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Etteplan Oyj Interim / Quarterly Report 2011
3264_rns_2011-08-11_6e035908-a558-48a3-9cde-d3c7b768277a.pdf
Interim / Quarterly Report
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Emneet
Etteplan's Interim Report
January-June 2011
Growth continued
Smart way to smart products
Etteplan
ETTEPLAN OYJ INTERIM REPORT
AUGUST 11, 2011, at 2:00 P.M.
ETTEPLAN Q2: GROWTH CONTINUED
Review period April-June 2011
- The Group's revenue for continuing operations grew 14.4% and was EUR 30.6 million (4-6/2010: EUR 26.8 million).
- Operating profit for continuing operations was EUR 1.9 million (EUR 1.9 million).
- Profit for the period for continuing operations was EUR 1.2 million (EUR 1.2 million).
- Operating cash flow was EUR 1.3 million (EUR 1.8 million).
- Earnings per share for continuing operations were EUR 0.06 (EUR 0.06).
- The number of personnel at the end of the period was 1,651 (1,483).
- Company keeps its estimate for outlook 2011 the same.
Review period January-June 2011
- The Group's revenue for continuing operations grew 16.8% and was EUR 60.3 million (1-6/2010: EUR 51.6 million).
- Operating profit for continuing operations was EUR 3.0 million (EUR 3.0 million).
- Profit for the period for continuing operations was EUR 1.9 million (EUR 1.9 million).
- Operating cash flow was EUR -0.9 million (EUR -0.9 million).
- Earnings per share for continuing operations were EUR 0.09 (EUR 0.08).
Outlook 2011
Current market outlook of machinery and equipment manufacturers is positive. The development of Etteplan's customers' order books influences quickly the development of Etteplan's revenue.
We expect the revenue and operating profit for the year 2011 to grow compared to year 2010.
Potential acquisitions in 2011 are not included in the estimate.
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Key figures *)
| (EUR 1 000) | 4-6/2011 | 4-6/2010 | 1-6/2011 | 1-6/2010 | 1-12/2010 |
|---|---|---|---|---|---|
| Revenue | 30,648 | 26,782 | 60,293 | 51,635 | 104,786 |
| Operating profit/loss | 1,870 | 1,859 | 3,029 | 2,984 | 6,054 |
| Operating profit/loss, % | 6.1 | 6.9 | 5.0 | 5.8 | 5.8 |
| Profit/loss for the period | 1,153 | 1,211 | 1,890 | 1,903 | 4,347 |
| Profit/loss for the period, % | 3.8 | 4.5 | 3.1 | 3.7 | 4.1 |
| Equity ratio, % | 43.1 | 42.6 | 43.1 | 42.6 | 43.6 |
| Net gearing, % | 42.2 | 30.4 | 42.2 | 30.4 | 24.1 |
| Total assets | 66,107 | 61,775 | 66,107 | 61,775 | 67,653 |
*) continuing operations
Matti Hyytiäinen, President and CEO of Etteplan Oyj, comments on the interim report:
"Business operations of Etteplan's central customers continued to develop favorably and as a consequence demand for our company's design services remained at a good level in the review period.
Our company's revenue grew 14 per cent in the review period. Operating profit was at the same level with the comparison period, but improved compared to the beginning of the year. Operating profit for business operations in Sweden developed favorably compared to the previous quarter. However, it still remained at a low level. Measures to develop the profitability of operations in Sweden continue.
We continued recruitment in all our market areas. The utilization rate of design capacity was at a good level and we estimate that the utilization rate of capacity will remain at a good level during the rest of the year. Rationalization measures executed in the beginning of the year will improve profitability towards the end of the year."
Accounting principles
The interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting) standard and the preparation and accounting policies presented in the 2010 annual financial statements.
REVIEW FOR APRIL-JUNE 2011
Business review for April-June
Increased demand for design services continued further in the second quarter of the year. The strongest growth areas in design services and technical product information were equipment manufacturers for mining industry and aerospace and defence equipment industry. In other customer industries the growth continued to be stable and demand was at a good level. The utilization rate of Etteplan's design capacity remained at the beginning of the year's good level during the review period.
In Etteplan's units in Finland personnel turnover remained at a low level and recruitment needed for growth succeeded well. In Etteplan's units in Sweden personnel turnover remained at the beginning of the year's increased level and continued to influence the profitability of business in Sweden. The recruitment of new employees continued during the review period and the number of personnel in Sweden remained at comparison period's level.
Price negotiations conducted in the beginning of the year in Sweden impacted business' profitability positively in the second quarter of the year. The improvement in profitability was also influenced by the company's internal development measures.
