Slide 1: Etteplan Q2 2023: Growth slowed down in a difficult market
Etteplan Q2 2023: Juha Näkki Juha Näkki President and CEO Toimitusjohtaja Growth slowed August 10, 2023 17.2.2023 down in a difficult Espoo, Finland Espoo market Public 1
Slide 2: Contents of the Q2 2023 presentation
Contents of the Q2 2023 presentation • Operating environment • Highlights • Financial development • Service areas • Etteplan’s targets • Q&A Public 2
Slide 3: Operating environment in Q2 2023
Operating environment in Q2 2023 Development in main markets: • Russian aggression against Ukraine and the subsequent elevation in The geopolitical tensions caused by Russian geopolitical tensions have increased aggression against Ukraine have increased uncertainty globally. uncertainty and accelera
Slide 4: Highlights Q2 2023
Highlights Q2 2023 + Operating cash flow was at a good level despite weaker market conditions. + The demand for Engineering-to-Order projects remained at a good level. + Engineering Solutions service area continued to grow, and its profitability was at a good level. + R&D investment activity showed
Slide 5: Revenue and operating profit (EBITA)
Revenue and operating profit (EBITA) 89.8 89.3 8.1 7.4 0.7% -8.9 % Engineering Solutions Software and Embedded Solutions Technical Communication Solutions Public 5
Slide 6: Revenue and personnel
Revenue and personnel Public 6
Slide 7: Revenue by customer segment
Revenue by customer segment 1-6/2023 Public 7
Slide 8: Financial development Q2 2023
Financial development Q2 2023 Public 8
Slide 9: Key Figures
Key Figures M€ 4-6/2023 4-6/2022 Change % 1-6/2023 1-6/2022 Change % 1-12/2022 Revenue 89.8 89.3 0.7 184.8 178.8 3.3 350.2 Revenue from outside Finland 42.6 43.0 -1.0 89.0 85.2 4.5 169.1 Operating profit (EBITA) 7.4 8.1 -8.9 15.0 17.1 -12.3 33.9 EBITA, % 8.3 9.1 8.1 9.6 9.7 Operating profit (EBIT) 6
Slide 10: Revenue
Revenue Q2 2023 89.8 M€ (89.3) +0.7% At comparable exchange rates +3.2% Organic +0.3% At comparable exchange rates +2.7% 1-6 2023 184.8 M€ (178.8) +3.3% At comparable exchange rates +5.5% Organic +2.6% At comparable exchange rates +4.8% In the difficult market situation, our growth slowed down. The
Slide 11: EBITA
EBITA Q2 2023 7.4 M€, 8.3% (8.1 M€, 9.1%) -8.9% Non-recurring -0.4 M€ (-0.3) 1-6 2023 15.0 M€, 8.1% (17.1 M€, 9.6%) -12.3% Non-recurring -1.3 M€ (-0.6) Market situation was weaker than expected and operational efficiency weakened, and we took measures to rectify the situation. The combined effect of
Slide 12: EBIT
EBIT Q2 2023 6.1 M€, 6.8% (6.8 M€, 7.6%) -10.3% Non-recurring -0.4 M€ (-0.3) Amortization related to acquisitions 1.3 M€ (1.3) 1-6 2023 12.4 M€, 6.7% (14.4 M€, 8.1%) -14,3% Non-recurring -1.3 M€ (-0.6) Amortization related to acquisitions 2.6 M€ (2.7) Public 12
Slide 13: Earnings per share and dividend
Earnings per share and dividend Earnings per share Q2 2023: 0.15€ (0.22) -31.8% Q4 1-6 2023: 0.32€ (0.46) -30.4% 0.26 Q4 0.3 The rise in interest rates had an impact on financing costs and earnings per share. Public 13
Slide 14: Cash flow
Cash flow Operating cash flow Q2 2023: 8.9 M€ (4.4) 1-6 2022: 16.1 M€ (13.0) Operating cash flow was at a good level. Cash flow accrues unevenly over the four quarters of the year due to periodic fluctuation in business. Public 14
Slide 15: Personnel
Personnel At the end of the period 3,942 (3,972) -0.8% Average 3,949 (3,913) 3,942 Compared to the end of June 2022, the number of personnel decreased by 0,8%. At the end of the review period, 1,938 (June 30, 2022: 1,923) people were employed by the Group outside of Finland. Public 15
Slide 16: Service areas Q2 2023
Service areas Q2 2023 Public 16
Slide 17: Engineering Solutions
Engineering Solutions Q2 2023 Revenue 51.0 M€ (46.2) +10.4% EBITA 5.2 M€, 10.3% (4.9 M€, 10.6%) 1-6 2023 Revenue 102.7 M€ (92.9) +10.6% EBITA 10.2 M€, 9.9% (9.8 M€, 10.6%) Personnel 2,177 (2,125) at the end of the period The demand for Engineering-to-Order services related to customer projects remai
Slide 18: Software and Embedded Solutions
Software and Embedded Solutions Q2 2023 Revenue 21.2 M€ (25.1) -15.4% EBITA 1.1 M€, 5.3% (1.9 M€, 7.4%) 1-6 2023 Revenue 45.1 M€ (49.7) -9.3% EBITA 2.8 M€, 6.1% (4.2 M€, 8.5%) Personnel 729 (817) at the end of the period Due to the uncertain market situation, the number of R&D projects launched duri
Slide 19: Technical Communication Solutions
Technical Communication Solutions Q2 2023 Revenue 17.4 M€ (17.7) -1.5% EBITA 1.4 M€, 8.1% (1.5 M€, 8.7%) 1-6 2023 Revenue 36.6 M€ (35.8) +2.3% EBITA 2.6 M€, 7.0% (3.4 M€, 9.4%) Personnel 872 (892) at the end of the period Demand situation weakened. Operational efficiency was at a moderate level, whi
Slide 20: Financial guidance for 2023 and Etteplan's targets
Financial guidance for 2023 and Etteplan’s targets Public 20
Slide 21: Financial guidance 2023 and market outlook
Financial guidance 2023 Market outlook The most important factor affecting Etteplan’s Etteplan specifies its financial business is the global development of the machinery and metal industry. Russia’s war of guidance for revenue and operating aggression in Ukraine and the subsequent profit (EBIT) wit
Slide 22: Financial targets 2023-2024
Financial targets 2023-2024 Revenue 55% 75% >10% >EUR 500 Revenue Managed Operating million outside Services share profit Finland of Revenue (EBITA) Rolling 12 months: EUR 356 million 1-6/2023: 48% 1-6/2023: 67% 1-6/2023: 8.1% Public 22
Slide 23: Questions?
Questions? » ») BE s Etteplan Public
Slide 24: Revenue and EBIT 2000-Q2/2023
Revenue and EBIT 2000-Q2/2023 Public 24
Slide 25: Investor relations contacts
Investor relations contacts Outi Torniainen Juha Näkki SVP, Marketing and President and CEO Communications Tel. +358 10 307 2077 Tel. +358 10 307 3302 Helena Kukkonen CFO Tel. +358 10 307 2003 Public 25
Slide 26: Public
x Etteplan Public