Etteplan Oyj - Interim report (Q1 and Q3)

ETTEPLAN Q1 2024: The year started as expected

ETTEPLAN OYJ Interim Report May 8, 2024, at 1.00 p.m. (EEST)

ETTEPLAN Q1 2024: The year started as expected

Key points January-March 2024

  · The Group's revenue increased by 2.3 percent and was EUR 97.1 million (1
-3/2023: EUR 95.0 million). At comparable exchange rates, revenue increased by
2.3 percent.
  · Operating profit (EBITA) increased by 8.1 percent and was EUR 8.2 (7.6)
million, or 8.4 (8.0) percent of revenue.
  · Operating profit (EBIT) increased by 7.0 percent and was EUR 6.7 (6.3)
million, or 6.9 (6.6) percent of revenue.
  · Operating cash flow improved and was EUR 8.1 (7.2) million.
  · Basic earnings per share were EUR 0.16 (0.17).

Etteplan also monitors non-IFRS performance measures because they provide
additional information on Etteplan's development. More information on
performance measures is provided at the end of the release.

Key figures

EUR 1,000                       1-3/2024  1-3/2023  1-12/2023
Revenue                           97,118    94,954    359,951
Operating profit (EBITA)           8,185     7,569     30,883
EBITA, %                             8.4       8.0        8.6
Operating profit (EBIT)            6,695     6,259     25,540
EBIT, %                              6.9       6.6        7.1
Basic earnings per share, EUR       0.16      0.17       0.66
Equity ratio, %                     39.2      39.7       40.9
Operating cash flow                8,056     7,179     35,571
ROCE, %                             13.3      13.2       13.3
Personnel at end of the period     3,847     3,949      3,902

President and CEO Juha Näkki:

As expected, the year began in an expectant mood. Uncertainty caused by
geopolitical tensions, high interest rates and our customers' declining
orderbooks slowed our customers' decision-making on new investments, and the
demand situation was difficult. Demand related to the defense industry, the
energy industry and electrification remained at a high level, but the demand
situation in other areas was weak.

Under the prevailing conditions, our operational efficiency was at a moderate
level thanks to the implemented adaptation measures. We achieved a moderate
result and our cash flow was strong. Revenue increased slightly, supported by
acquisitions. During the review period, we acquired Strongit, which strengthens
our market position in Denmark. Nevertheless, our organic revenue decreased,
partly due to Easter and the related holidays falling in the review period.

We continued to develop the company and launched Etteplan's renewed brand and
values during the review period. The company has developed and changed
significantly over the past years. With the renewal, we aim to update our brand
to reflect the company's current position as a leading global technology service
company in its field and create opportunities for the company to develop further
with the support of the renewed brand. During the review period, we also
continued to invest in the development of our service offering, in which
artificial intelligence plays a significant role. We implemented the first
service solutions utilizing AI for our customers in the Technical Communication
Solutions service area during the review period. The results are very promising,
and we expect AI to create significant opportunities, both in terms of
increasing value for customers and improving our internal efficiency.

The mood in the market remained expectant at the start of the second quarter,
but the first signs of improved investment activity can generally be seen in the
European markets. There are no corresponding signs in Finland as of yet.
Nevertheless, the European Central Bank's comments regarding interest rate cuts
have improved the mood in the market, and we expect that the potential interest
rate cuts would have a significant stimulating impact on industrial investment.
Investments typically start with product development, and we expect this to lead
to a clear improvement in the demand situation during the latter part of the
year.

Market outlook 2024

The most important factor affecting Etteplan's business is the global
development of the machinery and metal industry. The uncertainty caused by
geopolitical tensions and high interest rates are still affecting our customers'
willingness to invest and keeping the demand situation at a low level in certain
customer industries. Investments related to the defense industry, energy
efficiency and accelerating the green transition are still at a good level. The
markets expect interest rates to decrease in 2024, which we believe will
accelerate investments. We have seen first signs of market improvement in
Europe, and we expect the demand situation to improve to a good level during the
rest of the year.

