ETTEPLAN OYJ: INTERIM REPORT 1 JANUARY – 30 JUNE 2007
Stock exchange release – Published: 08.08.2007 10:00:00
ETTEPLAN'S REVENUE GROWS BY 31%; OPERATING PROFIT EUR 7.4 MILLION
- Consolidated revenue: EUR 64.0 million (48.8 million)
- Operating profit: EUR 7.4 million (3.0 million)
- Net profit: EUR 5.3 million (2.0 million)
- Earnings per share: EUR 0.53 (0.21)
- Personnel at the
end of the period: 1,809 employees (1,552)
(The figures in parentheses refer to the corresponding review period of the
previous year, unless otherwise indicated).
In the first half of the year, the company continued its strong, profitable
growth and the company's operations achieved the set targets. Organic growth
accounted for 19% of revenue in the review period and the remainder was
attributable to corporate acquisitions. Growth has been significant in both
segments - Product Development and Delivery Design - in the company's main
market area in the Nordic countries. Strong demand by the Swedish vehicle
manufacturing industry in particular kept the capacity utilization rate at a
high level. Also in other countries, good demand for industrial technology
design and information technology together with investments to internal
operational efficiency measures led to a high utilization rate and a significant
improvement in profitability across the Group.
Second-quarter revenue and result
Etteplan's revenue in the second quarter of the year increased by 20.3% compared
with the corresponding period in the previous year and amounted to EUR 31.8
million (EUR 26.4 million). Second-quarter operating profit totalled EUR 3.1
million (EUR 1.5 million), representing 9.8% of revenue (5.7%).
Revenue and result for the review period
Etteplan's revenue showed a noticeable increase on the previous year. Revenue
rose by 31.1% to EUR 64.0 million (EUR 48.8 million).
Operating profit during the review period rose by 143.9% and amounted to EUR 7.4
million (EUR 3.0 million), representing 11.5% of revenue (6.2%). The divestment
of NATLABS Oy improved operating profit for the review period, with the booking
of capital gains of EUR 0.84 million in the first quarter.
Profit for the period before taxes was EUR 7.3 million (EUR 3.0 million). Taxes
amounted to EUR 1.7 million (EUR 0.8 million). Taxes have been periodized in
line with the result for the review period. The income tax rate calculated on
profit before taxes in the consolidated income statement was 23.9% (27.2%).
Tax-exempt capital gains from the divestment of NATLABS Oy shares lowered the
tax rate for the period.
Net profit for the period amounted to EUR 5.3 million (EUR 2.0 million).
Earnings per share came to EUR 0.53 (EUR 0.21). Equity per share grew by 32.6%
to EUR 2.74 (EUR 2.07). Return on investment showed a clear improvement on the
comparison period at 40.9% (22.2%).
Business operations
Etteplan operates as a partner to large and medium-sized internationally
operating industrial companies, providing industrial technology design services.
The Group's design services are divided into two segments: Delivery Design and
Product Development.
The Delivery Design segment provides wide-ranging design services as well as
associated commissioning, site supervision and training services for the design
of production facilities and the machinery and equipment in them.
The Product Development segment provides multi-sector design and implementation
services for product development as well as services for product information
content production. The services are based on long-term partnerships with
customers and are aimed to ensure the customer's competitiveness in the future.
The company's customer base comprises equipment manufacturers and end-users in
the wood-processing industry as well as the process, automotive, lifting and
hoisting equipment and electronics industries.
Major events in the second quarter
Etteplan received numerous major orders and assignments from its key customers
during the review period, one notable example being the E18 Road Traffic
Telematics project. In Sweden, the company received several substantial product
development assignments from the vehicle industry.
Personnel
The Etteplan Group's operations and number of personnel have grown steadily. The
Group's average payroll during the review period was 1,744 employees (1,436) and
the number of staff at the end of the period was 1,809 employees (1,552). The
number of employees rose due to active recruitment and the business operations
that transferred to the Group; these employees are almost solely allocated to
the implementation of customer projects. The Group employed 790 people abroad
(660).
