Etteplan Oyj — Interim / Quarterly Report 2020

May 5, 2020

After a good start the year continues under exceptional circumstances

ETTEPLAN Oyj Interim Report May 5, 2020, at 1:00 pm

ETTEPLAN Q1 2020: After a good start the year continues under exceptional circumstances

Key points January-March 2020

• The Group's revenue grew by 8.6 per cent and was EUR 71.3 million (1-3/2019: EUR 65.6 million). At comparable exchange rates, growth was 9.5 per cent.
• Operating profit (EBITA) amounted to EUR 6.6 (6.4) million or 9.2 (9.8) per cent of revenue.
• Operating profit (EBIT) was EUR 5.7 (5.8) million or 7.9 (8.8) per cent of revenue.
• Basic earnings per share were EUR 0.17 (0.17).
• The financial impact of the COVID-19 pandemic on our company is impossible to estimate, which is why we withdrew our financial guidance at the end of March. (see page 2).

Etteplan also monitors non-IFRS performance measures, because they provide additional information on Etteplan's development. More information on performance measures is provided on pages 18-19.

Key figures

EUR 1,000	1-3/2020	1-3/2019	1-12/2019
Revenue	71,292	65,625	263,292
Operating profit (EBITA)	6,580	6,424	25,964
EBITA, %	9.2	9.8	9.9
Operating profit (EBIT)	5,656	5,772	22,819
EBIT, %	7.9	8.8	8.7
Basic earnings per share, EUR	0.17	0.17	0.70
Equity ratio, %	40.6	41.2	38.9
Operating cash flow	2,246	5,421	32,884
ROCE, %	18.4	21.3	19.9
Personnel at end of the period	3,402	3,150	3,447

President and CEO Juha Näkki:

The first quarter of 2020 got off to a slow start in Europe. In Finland, turbulence in the labor market affected demand, while elsewhere in Europe, there were delays in the starting of projects. Toward the end of January, demand clearly picked up across Europe and remained at a good level nearly throughout the first quarter in spite of the uncertainty caused by the COVID-19 pandemic. As the pandemic spread to Europe, the impact on demand and our business started to be visible in Europe in late March.

In China, the COVID-19 pandemic had a significant effect on demand in the first quarter and on our business. Due to the additional holidays, quarantines and other measures imposed by the authorities, our business was nearly at a standstill after Chinese New Year and throughout February. In March, however, our employees were able to gradually return to work, demand quickly returned to a good level and our business was nearly back to normal by the end of March.

We achieved a good result in spite of the unusual circumstances. Our revenue grew, boosted by acquisitions, but our organic growth turned to a decrease, particularly due to the impact of the COVID-19 pandemic in China. We were also cautious in recruitments due to the uncertainty brought about by the pandemic. Our operating profit in all of our service areas was at a good level considering the circumstances thanks to good operational efficiency. We were particularly satisfied with the development of the Technical Documentation Solutions service area where, after some weaker quarters, profitability returned to a good level, exceeding our target of 10 per cent.

Nevertheless, following a good first quarter in the current market environment, we now face an entirely new situation. The outbreak of the COVID-19 pandemic immediately affected the market situation and demand as our customers implemented various adaptation measures, and we have also had to adapt our business to the prevailing situation in all of our operating countries. Our first priority at the present time is the health of our employees, and we are doing everything we can to ensure safe working conditions for our personnel. Etteplan's strategy is largely based on service solutions that can be flexibly produced anywhere in the world. To implement this strategy we have made extensive investments in our information systems and tools. These investments now enabled a very quick transition to remote work, which is the safest and most efficient way of working for the time being. Approximately 85 per cent of our employees are currently working remotely, and I want to thank our employees for their flexibility and good fighting spirit in this difficult situation.

The financial impact of the COVID-19 pandemic on our company is impossible to estimate, which is why we withdrew our financial guidance at the end of March. It is clear that the prolongation of the pandemic and the various restrictive measures will have significant effects on our customers' business and, consequently, on our business. However, we have already agreed on loan arrangements that ensure the financing of the Company under any circumstances and we are confident that Etteplan will emerge from this difficult situation as an even stronger company.

Market outlook 2020

The global COVID-19 pandemic has a significant impact on global economy and market situation. The most important factor affecting Etteplan's business is the global development of the machinery and metal industry. Due to the prevailing uncertainty on the market there have been unforeseen changes in Etteplan's customer demand. The prolonging of the situation will have a negative impact on financial development that is very difficult to estimate at the moment.

Financial guidance 2020 (updated on March 30, 2020)

On March 30, 2020, Etteplan withdrew its financial guidance for the year 2020 for the time being due to the uncertainty caused by the COVID-19 pandemic. Etteplan will not provide any financial guidance for 2020 for the time being. The guidance will be issued when the Company is in a better position to assess the impact of the COVID-19 pandemic on Etteplan's business.

Previous financial guidance 2020 (updated on February 11, 2020):

We expect the revenue for 2020 to increase clearly and operating profit (EBIT) to be at the same level or to improve compared to 2019.

Operating environment

The majority of Etteplan's customers are industrial companies, with several global megatrends currently influencing the development of their operating environment. Structural changes in the global economy, disruptions in international trade, urbanization and climate change are all influencing companies, national economies and people's lives. In addition to these megatrends, the engineering industry is influenced primarily by three trends: digitalization, accelerating technological development and the lack of engineering resources. These trends are creating a need for intelligent and efficient engineering solutions in all industrial sectors. The trend of centralizing service purchasing continues as customer demand becomes increasingly international, presenting growth opportunities for global engineering companies. The continued trend of service outsourcing has a positive effect on the industry's development and it supports Etteplan's growth. Competition for employees and the limited availability of specialized experts in certain areas continues to affect the development of the sector as a whole in all market areas.

The most important factor in Etteplan's development is the global development of the machinery and metal industry. The market situation remained at the same level as at the end of the previous year but picked up as the quarter went on. Then, in March, the global COVID-19 pandemic began to have an impact on the market situation and significantly increased uncertainty.

Development of demand by customer industry

There were no significant changes in the industry-specific demand for our services in the first quarter. Demand growth slowed down slightly as the year began, but demand returned to a good level as the quarter went on. Customer-specific differences were again considerable. Demand in the mining industry was at a good level. Demand in the forest, pulp and paper industry remained strong. Demand among lifting and hoisting equipment manufacturers remained at a good level on average. Demand in the energy and power transmission industry continued at a relatively good level. Demand from aerospace and defense equipment manufacturers was at a good level. Demand weakened in the transportation and vehicle industry as well as the metal industry. Demand in the ICT industry remained good. Toward the end of the first quarter, the COVID-19 pandemic affected all industries and demand growth clearly began to slow down.

