ETTEPLAN OYJ, INTERIM REPORT, AUGUST 13, 2014AT 02.00 P.M. ETTEPLANQ2: PROFITABILITY IMPROVED Review period April- June 2014- The Group’s revenue decreased by 1.5% and was EUR 33.7 million(4-6/2013: EUR 34.2 million). - EBITDA improved by 10.9% and was EUR 2.9 million( EUR 2.6 million). - Operating profit (EBIT) improved by 16.3% and was EUR 2.3 million( EUR 2.0 million). - The profit for the review period was EUR 1.8 million( EUR 1.6 million). - Operating cash flow improved and was EUR 3.1 million( EUR 1.0 million). - Earnings per share were EUR 0.09( EUR 0.08). - The Group had 1,843 employees at the end of the period (1,742). - Etteplankeeps its financial guidance unchanged and adjusts the estimate of its market outlook. Review period January- June 2014- The Group’s revenue decreased by 2.4% and was EUR 67.0 million(1-6/2013: EUR 68.7 million). - EBITDA declined by 7.1% and was EUR 4.7 million( EUR 5.1 million). - Operating profit (EBIT) decreased by 7.6% and was EUR 3.4 million( EUR 3.7 million). - The profit for the review period was EUR 2.6 million( EUR 2.7 million). - Operating cash flow improved and was EUR 1.4 million( EUR -0.9 million). - Earnings per share were EUR 0.13(0.13). Outlook 2014 Market outlook The most important factor in the development of Etteplan’s business is the development of the machinery and metal industry. Despite increased new orders from the machinery and metal industry, the market has become more uncertain and business less predictable. Financial guidance We expect the revenue and operating profit for the year 2014 to grow compared to 2013. Previous estimate of outlook Market outlook The most important factor in the development of Etteplan’s business operations is the development of business operations in the machinery and metal industry. At the beginning of 2014, the revenues and order books of the machinery and metal industry were at a lower level than in the corresponding period in 2013. However, new orders increased on average. The demand for engineering design services showed signs of recovery at the end of the review period, but the full-year development remains uncertain. Financial guidance We expect the revenue and operating profit for the year 2014 to grow compared to 2013. Key figures ( EUR 1,000) 4-6/2014 4-6/2013 1-6/2014 1-6/2013 1-12/2013 -------------------------------------------------------------------------------- Revenue 33,737 34,240 67,019 68,699 128,647 EBITDA 2,920 2,632 4,730 5,090 9,064 EBITDA, % 8.7 7.7 7.1 7.4 7.0 Operating profit (EBIT) 2,273 1,954 3,430 3,712 6,366 EBIT, % 6.7 5.7 5.1 5.4 4.9 Basic earnings per share, EUR 0.090.08 0.13 0.13 0.22 Equity ratio, % 33.7 31.7 33.7 31.7 35.9 Operating cash flow 3,058 1,022 1,363 -938 1,789 ROCE, % 20.7 18.3 15.5 16.8 14.6 Personnel at end of the 1,843 1,742 1,843 1,742 1,728 period Juha NÄkki, President and CEO of Etteplan Oyjcomments on the interim report: “Due to our strong market position and the recovery in demand at the end of the first quarter we were able to turn our business back to growth in the end of the review period. Our operating profit improved compared to the second quarter of 2013 and nearly doubled compared to the first quarter of 2014. Our cash flow improved significantly. Our revenue ceased to decrease and was slightly better than in the comparison period at comparable exchange rates. The number of temporary layoffs continued to decrease in Finlandin the second quarter. Sales to key customers developed more favorably than other business operations. In Europe, the demand for engineering design services and technical documentation improved in the review period, particularly in the projects of forest industry equipment manufacturers, while also showing signs of improvement in other sectors. Overall demand improved slightly in Finlandand the Netherlands. In Sweden, demand recovered faster than in Finlandand the Netherlands, but the competitive situation remained tight. In China, the engineering design service market continued to develop favorably. During the review period, we managed to increase the number of working hours invoiced in the Chinese market by nearly 170 per cent, and our number of employees in Chinaexceeded 200. Our acquisition of Elomatic’s engineering business in Chinaand the outsourcing of MacGregor’s engineering design operations had a positive effect on our operations in China. Offshoring services outside Chinacontinued to grow as well. I am very pleased with the development in Chinain the first half of 2014, and we will continue to carry out measures to maintain growth. The implementation of our business strategy is progressing as planned. High value-added Managed Services constituted more than one-third of our revenue. Our service products, offering cost savings to customers, are ideal for the prevailing market situation, and we received significant orders during the review period. In technical documentation, the earlier outsourcing carried out by Fortum VÄrme was followed by the outsourcing of technical documentation by Fortum Hydro to Etteplanin Sweden. Interest in our technical documentation and outsourcing solutions has clearly increased, and we are negotiating outsourcing cases with several customers. During the review period, Etteplanadjusted its growth target upward to 15 per cent. The target includes both organic growth and acquisitions. We are back on the growth track, and the market situation is favorable for acquisitions. With determined work, I believe we will reach our new growth target in 2015. Despite slow growth and the uncertainty in Europecreated by the situation in Russia, our financial guidance for 2014 remains unchanged.” Disclosure procedure Etteplanfollows the disclosure procedure enabled by Disclosure obligation of the issuer (7/2013) published by the Finnish Financial Supervision Authority. This stock exchangerelease is a summary of Etteplan’s January- June 2014interim report. The complete interim report is attached to this stock exchange release in pdf format and is also available on Etteplan’s website at www.etteplan.com. Investors are advised to review the complete interim report with tables. Conference call and live webcast today, August 13, 2014Etteplan’s President and CEO Juha NÄkkiwill present Company’s results for January- June 2014in a conference call and a live webcast for analysts and investors, held in English language, on August 13, 2014starting at 3.30 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 9 2319 5437, event password is Etteplan2014. Questions can be asked in English after President and CEO’s presentation only through conference call connection. Juha NÄkki’s presentation can be followed as a live webcast through a link at Etteplan’s homepage at www.etteplan.com/Investors. The live webcast starts at 3.30 p.m.Finnish time (EET). A recording of the webcast will be later available at the same address. Vantaa, August 13, 2014Etteplan Oyj Board of Directors Additional information: Juha NÄkki, President and CEO, tel. +358 400 606 372 The information presented herein has not been audited. Releases and other corporate information are available on Etteplan’s Web site at www.etteplan.com. DISTRIBUTION: NASDAQ OMX Helsinki Major media www.etteplan.com Etteplanprovides engineering planning services and technical product information solutions to the world's leading companies in the manufacturing industry. Our services are geared to improve the competitiveness of our customers' products and engineering processes throughout the product life cycle. The results of Etteplan'sinnovative engineering can be seen in numerous industrial solutions and everyday products. In 2013, Etteplanhad a turnover of EUR 128.6 million. The company has more than 1,800 professionals in Finland, Sweden, the Netherlandsand China. Etteplan'sshares are listed on NASDAQ OMX Helsinki Ltdunder the ticker ETT1V. Copyright © 2014 OMX AB (publ).