Capital expenditures
The Group's total capital expenditures amounted to EUR 5.0 million (11.0
million). The largest single investments were the acquisition of the entire
share capital of LCA Engineering Oy and of the minority shares outstanding in
ProTang AB. Other capital expenditures were earmarked for the implementation and
development of business operations.
Risks and risk management
Risk management within the Group encompasses corporate governance within the
Group as well as the management of operational and financial risks. The Group's
corporate governance guidelines and quality system are the means used for the
supervision of administrative risk within the Group. The risks are itemized in
the Notes to the 2006 financial statements.
Unpredictable changes in customers order backlog pose the greatest risk to the
company's business. Owing to their nature, the company's business operations
involve no significant credit, environmental or foreign currency risks.
Financial position
Total assets at 30 June 2007 increased by 17.6% to EUR 63.8 million (EUR 54.3
million). Balance sheet goodwill rose to EUR 21.7 million (EUR 15.6 million).
The Group's cash and cash equivalents totalled EUR 7.4 million (EUR 6.2
million). The Group's interest-bearing liabilities stood at EUR 10.3 million
(EUR 12.1 million) at the end of the period. The equity ratio rose to 44.3%
(39.5%).
Shares
The Etteplan Oyj share (ETTIV) is quoted in the Nordic Exchange's Small Cap
market capitalization group in the Industrials sector.
The company's share capital at 30 June 2007 was EUR 2,522,426.70 and the number
of shares outstanding was 10,089,707. The company has one series of shares and
the accounting countervalue of a share is EUR 0.25. All shares confer an equal
right to a dividend and the company's funds.
During the review period, the company increased its share capital by 120,430
shares and EUR 30,107.50 by means of a directed share issue. The new shares were
used as payment to acquire the minority shares outstanding in ProTang AB. The
increase in share capital was published in a stock exchange release dated 15
June 2007. The new shares became subject to public trading together with the old
shares on 18 June 2007.
As a consequence of 120,430 new shares issued in the directed share issue by
Etteplan Oyj, Ingman Finance Oy Ab's share capital in Etteplan Oyj's share
capital and voting rights has on 18 June 2007 gone below 10% but has through a
trade completed on 27 June 2007 reverted to 10 % level. The announcement of
change in ownership has been published on 27.6.2007.
The company did not hold any of its own shares on 30 June 2007 and it did not
buy back any of its own shares during the review period
The authorizations to increase the share capital, to take convertible loans
and/or issue option rights, and buy back and transfer own shares (granted to the
Board of Directors at the Annual General Meeting held on 29 March 2007) that
were not exercised during the review period remain valid. The authorizations
exercised during the review period are detailed above. The authorizations
granted to the Board of Directors are detailed in their entirety in a stock
exchange release dated 29 March 2007.
Major events after the review period
In July, Etteplan Oyj agreed upon the acquisition of a majority stake in the
Swedish Gesab AB. Established in 1985, the company primarily provides product
development and production technology services for the automotive, aerospace and
household appliance industries. The acquisition supports Etteplan's growth
strategy in Scandinavia and it further reinforces the Group's competence and
market position, particularly as a supplier to the automotive and aerospace
industries in the Nordic countries. The transaction brings the number of
employees in Sweden close to 900 people and personnel throughout the Group to
more than 2,000.
Outlook for the near future
The company's operations depend on the trend in the order backlog from customer
companies. Demand for industrial technology design services is forecast to
further remain good in the key market areas. Full-year profitability is
predicted to be noticeably up on the previous year, despite the uncertainties
associated with cost structure brought by high demand. The company's revenue is
expected to grow strongly both organically and through acquisitions.
The information presented herein has not been audited.
Hollola, 8 August 2007
Etteplan Oyj
Board of Directors
For additional information, please contact: Heikki Hornborg, CEO, tel.
+ 358 400 873 063 or Pia Björk, CFO, Vice President, Corporate Planning,
tel. + 358 400 241 815
APPENDICES
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Key figures
Notes to the Interim Report
Etteplan Oyj's Q3 interim report for 2007 will be published on 26 October 2007.
Releases and other corporate information are available on Etteplan's website at
www.etteplan.fi.