Development of demand in Etteplan's operating countries

The general market demand in Finland picked up after the labor market situation that had weakened the demand for engineering services was resolved and the threat of a strike was evaded in January 2020. Demand continued at a good level until the COVID-19 pandemic began to affect the development of demand in March.

Based on the order development in the latter part of last year and the early part of this year, it is estimated that the combined revenue of technology industry companies in the early part of 2020 will be higher compared to last year. The Federation of Finnish Technology Industries estimates that, due to the COVID-19 pandemic, revenue development will take a clear negative turn starting from the second quarter.

In the engineering and consulting industry, the value of new orders and the order backlog in January-March 2020 showed a clear increase compared to the previous quarter. According to the Federation of Finnish Technology Industries, the euro-denominated value of new orders received by engineering and consulting companies in January-March in Finland was 11 per cent higher than in October-December 2019 and 21 per cent higher than in the corresponding period in 2019. The order backlog at the end of March was seven per cent higher than at the end of December and three per cent higher than in March 2019. Based on the orders in the past few months, we estimate that the revenue of engineering and consulting companies in the first quarter of 2020 will be slightly higher compared to the corresponding period last year, but there will be a negative turn starting from the second quarter due to the COVID-19 pandemic.

In Sweden, Germany, the Netherlands and Poland, market demand improved from the level seen at the end of last year and was at a good level until the significant impact of the COVID-19 pandemic began to show.

In China, trade war pressures decreased at the start of the year. Demand weakened significantly in February due to the COVID-19 pandemic. Demand recovered in March and is at a good level for the time being,

but the uncertainty in the global economy and particularly the prolongation of the COVID-19 pandemic can influence development.

Revenue

Etteplan's revenue grew by 8.6 per cent in January-March and was EUR 71.3 (1-3/2019: 65.6) million. Revenue increased by 9.5 per cent at comparable exchange rates. The organic development of revenue was negative at -2.8 per cent. At comparable exchange rates, the decrease was -1.9 per cent. Revenue from key accounts decreased in January-March by -0.9 per cent.

Our revenue grew, boosted by the acquisitions made in 2019, but our organic growth turned to a decrease, particularly due to the impact of the COVID-19 pandemic in China. We were also cautious in recruitment due to the uncertainty brought about by the pandemic.

Etteplan's business is subject to periodic fluctuation due to the number of working days, holiday seasons and the timing of product development and investment projects in customer companies, which mainly take place in the spring and the latter part of the year. The revenue in the third quarter is typically lower than that of other quarters.

The revenue of acquired companies is not included in the organic growth of revenue for the 12 months following the acquisition. Devex Mekatronik AB increased Etteplan's revenue effective from June 1, 2019, EMP Engineering Alliance from July 1, 2019, Teknifo AB from October 1, 2019, and Triview Technical Communication B.V. from November 1, 2019.

Result

Operating profit (EBITA) improved by 2.4 per cent in January-March and was EUR 6.6 (6.4) million, or 9.2 (9.8) per cent of revenue.

Operating profit (EBIT) weakened by 2.0 per cent in January-March and was EUR 5.7 (5.8) million, or 7.9 (8.8) per cent of revenue.

Etteplan's profitability was at a good level. Profitability was affected by the slow start to the year and the outbreak of the COVID-19 pandemic in China in February-March.

The combined effect of non-recurring items on operating profit (EBITA) and operating profit (EBIT) in January-March was EUR -0.2 (-0.2) million. The non-recurring costs were related to anticipated credit loss allowance and organizational restructuring.

In January-March, financial expenses amounted to EUR 0.6 (0.4) million.

Profit before taxes for January-March was EUR 5.5 (5.6) million. Taxes in the income statement amounted to 23.8 (23.3) per cent of the result before taxes. The amount of taxes was EUR 1.3 (1.3) million.

The profit for January-March was EUR 4.2 (4.3) million.

Basic earnings per share were EUR 0.17 (0.17) in January-March. Equity per share was EUR 3.18 (2.88) at the end of March. Return on capital employed (ROCE) before taxes was 18.4 (21.3) per cent in January-March.

Cash flow and financial position

Operating cash flow was EUR 2.2 (5.4) million in January-March. Cash flow after investments was EUR 1.8 (4.0) million in January-March.

The strike in Finland involving the engineering industry weakened revenue in the final quarter of 2019 and consequently affected the accrual of operating cash flow in the review period. Operating cash flow accrues unevenly over the four quarters of the year due to periodic fluctuation in business.

The Group's cash and cash equivalents stood at EUR 11.9 (18.2) million at the end of March.

The Group's interest-bearing debt amounted to EUR 55.3 (48.2) million.

The total of unused short-term credit facilities stood at EUR 15.9 (9.7) million.

In the uncertain market situation, we have agreed on loan arrangements that ensure the financing of the Company under all circumstances.

Total assets on March 31, 2020 were EUR 200.1 (176.6) million. Goodwill on the balance sheet was EUR 77.6 (64.9) million.

At the end of March, the equity ratio was 40.6 (41.2) per cent.

Capital expenditure

The Group's gross investments in January-March were EUR 5.5 (2.3) million. The gross investments mainly consisted of an increase in lease obligations, license fees for engineering software and growth-related equipment purchases.

Personnel

The number of personnel increased by 8.0 per cent year-on-year and stood at 3,402 (3,150) at the end of March 2020. The number of personnel decreased by 1.3 per cent compared to the end of 2019 as recruitment was reduced due to the COVID-19 situation. The decrease in the number of personnel was also attributable to the recruitment of Etteplan's employees by certain customers.

The Group employed 3,420 (3,134) people on average in January-March. International growth continued and, at the end of March, 1,354 (1,104) people were employed by the Group outside of Finland.

Business review

Etteplan published its renewed strategy, Increasing value for customers, and updated financial targets in December 2019. Etteplan has engaged in preparations and planning related to the renewed strategy, but many projects have been suspended for the time being due to attention being shifted to the COVID-19 pandemic. Investments in the implementation of the strategy will continue as soon as the situation allows it, and we believe the renewed strategy will drive the success of the Company after the COVID-19 pandemic.

The key objective of the Company's strategy is to create even higher value for customers and support them in the industrial change. The three key elements of our strategy are customer value, service solutions and success with people.