In Etteplan's units in China, provision of offshoring services as well as local sales to new customers in China strengthened. Also Etteplan's new so called build-operate-transfer (BOT) -service, implemented in China, attained its first customers. Etteplan's BOT-service covers building and starting of customer's
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technical design operations and product information management in China. New customers in China are significant openings to the local business for Etteplan, but the results will be visible as revenue growth only in long run.
I3Tex AB which provides design services for automotive industry filed an application for corporate restructuring to Gothenburg's district court in June. Etteplan's holding in I3Tex AB is 19.9 per cent. The reason for applying for corporate restructuring is financial difficulties of some of the company's customers. Cool Engineering AB, a fully owned subsidiary of Etteplan, is one of the I3Tex AB creditors.
Etteplan and Wallac Oy, a part of PerkinElmer Inc., signed a frame agreement regarding transfer of instrument development unit's technical product information operations to Etteplan in the review period. The agreement guarantees availability of instrument development unit's technical product information services cost effectively, competently and flexibly to Wallac Oy.
Etteplan received an assignment from Firotec Oy from town of Outokumpu in the period under review. Etteplan designs conveyors and related steel construction for material handling system to Outokumpu Oyj's Kemi mine. The project is related to the expansion of Outokumpu's Tornio plant where ferrochrome's production is doubled. Firotec Oy is one of the leading suppliers of conveyors and material handling systems for mining and process industry in Finland.
Financial development for April-June
Etteplan's revenue for continuing operations in April-June 2011 grew 14.4 per cent and amounted to EUR 30.6 million (4-6/2010: EUR 26.8 million).
Operating profit for continuing operations was EUR 1.9 million (4-6/2010: EUR 1.9 million).
REVIEW FOR JANUARY-JUNE 2011
Business review for January-June
Business environment developed favorably during the review period as demand for design services developed steadily throughout the beginning of the year. Demand for design services and technical product information services grew most among the equipment manufacturers for mining industry. Despite the significant growth in the beginning of the year the level of peak year 2008 demand will not be reached in year 2011 although the demand would continue at same level with the beginning of the year. Transfer of demand growth's focus to growth markets geographically located outside Europe showed as clear development trend during the review period.
Business operations in Finland developed steadily throughout the beginning of year. Utilization rate of design capacity was at a good level and the recruitment of new personnel, prerequisite for growth, did not set obstacles for growth in Finland.
In Sweden, design services' price development was slower than the increase of other cost level. In addition, the personnel turnover, that had remained at a high level, influenced the development of business growth and profitability negatively throughout the beginning of the year. During the second quarter of the year the profitability did improve compared to the first quarter of the year as the prices improved.
Operations in Etteplan's units in China developed steadily throughout the beginning of the year as the clientele gained strength covering growing number of new customers.
Revenue
Etteplan's revenue for continuing operations in the first half of the year grew 16.8 per cent and amounted to EUR 60.3 million (1-6/2010: EUR 51.6 million).
Result
The operating profit for continuing operations was EUR 3.0 million (1-6/2010: EUR 3.0 million).
Profit for the period for continuing operations before taxes was EUR 2.7 million (1-6/2010: EUR 2.7 million). Taxes amounted to EUR 0.8 million (EUR 0.8 million). The income tax calculated on profit before taxes in the consolidated income statement was 29.0% (28.6%).
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Profit for the period for continuing operations was EUR 1.9 million (1-6/2010: EUR 1.9 million). Earnings per share for continuing operations were EUR 0.09 (EUR 0.08). Equity per share was EUR 1.44 (EUR 1.33). The return on investment was 15.2% (16.5%).
Result for the review period was EUR 1.9 million (1-6/2010: EUR 2.3 million).
Financial position and cash flow
Total assets on June 30, 2011, were EUR 66.1 million (December 31, 2010: EUR 67.7 million). Goodwill on the balance sheet was EUR 35.4 million (December 31, 2010: EUR 36.0 million). The Group's cash and cash equivalents stood at EUR 1.4 million (December 31, 2010: EUR 5.0 million). The Group's financial liabilities amounted to EUR 13.4 million (December 31, 2010: EUR 12.1 million) at period end. The total number of unused short term credit facilities is EUR 13.0 million. The equity ratio was 43.1% (December 31, 2010: 43.6%). Operating cash flow was EUR -0.9 million (1-6/2010: EUR -0.9 million). The cash flow after investments was EUR -2.4 million (1-6/2010: EUR -2.2 million).
Capital expenditures
The Group's gross investments came to EUR 1.1 million (1-6/2010: EUR 0.8 million).
Personnel
The number of the Group's personnel averaged 1,598 (1-6/2010: 1,502) during the review period and was 1,651 (June 30, 2010: 1,483) at period end. The Group employed 639 (June 30, 2010: 526) people abroad at the end of the period.
