ETTEPLAN OYJ INTERIM REPORT Q1: DEMAND RECOVERED SLOWLY
Stock exchange release – Published: 06.05.2010 9:30:00
ETTEPLAN Q1: DEMAND RECOVERED SLOWLY
Review period January-March 2010
- The Group's revenue for continuing operations was EUR 24.9 million (1-3/2009:
EUR 29.5 million).
- Operating profit for continuing operations was EUR 1.1 million (EUR 1.2
million).
- Profit for the period for continuing operations was EUR 0.7 million
(EUR 0.8 million).
- Profit for the period for discontinuing operations was EUR 0.0 million (EUR -
0.7 million).
- Operating cash flow was EUR -2.7 million (EUR -6.6 million).
- Earnings per share for continuing operations were EUR 0.03 (EUR 0.04).
- Company's outlook for year 2010 remains unchanged.
Key figures* (EUR 1 000)
1-3/2010 1-3/2009 1-12/2009
Revenue 24,853 29,510 98,700
Operating profit 1,125 1,183 -3,587
Operating profit, % 4.5 4.0 -3.6
Profit for the period 692 766 -3,287
Profit for the period, % 2.8 2.6 -3.3
Equity ratio, % 39.8 32.1 38.5
Net gearing, % 31.3 84.1 20.8
Total assets 61,492 79,588 61,704
*) continuing operations
Matti Hyytiäinen, President and CEO of Etteplan Oyj, comments on the interim
report:
“Etteplan commenced year 2010 with a new organisation structure according to
which operations have been organised to three business areas: Expertise
services, Operational services and Enterprise solutions that concentrates to
chosen key customers. In the new organisation the emphasis is on effective
organizing of sales and at the same time the sales organisation was
strengthened.
A slight recovery was visible in the demand for Etteplan's services although
orders received from our key customers developed unevenly. Improvement of
productivity is increasingly important to our customers and, for this reason the
reception of our new service solutions has been positive in the market. Due to
our new sales organisation and new service solutions the amount of outstanding
quotations increased.
Operation adjustments done in year 2009 affected positively our result for the
first quarter. Operating profit for the review period was satisfactory when
taking into consideration the low amount of demanding product development
projects especially among aerospace and defence equipment clientele.”
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 2009 annual financial statements, but not all requirements of the IAS 34
standard for interim financial reporting have been followed in the accounting.
Business review for January-March 2010
Demand for design services developed unevenly between different countries and
customers industries during the first quarter of the year. In Sweden, demand for
design services increased during the first quarter of the year. In Finland, the
recovery of demand was slow as the commencement of planned projects was further
shifted in the period under review. Compared to the last quarter of year 2009,
tender activity has picked up also in Finland.
In energy and power transmission industry and among medical technology equipment
manufacturers demand remained on a good level in the review period. Demand
developed favourably in special competence requiring testing and analysis
services for car industry customers'. Demand for design services among mining
industry equipment manufacturers improved considerably in the review period.
Forest industry equipment manufacturers' demand for design services continued to
be on last year's low level. In aerospace and defence equipment industry, there
was significant fluctuation in the demand for design services. On average,
demand for design services remained on low level.
Etteplan's customers have continued their investments to transfer business and
production to China. During the review period, this was visible among others as
an increase in commencement of localization and technology transfer projects in
company's units in China.
Etteplan signed new framework agreements with medical technology equipment
manufacturers and Sweden's Defence Materiel Administration (FMV) in the review
period.
Number of temporary laid off employees was on the same level as in the last
quarter of year 2009 which was approximately 200 employees in Finland. No new
personnel reductions were implemented in Finland and Sweden during the review
period.
Revenue
Etteplan's revenue for continuing operations in the first quarter of the year
decreased and amounted to EUR 24.9 million (1-3/2009: EUR 29.5 million).
Result
The operating profit for continuing operations remained on same level with the
comparison period and was EUR 1.1 million (1-3/2009: EUR 1.2 million).
