ETTEPLAN OYJ INTERIM REPORT Q3: DEMAND FOR DESIGN SERVICES STABILIZED
Stock exchange release – Published: 29.10.2009 9:30:00
Etteplan Q3: Demand for design services stabilized
Change in the Group structure in the third quarter of the year
In the third quarter of the year, Etteplan sold its majority holding in Etteplan
Tech AB. Etteplan owns now 19.9% of the company and it is treated as
discontinuing operation in this interim report. In January-September revenue for
discontinuing operations amounted to EUR 14.2 million and profit for the period
for discontinuing operations was EUR -10.5 million (EUR 0.1 million). Profit for
period includes EUR 2.8 million loss accumulated by discontinuing operations
until the sale and EUR 7.6 million loss due to the sales of shares of Etteplan
Tech AB. The loss includes mainly goodwill write-down, caused by the sale of
Etteplan Tech AB, which does not affect the cash flow.
Interim report for July-September 2009
- The Group's revenue for continuing operations was EUR 18.6 million (7-9/2008:
EUR 30.3 million).
- Operating profit for continuing operations was EUR -1.7 million (EUR 2.1
million).
- Earnings per share for continuing operations were EUR -0.06 (EUR 0.07).
- The number of personnel at the end of the period was 1,640 (1,780).
Interim report for January-September 2009
- The Group's revenue for continuing operations was EUR 73.9 million (1-9/2008:
EUR 101.5 million).
- Operating profit for continuing operations excluding non-recurring costs was
EUR -0.1 million (EUR 9.7 million).
- Operating profit for continuing operations was EUR -4.9 million (EUR 9.7
million). Operating profit for continuing operations includes EUR 4.7 million
operation adjustment costs and reservations.
- Profit for the period for discontinuing operations was EUR -10.5 million (EUR
0.1 million).
- Operating cash flow was EUR -4.8 million (EUR 2.6 million).
- Cash flow after the investments was EUR -6.5 million (EUR -6.2 million).
- Earnings per share for continuing operations were EUR -0.19 (EUR 0.33).
Key figures* (EUR 1 000)
7-9/2009 7-9/2008 1-9/2009 1-9/2008 1-12/2008
Revenue 18,556 30,300 73,915 101,540 135,345
Operating profit -1,674 2,071 -4,854 9,730 13,749
Operating profit, % -9.0 6.8 -6.6 9.6 10.2
Profit for the period -1,223 1,353 -3,810 6,701 9,005
Profit for the period, % -6.6 4.5 -5.2 6.6 6.7
Equity ratio, % 22.6 35.2 22.6 35.2 34.2
Net gearing, % 158.7 67.7 158.7 67.7 54.6
Total assets 61,301 84,542 61,301 84,542 78,880
* for continuing operations
Matti Hyytiäinen, President and CEO of Etteplan Oyj, comments on the interim
report as follows:
”Decline in demand for design services ceased in the end of the third quarter of
the year and stabilized on lower than usual level.
Our customers have reorganized their operations to ensure profitable business
preconditions in the current market situation. For Etteplan this meant increased
market share as customers concentrated their design services procurement.
During the third quarter we signed a number of new contracts in which the work
will be done in our Chinese units. With this operating model we offer our
customers significant cost savings in technical design and product information.
During the period under review, a number of customers commenced preparatory
measures to start new product development projects. Among medical technology
equipment manufacturers' new product development projects commenced and it
showed as an increase in the number of assignments. During the third quarter of
the year tender activity in our delivery design services was more active
compared to the beginning of the year.
Measures, which we commenced during the spring, to adjust design capacity to the
current market situation as well as lightening of cost structure continued
successfully. These development measures will be concluded during the last
quarter of the year, and as a result of these measures our service ability and
competitiveness will further improve. These measures will also positively affect
our current financial position.”
Accounting principles
The interim report has been prepared in accordance with IAS 34 (Interim
Financial Reporting) and the preparation and accounting policies presented in
the 2008 annual financial statements, but not all requirements of the IAS 34
standard for interim financial reporting have been followed in the accounting.
REPORT FOR JULY-SEPTEMBER 2009
Business review for July-September
Decline in demand for technical design and product information services stopped
during the review period. Demand for design services among equipment
manufacturers in forest industry and medical technology equipment manufacturers
improved towards the end of the review period. In Etteplan the improved demand
within these sectors showed as an increase in the number of assignments. In
energy and power transmission sector demand remained steady during review
period. Demand was on a satisfactory level in aerospace and defence equipment
industries.
