ETTEPLAN OYJ: INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2005
Stock exchange release – Published: 02.11.2005 10:00:00
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2005
ETTEPLAN'S REVENUE GROWS BY 29%; OPERATING PROFIT EUR 2.3 MILLION
- Consolidated revenue: EUR 56.6 million (43.9 million)
- Operating profit: EUR 2.3 million (3.6 million)
- Net profit: EUR 1.5 million (2.1 million)
- Earnings per share: EUR 0.16 (0.24)
- Personnel at the
end of the period: 1,237 employees (996)
(Figures in parenthesis refer to the corresponding period of the
previous year, unless otherwise indicated.)
Etteplan Oyj's revenue continued to increase robustly. During the
report period, the company carried out its' strategy by continuing
to take over outsourcings. After the report period the company
strengthened its position in technical documentation integrally
related to design by acquiring a majority stake in DokuMentori Oy.
The third quarter is the weakest of the year due to seasonal
variations. The start-up of projects after the holiday season has
a significant bearing on the period. During the period now ended,
demand for design projects began to materialize later than expected.
In addition, the main reasons why the result fell short of the
objective during the third quarter were that operations in Central
Europe were still posting a loss and significant outlays were made
on the operations being initiated in China.
Revenue and result
Etteplan's revenue rose to EUR 56.6 million (EUR 43.9 million).
Third-quarter revenue amounted to EUR 16.1 million
(EUR 14.0 million), second-quarter revenue to EUR 21.1 million
(EUR 15.3 million) and first-quarter revenue to EUR 19.4 million
(EUR 14.6 million).
Operating profit during the review period totalled EUR 2.3
million (EUR 3.6 million), representing 4.1% of revenue (8.1%).
Third-quarter operating profit amounted to EUR -0.2 million
(EUR 1.2 million). Profit for the period before taxes and
minority interest was EUR 2.3 million (EUR 3.5 million).
Taxes amounted to EUR 0.6 million (EUR 1.2 million). Taxes have
been periodized in line with the result for the review period.
Net profit for the period amounted to EUR 1.5 million (EUR 2.1
million). Earnings per share came in at EUR 0.16 (EUR 0.24).
Equity per share grew by 16.9% to EUR 1.68 (EUR 1.43). Return on
investment fell compared to the previous year and was 17.6%
(31.0%).
Business operations
Etteplan operates as a partner of large and medium-sized
internationally operating industrial companies, providing
industrial engineering design services. The Group's design
services are divided into two segments: Delivery Design and
Product Development.
The Delivery Design segment provides services for the design
of machinery and devices, as well as production facilities.
Mechanical, electrical, automation and plant design and
commissioning services are provided for project and equipment
suppliers as well as for plant owners and operators. The Product
Development segment provides design services for product
development. The services are based on long-term partnerships
with customers and are aimed to ensure the customer's
competitiveness in the future. In addition, the company has an
accredited laboratory which is specialized in electromagnetic
disturbance measurements and a unit that specializes in technical
documentation products and services.
Etteplan's customer base comprises equipment manufacturers and
end-users in the wood-processing industry as well as the process,
automotive, lifting and hoisting equipment and electronics
industries.
Major events in the third quarter
In August, Etteplan and ABB Oy signed a cooperation agreement.
Under the agreement, Etteplan will provide flexible and cost-
effective design services to ABB Oy. As part of the agreement,
9 mechanical engineering designers from ABB Oy's Transformers
unit in Vaasa transferred to Etteplan on 1 September 2005.
Etteplan Oyj held an Extraordinary General Meeting on
21 September 2005 in Helsinki. The Extraordinary General Meeting
passed the motions put forward by the Board of Directors to
authorize the Board of Directors to increase the share capital,
to take convertible loans and/or issue option rights. In addition,
the Extraordinary General Meeting passed the motion by the Board
of Directors to amend article 10 of the Articles of Association.
The resolutions made by the Extraordinary General Meeting are
presented in detail in a stock exchange release published on
21 September 2005.
Personnel
The Etteplan Group's operations and number of personnel have
grown steadily. During the review period, the Group employed an
average of 1,211 people (953). At the end of the period, the
payroll numbered 1,237 employees (996). The number of employees
rose due to the business operations transferred to the Group;
these employees are almost solely allocated to the implementation
of customer projects. 454 people worked for the Group abroad.
Capital expenditures and financing
The Group's total capital expenditures amounted to EUR 4.8
million (EUR 2.3 million). The capital expenditures were
primarily earmarked for the implementation and development
of business operations.
Etteplan's financial position was satisfactory. Total assets at
30 September 2005 stood at EUR 31.4 million (EUR 25.4 million),
of which cash and cash equivalents as well as securities held as
financial fixed assets totalled EUR 2.7 million (EUR 4.2 million).
