Slide 1: Etteplan Q4 2024: In a difficult market situation, we prepared for future growth
Etteplan Q4 2024: In a difficult market situation, we prepared for future growth JUHA NÄKKI, PRESIDENT AND CEO FEB RU A RY 12, 2025 Espoo, Fi nl and
Slide 2: Contents
Contents ▪ Highlights and overview 2024 ▪ Financial development Q4 2024 ▪ Service areas Q4 2024 ▪ Strategy development and financial guidance 2025 ▪ Q&A ETTEPLAN Q4 2024 INVESTOR PRESENTATION PUBLIC 2
Slide 3: Highlights 2024
Highlights 2024 + In a challenging market situation, our organic revenue decreased, but we achieved slight growth in total revenue supported by acquisitions. + The defense industry and the energy industry saw positive development in demand situation. + The demand situation in China improved substant
Slide 4: Operating environment in 2024 and development in main markets
Operating environment Development in main in 2024 markets • The market uncertainty and challenging market • The uncertainty caused by geopolitical tensions and the situation continued throughout 2024. The demand global political situation have affected demand in all of situation weakened further in
Slide 5: Key figures 2024
Key figures 2024 EPS Revenue EBITA EBIT (Basic earnings 361.0 M€ 24.4 M€ 18.4 M€ per share) +0.3% -21.1% -27.9% 0.41€ Board of Directors’ proposal for dividend 0.22 €/share ETTEPLAN Q4 2024 INVESTOR PRESENTATION PUBLIC 5
Slide 6: Revenue and personnel 2024
Revenue and personnel 2024 Revenue by service area Revenue by area Personnel by area 361.0 M€ 361.0 M€ 3,803 Engineering Solutions 53% (56%) Finland 47% (51%) Finland 49% (50 %) Software and Embedded Solutions 27% (24%) Scandinavia 28% (24%) Scandinavia 19% (19%) Technical Communication Solutions 20
Slide 7: Revenue by customer segment 2024
Revenue by customer segment 2024 0% 4% 8% 12% 16% 20% Energy 16% (15%) Automotive 12% (11%) Industrial Machinery 11% (13%) Forest Industry 10% (13%) Metal and Mining 10% (11%) Aerospace and Defence 6% (4%) ICT and Electronics 6% (6%) Building technology 5% (5%) Chemical 5% (5%) Healthcare and Medica
Slide 8: Financial development Q4 2024
Financial development Q4 2024 Placeholder for brand image
Slide 9: Key figures
Key figures M€ 10-12/2024 10-12/2023 Change % 1-12/2024 1-12/2023 Change % Revenue 91.3 95.2 -4.1 361.0 360.0 0.3 Revenue from outside Finland 48.3 48.4 -0.2 190.4 177.6 7.2 Operating profit (EBITA) 6.4 9.6 -32.7 24.4 30.9 -21.1 EBITA, % 7.1 10.0 6.8 8.6 Operating profit (EBIT) 5.0 8.2 -39.6 18.4 25
Slide 10: Revenue – Weak demand continued in Q4
Revenue – Weak demand continued in Q4 • Weakening demand REVENUE REVENUE affected revenue development Q4 1-12 2024 • Large number of holidays during 91.3 M€ 361.0 M€ Christmas season (95.2 M€) -4.1% (360.0 M€) +0.3% affected revenue • At comparable exchange rates -4.1% • At comparable exchange rates
Slide 11: EBITA – Result was negatively affected by significant non-recurring items
EBITA – Result was negatively affected by significant non-recurring items • Extensive EBITA EBITA adaptation measures had a Q4 1-12 2024 significant negative impact on operating profit 6.4 M€ 24.4 M€ • Adaptation (9.6 M€) -32.7% (30.9 M€) -21.1% measures were effective, as EBITA, %: 7.1% (10.0%) EBI
Slide 12: EBIT
EBIT • For Q4, amortization EBIT EBIT related to Q4 1-12 2024 5.0 M€ 18.4 M€ acquisitions was 1.5 M€ (1.4) • For full year, (8.2 M€) -39.6% (25.5 M€) -27.9% amortization EBIT, %: 5.4% (8.6%) EBIT, %: 5.1% (7.1%) related to • Non-recurring items -0.9 M€ (-0.2) • Non-recurring items -3.0 M€ (-1.7) acq
Slide 13: EPS – Lower profitability impacted EPS
EPS – Lower profitability impacted EPS • Basic earnings per share was impacted EARNINGS PER SHARE EARNINGS PER SHARE by lower Q4 1-12 2024 profitability • Board of Directors’ 0.12 € 0.41 € proposal for dividend (0.24 €) -48.6% (0.66 €) -37.9% 0.22€/share ETTEPLAN Q4 2024 INVESTOR PRESENTATION PUBLIC
Slide 14: Operating cash flow – Improved in Q4
Operating cash flow – Improved in Q4 • Despite the OPERATING OPERATING challenging market CASH FLOW CASH FLOW situation, cash flow was on a good level Q4 1-12 2024 • Operating cash flow accrues unevenly 14.2 M€ 31.0 M€ over the four (12.6 M€) (35.6 M€) quarters of the year due to periodic fluctuatio