In Sweden Etteplan continued with the operation adjustments that commenced
during the first and second quarter of 2009. The sale of the Swedish subsidiary
Etteplan Tech AB was continuation of operation adjustments implemented in Sweden
during the beginning of the year. Etteplan sold majority holding in its Swedish
subsidiary Etteplan Tech AB. The contract was signed on September 18, 2009.
Etteplan sold 66.7% of Etteplan Tech AB's shares and voting rights. In addition,
Etteplan Oyj sold 13.4% of Etteplan Tech AB's shares and voting rights with
contract signed on September 23, 2009. After the additional sale Etteplan Oyj
owns 19.9% of Etteplan Tech AB. The sales have a healing impact on whole Group's
operations profitability.
Etteplan Tech AB provides design services mainly to automotive industry. The
company employs approximately 240 persons in Gothenburg and Trollhättan and has
annual revenue of approximately EUR 19 million.
With the arrangement Etteplan Tech AB is an even more competitive and flexible
company. It will continue cooperation with Etteplan utilizing Etteplan's
expertise in automotive industry customers' assignments. Etteplan Group's other
Swedish subsidiaries continue their operations as a part of Etteplan. Among
others Cool Engineering AB, operating in Gothenburg, serves customers
manufacturing trains, mobile working machines, engines and cars by offering
testing and analysis services that require expertise. These services are
provided to add energy efficiency and improve emission control.
Etteplan concentrates its operations even more effectively in industrial machine
and equipment engineering in order to grow in operations especially within
technical product information and embedded systems' sectors in Sweden.
Etteplan signed new technical design and product information framework
agreements with companies among others in energy and power transmission sector
and aerospace and defence equipment industries during the quarter.
Financial development for July-September
In July-September 2009, Etteplan's revenue for continuing operations amounted to
EUR 18.6 million (7-9/2008: EUR 30.3 million).
Operating profit for continuing operations was EUR -1.7 million (7-9/2008: EUR
2.1 million).
REPORT FOR JANUARY-SEPTEMBER 2009
Business review for January-September
In January-September, weakened order books of Etteplan's customers' reflected
the demand for design services. During the review period the volume of technical
design and product information assignments decreased approximately with a
quarter in comparison to January-September period in 2008. The decline in the
volume of assignments stabilized towards the end of the review period. In the
beginning of the year, the decline was steepest in the demand for design
services among the equipment manufacturers in forest industry. Demand for design
services for forest industry improved in the third quarter of the year. The
demand for design services among medical technology equipment manufacturers also
improved during the end of the review period.
In plant engineering the decline in demand for design services stopped during
the first half of the year and remained steady during the third quarter, but on
a clearly lower level compared to the corresponding period in year 2008.
Etteplan renewed as well as signed new framework agreements with global
customers steadily during the whole review period.
In Finland, the amount of personnel reductions remained on the same level with
the beginning of the year and was approximately 250 employees. The reductions
have mainly been carried out as temporary lay offs. In Sweden, the amount of
personnel reductions in continuing operations is approximately 70 employees.
Personnel reduction numbers include the reductions made and reported in the end
of year 2008.
Revenue
In January-September 2009, Etteplan's revenue for continuing operations amounted
to EUR 73.9 million (1-9/2008: EUR 101.5 million).
Result
Operating profit for continuing operations was EUR -4.9 million (1-9/2008: EUR
9.7 million). Operating profit for continuing operations includes EUR 4.7
million operation adjustment costs and reservations. Operating profit for
continuing operations excluding non-recurring costs was EUR -0.1 million (EUR
9.7 million).
The profit for continuing operations for the period before taxes was EUR -5.3
million (1-9/2008: EUR 9.1 million). Taxes amounted to EUR -1.5 million (EUR 2.4
million). Taxes have been periodized in line with the result for the period. The
income tax rate calculated on profit before taxes in the consolidated income
statement was 28.1% (26.7%).
Profit for continuing operations for the period was EUR -3.8 million (1-9/2008:
EUR 6.7 million). Earnings per share for continuing operations were EUR -0.19
(EUR 0.33). Equity per share was EUR 0.70 (EUR 1.48). The return on investment
was -15.5% (26.9%).
