10 12 14 16 10 20 30 40 50 60 70 80 90 100 110 120 130 140 2000 2001* 2002* 2003* 2004* 2005* 2006* 2007 2008 2009 2010 2011 2012 2013 1‐9/2014

Revenue EBIT

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Major shareholders on September 30, 2014

Name Number of shares Holding of shares, % Ingman Group Oy Ab 13 650 000 67,64 Oy Fincorp Ab 2 118 901 10,50 Varma Mutual Pension Insurance Company 821 328 4,07 Etteplan Oyj 461 791 2,29 Tuori Klaus 351 000 1,74 Tuori Aino 256 896 1,27 Sijoitusrahasto Taaleritehdas Mikro Markka 240 000 1,19 Kempe Anna 220 000 1,09 Kempe Lasse 100 000 0,50 Kempe Pia 97 700 0,48 Other shareholders 1 861 798 9,23 Total 20 179 414 100,00 Nominee-registrated shares 207 660 1,03

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IR contacts

  • Juha Näkki

President and CEO

  • Tel. +358 10 307 2077
  • Per-Anders Gådin

Senior Vice President, Finance & IT

  • Tel. +46 70 399 7929
  • Outi-Maria Liedes

Senior Vice President, Communications and Operational Development

  • Tel. +358 10 307 3251
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