Profit for the period for continuing operations before taxes was EUR 1.0 million
(1-3/2009: EUR 1.0 million). Taxes amounted to EUR 0.3 million (EUR 0.2
million). The income tax calculated on profit before taxes in the consolidated
income statement was 29.7% (21.8%).
Profit for the period for continuing operations remained on the same level with
comparison period and was EUR 0.7 million (1-3/2009: EUR 0.8 million). Earnings
per share for continuing operations were EUR 0.03 (EUR 0.04). Equity per share
was EUR 1.23 (EUR 1.29). The return on investment improved and was 13.3%
(10.7%).
Profit for the period for discontinuing operations was EUR 0.0 million
(1-3/2009: EUR -0.7 million).
Result for the review period was EUR 0.7 million (1-3/2009: EUR 0.1 million).
Financial position and cash flow
Total assets on March 31, 2010, were EUR 61.5 million (December 31, 2009: EUR
61.7 million). Goodwill on the balance sheet was EUR 32.3 million (December 31,
2009: EUR 31.2 million). The increase in goodwill was due to changes in currency
rates. The Group's cash and cash equivalents stood at EUR 3.8 million (December
31, 2009: EUR 6.7 million). The Group's financial liabilities amounted to EUR
11.5 million (December 31, 2009: EUR 11.6 million) at period end. The equity
ratio was 39.8% (December 31, 2009: 38.5%). The cash flow after investments
improved and was EUR -2.8 million (1-3/2009: EUR -6.6 million). Cash flow
improved, but is still negative due to seasonality in business and tax payments
in the review period.
Capital expenditures
The Group's gross investments came to EUR 0.4 million (1-3/2009: EUR 0.2
million).
Personnel
The number of the Group's personnel averaged 1,509 (1-3/2009: 1,788) during the
review period and was 1,500 (March 31, 2009: 1,760) at period end. Outside
Finland, the Group employed 541 people (March 31, 2009: 704) at the end of the
period.
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, 39
people in 2009 and 33 people in 2010. The remuneration paid from the plan
corresponds to the value of about 720,000 Etteplan Oyj shares at maximum.
Pursuant to the authorization granted to it by the Annual General Meeting of
Shareholders', held on March 26, 2009, the Board of Directors of Etteplan Oyj
has in its meeting, on February 10, 2010, made a resolution that there will be
no disposal of company-held shares for the 2009 earnings period.
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 2009.
External risks
During the period under review, economic development on the whole and
unpredictable changes in customers' business operations continued to be a
significant risk.
Internal risks
Internally Etteplan does not foresee changes in its risk position compared to
previously stated.
Annual General Meeting
The Annual General Meeting of Shareholders of Etteplan Oyj was held on March 24,
2010 at premises of the Company in Vantaa. In accordance with the proposal of
the Board of Directors´ Nomination and Compensation Committee Tapio Hakakari,
Heikki Hornborg, Robert Ingman and Pertti Nupponen were re-elected as members of
the Board of Directors as well as Satu Rautavalta and Teuvo Rintamäki were
elected as new members of the Board of Directors.
The Annual General Meeting approved the Financial Statements for financial year
2009 and discharged members of the Board of Directors and the CEO from
liability.
The auditor elected was PricewaterhouseCoopers Oy, Authorized Public Accounting
Firm with Authorized Public Accountant Mr Mika Kaarisalo as the main responsible
auditor. The fees for the auditor are paid according to invoice by the
principles approved by the Board of Directors.
The Annual General Meeting authorized the Board of Directors to decide to issue
maximum of 4,000,000 shares through issuance of shares, option rights or other
special rights entitling to shares under Chapter 10, Section 1 of the Companies
Act in one or more issues. The authorization includes a right to issue new
shares or assign company's own shares held by the company.