The Group's interest-bearing liabilities at the end of the period
totalled EUR 2.9 million (EUR 1.2 million). The equity ratio was
52.0% (54.7%).
Shares
Etteplan Oyj's shares have been quoted under the Other Services
business sector on the Main List of the Helsinki Stock Exchange
as from 24 May 2005. The company's shares were previously quoted
on the NM List of the Helsinki Stock Exchange.
At the end of the report period, Etteplan Oyj's share capital
amounted to EUR 2,274,011.50 and the number of its shares to
9,096,046.
After the end of the review period, Etteplan Oyj's share capital
was increased in connection with the acquisition of a majority
stake in DokuMentori Oy on 3 October 2005. The share capital was
increased by 517,084 shares and EUR 129,271 by means of a directed
issue. The new shares were entered in the Trade Register on
13 October 2005. A stock exchange release on the raising of the
share capital was published on the same date. The subscribed
shares went into public trading on the Helsinki Stock Exchange
on 14 October 2005. After the increase, Etteplan Oyj's share
capital amounts to EUR 2,403,282.50 and the total number of
shares to 9,613,130.
On 30 September 2005, the company held 200 of its own shares
(treasury shares). The consideration paid for the shares is
EUR 481.00. The company did not buy back any of its own shares
during the review period. The shares owned by the company
have no effect on the distribution of shareholdings.
The authorizations to buy back and transfer own shares granted
to the Board of Directors at the Annual General Meeting held
on 23 March 2005 and the authorizations to increase the share
capital, to take convertible loans and/or issue option rights
granted to the Board of Directors at the Extraordinary General
Meeting held on 21 September 2005 remain valid. The authorizations
were not exercised during the review period. The authorizations
are presented in detail in stock exchange releases dated 23 March
2005 and 21 September 2005.
Adoption of IFRS
Etteplan Oyj changed over to accounting and financial statement
principles that are in line with IFRS (International Financial
Reporting Standards) in its financial reporting as from
1 January 2005. The company will draft its first full IFRS
financial statements for 2005. On 22 April 2005, Etteplan
published a stock exchange release including the IFRS comparative
information for 2004. The interim report has been drafted in
accordance with IFRS recognition and measurement policies.
Major events after the report period
In October, Etteplan Oyj acquired a 70% majority stake in the
Tampere-based company DokuMentori Oy. This company, which was
established in 1998, offers products and services for technical
documentation. The company's revenue amounted to EUR 4 million
in 2004 and it currently employs 75 persons.
Outlook for the future
Demand for industrial design services is expected to remain
unchanged in the main market area, the Nordic countries.
Functions in Central Europe are currently being reorganized and
it is expected that the implemented solutions will be started up
before the end of the year. The non-recurring consequences and
possible costs of the measures taken due to the reorganization
will only become clear when the solution to be implemented has
been decided upon. The rapid drop in demand caused by the
difficulties of the Italian automotive industry has been largely
solved by downscaling capacity and acquiring new customers.
Revenue growth is expected to remain favourable thanks, for
instance, to the outlays made on technical documentation. The
internal efficiency-boosting measures that have been started up
are geared towards improving profitability in both business
segments. Result for the entire year will fall behind from the
previous year.
The information presented herein has not been audited.
Hollola, 2 November 2005
Etteplan Oyj
Board of Directors
For additional information, contact: CEO Heikki Hornborg,
tel. +358 3 872 9011, GSM +358 400 873 063 or
CFO, Corporate Planning Pia Björk, tel. +358 3 872 9012,
GSM +358 400 241 815.
