Slide 1: Half Year Financial Report January-June 2017
Half Year Financial Report January-June 2017 Good organic growth continued, operating profit rose to record level President and CEO Juha Näkki August 10, 2017 1
Slide 2: Contents
Contents 1.Highlights in the second quarter 2.Financial development 3.Etteplan’s targets
Slide 3: Highlights in the second quarter
Highlights in the second quarter Engineering with a difference
Slide 4: Highlights 4-6/2017
Highlights 4-6/2017 + In the improved market situation we were able to leverage our service offering and strong market position. + Organic growth continued and was 9.0% with comparable exchange rates. + Our operating profit rose to record levels. + Cash flow improved significantly + Hours sold to Ch
Slide 5: Acquisitions during the report period
Acquisitions during the report period • SDS Aura Oy, a Finnish company that specializes in shipbuilding strength calculations and steel structure engineering. – A total of 16 people, strengthens our engineering expertice. • Sorona Innovation AB, which specializes in technical documentation solutions
Slide 6: Our operating environment develops positively
Our operating environment develops positively • Our operating environment developed favorably and the market situation is good. • The demand for plant engineering picked up in all industries, particularly in the form of maintenance investments. • The uncertainty decreased, but the unpredictable chan
Slide 7: Market development in Etteplan's main markets in April-June 2017
Market development in Etteplan’s main markets in April-June 2017 • The overall market development was positive • In Finland the market situation has improved and good demand is expected to continue. • In Sweden, market demand remained at a very good level. • In Germany, the Netherlands and Poland th
Slide 8: Revenue by service area and by country
Revenue by service area and by country 1-6/2017 Revenue by service area Revenue by country
Slide 9: Revenue by customer segment 1-6/2017
Revenue by customer segment 1-6/2017 0% 4% 8% 12% 16% 20% Forest and paper 14% (15%) Energy and power transmission 13% (15%) Lifting and hoisting 12% (13%) Industrial machinery and components 12% (10%) Mining 11% (12%) ICT 6% (2%) Transportation and vehicle 5% (4%) Aerospace and defense 4% (6%) Medi
Slide 10: Key figures 4-6/2017
Key figures 4-6/2017 (EUR 1,000) 4-6/2017 4-6/2016 Change % Revenue 54,314 50,211 8.2 EBIT from business operations 4,669 2,911 60.4 EBIT from business operations, % 8.6 5.8 Operating profit (EBIT) 4,218 2,352 79.3 EBIT, % 7.8 4.7 Basic earnings per share, EUR 0.12 0.08 50.0 Equity ratio, % 40.1 38.
Slide 11: Key figures 1-6/2017
Key figures 1-6/2017 (EUR 1,000) 1-6/2017 1-6/2016 Change % 1-12/2016 Revenue 109,116 88,814 22.9 183,938 EBIT from business operations 8,998 5,090 76.8 12,071 EBIT from business operations, % 8.2 5.7 6.6 Operating profit (EBIT) 8,045 4,248 89.4 10,131 EBIT, % 7.4 4.8 5.5 Basic earnings per share, E
Slide 12: Outlook
Outlook Market outlook 2017 • The most important factor in the development of Etteplan's business is the global development of the machinery and metal industry. Our business environment is currently developing favorably in all market areas. The development of the Central European markets is expected
Slide 13: Financial development
Financial development Engineering with a difference
Slide 14: Revenue
Revenue 4-6/2017: EUR 54.3 million (4-6/2016: EUR 50.2 million) 1-6/2017: EUR 109.1 million (1-6/2016: EUR 88.8 million) 60 • Q2: Revenue increased by 8.2%, 54.3 (with comparable exchange rates 50.2 9.0%). Organic growth was 7.8%, 50 (with comparable exchange rates 8.6 %). • H1: Revenue increased by
Slide 15: EBIT from business operations
EBIT from business operations 4-6/2017: EUR 4.7 million, 8.6% (4-6/2016: EUR 2.9 million, 5.8%) 1-6/2017: EUR 9.0 million, 8.2% (1-6/2016: EUR 5.1 million, 5.7%) • Q2: EBIT from business operations improved by 60.4%. EBIT from business operations, % • Exceptional items had a combined negative effect
Slide 16: Operating profit (EBIT) and EBIT %
Operating profit (EBIT) and EBIT % 4-6/2017: EUR 4.2 million, 7.8% (4-6/2016: EUR 2.4 million, 4.7%) 1-6/2017: EUR 8.0 million, 7.4% (1-6/2016: EUR 4.2 million, 4.8%) Amortization related to acquisitions were EUR 0.5 million in 4-6/2017 and EUR 1.0 million in 1-6/2017.
