Slide 1: Etteplan Q2/2021: Strong and profitable growth
Etteplan Q2/2021: Strong and profitable growth Juha Näkki President and CEO August 11, 2021 Espoo, Finland Public 1
Slide 2: Contents of the presentation
Contents of the presentation • Highlights Q2/2021 • Financial development Q2/2021 • Etteplan’s targets • Q&A Public 2
Slide 3: Highlights of Q2/2021
Highlights of Q2/2021 Public 3
Slide 4: Highlights Q2/2021
Highlights Q2/2021 + The demand situation developed well on all markets. + Revenue grew to a new record level exceeding EUR 75 million: + Growth ~20%, organic growth >10%. + Growth in Software and Embedded Solutions >30%. + We once again exceeded our profitability target for EBITA of 10% and profita
Slide 5: Development of the operating environment in Q2/2021
• Market condition continued to improve despite Development the continuing uncertainty caused by the of the COVID-19 pandemic. operating • Travel restrictions affect the development of demand to some degree. environment • Orders received by customers have grown in Q2/2021 substantially and investmen
Slide 6: Market development in Etteplan's main markets in Q2/2021
Market • Finland: The general market situation continued to improve, and demand was at a development in good level. Etteplan’s main • Sweden and Denmark: demand developed favorably. markets in • Netherlands, Germany and Poland: the Q2/2021 general market demand continued to develop favorably. • Chin
Slide 7: Revenue and personnel 1-6/2021
Revenue by country Revenue and Revenue by service area Finland 57% (63%) personnel Scandinavia 24% (23%) Central Europe 15% (12%) 1-6/2021 China 4% (2%) Personnel by country (end of period) Engineering Solutions 57% (58%) Finland 57% (60%) Software and Embedded Solutions 26% (24%) Scandinavia 18% (1
Slide 8: Revenue by customer segment 1-6/2021
0% 4% 8% 12% 16% Revenue by Industrial Machinery and Equipment 15% (14%) customer Energy Forest, Pulp and Paper 14% (14%) 13% (14%) segment Lifting and Hoisting 10% (10%) 1-6/2021 Mining Automotive and Transportation 7% (6%) 10% (10%) ICT 7% (7%) Medical Technology 6% (4%) Chemical 4% (5%) Aerospace
Slide 9: Key figures 4-6/2021
Key figures EUR 1,000 4-6/2021 4-6/2020 Change % 4-6/2021 Revenue 75,043 62,895 19.3 Operating profit (EBITA) 7,794 6,285 24.0 EBITA, % 10.4 10.0 Operating profit (EBIT) 6,729 5,359 25.6 EBIT, % 9.0 8.5 Basic earnings per share, EUR 0.20 0.16 25.0 Equity ratio, % 40.3 37.7 Operating cash flow 12,421
Slide 10: Key figures 1-6/2021
Key figures EUR 1,000 1-6/2021 1-6/2020 Change % 1-12/2020 1-6/2021 Revenue 147,993 134,187 10.3 259,702 Operating profit (EBITA) 15,473 12,865 20.3 26,172 EBITA, % 10.5 9.6 10.1 Operating profit (EBIT) 13,323 11,015 21.0 22,380 EBIT, % 9.0 8.2 8.6 Basic earnings per share, EUR 0.41 0.33 24.2 0.69 E
Slide 11: Outlook
Market outlook 2021 The most important factor affecting Etteplan’s business is the global development of the machinery and metal industry. The Outlook prolongation of the global COVID-19 pandemic continues to have an impact on the global economy and market situation and is still causing uncertainty
Slide 12: Financial development Q2/2021
Financial development Q2/2021 Public 12
Slide 13: Revenue
Revenue 4-6/2021: 75.0 M€ (62.9 M€) Growth 19.3% With comparable exchange rates 18.1% Organic growth 12.4% With comparable exchange rates 11.2% 1-6/2021: 148.0 M€ (134.2 M€) Growth 10.3% With comparable exchange rates 9.2% • The demand situation was good. Organic growth 3.7% • We called temporarily
Slide 14: Operating profit (EBITA)
Operating profit (EBITA) 4-6/2021: 7.8 M€, 10.4% (6.3 M€, 10.0%) Non-recurring items -0.4 (-0.3) M€ 1-6/2021: 15.5 M€, 10.5% (12.9 M€, 9.6%) Non-recurring items -0.4 (-0.5) M€ • Profitability was again at a good level due to good operational efficiency and the temporary changes to the cost structure
