INTERIM REPORT 1 JANUARY – 30 SEPTEMBER
Stock exchange release – Published: 05.11.2003 9:01:36
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2003
ETTEPLANS TURNOVER UP BY 36 % AND OPERATING PROFIT BY 12 %
- Consolidated turnover: EUR 35,8 million (26,3 million)
- Operating profit: EUR 2,1 million (1,9 million)
- Earnings per share: EUR 0,21 (0,21)
- Personnel: 953 employees (681)
(Figures in brackets are those for the same period in 2002 unless
otherwise stated.)
The Etteplan Groups turnover grew as anticipated during January -
September. Turnover grew both organically as the customers
transferred their design functions to Etteplan as well as through
acquisitions. The operating profit grew, but failed from the
target.
Turnover and result
The continuous low level of demand for capital goods in the world
market burdened profitability especially in the Nordic Countries.
The number of fixed price assignments has further grown which can
be seen in the growth of backlog work from EUR 0,5 million at the
turn of the year to EUR 1,1 million. The income recognition of
these assignments will occur after the work has been completed.
Operating profit was EUR 2,1 million (1,9 million), or 5,9 % of
turnover (7,2 %). Profit for the financial period before extra-
ordinary items and taxes was EUR 2,1 million (1,9 million).
Net profit was EUR 0,9 million (0,9 million). Earnings per share
were EUR 0,21 (0,21). Equity per share was EUR 2,88 (2,81).
The Groups balance sheet structure remained good. The equity
ratio was 58,0 % (65,7 %). The dept-equity ratio was -15,7 %
(-17,5 %) and the return on investment improved and was 18,5 %
(18,2 %).
Business Operations
Etteplan acts as a partner of large and medium-sized inter-
nationally operating industrial companies and it carries out
both entire product development and delivery design projects.
The Groups design services consist of 1) machine technology
and mechatronics design, 2) automation and electrical design as
well as 3) electronics and software design. The customer base
comprises equipment manufacturers and end-users in the
wood-processing industry as well as the lifting and hoisting
equipment, process and electronics industries.
Major events in the third quarter
According to a preliminary agreement signed in May the company
acquired a 40 % share of a Swedish J.A. Produktutveckling AB.
After the transaction Etteplans interest grew to 75 %. At the
same time the total amount of the Groups personnel grew to 938
persons. The transaction was made by using the companys own
stocks acquired from the stock exchange as payment.
A thorough improvement program for profitability was carried out
in the electronics and automation design, which has suffered most
from the poor market situation. The program was focused on the
expansion of clientele, diversifying of services and increasing
of cost flexibility. As a consequence of the program several
significant assignments were received during the report period.
As an example of the received design assignments can be mentioned
the control and monitoring system for traffic on Highway 6
between Koskenkylä and Kouvola in Finland.
In the production lines and process plants -group investments have
been made in offering diversified design services. As an example
of received important orders is designing the removal of two
production lines in a pipe plant from Denmark to Finland.
As an example of marketing efforts made to international
operations, a significant order was received from a German
customer to develop air cargo loading and unloading equipment.
Personnel
The operations and number of personnel of the Etteplan Group have
grown steadily. During the report period the Group employed an
average of 855 employees (636) and at the end of the period the
payroll numbered 953 employees (681). Increases in the number of
staff were due to transferred business activities and were nearly
entirely directed to the carrying out of customer projects.
The Groups personnel at units abroad numbered 215 employees.
Capital expenditures and financing
The Groups total capital expenditures decreased by 54,6 %
compared with the same period a year earlier and totalled
EUR 1,8 million (3,9 million). The largest individual capital
expenditure was the purchase of 40 % share of J.A. Produkt-
utveckling AB. Other investments went for the purchase of
computer software and hardware as well as for the development
of operations.
Etteplans financial position remained strong. Total assets at
30 September 2003 stood at EUR 25,8 million (20,9 million), of
which cash and cash equivalents as well as securities held as
financial fixed assets totalled EUR 3,3 million (3,2 million).
The Groups interest bearing liabilities at the end of the period
totalled EUR 1,1 million (0,8 million). The equity ratio was
58,0 % (65,7 %). Good liquidity was maintained throughout the
report period.
Share capital and treasury shares
The Annual General Meeting held on 26 March 2003 granted the
Board of Directors authorizations to buy back the companys own
shares and to transfer them within the maximum limits permitted
for a limited company. At 30 September 2003 the company held
100 treasury shares, corresponding to 0,002 % of the entire shares
outstanding. During the report period the company has transferred
128 000 of its shares as payment for J.A. Produktutveckling AB
shares.
Near-term outlook
The demand for industrial technology design services is directly
dependent of the demand for investment projects and will improve
immediately as the demand for projects recovers.
The demand for to Etteplan central capital goods is expected to
remain unchanged during the last quarter of the year. Some signs
of improvement of the situation can be seen. The improved order
backlog of clientele among others reflects this. In the current
market situation the company concentrates at the year-end to raise
the profitability. The action plan includes both well-focused
sales measures as well as actions aiming for increasing
flexibility of costs. The profit impact of these actions is
expected to be seen already in the first quarter of next year.
Based on the order backlog the management of the company assumes
that the turnover will grow also during the last quarter. Instead
significant changes in the relative profitability are not expected
at the year-end.
Hollola, 5 September 2003
Etteplan Oyj
Board of Directors
For additional information, contact: CEO Heikki Hornborg,
tel. +358 3 872 9011, GSM +358 400 873 063.