The most important focus areas of growth are the continuous development of service solutions, digitalization and international growth. Etteplan's target is to achieve revenue of EUR 500 million by 2024 and increase the share of revenue earned outside Finland to 50 per cent. The Company targets an operating profit (EBITA) level of 10 per cent of revenue. A further target is to increase the share of revenue represented by Managed Services to 75 per cent.

The growth in the share of Managed Services enhances Etteplan's capacity management and improves profitability. The share of revenue represented by Managed Services was 59 (58) per cent in January-March. We continued the development of technology solutions as part of our service solutions. We are strengthening our expertise in areas such as additive manufacturing, digital twin solutions, artificial intelligence and other digital technologies.

Etteplan's customers are investing in digitalization and intelligent devices, which presents significant growth opportunities for the Company. In the recent years, Etteplan has also invested in digitalization and software development with the aim of expanding its service offering and competence capital in order to respond to the digitalization needs of customers. At the same time, we are investing in organic growth as well as the development of our own business and increasing its rate of digitalization.

Etteplan's goal is to grow internationally and provide solutions from all of the Company's service areas in all of our market areas. In January-March, revenue accumulated outside Finland amounted to EUR 26.3 (19.6) million, or 37 (31) per cent of the Group's total revenue.

The number of hours sold in the Chinese market decreased in January-March by 25 per cent year-on-year due to the COVID-19 pandemic. Our employees in China gradually returned to work in March and our business was almost back to normal by the end of the review period. We have received inquiries about projects of significant size.

Impacts of the COVID-19 pandemic on Etteplan's operations

The COVID-19 pandemic has a significant impact on Etteplan's operations. Etteplan reacted fast and successfully to the changed operating environment and nearly 85 per cent of Etteplan's employees quickly moved to work remotely in the middle of March.

The declining demand among customer companies directly affects Etteplan. Etteplan initiated cooperation negotiations concerning all of its personnel in Finland on March 18, 2020. As a result of the negotiations, Etteplan can lay off a maximum of 700 employees for at most 90 days over a period of six months. A total of 46 employees were temporarily laid off at the end of March. At the end of April, a total of 286 employees were temporarily laid off. Layoffs have been implemented in Finland, Sweden and Germany.

Acquisitions

Etteplan strengthened its international business with four acquisitions in 2019. In Sweden, Etteplan acquired the engineering company Devex Mekatronic AB in June and the technical documentation company Teknifo AB in October. Both companies have been fully integrated into Etteplan and they operate under the Etteplan brand.

In early July 2019, Etteplan announced it is expanding its operations in Germany to engineering services and acquiring EMP Engineering Alliance, a company specializing in industrial automation and process engineering. The company currently operates under the name EMP-Etteplan. The integration process is moving ahead, but it has been slowed down slightly due to the COVID-19 pandemic.

In November, Etteplan acquired Triview Technical Communication BV, a Dutch company specializing in technical documentation. The integration of the company's operations into Etteplan's existing business in the Netherlands is progressing according to plan. The plans are for the company to move under the Etteplan brand in summer 2020. More information on the acquisitions is provided in the Financial Review 2019.

Development of the service areas

Engineering Solutions

Engineering Solutions refer to the innovation, engineering and calculations of the technical attributes of machinery or equipment for the purpose of product development and manufacturing. Assignments are typically product development projects for a new product, plant engineering projects or Engineering-to-Order projects, involving the customization of the product in accordance with end customer requirements and the market area's legislation.

EUR 1,000	1-3/2020	1-3/2019 Change		1-12/2019
Revenue	41,332	35,606	16.1%	147,037
Operating profit (EBITA)	3,923	3,677	6.7%	14,464
EBITA, %	9.5	10.3		9.8
Managed Services index	56	54		55
Personnel at end of the period	1,986	1,780	11.6%	1,995

The figures for Devex Mekatronik AB, acquired in June 2019, are included in the Engineering Solutions service area's figures starting from June 1, 2019. The figures for EMP Engineering Alliance, acquired in July 2019, are included in the Engineering Solutions service area's figures starting from July 1, 2019.

The share of Etteplan's revenue represented by Engineering Solutions in January-March was 58 (54) per cent.

The service area's revenue increased by 16.1 per cent in January-March and was EUR 41.3 (35.6) million.

The Engineering Solutions service area developed well during the review period. Demand was good and the acquisitions made in 2019 supported growth. The sharp fall in demand caused by the COVID-19 pandemic in China in February and the uncertainty caused by the labor market situation in Finland affected the development of the service area. The limited availability of specialized experts in certain areas affected the business to some extent.

The Engineering Solutions service area's operating profit (EBITA) in January-March was EUR 3.9 (3.7) million, or 9.5 (10.3) per cent of revenue. Profitability was at a good level thanks to good operational efficiency. The business of the acquired companies has also developed positively, and they supported the service area's profitability.

The Engineering Solutions service area had 1,986 (1,780) employees at the end of March.

The Managed Services Index (MSI), which reflects the share of revenue represented by Managed Services, was 56 (54) per cent in January-March.

Software and Embedded Solutions

Software and Embedded Solutions provides product development services as well as software and technology solutions that enable the digitalization of customers' business processes along with the intelligence and connectivity of machinery and equipment. A typical challenge involves the need to increase the efficiency of business processes or manufacturing or create new products for the market. Through system integration, we can ensure better customer service, cost-efficiency or the creation of new income streams through digitalization.

EUR 1,000	1-3/2020	1-3/2019 Change		1-12/2019
Revenue	16,962	17,314	-2.0%	67,481
Operating profit (EBITA)	1,531	1,689	-9.4%	6,263
EBITA, %	9.0	9.8		9.3
Managed Services index	53	55		58
Personnel at end of the period*	663	667	-0.6%	683

*Comparison periods updated to comparable number after integration of Devex AB into Etteplan Sw eden AB Jan 1, 2020.

The figures for Devex Mekatronik AB, acquired in June 2019, are included in the Software and Embedded Solutions service area's figures starting from June 1, 2019.

The share of the Group's total revenue represented by Software and Embedded Solutions was 24 (27) per cent in January-March.

The service area's revenue decreased by 2.0 per cent in January-March and was EUR 17.0 (17.3) million. Revenue decreased due to the recruitment of Etteplan's employees by certain customers. The reduced availability of competent professionals, particularly in the software business, continued to affect growth. Our customers are still investing in digital solutions, but the COVID-19 situation is temporarily weakening demand.