Profit for the period for discontinuing operations was EUR -10.5 million (EUR
0.1 million). Profit for period includes EUR 2.8 million loss accumulated by
discontinuing operations until the sale and EUR 7.6 million loss due to the
sales of shares of Etteplan Tech AB. The loss includes mainly goodwill
write-down, caused by the sale of Etteplan Tech AB, which does not affect the
cash flow.
Net profit for the review period was EUR -14.3 million (EUR 6.8 million).
Financial position and cash flow
Total assets on September 30, 2009, were EUR 61.3 million (December 31, 2008:
EUR 78.9 million). Goodwill as shown on the balance sheet was EUR 28.1 million
(December 31, 2008: EUR 33.2 million). The Group's cash and cash equivalents
stood at EUR 2.1 million (December 31, 2008: EUR 1.9 million). The Group's
interest-bearing liabilities amounted to EUR 24.0 million (December 31, 2008:
EUR 16.6 million) at period end. The equity ratio was 22.6% (December 31, 2008:
34.2%). Cash flow before investments and financial items totalled EUR -4.8
million (1-9/2008: EUR 2.6 million).
Company has commenced procedures to strengthen the capital structure.
Capital expenditure
The Group's gross investments were EUR 1.2 million (1-9/2008: EUR 11.0 million).
During the comparison period in 2008 the investments consisted mainly of company
acquisitions.
Personnel
Etteplan Group's personnel averaged 1,698 (1-9/2008: 1,761) during the review
period and was 1,640 (September 30, 2008: 1,780) at period end. Outside Finland,
the Group employed 644 people (September 30, 2008: 640) at the period end.
Incentive plan for key personnel
The Etteplan Oyj Board of Directors decided on a share-based incentive plan for
key personnel in March 2008. The plan includes three earnings periods: calendar
years 2008, 2009 and 2010. The plan had a target group of 37 people in 2008. The
remuneration paid from the plan corresponds to the value of about 720,000
Etteplan Oyj shares at maximum.
The Board of Directors of Etteplan Oyj has in its meeting held on February 11,
2009 made a resolution upon disposal of company-held shares pursuant to the
authorization granted to it by the Annual General Meeting of Shareholders' held
on March 28, 2008. The authorization was renewed in the Annual General Meeting
on March 26, 2009.
In accordance with the decision by the Board of Directors, Etteplan Oyj has, on
April 30, 2009, disposed 41,177 company-held shares as the remuneration for the
2008 earnings period for 36 employees who were part of share-based incentive
plan in 2008. The price per share of the transferred shares was EUR 2.89, which
was the volume weighted average quotation of Etteplan Oyj share on April 30,
2009. Accordingly, the total transaction price of the transferred shares was EUR
119,001.53. In addition, a monetary part and capital transfer tax, totalling at
EUR 180,723.97, were paid out of the plan. The remuneration earned in 2008 was
paid on April 30, 2009.
Estimate of operating risks and uncertainty factors
Etteplan's financial results are exposed to number of strategic, operational and
financial risks. A detailed risk analysis can be found in Etteplan's annual
report 2008.
External risks
During the period under review, economic development on the whole and
unpredictable changes in customers' order books continued to be a significant
risk. The customer related risks will continue to pose an increased risk for
Etteplan's operations.
Internal risks
Internally Etteplan does not foresee changes in its risk position compared to
previously stated.
In addition to the write-down done during the review period, the current
impairment test shows no reason for goodwill write-down.
Annual General Meeting
The Etteplan Oyj Annual General Meeting was held in Lahti on March 26, 2009.
The Board of Directors was confirmed to have six members. Tapio Hakakari,
Heikki Hornborg, Tapani Mönkkönen, Pertti Nupponen, and Matti Virtaala were
re-elected as members of the Board and Robert Ingman was elected as a new member
of the Board. At its organizational meeting of March 26, 2009, the Board elected
Heikki Hornborg as chairman and Tapani Mönkkönen as vice-chairman.
The Annual General Meeting approved the Financial Statements for the financial
year 2008 and discharged the members of the Board of Directors and the CEO from
liability.
The auditor elected was PricewaterhouseCoopers Oy, a firm of authorized public
accountants, with Mika Kaarisalo APA as the auditor in charge. The fees for the
auditor are paid according to invoice.
