Slide 1: Etteplan Q4 2023: Navigating a difficult operating environment
Etteplan Q4 2023: Navigating a difficult operating environment JUHA NÄKKI, PRESIDENT AND CEO February 8, 2024 Espoo, Fi nl and
Slide 2: Contents
Contents ▪ Highlights 2023 ▪ Overview 2023 ▪ Financial development Q4 2023 ▪ Etteplan’s targets ▪ Financial guidance 2024 ▪ Q&A ETTEPLAN Q4 2023 INVESTOR PRESENTATION PUBLIC 2
Slide 3: Highlights 2023
Highlights 2023 + Revenue increased slightly during the year, despite the difficult operating environment. + Adaptation measures to recover profitability in weaker performing businesses were successful. + Operating cash flow improved significantly. + Engineering Solutions service area’s operational
Slide 4: Operating environment in 2023 / Development in main markets
Operating environment Development in main in 2023 markets • Increased geopolitical tensions are • Growing geopolitical tensions, inflation maintaining uncertainty globally. and rising interest rates have increased • Uncertainty and the rise in interest rates uncertainty in all our operating countrie
Slide 5: Key figures 2023
Key figures 2023 EPS Revenue EBITA EBIT (basic earnings 360.0 M€ 30.9 M€ 25.5 M€ per share) +2.8% -8.9% -10.8% 0.66€ Board of Directors proposal for dividend 0.30 €/share ETTEPLAN Q4 2023 INVESTOR PRESENTATION PUBLIC 5
Slide 6: Revenue and personnel 2023
Revenue and personnel 2023 ETTEPLAN Q4 2023 INVESTOR PRESENTATION PUBLIC 6
Slide 7: Revenue by customer segment 2023
Revenue by customer segment 2023 ETTEPLAN Q4 2023 INVESTOR PRESENTATION PUBLIC 7
Slide 8: Financial development Q4 2023
Financial development Q4 2023 ETTEPLAN Q4 2023 INVESTOR PRESENTATION PUBLIC 8
Slide 9: Key Figures
Key Figures M€ 10-12/2023 10-12/2022 Change % 1-12/2023 1-12/2022 Change % Revenue 95.2 91.0 4.6 360.0 350.2 2.8 Revenue from outside Finland 48.4 44.2 9.6 177.6 169.1 5.1 Operating profit (EBITA) 9.6 9.7 -1.7 30.9 33.9 -8.9 EBITA, % 10.0 10.7 8.6 9.7 Operating profit (EBIT) 8.2 8.4 -2.6 25.5 28.6 -
Slide 10: Revenue
Revenue Q4 2023 95.2 M€ (91.0) +4.6% At comparable exchange rates +6.5% Organic +0.5% At comparable exchange rates +2.5% 1-12 2023 360.0 M€ (350.2) +2.8% At comparable exchange rates +4.7% Organic +0.5% At comparable exchange rates +2.4% ▪ Demand situation weakened towards the end of the year. ▪ Rev
Slide 11: EBITA
EBITA Q4 2023 9.6 M€, 10.0 % (9.7 M€, 10.7%) -1.7% Non-recurring -0,2 M€ (0,3) 1-12 2023 30.9 M€, 8.6 % (33,9 M€, 9.7%) -8.9% Non-recurring -1,7 M€ (-1,0) ▪ Adaptation measures in the declining demand environment improved operational efficiency and we achieved a good result. ▪ In Q4 the result was a
Slide 12: EBIT
EBIT Q4 2023 8.2 M€, 8.6% (8.4 M€, 9.2%) -2.6% Non-recurring -0,2 M€ (0,3) Amortization related to acquisitions 1,4 M€ (1,3) 1-12 2023 25.5 M€, 7.1% (28.6 M€, 8.2%) -10.8% Non-recurring -1,7 M€ (-1,0) Amortization related to acquisitions 5,3 M€ (5,3) ETTEPLAN Q4 2023 INVESTOR PRESENTATION PUBLIC 12
Slide 13: Earnings per share and dividend