The Software and Embedded Solutions service area's operating profit (EBITA) weakened in January-March and was EUR 1.5 (1.7) million or 9.0 (9.8) per cent of revenue. The service area's profitability was weakened by the effects of the COVID-19 pandemic, organizational restructuring and anticipated credit loss allowance.

The Software and Embedded Solutions service area had 663 (667) employees at the end of March.

The Managed Services Index (MSI), which reflects the share of revenue represented by Managed Services, was 53 (55) in January-March.

Danfoss has started piloting a private LTE network provided by Etteplan at its factory in Vaasa. By deploying the highly reliable wireless private network, the company aims to improve productivity and workplace safety, expand the services the company offers to its customers and help enable the smart factory of the future. The pilot project utilizes Etteplan's private network as a service, in which the customer gets a 5Gready LTE private network on a turnkey principle in exchange for a start-up fee and a monthly payment. Etteplan's service is delivered as an end-to-end solution that includes network design, base stations, the management server, terminal devices with SIM cards and network maintenance. Etteplan partners with Nokia and Edzcom (formerly Ukkoverkot) in the provision of private LTE networks. As the solution provider, Etteplan is responsible for all of the necessary hardware and software integration.

Technical Documentation Solutions

Technical Documentation Solutions refers to the documentation of a single product's technical attributes, such as user manuals, or asset information for a whole plant, i.e. a factory, as well as related content creation and distribution in print or digital form. For an industrial customer, good technical documentation can lift the value of their products and ensure their products are used in the right way. We provide customers ways to improve cost efficiency and lead times, increase quality, and decrease the environmental footprint.

EUR 1,000	1-3/2020	1-3/2019 Change		1-12/2019
Revenue	12,835	12,509	2.6%	48,218
Operating profit (EBITA)	1,295	1,243	4.1%	4,093
EBITA, %	10.1	9.9		8.5
Managed Services index	79	75		79
Personnel at end of the period	656	609	7.7%	651

The figures for Teknifo AB, acquired in October 2019, are included in the Technical Documentation Solutions service area's figures starting from October 1, 2019. The figures for Triview Technical Communication BV, acquired in November 2019, are included in the Technical Documentation Solutions service area's figures starting from November 1, 2019.

The share of the Group's total revenue represented by Technical Documentation Solutions was 18 (19) per cent in January-March.

The service area's revenue increased by 2.6 per cent in January-March and was EUR 12.8 (12.5) million.

The service area developed well during the first quarter of the year and operational efficiency was at a good level. The demand for outsourcing solutions has picked up and we are continuing discussions on new outsourcing agreements with several customers. The acquisitions made in 2019 supported the good development. The sharp fall in demand caused by the COVID-19 pandemic in China in February affected the development of the service area. The SaaS version of the HyperSTE software, launched in late 2019, has attracted a lot of interest and the sales outlook was good in the early part of the year. However, the COVID-19 pandemic makes it more difficult to conclude deals, which meant that the actual sales were not in line with expectations.

The Technical Documentation Solutions service area's operating profit (EBITA) in January-March was EUR 1.3 (1.2) million or 10.1 (9.9) per cent of revenue. A project in Germany that was delayed for a long time and completed in January 2020 still had a slight effect on the service area's profitability.

The Technical Documentation Solutions service area had 656 (609) employees at the end of March.

The Managed Services Index (MSI), which reflects the share of revenue represented by Managed Services, grew to 79 (75) per cent in January-March.

GOVERNANCE

Etteplan's Board of Directors resolved to establish an Audit Committee

The Board of Directors of Etteplan resolved on February 11, 2020, to establish an Audit Committee. According to the decision, the Committee began to operate after the Annual General Meeting on April 2, 2020. The Board of Directors elected on April 2, 2020, appointed the members to the Audit Committee among the Directors in the Board's organization meeting after the Annual General Meeting. In the same meeting, the Board confirmed the central duties and operating principles of the Committee in a written charter.

Changes in Etteplan's Management Group

Tom Leskinen, Licentiate in Technology, was appointed Etteplan's Senior Vice President, Software and Embedded Solutions and a member of Etteplan's Management Group on March 23, 2020. Leskinen will move to Etteplan from TietoEVRY Oyj, where he currently serves as the Head of the Product Development Services business area and a member of the Executive Management Team. Tom has extensive experience in the software business from several leadership positions with both Tieto and Nokia. Leskinen will start in the new position on August 17, 2020. He will report to President and CEO Juha Näkki. The previous service area head, SVP Kari Liuska, continued his career outside Etteplan starting from May 1, 2020.

GENERAL MEETING

Etteplan Oyj's Annual General Meeting was held on April 2, 2020. The Annual General Meeting approved the financial statements and discharged the members of the Board of Directors and the President and CEO from liability for the financial year 2019.

The Annual General Meeting resolved, in accordance with the proposal of the Board of Directors, to pay a dividend of EUR 0.35 per share for the financial year 2019 and to leave the remaining funds in unrestricted equity. The dividend decided on by the Annual General Meeting was paid to the shareholders registered on the record date in the shareholders' register maintained by Euroclear Finland Ltd. The record date for the dividend payout was April 6, 2020, and the date of dividend payout April 15, 2020.

In accordance with the proposal of Etteplan's Nomination and Remuneration Committee, the Annual General Meeting resolved that the Board of Directors shall consist of five members. In accordance with the proposal of the Nomination and Remuneration Committee, the Annual General Meeting resolved on the annual remuneration of the members of the Board of Directors, the Chairman of the Board and the members of the Nomination and Remuneration Committee and the Audit Committee.

In accordance with the proposal of the Nomination and Remuneration Committee of the Board of Directors, the Annual General Meeting re-elected Matti Huttunen, Robert Ingman, Leena Saarinen and Mikko Tepponen as members of the Board of Directors. The Annual General Meeting further elected Päivi Lindqvist as a new member of the Board of Directors. KPMG Oy Ab, Authorized Public Accountants, with Authorized Public Accountant Kim Järvi as the main responsible auditor, was elected as the Company's auditor.

In its organization meeting subsequent to the Annual General Meeting, the Board of Directors of Etteplan Oyj elected Robert Ingman as Chairman of the Board of Directors. Matti Huttunen was elected the Chairman and Robert Ingman and Leena Saarinen as members of the Nomination and Remuneration Committee of Etteplan Oyj.