The figures are unaudited.
DISTRIBUTION: Helsinki Exchanges
Principal media
www.etteplan.com
CONSOLIDATED PROFIT AND LOSS ACCOUNT(EUR 1000)
1.1.-30.9.03 1.1.-30.9.02 1.1.-31.12.02
TURNOVER 35 780 26 348 37 011
Variation in work in progress 653 177 196
Other operating income 158 24 66
Materials and services -661 -250 -347
Staff expenses -26 798 -18 639 -26 387
Depreciation and amortisation
according to plan -1 282 -1 268 -1 744
Other operating expenses -5 614 -4 226 -5 852
Share of losses from
participating interests -128 -275 -219
OPERATING PROFIT 2 109 1 890 2 724
" % 5,9 7,2 7,4
Financial income and expenses -14 2 29
PROFIT BEFORE
EXTRAORDINARY ITEMS 2 095 1 893 2 753
Extraordinary items 0 0 0
PROFIT BEFORE APPROPRIATIONS
AND TAXES 2 095 1 893 2 753
Income taxes -857 -722 -1 020
Change in deferred tax liability -1 0 -29
Minority interest -331 -294 -434
NET PROFIT FOR THE PERIOD 906 876 1 270
" % 2,5 3,3 3,4
CONSOLIDATED BALANCE SHEET (EUR 1000)
1.1.-30.9.03 1.1.-30.9.02 1.1.-31.12.02
ASSETS
NON-CURRENT ASSETS
Intangible assets 4 419 2 233 2 343
Tangible assets 3 364 2 948 3 054
Own shares 0 132 139
Other investments 435 2 328 2 381
NON-CURRENT ASSETS, TOTAL 8 218 7 641 7 917
CURRENT ASSETS
Stocks 1 150 515 493
Current receivables 13 071 9 486 7 027
Marketable securities 0 1 496 1 497
Cash and cash equivalent 3 321 1 727 5 663
CURRENT ASSETS, TOTAL 17 541 13 225 14 680
ASSETS, TOTAL 25 759 20 866 22 597
SHAREHOLDERS EQUITY AND LIABILITIES
SHAREHOLDERS EQUITY
Share capital 427 427 427
Share premium account 5 058 5 058 5 058
Reserve for own shares 0 132 139
Retained earnings 5 929 5 573 5 565
Net profit for the period 906 876 1 270
SHAREHOLDERS EQUITY, TOTAL 12 320 12 066 12 460
MINORITY INTERESTS 2 117 1 717 1 857
LIABILITIES
Deferred tax liabilities 189 159 188
Long-term liabilities 895 751 796
Current liabilities 10 238 6 173 7 297
LIABILITIES, TOTAL 11 322 7 083 8 281
SHAREHOLDERS EQUITY AND
LIABILITIES, TOTAL 25 759 20 866 22 597
KEY FIGURES FOR ETTEPLAN GROUP (EUR 1000)
Changes
1.1.-30.9.03 1.1.-30.9.02 1.1.-31.12.02 for prev.
year
Turnover 35 780 26 348 37 011 35,8 %
Operating profit 2 109 1 890 2 724 11,6 %
% of turnover 5,9 7,2 7,4
Profit before extra-
ordinary items 2 095 1 893 2 753 10,7 %
Net profit for
the period 906 876 1 270 3,3 %
Return on investment, % 18,5 18,2 19,7
Return on equity, % 11,5 11,8 12,6
Equity ratio % 58,0 65,7 63,4
Gross interest-bearing
loans 1 052 829 1 006 26,8 %
Dept-equity ratio, % -15,7 -17,5 -43,4
Total balance 25 759 20 866 22 597 23,4 %
Gross investments 1 779 3 921 4 497 -54,6 %
Earnings per share 0,21 0,21 0,30 0,0 %
Equity per share 2,88 2,81 2,90 2,5 %
Personnel at the end
of the period 953 681 723 39,9 %
Personnel, average 855 636 660 34,4 %
CONSOLIDATED CASH FLOW STATEMENT (EUR 1000)
1.1.-30.9.03 1.1.-30.9.02 1.1.-31.12.02
OPERATING CASH FLOW
Cash receipts from customers 31 383 25 141 37 933
Other operating income 158 24 66
Operating expenses paid 31 699 23 490 32 050
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES -157 1 675 5 950
Interest and payment paid for
financial expenses 46 51 129
Interest received 33 53 153
Dividend received 0 0 5
Income taxes paid 857 722 1 020
OPERATING CASH FLOW (A) -1 028 956 4 958
INVESTMENT CASH FLOW
Investment in tangible and
intangible assets 1 840 1 537 2 346
Sales of tangible and
intangible assets 70 0 111
Investments to other investments 0 1 926 1 463
INVESTMENT CASH FLOW (B) -1 770 -3 463 -3 697
FINANCING CASH FLOW
Purchase of own shares 0 57 64
Selling of own shares 139 0 0
Short-term loans, decrease 53 88 0
Long-term loans, increase 99 12 101
Dividends paid and other
profit distribution 1 226 1 365 1 365
FINANCING CASH FLOW (C) -1 041 -1 497 -1 329
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/ DECREASE (-) -3 839 -4 004 -68
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 7 160 7 227 7 227
ASSETS AT THE END
OF THE FINANCIAL PERIOD 3 321 3 223 7 160