DISTRIBUTION
Helsinki Stock Exchange
Principal media
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| CONSOLIDATED INCOME | | | | | |
| STATEMENT | | | | | |
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| (EUR 1 000) | 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 31 794 | 26 422 | 64 026 | 48 838 | 101 698 |
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| Other operating | 66 | 22 | 972 | 68 | 219 |
| income | | | | | |
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| Materials and | -2 245 | -2 141 | -3 971 | -3 181 | -6 728 |
| services | | | | | |
--------------------------------------------------------------------------------
| Staff costs | -21 | -18 838 | -43 869 | -34 853 | -71 111 |
| | 643 | | | | |
--------------------------------------------------------------------------------
| Other operating | -4 370 | -3 454 | -8 794 | -6 847 | -15 213 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -480 | -496 | -976 | -998 | -2 042 |
| amortisation | | | | | |
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| Operating profit | 3 123 | 1 517 | 7 388 | 3 029 | 6 823 |
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| Financial income | 24 | 69 | 58 | 77 | 172 |
--------------------------------------------------------------------------------
| Financial expenses | -93 | -66 | -187 | -96 | -299 |
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| Profit before taxes | 3 053 | 1 519 | 7 258 | 3 009 | 6 695 |
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| Income taxes | -842 | -371 | -1 734 | -817 | -2 096 |
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| Profit for the | 2 211 | 1 148 | 5 524 | 2 192 | 4 599 |
| financial period | | | | | |
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| Net profit for the | | | | | |
| financial | | | | | |
--------------------------------------------------------------------------------
| period attributable | | | | | |
| to | | | | | |
--------------------------------------------------------------------------------
| minority interest | -61 | -36 | -251 | -194 | -427 |
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| Net profit for the | | | | | |
| financial | | | | | |
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| period attributable | | | | | |
| to equity | | | | | |
--------------------------------------------------------------------------------
| holders of the | 2 150 | 1 111 | 5 273 | 1 998 | 4 172 |
| Company | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per | | | 0,53 | 0,21 | 0,43 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings | | | | | |
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| per share, EUR | | | 0,53 | 0,21 | 0,43 |
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| CONSOLIDATED BALANCE | | | | |
| SHEET | | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | 30.6.2007 | 30.6.2006 | 31.12.2006 | |
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| ASSETS | | | | |
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| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 2 111 | 3 152 | 2 759 | |
| equipment | | | | |
--------------------------------------------------------------------------------
| Goodwill | 21 712 | 15 588 | 18 580 | |
--------------------------------------------------------------------------------
| Other intangible | 2 295 | 5 013 | 2 124 | |
| assets | | | | |
--------------------------------------------------------------------------------
| Investments | 420 | 465 | 425 | |
| available for sales | | | | |
--------------------------------------------------------------------------------
| Other long-term | 831 | 0 | 852 | |
| receivables | | | | |
--------------------------------------------------------------------------------
| Deferred tax assets | 90 | 96 | 88 | |
--------------------------------------------------------------------------------
| Non-current assets, | 27 459 | 24 314 | 24 829 | |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Trade and other | 28 877 | 23 451 | 24 191 | |
| receivables | | | | |
--------------------------------------------------------------------------------
| Current tax assets | 44 | 358 | 28 | |
--------------------------------------------------------------------------------
| Cash and cash | 7 446 | 6 152 | 6 174 | |
| equivalents | | | | |
--------------------------------------------------------------------------------
| Current assets, | 36 366 | 29 961 | 30 393 | |
| total | | | | |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 63 825 | 54 275 | 55 222 | |
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| EQUITY AND | | | | |
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Capital attributable | | | | |
| to | | | | |
--------------------------------------------------------------------------------
| equity holders | | | | |
--------------------------------------------------------------------------------
| Share capital | 2 522 | 2 443 | 2 443 | |
--------------------------------------------------------------------------------
| Share premium | 9 179 | 9 179 | 9 179 | |
| account | | | | |
--------------------------------------------------------------------------------
| Unrestricted equity | 2 601 | 0 | 0 | |
| fund | | | | |
--------------------------------------------------------------------------------
| Cumulative | | | | |
| translation | | | | |
--------------------------------------------------------------------------------
| adjustment | -221 | -138 | 43 | |
