Etteplan Oyj — Interim / Quarterly Report 2009

Apr 29, 2009

ETTEPLAN OYJ INTERIM REPORT 29 APRIL 2009, at 9:30 a.m.

ETTEPLAN Q1: POSITIVE OPERATING PROFIT IN A CHALLENGING MARKET SITUATION

Interim report for January-March 2009

• − The Group's revenue was EUR 33.7 million (1-3/2008: EUR 40.7 million).
• − The Group's operating profit was EUR 0.2 million (EUR 3.7 million).
• − The profit for the period was EUR 0.09 million (EUR 2.6 million).
• − Earnings per share were EUR 0.00 (EUR 0.13).
• − The number of personnel was adjusted to correspond to the demand. The number of personnel at the end of the period was 2,107 (2,239).

Key figures

(EUR 1 000)	1-3/2009	1-3/2008	1-12/2008
Revenue	33,734	40,675	161,614
Operating profit	225	3,727	12,349
Operating profit, %	0.7	9.2	7.6
Profit for the period	87	2,605	8,155
Profit for the period, %	0.3	6.4	5.0
Equity ratio, %	32.1	32.8	34.2
Net gearing, %	84.1	59.7	54.6
Total assets	79,588	85,318	78,880

Matti Hyytiäinen, President and CEO of Etteplan Oyj, comments on the interim report:

"During the period under review, the technical design market was extremely challenging. Demand for our services was on a significantly lower level than usually due to delays in our customers' investment projects and exceptionally low demand in some customer industries. With fast actions we reduced design personnel with temporary lay-offs in Finland and permanent layoffs in Sweden as well as cut down other operation costs. Due to these actions we achieved a positive operating profit."

Accounting principles

The interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting) and the preparation and accounting policies presented in the 2008 annual financial statements, but not all requirements of the IAS 34 standard for interim financial reporting have been followed in the accounting.

Business review January-March 2009

In January-March, Etteplan's design assignments continued to be influenced by the decline in customers' order books. The total volume of assignments declined during the review period.

Demand for technical design and product information services remained on a satisfactory level in energy and power transmission sector and in the aerospace and defence equipment industries. Demand for design services of material handling equipment remained good. During the review period, demand for plant engineering design services continued to decline, but decline ceased towards the end of the review period. Demand for design services among equipment manufacturers in the forest industry and in automotive industry remained on low level during the whole period under review. The Group's design capacity was underutilized during the review period.

Etteplan continued the operation adjustments and saving measures that were started during the last quarter of 2008 and during the review period, to respond to the market situation. On top the implemented and ongoing personnel reductions, the adjustments included cutting down external services and operation costs in the whole Group during the review period.

During the period under review, actions to reduce personnel continued in Sweden. Most of the reductions were due to the decreased number of assignments in automotive industry. During the last quarter of year 2008, a decision was taken to reduce the number of personnel by 100 employees. These reductions will take place during the first half of year 2009.

In January-March, personnel negotiations to reduce the personnel continued in Finland. During the last quarter of year 2008, the decision was taken to reduce the number of personnel by 90 employees. During the period under review, new decisions have been taken to reduce further 90 employees in Finland. The new personnel reductions have mostly been in form of temporary layoffs and will take place during the first half of year 2009.

Revenue

Etteplan's revenue in the first quarter of the year amounted to EUR 33.7 million (1-3/2008: EUR 40.7 million). Decline in revenue was attributable to the decrease in our customers' order books and to the weakened Swedish krona. At comparable exchange rates the revenue for January-March 2009 period was EUR 36.5 million.

Result

The operating profit was EUR 0.2 million (1-3/2008: EUR 3.7 million), or 0.7% (9.2%) of the revenue. The decline was due to weakened demand of design services.

Profit for the period before taxes was EUR 0.04 million (1-3/2008: EUR 3.6 million). Taxes amounted to EUR -0.05 million (EUR 1.0 million). Taxes have been periodized in line with the result for the review period.

Profit for the period was EUR 0.09 million (1-3/2008: EUR 2.6 million). Earnings per share were EUR 0.00 (EUR 0.13). Equity per share was EUR 1.29 (EUR 1.39). The return on investment was 2.6% (33.0%).