Financial guidance 2024

Etteplan keeps its guidance for revenue and operating profit (EBIT) intact and
issues the following estimate:

Revenue in 2024 is as estimated to be EUR 375-415 (2023: 360.0) million, and
operating profit (EBIT) in 2024 is estimated to be EUR 28-34 (2023: EUR 25.5)
million.

Disclosure procedure

This stock exchange release is a summary of Etteplan's January-March 2024
Interim Report. The complete Interim Report is attached to this stock exchange
release in pdf format and is also available on Etteplan's website at
www.etteplan.com (https://www.etteplan.com/investors).

Conference call and live webcast today, May 8, 2024

Etteplan's President and CEO Juha Näkki will present the Company's results for
January-March 2024 in a conference call and a live webcast, held in English
language, on May 8, 2024 starting at 2.30 p.m. Finnish time (EEST).

Questions can be asked in Finnish and in English after President and CEO's
presentation only through conference call connection. Participants must register
through this link
https://palvelu.flik.fi/teleconference/?id=50048364 (https://eur02.safelinks.prot
ection.outlook.com/?url=https%3A%2F%2Fpalvelu.flik.fi%2Fteleconference%2F%3Fid%3D
50048364&data=05%7C02%7CMervi.Suuronen%40etteplan.com%7Ca5c0f49b190f4a8b6e5008dc6
46a7d11%7C1f23d6d3b1584e45b7e17631cf28c804%7C0%7C0%7C638495655756851225%7CUnknown
%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D
%7C0%7C%7C%7C&sdata=NZpW233QYCRpJiIiA3fOYV6ET%2FN4jOlOsDQ7ZCIjLx0%3D&reserved=0)
to ask questions through the conference call lines. After registering the
participants will receive a teleconference number and a code to join the call.
The participants are asked to press *5 to join the queue for questions.

Juha Näkki's presentation can be followed as a live webcast on
https://etteplan.videosync.fi/q1
-2024 (https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fetteplan
.videosync.fi%2Fq1
-2024&data=05%7C02%7CMervi.Suuronen%40etteplan.com%7Ca5c0f49b190f4a8b6e5008dc646a
7d11%7C1f23d6d3b1584e45b7e17631cf28c804%7C0%7C0%7C638495655756842831%7CUnknown%7C
TWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C
0%7C%7C%7C&sdata=6yVfcsMq2zp%2Fi9kUyEjaj3FKqfUsit2qQvembu7WAAw%3D&reserved=0).
The webcast starts at 2.30 p.m. Finnish time (EEST). A recording of the webcast
will be available later at
www.etteplan.com (https://www.etteplan.com/Investors).

Espoo, May 8, 2024

Etteplan Oyj

Board of Directors

Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302


The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan's website at
www.etteplan.com (https://www.etteplan.com/investors).

DISTRIBUTION:
Nasdaq Helsinki
Major media
www.etteplan.com

Etteplan in brief

Etteplan is a growing technology service company with the purpose of bringing
people and technologies together to change things for the better. Together with
our customers, we are building a world where every system, process, and product
can be made smarter, more efficient, and more sustainable. Our customers include
world's leading companies in the manufacturing industry.

In 2023, we had a turnover of EUR 360.0 million and around 4,000 professionals
in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and China.
Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker.
www.etteplan.com (https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F
%2Fwww.etteplan.com%2F&data=05%7C02%7Cnina.jahi%40etteplan.com%7Caab791b805004388
9de408dc271de0c7%7C1f23d6d3b1584e45b7e17631cf28c804%7C0%7C0%7C638428256568099956%
7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXV
CI6Mn0%3D%7C0%7C%7C%7C&sdata=2wNi07dOmuCL3Ti0WkTetvb0bXyKSOcPlJVrhEJphL4%3D&reser
ved=0)

Attachments:

05086009.pdf