Incentive plan for key personnel
The Board of Directors of Etteplan Oyj decided on a new share-based incentive plan for the Group key personnel in March 2011. The plan includes three earning periods, calendar years 2011, 2012 and 2013. The Board of Directors shall decide on the earnings criteria and on targets to be established for them for each earning period. During the earning period 2011, approximately 16 people belong to the target group of the plan. The earnings criteria of the earning period 2011 are the Etteplan Group's operating profit (EBIT) and revenue.
The rewards to be paid on the basis of the plan from all earning periods 2011, 2012 and 2013 will correspond to the value of an approximate maximum total of 810,000 Etteplan Oyj shares (including also the proportion to be paid in cash).
Estimate of operating risks and uncertainty factors
Etteplan's financial results are exposed to number of strategic, operational and financial risks.
The risk caused by the economic development on the whole increased in the review period. The potential unpredicted changes in customers' business caused an increased risk for Etteplan's business. The risk grew in the review period compared to the previous quarter of the year.
The company's business is based on professional personnel. The availability of competent professionals is an important factor to secure profitable growth and business. In the review period, the availability of competent personnel in Sweden was an increased risk for business.
In other parts, the Group's risks have remained unchanged.
A detailed risk analysis can be found in Etteplan's annual report 2010.
Annual General Meeting
The Annual General Meeting of Shareholders of Etteplan Oyj was held at the premises of the Company in Vantaa on March 31, 2011. In accordance with the proposal of the Board of Directors' Nomination and Remuneration Committee the Annual General Meeting re-elected Tapio Hakakari, Heikki Hornborg, Robert Ingman, Pertti Nupponen, Satu Rautavalta and Teuvo Rintamäki to the Board.
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The Annual General Meeting approved the Financial Statements for financial year 2010 and discharged members of the Board of Directors and the CEO from liability.
The auditor elected was PricewaterhouseCoopers Oy, Authorized Public Accounting Firm, with Authorized Public Accountant Mr. Mika Kaarisalo as the main responsible auditor. The fee for the auditor is paid according to invoice approved by the Company.
The Annual General Meeting authorized the Board of Directors to resolve to repurchase Company's own shares in one or more tranches using the Company's unrestricted equity. A maximum of 2,000,000 Company shares may be repurchased. The Company may deviate from the obligation to repurchase shares in proportion to the shareholders' holdings, i.e., the Board has the right to decide on a directed repurchase of Company shares.
The authorization includes the right for the Board to resolve to repurchase Company shares through a tender offer made to all shareholders on equal terms and conditions and at the price determined by the Board; or in public trading organized by the NASDAQ OMX Helsinki Ltd. at the market price valid at any given time, so that the Company's total holding of own shares does not exceed ten (10) per cent of all the shares in the Company. The minimum price for the shares to be repurchased is the lowest market price quoted for the Company shares in public trading and, correspondingly, the maximum price is the highest market price quoted for the Company shares in public trading during the validity of the authorization.
Should Company shares be repurchased in public trading, such shares will not be purchased in proportion to the current shareholders' holdings. Thus, there must be a substantial financial reason for the Company to repurchase Company shares. The shares may be repurchased in order to be used as consideration in potential acquisitions or in other structural arrangements. The shares may as well be used for carrying out Company's incentive schemes for its personnel. The repurchased shares may be kept by the Company, invalidated or transferred onwards.
The repurchase of shares will reduce the non-restricted equity.
The authorization is valid for 18 months from the date of the resolution of the Annual General Meeting starting on March 31, 2011 and ending on September 30, 2012. The authorization will replace the corresponding previous authorization.
Dividend
The Annual General Meeting passed a resolution, in accordance with the proposal of the Board of Directors, that a dividend of EUR 0.10 per share is paid for the financial year 2010. The remaining funds shall be left to the unrestricted equity. The dividend will be paid to the shareholders registered on the record date in the shareholders' register maintained by Euroclear Finland Ltd. The record date of the payment of dividend was April 5, 2011. The dividend was paid on April 12, 2011.
Shares
Etteplan's shares are listed in NASDAQ OMX Helsinki Oy's Small Cap market capitalization group in the Industrials sector under the ETT1V ticker.
The company's share capital on June 30, 2011 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 471,302 of its own shares on June 30, 2011. During the period under review, the company did not acquire nor dispose any company-held shares.
Outlook 2011
Current market outlook of machinery and equipment manufacturers is positive. The development of Etteplan's customers' order books influences quickly the development of Etteplan's revenue.
We expect the revenue and operating profit for the year 2011 to grow compared to year 2010.
Potential acquisitions in 2011 are not included in the estimate.
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Financial information in 2011
Etteplan Oyj's next interim report will be published:
Third quarter results, 9 months
Monday November 7, 2011
Hollola, August 11, 2011
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.
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Etteplan
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
- Notes to the Financial Statement Summary
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
This interim report includes forward-looking estimates and assumptions. Accordingly, outcomes may deviate from these estimates, which are based on the management's best knowledge at the time of interim report.
