ETTEPLAN OYJ INTERIM REPORT Q1: PROFITABLE GROWTH CONTINUED
Stock exchange release – Published: 29.04.2008 9:30:00
Etteplan Q1: PROFITABLE GROWTH CONTINUED
Interim report for January-March 2008
- The Group's revenue increased by 30.9% to EUR 40.7 million (EUR 31.1 million).
- The Group's operating profit, excluding non-recurring items, increased
by 13.4% to EUR 3.7 million (EUR 3.3 million).
- The result for the period, excluding non-recurring items, was EUR 2.6 million
(EUR 2.3 million).
- Earnings per share, excluding non-recurring items, were EUR 0.13 (EUR 0.11).
- Etteplan transferred to one segment in financial reporting.
- The number of personnel at the end of the period was 2,239 (1,707).
Key figures (1 000 EUR)
1-3/2008 1-3/2007 1-12/2007
Revenue 40,675 31,069 125,192
Operating profit 3,727 3,286 *) 10,788 *)
Operating profit, % 9.2 10.6 *) 8.6 *)
Profit before taxes 3,572 3,226 *) 10,534 *)
Profit before taxes, % 8.8 10.4 *) 8.4 *)
Equity ratio, % 32.8 40.5 40.7
Net gearing, % 59.7 12.6 25.7
Total assets 85,318 61,310 72,426
*) The key figures represent continuing operations, excluding non-recurring
items. In the comparative figures for 2007, the German operations and capital
gains of EUR 0.84 million for the sale of NATLABS Oy have been eliminated.
Matti Hyytiäinen, President and CEO of Etteplan Oyj, comments on the interim
report:
“Etteplan continued its profitable growth. The growth stems from investments in
our new areas of expertise, represented by our recent acquisitions in Sweden.
Our new, comprehensive selection of design and technical information services
has been well received by our customers in the vehicle, aerospace, and defense
industries. Etteplan's growth has been steady also on nearly all of our other
customer industries.”
Key customer approach basis for transferring to one segment
Etteplan provides services for various stages in the life cycle of its
customers' products, from product development to product maintenance. For this
reason, Etteplan has reorganized its operations such that services are provided
on a key customer basis and not by design phase. As a result, the company has
stopped reporting for two separate segments and transferred to one segment,
which better depicts the current operations.
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 2007 annual financial statements, but not all requirements of the IAS 34
standard for interim financial reporting have been followed in the accounting.
Business review
Demand for technical design and technical information services remained on a
good level in January-March 2008. The company continued its profitable growth
during the period. The company experienced growth on nearly all customer
industries. The volume of design and technical information services for the
heavy vehicle industry saw positive development. Another significant growth area
in the period under review consisted of commissions from the aerospace and
defense industries. The utilization rate of the entire Group remained on average
on a good level throughout the period.
During the report period Etteplan has invested in new areas of expertise,
including testing services for vehicle exhaust gases and air-conditioning
systems, as well as product development, industrial design, and production
technology design services for the automotive and aerospace industries.
Revenue
Etteplan's revenue in the first quarter of the year increased by 30.9% from that
for the corresponding period of last year, amounting to EUR 40.7 million (EUR
31.1 million). Organic growth accounted for 8% of the revenue growth in the
review period, and the remainder was attributable to corporate acquisitions.
Result
The operating profit, excluding non-recurring items, increased by 13.4% to EUR
3.7 million (EUR 3.3 million), or 9.2% (10.6%) of the revenue.
Profit for the period before taxes, excluding non-recurring items, was EUR 3.6
million (EUR 3.2 million). Taxes amounted to EUR 1.0 million (EUR 0.9 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 27.1% (27.6%).
Profit for the period, excluding non-recurring items, was EUR 2.6 million (EUR
2.3 million). Earnings per share, excluding non-recurring items, were EUR 0.13
(EUR 0.11). Equity per share grew by 15.2% to EUR 1.39 (EUR 1.20). The return on
investment was 33.0% (49.6%).
