Etteplan Oyj - Financial Statement Release

Etteplan in 2013: Fair result in a difficult demand situation

ETTEPLAN OYJ FINANCIAL STATEMENT RELEASE FEBRUARY 12, 2014 AT 02.00 P.M.


ETTEPLAN IN 2013: FAIR RESULT IN A DIFFICULT DEMAND SITUATION

Review period October-December 2013

- The Group's revenue decreased by 7.2% and was EUR 32.4 million
   (10-12/2012: EUR 34.9 million).
- EBITDA declined by 29.3% and was EUR 1.8 million (EUR 2.6 million).
- Operating profit (EBIT) decreased by 39.4% and was EUR 1.1 million (EUR 1.9
million). 
- The profit for the review period was EUR 0.9 million (EUR 1.2 million).
- Operating cash flow decreased and was EUR 4.2 million (EUR 8.5 million).
- Earnings per share were EUR 0.04 (0.06).
- The Group had 1,728 employees at the end of the period (1,776).

Review period January-December 2013

- The Group's revenue decreased by 4.3% and was EUR 128.6 million
   (1-12/2012: EUR 134.5 million).
- EBITDA declined by 18.7% and was EUR 9.1 million (EUR 11.2 million).
- Operating profit (EBIT) decreased by 27.0% and was EUR 6.4 million (EUR 8.7
million). 
- The profit for the review period was EUR 4.4 million (EUR 5.6 million).
- Operating cash flow decreased and was EUR 1.8 million (EUR 11.3 million).
- Earnings per share were EUR 0.22 (0.29).
- Following the completion of a mandatory public takeover bid, Ingman Group Oy
Ab's holding 
  of Etteplan's share capital and voting rights increased to 66.85 per cent in
October 2013. 
- The Board of Directors proposes a dividend of EUR 0.11 per share.

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 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)                     10-12/2013  10-12/2012  1-12/2013  1-12/2012
----------------------------------------------------------------------------
Revenue                             32,438      34,943    128,647    134,479
EBITDA                               1,803       2,552      9,064     11,154
EBITDA, %                              5.6         7.3        7.0        8.3
Operating profit (EBIT)              1,140       1,882      6,366      8,715
EBIT, %                                3.5         5.4        4.9        6.5
Basic earnings per share, EUR         0.04        0.06       0.22       0.29
Equity ratio, %                       35.9        32.4       35.9       32.4
Operating cash flow                  4,195       8,545      1,789     11,339
ROCE, %                               11.1        17.0       14.6       20.4
Personnel at end of the period       1,728       1,776      1,728      1,776

Juha Näkki, President and CEO of Etteplan Oyj comments the financial statement
release: 

“We achieved a fair result in a difficult market situation in 2013. In the
first half of the year, the demand situation was at the weakened level seen at
the end of 2012, and after the summer the demand situation in Europe
deteriorated even further. As a result, our revenue and operating profit
declined. The exception to the weak market situation was China, where our
growth rate was excellent throughout the year. 

The uncertainty that burdened the markets in Europe and the resulting slowness
in decision-making continued all year long. The order books of our customers
were declining and industrial investments and product development investments
were at a low level. We had to implement adjustment measures in several
operating locations. In Finland, the number of temporarily laid off personnel
grew steadily during the year and amounted to nearly 15 per cent of our Finnish
personnel at year end. In Sweden, the weakened demand situation resulted in
tightened competition. In the Netherlands, the market situation was difficult
throughout the year, but we saw small signs of recovery in demand at the end of
the year. 

In China, the positive development of the engineering design services market
continued and we were able to grow our Chinese sales significantly. Our
experience of operating in the Chinese market and our investments in local
sales produced good results. In the fourth quarter, we received significant
orders from large Chinese customers and carried out our first major projects in
which we utilized European top-level expertise in the Chinese market. As a
result, the number of working hours sold in the Chinese market grew by nearly
140 per cent in the fourth quarter compared to the corresponding period in
2012. For the full year, the growth in working hours sold in the Chinese market
was nearly 80 per cent. This development is a clear indication of a change in
the Chinese engineering design services market, and we will continue to invest
in China to ensure the growth of our business operations. 

In the area of technical product information solutions, in the fourth quarter
we launched the interactive Etteplan SIS (Service Information System) service
product intended to improve the efficiency of our customers' maintenance
operations. The product is part of our customers' industrial internet
solutions. Our technical documentation service solutions were implemented in
many of our accounts, and we fulfilled our service promise of providing the
best solutions in the industry. This development creates confidence in our
growth potential in the area of technical product information solutions as the
market situation improves. 

The year 2014 began with a continued weak demand situation, but I believe
demand has already bottomed out. Market uncertainty continues to affect
customers' decision-making. Nevertheless, our customers' new orders are turning
to an increase, and discussions on new projects and service solutions are
active, particularly with equipment manufacturers serving the raw material
production industry. I am confident that the company's business will develop
positively in 2014.” 

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-December 2013
financial statement release. The complete financial statement release 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 financial statement release with tables. 

Conference call and live webcast today, February 12, 2014

Etteplan's President and CEO Juha Näkki will present Company's results for 2013
in a conference call and a live webcast for analysts and investors, held in
English language, on February 12, 2014 starting at 3.30 p.m. Finnish time
(EET). 

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). 

To participate in the conference call please dial 5-10 minutes prior to the
start of the conference to either +358 9 8171 0467, +46 8 5199 9358 or +44 20
7660 2078. Questions can be asked in English after President and CEO's
presentation only through conference call connection. 

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

Vantaa, February 12, 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 more
than 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_Q4_2013_EN.pdf