The authorization is effective for a period of five (5) years from the
resolution of the Annual General Meeting, i.e. from March 24, 2010 to March 24,
2015. The authorisation shall replace the previous authorization.
The Annual General Meeting resolved, in accordance with proposal of the Board of
Directors, to grant the Board the authority to acquire the 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 24, 2010 and ending on September 24,
2011. The authorization shall replace the previous authorization.
The Annual General Meeting adopted a resolution to amend the articles of
association's paragraph 9 as follows:
"9 § Invitation to the General Meeting of Shareholders
Invitation to the General Meeting of Shareholders shall be published in the
company's website no earlier than two (2) calendar months and no later than
three (3) weeks prior to the meeting, but no later than nine (9) days before the
record date of the General Meeting. The Board of Directors may also decide to
publish the invitation to the General Meeting of Shareholders in a one Finnish
national newspaper determined by the Board of Directors."
Dividend
The Annual General Meeting passed a resolution, in accordance with the proposal
of the Board of Directors, that a dividend of EUR 0.04 per share be paid from
the financial year 2009. The remaining funds shall be left to the unrestricted
equity. The dividend will be paid to the shareholders registered in the
shareholders' register maintained by Euroclear Finland Ltd (formerly Finnish
Central Securities Depository Ltd) as the record date. The record date of the
payment of dividend was March 29, 2010. The dividend was paid on April 7, 2010.
Shares
The Etteplan Oyj share (ETT1V) is quoted in the Nordic NASDAQ OMX's Small Cap
market capitalization group in the Industrials sector.
The company's share capital on March 31, 2010, 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 a dividend and the company's funds.
The company held 470,634 of its own shares on March 31, 2010. During the period
under review, the company did not acquire nor dispose any company-held shares.
Major events after the review period
Company is renewing its legal structure in Finland and Sweden as of April 1,
2010. In Finland, business operations will be concentrated to Etteplan Design
Center Oy. In Sweden, business operations will be concentrated to four legal
companies. Group administration units continue their operations in the parent
company Etteplan Oyj. The legal structure change will be implemented in phases
during year 2010. In Finland, company's business operations will be organised
according to the new legal structure by July 1, 2010 and in Sweden by the end of
the year 2010. Change in legal structure does not impact the content of
financial reporting in 2010. Legal structure change will have an impact on
parent company's balance sheet. Parent company's balance sheet will be presented
in company's annual report 2010.
In April, Etteplan signed an extensive cooperation contract with Plumettaz S.A.
that makes Etteplan a primary global supplier of engineering services in product
development projects and delivery projects for Plumettaz. In addition, the
contract covers development of Plumettaz's engineering operations and
engineering process management. The first assignments related to cooperation
contract were completed in record time. The first localization project has
already been done in China. Cooperation with Etteplan in delivery projects and
operation development has also commenced in Europe. Etteplan supplies Plumettaz
engineering services to Switzerland and China from Etteplan's units in Finland
and China.
Outlook
The commencement of Etteplan's customers' investment and product development
projects as well as changes in order books reflect quickly to the demand for
technical design and product information services and the development of
Etteplan's revenue.
The revenue in 2010 is estimated to be approximately on the same level as in
year 2009. Adjustments done in year 2009 improve company's profitability and
operating profit is estimated to be positive. The revenue and operating profit
estimates are based on Etteplan's current market outlook. Potential acquisitions
in year 2010 are not included in the estimate.