Etteplan is a specialist in industrial equipment engineering and technical product information solutions and services. Our customers are global leaders in their fields and operate in areas like the automotive, aerospace and defence industries as well as the electricity generation and power transmission sectors, and material flow management.
Etteplan has comprehensive competence in electronics and embedded systems development, automation and electrical design, mechanical design and technical product information solutions and services. In 2010, Etteplan had turnover of EUR 104.8 million. The company currently has approximately 1,600 employees. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| (EUR 1 000) | 4-6/2011 | 4-6/2010 | 1-6/2011 | 1-6/2010 | 1-12/2010 |
|---|---|---|---|---|---|
| Continuing operations | |||||
| Revenue | 30 648 | 26 782 | 60 293 | 51 635 | 104 786 |
| Other operating income | 85 | 442 | 163 | 519 | 1 161 |
| Materials and services | -1 956 | -2 670 | -3 899 | -4 549 | -9 847 |
| Staff costs | -21 542 | -18 646 | -43 317 | -36 876 | -73 368 |
| Other operating expenses | -4 971 | -3 689 | -9 436 | -7 024 | -15 185 |
| Depreciation and amortization | -394 | -360 | -775 | -721 | -1 494 |
| Operating profit/loss | 1 870 | 1 859 | 3 029 | 2 984 | 6 054 |
| Financial income | 26 | 107 | 104 | 318 | 761 |
| Financial expenses | -278 | -127 | -508 | -327 | -758 |
| Share of the result of associates | 6 | -157 | 33 | -308 | -291 |
| Profit/loss before taxes | 1 624 | 1 682 | 2 658 | 2 667 | 5 766 |
| Income taxes | -471 | -471 | -768 | -764 | -1 420 |
| Profit/loss for the financial year, continuing operations | 1 153 | 1 211 | 1 890 | 1 903 | 4 347 |
| Discontinuing operations | |||||
| Profit/loss for the financial year, discontinuing operations | 0 | 396 | 0 | 360 | 102 |
| Profit/loss for the financial year | 1 153 | 1 607 | 1 890 | 2 263 | 4 448 |
| Other comprehensive income | |||||
| Currency translation differences | -704 | 378 | -650 | 1 455 | 2 620 |
| Change in fair value of investments available for sale | -11 | 0 | -7 | 0 | 139 |
| Other comprehensive income, net of tax | -715 | 378 | -657 | 1 455 | 2 759 |
| Total comprehensive income/expense for the year | 438 | 1 985 | 1 233 | 3 718 | 7 208 |
| Income/expense attributable to | |||||
| Equity holders of the company | 1 159 | 1 594 | 1 922 | 2 241 | 4 422 |
| Non-controlling interests | -6 | 13 | -32 | 22 | 27 |
| 1 153 | 1 607 | 1 890 | 2 263 | 4 448 | |
| Total comprehensive income/expense attributable to | |||||
| Equity holders of the company | 451 | 1 981 | 1 264 | 3 698 | 7 159 |
| Non-controlling interests | -13 | 4 | -31 | 21 | 49 |
| 438 | 1 985 | 1 233 | 3 718 | 7 208 | |
| Earnings per share calculated from the result attributable to equity holders of the parent company | |||||
| Continuing operations | |||||
| Basic earnings per share, EUR | 0,06 | 0,06 | 0,09 | 0,08 | 0,19 |
| Diluted earnings per share, EUR | 0,06 | 0,06 | 0,09 | 0,08 | 0,19 |
| Discontinuing operations | |||||
| Basic earnings per share, EUR | 0,00 | 0,02 | 0,00 | 0,02 | 0,01 |
| Diluted earnings per share, EUR | 0,00 | 0,02 | 0,00 | 0,02 | 0,01 |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| (EUR 1 000) | 30.6.2011 | 30.6.2010 | 31.12.2010 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Tangible assets | 2 107 | 1 650 | 1 625 |
| Goodwill | 35 400 | 32 730 | 36 028 |
| Other intangible assets | 810 | 861 | 967 |
| Shares in associated companies | 50 | 0 | 18 |
| Investments available-for-sale | 610 | 690 | 620 |
| Other long-term receivables | 4 | 3 | 4 |
| Deferred tax assets | 280 | 618 | 476 |
| Non-current assets, total | 39 261 | 36 552 | 39 738 |
| Current assets | |||
| Trade and other receivables | 25 399 | 21 812 | 22 894 |
| Current tax assets | 0 | 21 | 4 |
| Cash and cash equivalents | 1 447 | 3 389 | 5 018 |