Financial position and cash flow
Total assets on March 31, 2008, showed growth by 39.2% to EUR 85.3 million (EUR
61.3 million). Goodwill on the balance sheet rose to EUR 34.4 million (EUR 19.9
million). The Group's cash and cash equivalents stood at EUR 2.6 million (EUR
7.1 million). The Group's interest-bearing liabilities increased because of the
need for working capital resulting from seasonal variation and due to corporate
acquisitions, amounting to EUR 19.2 million (EUR 10.2 million) at period end.
The equity ratio was 32.8% (40.5%). The cash flow before investments and
financial items totaled EUR −2.2 million (EUR 0.9 million). The cash flow was
influenced significantly by the tying of capital to the net working capital.
Capital expenditures
The Group's gross investments came to EUR 8.1 million (EUR 2.4 million), some of
them financed with company-held shares. The largest single investments were the
acquisition of entire share capital of Cool Engineering AB, increase of
ownership in Etteplan Technical Information Oy to 100%, and completion of the
Lutab Professor Sten Luthander Ingenjörsbyrå AB acquisition. Other investments
were for business operations and business development, such as the purchasing of
computer software and hardware.
Major events in the first quarter
At the beginning of the year, Matti Hyytiäinen, M.Sc. (Econ.), took up the
office of President and CEO of Etteplan, and the company's long-time CEO Heikki
Hornborg became the chairman of the Etteplan Board of Directors.
In January, the company finalized the acquisition of a majority holding in the
Swedish Lutab Professor Sten Luthander Ingenjörsbyrå AB in accordance with the
agreement concluded in October 2007.
At the beginning of January, Etteplan Oyj signed an agreement to acquire the
entire share capital of the Swedish Cool Engineering AB. This company,
established in 1989, provides testing and analysis services for the automotive
industry in particular. The agreement complements Etteplan's extensive expertise
in the automotive industry. An investor release of the acquisition was published
on January 9, 2008.
In January, Etteplan Oyj increased its ownership in Etteplan Technical
Information Oy from 70% to a full 100%. This acquisition was detailed in a stock
exchange release on January 16, 2008.
In February, Tarja Halonen, President of Finland, granted the 2007
Internationalization Award to Etteplan. The award was reported upon in an
investor release on February 14, 2008.
In late February, Etteplan Oyj disposed 296,166 of its own shares in exchange
for the 30% increase of ownership in Etteplan Technical Information Oy. This
disposal of company-held shares was detailed in a stock exchange release on
February 27, 2008.
On March 28, 2008, Etteplan Oyj published a stock exchange release reporting the
initiation of a share buyback program.
During the period under review, Etteplan received several significant
commissions from its key customers. For example, Etteplan signed a three-year
framework agreement with Patria Oyj on the provision of design services, and
Saab AB selected the Swedish Gesab AB, part of Etteplan Group, as its partner in
the extensive Neuron project. Gesab is fully responsible for the project, which
involves both design and strain calculations over about one and a half years.
Personnel
Etteplan Group's operations and number of personnel have grown steadily. The
number of the Group's personnel averaged 2,220 (1,703) during the review period
and was 2,239 (1,707) at period end. The number of employees increased because
of active recruitment and the business operations that were transferred to the
Group; most of the new employees are involved in the implementation of customer
projects. Outside Finland, the Group employed 1,170 people (739).
Management appointments
Outi-Maria Liedes was appointed vice president of HR and Communications and a
member of the Etteplan Oyj's Management Group from February 11, 2008.
As of April 1, 2008, other new members of the Etteplan Oyj's Management Group
are vice presidents Tom Andersson, Jari Kivelä, and Juha Näkki.
Incentive plan for key personnel
The Etteplan Oyj Board of Directors decided on a new share-based incentive plan
for key personnel. The plan includes three earnings periods: calendar years
2008, 2009, and 2010. The plan has a target group of about 40 people. The
rewards paid from the plan correspond to the value of about 720,000 Etteplan Oyj
shares at maximum.
