Etteplan Q2/2014: Profitability improved President and CEO Juha - - PowerPoint PPT Presentation

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Etteplan Q2/2014: Profitability improved President and CEO Juha - - PowerPoint PPT Presentation

May 12, 2023 216 likes •459 views

Smart way to smart products Etteplan Q2/2014: Profitability improved President and CEO Juha Nkki August 13, 2014 Smart way to smart products Operating environment in 4-6/2014 Demand in engineering design services and technical

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President and CEO Juha Näkki August 13, 2014

Etteplan Q2/2014: Profitability improved

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Operating environment in 4-6/2014

  • Demand in engineering design services and technical

documentation began to recover at the end of the first quarter and continued to recover slowly in the second quarter.

  • Demand improved in the review period particularly in the

projects of forest industry equipment manufacturers.

  • In the Nordic countries new orders in the machine and metal

industry grew significantly but at the same time revenue declined.

  • In China, the engineering design service market continued to

develop favorably.

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Highlights in 4-6/2014

  • Revenue decreased by 1.5% and was EUR 33.7 million

(4-6/2013: EUR 34.2 million).

  • Revenue increased by 0.5 per cent at comparable exchange rates.
  • Operating profit improved by 16.3% and was EUR 2.3 million (EUR 2.0 million).
  • Operating profit nearly doubled compared to 1-3/2014.
  • Profitability improved and operating profit per cent was 6.7%

(4-6/2013: 5.7%).

  • The share of high value-added Managed Services was more than one third of

revenue in the review period.

  • The number of working hours invoiced in the Chinese market grew by nearly

170% during the review period (1-6/2014 growth was more than 150%).

  • The number of personnel grew and was at the end of period 1,843

(1,742).

  • In Finland the number of temporary layoffs decreased from 150 people at

the beginning of the year to less than 50 people.

  • The number of employees in China exceeded 200.
  • Etteplan raised its growth target.
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New growth target: 15% annually

Growth areas are:

  • Organic growth
  • Key customers: increasing market share
  • Technical documentation: outsourcings and sales of service

solutions

  • China market: market growth and being a forerunner in

engineering design and technical documentation services in China

  • Inorganic growth
  • Acquisitions supporting business strategy
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Revenue 1-6/2014

Revenue by customer segment Revenue by country

15 % (2013:17%) 14 % (2013:14%) 13 % (2013:9%) 12 % (2013:17%) 12 % (2013:12%) 11 % (2013:7%) 8 % (2013:8%) 6 % (2013:9%) 5 % (2013:4%) 3 % (2013:3%) Muut Nosto- ja siirto Energia ja sähkönsiirto Kaivos Teollisuuden laitteet ja komponentit Metsä ja paperi Ilmailu ja puolustus Ajoneuvo ja kuljetus Lääketieteen tekniikka Metalli

15 % 14 % 13 % 12 % 12 % 11 % 8 % 6 % 5 % 3 % Others 15 % Lifting and hoisting 14 % Energy and power transmission 13 % Mining 12 % Industrial machinery and components 12 % Forest and paper 11 % Aerospace and defense 8 % Transportation and vehicle 6 % Medical technology 5 % Metal 3 % 57 % (2013:58%) 35 % (2013:36%) 3 % (2013:1%) 5 % (2013:5%) Finland Sweden China The Netherlands

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Outlook 2014

Market outlook

  • The most important factor in the development of Etteplan’s

business is the development of the machinery and metal

  • industry. Despite increased new orders from the machinery

and metal industry, the market has become more uncertain and business less predictable. Financial guidance

  • We expect the revenue and operating profit for the year 2014

to grow compared to 2013.