--------------------------------------------------------------------------------
| Retained earnings | 8 339 | 6 759 | 6 759 | |
--------------------------------------------------------------------------------
| Net profit for | | | | |
--------------------------------------------------------------------------------
| the financial period | 5 273 | 1 998 | 4 172 | |
--------------------------------------------------------------------------------
| Capital attributable | | | | |
| to | | | | |
--------------------------------------------------------------------------------
| equity holders, | 27 693 | 20 241 | 22 596 | |
| total | | | | |
--------------------------------------------------------------------------------
| Minority interest | 498 | 1 086 | 872 | |
--------------------------------------------------------------------------------
| Equity, total | 28 190 | 21 327 | 23 468 | |
--------------------------------------------------------------------------------
| Non-current | | | | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 957 | 893 | 1 046 | |
| liability | | | | |
--------------------------------------------------------------------------------
| Non-current | | | | |
| interest-bearing | | | | |
--------------------------------------------------------------------------------
| liabilities | 8 260 | 9 166 | 8 967 | |
--------------------------------------------------------------------------------
| Non-current | 9 217 | 10 059 | 10 013 | |
| liabilities, total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Current | | | | |
| interest-bearing | | | | |
--------------------------------------------------------------------------------
| liabilities | 2 051 | 2 897 | 1 837 | |
--------------------------------------------------------------------------------
| Trade and other | 23 032 | 19 795 | 19 522 | |
| payables | | | | |
--------------------------------------------------------------------------------
| Current income tax | 1 335 | 197 | 382 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Current liabilities, | 26 418 | 22 889 | 21 741 | |
| total | | | | |
--------------------------------------------------------------------------------
| Liabilities, total | 35 635 | 32 947 | 31 754 | |
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| TOTAL EQUITY AND | 63 825 | 54 275 | 55 222 | |
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
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| CONSOLIDATED CASH FLOW STATEMENT | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | 1-6/2007 | 1-6/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating cash flow | | | |
--------------------------------------------------------------------------------
| Cash receipts from customers | 60 153 | 48 431 | 99 290 |
--------------------------------------------------------------------------------
| Cash receipts from other operating | 132 | 56 | 194 |
| income | | | |
--------------------------------------------------------------------------------
| Operating expenses paid | 54 372 | 44 190 | 90 851 |
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| Operating cash flow before financial | | | |
--------------------------------------------------------------------------------
| items and taxes | 5 913 | 4 297 | 8 633 |
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--------------------------------------------------------------------------------
| Interest and payment paid for | | | |
--------------------------------------------------------------------------------
| financial expenses | 177 | 55 | 249 |
--------------------------------------------------------------------------------
| Interest received | 58 | 77 | 172 |
--------------------------------------------------------------------------------
| Income taxes paid | 841 | 1 127 | 1 782 |
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| Operating cash flow ( A ) | 4 953 | 3 192 | 6 773 |
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--------------------------------------------------------------------------------
| Investment cash flow | | | |
--------------------------------------------------------------------------------
| Purchase of tangible and intangible | 616 | 1 495 | 1 612 |
| assets | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 1 015 | 8 236 | 9 952 |
--------------------------------------------------------------------------------
| Disposal of subsidiaries | 633 | 0 | 0 |
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| Proceeds from sale of tangible and | | | |
--------------------------------------------------------------------------------
| intangible assets | 42 | 140 | 212 |
--------------------------------------------------------------------------------
| Purchase of other investment | 0 | 0 | 476 |
--------------------------------------------------------------------------------
| Proceeds from repayments of loans | 540 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from sale of investments | 5 | 475 | 464 |
--------------------------------------------------------------------------------
| Investment cash flow ( B ) | -411 | -9 117 | -11 363 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing cash flow | | | |
--------------------------------------------------------------------------------
| Short-term loans, increase | 0 | 0 | 1 332 |
--------------------------------------------------------------------------------
| Short-term loans, decrease | 0 | 0 | 1 332 |
--------------------------------------------------------------------------------
