Slide 1: Etteplan Q3 2024: More difficult quarter than expected
Etteplan Q3 2024: More difficult quarter than expected JUHA NÄKKI, PRESIDENT AND CEO OCTOB ER 31, 2024 Espoo, Fi nl and
Slide 2: Contents of the Q3 2024 presentation
Contents of the Q3 2024 presentation ▪ Highlights ▪ Operating environment ▪ Financial development ▪ Etteplan’s targets ▪ Financial guidance 2024 ▪ Q&A ETTEPLAN Q3 2024 INVESTOR PRESENTATION PUBLIC 2
Slide 3: Highlights Q3 2024
Highlights Q3 2024 + Despite the very difficult operating environment our revenue remained at the same level as the previous year. + We continued to invest in our business and service offering and won new business with our new AI-offering. + In China, the trend of purchasing services developed favor
Slide 4: Operating environment in Q3 2024 and development in main markets
Operating environment Development in main in Q3 2024 markets • The conflict in the Middle East has increased • Increased uncertainty caused by geopolitical geopolitical tensions, which further increases tensions and the slower-than-expected decrease uncertainty in the markets. in interest rates have
Slide 5: Revenue and operating profit (EBITA) Q3 2024
Revenue and operating profit (EBITA) Q3 2024 80.0 80.0 6.3 2.9 +0.0% -53.8% Engineering Solutions Software and Embedded Solutions Technical Communication Solutions Group ETTEPLAN Q3 2024 INVESTOR PRESENTATION PUBLIC 5
Slide 6: Revenue and personnel Q3 2024
Revenue and personnel Q3 2024 ETTEPLAN Q3 2024 INVESTOR PRESENTATION PUBLIC 6
Slide 7: Revenue by customer segment 2024
Revenue by customer segment 2024 0% 4% 8% 12% 16% 20% Energy 16% (15%) Industrial Machinery 12% (14%) Automotive 12% (10%) Forest Industry 10% (13%) Metal and Mining 10% (11%) ICT and Electronics 5% (6%) Aerospace and Defence 5% (4%) Building technology 5% (5%) Healthcare and Medical technology 5% (
Slide 8: Financial development Q3 2024
Financial development Q3 2024 Placeholder for brand image
Slide 9: Key Figures
Key Figures M€ 7-9/2024 7-9/2023 Change % 1-9/2024 1-9/2023 Change % 1-12/2023 Revenue 80.0 80.0 0.0 269.7 264.8 1.9 360.0 Revenue from outside Finland 42.8 40.2 6.5 142.0 129.1 10.0 177.6 Operating profit (EBITA) 2.9 6.3 -53.8 17.9 21.3 -15.9 30.9 EBITA, % 3.7 7.9 6.6 8.1 8.6 Operating profit (EBIT
Slide 10: Revenue
Revenue Q3 2024 80.0 M€ (80.0) +0.0% At comparable exchange rates -0.2% Organic -4.2% At comparable exchange rates -4.5% 1-9 2024 269.7 M€ (264.8) +1.9% At comparable exchange rates +1.6% Organic -3.8% At comparable exchange rates -4.0% Revenue from key accounts decreased by 10.1% in Q3. ▪ Demand we
Slide 11: EBITA
EBITA Q3 2024 2.9 M€, 3.7% (6.3 M€, 7.9%) -53.8% Non-recurring -1.4 M€ (-0.2) 1-9 2024 17.9 M€, 6.6% (21.3 M€, 8.1%) -15.9% Non-recurring -2.1 M€ (-1.5) ▪ Operational efficiency was affected by weakening demand situation. ▪ We implemented adaptation measures in all our service areas to improve opera
Slide 12: EBIT
EBIT Q3 2024 M€ EBIT, % % 1.4 M€, 1.8% (5.0 M€, 6.2%) -71.3% 10 10 Amortization related to acquisitions 1.5 M€ (1.4) 8 8 6.2% 1-9 2024 6 6 13.5 M€, 5.0% (17.3 M€, 6.5%) -22.4% 5.0 M€ 4 4 Amortization related to acquisitions 4.5 M€ (4.0) 2 1.8% 2 1.4 M€ 0 0 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 ETTEPLA
Slide 13: Earnings per share and dividend
Earnings per share and dividend Earnings per share Q3 2024: 0.00 € (0.10) -100.0% 1-9 2024: 0.29 € (0.43) -32.6% Q1-Q3 ▪ Earnings per share were impacted 0.3 Q1-Q3 0.29 by higher financial expenses. ETTEPLAN Q3 2024 INVESTOR PRESENTATION PUBLIC 13
Slide 14: Cash flow
