ETTEPLAN OYJ: INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2004
Stock exchange release – Published: 03.11.2004 9:00:04
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2004
etteplan's turnover up by 20 % and OPERATING profit by 43 %
- Consolidated turnover: EUR 43,1 million (35,8 million)
- Operating profit: EUR 3,0 million (2,1 million)
- Earnings per share: EUR 0,37 (0,21)
- Personnel: 996 employees (953)
(Figures in brackets are those for the same period in 2003 unless otherwise
stated.)
The Etteplan Group's turnover grew as anticipated during January - September.
Turnover grew mainly organically as the customers transferred their design
functions to Etteplan. The operating profit grew noticeably as a result of both
improved efficiency of internal functions and improved market situation.
Turnover and result
Etteplan's turnover grew to EUR 43,1 million (35,8 million).
Operating profit was EUR 3,0 million (2,1 million), or 7,0 % of turnover (5,9 %).
Profit for the financial period before extraordinary items and taxes was EUR 3,0
million (2,1 million).
Net profit was EUR 1,6 million (0,9 million). Earnings per share were EUR 0,37
(0,21). Equity per share was EUR 2,76 (2,88).
The Group's balance sheet structure remained good. The equity ratio was 54,3 %
(58,0 %). The dept-equity ratio was -21,0 % (-15,7 %) and the return on
investment improved and was 26,7 % (18,5 %).
Business operations
Etteplan acts as a partner of large and medium-sized internationally operating
industrial companies and it carries out both entire product development and
delivery design projects. The Group's design services consist of 1) machine
technology and mechatronics design, 2) automation and electrical design as well
as 3) electronics and software design. In addition the company has an accredited
laboratory, which is specialized in electromagnetic interference measurements.
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 third quarter
In August, according to the Letter of Intent signed in June, started Etteplan's
and Nextrom's joint venture its functions in Shanghai, China.
In September, as a part of the co-operation agreement signed in June, transferred
6 designers from the Sulzer Pumps Finland Oy's Salo office to Etteplan.
Further in September Etteplan and Oy Sisu Auto Ab signed a co-operation
agreement. According to the agreement Etteplan provides design and project
management services to Sisu Auto.
Personnel
The operations and number of personnel of the Etteplan Group have grown steadily.
The Group employs at the moment 1008 persons. During the report period the Group
employed an average of 953 employees (855) and at the end of the period the
payroll numbered 996 employees (953). Increases in the number of staff were due
to transferred business activities and were directed to the carrying out of
customer projects. The Group's personnel at units abroad numbered 252 employees.
Capital expenditures and financing
The Group's total capital expenditures increased by 30,8 % compared with the same
period a year earlier and totalled EUR 2,3 million (1,8 million). Main part of
the investments went for increasing the share of ownership in the associated
companies as well as in expanding business operations.
Etteplan's financial position remained strong. Total assets at 30 September 2004
stood at EUR 25,6 million (25,8 million), of which cash and cash equivalents
totalled EUR 4,0 million (3,3 million). The Group's interest bearing liabilities
at the end of the period totalled EUR 1,2 million (1,1 million). The equity ratio
was 54,3 % (58,0 %). Good liquidity was maintained throughout the report period.
Treasury shares
At 30 September 2004 the company held 100 own shares, corresponding to 0,002 % of
the entire shares outstanding. The consideration paid for the shares amounted to
EUR 481,00. During the report period the company has not bought back its shares.
The company's treasury shares do not have an effect on the proportional
distribution of shareholdings.
Major events after the report period
As a part of the co-operation agreement made with Oy Sisu Auto Ab, Etteplan
established a regional office in Karjaa, Finland. Eleven designers from the
product development department of Sisu Auto's Karjaa factory transferred to this
office on October 1, 2004.
Adoption of the IFRS Standards
The company has made preparations to adopt the International Financial Reporting
Standards (IFRS) and has the ability to adopt the IFRS Standards from the
beginning of 2005. The opening balance 1.1.2004 according to the new IFRS
Stardards will be defined by the end of March 2005. Essential impacts of IFRS on
the figures are related to income recognition of projects as well as goodwill
depreciations. Adoption of the IFRS Standards has a slight positive effect to
company's result.
Near-term outlook
Demand for capital goods is expected to remain stable in company's main marketing
area in North and Central Europe in all industrial sectors. Operations in China
have been started well and the unit is expected to grow rapidly. Result for the
financial year is expected to be clearly better than the previous year.