Financial information in 2010
Etteplan Oyj's interim reports will be published as follows:
Second quarter results, 6 months Thursday August 12, 2010
Third quarter results, 9 months Wednesday November 10, 2010
Hollola, May 6, 2010
Etteplan Oyj
Board of Directors
Additional information:
Matti Hyytiäinen, President and CEO, 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 2009, Etteplan had turnover of EUR 98.7 million. Etteplan's shares are listed
on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
--------------------------------------------------------------------------------
| (EUR 1 000) | 1-3/ | 1-3/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Revenue | 24 853 | 29 510 | 98 700 |
--------------------------------------------------------------------------------
| Other operating income | 77 | 166 | 392 |
--------------------------------------------------------------------------------
| Materials and services | -1 879 | -2 633 | -8 077 |
--------------------------------------------------------------------------------
| Staff costs | -18 229 | -21 063 | -75 851 |
--------------------------------------------------------------------------------
| Other operating expenses | -3 336 | -4 385 | -17 155 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | -361 | -413 | -1 596 |
--------------------------------------------------------------------------------
| Operating profit | 1 125 | 1 183 | -3 587 |
--------------------------------------------------------------------------------
| Financial income | 212 | 201 | 341 |
--------------------------------------------------------------------------------
| Financial expenses | -201 | -255 | -925 |
--------------------------------------------------------------------------------
| Share of the result of | -150 | -149 | -134 |
| associates | | | |
--------------------------------------------------------------------------------
| Profit before taxes | 986 | 980 | -4 304 |
--------------------------------------------------------------------------------
| Income taxes | -293 | -215 | 1 017 |
--------------------------------------------------------------------------------
| Profit for the financial year | 692 | 766 | -3 287 |
| continuing operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations |
--------------------------------------------------------------------------------
| Profit/loss for the financial | -36 | -679 | -11 067 |
| year, discontinuing operations | | | |
--------------------------------------------------------------------------------
| Result for the financial year | 656 | 87 | -14 354 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income |
--------------------------------------------------------------------------------
| Currency translation differences | 1 077 | -55 | 1 245 |
--------------------------------------------------------------------------------
| Other comprehensive income for | 1 077 | -55 | 1 245 |
| the year, net of tax | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for | 1 734 | 31 | -13 109 |
| the year | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit attributable to |
--------------------------------------------------------------------------------
| Equity holders of the company | 647 | 81 | -14 403 |
--------------------------------------------------------------------------------
| Minority interest | 9 | 6 | 49 |
--------------------------------------------------------------------------------
| | 656 | 87 | -14 354 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | |
| attributable to | |
--------------------------------------------------------------------------------
| Equity holders of the company | 1 717 | 25 | -13 164 |
--------------------------------------------------------------------------------
| Minority interest | 17 | 6 | 55 |
--------------------------------------------------------------------------------
| | 1 734 | 31 | -13 109 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share calculated | |
| from the result of parent | |
| company shareholders | |
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0,03 | 0,04 | -0,17 |
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR | 0,03 | 0,04 | -0,17 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0,00 | -0,03 | -0,56 |
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR | 0,00 | -0,03 | -0,56 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
--------------------------------------------------------------------------------
| (EUR 1 000) | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS |
--------------------------------------------------------------------------------
| Non-current assets |
--------------------------------------------------------------------------------
| Tangible assets | 1 476 | 2 311 | 1 458 |
--------------------------------------------------------------------------------
| Goodwill | 32 315 | 33 055 | 31 184 |
--------------------------------------------------------------------------------
| Other intangible assets | 968 | 1 425 | 1 042 |
--------------------------------------------------------------------------------
| Shares in associated companies | 0 | 286 | 0 |
--------------------------------------------------------------------------------
| Investments available for sales | 690 | 411 | 691 |
--------------------------------------------------------------------------------
| Other long-term receivables | 3 | 548 | 3 |
--------------------------------------------------------------------------------
| Deferred tax assets | 820 | 460 | 950 |