Financial position and cash flow

Total assets on March 31, 2009, were EUR 79.6 million (December 31, 2008: EUR 78.9 million). Goodwill on the balance sheet was EUR 33.1 million (December 31, 2008: EUR 33.2 million). The Group's cash and cash equivalents stood at EUR 2.3 million (December 31, 2008: EUR 1.9 million). The Group's interest-bearing liabilities amounted to EUR 23.7 million (December 31, 2008: EUR 16.6 million) at period end. The equity ratio was 32.1% (December 31, 2008: 34.2%). The cash flow after investments totalled EUR -6.6 million (1-3/2008: EUR -8.2 million).

Capital expenditures

The Group's gross investments came to EUR 0.2 million (1-3/2008: EUR 8.1 million). During the comparison period in year 2008 the investments consisted mainly of company acquisitions.

Personnel

The number of the Group's personnel averaged 2,144 (1-3/2008: 2,220) during the review period and was 2,107 (March 31, 2008: 2,239) at period end. The number of personnel at the end of the period includes temporarily laid-off employees and permanently laid-off employees whose obligation to work continues. The number of employees decreased mainly due to personnel reductions in Sweden. Outside Finland, the Group employed 1,051 people (March 31, 2008: 1,170) at the end of the period.

Major events after the review period

After the period under review, Etteplan has commenced reorganising its business in Sweden. The aim of the reorganisation is to capitalize on the growth opportunities in the market by setting up new business units to serve Etteplan's customers globally. A new Transportation business unit focuses on energy efficiency, emission control and advanced material solutions for aerospace industry, train, vehicle and material handling sectors. Typical applications are aeroengines, hybrid and electric cars, on- and off-road vehicles and trains.

As a part of reorganisation Etteplan established a new business unit which strengthens its design offering for nuclear power plants and nuclear power plant equipment manufacturers. Etteplan has a long experience in serving nuclear power plant customers in plant engineering.

Incentive plan for key personnel

The Etteplan Oyj Board of Directors decided on a share-based incentive plan for key personnel in March 2008. The plan includes three earnings periods: calendar years 2008, 2009 and 2010. The plan had a target group of 37 people in 2008. The remuneration paid from the plan corresponds to the value of about 720,000 Etteplan Oyj shares at maximum. The remuneration earned in 2008 will be paid on April 30, 2009.

Estimate of operating risks and uncertainty factors

Etteplan's financial results are exposed to number of strategic, operational and financial risks. A detailed risk analysis can be found in Etteplan's annual report 2008.

External risks

During the period under review, economic development on the whole and unpredictable changes in customers' order books continued to be a significant risk. The customer related risks will continue to pose an increased risk for Etteplan's operations.

Internal risks

Internally Etteplan does not foresee changes in its risk position compared to previously stated.

The official impairment testing is done on yearly basis in the last quarter of the year. Etteplan Group´s most significant goodwill are related to the Swedish operations. Due to the reorganization in Sweden, the current impairment test shows no reason for goodwill write-down.

Annual General Meeting

The Etteplan Oyj Annual General Meeting was held in Lahti on March 26, 2009.

The Board of Directors was confirmed to have six members. Tapio Hakakari, Heikki Hornborg, Tapani Mönkkönen, Pertti Nupponen, and Matti Virtaala were re-elected as members of the Board and Robert Ingman was elected as a new member of the Board. At its organizational meeting of March 26, 2009, the Board elected Heikki Hornborg as chairman and Tapani Mönkkönen as vice-chairman.

The Annual General Meeting resolved the remuneration for the members of the Board of Directors to be EUR 600 per meeting and the Chairman of the Board of Directors EUR 1,200 per

meeting as well as the monthly remuneration to be EUR 1,300 for the members of the Board and EUR 2,600 for the Chairman of the Board.

The Annual General Meeting approved the Financial Statements for the financial year 2008 and discharged the members of the Board of Directors and the CEO from liability.

The auditor elected was PricewaterhouseCoopers Oy, a firm of authorized public accountants, with Mika Kaarisalo APA as the auditor in charge. The fees for the auditor are paid according to invoice.

The Annual General Meeting authorized the Board of Directors to acquire company's own shares in one or more lots using the company's unrestricted equity. A maximum of 2,000,000 of the company's own shares can be acquired. The Board of Directors shall have the right to decide who the shares are acquired from or, the Board of Directors has the right to decide on a directed acquisition of own shares.