Slide 15: Personnel
Personnel • At the end of the period 3,803 (3,902) Average 3,859 (3,949) • Compared to the end of December 2023, the number of personnel decreased by 2.5%. • At the end of the review period, 1,921 (1,965) people were employed by the Group outside of Finland. • Recruitment has been slowed down due to
Slide 16: Income statement
Income statement M€ 10-12/2024 10-12/2023 1-12/2024 1-12/2023 Change % Revenue 91.3 95.2 361.0 360.0 0.3 Other operating income 0.3 0.6 0.7 1.7 Materials and services -13.1 -12.5 -50.6 -43.3 Employee benefits expenses -59.1 -59.5 -233.1 -233.7 Other operating expenses -10.0 -10.7 -41.3 -40.3 Depreci
Slide 17: Balance sheet
Balance sheet M€ Dec 31, 2024 Dec 31, 2023 Goodwill 117.4 109.7 Other non-current assets 63.4 57.9 Non-current assets, total 180.8 167.6 Inventory 0.7 0.8 Trade and other receivables 91.0 92.7 Cash and cash equivalents 25.2 23.4 Current assets, total 116.9 117.0 Total assets 297.8 284.6 Equity, tota
Slide 18: Service areas Q4 2024
Placeholder for brand image Service areas Q4 2024 18
Slide 19: Engineering Solutions
Engineering Solutions Q4 2024 • The service area’s demand situation remained • Revenue 48.9 M€ (54.6) -10.5% weak. Adaptation measures were implemented. • Revenue from Managed Services 65% (66%) • EBITA 3.6 M€, (5.9 M€) • Adaptation measures caused significant non- • EBITA% 7.3% (10.8%) recurring it
Slide 20: Software and Embedded Solutions
Software and Embedded Solutions Q4 2024 • The market situation in the service area • Revenue 24.4 M€ (22.6) +8.3% remained challenging and we had to implement • Revenue from Managed Services 49% (54%) some adaptation measures. • EBITA 2.1 M€, (2.2 M€) • EBITA% 8.7% (9.6%) • Profitability in Q4 was l
Slide 21: Technical Communication Solutions
Technical Communication Solutions Q4 2024 • The service area’s demand situation was weak • Revenue 17.9 M€ (17.8) +0.1% as customers’ order backlogs declined. • Revenue from Managed Services 87% (89%) Adaptation measures were implemented and • EBITA 1.1 M€ (1.7 M€) they caused significant non-recurr
Slide 22: Strategy development and financial guidance 2025
Strategy development and financial guidance 2025
Slide 23: Financial targets and outcomes for 2020–2024
Financial targets and outcomes for 2020–2024 55% 75% >10% Revenue Revenue Managed Operating >EUR 500 outside Services share profit million Finland of Revenue (EBITA) 2024: EUR 361 million 2024: 53% 2024: 65% 2024: 6.8% ETTEPLAN Q4 2024 INVESTOR PRESENTATION PUBLIC 23
Slide 24: Strategy update 2025-2027
Strategy update 2025-2027 24
Slide 25: partner
i. partner Al and technology empowered service solutions Success with people Purpose We bring people and technologiestogether . to change things for the better Vision. The best service solutions to boost customers’ sustainability, productivity and digital business Business focus Widening solution po
Slide 26: Strategic targets 2027
Strategic targets 2027 35% 75% > EUR 500 million >10% AI-driven solutions Managed Services Revenue Operating profit share of revenue share of revenue (EBITA) 1-12/2024: 1-12/2024: 2% 1-12/2024: 65% EUR 361 million 1-12/2024: 6.8% ETTEPLAN Q4 2024 INVESTOR PRESENTATION PUBLIC 26
Slide 27: Financial guidance
Financial guidance 2025 Market outlook The most important factor affecting Etteplan’s Etteplan issues guidance for revenue and business is the global development of the machinery operating profit (EBIT) as a numerical range and metal industry. Uncertainty is continuing in the and issues the followin
Slide 28: Questions?
Questions? © etteplan a
Slide 29: Revenue and EBIT 2000-2024
Revenue and EBIT 2000-2024 M€ Revenue Operating profit (EBIT) M€ 400 35 350 30 300 25 250 20 200 15 150 10 100 5 50 0 0 -5 *Includes continued and discontinued operations ETTEPLAN Q4 2024 INVESTOR PRESENTATION PUBLIC 29
Slide 30: Investor Relations contacts
Investor Relations contacts OU TI TOR N I AINE N H E L E NA K U K KONE N J U H A N Ä KKI SV P , MA R K ETING A N D C FO P R E SIDENT A N D C E O C OMMU N ICATIONS +358 10 307 2003 +358 10 307 2077 +358 10 307 3302 ETTEPLAN Q4 2024 INVESTOR PRESENTATION PUBLIC 30
Slide 31: ETTEPLAN Q3 2024 INVESTOR PRESENTATION
ETTEPLAN Q3 2024 INVESTOR PRESENTATION 31