--------------------------------------------------------------------------------
| Non-current assets, total | 36 271 | 38 497 | 35 329 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets |
--------------------------------------------------------------------------------
| Trade and other receivables | 20 676 | 36 752 | 18 645 |
--------------------------------------------------------------------------------
| Current tax assets | 702 | 2 088 | 1 079 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 3 843 | 2 251 | 6 650 |
--------------------------------------------------------------------------------
| Current assets, total | 25 221 | 41 091 | 26 375 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 61 492 | 79 588 | 61 704 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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 | 2 586 | 2 474 | 2 590 |
--------------------------------------------------------------------------------
| Own shares | -1 955 | -2 019 | -1 949 |
--------------------------------------------------------------------------------
| Cumulative translation adjustment | -1 464 | -5 243 | -2 534 |
--------------------------------------------------------------------------------
| Other reserves | 10 000 | 0 | 10 000 |
--------------------------------------------------------------------------------
| Retained earnings | 2 788 | 18 385 | 18 148 |
--------------------------------------------------------------------------------
| Profit for the financial year | 647 | 81 | -14 403 |
--------------------------------------------------------------------------------
| Capital attributable to equity | 24 304 | 25 379 | 23 554 |
| holders, total | | | |
--------------------------------------------------------------------------------
| Minority interest | 152 | 85 | 135 |
--------------------------------------------------------------------------------
| Equity, total | 24 456 | 25 464 | 23 689 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities |
--------------------------------------------------------------------------------
| Deferred tax liability | 156 | 1 440 | 150 |
--------------------------------------------------------------------------------
| Financial liabilities | 6 864 | 11 869 | 7 626 |
--------------------------------------------------------------------------------
| Non-current liabilities, total | 7 020 | 13 309 | 7 776 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities |
--------------------------------------------------------------------------------
| Financial liabilities | 4 634 | 11 801 | 3 959 |
--------------------------------------------------------------------------------
| Trade and other payables | 24 557 | 28 103 | 24 401 |
--------------------------------------------------------------------------------
| Reserves | 810 | 0 | 1 435 |
--------------------------------------------------------------------------------
| Current income tax liabilities | 15 | 910 | 445 |
--------------------------------------------------------------------------------
| Current liabilities, total | 30 016 | 40 815 | 30 239 |
--------------------------------------------------------------------------------
| Liabilities, total | 37 036 | 54 123 | 38 016 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 61 492 | 79 588 | 61 704 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CASH FLOWS |
--------------------------------------------------------------------------------
| (EUR 1 000) | 1-3/ | 1-3/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Operating cash flow |
--------------------------------------------------------------------------------
| Cash receipts from customers | 23 600 | 34 667 | 129 302 |
--------------------------------------------------------------------------------
| Operating expenses paid | -26 151 | -40 899 | -126 232 |
--------------------------------------------------------------------------------
| Operating cash flow before financial | -2 551 | -6 232 | 3 070 |
| items and taxes | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest and payment paid for financial | -42 | -167 | -632 |
| expenses | | | |
--------------------------------------------------------------------------------
| Interest received | 4 | 56 | 197 |
--------------------------------------------------------------------------------
| Income taxes paid | -93 | -292 | -557 |
--------------------------------------------------------------------------------
| Operating cash flow ( A ) | -2 683 | -6 635 | 2 078 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investing cash flow |
--------------------------------------------------------------------------------
| Purchase of tangible and intangible | -59 | -24 | -139 |
| assets | | | |
--------------------------------------------------------------------------------
| Disposals of subsidiaries | 0 | 0 | 93 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 0 | 0 | -966 |
--------------------------------------------------------------------------------
| Acquisition of associates | -92 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible and | 25 | 31 | 30 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Loan receivables, increase | 0 | 0 | -977 |
--------------------------------------------------------------------------------
| Proceeds from sale of investments | 1 | 0 | 3 |
--------------------------------------------------------------------------------