| Long-term loans, increase | 453 | 9 549 | 11 335 |
--------------------------------------------------------------------------------
| Long-term loans, decrease | 893 | 0 | 3 108 |
--------------------------------------------------------------------------------
| Dividend paid and other profit | 2 776 | 1 923 | 1 923 |
| distribution | | | |
--------------------------------------------------------------------------------
| Financing cash flow ( C ) | -3 217 | 7 626 | 6 305 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Variation in working capital (A + B + C)
--------------------------------------------------------------------------------
| increase ( + ) / decrease ( - ) | 1 326 | 1 701 | 1 715 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets in the beginning of the period | 6 174 | 4 445 | 4 445 |
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| Exchange gains or losses on cash and | | | |
--------------------------------------------------------------------------------
| bank equivalents | 54 | -5 | -14 |
--------------------------------------------------------------------------------
| Assets at the end of the period | 7 446 | 6 152 | 6 174 |
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| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | | | |
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| (1 000 EUR) | | | | | |
--------------------------------------------------------------------------------
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| Legends for table columns | | | | | |
--------------------------------------------------------------------------------
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| A) Share Capital | | | | | | |
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| B) Share Premium Account | | | | | |
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| C) Unrestricted Equity Fund | | | | | |
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| D) Cumulative Translation | | | | |
| Adjustment | | | | |
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| E) Retained | | | | | | |
| Earnings | | | | | | |
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| F) Minority | | | | | | |
| Interest | | | | | | |
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| G) Total | | | | | | | |
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--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
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| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2006 | 2 | 8 269 | 0 | -251 | 8 682 | 1 360 | 20 |
| | 403 | | | | | | 463 |
--------------------------------------------------------------------------------
| Dividends | | | | | -1 923 | -184 | -2 |
| | | | | | | | 107 |
--------------------------------------------------------------------------------
| Share | 40 | 910 | | | | | 950 |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Changes | | | | | | | |
--------------------------------------------------------------------------------
| in | | | | | | -731 | -731 |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | | |
| for | | | | | | | |
--------------------------------------------------------------------------------
| the | | | | | | | |
| financial | | | | | | | |
--------------------------------------------------------------------------------
| period | | | | | 4 172 | 427 | 4 599 |
--------------------------------------------------------------------------------
| Translatio | | | | | | | |
| n | | | | | | | |
--------------------------------------------------------------------------------
| adjustment | | | | 294 | | | 294 |
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 31.12.2006 | 2 | 9 179 | 0 | 43 | 10 931 | 872 | 23 |
| | 443 | | | | | | 468 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2007 | 2 | 9 179 | 0 | 43 | 10 931 | 872 | 23 |
| | 443 | | | | | | 468 |
--------------------------------------------------------------------------------
| Dividends | | | | | -2 592 | -201 | -2 |
| | | | | | | | 793 |
--------------------------------------------------------------------------------
| Share | 79 | | 2 | | | | 2 680 |
| issue | | | 601 | | | | |
--------------------------------------------------------------------------------
| Changes | | | | | | | |
--------------------------------------------------------------------------------
| in | | | | | | -424 | -424 |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | | |
| for | | | | | | | |
--------------------------------------------------------------------------------
| the | | | | | | | |
| financial | | | | | | | |
--------------------------------------------------------------------------------
| period | | | | | 5 273 | 251 | 5 524 |
--------------------------------------------------------------------------------
| Translatio | | | | | | | |
| n | | | | | | | |
--------------------------------------------------------------------------------
| adjustment | | | | -264 | | | -264 |
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 30.6.2007 | 2 | 9 179 | 2 | -221 | 13 612 | 498 | 28 |
| | 522 | | 601 | | | | 190 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G |
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2006 | 2 | 8 269 | 0 | -251 | 8 682 | 1 360 | 20 |
| | 403 | | | | | | 463 |
--------------------------------------------------------------------------------
| Dividends | | | | | -1 923 | -184 | -2 |
| | | | | | | | 107 |
--------------------------------------------------------------------------------