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Revenue

4-6/2014: EUR 33.7 million (4-6/2013: EUR 34.2 million)

0,0 10,0 20,0 30,0 40,0 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014

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Operating profit (EBIT) and EBIT %

4-6/2014: EUR 2.3 million, 6.7% (4-6/2013: EUR 2.0 million, 5.7%)

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 0,5 1 1,5 2 2,5 3 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 EBIT %

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EBITDA and EBITDA %

4-6/2014: EUR 2.9 million, 8.7% (4-6/2013: EUR 2.6 million, 7.7%)

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0 0,5 1 1,5 2 2,5 3 3,5 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 EBITDA %

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Earnings per share (EUR) and dividends (EUR/share)

Earnings per share 4-6/2014: EUR 0.09 (4-6/2013: EUR 0.08) Earnings per share 1-6/2014: EUR 0.13 (1-6/2013: EUR 0.13)

0,19 0,20 0,29 0,22 0,08 0,09 0,10 0,10 0,15 0,11 0,00 0,05 0,10 0,15 0,20 0,25 0,30 0,35 2010 2011 2012 2013 Q2/2013 Q2/2014 Earnings per share Dividends

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Cash flow

Operating cash flow 4-6/2014: EUR 3.1 million (4-6/2013: EUR 1.0 million) Cash flow after investments 4-6/2014: EUR 2.8 million (4-6/2013: EUR 0.9 million)

0,0 2,0 4,0 6,0 8,0 10,0 12,0 2010 2011 2012 2013 Q2/2013 Q2/2014 Operating cash flow Cash flow after investments

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Return on capital employed (ROCE), %

4-6/2014: 20.7% (4-6/2013: 18.3%)

0,0 10,0 20,0 30,0 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014

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Personnel, average

1-6/2014: 1,768 (1-6/2013: 1,739)

1594 1625 1756 1 736 1 739 1 768 1500 1600 1700 1800 2010 2011 2012 2013 Q2/2013 Q2/2014

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Key Figures 4-6/2014

(EUR 1,000) 4-6/2014 4-6/2013 Change % Revenue 33,737 34,240

  • 1.5

EBITDA 2,920 2,632 10.9 EBITDA, % 8.7 7.7 Operating profit (EBIT) 2,273 1,954 16.3 EBIT, % 6.7 5.7 Basic earnings per share, EUR 0.09 0.08 12.5 Equity ratio, % 33.7 31.7 Operating cash flow 3,058 1,022 199.2 ROCE, % 20.7 18.3 Personnel at end of the period 1,843 1,742 5.8

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Key Figures 1-6/2014

(EUR 1,000) 1-6/2014 1-6/2013 Change % 1-12/2013 Revenue 67,019 68,699

  • 2.4

128,647 EBITDA 4,730 5,090

  • 7.1

9,064 EBITDA, % 7.1 7.4 7.0 Operating profit (EBIT) 3,430 3,712

  • 7.6

6,366 EBIT, % 5.1 5.4 4.9 Basic earnings per share, EUR 0.13 0.13 0.0 0.22 Equity ratio, % 33.7 31.7 35.9 Operating cash flow 1,363

  • 938

245.3 1,789 ROCE, % 15.5 16.8 14.6 Personnel at end of the period 1,843 1,742 5.8 1,728

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Income Statement

(EUR 1,000) 4-6/2014 4-6/2013 Change % 1-6/2014 1-6/2013 Change % 1-12/2013 Revenue 33,737 34,240