| Investing cash flow ( B ) | -125 | 7 | -1 956 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow after investments (A+B) | -2 808 | -6 628 | 122 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing cash flow |
--------------------------------------------------------------------------------
| Purchase of own shares | 0 | -44 | -44 |
--------------------------------------------------------------------------------
| Short-term loans, increase | 650 | 5 168 | 0 |
--------------------------------------------------------------------------------
| Short-term loans, decrease | 0 | 0 | -3 251 |
--------------------------------------------------------------------------------
| Long-term loans, increase | 0 | 2 506 | 2 528 |
--------------------------------------------------------------------------------
| Hybrid loan, increase | 0 | 0 | 10 000 |
--------------------------------------------------------------------------------
| Long-term loans, decrease | -834 | -622 | -3 112 |
--------------------------------------------------------------------------------
| Dividend paid and other profit | 0 | 0 | -1 574 |
| distribution | | | |
--------------------------------------------------------------------------------
| Financing cash flow ( C ) | -184 | 7 009 | 4 547 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Variation in cash (A + B + C) |
--------------------------------------------------------------------------------
| increase ( + ) / decrease ( - ) | -2 992 | 380 | 4 669 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets in the beginning of the period | 6 650 | 1 879 | 1 879 |
--------------------------------------------------------------------------------
| Exchange gains or losses on cash and | 184 | -9 | 102 |
| bank equivalents | | | |
--------------------------------------------------------------------------------
| Assets at the end of the period | 3 843 | 2 251 | 6 650 |
--------------------------------------------------------------------------------
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) Other reserves
G) Retained Earnings
H) Total
I) Minority Interest
J) Equity total
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 474 | -2 025 | -5 188 | 0 | 19 959 |
| 1.1.2009 | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | | -1 574 |
--------------------------------------------------------------------------------
| Purchase | | | | -44 | | | |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | 116 | 120 | | | -179 |
| be issued | | | | | | | |
--------------------------------------------------------------------------------
| Hybrid | | | | | | 10 000 | -59 |
| loan | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | | | |
| translatio | | | | | | | |
| n | | | | | | | |
| difference | | | | | | | |
--------------------------------------------------------------------------------
| Changes in | | | | | 1 410 | | |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | | | | | 1 245 | | -14 403 |
| ive income | | | | | | | |
| for the | | | | | | | |
| financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 590 | -1 949 | -2 534 | 10 000 | 3 745 |
| 31.12.2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | H | I | J | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 26 921 | 79 | 27 000 | |
| 1.1.2009 | | | | |
--------------------------------------------------------------------------------
| Dividends | -1 574 | | -1 574 | |
--------------------------------------------------------------------------------
| Purchase | -44 | | -44 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Shares to | 57 | | 57 | |
| be issued | | | | |
--------------------------------------------------------------------------------
| Hybrid | 9 941 | | 9 941 | |
| loan | | | | |
--------------------------------------------------------------------------------
| Change in | 0 | 6 | 6 | |
| translatio | | | | |
| n | | | | |
| difference | | | | |
--------------------------------------------------------------------------------
| Changes in | 1 410 | | 1 410 | |
| ownership | | | | |
--------------------------------------------------------------------------------
| Comprehens | -13 | 49 | -13 | |
| ive income | 159 | | 109 | |
| for the | | | | |
| financial | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Equity | 23 554 | 135 | 23 689 | |
| 31.12.2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 590 | -1 949 | -2 534 | 10 000 | 3 745 |
| 1.1.2010 | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | | -788 |
--------------------------------------------------------------------------------
| Purchase | | | | -6 | | | |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | -4 | | | | 6 |
| be issued | | | | | | | |
--------------------------------------------------------------------------------
| Hybrid | | | | | | | -174 |
| loan | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | | | | | 1 070 | | 647 |
| ive income | | | | | | | |
| for the | | | | | | | |
| financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 586 | -1 955 | -1 464 | 10 000 | 3 435 |
| 31.3.2010 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | H | I | J | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 23 554 | 135 | 23 689 | |
| 1.1.2010 | | | | |
--------------------------------------------------------------------------------
| Dividends | -788 | | -788 | |
--------------------------------------------------------------------------------
| Purchase | -6 | | -6 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Shares to | 2 | | 2 | |
| be issued | | | | |
--------------------------------------------------------------------------------
