Etteplan Oyj - Interim report (Q1 and Q3)

Etteplan Q1: Demand improved at the end of the quarter

ETTEPLAN OYJ, INTERIM REPORT, MAY 7, 2014 AT 02.00 P.M.


ETTEPLAN Q1: DEMAND IMPROVED AT THE END OF THE QUARTER

Review period January-March 2014

- The Group's revenue decreased by 3.4% and was EUR 33.3 million
   (1-3/2013: EUR 34.5 million).
- EBITDA declined by 26.4% and was EUR 1.8 million (EUR 2.5 million).
- Operating profit (EBIT) decreased by 34.2% and was EUR 1.2 million (EUR 1.8
million). 
- The profit for the review period was EUR 0.8 million (EUR 1.0 million).
- Operating cash flow improved and was EUR -1.7 million (EUR -2.0 million).
- Earnings per share were EUR 0.04 (EUR 0.05).
- The Group had 1,731 employees at the end of the period (1,732).
- Etteplan keeps its financial guidance unchanged and adjusts the estimate of
its 
  market outlook.

Outlook 2014

Market outlook

The most important factor in the development of Etteplan's business operations
is the development of business operations in the machinery and metal industry.
At the beginning of 2014, the revenues and order books of the machinery and
metal industry were at a lower level than in the corresponding period in 2013.
However, new orders increased on average. The demand for engineering design
services showed signs of recovery at the end of the review period, but the
full-year development remains uncertain. 

Financial guidance

We expect the revenue and operating profit for the year 2014 to grow compared
to 2013. 

Previous estimate of outlook

Market outlook

The most important factor in the development of Etteplan's business operations
is the development of business operations in the machinery and metal industry.
At the beginning of 2014, the new orders and order books of the machinery and
metal industry were at a lower level than in the corresponding period in 2013.
In the last quarter of 2013, new orders turned to slight growth. The
development of the demand situation for engineering design services in the
first quarter of 2014 is uncertain despite the slightly improved market
situation. 

Financial guidance

We expect the revenue and operating profit for the year 2014 to grow compared
to 2013. 

Key figures

(EUR 1,000)                     1-3/2014  1-3/2013  1-12/2013
-------------------------------------------------------------
Revenue                           33,282    34,459    128,647
EBITDA                             1,810     2,458      9,064
EBITDA, %                            5.4       7.1        7.0
Operating profit (EBIT)            1,157     1,758      6,366
EBIT, %                              3.5       5.1        4.9
Basic earnings per share, EUR       0.04      0.05       0.22
Equity ratio, %                     31.5      29.6       35.9
Operating cash flow               -1,695    -1,960      1,789
ROCE, %                             10.5      15.5       14.6
Personnel at end of the period     1,731     1,732      1,728

Juha Näkki, President and CEO of Etteplan Oyj comments on the interim report:

“In Europe, 2014 began in a weak demand situation as expected. New projects
were still started at a slow pace during the early part of the review period.
Therefore our revenue and operating profit declined compared to the
corresponding period in 2013. However, the decline leveled off compared to the
previous quarter. Our profitability was burdened by the low price level of
projects sold in Europe in a weakening market situation during the second half
of 2013. In addition our profitability was burdened by the tight competitive
situation in the Swedish market. 

The European market situation took a positive turn at the end of the review
period, and some new engineering design projects were launched. This was
affected by the new orders received by our customers. Especially the new orders
in the forest industry equipment manufacturers increased the demand for
engineering design services. There were also signs of improvement in demand
among other equipment manufacturers serving the raw materials production. Due
to better demand, the number of temporarily laid off personnel in Finland
decreased to approximately half of the amount at the turn of the year, and new
projects were also launched in Sweden and the Netherlands. 

In Sweden, we strengthened our market position by acquiring the entire share
capital of ProAvia Konsult AB. This acquisition strengthens our position,
particularly in the aerospace and defense industry characterized by strong
demand. 

The implementation of the business strategy progressed well in the first
quarter and the share of Managed Services exceeded one third of our revenue. 

In China, our strong performance during 2013 continued in the review period and
we increased our revenue substantially. The positive development of the Chinese
engineering design services market continued, and the number of working hours
sold in the Chinese market grew by more than 130 per cent compared to the
corresponding period in 2013. We also achieved significant growth in offshoring
services. 

The uncertainty in the economy continues, but there are signs of a change for
the better. New orders received by our customers have generally turned to
growth compared to the situation at the end of 2013, which will have a positive
effect on demand. I am confident that our efforts to strengthen our market
position will be rewarded as demand improves and that our revenue and operating
profit will develop positively during the rest of the year.” 

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-March 2014
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, May 7, 2014

Etteplan's President and CEO Juha Näkki will present Company's results for
January-March 2014 in a conference call and a live webcast for analysts and
investors, held in English language, on May 7, 2014 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 Etteplan2014.
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, May 7, 2014

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.com


Etteplan provides engineering planning services and technical product
information 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 2013, Etteplan had a turnover of EUR 128.6 million. The company has morethan 1,700 professionals in Finland, Sweden, the Netherlands and China.
Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ticker ETT1V.

Attachments:

Etteplan_Q1_2014_EN.pdf