Etteplan Oyj - Interim report (Q1 and Q3)

Etteplan Q3: Revenue increased and operating profit improved

ETTEPLAN OYJ, INTERIM REPORT, OCTOBER 29, 2014 AT 02.00 P.M.


ETTEPLAN Q3: REVENUE INCREASED AND OPERATING PROFIT IMPROVED

Review period July-September 2014

- The Group's revenue increased by 7.3% and was EUR 29.5 million
   (7-9/2013: EUR 27.5 million).
- EBITDA improved by 10.8% and was EUR 2.4 million (EUR 2.2 million).
- Operating profit (EBIT) improved by 15.4% and was EUR 1.7 million (EUR 1.5
million). 
  The operating profit includes non-recurring items with a total positive
effect of EUR 0.4 million 
  (EUR 0.5 million).
- The profit for the review period improved and was EUR 1.4 million (EUR 0.9
million). 
- Operating cash flow improved and was EUR -0.5 million (EUR -1.5 million).
- Earnings per share were EUR 0.06 (EUR 0.05).
- The number of personnel increased and the Group had 1,864 employees at the end
   of the period (1,721).
- Etteplan keeps its financial guidance unchanged and adjusts the estimate of
its market 
  outlook.

Review period January-September 2014

- The Group's revenue increased by 0.4% and was EUR 96.5 million
   (1-9/2013: EUR 96.2 million).
- EBITDA declined by 1.7% and was EUR 7.1 million (EUR 7.3 million).
- Operating profit (EBIT) decreased by 0.9% and was EUR 5.2 million (EUR 5.2
million). 
  The operating profit includes non-recurring items with a total positive
effect of EUR 0.6 million 
  (EUR 0.4 million).
- The profit for the review period improved and was EUR 4.0 million (EUR 3.5
million). 
- Operating cash flow improved and was EUR 0.8 million (EUR -2.4 million).
- Earnings per share were EUR 0.19 (0.18).

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 continued to be uncertain
and business is still unpredictable. 

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 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. 

Key figures

(EUR 1,000)                    7-9/2014  7-9/2013  1-9/2014  1-9/2013  1-12/2013
--------------------------------------------------------------------------------
Revenue                          29,529    27,510    96,548    96,209    128,647
EBITDA                            2,404     2,170     7,134     7,260      9,064
EBITDA, %                           8.1       7.9       7.4       7.5        7.0
Operating profit (EBIT)           1,749     1,515     5,179     5,226      6,366
EBIT, %                             5.9       5.5       5.4       5.4        4.9
Basic earnings per share, EUR      0.06      0.05      0.19      0.18       0.22
Equity ratio, %                    35.7      34.6      35.7      34.6       35.9
Operating cash flow                -544    -1,468       818    -2,406      1,789
ROCE, %                            14.5      12.9      14.8      15.2       14.6
Personnel at end of the           1,864     1,721     1,864     1,721      1,728
 period                                                                         

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

“Market uncertainty continued in the third quarter, and there were no
significant changes in demand compared to the previous quarter. Still, our
determined work to improve our market position, particularly with respect to
key customers, produced results in the review period and we were able to
increase our revenue and improve our profitability. 

In Europe, demand among forest industry equipment manufacturers and the energy
and power transmission industry improved, while demand in other customer
industries remained at the previous quarter's level. In China, the engineering
service market continued to develop favorably despite the slowing of economic
growth in the country, and the number of working hours invoiced in the Chinese
market grew by over 100 per cent in the review period. 

The shift towards high value-added Managed Services developed favorably in the
review period, with these services constituting nearly 40 per cent of our
revenue. Our service solutions helped us increase our market share in several
accounts. In particular, our cost-effective offshoring services and outsourcing
solutions, interest our customers in the prevailing market situation. 

In the area of technical documentation, we signed several significant
agreements and are negotiating significant new outsourcing agreements. After
completing the Tedopres acquisition, we can further accelerate our efforts in
this area, and there is significant growth potential for us. 

I am fairly satisfied with the results that we achieved in the review period in
a challenging market situation. We will continue our efforts to accelerate
growth and improve profitability to reach 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-September 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, October 29, 2014

Etteplan's President and CEO Juha Näkki will present Company's results for
January-September 2014 in a conference call and a live webcast for analysts and
investors, held in English language, on October 29, 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 through 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, October 29, 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 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 2013, Etteplan had a turnover of EUR 128.6 million. The company has more
than 1,800 professionals in Finland, Sweden, the Netherlands and China.
Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ticker ETT1V.

Attachments:

Etteplan_Q3_2014_EN.pdf