The Annual General Meeting authorized the Board of Directors to acquire
company's own shares in one or more lots using the company's unrestricted
equity. A maximum of 2,000,000 of the company's own shares can be acquired. The
Board of Directors shall have the right to decide who the shares are acquired
from or, the Board of Directors has the right to decide on a directed
acquisition of own shares.
The authorization is valid for 18 months from the date of the decision of the
Annual General Meeting starting on March 26, 2009 and ending on September 26,
2010. The authorization shall replace the previous authorization.
Dividend
The Annual General Meeting passed a resolution in accordance with the proposal
of the Board of Directors to pay a dividend for the 2008 financial year of EUR
0.08 per share, or a total of EUR 1,573,586.30. The remaining profit was
retained in non-restricted equity. The record date of the payment of dividend
was March 31, 2009. The dividend was paid on April 7, 2009.
The Annual General Meeting authorized the Board of Directors to decide within
their discretion on the payment of a possible additional dividend of EUR 0.07
per share, or a total maximum of EUR 1,376,888.00, should the economic situation
of the company allow it. The authorization is valid until December 31, 2009. The
possible additional dividend based on the decision of the Board of Directors
will be paid to the shareholder, who is registered in the shareholders' registry
maintained by Euroclear Finland Ltd. on the record date of dividend payment. The
Board of Directors will decide on the record date of the dividend payment as
well as the payment day of the dividend.
Shares
The Etteplan Oyj share (ETT1V) is quoted in Nordic NASDAQ OMX's Small Cap market
capitalization group in the Industrials sector.
The company's share capital on September 30, 2009, was EUR 5,000,000.00, and the
number of shares outstanding was 20,179,414. The company has one series of
shares. All shares confer an equal right to dividends and the company's funds.
The company held 468,408 of its own shares on September 30, 2009. In
January-September 2009, the company acquired 10,409 of its own shares. The
company disposed of 41,177 company-held shares in January-September 2009.
Major events after the review period
Etteplan Oyj's Board of Directors has, in its meeting on October 28, 2009,
decided that additional dividend will not be paid in year 2009.
Outlook
Based on the development of January-September 2009, Etteplan expects the
full-year revenue for continuing operations to be approximately EUR 100 million.
The operating profit for the full-year for continuing operations is negative due
to non-recurring costs.
Hollola, October 29, 2009
Etteplan Oyj
Board of Directors
Additional information:
Matti Hyytiäinen, President and CEO, at tel. +358 400 710 968
The information presented herein has not been audited.
APPENDIX:
Financial Statement Summary and Notes
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Key Figures
Notes to the Financial Statement Summary
Releases and other corporate information are available on Etteplan's Web site at
www.etteplan.com.
DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.etteplan.com
This interim report includes forward-looking estimates and assumptions.
Accordingly, outcomes may deviate from these estimates, which are based on the
management's current best knowledge.
Etteplan is a specialist in industrial equipment engineering and technical
product information solutions and services. Our customers are global leaders in
their fields and operate in areas like the automotive, aerospace and defence
industries as well as the electricity generation and power transmission sectors,
and material flow management.
Etteplan has comprehensive competence in electronics and embedded systems
development, automation and electrical design, mechanical design and technical
product information solutions and services.
Etteplan's strength lies in its highly skilled employees who, being located near
to the customers, are able to develop close, long term business relationships.
We implement solutions globally according to customer needs.
In 2008, Etteplan had turnover of EUR 135.3 million. The company currently has
approximately 1,700 employees. Etteplan's shares are listed on NASDAQ OMX
Helsinki Ltd under the ETT1V ticker.