Company's main objective is continuation of profitable 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, 3 November 2004
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.-30.9.04 1.1.-30.9.03 1.1.-31.12.03
TURNOVER 43 063 35 780 50 662
Variation in work in progress 591 653 110
Other operating income 49 158 134
Materials and services -1 225 -661 -1 087
Staff expenses -31 798 -26 798 -38 312
Depreciation and amortisation
according to plan -1 499 -1 282 -1 791
Other operating expenses -6 165 -5 614 -7 193
Share of losses from
participating interests 0 -128 -128
OPERATING PROFIT 3 017 2 109 2 395
" % 7,0 5,9 4,7
Financial income and expenses -19 -14 49
PROFIT BEFORE
EXTRAORDINARY ITEMS 2 998 2 095 2 444
Extraordinary items 0 0 0
PROFIT BEFORE APPROPRIATIONS
AND TAXES 2 998 2 095 2 444
Income taxes -1 119 -857 -1 054
Change in deferred tax liability 0 -1 -11
Minority interest -298 -331 -416
NET PROFIT FOR THE PERIOD 1 581 906 964
" % 3,7 2,5 1,9
CONSOLIDATED BALANCE SHEET (EUR 1000)
30.9.2004 30.9.2003 31.12.2003
ASSETS
NON-CURRENT ASSETS
Intangible assets 4 631 4 419 4 308
Tangible assets 3 169 3 364 3 361
Own shares 0 0 0
Other investments 421 435 443
NON-CURRENT ASSETS, TOTAL 8 222 8 218 8 112
CURRENT ASSETS
Stocks 1 493 1 150 843
Current receivables 11 913 13 071 10 518
Marketable securities 0 0 796
Cash and cash equivalent 4 004 3 321 5 810
CURRENT ASSETS, TOTAL 17 409 17 541 17 968
ASSETS, TOTAL 25 631 25 759 26 080
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 434 427 427
Share premium account 5 434 5 058 5 058
Reserve for own shares 0 0 0
Retained earnings 4 519 5 929 5 923
Net profit for the period 1 581 906 964
SHAREHOLDERS' EQUITY, TOTAL 11 969 12 320 12 372
MINORITY INTERESTS 1 418 2 117 2 194
LIABILITIES
Deferred tax liabilities 198 189 198
Long-term liabilities 1 102 895 1 065
Current liabilities 10 944 10 238 10 249
LIABILITIES, TOTAL 12 244 11 322 11 513
SHAREHOLDERS' EQUITY AND
LIABILITIES, TOTAL 25 631 25 759 26 080
KEY FIGURES FOR ETTEPLAN GROUP (EUR 1000)
Changes
1.1.-30.9.04 1.1.-30.9.03 1.1.-31.12.03 for prev.
year
Turnover 43 063 35 780 50 662 20,4 %
Operating profit 3 017 2 109 2 395 43,0 %
% of turnover 7,0 5,9 4,7
Profit before extra-
ordinary items 2 998 2 095 2 444 43,1 %
Net profit for
the period 1 581 906 964 74,5 %
Return on investment, % 26,7 18,5 16,1
Return on equity, % 17,9 11,5 9,6
Equity ratio % 54,3 58,0 57,2
Gross interest-bearing
loans 1 194 1 052 1 197 13,6 %
Dept-equity ratio, % -21,0 -15,7 -37,1
Total balance 25 631 25 759 26 080 -0,5 %
Gross investments 2 326 1 779 2 772 30,8 %
Earnings per share 0,37 0,21 0,23 76,2 %
Equity per share 2,76 2,88 2,89 -4,2 %
Personnel at the end
of the period 996 953 936 4,5 %
Personnel, average 953 855 876 11,5 %
CONSOLIDATED CASH FLOW STATEMENT (EUR 1000)
1.1.-30.9.04 1.1.-30.9.03 1.1.-31.12.03
OPERATING CASH FLOW
Cash receipts from customers 42 032 31 383 48 063
Other operating income 49 158 109
Operating expenses paid 39 042 31 699 44 117
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 3 040 -157 4 055
Interest and payment paid for
financial expenses 46 46 59
Interest received 27 33 98
Dividend received 0 0 11
Income taxes paid 1 119 857 1 054
OPERATING CASH FLOW (A) 1 902 -1 028 3 051
INVESTMENT CASH FLOW
Investment in tangible and
intangible assets 2 326 3 668 2 759
Sales of tangible and
intangible assets 176 70 203
Investments to other investments 0 0 13
Sales of other investments 0 1 827 0
INVESTMENT CASH FLOW (B) -2 150 -1 770 -2 569
FINANCING CASH FLOW
Selling of own shares 0 139 0
Short-term loans, decrease 39 53 78
Long-term loans, increase 36 99 269
Dividends paid and other
profit distribution 2 351 1 226 1 227
FINANCING CASH FLOW (C) -2 354 -1 041 -1 036
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/ DECREASE (-) -2 602 -3 839 -554
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 6 606 7 160 7 160
ASSETS AT THE END
OF THE FINANCIAL PERIOD 4 004 3 321 6 606