| Current assets, total | 26 846 | 25 223 | 27 916 |
| TOTAL ASSETS | 66 107 | 61 775 | 67 653 |
| 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 | 2 584 | 2 586 | 2 584 |
| Own shares | -1 936 | -1 930 | -1 958 |
| Cumulative translation adjustment | -583 | -1 077 | 63 |
| Other reserves | 10 132 | 10 000 | 10 139 |
| Retained earnings | 4 525 | 2 591 | 2 312 |
| Profit/loss for the financial year | 1 923 | 2 263 | 4 422 |
| Capital attributable to equity holders, total | 28 346 | 26 134 | 29 264 |
| Non-controlling interests | 70 | 155 | 101 |
| Equity, total | 28 416 | 26 289 | 29 365 |
| Non-current liabilities | |||
| Deferred tax liabilities | 245 | 146 | 264 |
| Financial liabilities | 5 545 | 6 715 | 6 780 |
| Non-current liabilities, total | 5 790 | 6 861 | 7 044 |
| Current liabilities | |||
| Financial liabilities | 7 898 | 4 674 | 5 322 |
| Trade and other payables | 23 465 | 22 752 | 25 085 |
| Reserves | 0 | 733 | 106 |
| Current income tax liabilities | 538 | 465 | 731 |
| Current liabilities, total | 31 901 | 28 624 | 31 244 |
| Liabilities, total | 37 691 | 35 485 | 38 288 |
| TOTAL EQUITY AND LIABILITIES | 66 107 | 61 775 | 67 653 |
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CONSOLIDATED STATEMENT OF CASH FLOWS
| (EUR 1 000) | 1-6/2011 | 1-6/2010 | 1-12/2010 |
|---|---|---|---|
| Operating cash flow | |||
| Cash receipts from customers | 57 216 | 49 330 | 102 248 |
| Operating expenses paid | -57 129 | -49 990 | -99 027 |
| Operating cash flow before financial items and taxes | 87 | -660 | 3 221 |
| Interest and payment paid for financial expenses | -286 | -225 | -1 582 |
| Interest received | 39 | 18 | 32 |
| Income taxes paid | -700 | -18 | -166 |
| Operating cash flow (A) | -860 | -885 | 1 505 |
| Investing cash flow | |||
| Purchase of tangible and intangible assets | -151 | -83 | -768 |
| Acquisition of subsidiaries | -1 343 | -1 700 | -2 320 |
| Acquisition of associates | 0 | -94 | -113 |
| Proceeds from sale of tangible and intangible assets | 4 | 27 | 27 |
| Loan receivables, decrease | 0 | 523 | 1 065 |
| Proceeds from sale of investments | 0 | 1 | 2 |
| Investing cash flow (B) | -1 490 | -1 326 | -2 107 |
| Cash flow after investments (A + B) | -2 350 | -2 211 | -602 |
| Financing cash flow | |||
| Short-term loans, increase | 2 443 | 1 135 | 513 |
| Short-term loans, decrease | 0 | -521 | -207 |
| Long-term loans, increase | 0 | 0 | 2 165 |
| Long-term loans, decrease | -1 614 | -1 147 | -3 336 |
| Dividend paid and other profit distribution | -1 971 | -784 | -788 |
| Financing cash flow (C) | -1 142 | -1 317 | -1 653 |
| Variation in cash (A + B + C) increase (+) / decrease (-) | -3 492 | -3 528 | -2 255 |
| Assets in the beginning of the period | 5 017 | 6 650 | 6 650 |
| Exchange gains or losses on cash and cash equivalents | -78 | 267 | 622 |
| Assets at the end of the period | 1 447 | 3 389 | 5 017 |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Legends for table columns
A) Share Capital
B) Share Premium Account
C) Unrestricted Equity Fund
D) Other reserves
E) Own Shares
F) Cumulative Translation Adjustment
G) Retained Earnings
H) Total
I) Non-controlling interests
J) Equity total
| (EUR 1 000) | A | B | C | D | E | F | G | H | I | J |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity 1.1.2010 | 5 000 | 6 701 | 2 590 | 10 000 | -1 949 | -2 534 | 3 745 | 23 554 | 135 | 23 689 |
| Comprehensive income | ||||||||||
| Profit/loss for the financial year | 0 | 0 | 0 | 0 | 0 | 0 | 4 422 | 4 422 | 27 | 4 448 |
| Fair value reserve available-for-sale assets | 0 | 0 | 0 | 139 | 0 | 0 | 0 | 139 | 0 | 139 |
| Cumulative translation adjustment | 0 | 0 | 0 | 0 | 0 | 2 597 | 0 | 2 597 | 23 | 2 619 |
| Total comprehensive income/expense for the year | 0 | 0 | 0 | 139 | 0 | 2 597 | 4 422 | 7 158 | 49 | 7 207 |
| Transactions with owners | ||||||||||
