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.