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
--------------------------------------------------------------------------------
| (EUR 1 000) | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2009 | 2008 | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Revenue | 18 556 | 30 300 | 73 915 | 101 540 | 135 345 |
--------------------------------------------------------------------------------
| Other operating income | 219 | 56 | 543 | 170 | 947 |
--------------------------------------------------------------------------------
| Materials and services | -374 | -2 848 | -5 486 | -8 112 | -11 341 |
--------------------------------------------------------------------------------
| Staff costs | -15 899 | -19 948 | -60 367 | -66 407 | -88 632 |
--------------------------------------------------------------------------------
| Other operating expenses | -3 778 | -5 058 | -12 232 | -16 176 | -20 819 |
--------------------------------------------------------------------------------
| Depreciation and | -396 | -432 | -1 227 | -1 285 | -1 751 |
| amortisation | | | | | |
--------------------------------------------------------------------------------
| Operating profit | -1 674 | 2 071 | -4 854 | 9 730 | 13 749 |
--------------------------------------------------------------------------------
| Financial income | 42 | 33 | 219 | 68 | 170 |
--------------------------------------------------------------------------------
| Financial expenses | -124 | -231 | -581 | -650 | -1 137 |
--------------------------------------------------------------------------------
| Share of the result of | -36 | 0 | -86 | 0 | 0 |
| associates | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | -1 791 | 1 873 | -5 301 | 9 148 | 12 782 |
--------------------------------------------------------------------------------
| Income taxes | 568 | -520 | 1 491 | -2 447 | -3 777 |
--------------------------------------------------------------------------------
| Profit for the financial | -1 223 | 1 353 | -3 810 | 6 701 | 9 005 |
| year continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations |
--------------------------------------------------------------------------------
| Profit/loss for the | -8 524 | 51 | -10 485 | 57 | -990 |
| financial year, | | | | | |
| discontinuing operations | | | | | |
--------------------------------------------------------------------------------
| Result for the financial | -9 747 | 1 404 | -14 295 | 6 759 | 8 015 |
| year | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income: |
--------------------------------------------------------------------------------
| Currency translation | 919 | -1 198 | 1 209 | -1 304 | -4 365 |
| differences | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 919 | -1 198 | 1 209 | -1 304 | -4 365 |
| income for the year, net | | | | | |
| of tax | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | -8 828 | 206 | -13 086 | 5 455 | 3 650 |
| income for the year | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit attributable to: |
--------------------------------------------------------------------------------
| Equity holders of the | -9 750 | 1 397 | -14 317 | 6 751 | 7 997 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 3 | 8 | 22 | 8 | 18 |
--------------------------------------------------------------------------------
| | -9 747 | 1 404 | -14 295 | 6 759 | 8 015 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | |
| income attributable to: | |
--------------------------------------------------------------------------------
| Equity holders of the | -8 831 | 198 | -13 108 | 5 448 | 3 632 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 3 | 8 | 22 | 8 | 18 |
--------------------------------------------------------------------------------
| | -8 828 | 206 | -13 086 | 5 455 | 3 650 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | |
| calculated from the | |
| result of parent company | |
| shareholders | |
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Basic earnings per share, | -0,06 | 0,07 | -0,19 | 0,33 | 0,45 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | -0,06 | 0,07 | -0,19 | 0,33 | 0,45 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations |
--------------------------------------------------------------------------------
| Basic earnings per share, | -0,43 | 0,00 | -0,53 | 0,00 | -0,05 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | -0,43 | 0,00 | -0,53 | 0,00 | -0,05 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
--------------------------------------------------------------------------------
| (EUR 1 000) | 30.9.2009 | 30.9.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS |
--------------------------------------------------------------------------------
| Non-current assets |
--------------------------------------------------------------------------------
| Tangible assets | 1 681 | 2 521 | 2 478 |
--------------------------------------------------------------------------------
| Goodwill | 28 106 | 35 657 | 33 207 |
--------------------------------------------------------------------------------
| Other intangible assets | 1 182 | 1 568 | 1 566 |
--------------------------------------------------------------------------------
| Shares in associated companies | 0 | 17 | 17 |
--------------------------------------------------------------------------------
| Investments available for sales | 667 | 412 | 411 |
--------------------------------------------------------------------------------
| Other long-term receivables | 3 | 787 | 551 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1 922 | 33 | 191 |
--------------------------------------------------------------------------------
| Non-current assets, total | 33 562 | 40 996 | 38 421 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets |
--------------------------------------------------------------------------------