Earnings per share and dividend Earnings per share Q4 2023: 0.24 € (0.30) -22.2% 2023: 0.66 € (0.73) -9.3% Lower profitability and higher interests impacted EPS. Board of Directors proposal for dividend 0.30 €/share. ETTEPLAN Q4 2023 INVESTOR PRESENTATION PUBLIC 13
Slide 14: Cash flow
Cash flow M€ Operating cash flow Cash flow after investments Operating cash flow 40 35,6 Q4 2023: 12,6 M€ (11,0) 35 30 28,7 1-12 2023: 35,6 M€ (28,1) 25 20 15 12,6 12,0 10 5 0 2021 2022 2023 Q4/2022 Q4/2023 Cash flow accrues unevenly over the four quarters of the year due to periodic fluctuation in
Slide 15: Personnel
Personnel Finland Scandinavia Central Europe China At the end of the period 3,902 (3,929) -0.7% 3 902 4 000 Average 3,949 (3,936) 3 500 Compared to the end of December 2022, the number of personnel decreased by 3 000 0.7%. 2 500 At the end of the review period, 1,965 2 000 (December 31,2022: 1,941)
Slide 16: Service areas Q4 2023
Service areas Q4 2023 ETTEPLAN Q4 2023 INVESTOR PRESENTATION 16
Slide 17: Engineering Solutions
Engineering Solutions Q4 2023 Revenue 54.6 M€ (48.9) +11.7% Revenue from Managed Services 66% (65%) EBITA 5.9 M€, 10.8 % (5.3 M€, 10.8%) 1-12 2023 Revenue 202.4 M€ (183.7) +10.2% Revenue from Managed Services 66% (64%) EBITA 19.9 M€, 9.8 % (19.4 M€, 10.6%) Personnel 2,190 (2,092) at the end of the p
Slide 18: Software and Embedded Solutions
Software and Embedded Solutions Q4 2023 Revenue 22.6 M€ (24.2) -6.9% Revenue from Managed Services 54% (52%) EBITA 2.2 M€, 9.6 % (2,8 M€, 11.6%) 1-12 2023 Revenue 86.9 M€ (95,9) -9.4% Revenue from Managed Services 54% (52%) EBITA 6.9 M€, 8.0 % (9.2 M€, 9.6%) Personnel 704 (793) at the end of the per
Slide 19: Technical Communication Solutions
Technical Communication Solutions Q4 2023 Revenue 17.8 M€ (17.7) +0.9% Revenue from Managed Services 89% (89%) EBITA 1.7 M€, 9.4% (1.4 M€, 7.7%) ▪ Henkilöstö 862 (894) kauden lopussa 1-12 2023 Revenue 70.0 M€ (69.8) +0.2% Revenue from Managed Services 89% (89%) EBITA 4.9 M€, 7.1 % (6.1 M€, 8.7%) Per
Slide 20: Etteplan’s targets and financial guidance for 2024
Etteplan’s targets and financial guidance for 2024 ETTEPLAN Q4 2023 INVESTOR PRESENTATION 20
Slide 21: 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 360 million 1-12/2023: 49% 1-12/2023: 68% 1-12/2023: 8.6% ETTEPLAN Q4 2023 INVESTOR PRESENTATION PUBLIC 21
Slide 22: Financial guidance
Financial guidance 2024 Market outlook The most important factor affecting Etteplan’s Etteplan issues guidance for revenue business is the global development of the machinery and operating profit (EBIT) as a and metal industry. Continued Russian aggression numerical range and issues the against Ukra
Slide 23: Questions?
Questions? © etteplan a7
Slide 24: Revenue and EBIT 2000-2023
Revenue and EBIT 2000-2023 *Includes continued and discontinued operations ETTEPLAN Q4 2023 INVESTOR PRESENTATION PUBLIC 24
Slide 25: 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 2023 INVESTOR PRESENTATION PUBLIC 25
Slide 26: For the better
For the better Footer lorem ipsum 26