The authorization is valid for 18 months from the date of the decision of the Annual General Meeting starting on 26 March 2009 and ending on 26 September 2010. The authorization shall replace the previous authorization.

Dividend

The Annual General Meeting passed a resolution in accordance with the proposal of the Board of Directors to pay a dividend for the 2008 financial year of EUR 0.08 per share, or a total of EUR 1,573,586.30. The remaining profit was retained in non-restricted equity. The record date of the payment of dividend was March 31, 2009. The dividend was paid on April 7, 2009.

The Annual General Meeting authorized the Board of Directors to decide within their discretion on the payment of a possible additional dividend of EUR 0.07 per share, or a total maximum of EUR 1,376,888.00, should the economic situation of the company allow it. The authorization is valid until December 31, 2009. The possible additional dividend based on the decision of the Board of Directors will be paid to the shareholder, who is registered in the shareholders' registry maintained by Euroclear Finland Ltd. on the record date of dividend payment. The Board of Directors will decide on the record date of the dividend payment as well as the payment day of the dividend.

Shares

The Etteplan Oyj share (ETT1V) is quoted in the Nordic NASDAQ OMX's Small Cap market capitalization group in the "Industrials" sector.

The company's share capital on March 31, 2009, was EUR 5,000,000.00, and the number of shares outstanding was 20,179,414. The company has one series of shares. All shares confer an equal right to a dividend and the company's funds.

The company held 509,585 of its own shares on March 31, 2009. During the period under review, the company acquired 10,409 of its own shares and did not dispose any company-held shares.

Outlook

Based on the development of January-March 2009, Etteplan Oyj expects its full-year revenue to be under EUR 130 million. The operating profit for year 2009 is expected to decline substantially but to be positive. Potential acquisitions in 2009 are not included in the estimate.

The weak market situation is still apparent among the forest industry equipment manufacturers and in the car industry where the number of assignments is on low level. Our customers' investment projects continue to be delayed in plant engineering sector. In the energy and power transmission sector and aerospace and defence equipment industry the demand for technical design and product information is estimated to continue at a satisfactory level.

Hollola, on April 29, 2009

Etteplan Oyj

Board of Directors

Additional information: Matti Hyytiäinen, President and CEO, tel. +358 400 710 968

The information presented herein has not been audited.

APPENDIX:

Financial Statement Summary and Notes Consolidated Statement of Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Consolidated Statement of Changes in Equity Key Figures Notes to the Financial Statement Summary

Releases and other corporate information are available on Etteplan's Web site at .

