ETTEPLAN OYJ Financial Statement Review February 10, 2022, at 1:00 p.m.
ETTEPLAN 2021: Revenue and operating profit (EBITA) rose to a new level
Key points October-December 2021
· The Group’s revenue grew by 21.3 per cent and was EUR 85.3 million (10
-12/2020: EUR 70.3 million). At comparable exchange rates, revenue increased by
20.6 per cent.
· Operating profit (EBITA) increased by 10.9 per cent and was EUR 9.0 (8.1)
million, or 10.5 (11.5) per cent of revenue.
· Operating profit (EBIT) increased by 10.5 per cent and was EUR 7.8 (7.1)
million, or 9.2 (10.1) per cent of revenue.
· Operating cash flow was EUR 13.2 (17.5) million.
· Basic earnings per share were EUR 0.26 (0.23).
Key points January-December 2021
· The Group’s revenue grew by 15.6 per cent and was EUR 300.1 million (1
-12/2020: EUR 259.7 million). At comparable exchange rates, revenue increased by
14.7 per cent.
· Operating profit (EBITA) increased by 15.2 per cent and was EUR 30.1 (26.2)
million, or 10.0 (10.1) per cent of revenue.
· Operating profit (EBIT) increased by 15.1 per cent and was EUR 25.8 (22.4)
million, or 8.6 (8.6) per cent of revenue.
· Operating cash flow was EUR 27.1 (38.0) million.
· Basic earnings per share were EUR 0.80 (0.69).
· The Board of Directors’ dividend proposal is EUR 0.40 (0.34) per share.
Etteplan also monitors non-IFRS performance measures, because they provide
additional information on Etteplan’s development. More information on
performance measures is provided at the end of the release.
Key figures
EUR 1,000 10-12/2021 10-12/2020 1-12/2021 1-12/2020
Revenue 85,258 70,295 300,111 259,702
Operating profit (EBITA) 8,965 8,085 30,139 26,172
EBITA, % 10.5 11.5 10.0 10.1
Operating profit (EBIT) 7,834 7,092 25,754 22,380
EBIT, % 9.2 10.1 8.6 8.6
Basic earnings per share, EUR 0.26 0.23 0.80 0.69
Equity ratio, % 39.7 40.5 39.7 40.5
Operating cash flow 13,156 17,512 27,093 37,997
ROCE, % 19.7 20.3 16.0 16.0
Personnel at end of the period 3,629 3,267 3,629 3,267
President and CEO Juha Näkki:
As expected, we managed to accelerate our profitable growth in the fourth
quarter and lifted our full-year revenue and operating profit (EBITA) to a new
level: our revenue exceeded EUR 300 million and our operating profit (EBITA)
exceeded EUR 30 million for the first time. During the year, we made a large
number of various growth-oriented investments in accordance with our strategy.
We invested in the development of our service solutions and new capabilities by
establishing new teams in a number of different competence areas. We also made
five acquisitions that support international growth. I am very satisfied with
our performance during the past year and I want to take this opportunity to
thank all of our personnel for their excellent work throughout the year.
The demand situation was good almost throughout the year in all of our market
areas. After a slight downturn in the third quarter, the demand situation again
recovered to a good level in the fourth quarter and we accelerated our growth.
Growth was particularly strong in our Software and Embedded Solutions service
area - which achieved over 30 per cent growth in the final quarter and over 25
per cent growth for the year as a whole - and in China, where hours sold in the
local market grew by over 55 per cent during the year.
Our growth was also profitable and we were able to maintain our profitability
(EBITA) at our target level of 10 per cent for the year. The development of
profitability was the strongest in the Technical Documentation Solutions service
area, where profitability (EBITA) rose to the level of 12 per already for the
second time during the year.
Retaining and recruiting highly competent personnel is increasingly challenging
in the prevailing good market condition. During the pandemic, we have continued
to make significant investments in the development of our HR processes and
recruitment as well as in supporting and managing remote work in accordance with
the hybrid work model. These investments have supported our growth in all of our
businesses, and our employee satisfaction has also continued to develop
favorably throughout the pandemic. This puts us in a good position as we enter
2022.