| Trade and other receivables | 24 919 | 39 343 | 37 242 |
--------------------------------------------------------------------------------
| Current tax assets | 759 | 833 | 1 338 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2 062 | 3 370 | 1 879 |
--------------------------------------------------------------------------------
| Current assets, total | 27 740 | 43 546 | 40 459 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 61 301 | 84 542 | 78 880 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES |
--------------------------------------------------------------------------------
| Capital attributable to equity | |
| holders | |
--------------------------------------------------------------------------------
| Share capital | 5 000 | 5 000 | 5 000 |
--------------------------------------------------------------------------------
| Share premium account | 6 701 | 6 701 | 6 701 |
--------------------------------------------------------------------------------
| Unrestricted equity fund | 2 593 | 2 474 | 2 474 |
--------------------------------------------------------------------------------
| Own shares | -1 904 | -1 265 | -2 025 |
--------------------------------------------------------------------------------
| Cumulative translation adjustment | -2 569 | -2 127 | -5 188 |
--------------------------------------------------------------------------------
| Retained earnings | 18 203 | 11 962 | 11 962 |
--------------------------------------------------------------------------------
| Profit for the financial year | -14 317 | 6 751 | 7 997 |
--------------------------------------------------------------------------------
| Capital attributable to equity | 13 707 | 29 497 | 26 921 |
| holders, total | | | |
--------------------------------------------------------------------------------
| Minority interest | 107 | 77 | 79 |
--------------------------------------------------------------------------------
| Equity, total | 13 814 | 29 574 | 27 000 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities |
--------------------------------------------------------------------------------
| Deferred tax liability | 933 | 1 543 | 1 537 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | 9 388 | 8 684 | 9 981 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Non-current liabilities, total | 10 321 | 10 227 | 11 517 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities |
--------------------------------------------------------------------------------
| Current interest-bearing | 14 603 | 14 721 | 6 635 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 18 342 | 28 314 | 33 425 |
--------------------------------------------------------------------------------
| Reserves | 3 948 | 0 | 0 |
--------------------------------------------------------------------------------
| Current income tax liabilities | 273 | 1 704 | 303 |
--------------------------------------------------------------------------------
| Current liabilities, total | 37 166 | 44 740 | 40 363 |
--------------------------------------------------------------------------------
| Liabilities, total | 47 487 | 54 968 | 51 880 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 61 301 | 84 542 | 78 880 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CASH FLOWS |
--------------------------------------------------------------------------------
| (EUR 1 000) | 1-9/ | 1-9/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2009 | 2008 | 2008 |
--------------------------------------------------------------------------------
| Operating cash flow |
--------------------------------------------------------------------------------
| Cash receipts from customers | 99 273 | 116 739 | 158 729 |
--------------------------------------------------------------------------------
| Cash receipts from other operating | 446 | 123 | 245 |
| income | | | |
--------------------------------------------------------------------------------
| Operating expenses paid | 104 251 | 110 752 | 143 861 |
--------------------------------------------------------------------------------
| Operating cash flow before financial | -4 532 | 6 110 | 15 113 |
| items and taxes | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest and payment paid for financial | 472 | 710 | 1 131 |
| expenses | | | |
--------------------------------------------------------------------------------
| Interest received | 102 | 103 | 228 |
--------------------------------------------------------------------------------
| Income taxes paid | -66 | 2 880 | 5 055 |
--------------------------------------------------------------------------------
| Operating cash flow ( A ) | -4 837 | 2 624 | 9 155 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investing cash flow |
--------------------------------------------------------------------------------
| Purchase of tangible and intangible | 98 | 1 273 | 1 774 |
| assets | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 840 | 7 582 | 7 582 |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible and | 257 | 37 | 60 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Loan receivables, increase | 993 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from sale of investments | 0 | 31 | 47 |
--------------------------------------------------------------------------------
| Investing cash flow ( B ) | -1 674 | -8 788 | -9 249 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow after investments (A+B) | -6 510 | -6 164 | -94 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing cash flow |
--------------------------------------------------------------------------------
| Purchase of own shares | 44 | 1 816 | 2 523 |
--------------------------------------------------------------------------------
| Short-term loans, increase | 8 009 | 12 125 | 3 437 |