Leena Saarinen was elected the Chairman and Päivi Lindqvist and Mikko Tepponen as members of the Audit Committee of Etteplan Oyj. The Board of Directors of Etteplan Oyj confirmed the central duties and operating principles of the Audit Committee, which are available on the Company's website at https://www.etteplan.com/investors/corporate-governance/audit-committee.

The Annual General Meeting resolved to change the domicile of the Company from Vantaa to Espoo and resolved to thus change the Articles of Association of the Company by updating article 1 Business name and domicile to read as follows:

1 § Business name and domicile

The Company's business name is Etteplan Oyj, and it is domiciled in Espoo.

In connection with this change, Etteplan's head office will move to the technology cluster of Keilaniemi and Otaniemi in Espoo, Finland.

Board authorizations

The Annual General Meeting 2020 authorized the Board of Directors to resolve on the repurchase of the Company's own shares in one or more tranches using the Company's unrestricted equity. A maximum of 2,000,000 shares in the Company may be repurchased. The Company may deviate from the obligation to repurchase shares in proportion to the shareholders' current holdings, i.e. the Board has the right to decide on a directed repurchase of the Company's own shares.

The authorization includes the right for the Board to resolve on the repurchase of the Company's own 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 Helsinki Ltd at the market price valid at any given time, so that the Company's total holding of its 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 shares in the Company in public trading and, correspondingly, the maximum price is the highest market price quoted for the shares in the Company in public trading during the validity of the authorization.

Should the shares in the Company be repurchased in public trading, such shares will not be purchased in proportion to the shareholders' current holdings. In that case, there must be a weighty financial reason for the Company to repurchase its own shares. The shares may be repurchased in order to be used as consideration in potential acquisitions or in other structural arrangements. The shares may also be used for carrying out the Company's incentive schemes for its personnel. The repurchased shares may be retained by the Company, invalidated or transferred further.

The repurchase of the Company's own shares will reduce the non-restricted equity of the Company.

The authorization is valid for 18 months from the date of the resolution of the Annual General Meeting starting on April 2, 2020, and ending on October 2, 2021. The authorization replaces the corresponding previous authorization.

The Annual General Meeting 2019 decided to authorize the Board of Directors to resolve on the issuance of a maximum of 2,500,000 shares through issuance of shares, option rights or other special rights entitling to shares under Chapter 10, Section 1 of the Finnish Companies Act in one or more issues. The authorization includes the right to decide to issue either new shares or shares held by the Company.

The authorization includes the right to deviate from the existing shareholders' pre-emptive subscription right as set forth in Chapter 9, Article 3 of the Companies Act. Therefore, the Board of Directors has the right to direct the share issue, or issuance of the option rights or other special rights conferring entitlement to shares. The authorization also includes the right to decide on all the terms of share issue, option rights or other special rights conferring entitlement to shares. The authorization therefore includes the right to determine share subscription prices, persons entitled to subscribe the shares and other terms and conditions applicable to the subscription. In order to deviate from the shareholders' pre-emptive subscription right, the Company must have a weighty financial reason such as financing of a company acquisition, other arrangement in connection with the development of the Company's business or equity or an incentive scheme to the personnel. In connection with the share issuance, the Board of Directors is entitled to decide that the shares may be subscribed against contribution in kind or otherwise under special terms and conditions. The authorization includes the right to determine whether the subscription price will be entered into the share capital or into the reserve of invested unrestricted equity.

The authorization is valid for two (2) years from the date of the resolution of the Annual General Meeting, starting on April 4, 2019, and ending on April 4, 2021.

SHARES

Etteplan's shares are listed in Nasdaq Helsinki Ltd's Mid Cap market capitalization group in the Industrials sector under the ETTE ticker. The Company has one series of shares. All shares confer an equal right to a dividend and the Company's funds.

The Company's share capital on March 31, 2020, was EUR 5,000,000.00 and the total number of shares was 24,963,308.

The number of Etteplan Oyj shares traded in January-March was 574,689 (1-3/2019: 197,787), for a total value of EUR 5.46 (1.63) million. The share price low was EUR 6.50, the high EUR 12.05, the average EUR 9.50 and the closing price EUR 6.78. Market capitalization on March 31, 2020, was EUR 168.19 (199.28) million.

The Company held 156,203 of its own shares on March 31, 2020 (March 31, 2019: 114,890), which corresponds to 0.63 per cent of all shares and voting rights.

Flaggings

Etteplan Oyj received no flagging notices in January-March 2020.

The Board of Directors of Etteplan Oyj resolved on key personnel incentive plan 2020-2022

On February 5, 2020, Etteplan's Board of Directors resolved to establish a new share-based incentive plan for the Group key personnel. The aim of the plan is to combine the objectives of the shareholders and the key personnel in order to increase the value of the Company, to commit the key personnel to the Company, and to offer them a competitive reward plan based on holding the Company shares.

The plan includes one earning period which includes calendar years 2020-2022. The earning period covers the same years as Etteplan's strategy update published in December 2019. The plan is in line with Etteplan's strategy and supports the achievement of the Company's financial targets.

The earnings criteria are Etteplan Group´s revenue increase and the development of Total Shareholder Return (TSR). The potential reward will be paid partly in the Company's shares and partly in cash after the end of the earning period. The proportion to be paid in cash is intended to cover taxes and tax-related costs arising from the reward to the key personnel.

Approximately 25 people belong to the plan, including the Management Group of Etteplan. The rewards to be paid on the basis of the plan will correspond to the value of an approximate maximum total of 390,000 Etteplan Oyj shares (including also the proportion to be paid in cash). The shares to be paid out as potential rewards will be transferred from the shares held by the Company or shares acquired from the market, and therefore the incentive plan will have no diluting effect on the share value.

Payment of the share rewards based on the share-based incentive program 2017-2019 intended for the key personnel

On February 11, 2020, Etteplan's Board of Directors confirmed the maximum number of shares, 84,124, earned based on the earning period 2017-2019 of the share-based incentive program for the Company's key personnel, and resolved on the payment of the share rewards from the shares held by the Company. In addition, Etteplan will pay in cash a proportion to cover taxes and tax-related costs arising from the reward to some 20 people belonging to the target group of the incentive plan. The share rewards were paid on April 15, 2020. Etteplan Oyj announced the establishment of this share-based incentive program with a Stock Exchange Release published on May 31, 2017:

"The Board of Directors of Etteplan Oyj decided on May 31, 2017, to establish a new share-based incentive plan for the Group's key personnel. The incentive plan includes one earning period comprising the calendar years 2017-2019. The earnings criteria are Etteplan Group's revenue increase and the development of Total Shareholder Return (TSR). The potential reward will be paid partly in the Company's shares and partly in cash. The proportion to be paid in cash is intended to cover taxes and tax-related costs arising from the reward to the key personnel. Approximately 20 people belong to the target group of the incentive plan. The rewards to be paid on the basis of the plan will correspond to the value of an approximate maximum total of 260,000 Etteplan Oyj shares (including also the proportion to be paid in cash). The shares to be paid out as potential rewards will be transferred from the shares held by the Company or shares acquired from the market and, therefore, the incentive plan will have no diluting effect on the value of the share.