Estimate of operating risks and uncertainty factors
Risks related to Etteplan Group's business operations are divided into external
and internal risks, and the risks are monitored according to this
classification. No significant new business risks were noticed during the period
under review.
External risks
External risks include risks concerning economic development on the whole and
unpredictable changes in customers' order backlog, which is classified as the
greatest risk in the company's business operations.
Internal risks
Internal risks include strategic and operating risks, as well as financing
risks.
Etteplan's most significant strategic risks relate to development of business
operations - in other words, acquisitions. The company aims to manage these
risks by complying with its acquisitions policy and with procedures and models
that have been prepared on the basis of this policy. In addition to
acquisitions, organic growth is an important part of the growth objectives for
Etteplan's business.
Etteplan's greatest operating risks are related to commissions and personnel.
The company's commissions include a risk of services or performances including a
professional error, omissions, or other negligence that could cause significant
financial or other damage. In order to contain operating risks, the company
applies the following procedures: compliance with quality management systems,
codes of practice, and acceptance procedures; training of personnel; and
compliance with instructions on management of quotes and contracts, particularly
in delimitation of contractual liability. The company has a liability insurance
program that encompasses the entire Group. However, the insurance does not cover
all liability risks. The company's business is based on professional personnel.
Availability of competent professionals is an important factor in ensuring
profitable growth and continued high-quality business operations.
Reviews concerning financing risks are presented in the notes to the interim
report.
Annual General Meeting
The Etteplan Oyj Annual General Meeting was held in Vantaa on March 28, 2008.
The Board of Directors was confirmed to have five members, with Tapio Hakakari,
Heikki Hornborg, Tapani Mönkkönen, Pertti Nupponen, and Matti Virtaala being
re-elected as members of the Board. At its organizational meeting of March 28,
2008, the Board elected Heikki Hornborg as chairman and Tapani Mönkkönen as
vice-chairman.
The AGM granted the Board of Directors the authorization to decide upon an issue
of no more than 4,000,000 shares with a share issue or by granting option rights
or other specific rights, referred to in Chapter 10, Article 1 of the Companies
Act, giving entitlement to shares in one or more lots. The authorization
includes the right to decide to issue either new shares or company-held shares.
The authorization is valid for three years from the Annual General Meeting
resolution - i.e., from March 28, 2008, through March 28, 2011.
In addition, the AGM authorized the Board of Directors to decide to acquire the
company's own shares in one or more lots with the company's non-restricted
equity. The acquisition of the company's own shares may be done in a proportion
other than that of the shareholders' share ownership; in other words, the Board
of Directors may also decide on directed acquisition of the company's own
shares. The authorization is valid for 18 months from the resolution of the
Annual General Meeting, beginning on March 28, 2008, and ending on September 28,
2009.
The resolutions of the Annual General Meeting were detailed in a stock exchange
release dated March 28, 2008.
Dividend
The Annual General Meeting passed a resolution on a motion by the Board of
Directors to pay a dividend for the 2007 financial year of EUR 0.21 per share,
or a total of EUR 4,224,733.80. The remaining profit, totaling EUR 9.2 million,
was retained in non-restricted equity. The dividend was paid on April 9, 2008.
Shares
The Etteplan Oyj share (ETT1V) is quoted in the Nordic Exchange's Small Cap
market capitalization group in the Industrials sector.
The company's share capital on March 31, 2008, 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 61,634 of its own shares on March 31, 2008. During the period
under review, the company acquired 143,100 of its own shares and disposed of
296,166 company-held shares.