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | -788 | -788 | 0 | -788 |
| Purchase of own shares | 0 | 0 | 0 | 0 | -9 | 0 | 0 | -9 | 0 | -9 |
| Share based incentive plan | 0 | 0 | -6 | 0 | 0 | 0 | 10 | 4 | 0 | 4 |
| Hybrid loan | 0 | 0 | 0 | 0 | 0 | 0 | -654 | -654 | 0 | -654 |
| Changes in ownership | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -83 | -83 |
| Transactions with owners, total | 0 | 0 | -6 | 0 | -9 | 0 | -1 433 | -1 447 | -83 | -1 531 |
| Equity 31.12.2010 | 5 000 | 6 701 | 2 584 | 10 139 | -1 958 | 63 | 6 734 | 29 264 | 101 | 29 365 |
Etteplan
| (EUR 1 000) | A | B | C | D | E | F | G | H | I | J |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity 1.1.2011 | 5 000 | 6 701 | 2 584 | 10 139 | -1 958 | 63 | 6 734 | 29 264 | 101 | 29 365 |
| Comprehensive income | ||||||||||
| Profit/loss for the financial year | 0 | 0 | 0 | 0 | 0 | 0 | 1 923 | 1 923 | -32 | 1 890 |
| Fair value reserve available-for-sale assets | 0 | 0 | 0 | -7 | 0 | 0 | 0 | -7 | 0 | -7 |
| Cumulative translation adjustment | 0 | 0 | 0 | 0 | 0 | -646 | -6 | -652 | 2 | -650 |
| Total comprehensive income/expense for the year | 0 | 0 | 0 | -7 | 0 | -646 | 1 917 | 1 264 | -30 | 1 233 |
| Transactions with owners | ||||||||||
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | -1 971 | -1 971 | 0 | -1 971 |
| Share based incentive plan | 0 | 0 | 0 | 0 | 22 | 0 | 0 | 22 | 0 | 22 |
| Hybrid loan | 0 | 0 | 0 | 0 | 0 | 0 | -233 | -233 | 0 | -233 |
| Transactions with owners, total | 0 | 0 | 0 | 0 | 22 | 0 | -2 204 | -2 182 | 0 | -2 182 |
| Equity 30.6.2011 | 5 000 | 6 701 | 2 584 | 10 132 | -1 936 | -583 | 6 447 | 28 346 | 71 | 28 416 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (EUR 1 000) | A | B | C | D | E | F | G | H | I | J |
| Equity 1.1.2010 | 5 000 | 6 701 | 2 590 | 10 000 | -1 949 | -2 534 | 3 745 | 23 554 | 135 | 23 689 |
| Comprehensive income | ||||||||||
| Profit/loss for the financial year | 0 | 0 | 0 | 0 | 0 | 0 | 2 241 | 2 241 | 22 | 2 263 |
| Cumulative translation adjustment | 0 | 0 | 0 | 0 | 0 | 1 457 | 0 | 1 457 | -2 | 1 455 |
| Total comprehensive income/expense for the year | 0 | 0 | 0 | 0 | 0 | 1 457 | 2 241 | 3 698 | 20 | 3 718 |
| Transactions with owners | ||||||||||
| Dividends | 0 | 0 | 0 | 0 | 0 | 0 | -788 | -788 | 0 | -788 |
| Purchase of own shares | 0 | 0 | 0 | 0 | -6 | 0 | 0 | -6 | 0 | -6 |
| Share based incentive plan | 0 | 0 | -4 | 0 | 24 | 0 | 6 | 26 | 0 | 26 |
| Hybrid loan | 0 | 0 | 0 | 0 | 0 | 0 | -350 | -350 | 0 | -350 |
| Transactions with owners, total | 0 | 0 | -4 | 0 | 18 | 0 | -1 132 | -1 118 | 0 | -1 118 |
| Equity 30.6.2010 | 5 000 | 6 701 | 2 586 | 10 000 | -1 931 | -1 077 | 4 854 | 26 134 | 155 | 26 289 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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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.
Etteplan is a specialist in industrial equipment engineering and technical product information solutions and services. Our customers are global leaders in their fields and operate in areas like the automotive, aerospace and defence industries as well as the electricity generation and power transmission sectors, and material flow management.
Etteplan has comprehensive competence in electronics and embedded systems development, automation and electrical design, mechanical design and technical product information solutions and services.
In 2010, Etteplan had turnover of EUR 104.8 million. The company currently has approximately 1,600 employees. Etteplan's shares are listed on NASDAQ OMX Helsinki Ltd under the ETT1V ticker.
The Etteplan Oyj Board of Directors approved the interim report for publication at its meeting of August 11, 2011.
Basis for preparation
The interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting) standard and the preparation and accounting policies presented in the 2010 annual financial statements.