Liquidity Providing agreement for Etteplan Oyj's share from Lago Kapital Ltd

Etteplan Oyj and Lago Kapital Ltd signed a market making agreement on February 17, 2020, in compliance with the Liquidity Providing (LP) requirements issued by Nasdaq Helsinki Ltd. According to the agreement, Lago Kapital Ltd will provide Etteplan's share (ETTE, FI0009008650) with bids and offers so that the maximum spread is 4 per cent, calculated from the bid quotation. Both bid and offer side shall include a number of shares corresponding to the value of at least EUR 3,000. Lago Kapital Ltd undertakes to submit bids and offers for the share of Etteplan Oyj on the trading system maintained by Nasdaq Helsinki Ltd on each trading day for at least 85 per cent of the time of continuous trading. The liquidity providing in accordance with the agreement commenced on February 17, 2020. The market making agreement aims at increasing the share's liquidity and decreasing the share price volatility thus facilitating trading for especially private investors.

Event after the review period: Transfer of Etteplan's own shares

On April 15, 2020, Etteplan Oyj transferred a total of 77,157 of its own shares to Group key personnel in accordance with the terms of the share-based incentive plan for the Group key personnel, and the decision made by the Board of Directors on February 11, 2020. The amount of shares differs from the previously communicated amount due to a change in Etteplan's Management Group. After the transfer, Etteplan holds a total of 79,046 own shares.

Operating risks and uncertainty factors

Etteplan's financial results are exposed to a number of strategic, operational and financial risks. The uncertainties caused by the general economic development continue to constitute risks for Etteplan's business. The possibility of changes in customers' business operations is a significant risk to Etteplan's operations. The Company's operations are based on skilled staff. The availability of competent professionals is an important factor for ensuring profitable growth and operations. The increased difficulties in recruiting professional staff, particularly in certain expert disciplines, continued to present a business risk. COVID-19 pandemic will have significant effects on our business and the prolonging of the situation will have a negative impact on our financial development.

Etteplan assesses business risks annually. The focus of the assessment is particularly on monitoring changes in already identified risks, identifying new business risks and developing proactive risk management. The results of the assessment are reported annually in Etteplan's Financial Review.

Etteplan's Annual Report 2019, Remuneration Policy, Corporate Governance Statement, Remuneration Statement and Statement of non-financial information

Etteplan has published a Corporate Governance Statement, Remuneration Statement and Statement of non-financial information separately from the Annual Report by the Board of Directors. Etteplan has also published its Annual Report for 2019, consisting of an Annual Review and a Financial Review, and a Remuneration Policy. The reports and statements are available on Etteplan's website at

https://www.etteplan.com/investors/reports-presentations. The Remuneration Policy is available at https://www.etteplan.com/investors/corporate-governance/remuneration.

Financial information in 2020

Etteplan Oyj will publish financial information as follows:

• Half Year Financial Report 1-6/2020: Tuesday, August 11, 2020
• Interim Report 1-9/2020: Thursday, October 29, 2020

Espoo, May 5, 2020

Etteplan Oyj

Board of Directors

Additional information: Juha Näkki, President and CEO, tel. +358 10 307 2077 Outi Torniainen, SVP, Communications and Marketing, tel. +358 10 307 3302

The information presented herein has not been audited.

Releases and other corporate information are available on Etteplan's website at www.etteplan.com.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR 1,000	1-3/2020	1-3/2019	1-12/2019
Revenue	71,292	65,625	263,292
Other operating income	205	139	2,582
Materials and services	-6,272	-5,730	-26,550
Staff costs	-48,820	-44,312	-172,520
Other operating expenses	-6,685	-6,765	-29,273
Depreciation and amortization	-4,065	-3,185	-14,712
Operating profit (EBIT)	5,656	5,772	22,819
Financial income	481	190	695
Financial expenses	-630	-351	-1,590
Profit before taxes	5,507	5,611	21,924
Income taxes	-1,310	-1,307	-4,536
Profit for the review period	4,197	4,303	17,387
Other comprehensive income, that may be reclassified to profit or loss Currency translation differences Other comprehensive income, that will not be reclassified to profit or loss Change in fair value of equity investments at fair value through other	-2,143	-283	-398
comprehensive income	0	12	-75
Other comprehensive income, net of tax	-2,143	-271	-473
Total comprehensive income for the review period	2,054	4,032	16,915
Profit for the review period attributable to Equity holders of the parent company Total comprehensive income for the review period attributable to Equity holders of the parent company	4,197 2,054	4,303 4,032	17,387 16,915
Earnings per share calculated from the profit attributable to equity holders of the parent company
Basic earnings per share, EUR	0.17	0.17	0.70
Diluted earnings per share, EUR	0.17	0.17	0.70

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EUR 1,000	Mar 31, 2020	Mar 31, 2019	Dec 31, 2019
ASSETS
Non-current assets
Goodwill	77,602	64,944	79,044
Other intangible assets	27,372	20,218	27,472
Tangible assets	18,067	15,865	17,264
Investments at fair value through other
comprehensive income	386	709	387
Other non-current receivables	53	54	54
Deferred tax assets	244	165	259
Non-current assets, total	123,725	101,956	124,480
Current assets
Inventory	280	384	313
Work in progress	31,054	26,796	22,498
Trade and other receivables	32,930	29,216	39,332
Current tax assets	190	40	401
Cash and cash equivalents	11,933	18,178	15,878
Current assets, total	76,387	74,614	78,421
TOTAL ASSETS	200,112	176,570	202,901
EQUITY AND LIABILITIES
Equity
Share capital	5,000	5,000	5,000
Share premium account	6,701	6,701	6,701
Unrestricted equity fund	20,101	20,101	20,101
Own shares	-616	-519	-700
Cumulative translation adjustment	-6,442	-4,185	-4,299
Other reserves	107	243	108
Retained earnings	49,829	39,846	32,441
Profit for the review period	4,197	4,303	17,387
Equity, total	78,878	71,492	76,740
Non-current liabilities
Deferred tax liabilities	6,208	4,375	6,481
Interest-bearing liabilities	33,974	30,521	33,116
Other non-current liabilities	27	2,027	27
Non-current liabilities, total	40,209	36,923	39,624
Current liabilities
Interest-bearing liabilities	21,333	17,727	23,139
Advances received	5,870	3,163	5,378
Trade and other payables	52,365	45,791	55,588
Current income tax liabilities	1,457	1,474	2,433
Current liabilities, total	81,025	68,155	86,537
Liabilities, total	121,234	105,078	126,161
TOTAL EQUITY AND LIABILITIES	200,112	176,570	202,901