  • 1.5

67,019 68,699

  • 2.4

128,647 Other operating income 495 152 576 216 1,134 Materials and services

  • 2,437
  • 2,759
  • 5,516
  • 5,450
  • 11,605

Staff costs

  • 24,181
  • 23,131
  • 48,090
  • 47,376
  • 90,250

Other operating expenses

  • 4,693
  • 5,870
  • 9,259
  • 10,999
  • 18,862

Depreciation and amortization

  • 647
  • 678
  • 1,300
  • 1,378
  • 2,697

Operating profit (EBIT) 2,273 1,954 16.3 3,430 3,712

  • 7.6

6,366 Financial income 143 127 197 194 306 Financial expenses

  • 308
  • 48
  • 541
  • 454
  • 947

Share of the result of associate 14

  • 54
  • 54

Profit before taxes 2,108 2,047 3.0 3,087 3,398

  • 9.2

5,672 Income taxes

  • 324
  • 408
  • 478
  • 741
  • 1,282

Profit for the financial year 1,783 1,639 2,609 2,656 4,390

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Balance sheet

(EUR 1,000) 30.6.2014 30.6.2013 31.12.2013 Goodwill 38,973 39,424 39,131 Other non-current assets 8,700 8,404 8,678 Non-current assets, total 47,673 47,828 47,809 Trade and other receivables 26,096 27,008 25,709 Cash and cash equivalents 1,879 2,264 975 Current assets, total 27,974 29,272 26,684 TOTAL ASSETS 75,648 77,100 74,493 Equity, total 25,038 23,849 25,481 Non-current liabilities, total 13,637 14,913 14,279 Current liabilities, total 36,973 38,337 34,734 TOTAL EQUITY AND LIABILITIES 75,648 77,100 74,493

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Cash flow

(EUR 1,000) 4-6/2014 4-6/2013 1-6/2014 1-6/2013 1-12/2013 Operating cash flow (A) 3,058 1,022 1,363

  • 938

1,789 Investing cash flow (B)

  • 266
  • 123
  • 1,763
  • 392
  • 1,634

Cash flow after investments (A+B) 2,792 899

  • 400
  • 1,330

154 Financing cash flow (C)

  • 1,992
  • 2,114

1,155

  • 1,871
  • 4,647

Variation in cash (A+B+C) 800

  • 1,215

755

  • 3,201
  • 4,493

Assets at the beginning of the period 964 3,299 975 5,402 5,402 Exchange gains or losses on cash and cash equivalents 115 180 148 63 65 Assets at the end of the period 1,879 2,264 1,879 2,264 975

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Etteplan Oyj’s financial targets and realization

Growth

  • Average 15% annual growth
  • 1-6/2014: -2.4%
  • Growth in key customers
  • Strong market position

enables Etteplan to grow faster than the market

  • Acquisitions supporting

growth

Profitability

  • Operating profit 10%
  • 1-6/2014: 5.1%
  • Change of business model
  • Market leadership

Cash flow

  • Improvement of cash flow

to strengthen the balance sheet

  • 1-6/2014: 1.4 MEUR
  • Development of pricing

models

  • Improved processing and

sales of sales receivables

Target and realization in 1-6/2014 Action High value- added services

  • Share of Managed Services to

grow to 50% of revenue by 2016

  • 1-6/2014: over 33%
  • Service solutions and

project business

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Revenue and EBIT 2000 - 2014

*) includes continuing and discontinued operations ‐6 ‐4 ‐2 2 4 6 8 10 12 14 16 10 20 30 40 50 60 70 80 90 100 110 120 130 140 2000 2001* 2002* 2003* 2004* 2005* 2006* 2007 2008 2009 2010 2011 2012 2013 1‐6/2014

Revenue EBIT

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Major shareholders on June 30, 2014

Name Number of shares Holding of shares, % Ingman Group Oy Ab 13 650 000 67,64 Oy Fincorp Ab 2 113 721 10,47 Varma Mutual Pension Insurance Company 821 328 4,07 Etteplan Oyj 461 791 2,29 Tuori Klaus 351 000 1,74 Tuori Aino 256 896 1,27 Kempe Anna 220 000 1,09 Sijoitusrahasto Taaleritehdas Mikro Markka 214 121 1,06 Kempe Lasse 100 000 0,50 Kempe Pia 97 700 0,48 Other shareholders 1 892 857 9,39 Total 20 179 414 100,00 Nominee-registrated shares 209 268 1,04

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IR contacts

  • Juha Näkki

President and CEO

  • Tel. +358 10 307 2077
  • Per-Anders Gådin

Senior Vice President, Finance & IT

  • Tel. +46 70 399 7929
  • Outi-Maria Liedes

Senior Vice President, Communications and Operational Development

  • Tel. +358 10 307 3251
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