Etteplan’s target is to achieve revenue of EUR 500 million in 2024. The pandemic
has created an additional challenge for achieving this target, and the pandemic
continues to affect our operations in the form of increased sick leaves.
However, we do not expect this to have a major impact on the overall market
situation, and we expect demand to remain fairly good throughout 2022. We
returned to strong profitable growth path in 2021 and started the year 2022
assertively by acquiring the Germany-based company Cognitas for our Technical
Documentation Solutions service area and the Sweden-based Syncore for our
Software and Embedded Solutions service area. We will continue our investments
in organic and inorganic growth and our progress towards our goals in 2022.
Market outlook 2022
The most important factor affecting Etteplan’s business is the global
development of the machinery and metal industry. The prolongation of the COVID
-19 pandemic continues to have an impact on the market situation and supply
chains. Our customers have adapted to the effects of the pandemic, and their
business is currently developing positively. The prevailing financial and
geopolitical situation may affect the market development. However, we expect the
demand situation to remain fairly good throughout 2022.
Financial guidance 2022
Etteplan issues guidance for revenue and operating profit (EBIT) as a numerical
range and issues the following estimate:
Revenue in 2022 is estimated to be EUR 340-370 (2021: 300.1) million, and
operating profit (EBIT) in 2022 is estimated to be EUR 28-32 (2021: 25.8)
million.
Disclosure procedure
This stock exchange release is a summary of Etteplan's 2021 Financial Statement
Review. The complete Financial Statement Review is attached to this stock
exchange release in pdf format and is also available on Etteplan's website at
www.etteplan.com.
Conference call and live webcast today, February 10, 2022
Etteplan’s President and CEO Juha Näkki will present the Company’s results for
2021 in a conference call and a live webcast, held in English language, on
February 10, 2022 starting at 2.30 p.m. Finnish time (EET).
To participate in the conference call please dial 5-10 minutes prior to the
start of the conference to +358 (0)9 8171 0310 and insert the conference PIN
code 76113253#. Questions can be asked in Finnish and in English after President
and CEO’s presentation only through conference call connection.
Juha Näkki’s presentation can be followed as a live webcast on
https://etteplan.videosync.fi/january-december
-2021 (https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fetteplan
.videosync.fi%2Fjanuary-december
-2021&data=04%7C01%7C%7Cda987a3ff5314862b8b108d9e4aef4ac%7C1f23d6d3b1584e45b7e176
31cf28c804%7C0%7C0%7C637792262343295345%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwM
DAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=vmzTld6KeSLsOkj6e1
ilmENt6omC6eI8gDQ4tv%2Bd%2Fvo%3D&reserved=0). The webcast starts at 2.30 p.m.
Finnish time (EET). A recording of the webcast will be available later at
www.etteplan.com.
Espoo, February 10, 2022
Etteplan Oyj
Board of Directors
Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302
The information presented herein has not been audited.
Releases and other corporate information are available on Etteplan's website at
www.etteplan.com.
Distribution:
Nasdaq Helsinki
Major media
www.etteplan.com
Etteplan in brief
We are a rapidly growing technology service company specializing
in software (https://www.etteplan.com/services/software-and-digitalization) and
embedded solutions (https://www.etteplan.com/services/embedded-systems),
engineering solutions (https://www.etteplan.com/services/engineering),
and technical documentation solutions (https://www.etteplan.com/services/product
-and-asset-information). We are a forerunner in the engineering industry and we
differentiate ourselves by the wide-ranging competence of our experts. Our
customers include world’s leading companies in the manufacturing industry. We
help them to create a better world through engineering, innovation and
digitalization.
Etteplan has lead the way in the engineering field already since 1983. In 2021,
we had a turnover of EUR 300.1 million. The company currently has over 3,800
professionals in Finland, Sweden, the Netherlands, Germany, Poland, Denmark and
China. Etteplan's shares are listed on Nasdaq Helsinki Ltd under the ETTE
ticker. www.etteplan.com