Major events after the review period
Etteplan signed an agreement with Vataple Group to join forces to develop
engineering design and technical information services in China. According to the
agreement, the joint venture will become active on August 1, 2008. This joint
venture, Etteplan Vataple Technology Centre Ltd, will provide engineering design
and technical information services to Etteplan and its subsidiaries. The
technology center enables Etteplan to build new design capacity for its current
and new customers. Vataple Group is a privately held company that has operations
in Australia, the U.S., and China. The agreement was detailed in an investor
release on April 16, 2008.
Etteplan Oyj signed an agreement to acquire the entire share capital of Eteco
Oy. Eteco Oy, established in 1987, specializes in calculation and design
services for pressurized equipment and pipe systems. The company employs 11
people. The acquisition was detailed in an investor release on April 23, 2008.
Outlook
Despite the increased uncertainty in the world economy, most of Etteplan's
customers have steady prospects. Demand in the mining industry, energy and
energy transfer sector, aerospace industry, and heavy vehicle industry has
remained good. On the basis of these projections, Etteplan appears to have the
prerequisites for profitable growth in 2008. The sufficient availability of
competent professionals is an important factor in securing profitable growth.
The information presented herein has not been audited.
Hollola, on April 29, 2008
Etteplan Oyj
Board of Directors
More information available from:
Matti Hyytiäinen, President and CEO, at tel. +358 400 710 968
Pia Björk, CFO and vice president for Corporate Planning,
at tel. +358 400 241 815
APPENDIX:
Financial Statement Summary and Notes
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
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:
OMX Nordic Exchange Helsinki
Principal 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.
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
--------------------------------------------------------------------------------
| (EUR 1 000) | 1-3/ | 1-3/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | |
--------------------------------------------------------------------------------
| Revenue | 40 675 | 31 070 | 125 192 |
--------------------------------------------------------------------------------
| Other operating income | 50 | 906 | 1 130 |
--------------------------------------------------------------------------------
| Materials and services | -2 508 | -1 694 | -7 941 |
--------------------------------------------------------------------------------
| Staff costs | -28 002 | -21 410 | -86 486 |
--------------------------------------------------------------------------------
| Other operating expenses | -6 035 | -4 281 | -18 351 |
--------------------------------------------------------------------------------
| Depreciation and amortisation | -453 | -467 | -1 917 |
--------------------------------------------------------------------------------
| Operating profit | 3 727 | 4 125 | 11 628 |
--------------------------------------------------------------------------------
| Financial income | 30 | 34 | 280 |
--------------------------------------------------------------------------------
| Financial expenses | -185 | -94 | -534 |
--------------------------------------------------------------------------------
| Profit before taxes | 3 572 | 4 065 | 11 373 |
--------------------------------------------------------------------------------
| Income taxes | -967 | -892 | -3 016 |
--------------------------------------------------------------------------------
| Profit for the financial period | | | |
--------------------------------------------------------------------------------
| Continuing operations | 2 605 | 3 173 | 8 357 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations | | | |
--------------------------------------------------------------------------------
| Profit/loss for the financial | | | |
--------------------------------------------------------------------------------
| period, discontinuing operations | 0 | 140 | -146 |
--------------------------------------------------------------------------------
| Profit for the financial period | 2 605 | 3 313 | 8 211 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | |
--------------------------------------------------------------------------------
| Equity holders of the company | 2 605 | 3 123 | 7 848 |
--------------------------------------------------------------------------------
| Minority interest | 0 | 190 | 363 |
--------------------------------------------------------------------------------
| | 2 605 | 3 313 | 8 211 |
--------------------------------------------------------------------------------
| Earnings per share | | | |
--------------------------------------------------------------------------------
| Continuing operations | | | |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0,13 | 0,16 | 0,40 |
--------------------------------------------------------------------------------
| Diluted earnings | | | |
--------------------------------------------------------------------------------
| per share, EUR | 0,13 | 0,16 | 0,40 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations | | | |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR | 0,00 | 0,00 | -0,01 |
--------------------------------------------------------------------------------
