Etteplan Oyj - Interim report (Q1 and Q3)

ETTEPLAN Q1 2017: Good development continued in the first quarter

Etteplan Oyj, Interim Report, May 3, 2017, at 2:00 p.m.

ETTEPLAN Q1 2017: Good development continued in the first quarter

Review period January-March 2017

  -- The Group’s revenue increased by 42.0 per cent and was EUR 54.8 million
     (1-3/2016: EUR 38.6 million). At comparable exchange rates revenue
     increased by 42.8 per cent.
  -- EBIT from business operations* improved and amounted to EUR 4.3 (2.2)
     million, or 7.9 (5.6) per cent of revenue. EBIT from business operations
     included exceptional items with a combined negative effect of EUR 0.4 (0.2)
     million.
  -- Operating profit (EBIT) was EUR 3.8 (1.9) million, or 7.0 (4.9) per cent of
     revenue.
  -- The profit for the review period was EUR 2.9 (1.5) million.
  -- Operating cash flow improved and was EUR 1.9 (-1.7) million.
  -- Earnings per share, adjusted for the share issue, were EUR 0.12 (0.07**).
  -- The number of personnel increased and the Group had 2,628 employees at the
     end of the review period (2,080).
  -- Due to better outlook Etteplan raises its financial guidance: revenue and
     operating profit will grow significantly compared to 2016.

*EBIT from business operations is an alternative performance measure, which
reflects the Company’s operational performance: it does not include
acquisition-related items such as amortization on PPA allocations and earn out
revaluations. 
**The comparison period’s earnings per share have been issue adjusted. The
rights issue factor was 1.050. 

Market outlook 2017

The most important factor in the development of Etteplan's business is the
global development of the machinery and metal industry. The development of our
business environment is currently positive. However, the political situation in
different countries continues to maintain uncertainty and slows down the start
of new investments. The development of the Central European markets is expected
to remain unchanged. The favorable development of the Swedish market is
expected to continue. The Finnish market has improved, but the general market
situation is expected to remain weaker than in the rest of Europe. In Asia, the
growth of the service market is expected to continue. 

Financial guidance 2017, updated on May 3, 2017

We expect the revenue and operating profit for the full year 2017 to grow
significantly compared to 2016. 

Previous financial guidance 2017, updated on February 9, 2017

We expect the revenue and operating profit for the full year 2017 to grow
clearly compared to 2016. 

Key figures                                                                     
                                                                                
(EUR 1,000)                             1-3/2017     1-3/2016          1-12/2016
--------------------------------------------------------------------------------
Revenue                                   54,802       38,603            183,938
EBIT from business operations              4,329        2,178             12,071
EBIT from business operations, %             7.9          5.6                6.6
Operating profit (EBIT)                    3,827        1,896             10,131
EBIT, %                                      7.0          4.9                5.5
Basic earnings per share, EUR               0.12         0.07   *           0.33
Equity ratio, %                             42.1         40.0               40.0
Operating cash flow                        1,904       -1,682              5,661
ROCE, %                                     18.1         15.0               14.8
Personnel at end of the period             2,628        2,080              2,545
*Comparison period's earnings per share have been issue adjusted. The rights    
 issue factor was 1.050.                                                        

President and CEO Juha Näkki:

“The year 2017 got off to a good start. Our revenue increased by a record 42
per cent during the review period, we doubled our operating profit and our cash
flow improved significantly year-on-year. While acquisitions affected the
development of revenue and operating profit, our organic growth was also strong
at 15.7 per cent with comparable exchange rates. The implementation of our
strategy progressed well and the share of Managed Services of Revenue (MSI
index) increased to 57 per cent. 

We invested in growth markets in Poland and China and opened a new office in
Finland. In China we opened new offices in Xian and Beijing. In Poland we
expanded our operations by opening a new office in Poznan, to serve customers
in Poland and Central Europe better. In Poland we also expanded our service
offering to technical documentation in addition to embedded systems and IoT
solutions. In Finland we opened a new office, which is concentrating on digital
solutions, in Vallila, Helsinki. 

The demand situation improved in the first quarter. In Finland, demand remained
at a weaker level than in the rest of Europe, but showed a clear improvement
compared to the weak comparison period. The Chinese engineering market
continued to open up. Working hours sold in the Chinese market grew by more
than 70 per cent during the review period. 

The Engineering services service area grew, boosted by our strong market
position and outsourcing. Plant engineering also showed signs of recovery and
tendering activity was high. 

Embedded systems and IoT saw positive development and customers’ interest
towards digital solutions continued strong. We expanded our service offering to
include service design, which strengthens our positions in comprehensive
solutions. 

Technical documentation continued to see strong growth. In Germany and the
Netherlands, projects started slowly. This together with the low level of the
software business weakened our profitability slightly. 

The second quarter will be substantially shorter than the comparison period due
to the timing of Easter, and the markets continue to suffer from uncertainty.
Nevertheless, through relentless strategy implementation we have created an
excellent foundation for future growth. Therefore, in an improved market
situation and after a strong first quarter we are raising our financial
guidance: we expect our revenue and operating profit to grow significantly in
2017.” 

Disclosure procedure

This stock exchange release is a summary of Etteplan's January-March 2017
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. 

Conference call and live webcast today, May 3, 2017

Etteplan's President and CEO Juha Näkki will present Company's results for
January-March 2017 in a conference call and a live webcast for analysts and
investors, held in English language, on May 3, 2017 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 (0)9 7479 0361 and tell operator the event
password: 4636743. 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 on
http://platform.goodmood.fi/goodmood/etteplan/live. The webcast starts at 3.30
p.m. Finnish time (EET). A recording of the webcast will be later available at
www.etteplan.com/Investors. 


Vantaa, May 3, 2017

Etteplan Oyj

Board of Directors



Additional information:
Juha Näkki, President and CEO, tel. +358 400 606 372
Outi Torniainen, SVP, Communications and Marketing, tel. +358 40 512 1375


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


Etteplan provides industrial equipment and facility engineering, embedded
systems, IoT (Internet of Things), 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 2016, Etteplan had a turnover of EUR 183.9 million. The company currently
has more than 2,500 professionals in Finland, Sweden, the Netherlands, Germany,
Poland and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the
ETTE ticker. www.etteplan.com 



DISTRIBUTION:
Nasdaq Helsinki
Major media
www.etteplan.com

Attachments:

Etteplan_2017_Q1_EN.pdf