| Hybrid | -174 | | -174 | |
| loan | | | | |
--------------------------------------------------------------------------------
| Comprehens | 1 717 | 17 | 1 734 | |
| ive income | | | | |
| for the | | | | |
| financial | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Equity | 24 304 | 152 | 24 456 | |
| 31.3.2010 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 474 | -2 025 | -5 188 | 0 | 19 959 |
| 1.1.2009 | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | | -1 574 |
--------------------------------------------------------------------------------
| Purchase | | | | -44 | | | |
| of own | | | | | | | |
| shares | | | | | | | |
--------------------------------------------------------------------------------
| Shares to | | | | 50 | | | |
| be issued | | | | | | | |
--------------------------------------------------------------------------------
| Comprehens | | | | | -55 | | 81 |
| ive income | | | | | | | |
| for the | | | | | | | |
| financial | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 5 000 | 6 701 | 2 474 | -2 019 | -5 243 | 0 | 18 466 |
| 31.3.2009 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | H | I | J | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 26 921 | 79 | 27 000 | |
| 1.1.2009 | | | | |
--------------------------------------------------------------------------------
| Dividends | -1 574 | | -1 574 | |
--------------------------------------------------------------------------------
| Purchase | -44 | | -44 | |
| of own | | | | |
| shares | | | | |
--------------------------------------------------------------------------------
| Shares to | 50 | | 50 | |
| be issued | | | | |
--------------------------------------------------------------------------------
| Hybrid | | | 0 | |
| loan | | | | |
--------------------------------------------------------------------------------
| Comprehens | 26 | 6 | 32 | |
| ive income | | | | |
| for the | | | | |
| financial | | | | |
| period | | | | |
--------------------------------------------------------------------------------
| Equity | 25 379 | 85 | 25 464 | |
| 31.3.2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 1-3/ | 1-3/ | 1-12/ | Change to |
--------------------------------------------------------------------------------
| (EUR 1 000) | 2010 | 2009 | 2009 | prev.year |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 24 853 | 29 510 | 98 700 | -15,8 % |
--------------------------------------------------------------------------------
| Operating profit | 1 125 | 1 183 | -3 587 | -4,9 % |
--------------------------------------------------------------------------------
| Operating profit, % | 4,5 | 4,0 | -3,6 | |
--------------------------------------------------------------------------------
| Profit before taxes | 986 | 980 | -4 304 | 0,6 % |
--------------------------------------------------------------------------------
| Profit before taxes, % | 4,0 | 3,3 | -4,4 | |
--------------------------------------------------------------------------------
| Return on equity, % | 11,5 | 11,7 | -13,0 | |
--------------------------------------------------------------------------------
| Return on investment, % *) | 13,3 | 10,7 | -8,6 | |
--------------------------------------------------------------------------------
| Equity ratio % | 39,8 | 32,1 | 38,5 | |
--------------------------------------------------------------------------------
| Gross interest-bearing debt | 11 498 | 23 670 | 11 585 | -51,4 % |
--------------------------------------------------------------------------------
| Net gearing, % | 31,3 | 84,1 | 20,8 | |
--------------------------------------------------------------------------------
| Balance sheet, total | 61 492 | 79 588 | 61 704 | -22,7 % |
--------------------------------------------------------------------------------
| Gross investments | 389 | 168 | 4 763 | 131,5 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0,03 | 0,04 | -0,17 | -25,0 % |
--------------------------------------------------------------------------------
| Diluted earnings per share, | 0,03 | 0,04 | -0,17 | -25,0 % |
| EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1,23 | 1,29 | 1,20 | -4,7 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, average | 1 509 | 1 788 | 1 765 | -15,6 % |
--------------------------------------------------------------------------------
| Personnel at end of the | 1 500 | 1 760 | 1 544 | -14,8 % |
| 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.
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 2009, Etteplan had turnover of EUR 98.7 million. Etteplan's shares are listed
on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.
The Etteplan Oyj Board of Directors approved the interim report for publication
at its meeting of May 5, 2010.
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 2009 annual financial statements, but not all requirements of the IAS 34
standard for interim financial reporting have been followed in the accounting.
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 2009
annual financial statements. The annual financial statements are available at
http://etteplan.smartpage.fi/en/annualreport09/ and the accounting policy is
detailed on pages 26-30 of the annual report 2009. Formulas for the key figures
are detailed on page 45 of the annual report 2009.
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
29.7%.
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. The current impairment test shows no reason for goodwill write-down.
A detailed risk analysis can be found in Etteplan´s annual report 2009.