DISTRIBUTION: NASDAQ OMX Helsinki Major media

This interim report includes forward-looking estimates and assumptions. Accordingly, outcomes may deviate from these estimates, which are based on the management's current best knowledge.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(EUR 1 000)	1-3/2009	1-3/2008	1-12/2008
Continuing operations
Revenue	33 734	40 675	161 614
Other operating income	54	50	263
Materials and services	-2 054	-2 508	-12 391
Staff costs	-25 632	-28 002	-110 384
Other operating expenses	-5 432	-6 035	-24 862
Depreciation and amortisation	-445	-453	-1 892
Operating profit	225	3 727	12 349
Financial income	229	30	228
Financial expenses	-263	-185	-1 293
Share of the result of associates	-149	0	0
Profit before taxes	42	3 572	11 285
Income taxes	45	-967	-3 130
Profit for the financial year Continuing operations	87	2 605	8 155
Discontinuing operations
Profit/loss for the financial year, discontinuing operations	0	0	-140
Result for the financial year	87	2 605	8 015
Other comprehensive income
Currency translation differences	-55	151	-4 365
Share of other comprehensive income of associates	0	0	0
Income tax relating to components of other
comprehensive income	0	0	0
Other comprehensive income for the year, net of tax	-55	151	-4 365
Total comprehensive income for the year	32	2 756	3 650
Profit attributable to
Equity holders of the company	81	2 605	7 997
Minority interest	6	0	18
	87	2 605	8 015
Total comprehensive income attributable to
Equity holders of the company	26	2 756	3 632
Minority interest	6	0	18
	32	2 756	3 650
Earnings per share calculated from the result of parent company shareholders
Continuing operations
Basic earnings per share, EUR	0,00	0,13	0,41
Diluted earnings per share, EUR	0,00	0,13	0,41
Discontinuing operations
Basic earnings per share, EUR	0,00	0,00	-0,01
Diluted earnings per share, EUR	0,00	0,00	-0,01
			7(12)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(EUR 1 000)	31.3.2009 31.3.2008		31.12.2008
ASSETS
Non-current assets
Tangible assets	2 311	2 358	2 478
Goodwill	33 055	35 039	33 207
Other intangible assets	1 425	1 538	1 566
Shares in associated companies	286	0	17
Investments available for sales	411	463	411
Other long-term receivables	548	820	551
Deferred tax assets	460	47	191
Non-current assets, total	38 497	40 265	38 421
Current assets
Trade and other receivables	36 752	42 181	37 242
Current tax assets	2 088	281	1 338
Cash and cash equivalents	2 251	2 591	1 879
Current assets, total	41 091	45 054	40 459
TOTAL ASSETS	79 588	85 318	78 880
EQUITY AND LIABILITIES
Capital attributable to equity holders
Share capital	5 000	5 000	5 000
Share premium account	6 701	6 701	6 701
Unrestricted equity fund	2 474	2 474	2 474
Own shares	-2 019	-284	-2 025
Cumulative translation adjustment	-5 243	-672	-5 188
Retained earnings	18 385	11 962	11 962
Profit for the financial year	81	2 605	7 997
Capital attributable to equity holders, total	25 379	27 786	26 921
Minority interest	85	0	79
Equity, total	25 464	27 786	27 000
Non-current liabilities
Deferred tax liability	1 440	1 612	1 537
Non-current interest-bearing liabilities	11 869	9 663	9 981
Non-current liabilities, total	13 309	11 275	11 517
Current liabilities
Current interest-bearing liabilities	11 801	9 513	6 635
Trade and other payables	28 103	35 552	33 425
Current income tax liabilities	910	1 193	303
Current liabilities, total	40 815	46 257	40 363
Liabilities, total	54 123	57 532	51 880
TOTAL EQUITY AND LIABILITIES	79 588	85 318	78 880

CONSOLIDATED STATEMENT OF CASH FLOWS

(EUR 1 000)	1-3/2009	1-3/2008	1-12/2008
Operating cash flow
Cash receipts from customers	34 625	34 205	158 729
Cash receipts from other operating income	42	50	245
Operating expenses paid	40 899	35 047	143 861
Operating cash flow before financial items and taxes	-6 232	-792	15 113
Interest and payment paid for financial expenses	167	177	1 131
Interest received	56	30	228
Income taxes paid	292	1 289	5 055
Operating cash flow (A)	-6 635	-2 228	9 155
Investing cash flow
Purchase of tangible and intangible assets	24	589	1 774
Acquisition of subsidiaries	0	5 482	7 582
Proceeds from sale of tangible and intangible assets	31	22	60
Proceeds from sale of investments	0	0	47
Investing cash flow (B)	7	-6 049	-9 249
Cash flow after investments (A + B)	-6 628	-8 277	-94
Financing cash flow
Purchase of own shares	44	723	2 523
Short-term loans, increase	5 168	7 026	3 437
Long-term loans, increase	2 506	9	2 544
Long-term loans, decrease	622	2 703	4 007
Dividend paid and other profit distribution	0	0	4 225
Financing cash flow (C)	7 009	3 609	-4 774
Variation in cash (A + B + C) increase (+) / decrease (-)	380	-4 668	-4 868
Assets in the beginning of the period	1 879	7 243	7 243
Exchange gains or losses on cash and bank equivalents	-9	17	-496
Assets at the end of the period	2 251	2 591	1 879

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Legends for table columns

• A) Share Capital
• B) Share Premium Account
• C) Unrestricted Equity Fund
• D) Own shares
• E) Cumulative Translation Adjustment
• F) Retained Earnings
• G) Total
• H) Minority Interest
• I) Equity total