| Diluted earnings | | | |
--------------------------------------------------------------------------------
| per share, EUR | 0,00 | 0,00 | -0,01 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | 31.3.2008 | 31.3.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 2 348 | 2 244 | 1 944 |
--------------------------------------------------------------------------------
| Goodwill | 34 353 | 19 919 | 28 751 |
--------------------------------------------------------------------------------
| Other intangible assets | 2 224 | 2 176 | 2 131 |
--------------------------------------------------------------------------------
| Investments available for sales | 473 | 420 | 420 |
--------------------------------------------------------------------------------
| Other long-term receivables | 820 | 822 | 816 |
--------------------------------------------------------------------------------
| Deferred tax assets | 47 | 251 | 34 |
--------------------------------------------------------------------------------
| Non-current assets, total | 40 265 | 25 831 | 34 096 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 42 181 | 28 329 | 30 890 |
--------------------------------------------------------------------------------
| Current tax assets | 281 | 75 | 198 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2 591 | 7 075 | 7 243 |
--------------------------------------------------------------------------------
| Current assets, total | 45 054 | 35 479 | 38 330 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 85 318 | 61 310 | 72 426 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Capital attributable to | | | |
--------------------------------------------------------------------------------
| equity holders | | | |
--------------------------------------------------------------------------------
| Share capital | 5 000 | 2 492 | 5 000 |
--------------------------------------------------------------------------------
| Share premium account | 6 701 | 9 179 | 6 701 |
--------------------------------------------------------------------------------
| Unrestricted equity fund | 2 474 | 1 241 | 2 601 |
--------------------------------------------------------------------------------
| Own shares | -284 | 0 | -962 |
--------------------------------------------------------------------------------
| Cumulative translation | | | |
--------------------------------------------------------------------------------
| adjustment | -672 | -407 | -823 |
--------------------------------------------------------------------------------
| Retained earnings | 11 962 | 8 339 | 8 339 |
--------------------------------------------------------------------------------
| Net profit for | | | |
--------------------------------------------------------------------------------
| the financial period | 2 605 | 3 123 | 7 848 |
--------------------------------------------------------------------------------
| Capital attributable to | | | |
--------------------------------------------------------------------------------
| equity holders, total | 27 786 | 23 968 | 28 704 |
--------------------------------------------------------------------------------
| Minority interest | 0 | 861 | 597 |
--------------------------------------------------------------------------------
| Equity, total | 27 786 | 24 829 | 29 301 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 1 612 | 954 | 1 511 |
--------------------------------------------------------------------------------
| Non-current interest-bearing | | | |
--------------------------------------------------------------------------------
| liabilities | 9 663 | 8 575 | 11 606 |
--------------------------------------------------------------------------------
| Non-current liabilities, total | 11 275 | 9 529 | 13 117 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Current interest-bearing | | | |
--------------------------------------------------------------------------------
| liabilities | 9 513 | 1 621 | 3 170 |
--------------------------------------------------------------------------------
| Trade and other payables | 35 552 | 24 238 | 25 415 |
--------------------------------------------------------------------------------
| Current income tax liabilities | 1 193 | 1 093 | 1 422 |
--------------------------------------------------------------------------------
| Current liabilities, total | 46 257 | 26 952 | 30 008 |
--------------------------------------------------------------------------------
| Liabilities, total | 57 532 | 36 481 | 43 125 |
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| TOTAL EQUITY AND LIABILITIES | 85 318 | 61 310 | 72 426 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | | | |
--------------------------------------------------------------------------------
| (1 000 EUR) | 1-3/ | 1-3/ | 1-12/ |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Operating cash flow | | | |
--------------------------------------------------------------------------------
| Cash receipts from customers | 34 205 | 28 749 | 121 031 |
--------------------------------------------------------------------------------
| Cash receipts from other operating | 50 | 68 | 277 |
| income | | | |
--------------------------------------------------------------------------------
| Operating expenses paid | 35 047 | 27 453 | 109 430 |
--------------------------------------------------------------------------------
| Operating cash flow before financial | | | |