CONSOLIDATED STATEMENT OF CASH FLOWS

EUR 1,000	1-3/2020	1-3/2019	1-12/2019
Operating cash flow
Cash receipts from customers	68,596	61,785	263,365
Operating expenses paid	-64,093	-54,639	-225,189
Operating cash flow before financial items and taxes	4,503	7,146	38,176
Interest and payment paid for financial expenses	-77	-239	-1,192
Interest received	16	93	162
Income taxes paid	-2,196	-1,579	-4,262
Operating cash flow (A)	2,246	5,421	32,884
Investing cash flow
Purchase of tangible and intangible assets	-446	-585	-2,063
Acquisition of subsidiaries, net of cash acquired	0	-824	-21,049
Proceeds from sale of tangible and intangible assets	26	1	81
Proceeds from sale of investments	0	0	215
Investing cash flow (B)	-420	-1,407	-22,816
Cash flow after investments (A+B)	1,826	4,014	10,068
Financing cash flow
Purchase of own shares	0	-154	-519
Issue of new current loans	848	208	2,020
Repayments of current loans	-3,707	-7	-8,440
Issue of new non-current loans	0	0	13,500
Payment of lease liabilities	-2,659	-2,071	-9,624
Dividend paid	0	0	-7,454
Financing cash flow (C)	-5,519	-2,024	-10,517
Variation in cash (A+B+C) increase (+) / decrease (-)	-3,693	1,990	-449
Assets at the beginning of the period	15,878	16,115	16,115
Exchange gains or losses	-252	73	212
Assets at the end of the period	11,933	18,178	15,878

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Legends for table columns
A) Share Capital	E) Own Shares
B) Share Premium Account	F) Cumulative Translation Adjustment
C) Unrestricted Equity Fund	G) Retained Earnings
D) Other Reserves	H) Capital attributable to equity holders of the parent company, total

EUR 1,000	A	B	C	D	E	F	G	H
Equity Jan 1, 2019	5,000	6,701	20,101	231	-452	-3,901	39,846	67,527
Comprehensive income
Profit for the review period	0	0	0	0	0	0	17,387	17,387
Change in fair value of equity investments at fair
value through other comprehensive income	0	0	0	-75	0	0	0	-75
Transfer of gain on disposal of equity
investments at fair value through other
comprehensive income to retained earnings	0	0	0	-49	0	0	49	0
Cumulative translation adjustment	0	0	0	0	0	-398	0	-398
Total comprehensive income for the year	0	0	0	-123	0	-398	17,436	16,915
Transactions with owners
Dividends	0	0	0	0	0	0	-7,454	-7,454
Purchase of own shares	0	0	0	0	-519	0	0	-519
Share-based incentive plan	0	0	0	0	271	0	0	271
Transactions with owners, total	0	0	0	0	-248	0	-7,454	-7,702
Equity Dec 31, 2019	5,000	6,701	20,101	108	-700	-4,299	49,829	76,740

EUR 1,000	A	B	C	D	E	F	G	H
Equity Jan 1, 2020	5,000	6,701	20,101	108	-700	-4,299	49,829	76,740
Comprehensive income
Profit for the review period	0	0	0	0	0	0	4,197	4,197
Cumulative translation adjustment	0	0	0	0	0	-2,143	0	-2,143
Total comprehensive income for the year	0	0	0	0	0	-2,143	4,197	2,054
Transactions with owners
Share-based incentive plan	0	0	0	0	84	0	0	84
Transactions with owners, total	0	0	0	0	84	0	0	84
Equity Mar 31, 2020	5,000	6,701	20,101	107	-616	-6,442	54,026	78,878

EUR 1,000	A	B	C	D	E	F	G	H
Equity Jan 1, 2019	5,000	6,701	20,101	231	-452	-3,901	39,846	67,527
Comprehensive income
Profit for the review period	0	0	0	0	0	0	4,303	4,303
Change in fair value of equity investments at fair
value through other comprehensive income	0	0	0	12	0	0	0	12
Cumulative translation adjustment	0	0	0	0	0	-283	0	-283
Total comprehensive income for the year	0	0	0	12	0	-283	4,303	4,032
Transactions with owners
Purchase of own shares	0	0	0	0	-154	0	0	-154
Share-based incentive plan	0	0	0	0	88	0	0	88
Transactions with owners, total	0	0	0	0	-67	0	0	-67
Equity Mar 31, 2019	5,000	6,701	20,101	243	-519	-4,185	44,150	71,492

NOTES

General

Etteplan provides solutions for industrial equipment and plant engineering, software and embedded solutions, 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, services 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 2019, Etteplan had a turnover of approximately EUR 263 million. The company currently has over 3,400 professionals in Finland, Sweden, the Netherlands, Germany, Poland and China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE ticker.

The Etteplan Oyj Board of Directors has approved this Interim Report for publication at its meeting on May 5, 2020.

Basis for preparation

Figures are presented in thousands or millions of euros as described in connection with each figure. The figures presented are rounded from exact figures and consequently, the sum of figures presented individually can deviate from the presented sum figure. Key figures have been calculated using exact figures.

This Interim Report has not been prepared in accordance with all the requirements in IAS 34 (Interim Financial Reporting) standard. The Interim Report has been prepared according to the recognition and valuation principles presented in the 2019 Annual Financial Statements

Accounting policies requiring management's judgment and key sources of uncertainty concerning estimates

This release includes forward-looking statements, which are based on the current expectations, known factors, decisions and plans of the management. The management believes that the expectations reflected in such forward looking statements are reasonable. However, outcomes could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions as well as changes in the regulatory environment and fluctuations in exchange rates. The Group's management may also have to make judgment-based decisions relating to the choice and application of accounting policies. This particularly concerns situations, where effective IFRS standards allow alternative valuation, recording and presenting manners.