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 2010 annual financial statements. The annual financial statements are available at http://www.etteplan.com/investors/annual-and-interim-reports/2011.aspx and the accounting policy is detailed on pages 28–32 of the annual report 2010. Formulas for the key figures are detailed on page 52 of the annual report 2010.
Use of estimates
This interim report includes forward-looking estimates and assumptions. Accordingly, outcomes may deviate from these estimates, which are based on the management's best knowledge at the time of interim report.
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Etteplan
KEY FIGURES
| (EUR 1 000) | 1-6/2011 | 1-6/2010 | 1-12/2010 | Change to prev.year |
|---|---|---|---|---|
| Revenue | 60 293 | 51 635 | 104 786 | 16,8 % |
| Operating profit/loss | 3 029 | 2 984 | 6 054 | 1,5 % |
| Operating profit/loss, % | 5,0 | 5,8 | 5,8 | |
| Profit/loss before taxes | 2 659 | 2 667 | 5 766 | -0,3 % |
| Profit/loss before taxes, % | 4,4 | 5,2 | 5,5 | |
| Return on equity, % | 13,1 | 15,2 | 16,4 | |
| Return on investment, % *) | 15,2 | 16,5 | 17,0 | |
| Equity ratio, % | 43,1 | 42,6 | 43,6 | |
| Gross interest-bearing debt | 13 442 | 11 388 | 12 102 | 18,0 % |
| Net gearing, % | 42,2 | 30,4 | 24,1 | |
| Balance sheet, total | 66 107 | 61 775 | 67 653 | 7,0 % |
| Gross investments | 1 149 | 821 | 2 538 | 40,0 % |
| Earnings per share, EUR | 0,09 | 0,08 | 0,19 | 12,5 % |
| Diluted earnings per share, EUR | 0,09 | 0,08 | 0,19 | 12,5 % |
| Equity per share, EUR | 1,44 | 1,33 | 1,48 | 8,3 % |
| Personnel, average | 1 598 | 1 502 | 1 594 | 6,4 % |
| Personnel at end of the period | 1 651 | 1 483 | 1 569 | 11,3 % |
*) Return on investment has been calculated from result before taxes
REVENUE AND OPERATING PROFIT QUARTERLY
| (EUR 1 000) | 1-3/2011 | 4-6/2011 |
|---|---|---|
| Revenue | 29 645 | 30 648 |
| Operating profit | 1 159 | 1 870 |
| % of revenue | 3,9 | 6,1 |
Etteplan
TANGIBLE AND INTANGIBLE ASSETS
| (EUR 1 000) | Property, plant, equipment | Goodwill | Other intangible assets |
|---|---|---|---|
| Acquisition cost 1.1.2011 | 12 828 | 36 028 | 6 117 |
| Exchange difference | -82 | -628 | -92 |
| Increases | 1 080 | 0 | 70 |
| Decreases | -16 | 0 | 0 |
| Reclassifications between items | -4 | 0 | 0 |
| Acquisition cost 30.6.2011 | 13 806 | 35 400 | 6 095 |
| Accumulated depreciation and impairment 1.1.2011 | -11 203 | 0 | -5 150 |
| Exchange difference | 71 | 0 | 74 |
| Depreciation on reclassifications and disposals | 1 | 0 | 0 |
| Depreciation | -567 | 0 | -208 |
| Accumulated depreciation and impairment 30.6.2011 | -11 698 | 0 | -5 284 |
| Book value 30.6.2011 | 2 108 | 35 400 | 811 |
| Acquisition cost 1.1.2010 | 11 255 | 31 184 | 5 573 |
| Exchange difference | 172 | 1 556 | 30 |
| Increases | 666 | 0 | 58 |
| Decreases | -2 | -10 | -1 |
| Acquisition cost 30.6.2010 | 12 091 | 32 730 | 5 660 |
| Accumulated depreciation and impairment 1.1.2010 | -9 796 | 0 | -4 531 |
| Exchange difference | -159 | 0 | -26 |
| Depreciation on disposals | -7 | 0 | 0 |
| Depreciation | -479 | 0 | -242 |
| Accumulated depreciation and impairment 30.6.2010 | -10 441 | 0 | -4 799 |
| Book value 30.6.2010 | 1 650 | 32 730 | 861 |
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Etteplan
FINANCIAL LIABILITIES
| (EUR 1 000) | 30.6.2011 | 30.6.2010 | 31.12.2010 |
|---|---|---|---|
| Non-current | 5 545 | 6 715 | 6 780 |
| Current | 7 898 | 4 674 | 5 322 |
| Total | 13 443 | 11 389 | 12 102 |
RESERVES
| (EUR 1 000) | Warranty provision | Reorganization provision | Other provisions | Total |
|---|---|---|---|---|
| Reserves 1.1.2011 | 0 | 106 | 0 | 106 |
| Unused amount reversed | 0 | -106 | 0 | -106 |
| Reserves 30.6.2011 | 0 | 0 | 0 | 0 |
| Reserves 1.1.2010 | 187 | 1 198 | 50 | 1 435 |
| Utilized during the period | -74 | -116 | 0 | -190 |
| Unused amount reversed | -113 | -349 | -50 | -512 |
| Reserves 30.6.2010 | 0 | 733 | 0 | 733 |
| Reserves 1.1.2010 | 187 | 1 198 | 50 | 1 435 |
| Utilized during the period | -90 | -220 | 0 | -310 |
| Unused amount reversed | -97 | -872 | -50 | -1 019 |
| Reserves 31.12.2010 | 0 | 106 | 0 | 106 |
DERIVATIVES
| (EUR 1 000) | 30.6.2011 | 30.6.2010 | 31.12.2010 |
|---|---|---|---|
| Interest rate options | |||
| Fair value | -14 | -106 | -55 |
| Nominal value | 8 679 | 8 679 | 8 679 |
Income taxes
The taxes listed in the consolidated income statement 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. The effective tax rate used in the interim report is 29.0% (28.6%).