Slide 17: Development by service area 1-6/2017
Development by service area 1-6/2017 Revenue Revenue from Managed EBIT from business Services operations
Slide 18: Engineering services
Engineering services Revenue 4-6/2017: EUR 30.8 million (4-6/2016: EUR 29.7 million ) Revenue 1-6/2017: EUR 61.9 million (1-6/2016: EUR 59.7 million ) • Revenue increased in April-June by 3.7%. • In April-June EBIT from business operations was EUR 2.7 million (EUR 1.9 million) or 8.7% (6.4%) of reve
Slide 19: Embedded systems and IoT
Embedded systems and IoT Revenue 4-6/2017: EUR 13.2 million (4-6/2017: EUR 11.7 million) Revenue 1-6/2017: EUR 26.8 million (1-6/2017: EUR 11.7 million) • Revenue increased in April-June by 13.5%. • In April-June EBIT from business operations was EUR 1.2 million (EUR 1.2 million) or 8.8% (10.5%) of
Slide 20: Technical documentation
Technical documentation Revenue 4-6/2017: EUR 10.3 million (4-6/2016: EUR 8.9 million ) Revenue 1-6/2017: EUR 20.4 million (1-6/2016: EUR 17.5 million ) • Revenue increased in April-June by 15,8%. • In April-June EBIT from business operations was EUR 1.0 million (EUR 0.6 million) or 9.5% (6.2%) of r
Slide 21: Earnings per share and dividends
Earnings per share and dividends Earnings per share 4-6/2017: EUR 0.12 (4-6/2016: EUR 0.08) Earnings per share 1-6/2017: EUR 0.24 (1-6/2016: EUR 0.15) • The dividend for year 2016 was EUR 0.16 per share. The dividend was paid on April 13, 2017. € *Comparison periods' earnings per share have been iss
Slide 22: Cash flow
Cash flow Operating cash flow 4-6/2017: EUR 5.4 million (4-6/2016: EUR 1.1 million) Operating cash flow 1-6/2017: EUR 7.3 million (1-6/2016: EUR -0.5 million) • Operating cash flow improved significantly year- on-year. • Cash flow improved due to the optimization of working capital and a better mix
Slide 23: Return on capital employed (ROCE), %
Return on capital employed (ROCE), % 4-6/2017: 19.3% (4-6/2016: 13.9%) 1-6/2017: 18.6% (1-6/2016: 12.8%) Engineering services business does not tie significant capital. For this reason return on capital employed should be at least 20%. M€
Slide 24: Personnel at end of the period
Personnel at end of the period 1-6/2017: 2,731 (1-6/2016: 2,487) • The amount of personnel grew by 9,8% year-on-year. • At the end of the review period, 934 (Jun 30, 2016: 822) people were employed by the Group outside of Finland.
Slide 25: Income statement
Income statement (MEUR) 1-6/2017 1-6/2016 Change % 1-12/2016 Revenue 109.1 88.8 22.9 183.9 Other operating income 0.1 0.3 0.5 Materials and services -9.7 -5.3 -13.9 Staff costs -74.6 -64.6 -129.2 Other operating expenses -14.2 -12.7 -26.4 Depreciation and amortization -2.7 -2.3 -4.8 Operating profit
Slide 26: Balance sheet
Balance sheet (MEUR) Jun 30, 2017 Jun 30, 2016 Dec 31, 2016 Goodwill 59.5 57.9 58.1 Other non-current assets 23.0 23.2 22.0 Non-current assets, total 82.5 81.1 80.2 Inventory 0.3 0.4 0.3 Trade and other receivables 51.5 42.5 49.3 Cash and cash equivalents 4.3 5.9 4.7 Current assets, total 56.1 48.9
Slide 27: Etteplan's targets
Etteplan’s targets Engineering with a difference
Slide 28: We are progressing towards our targets
We are progressing towards our targets FINANCIAL TARGETS 15% 10% 65% >30% On average annual EBIT from business Managed Services Equity ratio revenue growth operations share of revenue by 2019 1-6/2017: 22.9% 1-6/2017: 8.2% 1-6/2017: 57% 1-6/2017: 40.1% ACTIONS • Growth in key • Change in business •
Slide 29: Revenue and EBIT 2000-2017
Revenue and EBIT 2000-2017 *includes continued and discontinued operations
Slide 30: IR contacts
IR contacts Juha Näkki President and CEO Tel. +358 10 307 2077 Outi Torniainen Senior Vice President, Communications and Marketing Tel. + 358 40 5121 375 Per-Anders Gådin Senior Vice President, Finance Tel. +46 70 399 7929
Slide 31: Engineering with a difference
Engineering with a difference