INTERIM REPORT 1 JANUARY – 30 JUNE 2003
Stock exchange release – Published: 13.08.2003 8:00:17
INTERIM REPORT 1 JANUARY - 30 JUNE 2003
ETTEPLANS TURNOVER UP BY 32 % AND NET PROFIT BY 43 %
- Consolidated turnover: EUR 23,8 million (18,0 million)
- Operating profit: EUR 1,5 million (1,2 million)
- Earnings per share: EUR 0,17 (0,13)
- Personnel: 838 employees (658)
(Figures in brackets are those for the same period in 2002 unless
otherwise stated.)
The Etteplan Groups turnover and result grew recognisably during
January - June. Turnover grew both organically and through
acquisitions. The operating profit grew in the same relation with
the turnover growth.
Turnover and result
Etteplans turnover grew to EUR 23,8 million (18,0 million)
despite the continued tight market situation. The growth in
turnover was most powerful in Finland and in Germany.
Profitability has been satisfactory in the most important market
areas. The number of fixed price assignments has grown which can
be seen in the growth of backlog work to EUR 0,9 million. The
income recognition of these assignments will occur after the work
has been completed.
Operating profit was EUR 1,5 million (1,2 million), or 6,4 % of
turnover (6,5 %). Profit for the financial period before extra-
ordinary items and taxes was EUR 1,5 million (1,2 million).
Net profit was EUR 0,7 million (0,5 million). Earnings per share
were EUR 0,17 (0,13). Equity per share was EUR 2,79 (2,72).
Business Operations
Etteplan acts as a partner of large and medium-sized inter-
nationally operating industrial companies and it carries out
both entire product development and delivery design projects.
The Groups design services consist of 1) machine technology
and mechatronics design, 2) automation and electrical design
as well as 3) electronics and software design. The customer
base comprises equipment manufacturers and end-users in the
wood-processing industry as well as the lifting and hoisting
equipment, process and electronics industries.
Major events in the second quarter
In May a preliminary agreement was signed to acquire a 40 %
share of a Swedish J.A. Produktutveckling AB by using the stocks
Etteplan possesses as payment.
In June Etteplan signed an agreement with Nextrom Oyj according
to which nine designers and project managers transferred to
Etteplan. The agreement is a natural addition to the partnership-
based co-operation, which started between the companies in the
beginning of the year.
In June nine designers from KCI Hoists Oys Hämeenlinna unit were
transferred to Etteplan. At the same time the companies entered
into partnership based co-operation.
Major events after the report period
According to the agreement a 75 % share majority transferred to
Etteplan on 1 August 2003. The average price for Etteplan Oyj
shares used as payment was EUR 4,36 and the total price for the
transaction was EUR 0,6 million. At the same time the total
amount of personnel grew to 938 persons.
Personnel
The operations and number of personnel of the Etteplan Group have
grown steadily. During the report period the Group employed an
average of 824 employees (615) and at the end of the period the
payroll numbered 838 employees (658). Increases in the number of
staff were due to transferred business activities and were nearly
entirely directed to the carrying out of customer projects.
The Groups personnel at units abroad, including associated
companies, numbered 203 employees.
Capital expenditures and financing
The Groups total capital expenditures decreased by 73,3 %
compared with the same period a year earlier and totalled
EUR 0,9 million (3,5 million). The investments went for the
purchase of computer software and hardware as well as for the
development of information networks. In addition to investments
the company has spent EUR 0,5 million to purchase own shares.
Etteplans financial position remained strong. Total assets at
30 June 2003 stood at EUR 25,0 million (21,5 million), of which
cash and cash equivalents as well as securities held as financial
fixed assets totalled EUR 5,1 million (4,5 million). The Groups
interest bearing liabilities at the end of the period totalled
EUR 0,9 million (0,9 million). The equity ratio was 56,2 %
(61,5 %). Good liquidity was maintained throughout the report
period.
Share capital and treasury shares
The Annual General Meeting held on 26 March 2003 granted the
Board of Directors authorizations to buy back the companys own
shares and to transfer them within the maximum limits permitted
for a limited company. At 30 June 2003 the company held 122 900
treasury shares, corresponding to 2,9 % of the entire shares
outstanding. The consideration paid for the shares on average
was EUR 4,36. During the report period the company has bought
back 98 800 of its shares. The companys treasury shares do not
have an effect on the proportional distribution of shareholdings.
At the moment the company possesses 100 shares.
Near-term outlook
The demand for capital goods in the world market is expected to
improve slowly. As the demand on electronics market is not
expected to improve the management has started a marketing
boosting program. On the other areas the demand is expected to
remain the same. Despite the factors of uncertainty in the world
market the management of the company assumes that the turnover
will grow as predicted also during the third quarter.
Companys main objectives are profitability and growth. The
growth is achieved organically when customers transfer their
design activities to Etteplan and by acquisitions. The company
works persistently and systematically to ensure the realization
of growth objectives.
Hollola, 13 August 2003
Etteplan Oyj
Board of Directors
For additional information, contact: CEO Heikki Hornborg,
tel. +358 3 872 9011, GSM +358 400 873 063.
The figures are unaudited.