COVID-19 pandemic will have significant effects on our business and the prolonging of the situation will have a negative impact on our financial development. The other key sources of estimation uncertainty, as well as areas requiring judgment-based decisions, were the same as those that applied to the 2019 consolidated financial statements. Management pays special attention to fair value measurements in connection with acquisitions and revenue recognition for fixed price projects.

Non-IFRS key figures

Etteplan presents non-IFRS key figures to supplement its consolidated financial statements which are prepared in accordance with IFRS. These key figures are designed to measure growth and provide insight into the company's underlying operational performance. This section describes the most important non-IFRS key figures used by the Group. Formulas for key figures (IFRS and Non-IFRS) are presented at the end of this release.

Operating profit (EBITA) and EBITA, %

Operating profit (EBITA) is presented, because it reflects the Group's operational performance better that Operating profit (EBIT). Operating profit (EBITA) does not include amortization of fair value adjustments at

acquisitions. EBITA, % presents Operating profit (EBITA) as a percentage share of revenue. The table below shows a reconciliation between Operating profit (EBITA) and Operating profit (EBIT).

EUR 1,000	1-3/2020		1-3/2019 1-12/2019
Operating profit (EBIT)	5,656	5,772	22,819
Amortization on fair value adjustments at acquisitions	924	652	3,146
Operating profit (EBITA)	6,580	6,424	25,964

Organic/un-organic growth and growth in comparable currencies

Organic (revenue) growth is presented in addition to total revenue growth, because it improves the comparability of revenue growth between periods by presenting the revenue growth without the effects of the last 12 months' acquisitions. Organic growth is calculated by comparing revenue between comparison periods excluding revenue from acquisitions that have taken place in the past 12 months. The revenue growth created by last 12 months' acquisitions is presented as un-organic growth. Revenue growth in comparable currencies is presented, because it improves the comparability of revenue growth between periods by presenting the revenue growth with comparable exchange rates. For the calculation of growth in comparable currencies, revenue for the current period is calculated by using the comparable period's exchange rates. The figure is presented for Group revenue and organic growth.

The share of revenue represented by Managed Services

Etteplan measures the share of revenue represented by Managed Services (MSI Index). Managed Services are service solutions, such as projects and continuous services, where the customer pays for results instead of resources. The share of revenue represented by Managed Services is presented, because it describes Etteplan's strategy implementation and explains, in part, the changes in profitability.

EUR 1,000	1-3/2020	1-3/2019	1-12/2019	Change
Revenue	71,292	65,625	263,292	8.6%
Operating profit (EBITA)	6,580	6,424	25,964	2.4%
EBITA, %	9.2	9.8	9.9
Operating profit (EBIT)	5,656	5,772	22,819	-2.0%
EBIT, %	7.9	8.8	8.7
Profit before taxes	5,507	5,611	21,924	-1.8%
Profit before taxes, %	7.7	8.5	8.3
Return on equity, %	21.6	24.8	24.1
ROCE, %	18.4	21.3	19.9
Equity ratio, %	40.6	41.2	38.9
Gross interest-bearing debt	55,307	48,249	56,255	14.6%
Net gearing, %	55.0	42.1	52.6
Balance sheet, total	200,112	176,570	202,901	13.3%
Gross investments	5,477	2,322	36,908	135.9%
Operating cash flow	2,246	5,421	32,884	-58.6%
Basic earnings per share, EUR Diluted earnings	0.17	0.17	0.70	0.0%
per share, EUR	0.17	0.17	0.70	0.0%
Equity per share, EUR	3.18	2.88	3.09	10.5%
Personnel, average	3,420	3,134	3,305	9.1%
Personnel at end of the period	3,402	3,150	3,447	8.0%

Key Figures

Revenue

The table below presents the disaggregation of external revenue by geographical area and by timing of revenue recognition. The external revenue of each geographical area is presented according to the location of the seller. The Group's operations in China sell their services both locally and through other Group companies thus this revenue is partly included in the revenue from other areas.

EUR 1,000	1-3/2020	1-3/2019	1-12/2019
Primary geographical location
Finland	44,957	46,046	173,789
Sweden	16,665	13,801	57,123
China	1,249	1,686	7,116
Central Europe	8,421	4,092	25,264
Total	71,292	65,625	263,292
Timing of revenue recognition
Transferred at a point in time	484	642	2,339
Transferred over time	70,808	64,982	260,953
Total	71,292	65,625	263,292

Non-recurring items

Items that are material either because of their size or their nature, and that are non-recurring, are considered as non-recurring items and are presented within the line items to which they best relate. The line items in which they are included in the income statement are specified in the table below.

EUR 1,000	1-3/2020	1-3/2019	1-12/2019
Other operating income	0	36	1,636
Staff costs and other operating expenses	-183	-240	-539
Operating profit (EBIT)	-183	-204	1,097

Formulas for key figures

IFRS key figures
Basic earnings per share =	(Profit for the review period attributable to equity holders of the parent company) x 100 Issue adjusted average number of shares during the review period
Diluted earnings per share =	(Profit for the review period attributable to equity holders of the parent company adjusted with dilutive effect) x 100
	Issue adjusted average number of shares during the review period adjusted with dilutive effect
Non-IFRS key figures
Operating profit (EBITA) =	Operating profit (EBIT) + amortization on fair value adjustments in acquisitions
Organic growth =	(Revenue current year - Revenue comparison year - Revenue from acquirees current year) x 100
Revenue growth from key accounts =	Revenue comparison year (Revenue from key accounts current year - Revenue from key accounts comparison
	year) x 100
	Revenue from key accounts comparison year
The share of revenue represented by Managed Services =	Revenue from Managed Services x 100
	Revenue
Return on equity (ROE), % =	Profit for the review period x 100 (Equity, total) average
Return on capital employed (ROCE),
before taxes, % =	(Profit before taxes + Financial expenses) x 100
	(Total equity and liabilities - non-interest bearing liabilities) average
Equity ratio, % =	Equity, total x 100 Total equity and liabilities - Advances received
Gross investments =	Total investments made to non-current assets including acquisitions and capitalized development costs
Net gearing, % =	(Interest-bearing liabilities - Cash and cash equivalents) x 100 Equity, total
Equity per share =	Equity, total Adjusted number of shares at the end of the review period
Market capitalization =	Number of outstanding shares at the end of the review period x last traded share price of the review period