Risks
Etteplan's financial results are exposed to number of strategic, operational and financial risks. A description of risks can be found in Etteplan's annual report 2010 on page 66. A detailed financial risk analysis can be found in Etteplan's annual report 2010 on page 32.
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Etteplan
PLEDGES, MORTGAGES AND GUARANTEES
| (EUR 1 000) | 30.6.2011 | 30.6.2010 | 31.12.2010 |
|---|---|---|---|
| Other contingencies | 117 | 172 | 0 |
| Leasing liabilities | |||
| For payment under one year | 1 214 | 927 | 1 197 |
| For payment 1-5 years | 1 684 | 1 943 | 1 489 |
| Total | 3 015 | 3 042 | 2 686 |
Related-party transactions
The Group's related-party includes parent company, subsidiaries and associated companies. Related-party includes also Board of Directors, Management group and CEO.
As the transactions with related-party are recognized those business transactions which are not eliminated in consolidation. Related-party transactions are priced according to Group's normal pricing basis and sales conditions.
THE FOLLOWING TRANSACTIONS WERE CARRIED OUT WITH RELATED PARTIES:
| (EUR 1 000) | 30.6.2011 | 30.6.2010 | 31.12.2010 |
|---|---|---|---|
| Sales of services to related parties | |||
| Associated companies | 0 | 399 | 399 |
| Other related parties | 75 | 15 | 54 |
| Total | 75 | 414 | 454 |
| Purchase of services from related parties | |||
| Key personnel | 33 | 48 | 81 |
| Associated companies | 0 | 287 | 287 |
| Other related parties | 201 | 156 | 311 |
| Total | 234 | 491 | 679 |
| Receivables from related parties | |||
| Associated companies | 0 | 282 | 0 |
| Other related parties | 17 | 7 | 15 |
| Total | 17 | 289 | 15 |
| Payables to related parties | |||
| Associated companies | 0 | 3 | 0 |
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Etteplan
MAJOR SHAREHOLDERS JUNE 30, 2011
| Name | Number of shares | Holding of shares, % |
|---|---|---|
| Mönkkönen Tapani | 4 075 600 | 20,20 |
| Ingman Group Oy Ab | 3 700 000 | 18,34 |
| Oy Fincorp Ab | 2 166 598 | 10,74 |
| Hornborg Heikki | 1 088 320 | 5,39 |
| Varma Mutual Pension Insurance Company | 821 328 | 4,07 |
| Sijoitusrahasto Alfred Berg Finland | 482 449 | 2,39 |
| Etteplan Oyj | 471 302 | 2,34 |
| Tuori Klaus | 351 000 | 1,74 |
| Evli Bank Plc | 348 964 | 1,73 |
| OP-Finland Small Firms Fund | 337 435 | 1,67 |
| Hakakari Tapio/Webstor Oy | 326 180 | 1,62 |
| Sijoitusrahasto Alfred Berg Small Cap Finland | 307 496 | 1,52 |
| Sijoitusrahasto Aktia Capital | 298 200 | 1,48 |
| Tuori Aino | 256 896 | 1,27 |
| Kempe Anna | 220 000 | 1,09 |
| Tuori Kaius | 173 370 | 0,86 |
| Lisboa De Castro Palacios Hietala Martta | 150 544 | 0,75 |
| Sijoitusrahasto Alfred Berg Optimal | 140 831 | 0,70 |
| Nordea Finland Small Cap Fund | 138 900 | 0,69 |
| Danske Fund Finnish Small Cap | 128 835 | 0,64 |
| Other shareholders | 4 195 166 | 20,77 |
| Total | 20 179 414 | 100,00 |
| Nominee-registered shares | 559 477 | 2,77 |
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