| Share | 40 | 910 | | | | | 950 |
| issue | | | | | | | |
--------------------------------------------------------------------------------
| Changes | | | | | | | |
--------------------------------------------------------------------------------
| in | | | | | | -284 | -284 |
| ownership | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | | | | | | | |
| for | | | | | | | |
--------------------------------------------------------------------------------
| the | | | | | | | |
| financial | | | | | | | |
--------------------------------------------------------------------------------
| period | | | | | 1 998 | 194 | 2 192 |
--------------------------------------------------------------------------------
| Translatio | | | | | | | |
| n | | | | | | | |
--------------------------------------------------------------------------------
| adjustment | | | | 113 | | | 113 |
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| 30.6.2006 | 2 | 9 179 | 0 | -138 | 8 757 | 1 086 | 21 |
| | 443 | | | | | | 327 |
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| KEY FIGURES | | | | |
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| (EUR 1 000) | 1-6/2007 | 1-6/2006 | 1-12/2006 | Change to |
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| | | | | prior year |
--------------------------------------------------------------------------------
| Revenue | 64 026 | 48 838 | 101 698 | 31,1 % |
--------------------------------------------------------------------------------
| Operating profit | 7 388 | 3 029 | 6 823 | 143,9 % |
--------------------------------------------------------------------------------
| Operating profit % | 11,5 | 6,2 | 6,7 | |
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| Profit before taxes | 7 258 | 3 009 | 6 695 | 141,2 % |
--------------------------------------------------------------------------------
| Profit before taxes, % | 11,3 | 6,2 | 6,6 | 82,8 % |
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| Return of equity, % | 42,8 | 21,0 | 20,9 | |
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| Return of investment, % | 40,9 | 22,2 | 24,6 | |
--------------------------------------------------------------------------------
| Equity ratio % | 44,3 | 39,5 | 42,6 | |
--------------------------------------------------------------------------------
| Gross interest-bearing | 10 311 | 12 062 | 10 804 | -14,5 % |
| debt | | | | |
--------------------------------------------------------------------------------
| Net gearing % | 10,2 | 27,7 | 19,7 | |
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| Balance sheet, total | 63 825 | 54 275 | 55 222 | 17,6 % |
--------------------------------------------------------------------------------
| Gross investments | 5 009 | 10 954 | 12 512 | -54,3 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0,53 | 0,21 | 0,43 | 152,6 % |
--------------------------------------------------------------------------------
| Equity per share, EUR | 2,74 | 2,07 | 2,31 | 32,6 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, average | 1 744 | 1 436 | 1 501 | 21,5 % |
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| Personnel at end of the | 1 809 | 1 552 | 1 586 | 16,6 % |
| period | | | | |
--------------------------------------------------------------------------------
The accounting policy and method of presentation for the key figures are the
same as in the 2006 financial statements.
NOTES TO THE INTERIM REPORT
General
The parent company of the Etteplan Group is Etteplan Oyj. Etteplan Oyj (the
Company) is a Finnish public limited company that has been established under
Finnish law. The Company is domiciled in Hollola. The Company's shares are
listed on the Nordic Exchange List.
Etteplan Oyj and its subsidiaries provide high-quality industrial technology
design services. The business is divided into two segments: Product Development
and Delivery Design. The Other Operations segment consists of administration.
The Group's main market area is Europe. In respect of our core customers,
Etteplan's service extends worldwide.
A copy of the consolidated financial statements can be obtained from our website
at www.etteplan.fi or from the Head Office of the Group's parent company at
Terveystie 18, 15860 Hollola.
Etteplan Oyj's Board of Directors approved the interim report for publication at
its meeting held on 7 August 2007.
Basis of Preparation
This interim report has been prepared in accordance with IAS 34 Interim
Financial Reporting and the preparation and accounting policies presented in the
2006 annual financial statements. When reading this interim report, refer to the
2006 annual financial statements.
Monetary figures in this interim report are presented in thousands of euros. All
the figures in the financial statement tables have been rounded up or down, due
to which the sums of figures may deviate from the sum total presented.
New standards, amendments and interpretations became effective as from the
beginning of the 2007 financial year. As from 1 January 2007, the Group has
adopted IFRS 7 Financial Instruments: Disclosures as well as the amendment to
IAS 1 concerning disclosures about capital. The adoption of both IFRS 7 and the
amendments to IAS 1 mainly affects disclosures in the notes to the Group's
annual financial statements. It is the view of the company's management that the
other standards and interpretations that came into force as from the beginning
of the year do not have an effect on the Group's interim report.