--------------------------------------------------------------------------------
| items and taxes | -792 | 1 364 | 11 878 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest and payment paid for | | | |
--------------------------------------------------------------------------------
| financial expenses | 177 | 90 | 491 |
--------------------------------------------------------------------------------
| Interest received | 30 | 34 | 280 |
--------------------------------------------------------------------------------
| Income taxes paid | 1 289 | 434 | 1 881 |
--------------------------------------------------------------------------------
| Operating cash flow ( A ) | -2 228 | 874 | 9 787 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investing cash flow | | | |
--------------------------------------------------------------------------------
| Purchase of tangible and intangible | 589 | 265 | 834 |
| assets | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | 5 482 | 294 | 8 271 |
--------------------------------------------------------------------------------
| Disposal of subsidiaries | 0 | 624 | 578 |
--------------------------------------------------------------------------------
| Proceeds from sale of tangible and | | | |
--------------------------------------------------------------------------------
| intangible assets | 22 | 22 | 86 |
--------------------------------------------------------------------------------
| Proceeds from repayments of loans | 0 | 540 | 540 |
--------------------------------------------------------------------------------
| Proceeds from sale of investments | 0 | 5 | 5 |
--------------------------------------------------------------------------------
| Investing cash flow ( B ) | -6 049 | 632 | -7 896 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing cash flow | | | |
--------------------------------------------------------------------------------
| Purchase of own shares | 723 | 0 | 962 |
--------------------------------------------------------------------------------
| Short-term loans, increase | 7 026 | 0 | 0 |
--------------------------------------------------------------------------------
| Long-term loans, increase | 9 | 51 | 5 128 |
--------------------------------------------------------------------------------
| Long-term loans, decrease | 2 703 | 579 | 2 108 |
--------------------------------------------------------------------------------
| Dividend paid and other profit | 0 | 0 | 2 776 |
| distribution | | | |
--------------------------------------------------------------------------------
| Financing cash flow ( C ) | 3 609 | -527 | -718 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Variation in cash (A + B + C) | | | |
--------------------------------------------------------------------------------
| increase ( + ) / decrease ( - ) | -4 668 | 978 | 1 173 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets in the beginning of the period | 7 243 | 6 174 | 6 174 |
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| Exchange gains or losses on cash and | | | |
--------------------------------------------------------------------------------
| bank equivalents | 17 | -77 | -104 |
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| Assets at the end of the period | 2 591 | 7 075 | 7 243 |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(1 000 EUR)
Legends for table columns
A) Share Capital
B) Share Premium Account
C) Unrestricted Equity Fund
D) Own shares
E) Cumulative Translation Adjustment
F) Retained Earnings
G) Minority Interest
H) Total
--------------------------------------------------------------------------------
| | A | B | C | D | E | F | G | H |
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| Equity | | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2007 | 2 443 | 9 179 | 0 | 0 | 43 | 10 931 | 872 | 23 468 |
--------------------------------------------------------------------------------
| Dividends | | | | | | -2 592 | -201 | -2 793 |
--------------------------------------------------------------------------------
| Share | 2 557 | -2 | 2 601 | | | | | 2 680 |
| issue | | 478 | | | | | | |
--------------------------------------------------------------------------------
| Purchase | | | | | | | | |
| of | | | | | | | | |
--------------------------------------------------------------------------------
| own | | | | -962 | | | | -962 |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Changes | | | | | | | | |
--------------------------------------------------------------------------------
| in | | | | | | | -437 | -437 |
| ownership | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | | | | |
| profit | | | | | | | | |
| for | | | | | | | | |
--------------------------------------------------------------------------------
| the | | | | | | | | |
| financial | | | | | | | | |
--------------------------------------------------------------------------------
| year | | | | | | 7 848 | 363 | 8 211 |
--------------------------------------------------------------------------------
| Translati | | | | | | | | |
| on | | | | | | | | |
--------------------------------------------------------------------------------
| adjustmen | | | | | -866 | | | -866 |
| t | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | | | | | |
--------------------------------------------------------------------------------
| 31.12.200 | 5 000 | 6 701 | 2 601 | -962 | -823 | 16 187 | 597 | 29 301 |