(EUR 1 000)	A	B	C	D	E	F	G	H	I
Equity 1.1.2008	5 000	6 701	2 601	-962	-823		16 187 28 704	597	29 301
Dividends						-4 225	-4 225		-4 225
Purchase of own shares				-2 523			-2 523		-2 523
Disposal of own shares			-127	1 401			1 274		1 274
Shares to be issued				59			59		59
Changes in ownership								-536	-536
Comprehensive income for the
financial year					-4 365	7 997	3 632	18	3 650
Equity 31.12.2008	5 000	6 701	2 474	-2 025	-5 188		19 959 26 921	79	27 000
(EUR 1 000)	A	B	C	D	E	F	G	H	I
Equity 1.1.2009	5 000	6 701	2 474	-2 025	-5 188		19 959 26 921	79	27 000
Dividends						-1 574	-1 574		-1 574
Purchase of own shares				-44			-44		-44
Disposal of own shares							0		0
Shares to be issued				50			50		50
Changes in ownership							0		0
Comprehensive income for the
financial year					-55	81	26	6	32
Equity 31.3.2009	5 000	6 701	2 474	-2 019	-5 243		18 466 25 379	85	25 464

(EUR 1 000)	A	B	C	D	E	F	G	H	I
Equity 1.1.2008	5 000	6 701	2 601	-962	-823		16 187 28 704	597	29 301
Dividends						-4 225	-4 225		-4 225
Purchase of own shares				-723			-723		-723
Disposal of own shares			-127	1 401			1 274		1 274
Changes in ownership							0	-597	-597
Comprehensive income for the financial period					151	2 605	2 756	0	2 756
Equity 31.3.2008	5 000	6 701	2 474	-284	-672		14 567 27 786	0	27 786

KEY FIGURES

				Change to
(EUR 1 000)	1-3/2009	1-3/2008	1-12/2008	prev.year
Revenue	33 734	40 675	161 614	-17,1 %
Operating profit	225	3 727	12 349	-94,0 %
Operating profit, %	0,7	9,2	7,6
Profit before taxes	42	3 572	11 285	-98,8 %
Profit before taxes, %	0,1	8,8	7,0
Return on equity, %	1,3	36,5	29,0
Return on investment, %	2,6	33,0	28,7
Equity ratio %	32,1	32,8	34,2
Gross interest-bearing debt	23 670	19 176	16 615	23,4 %
Net gearing, %	84,1	59,7	54,6
Balance sheet, total	79 588	85 318	78 880	-6,7 %
Gross investments	168	8 109	12 082	-97,9 %
Earnings per share, EUR	0,00	0,13	0,41	-96,8 %
Diluted earnings per share, EUR	0,00	0,13	0,41	-96,8 %
Equity per share, EUR	1,29	1,39	1,37	-6,9 %
Personnel, average	2 144	2 220	2 188	-3,4 %
Personnel at end of the period	2 107	2 239	2 142	-5,9 %

*) Return on investment has been calculated from result before taxes

NOTES TO THE FINANCIAL STATEMENT SUMMARY

General

The parent company of Etteplan Group is Etteplan Oyj ("the Company"), a Finnish public limited company established under Finnish law. The Company is domiciled in Hollola. The Company's shares are quoted on the exchange of NASDAQ OMX Helsinki Ltd.

Etteplan Oyj and its subsidiaries provide high-quality industrial technology design services. The Group's main market area is Europe. For our core customers, Etteplan's services extend worldwide.

The Etteplan Oyj Board of Directors approved the interim report for publication at its meeting of April 28, 2009.

Basis for preparation

The interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting) and the preparation and accounting policies presented in the 2008 annual financial statements, but not all requirements of the IAS 34 standard for interim financial reporting have been followed in the accounting.

Monetary figures in the interim report are presented in thousands of euros. All figures in the tables have been rounded up or down, due to which the sums of figures may deviate from the sum totals presented.

In interim report the accounting principles used were the same as for the 2008 annual financial statements. The annual financial statements are available at http://etteplan.smartpage.fi/en/annualreport08/, and the accounting policy is detailed on pages

28–33 of the annual report 2008.

Income taxes

The taxes listed in the consolidated statement of comprehensive income have been calculated with the tax rate appropriate for the projected full-year result. The estimated average effective tax rate for the year has been set separately for each relevant country.

Risks

Etteplan´s financial results are exposed to number of strategic, operational and financial risks.

The official impairment testing is done on yearly basis in the last quarter of the year. Etteplan Group´s most significant goodwill are related to the Swedish operations. Due to the reorganization in Sweden, the current impairment test shows no reason for goodwill write-down.

A detailed risk analysis can be found in Etteplan´s annual report 2008.