Use of estimates
This interim report includes forward-looking estimates and assumptions. Outcomes
may deviate from these estimates and assumptions. The estimates are based on
management's current best knowledge.
Business segments
Turnover 1-6/2007 1-6/2006
Delivery Design 35 323 28 161
Product Development 30 945 21 929
Eliminations -2 242 -1 252
Turnover, total 64 026 48 838
Operating profit 1-6/2007 1-6/2006
Delivery Design 4 432 2 504
Product Development 2 603 1 157
Other 352 -632
Operating profit, total 7 387 3 029
Business combinations
On 10 January 2007, the Group acquired a 100% holding in LCA Engineering Oy, a
company that provides design services. Company agreements and customerships are
not recognized as an asset in connection with this acquisition, as the customer
agreements are non-binding outline agreements by nature and therefore cannot be
separated or sold as such. According to Etteplan Oyj's management's opinion, the
cost of acquisition exceeding the net assets of the acquired company is goodwill
by nature as it is related to the competence of the management and personnel of
the acquired company, its market position and the operational synergies sought.
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| Details of net assets acquired and | | |
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| goodwill are as follows: | | Carrying |
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| | Fair value | amount |
--------------------------------------------------------------------------------
| | 1 000 EUR | 1 000 EUR |
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| Purchase consideration: | | |
--------------------------------------------------------------------------------
| - Cash paid | 887 | 887 |
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| - Fair value of shares issued | 1 290 | 1 290 |
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| Total purchase consideration | 2 177 | 2 177 |
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| Fair value of net assets acquired | 508 | 508 |
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| Goodwill | 1 669 | 1 669 |
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| The assets and liabilities arising from | | |
| the | | |
--------------------------------------------------------------------------------
| acquisition are as follows: | | |
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| Cash and cash equivalents | 548 | 548 |
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| Intangible assets | 3 | 3 |
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| Property, plant and equipment | 18 | 18 |
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| Trade receivables | 465 | 465 |
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| Other receivables | 23 | 23 |
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| Current payables | -550 | -550 |
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| Net assets | 508 | 508 |
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| Net assets acquired | 508 | 508 |
--------------------------------------------------------------------------------
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| Purchase consideration settled in cash | 887 | 887 |
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| Cash and cash equivalents in subsidiary | | |
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| acquired | 548 | 548 |
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| Cash outflow on acquisition | 339 | 339 |
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On 11 June 2007, the Group acquired a 26.84% minority stake in ProTang AB.
Following this acquisition, Etteplan Oyj has a 100% holding in the company.
Goodwill of EUR 1,641 thousand on the acquisition was recognized in the balance
sheet.
Intangible assets and property, plant and equipment
(1 000 EUR) Property, Goodwill Other
plant, intangible
equipment assets
Acquisition cost
1.1.2007 11 475 18 580 6 118
Increase 385 1 641 480
Decrease 371 1 669 15
Exchange difference - 179
Acquisition cost
30.6.2007 11 489 21 712 6 593
Accumulated depreciation and
impairment 1.1.2007 8 716 3 994
Depreciation 661 304
Accumulated depreciation
30.6.2007 9 377 4 298
Book value 30.6.2007 2 111 21 712 2 295
Acquisition cost
1.1.2006 10 890 8 921 5 222
Increase 1 016 1 724 913
Decrease 431 7 891 16
Exchange difference 45
Acquisition cost
30.6.2006 11 475 18 580 6 118
Accumulated depreciation and
impairment 1.1.2006 7 399 3 269
Depreciation 1 319 726
Accumulated depreciation
30.6.2006 8 716 3 994
Book value 30.6.2006 2 759 18 580 2 124
Shares and share capital
On 30 June 2007, Etteplan Oyj had 10,089,707 shares and share capital amounted
to EUR 2,522,426.73.
Dividends
The Annual General Meeting on 29 March 2007 decided on dividends of EUR 2,592
thousand for the 2006 financial year and they were paid out on 12 April 2007.