--------------------------------------------------------------------------------
| Long-term loans, increase | 2 492 | 22 | 2 544 |
--------------------------------------------------------------------------------
| Long-term loans, decrease | 2 266 | 3 681 | 4 007 |
--------------------------------------------------------------------------------
| Dividend paid and other profit | 1 574 | 4 225 | 4 225 |
| distribution | | | |
--------------------------------------------------------------------------------
| Financing cash flow ( C ) | 6 618 | 2 425 | -4 774 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Variation in cash (A + B + C) |
--------------------------------------------------------------------------------
| increase ( + ) / decrease ( - ) | 107 | -3 740 | -4 868 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets in the beginning of the period | 1 879 | 7 243 | 7 243 |
--------------------------------------------------------------------------------
| Exchange gains or losses on cash and | 76 | -133 | -496 |
| bank equivalents | | | |
--------------------------------------------------------------------------------
| Assets at the end of the period | 2 062 | 3 370 | 1 879 |
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(EUR 1 000)
Legends for table columns
A) Share Capital
B) Share Premium Account
C) Unrestricted Equity Fund
D) Own shares
E) Cumulative Translation Adjustment
F) Retained Earnings
G) Total
H) Minority Interest
I) Equity total
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 601 | -962 | -823 | 16 187 | 28 704 |
| 1.1.2008 | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4 225 | -4 225 |
--------------------------------------------------------------------------------
| Purchase | | | | -2 523 | | | -2 523 |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Disposal | | | -127 | 1 401 | | | 1 274 |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | | 59 | | | 59 |
| be issued | | | | | | | |
--------------------------------------------------------------------------------
| Changes in | | | | | | | 0 |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | | | | | -4 365 | 7 997 | 3 632 |
| ive income | | | | | | | |
| for the | | | | | | | |
| financial | | | | | | | |
| year | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 474 | -2 025 | -5 188 | 19 959 | 26 921 |
| 31.12.2008 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | G | H | I | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 28 704 | 597 | 29 301 | |
| 1.1.2008 | | | | |
--------------------------------------------------------------------------------
| Dividends | -4 225 | | -4 225 | |
--------------------------------------------------------------------------------
| Purchase | -2 523 | | -2 523 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Disposal | 1 274 | | 1 274 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Shares to | 59 | | 59 | |
| be issued | | | | |
--------------------------------------------------------------------------------
| Changes in | 0 | -536 | -536 | |
| ownership | | | | |
--------------------------------------------------------------------------------
| Comprehens | 3 632 | 18 | 3 650 | |
| ive income | | | | |
| for the | | | | |
| financial | | | | |
| year | | | | |
--------------------------------------------------------------------------------
| Equity | 26 921 | 79 | 27 000 | |
| 31.12.2008 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 474 | -2 025 | -5 188 | 19 959 | 26 921 |
| 1.1.2009 | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -1 574 | -1 574 |
--------------------------------------------------------------------------------
| Purchase | | | | -44 | | | -44 |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | 119 | 165 | | -183 | 101 |
| be issued | | | | | | | |
--------------------------------------------------------------------------------
| Changes in | | | | | 1 410 | | 1 410 |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | | | | | 1 209 | -14 317 | -13 108 |
| ive income | | | | | | | |
| for the | | | | | | | |
| financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 593 | -1 904 | -2 569 | 3 886 | 13 707 |
| 30.9.2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | G | H | I | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 26 921 | 79 | 27 000 | |
| 1.1.2009 | | | | |
--------------------------------------------------------------------------------
| Dividends | -1 574 | | -1 574 | |
--------------------------------------------------------------------------------
| Purchase | -44 | | -44 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Shares to | 101 | | 101 | |
| be issued | | | | |
--------------------------------------------------------------------------------
| Changes in | 1 410 | 5 | 1 415 | |
| ownership | | | | |
--------------------------------------------------------------------------------
| Comprehens | -13 | 22 | -13 | |
| ive income | 108 | | 086 | |
| for the | | | | |
| financial | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Equity | 13 707 | 107 | 13 814 | |
| 30.9.2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 601 | -962 | -823 | 16 187 | 28 704 |
| 1.1.2008 | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4 225 | -4 225 |
--------------------------------------------------------------------------------
| Purchase | | | | -1 816 | | | -1 816 |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Disposal | | | -127 | 1 401 | | | 1 274 |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | | 112 | | | 112 |
| be issued | | | | | | | |
--------------------------------------------------------------------------------
| Changes in | | | | | | | 0 |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | | | | | -1 304 | 6 751 | 5 448 |
| ive income | | | | | | | |
| for the | | | | | | | |
| financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 474 | -1 265 | -2 127 | 18 713 | 29 497 |
