Etteplan Oyj - Interim report (Q1 and Q3)

Etteplan Q2: Stable development continued

ETTEPLAN OYJ, INTERIM REPORT, AUGUST 12, 2015 AT 02.00 P.M.


ETTEPLAN Q2: STABLE DEVELOPMENT CONTINUED

Review period April-June 2015

- The Group's revenue increased by 1.5% and was EUR 34.2 million (4-6/2014:
   EUR 33.7 million). At comparable exchange rates revenue increased by 2.4%.
- EBIT from business operations was EUR 2.5 million (EUR 2.0 million)
  or 7.3% (5.9%) of revenue.
- Operating profit (EBIT) was EUR 2.3 million (EUR 2.3 million) or 6.7% (6.7%)
of revenue. 
- The profit for the review period was EUR 1.7 million (EUR 1.8 million).
- Operating cash flow improved and was EUR 3.7 million (EUR 3.1) million.
- Earnings per share were EUR 0.09 (EUR 0.09).
- The number of personnel increased and the Group had 1,900 employees at the end
  of the period (1,843).
- Etteplan updates the estimate of its market outlook and keeps its financial
guidance 
  unchanged.

Review period January-June 2015

- The Group's revenue increased by 2.8% and was EUR 68.9 million (1-6/2014:
   EUR 67.0 million). At comparable exchange rates revenue increased by 3.6%.
- EBIT from business operations was EUR 4.8 million (EUR 3.3 million)
  or 6.9% (5.0%) of revenue.
- Operating profit (EBIT) was EUR 4.4 million (EUR 3.4 million) or 6.3% (5.1%)
of revenue. 
- The profit for the review period improved and was EUR 3.1 million (EUR 2.6
million). 
- Operating cash flow improved and was EUR 3.8 million (EUR 1.4 million).
- Earnings per share were EUR 0.16 (EUR 0.13).

Market outlook

The most important factor in the development of Etteplan's business operations
is the global development of the machinery and metal industry. In spite of
political uncertainty, the European markets are showing small signs of
improvement. Increased uncertainty in the Asian markets is estimated to
continue. The good market situation in North America is expected to continue. 

Previous estimate of market outlook

The most important factor in the development of Etteplan's business operations
is the global development of the machinery and metal industry. Market
development remains uncertain due to the political and economic situation in
Europe. Etteplan's customers also operate in the North American and Asian
markets, where the demand situation is better than in Europe. 

Financial guidance

We expect the revenue and operating profit for the year 2015 to grow compared
to 2014. 

Key figures

(EUR 1,000)                     4-6/2015  4-6/2014  1-6/2015  1-6/2014  1-12/201
                                                                               4
--------------------------------------------------------------------------------
Revenue                           34,240    33,737    68,890    67,019   131,916
EBIT from business operations*     2,509     1,975     4,763     3,335     7,394
EBIT from business operations,       7.3       5.9       6.9       5.0       5.6
 %                                                                              
Operating profit (EBIT)            2,305     2,273     4,356     3,430     7,856
EBIT, %                              6.7       6.7       6.3       5.1       6.0
Basic earnings per share, EUR       0.09      0.09      0.16      0.13      0.30
Equity ratio, %                     38.4      33.7      38.4      33.7      39.5
Operating cash flow                3,695     3,058     3,832     1,363     7,754
ROCE, %                             19.8      20.7      18.3      15.5      17.8
Personnel at end of the period     1,900     1,843     1,900     1,843     1,859
* EBIT excluding acquisition related items such as amortization on PPA          
 allocations and earn out revaluations                                          

President and CEO Juha Näkki:

“The development of our business was stable in April-June. EBIT from business
operations and cash flow improved clearly. Our revenue growth slowed in
April-June as the demand situation remained at the previous quarter's level.
Changes in the European demand situation were mostly customer-specific.
Uncertainty increased in the Chinese market, which started to affect in the
development of the engineering services market as slower decision-making. 

In the area of engineering services, sales of service solutions developed
favorably. Nevertheless, our revenue decreased slightly in April-June compared
to the previous year. This was attributable to the continued prolongation of
contract negotiations with a significant customer and weaker capacity
utilization in some of our units. Our Chinese revenue also declined and the
number of working hours sold in the Chinese market was lower than in the
comparison period. Last year there was a significant project underway that
increased the number of hours in the comparison period. However, the number of
Chinese working hours sold in the Chinese market increased and the amount of
offshoring work grew. The profitability of engineering services improved as the
proportion of revenue represented by high value-added Managed Services grew. 

In technical documentation, the development of our business was excellent.
Organic revenue growth in April-June exceeded the Group's growth target of 15
per cent and profitability improved clearly. Our efforts to develop our service
offering produced good results. Interest in our outsourcing solutions was
particularly at a very good level in all market areas, which offers good growth
opportunities going forward. The improvement in the profitability of technical
documentation was attributable to the positive development of Managed Services
and our software business. 

Our operational business progressed systematically during the first half of the
year towards our targets, but growth was nevertheless modest. In the second
half of the year, we will focus particularly on accelerating growth to get
closer to our targets.” 

Disclosure procedure

Etteplan follows the disclosure procedure enabled by Disclosure obligation of
the issuer (7/2013) published by the Finnish Financial Supervision Authority.
This stock exchange release is a summary of Etteplan's January-June 2015
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. Investors are advised to review the complete interim report
with tables. 

Conference call and live webcast today, August 12, 2015

Etteplan's President and CEO Juha Näkki will present Company's results for
January-June 2015 in a conference call and a live webcast for analysts and
investors, held in English language, on August 12, 2015 starting at 3.30 p.m.
Finnish time (EET). 

To participate in the conference call please dial 5-10 minutes prior to the
start of the conference to +358 9 2319 5437, event password is Etteplan2015.
Questions can be asked in English after President and CEO's presentation only
through conference call connection. 

Juha Näkki's presentation can be followed as a live webcast though a link at
Etteplan's homepage at www.etteplan.com/Investors. The live webcast starts at
3.30 p.m. Finnish time (EET). 

A recording of the webcast will be later available at the same address.

Vantaa, August 12, 2015

Etteplan Oyj

Board of Directors


Additional information:
Juha Näkki, President and CEO, tel. +358 400 606 372


The information presented herein has not been audited.


Releases and other corporate information are available on Etteplan's Web site
at www.etteplan.com. 


DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.etteplan.comEtteplan provides engineering services and technical documentation solutions to
the world's leading companies in the manufacturing industry. Our services are
geared to improve the competitiveness of our customers' products and
engineering processes throughout the product life cycle. The results of
Etteplan's innovative engineering can be seen in numerous industrial solutions
and everyday products. 

In 2014, Etteplan had a turnover of EUR 131.9 million. The company has 1,900
professionals in Finland, Sweden, the Netherlands and China. Etteplan's shares
are listed on NASDAQ OMX Helsinki Ltd under the ticker ETT1V.

Attachments:

Etteplan_Q2_2015_EN.pdf