| 7 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2008 | 5 000 | 6 701 | 2 601 | -962 | -823 | 16 187 | 597 | 29 301 |
--------------------------------------------------------------------------------
| Dividends | | | | | | -4 225 | | -4 225 |
--------------------------------------------------------------------------------
| Purchase | | | | | | | | |
| of | | | | | | | | |
--------------------------------------------------------------------------------
| own | | | | -723 | | | | -723 |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Disposal | | | | | | | | |
| of | | | | | | | | |
--------------------------------------------------------------------------------
| own | | | -127 | 1 401 | | | | 1 274 |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Changes | | | | | | | | |
--------------------------------------------------------------------------------
| in | | | | | | | -597 | -597 |
| ownership | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | | | | |
| profit | | | | | | | | |
| for | | | | | | | | |
--------------------------------------------------------------------------------
| the | | | | | | | | |
| financial | | | | | | | | |
--------------------------------------------------------------------------------
| period | | | | | | 2 605 | | 2 605 |
--------------------------------------------------------------------------------
| Translati | | | | | | | | |
| on | | | | | | | | |
--------------------------------------------------------------------------------
| adjustmen | | | | | 151 | | | 151 |
| t | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | | | | | |
--------------------------------------------------------------------------------
| 31.3.2008 | 5 000 | 6 701 | 2 474 | -284 | -672 | 14 567 | 0 | 27 786 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | | | | |
--------------------------------------------------------------------------------
| 1.1.2007 | 2 443 | 9 179 | 0 | 0 | 43 | 10 931 | 872 | 23 468 |
--------------------------------------------------------------------------------
| Dividends | | | | | | -2 592 | -201 | -2 793 |
--------------------------------------------------------------------------------
| Share | 49 | | 1 241 | | | | | 1 290 |
| issue | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | | | | |
| profit | | | | | | | | |
| for | | | | | | | | |
--------------------------------------------------------------------------------
| the | | | | | | | | |
| financial | | | | | | | | |
--------------------------------------------------------------------------------
| period | | | | | | 3 123 | 190 | 3 313 |
--------------------------------------------------------------------------------
| Translati | | | | | | | | |
| on | | | | | | | | |
--------------------------------------------------------------------------------
| adjustmen | | | | | -449 | | | -449 |
| t | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | | | | | |
--------------------------------------------------------------------------------
| 31.3.2007 | 2 492 | 9 179 | 1 241 | 0 | -407 | 11 462 | 861 | 24 829 |
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| KEY FIGURES | 1-3/ | 1-3/ | 1-12/ | Change to |
--------------------------------------------------------------------------------
| (EUR 1 000) | 2008 | 2007 | 2007 | prev.year |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 40 675 | 31 069 | 125 192 | 30,9 % |
--------------------------------------------------------------------------------
| Operating profit | 3 727 | 4 126 | 11 628 | -9,7 % |
--------------------------------------------------------------------------------
| Operating profit % | 9,2 | 13,3 | 9,3 | |
--------------------------------------------------------------------------------
| Profit before taxes | 3 572 | 4 066 | 11 374 | -12,1 % |
--------------------------------------------------------------------------------
| Profit before taxes, % | 8,8 | 13,1 | 9,1 | |
--------------------------------------------------------------------------------
| Return on equity, % | 36,5 | 54,9 | 31,7 | |
--------------------------------------------------------------------------------
| Return on investment, % | 33,0 | 49,6 | 30,4 | |
--------------------------------------------------------------------------------
| Equity ratio % | 32,8 | 40,5 | 40,7 | |
--------------------------------------------------------------------------------
| Gross interest-bearing debt | 19 176 | 10 196 | 14 777 | 88,1 % |
--------------------------------------------------------------------------------
| Net gearing % | 59,7 | 12,6 | 25,7 | |
--------------------------------------------------------------------------------
| Balance sheet, total | 85 318 | 61 310 | 72 426 | 39,2 % |
--------------------------------------------------------------------------------
| Gross investments | 8 109 | 2 436 | 13 197 | 232,9 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0,13 | 0,16 | 0,40 | -17,4 % |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1,39 | 1,20 | 1,44 | 15,2 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, average | 2 220 | 1 703 | 1 895 | 30,4 % |
--------------------------------------------------------------------------------
| Personnel at end of the | 2 239 | 1 707 | 1 949 | 31,2 % |
| period | | | | |
--------------------------------------------------------------------------------
The accounting policy and method of presentation for the key figures are the
same as for the 2007 financial statements.