Slide 15: Operating profit (EBIT)
Operating profit (EBIT) 4-6/2021: 6.7 M€, 9.0% (5.4 M€, 8.5%) Non-recurring items -0.4 (-0.3) M€ 1-6/2021: 13.3 M€, 9.0% (11.0 M€, 8.2%) Non-recurring items -0.4 (-0.5) M€ • Amortization related to acquisitions were EUR 1.1 million in 4-6/2021 and EUR 2.2 million in 1-6/2021. Public 15
Slide 16: Engineering Solutions
M€ Engineering Solutions Revenue 4-6/2021: 42.0 M€ (35.9 M€) Change 17.0% 1-6/2021: 83.4 M€ (77.3 M€) Change 8.0% Operating profit (EBITA) Revenue from Managed Services Revenue EBITA, % 4-6/2021: 4.2 M€, 9.9% • The demand situation was good. (3.7 M€, 10.3%) • Our success in the sales of outsourcing
Slide 17: Software and Embedded Solutions
M€ Software and Embedded Solutions Revenue 4-6/2021: 19.9 M€ (15.2 M€) Change 30.3% 1-6/2021: 38.7 M€ (32.2 M€) Change 20.1% Revenue from Managed Services Revenue EBITA, % Operating profit (EBITA) • Demand situation is very good. 4-6/2021: 2.2 M€, 10.9% • We acquired the Polish software development
Slide 18: Technical Documentation Solutions
Technical Documentation Solutions Revenue 4-6/2021: 13.0 M€ (11.6 M€) Change 11.8% 1-6/2021: 25.5 M€ (24.4 M€) Change 4.4% Revenue from Managed Services Revenue EBITA, % Operating profit (EBITA) • The demand situation was good. 4-6/2021: 1.6 M€, 12.5% (1.0 M€, 8.9%) • Profitability improved to an ex
Slide 19: Earnings per share and dividends
Earnings per € Earnings per share Dividend share and dividends Earnings per share 4-6/2021: 0.20 € (0.16 €) Change 25.0% 1-6/2021: 0.41 € (0.33 €) Change 24.2% Public 19
Slide 20: Cash flow
Cash flow Operating cash flow 4-6/2021: 12.4 M€ (18.0 M€) 1-6/2021: 13.7 M€ (20.3 M€) Cash flow accrues unevenly over • As expected, operating cash flow decreased year-on-year. the four quarters of the year due to • Strong growth tied working capital; operating expenses periodic fluctuation in busin
Slide 21: Personnel at the end of the period
Personnel at the end of the period • The number of personnel increased by 6.9% from the end of 2020. • Compared to June 30, 2020, the number of personnel increased by 5.9% and stood at 3,491 employees (June 30, 2020: 3,297). • At the end of the review period, 1,510 (June 30, 2020: 1,303) people were
Slide 22: Income statement
Income MEUR Revenue 1-6/2021 148.0 1-6/2020 134.2 Change % 10.3 1-12/2020 259.7 statement Other operating income 0.5 1.0 3.6 Materials and services -14.7 -11.4 -23.3 Employee benefits expenses -98.8 -92.6 -177.3 Other operating expenses -12.9 -11.6 -22.3 Depreciation and amortization -8.8 -8.6 -18.0
Slide 23: Balance sheet
Balance sheet MEUR Jun 30, 2021 Jun 30, 2020 Dec 31, 2020 Goodwill 91.8 78.9 83.7 Other non-current assets 56.5 46.9 52.6 Non-current assets, total 148.3 125.8 136.3 Inventory 0.4 0.3 0.3 Trade and other receivables 66.0 54.6 56.9 Cash and cash equivalents 13.1 26.2 24.4 Current assets, total 79.5 8
Slide 24: Etteplan's targets
Etteplan’s targets Public 24
Slide 25: Financial targets 2020-2024
Revenue 50% 75% 10% Financial > EUR 500 Revenue Managed Operating profit targets Services share million outside Finland of revenue (EBITA) 2020-2024 Rolling 12 months: 1-6/2021: 43% 1-6/2021: 63% 1-6/2021: 10.5% EUR 274 million ACTIONS • Constant • Expanding our • Service • Change in development of
Slide 26: Questions?
Questions? Confidential 26
Slide 27: Revenue and EBIT 2000-2021
Revenue and M€ 300 Revenue Operating profit (EBIT) M€ 30 EBIT 2000-2021 25 250 20 200 15 150 10 100 5 50 0 0 -5 *Includes continued and discontinued operations Public 27
Slide 28: Investor relations contacts
Investor relations contacts Per-Anders Gådin Juha Näkki CFO President and CEO Tel. +46 70 399 7929 Tel. +358 10 307 2077 Outi Torniainen SVP, Marketing and Communications Tel. +358 10 307 3302 Public 28
Slide 29: Public
x Etteplan Public