| 30.9.2008 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | G | H | I | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 28 704 | 597 | 29 301 | |
| 1.1.2008 | | | | |
--------------------------------------------------------------------------------
| Dividends | -4 225 | | -4 225 | |
--------------------------------------------------------------------------------
| Purchase | -1 816 | | -1 816 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Disposal | 1 274 | | 1 274 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Shares to | 112 | | 112 | |
| be issued | | | | |
--------------------------------------------------------------------------------
| Changes in | 0 | -527 | -527 | |
| ownership | | | | |
--------------------------------------------------------------------------------
| Comprehens | 5 448 | 8 | 5 455 | |
| ive income | | | | |
| for the | | | | |
| financial | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Equity | 29 497 | 77 | 29 574 | |
| 30.9.2008 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 1-9/ | 1-9/ | 1-12/ | Change to |
--------------------------------------------------------------------------------
| (EUR 1 000) | 2009 | 2008 | 2008 | prev.year |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 73 915 | 101 540 | 135 345 | -27,2 % |
--------------------------------------------------------------------------------
| Operating profit | -4 854 | 9 730 | 13 749 | -149,9 % |
--------------------------------------------------------------------------------
| Operating profit, % | -6,6 | 9,6 | 10,2 | |
--------------------------------------------------------------------------------
| Profit before taxes | -5 301 | 9 148 | 12 782 | -157,9 % |
--------------------------------------------------------------------------------
| Profit before taxes, % | -7,2 | 9,0 | 9,4 | |
--------------------------------------------------------------------------------
| Return on equity, % | -24,9 | 30,4 | 32,0 | |
--------------------------------------------------------------------------------
| Return on investment, % *) | -15,5 | 26,9 | 31,7 | |
--------------------------------------------------------------------------------
| Equity ratio % | 22,6 | 35,2 | 34,2 | |
--------------------------------------------------------------------------------
| Gross interest-bearing debt | 23 991 | 23 406 | 16 615 | 2,5 % |
--------------------------------------------------------------------------------
| Net gearing, % | 158,7 | 67,7 | 54,6 | |
--------------------------------------------------------------------------------
| Balance sheet, total | 61 301 | 84 542 | 78 880 | -27,5 % |
--------------------------------------------------------------------------------
| Gross investments | 1 168 | 10 952 | 12 082 | -89,3 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0,19 | 0,33 | 0,45 | -158,2 % |
--------------------------------------------------------------------------------
| Diluted earnings per share, | -0,19 | 0,33 | 0,45 | -158,2 % |
| EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 0,70 | 1,48 | 1,37 | -52,9 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, average | 1 698 | 1 761 | 1 779 | -3,6 % |
--------------------------------------------------------------------------------
| Personnel at end of the | 1 640 | 1 780 | 1 764 | -7,9 % |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Return on investment has been calculated from result before taxes |
--------------------------------------------------------------------------------
NOTES TO THE FINANCIAL STATEMENT SUMMARY
General
The parent company of Etteplan Group is Etteplan Oyj (the Company), a Finnish
public limited company established under Finnish law. The Company is domiciled
in Hollola. The Company's shares are quoted on the exchange of NASDAQ OMX
Helsinki Ltd.
Etteplan Oyj and its subsidiaries provide high-quality industrial technology
design services. The Group's main market area is Europe. For our core customers,
Etteplan's services extend worldwide.
The Etteplan Oyj Board of Directors approved the interim report for publication
at its meeting of October 28, 2009.
Basis for preparation
The interim report has been prepared in accordance with IAS 34 (Interim
Financial Reporting) and the preparation and accounting policies presented in
the 2008 annual financial statements, but not all requirements of the IAS 34
standard for interim financial reporting have been followed in the accounting.
Revised IAS 1, Presentation of Financial Statements: Amendments have been made
to the presentation of the income statement and statement of changes in equity.
Monetary figures in the interim report are presented in thousands of euros. All
figures in the tables have been rounded up or down, due to which the sums of
figures may deviate from the sum totals presented.
In interim report the accounting principles used were the same as for the 2008
annual financial statements. The annual financial statements are available at
http://etteplan.smartpage.fi/en/annualreport08/, and the accounting policy is
detailed on pages 28-33 of the annual report 2008.
Income taxes
The taxes listed in the consolidated statement of comprehensive income have been
calculated with the tax rate appropriate for the projected full-year result. The
estimated average effective tax rate for the year has been set separately for
each relevant country. The effective tax rate used in the interim report is 28.1
%.
Risks
Etteplan´s financial results are exposed to number of strategic, operational and
financial risks.
Etteplan Group's most significant goodwill are related to the Swedish
operations. In addition to the write-down done during the review period, the
current impairment test shows no reason for goodwill write-down.
A detailed risk analysis can be found in Etteplan´s Annual report 2008.