NOTES TO THE FINANCIAL STATEMENT SUMMARY
General
The parent company of Etteplan Group is Etteplan Oyj. Etteplan Oyj (“the
Company”) is a Finnish public limited company that was 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 Group's main market area is Europe. In serving core
customers, Etteplan's services extend worldwide.
The Etteplan Oyj Board of Directors approved the interim report for publication
at its meeting of April 28, 2008.
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 2007 annual financial statements, but not all requirements of the IAS 34
standard for interim financial reporting have been followed in accounting.
Monetary figures in this interim report are presented in thousands of euros. All
figures in these tables have been rounded up or down, due to which the sums of
figures may deviate from the sum totals presented.
At the beginning of 2008, the Group started applying the amended instructions of
IFRS 2 (Share-Based Payments). Apart from this, the accounting principles used
were the same as for the 2007 annual financial statements. The annual financial
statements are available at www.etteplan.com/investors/etteplan07.pdf, and the
accounting policy is detailed on pages 24-27 of the annual report.
Income taxes
The taxes listed in the consolidated income statement have been calculated with
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 used in this interim report is 27.1%.
Financial risks
Etteplan Oyj's operations involve financial risks, such as foreign-currency,
refinancing and liquidity, interest, and operational credit risks. The Group's
financial risk management concentrates on minimizing the unfavorable impact of
changes in the financial markets on the Group's financial result.
Foreign-currency risk
Etteplan's business operations involve transaction and translation risks
generated by fluctuations in exchange rates. The Group has no major transaction
risks because business transactions are handled mainly in the currency of the
project country of each Group company, primarily the euro and the Swedish krona.
In the period under review, the company did not take steps to protect itself
against exchange rate changes, since the currency risks were not deemed
significant.
The future will see the increasing number of subcontracting projects between
various Group companies and different countries increasing the currency risk
involved in unfavorable exchange rate changes. The Group's translation risk
refers to the impact of fluctuations in exchange rates from translating balance
sheet items of subsidiaries into euros; the Group takes steps to keep
translation risk at a minimum by generating financing for the necessary working
capital in local currencies whenever this is feasible. The levels of the
translation differences in goodwill involved in the Group's foreign company
acquisitions and investments are monitored in conjunction with the impairment
tests for goodwill.
Interest risk
The impact of changes in interest rates on the value of interest-bearing
receivables and liabilities in different currencies generates interest risk. The
Group's cash assets are invested in risk-free interest-bearing investments.
Hedging interest is the means employed to manage the extent of interest risk
related to the fixed and fluctuating interest-bearing loans in the loan
portfolio or to long-term credits.
Refinancing and liquidity risk
The Group has negotiated adequate credit facilities to minimize refinancing and
liquidity risk and to cover the estimated financing needs.
Operational credit risks
The Group has no noteworthy concentrations of credit risk. A considerable
proportion of the business operations focus on large, financially solid
companies that operate internationally. The credit losses incurred have been
minimal. The Group has guidelines to guarantee that services are sold only to
customers with an appropriate credit rating.