DISTRIBUTION: Helsinki Exchanges
Principal media
www.etteplan.com
CONSOLIDATED PROFIT AND LOSS ACCOUNT(EUR 1000)
1.1.-30.6.03 1.1.-30.6.02 1.1.-31.12.02
TURNOVER 23 805 18 047 37 011
Variation in work in progress 437 88 196
Other operating income 39 12 66
Materials and services -276 -144 -347
Staff expenses -17 842 -12 893 -26 387
Depreciation and amortisation
according to plan -741 -828 -1 744
Other operating expenses -3 813 -2 913 -5 852
Share of losses from
participating interests -86 -200 -219
OPERATING PROFIT 1 523 1 168 2 724
" % 6,4 6,5 7,4
Financial income and expenses -7 -1 29
PROFIT BEFORE
EXTRAORDINARY ITEMS 1 516 1 167 2 753
Extraordinary items 0 0 0
PROFIT BEFORE APPROPRIATIONS
AND TAXES 1 516 1 167 2 753
Income taxes -568 -444 -1 020
Change in deferred tax liability 0 0 -29
Minority interest -209 -205 -434
NET PROFIT FOR THE PERIOD 739 517 1 270
" % 3,1 2,9 3,4
CONSOLIDATED BALANCE SHEET (EUR 1000)
1.1.-30.6.03 1.1.-30.6.02 1.1.-31.12.02
ASSETS
NON-CURRENT ASSETS
Intangible assets 2 382 2 400 2 343
Tangible assets 3 218 2 881 3 054
Own shares 536 111 139
Other investments 2 300 2 714 2 381
NON-CURRENT ASSETS, TOTAL 8 436 8 107 7 917
CURRENT ASSETS
Stocks 946 340 493
Current receivables 10 524 8 645 7 027
Marketable securities 989 0 1 497
Cash and cash equivalent 4 084 4 450 5 663
CURRENT ASSETS, TOTAL 16 543 13 436 14 680
ASSETS, TOTAL 24 979 21 542 22 597
SHAREHOLDERS EQUITY AND LIABILITIES
SHAREHOLDERS EQUITY
Share capital 427 427 427
Share premium account 5 058 5 058 5 058
Reserve for own shares 536 111 139
Retained earnings 5 380 5 595 5 565
Net profit for the period 739 517 1 270
SHAREHOLDERS EQUITY, TOTAL 12 139 11 709 12 460
MINORITY INTERESTS 1 914 1 544 1 857
LIABILITIES
Deferred tax liabilities 188 159 188
Long-term liabilities 769 790 796
Current liabilities 9 969 7 341 7 297
LIABILITIES, TOTAL 10 926 8 290 8 281
SHAREHOLDERS EQUITY AND
LIABILITIES, TOTAL 24 979 21 542 22 597
KEY FIGURES FOR ETTEPLAN GROUP (EUR 1000)
Changes
1.1.-30.6.03 1.1.-30.6.02 1.1.-31.12.02 for prev
year
Turnover 23 805 18 047 37 011 31,9 %
Operating profit 1 523 1 168 2 724 30,4 %
% of turnover 6,4 6,5 7,4
Profit before extra-
ordinary items 1 516 1 167 2 753 29,9 %
Net profit for
the period 739 517 1 270 42,7 %
Return on investment, % 20,4 17,1 19,7
Return on equity, % 13,7 11,1 12,6
Equity ratio % 56,2 61,5 63,4
Gross interest-bearing
loans 933 868 1 006 7,4 %
Dept-equity ratio, % -30,6 -27,3 -43,4
Total balance 24 979 21 542 22 597 16,0 %
Gross investments 944 3 537 4 497 -73,3 %
Earnings per share 0,17 0,13 0,30 34,4 %
Equity per share 2,79 2,72 2,90 2,7 %
Personnel at the end
of the period 838 658 723 27,4 %
Personnel, average 824 615 660 34,0 %
CONSOLIDATED CASH FLOW STATEMENT (EUR 1000)
1.1.-30.6.03 1.1.-30.6.02 1.1.-31.12.02
OPERATING CASH FLOW
Cash receipts from customers 21 838 17 565 37 933
Other operating income 39 12 66
Operating expenses paid 21 006 15 004 32 050
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 872 2 573 5 950
Interest and payment paid for
financial expenses 27 34 129
Interest received 20 33 153
Dividend received 0 0 5
Income taxes paid 568 444 1 020
OPERATING CASH FLOW (A) 297 2 127 4 958
INVESTMENT CASH FLOW
Investment in tangible and
intangible assets 944 1 197 2 346
Sales of tangible and
intangible assets 50 0 111
Investments to other investments 5 2 270 1 463
INVESTMENT CASH FLOW (B) -898 -3 467 -3 697
FINANCING CASH FLOW
Purchase of own shares 396 36 64
Short-term loans, increase 163 0 0
Short-term loans, decrease 0 88 0
Long-term loans, increase 0 51 101
Long-term loans, decrease 26 0 0
Dividends paid and other
profit distribution 1 226 1 365 1 365
FINANCING CASH FLOW (C) -1 485 -1 438 -1 329
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/ DECREASE (-) -2 087 -2 777 -68
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 7 160 7 227 7 227
ASSETS AT THE END
OF THE FINANCIAL PERIOD 5 073 4 450 7 160