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| Interest bearing loans | | |
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| | 30.6.2007 | 30.6.2006 | 31.12.2006 |
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| Non-current | 8 260 | 9 166 | 8 967 |
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| Current | 2 051 | 2 897 | 1 837 |
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| Total | 10 311 | 12 063 | 10 804 |
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| Pledges, mortgages and | | |
--------------------------------------------------------------------------------
| guarantees | | |
--------------------------------------------------------------------------------
| | 30.6.2007 | 31.12.2006 |
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| For own debts | | |
--------------------------------------------------------------------------------
| Business mortage | 736 | 546 |
--------------------------------------------------------------------------------
| Other contingencies | 3 398 | 3 891 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing liabilities | | |
--------------------------------------------------------------------------------
| For payment under year | 722 | 890 |
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| For payment 1-5 years | 490 | 863 |
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| Total | 1 212 | 1 753 |
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Operating profit
The operating profit in this interim report contains EUR 839 thousand in
proceeds from the divestment of Etteplan's subsidiary NATLABS Oy. It has been
recorded as a non-recurring item under other operating income.
Income taxes
The taxes in the consolidated income statement have been calculated using the
tax rate appropriate for the forecast full-year result. The estimated average
effective tax rate for the year has been set separately for each country. The
effective tax rate in this interim report is 23.6%. The lowered tax rate is due
to tax-exempt capital gains from the divestment of a subsidiary.
Related-party transactions
The Group's related parties include the Group's key personnel, who are the
members of the Board of Directors, the CEO among them. Related parties also
include subsidiaries and companies in which related-party key employees have
significant holdings and control.
Since the release of the previous interim report, the following changes have
occurred in subsidiary relations:
LCA Engineering Oy, domiciled in Kouvola holding 100%
ProTang AB, domiciled in Västerås holding 100%
Sales of services to related parties during the review period amounted to EUR 68
thousand and purchases of services from them to EUR 157 thousand.
The company had no debts or outstanding loans to related parties on 30 June
2007.
Management benefits
The salaries and fees paid to the company's management are disclosed in the
annual financial statements. The company had no outstanding loans to management
on 30 June 2007 or 31 December 2006. On 30 June 2007, the members of the
company's Board of Directors and the CEO owned a total of 2,765,200 shares (31
December 2006: 2,712,110 shares).
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| Major shareholders 30.6.2007 | | |
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| | Number of | Holding |
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| Name | shares | of shares % |
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| Mönkkönen Tapani | 2 037 800 | 20,20 |
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| Ingman Finance Oy Ab | 1 000 000 | 9,91 |
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| Evli Bank Plc. | 777 592 | 7,71 |
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| Hornborg Heikki | 573 310 | 5,68 |
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| Oy Fincorp Ab | 431 515 | 4,28 |
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| Nordea Bank Finland Plc. | 293 603 | 2,91 |
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| Mandatum Finnish Small Cap Fund | 283 709 | 2,81 |
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| Aiff Ulf | 234 160 | 2,32 |
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| Svenska Handelsbanken AB (Publ), | | |
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| Filialverksamheten i Finland | 216 256 | 2,14 |
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| Tuori Klaus | 179 312 | 1,78 |
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| Mutual Insurance Company Pension Fennia | 177 700 | 1,76 |
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| Hakakari Tapio | 153 090 | 1,52 |
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| Varma Mutual Pension Insurance Company | 129 164 | 1,28 |
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| Tuori Aino | 128 448 | 1,27 |
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| Aktia Captial Small Cap Fund | 124 100 | 1,23 |
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| Fondita Equity Spice Placeringsfond | 120 000 | 1,19 |
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| SEB Gyllenberg Small Firm | 115 483 | 1,14 |
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| Fondita Nordic Micro Cap Placeringsfond | 115 000 | 1,14 |
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| Evli Select | 112 800 | 1,12 |
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| Head Invest Oy | 112 450 | 1,11 |
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| Evli Nordic Dividend | 102 832 | 1,02 |
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| Other shareholders | 2 671 383 | 26,48 |
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| Total | 10 089 707 | 100,00 |
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