Cash flow Operating cash flow Q3 2024: -0.3 M€ (7,1) 1-9 2024: 16.8 M€ (23,0) ▪ Cash flow was affected by non-recurring costs and an increase in trade receivables, which was due to change in customers’ payment behavior. Cash flow accrues unevenly over the four quarters of the year due to periodic fl
Slide 15: Personnel
Personnel At the end of the period 3,870 (4,010) Average 3,871 (3,954) Compared to the end of September 2023, the number of personnel decreased by 3.5%. At the end of the review period, 1,940 (September 30,2023: 2,025) people were employed by the Group outside of Finland. ▪ Recruitment has been slow
Slide 16: Income statement
Income statement M€ 7-9/2024 7-9/2023 1-9/2024 1-9/2023 Change % 1-12/2023 Revenue 80.0 80.0 269.7 264.8 1.9 360.0 Other operating income 0.2 0.4 0.5 1.1 1.7 Materials and services -11.3 -10.5 -37.5 -30.8 -43.3 Employee benefits expenses -53.0 -51.1 -174.0 -174.2 -233.7 Other operating expenses -9.9
Slide 17: Balance sheet
Balance sheet M€ Sep 30, 2024 Sep 30, 2023 Dec 31, 2023 Goodwill 117.8 108.5 109.7 Other non-current assets 65.5 58.5 57.9 Non-current assets, total 183.3 167.0 167.6 Inventory 0.8 0.4 0.8 Trade and other receivables 93.3 88.4 92.7 Cash and cash equivalents 17.2 18.6 23.4 Current assets, total 111.3
Slide 18: Service areas Q3 2024
Placeholder for brand image Service areas Q3 2024 18
Slide 19: Engineering Solutions
Engineering Solutions Q3 2024 Revenue 42.0 M€ (45.1) -6.9% Revenue from Managed Services 65% (67%) EBITA 1.2 M€, 2.9% (3.9 M€, 8.6%) 1-9 2024 Revenue 143.9 M€ (147.8) -2.7% Revenue from Managed Services 65% (66%) EBITA 9.8 M€, 6.8% (14.1 M€, 9.5%) Personnel 2,160 (2,244) at the end of the period ▪ C
Slide 20: Software and Embedded Solutions
Software and Embedded Solutions Q3 2024 Revenue 21.7 M€ (19.2) +13.0% Revenue from Managed Services 50% (56%) EBITA 1.5 M€, 6.8% (2.0 M€, 10.4%) Revenue from Managed Services Revenue EBITA, % M€ 1-9 2024 Revenue 72.9 M€ (64.3) +13.4% Revenue from Managed Services 48% (54%) EBITA 5.7 M€, 7.9% (4.8 M€
Slide 21: Technical Communication Solutions
Technical Communication Solutions Q3 2024 Revenue 16.2 M€ (15.5) +4.6% Revenue from Managed Services 88% (91%) EBITA 0.6 M€, 3.9% (0.7 M€, 4.5%) 1-9 2024 Revenue 52.6 M€ (52.1) +1.0% Revenue from Managed Services 88% (90%) EBITA 3.2 M€, 6.1% (3.3 M€, 6.3%) Personnel 833 (862) at the end of the perio
Slide 22: Etteplan's targets and financial guidance for 2024
Etteplan’s targets and financial guidance for 2024
Slide 23: Financial targets 2024
Financial targets 2024 Revenue 55% 75% >10% >EUR 500 Revenue Managed Operating million outside Services share profit Finland of Revenue (EBITA) Rolling 12 months: EUR 365 million 1-9/2024: 54% 1-9/2024: 65% 1-9/2024: 6.6% ETTEPLAN Q3 2024 INVESTOR PRESENTATION PUBLIC 23
Slide 24: Financial guidance
Financial guidance 2024 Market outlook The most important factor affecting Etteplan’s Etteplan lowered its guidance for revenue business is the global development of the machinery and operating profit (EBIT) on October 15, and metal industry. The expansion of the conflict in 2024 and issued the foll
Slide 25: Questions?
Questions? © etteplan a
Slide 26: Revenue and EBIT 2000-2024
Revenue and EBIT 2000-2024 M€ Revenue Operating profit (EBIT) • 2024 Rolling 12 months 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 Q3 2024 INVESTOR PRESENTATION PUBLIC 26
Slide 27: 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 Q3 2024 INVESTOR PRESENTATION PUBLIC 27
Slide 28: ETTEPLAN Q3 2024
ETTEPLAN Q3 2024 INVESTOR PRESENTATION 28