DISTRIBUTION: Helsinki Stock Exchange
Principal media
www.etteplan.com
CONSOLIDATED PROFIT AND LOSS ACCOUNT
(EUR 1 000) 1-9/2005 1-9/2004 1-12/2004
Revenue 56 603 43 943 61 967
Other operating income 164 50 121
Materials and services -1 578 -1 283 -1 926
Staff costs -42 440 -31 799 -44 036
Other operating expenses -9 005 -6 154 -9 053
Depreciation and amortization
expenses -1 442 -1 192 -1 630
Operating profit 2 301 3 565 5 443
Net financial expenses -44 -19 42
Profit before taxes and
minority interest 2 257 3 546 5 485
Income taxes -647 -1 186 -1 686
Minority interest -157 -298 -588
Net profit for the
financial period 1 454 2 062 3 211
CONSOLIDATED BALANCE SHEET
(EUR 1 000) 30.9.2005 30.9.2004 31.12.2004
ASSETS
Non-current assets
Goodwill 480 10 8
Intangible assets 1 595 1 303 1 309
Goodwill on consolidation 6 385 3 371 3 743
Property, plant and equipment 3 961 3 826 3 904
Investments available for sales 52 52 95
Other non-current receivables 40 0 0
Non-current assets, total 12 513 8 562 9 059
Current assets
Trade receivables and
other receivables 16 167 12 641 12 201
Financial assets at fair value
through profit and loss account 226 229 234
Cash and cash equivalents 2 480 4 004 6 601
Current assets, total 18 872 16 874 19 035
ASSETS TOTAL 31 385 25 436 28 095
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Share capital 2 274 434 434
Share premium account 5 262 5 434 5 434
Translation difference -185 -8 -19
Retained earnings 6 445 4 538 4 532
Net profit or loss for the period 1 454 2 062 3 211
Minority interest 1 029 1 418 1 208
Shareholders' equity, total 16 279 12 460 14 800
Non-current liabilities
Non-current interest-bearing
liabilities 1 718 1 123 1 342
Non-current liabilities, total 1 718 1 123 1 342
Current liabilities
Deferred tax liability 161 206 166
Pension liability 13 134 13
Instalment of non-current
liabilities 855 93 28
Current interest-bearing
liabilities 336 13 28
Trade and other payables 12 025 9 989 11 718
Current liabilities, total 13 389 10 435 11 952
Liabilities, total 15 107 11 558 13 295
SHAREHOLDERS' EQUITY AND
LIABILITIES, TOTAL 31 385 25 436 28 095
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1 000) 1-9/2005 1-9/2004 1-12/2004
OPERATING CASH FLOW
Cash receipts from customers 53 761 42 032 60 675
Other operating income 154 49 121
Operating expenses paid 54 325 39 042 54 944
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES -410 3 040 5 852
Interest and payment paid for
financial expenses 83 46 53
Interest received 38 27 90
Dividend received 8 0 6
Income taxes paid 846 1 119 1 662
OPERATING CAS FLOW (A) -1 292 1 902 4 234
INVESTMENT CASH FLOW
Investment in tangible and
intangible assets 2 509 2 326 2 363
Sales of tangible and
intangible assets 262 176 371
Proceeds from sale of investments 42 0 21
INVESTMENT CASH FLOW (B) -2 205 -2 150 -2 013
FINANCING CASH FLOW
Rights issue 188 0 0
Short-term loans, decrease 28 39 105
Long-term loans, increase 519 36 230
Dividend paid and other
profit distribution 1 305 2 351 2 351
FINANCING CASH FLOW (C) -625 -2 354 -2 225
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/DECREASE (-) -4 122 -2 602 -5
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 6 601 6 606 6 606
ASSETS AT THE END OF
OF THE FINANCIAL PERIOD 2 480 4 004 6 601
The comparison figures 2004 in the consolidated cash flow
statement are according to FAS.
Evaluation of the changes in shareholders' equity, EUR 1 000
Share Share Trans- Retained Minority Total
capital premium lation earnings interest
account differ.
Shareholders'
equity on
1.1.2004 427 5 058 6 885 2 194 14 564
Dividends paid -2 351 -345 -2 696
Increase in
share capital 7 376 383
Acquisitions/
changes in share
ownership -730 -730
Net profit for
the financial
period 2 062 298 2 360
Translation
difference -8 3 1 -4
Shareholders'
equity on
30.9.2004 434 5 434 -8 6 599 1 418 13 877
Shareholders'
equity on
1.1.2005 434 5 434 -19 7 743 1 208 14 800
Dividends paid -1 305 -213 -1 518
Share issue 1 739 -1 739 0
Increase in
share capital 91 1 388 1 479
Options 10 179 189
Acquisitions/
changes in share
ownership 7 34 41
Net profit for
the financial
period 1 454 1 454
Translation
difference -166 -166
Shareholders'
equity on
30.9.2005 2 274 5 262 -185 7 899 1 029 16 279
KEY FIGURES
1-9/2005 1-9/2004 1-12/2004 Changes
for prev.
year
Revenue 56 603 43 943 61 967 28,8 %
Operating profit 2 301 3 565 5 443 -35,4 %
Operating profit, % 4,1 8,1 8,8
Profit before taxes and
minority interest 2 257 3 546 5 485 -36,4 %
Net profit for the period 1 454 2 062 3 211 -29,5 %
Return on investment, % 17,6 31,0 34,7
Return on equity, % 13,8 22,1 25,9
Equity ratio, % 52,0 54,7 52,9
Gross interest-bearing loans 2 908 1 229 1 398 136,7 %
Net gearing, % 1,2 -21,6 -36,7
Balance sheet total 31 385 25 436 28 095 23,4 %
Gross investments 4 756 2 326 2 384 104,5 %
Earnings per share 0,16 0,24 0,37 -32,4 %
Equity per share 1,68 1,43 1,57 16,9 %
Personnel at the end of
the period 1 237 996 1 049 24,2 %
Personnel, average 1 211 953 965 27,1 %
